For the Environment Passing on a Beautiful Environment to Future Generations

For the Environment Passing on a Beautiful Environment to Future Generations

For the Environment

Passing on a Beautiful Environment to

Future Generations

Consideration for the environment is one of the core values articulated in

The FUJITSU Way, and this in turn informs the Fujitsu Group Environmental

Policy. We create a mid-range environmental protection program with concrete targets for implementing this environmental policy and, by working to achieve these targets, aim to contribute to sustainable development.

Initiatives in this Area

• Achievements of the Fujitsu Group Environmental Protection Program

Fujitsu Group Environmental Policy

Since Fujitsu’s founding in 1935, we have made environmental preservation one of the most important elements in our management, based on our philosophy of “manufacturing in harmony with nature.” To promote environmental management that reflects the distinctive identity of the Fujitsu Group, we have established the Fujitsu Group Environmental Policy.

Green Policy 21

We want every employee of the Fujitsu Group to understand the approach, which has applied since our founding, of manufacturing in harmony with nature and to put this approach into practice in their daily work. For this purpose, we have established “Green Policy 21” as a concept to guide our actions—a concept that goes beyond any mere statement of intent.

We have adopted as our slogan “We make every activity green,” and we put this idea into practice in all areas of our business.

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.

• 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 and society to 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.

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2007 FUJITSU GROUP SUSTAINABILITY REPORT

Targets and Achievements

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.

Environmental Protection Program (Stage IV)

The Fujitsu Group establishes mid-range environmental action programs to provide concrete objectives for implementing environmental policies. In the Stage IV Fujitsu Group

Environmental Protection Program, which covers fiscal

2004 through fiscal 2006, we expanded the scope of our environmental efforts to include all areas of the Group (design, development and manufacturing divisions, headquarters bodies, sales units, and software & services divisions), and through systemic environmental protection activities we strove to contribute to the building of a sustainable society.

In fiscal 2006, which was the last year of the Stage

IV program, our results included achieving goals related to the provision of Super Green Products and certified

Environmentally Conscious Solutions, construction of recycling systems in North America and Asia, and promotion of green procurement and green factories.

We did not, however, achieve our target recycling ratio for waste plastics, due to insufficient types of recyclable materials that can be reused and other reasons. However, we will continue our efforts to find and create new types of recyclable materials.

Stage IV Fujitsu Group Environmental Protection Program (fiscal 2004 to 2006)

Items

Strengthening

Environmental

Management

Green

Procurement

Environmental

Measures for

Products

Product

Recycling

Fujitsu Group Targets Performance (fiscal 2006)

To establish an EMS-based framework for environmental management across the entire Fujitsu

Group by the end of fiscal 2005.

We established environmental management frameworks in all Group companies, acquiring

ISO14001 globally integrated certification including overseas locations at the end of 2005.

To increase the procurement ratio from suppliers who have implemented an environmental management system (EMS) to 100% by the end of fiscal 2006.

We achieved the targeted 100% procurement ratio for all procured items for the whole Fujitsu Group.

All business units to provide Super Green Products (with top-class environmental characteristics) in their principal product line offerings by the end of fiscal 2006.

All business units now provide Super Green Products.

All Fujitsu-brand products to be made free of

Fujitsu-specified hazardous substances by the end of fiscal 2005.

We started providing products free of Fujitsu Groupspecified hazardous substances in April 2006 (with certain exceptions * )

* These exceptions are:

• Products such as certain medical equipment that is not subject to the RoHS directive and products for special systems in which reliability is seen as critical.

• Products supplied to customer specifications

To establish recycling systems in Europe by the end of fiscal 2004, and in North America and Asia by the end of fiscal 2006.

To increase the reuse and recycling rate of collected end-of life products in Japan to 90% by the end of fiscal 2006.

To increase the utilization rate of recovered waste plastic for the Fujitsu Group in Japan to 20% by the end of fiscal 2006.

In Europe, we implemented recycling systems in conformance with local recycling regulations and completed operational preparations at our principal subsidiaries in North America and Asia.

We achieved a reuse and recycling rate of 90% by the end of fiscal 2005 and maintained a 90% or better level in fiscal 2006.

With a recovered waste materials utilization rate of 18% at the end of fiscal 2006, this goal remains unmet.

We will continue to work to identify recyclable materials.

Status*

Environmentally

Conscious

Solutions

Global Warming

Countermeasures

Promotion of

Green Factories

To provide Environmentally Conscious Solutions in all areas of our software and services business by the end of fiscal 2006 in order to help customers reduce their environmental burdens.

To reduce CO

2

emissions resulting from energy consumption down to or below the actual emission levels of fiscal 1990 by the end of fiscal 2010.

(15% reduction from fiscal 2000 levels by end of fiscal 2006.)

We are now supplying Environmentally Conscious

Solutions in all areas (total: 82 products).

CO

2

emissions due to energy consumption were about 1,149,000 tons. This corresponds to a 29% reduction from fiscal 2000 levels (6.1% higher than

1990 levels).

To reduce greenhouse gases other than CO of fiscal 2010.

2

by 10% from the actual fiscal 1995 emission levels by the end

Emissions made up of other greenhouse gasses (PFC,

HFC, and SF

6

) were about 381,000 tons, a 47.1% increase compared to fiscal 1995 levels.

Continuing

To contribute to the reduction of greenhouse gases by efficient physical distribution, product recycling, development of energy saving products, and other measures.

We strengthened our environmental activities in our logistics divisions.

Continuing

To reduce, by the end of fiscal 2006, the discharge of chemical substances that are subject to the Pollutant

Release and Transfer Register (PRTR) by 15% compared to the actual fiscal 2001 discharge levels.

Emissions of specified chemical substances were

47.3 tons, a decline of 53.0% compared with fiscal

2001.

To reduce the amount of generated waste by 3% compared to the actual amount in fiscal 2003 by the end of fiscal 2006.

The amount of waste generated was 29,845 tons, a decline of 41% compared with fiscal 2003.

* : Achieved, : Not achieved

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Highlight

Creating a New Environmental Action Plan for the Next Generation

Launching the Stage V Fujitsu Group

Environmental Protection Program

Formulating the Stage V Environmental

Protection Program

The Fujitsu Group establishes mid-range (three-year) environmental action plans to provide concrete objectives for implementing our environmental policy. Our newest plan, the

Stage V Fujitsu Group Environmental Protection Program, starts in fiscal 2007.

This program is based on two fundamental approaches.

The first is to seek an awareness of issues above and beyond those arising from the results of the previous program (Stage

IV, which ran from fiscal 2004 to 2006). The second is to ask what direction environmental management in the Fujitsu

Group should take based on careful observation of global and societal conditions and changes in the business environment in which we operate.

These approaches have been incorporated in two basic policies and five priority areas of the Stage V program. In this new program, we are asking each and every employee in the

Fujitsu Group to participate in environmental activities related to their daily work and to strive to help the Group achieve the objectives of the program.

Basic Policies

We carry out environmental activities based on the Fujitsu

Group Environmental Protection Program. Over the years, these activities have resulted in the strengthening of environmental activities at business sites and the development of environmental activities in all business units in the Group.

In creating the Stage V program, we recognized (1) the importance of having all employees grapple with environmental activities in their daily work and (2) the necessity of expanding the scope of our environmental activities throughout our entire supply chain from the standpoints of fulfilling our social responsibilities to our diverse stakeholders and fully complying with global environmental regulations. With this awareness, we established the following two basic policies.

• Develop environmental activities in which all employees can play an active role in their daily work.

• Expand the scope of environmental activities to encompass the entire supply chain.

Five Priority Areas

In addition, taking into consideration the impact of future societal trends on our business, and building on the progress achieved in the Stage IV program, we have defined five priority areas of focus going forward:

• Improving the environmental value of products and services

• Global warming countermeasures

• Reinforcing governance

• Reinforcing risk management

• Environmental contributions to society

The Stage IV Fujitsu Group Environmental Protection

Program sets the concrete objectives in these five priority areas that we will strive to achieve in the three years from fiscal 2007 through fiscal 2009.

Approach and Priorities in Formulating the Stage V Fujitsu Group Environmental Protection Program

Stage IV Fujitsu Group

Environmental Protection Program

(Fiscal 2004 to fiscal 2006)

• Environmentally conscious products and services

Reducing our customers’ environmental burdens by providing superlative eco-friendly products and solutions

• Global warming countermeasures

Promotion of energy saving activities throughout the Group

Stage V Fujitsu Group Environmental

Protection Program

(fiscal 2007 through fiscal 2009)

Basic policies

Develop environmental activities in which all employees can play an active role in their daily work.

Expand the scope of environmental activities to encompass the entire supply chain.

Five Priority Areas

Improving the

Environmental Value of

Products and Services

Approach to creating the

Stage V program

Aiming at further progress beyond the

Stage IV program

Global Warming

Countermeasures

Reinforcing

Governance

Reinforcing Risk

Management

Environmental

Contributions to Society

Medium and long-term social trends

• Responding to global environmental trends

Factors that impact management include global warming, energy and resource issues, and stronger requirements for social responsibility.

• From the standpoint of compliance

Environmental laws, including laws concerning chemical substances management and product-related regulations, are becoming stricter around the world.

Approach to creating the Stage V program

Taking into consideration factors that can influence our business in the future

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2007 FUJITSU GROUP SUSTAINABILITY REPORT

Stage V Fujitsu Group Environmental Protection Program (fiscal 2007 through fiscal 2009)

Five Priority

Areas

Improving the environmental and services

Global warming countermeasures

Reinforcing

Governance

Reinforcing Risk

Management

Environmental

Contributions to

Society

Stage V Targets

Increase the number of Super Green Products

Targeting the Green Products being newly developed in all business units, by the end of fiscal

2009 we aim to increase to over 20% the proportion of products that are Super Green

Products with top-class environmental characteristics.

Achieve an improved environmental efficiency factor

By fiscal 2009 we will strive to achieve an environmental efficiency factor of “2” (i.e., twice the environmental efficiency) relative to products in fiscal 2005 for newly developed Green

Products in all business units.

Increase resource reuse and recycling for collected end-of-life products

By the end of fiscal 2009 we aim to increase the volume of reused and recycled resources by

15% relative to fiscal 2005.

Also, we will maintain the 90% resource reuse and recycling rate for collected end-of-life business-use IT products achieved in Stage IV.

Expand environmental solution offerings

We will strive to offer Environmentally Conscious IT Solutions in all areas of our business by fiscal 2009.

Reducing CO

2

emissions from energy consumption

• Global: Reduce CO

2

emissions per unit sales to 28% below fiscal 1990 levels by the end of fiscal 2010.

• Japan: Limit energy consumption-related CO

2

emissions at our business sites to below fiscal 1990 levels by the end of fiscal 2010.

Reduce greenhouse gasses other than CO

2

We will work to reduce emissions of greenhouse gasses other than CO

2

by 10% relative to fiscal 1995 emissions by the end of fiscal 2010.

Reduce CO

2

emissions during distribution and transport

We will strive to reduce the volume of transport-related CO

2

emissions by 30% from fiscal

2000 levels by the end of fiscal 2010.

Apply Green Factory and Green Office systems

We seek to achieve a two star or higher ranking * in the Green Factory or Green Office systems at all our business sites by the end of fiscal 2009.

* Specific achievement level under an original Fujitsu evaluation standard

Reduce VOC emissions

We aim to reduce volatile organic compound (VOC) emissions by 30% relative to fiscal 2000 levels by fiscal 2009.

Reduce waste generation

We will strive to reduce waste generation by 3% relative to 2005 levels by the end of fiscal 2009.

Improve our environmental management system (EMS)

We will strengthen environmental activities in our business by improving our globally integrated environmental management system.

Advance green procurement activities

We will strengthen environmental activities throughout our supply chain and support the activities of our business partners.

• We will promote improvements in our business partners’ environmental management systems, for example, encouraging them to obtain third-party certification such as ISO14001.

