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 FY2023

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) 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 (Upper side) / Major measures (Middle side) / Viewpoints of supply-chain (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
				Reduction of GHG emissions in our Group Expansion of adoption of renewable energy
				To reduce GHG emissions in Scope 3, it is necessary to take effective measures in each Category.
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, reduction of package materials, 3Rs design, and long-lasting products through repair etc., it is indispensable to cooperate with suppliers etc.
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, it is important to cooperate with stakeholders.
4	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., it is material to work together with each stakeholder.
5	Governance of Group companies outside Japan	Risk	—	Negative impact on the whole Group due to revocation of ISO14001 certificate in Group companies
				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 *Associated interested parties are inside ().	Risks / Opportunities	Relevance to supply-chain	Specific contents (Upper side) / Major measures (Middle side) / Viewpoints of supply-chain (Lower side)
1	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
				It is necessary to work together with each stakeholder, to practice ESG activities such as climate-related countermeasures, circular economy, and CSR procurement etc.
2	TCFD, CDP, SBTi, RE100, 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, it is necessary to take effective measures in each Category.
3	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
				—
4	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
				—
5	Provision of information on restricted substances (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, it is necessary to reinforce information collection related to contained chemical substances in close cooperation with suppliers.
6	Correct sorting of waste and provision of waste information (Waste recycling vendors)	Risk	✔	Environmental pollution due to improper waste processing by contracted vendors, Decrease of corporate reputation
				Thorough in-house enlightenment of rules of sorting waste Proper communication with waste / recycling vendors as for information on hazardous waste etc.
				To mitigate environmental pollution risks caused by hazardous chemicals and plastic waste etc., there is a need for environmental considerations from viewpoints of waste disposal.
7	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 (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
				—
9	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, it is important to cooperate with business partners etc.

Company-wide Risk Assessment (as for Environment)

Environmental Risks Identified in FY2023

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 Retainment of legally-qualified persons

On-site inspection of a waste vendor

Voluntary noise measurement