Environmental Accounting

The basic concept behind our 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 2016 Overview
Efforts are underway to protect the earth's environment and preserve biodiversity, including implementation of electronically controlled engines, a ballast water management system, and an NYK-standard bilge treatment system, etc. Implementation of LNG-fueled tugboats and introduction of hybrid transfer cranes at container terminals was completed, resulting in a year-on-year decrease of environmental protection costs.

Comparison of All Costs and Resultant Savings Related to Environmental Activities

(Millions of yen)

  FY2015 FY2016
Environmental
protection
cost
Year-on-year
savings
Environmental
protection
cost
Year-on-year
savings
Total 4,905 4,042 2,309 4,267
Reduction of accidents through safety promotion activities* 283 680 377 901
Prevention of global warming and air pollution, conservation of marine environments, conservation of resources, and deployment of environmental technologies 4,622 3,362 1,932 3,366

* Reduction in accident rate from safety promotion activities calculated as year-on-year value. Effect compared with fiscal 1996 (the Company's base year) was ¥4,640 million.

NYK's In-house Classifications

(Millions of yen)

Environmental policies Objectives Items Environmental
protection cost
Total 2,309
1. Continual improvement Maintenance of environment management systems Construction, operation, ISO certification (including personnel costs) 161
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) 216
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; activities to reduce ship fuel consumption; propeller polishing, etc. 491
Preventing marine pollution Use of corrosion-resistant steel in VLCC cargo tanks, etc. 0
Conservation of natural resources Environmentally conscious purchases* 0
5. Use of environment-friendly technologies Preventing global warming and air pollution Installation of electronically controlled engines, installation of exhaust gas economizers and other energy-saving devices, low-sulfur fuel measures, etc. 587
Preventing destruction of the ozone layer Ship air-conditioners, refrigerators/freezers, etc. 0
Preventing marine pollution Ballast water management systems and the NYK bilge treatment system, etc. 158
R&D expenses Smart fleet operations, Technology to reduce the CO2 and NOx emissions oflarge main engines in vessels 685
6. Environment education Raising environmental awareness and promoting our Green Policy Environmental e-learning, environmental protection campaigns, etc. 1
7. Community activities to promote environmental awareness Environmental information disclosures, social contributions, etc. Expenses for NYK report,sponsorship of environmental organisations, etc. 10

* The Company uses FSCR-certified paper, but the price difference is not substantial and is thus recorded as zero.

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

(Millions of yen)

Environmental protection cost
Classification Investment Expenses
Total 749 1,560
(1) Cost within NYK business activities:    
a. Pollution prevention cost 183 0
b. Global environmental protection cost 566 487
c. Recycling cost 0 0
(2) Upstream and downstream cost 0 0
(3) Management activity cost:    
a. Operation and maintenance of environmental management systems 0 377
b. Environmental information disclosure, environmental advertising 0 5
c. Environmental education and training 0 1
d. Expenses for environmental improvement 0 0
(4) R&D cost:    
Environmental burden reduction 0 685
(5) Social contribution activities cost:    
Social contribution activities 0 5
(6) Environmental damage response cost 0 0
Calculation methodology:
  1. The period is from April 1, 2016, to March 31, 2017. (The calculation period for activities to reduce ship fuel consumption is from January 1, 2016, to December 31, 2016.)
  2. The scope is primarily business activities associated with NYK's headquarters and branch offices, NYK-operated terminals, fleet, and ancillary activitiesin Japan. (Expenses to maintain ISO 14001certification are included for certified Group companies in North America, Europe, South Asia, and East Asia.)
  3. The Ministry of the Environment's fiscal 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.

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