Environmental Accounting

The objective behind the introduction of environmental accounting

There are significant environmental loads generated by the production of amino acids, etc., by fermentation, and Ajinomoto Group undertakes a variety of environmental protection measures to help reduce those loads. We have since 1992 been independently collecting data on environmental costs, and as part of our promotion of "environmentally-conscious management" we consider "environmental accounting" to be an important tool that we expect to be able to use as a effective tool for environmental protection. Environmental accounting was introduced in 2000. Furthermore, we believe that it is important for industry to meet its responsibility to have its activities understood by its stakeholders, so we have been disclosing environmental accounting data on an ongoing basis.

Aggregation scope:Ajinomoto Co., Inc.
Aggregation period:April 1, 2004 to March 31, 2005

Environmental Conservation Costs Results of environmental conservation

Environmental Conservation Costs

diagram of Environmental Conservation Costs

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Results of environmental conservation

diagram of Results of environmental conservation

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Economic benefit accompanying environmental conservation measures

diagram of Economic benefit accompanying environmental conservation measures

♦Scope of environmental accounting data aggregation
As was the case in 2003, data was collected in 2004 covering the three Japanese domestic production sites of Ajinomoto Co., Inc., laboratories, headquarters, and all branch offices.

♦Means of aggregating environmental accounting data
Environmental costs and effects were aggregated in reference to the "Environmental Cost Accounting Guidelines, 2005 Edition" published by the Ministry of the Environment. However, data on environmental effects are managed internally, and only measurable and substantial effects have been included. Accordingly, estimates of "presumed effects" and "incidental effects" have not been calculated.
1. In relation to environmental conservation, only costs for departments engaged in direct operational management and general administration, as well as costs for technical support departments, were included.
2. Only investments that had strict environmental objectives were included.
3. Depreciation costs are those amounts identified in financial accounts.
4. The total amounts for green purchases were included.
5. The effect of cost reductions from energy conservation was calculated as the equivalent cost of the actual energy saved.
6. A field named "other" has been established in addition to environmental conservation costs; it shows the value of disposed products.

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