FUJITSU GROUP SUSTAINABILITY REPORT 2006 Fujitsu Group Profi le Editorial Policy Parent Company: Fujitsu Limited Purpose Addresses: Kawasaki Main Office The 2006 Fujitsu Group Sustainability Report describes the thinking, 1-1 Kamikodanaka 4-chome efforts, and accomplishments regarding the social and environmental Nakahara-ku, Kawasaki, Kanagawa aspects of Fujitsu Group operations based on The FUJITSU Way, the 211-8588, Japan core set of principles guiding the conduct of the Fujitsu Group. More Tel: +81-44-777-1111 detailed information is available on the Fujitsu website. (See page 61.) Headquarters Shiodome City Center Intended Readers 5-2 Higashi-Shimbashi 1-chome This report is for the benefit of various stakeholders, including Minato-ku, Tokyo 105-7123, Japan customers, shareholders, employees, business partners, local Tel: +81-3-6252-2220 communities, public administrators and NGOs/NPOs. President: Hiroaki Kurokawa Established: June 20, 1935 Ensuring Reliability of Information Main Business In order to assure the reliability of the information presented here, we Activities: Manufacture and sale of communications consulted the following guidelines: the GRI (Global Reporting Initiative) systems, information processing systems, and “Sustainability Reporting Guidelines 2002,” the Japanese Ministry of the electronic devices, and the provision of services Environment’s “Environmental Reporting Guidelines 2003,” “Environmental related to those products Accounting Guidelines 2005,” and “Environment Performance Index Capital: ¥324.6 billion (as of March 31, 2006) Guidelines 2002.” This report has also been reviewed by an independent body, the Shin Nihon Environmental and Quality Management Research Sales: Fiscal year 2005: ¥4,791.4 billion Institute, whose independent assurance report is appended. Furthermore, Fiscal Year-End: March 31 the reliability of the environmental information presented here meets the Employees: Consolidated 158,000 (as of March 31, 2006) standards for being granted the environmental report audit and Unconsolidated 37,000 (as of March 31, 2006) registration mark stipulated by The Japanese Association of Assurance Organizations for Environmental Information, and this report has been duly granted this audit and registration mark. • GRI Sustainability Reporting Guidelines 2002 http://www.globalreporting.org/ • Ministry of the Environment: Environmental Reporting Guidelines (2003 edition) The environmental http://www.env.go.jp/policy/report/h15-05/ report audit and all.pdf (Japanese) registration mark • Ministry of the Environment: Environmental Reporting Guidelines (2005 edition) http://www.env.go.jp/en/policy/ssee/eag05.pdf • Ministry of the Environment: Environment Performance Index Kawasaki Main Office Headquarters Guidelines (2002 edition) http://www.env.go.jp/policy/report/h15-01/ (Japanese) • The Japanese Association of Assurance Organizations for For Inquiries about this report, please contact Environmental Information Fujitsu Limited http://www.j-aoei.org/ (Japanese) Corporate Social & Environmental Affairs Office, The FUJITSU Way Unit 17-25 Shin Kamata 1-chome, Ohta-ku, Tokyo 144-8588, Japan Two-way Communication Tel: +81-3-6424-6332 Fax: +81-3-6424-6339 We consider this report a means for fostering two-way communication between readers and the Fujitsu Group. We welcome suggestions for Fujitsu Limited improving our activities, and have included a separate questionnaire, which Corporate Environmental Affairs Unit can be used for sharing any opinions you may have. We plan to publish 1-1 Kamikodanaka 4-chome, Nakahara-ku, Kawasaki, this report yearly and will strive to make it even easier to read and use. Kanagawa 211-8588, Japan Tel: +81-44-754-3413 Fax: +81-44-754-3326 You can also contact us via the Fujitsu “Environmental Activities” website. Operations Covered http://www.fujitsu.com/global/about/environment/contact.html In principle, this report covers the entire Fujitsu Group, while the environment-related sections cover a total of 137 consolidated subsidiaries (domestic and overseas subsidiaries) that have formed environmental management systems in conjunction with Fujitsu Limited. The section on Publisher environmental impact data covers Fujitsu Limited (22 business locations) and 27 of its major manufacturing subsidiaries (19 domestic and 8 overseas). Published: December 2006 Please note that this report generally uses the term “Fujitsu Group” to Senior indicate the entire Fujitsu Group (although in some instances this does not Authority for include overseas Group companies), and the term “Fujitsu” to indicate Fujitsu Limited on an unconsolidated basis. Publication: Masamichi Ogura Corporate Senior Executive Vice President Key Fujitsu Group Changes Impacting the Scope of this Report