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1999 Environmental Activity Report

1999 Environmental Activity Report - fujitsu.com · environmental investments so that we may ... •Verification of system effectiveness and enhancement of environmental performance

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1999Environmental Activity Report

1

ContentsMessage from the President ................................................ 2

Fujitsu's Commitment to the Environment........................... 3

Fujitsu Environmental Protection Program .......................... 4

System of Environmental Control ........................................ 5

Relation between Business Operations and Environment .... 6

Target

Environmental Management System ................................... 7

Product Recycling ............................................................... 9

Industrial Waste Cuts ......................................................... 13

Reduction of Release of Chemicals..................................... 15

Energy-saving Measures (Measures for Global Warming).. 17

Principal New Actions of Fiscal 1998

Introduction of Environmental Accounting ......................... 19

Plant Environmental Control Measures............................... 21(Measures for protection of soil, underground water, measures for dioxin, etc.)

Continued Actions

Environmental Education and Enlightenment...................... 25

Open Environmental Information........................................ 27

Social Service Activities...................................................... 28

Environment Related Products ........................................... 29

Group Integrated Activities ................................................. 31

External Awards.................................................................. 35

History of Environmental Control Activities ........................ 36

Questionnaire ..................................................................... 37

Corporate ProfileCompany Name: FUJITSU LIMITED

Address: Main Branch: 1-1, Kamikodanaka 4-chome, Nakahara-ku, Kawasaki, Kanagawa 211-8588, Japan

Office Headquarters: Marunouchi Center Bldg., 6-1, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8211,

Japan

Representative: Naoyuki Akikusa, President

Date established: June 20, 1935

Major businesses: Manufacture and sales of software and services, computers and information processing platforms,

telecommunications systems, semiconductors and electronic devices.

Capital: 261.2 billion yen (as of March 31, 1999)

Group companies: Consolidated Subsidiaries: 518 [Japan 132, Overseas 386 (including 198 of ICL group)]

Affiliates: 34 (including 18 of ICL group)

This booklet reports on environmental protection activities in fiscal 1998, and also explains plans for fiscal 1999. We will publish this report annually. The nextone is scheduled to be issued in June , 2000.

Contact

Environmental Engineering Center FUJITSU LIMITED1-1, Kamikodanaka 4-chome, Nakahara-ku, Kawasaki, Kanagawa 211-8588, Japan

Phone: +81-44-754-2010 Fax: +81-44-754-2748

Your inquiry will also be accepted at our Homepage: "Environmental Information".

http://www.fujitsu.co.jp/hypertext/About_fujitsu/environment/index-e.html

30,000

20,000

10,000

0(100 million yen)

'96 '97 '98(Fiscal year) (Fiscal year) (Fiscal year) (Fiscal year)

Net Sales (Unconsolidated)

30,000

40,000

50,000

20,000

10,000

30,000

40,000

20,000

10,000

0(100 million yen)

'96 '97 '98

Net Sales (Consolidated)

0(Number)

'96 '97 '98

Employees (Unconsolidated): at the end of fiscal year

120,000

160,000

80,000

40,000

0(Number)

'96 '97 '98

Employees (Consolidated): at the end of fiscal year

31,23

632

,290

31,91

1

45,03

4 49,85

352

,429

46,79

5

45,16

6

44,19

1

167,0

00 180,0

0018

8,000

2

Message from the President

Environmental issues are among the most important challenges facing corporate management today. At

Fujitsu, we are further accelerating our environmental protection activities in order to win society's

continued acceptance and support of our business activities.

Since the company was founded, Fujitsu's management philosophy has been to manufacture products in

harmony with nature, as seen, for example, in the cultivation of greenery at our factory sites. This

philosophy is reflected in our recent tree-planting activity in Thailand and in the tropical forest

regeneration program we have undertaken with the support of funds voluntarily contributed by our

employees, including management.

