Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Protection
• Sustainable Consumption
• Social Contribution
• Care for Employees
• Human Rights
• Governance

Environmental Achievements

• Reduced CO2 emissions by approximately 22% compared with FY2013 (due to solar power generation and shift to R-32 refrigerant)
• Reduced CO2 emissions from air conditioners during product use by 47.5% compared with FY2013
• Achieved industry's top energy efficiency (A+++ for cooling and A++ for heating) for 3-, 4-, and 5-room multi outdoor unit air conditioners in Europe
• Reduced water usage per unit of production by 1.8% at domestic and 5.9% at overseas production sites compared with FY2013
• Reduced waste generated per unit of production output by 0.2% at overseas production sites compared with FY2013

Social Achievements

• Launched the Future of Innovation Challenge (FIC) to create new businesses that solve social issues
• Launched the SDGs Proposal system to solicit ideas that contribute to society
• Introduced a wearable air conditioner, Cómodo gearTM
• Provided health consulting service to all employees
• Supported smoking cessation for 50 employees
• Conducted Engineer Ethics Education for approximately 1000 engineers
• Increased the ratio of women in regular recruitment to 31% in FY2020
• Appointed 10 new women managers by April 2021

Governance Achievements

• Appointed the President as Chief Sustainability Officer (CSO)
• Established the Office of Sustainability Promotion
• Formulated the Sustainable Management Basic Policy
• Revised the Mid-Term Environmental Action Plan
• Endorsed the TCFD recommendations
• Established the Corporate Ethics Helpline

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on business activities (transition risks and physical risks)
• Supply chain disruptions due to COVID-19
• Shortage of human resources
• Need for work-life balance

Mitigation Strategies

• Developed air conditioners using refrigerants with low global warming potential
• Developed air conditioners that do not use power sources derived from fossil fuels
• Developed alternative sourcing strategies
• Implemented health management initiatives
• Introduced flexible work styles
• Implemented the 10% rule to allow employees more flexibility
• Established a re-employment system for employees after retirement age

Supply Chain Management

Supplier Audits: Self-checks conducted for 7 companies in Japan, 4 in China, and 5 in Thailand in FY2020

Responsible Procurement

• CSR Procurement Policy and Guidelines
• Green Procurement activities based on Fujitsu Group Green Procurement Standards
• Requesting suppliers to establish an environmental management system (EMS)

Climate-Related Risks & Opportunities

Physical Risks

• Electricity shortages in emerging countries

Transition Risks

• Tighter refrigerant regulations
• Changes in energy regulations

Opportunities

• Development of energy-efficient products
• Development of air conditioners that do not use power sources derived from fossil fuels

Reporting Standards

Frameworks Used: GRI Standards, ISO 26000:2010, Environmental Reporting Guidelines 2018 (Japan), UN Global Compact, TCFD Recommendations

Certifications: ISO 14001

Sustainable Products & Innovation

• HM series nocria air conditioners
• Cómodo gearTM wearable air conditioner
• ATW air-to-water heat pump

Awards & Recognition

• Certified Health and Productivity Management Outstanding Organization 2021: White 500
• Selected as a brand for S&P/JPX Carbon Efficient Index
• Rated 3-star Nikkei Smart Work Management Survey
• Japan’s Personnel Department HR Award
• Rated 3.5-stars in the Second Nikkei SDGs Management Survey
• Gan-Ally-Bu Award 2020 (Gold)
• Sports Yell Company 2021 (Kanagawa Prefecture)
• Next-Generation Certification Mark “Kurumin”
• Registered as “Business promoting CHO Initiative”

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Reduction
• Resource Efficiency
• Air Pollution Prevention
• Water and Waste Reduction
• Customer Relations
• Community Engagement
• New Value Creation
• Supplier Engagement
• Human Rights
• Health Management
• Work-Life Balance
• Diversity & Inclusion
• Governance
• Compliance

Environmental Achievements

• Achieved 100% renewable energy for electricity use in all global bases by April 1, 2022 (3 years ahead of schedule).
• Increased sales of sustainable products (サスプロ) to ¥400 billion, a near doubling from the previous year.
• Developed a small GAN module that reduces power consumption by approximately 50% compared to Si devices.
• Developed an Aero Shield UV-C irradiation device for ambulances.

Social Achievements

• Launched a new social contribution activity basic policy.
• Continued health management initiatives.
• Strengthened efforts in diversity and inclusion.
• Implemented a new non-cash compensation system (Sustainable Management Index-based Restricted Stock Compensation) to incentivize sustainable management practices.

Governance Achievements

• Implemented a new non-cash compensation system (Sustainable Management Index-based Restricted Stock Compensation) to incentivize sustainable management practices.
• Regularly conducted board effectiveness evaluations.
• Established a corporate ethics helpline for employee consultations.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic, including lockdowns, factory closures, and parts shortages.
• Soaring material, parts, and shipping costs.
• Global inflation and currency fluctuations.
• Shortage of semiconductors and parts.
• Logistical bottlenecks.
• Geopolitical risks (e.g., the Ukraine crisis).

