Based on the following objectives, Honda is in the process of introducing the Environmental Accounting. Environmental accounting is to provide a management tool in the environmental area. Environmental accounting offer indices for corporate evaluation and serve as a data source for the disclosure to the public.
The table below gives the costs and effects of the environmental conservation activities conducted in fiscal 2000.
In this fiscal year again, Honda will announce its environmental conservation costs, and as the effect of the costs, the reduced amounts of main environmental loads in the production domain. Consideration will be given to the expansion of Official Statement of Effect coupling with the introduction of LCA.
[Costs and effects of environmental conservation activities]
(Unit : million yen)
Category
Investment amount
Expense amount
Business areas costs
Pollution prevention costs
730
1,353
Effects
CO2 emission: 137,900 C-tons
2,200 C-tons (1.6%) increase as compared
with the previous fiscal year
(4.4% reduction against an increase
in total amounts due to production increase)
Externally disposed wastes: 5 tons
508 tons reduction as compared with the
previous fiscal year
Global environmental conservation costs
209
927
Resource circulation costs
58
900
Upstream/downstream costs
4
640
Management activity costs
0
1,026
Research and development costs
6,130
91,260
Social activity costs
0
451
Environmental damage costs
0
0
Other costs
0
4
(Based on our own calculation guideline)
1)
The scope of the present calculations is as follows: Companies included in the accounts Honda Motor Co., Ltd. Honda R&D Co., Ltd. Honda Engineering Co., Ltd. Domains included in the accounts All domains in the life cycle of Honda products
2)
The published figures include some that have been estimated and also some given as aggregates because
of the difficulty of determining differential amounts.
3)
The following materials were consulted in the computations.
Developing an Environmental Accounting System (Year 2000 Report), published by the Environment Agency
of Japan in March 2000
4)
This Report publishes the specific results achieved in our efforts each fiscal year. Starting from this fiscal year, the aggregate total of our environmental conservation costs are quoted on a cash-flow basis in terms of the monetary amount less depreciation costs.
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Environmental accounting is to provide a management tool in the environmental area.
Companies included in the accounts 