• We will promote construction of chemical substance management systems (CMS) by our business partners.

Activities for environmental contributions to society

We will carry out locally attuned activities that make environmental contributions to society and in which each of our employees can play an important role.

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For the Environment

Environmental Management

We are continuously working to improve our ISO14001-based environmental management system and to promote unified environmental management of the Fujitsu Group.

EMS Implementation and Operational Status

We obtained integrated ISO14001 certification, which is an international EMS standard, covering our domestic consolidated subsidiaries at the end of fiscal 2004. In fiscal

2005, we expanded our EMS coverage to include certain overseas Group companies. By the end of fiscal 2006, we had acquired globally integrated ISO14001 certification covering 88 domestic Group companies and 11 overseas Group companies.

Furthermore, 33 of our non-manufacturing overseas consolidated subsidiaries have implemented and are operating environmental management systems based on common standards derived from the Fujitsu Group Environmental

Policy. In this way, we have established a framework for environmental management of the entire Group.

Environmental Promotion Structure

In order to carry out management decisions quickly, the

Fujitsu Group environmental management system has been developed in accordance with our business organization, that is, our business group structure. In particular, we have constructed a matrix structure that combines both line activities that promote environmental efforts according to the characteristics of each business group and site activities that deal with common themes at each factory or business site.

The Management Council makes decisions on EMS activities, and those decisions are transmitted to each business group. For each environmental activity theme, an issuespecific committee, consisting of concerned parties that transcends the business group/unit organizational structure, discusses the establishment of concrete environmental action plans and improvements to the EMS. The Environmental

Committee manages and oversees these efforts and provides feedback to the Management Council, which is later reflected in the activities in each of the business groups.

To strengthen communication with Group companies, we hold meetings of the Domestic Affiliated Companies’

Supervisory Environmental Council, comprising the heads of our domestic Group companies, and of the EMS Managers

Council, for managers in charge of actual EMS operations.

With respect to our overseas operations, we hold global

EMS conferences in each of our four key geographies, Asia-

Pacific, China, North America, and Europe, where we provide information on the direction of environmental activities for the

Group as a whole and the results of management reviews.

Structure for Environmental Activities

By location

Management Council

(Headed by the President)

Business

Groups

Various business units /

Group companies

(domestic, worldwide)

Corporate Environmental

Affairs Unit

Corporate Internal

Audit Division

The FUJITSU Way

Promotion Council

In charge of environmental management

In charge of internal auditing

Environmental Committee

Activity themes handled by issue-specific committees

Environmental management system

Green products

Environmental solutions

Product recycling

Green factories

Prevention of global warming

Green distribution

Green procurement

Communications

Individual environmental activities

Domestic Affiliated Companies’ Supervisory

Environmental Council

Fujitsu Group Worldwide

Environmental Conference

Strengthening Worldwide Environmental Activities

In fiscal 2006 we held a global EMS conference in

Singapore to which we invited Group companies from the Asia region. We presented the results of the Stage

IV Environmental Protection Program and an overview of

Stage V, exchanged opinions on environmental efforts starting in fiscal 2007, including items requested by local companies, and deepened understanding of the Group’s overall direction in this area. We also held a similar conference in China and plan on holding conferences in

North America and Europe in fiscal 2007.

At the same time as the EMS meeting in Singapore, we took the opportunity to exhibit at the Eco-Products

International Fair 2006 in Singapore for the first time as the

Fujitsu Group, and also held the Fujitsu Environmental

Forum outside Japan for the first time. These efforts have increased our local customers’ understanding of Fujitsu’s environmental activities.

Environmental Forum in Singapore

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2007 FUJITSU GROUP SUSTAINABILITY REPORT

For the Environment

Implementing Environmental Audits (internal audits)

Internal audits of the Fujitsu Group are carried out by the

Corporate Internal Audit Division under the basic principles of independence and objectivity.

In fiscal 2006, the main points brought up by the internal audit were items concerning compliance, evaluation of environmental influences and setting targets, implementation, planning, and education. In fiscal 2007, we will work to reduce the number of points raised in the audit by taking measures that include holding EMS briefings, joint implementation of risk inspections with facilities divisions, and providing training for internal environmental auditors as well as for workers who handle industrial waste. Specifically, regarding the handling of industrial waste, along with implementing priority checks in our internal audits, in fiscal

2006 we implemented educational programs with specialists from outside the company for workers who handle industrial waste at nine of our locations in Japan. A total of 328 persons received this training, and in fiscal 2007 we intend to step up these efforts.

Among the new initiatives started in fiscal 2006, internal auditors are recording positive examples they notice during the course of their audits and holding these up as best practices that can be shared with and extended to various sites throughout the Group.

Implementing Management Reviews

Through deliberations of the Environmental Committee and

Management Council, we carry out management reviews to evaluate the effectiveness of our domestic and international environmental activities and discuss the future direction of such activities. In fiscal 2006 we decided to promote the following key initiatives going forward.

• Provision of customer-centric products and solutions differentiated by superior characteristics in areas such as handling of risk, energy savings and resource savings.

• Full-fledged implementation of global warming countermeasures

• Implementation of governance that considers the global supply chain

• Promoting environmental consciousness-raising activities for all employees

We have incorporated these initiatives into the Stage

V Environmental Protection Program that starts in fiscal

2007, announced them to the Fujitsu Group, and will work to give concrete shape to them in the actions of each and every employee.

Status of Environmental Compliance

In fiscal 2006, there were ten transgressions of environmental regulations by the Fujitsu Group. These involved water quality, noise, and effluent leakage, and we corrected all of them within fiscal 2006.

Regarding the Targets of the Stage V

Environmental Protection Program

Strengthening Our Environmental

Management System

We will work to improve our globally integrated environmental management system and strengthen environmental efforts in our main business activities

(including development, design, procurement, manufacturing and sales) by constructing a mutual internal audit framework among Group companies and implementing educational advancement programs for internal auditors using external specialists.

We will also strengthen environmental governance throughout the supply chain by supporting the expansion and improvement of the environmental management systems of our business partners and promoting green procurement.

Strengthening Environmental Governance throughout the Supply Chain

Range of Initiatives

Suppliers

Stepped-up promotion of green procurement activities

Non-manufacturing overseas

Group companies

(independent activities)

Manufacturing overseas

Group companies

(integrated certification since fiscal 2005)

Integrated certification of main Fujitsu domestic Group companies since fiscal 2004

Fiscal 2004

Expansion of environmental activities to subsidiaries of non- manufacturing affiliates

Expansion of EMS construction to sites related to the supply chain.

Expansion of ISO certification to subsidiaries of manufacturing affiliates

Fiscal 2005 / 2006 Fiscal 2007 to 2009

2007 FUJITSU GROUP SUSTAINABILITY REPORT

36

For the Environment

Green Procurement

In cooperation with our business partners, we promote green procurement—from parts and materials for manufacturing through software and services—to provide our customers with products and services with superior environmental efficiency.

Our Approach to Green Procurement

In our procurement activity, we give priority to purchasing parts, materials, and products that are eco-friendly. We stipulate our basic requirements for green procurement in the Fujitsu

Group Green Procurement Direction and promote green procurement activities together with our business partners.

Approach Stage IV Environmental

Protection Program

In the Stage IV Fujitsu Group Environmental Protection

Program, to promote activities that would reduce environmental burden even further, we emphasized the importance of having our business partners construct environmental management systems, insisting that potential partners in every area—including software and services, facilities, and construction—deploy an EMS.

While we consider acquisition of third-party certification, such as ISO140001, a basic principle of EMS construction, we require that our business partners meet at least one of the following EMS levels, depending on their particular business circumstances.

EMS Construction for Green Procurement

Level

Acquisition of ISO14001 or other third-party certification

Level

Acquisition of Fujitsu’s original EMS (FJEMS * )

Level

Self-check and objective selection for environmental protection activities

ISO14001, Eco Stage, Eco Action 21,

KES, etc.

If, for various reasons, acquisition of

ISO14001 or other third-party certification is difficult, we request that partners deploy this EMS as a step towards acquiring third-party certification.

* Includes on-site verification of EMS

operating status and follow-up.

For business partners who are newly working on environmental protection activities, as a step toward creating an EMS this level involves selecting environmental activity objectives from their activities.

* FJEMS

Fujitsu Group Environmental Management System. The Fujitsu Group’s original EMS.

Goals and Results from the Stage IV

Environmental Protection Program

We made increasing the procurement ratio from business partners that have implemented an EMS to 100% by the end of fiscal 2006 a Stage IV goal. For business partners that had not yet acquired third-party certification, we held EMS improvement seminars in which we discussed the importance of increasing awareness of environmental protection and the significance of acquiring third-party certification. (In fiscal 2005 and 2006 we held a total of 28 such seminars for representatives of 1,710 companies.) As a result of these efforts, for the Fujitsu Group as a whole, we achieved a

100% procurement ratio from business partners that have implemented an EMS at the end of November 2006.

Regarding the Targets of the Stage V

Environmental Protection Program

We have reviewed and revised parts of our Green

Procurement Direction from the standpoint of compliance, based on considering global trends in environmental regulations, and are requesting that our business partners strengthen their environmental burden reduction activities even further. Also, to improve chemical substances management across our supply chain, we require that our business partners construct management systems centering on source control, and we will work together with them to deploy these systems.

Three Requirements for Fujitsu Group Green

Procurement Activities

EMS construction *1

Strengthened requirements

EMS Construction

• Acquisition of third-party certification

(in principle)

• Construction of an FJEMS (Fujitsu’s original EMS) as a provisional step to acquiring third-party certification

Compliance chemical substances regulations *2

CMS *3 construction

*2

*1 Applies to all our business partners.

*2 Applies to business partners who supply structural components and materials for products, and those who supply OEM products.

*3 CMS

Chemical Substances Management

System

• Non-containment of “Banned

Substances” in products

• Close management or “Control

Substances”

• Non-containment of “Banned

Substances” in packaging materials

• Non-use of “Prohibited Substances” in manufacturing

Note: Above substances and defined in Green Procurement Direction.

CMS Construction

• Construction of a management system based on JGPSSI- recommended guidelines

• Strengthening and supporting source control management for business partners

• Cooperation in investigations of included chemical substances

Encouraging EMS Improvements by Business Partners

We request that our business partners improve their

EMS by, for example, acquiring third-party certification or constructing a strengthened requirement FJEMS * .

* Strengthened requirement FJEMS

Improvements include additional required items (increased from six to nine items) and strengthened on-site operational verification.

Promoting CMS Construction by

Our Business Partners

To assure appropriate management of chemical substances throughout the supply chain, along with requesting that our business partners implement chemical substances management systems based on the Management of created by the Japan Green

Procurement Survey Standardization Initiative

(JGPSSI) and supporting their construction, we are strengthening management of chemical substances in the supply chain as a whole based on source control.

WEB

Fujitsu Group Green Direction http://www.fujitsu.com/global/about/procurement/green/

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2007 FUJITSU GROUP SUSTAINABILITY REPORT

For the Environment

Environmental Contributions to Society

We vigorously promote activities that make environmental contributions to society and foster mutually beneficial relationships in our communities worldwide.

Our Basic Approach to Activities that Make

Environmental Contributions to Society

All employees of the Fujitsu Group recognize the importance of the global environment and, to help ensure its sustainability, contribute to local society through activities in three key areas: regional contributions, nature conservation, and environmental education.

Regional Contribution Activities

We have created, as environmental goals, regional social contribution activities that are site activities for the environmental management systems at branch offices and factories throughout Japan. Through these efforts, we are working to strengthen our ties with local communities. In fiscal 2006, we carried out about 200 such activities, mainly involving area clean-up.

