To understand the costs and benefits of its environmental protection activities, Mazda has implemented an environmental accounting system, which also aims to raise the efficiency of these activities.
In FY2006 we expanded the scope of accounting to include overseas production subsidiaries and began compiling more detailed information.
Environmental protection costs are calculated as expenses for reducing environmental impact, for investment to ensure environmental protection benefits for the future, and management and other costs. These costs are computed for projects and product lifecycles throughout all areas of our business.
During FY2006, Mazda's unconsolidated environmental protection costs rose Y4,925 million. The principal reason for this increase was a Y5,458 million increase in R&D costs, owing primarily to higher personnel costs. The Y0.9 billion increase in To understand the costs and benefits of its environmental protection activities, Mazda has implemented an environmental accounting system, which also aims to raise the efficiency of these activities. In FY2006 we expanded the scope of accounting to include overseas production subsidiaries and began compiling more detailed information. Environmental Accounting FY2006 Performance Report global environmental protection costs stemmed from the acquisition of machining centers and other investments designed to save energy. Pollution prevention costs decreased Y968 million, mainly because of a decline following the completion of investment related to our Three-Layer Wet Paint system.
In addition, global environmental protection costs associated with overseas production companies fell Y2,643 million. This substantial decrease reflects the absence of extraordinary investments during FY2006, following facility investments at overseas subsidiaries in FY2005.
- Environmental Protection Costs (Unconsolidated)
(Millions of yen)
| Category | Major activities | Investment | Cost | Total | |
|---|---|---|---|---|---|
| Business area | Preventing pollution |
Environmental legislative measures Examples: Smoke and soot collection device improvements, new cupola collection equipment, new equipment for deodorization of chemical cleaning, sand recovery equipment, new fluidized-bed roasting furnace, roadway repair to prevent soil contamination and ground subsidence, etc. |
1,833 | 3,030 | 4,863 |
| Protecting the global environment |
Measures to prevent global warming Examples: Increased use of machining centers, use of high cube containers, acquisition of returnable containers, revision of tractor routes and methods to eliminate the need for tractors driven by humans, etc. |
1,799 | 2,402 | 4,201 | |
| Recycling resources |
Effective resource use, recycling Examples: Acquisition of sand recovery equipment, environmental equipment for fluidized bed roasting furnace, oil-water separators, etc. |
647 | 1,417 | 2,064 | |
| Upstream/ downstream |
Collection of end-of-life vehicle bumpers and reduction of environmental impact of container packaging | 0 | 362 | 362 | |
| Management activity |
Environmental management, environmental education, monitoring of environmental impact, information disclosure | 5 | 990 | 995 | |
| Research and development |
R&D into products, production methods and logistics, contribution to reduced environmental impact | 1,279 | 38,895 | 40,175 | |
| Social activities |
Scenery and greenery improvements, support of community inhabitants and organizations | 0 | 113 | 113 | |
| Environmental damage |
- | 0 | 0 | 0 | |
| Total | 5,563 | 47,209 | 52,772 | ||
Notes:
- Data collection period: April 1, 2006, through March 31, 2007
- Scope of Data Collection: All areas of Mazda
- Basis of Data Collection: Data for Mazda on an unconsolidated basis is calculated according to Environmental Accounting Guidelines (2005 Edition). Information is collected in line with cash flow management; depreciation and amortization costs are not recorded. Environmental protection costs (investment and management costs) are calculated as 10% of selling, general and administrative expenses.
- Other: Data collection is limited to items for which environmental protection is the express purpose. Furthermore, collection is limited to areas in which quantitative evaluation is possible.
- Environmental Protection Costs (Mazda Group)
(Millions of yen)
| Category | Investment | Cost | Total | |
|---|---|---|---|---|
| Business area | Preventing pollution | 1,956 | 3,428 | 5,384 |
| Protecting the global environment | 1,822 | 2,476 | 4,298 | |
| Recycling resources | 670 | 2,058 | 2,728 | |
| Upstream/downstream | 0 | 386 | 386 | |
| Management activity | 10 | 1,211 | 1,221 | |
| Research and development | 1,380 | 39,420 | 40,800 | |
| Social activities | 0 | 114 | 114 | |
| Environmental damage | 0 | 2 | 2 | |
| Total | 5,838 | 49,095 | 54,933 | |
Notes:
- Data collection period: April 1, 2006, through March 31, 2007
- Scope of Data Collection: Mazda Motor Corporation, six domestic consolidated subsidiaries (manufacturing: Kurashiki Kako Co., Ltd., Microtechno Corp., Mazda Engineering & Technology Co., Ltd., Toyo Advanced Technologies Co., Ltd.; Logistics: Malox Co., Ltd.; other: Mazda Ace Co., Ltd.), four domestic affiliates (manufacturing: Yoshiwa Kogyo Co., Ltd., Japan Climate Systems Corporation; Logistics: Mazda Processing Chugoku Co., Ltd., Other: Sanfrecce Hiroshima FC), one overseas consolidated subsidiary (manufacturing: Compania Colombiana Automotriz S.A.) and two overseas equity-method affiliates; Manufacturing: AutoAlliance International, Inc.; AutoAlliance (Thailand) Company Limited)
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