Environmental Accounting

Environmental Conservation Cost

(Units: million yen)

Category		Major initiatives	FY2019		FY2020		FY2021		FY2022		FY2023
			Environment		Environment		Environment		Environment		Environment
			Investments	Expenses	Investments	Expenses	Investments	Expenses	Investments	Expenses	Investments	Expenses
(1) Costs within business area			273	1,399	301	1,431	238	1,443	234	1,345	482	1,409
Breakdown	1. Cost of pollution prevention	Prevention of air pollution, water contamination and noise (sound insulating wall, car-washing equipment, etc.)	13	4	1	6	4	6	2	6	1	4
	2. Global environmental conservation cost	Prevention of global warming and destruction of the ozone layer (environmentally friendly vehicles, solar power generation systems and power-saving equipment, etc)	258	259	295	289	226	323	230	326	480	332
	3. Cost of circulation of resources	Waste processing, water saving, purchase of uniforms recycling PET bottles and recycling of tires, etc.	2	1,136	4	1,136	8	1,114	2	1,013	1	1,073
(2) Upstream and downstream cost		Promoting green purchasing	-	-	-	-	-	354	-	357	-	419
(3) Cost of management activities		Introduction of environmental managementsystems, environmental advertising,environmental education and disclosure of environmental information	-	5	-	5	-	8	-	9	-	8
(4) Research and development cost		Development of environmentally friendly services	-	0	-	0	-	0	-	17	-	4
(5) Cost of social activities		Donation to domestic and foreign environmental conservation groups, raising awareness, Clean-up Campaign	-	1	-	0	-	11	-	10	-	12
(6) Cost of responding to environmental damage		Measures for dealing with asbestos dust	-	-	-	-	-	-	-	-	-	-
(7) Cost of safety measures		Vehicle inspection, employee education and raising awareness as safety measures	-	4,764	-	4,842	-	5,093	-	5,586	-	5,763
Total			273	6,169	301	6,278	238	6,910	234	7,324	482	7,615

*The tally is for Sagawa Express.

*Partially revised FY2020 data from previously published data.

*Aggregate upstream and downstream cost promotiong green purchasing from FY2021.

Environmental Performance and Environmental Conservation Effect

Environmental performance indicators		Unit	FY2022	FY2023	Environmental conservation effect(FY2022 Results - FY2023 Results)
Diesel		kl	82,909	83,460	-551
Kerosene		kl	90	88	2
Heavy oil		kl	96	96	0
Natural gas ^*1		km³	6,122	5,562	560
City gas ^*2		km³	829	758	71
LNG		kg	0	0	0
Propane ^*3		kg	108,440	99,514	8,926
Gasoline		kl	15,412	14,575	837
Electricity (fossil fuel)		ten thousand kWh	16,143	10,499	5,645
Renewable energy ^*4	Private solar power generation	ten thousand kWh	42	33	33
Renewable energy ^*4	Purchased	ten thousand kWh	6,254	10,954	10,954
Water (water intake)		km³	857	822	35
Water (waste water)		km³	855	820	35
Industrial water (water intake)		km³	0	0	0
Industrial water (waste water)		km³	0	0	0
Number of recycled PET bottles ^*4,5		Bottles	581,944	365,240	365,240

* The tally is for Sagawa Express. The environmental conservation effect is calculated as the net change compared to FY2021.

*1Figures for natural gas used at onsite gas stations are after temperature or pressure corrections.

*2Figures for city gas were tallied using the figures written on invoices from suppliers without making temperature or pressure corrections. Biogas excluded.

*3The figures written on invoices from suppliers (m³) were converted into weight at 2.07kg/m³.

*4The environmental conservation effect of renewable energy and amount of PET bottle recycle are recorded as environmental conservation benefits based on actual results.

*5The effect believed to have contributed to the recycling of PET bottles by using uniforms made from recycled PET bottles is converted into the number of PET bottles.
Value for conversion: Total weight x number of sheets x polyester usage rate of each uniform x recycling rate for the polyester used ÷ weight per 500 ml PET bottle
The conditions for each item are as follows

Total weight	Short sleeves Approx. 175g long sleeves Approx. 240g
Polyester usage rate of each uniform	-Cotton material 65% -Sweat absorption material 100%
Recycling rate for the polyester used	100%
Weight per 500 ml PET bottle	30g

Tallying method

Guideline used as a reference: Environmental Accounting Guidelines 2005 Edition, Ministry of the Environment
Acquisitions of assets valued at 200,000 yen or more are recorded as investments.
Environmental facilities are depreciated over four years by the straight-line method.
Personnel expenses are calculated based on the number of hours of environmental activities x the average personnel expenses of Sagawa Express.