Efforts to Reduce our Greenhouse Gas Emission

We are examining all of our business operations in an effort to reduce greenhouse gas emissions--not only at our business sites but also in transportation and in the products and services we provide.

Basic Approach

We are working to reduce emissions of greenhouse gases associated with all our Group business activities. These actions include reducing emissions of CO2, due to energy consumption, and other greenhouse gases at business sites (our factories and offices), and reducing emissions associated with transportation.

Furthermore, we are working to prevent global warming throughout all areas of business activity by helping to cut greenhouse gas emissions from our customers and society in general by developing eco-friendly products that contribute to reducing environmental burdens and by providing ICT solutions.

Preventing Global Warming from Business Sites

Greenhouse Gas Emission Reduction Targets and Results

We set "reducing our total greenhouse gas emissions by 6% by the end of FY 2012 compared with FY 1990 (the breakdown for total emissions is a 5% reduction in CO2 due to energy consumption and a 20% reduction in gases other than CO2)" as a goal of the Fujitsu Group Environmental Protection Program (Stage VI).

Our actual total global emissions for FY 2012, the final year covered by the Fujitsu Group Environmental Protection Program (Stage VI), were about 1.014 million tons (per unit of actual sales: 231.4 tons/billion yen), which is a 7.7% or 84 thousand ton reduction from the previous fiscal year, and a 24.4% reduction from FY 1990. At this level, we achieved our target under the Fujitsu Group Environmental Protection Program (Stage VI).

Reduction of CO2 Emissions due to Energy Consumption

CO2 emissions due to energy consumption are responsible for about 90% of the Fujitsu Group's greenhouse gas emissions. Therefore, we continuously work to improve the following energy-saving measures to reduce CO2 emissions.

• Energy-saving equipment, focusing on motive-power facilities (introduction of free cooling, inverters, energy-saving facilities, fuel conversion, etc.)
• Increased efficiencies through revised manufacturing processes, accompanied by proper motive-power facility operation and improvement of management
• Adjusting appropriate room temperature for office air conditioning, saving electricity for lighting and office automation equipment
• Promotion via measurement of energy consumption visualization and proactive use of that data
• Use of renewable energy such as solar power

Further, we set up our Low Carbon Committee at the corporate level in September 2008, establishing reduction targets for each business unit. Stronger measures to achieve these targets follow reforms to processes and equipment (in mounting, assembly and testing) and the development of new technologies. Moreover, our Capital Investment Guidelines define the economic and environmental criteria for investment as we identify and urgently implement priority measures. To address not only CO2 emissions reductions but also the energy supply and demand problems that have arisen following the Great East Japan Earthquake, and do so from a position of greater unity with management, we merged the Low Carbon Committee with the Environmental Management Committee in October 2012.

As a result of actions like those discussed above, our actual energy-consumption CO2 emissions for FY 2012 were about 910 thousand tons (856 thousand tons in Japan, 54 thousand tons outside Japan), which corresponds to a 57 thousand ton reduction from the previous fiscal year and a 15.9% reduction from FY 1990.

• Reducing Greenhouse Gas Emissions Associated with Manufacturing : Case Study Archives

Reducing Emissions of Greenhouse Gases other than CO2

Other than CO2, the Fujitsu Group mainly uses perfluorocarbon (PFC), hydrofluorocarbon (HFC) and sulfur hexafluoride (SF6) in its semiconductor divisions. Following the semiconductor industry's action plan (the Voluntary Action Plan: 10% reduction by the end of FY 2010 compared with FY 1995), we have set a target of a 20% reduction by the end of FY 2012 for the Fujitsu Group Environmental Protection Program (Stage VI). To this end, we have changed to gases with a lower global warming potential (GWP) and continued to install equipment to remove harmful materials in new and existing fabrication lines.

In FY 2012, we reduced the amount of these emissions measured in GWP equivalent by 27 thousand tons, to about 104 thousand tons. This corresponds to a 60.0% reduction compared to FY 1995.

