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Environmental Accounting
Mazda has implemented an environmental accounting system in order to more accurately grasp the costs and
benefits of our environmental protection activities, and uses this understanding to make corporate activities more
efficient. From FY 2004, Groupwide environmental accounts are included in the report.
The cost of environmental protection
The cost of environmental protection is calculated as the cost of reducing
the burden placed on the environment, the cost of investing in
environmental protection benefits for the future, and includes management
costs for projects and product lifecycles in all our areas of business. In
comparison with the previous year, the cost of our environmental protection
work in FY 2004 showed an increase in research and development costs,
including prototyping (an increase of 3,510 million yen), an increase in
global environment protection cost, including switching to alternate fuels
and energy-saving measures (890 million yen), increase in social activities
costs (610 million yen) and an increase in environmental recycling costs,
such as constructing a new stockyard for industrial waste (400 million yen).
Mazda's calculations are compatible with the environmental accounting
guidelines and guidebook published by the Ministry of the Environment, but
are collated using our own standards.
Environmental protection costs (including domestic Group companies) (100 million yen)
Category Capital investment Expenditure Total
Cost of preventing pollution
24.8
21.6
46.4
Cost by business area
Cost of protecting the global environment
10.5
20.4
30.9
Cost of recycling resources
1.7
18.6
20.3
Upstream/downstream costs
Management activity costs
R&D costs
Cost of social activities
Cost of environmental damage
Total environmental cost
3.4
0.1
10.8
0.0
0.0
51.3
2.8
10.6
353.2
9.9
0.0
437.1
6.2
10.7
363.9
9.9
0.0
488.4
Scope of consolidated environmental accounting
45 firms included in consolidated financial report
1. 35 consolidated subsidiaries
Dealers 20
Parts dealers 9
Distribution 1
Procurement 3
Other 2
2. 10 equity-method subsidiaries
Dealers 3
Parts dealers 3
Distribution 1
Procurement 2
Other 1
1.Scope of consolidaled environmental accounting 2.Includes Mazda and 45 subsidiary companies
Environmental protection cost (Mazda, unconsolidated)
Ministry of the Environment guideline category
Major activities
Environmental cost (100 million yen)
Capital investment
Expenditure
Cost by business area
Cost of preventing pollution
Cost of protecting the global environment
Cost of recycling resources
Prevention of air, water and soil pollution
Eg. Measures dealing with VOCs, dust, and paint drying ovens
Activities to help prevent global warming and destruction of the ozone layer
eg. Line integration, switch to alternate energy sources, etc.
Effective utilization, recycling, waste processing and disposal
eg. New recovery system for casting sand, new waste stockyard
24.6
10.2
1.7
20.5
19.3
15.8
Upstream/downstream costs
Green procurement (price difference), product recovery and recycling, reduced
environmental impact from packaging and wrapping
3.4
2.4
Management activity costs
Environmental training for employees, construction and operation of an environmental
management system, monitoring and measurement of environmental impact,
information disclosure, nature protection and beautification around company facilities
0.1
8.7
Research and development costs
R&D into products, production methods and logistics contributing to reduced
environmental impact
10.2
350.1
Cost of social activities
Nature protection, greenery and scenic improvement, financial and other support
for local residents and groups, information provision
0
9.9
Cost of environmental damage
Remediation expenses, compensation for environmental damage, insurance, etc.
0
0
Total environmental cost
50.2 426.7
476.9
Criteria for calculation of environmental accounts
(1) Scope of data collection: Scope covered by Mazda Motor Corporations own accounting practices (2) Facilities investment: Cash flow managed base, with depreciation not included. Categories that do not fall naturally into fiscal year accounting are included for the current period only.
In the case of multi-objective facilities investment, only the environmental aspect is included in the accounts. (3) Costs: Staff costs, general costs (4) Research and development costs: Facilities investment, costs and staff costs for research and development were included.
Social & Environmental Report 2005