Environmental Accounting

The Hitachi High-Tech Group strives to reduce the burden that we place on the environment, controlling costs associated with efforts to reduce the environmental burden. We are also measuring the quantity of resource inputs into our business activities and the scale of emissions that impose a burden on the environment.

Environmental Accounting

The Hitachi High-Tech Group introduced environmental accounting starting in FY2001 as a tool for managing our environmental conservation activities. We confirm our cost-effectiveness with regard to environmental conservation and conduct evaluations of the Group's engagement in environmental initiatives.
As the result of our activities in the present fiscal year, our environmental conservation expenses rose by ¥292 million (about 8.8% year on year). The main factors in this rise in environmental conservation expenses in the area of management activity costs included the increase in environment-related personnel, the rise in education expenses, and so on. In the area of R&D and design costs, the main factors were the increases in design development expenses to support European F gas regulations, increases in development expenses for performance upgrades to existing equipment and for new products, and so on.
There were also increases in environmental conservation costs, and these are contributing to the heightened effectiveness of environmental conservation. The increases occurred due to promotion of activities for achieving a low-carbon society, realizing a recycling-oriented society, and realizing a society in harmony with nature. These are based on the long-term environmental targets of Hitachi, Ltd., in Hitachi Environmental Innovation 2050 and on the Hitachi High-Tech Group Materiality of "Contributing to a sustainable global environment." The effect of reduction in electric power use per investment in FY2018 increased by a factor of 4.4 year on year.

• * The charts below have been formulated in compliance with the Ministry of the Environment's Environmental Accounting Guidebook II.
• * Calculation Standards

1. Scope of calculation:
   Hitachi High-Tech (head office, branches in Japan, manufacturing divisions in Japan) and manufacturing Group companies in Japan, sales-focused Group companies (some), and a service-focused Group company (Hitachi High-Tech Fielding Corporation)
2. Period covered:
   April 1, 2018 - March 31, 2019
3. Costs:
   Includes labor costs, R&D costs, depreciation costs, etc.
4. Effects:
   Net earnings effect: Earnings from operations relating to environmental conservation
   Cost reduction effect: Sum by which costs are reduced as a result of measures to reduce the environmental burden (does not include expected effects)

Environmental Conservation Expenses

Environmental Conservation Benefit

Breakdown of Environment-related Investment by Purpose (Year-on-Year Change)

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