Activities towards Global Responsible Business (GRB) Environmental Goals

Introduction
To Reduce GHG Emissions in Accordance With 1.5℃ Target
Avoiding Risks Associated with Business Activities and Minimizing Environmental Impact
Examples of Contribution to Solving Environmental Issues of Customers and Society Through Business

Introduction

Climate change is a global issue that impacts the sustainability of society, and it is closely related to water and resource recycling issues. Engaging in global environmental conservation is essential for achieving Our Purpose. The Fujitsu Group does its utmost to reduce environmental impact and minimize risks throughout the value chain, and we contribute to the realization of a sustainable society by solving environmental issues together with our customers.

Image of Achievement Fiscal Year for Environmental Vision, Targets,and Other Goals

To Reduce GHG Emissions in Accordance With 1.5℃ Target

Updating Medium- and Long-term Goals

In May 2017, the Fujitsu Group formulated the Fujitsu Climate and Energy Vision as our environmental vision. In August 2017, we acquired SBT certification (2℃-aligned) for our reduction standard by 2030. As the movement toward carbon neutrality accelerated, we reconsidered the role that the Fujitsu Group must fulfill, and in April 2021 we raised our GHG emissions reduction target for 2030 from a 33% reduction compared to FY 2013 to a 71.4% reduction. This reduction target has been certified as 1.5℃-aligned by SBTi.
In order to accelerate decarbonization in the global community together with our supply chain, we have moved up the target deadline for 100% reduction by 20 years from the previous FY 2050 to FY 2030.
Furthermore, we have decided to aim for Net-Zero emissions in the entire value chain, including the supply chain (Scope 3), by FY 2040.
To ensure this target, we will follow the Fujitsu Group Environmental Action Plan (Stage XI) that we created as our activities through FY 2050.
(Our Net-Zero target for FY 2040 from the base year of FY 2020 received Net-Zero Certification from the SBT initiative in June 2023.)

Emission reduction of Fujitsu Group (Scope 1 and 2)

Emission reduction throughout the value chain (Scope 3)

Roadmap to Net-zero

Initiatives for Achieving Goals

Since 2018, the Fujitsu Group has been a member of the international initiative RE100, which aims to popularize and expand renewable energy.
Previously, we focused on our sites in Europe and the United States. In April 2021, however, in anticipation of full-scale introduction in Japan, we switched all electricity used in the Kawasaki Plant, the largest in the Fujitsu Group to renewable energy as Fujitsu’s flagship model.
This initiative affects approximately 5% of the Group’s electricity consumption in Japan.
Furthermore, in April 2022, Fujitsu Australia signed the largest renewable energy power purchase agreement (PPA) in the Group, accounting for approximately 38% of its annual power consumption.

Exterior of Kawasaki Plant

Sapphire Wind Farm
Largest wind farm in New South Wales operated by CWP Renewables

Avoiding Risks Associated with Business Activities and Minimizing Environmental Impact

Fujitsu Numazu Plant Received Prime Minister's Award for the 2023 Greening Promotion Movement

The Fujitsu Group promotes activities to reduce negative effects, and increase positive effects, on biodiversity to minimize environmental impact. For example, since its inauguration in 1976, Fujitsu Numazu Plant has been actively greening its facilities. It constantly maintains the natural environment in its premises, managing lawn, a biotope, a tea garden and other gardens in its premises, as well as green areas such as woodland that remains in its natural state, including ecosystems. In addition, a large green area is opened to local residents as a place for relaxation, where the Plant carries out many community exchanges holding seasonal events such as “tea picking festival” and “waling to experience nature.” Numazu Plant also is actively working to preserve biodiversity by pasturing goats for weeding, eliminating designated invasive alien species, raising “southern Japanese rice fish” (Oryzias latipes), an ancient Japanese species, in its biotope, and through other activities. In recognition of those continuous greening efforts, in April 2023, Numazu Plant received Prime Minister’s Award for the 2023 Greening Promotion Movement, an award given by the Prime Minister to an individual or an organization that made outstanding achievements in the promotion of greening activities or the spread of greening awareness.

