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 2017 Overview
In fiscal 2017, we focused on initiatives for conserving the marine environment and curbing global warming, such as adopting low-friction, antifouling paint for ship hulls, removing surface roughness through bilge blasting, and retrofitting existing vessels with SOx scrubbers. As a result, environmental conservation costs increased. Promotion of fuel consumption reductions also increased the environmental conservation effect compared to the previous year.
Comparison of All Costs and Results Related to Environmental Activities
(Millions of yen)
|Prevention of global warming and air pollution, conservation of marine environments, conservation of resources, and deployment of environmental technologies||2,309||3,068||2,911||3,400|
NYK's In-house Classifications
(Millions of yen)
|1. Continual improvement||Maintenance of environment management systems||Construction, operation, ISO certification (including personnel costs)||87|
|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)||197|
|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.||650|
|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.||1,091|
|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.||296|
|R&D expenses||Smart fleet operations, Technology to reduce the CO2 and NOx emissions of large main engines in vessels||582|
|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.||7|
- *The Company uses FSCR-certified paper, but the price difference is not substantial and is thus recorded as zero.
Classification According to the Environmental Accounting Guidelines of the Ministry of the Environment
(Millions of yen)
|Environmental protection cost|
|(1)||Cost within NYK business activities:|
|a. Pollution prevention cost||561||60|
|b. Global environmental protection cost||441||975|
|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||284|
|b. Environmental information disclosure, environmental advertising||0||4|
|c. Environmental education and training||0||1|
|d. Expenses for environmental improvement||0||0|
|Environmental burden reduction||0||582|
|(5)||Social contribution activities cost:|
|Social contribution activities||0||3|
|(6)||Environmental damage response cost||0||0|
- 1The period is from April 1, 2017, to March 31, 2018 (The calculation period for activities to reduce ship fuel consumption is from January 1, 2017, to December 31, 2017.)
- 2The scope is primarily business activities associated with NYK's headquarters and branch offices, NYK-operated terminals, fleet, and ancillary activities in Japan. (Expenses to maintain ISO 14001certification are included for certified Group companies in North America, Europe, South Asia, and East Asia.)
- 3The Ministry of the Environment's fiscal 2005 Environmental Accounting Guidelines were used.
- 4Investment amount refers to cost for depreciable environment-related facilities acquired during the term.
- 5Expenses include maintenance and management of facilities for the purpose of environmental protection and associated personnel costs, but do not include depreciation.
- 6Cost calculations do not include costs to comply with legal requirements and the like and cover only voluntary environmental protection activities.
- 7Results are noted only to the extent that impact can be quantified.