FUJITSU GROUP SUSTAINABILITY REPORT 2005 Group Profile Editorial Policy

Parent Company Fujitsu Limited Purpose Address Headquarters The 2005 Fujitsu Group Sustainability Report describes the , thinking, efforts, and accomplishments regarding the social and 5-2 Higashi-Shimbashi 1-chome, environmental aspects of Fujitsu Group operations based on The FUJITSU Way, the core set of principles guiding the conduct of Minato-ku, Tokyo 105-7123, JAPAN the Fujitsu Group. Tel. +81-3-6252-2220 Kawasaki Main Office Intended Readers 1-1 Kamikodanaka 4-chome, This report is for the benefit of various stakeholders, including Nakahara-ku, Kawasaki, Kanagawa customers, shareholders and investors, employees, business 211-8588, JAPAN partners, local communities, public administrators and Tel. +81-44-777-1111 NGOs/NPOs. Established June 1935 Ensuring Reliability Sales Fiscal year 2004: ¥4,762.7 billion In order to ensure the reliability of the contents of this report, we Fiscal Year-End March 31 consulted the following guidelines: • The Global Reporting Guideline (GRI) “Sustainability Reporting President Hiroaki Kurokawa Guidelines 2002” Capital ¥324.6 billion (as of March 31, 2005) http://www.globalreporting.org/guidelines/2002/ Employees Consolidated 150,970 gri_2002_guidelines.pdf • The Japanese Ministry of the Environment’s “Environmental (as of March 31, 2005) Reporting Guidelines 2003” and “Environmental Performance Unconsolidated 33,792 Indicator for Business 2003” (as of March 31, 2005) • The Japanese Ministry of Economy, Trade and Industry’s “Environmental Reporting Guidelines 2001” http://www.meti.go.jp/english/report/downloadfiles/ g02EnGuie.pdf In addition, the report has been independently reviewed by the Shin Nihon Environmental and Quality Research Institute (see P62).

Two-way Communication We consider this report a means for fostering two-way communication between readers and the Fujitsu Group. We welcome suggestions for improving our activities, and have included a questionnaire, which can be used for sharing any opinions you may have. We plan to publish this report yearly and will strive to make it even easier to read and use. Headquarters Operations Covered The environmental-related sections of this report generally cover Fujitsu Limited and its major subsidiaries (142 domestic and overseas subsidiaries), although they do not address the whole scope of Fujitsu Group operations. The section on environmental impact data covers Fujitsu Limited and 30 of its major subsidiaries (22 domestic and 8 overseas). Please note that this report generally uses the term “Fujitsu Group” to indicate the entire Fujitsu Group (although in some instances this does not include overseas Group companies), and the term “Fujitsu” to indicate Fujitsu Limited.

Key Fujitsu Group Changes Impacting the Scope of this Report • FDK Corporation was made an equity method affiliate and is no longer included in consolidated accounts. • Eudyna Devices Ltd. was made an equity method affiliate and is no Kawasaki Main Office longer included in consolidated accounts. • Distribution subsidiary Fujitsu Logistics Ltd. was sold. • The new facility at our Mie Plant has gone into operation. For Inquiries about this Report, Please Contact: Corporate Environmental Affairs Group, Fujitsu Limited Time Frame 1-1 Kamikodanaka 4-chome, Nakahara-ku, Kawasaki, This report focuses primarily on the thinking, efforts, and results of the Fujitsu Group for fiscal 2004, the financial period from April 1, 2004 to Kanagawa 211-8588, JAPAN March 31, 2005, with the data reflecting actual results from that period. Tel.: +81-44-754-3413 Fax: +81-44-754-3326 The report also includes the Fujitsu Group’s thinking, efforts, and accomplishments as well as activity data prior to April 1, 2004 and also for You may also contact us by using the fax questionnaire at the the period between April 1, 2005 and the end of June 2005. end of this report or visiting our environmental website. Additional detailed data and information not included in this report may be http://www.fujitsu.com/about/environment/contact.html found on the Fujitsu website (www.fujitsu.com).

Published: September 2005 A Note Concerning Forward-looking Statements, Projections, and Plans This report not only describes past and present facts related to Fujitsu Limited and its Senior Authority for Publication: related subsidiaries (the Fujitsu Group), but also includes forward-looking statements, Masamichi Ogura, Corporate Executive Vice President projections, and plans. Such forward-looking statements, projections, and plans are Planning & Editing: based on data that was available at the time at which the report was prepared, and therefore include a degree of uncertainty. Accordingly, future results of operating Mitsugu Sato, activities and other new developments may differ from the statements, projections, and Sustainable Development Planning Division plans included in this report. We ask our readers’ understanding of the fact that the Morimasa Ikemoto, Fujitsu Group cannot be responsible for such eventualities. The FUJITSU Way Promotion Unit Publisher: Sustainable Development Planning Division, All brand names and product names are trademarks and registered trademarks of their Corporate Environmental Affairs Unit, Fujitsu Limited respective holders. Copying, duplicating or reprinting part or all of the 2005 Fujitsu Group Sustainability Report without permission is a copyright infringement, except in cases authorized by law. All Rights Reserved, Copyright ©FUJITSU LIMITED

1 2005 FUJITSU GROUP SUSTAINABILITY REPORT Contents

Fujitsu Group Profile/Editorial Policy 1 The Fujitsu Group Today 3 Messages from Management 5

Toward a Sustainable Society — The FUJITSU Way 9 Corporate Governance and Internal Controls Corporate Governance 11 Compliance 12 Risk Management 13 Protecting Intellectual Property 15 Information Security 16

Highlights of the Year 18

Chapter I Fujitsu and Society 19 For Our Customers 20 With Our Employees 24 For Our Shareholders and Investors 27 With Our Business Partners 28 For Local Communities and Global Society 29

Chapter II Fujitsu and the Environment 31 Environmental Management Environmental Policy 32 Targets and Achievements — Environmental Protection Program (Stage IV) 33 Environmental Management System 34 Strengthening Environmental Management 36 Environmental Accounting 37 Environmental Performance Operating Activities and Environmental Burden (Material Balance) 39 Operating Activities and Environmental Burden — Environmental Considerations in the PC Life Cycle 41 Environmental Measures for Products 43 Product Recycling 47 Environmental Solutions 49 Global Warming Countermeasures 51 Promotion of Green Factories 53 Green Procurement 57 Research and Development 58 Environmental Education & Awareness 59 Environmental Communication 60

Related Data 61 Independent Review Report 62

2005 FUJITSU GROUP SUSTAINABILITY REPORT 2 The Fujitsu Group Today The Fujitsu Group draws on advanced information technology to provide comprehensive solutions based on the high-performance, high-quality products and services that customers demand.

Fiscal 2004 Summary and Fiscal 2005 Management Direction

Fiscal 2004 Summary Fiscal 2005 Management Direction In order to achieve our consolidated financial targets for In fiscal 2005 we will continue working to deepen and fiscal 2004 of ¥4.95 trillion in net sales, ¥200 billion in accelerate efforts to meet the aforementioned four key operating income, and ¥70 billion in net income, we challenges. In particular, we will push for improvements in vigorously pursued four key challenges: design and development, manufacturing, procurement, • Strengthen our existing businesses; and other processes to bring down costs. We will reinvest • Create and cultivate new businesses; profits generated by such cost reduction into • Reform our organization and approach; strengthening product competitiveness. Our goal is to • Reform our management systems. build a virtuous cycle of continual earnings improvements. Unfortunately, we were unable to meet these targets. Also, from fiscal 2005 we will actively pursue efforts to Two major reasons for this were greater than projected create and cultivate new businesses. In particular, we will losses for certain loss-generating systems integration work to strengthen businesses that target overseas projects and an unexpectedly large downturn in demand markets with high growth potential and mid-size enterprise for flat panel displays. markets. Moreover, while back-office management To address these issues, we worked to improve systems have been the central sphere of IT utilization up systems integration project management and, in the until now, we foresee greater incorporation of IT into a Electronic Devices segment, established a structure that wide range of front-line operations where the actual focuses resources on the LSI devices business. In movement of people and goods takes place. The Fujitsu addition, we pursued manufacturing reforms and sought Group will therefore strive to fuel the advance of IT- to put in place a structure that will generate stronger empowered innovation in the field. In front-line operations earnings in our platform operations and overseas from manufacturing and distribution to development and operations. These and other measures helped improve the sales, we believe such innovation can lead to huge soundness of Fujitsu’s business overall. At the same time, efficiency gains. It will also enable the provision of more we must take further measures to strengthen performance efficient, more secure, more dynamic services in areas in new and growth-oriented business areas. ranging from travel and entertainment to healthcare and education. With this in mind, we are stepping up efforts to

Four Key Challenges rapidly turn our R&D results into business opportunities and to bring together the strengths of the entire Fujitsu

(1) Strengthen Our Existing Businesses Group to generate innovation in the field. • Consider profits as fixed cost of doing business In consideration of these measures, we established • Continue to reduce cost ratio • Continue to accelerate management speed consolidated financial targets for fiscal 2005 of ¥4.85

(2) Create and Cultivate New Businesses trillion in net sales, ¥175 billion in operating income, and • Rejuvenate our overseas businesses ¥50 billion in net income. • Drive creation of ubiquitous networking market

(3) Reform Our Organization and Approach • Enhance visibility Simplify

• Optimize orgnization from customer’s perspective (4) Reform Management Systems

Net Sales Operating Income Net Income (¥ billion) (¥ billion) (¥ billion) 6,000 250 50 49.7 5,484.4 244.0 31.9 5,006.9 200 8.5 5,000 4,766.8 4,762.7 FY2001 FY2002 4,617.5 0 150.3 160.1 FY2000 FY2003 FY2004 4,000 150 100.4 –100 100 3,000 –122.0 50 2,000 –150 FY2001 0 1,000 FY2000 FY2002 FY2003 FY2004 –350 –50 0 FY2000 FY2001 FY2002 FY2003 FY2004 –382.5 –100 –74.4 –400

3 2005 FUJITSU GROUP SUSTAINABILITY REPORT Major Businesses of the Fujitsu Group

Software & Services Platforms Electronic Devices

• Solutions • Server-related • Semiconductors CRM, SCM, ERP, IT consulting, Servers, storage systems, Logic ICs, system memory, ASP business printers, etc. system LSI, compound • SI (Systems Integration) • Mobile/IP Networks semiconductors • Infrastructure Services Mobile communication • Others Internet data centers, network infrastructure, IP networks Media devices, components services, outsourcing services, • Transmission Systems managed services, middleware SONET, WDM systems • PCs/Mobile Phones Personal computers for consumers and corporate customers, mobile terminals, mobile phones • Others Hard disk drives

Internet Data Center

Note: From fiscal 2005, our business segments will be revised to: Technology Solutions, Ubiquitous Product Solutions, and Device Solutions.

Net Sales to Unaffiliated Customers Net Sales by Customer’s Geographic Region (FY2004) by Business Segment (FY2004) Other Operations Asia, Australasia and Others 5% 9.8% Electronic Devices Americas Software & Services Japan 15% 6.7% 44% 70.2% Platforms Europe 36% 13.3%

R&D Expenditures Capital Investment Employees (¥ billion) (¥ billion) 500 200,000 500 187,399 438.0 170,111 403.4 400 157,044 156,169 150,970 400 150,000 349.8 306.9 300 285.7 300 100,000 250.9 240.2 200 200 181.4 159.7 147.6 50,000 42,010 40,483 34,690 34,836 33,792 100 100 0 FY2000FY2001 FY2002 FY2003 FY2004 0 0 FY2000FY2001 FY2002 FY2003 FY2004 FY2000FY2001 FY2002 FY2003 FY2004 Consolidated Unconsolidated

2005 FUJITSU GROUP SUSTAINABILITY REPORT 4 Messages from Management

We are drawing on the sound corporate judgment we have cultivated over many years to carry out our social responsibilities.

Naoyuki Akikusa, Chairman

Recognizing our critical mission to uphold the prevent global warming, in our zero-emission initiatives, in our foundations of our society promotion of responsible chemical management and natural Since its founding in 1935, the Fujitsu Group has provided disaster countermeasures, and in our “Green Factories” customers with reliable, high-performance products and initiatives, which promote ongoing interaction between our services based on leading-edge technology in the IT and business locations and the surrounding communities. communications fields. At the same time, we have sought to contribute to the growth of our customers in a wide range of Infusing our shared principles, The FUJITSU Way, civil, industrial, and commercial fields, and to the as the bedrock of our business throughout the development of the societies in which we operate. I think it is entire Group safe to say that information and communication technologies The technology areas, businesses, and geographical have already become as indispensable to modern life as regions in which we are active have all expanded electric power or transportation. dramatically. Today, some 150,000 Fujitsu Group employees In order to fulfill our vital mission, naturally we must are working to grow our business worldwide. In various continually strive to improve the quality of our products and regional markets involving diverse cultures and business services. I recognize, however, that it is equally critical for us environments, we became aware of the need for a clearly to raise the level of trust which people place in our defined set of shared management principles, so that each management. and every employee could be empowered to carry out Since its inception, the Fujitsu Group has actively pursued creative and sound business activities while exercising good business opportunities that have a positive impact on judgment and self-discipline. From this awareness, in 2002 society. For instance, our first president set we sought to consolidate the “sound corporate judgment” the policy that “from the outside, our we have cultivated over nearly 70 years in business, and to factories shouldn’t look too much articulate this in a set of core principles and standards of like factories.” Based on his policy, conduct for every group employee. We established this as from early on we have striven to “The FUJITSU Way,” which serves as the driving force carry out our manufacturing behind our management approach to corporate social activity in harmony with local responsibility. communities and our physical By putting The FUJITSU Way into practice, we are aiming surroundings. We have since to grow as a corporation. At the same time, it guides us in carried on and expanded this maintaining strict ethical and legal standards, in striving to thinking — in our efforts to ensure product quality improvements and assure safety, in seeking to protect the global environment, and in working to respect and protect human rights. Our active disclosure of the nature and results of these activities signifies our commitment to fulfill our duties to all our stakeholders, from our customers and employees to our shareholders and investors, our business partners, as well as the regional and international communities of which we are a part.

5 2005 FUJITSU GROUP SUSTAINABILITY REPORT We are putting The FUJITSU Way into practice in order to be a trusted partner to our customers and to society.

Hiroaki Kurokawa, President

Turning Dreams into Reality In this environment, the business direction of the Fujitsu Information technology is changing the face of business, Group is to continually provide comprehensive solutions of society, and of individual lives. New technologies combining high-quality products and services that draw on continue to emerge that make possible what was our reliable, advanced technology. We will follow this previously impossible. In this context of change, the Fujitsu policy in responding to the demands of our customers and Group has set out as its mission creating new value to the challenges that lie before us. realize the dreams of our customers, as well as the Additionally, we are aiming to foster IT-empowered dreams of our company and our employees. I believe that innovation in the field. In ubiquitous networking this is the continuing significance of the Fujitsu Group, and environments, we foresee that IT will not merely be a the method by which we can best contribute to society. staple of conventional back-office management systems, To carry out this mission, we will focus on continual but will expand into a wide range of front-line operations innovation in our creation of new products, aiming for where the actual movement of people and goods takes substantial improvements in quality, cost, and delivery place. Our customers, for example, have a variety of front- (QCD), as well as streamlined costs not only in line operations, including development, manufacturing, manufacturing but in design, development, procurement, distribution and sales. By using IT to dramatically increase and all our work processes. These efforts will generate efficiency at such sites, we can offer customers a new profits, which we will use to strengthen the source of competitiveness. competitiveness of both our products and our personnel, Through such efforts we aim to contribute to the growth and to boost sales efforts. In turn, we will take the returns and flourishing of our customers’ businesses, and to serve generated by these actions and reinvest them in cutting- as their trusted partner. edge development and new businesses. It is my goal for us to build this kind of virtuous cycle in our business. Becoming a Trusted Member of Society Becoming a Trusted Partner to Our Customers I believe we must pursue IT is becoming increasingly essential to our customers’ sound management and businesses. So in choosing a business partner like Fujitsu, transparency to gain the trust, which constructs IT systems and provides services, not only of our customers, customers are looking for a company that can but also of society at large. continuously make proposals and provide support across To this end, in addition to the full IT system life cycle. The complexity of IT systems is growing. We face the enormous challenge of meeting demands for greater efficiency, lower operating burdens, and guaranteed reliability. In addressing this challenge, we must look beyond the former limitations of linking together various components into a single system. What is needed is the ability to build and manage seamlessly integrated systems using reliable products.

2005 FUJITSU GROUP SUSTAINABILITY REPORT 6 Messages from Management

improving our financial condition, I believe it is organization cannot grow unless each of its employees indispensable for us to continue practicing a PDCA (Plan, develops his or her abilities and grows. It is a major duty of Do, Check, Act) management cycle in all our corporate management to respect the rights of each individual and activities and processes, from corporate governance and provide a healthy work environment so that each compliance to risk management, information security, and employee can develop and become a professional in his environmental initiatives. or her field. I also believe it is important for us to make available even more information concerning our business and Putting The FUJITSU Way into Practice corporate initiatives. So we are taking steps to provide The Fujitsu Group is pursuing management which more information for shareholders and investors and to centers on enabling the growth of our customers and enhance our corporate website. employees. Our guide in this pursuit is The FUJITSU Way. In addition, I consider it to be a major responsibility of I believe putting The FUJITSU Way into practice at every the Fujitsu Group to introduce universal design and strive level of the Group is the most effective way for us as a for the usability of all our products, so that all people might corporation to fulfill our responsibilities to society. In fiscal be able to enjoy the benefits of information technology. 2004, we established The FUJITSU Way Promotion At the same time, as a good corporate citizen, I think it Council to implement this thinking organizationally is important for the Fujitsu Group to pursue initiatives that throughout the entire Fujitsu Group. The revision of this benefit society. We are aiming to further bolster our year’s Fujitsu Group Sustainability Report represents relationships with local communities, carrying out a variety another facet of The FUJITSU Way in action. of activities that contribute to the societies in which we As every employee puts The FUJITSU Way into practice operate. in his or her own work, this will allow the Fujitsu Group to Finally, more than anything else, I believe the contribute to the sustainable growth of society as well as enthusiastic efforts of our employees are the key to to grow ourselves. This, I believe, is at the heart of our ensuring truly sound management and transparency. The desire to fulfill our responsibilities to all of our stakeholders.

7 2005 FUJITSU GROUP SUSTAINABILITY REPORT We are building a risk management cycle to empower every organizational unit of the Group to autonomously carry out sound business practices.

Masamichi Ogura, Corporate Executive Vice President

Three Perspectives: Risk, Conduct, Environment comprehensive ISO certification covering all our domestic Aiming to be a trusted member of society, in fiscal 2004 Group companies, and took other steps to bolster our we sought to lay a strong foundation for implementing The environmental management system. Nevertheless, FUJITSU Way at every level of the Group. In July 2004, we because we have not yet met all our goals in terms of product established The FUJITSU Way Promotion Council. recycling and in certain other areas, it will be critical for us Reporting to that group is the newly formed Compliance to continue improving our performance in these areas. Committee. Together, these organizations form the nexus Responding to the series of major natural disasters last of The FUJITSU Way implementation efforts. year, we put the resources of our entire Group behind In this way, alongside the existing Risk Management efforts to restore damaged customer systems as quickly Committee and Environmental Committee, we have the as possible. At the same time, along with our wishes for organizational structure needed to support The FUJITSU Way the swift recovery of all the victims, we contributed to going forward. With this system as our foundation, the Fujitsu various relief efforts through employee donations and Group will carry out business in a socially responsible manner corporate donations from the Fujitsu Group. and reinforce Group governance. We will continue our efforts to build a solid foundation for carrying out our responsibilities to society as well as to Building a Risk Management Cycle Framework our stakeholders. Currently, we are building a risk management cycle framework that will enable each Fujitsu business group and its respective subsidiaries to maintain sound business practices in an autonomous way. This is part of our drive to establish a PDCA cycle that enables us to become aware of risks inherent in our business activities, to analyze risk factors and effects from stakeholders’ perspectives, to carry out assessment and prevention measures, to clarify response measures and systems, and to regularly review all risks. Especially with regard to inherent risks, I think it is incumbent upon us to adequately explain such risks in order to fulfill our social responsibilities.

Continuing to Lay a Strong Foundation for Carrying Out Our Social Responsibilities Against the background of these Group-wide efforts, each division has been keenly aware of The FUJITSU Way in carrying out its social responsibilities. For instance, to ensure strict compliance with our code of conduct, we introduced a help line to handle employee queries and internal reporting. Based on the 4th Stage of the Fujitsu Group Environmental Protection Program, we obtained

2005 FUJITSU GROUP SUSTAINABILITY REPORT 8 Toward a Sustainable Society — The FUJITSU Way Carrying Out Our Responsibilities to Stakeholders Based on The FUJITSU Way

Customers Shareholders/ Investors

Environmental Aspect • Concern for environmental protection • Building a recycling- based society

Business Partners Government

Fujitsu Group Economic Social Aspect Aspect • Sound and efficient • Fair and honest management work practices • Accountability and • Respect for fair disclosure human rights • Providing safe products

Local Communities/ Employees Global Society

Business Vision and as a result helps to foster the growth of the Fujitsu Group We believe that the fundamental purpose of the Fujitsu as well. Group is to solve customer problems and contribute to While striving to provide ever-higher value to our society by offering high-quality products and services customers, we are working to fulfill our social responsibilities supported by advanced technology. This thinking underlies to our stakeholders and contribute to the realization of a management’s profound interest in policies relating to sustainable society. “customers,” “employees,” “quality,” and “environment,” among other matters. We believe that focusing equally on all The FUJITSU Way these areas enables us to contribute to the well-being of our Introduced in 2002, The FUJITSU Way is the core set of stakeholders, including customers, employees, shareholders principles guiding the corporate and individual actions of the and investors, suppliers and business partners, local and Fujitsu Group and our continuing development as good international communities, public entities and administrators, global corporate citizens. A common understanding of

9 2005 FUJITSU GROUP SUSTAINABILITY REPORT The FUJITSU Way

Our Mission Fujitsu continually seeks to create new value by providing customers with comprehensive solutions comprising reliable, high-performance products and services based on advanced technologies. In this way, we aim to grow, realize profits, and foster mutually beneficial relationships in our communities worldwide.

