Environmental Accounting

DIC has been publishing our environment and safety costs since FY1998, obtained from our own calculation methods. From FY2000, to calculate our environment costs (investments and expenses), we have been referencing the Preparation for the Establishment of an Environmental Accounting System (reported in 2000) by Japanese Ministry of Environment. For the investment amounts and expenses for safety, health, and disaster prevention, we will continue to use our own calculation methods and disclose these costs in our operations.

Environment Costs in FY2016

Table 1 Environmental Costs (Investments and Expenses)

(Millions of yen)

Category Scope Investments Expenses and ratio
(1)Costs incurred through activities aimed at minimizing the environmental impact generated within the business area through production and sales activities (costs within the business area) Costs related to preserving air and water quality, or maintaining or improving waste disposal and recycling activities 867 3,429 -
Breakdown Cost of pollution prevention and global environment conservation Cost for preserving air and water quality, or maintaining 609 1,875 20.1%
Resource recycling costs Costs related to energy conservation and internal and external waste disposal 258 1,555 16.7%
(2)Environmental costs related to management activities (management activity costs)(management activity costs*1 Costs related to environmental and safety promotion and education, environmental management and auditing related to acquisition of ISO 44 590 6.3%
(3)Environmental costs related to technological activities (technological activity costs*2 Expenses and investments related to the development of products that reduce environmental impact (including personnel expenses) 632 5,163 55.4%
(4)Environmental costs related to social activities (social activity costs) Costs of plant and office greening programs and sponsorship money 5 128 1.4%
(5)Costs related to damage inflicted on the environment (environmental damage costs) Environmental clean-up and other expenses 0 15 0.2%
total 1,504 9,325 100%
  • The investment portion of management activity costs is included in costs within the business area.
  • Technological activity costs are those related to the development of products that reduce the environmental impact and include the R&D costs of new products as well as costs for improving/customizing existing products.
  • The scope of the calculations encompasses affiliated companies and plants eligible for inclusion in calculations located on DIC Corporation offices / research-facility grounds.
  • The period covered is between January 1, 2016 and December 31, 2016.

Table 2: Economic Effects of Environmental Conservation Measures

(Millions of yen)

Income earned through waste recycling


Waste treatment cost reduction amount brought about by recycling


Cost reduction through energy conservation




Table 3 Impact of Measures to Protect the Environment

Contents of the Effects Environmental Load Indices Base Indices
1.Impact of environmental protection measures within the business area CO2emissions (calculated in tons of carbon) per unit of production FY1990(Base year) = 100 106
SOx emissions per unit of production FY1990(Base year) = 100 20.8
NOx emissions per unit of production FY1990(Base year) = 100 77.2
COD emissions per unit of production COD emissions per unit of production FY1990(Base year) = 100 111.3
Energy used (calorific value) per unit of production FY1990(Base year) = 100 96.6
Emissions of solid wastes disposed of as landfill of the FY1999 level 1.4%
Target under DIC`s reduction plan of the FY1999 level 2.40%
Fees paid for waste disposed of as landfill (FY2016 actual payment base) of the FY2015 level 48 million yen decrease
Emissions of PRTR chemicals (revised list) of the FY1999 level 45.3% *1
2.Impact of upstream and downstream environmental protection measures CO2emissions for logistics increased 400 tons, or 2%, from fiscal year 2015, and declined 5,756 tons, or 22%, from fiscal year 2006, the base year.
  • Studies were conducted on 462 PRTR class 1 designated chemical substances and 89 substances targeted for study by the Japan Chemical Industry Association (excluding class 1 designated chemical substances) and 1 substance group according to revisions to the PRTR (Pollutant Release and Transfer Register) Law in FY2014.

Safety and Health-Related Costs in FY2016

In FY2016 capital investment related to safety and health was 570 million yen for the domestic DIC Group. Expenses related to safety and health came to 1,053 million yen for the domestic DIC Group.