Results of FY 1999 Green Accounting (April 1999 - March 2000)

Environmental Impact Reduction Green Ink indicator + 25 ECO (+3 ECO over FY 1998) Social Contributions Green Ink indicator - 20 ECO (-3 ECO under FY 1998)

Green Ink Accounting Ideology

Corporations conduct activities using funds raised in capital markets, with the results of their investments expressed in the form of profits. Positive results are "black ink", and negative results, "red ink". This balance is disclosed to investors in the form of an annual report. Extending these concepts, the products we supply are made from resources and energy procured from the natural environment. Furthermore, the wastes created during the production process and after consumption are released into the environment. If we carry out our business activities relying upon the offerings of nature, shouldn't we report on those revenues and expenditures as well? TaKaRa calls the revenues and expenditures of our corporate business activities, as seen from an environmental standpoint, "green ink". We report the results to society in the annual report we call the "Green Ink Accounting Annual Report".

Publishing Contributions by and to the Earth as Two Green Ink Indicators

What are corporate contributions to the environment? First of all, if we think of the impact of business activities on the environment as "red ink", then the indicator that shows the result of efforts to reduce this deficit is called "Environmental Impact Reduction Green Ink." In other words, this "Green Ink" indicates the reduction of a negative. There are also contributions that are purely positive: investments to social causes, such as natural conservation activities, made from a portion of profits from corporate activities that use resources received from the Earth. The results of these efforts are reported as the indicator "Social Contribution Green Ink." These indicators are useful tools for environmental management within the company, and their yearly disclosure to public scrutiny gives us additional incentive for the continuation of environmental activities.

The Role of the Two Green Ink Indicators

There are many factors affecting the environmental impact created by corporations. Businesses develop activities to reduce environmental impact, from reducing CO2, SOx, and NOx emissions to cutting waste. The results of these activities can be clarified through quantification of the rate of the appropriate reductions, though it requires an expert to interpret from this piecemeal data on improvements how much a corporation has contributed to environment improvement. We developed "Environmental Impact Reduction Green Ink" as a single indicator that consolidates the effect of our various environmental impact reduction activities and translates their effects into easy-to-understand terms for the public and our employees. There are many ways a corporation can contribute to the environment. While it goes without saying that lessening environmental impact is the chief among these, contributions to society from the profits of business activities can also be considered a type of contribution. When a company is doing well and increases production, there is a correspondingly greater burden on the environment. In this case, an increase in "Social Contribution Green Ink" can offset the increased responsibility toward the environment. Dividing "green ink" into the two indicators, "Environmental Impact Reduction Green Ink" and "Social Contribution Green Ink", allows us to account for diverse forms of contribution to the environment and creates an overall indicator for environmentally conscious management.