Our Values

Customers Employees Quality Environment Profits & Growth

Our dream is We strive to meet We aim to earn We consider to make our Every one of us environmental the expectations customers’ has a leading our customers’ of customers, trust in Fujitsu impact in all dreams come true role to play that we do employees and shareholders

Our Code of Conduct

Respect Human Rights Reject Unethical Behavior

Protect Intellectual Property Maintain Confidentiality

Comply with Laws and Regulations Act with Fairness in Our Business Dealings

Business Strategy Group-wide President’s management Activities direction Manufacturing innovation, environmental Business Plan activities, etc. Established at business unit level

Fujitsu’s mission, values and code of conduct serves as the environmental protection initiatives ranging from actions to standard governing individual employees’ business activities. stop global warming to actions to help build a recycling- Underlying this thinking is our commitment to helping minded society. We hope to continue meeting the promote the concept of sustainability. Meeting this expectations and earning the trust of our stakeholders by commitment requires highly integrated efforts encompassing demonstrating measurable results in each of these so-called several different aspects of corporate activity: a social aspect, triple bottom line areas. wherein the corporation fosters fair and honest work The FUJITSU Way is the driving force behind our socially practices and a respect for human rights; an economic responsible business strategy and the inspiration for related aspect, wherein the corporation pursues sound and efficient Group-wide activities, business policies and plans. management and seeks to explain its actions by providing adequate disclosure of information; and an environmental aspect, wherein the corporation promotes global

2005 FUJITSU GROUP SUSTAINABILITY REPORT 10 Corporate Governance and Internal Controls Corporate Governance

Pursuing sound and efficient management and strengthening governance to promote The FUJITSU Way

The Board of Directors is composed based on these core tenets. Our Basic Stance on of eight internal directors and two In addition, the Risk Management Corporate Governance outside directors, for a total of 10 Committee and Environmental We believe that the concurrent pursuit members. The Board of Auditors Committee, which had both operated of efficient management and the proper consists of five statutory auditors: two independently, were realigned under control of business risks are essential to standing auditors and three outside The FUJITSU Way Promotion Council. achieving sustainable improvement in auditors. Their activities are helping to achieve corporate value. Recognizing that good corporate governance in stronger corporate governance is vital to Audits by Statutory Auditors and accordance with The FUJITSU Way. realizing this goal, we have actively Internal Audits appointed outside directors to help Fujitsu has adopted a statutory Compliance Committee (newly ensure sound and transparent auditor system. Auditors attend established) management. At the same time, by important management meetings, This committee is responsible for separating management oversight and including those held by the Board of promoting structures and systems to operational execution functions we have Directors, the Management Strategy ensure strict compliance with external Corporate Governance and Internal Controls promoted faster decision-making while Council, and the Management Council as well as internal rules, regulations and further clarifying management to express opinions, and through direct norms of behavior. To support these responsibilities. We believe that clear interviews with operational units when efforts, we have operated a “help line” separation of these functions is helping needed and other methods, they audit system since September 2004 to serve to realize greater transparency and the Board of Directors and operational as a confidential liaison point for efficiency. execution bodies. receiving reports from employees and Additionally, the Corporate Internal providing guidance to them on matters Corporate Governance Audit Division has been established of conduct. Framework within the Corporate Center to serve as an internal audit group. This division Risk Management Committee Overview of Corporate Institutions audits the internal affairs of the This committee works to obtain Fujitsu’s Board of Directors is company and its affiliates, proposes information regarding specific

Fujitsu and Society responsible for management oversight, improvements in their business incidences of risk and to mitigate their supervising the execution functions of practices, and regularly reports its audit impact on customers and the Fujitsu the Management Strategy Council and findings to the Management Council. Group. Serious issues are reported to the Management Council under its the Management Council or Board of authority. As an executive organ, the Directors for discussion and response. Management Strategy Council Initiatives to Enhance In this way, risk issues and discusses and decides upon Corporate Governance countermeasures are disseminated fundamental policies and strategy in Fiscal 2004 throughout the Fujitsu Group, regarding business management. The In July 2004, we established The strengthening our overall risk Management Council makes decisions FUJITSU Way Promotion Council, a management posture. on important matters regarding body reporting directly to the operational execution. Issues discussed Management Council. This new council Environmental Committee by the two councils and a summary of is charged with further accelerating the This committee is responsible for their debates are reported to the Board Group-wide penetration and promoting and strengthening the of Directors, which makes decisions on implementation of the mission, values environmental protection activities of the items of particular importance. and code of conduct that comprise The Fujitsu Group, which are based on The The auditing function is carried out by FUJITSU Way. We also set up a Fujitsu Group Environmental Policy and statutory auditors, who review the Compliance Committee to enhance risk The Fujitsu Group Environmental

Fujitsu and the Environment Board of Directors as well as management and promote structures Protection Program. operational execution functions. and procedures for internal compliance

Corporate Governance Framework Promotion of The FUJITSU Way

General Meeting of Shareholders Management Council

The FUJITSU Way Promotion Council Matters of Election Election special Chair: President significance Auditing Oversight Board of Directors Auditors Role: Promoting thorough implementation of The FUJITSU Way Designation Management supervision Auditing Compliance Committee Risk Management Environmental President Committee Committee Chair: Corporate executive Chair: President Chair: Corporate vice president Role: Minimize risk and executive vice Management Management Role: Ensure thorough strengthen crisis president compliance with laws, management Role: Promote and Execution Strategy Council Council (Management strategy (Business execution regulations and internal structure strengthen decision-making) decision-making) rules and standards environmental activities

11 2005 FUJITSU GROUP SUSTAINABILITY REPORT Corporate Governance and Internal Controls Compliance

Ensuring thorough compliance in line with our code of conduct

Ensuring Thorough Compliance Help Line System The FUJITSU Way Code of Conduct Our code of conduct, as set forth in In September 2004, we took a further The FUJITSU Way, clearly states that step to promote compliance with the Respect Human Rights we will comply with applicable laws and code of conduct, establishing an We will respect the rights of every regulations. We have also established internal help line system in Japan. individual. Human rights are not to be internal regulations to be adhered to, The help line serves two purposes. It abused through sexual harassment or discrimination on the basis of race, and we are taking measures to ensure is a consultation resource for employees religion, belief, sex, social status, family awareness of and compliance with who, in the course of carrying out their origin, handicap or sexual orientation. these regulations among our job responsibilities, are unable to Such discrimination shall not be employees. determine whether a particular action is tolerated. potentially in violation of The FUJITSU Way or laws and regulations. It also Comply with Laws and Regulations serves as a line of reporting for We will adhere to all applicable laws and employees when they are unable to go social norms whether in Japan or Corporate Governance and Internal Controls through normal management channels. overseas. Compliance shall be complete and without exception. The help line is available to all Group employees, including on-loan, Maintain Confidentiality contracted, part-time and other limited- Each employee shall appropriately The FUJITSU Way has been printed on small term employees as well as temporary handle and safeguard information held cards and distributed to all Fujitsu Group staff. within or passing through our company employees. In this way, each employee can be Such reporting and notification from in accordance with its type, including reminded to refer to our core principles and employees not only represents an company confidential information, third- standards when interacting with customers or party confidential information, and business partners, or when facing doubts about application of The FUJITSU Way and a personal data. day-to-day work judgments. means to ensure adherence to laws and regulations, it is also an opportunity to Protect Intellectual Property

improve business activities and Fujitsu and Society The FUJITSU Way We recognize intellectual property as an management. Consequently, the Fujitsu essential resource underpinning our Code of Conduct Group strictly forbids the discriminatory corporate activities, fully understand the The FUJITSU Way code of conduct treatment of any employee due to such legal significance of these rights, and, indicates basic principles, standards, reporting. Moreover, to protect the on that basis, make efforts to obtain, and shared values concerning how identity of the person involved, great maintain and utilize these rights We will Fujitsu Group employees are to conduct care is taken when handling reported respect other companies’ intellectual themselves. The code of conduct is information. property while protecting our own. made up of the six criteria listed at right. Reject Unethical Behavior No employee shall use his or her Help Line System position or role in the company for personal gain.

Users Act with Fairness in Our Business Dealings All Fujitsu Group employees in Japan In our dealings with customers, (including on-loan, contracted, part-time business partners and competitors, we and other limited-term employees, temporary staff) must in every case act in a manner that is fair. Fujitsu and the Environment Reporting, Feedback depending Reporting, Feedback depending Consultation on circumstances Consultation on circumstances

Outside Access Internal Access

Law & Intellectual Method of contact Property Unit Law Office that protects the Rules & Compliance identity of the Division person reporting

2005 FUJITSU GROUP SUSTAINABILITY REPORT 12 Corporate Governance and Internal Controls Risk Management

Through actions to identify and lower a variety of risks, we are strengthening the risk-management capability of the whole Group.

direction of The FUJITSU Way dealing with risk issues. For instance, Business Risks Promotion Council. we offer code of conduct training The Risk Management Committee specific to job title, including risk Below are just some examples of the coordinates with each business group management seminars primarily risks the Fujitsu Group faces when to monitor on an ongoing basis the targeting business unit general doing business. Aware of such risks, we variety of risks to which the company is managers. work to avoid any related incidents. If, exposed, to evaluate and analyze these however, such incidents happen to risks, and to propose strategies to occur, we are prepared to respond mitigate them. Moreover, by Dealing with Natural Disasters rapidly. disseminating information about its efforts to Group companies, the Group-wide Earthquake Disaster Some examples of business risks committee is helping to prevent Prevention Network • Economic shifts in key markets incidents of risks from arising Assuming the possibility of a large- (particularly Japan, North America, and throughout the Fujitsu Group. scale earthquake, we have set up a Europe) If incidents do occur, the Risk Group-wide earthquake disaster Corporate Governance and Internal Controls • Volatility in high-technology markets Management Administrative Office prevention network in Japan. This (particularly for semiconductors, PCs, operating under the Risk Management network has developed plans to help mobile phones, etc.) Committee receives initial reports from minimize physical damage to our • Fluctuations in currency exchange frontline locations. Then, in collaboration facilities and resume operations quickly rates or interest rates with local management, the office takes if an earthquake occurs, and is also • Shifts in capital markets appropriate response measures prepared to provide quick, appropriate • Intensifying price competition including, when necessary, setting up support to customers. • Changes in market position due to an ad hoc response headquarters, to competition in R&D resolve the problem quickly. Information Response to Major Natural • Changes impacting procurement of on the incident and response is then Disasters in Japan in 2004 parts and components shared appropriately with the various • Changes in competitive relationships business groups. With regard to major 2004 saw several major natural

Fujitsu and Society relating to collaboration, alliances, and risks, the Management Council and disasters in Japan, including technology-licensing agreements Board of Directors are informed as torrential rains in Niigata and Fukui • Risks related to project management needed, and they provide direction to prefectures, the major earthquake in • Risks related to natural disasters or the business groups and to the front- Niigata Prefecture, and the offshore sudden unforeseen events line management. earthquake in Fukuoka Prefecture. Note: The above examples of risk are not Immediately following each of these intended to be an exhaustive list. events, we set up customer More detailed risk-related information can be Risk Management Education recovery response headquarters found in Fujitsu’s full-year and quarterly financial and started recovery operations in To prevent incidents from occurring, results reports or in our Annual Report. line with our disaster response and to best contain the damage if manual. We also engaged in incidents do occur, we have put in activities to restore customer IT place a training curriculum to educate Risk Management System systems as quickly as possible. employees on the importance of The Fujitsu Group has established a compliance and risk management and Risk Management Committee under the to provide training in specific ways of

Fujitsu and the Environment Risk Management Structure Earthquake Disaster Prevention Network

Director of Central Board of Directors Countermeasures Headquarters Report major incidents Vice-Director of Central Countermeasures Headquarters Management Council/ The FUJITSU Way Promotion Council/Risk Management Committee Headquarters Secretariat Report major incidents Direction Solutions Business Support Group Risk Management Administrative Office Products Business Operating Group (Report) Feedback/ collaboration Electronic Devices Business Group Internal manufacturing infrastructure recovery Initial reports from front-line locations Risk incident response departments/Various Internal IT infrastructure recovery Headquarters business groups Internal network countermeasures • Risk evaluation, analysis, & Distribution countermeasures

Natural Corporate Problems with Direction/correction Environmental prioritization Restoration Countermeasures disasters/ threats/ products • Devise and disseminate Accidents Compliance issues or services basic countermeasures • Respond to incidents that arise Director of Regional Countermeasures Headquarters Feedback/ Regional headquarters organization collaboration Regional offices Regional Regional workplace organization

Front-line locations (including Group companies) Headquarters Countermeasures

13 2005 FUJITSU GROUP SUSTAINABILITY REPORT Disaster Prevention Exercises activities and to contain as far as 2004. Data on all items containing PCB Since 1995 we have set aside possible the effects of such incidents is recorded in a ledger and the items National Disaster Prevention Day should they occur, we are conducting carefully stored according to (September 1) in Japan to conduct environmental risk management training management guidelines for all domestic disaster prevention exercises across the to heighten sensitivity to risks and business locations and affiliated country aimed at protecting customer IT strengthen management capabilities. companies. systems and data. For the 10th exercise This training includes formal lectures for The amount of PCB currently being in 2004, we conducted a joint exercise all managers, as well as case study- stored by Fujitsu and its affiliated with customers, using a scenario based programs designed for companies is shown below. positing a massive earthquake just to executives responsible for departments the west of the greater Tokyo area. The with high associated environmental risks. PCB Storage Volume drill tested capabilities for providing In fiscal 2004, we held training recovery support for the core IT programs at four of our electronic (units) Fluorescent systems supporting customers’ devices business locations in Japan. Transformers Condensers lighting businesses. From fiscal 2005, we plan to conduct stabilizers Corporate Governance and Internal Controls training primarily at electronic devices- Fujitsu 25 1,315 38,020 related factories and subsequently at Responding to Environmental other plants as well. Affiliates 25 303 930 Risks Total 50 1,618 38,950 Pollution Risk Management Soil and Groundwater Pollution Regulations Testing and Treatment in Japan Based on internal pollution risk At two idle plants, we completed soil management regulations, we carry out surveys that were begun in fiscal 2003, We are conducting our own studies environmental risk assessments and and based on the findings undertook on nonharmful PCB disposal other risk management to prevent operations to remove contaminated techniques, and continuing to monitor environmental risks and to contain the material and treat the affected areas. the studies of Japan Environmental environmental effects of incidents if they We also began treatment operations in Safety Corporation into wide-area

do occur. An overview of the the latter half of fiscal 2004 at a plant disposal efforts and disposal costs. Fujitsu and Society environmental risk management system that was already known to contain From the results of these studies, we is as follows. contaminants. This project is due to be will determine the appropriate policy for completed in the first half of fiscal 2005. the nonharmful disposal of PCB held by Pollution Risk Management Structure Also in fiscal 2005, we will conduct soil Fujitsu and its affiliated companies, and surveys on two as-yet unexamined idle work to minimize the risks involved. plants, and take steps to further Soil/ Emissions, groundwater wastewater, decrease risks from soil contaminants. Preventing Dioxin Emissions Soil and other noise, The Fujitsu Group since January 2000 management vibrations Storage and Disposal of has discontinued the use of incineration standards, etc. Environmental emission Polychlorinated Biphenyl (PCB) facilities at all domestic manufacturing management Under the PCB Special Measures plants that have such facilities, thereby standards, etc. Law, all Fujitsu business locations and preventing dioxin emissions at our Pollution risk affiliated companies in Japan which plants. management rules currently store transformers, condensers and fluorescent lighting Status of Compliance with Legal Waste Products stabilizers containing PCB notified their Regulations Waste Chemical respective prefectural governors of the In fiscal 2004, the Fujitsu Group in

management content rules Fujitsu and the Environment standards, etc. and regulations, number of such items stored in fiscal Japan ascertained two instances of etc. noncompliance with legal regulations. In addition to reporting these violations to the appropriate government authorities, we have put in place a policy to prevent their reoccurrence.

Environmental Risk Education As part of our environmental risk management approach, we conduct training in environmental risk for employees. In fiscal 2004, we began environmental risk management training for all executives at Fujitsu production facilities.

Environmental Risk Management Training Aiming to prevent environmental risk incidents associated with production Soil treatment work at idle plant sites

2005 FUJITSU GROUP SUSTAINABILITY REPORT 14 Corporate Governance and Internal Controls Protecting Intellectual Property

Appropriately managing intellectual property in all aspects of our business activities

profitability. We actively engage in Intellectual Property licensing or transfer agreements in Actions in Fiscal 2004 Protection Policy cases where we judge that licensing a The Fujitsu Group aggressively particular technology will generate 1. Increased Number of Patents pursues research and development higher earnings than keeping it only for • We held the rights to roughly aimed at creating new value. Intellectual our own use, or in cases where it is 33,000 patents as of March 31, property is one fruit of that pursuit and associated with a business that we have 2005, an increase of about 1,000 serves as the cornerstone of our chosen to discontinue in conjunction patents from a year earlier. competitive position. with business restructuring. • Collaboration between our R&D Recognizing that intellectual property and intellectual property divisions is a critical asset, we have clearly generated an increase in patent positioned the protection of intellectual Promotion and Management Structure applications in strategically property in the code of conduct of The important areas. FUJITSU Way. The Law & Intellectual Property Group We strive to acquire and manage is responsible for planning and proposing 2. Strengthened Monitoring of Corporate Governance and Internal Controls intellectual property appropriately in all intellectual property strategies from a Competitors’ Patents aspects of our business activities, while Group-wide perspective. This unit • We expanded the scope of our carefully respecting the intellectual works closely with the Patent & IP studies of front-running property of other companies. We also Promotion Division of each business technology and shifts in aim to improve customer satisfaction by group to manage and take full technology trends. capitalizing on our intellectual property advantage of the vast intellectual • We established a Competitor to develop distinctive technology and property portfolio of the Fujitsu Group. Patent Study Task Force to look products. at what other companies are Intellectual Property Strategy doing in strategic technological Promotion and Management Structure areas. Intellectual Property Strategy Law & Intellectual Property Group 3. Raised Employee Awareness of Maintain Superior Competitiveness

Fujitsu and Society Intellectual Property Activities • Determine basic policies Developing distinctive products and • We put in place an intellectual • Promotion and support services is essential to maintaining property training course for the superior business positioning. At every Collaboration entire Group in Japan, and stage, from research and development established an e-learning course. Business Units to the application of new technology, We boosted collaboration with we are actively working to acquire new the practical training programs of intellectual property and utilize it to add Patent & IP each business group. more value to our products and Promotion Departments • We worked to raise employee Division services. awareness of intellectual property activities by publishing a • Promote • Implement Ensure Business Flexibility monthly magazine, Chizai Sozo basic policies basic policies As products and services become (“Intellectual Property Creation”), increasingly sophisticated, they rely on a which is also posted on our more diverse range of technologies. In intranet. this environment, ensuring flexibility in • In response to Article 35 of new business development often means Respecting the Patents of Japan’s new patent law forming technology-sharing and cross- (Workplace Invention System),

Fujitsu and the Environment Other Companies licensing agreements with other we held explanatory meetings for partners. We seek to acquire a powerful Infringing the patents of other all Fujitsu employees in Japan. intellectual property portfolio in order companies would ultimately result in Going forward, we will focus on both to forge such strategic agreements major problems for the Fujitsu Group deepening employee awareness, with other companies on favorable and also cause serious difficulties for taking full advantage of our terms and to maintain the flexibility our customers and the markets we intellectual property, strengthening needed to develop competitive new serve. At every stage, from research our ability to file competitive businesses. and development to the application of patents, and making our systems new technology, we take great care to even more responsive to our Secure Business Profitability avoid any potential patent infringement. business needs. Revenues from licensing or transfers At the same time, we deal appropriately of patent rights to other companies can with any and all infringements of have a major impact on business Fujitsu’s patent rights.

15 2005 FUJITSU GROUP SUSTAINABILITY REPORT Corporate Governance and Internal Controls Information Security

Ensuring the proper management and use of information, in line with employment regulations and internal rules

Rules Related to Information Rules Related to Information Management Management Last year in Japan, as companies began implementing new standards set The FUJITSU Way by the newly enacted Personal Data Protection Law, the effectiveness of corporate information management systems came into the spotlight. In this Employment regulations climate, the Fujitsu Group has set out a clear policy of maintaining confidentiality (maintain confidentiality) in our code of conduct. We have also devised and are adhering to seven Information separate information management rules management rules based on employment regulations, (intellectual (third-party Corporate Governance and Internal Controls including information management rules (personal data) confidential information) property) for personal data management and Personal data Third-party confidential Intellectual property third-party confidential information rules. management rules information management rules rights handling rules Moreover, based on these rules, some of our divisions have obtained ISMS (network information security) (Information Security Management System) certification. Information system security rules

Heightening Employee Awareness (network certification) (network users) of Information Management Fujitsu PKI utilization rules Computer/network utilization rules To heighten the awareness of each

employee regarding information Fujitsu and Society management, we have distributed an • Information management rules: Information Management Handbook to Also regulate the management of electronic documents in a networking context. all Fujitsu Group employees in Japan, • Third-party confidential information management rules: and are providing training in an e- Govern the manner of handling confidential information received from customers learning format. and other companies. • Personal data management rules: Responding to Information Govern the manner of handling personal data obtained by the Fujitsu Group itself. Security Breaches • Information system security rules: We have established the Risk Govern information security in a networked environment. Encompass rules for the Management Committee to serve as the internal organization to respond to building, operation, and use of information systems. information security breaches in general. • PC/network utilization rules: This organization is prepared to respond Regulate areas requiring the careful attention of network users. These areas quickly to any incidents that occur. concern not only information security, but also the proper use of copyrights, the use of personal computers in work practices, and a variety of other aspects. • Fujitsu PKI utilization rules: Fujitsu and the Environment Govern methods for authenticating personal identity and using encryption on the network to manage information even more strictly. • Intellectual property rights handling rules: Govern the handling of patent rights, copyrights, and other intellectual property rights.

2005 FUJITSU GROUP SUSTAINABILITY REPORT 16 Corporate Governance and Internal Controls Information Security

Toward a Stronger Security System Personal Data Protection Policy (Japan) We are taking steps to bolster measures to prevent internal information Fujitsu Limited recognizes that the appropriate handling of data such as leaks. In addition, we are working to customer names, addresses, and e-mail addresses by which an individual can be devise detailed rules for handling identified (personal data) is one of our key obligations as a responsible corporate customer information and other citizen. We therefore promise to protect and respect the personal data of confidential information and to ensure customers based on the following criteria. compliance at all levels of the organization. At present, most • Each division that handles customers’ personal data will designate a person to information is managed on a project-by- be responsible for the management of such data and will, by carrying out strict project basis, but we are moving toward security measures, appropriately manage such data. strengthening our organization-wide • The personal data of a customer will be used for the execution of contracts with information management capabilities. Corporate Governance and Internal Controls the customer, for the development of better products and services, and for providing useful information to the customer. Whenever personal data is to be Efforts to Protect Personal used for any other purpose, we will convey that purpose to the customer. Data • Unless we receive the consent of the customer or unless otherwise allowed by By devising personal data management law, we will not provide customers’ personal data to any third party. In those rules and through other measures, we cases where we provide data to a third party, we will make the appropriate have built up an effective personal data management of such data a contractual requirement for the third party. management system. We further • If a customer wishes to inquire about or modify his or her personal data and revised the system in May 2003, in line contacts us, we will respond to the inquiry within reasonable bounds. with the promulgation of Japan’s Personal Data Protection Law. Also, certain of our business divisions have

Fujitsu and Society obtained “privacy mark” certification where necessary for their business Personal Data Management Structure operations. Business Groups Corporate officer with Personal Data Management overall responsibility for personal data Business Units management (President) We have introduced a business group Instructions model, in which separate project teams carry out their daily tasks at the Work orders Reporting direction of their respective business group leader. Examiners who are charged with monitoring the status of Examiners personal data management conduct a Projects that handle Projects that handle Audit Audit yearly audit of each project, and report personal data personal data their findings to the president, who holds overall responsibility for personal data management. Fujitsu and the Environment

17 2005 FUJITSU GROUP SUSTAINABILITY REPORT Highlights of the Year Here are just a few highlights of the Fujitsu Group's social and environmental initiatives in fiscal 2004.

Organizational We realigned our sales and software P20 and services groups in Japan in line Realignment to with our goal of enhancing our customer-centric Strengthen approach and achieving greater management speed and simplicity. The realignment better Customer-centric enables us to pick up on market shifts and Approach increasingly diverse customer needs, as well as enhancing our ability to provide integrated Group- wide support to customers over the entire life cycle of their IT systems.

Environmental The 4th Stage of the Fujitsu Group Environmental P36 Protection Program has as one of its objectives to Management System implement our Environmental Management System (EMS) across Now Covers about the entire Fujitsu Group by the end of fiscal 2005. To reach this goal, in fiscal 2004 we deployed our EMS at all domestic Group 100,000 Fujitsu Group companies. The EMS, which now covers 98 companies and Employees in Japan approximately 100,000 employees in Japan, subsequently obtained ISO14001 certification.

Development of In the spring of 2005 we began marketing P43 our FMV-BIBLO NB80K notebook PC, the “Super Green world's first notebook PC to feature a P58 Products”: Use of housing made of bio-based plastic. The bio-based plastic was developed jointly by Fujitsu Laboratories and Toray Bio-based Materials Industries. Made up of about 50% natural materials in Notebook Computers (polylactic acid derived from corn and other starches), it achieves approximately a 15% reduction in CO2 emissions over the whole life cycle of the housing compared with petroleum-based plastic housings. The NB80K meets our environmentally friendly “Super Green Products” standards.

Next-generation In April 2005, we opened a new facility P56 at our Mie Plant in central Japan for LSI “Green Factory” the mass production of logic LSI devices using Launches Operations large-diameter 300mm wafers. The new facility, which contains an approximately 12,000m2 clean Using Latest room, is our newest “Green Factory,” and Environmental incorporates measures to prevent greenhouse-gas emissions, reduce waste and chemical emissions, Technology and otherwise minimize environmental burdens. Moreover, the facility is the world’s first semiconductor plant to feature hybrid seismic isolation construction.

Sustainability At the 8th Environmental Report Award/Sustainability P60 Report Award Ceremony sponsored by Toyo Keizai Report Receives Inc. and the Green Reporting Forum, the 2004 Fujitsu Group “Excellence Award” Sustainability Report (Japanese-language version) received an Excellence Award. The award praised the report for its clarity in spelling out the direction of the company, and for conveying in an easy-to- understand manner our stance toward reducing environmental burdens across the Group, including the quantification of environmental protection activities and the use of environmental

2005 FUJITSU GROUP SUSTAINABILITY REPORT 18 Fujitsu and Society

To earn the trust and satisfy the expectations of our stakeholders

In accordance with The FUJITSU Way, we value our various stakeholder relationships and are pursuing measures to continuously meet their expectations and earn their trust.