A corporate-wide commitment to protect future generations is what drives our environmental efforts, and it

is manifested at every stage of our business activities -- from research and development to recycling and

disposal.

In fiscal 1998, in line with our aim to establish a unified group-wide environmental management system, all

our principal domestic and overseas manufacturing affiliates received ISO14001 certification. Thanks to

the concerted efforts of all employees, under this environmental management system we were able to

exceed our industrial waste cuts and energy-saving targets. We have also made steady progress in

decreasing release of chemicals that may adversely impact human health in the future. Through these

measures, we have made tangible contributions to reducing overall burdens on the environment.

We are also putting emphasis on environmental considerations at the product design stage and have

initiated development and marketing of environmentally conscious "Green Products." In regard to

recycling in particular, we have aggressively developed and implemented various recycling technologies,

establishing a nationwide recycling and collection system that provides a valuable service to customers and

plays an important role in our "Green Product" development efforts.

Further, with a view to demonstrating our commitment to environmental protection and optimizing our

environmental investments so that we may accelerate our activities in this area, we have introduced an

Environmental Accounting System. This system, which puts analysis of environmental investment and

return alongside other business areas scrutinized by corporate management, demonstrates in a concrete

manner the priority we place on environmental protection. We intend to utilize this system as an index for

promoting further environmental improvement from now on.

This report has been compiled to publicly provide information on our principal environmental activities

and achievements based on actual data collected over the year. At the same time, we have tried to make it

easier to read and understand.

We are committed to further expanding our own endeavors to contribute to greater harmony between

human activities and the global environment. We hope that, through this report, you will come to

appreciate the various approaches Fujitsu is taking to deal with environmental issues.

Naoyuki Akikusa

President, FUJITSU LIMITED

Fujitsu pledges to use its creativityand technology to harmonize humanactivity with the global environment.

Fundamental Concept

Taking account of the environmental impact of operations

Making efficient use of resources and energy

Developing technology that contributes tothe protection of the global environment

Promoting governmental environmentalpolicies

Participating in community environmentalactivities

Raising consciousness throughenvironmental education

Establishing a system to promoteenvironmental protection

Cooperating with affiliated companies

Conduct guidelines

Fundamental Principles

Organization-wide commitmentand activities

Maintaining environmentallysound business operations

Contributing to society

3

Management Board

Chief Environmental Officer(Tatsuhiko Otaki, Senior Vice President)

Environmental CommitteeFunctions: Planning and determinationof corporate-wide fundamental principles,and monitoring of company activitiesChairman: Chief Environmental Officer

Committees on individual activities

Environmental Management System Committee

Products Recycling Committee

Wastes Control Committee

Release of Chemicals Reduction Committee

Energy Saving Committee

Plant Environmental Management Executive CouncilFunctions: Establishment and implementation of plant programs

according to corporate-wide fundamental principles

Domestic Affiliated Companies' Environmental Protection Council

Fujitsu Group Worldwide Environmental Conference

Environmental Control Divisionfor the entire company

(Environmental Engineering Center)

Plants and Offices(Environmental Control Executives)

Environmental OrganizationFujitsu's organizational system for corporate-wide environmental activities is as follows:

Fujitsu's Commitment to the Environment (Summary)Fujitsu is dealing with the global environmental issues based on the basic philosophy, basicpolicy and guidelines for actions expressed in "Fujitsu's Commitment to the Environment"established in July 1992.

4

Fujitsu Environmental Protection Program (Summary)With the view to implementing in concrete manner what was established by Fujitsu's Commitmentto the Environment, Fujitsu set forth in "Fujitsu's Environmental Protection Program" (the secondedition: established in April 1996) the numerical targets for specific activities. The targets andresults in fiscal 1998 and the targets for fiscal 1999 are as follows:

Target:

Establish and implement environmentalmanagement system in plants and offices (includingdevelopment and service) based on the ISOstandard by the end of fiscal 2000.

