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Response to Environmental Risks

Environmental Risk Management Structure

The Fujitsu Group built and operates a group-wide risk management system to identify, prevent, and mitigate a variety of potential risks, or prevent their recurrence, including issues related to climate change and environmental pollution. The Risk Management & Compliance Committee, which reports directly to the Board of Directors, assesses the risks associated with the business activities of each division and each group company, and formulates a policy. We also leverage the group's Environmental Management System (EMS), which is based on ISO14001, for minimizing risks to the environment through continuous improvements.

Efforts to Minimize Risks to the Environment

Dealing with Risks Related to Climate Change

There is a possibility of significant impacts on our business continuity from increases in the frequency and effects of natural disasters as a result of recent climate changes. For that reason, we have formulated a business continuity plan and are devoting effort to continually revising and improving the plan.

Furthermore, the implementation of stricter regulations for greenhouse gas emissions and a carbon taxes creates a risk of increasing the energy cost incurred by the Fujitsu Group, as well as the cost required for measures aimed at reducing greenhouse gases. Additionally, if climate change countermeasures are insufficient, there is a risk of harm to our corporate reputation or a disadvantage at bidding. In order to minimize these risks, we are conducting risk analysis/response within our company-wide risk management structure. Moreover, based on the FUJITSU Climate and Energy Vision, we are working to achieve net zero CO2 emissions by 2050 and to contribute to mitigation/adaptation for climate change through business.

In accordance with the recommendations issued in 2017 by the Task Force on Climate-Related Financial Disclosures (TCFD), the Fujitsu Group analyzes and discloses information related to risks accompanying climate change that may have an impact on business and financial strategies. Refer to the table below for the currently recognized potential major risks and responses.

Risks Associated with the Transition to a Low Carbon Economy
Policy/Legal Risks
  • Risks: Increase in cost in order to respond to the strengthened laws and regulations on greenhouse gas emissions and energy use, and diminished corporate value in the event of a violation.
    • Response: Complete compliance with laws and regulations through EMS.
Technology Risks
  • Risk: Unrecovered investments and market share decline in the event that the company lags behind in a fierce competition in technological development toward a carbon-free society.
    • Response: Enhance development of energy-efficient products and energy-efficient enabling technologies, solutions, and services through steady implementation of Science Based Targets and our Environmental Action Plan.
Market Risks
  • Risk: Losing business opportunities if products, solutions, and services do not meet energy-saving performance needs.
    • Response: Enhance development of energy-efficient products and energy-efficient enabling technologies, solutions, and services through steady implementation of Science Based Targets and our Environmental Action Plans.
Risks to Reputation
  • Risk: Decline in corporate value and an increase in response costs associated with a negative assessment from stakeholders on the response status of measures to counteract climate change.
    • Response: Enhance measures to counteract climate change and promote reduction of environmental footprint through steady achievement of the group's Science Based Targets and Environmental Action Plan.
Climate Change Related Risks in the Supply chain
Upstream Supply Chain
  • Risk: A temporary suspension of the suppliers' business activities due to the occurrence of severe natural disasters such as large-scale floods, sudden heavy downpours, and lightning strikes, which affects the procurement of materials.
    • Response: Conduct surveys of the business continuity capabilities of suppliers and implement measures to procure materials from multiple sources.
Downstream Supply Chain
  • Risk: Losing business opportunities due to the inability to obtain environmental labelling, which is a green procurement requirement of customers.
    • Response: Conduct trend surveys and risk assessments of the environmental labelling scheme. Develop and provide top-level energy-efficient products through steady implementation of Science Based Targets and our Environmental Action Plan.

Assessing and Monitoring of Potential Water Risks

In recent years, the supply and demand for water has become strained in many areas around the world due to a variety of factors, such as population growth and climate change, and there is a growing concern that this may become a business risk. The Fujitsu Group conducts assessments of and monitors potential water risks for direct operations sites and supply chains.

In particular, the Group uses tools and databases provided by NGOs and governments at both country and municipal levels to check the status of water stress and the risk of natural disasters in the areas where businesses are located. We then comprehensively assess the water risk at each site by analyzing how important water use is in the business activities of each operations base, and we confirm the level of compliance in a variety of activities such as the reduction of water intake, measures to reduce pollution in wastewater, business continuity management (BCM) systems, and others. For the supply chain, we also assess our suppliers' flood preparedness and other water risks based on the supply chain BCM surveys, field surveys conducted according to the Responsible Business Alliance's (RBA) code of conduct and the CDP Supply Chain Program. As a result, we have confirmed that there are no significant risks that could substantially affect our business activities.

Preventing Water Pollution

In order to preserve the water quality of surrounding waterways, including rivers, groundwater and sewers, we have set voluntary controls that are even tougher than legal mandates, and conduct measurement and monitoring on a regular basis. We recover and recycle chemicals used in production processes, instead of discharging them into wastewater. We are also working to properly manage and reduce discharge of harmful substances and other regulated substances (COD, BOD, etc.) by ensuring appropriate chemical use, preventing chemical leaks and penetration, and properly managing the operations of water treatment and purification facilities, among other measures.