Numazu Plant (Aerial view)

Tea garden (tea picking festival)

Weeding by goat-pasturing

Biotope

Examples of How Our Business Helps Solve Environmental Issues for Customers and Society

A joint blockchain project for “J-Credit Easy Generation” has been launched to further develop environmental value exchange market

Fujitsu and IHI Corporation*1 (IHI) have been working on a joint project since FY 2022 to realize carbon neutrality and to create an environmental value distribution platform that supports environmental value trading. Now, to simplify the environmental value creation process (collection, verification, and reporting of data such as CO₂ emissions) for the J-Credit*2 issuance, they launched the “J-Credit Easy Generation”*3 in June 2023.

As part of this initiative, the two companies applied for, and were selected as, collaborators engaged in a project for the “Outsourcing of Research and Development towards Digital Technology Utilization in FY 2023 J-Credit System” of the Japan’s Ministry of Environment. They will work on this project from June 2023 to March 2024.

The two companies plan to start providing the “J-Credit Easy Generation” as a module of the environmental value distribution platform in FY 2024.

【Overview of Joint Project】

Since FY 2022, Fujitsu and IHI have been carrying out a joint project to create an environmental value distribution platform, which converts CO₂ emissions reductions calculated using data collected at IHI’s IoT platform “ILIPS” (IHI group Lifecycle Partner System)*4 into tokens*5 that can be distributed on the environment value exchange market using Fujitsu’s “ConnectionChain”*6 a technology that securely interconnects different blockchains.

By adding “J-Credit Easy Generation” to the environmental value distribution platform, companies and organizations that are making environmental contributions, such as reducing CO₂ emissions (environmental value creators) will be able to easily convert their environmental value, such as CO₂ reductions, into J-Credits.

At the same time, by promoting the application of digital technology to J-Credit trading, Fujitsu aims to build a sustainable value chain model that enables buyers to smoothly trade the environmental value created by environmental value creators in the form of J-Credits.

Using “J-Credit Easy Generation” as a starting point, the two companies will contribute to the realization of carbon neutrality by expanding their businesses to tackle the digital verification of the diverse environmental values, including product carbon footprint.

Figure 1 Digital verification of diverse environment values

【Overview of the Demonstration Project of “J-Credit Easy Generation” for the Ministry of Environment’s J-Credits (Public Offering Overview)】

This project considers the simplification of the process from monitoring to issuing J-Credits through IoT and blockchain technology using the methodology of “Introduction of Photovoltaic Power Generation Facilities (EN-R-002).“
The demonstration will be conducted in the following three phases:

From June 2023 to August 2023: Planning the demonstration and sorting out the issues to be verified
From September 2023 to December 2023: Conducting the demonstration
From January 2024 to March 2024: Making final adjustments for actual operation

Figure 2 Demonstration of “J-Credit Easy Generation”

*1
IHI Corporation: based in Koto City, Tokyo, presided by Hiroshi Ide, CEO.
*2
J-Credit: A system in which the Japanese government certifies the amount of greenhouse gases reduced or absorbed as credits.
*3
J-Credit Easy Generation: A system that simplifies the process of creating environmental value for J-Credits using IoT and blockchain technology.
*4
ILIPS: A common platform for IHI Group products that accumulates data from equipment and facilities on cloud servers for use in lifecycle business to enhance IHI Group products and services.
*5
Tokens: Digitized rights and assets issued independently by a company or organization through blockchain technology.
*6
ConnectionChain: Blockchain technology that securely interconnects different blockchains and ensures transparency of transactions.

Fujitsu and IHI start joint project on new environmental value distribution platform using blockchain technology

Fujitsu and Chugoku Electric Power T&D conduct joint trials to expand use of renewable energy and improve maintenance of power transmission facilities

To expand use of renewable energy, Fujitsu and Chugoku Electric Power Transmission & Distribution Company, Incorporated*7 (Chugoku Electric Power T&D) aim to realize dynamic line rating (DLR)*8 a promising next-generation power network technology and to utilize drones for improving the maintenance of power transmission facilities. To this end, they conducted joint trials for one year from September 2021 to verify the practical application of environmental data*9, including wind conditions, obtained and converted through power transmission facilities of Chugoku Electric Power T&D.

In order to boost the use of renewable energy, power transmitters and distributors are aiming to develop next-generation power networks by strengthening power grid*10, developing grid control technologies, and in other ways. Chugoku Electric Power T&D also actively take on this challenge.

