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Reducing Environmental Impact

Environmental Accounting

For greater efficiency in our environmental activities

Concept of environmental accounting

The Brother Group performs environmental accounting as an effective means to continuously improve the efficiency of environmental management, targeting eight business sites in Japan ("in Japan") and manufacturing facilities outside Japan ("outside Japan"). The Brother Group quantitatively assesses their effects, and then uses the results to plan environmental activities to be carried out the next fiscal year.

Calculation results for FY2017 (April 1, 2017-March 31, 2018)

Presented below are the expenses, investments, and effectiveness of environmental activities in FY2017 based on the Brother Group Environmental Action Plan 2018 (2016-2018) (the increases and decreases are based on a comparison with the previous fiscal year).

Environmental conservation costs

The Brother Group spent JPY 346 million in Japan (a decrease of JPY 99 million) and JPY 68 million outside Japan (an increase of JPY 26 million). The total amount was JPY 414 million (a decrease of JPY 73 million). In Japan, investments were made mainly to implement energy conservation measures, etc. for conserving the global environment and to build an environmental management system using IT equipment, etc. for administrative purposes. Outside Japan, investments were made in the upstream and downstream processes to introduce equipment for measuring dangerous and hazardous substances for green procurement, etc. and to implement energy conservation measures, etc. for conserving the global environment. Expenditures and labor costs for various environmental conservation activities were JPY 815 million (a decrease of JPY 98 million) in Japan and JPY 210 million (an increase of JPY 52 million) outside Japan.
In FY2017, about 1.6 million yen was spent separately for the purchase of carbon credits.

Classification of Environmental Conservation Costs Details of main activities and their effects Investment (unit: JPY million) Expenses (unit: JPY million)
In Japan Outside Japan In Japan Outside Japan
1. Business area cost 1) Pollution prevention cost Pollution prevention measures (including air, water, vibration and noise) 16
(14)
8
(2)
38
(13)
96
(30)
2) Global environmental conservation cost Global warming prevention (energy-saving) measures 171
(-158)
28
(-8)
125
(-35)
14
(-1)
3) Resource circulation cost Recycling and reduction in waste generation 2
(1)
1
(1)
125
(-32)
52
(14)
2.Upstream / downstream cost Costs incurred to reduce environmental impact when procuring parts and materials and after selling products Green procurement activities; collection and recycling of used products / consumables 1
(1)
31
(31)
71
(11)
0
(0)
3. Administration cost Costs incurred by activities that contribute indirectly to reducing the environmental impact of business operations Establishment, administration, and maintenance of the ISO 14001 system; environmental training for employees; disclosure of environmental information; greening and cleanup of manufacturing facilities and their surrounding areas 143
(42)
0
(0)
306
(-43)
32
(1)
4.R&D cost R&D costs for reducing environmental impact Development of eco-conscious products and technologies such as energy conservation and resource conservation designs; implementation of product environmental assessments; design improvement 10
(-2)
0
(0)
135
(-14)
6
(1)
5.Social activity cost Costs of environmental conservation that is not directly linked with corporate activities Support for environmental conservation groups and organizations; support for environmental activities by local citizens; information services 3
(3)
0
(0)
13
(3)
10
(7)
6.Cost to deal with environmental damage Costs incurred to restore the natural environment (including soil remediation) Soil contamination surveys; soil remediation 0
(0)
0
(0)
2
(-1)
0
(0)
Total 346
(-99)
68
(26)
815
(-98)
210
(52)

Figures in parentheses show increases/decreases in the amount from the previous fiscal year.

Environmental conservation effects

Energy input increased 6.8% in Japan, and increased 12.3% outside Japan. The energy input increased both in and outside Japan due to the increased production at manufacturing facilities.
Water consumption increased 0.6% in Japan and 2.4% outside Japan, resulting in an overall increase of 2.2%. The CO2 emissions increased by 3.6% in Japan and slightly decreased outside Japan. The total CO2 emissions increased by 1.0%.
In FY2017, carbon credits for 1,500 t were purchased separately to cover the increase in CO2 emissions in Japan.

Content of environmental conservation effects Classification of index to measure environmental conservation effects In Japan Outside Japan
Effects resulting from business area cost Effects related to resource input into business operations Total energy input (kL: converted into crude oil quantity) 10,929
(698)
26,408
(2,893)
Water input m3 88,322
(550)
720,417
(16,903)
Effects related to environmental impact and waste released from business operations Release into the atmosphere from energy use CO2 (t-CO2/year)* from energy use

Based on the emission factors of the international standards

23,111
(813)
55,738
(-2)
NOX(kg/year) 2,404
(249)
5,540
(264)
SOX(kg/year) 11
(3)
125
(2)
Generation of waste Amount of waste generation (t) 1,772
(69)
7,172
(1,068)
Landfill waste (t) 0
(0)
121
(0)

Figures in parentheses show increases/decreases in the amount from the previous fiscal year.

  • Since FY2016 (April 1, 2016-March 31, 2017), the CO2 emissions from energy use have been calculated based on the emission factors of the international standards. For electricity, emission factors of respective countries released by the International Energy Agency (IEA) are used. For fuel, emission factors of respective countries released by the GHG Protocol are used. The values calculated using the conventional emission factors are also indicated for reference. The values calculated based on the international standards have been increased by more than 40% compared to the conventional values.

Economic effects derived from environmental conservation measures*

The main economic effects were reduction in waste treatment costs due to resource saving and recycling in Japan, and reduction in energy cost due to energy conservation measures and operating income from the recycling of waste outside Japan.

Content of economic effects In Japan (unit: JPY million) Outside Japan (unit: JPY million)
Income Operating income from recycling of waste generated from main business operations 5.5
(3.0)
60.2
(13.6)
Cost reduction Reduction in energy cost by energy saving 17.5
(-0.5)
80.2
(59.6)
Reduction in waste treatment cost due to resource saving and recycling 32.5
(-0.4)
19.1
(-5.7)
Other Publicity effects, such as newspaper reporting, calculated in terms of advertising expenses 0.8
(-0.6)
0.4
(0)
Total 56.3
(1.5)
159.9
(67.5)

Figures in parentheses show increases/decreases in the amount from the previous fiscal year.

  • Economic effects derived from environmental conservation measures are those that can be calculated in monetary terms from among the effects derived from the environmental conservation activities. Effects that cannot be calculated based on solid grounds (i.e., assumed effects and accidental effects) are not calculated.

Scope of aggregation

FY2017
Eight business sites in Japan (head office of Brother Industries, Ltd., Mizuho Manufacturing Facility, Hoshizaki Manufacturing Facility, Minato Manufacturing Facility,*1 Momozono Manufacturing Facility, Kariya Manufacturing Facility, Research & Development Center, Logistics Center*2), Brother Industries (U.K.) Ltd., Brother Industries (Slovakia) s.r.o., Taiwan Brother Industries, Ltd., Zhuhai Brother Industries, Co., Ltd., Brother Machinery Xian Co., Ltd., Brother Technology (Shenzhen) Ltd., Brother Industries (Shenzhen), Ltd., Brother Industries (Vietnam) Ltd., Brother Industries Saigon, Ltd., Brother Machinery Vietnam Co., Ltd., Brother Industries (Philippines), Inc.
  1. The Minato Manufacturing Facility stopped production on September 30, 2017.
  2. For Logistics Center, only “Environmental Conservation Effects” was aggregated.

[Download the PDF file.]Environmental Accounting (Detailed Data: FY2013-FY2017) [PDF/128KB]

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