Preventing Air Pollution

We have set voluntary control values that are more stringent than legally mandated emissions standards in order to prevent air pollution and limit acid rain. Regular measurement and monitoring is conducted based on these controls. Efforts are also made to appropriately process dust and soot, sulfur oxide, nitrogen oxide, and other harmful substances, and reduce emissions through measures including combustion management at facilities that produce soot and smoke, use of fuels with low sulfur content, and managing the operations of exhaust gas processing equipment. Furthermore, we have installed activated carbon adsorption treatment equipment and are reducing our atmospheric emissions of organic solvent vapors containing substances like VOCs.

Moreover, with the enactment in April 2015 of the Act on Rational Use and Proper Management of Fluorocarbons, we have set in-house stipulations and striven for proper management of specified products (commercial refrigerators and air conditioners containing fluorocarbon refrigerants) while working to identify the volume of our fluorocarbon leakage.

In addition, emission of dioxins has been prevented by suspending use of all in-house incineration facilities as of January 2000.

Preventing Destruction of the Ozone Layer

By implementing a precision water-wash system and non-wash soldering technology, we have completely eliminated the use of ozone-depleting substances in manufacturing processes (parts washing and solvents). We have also implemented leakage countermeasures for refrigerant chlorofluorocarbons used in air conditioning facilities (freezers, etc.), and are switching to non-chlorofluorocarbon gas when updating facilities.

Results for complete elimination of ozone-depleting substances
Ozone-depleting substances Time of complete elimination
Washing chlorofluorocarbons (CFC-113, CFC-115) End of 1992
Carbon tetrachloride End of 1992
1,1,1-trichloroethane End of October 1994
Alternative chlorofluorocarbons (HCFCs) End of March 1999

Preventing Pollution of Soil and Groundwater

We have established rules for soil and groundwater surveys, measures and disclosures. We review these in accordance with changes in the law and social circumstances and respond based on these rules. We systematically examine soil and groundwater, based on the rules, and if pollution is confirmed, we carry out cleanup and countermeasures at each plant according to the situation, while working together with government authorities to disclose information.

As of FY 2018, there are four business sites where soil and groundwater pollution from prior business activities have been confirmed. At those business sites, we have installed observation wells to observe effects outside the site due to groundwater pollution, while also working on purification measures through water-pumping aeration, etc.

Monitoring the Imoact of Groundwater Cintamination Outside of Fujitsu Sites

Business Sites Where Soil or Groundwater Contamination Has Been Found
Site Name Location Cleanup and Measure Execution Status Maximum Value Found at Observation Well  (mg/L) Regulated Level (mg/L)
Substance Measured Value
Kawasaki Plant Kawasaki City, Kanagawa Prefecture We are continuing to clean up VOCs by pumping and aeration. Cis-1, 2-dichloroethylene 3.6 0.04
Oyama Plant Oyama City, Tochigi Prefecture We are continuing to clean up VOCs by pumping and aeration. Cis-1, 2-dichloroethylene 2.58 0.04
Trichloroethylene 0.20 0.03
FDK Sanyo Plant Sanyo-Onoda City, Yamaguchi Prefecture We are continuing to clean up VOCs by pumping and aeration. Trichloroethylene 0.031 0.03
FDK Washizu Plant Kosai City, Shizuoka Prefecture We are continuing to clean up VOCs by pumping and aeration. Cis-1, 2-dichloroethylene 0.20 0.04
Trichloroethylene 0.42 0.03
Tetrachloroethylene 0.30 0.01

Chemical Substance Control

To prevent pollution of the natural environment or damage to health due to the use of harmful chemical substances, we are controlling the use of some 1,300 substances using our original Chemical Information System called "FACE" and working to appropriately control and reduce emissions at our business sites.

With regard to chemical substances included in products, we have determined banned substances according to regulations in Japan and worldwide and are working to thoroughly control them, not only inside the Group but also with business partners who deliver materials and products to us.

Appropriately Processing Waste

We regularly carry out on-site audits in order to confirm that subcontractors are appropriately handling the waste processing tasks we entrust to them.

In addition, with regard to high concentration polychlorinated biphenyl (PCB) waste (transformers and condensers) processing, we have registered with the Japan Environmental Storage & Safety Corporation (JESCO), which handles temporary storage and disposal of PCB waste under government supervision, and are carefully carrying out processing based on JESCO plans.

Conserving Biodiversity

Recognizing that activities benefit from the riches of the Earth's biodiversity while at the same time impacting it, the Fujitsu Group considers the conservation of biodiversity to be an important issue. In October 2009, we settled on the Fujitsu Group Biodiversity Action Principles, and promote them based on the two pillars of reducing the impact of our business activities on biodiversity and contributing to the creation of a society that conserves biodiversity.

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