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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 by making efforts for 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. 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 implements analysis and disclosure of information related to risks that may affect business and financial strategies as a result of climate change. 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 towards a carbon-free society.
    • Response: Enhance development of energy-efficient products and energy-efficient enabling technologies, solutions, and services through a steady implementation of Science Based Target and 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 a steady implementation of Science Based Target and Environmental Action Plans.
Risks to Reputation
  • Risk: Decline in corporate value and an increase in response costs associated with a negative evaluation 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 a steady achievement of the group's Science Based Target and Environmental Action Plan.
Physical Risks from Climate Change
Acute/Chronic Physical Risks
  • Risk: Temporary interruption of business activities due to the occurrence of severe natural disasters such as large-scale floods, sudden heavy downpours and lightning strikes.
    • Response: Maintain and improve business continuity capabilities through thorough on-site audits and risk assessments based on internal and external facility standards.
  • Risk: A rise in the average temperature due to climate change will cause additional costs for facility air-conditioning.
    • Response: Consider optimization of electrical power contracts, and promote energy-saving.
Climate Change Related Risks in the Supply Chain
Upstream Supply Chain
  • Risk: A temporal 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 labels, which is a green procurement requirement of customers.
    • Response: Conduct trend surveys and risk assessments of the environmental labeling scheme. Develop and provide top-level energy-efficient products through a steady implementation of Science Based Target and Environmental Action Plan.

Assessment 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 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 confirm the level of compliance in a variety of activities such as the reduction of water intake, measures to reduce pollution in effluent, business continuity management (BCM) systems, and others. For the supply chain, we also assess the water risk of our suppliers 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 regular measurement and monitoring on this basis. We recover and recycle chemicals used in production processes, instead of discharging them into wastewater. And we are working to reduce discharges of harmful substances and other regulated substances (COD, BOD, etc.) by ensuring appropriate chemical use, preventing chemical leaks and permeation, and properly managing the operations of water treatment and purification facilities, among other measures.

Environmental Pollution Prevention and Preparations for Climate Change Risks Throughout the Value Chain

Fujitsu Group is striving to prevent the occurrence of environmental pollution and conserve the environment in the entire value chain. We are preparing rules that designate a response to accidents and emergency situations in case of the rare occurrence of environmental risks and educating employees on how to carry them out correctly.

Additionally, there is the 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. 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.

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 made to appropriately process dust and soot, sulfur oxide, nitrogen oxide, and other harmful substances, and reduce emissions. Furthermore, we are reducing the atmospheric discharge 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 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 substance in manufacturing processes (parts washing and solvents). Regarding refrigerant chlorofluorocarbons used in air conditioning facilities (freezers, etc.), we have implemented leakage countermeasures and are transitioning to non- chlorofluorocarbon gas when updating facilities.

Results for complete elimination of ozone-depleting substances
Ozone-depleting substances Timing 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 disclosure. 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 disclosing information in concert with administrative agencies.

As of FY 2017, 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-lifting aeration, etc.

Monitoring the Impact of Groundwater Contamination

Business Sites Where Soil or Groundwater Contamination Has Been Found
Site Name
(Location)
Cleanup and Countermeasure status Monitoring Well Maximum Value (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 2.7 0.04
Oyama Plant
(Oyama City, Tochigi Prefecture)
We are continuing to clean up VOCs by pumping and aeration. Cis-1, 2-dichloroethylene 4.076 0.04
Trichloroethylene 0.372 0.03
FDK Sanyo plant
(Sanyo-Onoda City, Yamaguchi Prefecture)
We are continuing to clean up VOCs by pumping and aeration. Trichloroethylene 0.045 0.03
FDK Washizu Plant
(Formerly FDK Energy)
(Kosai City, Shizuoka Prefecture)
We are continuing to clean up VOCs by pumping and aeration. Cis-1, 2-dichloroethylene 0.42 0.04
Trichloroethylene 0.24 0.03
Tetrachloroethylene 0.16 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 the original Chemical Information System called "FACE" and working to appropriately control and reduce emissions at our business sites.

Furthermore, with regard to chemical substances included in products, we have determined banned substances and are working to thoroughly control them, including both inside the company and with business partners.

Appropriately Processing Waste

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

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 carries out PCB waste interim storage and disposal under government supervision, and are carefully carrying out processing based on JESCO plans.

Conserving Biodiversity

In FY 2009, we settled on the Fujitsu Group Biodiversity Action Principles, and promote them based on the two pillars of reducing the impact of our activities on biodiversity and contributing to the creation of a society that conserves biodiversity.

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