Attain a recycling rate of 90% on collected wasteproducts by the end of fiscal 2000.

Industrial waste output to be cut 80% by the end offiscal 2000 based on fiscal 1991 results.

Release of chemicals to be cut 20% by the end offiscal 2000 based on fiscal 1995 results.

Sales-based electricity consumption per unit to becut 20 to 30% by the end of fiscal 2000 based onfiscal 1990 results.

Target

EnvironmentalManagementSystem

Energy saving measures: Annual consumption ofelectricity, oil and gas(Unit: in terms of crude oil: Kl)

Industrial waste cuts: Annual quantity ofdisposal of waste paper, waste plastics, waste oil, wood chips (Unit: ton)

Productrecycling

Industrialwaste cuts

Reduction of release ofchemicalsEnergy saving measures (against global warming)

Item Fiscal 1998 Target for fiscal1999Target Result

2 offices should becertified asdevelopment/serviceoffices

88%

442,000 397,000 45,000 Approx. 22,000

3,800 3,000 800 Approx. 500

Total: Approx.22,500

73% reduction

15% reduction

29% reduction

Ref.page

2 offices certified(accomplished)

88%(accomplished)

80% reduction(accomplished)

16.4% reduction(accomplished)

30.8% reduction(accomplished)

2 offices should becertified as

development/serviceoffices

90%

83% reduction*1

17% reduction

34% reduction*1

7

9

13

15

17

*1 With respect to industrial waste cuts and energy saving measures, the targets for fiscal 2000 have already been attained in fiscal 1998. Therefore, newlyincreased targets were established for fiscal 1999.

Major Concrete Measures for Attaining TargetsEnvironmental Management System1.Introduction of ISO14001

•Establishment and steady implementation of system through arrangement ofcommon specifications

•Verification of system effectiveness and enhancement of environmentalperformance by internal audits

Product Recycling1.Measures for environmental protection in product development and design

stages(1) Promotion of the development of Green Products•Improvement in environmental "consciousness" of products based on the result

of Product Environmental Assessment•Improvement of recycling rates(2) Introduction of life cycle assessment (LCA) •Application to development of Green Products(3) Development of packaging technologies (including returnable containers)

considering recycling (4) Self-imposed control of using of hazardous substances

2.Promotion of environmentally conscious procurement•Active procurement of environmentally conscious materials, parts and products

3.Collection and recycling of waste products

Industrial Waste Cuts1.Waste cuts

•Review of standards for disposing waste oil, and control of oil usage2.Effective utilization of wastes

•More effective reuse of valuable metals contained in sludge, developer andplating liquid

3.Maintenance and practical use of waste reduction manuals and casebook

Reduction of Release of Chemicals1.Reduction in chemicals used in and released from plants

•Reduction in usage by improving chemicals using

Energy-saving Measures1.Promotion of introduction of energy-saving technologies and equipment in

plants and offices•Development of manufacturing equipment and processes based on energy-

saving technologies2.Exchange of energy-saving technologies and know-how between plants and

offices3.Establishment of measures and systems for accurate grasp of energy using

ItemActual result

Fiscal 1997 ReductionFiscal 1998Effect (in terms ofcarbon dioxide)(Unit: ton.EC)*2

*2 ton-C: denotes the weight of C in carbon dioxide (CO2)

Reduction effect of the environmental load in fiscal 1998Out of the reduction effect of the environmental load by the implementation of environmental protection program in fiscal1998, the reduction effect of carbon dioxide is as follows:

5

System of Environmental ControlSystem of environmental control at Fujitsu is illustrated as follows:

Fundamental Concept and Principles

Fujitsu's Commitment to the Environment

Specific Plan

Re-establishment

Programs and Targets

Fujitsu Environmental Protection Program

Implementation

Monitoring and Verifying the Results of Activities

Environmental Engineering Center

Review

Results

Environmental Activities and ManagementActivities and Management in accordance with the Environmental Management System (ISO14001)

Checks the results of activities, reviews principles and targets, and deals with new issues

Comprehends, corrects, and gives guidance on, environmental activities in the entire company

Review and Approval of Principles and Targets

Environmental Committee

Planning

Managementreview

Checking andcorrective action Implementation

and operation

Environmentalprinciples

Continuous improvementof the environmentPlants and offices

6

Relation between Business Operations and EnvironmentRelation between Fujitsu's business operations and environment is as follows.

