Environmental Accounting｜Eco-Management | Environment | CSR(Corporate Social Responsibility)

Environmental Accounting

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Action Plan

Self-assessment rating　○：Targets achieved　△：Targets partially achieved　×：Targets not achieved

FY2010 Targets	Continue implementation of environmental accounting Implement MFCA (Material Flow Cost Accounting)
FY2010 Results	Environmental accounting implemented at 2 additional sites in Japan (OMRON Relay & Devices Corporation’s Iida Factory and OMRON Switch & Devices Corporation’s Okayama Head Office) MFCA implemented at 1 additional supplier	○

Basic Policies

OMRON has been implementing environmental accounting practices to quantitatively analyze and manage investments and costs associated with environmental preservation, as well as the resulting environmental and economic benefits. Since fiscal 2006, an environmental management accounting method known as "Material Flow Cost Accounting" (MFCA) has been deployed and promoted throughout the world.

FY2010 Overview

In fiscal 2010, an additional two sites in Japan launched environmental accounting, and integration/consolidation of some sites occurred, adding up to a total of 42 sites adopting environmental accounting.

Of environmental costs spent during fiscal 2010, environmental investments amounted to 120 million yen, or an increase of 60 million yen compared to the previous fiscal year. Environmental expenses were 3.6 billion yen, or an increase of 1.02 billion yen compared to the previous fiscal year. As for environmental performance, energy usage, resource usage and total volume of waste, etc. all grew due to the increased business volume.

Of economic benefits, proceeds from the sale of usable resources increased 350 million yen compared to fiscal 2009. However, cost-saving did not improve due to the increased resource usage accompanying expanding business volume.

Since fiscal 2006, deployment of MFCA has been promoted for production sites in Japan, giving rise to productive results. OMRON has now been concentrating on introducing MFCA into its supply chain in Japan. As a result, deployment was completed at five OMRON sites throughout the world and four supplier sites by the end of fiscal 2010. A plan for fiscal 2011 is to deploy MFCA at seven additional supplier sites.

Environmental Costs, Environmental Performance Benefits, Economic Benefits Resulting from Environmental Conservation Measures