• Developing and providing safe, high-quality products and services • Providing proper information • Generating customer satisfaction

For Our • Respecting and protecting human Customers rights For Our With Our (P20) • Providing a safe and hygienic Shareholders • Paying a fair return from profits working environment Employees and Investors • Disclosing information in good faith • Helping employees realize their (P24) (P27) full potential

For Local • Contributing to society With Our • Contributing to the • Forming fair business Communities Business environment relationships Fujitsu and Global Partners Society • Working with NGOs and (P28) (P29) NPOs

The FUJITSU Way

19 2005 FUJITSU GROUP SUSTAINABILITY REPORT Fujitsu and Society For Our Customers

We take a customer-centric approach to management and strive to be good partners to our customers.

management, speed and simplicity, so Customer-centric Management as to improve direct awareness of Example of Improvement changes affecting our customers. The Based on Customer Comments We keep the front lines of our new system helps us to more quickly customers’ operations foremost in our grasp how market changes and The Customer Relations Center thoughts and actions in order to help diversification affect customer needs, so analyzes customer queries and the them cope with the changes they face that the entire Group can combine in results of this analysis are used in and keep our commitments to them. supporting customers throughout the improving products, services and This enables us to become an life cycles of their systems. corporate activities. invaluable partner. Customer Relations Center (Japan) Improving the Contents of the Reforming Our Organization and Fujitsu Website Approach (reorganizing sales, We established a Customer Relations “I want to dispose of a computer, but software and services groups) Center in June 2003 as a single source I couldn’t locate the contact on your Corporate Governance and Internal Controls We are carrying out reforms to our of information on services and products website,” and “I want to purchase organization and approach based on for when the customer may not know printer toner but I don’t know where the following four priorities. where the question should be to place the order,” are typical of the • To be easy to understand by our addressed or even, perhaps, the many questions we receive. To help customers particular product concerned. The customers find answers quickly, we • To be faster to respond to customer Customer Relations Center functions as have collected them under the needs a switchboard that connects customers heading “Frequently Asked • To provide seamless support to the department responsible, so that Questions” on the inquiry page. throughout customers’ IT system life we can respond speedily to their needs. cycles The center also functions as a Making the Website Easy to Read • To eliminate overlap and competition clearing house for information gleaned and Understand in business operations and functions from customer queries and comments, A number of customers told us our

between Group members which is fed back to those engaged in web pages were hard to understand Fujitsu and Society As a part of this initiative, we realigned product and service development and in because they used too much jargon, our sales and software and services quality improvements, in order to help and were difficult to search. We groups in Japan in June 2004 in line improve customer satisfaction. therefore rewrote the website text in with the concepts of customer-centric a more approachable and easily understood style.

Realignment of Sales and Software and Services Groups Customer Relations Center Role and Processes

Previously New Alignment Extracting information from customer feedback Large Customers Regional and Mid-sized Customers Fujitsu

Sales Customer Personal products inquiry desk Market-specific Region-specific

Sales Group Customer Unified Structure Structure

Specific Fujitsu and the Environment Systems feedback Engineering questions Phone Sales Analysis and use of customer feedback SE Specialized SE Reorganized Regional General Mail Companies Companies SE Companies Business Unit sales questions Web support depts. Use in development Shared Technology Support for Shared Technology of products, and Requests services and Customer Relations Center Group companies procedures Infrastructure Infrastructure Services

Software & Services Business Group Business Quick Response Development Marketing, Management, Global Strategy “SE” = Systems Engineering

2005 FUJITSU GROUP SUSTAINABILITY REPORT 20 Fujitsu and Society For Our Customers — Quality Improvement

All Fujitsu employees are committed to pursuing thoroughgoing quality improvement in their daily work.

Unrelenting Focus on Quality activities were launched in 2001. One is through groups of employees (Qfinity Activities) The Qfinity program was designed to that work together on specific projects, pursue the highest levels of quality, so and the other is by individual employees Quality is one of the five core values we can meet the expectations of our who actively propose reforms and enshrined in The FUJITSU Way, and in customers and become a trusted improvements. All employees this regard we are committed to earning partner in their businesses. But high- participate in at least one of these ways, our customers’ trust in Fujitsu. The quality products need to be provided in and all identify specific customers with activities implementing this commitment a timely way, meeting customer delivery whom they pursue the PDCA cycle are called Qfinity activities. requirements and rapidly responding to (plan, do, check, act) in achieving In 1966, we launched a high reliability their needs. Also vitally important is to quantifiable results on an ongoing basis. campaign primarily to improve product provide these top-class products at the This also enables the development of a functions and reliability. Then, from appropriate price. corporate culture that prompts our staff 1977, we introduced Value Engineering Qfinity activitites operate at two levels. to take on new challenges. activities to reduce product costs and rationalize working procedures.

Corporate Governance and Internal Controls Implementing the Qfinity System In order to build strong relationships The PDCA Cycle in Qfinity Activities of trust with customers and increase the value of Fujitsu as a global brand, Qfinity The main characteristics of Qfinity Select the target activities are that they embrace quality improvements in every phase of work throughout the Fujitsu Group, and that Plan all individuals and departments within the Group follow the same methodology Do for setting and achieving targets. This shared approach increases the overall effectiveness of the activities. Check The web-based Qfinity management

Fujitsu and Society system exploits the immediacy and the networking and interactive functions of Act information technology and supports The word Qfinity was created by the proposal of themes, the setting of combining “Quality” and “Infinity” to objectives, and the benchmarking of the express the concept of the infinite processes involved. It enables the pursuit of quality. know-how and benefits of improve- ments to be shared throughout the Group. By facilitating communications between departments in disparate areas of our business, it stimulates innovative thinking and creates new know-how in a process of cross-fertilization. To energize Qfinity activities themselves, training programs have been prepared and a system of awards has been introduced. Qfinity has its own website for information exchange and

Fujitsu and the Environment Company-wide Qfinity meeting there is also a company-wide meeting to announce progress.

21 2005 FUJITSU GROUP SUSTAINABILITY REPORT Fujitsu and Society For Our Customers — Universal Design

Based upon a multifaceted appraisal of our products, services, workstyles and workplaces, we seek to implement design in which the human being is central.

services, but seek to apply it broadly published in order to improve Universal Design wherever IT is used. This involves not accessibility.* Version 2.0 has been only the IT equipment itself but also the available on the Fujitsu website since Universal Design Policy workplace within which it is used, the June 28, 2004. The Fujitsu Group has long building and its facilities, http://www.fujitsu.com/us/accessibility/ concentrated on human-centered communications, and even the * Accessibility: The ease with which people, design, which utilizes many of the workstyle (working hours, safety and including those with various disabilities or the principles of ergonomics. As our hygiene, etc). This overall approach is aged, can use environments, facilities, management is customer centric, so generating real improvements in the equipment, software and services. our design has been human centric. way products and services can be Now, we are taking that process a used. Diagnostic Software Tool stage further by adopting the standards We have been offering a website of universal design. Universal, because Education in Universal Design accessibility diagnostic software tool, ideally it applies to all human beings. In order to advance the application of called Fujitsu Accessibility Assistance, The aim is not just to improve features, universal design throughout the Group, free of charge on our corporate website, Corporate Governance and Internal Controls functions and services, but to ensure we carry out educational programs and many customers have made use of they are immediately and readily designed to improve the understanding this tool. In June 2004 we revised the available to all those who may need to of individual employees. Tools to assist tool with enhanced features for use them. in the diffusion of these principles are confirming compliance with the newly Universal design seeks to avoid also provided. released JISX8341-3 standard, and we restrictions in the usefulness or safety of In fiscal 2004, educational programs continue to provide it free of charge on the product or service that might arise in universal design were provided to all our website. To date, the tool has been from limitations such as those imposed employees in Japan via e-learning. downloaded over 70,000 times. by advanced age, or physical or other An English edition of this tool, disabilities. We have adopted the developed for customers outside Japan, principles of universal design in our Introducing Universal Design has been available free of charge since products and services (e.g., our April, 2005. websites), and these have been utilized Fujitsu Web Accessibility http://design.fujitsu.com/en/universal/ Fujitsu and Society by many customers. We, in turn, Guidelines, Version 2.0 assistance/ incorporate their comments and We published a revised edition of our suggestions in our future designs. web accessibility guidelines in conjunction with the revision of the JIS Universal Design wherever X8341 standard. Information Technology (IT) Is Used Version 2.0 incorporates major We do not limit the application of revisions made on the basis of surveys universal design to specific products or and research after Version 1.01 was

Universal Design Policy

Customers

Fujitsu’s Universal Design Philosophy

IT Workplace Workstyle Fujitsu and the Environment

Hardware Software Internet Building/Facilities Working Safety/ Health Education

• PCs • Guidelines • Office • Employment • Mobile phones • Tools • Shop • Communications • Automatic Tellers *Free Institutionalizing design know-how • Web services and standardization • Web applications

2005 FUJITSU GROUP SUSTAINABILITY REPORT 22 Fujitsu and Society For Our Customers — Universal Design

Website Designed for Accessibility Universal Design in Universal Design Concepts in The Fujitsu website is designed in FOMA® Raku Raku Phone Exhibitions accordance with the guidelines for This line of mobile phones combines We use the concepts of universal accessibility so that it can be readily popular and highly legible screen design in creating and running accessed by those of all ages and display functions, easily understood exhibitions like Fujitsu Forum in order to whether or not they suffer from any illustrated operating guides with make our exhibits easy to view and physical or other disability. automatic voice synthesized operating understand by all visitors. This instructions or e-mail content, and the embraces everything from exhibition distinctive FOMA video-phone and stands that can be readily viewed from other functions in a way that is a wheel chair, to providing Braille guides extremely easy to use. and writing materials.

10:45 FR EE F NEWS

Corporate Governance and Internal Controls 国内外ニュースの 総合サイト

ニュースのカテゴリーを メニュー 次をよむ The Fujitsu corporate website was ranked first in usability by Nikkei Personal Computing for the second straight year in 2005. This year, the rankings placed great importance on the policy 「むりょう for protecting personal information, a category in which Fujitsu scored the maximum number of えふ points possible. Fujitsu was also highly evaluated にゅーす 」* WPC EXPO 2004 for its disclosure of information. * “Free F-news”

® Fujitsu and Society FOMA Raku Raku Phone can read aloud the Website Accessibility Design Support contents of i-mode® websites. All menus and e- (Universal Design) with WebUD mail in preparation can also be read using In December 2004, we introduced a automatic vocalization. new website accessibility support tool, WebUD. WebUD provides for computerized audio output of text, the display of pronunciation rubrics for Japanese characters, the enlargement (or reduction) of character fonts and graphics, changes in the color and background of letters, and input support among other forms of website accessibility features for the elderly or Easily understood Large, highly legible Negative/positive physically disabled. Those wishing to guidance screens letters inversion of lettering for highest legibility provide this tool have only to register WebUD on their server, and all users

Fujitsu and the Environment who accept the conditions of use can immediately take advantage of it.

Smart designs with the unmistakable look of high quality

WebUD display of Japanese “FOMA” and “i-mode” are trademarks or registered trademarks of characters with pronunciation NTT DoCoMo, Inc. in Japan and other countries. rubrics

23 2005 FUJITSU GROUP SUSTAINABILITY REPORT Fujitsu and Society With Our Employees

Believing that “every one of us has a leading role to play,” we are creating working environments that enable employees to make the maximum use of their abilities and support their professional and personal growth.

website. We also hold seminars with Universal Design and Working Style Personnel Policy sign language interpretation, bringing Universal design was originally these opportunities conceived to create products, buildings For an enterprise to maintain before many potential and living spaces that would be usable continuous growth, it must provide its candidates. We utilize by as many people as possible. We employees with a working environment the concepts of have extended this from office that encourages them in the lively and universal design to equipment and the workplace to active use of their gifts, and offers them make our workplaces encompass every aspect of a wide variety of experience. accessible, while the communications and workstyle. Recognizing this, one of the core enthusiastic values expressed in The FUJITSU Way cooperation of other Encouraging Active Communications is that “every one of us has a leading employees assists Pamphlet detailing We encourage the active exchange of employment role to play.” We therefore seek to them to make full use opportunities for opinions among employees by provide an environment that makes it of their capabilities. those with disabilities providing query areas, bulletin boards easy for all employees to give their best, and mail facilities on the corporate Corporate Governance and Internal Controls challenging each of them to achieve Percentage of Employees with intranet. Overseas, workshops are held higher standards in their work and Disabilities (Fujitsu Limited) and forums provided for information (%) supporting them in their growth. 1.8 exchange between management and 1.70 staff. In Europe, through a European Labor Relations Council and other Respect for Human Rights 1.6 1.57 means, we are actively implementing environments that encourage open 1.41 The shared principles articulated in 1.4 communications. the code of conduct of The FUJITSU Way are guidelines for each employee Improving Employee Satisfaction to use in conducting daily business 1.2 We see our continuing growth as operations. Prime among them is FY2003 FY2004 FY2005 critically dependent on creating a

respect for human rights, an attitude working environment that encourages Fujitsu and Society that underpins all our corporate and employees to think actively and individual activities. This principle Creating Good Working creatively and communicate effectively informs the actions of every member of Conditions with each other. the group. We carry out surveys to assess the Pregnancy, Child Care and Nursing motivation of employees and increase Enhancing Human Rights Awareness Needs their job satisfaction. Based on the (education and consultation desk) We offer flexible working conditions results of these surveys, managers We encourage greater awareness of and a favorable environment that make identify and tackle problems found in human rights issues among our it easier to combine a career with raising their organizations, and work to employees in Japan by an ongoing a family or providing nursing care. Our implement improvement policies formed internal training program. We have also family-friendly policies include: after internal discussions. established a consultation desk where • Maternity leave and shorter working Surveys are carried out in Japan, employees can discuss related issues in hours, Europe, North America, Singapore, and a supportive atmosphere. • Nursing leave and shorter working elsewhere. Overseas, as well, we provide Equal hours, Opportunity training in the United • Leave for nursing children or care of Kingdom and elsewhere. An Equal family members,

Opportunity committee monitors the • Child care subsidies, Fujitsu and the Environment situation and engages actively in building • Leave for voluntary activities. awareness of the issues involved. Numbers Using the Support System Employment for People with (FY 2004, Fujitsu Limited) Disabilities Employees with various disabilities are Child-rearing leave 346 at work in departments throughout the Group. Such opportunities are Family-care leave 22 publicized at employment agencies, in special pamphlets, and on the Fujitsu

2005 FUJITSU GROUP SUSTAINABILITY REPORT 24 Fujitsu and Society With Our Employees

Fujitsu NetCampus Free Agency System Developing Human Resources Open to all employees around the The free agency system introduced in world, NetCampus is our platform for Japan in fiscal 2003 recognizes We consider the development of the management of learning. Course employees’ ambitions and preferences human resources and employee content, applications and acceptances and makes it possible for them to select education as key management priorities for enrollment, and a wide variety of their own work assignments. It is and essential to ensure continuing learning support functions are all designed both to challenge employees growth in an era of increasingly severe provided via intranet. with expanded opportunities and to changes in our operating environment. encourage the optimization of personnel We are committed to cultivating a assignments. workforce that is second to none. Personnel Evaluations In-house Transfers* Fujitsu University Performance Evaluation System Fujitsu University was established in In Japan, we have introduced a In-House Recruitment Approx. 1,900 April 2002 to pursue human resources system under which employees set their Corporate Governance and Internal Controls development from a long-term own performance targets every six Free Agents 168 perspective. months and receive compensation * Cumulative total since introduction. Here, based on group business strategy based on the extent to which they meet * Includes some Group companies. closely coordinated with strategies for those targets and the processes they human resource development, we offer use to do so. a variety of courses aimed at: The system supports employees as Career Management • Fostering professionals who can they pursue their personal growth To encourage employees to take create high added value for objectives, providing objective initiative in developing their own careers, customers; standards by which to assess their we hold career counseling sessions. • Fostering business leaders who can careers and skills. powerfully advance global business; Career Management Service Menu • Promoting the shared values and skills Awards System • Career Counseling Fujitsu and Society of all employees — the “baseline” of Every June, at the events the group’s capabilities as a commemorating Fujitsu’s foundation, In-house career counselors with comprehensive solutions provider. awards for outstanding performance are specialized skills provide support for presented. All employees of the Fujitsu individual career planning. Fujitsu University Group are eligible. Awards are also • Career Development Seminars presented at the company and business Participants benefit from the latest • Technology College group level. theories on career formation and Here, professional engineers in the experience the process for operating divisions are taught how to themselves. identify issues and solve them on Flexible Allocation of Personnel • Web-based Services their own initiative. and Career Development Employees can use a number of • Solutions College By continually reallocating personnel web-based self-assessment tools to This college cooperates closely with resources to businesses within the increase their understanding of their the divisions to bring sales personnel Group as needs for staff multiply in skills and interests and assist in and systems engineers to the growth areas, we provide employees forming their own careers. highest levels of professionalism. with the opportunity to optimize their • Business College potential contributions. We have also This is where the vitally important established a system by which Fujitsu and the Environment company-wide “baseline” standards employees may select and pursue of education are reinforced at each particular career paths, and we support level on a global basis. them in such endeavors. • Global Knowledge Institute The institute aims to cultivate those In-house Recruitment who will exercise leadership at the Opportunities to join specific projects global level. within the Group are publicized on the • Faculty of Human Dynamics corporate intranet and applications Through the study of history, welcomed. philosophy, ethics and religion, the By providing a wider range of job faculty seeks to foster well-rounded opportunities, we seek to create a more individuals. challenging corporate climate.

25 2005 FUJITSU GROUP SUSTAINABILITY REPORT Central Health and Safety Committee with respect to the way they give Health and Safety at Work Every year, Fujitsu Limited holds a instructions to their subordinates, was meeting of the Central Health and introduced under the title “Mental health To ensure that all Group employees Safety Committee, whose members are in the workplace.” E-learning has also have a working environment that is safe, selected from employer and employee been used to provide employees with a pleasant, and secure, health and safety representatives elected by business means of assessing their own level of educational programs and training groups. The committee sets policies for stress for stress control, and it is being matched to workplace realities are the company as a whole, monitors the used successfully not only for the carried out and practical measures situation concerning natural disasters control of personal stress but also by implemented. Our suppliers are required and other threats to health and safety, the industrial healthcare staff to assess to do the same. and proposes preventive measures. the general levels of employee stress. The requirements of mental health are The health and safety organizations at not overlooked, and proper care is each site location also hold monthly taken to ensure employee well-being. Health and Safety Committee meetings, developing policies that reflect Corporate Governance and Internal Controls Frequency of Industrial Accidents company-wide policies as they apply to (Fujitsu Limited) the local situation and implementing

(No. per million hours) them to ensure site safety. 2.0 1.82 1.79 1.77 1.78 Health and Safety System

1.5 (Company-wide business group employer and employee representatives organization) E-diagnostic screen Central Health and Safety 1.0 Committee (annual meeting) The Fujitsu Kawasaki Hospital Originally founded as a welfare facility 0.5 0.38 0.34 0.36 0.35 for employees in 1944, this hospital

currently serves not only employees but Fujitsu and Society 0.14 0.11 0.06 0.10 (Site health and safety also members of the general public. It 0 0.20 management organization) FY2000FY2001 FY2002 FY2003 FY2004 has 46 beds, and its facilities include Health and Safety Committees MRI and other modern diagnostic All industry* (monthly meetings) equipment. Electrical equipment industry* The hospital also houses facilities for Fujitsu providing health check-ups for * Data not yet available for fiscal 2004 (as of June 2005) Health Promotion Centers, Health employees, including sophisticated Management Offices digital imaging and biomedical analysis In Japan Fujitsu has established equipment, etc. Serving Fujitsu Group Percentage Undergoing Regular Health Promotion Centers at major employees in the Tokyo-Yokohama Health Checks (Fujitsu Limited) locations, while most locations have a area, the hospital performs clinical (%) Health Management Office. These are examinations of some 30,000 people 100 98.5 98.0 97.6 98.2 96.3 responsible for performing various every year. 80 health checks and for education to 60 increase health consciousness, for guidance in health preservation, and 40 health consultations. At smaller

20 branches and offices, health “desks” Fujitsu and the Environment

0 run by contract industrial healthcare FY2000 FY2001FY2002 FY2003 FY2004 staff are responsible for helping to maintain employee health. The Fujitsu Kawasaki Hospital Percentage Undergoing Extensive Mental Health Medical Checkups (Fujitsu Limited) The Health Promotion Centers and

(%) Health Management Offices are 100 98.1 94.4 97.1 96.8 97.8 supplemented by specialist counselors (clinical psychologists) when mental 80 health care is called for. 60 In 1966, we began educating senior 40 managers in Japan about mental health concerns, and since 1988 this has been 20 extended to specialists when they are 0 promoted or when they join the company. FY2000 FY2001FY2002 FY2003 FY2004 In fiscal 2004, an e-learning program on mental health issues for managers,

2005 FUJITSU GROUP SUSTAINABILITY REPORT 26 Fujitsu and Society For Our Shareholders and Investors

We carry out our responsibilities to shareholders and investors by paying a fair return from profits and disclosing information in good faith.

at institutional investors and securities Basic Policy on Returns to Communicating with analysts. Shareholders Shareholders and Investors In these presentations, senior Our basic policy is to provide We are actively involved in IR activities managers speak on various topics: the shareholders with a stable return and to in Japan and abroad, including briefing president discusses the broad secure sufficient internal reserves to sessions for institutional investors and management picture, top executive strengthen our financial position for securities analysts, responding to officers use financial data and other future growth and improved profitability individual requests from investors, materials to describe business in the mid to long term. visiting Japanese and international conditions, presidents of the various For fiscal 2004, we increased our investors, and transmitting information business groups speak about practical dividend by three yen per share to six through the Fujitsu website. strategy and executive officers speak on yen for the year. We also disseminate press releases, conditions at the front lines. Besides thus providing information through the these presentations, we also hold media to individual investors and to small-scale meetings when appropriate, Basic Policy on Information society. and respond to individual requests on a Corporate Governance and Internal Controls Disclosure one-on-one basis. We recognize that timely and A Variety of Meetings for the Investor For overseas institutional investors, appropriate disclosure of company Community we hold road shows twice a year in information to shareholders, investors In addition to briefings on financial Europe and North America, and local and securities analysts is the bedrock of results, we provide a variety of staff also visit investors. In addition, we a healthy securities market. Based on presentations on management policy strive to provide the same level this awareness, we disclose information and specific business briefings targeted information to overseas parties as to in accordance with Japanese securities those in Japan. For example, we have and exchange law and with disclosure set down the principle of simultaneously regulations for stock exchanges where posting important press releases in Fujitsu stock is listed. Also, it is our English and Japanese on our website. policy to disclose information promptly,

Fujitsu and Society accurately and fairly whenever it may Communicating with Individual affect investment decisions, even Shareholders and Investors without any regulatory obligation and For individual shareholders or when it may be adverse to Fujitsu. investors, we prepare and send out interim and year-end financial reports. We promptly disclose IR materials used Timing of Annual at analyst briefings or materials and Shareholders’ Meeting Management direction briefing images from the year-end presentation In order to have as many as possible of results on our website, utilizing PDF of our shareholders attend, we schedule files and streaming technology. We our shareholders’ meeting to avoid days have also placed an inquiry form on the when many other such meetings take website for two-way communication. place in Japan. Also, in consideration of From fiscal 2004, we began inviting the needs of our overseas shareholders, individual shareholders to Fujitsu Forum* English agendas for the meeting and so that they might gain a more concrete ballots for the exercise of voting rights understanding of the company. are dispatched about three weeks in advance. * Fujitsu Forum: An annual exhibition that includes lectures and seminars by Fujitsu and the Environment Since fiscal 2002, we have introduced knowledgeable persons within and outside the a means to enable shareholders to company, as well as the latest solutions we are exercise their voting rights using the offering to customers to meet the challenges Internet. Business briefing they face.

27 2005 FUJITSU GROUP SUSTAINABILITY REPORT Fujitsu and Society With Our Business Partners

We value our cooperative relationships with business partners and deal fairly with them.

Procurement Policy Basic Posture Regarding Procurement Activities

On December 10, 1991, we 1. Coexistence and Mutual Prosperity with Our Business Partners established guidelines to ensure fairness We procure the necessary raw materials, parts and services for producing and and transparency in our procurement developing our products from many and varied business partners. We then add activities in Japan and abroad. value to these materials and provide them as a finished product. In other words, These guidelines are the foundation of many of our products are made with the cooperation of our business partners. the procurement policy we have been In these cooperative relationships, we have built up long-term relationships of following since then. trust through many years of continued hard work together. We aim for a relationship of coexistence and mutual prosperity where each as a good partner enables the other to work the more effectively so that we can continue to prosper together. Procurement Ties with Our Business Partners 2. Based on Fair and Impartial Evaluation, Select Business Partners in Japan and Overseas without Prejudice Amid increased interest in activities

We choose our business partners based on an overall evaluation of the Corporate Governance and Internal Controls whereby a business carries out its social economic rationale, including factors such as the company’s reliability, responsibilities, such as environmental technological capabilities, the attributes of the required articles or services protection, legal compliance and risk (specifications/quality/performance, etc.) and the conditions under which they will management, we are fulfilling our social be provided (delivery date, price, etc.) responsibilities in the supply chain Integral with the above overall evaluation, we are committed to selecting through such means as our “Green business partners without discrimination regarding the size of the business or Procurement” efforts. Going forward, whether it is in Japan or overseas. We will always offer impartial and fair entry we will define concrete procurement opportunities to any and all those wanting to become new business partners, and standards and conduct our activities in we will make every effort to respond responsibly to all such requests. accordance with them. 3. Comply with Laws and Social Standards Green Procurement Our employees comply with laws and social standards, whether in Japan or abroad, and are not to violate them under any circumstance.