For example, a long-term issue afflicting Oita City has been the large volume of discarded objects that are dumped in the vicinity of the Sumiyoshi River, which runs through the city. To address this problem, Fujitsu Oita Software

Laboratories Limited, under the direction of Oita City Hall

Environmental Division with cooperation from the Sumiyoshi

River Cleanup Promotion Council, Oita Prefecture, and Oita

City, launched a waste-removal project, taking advantage of one of the extreme low tides that only occur a few times a year in the lower reaches of the Sumiyoshi River. The day of the project was rainy and the waste, which consisted of sludge-covered objects such as bicycles, motor

Waste removal project at Sumiyoshi River,

Oita City.

scooters, and batteries, was that much heavier. Despite being covered in mud, everyone worked together, and between human power and cranes, 3,280 kg of waste was recovered and removed.

Nature Conservation Activities

Appropriate forest conservation activities can foster forests that alleviate floods and droughts and provide a place for wild flora and fauna to live and flourish. Forests also absorb CO

2 that causes global warming.

Along with other citizens, the employees of the Fujitsu companies in the North Shinano region of Nagano Prefecture implemented a forest-protection project under the direction of the Nagano City Municipal Forest Preservation Division.

Thirty-eight people worked together thinning trees in late fall in the forest-experience nature park in the vicinity of

Lake Iizuna.

Similarly in the

Tokyo area, Fujitsu employees participated in the “Tokyo Greenship

Tree thinning at Iizuna Town in

Nagano Prefecture

Action” environmental protection project sponsored by the Tokyo Metropolitan Government, and helped carry out environmental protection activities in the Hachioji Ohtani

Green Space Preservation Area, Grass Fire Prevention Water

Environment Preservation Area, and the Yokosawairi

Mountain Protection Area.

Environmental Education Activities

We carry out a visiting environmental lecture program in which we send people to teach classes at elementary schools, junior high schools, and high schools. The purpose of this program is to encourage students, by learning about the environmental burden reduction activities of manufacturers, to consider what environmental burden reduction activities they could perform in their daily lives and to take action themselves. In fiscal 2006, about 800 students attended these entertaining, hands-on classes.

In the elementary school classes, a lecturer adopting the name of “Uncle 3R” uses juggling and magic to provide a fun introduction of the 3R * concept. Students then learn how 3R efforts can be applied to personal computers by disassembling a model personal computer. In the junior and senior high-school classes, an actual personal computer is disassembled with a screwdriver, and students are taught about manufacturers’ environmental efforts in an “environmental quiz” format. Students have told us that the courses have helped them to understand the importance of valuing natural resources and that they would like to put this into practice in their daily lives.

* 3R

Reduce, Reuse, and Recycle.

Hands-on PC disassembly “Uncle 3R” disassembles a PC

Regarding the Targets of the Stage V

Environmental Protection Program

We have positioned environmental contributions to society as one of the five critical areas in the Stage

V Environmental Protection Program. We will move forward with new activities in the three key activities described above.

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For the Environment

Eco-Friendly Products

We are accelerating the development of Green Products and Super Green Products and are working to reduce environmental burdens throughout the product life cycle.

Green and Super Green Product

Development

The Fujitsu Group has adopted a unified Group-wide approach to eco-design for newly designed products and strives to improve environmental performance throughout the product life cycle. We have been implementing our own environmental assessments for products since 1993, and we develop eco-friendly products that reflect environmental considerations in such areas as energy saving, 3R design,* non-use of hazardous chemical substances, packing materials, and information disclosure.

In 1998, to further strengthen development of eco-friendly products, we established Green Product Evaluation Standards and positioned the products that satisfy them as Green Products.

Then, in fiscal 2004, we combined what had previously been two separate sets of regulations—for product environmental assessment and for Green Product evaluation— into a single set of standards with even higher levels of consideration for the environment. We called these Product

Environmental Green Assessment Regulations, and they have helped to both strengthen our Green Product development efforts and make them more efficient.

Furthermore, since fiscal 2004, we have been working on what we call “Super Green Product” development for newly developed products. Super Green Products are those that meet the required conditions for Green Products and are also top class in terms of low energy consumption and/or 3R design and technology, non-use of hazardous substances, packing materials and use of eco-friendly materials and technologies.

Super Green Products are products or systems with superior environmental characteristics than others we supply or are available on the market.

In fiscal 2006 we offered Super Green products in 21 product categories, and in the three-year period from fiscal

2004 through fiscal 2006, which was the activity period for the Stage IV Environmental Protection Program, we provided

Super Green products in 54 product categories.

* 3R design

Design based on the principles of reduce, reuse and recycle

Mechanism for Green and Super Green Product Evaluation

STEP 1

Carry out Product

Environmental

Assessment

STEP 2

Carry out Green

Product Evaluation

STEP 3

Carry out evaluation based on Super Green

Product definition

Must score 90+ total evaluation points

Environmental features satisfy the Super Green

Product definition

Super Green Product

(product with superior environmental consideration)

Green Product

(product with enhanced environmental consideration)

All evaluation criteria satisfied

Connector cover

(FMV-S8240) made from bio-plastic

Super Green Product Development Achievements

Fujitsu Limited (15 product categories)

• Notebook personal computers: FMV-BIBLO NX95U/D,

FMV-BIBLO NX95T/D, FMV-BIBLO NB 80S

• Access system for optical LANs: FLASHWAVE 7500

Release 4.x

• Broadband video solution: Broadsight IP-9500 real-time video transmission unit

• Desktop personal computers: FMV-ESPRIMO,

FMV-K5230

• IP telephones: IP Pathfinder/CL Series

• LCD displays: 17-inch (VL-17H1) and 20-inch wide format (VL-20WH1, VL-20WH1T)

• PC server: PRIMERGY TX120 compact server

• Network servers: IPCOM EX1000, EX1200, EX2000

• Storage disk arrays: ETERNUS 8000 disk array (models

900 and higher)

• Storage tape products: ETERNUS LT270 tape library

• Mobile phone: FOMA F902iS

• LSI device: MB93475

Consolidated subsidiaries and affiliates (6 product categories)

• Digital multiplex wireless equipment: FRX CCC unit

(Fujitsu Wireless Systems, Ltd.)

• Electronic components: UWB flexible antenna (Fujitsu

Component, Ltd.)

• Capacitors: FPCAP ML Series (Fujitsu Media

Devices, Ltd.)

• Bluetooth module: MBH7BTZ24 (Fujitsu Media

Devices, Ltd.)

• High-frequency laminated chip inductors: AML0603E

Series (FDK, Ltd.)

• Automated teller machine: FACT-V Model 20 (Fujitsu

Frontech, Ltd.)

Development of Bio-Based Plastics

Fujitsu and Fujitsu Laboratories, Ltd. have been researching bio-based materials and developed polylactate-based plastic with good flame resistance, heat resistance, impact resistance, and formability properties. This material has been used in certain Fujitsu notebook PCs since 2002.

Furthermore, in 2006, in cooperation with the French company Arkema, Inc., we developed a new bio-plastic using castor oil extracted from castor beans that has a level of flexibility unknown in earlier polylactate plastics.

We are using this material in certain components for our notebook PCs.

Castor beans

39

2007 FUJITSU GROUP SUSTAINABILITY REPORT

For the Environment

Management of the Restricted chemical substances in products

In compliance with Japanese and international laws and regulations, we have specified Banned Substances and Control

Substances in Products. And through our Green Procurement activities we are working to eliminate use of these specified substances. From April 2006 we have begun shipping products that do not contain Fujitsu Group-specified Banned

Substances in products.

In fiscal 2006 we worked meticulously on chemical substances management in all processes, from design through product shipment, to comply with European RoHS directive *

1

,

China RoHS * 2 , and so on.

*1 RoHS directive

Restriction of the use of certain hazardous substances in electrical and electric equipment

*2 China RoHS

Regulations that limit use of certain hazardous substances included in electronic and information equipment (currently limited to display of such contents).

Framework for RoHS Directive Compliance

Fujitsu

Environmental

Affairs Unit

Decision on legal compliance

4. Verification of legal compliance

Procurement

Unit

1. Request that a

substance be

eliminated

2. Proof of compliance

Product

Divisions

6. Acceptance inspection

Delivery

3. Supplier monitoring

Shipment

8. Shipment

decision

meeting

9. Shipment

confirmation

7. Periodic inspections of

internal manufacturing

plants

Quality Assurance Unit

5. Confirmation

Carrying out Life Cycle Assessments

We carry out life cycle assessments (LCA) to evaluate Green

Products and Super Green Products. LCA enables us to perform a finely detailed analysis of a product’s environmental impact, such as determining whether the product generates proportionally higher environmental burdens in the materials procurement or manufacturing stages, or whether the product consumes large amounts of energy during use. This detailed grasp of environmental impact characteristics allows us to effectively design even more eco-friendly products.

Disclosure of Environmental Information on Products

We actively disclose environmental information on our products, both via the Internet and in the form of environmental labels.

At the end of fiscal 2006, we started registering notebook personal computers under the EPEAT *

1

system, which encourages the purchase of green PCs and is used chiefly by

US government bodies.

In Japan, environmental information on electronic computers, magnetic disk drives, displays, printers, and scanners that are covered by green purchasing laws * 2 are listed on the Ministry of the Environment’s web site *

3

.

*1 EPEAT web site

http://www.epeat.net/

*2 Green purchase laws

Laws related to promoting the purchase of eco-friendly goods and products by the country or other parties.

*3 Ministry of the Environment web site

http://www.env.go.jp/en/laws/policy/green/index.html

Regarding the Targets of the Stage V

Environmental Protection Program

Increasing the Number of Super Green Products

Targeting in particular the Green Products being newly developed in all business units, by the end of fiscal 2009 we aim to increase to over 20% the proportion of products that are Super Green Products with top-class environmental characteristics in areas such as energy savings, 3R design and technology, chemical substances, and eco-friendly materials and technologies. In so doing, we will strive to further strengthen our eco-friendly product development capability and enhance differentiation of our products in terms of consideration for the environment.

Achieving the Target Environmental

Efficiency Factor

We assess the increase in product value and reduction in environmental burden over the product life cycle as an environmental efficiency factor*. Along with promoting the environmental performance of our products, we continually strive to improve this factor. In particular, for newly developed Green

Products in all business units, by fiscal 2009 we aim to achieve an environmental efficiency factor of “2”

(i.e., twice the environmental efficiency) relative to products in fiscal 2005.

Environmental efficiency factor

Improvements in basic product specifications

Environmental efficiency

Value of products and services

Environmental burden of products and services

Reducing CO

2

emissions over the product life cycle

Improved value

Reduced environmental burden

*Environmental efficiency factor

Comparison of environmental efficiency of the product in question with that of a reference product.

Factor = (environmental efficiency of the product in question)

÷ (environmental efficiency of the reference product)

2007 FUJITSU GROUP SUSTAINABILITY REPORT

40

For the Environment

Eco-Friendly Products

Super Green Product Development Examples

PC server: PRIMERGY TX120 compact server

Broadband video solution:

Broadsight IP-9500 real-time video transmission unit

Capacitors: FPCAP ML Series

3R

design

Energy Savings

Power consumption was reduced by

39% compared to earlier products.

3R Design Technologies

Product size (volume) was reduced to

1/4, installation area was reduced to

1/3, and weight reduced to 1/3 that of earlier products.

Environmental Efficiency

Environmental burden was reduced by

37% compared to earlier products and

CPU performance, which is a key element of the product’s value, was improved by a factor of 4.1. These improvements resulted in an environmental efficiency factor of 6.5 for the product.

Notebook PC:

FMV-BIBLO NX95U / D

Energy Savings

Image quality was maintained, video transfer circuit efficiency doubled, and power consumption reduced by 14% compared with previous products.

Digital multiplex wireless equipment: FRX CCC unit

Eco-Friendly Materials

Bio-based plastic was adopted in parts used in the product chasis

(lower cover, hard disk drive cover, memory module cover).

Network server:

IPCOM EX200

3R

design

3R Design Technologies

Low ESR and ESL enabled the number of devices previously required to be reduced by up to 90%. The products feature top-class levels of reliability and humidity resistance

(guaranteed for 1,000 hours at 85%

RH and 85 degrees C).

