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Environmental Accounting

Environmental Preservation Costs and Economic Benefits (MGC Alone)

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 MGC alone, as well as the real economic benefits obtained.

  • Investment amount

    The total amount of investment related to environmental preservation activities in fiscal 2018 was approximately 680 million yen. Major investments included improvements to phenol recovery facilities at the Niigata Plant.

  • Expenses

    Total expenses related to environmental conservation activities in fiscal 2018 were 8.4 billion yen. Of these, the highest expense was 2.4 billion yen for research and development, accounting for 28% 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 FY2017
(millions of yen)
(millions of yen)
Income Profit on sale of valuable waste, etc. 29.5 29.6
Reduction of expenses Effects due to energy saving 1,064.1 182.6

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

Breakdown Main areas of activity FY2017
(millions of yen)
(millions of yen)
Investment Expenses Investment Expenses
Onsite cost Pollution prevention cost Air pollution prevention Upgrade and updating of exhaust gas treatment facilities 57.1 771.2 10.1 1,021.4
Water pollution prevention Upgrade of wastewater treatment facilities and measuring equipment 55.7 1,602.0 82.8 1,750.0
Soil, Noise Prevention of soil infiltration, updating of odor sensors 16.9 0.0 138.2 11.7
Global environmental preservation cost Replacement of mercury-vapor lamps and other lighting with LED fixtures, upgrade of air conditioning equipment 90.0 1,928.3 114.6 1,664.0
Resource recycling cost Measures to extend the lives of catalysts, recycling of waste 0.2 931.6 69.5 1,118.8
Up or down stream cost Retrieval and reuse of product containers; Container and Packaging Recycling Act 0.0 55.5 0.0 42.7
Management activity cost Greening of surrounding areas, environmental-related analysis, disclosure of environmental information 24.9 487.8 42.8 470.9
R&D cost Research and development of energy-saving technologies and eco-friendly products 259.2 2,498.4 222.1 2,376.0
Social contribution cost Environmental preservation organization membership dues 0.0 10.1 0.0 8.9
Environmental damage cost Pollution impacts levy 0.0 77.7 0.0 71.1
Total 504.0 8,362.6 679.9 8,535.5
  • Compliance with the Ministry of the Environment’s Environmental Accounting Guidelines 2005
  • Period:From April 1, 2018 to March 31, 2019
  • Scope:MGC alone
  • 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.