Implementing a comprehensive Fujitsu and Society environmental management system Those involved in procurement activities are to fully understand the laws that (EMS), including obtaining ISO14001 relate to such activities (anti-monopoly laws, subcontracting laws, foreign- certification, is becoming an exchange laws, etc.). In addition to their efforts to comply with the letter of the law, indispensable condition for moving they also respect the spirit of the law as they carry out their business. forward as a global business. We are therefore advancing our environmental management system throughout the Procurement in Keeping with EMS Improvement Seminars Group. Aiming to further reduce Corporate Social Responsibilities environmental burdens in the supply In order to carry out procurement in We held presentations on “Upgrading chain, we have set forth the Fujitsu accordance with the concepts Your EMS” over April and May of 2005 Group Green Procurement Direction in embodied in The FUJITSU Way, we for about 1,000 Fujitsu Group cooperation with our business partners, plan to ask our business partners for business partners as part of our Green and we plan to expand the list of cooperation as follows. Procurement efforts in Japan. At the applicable items to encompass all presentations, we encouraged these procurement. Procurement in Keeping with business partners to obtain ISO14001 In order to implement this plan, we Corporate Social Responsibilities certification. Even greater efforts to are requesting that our business help cope with global environmental 1. Respect human rights, prohibit unfair partners build their own environmental problems will be required as the EU Fujitsu and the Environment discrimination management systems and totally phase directive on the restriction on 2. Comply with laws and regulations out designated hazardous substances, hazardous substances (RoHS) and 3. Maintain confidentiality and protect and we will check on their progress the Kyoto Protocol come into effect. personal information using various types of surveys. For We will therefore expand the reach of 4. Protect intellectual property business partners who are not able to Green Procurement throughout the 5. Reject unethical behavior meet the standards, our purchasing and supply chain through continued efforts 6. Act with fairness in business dealings other related departments will provide with our business partners. 7. Secure workplace safety and health consistent support to help them build, 8. Prohibit child labor and forced labor operate and firmly establish an EMS (see P57).

“Upgrading Your EMS” presentation

2005 FUJITSU GROUP SUSTAINABILITY REPORT 28 Fujitsu and Society For Local Communities and Global Society

We seek harmonious relationships with local and international communities and to contribute as a good corporate citizen.

The Fujitsu Asia-Pacific Scholarship Nifty Form of Charity Contributions to Society Program Nifty Corporation, a Fujitsu Group We established this forward-looking company and leading Internet service A primary motivation for the Fujitsu scholarship program in 1985 with the provider, supported the victims of Group, as defined in The FUJITSU objective of providing students and Japan’s Niigata-Shinetsu Earthquake WAY, is to live and thrive as a good businesspeople from the Asia-Pacific and of the Indian Ocean tsunami at its corporate citizen in harmony with local region with the opportunity to study the corporate website (@Nifty) by hosting communities and international society. cultures, values and management styles some 10,000 images taken by amateur Our strengths in IT enable us to make of Japan, the United States and China photographers, selling them through its distinctive contributions. in order to strengthen relations within own settlement service (@pay), and this region. donating the entire proceeds plus a Promoting Academic and Educational corporate contribution of its own. This Endeavors and International Cultural Cultural and Artistic Activities support was divided between the joint Exchange Co-sponsorship of cultural, artistic fund for Niigata Earthquake relief (in Japan America Institute for and sporting events includes: December 2004) and the Japan branch Corporate Governance and Internal Controls Management Science (JAIMS) Musical Performances of UNICEF (in March 2005). To encourage understanding among • The Fujitsu Concert Series business people from the Pacific Rim • The Fujitsu Concord Jazz Festival nations, we founded JAIMS as a non- Sporting Events Contributions to Local profit educational institution with the • Golf Tournament Communities approval of the State of Hawaii Go & Shogi Competitions Participation in “Learning from Department of Education in 1972. The • World Go Championship Society, a Challenge for 14-year-olds” institute concentrates primarily on • Fujitsu Masters’ Game Toyama Fujitsu, Ltd., a group research and post-graduate studies in company in central Japan, participated Japanese and American management Official Sponsorship of Kawasaki in this program run by the prefectural theory and methodology. Frontale board of education. In October 2004, Kawasaki is home town to the four junior high

Fujitsu and Society Foundation for International soccer team, which school students Information Processing Education joined Japan’s professional J-League in spent five days at (FINIPED) 1999. The team has been contributing the company, FINIPED was founded in 1972 to to the development of professional experiencing for promote education in information soccer, training themselves what it processing both in Japan and abroad. young local was like in the The foundation has expanded to include athletes, and workplace and Hands-on experience about 130 corporate members, and encouraging gaining invaluable of data preparation supports students’ training and sporting culture experience. research activities, including those at in general. JAIMS and universities in Japan and Support for Organizations for the overseas. © KF2005 Hearing Impaired Fujitsu Infosoft Technology (a The Mathematical Olympiad company that was absorbed into Fujitsu Foundation of Japan Disaster Relief for the Sumatra on July 1, 2005) has been supporting We support the Mathematical Earthquake and Indian Ocean local organizations for the hearing Olympiad Foundation of Japan, which Tsunami Disaster impaired by sending lecturers to IT selects and sends Japanese The earthquake that struck off the educational events sponsored by local

Fujitsu and the Environment competitors to the International island of Sumatra on December 26 government in its area and also Mathematical Olympiad. As such, it 2004, and the tsunami that followed, is supporting the opening of a dedicated contributes to the identification and one of the greatest human disasters website. encouragement of young people with ever recorded. The enormous loss of life In October 2004, the company exceptional mathematical creativity who and physical destruction in the nations received an award from the Shizuoka can be expected to play leading roles in affected brought relief efforts from all Prefectural Association for People with the future progress of society. around the world. Hearing Disabilities for its work in 2003 At Fujitsu, the outpouring of support supporting courses to train volunteers in came in a variety of forms and from sign language arranged by the across the Group. Corporate Association in contributions as well as money and connection supplies collected from employees were with the donated to national and local agencies Wakafuji as well as to the Red Cross and other Conference (an organizations supporting relief and organization recovery efforts. for the Sign language-interpreted handicapped). IT lecture for the hearing The 2004 Mathematical Olympiad impaired

29 2005 FUJITSU GROUP SUSTAINABILITY REPORT high in environmental concerns. Environmental Environmental Contributions Activities have included introducing Contributions to Society in Other Areas examples of corporate consideration of The Fujitsu Group takes global Branches and offices of the Fujitsu environmental factors, as well as environmental protection seriously, and Group in Japan plan and implement sponsoring an artwork contest and we are committed to handing down a environmental contribution activities as symposium. This has succeeded in rich natural environment to future part of the Environmental Management further raising student awareness and generations. We are encouraging every System (EMS). These include reducing interest in environmental concerns. organizational unit and all employees to their consumption of precious resources actively participate in activities and reducing the volume of waste Training for Environmental Leaders contributing to the environment. disposal. Such activities also reflect our To raise employee interest in commitment to maintaining harmonious environmental activities and encourage International Reforestation Activities relationships with local communities. them to take the lead in environmental We have been supporting tropical preservation, we held the first reforestation activities in Southeast Asia Beautification at Our Nagano Plant environmental leadership training Corporate Governance and Internal Controls since 1997. Since 1997, our Nagano Plant has conference in February 2005 as part of From 2005, we will implement the engaged in local clean-up activities and our EMS activities. fourth phase of this tree-planting from 2001 carried out this activity in This training conference aims to program, following completion of the conjunction with develop leaders who can help drive third phase, in Sabah State, Malaysia, the nearby junior environmental contributions at each on land controlled by Sabah’s Forestry high school of site. The 20 participants at the first Development Authority. We intend to Shinshu University. training conference acquired know-how spend three years restoring the In June 2004, 149 in making systematic approaches to population of native varieties by planting employees and 57 local community contributions. seedlings. In January 2005, 41 pupils worked in The Wild Bird Society of Japan employee volunteers from Japan five neighborhoods, (WBSJ) is one of the nation’s largest participated in the reforestation work, collecting 65kg of Clean-up activities at the NPOs. Fujitsu joined with the WBSJ to Nagano Plant (in front of planting a hillside with 2,643 seedlings. weeds and Shinshu University implement a three-day training course in Fujitsu and Society Among the volunteers were those who garbage. Junior High School) Yokohama, which offered participants a had participated in the work three years chance to commune with nature earlier and who were delighted to see Forestation Activities at Fujitsu through bird watching and gathering the seedlings they had planted growing Minami Kyushu System Engineering fallen leaves, and to learn how to plan strongly. This Group company carried out proposals for environmental activities. This area of forest is used by reforestation activities on the caldera rim Participants remarked that the training adjoining educational and research of Mt. Aso in 2004. Employees and their had made them realize the importance establishments, and is attracting families joined with volunteers from of individual academic interest. It is also visited by nearby Nishihara Village and Aso awareness of participants in “ecological” tree-planting Greenstock Foundation to plant trees contributing to tours from Malaysia and overseas. and cut environmental Aware of the influence of this work on undergrowth. activities, and ecological revitalization as well as the The company is they were local economy, we are committed to its committed to determined to Communing with nature ongoing support. preserving Kyushu’s use this new Fujitsu (Thailand) Co., Ltd. is also water resources and awareness in the continuing its rare animal and Tree-planting activities service of the reforestation activities. plant species. (in April 2005) environment. We Fujitsu and the Environment The company is are committed to expanding the scale Environmental Education sponsoring of these activities, Fujitsu Computer Products Corporation continuing and in its fourth of the Philippines has, since March training sessions Training session on phase project in 2005, been in this series. planning and proposing 2004 planted 80,000 assisting with environmental activities trees in and area of environmental 800,000 square Overseas education at a meters. reforestation activities local private school, the Rizal Institute of Canlubang, Environmental where interest is e-learning program

2005 FUJITSU GROUP SUSTAINABILITY REPORT 30 Fujitsu and the Environment

Passing on Our Precious Environment to Future Generations

The Fujitsu Group has established an Environmental Protection Program according to the Fujitsu Group Environmental Policy based on The FUJITSU Way. We will continue to positively engage in the development of a sustainable society.

Product Recycling (P47) Environmental Measures Environmental Solutions for Products (P43) (P49)

Green Procurement Fujitsu Group Global Warming (P57) Environmental Countermeasures (P51) Protection Program Strengthening (Stage IV) Promotion of Green Environmental Factories (P53) Management (P36)

Environmental Policy

The FUJITSU Way

31 2005 FUJITSU GROUP SUSTAINABILITY REPORT Fujitsu and the Environment — Environmental Management Environmental Policy

Establishing a Fujitsu Group Environmental Policy based on The FUJITSU Way and carrying it out on a global basis

Fujitsu Group Environmental Policy Philosophy The Fujitsu Group recognizes that environmental protection is a vitally important business issue. By utilizing our technological expertise in the IT industry and our creative talents, we seek to contribute to the promotion of sustainable development. In addition, while observing all environmental regulations in our business operations, we are actively pursuing environmental protection activities on our own initiative. Through our individual and collective actions, we will continuously strive to safeguard a rich natural environment for future generations. Principles • We strive to reduce the environmental impact of our products throughout the product life cycle. • We are committed to conserving energy and natural resources, and practice a 3R approach (reduce, reuse, recycle) to create best-of-breed eco-friendly products. Corporate Governance and Internal Controls • We seek to reduce risks to human health and the environment from the use of harmful chemical substances or waste. • Through our IT products and solutions, we help customers reduce the environmental impact of their activities and improve environmental efficiency. • We disclose environment-related information on our business activities, products and services, and we utilize the resulting feedback to critique ourselves in order to further improve our environmental programs. • We encourage our employees to work to improve the environment, bearing in mind the impact of their business activities and their civic responsibilities.

approach, which has applied since our Fujitsu Group Environmental * Agenda 21: A concrete plan of action for

sustainable development, to be carried out by founding, of manufacturing in harmony Fujitsu and Society Policy various countries and international with nature and put this approach into Since its founding in 1935, Fujitsu has organizations. It involves programs to deal with practice in their daily work. For this environmental issues, including social and made environmental preservation one of economic problems such as population, purpose, we have established Green the most important elements in its poverty and human settlement issues, as well Policy 21 as a concept that can guide management, based on its philosophy as soil, forests, the atmosphere, desertification, our actions, a concept that goes of “manufacturing in harmony with agriculture, biodiversity, water, hazardous beyond any mere statement of intent. wastes and chemical materials. nature.” We have adopted as our slogan “We In 1992, the year when Agenda 21* make every activity green,” and we put was adopted at the Rio de Janeiro Green Policy 21 this idea into practice in all areas of our Global Summit, we established Fujitsu’s business. Commitment to the Environment. This We want every employee of the was created in the mold of the Global Fujitsu Group to understand the Environment Charter, announced by the Japanese Federation of Economic Environmental Concept “Green Policy 21” Organizations in the previous year. In October 2002, when the Johannesburg Green Policy 21 Summit was held and summit Pursuit of eco-friendly Environmental contributions

We make every activity green Fujitsu and the Environment participants were debating how to manufacturing by individual employees execute Agenda 21 in a more effective way, we revised this commitment to Deploying IT to help create a Fujitsu Group Environmental realize a recycling society Policy. Our objective in this revision was Green Policy Green Policy Earth Green Policy to implement environmental Factories Solutions management in a way that reflects the distinct character of the Fujitsu Group’s Green Policy business, responding to more and more Products diverse problems where environmental management is increasingly vital.

Green Policy Management Reinforcing the Developing technologies environmental management appropriate to environmental support system preservation, providing eco- friendly products and recycling

2005 FUJITSU GROUP SUSTAINABILITY REPORT 32 Fujitsu and the Environment — Environmental Management Targets and Achievements — Environmental Protection Program (Stage IV) Establishing clear objectives that apply to all business areas of the Fujitsu Group, as well as carrying out well-planned and continuous environmental protection efforts

to the building of a sustainable society deadline for implementation in fiscal Environmental Protection through systematic environmental 2006. Meanwhile, through changes to Program (Stage IV) protection efforts. our business structure, we have achieved In 1993 we established Stage I of the Fiscal 2004 was the first year of Stage our targets regarding certain items (e.g., Environmental Protection Program to IV, and with the exception of a few items, a reduction in usage amounts for PRTR*- provide concrete objectives so that we we were on target toward meeting the listed materials) ahead of schedule. could put our environmental policy into program objectives. For those areas * PRTR: Pollutant Release and Transfer practice. Since then, we have been where performance was insufficient, we Register (see P54) scaling up the objectives, gradually will intensify our implementation efforts expanding the scope of our environmental even more as we draw toward the activities to include all of our business areas and Group companies. Transitions in the Fujitsu Environmental Protection Program In Stage IV of the Fujitsu Group Environmental Protection Program, which Stage I–II Stage III Stage IV covers the period from fiscal 2004 to Corporate Governance and Internal Controls Targeted (1993–2000) (2001–2003) (2004–2006) fiscal 2006, we are expanding the scope period of our environmental efforts to include all Shift from Establishing a Lead runner environmental areas of the Group (i.e. factories, design Activity basis for toward a recycling management to and development divisions, headquarters slogan environmental society management management for a sustainable staff, sales, software and services environment divisions). As part of this program, we Entire Group/plants, adopted the slogan “shift from Targeted Fujitsu Group/plants, design/development, environmental management to scope/ Fujitsu/plants design/development headquarters staff, sphere divisions sales, software services management for a sustainable divisions environment.” We now aim to contribute

Fujitsu Group Environmental Protection Program (Stage IV) Fujitsu and Society Related Items Fujitsu Group Targets Performance (in fiscal 2004) pages Strengthening To establish EMS-based frameworks for environmental We obtained integrated group certification covering Fujitsu Limited and Environmental management across the entire Fujitsu Group by the end of 97 Group companies in Japan. P36 Management fiscal 2005. Green To increase the procurement ratio from suppliers who have The percentage of our procurement from business partners who have Procurement implemented an environmental management system (EMS) to implemented an EMS as a share of all procured items (parts used in 100% by the end of fiscal 2006. products, materials, software, general equipment, construction, P57 maintenance, etc.) reached 98.3%. Environmental All business units to provide Super Green Products (with top-class environmental We have developed Super Green Products in 12 product categories, including Measures for characteristics) in their principal product line offerings by the end of fiscal 2006. notebook PCs, semiconductors and other electronic components. Products All Fujitsu-brand products to be made free of Fujitsu-specified We have created development infrastructure for our products, such as hazardous substances by the end of fiscal 2005. databases on which types of parts do not contain hazardous materials P43 ~ and related standards. For 90% of the multipurpose parts which are used commonly throughout the company, we have switched to parts that do not contain hazardous materials. Product To establish recycling systems in Europe by the end of fiscal Each Fujitsu Group company in Europe has selected a system for recycling Recycling 2004, and in North America and Asia by the end of fiscal 2006. (individual or collective system) and logistics and recycling partners. Going forward, the companies will monitor and adjust their systems in accordance with regulatory developments in the countries in which they operate. P47 ~

Fujitsu and the Environment To increase the reuse and recycling rate of collected end-of life The resource reuse and recycling rate reached 88.3%, up 1.7 points products in Japan to 90% by the end of fiscal 2006. from the fiscal 2003 performance. To increase the utilization rate of recovered waste plastic for the Waste plastics are recycled into goods for special events, such as “Eco Fujitsu Group in Japan to 20% by the end of fiscal 2006. clips” and fans. Environmentally To provide “Environmentally Conscious Solutions” in all areas of We designated 28 products, primarily packaged solutions, as Conscious our software and services business by the end of fiscal 2006 in Environmentally Conscious Solutions. These were introduced to 796 Solutions order to help customers reduce their environmental burdens. corporate customers, with a resultant estimated savings of 34,500t-CO2. P49 ~ In addition, we continued to promote the assessment of the impact on environmental burden resulting from individual systems integration projects.

Global Warming Aim at increasing environmental efficiency throughout product • CO2 emissions due to energy consumption were about 1,281,000 Countermeasures life cycles. tons, a 20.5% decrease compared to fiscal 2000 levels (an 18.3% • To reduce CO2 emissions resulting from energy consumption increase if compared to fiscal 1990 levels). down to or below the actual emission levels of fiscal 1990 by • Emissions made up of other greenhouse gases (PFC, HFC, SF6) were the end of fiscal 2010. (15% reduction from fiscal 2000 levels about 475,000 tons, an 83.2% increase compared to fiscal 1995 by end of fiscal 2006.) levels. P51 ~ • To reduce greenhouse gases other than CO2 by 10% from the actual fiscal 1995 emission levels by the end of fiscal 2010. • To contribute to the reduction of greenhouse gases by efficient physical distribution, product recycling, development of energy saving products. Promotion of To reduce, by the end of fiscal 2006, the discharge of chemical Emissions of specified chemical substances were 52.1 tons, a decline Green Factories substances that are subject to the Pollutant Release and of 48.1% compared with fiscal 2001. Transfer Register (PRTR) by 15% compared to the fiscal 2001 discharge levels. P53 ~ To reduce the amount of waste generation by 3% compared to Amount of waste generated was 50,120 tons, a decline of 1.5 % the actual amount in fiscal 2003 by the end of fiscal 2006. compared with fiscal 2003.

33 2005 FUJITSU GROUP SUSTAINABILITY REPORT Fujitsu and the Environment — Environmental Management Environmental Management System

Group-wide implementation of an Environmental Management System (EMS) that conforms with the international ISO14001 standards

Organizational Framework for Structure for Environmental Activities Environmental Activities By location In order to enact management decisions quickly, the Fujitsu Group Management Council (Headed by President) EMS has been developed in accordance Various units/ with our business group structure. Each Group Corporate Corporate Business business group undertakes environmental groups companies Internal Audit Environmental (domestic, efforts tailored to the special features of Division Affairs Unit

overseas) By business its business and also participates in Head of internal Head of Group-wide environmental activities. auditing environmental The Management Council is the top management decision-making organ within our EMS, The FUJITSU Way In addition to determining the general Promotion Council direction of environmental activities, the Environmental Corporate Governance and Internal Controls Council also makes decisions on Committee revisions to the structure of the EMS, having first given thought to the degree of progress that has been achieved in Activity committees for various issues the Environmental Protection Program. Domestic Affiliated Companies’ Such decisions are communicated to Environmental Management Supervisory Environmental System Committee each business group by the Corporate Protection Council Environmental Affairs Unit, which oversees all Group environmental Green Products Committee Fujitsu Group Worldwide Environmental Conference activities. We have also formed task forces Green Procurement Committee covering various aspects of environmental

activities; their membership transcends Fujitsu and Society business group or divisional frameworks. Product Recycling Committee These committees deliberate over the formulation of concrete proposals for the Environmental Protection Program and Green Factories Committee improvements to the EMS structure. The Environmental Committee oversees the Environmental Communication results from these deliberations, then Committee reports these results to the Corporate Environmental Solutions Environmental Affairs Unit, also feeding Committee them back to the Management Council. Later, it works to ensure that these Global Warming Prevention results are reflected in the activities of Measures Strategy Committee the various business groups. In this way the Group as a whole goes through the PDCA* cycle, making continuous improvements in its environmental activities. Action Implementation Flow Fujitsu and the Environment * PDCA: Plan, Do, Check, Act. Management Council The FUJITSU Way Promotion Council Environmental Committee Business Various units/ group Group companies Target Target (domestic, approval implementation order worldwide) Policy Fulfillment determination Review of targets

Reports/Feedback Directives/Approvals Activity committees for various issues Reports Directives/Approval • Action program examination • Agreement with business units concerned • Progress reports

2005 FUJITSU GROUP SUSTAINABILITY REPORT 34 Fujitsu and the Environment — Environmental Management Environmental Management System

Our Environmental The Line/Site Matrix Structure Management Fujitsu Fujitsu office Group company Line: involving all business System (Japan) locations locations locations areas of the Fujitsu Group Site: the scope is deemed to Matrix Structure Corporate Center (11 Group companies) As shown on the previous page, our be major locations (those environmental management structure locations which formerly Solution Business Group (49 Group companies) handled EMS are parallels the corporate management maintaining their PDCA structure. Products Business Group*1 (22 Group companies) structure as certified Thus, we have established our locations) Environmental Management System Electronic Devices Business Group (12 Group companies) *1 Three business groups are (EMS) in the form of a matrix, bringing combined in the EMS structure.

together (1) line activities directly linked Fujitsu Laboratories*2 (1 Group company) Line activities *2 A single Group company but to the various divisions and Group treated as a business group. companies (such as Super Green Others (1 Group company) Corporate Governance and Internal Controls Product development or development and sales expansion of Environmentally Site activities Conscious Solutions), and (2) site activities where each plant or office takes part in some common effort (such An Example of GMS Use — the Internal Audit Support System as saving energy, reducing waste, moving away from paper-based Existing After use of GMS operations and contributing to local society through various activities). Auditor Auditee Auditor Auditee In this way, through developing an Auditing environmental management structure which conforms to our corporate Report of results Creation/receipt of

Fujitsu and Society management structure, we can lessen report over the web not just the environmental burden Post-audit attendant on our production activities, Response including remedies Internet Officer in but also, through the sale of our charge of products and services, the environmental Report of internal results Benefits audit burden for our customers and for After follow- • no paper is used up audit • improved efficiencies in creation and use of society as a whole. reports after the audit • improved efficiencies in analysis of internal audit Report of Officer in charge results Internal Environmental Audits results of internal audit • audit result information now can be shared In order to attain continuous improvements in our environmental activities and environmental Environmental Education improve efficiencies with regard to performance, auditing functions that are through E-learning management and use of environmental independent from the EMS and can In order to provide common general records and decrease resource use effectively monitor our environmental instruction for all employees, we have through sharing of audit results and activities are essential. prepared a structure for e-learning in reduced use of paper media. For this reason, a Director of which each employee can participate in (Corporate) Auditing has been courses at any time at his or her own Standards Monitoring System

Fujitsu and the Environment appointed as the responsible chief convenience. A broad range of internal standards officer for internal audits of EMS and and guidelines must be created for respective environmental activities. To Green Management System (GMS) implementing environmental ensure impartial judgment, this officer is In order to effectively manage many management based on ISO14001. not directly involved in EMS as such. kinds of environmental records based on We have taken the data on standards Also, through mutual audits between ISO14001 (records of activities, and guidelines (found in electronic files) business locations or Group companies, approvals, statistics and archives), we and stored it in databases. Next, we we aim for communication within the are now constructing a web-based GMS created and installed a monitoring Group that will go beyond the boundary which is coming into operation in stages. system, which can be used just like our lines of offices or companies, helping to One example of a GMS function is the everyday back-office systems. This improve the efficacy of internal internal environmental audit function. system enables us to speed up the environmental audits. This function will make it possible to process from creation of standards and improve efficiencies in the creation and guidelines to investigation of EMS Structures and Operations implementation of reports that follow performance, reporting, approval and Making Use of IT after internal environmental audits, as finally disclosure. It also allows We utilize IT to conduct effective well as increase the efficiency with increased efficiency in operations and management of a vast range of which internal audit results can be the monitoring of standards, as well as environmental activities which extend analyzed. Furthermore, this internal lower use of resources, including paper over the entire Fujitsu Group. environmental audit function aims to media.