High-frequency laminated chip inductors: AML0603E Series

3R

design

3R Design Technologies

Product size (volume) per unit performance was reduced by 50% compared to earlier products. A configuration with 16 systems (16 units each with a data transfer rate of 155.52

Mb/s) can be housed in a single rack compared to the two racks required for the same configuration under the previous ETSI standard.

Automated teller machine:

FACT-V Model 20

Energy Savings

These inductors achieve the industry’s highest Q value * , and thus achieve an energy consumption efficiency improvement of up to about 30% compared to earlier products.

* Q value

A value that expresses the quality

(sharpness of the resonance) of an inductor (coil). Performance indices such as phase noise and power consumption improve with higher values of Q.

Electronic components:

UWB flexible antenna

Energy Savings

Power consumption per unit was reduced by 57% compared to earlier products.

Chemical Substances

In conformance with the RoHS prohibition on the use of lead, lead-free manufacturing was adopted

(except for the IX121GS2 option).

3R

design

Eco-Friendly Materials

Bio-based plastic was adopted for parts used in the product housing.

Powder coating technology was used for the first time in the ATM industry.

3R Design Technologies

Recyclable plastics were used for the molded parts of the case (with certain exceptions).

3R

design

3R Design Technologies

Product volume has been reduced by

87.5% compared to earlier products.

These are the industry’s smallest

UWB flexible antennas.

41

2007 FUJITSU GROUP SUSTAINABILITY REPORT

For the Environment

Environmental Solutions

Developing and providing a wide variety of environmental solutions that support environmental management and reduce environmental burdens.

Environmentally Conscious Solutions

The effective use of IT promises to reduce environmental burdens in daily life, industry and society as a whole by saving resources and energy. From this perspective, the

Fujitsu Group provides quantitative evaluation of the reduction in environmental burdens effected by the use of particular software or IT services (IT solution products), and develops and provides Environmentally Conscious Solutions that contribute to the reduction of environmental burdens for customers adopting them. These use methods that identify the particular reductions in factors responsible for burdens on the environment, such as the amount of materials consumed and the movements of people, etc., to determine the IT solution’s environmental contribution. When such reductions amount to at least 15% in terms of the CO

2

equivalent, we identify the product as an “Environmentally Conscious Solution.” By the end of fiscal 2006, we were offering customers a total of 82 such designated solutions covering a wide range of operations and industries.

Sharing our thinking and environmental burden assessment methodology from our experience in environmentally conscious solution certification activities, we participated in the Ministry of Internal Affairs and Communications’

Study Group on ICT Systems and Networks Contributing to

Reduced Environmental Burdens.

WEB

Environmentally Conscious Solutions http://www.fujitsu.com/global/about/environment/activity/esolutions.html

Regarding the Targets of the Stage V

Environmental Protection Program

We will extend the application of Environmentally

Conscious Solutions wherever it promises major reductions in environmental burdens, including for priority products, and in systems integration as well as data-center and other outsourcing business, thereby expanding our lineup of IT solutions that reduce customers’ environmental burdens. We will also actively provide our customers with information on the burden reduction effects achievable by these solutions.

Applicable Range of Environmentally

Conscious Solutions

Packages

Systems

Integration

Operations/

Outsourcing

Stage

IV

Apply to all 30 categories

(82 products)

Apply selectively Apply selectively

Stage

V

Expand certification to priority products

Expand application in SI construction, operations and outsourcing

Applicable Range of Environmentally Conscious Solutions

Environmental Business Solutions

To contribute to a sustainable world, the Fujitsu Group supports customers’ environmental operations through the provision of various Environmental Business Solutions based on the know-how we have acquired in our previous environmental activities. Along with helping customers to reduce their environmental burdens, we support effective environmental management of corporate activity, which has become a new source of competitive strength, and administration of local environmental protection projects and communications.

Integrated Environmental Database Solution for

Enhanced Visibility

The environmental management that is required of today’s enterprises is becoming ever more complex and far-reaching.

To render visible the full variety of environmental data existing within the enterprise, we have developed

Integrated Environmental Database Visualization Solutions that provide consolidated management. By “integrated environmental database” we mean a database using XML to enable flexible lateral links between scattered existing environmental information systems.

If all the environmental information within an enterprise can be rendered visible, not only can a wide range of environmental operations be performed more efficiently but also analysis can be carried out from a number of different perspectives, aiding in the speedy identification of environmental management issues and the development and implementation of measures to resolve them.

In a world where the conditions and regulations affecting the environment are undergoing successive changes, it is increasingly becoming impossible for a fixed information system to provide the support needed for enterprise environmental management. It is here that the integrated environmental database, with its consolidated management of loosely linked environmental information, functions as practical on-site tool and helps control the burgeoning investments required to configure large-scale environmental information systems.

Green procurement Design support Reducing CO

2

Visualization

LCA

Integrated

Environmental

Database

RDB data

XML data product materials of energy usage

Purchase design components

Basic operations

Acquire Accumulate

Office data

Connect

Waste

Amount of energy usage

Environmental activities reports

2007 FUJITSU GROUP SUSTAINABILITY REPORT

42

For the Environment

Promoting Product Recycling

Advancing collection and materials recycling of end-of-life IT products to help promoting a recycling-minded society.

Establishing Recycling Systems

Outside Japan

The Fujitsu Group, aware of its responsibilities as a producer of end-of-life IT products, commenced the recycling of IT equipment for business customers within Japan in 1995, before it was legally required, and has been active in product recycling ever since. Outside Japan, as well as complying the recycling laws of each nation and region in which we do business, we committed to establishing recycling systems in

North America and Asia as one of the targets of our Stage IV

Environmental Protection Program.

As a result, as of June 2007, we have initiated IT product recycling services in the United States, Canada, Australia, the

Philippines, and Singapore, and we plan to launch recycling services in Thailand starting in October 2007.

We have selected and contracted with recycling partners in accordance with in-house guidelines based on our own experience as well as with guidelines from governments of several countries. This system enables us to offer appropriate collection and recycling service for end-of-life products with our recycling partners.

As an example of our efforts, Fujitsu Australia Ltd. started a recycling service for IT products in April 2006, and to date it has recycled some 250 tons of end-of-life POS systems from major Australian retailers. Fujitsu Philippines, Inc. operated a pilot project that, between July 2006 and February 2007, recycled 27 tons of electronic waste from its affiliates and their customers, before officially launching a recycling service for IT products in May 2007.

Recycling Services

Fujitsu Computer Systems and the

Global Environment

Fujitsu Computer Systems Corp. (FCS) offers a wide range of computing hardware, software products and services in North America. Our environmental management system is responsive and linked with the Fujitsu Group ISO 14001 EMS and we efficiently manage environmental issues under our ISO 9001 quality management system.

Great care is taken to keep our activities and the products we provide environmentally sound. Three areas of particular attention are product recycling, responsible waste management & recycling, and energy efficiency.

We have successfully reduced energy usage and recycle almost all waste from our corporate headquarters and customer support centers. Our environment team meets bi-weekly to ensure full compliance with state and federal government requirements. In FY2006, the team instituted a battery recycling program and registered with EPEAT to meet compliance requirements on government bids. In April 2007, the team launched a

Product Takeback program.

How we impact the environment is very important to us and to our customers. FCS views environmental considerations as an integral part of FCS' business practices and continually strives to reduce the environmental impact of the products we provide and the way we run our business.

Promoting Recovery and Recycling of Endof-Life IT Products in Japan

As an enterprise with official designation for wide-area industrial waste disposal in Japan, Fujitsu has developed a nationwide recycling system and engages in various kinds of contracts for accepting industrial waste for appropriate processing throughout Japan. This system provides for rigorous traceability and security, and achieves over 90% reuse of resources. By providing this safe and secure service, we are fully discharging our Extended Producer Responsibility.

Also, by an arrangement with Japan Post, we operate a common industry-wide recycling system whereby consumers can use post offices anywhere in Japan to dispatch their endof-life PCs for recovery and recycling.

Countries with recycling legislation in place

Countries in which Fujitsu voluntarily provides recycling services

* Services will begin in Thailand in October 2007

* Recycling services in South Africa is handled by Fujitsu

Siemens Computers

43

2007 FUJITSU GROUP SUSTAINABILITY REPORT

For the Environment

Locations of Fujitsu Recycling Centers

Affiliate and partner companies operate Fujitsu Recycling

Centers at six locations, while 28 companies are under contract to provide collection and transportation services, forming a system of nationwide scale. From April 2007, affiliated recycling centers were also established in three cities of Hokkaido, the Hokuriku region and Okinawa, improving customer convenience.

Fujitsu Recycling Centers throughout Japan

:Fujitsu Recycling Center

:Affiliated Recycling Center

Fujitsu Chubu Area Recycling Center

(FDK Ecotec)

Fujitsu West Japan Recycling Center

(Fujitsu Peripherals Limited)

Fujitsu Kyushu Recycling Center

(ECHO Electronic Industry Co., Ltd.)

Okinawa

Sapporo

Kanazawa

Fujitsu East Japan

Recycling Center

(FIT Frontier)

Fujitsu Metropolitan Area

Sagamihara Recycling Center

(Fujitsu Kasei Ltd.)

Fujitsu Metropolitan Area

Ayase Recycling Center

(PFU Life Business)

Achievements in Recycling

In fiscal 2006 we collected 10,470 tons of end-of-life

IT products from our corporate customers in Japan, and achieved a resource reuse and recycling rate * of 91.5%, thereby meeting the target set in the Stage IV Environmental

Protection Program.

In collection and materials recycling of end-of-life PCs from individual customers, we achieved a major increase in the numbers of notebook PCs and LCD monitors processed, which totaled 70,005 units.

* Resource reuse and recycling rate

The ratio of reused parts and reused resources to the processed amount of business-use end-of-life IT products by weight.

Trends in Collection Volume and Materials Recycling

Rate of Post-use IT Products for Business

Collection volume

(tons)

16,000

12,000

84.1

12,380

Recycling rate

86.6

12,172

88.3

14,070

90.3

10,386

8,000

91.5

10,470

(%)

100

75

50

4,000

0

FY 2002 FY 2003 FY 2004 FY 2005 FY 2006

25

0

Steady Implementation of Proper Processing

We apply consistent processing standards at all our recycling centers throughout Japan. Materials are disassembled by hand and sorted into iron, copper, aluminum, precious metals, glass,

20 kinds of plastic, and more, reducing residual waste to the absolute minimum and enabling the usable resources to again be used to manufacture various products.

Security System

The recycling process is susceptible to many different risks, but double and triple security measures ensure that it is carried out in a safe and secure manner.

Integrated Recycling Information

Management System

The recovered products are affixed with barcodes, and the entire recycling process can be monitored and controlled using a Web browser all the way from initial acceptance, through disassembly, to final processing, helping to prevent both theft and illegal dumping.

Security Camera Monitoring System

Each area of the recycling center is continuously monitored by security cameras to confirm storage and processing status of the accepted products.

Regarding the Targets of the Stage V

Environmental Protection Program

The program sets a new objective for product recycling activities. By the end of fiscal 2009 we aim to increase the resource reuse volume of recovered end-of-life

IT products by 15% compared to fiscal 2006, while maintaining the resource reuse and recycling rate of at least 90% specified in the Stage IV program.

Globalization of Product Recycling

By working to extend the scope of our recycling and resource reuse activities from business-related

IT products in Japan to consumer-use PCs as well as IT products overseas, we intend to continue reducing environmental burdens and help form a recycling-minded society.

* The volume of material recovered from end-of-life products that is processed for reuse or converted into recyclable material.

2007 FUJITSU GROUP SUSTAINABILITY REPORT

44

For the Environment

Global Warming Countermeasures

We are working to prevent global warming throughout all areas of our business activities.

