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Environmental Accounting

To promote environmental management, the Fujitsu Group introduced environmental accounting in FY 1998. We evaluate the efficiency of our environmental protection activities by monitoring the required costs and benefits of these activities. Through this process, we have clarified issues and promoted sharing of the results.

Purpose of Introducing an Environmental Accounting System

  • To clarify our corporate stance through disclosure of information to stakeholders
  • To implement long-term, continuous environmental measures
  • To raise the efficiency of investment in environmental protection measures
  • To energize environmental protection activities

Basic Environmental Accounting Elements in FY 2013

  • Applicable period
    April 1, 2013 to March 31, 2014
  • Accounting coverage
    Fujitsu and its major consolidated subsidiaries worldwide *1
  • Calculation basis for environmental protection costs
    • Accounting method for depreciation and amortization: Depreciation and amortization expenses for investments are included in expenses using straight line depreciation (with no residual value) based on a useful life of 5 years. The useful life of 5 years was chosen based on the average length of the actual period from the introduction of environmental facilities to the implementation of repairs and upgrades.
    • Basis for recording composite costs: In regard to composite costs in which environmental protection costs are coupled with other costs, the Fujitsu Group records only the portion corresponding to environmental protection in conformance with the Environmental Accounting Guidelines 2005 issued by the Japanese Ministry of Environment.
  • Calculation basis for the economic benefits of environmental protection measures
    • Scope of benefits in environmental accounting: The Fujitsu Group records the actual benefits and estimated benefits (risk avoidance benefit and deemed benefit) of reducing environmental impact related to the following items.
      • Benefit of reducing the environmental impact related to resource usage in business activities
      • Benefit of reducing the environmental impact related to environmental loads and waste emissions resulting from business activities
      • Benefit of reducing the environmental impact related to goods and services produced by business activities
      • Benefit of reducing the environmental impact related to transportation and other activities
    • Investment benefit materialization period and basis: The accounting period for actual economic benefits has been aligned with the depreciation and amortization period for investments (60 months). However, the accounting period for economic benefits derived from reducing personnel costs related to the environmental management system is 12 months, in line with the main thrust of the environmental management system, which is reviewed every year. With regard to estimated economic benefits, the accounting period for economic benefits derived from capital investment is the same as the depreciation and amortization period (60 months) for actual economic benefits. Benefits corresponding to a given fiscal year, such as the amount of contribution to environmental protection and the avoidance of operational losses, are recorded only for that fiscal year. The basis for accounting for economic benefits is as follows.
      • Contribution of environmental protection activities to added value derived from production activities
        The Fujitsu Group recognizes support provided by environmental protection activities to production activities as an economic benefit. Accordingly, the amount of contribution is determined by multiplying the added value derived from production activities by the ratio of the maintenance and operation cost for environmental protection facilities to the total facility cost of each site.
        Contribution = Added value x Maintenance and operation cost for environmental protection facilities / total facility cost
      • Avoidance of operational loss at business sites due to non-compliance with laws and regulations
        The Fujitsu Group recognizes the avoidance of operational loss as the amount of loss that is avoided in the event of the materialization of risk arising from neglect to make upfront investments needed to comply with laws and regulations. The number of operational loss days is determined based on the size of investment related to the environment, but shall not exceed three days.
        Benefit = Added value / Operational days x Operational loss days
      • Benefit of public relations activities
        This benefit is calculated by converting publicity efforts related to environmental protection activities in newspapers, magazines and TV into an advertising cost.
        Benefit=Advertising cost of newspapers, magazines and TV x Number of advertisements ran and programs broadcast
      • R&D benefit
        The Fujitsu Group calculates the amount of additional earnings resulting from the contribution of R&D achievements for environmental protection purposes, such as Super Green Products and environmental solutions.