35 2005 FUJITSU GROUP SUSTAINABILITY REPORT Fujitsu and the Environment — Environmental Management Strengthening Environmental Management

We obtained integrated certification for an Environmental Management System covering 100,000 people at Fujitsu Limited and 97 Group companies in Japan.

Fujitsu Group Environmental Protection Program (Stage IV) Target Fiscal 2004 Performance

To establish EMS-based frameworks for environmental We obtained integrated group certification covering management across the entire Fujitsu Group by the Fujitsu Limited and 97 Group companies in Japan. end of fiscal 2005.

use of their existing systems. By Stage IV of the Environmental Protection Building the Fujitsu Group implementing these measures, we Program — the Management Council Environmental established a PDCA cycle that covers all decided to go forward with the following Corporate Governance and Internal Controls Management System operations of the Group in Japan. Next, priorities for action in fiscal 2005. In order to strengthen environmental in March 2005, we brought Fujitsu • Bolster our Environmentally Conscious management, we set forth the following together with the companies that had Solutions business and the three goals. already gained certification individually development and supply of Super • Since environmental burden ratios for and with those companies just coming Green Products. Group company activities have been under certification (97 companies in all) • Avoid environmental risks. increasing as a result of changes in and began operating an integrated EMS • Strengthen our response to the issue the structure of our business, that covers about 100,000 people. In of global warming. governance will be strengthened not conjunction with this, we received • Carry out thorough monitoring of just for Fujitsu but for the Group as a integrated ISO14001 certification for our Group companies based on business- whole. business locations in Japan. related lines of management. • Through proactive moves toward We have also begun grappling with We are now in the process of

systematic environmental activities new challenges in environmental structuring our EMS to include overseas Fujitsu and Society across the Group as a whole, we will management, sharing environmental Group companies. We have declared increase the environmental data among all our operations in Japan, our aim to establish an environmental consciousness of each of our conducting mutual audits between management framework that will cover employees. factories and Group companies and all Group companies by the end of fiscal • We will improve the transparency of other measures. 2005. As a result, we will be working to environmental activities so that the improve efficiencies in environmental process for developing Stage IV of the Priority Actions for Fiscal matters as we intensify the Fujitsu Group Environmental 2005 and Future Policies environmental activities of our various Protection Program, its deployment to organizations, thus diminishing our Group companies and the actual In light of results that have come from environmental burden and helping to operation can all be checked from a fiscal 2004 activities involving the reduce the environmental burdens of third-party viewpoint. strengthening of environmental our customers and of society as a In order to realize these goals, we have management — one of the themes in whole. set up an objective (part of Stage IV of the Fujitsu Group Environmental Protection Program) to establish EMS- Comment by the Head Auditor for the Group’s Integrated Certification based frameworks for environmental management across the entire Fujitsu The audit team confirmed through its four Fujitsu and the Environment Group by the end of fiscal 2005. Takao Ogawa months of auditing that the integrated system During fiscal 2004, we made progress General Manager, was working effectively and that this effort is International Certification contributing to the management of the toward achieving this objective by Japan Audit and Certification business groups. establishing an Environmental Organization for Environment The establishment of this massive system Management System (EMS) that and Quality (JACO) owed a a great deal to group governance as integrates Group companies in Japan. The effort to build an integrated Environmental evinced in the distribution of an integrated group Management System for the Fujitsu Group manual, the establishment of integrated joint bringing together Fujitsu Limited with 97 objectives, integrated internal auditing at all sites Obtained Integrated Group affiliated companies and covering some and thorough instruction through e-learning. Certification in Japan 102,000 people is truly an epochal An integrated system of this level of During fiscal 2004, we deployed our undertaking. In particular, due recognition sophistication cannot be built overnight. As EMS throughout our Japanese Group should be given to Fujitsu’s efforts to inculcate Fujitsu increases its use of IT and proceeds companies. During this rollout, we into each business group, as an action with an environmental management regime objective, the principle of environmental based on participation from all employees, I deployed EMS at those Group management. Through integrating expect the Fujitsu Group to lead its industry as companies which were still without it. environmental goals with business operations, it provides a model for other company Even at the companies which had we can expect to see further benefits in the groupings that are now aiming to build already implemented their own EMS, we nature of environmental improvements. integrated systems. built interfaces to Fujitsu which made

2005 FUJITSU GROUP SUSTAINABILITY REPORT 36 Fujitsu and the Environment — Environmental Management Environmental Accounting

Evaluating and improving the effectiveness of our environmental management through cost & benefit assessment helps identify problems and share best practices across the Group.

In fiscal 1998, we introduced same period to 22.6 billion yen. environmental accounting, in which Fiscal 2004 Overview However, from fiscal 2004 FDK investments in environmental Corporation and Eudyna Devices Inc. conservation and attendant benefits are Fiscal 2004 was the first year of Stage (formerly Fujitsu Quantum Devices Ltd.) evaluated by developing a clear picture IV of the Fujitsu Group Environmental were not included in Fujitsu’s consolidated of the costs and benefits connected Protection Program. accounts, so fiscal 2004 figures reflect the with environmental conservation efforts. In addition to the work to improve impact of their removal from the scope of Ever since, we have been publicizing environmental efficiency in our business this period’s environmental accounting. If the results of these efforts. activities, we were involved in many the impact from these two companies is In these calculations, we provide a environmental conservation efforts excluded, total costs were down by 0.3 clear overall picture of Group aimed at achieving sustainable business billion yen and total economic benefits environmental conservation activities management, including the development showed a decline of 0.5 billion yen when using not only the Ministry of the of Super Green Products — products compared to the previous year. Environment’s Environmental with industry-leading levels of As for environmental costs, a lowering Accounting Guidelines but also environmental friendliness — and also of costs in the business areas was the Corporate Governance and Internal Controls computational standards that we have the provision of Environmentally main reason for lowered total costs. On established independently in order to Conscious Solutions, which can help our the benefits side, even though actual estimate effects that are not so easily customers lower their environmental benefits showed an increase, particularly assessed. In light of these estimates, burdens. due to benefits derived from resource Fujitsu’s plants and subsidiaries can As a result, total environmental costs circulation, the decrease in pollution clarify the issues they need to address, declined 1.1 billion yen versus last year prevention benefits among our estimated while sharing meanwhile in the benefits to 17.9 billion yen, while total economic benefits was primarily responsible for the of this analysis. In environmental benefits declined 1.3 billion yen over the overall decline in economic benefit. accounting, we also calculate the results produced by Green Process Costs and Economic Benefits Administration R&D/solutions business benefits 3.1% benefits 5.3% activities, which simultaneously cut both Environmental Environmental remediation the environmental burden and R&D/solutions remediation costs 0.5% Upstream/ benefits 0.9% business costs 10.0% downstream Fujitsu and Society manufacturing costs. benefits 4.0% More detailed data on basic Pollution Pollution Administration prevention prevention environmental accounting elements and costs 20.7% costs 29.1% benefits 37.6% related information may be found on the Upstream/ Fujitsu website. downstream costs 5.6% http://www.fujitsu.com/global/about/ Global Global environment/report/ Resource environmental Resource environmental circulation costs conservation circulation conservation 17.9% costs 16.2% benefits 38.0% benefits 11.1% Cost Economic Benefit

Results for FY2004 Economic Item Main areas covered Costs Classification of benefits Environmental (100 million yen) benefit (100 million yen) conservation benefits

Pollution prevention costs/benefits Preventing air pollution/preventing water pollution, etc. 52 (–3) Estimated benefits 85 (–16) CO2 6,375 tons-CO2

Business Global environmental conservation Actual benefits 24 (–2) NOx 37 tons area costs/ costs/benefits Preventing global warming, energy conservation, etc. 29 (–7) benefits ± Estimated benefits 1 ( 0) SOx –153 tons Resource circulation costs/benefits Disposal of waste, efficient utilization of resources, etc. 32 (–2) Actual benefits 86 (±14) BOD –26 tons Fujitsu and the Environment Upstream/downstream costs/benefits Recycling of used products, green purchasing, etc. 10 (+2) Actual benefits 9 (±0) COD –22 tons Environmental management system, environmental Actual benefits 2 (±0) Amount of 753 tons Administration costs/benefits training of employees, disclosure of environmental 37 (±0) waste information, etc. Estimated benefits 5 (–1) generation R&D to develop products that contribute to environmental 18 (–1) R&D/solutions business costs/benefits Estimated benefits 12 (–4) Discharge of 16.2 tons conservation, etc. PRTR target substances Social activity costs/benefits Donations to, or financial support for, environmental ± groups, etc. 0 ( 0) Estimated benefits 0

Environmental remediation costs/benefits Restore the natural environment back to its original state, etc. 1 (±0) Estimated benefits 2 (–4) Subtotal, actual benefits 121 (+13) Total 179 (–11) Subtotal, estimated benefits 105 (–26) Total 226 (–13)

• Numbers in parentheses indicate increases or decreases in comparison with the previous year. Classification of Economic Benefits • Among those economic benefits which derive from administration, reductions in personnel costs due to • Actual Benefits greater efficiencies have been assigned to actual benefits from fiscal 2004 on, so our comparison to the Benefits which can be directly declared in monetary amounts, like previous year excludes this effect. savings produced in the case of reductions in environmental • “0” is employed for social activity costs and economic benefits of less than 100 million yen. conservation costs. • No comparisons are offered for social activity benefits since calculation of this figure only began in fiscal 2004. • Estimated Benefits • Individual year-over-year comparisons and the total year-over-year comparison may not agree due to rounding. Benefits not directly presentable in monetary amounts which can be • Environmental conservation benefit = fiscal 2003 total environmental burden – fiscal 2004 total environmental put into monetary figures under certain conditions (e.g. contribution burden of environmental conservation activities to value added in • The carbon dioxide amount listed among environmental conservation benefits is the amount connected with manufacturing, savings from avoidance of operating losses stemming energy use. from failure to observe environmental laws and regulations.)

37 2005 FUJITSU GROUP SUSTAINABILITY REPORT Environmental Conservation Benefits of Green Process Activities Costs and Economic Benefits Looking at environmental conservation The Fujitsu Group is expanding the majority of benefits recorded, but costs, a new facility at one of our plants range of its Green Process activities, through the advance of Green Process producing electronic devices just started going beyond plants that produce activities at our assembly plant operations, and maintenance and electronic devices to include assembly locations, we expect benefits to operation costs for environmental plants. increase due to cuts in direct materials. equipment increased by 100 million yen. An analysis of the fiscal 2004 We will continue to clearly present However, since capacity utilization rates environmental accounting results actualized benefits from our Green at some of the consolidated subsidiaries reveals that resource circulation benefits Process activities using environmental have declined, maintenance and increased. More generally, costs accounting. We will disclose these operation costs for environmental decreased while benefits increased actualized benefits as public equipment declined by 700 million. As a substantially, so the cost/benefit picture information, authenticated by third-party result, total costs declined. has improved. Benefits from reductions certification. Corporate Governance and Internal Controls In terms of economic benefits, in chemical substances made up the pollution prevention benefits (one part of risk avoidance benefits deriving from new Chemical Substance Reduction Fujitsu Group Resource investment in plants) increased by 300 Benefits at Mie Plant Circulation Benefits million yen, contributory benefits derived Resource circulation benefits Resource circulation costs vs. from environmental conservation activity resource circulation benefits 5 million 74 million 352 million 615 million 115151 212 269 265 that help in producing added value (million yen)yen yen yen yen (million yen) declined by 1,700 million yen, due to a 700 10,000 decline in capacity utilization rates at a 9,000 600 8,600 subsidiary. Meanwhile, resource 46 8,000 7,200 circulation benefits increased by 300 500 million yen due to the promotion of Green 6,000 5,600 400 6,000 6,300 Process activities in Fujitsu plants, and Fujitsu and Society sales of valued resources by 4,700 4,600 11 4,000 4,100 300 3,700 consolidated subsidiaries increased by 569 4,200 3,400 3,200 3,400 1,500 million yen. 3,800 200 2,700 2,500 2,000 2,000 2,000 2,000 Looking at estimated versus actual 341 2,600 2,600 2,700 benefits, estimated benefits decreased by 100 1,400 1,400 1,400 1,200 1,400 0 900 1,200 2,600 million yen, but actual benefits 4 34 increased by 1,300 million yen. The 0 1 40 FY2001 FY2002 FY2003 FY2004 FY2005 (Estimated) increase in actual benefits is a result of a FY2001FY2002 FY2003 FY2004 Fujitsu Group approach to environmental Chemical substance Others Fujitsu Limited Affiliated subsidiaries conservation that gave central focus to reduction benefits Resource Resource the promotion of Green Process activities. Chemical substance Resource circulation circulation costs circulation costs reduction benefits benefits Resource Resource 341 million yen 352 million yen circulation benefits circulation benefits 569 million yen 615 million yen

Trends in Costs and Economic EI Indicator (Fujitsu Limited) EE Indicator (Fujitsu Limited) Benefits (million yen) Fujitsu and the Environment 25,000 500 0.06

400 384 376 381 0.05 0.048 20,000 19,000 18,700 18,900 0.046 0.047 17,900 300 0.043

16,400 13,100 221 0.04 15,000 11,800 10,500 200

100 0.03 10,000 FY2001FY2002 FY2003 FY2004 FY2001FY2002 FY2003 FY2004

Environmental Improvement (EI) Environmental Efficiency (EE) 12,100 5,000 10,800 Indicator Indicator 9,200 7,900 A measure of the environmental burden A measure of total sales relative to the reduction effect per unit cost (unit: ton- environmental burden (unit: ¥100 0 CO2/¥100 million). The EI indicator shows million/ton-CO2). The EE indicator FY2001 FY2002 FY2003 FY2004 the effect of monetary expenditures (here, shows the value added in terms of sales ¥100 million) on environmental measures by reduction of the environmental Costs in terms of the consequent reduction in burden. It permits evaluation of the Estimated benefits the environmental burden as measured environmental burden resulting directly Actual benefits by the weight of CO2. from business activities.

2005 FUJITSU GROUP SUSTAINABILITY REPORT 38 Fujitsu and the Environment — Environmental Performance Operating Activities and Environmental Burden (Material Balance) Assessing numerically the overall environmental burden imposed by business activities along the supply chain and throughout the product life cycle

Manufacturing

Chemical Substances Volume of PRTR Law target chemicals handled by plants/sites in fiscal 2004 Raw Materials Volume used in major products shipped in fiscal 2004 and the CO2 volume discharged from Calculation resource mining to raw material stage (Per-product raw material volume × Units shipped in fiscal 2004) Methods * Major products: Personal computers, mobile phones, servers, work stations, handhelds, storage systems, magnetic disc devices, MO drives, printers, scanners, financial terminal products, distribution terminal products, routers, access LAN, access network products, mobile phone base station equipment, electronic devices Energy Electricity, oil and gas consumed by plants/sites in fiscal 2004 Water Volume used by plants/sites in fiscal 2004

Chemical Raw Materials Energy Substances Metal 40,437 tons Electricity purchased 2,032,783MWh

Corporate Governance and Internal Controls 2,650 tons Plastic 18,521 tons Heavy oil, kerosene 145,642S INPUT Glass 2,169 tons LPG, LNG 2,525 tons Others 11,044 tons Natural gas, city gas 21,846,000m3 Water (PCB units, semiconductors, etc.) District heating and cooling 44,603GJ 25,031,002m3 CO2 discharge 705,294 tons-CO2 Total 26,700,000GJ

Development/Design Stages Procurement Stage Manufacturing Stage Developing Green Products Selecting product parts Conducting energy-saving activities to based on product and materials with an eye minimize use of materials, energy and water Hardware environmental assessments to minimizing the resources; zero-emission activities to achieve Products considering both energy environmental burden. zero landfill disposal and simple incineration;

Fujitsu and Society efficiency during use and and activities to reduce chemical emissions. post-use recyclability.

Planning and Development Procurement Stage Planning and developing Green Procurement that Software & solutions that contribute to seeks to procure software and Solutions reductions in environmental services from suppliers who burdens when the systems give proper consideration to and services are introduced. the environment.

Chemical Atmospheric Water Waste Substances Release Discharge Volume of waste generated 50,120 tons CO2 1,281,000 tons-CO2 22,387,797m3 Volume of thermal recycling 7,940 tons OUTPUT 52 tons SOx 762 tons BOD 305 tons Volume of material recycling 39,867 tons

Fujitsu and the Environment NOx 3,585 tons COD 426 tons Volume of waste disposal 2,312 tons

Manufacturing

Manufacturing Chemical Substances: Measuring the concentrations of PRTR Law target chemicals discharged through plants’ drains and exhaust ports in fiscal 2004 and multiplying the total volume discharged (nickel compounds, manganese compounds, etc.) or total volume emitted (xylene, toluene, etc.), or calculating based on the chemical substance balance (xylene and toluene). Atmospheric Release CO2: CO2 discharge volume associated with energy consumption by plants/sites in fiscal 2004 (Energy consumption × CO2 conversion factor) Calculation NOx, SOx: Calculated from emissions/concentrations from vents (boilers, etc.) by plants/offices Methods in fiscal 2004 Water Discharge Wastewater volume discharged by plants/sites into sewerage or rivers in fiscal 2004 BOD: A measure of the emission volume of organic pollution of water discharged by businesses employing the volume of oxygen consumed when organic matter in water is resolved by microbe activity COD: A measure of the emission volume of organic pollution of water discharged by businesses employing the volume of oxygen consumed when organic matter in water is resolved chemically by oxidizers Waste Volume of Waste Generated: The volume of waste disposal by plants/sites in fiscal 2004 Volume of Waste Disposal: The volume of landfill disposal and simple incineration by plants/sites in fiscal 2004 (including waste which is not a zero emission target)

39 2005 FUJITSU GROUP SUSTAINABILITY REPORT their ultimate recovery and recycling. business activitites of the Group are The Concept of Material In order to reduce the environmental designed to provide products and Balance burden imposed both by the Group’s services with high added value while The products of the Fujitsu Group activities and the use of its products by making unremitting efforts to reduce the play an integral part in daily life and customers and in society, we seek to burdens they impose. business, and they inevitably impose a assess their overall quantitative effects * The numerical input and output data in the burden on the environment throughout along the supply chain and throughout following examples are mainly for the life cycles their entire life cycle, from the initial the product life cycle and to implement and supply chains of hardware products. design and development process to a variety of environmental policies. The

Distribution/Sales Use Collection/Reuse/Recycling

Energy Fuel consumption volume assuming Energy Electricity consumption by major The weight ratio of recycled parts and that all CO2 released during products shipped in fiscal 2004 resources with respect to the processing transportation is from light oil fuel. (Assumed hours of use per product volume of post-use products is calculated Age-based electricity consumption × (Conversion coefficient: 2.64 kg-CO2/liter · according to the method of the Japan Units shipped in fiscal 2004) light oil) Electronics and Information Technology Industries Association. It excludes collected waste other than post-use electronic products.

Energy Energy

Resources recycling rate: 88.3% Corporate Governance and Internal Controls Electricity 8,656,196MWh Collection volume: 14,070 tons Fuel (light oil) 10,365S (85,090,000GJ) * Closed recycling is conducted for some parts and materials.

Distribution/Sales Stages Usage Stage Collection/Reuse/Recycling Stages Minimizing the energy consumed in product Striving for energy-saving in products and Curbing energy consumption through transportation and curbing the volume of encouraging their long-term use by activities promoting post-use product waste gases released into the atmosphere. employing structures that permit performance collection, reuse and recycling. Disposal and function expansion and providing of some industrial waste in landfills is

maintenance and repair support. unavoidable, but we are promoting Fujitsu and Society effective use.

Distribution/Sales Stages Usage Stage Operation and Maintenance Reducing the volume of exhaust gases Providing systems and services that Working to reduce the environmental discharged into the atmosphere while contribute to reducing environmental burdens burden imposed by our business reducing the amount of energy expended in for customers and society. establishments. delivering products to customers.

Atmospheric Atmospheric Release Release

CO2 27,364 tons-CO2 CO2 3,523,072 tons-CO2 Fujitsu and the Environment

Distribution/Sales Use

Atmospheric ReleaseThe total CO2 volume, Atmospheric Release The volume of CO2 including both fuel emissions during use consumption by of major products shipping businesses shipped in fiscal 2004 when measurable, and (Assumed hours of use Shipping distance × per product·Age-based CO2 emissions × Units Freight weight × shipped in fiscal 2004) Coefficient when other companies’ freight is included, as in mixed- load transportation, in fiscal 2004

2005 FUJITSU GROUP SUSTAINABILITY REPORT 40 Operating Activities and Environmental Burden Environmental Considerations in the PC Life Cycle Illustrating our commitment to the environment throughout the PC life cycle

The Input/Output numeric Common environmental burden values introduced here are described Desktop PC Notebook PC on the EcoLeaf environmental Key Desktop PC label obtained by Fujitsu, and Energy Energy are for the product lines 2,410MJ 1,650MJ Notebook PC shown at the top of P42. INPUT Mineral Resources Mineral Resources 17kg 5kg Water 13,400kg Water 9,480kg

Development/ Procurement Manufacturing Design Stages Stage Stage Corporate Governance and Internal Controls P43-46 P57 P51-56

Detailed evaluations to minimize Promoting Green Procurement Promoting Green Factories environmental burdens starting with preference given to parts at the design stage and materials with reduced Development of Super Green environmental burden Products Green Procurement promotion: Green assessment evaluations In fiscal 2004, the actual ratio of Green Procurement has, thanks to Desktop PC Notebook PC Life cycle assessments (LCA) production line at production line at the cooperation of our suppliers, Fujitsu Isotec Shimane Fujitsu Virtual Product Simulator/Eco reached 98.3% in only the first year Design: A proprietary design of the three-year plan (including Energy-saving measures support tool that uses 3D products other than PCs). • Fujitsu Isotec Ltd. Fujitsu and Society simulation to estimate a product’s Reduction of 27 tons-CO2 environmental burden. achieved (fiscal 2004) Using materials and components • Shimane Fujitsu Ltd. that employ and generate fewer Reduction of 99 tons-CO2 harmful substances. achieved (fiscal 2004) Lead-free solder: Lead-free solder Reduction in chemical substance technology is used in some printed usage volume circuit boards. Zero-emission activities Chrome-free steel: Steel free of • Fujitsu Isotech Ltd. hexavalent chromium is used in Zero emission achieved (fiscal 2003) product frames. Using materials that require • Shimane Fujitsu Ltd. fewer natural resources Halogen-free plastics: Halogen-free Zero emission achieved in Bio-based plastics: The plastic plastics, which do not generate manufacturing (fiscal 2003) bodies of some dioxins during combustion, are products use corn employed in our products. Implementing Green Process as a raw material. activities: We independently Design that looks past the end Recycled plastic introduced the above measures to of a product’s useful life advance our Green Process

Fujitsu and the Environment materials: These have been used in notebook PCs Disassembly manuals: These are activities. Manufacturing processes since 1998 and in desktop PCs prepared for every product. were evaluated in terms of specific indicators to reduce environmental since 1999. Rycyclable paints: Since 1999, we burdens and costs. have used paints that do not have to be removed from plastics before they are recycled.

Desktop PC Notebook PC

CO2 139kg CO2 87kg SOx 0.15kg SOx 0.09kg OUTPUT NOx 0.18kg NOx 0.10kg

41 2005 FUJITSU GROUP SUSTAINABILITY REPORT Applicable Products

Desktop PC [FMV-C5200 (main unit)/VL-171SE (display)] Notebook PC [FMV-830MG]

Calculated using 1st edition of EcoLeaf standard Calculated using 2nd edition of EcoLeaf standard categories (PSC) BJ. categories (PSC). PSC details: PSC details: http://www.jemai.or.jp/english/ecoleaf/pub_label.cfm http://www.jemai.or.jp/english/ecoleaf/pub_psc.cfm

Desktop PC Notebook PC Desktop PC Notebook PC Desktop PC Notebook PC

Energy Energy Energy Energy Energy Energy 16MJ 5MJ 4,510MJ 810MJ –432MJ –19MJ Mineral Resources Mineral Resources Mineral Resources Mineral Resources Mineral Resources Mineral Resources 0kg 0kg 0kg 0kg –10kg –0.2kg Water 0.03kg Water 0.008kg Water 19,400kg Water 3,490kg Water –2,270kg Water –142kg

Distribution/ Usage Stage Collection/Reuse/ Sales Stage Recycling Stages Corporate Governance and Internal Controls P46, 52 P45 P47-48

Pursuing environmental Reducing energy consumption Promoting recycling and reuse burden reduction in the when in use or in standby mode to contribute to creation of a distribution stage, from a shift Meeting low-energy standards recycling society to railway transportation to • We surpass mandatory low- Setting up means for collection adoption of new packaging energy standards for 2005 by over and recycling: The Fujitsu recycling Modal shift promotion: System 500% (AAA level performance) system, in combining truck • In compliance with International close and railway Energy Star Program association transportation Reducing electrical power with Japan promoted consumption through low-energy Post, is design promoting the collection of products whose useful Fujitsu and Society Wide-area delivery center life is over. enhancement: Nationwide Recycling magnesium alloys: transportation routes optimized Since 2002 we Integration of delivery database: have been Efficiency in allocating number of collecting and shipments improved recycling the housings of our Adoption of packaging boxes PC products. using soybean ink: Use of volatile organic compounds (VOCs) restrained Material recycling of glass-fiber- reinforced polycarbonates: We Disclosing environmental developed recycling technology for information to customers at GFRP with a glass-fiber product purchase manufacturer and will be applying it Conformity with the Law on in future. Promoting Green Purchasing Promotion of parts reuse: HDDs, Certification as a Fujitsu CPUs and memory are reused after Green Product data erasure. Application of legal standards Use of dismantling manuals Fujitsu and the Environment for fiscal 2005 targets Conformity with 3R PC Sales of refurbished PCs: PCs Eco-labels are inspected, cleaned and reused Compliance with the following lease expiration. International Energy Star Program Acquisition of EcoLeaf environ- mental label No. AS-03-001

Desktop PC Notebook PC Desktop PC Notebook PC Desktop PC Notebook PC

CO2 1kg CO2 0.3kg CO2 199kg CO2 36kg CO2 –28kg CO2 –1kg SOx 0.001kg SOx 0.0004kg SOx 0.15kg SOx 0.03kg SOx –0.05kg SOx –0.003kg NOx 0.02kg NOx 0.005kg NOx 0.12kg NOx 0.02kg NOx –0.04kg NOx –0.002kg

2005 FUJITSU GROUP SUSTAINABILITY REPORT 42 Fujitsu and the Environment — Environmental Performance Environmental Measures for Products

We have adopted a Group approach to eco-design for all products, and in cooperation with our business partners we are making efforts to reduce environmental burden throughout product life cycles.

