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Environmental Accounting

Environmental Preservation Costs and Economic Benefits (Non-consolidated)

Through environmental accounting in accordance with guidelines by the Ministry of the Environment, MGC has quantitatively calculated and released the investment amount and costs of environmental preservation required for the business activities of non-consolidated, as well as the real economic benefits obtained.

  • Investment amount

    The total amount of investment related to environmental preservation activities in fiscal 2019 was approximately 690 million yen. Major investments included improvements to noise control facilities for manufacturing equipment at the Niigata Plant.

  • Expenses

    Total expenses related to environmental conservation activities in fiscal 2019 were 8.5 billion yen. Of these, the highest expense was 2.7 billion yen for research and development, accounting for around 32% of the total.

  • Economic benefits

    The reduction of expenses through energy saving measures and the income from the sale of unneeded items generated in our business activities were recorded as real economic benefit.

Economic benefit

Title Item FY2018
(millions of yen)
FY2019
(millions of yen)
Income Profit on sale of valuable waste, etc. 29.6 44.7
Reduction of expenses Effects due to energy saving,
power savings from solar power generation
182.6 398.4

Environmental Preservation Cost (Investments and Costs Classified According to Business Activity)

Breakdown Main areas of activity FY2018
(millions of yen)
FY2019
(millions of yen)
Investment Expenses Investment Expenses
Onsite cost Pollution prevention cost Air pollution prevention Upgrade and updating of exhaust gas treatment facilities 10.1 1,021.4 5.7 925.6
Water pollution prevention Upgrade of wastewater treatment facilities and measuring equipment 82.8 1,750.0 106 1,669.2
Soil, Noise Measures to prevention of soil infiltration and noise 138.2 11.7 79.5 0.1
Global environmental preservation cost Upgrade of air conditioning equipment, replacement of mercury-vapor lamps and other lighting with LED fixtures 114.6 1,664.0 138.6 1,805.7
Resource recycling cost Recycling of waste 69.5 1,118.8 0.0 836.6
Up or down stream cost Collection and reuse of product containers 0.0 42.7 0.0 34.9
Management activity cost Greening of surrounding areas, environmental-related analysis, disclosure of environmental information 42.8 470.9 25.0 475.3
R&D cost Research and development of energy-saving technologies and eco-friendly products 222.1 2,376.0 336.8 2,716.1
Social contribution cost Membership dues of nature conservation organizations, donations of books 0.0 8.9 0.0 8.4
Environmental damage cost Pollution impacts levy 0.0 71.1 0.0 73.8
Total 679.9 8,535.5 691.5 8,545.7
  • Compliance with the Ministry of the Environment’s Environmental Accounting Guidelines 2005
  • Period:From April 1, 2019 to March 31, 2020
  • Scope:Non-consolidated
  • Methods:Investments were apportioned according to the ratio of the approved or enforced amount of capital expenditure to environmental preservation.
    Expenses were apportioned according to the ratio of expenses related to environmental preservation and include depreciation allowance.