Our Approach to Global Warming Prevention

We are working in all areas of our business activity to prevent global warming. These efforts include not only reducing emissions of CO

2

due to energy consumption and other greenhouse gases at our factories and offices and reducing emissions associated with transportation, but also developing products that achieve energy savings when used and providing solutions that help reduce emissions of CO

2

by our customers and society in general.

Reducing Greenhouse Gas Emissions

Associated with Manufacturing

In our Stage IV Environmental Protection Program, we established the goal of reducing annual CO

2

emissions from energy consumption to under fiscal 1990 levels by the end of fiscal 2010 and, as an intermediary goal, of reducing emissions to 15% below fiscal 2000 levels by the end of fiscal

2006. We implemented the following energy-saving measures.

• Energy-saving measures for equipment with a focus on motive power facilities (introduction of free cooling, inverters, energysaving facilities, fuel conversion, etc.)

• Increased efficiencies through revised manufacturing processes, accompanied by proper motive-power facility operation and improvement of management

• Proper settings for office air conditioning, energy saved with lighting and office automation equipment

As a result of these efforts, CO

2

emissions due to energy consumption in fiscal 2006 were about 1.149 million tons-CO

2

for the entire Group (operations within Japan:

971,000 tons, Fujitsu Limited: 652,000 tons). Although there was an increase from the previous fiscal year of 39,000 tons due to increased production of semiconductor products, the total corresponded to a 29% reduction from fiscal 2000. Thus we achieved the Stage IV target for fiscal 2006. Note that this is 6.1% above the fiscal 1990 level.

CO

2

Emissions Related to Energy Consumption

(Fujitsu Group Totals)

(1,000 tons)

2,000

1,500

1,000

1,083

(1,035)

1,611

(1,366)

1,590

(1,354)

1,538

(1,367)

Target: 15% decrease

1,287

(1,126)

1,281

(1,097) 1,110

(936)

Reference level

1,149

(971)

Target:

Below the level of

FY1990

500

0

FY

1990

FY

2000

FY

2001

FY

2002

FY

2003

FY

2004

FY

2005

* Figures in parentheses are emissions for Japan only.

FY

2006

FY

2010 (Target)

Reducing CO

2

Emissions by Boiler-Fuel Conversion

Affiliate Shinko Electric Industries Co., Ltd., switched boiler fuel from heavy oil to natural gas, which has lower

CO

2

emissions. At the same time, it also updated the equipment to more efficient models (using a system that controls the number of units operating according to the load with multiple miniature through-flow boilers). This was implemented in FY 2005 and 2006 at the company’s

Arai Plant Boiler Installation

Arai, Kyogase, and Wakaho plants, and CO

2

emissions due to boiler operation were reduced by about 30%, which corresponds to about 10% of the total emission for the three locations.

Cutting Emissions of Greenhouse Gases Other than CO

2

The semiconductor industry has established a voluntary action plan to cut the emissions of PFC, HFC and SF6, which are all greenhouse gases.

We have set a target of reducing emissions of greenhouse gasses other than CO

2

to 10% below the fiscal 1995 level by the end of fiscal 2010. Our Electronic Devices units are continuing to change over to gases with lower global warming potential as well as to install equipment to extract such gases on new manufacturing lines.

Converted to Global Warming Potential (GWP) figures, these gas emissions corresponded to about 381,000 CO

2 equivalent tons in fiscal 2006. Although there are differences in our scale of production and manufacturing processes, this represents a 47.1% increase from fiscal 1995.

Emissions of Greenhouse Gases other than CO

2

(Total for Electronic Devices)

(1,000 tons)

600

577

544

564

468

475

488

450

300 259

381

Target:

10% decrease

Reference level

150

0

FY

1990

FY

2000

FY

2001

FY

2002

FY

2003

FY

2004

FY

2005

FY

2006

FY

2010

(Target)

Reducing CO

2

Emissions Due to Transport

With the cooperation and assistance of our manufacturing and sales divisions, our logistics divisions are taking the lead in efforts (called “Green Logistics Activities”) to promote the reduction of CO

2

emissions associated with transport.

In addition, in line with Japan’s Revised Energy

Conservation Law, which came into effect in April 2006, we

45

2007 FUJITSU GROUP SUSTAINABILITY REPORT

For the Environment are currently strengthening such efforts throughout the Group in Japan. Our CO

2

emissions associated with logistics for fiscal 2006 were 30,755 tons.

Accurate Determination of CO

2

Emissions

Associated with Amounts Transported (Ton-Kilometers

Transported) and Transportation in Japan

Since April 2006, we have been working with our transport contractors to determine the monthly amounts transported

(ton-kilometers transported) for each transport mode and have provided a mechanism for calculating CO

2

emissions that conforms to Japan’s Revised Energy Conservation Law.

* In conformance with Japan’s Revised Energy Conservation Law, the range that is the object of these CO

2

emissions calculations is the range over which freight owned by Fujitsu is transported.

Expansion of Our Modal Shift Program

We are expanding our use of rail transport, which we previously used mainly for corporate customer PCs, to other products as well. In fiscal 2006, we expanded this modal shift to transport of maintenance parts between Tokyo and Osaka and transporting cell-phone products to certain areas. We have increased our use of rail transport (on a ton-kilometers transported basis) by some 70% over 2005. This has resulted in about a 250-ton reduction in CO

2

emissions.

Reducing the Number of Trucks

We are reducing the number of trucks used in transport between sites and in deliveries to customers by increasing the loading ratio. In fiscal 2006, in transporting products for transport to overseas customers, we cut the number of trucks used roughly in half by switching from individual trips to multi-destination route deliveries for transportation at export products to the multiple forwarder * -specified warehouses.

Combined with an improved loading ratio for domestic shipments, this resulted in a reduction of about 280 tons in

CO

2

emissions.

* Forwarder

Contract shipper for export shipments

Implementing Green Logistics Partnership

Model Projects

Our CO

2

reduction efforts based on uniform concentrated vehicle assignment control from parts procurement to product transport was certified as a Green Logistics partnership model project for fiscal 2006 and started operation in February 2007.

In this project, sales companies, parts suppliers, cargo-owning

Group companies, and transport contractors are all linked in a model that covers the whole supply chain, from parts procurement through product shipments and recovery. Their collective efforts helped reduce CO

2

emissions by some 300 tons (on an annual basis) from 2006 to 2007. This operation included the following specific aspects.

• Implementing joint transport and delivery through consolidated vehicle assignment control

We implemented optimal vehicle assignment by assembling the freight information for multiple freight-owner companies, converting the data formats that differed for each company, implementing a consolidated vehicle assignment controlsupport system, and unifying data management. As the first step, for the Tokyo metropolitan area, where the transport volumes are large, we started both joint transportation of shipments to customers and joint transportation of repair and returned items and procured parts to manufacturing sites.

• Consolidation of Tokyo Area Distribution Centers

In parallel with construction of the system infrastructure, we have consolidated five formerly dispersed locations to three centers, thus creating an environment in which even more joint transport will be possible.

• Construction of a CO

2

Emissions Calculation Tool

As part of our response to Japan’s Revised Energy

Conservation Law, we collected data from Fujitsumanufactured onboard terminals used in some of our transport contactors’ vehicles and constructed a tool that accurately calculates the volume transported and the CO

2 emissions per freight owner during joint transport operations.

Installation of these onboard terminals is also helping to improve fuel efficiency.

Regarding the Targets of the Stage V

Environmental Protection Program

Reducing Emissions of Energy Consumption-Related

CO

2

and Greenhouse Gases other than CO

2

We are committed to continuing with our earlier fiscal

2010 target for reducing energy consumption-related

CO

2

emissions at our domestic business locations, and are working to achieve that goal. Globally, we have set new CO

2

emissions per unit sales (unit of output indicator) reduction targets and are working to improve efficiency.

Although we expect increased emissions of CO

2 and other greenhouse gases due to expanding business in the future, the entire Fujitsu Group is working together to achieve our targets.

Reducing Transport-Related CO

2

Emissions

In Japan, we are aiming at achieving our goal of a

30% reduction in CO

2

emissions associated with transport compared to fiscal 2000 by the end of fiscal

2010 by expanding our efforts to date, including further expansion and additional deployments of modal shift and improvements in load efficiency.

2007 FUJITSU GROUP SUSTAINABILITY REPORT

46

For the Environment

Reducing the Environmental Burden of Factories and Business Offices

Advancing eco-friendly manufacturing through comprehensive environmental protection activities in our factories.

Activities to Reduce Environmental Burdens at Factories and Business Offices

We are engaged in activities to reduce the amounts of materials and energy used in our business activities, to reduce chemical substances, waste, and air-polluting substances generated by our business activities, and to minimize our manufacturing costs.

We are also making comprehensive efforts to fully comply with laws and regulations and to prevent environmental risks from materializing.

Promoting Green Process Activities in

Manufacturing Processes

Our Green Process activities are intended to save energy and reduce the amounts of chemical substances used and waste produced in manufacturing processes. In a Green Process activity, we strive to reduce the environmental burden

(waste, chemical substance emissions, energy usage) of a manufacturing process by optimizing (and reducing costs) of raw material inputs, chemical substance usage, energy usage, and other aspects, and/or switching to alternatives with lower environmental burdens.

In these activities, we first assign an environmental burden index (CG index * 1 ), an originally developed method, as a yardstick for determining priorities and target values for specific materials, chemical substances, and energy used in the manufacturing process, and then apply the PDCA cycle (plan, do, check, act) to guide activities each quarter. These diverse efforts range from reviewing manufacturing technologies and particular processes to daily improvements from the workers themselves. In fiscal 2006, in addition to continuing previous initiatives, we promoted activities to deepen collaboration with our manufacturing innovation activities * 2 .

*1 CG index

Original to the Fujitsu Group, this index describes the product of input volume used per product, the cost, and the environmental impact (on a scale from 1 to 10).

*2 Manufacturing innovation activities

We have been engaged in Group-wide manufacturing innovation activities based on introducing and deploying the Toyota Production

System since 2003.

Reductions in Power Consumption by

Reviewing and Revising Testing Processes

(CG index: 18% reduction)

Fujitsu IT Products, Ltd. manufactures and ships servers, storage equipment, image scanners, and other products.

The company has set a goal of reducing its environmental burden through implementing Green Process activities and, as one such effort, it has reviewed and revised its testing processes for storage products. While the company had previously tested the structural components (hard disks, control units) of storage products individually before assembling to the customer’s required configuration, as a result of this review it was able to perform the testing after assembling the structural components in functional blocks

(in coordination with manufacturing innovation activities) and reduced power usage by 18% per month. As a result, the per month CG value was reduced by 18% and costs were similarly reduced by 18%.

47

2007 FUJITSU GROUP SUSTAINABILITY REPORT

Approach to Chemical Substances

Management Policies

We have established “Prevention of environmental risks that could lead to environmental pollution or adverse health effects due to the use of harmful chemical substances” as our basic policy for chemical substances management, and we work to reduce the amount discharged and implement appropriate management at every business site.

In fiscal 2006, we strengthened the functions of an existing chemical substances management system and increased the efficiency of our chemical substances registration and management operations.

Fiscal 2006 Performance

In the Stage IV Environmental Protection Program, we established the goal of reducing by fiscal 2006 the amount of chemical substances discharged from our factories by 15% compared to fiscal 2001, but we achieved that goal ahead of plan, in fiscal 2004.

In addition to strengthening the proper management of chemical substances that are subject to the PRTR Law and reviewing our manufacturing processes, in fiscal 2006 we implemented a variety of measures to reduce chemical discharge by our semiconductor factories, including installing organic solvent recovery equipment. As a result, the total amount of PRTR chemical substances discharged by the

Fujitsu Group in fiscal 2006 fell to 47.3 tons, a 53% reduction from fiscal 2001 levels.