Promoting the Use of Renewable Energy

We have adopted renewable energy sources such as solar power generation at our business sites, in the Fujitsu Group Environmental Protection Program (Stage VI), and we have set increased use of renewable energy as a new goal, and introduced the target of installing ten times as much capacity by the end of FY 2012 as we had in FY 2007.

In FY 2012, Fujitsu Isotec and Fujitsu's Oyama Plant both installed solar panels, the former with a total output of 20kW and the latter, 27kW. With these two additions, our total solar power generation capacity as of the end of FY 2012 had reached 655kW. With this figure at 11.9 times that for FY 2007, we achieved the Fujitsu Group Environmental Protection Program (Stage VI) target.

Responding to the Japanese Revised Energy Conservation Law

As a result of the revisions to and enforcement of the Japanese Energy Conservation Law*1, business operators are now required to grasp their annual energy usage at all their business sites in Japan.

In the Fujitsu Group, we use the FUJITSU Sustainability Solution Eco Track (Fujitsu FIP Corporation) that grasps and tabulates the amount of energy we used across Japan, including for the office space we rent, and manages the amount used by each Group company. Note that the Fujitsu Group includes 26 companies that fall within the class of Specified Business Operators (businesses whose annual energy usage is in excess of 1,500 kl when converted to a crude oil equivalent value) newly stipulated in the revised law.

The amount of energy used by the Group within Japan under the Energy Conservation Law in FY 2012 was 561 thousand kl (crude oil equivalent), corresponding to CO2 emissions of about 1.145 million tons*2 based on the Act on Promotion of Global Warming Countermeasures*3, which was also revised.

*1 Energy Conservation Law:
Act on the Rational Use of Energy.

*2 About 1.145 million tons:
There are differences in ranges for tabulation, which include tenants and calculations based on CO2 conversion factor for each electric power company, for results reporting under our Environmental Protection Program.

*3 Act on Promotion of Global Warming Countermeasures:
A system for calculating, reporting, and disclosing the amount of greenhouse gas emissions stipulated by Japan's Act on Promotion of Global Warming Countermeasures.

Electricity-Saving Initiatives

In preparation for the summer of 2012, businesses served by electric utilities other than the Tokyo Electric Power Company, Incorporated (TEPCO) and Tohoku Electric Power Co., Inc. were asked by the national government to meet quantitative targets (5%-15%) for reducing their electricity usage. In response, the Fujitsu Group's Power Conservation Committee (merged with the Environmental Management Committee from FY2012), chaired by Fujitsu's president, considered objectives and measures for plants and offices in working to set targets in line with government requests. We even went so far as to implement electricity-saving measures to the extent they would not impact operations at business sites served by the Tokyo Electric Power Company, Incorporated (TEPCO) and Tohoku Electric Power Co., Inc., the two utilities for which there were no quantitative target requests.

As a result of the measures taken, business sites served by the Kansai Electric Power Co., Inc. (KEPCO) reduced their electricity consumption during peak periods by a combined 24.4% and those served by the Kyushu Electric Power Co., Inc. reduced theirs by a corresponding 12.2%. Business sites served by other electric utilities also achieved the government-requested targets. Avoiding any impacts on its business activities, the Fujitsu Group continued to implement electricity-saving measures through the winter of 2012.

Initiatives at Overseas Business Sites

Targets under the Fujitsu Group Environmental Action Plan(Stage VII)

For the Fujitsu Group Environmental Action Plan (Stage VII), we have established the following three targets to be achieved by FY 2015. These targets are based on environmental policies and directions inside and outside Japan, and the Fujitsu Group's business forecasts. Going forward, we will continue to implement, and strengthen, initiatives for achieving these targets.