*1 Fujitsu's major consolidated subsidiaries worldwide:
FUJITSU ISOTEC LIMITED, FUJITSU IT PRODUCTS LIMITED, Fujitsu I-Network Systems Limited, Fujitsu Interconnect Technologies Limited, Fujitsu VLSI Limited, Ecolity Service Limited, FDK CORPORATION, FUJITSU OPTICAL COMPONENTS LIMITED, FUJITSU KASEI LIMIED, Fujitsu Laboratories Limited, FUJITSU COMPONENT LIMITED, Shimane Fujitsu Limited, FUJITSU PERIPHERALS LIMITED, SHINKO ELECTRIC INDUSTRIES CO., LTD., FUJITSU SEMICONDUCTOR LIMITED, Fujitsu Semiconductor Technology Inc., Fujitsu Telecom Networks Limited, Fujitsu Ten Limited, Fujitsu Ten Manufacturing Limited., TRANSTRON Inc., PFU Limited, FUJITSU FRONTECH LIMITED, Fujitsu Mobile-phone Products Limited, Fujitsu Wireless Systems Limited, Fujitsu Computer Products of Vietnam, Inc., Fujitsu Network Communications, Inc., FUJITSU TECHNOLOGY SOLUTIONS (HOLDING) B.V.

The Fujitsu Group also aggregates data on R&D costs and benefits related to environmental solutions from subsidiaries other than those shown above. However, the data is aggregated solely for environmental solution costs and benefits, so the relevant subsidiaries are not included in the scope of disclosure for major consolidated subsidiaries.

Fiscal 2013 Environmental Accounting Results

Breakdown of Results (Investment and costs) [billion yen]

Fiscal 2013 Environmental Accounting Results - Breakdown of Results (Capital investment, costs, economic benefits)
Item Main areas covered Costs Economic benefits
(billion yen)
Capital investment
(billion yen)
(billion yen)
Total 28.6(+8.7) 455.0(+72.3) 782.9(+54.0)
Business area costs/benefits Pollution prevention costs/benefits Air/water pollution prevention, etc. 20.3(+16.3) 46.2(+3.3) 68.2(+1.1)
Global environmental conservation costs/benefits Global warming prevention, saving energy, etc. 5.6(-3.0) 31.8(+0.7) 18.9(+1.2)
Resource circulation costs/benefits Waste disposal, efficient utilization of resources, etc. 0.0(-0.5) 24.9(-0.4) 126.4(+16.9)
Upstream/downstream costs/benefits Collection, recycling, reuse, and proper disposal of products, etc. 0.2(+0.2) 8.4(+0.1) 4.7(+0.1)
Administration costs/benefits Provision and operation of environmental management systems, environmental education of employees, etc. 0.2(-1.0) 31.2(-1.4) 6.1(+1.2)
R&D costs/benefits R&D on products and solutions that contribute to environmental protection, etc. 1.8(-3.4) 306.4(+65.7) 558.6(+37.5)
Social activity costs Donations to, and support for, environmental groups, etc. 0.0(±0.0) 0.3(±0.0) -
Environmental remediation costs/benefits Restoration and other measures related to soil and groundwater contamination, etc. 0.5(+0.1) 5.8(+4.3) 0.0(-4.0)
  • Numbers in parentheses indicate increases or decreases in comparison with the previous year.
  • Due to rounding, figures in columns may not add up to the totals shown.
  • Items shown as "0.00" include items for which the value was smaller than the display units used.

Costs and Economic Benefits in FY 2013

The results of this accounting for FY 2013 showed expense of 45.5 billion yen (a 18.9% increase from the previous year) and the economic benefits were 78.29 billion yen (a 7.4% increase from the previous year). Thus both costs and benefits increased. Also, our capital investment was 2.86 billion yen (a 43.1% increase from the previous year).

Driving forward our R&D on products and solutions to contribute to environmental conservation for customers and society led to broad increases in R&D costs and economic benefits (calculated by our own method for estimating economic benefits).

In the future, we will continue to refine environmental management by evaluating our environmental protection activities using environmental accounting.

Trends in Expense and Economic Benefits

Past Records

Past records of our environmental accounting up to FY2013 are included in the Sustainability Report.