Business Operations

Development and design Manufacturing Sales/service and collection

• Use of energy • Use of chemicals • Product design

Energy Consumption Consumption of global resourcesWaste generationUse of chemicals

• Use of energy • Consumption of global resources • Use of chemicals • Waste generation

• Use of energy • Product

waste generation

Environmental Impacts

• Global warming • Ozone-layer depleting• Depletion of resources

• Increase of waste amounts • Loss of tropical rain forests • Water pollution

• Air pollution • Soil contamination • Noise and vibration

Fujitsu's Environmental Efforts

Development and design Manufacturing Sales/service and collection• Implementation of product

environmental assessment • Development of Green Products • Promotion of Green Procurement • Introduction of life cycle assessment

(LCA) • Development of environmental

conscious technologies(e.g., recycled plastics, packagingmaterials, etc.)

• Promotion of energy-saving • Proper control of chemicals

• Reduction and effective utilization ofwastes

• Reduction of release of chemicals • Proper control of chemicals • Promotion of energy-saving • Prevention of water pollution • Prevention of air pollution • Measures against noise and vibration • Prevention of soil contamination • Measures against environmental

endocrine disruptors• Measures against dioxin• Elimination of ozone-layer depleting

substances • Reduction of release of greenhouse gases

• Promotion of recycling of wasteproducts

• Promotion of energy-saving • Provision of environmentally

conscious products • Participation to events held by local

governments

• Establishment and operation of an environmental management system

• Introduction of environmental accounting system

• Implementation of environmental education and enlightenment

• Open environmental information

• Promotion of plant greening

• Promotion of reducing papers

• Implementation of social service activities

• Group integrated activities

General

7

Environmental Management SystemWe have been working on the establishment and implementation of Environmental ManagementSystem in accordance with ISO14001. The targets for obtaining its certification are set as follows:

•For domestic manufacturing plants:By the end of fiscal 1997(All 11 domestic manufacturing plants obtained the certification by December 1997)

•For main development and service-related offices:By the end of fiscal 2000 (4 offices)Since the Environmental Management System needs to be applied to the entire group, the targetfor obtaining certification is also set for affiliate companies, too.*1

•For main domestic and overseas affiliated companies:By the end of fiscal 1998 (65 sites)

External Certifications ObtainedDevelopment and service officesIn fiscal 1998, the certification was obtained for thefollowing 2 offices and the targets were attained.• Fujitsu Laboratories Ltd. (Atsugi Area) November, 1998• Minami-Tama Plant February, 1999

With respect to the sites already obtained the certification,a surveillance audit*2 was conducted in which 22 cases ofimprovement suggestions were made at 11 sites. To all ofthese suggestions, improvement has been made.

Affiliated CompaniesThe certification was obtained at 28 domestic sites and 11overseas sites. The total number of certification obtainedreached to 53 (39 sites in Japan and 14 sites overseas).