PRTR Law Chemical Discharge Amounts

(tons)

120

Group companies (Japan, overseas)

100

80

60

40

100.4

66.8

Fujitsu Limited

Reference level

Target: 15% reduction

74.8

44.1

68.3

35.4

52.1

21.7

47.5

20.7

47.3

24.5

20 33.6

30.7

32.9

30.4

26.8

22.8

0

FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006

Reducing the Amount of Waste Generated

In working towards creating a recycling-minded society, we have adopted a basic 3R policy (reduce, reuse and recycle) and in aiming for an even higher level of 3R achievement, we encourage all our employees to separate waste materials into different categories for more effective recycling.

For the Environment

Fiscal 2006 Performance

In the Stage IV Environmental Protection Program, we set the goal of reducing the amount of waste generated by our business operations by 3% compared to fiscal 2003 levels by the end of fiscal 2006.

The total amount of waste generated by the Fujitsu Group came to 29,845 tons in fiscal 2006. This was a 41% reduction from fiscal 2003, achieving the goal of the Stage IV program.

While assigning monetary values to both paper and inorganic sludge contributed to this achievement, business restructuring was also a large factor.

Still, if we compare our fiscal 2006 performance to that of the previous fiscal year, we see that there was a 3% increase due to increased production at our semiconductor plants.

Amounts of Waste Generated

(tons)

55,000

50,873 50,120

45,000

Reference level

35,000

28,821

Target: 3% reduction

29,845

25,000

0

FY 2003 FY 2004 FY 2005 FY 2006

* Statistics for 12 Fujitsu sites and 27 Group companies.

Progress towards Zero Waste Emissions* at Group

Companies in Japan

We are actively promoting zero emissions activities at our domestic Group companies. In fiscal 2003, Fujitsu Limited achieved zero emissions. In fiscal 2004, except for one business location, all Fujitsu Group companies in Japan achieved zero emissions, and this zero emissions status has continued ever since.

However, in addition to the single business location at which sewage treatment tank sludge became an issue in the previous fiscal year, this problem also arose at one other

Fujitsu site and two other group company sites. This was because we had to terminate the bio-processing that we had been performing at those facilities due to structural issues in treatment tank equipment required for compliance with water quality laws and regulations and other reasons. As a result, there were four business locations that were unable to achieve zero emissions in fiscal 2006. We are continuing to investigate means for achieving zero emissions of sewage treatment tank sludge at these business locations.

Except for the sewage treatment tank sludge problem described above, we achieved zero emissions at Fujitsu itself in fiscal 2003 and at domestic Group companies in fiscal

2004, and that state has been maintained.

* Zero waste emissions

Achieving 100% waste utilization, with none going to landfills or simple incineration.

Regarding the Targets of the Stage V

Environmental Protection Program

Applying the Green Factory and Green

Office System

As a practical manifestation of our Green Factories concept, we perform comprehensive evaluations of the level of eco-friendliness at our business locations and the state of our voluntary efforts, and we are also working to improve the visibility of these efforts. We have established the new target of achieving at least a two-star rating under our Green Factory / Green

Office system at all our business locations by the end of fiscal 2009.

This will be applied not only to our factories but also to our office divisions, and along with striving to achieve this certification level in the overall evaluation we will work to make further improvements.

Reducing Chemical Substances

We have established the goal of reducing annual discharge of 20 industry-specified volatile organic compound (VOC) substances to a level 30% below that of fiscal 2000 by the end of fiscal 2009, which is one year ahead of industry guidelines.

In moving towards achievement of this goal, we are continuing to reduce discharge volumes by efforts such as expanding the adoption of organic solvent recovery equipment at electronic devices factories and

Group companies, changing the cleaning processes used at other factories, and switching to substitute materials with lower toxicities.

Reducing Waste Generation

Continuing our efforts under the Stage IV

Environmental Protection Program, we are working to reduce the generation of waste even further. Our target values are based on fiscal 2005, in which there was minimal influence from business restructuring activities, and we have established the goal of reducing waste by 3% by the end of fiscal 2009. In moving towards achievement of this goal, we are investigating reducing fluorine-containing sludge and the in-house processing of liquid wastes (acid and alkaline wastes).

2007 FUJITSU GROUP SUSTAINABILITY REPORT

48

For the Environment

Soil and Groundwater Surveys and

Cleanup Measures

As well as strictly complying with laws, we have established internal company rules regarding soil and groundwater and are advancing voluntary efforts and actively disclosing relevant information.

Responding to Soil and Groundwater Pollution

We have reviewed our internal rules established in response to soil and groundwater problems in fiscal 2006 and established new rules concerning soil and groundwater surveys, policies, and disclosure. In future, as well as disclosing information in collaboration with government authorities based on these rules, we will perform planned surveys and implement cleanup operations if pollution is discovered.

Fiscal 2006 Soil and Groundwater Surveys and

Status of Response Measures

In fiscal 2006, we took the promotion of land sales plans at five business locations, the demolition of certain buildings, and other such events as opportunities to carry out soil and groundwater surveys and implement cleanup measures. The status of the surveys and response measures for each business location are listed below.

We also reported on pollution conditions and planned measures to residents in the vicinity of the former Minami Tama

Plant, Oyama Plant, Suzaka Plant, Shin-Etsu Fujitsu, Ltd., PFU

Limited, and Kamudokoro employee dormitory.

Oyama Plant (Oyama City, Tochigi Prefecture)

VOC and heavy metal pollution had been found in an earlier survey and we implemented continuous monitoring of groundwater as well as cleanup measures (including excavation and removal of insolubilized cyanogens). To study new measures, we also are carrying out surveys of soil and groundwater over the whole site.

• Tojyou Annex, Oyama Plant (Oyama City, Tochigi

Prefecture)

We completed excavation and removal of soil contaminated with incinerator ash.

• Suzaka Plant (Suzaka City, Nagano Prefecture)

VOC, heavy metal, pesticide and other soil contamination was found by a soil and groundwater survey associated with building demolition. Since PCB groundwater contamination was discovered, we performed groundwater surveys of wells downstream from the places where contamination was found, including downstream areas outside the plant site, and found no dispersal of the contamination. We will implement cleanup measures in the future for the places where contamination was found.

• Idle Land at PFU Limited’s Minami Hakui Site

(Hakui City, Ishikawa Prefecture)

We implemented a detailed survey in association with cleanup work for fluorine contamination and are carrying out cleanup measures that we started in January 2007.

• Fujitsu Gohchi Employee Dormitory (Kawasaki City,

Kanagawa Prefecture)

Since we found heavy metal soil contamination as a result of the soil and groundwater survey associated with dormitory demolition, we are now excavating and removing the contaminated soil. Contamination was not found in the groundwater survey.

Groundwater Conditions

This section lists the maximum of the latest chemical substance measurement values through the end of March

2007 for monitoring wells used to monitor the influence of groundwater contamination on areas outside business locations where soil or groundwater contamination has been found and where measurement values exceeded legal limits during fiscal 2006.

Business

Site

Name

Kawasaki

Main

Office

Former

Minami

Tama

Plant

Inagi City,

Tokyo

Oyama

Plant

Suzaka

Plant

Locations Cleanup Status

Kawasaki,

Kanagawa

Prefecture

VOC cleanup by pumping and aeration continues.

Maximum monitor well value

(mg/ )

Substance

Measured value

Regulated value

(mg/ ) cis-1,2-dichloroethylene

Arsenic

0.585

0.018

*1

0.04

0.01

Tetrachloroethylene 0.272

*2

0.01

Oyama

City,

Tochigi

Prefecture

Suzaka

City,

Nagano

Prefecture

Cleanup by insitu powdered iron mixture method for the whole site is in progress.

VOC cleanup by pumping and aeration continues, removal of heavy metals is in progress.

Cleanup measures have been implemented since June

2007.

cis-1,2-dichloroethylene

Trichloroethylene cis-1,2-dichloroethylene

Cyanogens

PCBs

0.574

1.917

6.24

0.2

*2

0.0012

0.04

0.03

0.04

Must not be detected

Must not be detected

Shin-

Etsu

Fujitsu,

Ltd.

Shinano machi,

Kamimino chiben,

Nagano

Prefecture

VOC cleanup by pumping and aeration continues cis-1,2-dichloroethylene 0.077

0.04

*1 With regard to the arsenic at the Kawasaki Main Office, since there is no history of usage of the substance in the vicinity of the monitor well at which the maximum value was detected, we are investigating whether it is of natural origin.

*2 At the former Minami Tama Plant, we have installed pumping wells at the current boundaries of the site and are implementing measures to prevent the spread of groundwater contamination outside the site.

At the same time, we are also implementing cleanup operations over the whole site. Since operation of the monitor wells was interrupted temporarily due to these operations, the values shown here are those that exceeded standards from last year’s report.

49

2007 FUJITSU GROUP SUSTAINABILITY REPORT

For the Environment For the Environment

Environmental Accounting

Understanding and evaluating the costs and benefits of effective environmental protection activities helps to identify problems and share best practices across the Group.

Fiscal 2006 Results

Fiscal 2006 was the last year of the Stage IV Environmental

Protection Program, and we vigorously carried out a comprehensive range of environmental protection activities to achieve the goals of that program. As a result, although facilities investments primarily related to pollution prevention costs increased by about 50% (1.22 billion yen) over the previous fiscal year, total costs fell by 1.2 billion yen due in part to a reduction of 1.24 billion yen in environmental remediation costs. Also, economic benefits associated with our environmental protection activities increased by

2.99 billion yen due in part to a large increase in resource circulation benefits.

Although environmental remediation costs fell significantly year on year in fiscal 2006 due, for example, to completion in fiscal 2005 of heavy metal-contaminated soil-removal operations at the Kawasaki Main Office, we expect costs to be incurred for appropriate measures at business locations where contamination has been or may yet be found in fiscal

2007 and later. While resource circulation costs associated with more active reuse of maintenance parts increased, the greater use of recycled products contributed to increasing the resource circulation benefit. The large increase in the resource circulation benefit, which was the principal factor in increasing the overall economic benefit, was due to the fact that proceeds from sales of unusable products by our electronic devices subsidiaries increased by about 50% in association with the rapid rise of prices in the rare metals markets.

Note that since fiscal 2006, we have been reviewing and revising the standards for our statistics on an aggregate basis, and that solutions business costs and benefits and social activity benefits of social contribution activities are excluded from such aggregation. Since these costs and benefits have had aggregate values that are smaller than the units with which values are displayed up until last year, they have no influence on the aggregate results based on this revision.

WEB

Environmental Accounting http://www.fujitsu.com/global/about/environment/accounting/

Trends in Costs and Economic Benefits

150

100

50

0

Estimated benefits *1

(100 million yen)

300

250

200

189

118

92

FY 2002

Actual benefits *2

190

131

108

FY 2003

179

105

121

FY 2004

Costs

179

114

131

FY 2005

105

167

170

FY 2006

*1 Estimated Benefits

These are benefits not directly presentable in monetary amounts but which have benefit that can be expressed in monetary terms under certain circumstances, for example, the contribution of environmental conservation activities to value added in manufacturing and savings from avoidance of business site operating losses that would arise from failure to observe environmental laws and regulations.

*2 Actual Benefits

These are benefits that can be directly declared in monetary amounts, like savings produced in the case of reductions in environmental conservation costs and income from the sale of unusable products.

Environmental Accounting

Item Main areas covered

Business area costs/benefits

Pollution prevention costs/ benefits

Global environmental conservation costs/benefits

Resource circulation costs/benefits

Upstream/downstream costs/benefits

Administration costs/benefits

R&D costs/benefits

Social activity costs

Environmental remediation costs/benefits

Preventing air pollution/water pollution, etc.

Preventing global warming, saving energy, etc.

Total

Disposal of waste, efficient utilization of resources, etc.

Collection, recycling, reuse, and proper disposal of products, etc.

Provision and operation of environmental management systems, environmental education of employees, etc.

Research and development on products that contribute to environmental protection, etc.

Donations to, and support for, environmental groups, etc.

