Environmental Accounting

We keep quantitative records of the cost and benefits of environmental preservation and assess the impact of the Citizen Group’s environmental management activities.

Environmental preservation costs (unit: million yen)

Category		Major Initiatives	Investment	Costs
Business areas costs			311	875
Breakdown	1) Pollution prevention	Prevention of air, water and sound pollution	145	466
	2) Environmental preservation costs	Energy conservation	94	148
	3) Resource circulation	Waste reduction and recycling, effective water usage	72	261
Upstream/down stream costs		Recycling containers and packaging, Eco Mark certification	0	17
Administration costs		Environmental education, environmental management systems, tree planting and environmental improvement activities on company premises	0	326
R&D costs		LED lighting, solar-powered watches, basic watch technology	187	512
Social activity costs		Social contribution activities	0	5
Environmental remediation costs		Air pollution charges	0	5
Total			498	1,740

Benefits of environmental preservation

Quantitative benefits of environmental preservation activities
Benefits		Indicators showing benefits of environmental preservation
Benefits		Indicator	Units	FY2008	FY2009	Change
(1) Benefits of business area costs	[1] Benefits of resources invested in business activities	Energy consumption	GJ	2,453,088	2,098,796	-354,292
		Energy consumption	km³	1,703	1,589	-114
		Chemical substances	t	559	520	-39
	[2] Benefits relating to environmental impact and waste resulting from business activities	CO2 emissions (energy-derived)	t-CO2	97,753	83,779	-13,974
		Wastewater	km³	1,386	1,291	-95
		Total waste	t	6,647	5,370	-1,277
		Waste recycled	t	6,500	5,296	-1,204
(2) Benefits of upstream/ downstream costs	[3] Benefits relating to goods and services resulting from business activities	Plastic containers and packaging	t	478	475	-3
(2) Benefits of upstream/ downstream costs		Paper containers and packaging	t	231	179	-52

Actual Economic Benifit Associated with Environmental Preservation Activities (Millions of yen)

Benifit Amount		Amount
Revenue	Operating revenue from the sale of valuable resources resulting from business activities	238
Cost Reduction	Reduction in energy consumption as a result of energy saving activities	194
	Reduction in water usage costs and wastewater processing costs as a result of resource conservation activities	13
	Reduction in waste disposal costs as a result of resource conservation and recycling activities	49
	Other reductions	3
Total		497

Environmental Efficiency index

Unfortunately, our sales/environmental impact index has fallen compared to last year.

* “Environmental impact” refers to energy-derived CO2 emissions affecting environmental preservation

Scope of Environmental Accounting

We carry out environmental accounting on a consolidated basis, including Citizen Holdings and group companies functioning as major production or sales bases. Economic benefits are calculated on the basis of actual monetary benefits and do not take into account benefits resulting from risk avoidance. Total investment for the period under review came to ¥5.072 billion, with research and development costs totaling ¥9,099 billion.
All data has been compiled with reference to environmental accounting guidelines published by the Ministry of the Environment (2005 edition).

<Domestic companies>
18 companies: Citizen Holdings, Citizen Business Expert, Citizen Watch, Citizen Micro, Citizen Systems Japan, Citizen Seimitsu, Citizen TIC, Citizen Electronics, Citizen Tohoku, Citizen Finetech Miyota, Citizen Plaza, Citizen Heiwa Watch, Citizen Machinery, Citizen Watch Kagoshima, Citizen Electronics Funehiki, Citizen Precision Hachinohe, Citizen Yubari, Citizen Logistics Service

<Reporting Period>
April 1, 2009 to March 31, 2010