Planning & • Fujitsu Hitachi Plasma Display Limited is no longer included in consolidated Editing: Keiichi Fujisawa accounts. • Fujitsu Display Technologies Limited is no longer included in consolidated Corporate Social & Environmental Affairs Office, accounts. The FUJITSU Way Unit • The Fujitsu Limited Minami Tama Plant was transfered. Mitsugu Sato Time Frame SD Planning Division, Corporate Environmental Affairs Unit This report focuses primarily on the thinking, efforts, and results of the Fujitsu Group for fiscal 2005, the financial period from April 1, 2005 to March 31, Publisher: SD Planning Division, Corporate Environmental Affairs Unit, 2006, with the data reflecting actual results from that period. Fujitsu Limited The report also includes the Fujitsu Group’s thinking, efforts, and accomplishments as well as activity data prior to April 1, 2005 and also for the Copying, duplicating or reprinting part or all of the 2006 Fujitsu Group Sustainability Report period between April 1, 2006 and the begining of September 2006. without permission is a copyright infringement, except in cases authorized by law. All Rights Reserved, Copyright ©FUJITSU LIMITED A Note Concerning Forward-looking Statements, Projections, and Plans This report not only describes past and present facts related to Fujitsu Limited and its related subsidiaries (the Fujitsu Group), but also includes forward-looking statements, projections, and plans. Such forward-looking statements, projections, and plans are based on data available when the report was prepared, and therefore involve a degree of uncertainty. Accordingly, future results of operating activities and other new developments may differ from the statements, projections, and plans included in this report. We ask our readers’ understanding of the fact that the Fujitsu Group cannot be responsible for such eventualities. 1 2006 FUJITSU GROUP SUSTAINABILITY REPORT FUJITSU GROUP SUSTAINABILITY REPORT 2006 Contents Fujitsu Group Profile/Editorial Policy 1 Messages from Management 3 Main Business Activities 6 Business Overview 7 The FUJITSU Way 9 Activity Highlights in 2005 Management Systems Implementing The FUJITSU Way—Striving to be a trusted partner 1. Opening up future possibilities with “electronic paper” 11 2. PalmSecure—Our contactless palm vein authentication system 13 3. Constructing a globally integrated Environmental Management System 15 Corporate Governance 17 Risk Management 19 Compliance 23 Fujitsu and Society Chapter 1 27 Fujitsu and Society For Our Customers 28 With Our Employees 32 For Our Shareholders 35 With Our Business Partners 36 With Local and International Communities 37 Chapter 2 39 Fujitsu and the Environment Fujitsu and the Environment Environmental Policy 40 Operating Activities and Environmental Burden (Material Balance) 41 Targets and Achievements 43 Environmental Accounting 44 Strengthening Environmental Management 45 Global Warming Countermeasures 47 Contributing to the Environment with IT Solutions 50 Environmental Measures for Products 51 Product Recycling 54 Promotion of Green Factories 56 Environmental Contributions to Society 59 Cooperation with External Groups 60 The History of Fujitsu’s Environmental Activities 60 Information Published on the Fujitsu Website 61 Independent Assurance Report 62 2006 FUJITSU GROUP SUSTAINABILITY REPORT 2 Messages from Management The Importance of Sustained Activities Based on a Long-Term Perspective scholarship program to enable talented business people from the Asia-Pacifi c area to study at JAIMS. To date, over 20,000 people from more than 50 countries have participated in JAIMS programs. Many JAIMS alumni have applied their expertise in developing cross-cultural business around the globe. Ultimately, this has also been of great value to the Fujitsu Group. Acquiring Globally Integrated ISO14001 Certifi cation for the Whole Fujitsu Group The Fujitsu Group has since its earliest days had a strong orientation towards operating in harmony with the environment. We do not view environmental protection as a cost, but rather as a key corporate value, and based on that Naoyuki Akikusa stance we have been engaging in a wide range of leading- Chairman edge environmental activities. As a result of these sustained efforts, in March of this year we acquired globally integrated certifi cation of our environmental management system While it is true that corporations need to take short-term under the ISO14001 international standard. A perspective measures to provide increased value within the social of continuous improvement is an absolute requirement for context, we are aware that steady, sustained activities based constructing and operating an environmental management on a long-term perspective are also critical. Although time system, and