Mitigation Strategies

• Diversifying procurement sources and adopting alternative parts.
• Optimizing product lines and standardizing designs.
• Improving production efficiency through IT and automation.
• Implementing strategic inventory management.
• Expanding ODM production and utilizing external resources.
• Implementing local production in India and considering local production in Europe and North America.
• Continuously increasing product prices globally.
• Switching heat exchanger material from copper to aluminum.
• Developing a low-cost, air-conditioning-only inverter.

Supply Chain Management

Supplier Audits: Self-assessment questionnaires for 5 suppliers in 2021.

Responsible Procurement

• CSR procurement guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (typhoons, floods)
• Rising average temperatures

Transition Risks

• Carbon tax and emissions trading schemes
• Strengthened refrigerant regulations
• Electricity supply shortages
• Rising raw material costs

Opportunities

• Increased demand for heat pump systems due to fossil fuel regulations.
• Increased demand for air conditioners due to rising temperatures.
• Increased demand for energy-efficient air conditioners due to energy efficiency regulations.

Reporting Standards

Frameworks Used: GRI Standards, TCFD

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 9 (Industry, Innovation, and Infrastructure)
• SDG 13 (Climate Action)

The company's initiatives contribute to these goals through renewable energy adoption, sustainable product development, and climate change mitigation efforts.

Sustainable Products & Innovation

• Air-to-water heat pump systems (ATW)
• Cold-only inverter air conditioners (India)
• Small GAN module
• Aero Shield UV-C irradiation device

Awards & Recognition

• TRUSTED BRAND AUSTRALIA 2021 (4 consecutive years)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Circulation
• Human Rights
• Health and Productivity Management
• Supply Chain Management
• Corporate Governance

Environmental Achievements

• Reduced greenhouse gas emissions by approximately 71% compared with FY2021.
• Switched to 100% renewable energy for all electricity used in FY2023, cutting CO2 emissions by 40,625 tons.
• Reduced CO2 emissions from the use of air conditioners developed and sold in FY2023 by 21.9% compared with FY2021.

Social Achievements

• Introduced a “Career Ownership Sheet (COS)” for all employees to support human resource development and the achievement of career goals.
• Introduced on-demand education to support employee learning and development.
• Implemented initiatives to reduce maximum working hours, prohibit late-night overtime work, and set one day a week as a day when all employees finish work at the scheduled time.

Governance Achievements

• Established the “Corporate Ethics Helpline” system to ensure the protection of whistleblowers and early detection of compliance issues.
• Formulated the “Guideline for Utilizing generative AI” to address ethical and other problems that may occur through the utilization of AI.
• Conducted annual training related to human rights to provide an opportunity for employees to “take ownership” of human rights problems and act on them.

Climate Goals & Targets

Environmental Challenges

• Increased waste generated per unit of production at overseas production subsidiaries compared with the previous fiscal year.
• Potential water risk at one production site classified as “Extremely High (>80%)” in the Aqueduct water risk assessment.
• Long working hours caused by the impact of busy periods and other factors.

Mitigation Strategies

• Implementing measures to reduce waste loss for aluminum and copper materials.
• Conducting more detailed surveys and continuous monitoring at the high-risk site.
• Implementing initiatives such as reducing maximum working hours, prohibiting late-night overtime work, and setting one day a week as a day when all employees finish work at the scheduled time.

Supply Chain Management

Supplier Audits: On-site audits conducted for significant suppliers (details provided in report)

Responsible Procurement

• Fujitsu Group Green Procurement Direction
• Fujitsu General Group’s Individual Policy (Specification)
• Guideline for Sustainable Procurement

Climate-Related Risks & Opportunities

Physical Risks

• Damage to production bases due to disasters such as typhoons and floods

Transition Risks

• Increased pricing of GHG emissions
• Tightening of refrigerant regulations
• Tight supply and demand for electricity

Opportunities

• Increased demand for heat pump heaters
• Increased demand for air conditioners due to rising temperatures
• Strengthening of regulations on energy conservation

Reporting Standards

Frameworks Used: GRI Standards, United Nations Global Compact, ISO 26000:2010, TCFD Recommendations

Certifications: ISO 14001, ISO 45001, ISO 9001

Third-party Assurance: Third-party assurance received for Scope 1, 2, and 3 (Category 11) emissions

UN Sustainable Development Goals

• Goal 7
• Goal 9
• Goal 12
• Goal 13
• Goal 8
• Goal 11
• Goal 14
• Goal 15

Various initiatives contribute to these goals (details provided in report)

Sustainable Products & Innovation

• ATW (air-to-water heat pump hot water heating system)
• Cooling only inverter air conditioners for India
• Small GaN power modules
• AEROSHIELD
• Cómodo gear

Awards & Recognition

• SOMPO Sustainability Index constituent
• FTSE Blossom Japan Sector Relative Index constituent
• S&P/JPX Carbon Efficient Index constituent
• 2024 Certified KENKO Investment for Health Outstanding Organizations Recognition Program
• Kurumin certification
• Sports Yell Company 2024 Bronze
• Gan-Ally-Bu Award 2023 (Gold)