Fujitsu Group Environmental Protection Program (Stage IV) Targets Fiscal 2004 Performance

• All business units to provide Super Green Products • We have developed Super Green Products in 12 (with top-class environmental characteristics) within product categories, including notebook PCs, their principal product line offerings by the end of semiconductors and other electronic components. fiscal 2006. • A database of components for products free of • All Fujitsu-brand products to be made free of Fujitsu- hazardous substances has been made; specified hazardous substances by the end of fiscal a development infrastructure for related standards 2005. has been prepared; and 90% of components used in common throughout the Group have now been replaced with those free of hazardous substances. Corporate Governance and Internal Controls

Super Green Products Super Green Products Developed in Fiscal 2004 Development Fujitsu Limited (7 products) From fiscal 2004, IT products and communications hardware, • MO disk drive (DynaMO1300LT, 640LT) • MPEG2 encoder LSI devices semiconductor devices and other • Network server (IPCOM-S Series) • FRAM (MB85R256S) electronic components are being • Notebook PC (FMV-BIBLO NB 80K) • MPU for high-performance servers developed as Super Green Products. In • Hard disk drive (MHV2 AH Series) 2004, 12 newly developed products Group Companies (5 products) were designated as Super Green Products. • A6 size scanner (fi-60F) (PFU) • Electrical transceiver module (FCU-010M 10GECX4 module) (Fujitsu Components) • SAW duplexer (D6GZ/D6GV series) (Fujitsu Media Devices)

Fujitsu and Society Definition of Super Green Products • Functional polymer capacitor (FPCAP-RE L8 series) (Fujitsu Media Devices) “Super Green Products” are those • Wireless LAN module (MBH7WLZ07) (Fujitsu Media Devices) that meet the preconditions for Green Products (see P45) and are top class* in terms of low energy consumption, 3R Positioning of Super Green Products Super Green Product Requirements design and technology, non-use of hazardous substances, materials and Must satisfy Fujitsu Green technology that contribute to the Super Green Products STEP1 Products standards environment and other environmental (products with superior considerations. Super Green Products environmental consideration) are products or systems with superior Environmental features environmental consideration than others Green Products STEP2 must satisfy the Super we supply or are available on the (products with enhanced Green Product definition market. Products that receive environmental consideration) environmental labels or awards, or A Super Green official approval from third-party * Top class: Environmental considerations that Product organizations, are also eligible. represent a world first, a Japan first, or an (environmental emblem) industry first, the world’s smallest, Japan’s smallest or the industry’s smallest, etc. Fujitsu and the Environment

Example of Super Green Product Development

Environmentally Energy- Environmental Energy- friendly material saving 3R design label saving 3R design

Notebook PC (FMV-BIBLO NB80K) MO Disk Drive Network Server (IPCOM-S Series) • Developed and adopted large-size bio- (DynaMO 1300LT, 640LT) • By combining the capabilities of multiple based plastic housing with low • Reduced operational electric current by up to 10%. network devices in a single unit, CO2 environmental burden (see P58). Over the • Reduced volume and weight by approx. 45% emissions have been reduced by 40%. product life cycle, this reduces CO2 from previous models. • The unit takes up one third less space and emissions by 15% compared with • Obtained the industry’s first EcoLeaf environmental uses one third fewer cables than previous petrochemical plastics. lable (Type III label) to be given to an MO disk drive. equipment.

43 2005 FUJITSU GROUP SUSTAINABILITY REPORT

Elimination of Hazardous Fujitsu Group List of Banned Substances Chemical Substances • Polychlorinated biphenyls (PCBs) • Specified amines To further strengthen environmental • Polychlorinated naphthalenes (with 3 • Azo dyes and azo pigments that generate considerations in product development, or more chlorine atoms) specified amines the Fujitsu Group has drawn up a list of • Asbestoses • Chlordanes substances, based on Japanese and • CFCs • DDT foreign legal restrictions, that must not • Specified halons • Aldrin be used in products, and we use • Carbon Tetrachloride Substances • Endrin product evaluation and Green • 1,1,1-Trichloroethane Depleting the • Dieldrin Procurement to ensure that the • Bromochloromethane Ozone Layer • Hexachlorobenzene scheduled hazardous substances are • Methyl bromide • N,N’-ditolyl-p-phenylenediamine, not used. To meet the requirements of • HBFCs N-tolyl-N’-xylyl-p-phenylenediamine and the European Union’s RoHS*1 directive, • Polybrominated biphenyls (PBBs) N,N’-dixylyl-p-phenylenediamine we have also decided not to use four

• Polybrominated diphenyl ethers (PBDEs) • 2,4,6-tri-tert-butylphenol Corporate Governance and Internal Controls substances*2 (lead, mercury, cadmium • Short-chained chlorinated paraffins • Toxaphene and hexavalent chromium), and their • Bis (tri-n-butyltin) oxide (TBTO) • Mirex usage is currently being eliminated. • Tributyl tins (TBTs), Triphenyl tins (TPTs) *1 RoHS: the EU directive on “Restriction of the use of certain hazardous substances in electrical and electronic equipment.” *2 Substances containing polybrominated Fujitsu Group List of Substances to Be Totally Abolished biphenyls (PBB) and polybrominated diphenyl ether (PBDE) listed in the RoHS directive have • Cadmium and its compounds • Lead and its compounds already been eliminated. • Hexavalent chromium compounds • Mercury and its compounds

Checking for Hazardous (JGPSSI), which was established at the design stage. Chemical Substances in Fujitsu and Society Purchased Components primarily for electrical and electronic Over 90% of general purpose and Materials manufacturers. The results of these components (semiconductor devices, measurements for individual resistors, and other individual circuit We check the level of chemical components and materials from components) have already been substances contained in the suppliers are recorded in a Greeen replaced with those containing no components and materials we purchase Information Database (GIDB) and a hazardous substances, although some using standard methods in accordance system has been put into operation by need improved heat-resistance. with the Japan Green Procurement which selections are made taking into Survey Standardization Initiative account environmental considerations Fujitsu and the Environment

Energy- Energy- Energy- saving 3R design saving saving 3R design

Scanner (fi-60F) (PFU) Microprocessor for High- FRAM (MB85R256S) • In low-power mode, uses less than 2.0W, Performance Servers • In comparison with BBSRAM, because a putting it at the top of the scanner category • By adopting the most advanced 90nm battery is not needed for data backup, in the Energy STAR program. CMOS technology, environmentally related electrical power consumption is reduced by • The most compact scanner in the A6 class. performance (comparing the electrical about 20%. energy consumed by the LSI device in • By shrinking the size of the non-volatile high- performing a specified volume of work) has induction memory cell which can read and been improved by over 60%. write quickly, approx. 54% less material is used.

2005 FUJITSU GROUP SUSTAINABILITY REPORT 44 Fujitsu and the Environment — Environmental Performance Environmental Measures for Products

Reducing Energy Consumption Eco-friendly Design Complying with the Law Concerning the Rational Use of Energy We have been implementing our own Our servers, workstations and PCs, environmental assessments for as well as hard disk drives, all surpass products since 1993 and developing the energy consumption criteria specified products that reflect environmental in Japan’s Law Concerning the Rational considerations in such areas as energy- Use of Energy for 2005 by over 500% saving, 3R design,* chemical (AAA level performance). substances, packing materials, and Our PCs, workstations, printers, World’s first combined TV/GPS film-type antenna information disclosure. displays and scanners also meet the Since 1998, to further strengthen standards of the International Energy Recycle Design environmental considerations in product STAR Program, and have reduced the We continually apply environmental development, we established Green power consumed in standby mode. considerations in our product Product Evaluation Standards and development, including indicating the Corporate Governance and Internal Controls positioned the notably eco-friendly Energy-saving PCs materials used in plastic parts, utilizing products that satisfy them as Green When the power is turned on in our recyclable thermoplastic paint, and Products. PCs a linked power socket for the using soy oil-based inks on packing * 3R Design: Prioritizes Reduce/Reuse/Recycle display is also switched on at the same materials. considerations at the design stage. time. During new product development, When the main power switch is disassembly manuals are prepared for Developing Green Products turned off and the PC enters the low- those who will be processing the In fiscal 2004, we combined what had power consumption “suspend” mode, product when its useful life is over. previously been two separate sets of AC power is no longer supplied to the regulations — for product environmental display. This gives superior low-energy Examples of Green Products assessment and for Green Product performance. evaluation — into a single set of standards

Fujitsu and Society with higher levels of consideration for the 3R (Reduce/Reuse/Recycle) Design environment. We call these Product Resource-saving Design Environmental Green Assessment PCs Regulations, and they have helped to both Our notebook computers make strengthen Green Product development effective use of limited resources by using efforts and make them more efficient. recycled plastics and recycled PRIMEPOWER 2500 Also, in carrying out life cycle magnesium alloys. Bio-based materials assessments (LCAs)* for Green Products, are used in the housings of notebook PCs (see P46), in order to comply with industry and LSI device packages. Our approach and other organizations’ environmental to design reduces the amount of labeling standards as well as meet our petrochemical resources used (see P58). customers’ procurement requirements, Our desktop PCs can be opened we reviewed our previous LCA without special tools, and additional regulations, including evaluation stages hard disk and memory can easily be and the units in which environmental exchanged and installed. Printia LASER XL-5900 burden is calculated, revising them and putting them into a database. Car Navigation Systems Fujitsu Ten, Ltd. modified the three- * LCA (life cycle assessment): Quantitative Fujitsu and the Environment environmental burdens are imposed by products dimensional GPS antenna previously and services throughout their life cycles. Here, used in its car navigation systems into a the term life cycle comprises the entire flow from film and combined it with a film-type TV the extraction of natural resources, through the antenna. This simplifies installation and FOMA® F700i production of raw materials, the manufacturing and use of the product, and eventually its reduces the impact on the driver’s field scrapping or recycling. of view while improving the appearance. The fact that size and weight are both Green Product Evaluation Mechanism about one tenth of the previous type also reduces energy requirements. Evaluation based on Product The new antenna was adopted for all STEP1 Environmental Assessment ECLIPSE model audio-visual navigation Regulations systems from July 2004, and steady Total evaluation points: over 90 extension to other products is planned.

Evaluation based on Green STEP2 Product Evaluation Regulations

Product meets all relevant criteria. Green Product

45 2005 FUJITSU GROUP SUSTAINABILITY REPORT Disclosure of Environmental Environmental Labels (Classification based on ISO14020 international standards Information on Products concerning environmental labels) We actively disclose environmental Type I Type III information for our products both via the Environmental details concerning products Product’s quantitative environmental burden approved by a third-party organization upon indicated on the label Internet and in the form of environmental voluntary application by the manufacturer labels. EcoLeaf Environmental Label Eco-mark (Certified by Japan Environmental Disclosure of Environmental (Certified by the Japan Management Association for Information on Products via the Environmental Association) Industry) Internet Since becoming Japan’s first In May 2003, Fujitsu became We disclose information on desktop PC manufacturer to receive Eco-mark Japan’s first notebook PC No. AS-03-001 adherence to Green Procurement laws*1 certification in January 2001, we have manufacturer to receive EcoLeaf environmental in our servers, workstations, PCs, disk acquired certification for printers as well. label certification. drives, displays, printers and scanners http://www.ecomark.jp/english/index.html http://www.jemai.or.jp/english/ecoleaf/index.cfm Corporate Governance and Internal Controls on the Green Procurement Network*2 Type II web pages. Environmental details concerning products 3R Eco-label for PCs meeting independent criteria set by the *1 Green Procurement laws: Japanese laws This label is used for PCs affecting procurement on environmental grounds. manufacturer that meet Japan Electronics *2 Green Procurement Network: This is a and Information Technology nationwide network in Japan encouraging Environmental Emblem Industries Association standards. consumers, enterprises and government to This is our own http://www.jeita.or.jp/english further green procurement. environmental label. It is indicated on Green and Super Green Disclosure of Environmental The International Energy Star Program products for which special consideration has Information via Environmental Labels This logo is displayed for been given to environmental factors. computers (PCs, workstations), We apply environmental labels to our http://www.fujitsu.com/global/about/ displays, printers and scanners products in accordance with ISO14020 environment/policy/emblem_1994.html registered with the program.

(the international standard for http://www.eccj.or.jp/ene-star/index_esu.html Fujitsu and Society environmental labels). There are three Energy-saving Labeling types, as shown on the right. This is indicated on products that meet the Law Concerning the Rational Use of Energy.

Environmental Information Disclosure Based on Life Cycle Assessment (LCA)

LCAs are obligatory for all Fujitsu Notebook PC Eco-efficiency Green Products, and by using a Calculating Eco-efficiency Factors Factor Calculation proprietary database of LCA Eco-efficiency is a breakthrough technique capable of 30 (multiple) standards for each product expressing the environmental burden of products 25 23.9 (denominator) and improvements in services such as Factor category, Green Products can be 20 19.1 evaluated efficiently. We utilize functions and performance (numerator) by means of an Service this LCA activity in calculating new-old ratio. It yields eco-efficiency factors. 15 environmental effectiveness How to calculate eco-efficiency factors: 10 factors, obtaining EcoLeaf Added value of improvements in functions and 5 Environmental 1 performance (new/old ratio) ÷ The product’s burden environmental labels, and 0 0.8 calculating social costs. LCA environmental burden (new/old ratio)

FMV- FMV- Fujitsu and the Environment results have been presented in http://www.fujitsu.com/global/about/environment/activity/ 5120NA/X 718NU4/B academic conferences, and p_factorx.html information from them has been actively used in communicating with our customers. Obtaining EcoLeaf Environmental Labels Fujitsu was the first in the industry to obtain third-party recognition in the form of the EcoLeaf environmental label for its notebook PCs. We went on to obtain it for desktop Fujitsu LCAs PCs, displays and MO drives.

Social Costs of the FMV-830MG Notebook PC Calculating Social Costs 200 (yen) Application of our LIME* approach enables the monetary 150 Our LCA communications activities, cost of a product’s environmental burden throughout its 100 entire life cycle to be readily calculated. including EcoLeaf labeling and 50 disclosure of environmental efficiency * LIME: Life cycle impact assessment method based on 0 factors, received an award at the first endpoint modeling. Method developed for Japanese –50 Forum of the Life Cycle Assessment National LCA Project. Society of Japan. (December 2004) Material Distribution manufacturing Use Product Disposal, manufacturing recycling

2005 FUJITSU GROUP SUSTAINABILITY REPORT 46 Fujitsu and the Environment — Environmental Performance Product Recycling

Advancing collection and materials recovery of end-of-life IT products through establishing and expanding recycling systems in Japan and overseas. Meeting our extended producer responsibility (EPR) to help create a recycling society.

Fujitsu Group Environmental Protection Program (Stage IV) Targets Fiscal 2004 Performance

Overseas • To establish recycling systems in Europe Overseas • Each Fujitsu Group company in Europe has by the end of fiscal 2004, and in North selected a system for recycling (individual America and Asia by the end of fiscal 2006. or collective system) and logistics and Japan • To increase the reuse and recycling rate of recycling partners. Going forward, the collected end-of life products in Japan to companies will monitor and adjust their 90% by the end of fiscal 2006. systems in accordance with regulatory • To increase the utilization rate*1 for developments. recovered waste plastic for the Fujitsu Japan • The resource reuse and recycling rate*2 Group in Japan to 20% by the end of fiscal reached 88.3%, up 1.7 points from the 2006. fiscal 2003 performance. • Separated plastics are recycled into goods for

Corporate Governance and Internal Controls special events.

Overseas Activities Looking the future, we will keep Establishing Recycling abreast of legislative changes as they Systems Overseas occur, and we will be proactive in Overseas, the Fujitsu Group is establishing recycling systems establishing recycling systems, selecting appropriate to the products we sell, the logistics partners to collect end-of-life scale of our business and the nature of products and recycling partners to our sales channels. recycle these products. European Environmental Conference Asia Europe

Fujitsu and Society Group companies in the Republic of Fujitsu Group companies in Europe in the various EU countries in accordance Korea and Taiwan have already begun hold a European Environmental with the Waste Electrical and Electronic the recycling of PCs. In the future, they Conference twice a year. Equipment (WEEE) directive. will expand their recycling systems. In Through this conference, they have the People’s Republic of China as well, made their selection of partners, based North America the demand for recycling of end-of-life on an understanding of the business A Fujitsu Group company in California IT products is increasing, and we will situation of each Group company, the has begun recycling of PC displays develop suitable recycling systems while stances of industry organizations and under the state government-led taking local trends and relevant the timing and contents of national laws recycling scheme. regulations into account.

Activities in Japan

Structure for Product Recovery/ Collection and Recycling Trends in Collection Volume Recycling in Japan Performance and Recycling Rate of Post-use IT Business Products We use our seven recycling centers Due to such factors as the increase in (tons) (%) throughout Japan and a logistics ATM replacements based on the 15,000 100

Fujitsu and the Environment 88.3 network that covers the whole country change to new currency notes in Japan, 85.1 84.1 86.6 to recover and recycle used IT products total collection of used IT products from 75 10,000 from corporate customers. corporate customers came to 14,070 50 We are also intensifying our recovery tons in fiscal 2004. 14,070 12,380 5,000 10,996 12,172 and recycling efforts, having obtained The resource reuse and recycling rate 25 approval from Japan’s Ministry of the rose to 88.3% up 1.7 points from the Environment to operate as a processor previous year’s performance. This was 0 0 of industrial waste for wide-area due to intensified separation of plastic FY2001 FY2002 FY2003 FY2004 recycling. We are recycling used waste and the development of new Collection volume Recycling rate computers from individual customers, uses for recycled material. recovering them through the joint Because of the transfer of *1 Utilization rate: The ratio of the volume of recovered waste plastic material from post- industry recovery system operating in responsibility over recycling schemes use products reused in Fujitsu Group- coordination with the Japanese Postal from local governments to the developed products or fixtures to the total Service. manufacturer, recovery and recycling volume of waste plastic recovered from post- volume for used PCs from individual use products. Note, however, that plastic which contains halogen elements and plastic customers has shown a steady increase which is bonded to metal are not included in to 54,344 tons in fiscal 2004. this calculation. *2 Resource reuse and recycling rate: The ratio of reused parts and reused resources to the processed amount of used goods, based on a computational method produced by the Japan Electronics and Information Technology Industries Association. 47 2005 FUJITSU GROUP SUSTAINABILITY REPORT Promoting the Reuse of Development of Recycling Resources Technology Expanding Our Network of Recycling Centers Material Recycling Technologies for Glass-fiber-reinforced Polycarbonate In February 2005, we established the Fujitsu North Japan Fukushima Together with a glass fiber for material procurement by using the Recycling Center to further improve our manufacturer, Fujitsu Limited and recycled material in creating our recycling system and convenience for Fujitsu Laboratories Ltd. have products. As a result, carbon dioxide our customers. developed a “master batch method”* emissions over the whole product life for recycling the glass-fiber-reinforced cycle are cut by about 20%. polycarbonate used in notebook PC Fujitsu Recycling Center Locations * Master batch method: A method in which housings. The method enables the deterioration of materials is avoided by • Fujitsu North Japan physical state of the material to be adding supplements in with the recycled Sendai Recycling Center retained as a new notebook PC resin flakes from the very start, producing

(Fujitsu Kasei Ltd.) Corporate Governance and Internal Controls housing is manufactured. compounded pellets and blending this in • Fujitsu North Japan with primary materials during casting. Fukushima Recycling We can thus reduce the energy used Center (FIT Frontier)

• Fujitsu Metropolitan Area Sagamihara Recycling Collected Existing Method Center (Fujitsu Kasei Ltd.) housings Deterio- • Fujitsu Metropolitan Area Pulverization Recycled material ration Ayase Recycling Center Recycled Recycled (PFU Life Business) Supplements primary resin flakes materials material

• Fujitsu Chubu Area Remixing/Compound Forming housings Recycling Center (FDK Ecotec) Master batch Dry blending • Fujitsu West Japan Recycling Recycled Recycled resin Supplements Primary Center (Fujitsu Peripherals resin flakes Master batch materials flakes Fujitsu and Society Limited) • Fujitsu Kyushu Recycling Master Batch Method Center (ECHO Electronic Industry Co., Ltd.)

Recycling with Corporate Partners Promoting the Upgrading of Plastic Designing an Electronic Monitoring Recycling of Measurement Separation and Recycling System for Dismantling Procedures Equipment We have upgraded our waste We have developed a web-based Making use of the Fujitsu recycling separation, introducing a special system that provides Fujitsu recycling system, we have worked with Advantest discrimination device in our recycling centers with information about Corporation to recover Advantest centers that can distinguish not only procedures for dismantling of and products (semiconductor testing between qualities of plastic but also disposing of used Fujitsu products in an devices and measurement devices), and whether flame-resistant material is appropriate manner. This system helped to establish an Advantest included or not. provides a manual for dismantling Recycling System that began Separated plastic is also recycled into procedures given in an animated form, operations from August of 2004. goods for special events, like Eco clip together with product recycling cases and fans. information, such as the chemical

Toner Cartridge Recycling substances included, the materials used Fujitsu and the Environment Fujitsu Limited and Fujitsu CoWorCo in plastic parts, and units that still retain Ltd. now recover and recycle used customer data. consumable supplies for all Fujitsu brand laser printers for corporate use. Fortifying Our Measures to Prevent Recovered toner cartridges are first Leakage of Customer Data examined and cleaned, then returned to In order to prevent the leaking of the plants to be made into a recycled customer data from recovered product. products, the Fujitsu recycling system makes use of software and powerful Fan magnets that can delete all data, and specialized equipment that can physically destroy specified components.

Eco clip

2005 FUJITSU GROUP SUSTAINABILITY REPORT 48 Fujitsu and the Environment — Environmental Performance Environmental Solutions

Providing solutions that support customers’ environmental operations and Environmentally Conscious Solutions that can help diminish their environmental burdens through the use of IT

Fujitsu Group Environmental Protection Program (Stage IV) Targets Fiscal 2004 Performance

To provide “Environmentally Conscious Solutions” in We designated 28 products, primarily packaged all areas of our software and services business by solutions, as Environmentally Conscious Solutions. the end of fiscal 2006 in order to help customers These were introduced to 796 corporate customers, reduce their environmental burdens. with a resultant estimated savings of 34,500t-CO2. In addition, we continued to promote the assessment of the impact on environmental burden resulting from individual systems integration projects.

support the formation of a 21st century Environmentally Conscious Solutions An Approach to Global recycling-minded society. Focusing on the benefits that IT offers Environmental Issues that In view of these developments, in reducing environmental burdens, Corporate Governance and Internal Controls Makes Good Use of IT through the hardware, software and IT Fujitsu Laboratories Ltd. has developed The issues facing the global services we provide to our customers, a method to quantitatively evaluate the environment transcend national borders we are contributing to greater efficiencies benefits of adopting IT solutions. This and extend over time to future in their environment-related activities. In method involves evaluating carbon generations. They emerge from the this way, we seek to contribute to dioxide emissions relating to various interaction of many different factors. In society through our business operations. factors that impact the environment, dealing with global environmental issues, such as consumption of materials or the * Ubiquitous Net Japan: An initiative to create a any approach that only deals with a ubiquitous network society in Japan by 2010 movement of people, and thus shows single aspect, whether peoples’ (from the Ministry of Internal Affairs and the benefits in reducing environmental livelihoods, industry, or nature, is Communications’ u-Japan policy) burdens after introducing an IT solution. inadequate. It is essential to approach IT solutions where the concomitant these issues with a multifaceted, Environmental Operations Solutions benefit in reduction of environmental

Fujitsu and Society comprehensive approach. Combining the practical knowledge we burden is calculated to be 15% or The use of IT, a key element of the have developed over the years in greater (in terms of carbon dioxide) are Ubiquitous Net Japan* concept, will be environmental activities with the very latest certified as Environmentally Conscious effective in resolving these issues, since in IT capabilities, we provide Environmental Solutions. such pervasive connections in and of Operations Solutions to support customer We have begun full-scale use of this themselves will bring about reductions in environmental management and certification system from June 2004, the environmental burden by reducing environmental administration in a wide and as of the end of April 2005, 28 of the use of resources and energy. What is range of operational areas, such as our solutions have been certified as more, the use of IT will help in dealing environmental management systems, life Environmentally Conscious Solutions. with complex systems (consisting of vast cycle assessments and support for eco- During fiscal 2004, these volumes of individual data that cannot be friendly design, Green Procurement, Environmentally Conscious Solutions readily extracted) from a composite, monitoring to save energy and resources, helped prevent 34,500t in carbon comprehensive point of view. Truly, IT is waste management, recycling dioxide emissions. the fundamental technology that will management and information disclosure.