Fujitsu Kiden Ltd. (Niigata) .................................................................... AprilAdvantest Corp. (Gunma) ...................................................................... AprilFujitsu I. Network Systems, Ltd............................................................. AprilFDK Corp. (Sanyo) ................................................................................. JulyFujitsu Takamisawa Component Ltd. (Technical Development Center) .. JulyFujitsu Peripherals Ltd. ...................................................................... AugustShinano Fujitsu Ltd............................................................................ AugustFujitsu Quantum Devices Ltd. (Yamanashi) ....................................... AugustFujitsu Denso Ltd. (Shimodate) .................................................. SeptemberFujitsu Kiden Ltd. (Tokyo) ................................................................ OctoberFujitsu Denso Ltd. (Furudono).......................................................... OctoberFDK Corp. (Kosai)............................................................................. OctoberShinjo Fujitsu General Co., Ltd. ........................................................ OctoberIchinoseki Fujitsu General Co., Ltd. .................................................. OctoberKyushu Fujitsu Electronics Ltd. (Miyazaki) ................................... NovemberFujitsu Denso Ltd. (Kyowa)........................................................... NovemberFujitsu Miyagi Electronics Ltd. ...................................................... NovemberFujitsu Denso Ltd. (Kaijo) ............................................................. DecemberFujitsu Kasei Ltd. .......................................................................... DecemberFujitsu Isotec Ltd. ......................................................................... DecemberHamamatsu Fujitsu General Co., Ltd. ............................................... JanuaryFujitsu General Co., Ltd. (Kawasaki Electronics Devices Division).... JanuaryFujitsu Media Devices Ltd. (Tohoku, Aomori) ................................. FebruaryFujitsu Automation Ltd........................................................................ MarchFujitsu Sinter Ltd.(Yumoto, Iwaki) ...................................................... MarchShimane Fujitsu Ltd. ........................................................................... MarchShinko Electric Industries Co., Ltd. (Arai) ........................................... MarchFujitsu System Construction Ltd......................................................... March

*1 Affiliated Companies :Consolidated subsidiaries and affiliates.

*2 Surveillance Audit :Audit to be conducted every year to confirm the effectiveness ofEnvironmental Management System and the facts of improvement.

Certified Domestic Affiliated Companies

Due to reasons such as restructuring of entire businessesat the site, etc., 9 domestic sites and 3 overseas sites wereunable to obtain the certification as planned. The targetdate for them was extended to the end of fiscal 1999.

Development and service officesPlan for '99

Result

Manufacturing plants

0

5

10

15

'95 '96 '97 '98 '99 (Fiscal year)

Results and plans for obtaining certification for ISO14001(Fujitsu)

Number of certified sites

(cumulated)

Results and plans for obtaining certification for ISO14001(Domestic and overseas affiliated companies)

Plan for '99

Result

Plan for '99

Result

Overseas

Domestic

0

10

20

30

40

50

60

70

'95 '96 '97 '98 '99 (Fiscal year)

Number of certified sites

(cumulated)

8

Fujitsu ICL Espana ,S.A.(Spain) ............................................................. AprilFujitsu Microelectronics Asia Pte.Ltd. (Singapore)................................. AprilFujitsu Microelectronics( Malaysia )Sdn.Bhd. (Malaysia)........................ MayFujitsu (Thailand) Co.,Ltd. (Thailand) ...................................................... MayFujitsu Isotec Ireland Ltd.(Ireland) .......................................................... JulyFujitsu Component (Malaysia) Sdn.Bhd. (Malaysia) ................................ JulyFujitsu Computer Products Corporation of the Philippines (Philippines) ........

NovemberFujitsu Australia Ltd. (Australia)..................................................... DecemberFujitsu Computers Oy (Finland) ..................................................... DecemberJiangsu Fujitsu Telecommunications Technology Co.,Ltd. (China) .DecemberFujitsu India Telecom Ltd. (India) ........................................................ March

Certified Overseas Affiliates Principal Plans for Fiscal 1999•Plan to Obtain ISO14001 certification

•For development and service offices 2 sites•For domestic and overseas affiliated companies 12 sites

•Improvement of Environmental Management System•Mutual comparison of environmental impact, sharing of information

(Implementation of general audit system)•Reduction of indirect environmental impact (Management function,

production, manufacturing technology, research and development,procurement of materials and office supplies, etc.)

