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 2022 Achievements

Environmental conservation costs in fiscal 2022 totaled ¥22,439 million, with investment of ¥1,524 million and expenses of ¥20,915 million.
The environmental conservation benefit amounted to ¥89,361 million, including revenue from sales of items with value of ¥541 million, savings from energy conservation of ¥512 million, and estimated benefits of ¥88,308 million.
Environmental investment included in environmental conservation costs came to ¥1,244 million in fiscal 2022.
Investments were primarily aimed at energy conversation activities that made direct contributions to the reduction of greenhouse gas emissions during production and included the following:

(1)Installation of LED lighting

(2)Replacement of air conditioners with more efficient models

(3)Installation of inverters and other energy conserving equipment at production facilities

The economic benefit of these environmental preservation measures equated to savings of ¥512 million achieved through the aforementioned energy conservation activities in Fuji Electric factories. In addition, we estimate that the economic benefit from reductions in the electricity bills of customers through the use of our products was ¥88,308 million as a result of increased sales of inverters, power conditioning systems for mega solar power generation systems, solar power generation systems, and electronic devices.

Environmental Conservation Costs and Benefits (Fiscal 2022)

Period covered: April 1, 2022 to March 31, 2023
Scope: 12 business sites + 22 consolidated subsidiaries (nine subsidiaries in Japan and 13 overseas subsidiaries)

Environmental Conservation Costs (Fiscal 2022)

(Millions of yen)

Economic Benefit of Environmental Conservation Measures (Fiscal 2022)

(Millions of yen)


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 (¥) = Σ〔(annual amount of electrical power consumed by former equipment - annual amount of electrical power consumed by new equipment)× Volume shipped annually in Japan × Electrical power standard cost〕(electrical power standard cost: ¥10/kWh)


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