Environmental Accounting
Honda is in the process of identifying the costs necessary for
environmental conservation activities based on the following objectives:
´Environmental accounting is to provide a management tool in the environmental area.
´Environmental accounting offers indices for corporate evaluation and serves as a data source for disclosure to the public.
The following table shows the environmental conservation costs incurred by the Company in fiscal 2004.
Compared with the previous fiscal year, pollution prevention costs increased due to the use of water-based paints for the painting process in the production domain and upstream/downstream costs increased due to responses made to the enforcement of the End-of-Life Vehicle Recycling Law.
´Environmental accounting is to provide a management tool in the environmental area.
´Environmental accounting offers indices for corporate evaluation and serves as a data source for disclosure to the public.
The following table shows the environmental conservation costs incurred by the Company in fiscal 2004.
Compared with the previous fiscal year, pollution prevention costs increased due to the use of water-based paints for the painting process in the production domain and upstream/downstream costs increased due to responses made to the enforcement of the End-of-Life Vehicle Recycling Law.
Costs and Effects of Environmental Conservation Activities in Fiscal 2004
(Unit: Millions of yen)
| Category | Details of Major Activities, etc. | Investment Amount |
Expense Amount |
Effects | |
| Business areas costs |
Pollution prevention costs | • Prevention of air, water and soil pollution, etc. | 1,037 | 2,055 |  Production
domain´Total CO2 emission: 468,000 tons Reduced by 13,000 tons from the target value –>Related Information ´Amount of internally incinerated waste: 4,400 tons Reduced by 1,400 tons compared with the previous fiscal year–>Related Information ´Total VOC emission: 32.8 g/m2 Reduced by 0.2g/m2 from the target –>Related Information |
| Global environmental conservation costs |
• Prevention of global warming and ozone
layer depletion, and other environmental conservation |
692 | 343 | ||
| Resources cycling costs | • Disposal, reduction, recycling of waste | 266 | 1,238 | ||
| Upstream/downstream costs | • Green purchasing (balance) • Collection, recycling, reuse and proper disposal of the products manufactured and sold • Member fees and other charges paid to trade organizations |
0 | 2,427 | ||
| Management activity costs | • Provision of environmental training to
employees • Building, operation and acquisition of the certification of an environmental management system • Monitoring and measurement of environmental impacts • Organization in charge of environmental conservation measures |
13 | 1,087 | ||
| Research and development costs | • Research and development of products contributing
to environmental conservation • Research, development, and planning for reducing environmental impacts throughout the life cycle of products, etc. |
7,700 | 129,420 | ||
| Social activity costs | • Environmental improvement measures including
nature protection, greening and the preservation of beautiful scenery • Provision of support and information to local citizens • Donation and support to organizations engaged in environmental conservation activities • Disclosure of environment-related information |
0 | 499 | ||
| Environmental damage costs | • Restoration of polluted soil | 0 | 0.7 | ||
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
´ Targeted period:
April 1, 2004, through March 31, 2005
2) The published figures include some that have been estimated and some given as combined figures because of the difficulty of determining differential amounts.
3) For the tabulation, we referred to reference materials on environmental accounting, including the guidelines and guidebooks published by the Ministry of the Environment of Japan.
4) This Report publishes the specific results achieved in our efforts for each 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.
´ 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
´ Targeted period:
April 1, 2004, through March 31, 2005
2) The published figures include some that have been estimated and some given as combined figures because of the difficulty of determining differential amounts.
3) For the tabulation, we referred to reference materials on environmental accounting, including the guidelines and guidebooks published by the Ministry of the Environment of Japan.
4) This Report publishes the specific results achieved in our efforts for each 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.