Restoration and other measures related to soil and groundwater contamination

Capital investment

(100 million yen)

Costs

(100 million yen)

17.3 (+9.5)

10.0 (+0.1)

1.8 (-1.0)

2.8 (+1.9)

1.4 (+0.4)

3.1 (+1.0)

0.0 (±0.0)

0.2 (+0.2)

36.7 (+12.2)

52.6 (+1.5)

20.3 (-0.7)

33.9 (+4.0)

11.1 (+0.5)

28.7 (-3.1)

20.1 (-1.9)

0.2 (+0.1)

0.2 (-12.4)

167.1 (-12.0)

Economic benefit

(100 million yen)

81.9 (-7.6)

25.0 (+1.8)

136.0 (+39.0)

7.0 (-1.5)

6.0 (-1.0)

19.1 (+3.2)

0.0 (-4.0)

275.0 (+29.9)

• Numbers in parentheses indicate increases or decreases in comparison with the previous year.

• Due to rounding, figures in columns may not add up to the totals shown.

• See pages 51, 52 for details on the environmental performance index (environmental conservation benefits).

Related Pages

P47-48

P45-46

P47-48

P37, P43-44

P35-36

P39-41

P38

P49

2007 FUJITSU GROUP SUSTAINABILITY REPORT

50

For the Environment

Operating Activities and Environmental Burden

(Material Balance)

We promote environmentally friendly business activities through overall quantitative assessment of our environmental burden from the life cycle and supply chain standpoints.

Material Balance

INPUT

Raw Materials

• Metal

• Plastic

• Glass

• Others

41,936 tons

20,942 tons

2,533 tons

17,798 tons

Chemical Substances

1,900 tons

Water

24,749,150 m

3

Energy

Total25,110,000

GJ

• Electricity purchased

2,051,858

MWh

• Heavy oil, kerosene

78,476 k

• LPG, LNG

3,198 tons

• Natural gas, city gas

38,218,000 m

3

• District heating and cooling

44,243

GJ

Hardware

Products

Development/Design

We develop Green Products based on product environmental assessments considering both energy efficiency during use and post-use recyclability.

Procurement

We select product parts and materials with an eye to minimizing the environmental burden.

Manufacturing

We conduct resource- and energy-saving activities to minimize use of materials, energy and water resources; zero-emission activities to achieve zero landfill disposal and simple incineration; and activities to reduce chemical emissions.

Software &

Solutions

Planning and Design

We plan and design solutions that contribute to reductions in environmental burdens when the systems and services are introduced.

Procurement

We promote Green

Procurement to procure software and services from suppliers who give proper consideration to the environment.

Development

Along with working to reduce the environmental burdens of our business sites, we develop environmental business solutions and systems and services that contribute to reducing the environmental burdens of our customers and society in general.

OUTPUT

Raw Materials

• CO

2

discharge

944,841 tons-CO

2

Chemical Substances

47.3 tons

Atmospheric Release

• CO

2

• NOx

• SOx

1,149,000 tons-CO

2

2,541 tons

640 tons

Water Discharge

22,310,699 m

3

• BOD

• COD

202 tons

261 tons

• Greenhouse gasses other than CO

2

(e.g. PFC, HFC, SF6)

381,000 tons GWP

Waste

• Volume of waste generated

• Volume of thermal recycling

• Volume of material recycling

• Volume of waste disposal

29,845 tons

7,052 tons

20,408 tons

2,384 tons

Calculation Methods

Development / Chemical Substances

Planning & Design

Raw Materials

Procurement

Manufacturing /

Development

Energy

Water

INPUT

Volume of PRTR Law target chemicals handled by plants/sites in fiscal 2006

Material inputs to our major products * shipped in fiscal 2006

(raw materials per unit for each product times the number of units shipped in fiscal 2006)

* Major products: Personal computers, mobile phones, servers, workstations, storage systems, magnetic disk drives, MO drives, printers, scanners, financial terminals, retail terminals, routers, LAN access equipment, access network products, mobile phone base stations, and electronic devices.

Electricity, oil and gas consumed by plants/sites in fiscal 2006

Volume used by plants/sites in fiscal 2006

Distribution/ Energy

Sales

Usage Energy

Collection/Reuse/Recycling

Fuel consumption volume assuming that all CO

2

released during transportation is from light oil fuel.

(Conversion coefficient: 2.64 kg-CO

2

/liter light oil)

Electricity consumption by major products shipped in fiscal 2006

(Assumed hours of use per product x age-based electricity consumption x the number of units shipped in fiscal 2006)

The weight ratio of recycled parts and resources with respect to the processing volume of post-use products is calculated according to the method of the Japan Electronics and Information Technology Industries Association. It excludes collected waste other than post-use electronic products.

51

2007 FUJITSU GROUP SUSTAINABILITY REPORT

Energy

• Fuel (light oil)

11,650 k

Energy

• Electricity

(

10,144,741

MWh

99,720,000

GJ)

Resources recycling rate: 91.5%

Collection volume: 10,470 tons

Distribution/Sales

We strive to minimize the energy consumed in product transportation and delivery to customers, and to curb the volume of waste gases released into the atmosphere.

Usage

We strive for energy-saving products and encourage their long-term use by employing structures that permit performance and functional expansion and providing maintenance and repair support.

Collection/Reuse/Recycling

We work to curb energy consumption through activities promoting post-use product collection, reuse and recycling.

Disposal of some industrial waste in landfills is unavoidable, but we are promoting effective use.

Distribution/Sales

We work to reduce the volume of exhaust gases discharged into the atmosphere while reducing the amount of energy expended in transporting products and delivering them to customers.

Usage

We provide systems and services that contribute to reducing environmental burdens for customers and society.

Operation and Maintenance

We work to reduce the environmental burden imposed by our business sites.

Atmospheric Release

• CO

2

30,755 tons-CO

2

Atmospheric Release

• CO

2

4,128,910 tons-CO

2

Calculation Methods

Development / Raw

Planning & Materials

Design

OUTPUT

Material inputs to our major products* shipped in fiscal 2006

(per-unit volume of CO

2

emitted from mining the resource until it becomes a raw material for each product times the number of units shipped in fiscal 2006)

* Main products: Personal computers, mobile phones, servers, workstations, storage systems, magnetic disk drives, MO drives, printers, scanners, financial terminals, retail terminals, routers, LAN access equipment, access network products, mobile phone base stations, and electronic devices.

Procurement Chemical

Substances

Manufacturing /

Development

Atmospheric

Release

Water

Discharge

Waste

Measuring the concentrations of PRTR Law target chemicals discharged through plants’ drains and exhaust ports in fiscal 2006 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).

CO

2

: CO

2

discharge volume associated with energy consumption by plants/sites in fiscal 2006

(Energy consumption times CO

2

conversion factor)

NOx, SOx: Calculated from concentrations in gases discharged from vents (boilers, etc.) by plants/offices in fiscal 2006

Greenhouse gases other than CO

2

: Discharge volume of process gases used in semiconductor manufacturing in fiscal 2006.

(Calculated by formulas such as <volume of gas used> x <ratio consumed in reactions> x <detoxification ratio>)

Wastewater volume discharged by plants/sites into sewerage or rivers in fiscal 2006

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 removed by microbial 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 removed chemically by oxidation.

Volume of Waste Generated: The volume of waste disposal by plants/sites in fiscal 2006

Volume of Waste Disposal: The volume of landfill disposal and simple incineration by plants/sites in fiscal 2006

(including waste which is not a zero emission target)

Distribution/ Atmospheric

Sales

Usage

Release

The total CO

2

volume in fiscal 2006, including both fuel consumption by Fujitsu’s shipping business when measurable, and shipping distance x freight weight x coefficient when the freight of companies other than Fujitsu is included, as in mixed load transportation

Atmospheric

Release

The volume of CO

2

emissions during use of major products shipped in fiscal 2006

(Assumed hours of use per product, age-based CO

2

emissions x units shipped in fiscal 2006)

For the Environment

INPUT

Raw Materials

• Metal

• Plastic

• Glass

• Others

41,936 tons

20,942 tons

2,533 tons

17,798 tons

Chemical Substances

1,900 tons

Water

24,749,150 m

3

Energy

Total25,110,000

GJ

• Electricity purchased

2,051,858

MWh

• Heavy oil, kerosene

78,476 k

• LPG, LNG

3,198 tons

• Natural gas, city gas

38,218,000 m

3

• District heating and cooling

44,243

GJ

Hardware

Products

Development/Design

We develop Green Products based on product environmental assessments considering both energy efficiency during use and post-use recyclability.

Procurement

We select product parts and materials with an eye to minimizing the environmental burden.

Manufacturing

We conduct resource- and energy-saving activities to minimize use of materials, energy and water resources; zero-emission activities to achieve zero landfill disposal and simple incineration; and activities to reduce chemical emissions.

Software &

Solutions

Planning and Design

We plan and design solutions that contribute to reductions in environmental burdens when the systems and services are introduced.

Procurement

We promote Green

Procurement to procure software and services from suppliers who give proper consideration to the environment.

Development

Along with working to reduce the environmental burdens of our business sites, we develop environmental business solutions and systems and services that contribute to reducing the environmental burdens of our customers and society in general.

OUTPUT

Raw Materials

• CO

2

discharge

944,841 tons-CO

2

Chemical Substances

47.3 tons

Atmospheric Release

• CO

2

• NOx

• SOx

1,149,000 tons-CO

2

2,541 tons

640 tons

Water Discharge

22,310,699 m

3

• BOD

• COD

202 tons

261 tons

• Greenhouse gasses other than CO

2

(e.g. PFC, HFC, SF6)

381,000 tons GWP

Waste

• Volume of waste generated

• Volume of thermal recycling

• Volume of material recycling

• Volume of waste disposal

29,845 tons

7,052 tons

20,408 tons

2,384 tons

Calculation Methods

Development / Chemical Substances

Planning & Design

Raw Materials

Procurement

Manufacturing /

Development

Energy

Water

INPUT

Volume of PRTR Law target chemicals handled by plants/sites in fiscal 2006

Material inputs to our major products * shipped in fiscal 2006

(raw materials per unit for each product times the number of units shipped in fiscal 2006)

* Major products: Personal computers, mobile phones, servers, workstations, storage systems, magnetic disk drives, MO drives, printers, scanners, financial terminals, retail terminals, routers, LAN access equipment, access network products, mobile phone base stations, and electronic devices.

Electricity, oil and gas consumed by plants/sites in fiscal 2006

Volume used by plants/sites in fiscal 2006

Distribution/ Energy

Sales

Usage Energy

Collection/Reuse/Recycling

Fuel consumption volume assuming that all CO

2

released during transportation is from light oil fuel.

(Conversion coefficient: 2.64 kg-CO

2

/liter light oil)

Electricity consumption by major products shipped in fiscal 2006

(Assumed hours of use per product x age-based electricity consumption x the number of units shipped in fiscal 2006)

The weight ratio of recycled parts and resources with respect to the processing volume of post-use products is calculated according to the method of the Japan Electronics and Information Technology Industries Association. It excludes collected waste other than post-use electronic products.

Energy

• Fuel (light oil)

11,650 k

Energy

• Electricity

(

10,144,741

MWh

99,720,000

GJ)

Resources recycling rate: 91.5%

Collection volume: 10,470 tons

Distribution/Sales

We strive to minimize the energy consumed in product transportation and delivery to customers, and to curb the volume of waste gases released into the atmosphere.

Usage

We strive for energy-saving products and encourage their long-term use by employing structures that permit performance and functional expansion and providing maintenance and repair support.

Collection/Reuse/Recycling

We work to curb energy consumption through activities promoting post-use product collection, reuse and recycling.

Disposal of some industrial waste in landfills is unavoidable, but we are promoting effective use.

Distribution/Sales

We work to reduce the volume of exhaust gases discharged into the atmosphere while reducing the amount of energy expended in transporting products and delivering them to customers.

Usage

We provide systems and services that contribute to reducing environmental burdens for customers and society.

Operation and Maintenance

We work to reduce the environmental burden imposed by our business sites.