•Study of the integration of Environmental ManagementSystem with Quality Management System

Principal Activities•The following common rule used as the basis of the

corporate-wide approaches was revised:•"SPECIFICATION ON ENVIRONMENTAL MANAGEMENT

COMMUNICATIONS TO RESOURCE AND ARTICLE SUPPLIERS"(Established to promote the implementation of EnvironmentalImpact Assessment in connection with our procurements ofmaterials and other goods and to have our suppliers implementactivities to reduce environmental load.)

•Education for internal environmental auditors wasimplemented twice, and a total of 58 personnel weretrained as auditors (The cumulative number of registeredinternal environmental auditors is 367.).

•The internal environmental audit was implemented at theISO certified plants and a cumulative total of 889 pointeditems were all improved.

•Various education and emergency drills wereimplemented at ISO certified plants.

The activities given below were implemented over theentire Fujitsu group.

•To ensure a better understanding about environmentalissues among employees and to get them more activelyinvolved in environmental activities, a total of 34 lecturemeetings were held with 695 participants.

•Exchange meetings among those who practiceenvironmental activities to exchange comments andideas thereon were held to achieve a horizontal transferof know-how concerning the establishing and operating ofenvironmental management systems (Fujitsu anddomestic affiliates: a total of 3 exchange meetings with168 participants).

•Some environment-related information was put on thecompany's intranet to share it with others.

•Matters pointed out in audits for ISO14001 certification 71•Listed number of registered internal environmental auditors 367

Emergency drills (Oyama Plant)

99

Product RecyclingTo achieve a recycling rate of 90% for collected waste products mainly from companies by the endof fiscal 2000 we have been focusing its efforts at the development and design stages as well asat the waste product collection and disposal stages.

Approaches at the Collection and Disposal StagesIn fiscal 1998, under the Fujitsu Recycle System(established in July 1997), a total of approx. 8,000 tons ofwaste products was collected and approx. 7,000 tons ofparts and materials were recycled therefrom. Accordingly,the resulted recycling rate*1 was 88%. This was over thetarget for fiscal 1998.

Weight of recycled parts and materials *1 Recycling rate =

Weight of collected waste products

(ton)0

2,000

4,000

6,000

8,000

10,000

0

20

40

60

8090

'95 '96 '97 '98 '99 (Fiscal year)

(%)

Collected quantity and recycling rate of waste products

Collected quantity

Recycling rate

Target of recycling rateat the end of fiscal 2000

Principal items implemented•Expansion of reuse of parts

From 4 parts to 26 parts•Improvement of work efficiency through preparation of

disassembly manual of waste products (for 17 differenttypes of products)

(Sendai City, Miyagi Prefecture)• Hokkaido Terminal• Sendai Terminal

Fujitsu North Japan Recycle Center

(Sagamihara City, Kanagawa Prefecture)• Kawasaki Terminal

Fujitsu Metropolitan Area Recycle Center

(Kaizu gun, Gifu Prefecture)• Nagano Terminal • Kanazawa Terminal• Nagoya Terminal • Osaka Terminal

Fujitsu Chubu Area Recycle Center(Tosu City, Saga Prefecture)• Fukuoka Terminal• Ryukyu Central Storehouse

Fujitsu Kyushu Area Recycle Center

(Kakogawa City, Hyogo Prefecture)• Akashi Terminal • Takamatsu Terminal • Hiroshima Terminal • Matsuyama Terminal

Fujitsu West Japan Recycle Center

Map of Recycle Centers and Collection Terminals

Structure and Role of the Fujitsu Recycle System•Recycle Techno Center

System operation management and technicalsupport

•Collection TerminalCollecting and storage of waste products fromoperating sites throughout the country

•Recycle CenterDisassembly, separation and treatment of wasteproducts

•Recycle Parts CenterTaking out, storage and shipment of recyclable partsfrom waste products