Fujitsu and the Environment Provision of IT Solutions and their Impact on Decreasing CO2 Emissions Before/After Introduction of IT Solution Environmental Burden Before introduction After introduction Green Information of IT solution Procurement Eco-design disclosure Outsourcing of IT solution CO2 emissions • Volume of goods volume consumption reduction effect • Volume of people Distributors Suppliers Manufacturers Users transportation & sales • Volume of goods Raw transportation ···CO2 materials reduction Design Manufacture Transport Use Waste • Office space • Warehouse space CO2 Parts CO2 emissions • Waste products emissions produced Energy saving/ Global warming Reducing waste countermeasures/ • Volume of electricity production/ Modal shift consumption by IT/ Monitoring of Eco-packaging network devices chemical substances ···CO2 • Network data increase communication Local government & recyclers volume

Recycling Recovery Note: Stores the per unit carbon dioxide emission Evaluation coefficients for Evaluation paper, fuels, Environmental tool network data effect factor DB (algorithm) Energy savings/ communication Reducing waste production Green Logistics volume and so forth

49 2005 FUJITSU GROUP SUSTAINABILITY REPORT Environmentally Conscious Solutions Applying the Environmental Impact Evaluation Method to a Systems Integration Project Tokyo Stock Exchange’s Timely Disclosure Network (TDnet) System As of April 2003, Tokyo Stock Exchange (TSE) has replaced electronic form using proprietary its Timely Disclosure Network (TDnet) system in order to scanners and uploading this data disseminate corporate information more widely and rapidly. This into the system have become system was introduced to enable listed companies to disclose unnecessary as a result of the their information electronically, based on timely disclosure utilization of electronic data (PDF regulations. Users of the system can release information by documents) and data transfer registering directly with TDnet, from their own offices, the through the Internet. This has material that is to be released. Materials released through TDnet brought a 34.2% decrease in are all saved in PDF format and are generally available for 31 environmental burden. At Fujitsu, we days after their release on the TSE website. With the completion incorporate information on this sort of TDnet, the previous work and movement of people involved of beneficial effect in the system in bringing in materials in paper form, converting the data to proposals we make to customers.

Mr. Mitsuo Miwa, Senior Manager, Corporate Planning Department, Tokyo Stock Exchange, Inc. TSE operates the TDnet system to to visualize more concretely how the TDnet system is disseminate corporate information contributing in the environmental area. The Kyoto Protocol widely and rapidly. In order to further came into effect this year and worldwide interest in reducing increase convenience for listed carbon dioxide is intensifying. We also hope that this awareness companies, we replaced the system will continue and spread. in 2003. Since the delivery and We are aware of the importance of corporate activities that receipt of paper documents consider the natural environment, and we are working hard to decreased substantially with the use make environmental contributions such as cutting our use of Corporate Governance and Internal Controls of IT, we believed this would paper, electricity, gas and water, as well as tree planting at the contribute to the global environment “TSE Forest.” We believe it is also important to build systems to some extent, but we were not aware that our contribution using IT that will contribute to the reduction of environmental could be seen, on a larger scale, as reducing carbon dioxide burdens. We will continue to expand environmental efforts at emissions. By using the “environmental impact evaluation TSE and also hope that activities such as the environmental method” to quantify the benefits of reduction in environmental impact evaluation will spread still further. burden (in terms of carbon dioxide emissions), we are now able

Environmentally Conscious Solutions Environmental Management Utilizing Our ISO Certification Consulting Services and Total Solution Fujitsu and Society The Kyokuyo Group: Establishing Environmental Management Kyokuyo Group, which engages in various business sectors management into practice by such as marine trading, food processing and logistic services, decreasing the group’s has been going through a process of certification under environmental burden, cutting ISO14001, starting with certification of the headquarters costs and improving procedural building in December 2002 and proceeding to an integrated efficiencies. group-wide certification in December 2004. In developing its Since performance data for the Environmental Management System, the Kyokuyo Group made various group locations (which is use of Fujitsu’s ISO14001 certification consulting services. centrally managed using Kyokuyo decided to utilize our total solution, which includes the SLIMOFFICE) can be converted EVERSLIM environmental impact evaluation system, the into environmental indices such as carbon dioxide emissions, SLIMOFFICE environmental performance management system Kyokuyo is now planning to make use of this data as basic and the Internet Navigware e-learning system. Kyokuyo is source material for environmental accounting and environmental working to reinforce its business base and put environmental reports.

Mr. Kiyokazu Fukui, President, Kyokuyo Co., Ltd.

Our company has the certification for the group. On deciding to build an ISO system, we Fujitsu and the Environment responsibility to give all due judged that professional knowledge was needed for this process, consideration to promoting safety and that we wanted to be highly efficient in our management and and peace of mind with regard to running of the system. We therefore opted for a total solution that food in view of our social would begin with the use of consulting services. Improvements to responsibilities as a corporation company management, such as holding no long-term inventories dealing in marine resources. We and increasing our direct shipment ratios, when brought together must also press on with business with an approach that has centralized the building of our activities in which due consideration Environmental Management System, are resulting in lowered is given to their environmental costs in operations. impact. For this reason it is extremely important that we reduce Our company is engaged in a canoe school as well as environmental burdens and help realize the recycling society. “Operation Clean” at Lake Yamanaka, and this enables many Here at Kyokuyo we set our hand to building an ISO14001 people to appreciate the great value of water resources and system as a means of addressing these issues. The process of marine product resources. Looking to the future, Kyokuyo will not obtaining certification generally starts from production plants. be satisfied with merely obtaining integrated environmental ISO However, since our top management at headquarters recognized certification. As we heighten the environmental awareness of each the importance of ISO14001 and thought it would be useful to member of our staff, we will implement environmental efforts to take an active lead, the headquarters building was first to move cover a wider range of initiatives, maintaining an approach to the toward certification, which was later expanded into an integrated environment that seeks sustainable development.

2005 FUJITSU GROUP SUSTAINABILITY REPORT 50 Fujitsu and the Environment — Environmental Performance Global Warming Countermeasures

In order to prevent global warming, we will move forward with energy savings in our plants and offices, cut emissions of greenhouse gases, build efficient logistical networks and provide IT solutions together with products that save or stimulate the saving of energy. We will do this throughout the entire life cycles of our business activities.

Fujitsu Group Environmental Protection Program (Stage IV) Targets Fiscal 2004 Performance

Aim at increasing environmental efficiency • Carbon dioxide emissions due to energy throughout product life cycles. consumption were about 1,281,000 tons, a 20.5% • To reduce carbon dioxide emissions from energy decrease compared to fiscal 2000 levels (an 18.3% consumption down to or below actual emissions in increase if compared to fiscal 1990 levels). fiscal 1990 by the end of fiscal 2010. (15% reduction • Emissions made up of other greenhouse gases from fiscal 2000 levels by end of fiscal 2006.) (PFCs, HFCs, SF6) were about 475,000 tons, an • To reduce greenhouse gases other than carbon 83.2% increase compared to fiscal 1995 levels. dioxide by 10% from actual emission levels in fiscal 1995 by the end of fiscal 2010. • To contribute to the reduction of greenhouse gases by efficient physical distribution, product recycling, Corporate Governance and Internal Controls and development of energy-saving products.

emission of carbon dioxide or other environmental solutions that contribute Our Thinking on Preventing greenhouse gasses at non-Fujitsu to energy savings, we are helping Global Warming facilities in conjunction with distribution customers to save energy and thereby On February 16, 2005 the Kyoto activities, the manufacture of procured contributing to the reduction of Protocol came into effect, and there is components, or in scrapping or greenhouse gas emissions. international insistence on pressing recycling processes. ahead even more vigorously with In addition, by providing products and measures to halt global warming. We in the Fujitsu Group are hard at Scope of Fujitsu’s Global Warming Prevention Efforts

Fujitsu and Society work to prevent warming throughout the life cycles of our business activities. We All spheres of business (life cycle) have established a fiscal 2010 target for reducing the direct emission of Reduction of direct emissions Reduction of indirect emissions Reduction of indirect emissions greenhouse gases from energy (Factories/offices) (Business partners/consignment partners) (Customers) consumed in our plants and offices, or gases used in manufacturing, in Greenhouse conformity with agreements made Software Energy gases Distribution Materials Waste/ Product and within the industry in Japan. CO2 other than transportation procurement recycling energy saving services We have also begun activities to CO2 diminish indirect emissions, such as

Decreasing Carbon Dioxide Carbon Dioxide Emissions Related to Energy Consumption (Group Totals) Emissions Related to Energy (figures in brackets are emissions for Japan only)

Consumption (1,000 tons) Fiscal 2004 carbon dioxide emission 2,000 from the consumption of energy came Reference level Fujitsu and the Environment to a Group-wide total of 1,281,000 1,500 tons-CO2 (1,097,000 tons within Japan, Target: 621,000 tons for Fujitsu Limited alone), 1,000 15% 1,611 1,590 1,538 decrease Target: which was down 20.5% from fiscal (1,366) (1,354) (1,367) 1,287 1,281 1,369 Below the 500 1,083 (1,126) (1,097) 1,083 2000 but 18.3% higher than in fiscal (1,035) level of 1990. FY1990 0 In fiscal 2004, we made cuts of FY1990 FY2000 FY2001 FY2002 FY2003* FY2004 FY2006 FY2010 27,000 tons-CO2 using the following (target) (target) energy-saving measures. However, due Note: We have reviewed and changed the performance figure announced for fiscal 2003. to a number of factors that caused changes in emissions, such as the cooling, inverters, energy-saving facilities) Change in Carbon Dioxide Emissions establishment of new plants, increased • Increased efficiencies through revised Related to Energy Consumption production and restructuring of manufacturing processes, businesses, net carbon dioxide accompanied by proper motive power (1,000 tons) Major reasons for changes 1,290 emissions declined by 6,400 tons-CO2 facility operation and improvement of New plants & increased production compared to the previous year. management 1,287 –6 1,280 +78 Others • Proper settings for office air- 1,281 +13 Major Energy-saving Measures conditioning, energy saved with 1,270 –27 Decreases –70 • Energy-saving measures for lighting and office automation equipment 1,260 due to energy Business equipment with a focus on motive • Energy-savings consciousness FY2003 FY2004 savings restructuring power facilities (introduction of free applied in newly built plants (see P56)

51 2005 FUJITSU GROUP SUSTAINABILITY REPORT Example Cuts in Carbon Dioxide Procurement and Emissions in the Distribution Waste & Recycling Introducing Natural Gas Process Issues Cogeneration As a manufacturer that must Through the development and use of The Fujitsu Numazu Plant is involved in transport its products, we, and others materials and technologies with a lower testing large-scale computers and charged with transporting our goods, environmental burden, reductions in providing quality assurance, and it are reducing carbon dioxide emissions plant waste products and improvements consumes a large amount of electric in the distribution process (these are in resource re-use ratios for recovered power. Thus, the plant was designated known as “Green Logistics” activities). used products, we have reduced carbon as a business entitled to receive support dioxide emmissions in procurement, in installing new energy capabilities, Various Measures for Achieving waste and recycling activities. through financial assistance from the Reductions in Carbon Dioxide Ministry of Economy, Trade and Industry (Agency for Natural Resources (1) rationalization of packing methods Example and Energy), and it introduced highly for goods efficient natural gas cogeneration at the (2) reviewing transport routes Development of a Fluxless Corporate Governance and Internal Controls end of fiscal 2004. This system can (3) reviewing shipping centers Reflow Device produce in-house about 65% of the Also items like reviewing the packaging Together with Ayumi Industry Co., electric power used by the whole plant used in order to improve loading ratios. Ltd., we have developed a fluxless using gas engines reflow device to remove surface (one 4,450 kW Carbon Dioxide Emissions in the oxidized film from, and reshape the installation, two Distribution Process (Japan only) bumps for, solder bump electrodes. 845 kW FY2003 FY2004 Through the utilization of this device, installations). Also, CO2 emissions (tons) 27,851 27,364 the whole flux cleaning procedure since exhaust Ratio of carbon dioxide using organic fluxing materials that steam and hot Gas engine power facilities emissions to net sales 1.35 1.31 (tons-CO2/100 million yen) was necessary in the previous process water is then used as a means for is no longer required. The plan is to heating, the efficiency of energy usage cut carbon dioxide emissions by is further improved. Example about 68%, including material Fujitsu and Society Transport Optimization System procurement and fluting material waste Cutting Emissions of (presuming that organic fluxing materials Greenhouse Gases other We are accelerating our modal shift for would be incinerated after use). than Carbon Dioxide shipping PCs to corporate clients. In October 2004 we introduced a system The semiconductor industry has that selects the optimal transport Environmental Engagement established a voluntary action plan to method in view of cost, environmental in Products and Software & cut the emissions of PFCs, HFCs and burden and delivery schedule. Services SF6, which are all greenhouse gases. By providing our customers with Our Electronic Devices Group will Modal Shift Ratio and CO2 environmental solutions and products continue to change over to gases with Reduction Benefits designed to save energy, we will reduce lower global warming potential as well (%) (tons) 20 16.8 200 carbon dioxide that is produced when as install equipment to eliminate PFCs 13.1 13.3 11.2 9.8 10 8.7 100 our products are used. on our new manufacturing lines. 187.5 114.8 Fiscal 2004 emissions of these types 83.4 82.0 0 49.5 65.4 0 Energy-saving Designs for Our Products of gases came to 475,000 tons (up Oct. Nov. Dec. Jan. Feb. Mar. We are working to improve the energy- 1.4% over the previous year, due to Decrease in carbon Modal shift ratio saving performance of our products factors like increased production). When dioxide emissions through the development of Super Green compared with fiscal 1995, which is the Fujitsu and the Environment Products and Green Products. Based on reference level for our reduction target, Modal Shift for Overseas Shipments this, we have been able to attain various this is an 83.2% increase. From June 2004, we have expanded energy-savings standards and target our modal shift from airplanes to ships levels, which will reduce the power Emissions of Greenhouse Gases in the importation of parts into Japan consumed when our products are used. other than Carbon Dioxide from Hong Kong. (see from P43.) (total for electronic devices) (1,000 tons) Modal Shift Ratio and CO2 Providing Environmental Solutions 600 Reduction Benefits We compute the reduction in carbon Reference (%) (tons) level 90 3,000 dioxide emissions that would result from 450 78.6 69.0 75.4 introducing an IT solution, and inform Target: 60 56.6 2,000 49.6 customers of this as part of our solution 10% 41.4 300 decrease 35.7 32.8 2,085.3 38.1 2,762.2 offering. Also, we certify those IT solutions 577 544 564 30 1,642.9 2,082.9 1,000 1,172.2 where carbon dioxide emissions can be 993.6 1,175.4 468 475 897.8 1,111.3 150 0 0 cut by 15% or greater as Environmentally 259 233 Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Conscious Solutions and provide Modal shift ratio Decrease in carbon certification to our customers. (see from 0 dioxide emissions FY FY FY FY FY* FY FY Modal shift ratio = weight transported by sea (t) / total weight P49.) 1995 2000 2001 2002 2003 2004 2010 transported (t) (target) Decrease in carbon dioxide (t) = weight transported by sea (t) × Note: We have reviewed and changed the distance transported (km) × difference per unit of carbon performance figure announced for fiscal 2003. dioxide due to transport method (t-CO2/ton·km)

2005 FUJITSU GROUP SUSTAINABILITY REPORT 52 Fujitsu and the Environment — Environmental Performance Promotion of Green Factories

Eco-friendly manufacturing in factories with comprehensive environmental protection features and activities

The Green Factory Concept The Green Factory Concept (eco-friendly factories) To reduce the environmental burden Aims Approaches Environmental Protection Themes imposed by the use of raw material and Energy and Chemical materials Waste Others energy resources in our factories and substances business activities, we are pursuing savings policies designed to reduce the use of • Energy-saving • Reducing • Reducing the • Compliance production use of amount of with eco- energy and materials and the volume of Reducing the equipment chemicals material input laws eco-burdens of • Reducing • Reducing • In-house waste generation and chemical water risks training emissions. Green Process activities and manufacturing consumption

burdens processes Green Facility activities are the practical Green Process Activities (process divisions) means by which we implement these Reduce eco- policies. • Energy-saving • Reducing use • Reducing the • Compliance facilities of chemicals volume of with eco- in processing waste materials laws

Corporate Governance and Internal Controls • Reducing and Green Process Activities Reducing the diagnosing effluent water generated and • In-house and gas processed eco-burdens water training Green Process activities are intended consumption • Reducing • Improving the • Green of our plants risks recycling ratio activities to reduce manufacturing costs and, and buildings Green Facility Activities after calculating a “Cost Green” (CG)* (facility management general affairs divisions) index for each product line (based on Reduce costs the amount of materials it requires, the volume of chemical substances it uses, and the energy it consumes, etc.), to On-site Disaster-prevention lower these indices and the Green Process Activities Inspections corresponding environmental burdens Complete Replacement and We predict the effects of natural continually. Non-use of Perfluoroethane disasters such as earthquakes and The CG index is used to assign Reduces CG Index by 91.8% typhoons upon production facilities and the

Fujitsu and Society priorities for Green Process activitites potential for leakage of harmful substances within the Group and to set quantitative (Fujitsu Isotec) beyond the targets, devising and implementing Fujitsu Isotec is a major producer of factory site, and plans to reduce eco-burdens and costs. PCs, IA servers, PC workstations we regularly If a target is not achieved, the reasons and printers. As part of its Green carry out are thoroughly analyzed, and the results Process activities, it took up the inspections to fully embodied in subsequent targets. challenge of finding a replacement guard against * CG index: The product of input volume used for perfluoroethane, a substance that such per product, the cost, and the environmental environmental causes global warming, carefully Inspecting chemical tank impact (on a scale from 1 to 10). reviewing its use in cleaning print risks. protection (protecting heads. This led to adopting tertiary against leakage) Green Facility Activities hydrocarbons for the drying process Green Facility activities are focused that follows the print-head washing Items Covered on stabilizing factory operation and process. • Replacement of chemical storage reducing the enviromental burden, By adopting this new drying tanks (before they become too old) ensuring complete compliance with process, the company was able to • The double wall of liquid effluent tanks environmental legislation, predicting completely dispense with the use of (as a backup to prevent leakage) environmental risks, saving energy, perchloroethane (100% reduction) • Confirmation of proper inspection Fujitsu and the Environment water, chemicals and other material and reduce the unit washing cost. procedures for leak detectors and resources, and improving the This, along with recycling the used level alarms production infrastructure (including washing liquid, helped to reduce the • Organizational and procedural production equipment). CG index by 91.8%, and washing measures to deal with emergencies In the support departments, regularly costs were cut by 83.7%. when they arise (simulating various established objectives lead to activities scenarios), etc. to reduce the eco-burden by saving energy and particularly by reducing Coping with Environmental Risks CO2, the results of these activities are To guard against risks, and to prevent evaluated, and further improvement damage to the environment should an measures proposed in a repeated accident happen, environmental risk PDCA cycle (Plan, Do, Check, Act). management, including risk assessments, is carried out in accordance with the applicable controls (see P14).

53 2005 FUJITSU GROUP SUSTAINABILITY REPORT Fujitsu Group Environmental Protection Program (Stage IV) Target Fiscal 2004 Performance

To reduce, by the end of fiscal 2006, the discharge Emissions of specified chemical substances were of chemical substances that are subject to the 52.1 tons, a decline of 48.1% compared with fiscal Pollutant Release and Transfer Register (PRTR) by 2001. 15% compared to the fiscal 2001 discharge levels.

Reducing the Amount of PRTR Law Chemical Discharge Proportions of Chemicals Discharged Chemicals Discharged Amounts Corporate Governance and Internal Controls Discharge Reduction Policy Fluorinated hydrocarbons (tons) and their soluble chlorides 57.1% At sites where large amounts of 120 chemical substances are handled — 100.4 reference level 100 Others 11.6% Fujitsu’s four factories and six Target: 15% reduction consolidated manufacturing subsidiaries Toluenes 6.6% 80 74.8 in Japan plus two consolidated 68.3 66.8 manufacturing subsidiaries overseas — 60 we are working to achieve planned 44.1 35.4 52.1 85.3 reductions of in 354 Class 1 PRTR Law 40 21.7 substances. 20 In order to achieve the targets at each 33.6 30.7 32.9 30.4 of these locations, working groups meet 0 twice a year to check the actual situation FY FY FY FY FY Fujitsu and Society and investigate any problems. To 2001 2002 2003 2004 2006 (target) Xylenes 10.1% reduce the amount of these chemicals, Group companies Fujitsu Group we are carefully managing facilities (Japanese, overseas) Environmental Boron and its processing effluent gases and liquids Protection Program compounds 14.6% Fujitsu Limited (Stage IV) and Green Process activities are used to properly manage the use of these substances and reduce the volume discharged. Main Factors in the Fiscal 2004 Decrease Fiscal 2004 Performance • The decrease from deconsolidation of Integrated Control of Of the 85.3-ton target for the amount two companies, FDK Corp. and Information on Chemicals of PRTR Law chemicals to be Eudyna Devices Inc. Fujitsu Limited introduced a system to discharged annually (for fiscal 2004 • Improved fluorination in wastewater control the usage of chemicals in fiscal through 2006), 33.2 tons were treatment at the Mie Plant. 2000, and has been performing eliminated in fiscal 2004 as a result of • Changes in the manufacturing integrated management of them ever the deconsolidation of two major process that reduced the amount of since. We are now enhancing the companies, a review of production xylenes discharged at the Mie Plant. system’s functions so that operation activities, the transfer of production, and * Calculation of the Group’s total chemical can be extended to the Group’s Fujitsu and the Environment activities at each of the sites. The total discharge amounts: Values are calculated by manufacturing subsidiaries. amount of such chemicals discharged* multiplying the total volume of effluent (nickel, by the entire Group in fiscal 2004 was manganese and other chemical compounds) or atmospheric emissions (xylenes, toluenes, 52.1 tons, 48.3 tons (48.2%) less than and other chemicals) by the relevant substance the 100.4 tons in fiscal 2001. Fujitsu concentrations measured at the points of Limited itself discharged 30.4 tons, discharge from the site. Values for xylenes, which is 9.5% less than in fiscal 2001. toluenes and other chemicals may also be based on the amounts purchased and used. Besides complying with the PRTR Numerical values in the text and graphs have Law requirements for reporting to the been rounded to the second decimal place. authorities data on any of 354 Class 1- Totals have also been slightly adjusted for designated chemicals with annual consistency. usage/processing amounts of one ton or more, we compile data on these substances based on a 0.1-ton minimum.The total usage and discharge of PRTR Law chemicals is displayed on our website. http://www.fujitsu.com/about/environment/

2005 FUJITSU GROUP SUSTAINABILITY REPORT 54 Fujitsu and the Environment — Environmental Performance Promotion of Green Factories

Fujitsu Group Environmental Protection Program (Stage IV) Target Fiscal 2004 Performance

To reduce the amount of waste generation by 3% The amount of waste generated was 50,120 tons, a compared to the actual amount in fiscal 2003 by the decline of 1.5% compared with fiscal 2003. end of fiscal 2006.

information sharing and the rigorous • Plastic wastes: As a raw material for Reducing the Amount of separation and re-use of wastes, many plastic or solid fuel. Waste Generated* sites and Group companies have • Acid and alkali wastes: As neutralizers. Corporate Governance and Internal Controls Policy for Reduction of Waste already achieved zero emissions. • Oily wastes: As recycled oil in Generated by Sites However, in regions with particularly combustion improvers. In working towards a recycling strict regulation of water-quality • Waste paper: As recycled paper, society, we have adopted a basic 3R standards or where there are structural thermal recycling. policy (Reduce, Reuse and Recycle), issues with the sewage treatment • Metallic wastes: As raw materials for and are encouraging all employees to equipment, some sites have not yet smelting. separate wastes into different achieved zero emissions. • Animal and vegetable wastes categories. Going forward, we will investigate (canteen leavings): As fertilizer. new technologies, and strive to further * Waste generation reduction * Zero waste emissions Definition: Reduction of waste generated by sites reduce the generation of waste and Definition: Achieving 100% waste utilization, Targeted waste: All (excluding those with achieve zero emissions. with none going to landfills or simple monetary value) The most effective methods of re-using incineration. Targeted waste: Sludge, acids and alkalis,

Fujitsu and Society wastes are as follows. plastics, oil, metals, glass, wood, paper, animal Fiscal 2004 Performance • Sludge: As a raw material for cement, and vegetable wastes (canteen leavings), The amount of waste generated by copper recovery. sewage. our sites in fiscal 2004 was 50,120 tons, 1.5% less than in fiscal 2003. An Example from Fiscal 2004 Activities to reduce the amount of waste generated are proceeding smoothly. Working to Reduce Fluorinated Sludge (Iwate Plant) The main factors in the reduction were At our Iwate Plant, 54% of wastes is the facilities have been replaced with the improvements in the separation of wastewater. In order to reduce the others that extract the Ca and Al from paper and metallic waste that allowed amount of sludge containing fluorine the returned sludge. In this way, the monetary value to be assigned to them, generated in water treatment, previously sulfuric acid band required in the holding as well as application of value to organic the sludge returned from the milk-of-lime tanks is reduced, and the water content alkalis. settling tanks was injected into separate of the sludge is reduced from 72% to reaction tanks, but now the sludge is 57% and its volume reduced. Amounts of Waste Generated mixed into a sludge reaction tank and

(tons) 51,500 Flow Chart for Sludge Reduction 51,000 reference level New facilities 50,873 (including sludge reaction tank) Fujitsu and the Environment 50,500 Existing facilities Outline of sludge Factory water 50,000 50,120 Target: 3% reduction reduction for cleaning 49,500 Returning Re-use of Ca and sludge Al in returned sludge 49,000 48,500 Sludge Industrial Milk of lime (in) reaction cleaning water Reduction in 48,000 sulfuric acid band FY2003FY2004 FY2006 tank Mixing with milk of in holding tank (target) lime and returned sludge Waste water Sulfuric acid band Organic Reduction in sludge coagulant water content from 72% to 57% Progress towards Zero Waste Sulfuric acid Emissions* at Group PH Reduction in Companies in Japan Reaction Holding adjustment Coagulation tank tank tank volume of sludge We are actively promoting zero tank emissions, focusing first at our domestic Group companies. For example, we have introduced systems for treating sewage using microorganisms and revised operational control methods aimed at reducing sewage emissions to zero. Thanks to these efforts along with

55 2005 FUJITSU GROUP SUSTAINABILITY REPORT TOPICS Operations begun at our next-generation LSI device Green Factory using the latest eco-friendly equipment — Environmental measures adopted for new facility at Mie Plant In April 2005, at the 307,000m2 site of the Mie Plant (in Kuwana City, Mie Prefecture), a new facility was completed for the mass production of LSI logic devices on large- diameter 300mm wafers using 90nm and next-generation 65nm design rules. The new factory, with 12,000m2 of clean room area, is our latest Green Factory, actively committed to Corporate Governance and Internal Controls preventing global warming, reducing the discharge of waste and chemical substances, and reducing a wide variety of environmental burdens.

