Sustainability
Environmental Accounting

Fuji Electric introduced environmental accounting in fiscal 2000 as a key means of assessing environmental management performance. Using the 2005 guidelines released by Japan's Ministry of the Environment, we established in-house calculation methods for environmental preservation costs and benefits. Each year, we ascertain and analyze these costs and benefits and disclose this information to the public.

Stance toward Environmental Accounting Calculations

We calculate “direct benefits,” such as revenue from sales of valuable items and energy conservation, as well as “estimated benefits,” which is a conversion to monetary value of the energy-savings benefit from the use by customers of existing environmentally friendly products (such as vending machines and some inverters) and energy-creating products (such as solar cells and geothermal systems).

Fiscal 2025 Results

Environmental protection costs totaled 30.58 billion yen, consisting of 1.64 billion yen in investment and 28.94 billion yen in expenses.
Environmental protection benefits totaled 1,326.40 billion yen, comprising 2.46 billion yen in revenue from the sale of valuable materials, 310 million yen in savings through energy conservation, and 1,323.63 billion yen in estimated benefits.
Environmental investment accounted for 1.64 billion yen of the fiscal 2025 environmental protection costs.
ey breakdowns include:

（1）Replacement of air conditioners with more efficient models

（2）Investments in product development

（3）Upgrades to energy-saving equipment (heat pumps, etc.)

Economic benefits associated with environmental protection measures resulted in savings of 310 million yen due to the aforementioned energy-saving activities at our factories. Additionally, the estimated economic benefit from reduced electricity costs achieved by customers using our products reached 1,323.63 billion yen.

Environmental Conservation Costs and Benefits (Fiscal 2025)

Period covered: April 1, 2025 – March 31, 2026
Scope: 12 business sites + 22 consolidated subsidiaries (nine subsidiaries in Japan and 13 overseas subsidiaries)

Environmental Conservation Costs (Fiscal 2025)

(Millions of yen)

Categories corresponding to business operations Main Content Total
(Compared to the previous term)		 Breakdown
Amount invested Expenses
1 Costs within the business sites 11,130(-8,392) 1,313 9,817
Pollution prevention costs Cost of improving and maintaining atmospheric and wastewater emission treatment facilities and sound dampening equipment 8,498(+1,962) 111 8,388
Global environmental conservation costs Installation and maintenance of energy efficient equipment 1,678(-8,900) 1,195 483
Materials recycling costs Waste reduction, maintenance and management costs 954(-1,453) 7 947
2 Upstream/downstream costs Cost of processing discarded products 0(0) 0 0
3 Management costs Costs of environmental education for employees, environmental management systems operation, monitoring and measurement of environmental impact, environmental conservation measures 966(+495) 0 966
4 R&D costs R&D costs for environmental conservation, such as energy conservation 18,193(-1,615) 324 17,869
5 Social activity costs Greenery preservation, greening costs, and the cost of supporting environmental activities 76(-7) 0 76
6 Environmental damage costs Cost of excavation and processing of contaminated ground, charges for the impact of pollution 212(+193) 0 212
Total
 30,576(-9,327) 1,637 28,939
Economic Benefit of Environmental Conservation Measures (Fiscal 2025)

(Millions of yen)

Categories Main details Total
(Compared to the previous term)
Revenue Amount received from sale of valuable items for recycling 2,456(+397)
Savings Reduction of expenses through energy conservation, reduction of landfill waste, reduction of water bill through water conservation 308(+31)
Estimated benefit Energy reduction through the use of environmentally friendly products by customers 1,323,632(+105,333)
Total 1,326,396(+105,761)

Note1

The “The “estimated benefit” is calculated as the economic benefit of energy savings when products with improved energy efficiency are used by customers, and is converted using the following formula:
Benefit (¥) = Our products' annual contribution to power consumption reduction (kWh) × Electric power standard cost (¥10/kWh)

Note2

The “estimated benefit" includes environmentally friendly products (such as vending machines, inverters), and energy creation products (such as solar cells, geothermal power generators ).

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