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Environmental Management

Environmental accounting

Comparison of all costs and resultant savings related to environmental activities NYK's In-house Classifications
Classification according to the Ministry of the Environment's Environmental Accounting Guidelines

The basic concept behind NYK's environmental accounting is to correctly capture the expenses required for the protection of the environment and repeatedly review our findings so that we can engage in appropriate environmental conservation as a part of our business activities.

Fiscal year 2010 summary

During Fiscal year 2010 we emphasized the development of innovative technologies and programs to protect the global environment. This resulted in an increase in the environmental R&D budget. In addition, effective efforts to reduce fuel consumption (for example, slower cruising speeds) enabled us to increase the resultant savings related to prevention of global warming.

Comparison of all costs and resultant savings related to environmental activities

( Unit: millions of yen )
  Fiscal year 2009 Fiscal year 2010
Environmental
protection cost		 Year-on-year
savings		 Environmental
protection cost		 Year-on-year
savings
Reduction of accidents through safety promotion activities
982
1,445
740
-778
Prevention of global warming and air pollution, conservation of marine environments, conservation of resources, and deployment of environmental technologies
3,272
10,843
3,484
14,843
Total
4,254
12,288
4,223
14,065

* Reduction in accident rate from safety promotion activities calculated as year-on-year value. Effect compared to Fiscal year 1996 (company's base year) was 3,771 million yen.

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NYK's In-house Classifications

( Unit: millions of yen )
Environmental policies Objectives Items Environmental
protection cost
1. Continual improvement Maintenance of environment management systems Construction, operation, certification (including personnel costs)
199
2. Complying with laws and
regulations		 Restorative work in response to environmental
degradation		 Restorative work in response to marine pollution, etc.
0
3. Ensuring safe operations Reducing accidents and trouble NAV9000 and other safety promotion activities (including personnel costs)
541
4. Prevention of global warming and air pollution, protecting ocean environments, saving natural resources Preventing global warming and air pollution Use of fuel additives to improve combustion; underwater cleaning; propeller polishing, etc.
695
Preventing marine pollution Adoption of highly corrosion-resistant steel plate on VLCC cargo tank, etc.
5
Conservation of natural resources Environmentally conscious purchases*1
0
5. Use of environment friendly technologies Preventing global warming and air pollution Adoption of a ship design that reduces wind resistance; installation of propulsion improvement units; installation of electronically controlled engines; and installation of shoreside electric power units
2,101
Preventing destruction of the ozone layer Ship air-conditioners, refrigerators/freezers etc.
0
Preventing marine pollution NYK bilge treatment system, etc.
242
R&D expenses Development of international voyages management system, development of a system for monitoring ship performance, etc.
407
6. Environment education Raising environmental awareness and promoting our Green Policy Environmental e-learning, environmental protection campaign's etc.
6
7. Community activities to promote environmental awareness Environmental information disclosures, social contributions, etc. Expenses for CSR report, sponsorship of environmental organizations, etc.
27
Total
4,223

*1 The company uses FSC-certified paper, but the price difference is not substantial and is thus recorded as zero

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Classification according to the Ministry of the Environment's Environmental Accounting Guidelines

( Unit: millions of yen )
Environmental protection costs
Classification Investment Expenses
1.
 Cost within NYK business activities    
a. Pollution prevention cost
317
0
b. Global environmental protection cost
2,041
685
c. Recycling cost
0
0
2.
 Upstream and downstream cost
0
0
3.
 Management activity cost    
a. Operation and maintenance of environmental management systems
0
740
b. Environmental information disclosure, environmental advertising
0
5
c. Environmental education and training
0
6
d. Expenses for environmental improvement
0
0
4.
 R&D cost    
Environmental-load reduction
0
407
5.
 Social contribution activities cost    
Social contribution activities
0
22
6.
 Environmental damage response cost
0
0
Total
2,358
1,865

*1 The period is from April 1, 2010, to March 31, 2011 (The calculation period for activities to reduce ship fuel consumption is from January 1, 2010, to December 31, 2010.)

*2 The scope is primarily business activities associated with the headquarters and branch offices, NYK-operated terminals, fleet, and ancillary activities in Japan (Expenses to maintain ISO14001 certifications are included for certified group companies in North America, Europe, South Asia, and East Asia )

*3 The Ministry of Environment's Fiscal year 2005 Environmental Accounting Guidelines were used

*4 Investment amount refers to cost for depreciable environment-related facilities acquired during the term

*5 Expenses include maintenance and management of facilities for the purpose of environmental protection and associated personnel costs, but do not include depreciation

*6 Cost calculations do not include costs to comply with legal requirements and the like, and cover only voluntary environmental protection activities

*7 Results are noted only to the extent that impact can be quantified