The new wing of the Mie Plant

Environmental Measures Aseismic Measures To Prevent Global Warming To Reduce Waste Discharge The World’s First Hybrid • Eliminated use of fuel oil • Zero emissions from the start Seismic Isolation Structure There are no boilers using fuel oil. of operations In addition to the measures to They have been replaced with Spent hydrofluoric and sulfuric reduce environmental burdens, Fujitsu and Society small boilers using natural gas. acid are recovered and recycled. measures have also been taken to • Equipment installed to remove • Reducing the amount of waste cope with earthquakes. The new PFCs generated facility uses three types of devices This reduces the emission of Equipment to compact alkali has to isolate the building from substances other than CO2 been introduced. earthquake tremors: rubber implicated in global warming. laminations, oil dampers, and • NAS battery system sliding supports. These suppress We are using NAS (sodium-sulfur) normal vibrations and protect the batteries to store electrical energy production lines against earthquake for nighttime use and to smooth the tremors rated up to 6 (strong) on power load. the Japanese scale. • Localized clean rooms The risks of earthquake-induced These help to reduce air- environmental pollution and other conditioning energy requirements. human disasters have likewise Alkali compaction • Solar cells and wind-power equipment been minimized. generators

These are used for car park lighting. Fujitsu and the Environment To Reduce Chemical Discharge • Reductions in the volumes of nitrogen and phosphorous discharged Introduced method using Small boilers NAS batteries microorganisms for wastewater burning natural gas treatment. Seismic isolation Seismic isolation • Reductions in device (rubber device (rigid slider the volume of laminate support) support) fluorine discharged

PFC removal Solar and wind Secondary process equipment generators device for fluorine Seismic isolation device (oil damper)

2005 FUJITSU GROUP SUSTAINABILITY REPORT 56 Fujitsu and the Environment — Environmental Performance Green Procurement

Based on the Fujitsu Group Green Procurement Direction, we are expanding the scope of Green Procurement to cover all procurement. With the cooperation of our suppliers in Japan and overseas, we will pursue further improvements in this area.

Fujitsu Group Environmental Protection Program (Stage IV) Target Fiscal 2004 Performance

To increase the procurement ratio from suppliers The percentage of our procurement from business who have implemented an environmental partners have implemented an EMS as a share of all management system (EMS) to 100% by the end of procured items (parts used in products, materials, fiscal 2006. software, general equipment, construction, maintenance, etc.) reached 98.3%.

expansion in scope of our suppliers, we Fujitsu Limited and various Group Framework for Green have added a new Level I. We now companies in Japan (30 from the Procurement require that our suppliers fit into one of hardware area and 48 from the With cooperation from our suppliers, three levels*. solutions area, for a total of 78) held Corporate Governance and Internal Controls we have expanded the scope of Green meetings throughout Japan to explain * Three levels Procurement from parts used in Level III: Have obtained third-party certification Green Procurement to our suppliers. In production to software and services. such as ISO14001 addition to investigation using In accordance with our Green Level ll: Have obtained Fujitsu’s simplified environmental response surveys, we Procurement Direction, we request that EMS (FJEMS) have been supporting our suppliers in Level I: Self-checking and establishment of our suppliers build environmental objectives regarding environmental protection their EMS construction efforts. Looking management systems and terminate activities to the future, we plan to forge ahead in their use of designated hazardous helping suppliers improve their EMS substances, and we carry out surveys Total Elimination of Fujitsu Group- quality, and we intend to include the and other measures to check on what designated Hazardous Substances suppliers of our overseas Group has been done. For those suppliers who In response to the directives from EU companies in the scope of our Green do not meet the required standards, our (European Union) member nations Procurement activities. In addition, from

Fujitsu and Society purchasing unit and other divisions restricting the use of hazardous fiscal 2005 we plan to regularly conduct within the Group will support these substances (the RoHS directives) that presentations on EMS improvement and companies in constructing, operating were issued in February 2003, we to carry out local audits based on and deploying environmental revised our Green Procurement sampling results. management systems that utilize the Standards (now in their third edition), PDCA cycle. and clearly specified the definitions of Fiscal 2004 Activities http://www.fujitsu.com/global/about/ hazardous substance content. Based on Exhibition of RoHS- procurement/green/ this, we have conducted a total of 14 compliant Parts explanatory meetings for our suppliers, Main Requirements for Green and we are accelerating our efforts to In October 2004 we held an RoHS- Procurement eliminate all hazardous substances from compliant parts exhibition at our We require that the following our procured materials. Kawasaki research and manufacturing conditions be met by suppliers in order facilities, together with a seminar, to satisfy our Green Procurement directed at R&D and design divisions standards. Fiscal 2004 Performance as well as environmental and purchasing divisions. Building an EMS Thanks to the cooperation of our In cooperation with 13 companies (in In building an EMS, as a rule we suppliers, the actual percentage of semiconductors & electronic parts, Fujitsu and the Environment require some form of third-party Green Procurement for fiscal 2004 power units and mechanical process certification such as the ISO14001 reached 98.3% in only the first year of goods) actually involved in international standard, but with the our three-year plan. environmental activities, we displayed a variety of parts that meet RoHS Framework for Green Procurement requirements. At the same time, Demand for Green Procurement examples of particularly advanced • Building of Environmental RoHS-based efforts were also Management System presented using a seminar format. Fujitsu Group • Total elimination of designated Suppliers The total number of participants hazardous substances • Building of exceeded 700, and we were able to Procurement Investigations through such means Environmental divisions as environmental response survey Management share information Report on accomplishments Systems & that will be continuous significant in Environmental divisions improvements future product System technology • Complete development elimination of development. Fujitsu Group Green Procurement Direction divisions, etc. • Supporting the building of Environmental Management designated At the RoHS Exhibition Systems hazardous Group companies • Moving toward total phase-out substances of hazardous substances Entrenchment of supply chain-aware Green Procurement activities

57 2005 FUJITSU GROUP SUSTAINABILITY REPORT Fujitsu and the Environment — Environmental Performance Research and Development

We are advancing a wide range of environment-related R&D, including technologies to reduce the environmental burden of product manufacturing, environmentally friendly products, and ubiquitous networking solutions.

Recently, the broad scope of these Some Important R&D Successes Fujitsu Laboratories’ R&D efforts has included technologies • Concentrated fuel for the long-term Involvement that reduce the environmental burden operation of micro fuel cells Fujitsu Laboratories Ltd. is fully aware imposed when products are • Development of bio-based plastics of the essential need to pursue research manufactured, technologies that • Development of a photocatalyst, and development efforts on address environmental issues when titanium apatite technologies that meet environmental customers use our products, and a • Technology for recycling magnesium alloys needs. This ongoing commitment dates variety of technological solutions that • Technology for recycling of glass-fiber from the company’s foundation, and will support environmental reinforced polycarbonate (see P48) advanced research into environmental considerations in the era of ubiquitous • Technology for evaluating themes is proceeding. networking. environmental burden Some Examples of Recent Research Achievements TOPICS Corporate Governance and Internal Controls Development of High-capacity Large, Bio-based Plastic Development of Titanium Micro Fuel Cells Applicable to Housing for Notebook PCs Apatite Photocatalyst Concentrated Methanol Solutions Fujitsu’s FMV-BIBLO NB80K Photocatalysts use the clean energy Micro fuel cells are similar to batteries notebook PC, a new model of light to break down organic in terms of energy transformation, but announced in spring 2005 was the substances (including dirt, odors and they utilize externally supplied fuel, and first in the world to use microorganisms) into water and CO2. hence electrical recharging is environmentally friendly bio-based Fujitsu Laboratories Ltd., working with unnecessary. They have attracted plastic for its housing. the University of Tokyo’s Research much attention as a portable energy The new material was jointly Center for Advanced Science source due to advantages that include: developed by Fujitsu Limited, Fujitsu Technology, has developed a titanium high energy density compared to Laboratories Ltd. and Toray apatite photocatalyst that is twice as

conventional lithium ion batteries, cheap Industries, Inc. The bio-based content active as previous titanium oxide Fujitsu and Society and easy means to generate electricity is about 50% (polylactic acid primarily catalysts in decomposing these continuously by simple refueling from corn starch), which reduces the substances. anywhere and anytime, especially when usage of petrochemical resources. The new catalyst combines there is no accessible power line, and When used for the notebook PC adsorptive and antibacterial properties lower environmental impact compared housing, it results in 15% less CO2 with its ability to decompose organic to conventional fossil fuels and primary emissions than conventional substances, and because it is made batteries. petrochemical plastics. from hydroxy-apatite (calcium Fujitsu Laboratories has successfully We were also the first to introduce phosphide), a natural constituent of developed materials technology to the use of bio-based plastics for some human teeth and bone, it is harmless realize low methanol crossover (MCO) of the embossed tape used in to people and the environment. Membrane Electrode Assembly (MEA) packing materials for LSI devices, and Experiments have established that it for micro fuel cells. This enables the from February 2005, the changeover can also be successfully blended with direct use of 30% methanol in passive to bio-based plastics for this plastics to create plastics that fuel cell systems, providing higher power application is complete. possess photochemical catalytic capacity. Fujitsu has developed properties. We are committed to prototype micro fuel cell modules for expanding the range of applications of mobile phones and notebook PCs by this new catalyst, applying it to the applying this technology. housings of various kinds of IT Fujitsu and the Environment LCA studies shown that micro fuel equipment. cells generate only one third the CO2 of conventional dry cells. Considering the possibility that methanol can be derived from biomass materials, we will further improve our micro fuel cell system to spread its commercialization and The FMV-BIBLO NB80K PC application in environmentally friendly electronic products.

A prototype PC using plastic with a photocatalyst additive

Prototype PC Prototype mobile phone fuel fuel cell cell (developed in cooperation with NTT DoCoMo)

2005 FUJITSU GROUP SUSTAINABILITY REPORT 58 Fujitsu and the Environment — Environmental Performance Environmental Education & Awareness

Raising the environmental awareness of each and every employee through training and education as the basis for full participation in environmental activities

greater environmental awareness and Environmental Business eco-friendly practices among all our Efforts by Group Companies Workshops for Sales/System employees. Engineering Staff Content derived from these simple Efforts by Business Offices We began environmental education hints, such as how to put office The Fujitsu Aizu Wakamatsu Plant held for sales personnel and systems automation equipment on energy- environmental seminars in August 2004 engineers in fiscal 2004. For sales saving settings, is also being used in our and March 2005, inviting staff from the personnel, we presented various forms environmental education programs. Fukushima Prefecture Life Environment of environmental activities with Department and Tohoku Energy Service examples of sales presentations, and Co., Inc. as lecturers. Those in attendance our lineup of offerings, which includes learned what Fukushima is doing about Green Products, environmental global warming, business solutions and Environmentally and heard about Conscious Solutions. For systems NAS batteries, the engineers we provided instruction in the Energy Corporate Governance and Internal Controls form of case studies regarding Conservation Law Environment education via Environmentally Conscious Solutions. intranet and the Energy We held a Service Co. total of 20 business. Environmental seminar at such Environmental Contribution the Aizu Wakamatsu Plant workshops, Awards/Contests with In order to heighten employees’ Efforts by Group Companies in Japan participation environmental awareness, we have been In October and November of 2004, by 1,056 presenting Environmental Contribution the Fujitsu Institute of Management Ltd. people. Workshop for systems Awards and holding related contests carried out 11 site visits for Group engineers (photo category & volunteer category) on employees at the Numazu Plant, which an ongoing basis. From fiscal 2002, the is set in a rich natural environment.

Fujitsu and Society awarding of the Environmental Participants were able to view a pond Educational Activities during Contribution Grand Prize has been biotope where effective use was made “Environment Month” positioned as a key Fujitsu event, with of sludge from the plant, as well as a Fujitsu has held a number of the president himself presenting the garden and a system to convert raw environmental activities in Japan in award. The award is made in June, when garbage and septic tank sludge into conjunction with “Environment Month” we commemorate Fujitsu’s foundation. fertilizer. (June) sponsored by the Ministry of the Environment. In addition to the usual annual events such as releasing dragonfly nymphs, planting flowers, facility inspection tours and hands-on experience tours, in fiscal 2004 we added some new events: “Sustainability Report Briefing” and “Environmental Storytelling.” For fiscal 2005, educational events are planned for sales personnel and systems engineers. A site visit at the Numazu Plant Fujitsu and the Environment Efforts by Overseas Group Companies Fujitsu Telecommunications Europe Ltd. in the United Kingdom is carrying Environmental Photo Contest Grand Prize: out environmental education as part of “Hacking Weeds for the First Time” its introductory instruction for new staff members. Five such sessions were held in fiscal 2004 at which 15 staffers received instruction. FUJITSU Eco Club

The FUJITSU Eco Club, hosted on Environmental Storytelling the intranet, enables employees to get a picture of the environmental volunteer activities of their The Paper/Waste/Power colleagues and Campaign exchange We are using our intranet to publicize information. hints on environmentally friendly practices for paper, waste and electric power use at the office, to encourage FUJITSU Eco Club Materials used for environmental education of new staff members 59 2005 FUJITSU GROUP SUSTAINABILITY REPORT Fujitsu and the Environment — Environmental Performance Environmental Communication

Improving our daily environmental efforts through two-way communication with stakeholders

Environmental Advertising Issuing Reports & Pamphlets Environmental Forums (Japan) throughout Japan Sustainability Reports We present We have held a number of In order to fulfill our duty to disclose our Environmental Forums throughout corporate information and explain it to environmental Japan in order to present to our our stakeholders, we publish this activities in customers in a readily comprehensible Sustainability Report. We have been newspaper and way the Group’s efforts regarding the issuing this report annually since 1996; magazine environment and our Green Products and from fiscal 2003 it has covered advertisements and Environmentally Conscious three vantage points: economic, as well as TV Solutions. In these Environmental environmental and social. commercials Forums, we have called upon various The 2004 Fujitsu Group Sustainability and on the experts as lecturers and had them Report received an Award for Fujitsu website. present themes such as “IT and the Excellence in the Eighth Green Environment” and “The Environment Corporate Governance and Internal Controls Reporting & Sustainability Reporting Newspaper advertisement and Management.” Awards (Sponsor: Toyo Keizai Inc. and the Green Reporting Forum). Forums Were Held in the Following We will continue to improve the Environmental Emblem Areas in Fiscal 2004: content of our reports and expand on Tokyo, Kansai, Tokai, Chugoku, Nagano, reported items based on what our We combined the infinity symbol used Shikoku, Tohoku, Hokkaido, Hokuriku. stakeholders have to say. in our corporate logo with images of the earth and a pair of watchful eyes and Note: Tabulated results from the questionnaire Participation in Environmental on the fiscal 2004 report are listed on the established this as our environmental appended questionnaire page. emblem. The emblem indicates that we Exhibitions will carry out our business while keeping Fujitsu is an active participant in a protective eye on the Earth. This mark exhibitions held around the country on

Environmental Pamphlet is applied to environmental themes. In addition to Fujitsu and Society We have issued a pamphlet entitled products and delivering environmental information to a “We make every activity green,” which solutions that wide range of customers, we interact introduces our environmental activities. reach certain with people in these regions concerning The expressions used internally set We care for the Earth. the environment. At the Aichi, Japan in the pamphlet have standards. Environmental emblem 2005 World been kept as simple Exposition (EXPO and easy to 2005) which began understand as Sustainability Report in March 2005, we possible to ensure the Briefing cooperated in the understanding of a On June 2004, we held a “NGO Global wide range of Sustainablity Report Briefing for Village,” which stakeholders. employees. Those responsible for included an Environmental environmental activities in the various exhibition booth and pamphlet Group companies came together and presented activities there was a lively exchange of opinions that aim for a Aichi, Japan 2005 World on our environmental activities. sustainable society. Information Disclosure Using Exposition (EXPO 2005)

the Website and Other Means Major Exhibitions in which Fujitsu Fujitsu and the Environment Our website is a useful medium for Participated during Fiscal 2004 communication, where we can transmit • New Environmental Exposition 2004 various forms of performance data • Shinshu Environment Fair 2004 related to environmental activities and • Ishikawa Environment Fair 2004 the very latest information in real time, • Festa “Create the Future” and viewers can access the information • CEATEC Japan 2004 whenever they need it. • WPC EXPO 2004 We have established an area devoted • WASTEC2004 to the environment on our corporate • The 2nd Shizuoka Environment & website, and by providing an inquiry Sustainability Report Briefing Forests Fair screen, we aim to establish two-way • Environmental EXPO Yamagata 2004 communication. Furthermore, we will • Eco-Products 2004 continue to implement improvements designed to make our website even more user-friendly. http://www.fujitsu.com/global/about/ environment/

2005 FUJITSU GROUP SUSTAINABILITY REPORT 60 Related Data

Environmental Accounting and Performance Data

The details of environmental accounting and performance data are disclosed on our corporate website. We make every effort to update and enhance the data appropriately. http://www.fujitsu.com/global/about/environment/ • Environmental accounting results • Ecological effects and standards for emissions by plants • Results for PRTR Law substances balance within our of the main PRTR-targeted substances that we use Group

SRI-Related Indices Including Fujitsu External Awards/Evaluations

Name of Index Company Name Date Sponsor Achievement

Morningstar Social Responsibility 1st LCA Japan Forum November Life Cycle Recipient: Fujitsu Limited Morningstar Japan K.K. Index (MS-SRI) Award 2004 Assessment Incentive award: LCA Society of Japan through our Group’s Dow Jones (US) and the (JLCA) Forum “EcoLeaf” eco-efficiency Dow Jones Sustainability Index indicators SAM Group (Switzerland) Communications Activities Recipient: Shinko Electric Industries FTSE4Good Global Index FTSE Group (UK) Incentive award: Spreading LCA in university education (as of June 2005) and in academia, industry and government, with examples of LCA in IC packaging. SRI Funds Holding Fujitsu Shares The 8th Nikkei December Nihon Keizai Recipient: Fujitsu Limited Environmental 2004 Shimbun, Inc. Ranked 11th in Management Ratings manufacturing category

Name of Fund Company The Top PRTR Award December The Center for Recipient: Fujitsu Limited for 2004 2004 Environmental PRTR Incentive Award Information Nikko Eco Fund Nikko Asset Management Co. Ltd. Science Nikko Global Sustainability Fund Nikko Asset Management Co. Ltd. Environmental Ratings, March 2005 Tohmatsu Recipient: Fujitsu Group (“Globe”) Tohmatsu Evaluation Evaluation and “A” Rating (single “A”) and Certification Certification Asahi Life Socially Responsible Asahi Life Asset Management Organization Organization Investment Fund (“Asunohane”) Co. Ltd. (ALAMCO) The 8th Environmental April 2005 Toyo Keizai Inc. Recipient: Fujitsu Group Report Award- Green Reporting Environmental Report Sompo Japan Green Open Sompo Japan Asset Management Sustainability Report Forum Award (“Buna-no-Mori”) Co. Ltd. Award Highly commended (as of June 2005)

The History of Fujitsu’s Environmental Activities

1935 • Park-style design adopted for the • 1st Fujitsu Group Environmental 2001 • Fujitsu Environmental Protection Kawasaki Plant at the suggestion of Technology Exhibition held. Program (Stage III) formulated. Fujitsu’s founder, President Yoshimura. • Fujitsu Environmental Emblem designed. • Calendar using paper from sustainable 1972 • Environmental control sections • Overseas Environmental Information forest published. established at each plant. Network begins operation. • Forestation activities conducted in 1987 • Ozone Layer Protection Committee 1995 • Environmental Management System Malaysia. established. Committee established. 2002 • A world’s first: Tin-zinc-aluminum 1989 • Environmental Committee established. • Recycling system established and leadfree solder developed. 1990 • Environmental management evaluation implemented. • A world’s first: Biodegradable plastic system implemented. • Fujitsu Group Worldwide Environmental parts with lower environmental burden 1991 • Environmental Engineering Center Conference established. employed in notebook computers. established. 1996 • Fujitsu Environmental Protection • Fujitsu Group Environmental Policy 1992 • Fujitsu’s Commitment to the Program (Stage II) formulated. established. Environment formulated. • Environmental Engineering Center • A world’s first: Magnesium alloy • Use of CFCs and carbon tetrachloride homepage placed on intranet. recycled in-house applied in notebook for cleaning eliminated. • Chemical Emissions Reduction computers. • Energy Saving Committee established. Committee established. 2003 • Support for reforestation activities 1993 • Product Recycling Committee • First Environmental Report published. employing Rhythm Forest reforestation established. 1997 • Environmental web page established. network game initiated. • Waste Control Committee established. • All domestic manufacturing sites • Zero waste emission achieved by all 13 • Fujitsu Environmental Protection certified ISO14001 compliant. plants in Japan. Program (Stage I) formulated. 1998 • Forestation activities conducted in 2004 • ISO14001 integrated certification • Product Environmental Assessment Thailand. acquired by all Fujitsu Limited sites. Guideline formulated. • Green Product program launched. • 100% Green Product ratio achieved for • Domestic Affiliated Companies’ 1999 • Environmental accounting introduced. all newly developed products. Environmental Protection Council • Forestation activities conducted in • Fujitsu Group Environmental Protection established. Vietnam. Program (Stage IV) formulated. • Environmental Information Service (FJ- 2000 • Four development and service sites in 2005 • ISO14001 certification acquired by all COG) opened. Japan certified ISO14001 compliant. Group companies in Japan. 1994 • First issue of Eco-Plaza environmental • Corporate Environmental Affairs Unit • Supply of Super Green Products begins. bulletin published. established. • Use of 1,1,1-trichloroethane eliminated. • First desktop PC awarded Eco-mark.

61 2005 FUJITSU GROUP SUSTAINABILITY REPORT Independent Review Report

To ensure the reliability and transparency of this report, we have obtained an independent review report from a third party (Shin Nihon Environmental Management and Quality Research Institute).

2005 FUJITSU GROUP SUSTAINABILITY REPORT 62 We care for the Earth. This report is printed on 100% recycled paper with ink containing less than 15% oil-based solvent.

©2005 AL0044-1-Sep.2005 http://www.fujitsu.com/global/about/environment/