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 not only identify "Opportunities" other than environmental risks and implement their measures, but also evaluate "relevance to supply-chain" in "Issues of Organization" and "Needs and Expectations of Interested Parties", 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 FY2024

Significant Environmental Aspects

#	Identified items	Risks / Opportunities	Specific contents of Risks / Opportunities (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) Expansion of adoption 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	Relevance to supply-chain	Specific contents of Risks / Opportunities (Upper side) / Major measures (Middle side) / Viewpoints of supply-chain (Lower side)
1	Countermeasures against Climate change	Risk	✔	Difficulty of business continuation due to abnormal climate etc., Rising of requirements for countermeasures against climate change by companies
				Reduction of GHG emissions in our Group Expansion of adoption of renewable energy
				To reduce GHG emissions in Scope 3, we make efforts to request suppliers for their improvement in Category 1, as well as pursue energy efficiency of our products superior to conventional models in Category 11.
2	Sustainable resource use	Risk	✔	Depletion of natural resources, Nature destruction due to mining, Soaring prices of natural resources
				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
				To push forward with adoption of recycled materials to our products, reduction of package materials, 3Rs design, and long-lasting products through repair etc., we cooperate with business partners in both upstream and downstream.
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.
				Participation in the environmental conservation events Actions on plastic waste issues
				To help biodiversity be protected, we cooperate with relevant stakeholders.
4	Conservation of water resources	Risk	✔	Deterioration of water stress and water pollution
				Monitoring of data on water resources that we consume Grasp of water stress in the areas where we run businesses
				We get a grasp of water stress in countries where our Group companies run businesses, as well as monitor data on water resources that we consume.
5	Contribution to SDGs and gain of business opportunities	Opportunity	✔	Business promotion through development and delivery of contributable products & services to SDGs
				Development and delivery of SDGs Contribution Solutions
				To move ahead with the reduction of GHG emissions and plastic waste generations etc., we work together with each stakeholder.
6	Governance of Group companies	Risk	—	Negative impact on the whole Group due to revocation of ISO14001 certificate in Group companies in and outside Japan
				Periodical confirmation of the status of EMS operation etc. Communication with staff in charge of EMS who belong to Group companies
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7	Chemical substances management and pollution prevention	Risk	✔	Reinforcement of chemical substances management regulations, Increase of importance of on-site chemical substances management
				Thorough chemical substances management (use, storage and disposal) based on legal requirements and in-house rules In-house training related to chemical substances management
				We notify external vendors of important points in time of using chemical substances, to prevent environmental pollution and health damage from occurring.

Needs and Expectations of Interested Parties

#	Identified items *Associated interested parties are inside ().	Risks / Opportunities	Relevance to supply-chain	Specific contents of Risks / Opportunities (Upper side) / Major measures (Middle side) / Viewpoints of supply-chain (Lower side)
1	Promotion of ESG (Every stakeholder)	Opportunity	✔	Actions on SDGs etc. as well as external disclosure of the results for the improvement of our corporate brand
				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
				We work together with each stakeholder, to practice ESG activities such as climate-related countermeasures, circular economy, and CSR procurement etc.
2	Response to CDP, SBTi, RE100, TCFD and TNFD etc. (International initiatives, financial institutions etc.)	Opportunity	✔	Improvement of Fujitsu brand through climate change countermeasures
				Information disclosure based on TCFD framework Calculation and disclosure of value chain emissions
				To reduce GHG emissions in Scope 3, we make efforts to request suppliers for their improvement in Category 1, as well as pursue energy efficiency of our products superior to conventional models in Category 11. In addition, we push forward with forest conservation activities, cooperating with stakeholders, in the purpose of biodiversity conservation.
3	Efforts on communication with neighborhood (Neighborhood)	Risk	—	Negative impact on neighborhood due to social disaster such as water pollution and noise / vibration, Complaint from neighborhood
				Monitoring by the environmental measurement and disclosure of the results
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4	Vitalization of communication with employees (Employees)	Opportunity	—	Promotion of environmental activities in cooperation with employees
				Implementation of environmentally-related in-house learning, communication and events Promotion of social activities in cooperation with employees
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5	Provision of information on restricted substances in products (Suppliers)	Risk	✔	Loss of social credit due to violation of law related to restricted substances in products
				Interactive communication with suppliers etc. to ensure the conformity with regulations of restricted substances in products such as RoHS, REACH
				Under the circumstance that regulations of chemical substances contained in products mainly in Europe and U.S. are being strengthened, we continue to collect information on contained chemical substances in close cooperation with suppliers.
6	Notification of environmental compliance obligations and important points etc. in time of outsourcing (External vendors)	Risk	✔	Occurrence of violation of environmental laws and significant incidents due to external vendors
				Notification of environmental compliance obligations and important points etc. to external vendors
				We request external vendors to cooperate with energy savings and waste sorting etc., as needed.
7	Promotion of Social activities (NPO / NGO)	Opportunity	—	Promotion of social activities in cooperation with NPO etc.
				Social activities as good corporate citizenship
				—
8	Compliance with environmental laws and ordinances, as well as cooperation with local administration (Ministries, agencies, and local governments)	Risk	—	Decline of corporate image due to violation of environmental law or ordinance
				Compliance with legal requirements of environmental laws and ordinances, including reports submission and legal standards Participation in environmental activities that local governments hold
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9	Response to requests for repair and long-lasting etc. from customers who adopt our products and services (Customer)	Opportunity	✔	Response to customers who desire to use products as long as possible in repair
				Contribution to circular economy through repair businesses
				To establish circular economy business models, we cooperate with business partners etc.

Company-wide Risk Assessment (as for Environment)

Environmental Risks Identified in FY2024

Environmental Risks

#	Identified items	Specific contents of Risks / Opportunities (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 Retainment of legally-qualified persons

On-site inspection of a waste vendor

Voluntary noise measurement