Environmental accounting

In order to facilitate the aggregation of environmental accounting for the entire KITZ Group and ensure accuracy, the KITZ Group established an environmental accounting system within the environment, health, and safety information system, which is being operated by the Group.

Concept of environmental accounting

The KITZ Group introduced environmental accounting in order to achieve sustainable development, maintain a good relationship with society, and effectively and efficiently promote environmental conservation efforts. The KITZ Group Environmental Accounting System Manual was compiled in 2005. The Manual is designed to standardize the understanding of the accounting and to compare the environmental accounting information of all Group companies.

Environmental conservation costs

Environmental conservation costs
Category Main actions Capital investment
(Thousand yen)
Expenditures
(Thousand yen)
Costs in the business area 40,658 566,157
Breakdown Pollution control Introduction and maintenance of pollution prevention facilities and equipment 17,552 194,673
Global environment protection Introduction of energy-saving facilities and equipment 14,864 184,318
Resource circulation Reduction, recycling,
and outsourcing of waste disposal
8,242 187,166
Cost for recycling green
purchasing products
Cost for collection and recycling of used goods 0 7,895
Administrative duties ISO, environmental measurement, and disclosure of environmental information 999 65,025
Research and development Development of lead-free and other environmentally friendly products 0 24,123
Social activities Promotion of greening activities 0 1,716
Costs to address environmental damage Purification of underground water 0 0
Other costs 0 11
Total 41,657 664,927
Items Ratio Total cost(Thousand yen)
Total investment in facilities during the specified period Ratio of investment for environmental conservation: 0.9% 4,576,704
Total costs of R&D during the specified period Ratio of development costs for environmental conservation: 0.9% 2,648,951

*Scope of compilation is KITZ Corporation (head office, Nagasaka, Ina, and Chino plants), KITZ Metal Works Corporation, KITZ Micro Filter Corporation, KITZ SCT Corporation, Shimizu Alloy Manufacturing Co. Ltd., KITZ Engineering Service Co., Ltd., Hotel Beniya Co,Ltd., and Hokutoh Giken Kogyo Corporation.

Environmental conservation effects

Environmental conservation effects
Category of environmental
conservation effect
Environmental performance indicators
(Unit)
Results in
FY 2020
Results in
FY 2021
Difference
(Environmental conservation effects)
Environmental conservation effect related to the resources used in business activities Total consumed energies (GJ) 496,636 496,336 △300
Consumed PRTR materials (t) 3,231 3,521 290
Consumed clean water(m3 182,077 201,098 19,021
Consumed underground water(m3 160,511 177,775 17,264
Environmental conservation effect related to the environmental impact and waste generated from business activities Greenhouse gas emission (t-CO₂) 47,359 21,561 △25,798
Released or transferred chemicals (t) 215 243 28
Total released domestic and industrial waste (t) 6,675 6,628 △48

*Scope of compilation is KITZ Corporation (head office, Nagasaka, Ina, and Chino plants), KITZ Metal Works Corporation, KITZ Micro Filter Corporation, KITZ SCT Corporation, Shimizu Alloy Manufacturing Co. Ltd., KITZ Engineering Service Co., Ltd., Hotel Beniya Co,Ltd., and Hokutoh Giken Kogyo Corporation.

Economic effects of environmental conservation activities

Economic effects of environmental conservation activities (Financial gain)
Details of effects Amount
(Thousand yen)
Profit Earned from recycling waste and used products for the main business activities 665,903
Saved cost Reduction of energy costs through energy savings 284,155
Saved by recycling 224,963
Saved by waste reduction 22,752
Total 1,197,773

*Scope of compilation is KITZ Corporation (head office, Nagasaka, Ina, and Chino plants), KITZ Metal Works Corporation, KITZ Micro Filter Corporation, KITZ SCT Corporation, Shimizu Alloy Manufacturing Co. Ltd., KITZ Engineering Service Co., Ltd., Hotel Beniya Co,Ltd., and Hokutoh Giken Kogyo Corporation.

Fundamental and important information in environmental accounting

Scope of reporting

KITZ Corporation (head office, Nagasaka, Ina, and Chino plants), KITZ SCT Corporation (Nitta SC), KITZ Micro Filter Corporation (Chino plant, Suwa plant), KITZ Metal Works Corporation (head plant), Shimizu Alloy Manufacturing Co. Ltd. (Hikone plant), KITZ Engineering Service Co., Ltd., Hotel Beniya Co,Ltd., and Hokutoh Giken Kogyo Corporation.

Target period

January 1, 2022, to December 31, 2022

Referenced guidelines

The Ministry of the Environment, Environmental Accounting Guidebook (2005 Edition)

Calculation standards for environmental conservation costs

(1) Depreciation method: Calculated using straight-line depreciation for five years and included in the expenditures.
(2) Personnel expenses: Includes expenses related to equipment maintenance, environmental safety management, and environmental education.
(3) Research and development expenses: Includes expenses related to environmental development themes as defined in the Guidelines for Evaluation of Environmental Impact Reduction Associated with Technology Development.

Calculation standards of environmental conservation effects

Calculated as below.
Environmental impact of the current financial year less the previous year’s

Calculation standards of economic effects

(1) Profit: the actual value
(2) Saved cost
– The amount of energy and cost saved by waste reduction are calculated as follows.
Financial gain = {(previous financial year’s environmental impact / previous financial year’s basic unit standard) x current financial year’s basic unit standard – current financial year’s environmental impact} x previous financial year’s unit price
– Reductions in costs associated with recycling are calculated based on the actual intra-group transactions.

Amount

Rounded to the nearest thousand yen

Quantity

The decimal part is rounded off

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