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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 FY2016 (April 1, 2016-March 31, 2017)

Presented below are the expenses, investments, and effectiveness of environmental activities in FY2016 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 445 million in Japan (an increase of JPY 261 million) and JPY 42 million outside Japan (a decrease of JPY 73 million). The total amount was JPY 487 million (an increase of JPY 188 million). The investments were made mainly to extensively modify IT-related equipment for environmental management in Japan, to add waste management equipment, and to replace conventional equipment with energy-efficient equipment, etc. outside Japan. Expenditures and labor costs for various environmental conservation activities were JPY 913 million (an increase of JPY 119 million) in Japan and JPY 158 million (a decrease of JPY 137 million) outside Japan.

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) 2
2) Global environmental conservation cost Global warming prevention (energy-saving) measures 329
3) Resource circulation cost Recycling and reduction in waste generation 1
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 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 101
4.R&D cost R&D costs for reducing environmental impact Development of eco-conscious products and technologies; implementation of product environmental assessments; design improvement 12
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 0
6.Cost to deal with environmental damage Costs incurred to restore the natural environment (including soil remediation) Soil contamination surveys; soil remediation 0
Total 445

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

Environmental conservation effects

Energy input increased 1% in Japan, and increased 25% outside Japan due to the expanded in-house production of parts. Water consumption decreased 6.6% in Japan and increased 0.7% outside Japan, resulting in an overall decrease of 0.2%.In FY2016, the CO2 emission factors were changed from those in accordance with the Act on Promotion of Global Warming Countermeasures in Japan (the Ministry of the Environment) to those of respective countries published by the International Energy Agency (IEA) for electricity and the Greenhouse Gas Protocol for fuel, resulting in an increase of 48% and 80% in Japan and outside Japan, respectively.

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) 10,231
Water input m3 87,772
Effects related to environmental impact and waste released from business operations Release into the atmosphere from energy use CO2(t-CO2/year)*1

Based on the emission factors of the international standards


Based on the conventional emission factors

NOX(kg/year) 2,155
SOX(kg/year) 8
Generation of waste Amount of waste generation (t) 1,702
Landfill waste (t) 0

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

  1. Since FY2016, the CO2 emissions from energy use have been calculated based on the emission factors of the international standards. The values calculated using the conventional emission factors are also indicated for reference. The application of the international standards has increased the calculated values by more than 40%.
  2. For Brother Industries (Philippines), Inc., some wastes were found to have been omitted from the scope of aggregation in FY2015 (April 1, 2015-March 31, 2016). Thus, the amount of waste generation in FY2015 was revised upward from 5,259 tons to 5,766 tons to calculate the increases and decreases.

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 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 2.5
Cost reduction Reduction in energy cost by energy saving 18.0
Reduction in waste treatment cost due to resource saving and recycling 32.9
Other Publicity effects, such as newspaper reporting, calculated in terms of advertising expenses 1.4
Total 54.8

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

FY2015 FY2016
Eight business sites in Japan (head office of Brother Industries, Ltd., Mizuho Manufacturing Facility, Hoshizaki Manufacturing Facility, Minato Manufacturing Facility, Momozono Manufacturing Facility, Kariya Manufacturing Facility, Research & Development Center, Logistics Center*1), 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.,*2 Brother Industries (Vietnam) Ltd., Brother Industries Saigon, Ltd., Brother Machinery Vietnam Co., Ltd., Brother Industries (Philippines), Inc., Brother Industries Technology (M) Sdn. Bhd.*1
  1. For Logistics Center and Brother Industries Technology (M) Sdn. Bhd. in FY2016, only "Environmental Conservation Effects" was aggregated.
  2. Brother Industries (Shenzhen), Ltd. was subject to an absorption-type merger in October 2016, with Brother Technology (Shenzhen) Ltd. as the surviving company.

[Download the PDF file.]Environmental Accounting (Detailed Data: FY2012-FY2016) [PDF/128KB]

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