Response to Environmental Risks and Opportunities

We, Fujitsu Frotech Group, in the purpose of CSR practices and finally contribution to achievement of SDGs, make efforts on the environmental conservation, by identifying environmentally-related "Risks" such as climate change and environmental pollution and taking measures against them. Moreover, we also identify "Opportunities" other than environmental risks and implement their measures, so that we can expand our business through the environmental contribution.

Risk Management System

Through identification and measures relevant to the environmental risks and opportunities based on ISO14001 (EMS: Environmental Management System) as well as activities of company-wide risk assessment (as a category of Environment) in Risk and Compliance Committee, we establish and operate our governance system, so that we can not only control potential risks but take corrective actions against apparent risks in a rapid and proper manner.

Identification and Measures relevant to Environmental Risks Based on EMS

Environmental Risks and Opportunities Identified in FY2022

Significant Environmental Aspects

#	Identified items	Risks / Opportunities	Specific contents (Upper side) / Major measures (Lower side)
1	Energy use	Risk	Negative impact on global warming due to greenhouse gas emissions.
1	Energy use	Risk	Promotion of company-wide energy savings (electricity savings, introduction of energy-efficient facilities) Introduction of renewable energy
2	Waste generations	Risk	Depletion of natural resources, Environmental pollution due to waste disposal
2	Waste generations	Risk	Promotion of 3Rs (Reuse, Reduce and Recycle) + Renewable Reduction of waste (thorough waste sorting, expansion of valuables etc.)

External and internal issues of Organization

#	Identified items	Risks / Opportunities	Specific contents (Upper side) / Major measures (Lower side)
1	Climate change	Risk	Difficulty of business continuation due to abnormal climate etc., Rising of requirements for countermeasures against climate change by companies
1	Climate change	Risk	Reduction of GHG emissions in our Group Expansion of adoption of renewable energy
2	Sustainable resource use	Risk	Depletion of natural resources, Nature destruction due to mining, Soaring prices of natural resources
2	Sustainable resource use	Risk	Increase of resource efficiency of products (weight reduction, downsizing etc.) Long-lasting use of products and effective resource use through collection and repair of our products
3	Preservation of biodiversity and ecosystem	Risk	Ecological collapse due to decline of species, Human crisis in survival due to shortage of foods and clothes etc.
3	Preservation of biodiversity and ecosystem	Risk	Participation in the environmental conservation events Actions on plastic waste issues
4	Contribution to SDGs and gain of business opportunities	Opportunity	Business promotion through development and delivery of contributable products & services to SDGs
4	Contribution to SDGs and gain of business opportunities	Opportunity	Development and delivery of SDGs Contribution Solutions
5	Governance of Group companies outside Japan	Risk	Negative impact on the whole Group due to revocation of ISO14001 certificate in Group companies
5	Governance of Group companies outside Japan	Risk	Periodical confirmation of the status of EMS operation etc. Communication with local staff in charge of EMS

Needs and Expectations of Interested Parties

#	Identified items	Risks / Opportunities	Specific contents (Upper side) / Major measures (Lower side)
1	ESG (Environment, Social and Governance)	Opportunity	Actions on SDGs etc. as well as external disclosure of the results for the improvement of our corporate brand
1	ESG (Environment, Social and Governance)	Opportunity	Promotion of sustainable business through climate change countermeasures, resource circulation and SDGs contribution etc. Information disclosure of our activities on Sustainability website in a forward-looking manner
2	TCFD, CDP, SBTi, RE100, etc.	Opportunity	Improvement of Fujitsu brand through climate change countermeasures
2	TCFD, CDP, SBTi, RE100, etc.	Opportunity	Information disclosure based on TCFD framework Calculation and disclosure of value chain emissions
3	Communication with neighborhood	Risk	Negative impact on neighborhood due to social disaster such as water pollution and noise / vibration, Complaint from neighborhood
3	Communication with neighborhood	Risk	Monitoring by the environmental measurement and disclosure of the results
4	Communication with employees	Opportunity	Promotion of environmental activities in cooperation with employees
4	Communication with employees	Opportunity	Implementation of environmentally-related in-house learning, communication and events Promotion of social activities in cooperation with employees
5	Provision of information on restricted substances	Risk	Loss of social credit due to violation of law related to restricted substances in products
5	Provision of information on restricted substances	Risk	Interactive communication with suppliers etc. to ensure the conformity with regulations of restricted substances in products such as RoHS, REACH
6	Correct sorting of waste and provision of waste information	Risk	Environmental pollution due to improper waste processing by contracted vendors, Decrease of corporate reputation
6	Correct sorting of waste and provision of waste information	Risk	Thorough in-house enlightenment of rules of sorting waste Proper communication with waste / recycling vendors as for information on hazardous waste etc.

Company-wide Risk Assessment (as for Environment)

Environmental Risks Identified in FY2022

Environmental Risks

#	Identified items	Specific contents (Upper side) / Major measures (Lower side)
1	Water pollution	Environmental destruction due to water pollution derived from our activities, Compensation for damage, Deterioration of corporate brand
1	Water pollution	Periodical monitoring of ground water / discharged water Proper control of chemical substances (leakage prevention such as locking storage)
2	Noise and vibration	Negative impact on neighborhood due to noise / vibration, Complaint from neighborhood
2	Noise and vibration	Periodical monitoring of noise and vibration Measures including installation of soundproof wall panels
3	Proper management of industrial waste	Environmental pollution due to improper processing by contracted vendors, Decrease of corporate reputation
3	Proper management of industrial waste	Thorough waste sorting in a waste storage area Confirmation of the status of proper waste processing by conducting on-site inspections of industrial waste vendors
4	Leakage of fluorocarbon	Leakage of fluorocarbon due to lack of management of air conditioners etc. and GHG emissions derived from the leakage
4	Leakage of fluorocarbon	Establishment of company-wide management system of fluorocarbon Steady implementation of simple / periodical inspection etc.
5	Environmental compliance	Punishment due to violation of laws such as missing of report submissions, Deterioration of corporate brand
5	Environmental compliance	Periodical monitoring of information on legislation and revision of environmental laws Retention of legally-qualified persons

On-site inspection of a waste vendor

Voluntary noise measurement