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 2005.
Compared with the previous fiscal year, research and development costs for environmental conservation and community activity costs both increased.
• Costs and Effects of Environmental Conservation Activities in Fiscal 2005 (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. | 520 |
2,029 |
Production domain • Amount of internally incinerated • VOC emissions from 1 m2 of coating: 34.3 g/m2 |
| Global environmental conservation costs |
• Prevention of global warming and ozone layer depletion, and other environmental conservation | 1,312 |
368 |
||
| Resources cycling costs | • Disposal, reduction, recycling of waste | 221 |
1,109 |
||
| 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 |
1,680 |
||
| 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 |
15 |
1,088 |
||
| 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. |
28,530 |
140,390 |
||
| Social activity costs | • Environmental improvement measures including nature protection, greening |
0 |
673 |
||
| Environmental damage costs | • Restoration of polluted soil | 0 |
3.8 |
||
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, 2005, through March 31, 2006
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, 2005, through March 31, 2006
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.
Environmental Training
• Stratified Environmental Training Programs
Environmental training programs are part of Honda’s training curriculum, and these programs are provided for our associates to have a full recognition of their own responsibilities and to enable progress in the company’s commitment to the environment as an integral part of associates’ work tasks. A training program focused on Honda’s basic environmental policy and approach is provided to new associates to help deepen their environmental awareness. Immediately after entering the company, new associates visit Honda’s plants to listen to explanations given by facility managers about Honda’s environmental ideas and measures and to get hands-on experience in automobile and motorcycle manufacturing. In the process, they can increase their understanding of the environmental measures Honda is taking in its manufacturing process. Training programs are continuously provided to associates soon after they enter the Company so that they can perform their duties in consideration of the environment. Also, Honda associates access environmental information via the company’s intranet.At NH Circle Conventions (quality circle meetings attended by Honda associates all over the world), some associates give presentations on environmental problems, cost and resource savings, and recycling. Also, we highlight successful associate environmental activities as good examples for all associates. Because environmental problems are becoming more global, Honda seeks to make associates more aware of the environment through these measures and encourages them to voluntarily act in an environmentally-friendly manner in their business and personal lives.
