Business and Other Risks - Environment and Climate Change

15. Environment and Climate Change

Making contributions to society and protecting the environment are part of the corporate values of the Fujitsu Group, as set forth in the Fujitsu Way. The Group regards environmental protection as one of its most important management items and is committed to minimizing environmental burden and preventing environmental pollution. However, the Group cannot guarantee that environmental pollution will not occur as a result of its operations. Moreover, although we monitor soil and wastewater as well as engage in clean-up activities at former factory sites, this does not mean that pollution will not be found at such sites in the future. In the event that environmental pollution was to occur or be identified, social trust in the Group may weaken and cleanup and other costs could be incurred, which would adversely affect the Group’s earnings.

In addition, the frequency and impact of natural disasters, which have increased due to climate change in recent years, have the potential to disrupt our procurement, distribution, and energy supply networks, and long-term changes in temperature have the potential to have an impact on the Group's businesses, including the increased use of energy for air conditioning. Furthermore, various regulations, such as regulations on greenhouse gas emissions, may be tightened to cope with climate change. If the Group fails to comply with these regulations, corporate reputation may decline, and the Group may not be able to participate in bidding on the condition that it complies with these regulations. The costs required to comply with these regulations may also increase.

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