FY 1998 (April 1998 - March 1999): Our Environmental Impact Reduction Green Ink indicator for FY 1998 was + 22 ECO, while our Social Contributions Green Ink indicator was - 17 ECO.

What is Green Ink Accounting

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. On the other hand, 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 through the offerings of nature, shouldn't we report on those revenues and expenditures as well? We call 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".

Two Indicators for Green Ink

If we think of the impact of business activities on the environment as "red ink", then "green ink" is the result of efforts to reduce this deficit. Specifically, we calculate two "green ink" indicators: "Environmental Impact Reduction Green Ink", which evaluates efforts to reduce the burden on the environment, and "Social Contribution Green Ink", which evaluates the portion of profits from corporate activities contributed to social causes such as natural conservation activities. 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.

Roles of the Green Ink Indicators

There are many factors that measure the environmental burden created by corporations, but typically only volumes and rates of improvement are reported. A comprehensive evaluation is impossible. As a significant indicator of our environmental management, we have chosen to consolidate data on our environmental impacts into a single indicator, the "Environmental Impact Reduction Green Ink". While loss of accuracy, loss of objectivity due to individual opinion, and other problems can occur during the process of consolidating various indicators, the ability to express results in an easy-to-understand format makes such an indicator a significant step toward targeted management of environmental activities. Such efforts are already underway in Switzerland and other European countries. The "Social Contribution Green Ink" indicator indicates changes in expenditures for natural conservation and environmental education activities. Although the results of social contributions cannot be measured in monetary units alone, we use this as the most objective measurement for creating the indicator. The "Environmental Impact Reduction Green Ink" indicator depicts our reduction in overall environmental impact. Accordingly, an increase in production volume (corporate growth) has a large effect on the "Environmental Impact Reduction Green Ink" indicator. Green Ink Accounting, with its goal of settling accounts between corporations and the global environment, must look at overall impacts. 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 impact on the environment. But, the reverse side of a healthy business is the ability to increase social contribution. Our dividing "green ink" into two separate measures allows an accounting for diverse forms of contribution to the environment and creates an overall indicator of environmentally conscious management.