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Environmental Accounting

The Hitachi High-Tech Group is working to efficiently reduce environmental impact by managing and calculating environmental conservation costs, economic effects, and material effects.

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.
In addition, in order to achieve the goals of Hitachi Environmental Innovation 2050 (1. Achieving a Decarbonized Society 2. Achieving a Resource Efficient Society 3. Achieving a Harmonized Society with Nature),that are the long-term environmental goals shared by the Hitachi Group, we are managing measures and targets through the Environmental Committee and its subcommittees and meetings, and are working to understand the costs of environmental conservation and improve the effects of environmental conservation by implementing these measures and setting targets.

FY2022 was a year when the shift away from measures implemented in response to COVID-19 accelerated and the numbers of severe cases and fatalities in Japan decreased due to the widespread use of vaccines and other factors, and as a result, the Company’s environmental measures also began to show signs of recovery. Among our environmental conservation costs, R&D and design costs (costs for research and development activities) for designing environmentally conscious products and for other such measures increased substantially, up ¥473 million from the previous fiscal year, due to the recovery in global demand.

In addition, administration costs (costs for management activities for environmental conservation) increased by ¥102 million from the previous fiscal year due to increases in the number of course takers in response to implementation of remote environmental education and webinars.

Among environmental investment costs, those for preventing global warming increased by ¥483 billion as a result of replacement of air conditioning equipment, replacement of air compressor equipment, and other measures. Total environmental investment increased by ¥163 million compared to the previous fiscal 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 Group (head offices, branches in Japan, manufacturing division in Japan), manufacturing Group companies in Japan, headquarters of sales Group Companies, and headquarters of service Group company (Hitachi High-Tech Fielding Corporation)
  2. Period covered:
    April 1, 2022 - March 31, 2023
  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

Classification FY2021 FY2022 Increase/
1. Business area costs
Cost of minimizing the environmental burden arising from business activities in each business area
907 878 ▲29 Costs associated with reducing environmental risks
Breakdown Pollution prevention costs
Cost of preventing pollution, including air, water, and soil pollution
157 149 ▲8
Environmental conservation costs
Costs associated with the prevention of global warming and energy conservation
501 479 ▲22
Resource recycling costs
Costs associated with resource conservation and waste reduction and recycling
249 249 0
2. Upstream and downstream costs
Cost of minimizing the upstream/downstream environmental burden arising from business activities
78 60 ▲18
3. Administration costs
Cost of management activities focused on environmental conservation
715 817 102 Costs associated with promoting activities
4. R&D costs
Cost of R&D activities
1,785 2,257 473
5. Social activity costs
Cost of social projects
94 81 ▲14
6. Other
Environmental remediation costs
1 1 0
Total expenses of environmental conservation (1-6) 3,580 4,093 513  
All environmental conservation costs - environmental conservation effects (economic effects) 3,518 4,004 485  

* There were no environmental fines or penalties during the fiscal year.

* The totals of each item and the values in the total column may differ due to the number of digits displayed.

Unit: ¥1 million/year

Environmental Conservation Benefit

Item Conservation Benefit (FY2021) Conservation Benefit (FY2022) Key Details
Economic benefit Net earnings effect 37 42  
Cost reduction effect 25 48  
Total 62 90  
Material benefit Reduction in electricity usage 466 MWh/year 2,352 MWh/year Energy conservation by periodic replacement of air conditioning equipment, replacement of air compressor equipment, etc.

Unit: ¥1 million/year

Environmental Investment Costs
Classification FY2021 FY2022 Increase/Decrease Notes
Total environmental investment 320 483 163  

Unit: ¥1 million/year

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

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

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