Moreover, Chugoku Electric Power T&D utilizes drones for maintenance work, such as patrolling and inspecting its facilities, and locating any malfunctions. As drones flight is greatly affected by wind, however, further utilization of them requires real-time and accurate monitoring of environmental data (wind conditions) in the vicinity of power lines installed over a wide area.

Utilizing Fujitsu’s proprietary data conversion technology, these joint trials converted optical ground wire (OPGW)*11 vibration data from the OPGW of the power transmission lines through optical fiber sensing technology*12 into estimated environmental data in the vicinity of the transmission, and then compared and verified that data with the actually measured data at the site. Consequently, it was confirmed that they were generally in agreement with each other.

This enables the efficient and accurate acquisition of environmental data (wind conditions) near the power transmission facilities installed over extensive areas, which can be more widely applied to patrols and inspections with DLR and drones. This will then help expand the use of renewable energy and further enhance the maintenance of power transmission facilities.

The two companies will promote the early development of an advanced power grid operation support system that can utilize environmental data (wind conditions) and temperature data of the power lines to manage power transmission capacity flexibly through DLR and to improve maintenance operations with drones. At the same time, they will further advance digital transformation (DX) to reform maintenance operations and solve social issues such as sustainable energy supply.

Figure 1: Overview of the field trials

Figure 2 Screen image of prototype system supporting advanced operation of transmission network (in Japanese)

*7
Chugoku Electric Power Transmission & Distribution Company, Incorporated: based in Hiroshima City, Hiroshima Prefecture, presided by Hiroyuki Hasegawa.
*8
Dynamic line rating: Technology to flexibly operate transmission capacity of electric transmission and transformation facilities.
*9
Environmental data: A data group of estimated environmental conditions (e.g., wind conditions) along the optical ground wire (OPGW) and its vicinity.
*10
Power grid: A series of electric power facilities and systems consisting of transmission, transformation and distribution of electricity from power stations to users.
*11
OPGW: Optical Ground Wire. Equipment that incorporates optical fiber cables in overhead ground wires to protect power transmission lines from lightning strikes.
*12
Optical fiber sensing technology: Technology that enables real-time measurement of how optical fiber cables vibrate by inputting specific laser pulse light into optical fiber cables for communication and measuring changes and components of light such as backscattered light. For the measurement, a dedicated measuring device and a computer for data calculation are used.

Fujitsu and Chugoku Electric Power T&D conduct joint trials to expand use of renewables and improve maintenance of power transmission facilities

Fujitsu began selling a service that provides up to 100% of the electricity consumed by Fujitsu Data Center users from renewable energy sources

Aiming to help customers accelerate their efforts to reduce greenhouse gas (GHG) emissions throughout their supply chains, Fujitsu began selling a service that provides environmental value*13 to the users of Fujitsu Data Centers (DC) through the “Environmental Value Delivery Service”*14 in FY 2022.

To achieve carbon neutrality, each company will need to reduce not only their own GHG emissions but also indirect GHG emissions from the services of other companies it uses.

On the other hand, it is revealed that more than 80% of companies are facing challenges in achieving carbon neutrality.

As a leading global environmental-friendly company, Fujitsu has set the goal of fulfilling its social responsibility and contributing to solving environmental issues. To contribute to this goal in its DC business as well, Fujitsu has begun offering “Environmental Value Delivery Service” from a new perspective.

【Overview of Environmental Value Delivery Service】

This service provides Fujitsu DC users in Tatebayashi, Yokohama and Akashi with up to 100% of the contracted electricity from renewable energy sources. As Fujitsu issues a certificate as proof of use of renewable energy for DC service, they can publicly demonstrate that they are helping reduce GHG emissions*15.

Figure 1 Overview of Environmental Value Delivery Service

Figure 2 What can be achieved through Environmental Value Delivery Service

*13
The energy generated in a non-GHG-emitting manner is recognized as non-GHG-emitting value in environmental activities.
*14
FUJITSU Hybrid IT Service, Collocation Service, Environmental Value Delivery Service
*15
This aims to reduce customers’ Scope 3.

Environmental Value Delivery Service (in Japanese)

Reports

Fujitsu Group Integrated Report 2022more

Fujitsu Group Sustainability Data Book 2022more