II. Risks in Fujitsu Group Business Activities

7. Natural Disasters and Unforeseen Incidents

7-1. Natural Disasters, Infectious Diseases, and Fires

[ Overview and impact of risks ]
In recent years, the frequency and impact of natural disasters, such as typhoons, flooding, and heavy snow, has been increasing due to global climate change. In addition, unforeseen events, such as major earthquakes in the Tokyo metropolitan area or along the Nankai Trough, outbreaks of infectious diseases, or volcanic eruptions, may occur on a scale that exceeds damage estimates. If such situations occur, the suspension of business functions, damage to facilities, electricity, water, and gas outages, suspension of public transportation agencies and means of communication, shortages or delays of parts provided by component manufacturers, and disruption of the supply chain may impact the Group’s ability to continue business activities, including the delivery of services or shipments of products to our customers.

[ Measures against the risks ]
The Fujitsu Group, in order to build a strong collaborative system for disaster prevention and strengthen our business continuity response capabilities, has formed a company-wide disaster prevention organization and is conducting various disaster training. In addition, based on what we learned from our responses to past earthquakes, we have strengthened the earthquake and flood countermeasures and regular inspections at our business sites. This will ensure that even in the event of natural disasters, including earthquakes, large-scale flooding, volcanic eruptions, and outbreaks of an infection diseases, such as a novel strain of influenza, fires, and explosions, we will continue important business operations, fulfill our societal responsibilities as a business, and stably provide the high performance and high quality products and services required by our customers. On top of this, we have established business continuity management (BCM) and are formulating and continuously reviewing and improving business continuity plans (BCP).

In light of our experience with COVID-19 infections, we have made ensuring the safety of our customers, business partners, and employees and their families a top priority. We will work to maintain our important business by establishing a system to continue to provide products and services to our customers and to fulfill our societal obligations.

7-2. Armed conflicts, Terrorism and Political Instability

[ Overview and impact of risks ]
As the Fujitsu Group does business globally, if armed conflicts, terrorism, demonstrations, strikes, political instability, and other events in the countries and regions we operate in occur, it could have a significant impact on the Group’s business. There is also a possibility that our employees could become mixed up in the event and their safety could be threatened.

[ Measures against the risks ]
The Fujitsu Group collects risk information in each country and region where we operate, shares it with relevant parties, and has established an emergency contact system for employees to manage employee safety. The company is also working to continue business operations while staying up-to-date on current events.