Atmospheric Release

• CO

2

30,755 tons-CO

2

Atmospheric Release

• CO

2

4,128,910 tons-CO

2

Calculation Methods

Development / Raw

Planning & Materials

Design

OUTPUT

Material inputs to our major products* shipped in fiscal 2006

(per-unit volume of CO

2

emitted from mining the resource until it becomes a raw material for each product times the number of units shipped in fiscal 2006)

* Main products: Personal computers, mobile phones, servers, workstations, storage systems, magnetic disk drives, MO drives, printers, scanners, financial terminals, retail terminals, routers, LAN access equipment, access network products, mobile phone base stations, and electronic devices.

Procurement Chemical

Substances

Manufacturing /

Development

Atmospheric

Release

Water

Discharge

Waste

Measuring the concentrations of PRTR Law target chemicals discharged through plants’ drains and exhaust ports in fiscal 2006 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).

CO

2

: CO

2

discharge volume associated with energy consumption by plants/sites in fiscal 2006

(Energy consumption times CO

2

conversion factor)

NOx, SOx: Calculated from concentrations in gases discharged from vents (boilers, etc.) by plants/offices in fiscal 2006

Greenhouse gases other than CO

2

: Discharge volume of process gases used in semiconductor manufacturing in fiscal 2006.

(Calculated by formulas such as <volume of gas used> x <ratio consumed in reactions> x <detoxification ratio>)

Wastewater volume discharged by plants/sites into sewerage or rivers in fiscal 2006

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 removed by microbial 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 removed chemically by oxidation.

Volume of Waste Generated: The volume of waste disposal by plants/sites in fiscal 2006

Volume of Waste Disposal: The volume of landfill disposal and simple incineration by plants/sites in fiscal 2006

(including waste which is not a zero emission target)

Distribution/ Atmospheric

Sales

Usage

Release

The total CO

2

volume in fiscal 2006, including both fuel consumption by Fujitsu’s shipping business when measurable, and shipping distance x freight weight x coefficient when the freight of companies other than Fujitsu is included, as in mixed load transportation

Atmospheric

Release

The volume of CO

2

emissions during use of major products shipped in fiscal 2006

(Assumed hours of use per product, age-based CO

2

emissions x units shipped in fiscal 2006)

2007 FUJITSU GROUP SUSTAINABILITY REPORT

52

Cooperation with External

Groups and Outside Awards

The History of Fujitsu’s

Environmental Activities

Our Basic Approach to Working with External Groups

Fujitsu is committed to contributing widely to the achievement of a sustainable society, not only through our own internal activities but also through active engagement with a wide range of external groups and organizations, including industry groups, government authorities, international and educational bodies, and NPOs and NGOs.

Some of Our Principal Affiliations (in Japan)

• Network for Sustainability Communication (NSC)

• Nippon Environment Club

• Japan Environmental Management Association for Industry

• Communications and Information Network Industry Association of Japan

• Japan Electronics and Information Technology Industries Association

• CJC (Clean Japan Center)

• Nippon Keidanren

• Japan International Forestry Promotion and Cooperation Center (JIFPRO)

• Environmental Partnership Organizing Club (EPOC, Nagoya)

• Japan for Sustainability (JFS)

Main Independent Awards in Fiscal 2006

Award

2005 Niigata Prefecture

Eco-Friendly Business Site

2006 Iwate Prefecture

Environmental Protection

Liaison Council

Chairman’s Award

Date

June

2006

June

2006

Cool Business for a Sunny

Country Prize

Third Annual Eco-Products

Awards, Eco-Services

Division

Eco-Products Awards

Committee’s Chairman’s

Award for Excellence

(Outstanding Product Award)

Third Annual Life Cycle

Assessment Society of

Japan Encouragement

Award

September

2006

December

2006

December

2006

Sponsor

Niigata

Prefecture

Environmental

Protection

Federation

Iwate

Prefecture

Environmental

Protection

Liaison

Council

Okayama

Prefecture

Eco Products

Award

Promotion

Council

Life Cycle

Assessment

Society of

Japan

Recipient

Shinko Electric

Industries Co., Ltd.,

Arai Plant

Fujitsu Limited,

Iwate Plant

Fujitsu Limited,

Okayama Office

Fujitsu Limited,

“Logistics Solutions”

Eco-Efficiency Award 2006

Japan Environmental

Efficiency Forum

Chairman’s Award

(Product Activities Division)

Energy Management

Superlative Factory or Site

Award (Resources and

Energy Agency Director-

General’s Award)

Energy Management

Superlative Factory or Site

Award (Resources and

Energy Agency Director-

General’s Award)

December

2006

January

2007

January

2007

Japan

Environmental

Efficiency

Forum

The Energy

Conservation

Center, Japan

The Energy

Conservation

Center, Japan

Fujitsu Limited,

“Popularization and Promotion of

Quantitative Evaluation of Environmental

Contributions in the

Software & Services Field”

Fujitsu Limited,

“Management Reform

Based on Environmental

Efficiency Factors in the

Fujitsu Group”

Fujitsu Limited, Aizu

Wakamatsu Plant

Fujitsu VLSI Limited

“Logistics Solution” Wins the Eco-Products

Awards Committee’s Chairman’s Award for Excellence in the Eco-Services Division

(Outstanding Product Award)

In consideration of Japan’s Revised Energy Conservation

Law, which came into effect in April 2006 and to support our customers’ efforts to reduce CO

2

emissions, we strengthened and expanded our logistics solution offerings. This award recognizes the solutions’ contribution to reducing overall environmental burden achieved through IT-enabled measures including: improvements in transportation and distribution operations from optimization of distribution routes, improvements in fuel consumption due to the introduction of in-vehicle terminals, reductions in the number of vehicles due to transport planning, and automated documentation using a CO

2

emissions calculation system.

1935

1972

1987

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

• Park-style design adopted for new Kawasaki Plant at the suggestion of Fujitsu’s founder, Manjiro Yoshimura.

• Environmental control sections established at each plant.

• Ozone Layer Protection Committee established.

• Environmental Committee established.

• Environmental management evaluation system implemented.

• Environmental Engineering Promotion Center established.

• Fujitsu’s Commitment to the Environment formulated.

• Use of CFCs and carbon tetrachloride for cleaning eliminated.

• Energy Saving Committee established.

• Product Recycling Committee established.

• Waste Control Committee established.

• Fujitsu Environmental Protection Program (Stage I) formulated.

• Product Environmental Assessment Guidelines formulated.

• Domestic Affiliated Companies’ Environmental Protection

Council established.

• Environmental Information Service (FJ-CUG) inaugurated.

• First issue of Eco-Plaza environmental bulletin published.

• Use of 1,1,1-trichloroethane eliminated.

• 1st Fujitsu Group Environmental Technology Exhibition held.

• Fujitsu Environmental Emblem designed.

• Overseas Environmental Information Network begins operation.

• Environmental Management System Committee established.

• Recycling system established and implemented.

• Fujitsu Group Worldwide Environmental Protection

Council established.

• Fujitsu Environmental Protection Program (Stage II) formulated.

• Environmental Engineering Center homepage placed on intranet.

• Chemical Emissions Reduction Committee established.

• First Environmental Report published.

• Environmental homepage established on Fujitsu website.

• All domestic manufacturing sites certified ISO14001 compliant.

• Reforestation activities conducted in Thailand.

• Green Product program launched.

• Environmental accounting introduced.

• Reforestation activities conducted in Vietnam.

• Four development and service sites in Japan certified

ISO14001 compliant.

• Corporate Environmental Affairs Unit established.

• Desktop PC awarded Eco-mark for first time.

• Fujitsu Environmental Protection Program (Stage III) formulated.

• Calendar using paper from sustainable forest published.

• Reforestation activities conducted in Malaysia.

• A world’s first: Tin-zinc-aluminum lead-free solder developed.

• A world’s first: Biodegradable plastic parts with lower environmental burden employed in notebook computers.

• Fujitsu Group Environmental Policy established.

• A world’s first: Magnesium alloy recycled in-house applied in notebook computers.

• Support for reforestation activities employing Rhythm Forest reforestation network game initiated.

• Zero waste emission achieved by all 13 plants in Japan.

• ISO14001 integrated certification acquired by all Fujitsu

Limited sites, among largest systems in Japan.

• 100% Green Product ratio achieved for all newly developed products.

• Fujitsu Group Environmental Protection Program (Stage IV) formulated.

• ISO14001 certification acquired by all Group companies in

Japan.

• Supply of Super Green Products begins.

• ISO14001 globally integrated certification acquired, including overseas Group companies. Establishes global environmental management framework for the Group as a whole.

• Fujitsu Group Environmental Protection Program (Stage V) formulated.

53

2007 FUJITSU GROUP SUSTAINABILITY REPORT

Independent Assurance Report

TRANSLATION

Independent Assurance Report

June 11, 2007

Mr. Hiroaki Kurokawa

President and Representative Director

FUJITSU LIMITED

Shin Nihon Environmental and Quality Management Research Institute Co. , Ltd

Representative Director      Akihiro Nakagome

1. Scope and objectives of this engagement

We have performed specific assurance procedures, based on the contract with Fujitsu Limited (the “Company”), to express an independent opinion on the Fujitsu Group Sustainability Report (the “Report”) in respect of whether the environmental performance data (environmental accounting data and material environmental information*

1

which are prescribed in the institutional framework of the assurance engagement and the registration of the environmental report) of the Company and its material subsidiaries, were accurately measured, calculated and cover all material aspects without omissions in accordance with the reporting standards*

2

of a social and environmental report, and whether or not the social performance data are in contradiction with the evidence we have obtained.

The reporting responsibility belongs to the Company’s management. Our responsibility is to express an independent opinion on the Report.

*1 The material environmental information which are prescribed in the institutional framework of the assurance engagement and the registration of environmental report, are indicated in the “Environmental report assurance and registration mark standards” (The Japanese Association of Assurance

Organizations for Environmental Information).

*2 The reporting standards refer to the Ministry of Environment’s “Environmental Reporting Guidelines 2003”, and the Global Reporting Initiatives’ “Sustainability

Reporting Guidelines Ver. 3. 0 Oct 2006”, and the complementary guidelines made by the Company.

2. Outline of the assurance engagement procedures

We have performed limited assurance engagement procedures mainly composed of inquiry, review and analytical procedures in accordance with the “Practical guideline for assurance engagement of non-financial statements (exposure draft)” (Japanese Institute of Certified Public Accountants Jul 2005) and the “Practical guideline for assurance engagement of environmental information” (J-AOEI Jan 2006).

Therefore, our assurance engagement provides relatively limited assurance compared to a reasonable assurance engagement.

Outline of the applied procedures is as follows;

We have reviewed and assessed the Company’s procedures for the collection and calculation of the environmental performance data, as well as the recalculation and cross-checking of the subject information described in the Report with the supporting evidence on a sample basis, performed onsite verification and reviewed the environmental performance data generated at each site. In addition, we have verified the consistency of the subject information in the social performance data with other information described in another part of the Report.

*2 The onsite verification took place at the Head Quarter Office, Fujitsu Aizu Wakamatsu Plant, Fujitsu Oyama Plant, and two major subsidiaries; PFU Limited and Shin-etsu Fujitsu Limited.

3. Our opinion

Based on our assurance engagement, we have not come across any materially incorrect determinations or miscalculations, or omissions in relation to the environmental performance data (environmental accounting data and material environmental information prescribed in the institutional framework of the assurance engagement and the registration of an environmental report). In addition, we have not come across any materially incorrect determinations that contradicted the evidence we have obtained in relation to the social performance data

4. Our independence

We, as a member of the Ernst&Young ShinNihon Group, are in compliance with the Certified Public Accountant

Law, the ethics regulation of the Japanese Institute of Certified Public Accountants and the ethics procedure of

Ernst&Young ShinNihon.

Therefore, there has been no common interest between the Company and us.

NOTE: This Independent Assurance Report was prepared based on the original Japanese version.

2007 FUJITSU GROUP SUSTAINABILITY REPORT

54

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