• Reduce greenhouse gas emissions in our business facilities by 20% compared to 1990.
  (Raised to a reduction of 20%, from the 6% target of the Fujitsu Group Environmental Protection Program (Stage VI))
• Improve energy intensity in our business facilities over 1% each year.
  (New targets that are consistent with Japan's Revised Energy Conservation Law and the Action Plan of the Industries of Electrical and Electronics on a Low Carbon Society*4)
• Increase generation capacity and procurement of renewable energy.
  (Move forward with the installation of photovoltaic and other power generation facilities, and the procurement of green electricity and other forms of renewable energy.)

*4 Action Plan of the Industries of Electrical and Electronics on a Low Carbon Society:
An action plan formulated to reduce CO2 emissions in the electrical and electronics industries, based on Nippon Keidanren's Commitment to a Low Carbon Society, a voluntary industry initiative. The plan outlines major initiatives beginning in FY 2013 and establishes energy intensity improvements to be achieved by FY 2020.

GHG Emissions Report based on GHG Protocol Standards*5

Upstream (Scope 3)

Category	Tons	Notes on Reduction Initiatives
Purchased goods and services	1,945,000	Eco-Friendly Products Reference
Capital goods	19,000	-
Fuel and energy-related activities not included in Scopes 1 and 2	79,000	-
Transportation and distribution (Upstream)	Not covered	-
Waste generated in operations	9,000	-
Business travel	Not covered	-
Employee commuting	Not covered	-
Leased assets (Upstream)	119,000	-

Reporting company (Scopes 1,2)

Category	Tons	Notes on Reduction Initiatives
Direct emissions	225,000	Preventing Global Warming from Business Sites Reference
Indirect emissions from energy sources	790,000	Preventing Global Warming from Business Sites Reference

Downstream (Scope 3)

Category	Tons	Notes on Reduction Initiatives
Transportation and distribution (Downstream)	"53,000 (Distribution in Japan 25,000 / Distribution overseas 28,000)"	Environmental Considerations in Transportation Reference
Processing of sold products	Not covered	-
Use of sold products	5,083,000	Eco-Friendly Products Reference
End-of-life treatment of sold products	1,000	-
Leased assets (Downstream)	Not covered	-
Franchises	Not covered	-
Investment	Not covered	-

In recent years, there has been a growing movement toward accounting for and reporting greenhouse gas emissions throughout entire supply chains. Applying the Scope 3 international standard established by the GHG Protocol for accounting for and reporting greenhouse gas emissions, the Fujitsu Group, via the Carbon Disclosure Project (CDP)*6, discloses information on greenhouse gas emissions from purchased goods and services, upstream leased assets, transportation and distribution, use of sold products, and end-of-life treatment of sold products.

Moreover, we are proactively engaged in reducing GHG emissions in areas thought to be particularly large sources within the value chain. Examples include energy consumed when products are used, and activities related to raw materials.

Accounting for and reporting Scope 3 GHG emissions in the ICT sector, however, involves many challenges, so Fujitsu is participating in the formulation of the GHG Protocol's ICT sector guidance*7. In the same vein, we have established internal working groups to consider issues related to the reduction of GHG emissions throughout society, including our supply chain. Through these and other initiatives we are actively working to adress GHG-related issues.

*5 GHG Protocol's standards:
Standards formulated by the Greenhouse Gas Protocol, which was established jointly by the World Business Council for Sustainable Development (WBCSD) and World Resources Institute (WRI). The standards set forth approaches for accounting for and reporting emissions by businesses and their value chains.

*6 Carbon Disclosure Project (CDP):
The CDP is a not-for-profit organization in which institutional investors, companies, and others work together to promote the reduction of greenhouse gas emissions and the sustainable use of water resources by encouraging the world's leading companies to account for, and disclose information on, their environmental risk.

*7 ICT sector guidance developed by the GHG Protocol:
GHG Protocol: ICT Sector Guidance

Responding to Climate Change

The Fujitsu Group is not only taking initiatives to reduce GHG emissions; we are also advancing measures to address risks associated with natural disasters and climate change, on a global basis.