Kyushu Recycle CenterJune 1998 Permission No. 4123054477

Metropolitan Area Recycle CenterAugust 1998 Permission No. 1422028930

West Japan Recycle CenterAugust 1998 Permission No. 2824047575

Chubu Area Recycle CenterOctober 1998 Permission No. 2120053003

North Japan Recycle CenterExpected to obtain in September 1999

Obtaining of "Permission to engage in thedisposal of industrial wastes" by recycle centers:

To increase the recycling quantity ofwaste products, each recycle center hasobtained "Permission to engage in thedisposal of industrial wastes". At thesame time, logistics networks wereestablished in collaboration with 9logistics companies covering the entirearea of the nation. This was the firstestablishment by the information andcommunication equipmentmanufacturers in Japan.

Metropolitan Area Recycle Center

1010

Reuse of parts

For maintenance and repair

To overseas toy and electric appliance industries

Material recycling

Thermal recycling

Iron, copper, aluminumPrecious metals (gold, silver, platinum, etc.)Glass cullets→CRT displaysRecycled pellets→Formed parts

Substitution for cokes in smelting furnaces

RecyclersRecycled parts and materials• Frames and cables• Printed board assembly• CRT displays• Plastics

• Magnetic disk unit Power units Signal cables

• Semiconductor element (IC)

• Plastics

Reused parts

Wastes Burning / burying

Recycling locations

Waste service companies

Waste product

Disassembly and separating

(Checking and testing)

Flow of treating/disposing waste products with examples of recycled parts/materials

Development of "Recycling ActivitiesManagement System"

With a view to carrying out more efficient management ofFujitsu Recycle System, a new on-line system connecting 5Recycle Centers throughout the nation and Recycle TechnoCenter located in Kawasaki Plant was developed. Thisenabled us to make timely supply of recycling information,to carry out unified control of collected quantity, etc.

Application of Recycled Plastics to theProducts

The plastics parts (ABS resins) of the waste productscollected by the Recycle Center were regenerated (therecovered waste plastics were mixed at a rate of 20% withnew resins) and used for the parts of notebook personalcomputers (pointing holders).We intend to expand this to other products.

• Applied ProductsNotebook personal computer: 2 models

Parts made of recycled plastics (Pointing holder)

1111

Product Recycling

[Indispensable Evaluation Criteria (16 items)]Resource saving•Recyclable rate of all parts shall be over 75%•Recyclable plastics weighing over 25g shall be used 70% or more on

weight basis of the total plastics weighing over 25g

Energy saving•Compliance with Energy Saving Law•Compliance and Registration with the International Energy Star

Program•Power saving function

Recyclability•Capability of being separated and disassembled into component

materials or units by hands or general tools•Any plastics part weighing 25g or more shall have marking of its

material•Painting and plating of plastics parts weighing 25g or more shall be kept

minimum required•Products to which Ni-Cd batteries are used shall be provided with

marking and shall have the construction easy to remove them •All packing boxes shall be made of the recycled paper and shall not

apply any surface treatment which may prevent its recycling•Use rate of foamed polystyrene shall be kept less than 10 % of the entire

weight of packing materials•Only polyethylene resin or paper may be used as material for protective

bags•All plastics parts for packaging weighing 20g or more shall carry the

marking of material

Control of hazardous material content•Products and packing material shall not contain any material the use of

which is regulated under the laws (asbestos, polychlorinated biphenyl(PCB), etc.)

•Products and packing material shall not contain any material the use ofwhich is regulated internally (tetrachloroethylene, trichloroethylene,etc.)

Disclosure of environmental information•Matters requiring special attention at the time of disposal shall be

indicated

To the next models of the Green Products, 27 more stringent evaluationitems shall be applied one by one.

Approaches at the Development and Design StagesDevelopment of Green ProductsBased on the "Green Products Evaluation Standard", ourinternal standard incorporating global environmentalmeasures, we have promoted the development and designof Green Products, which are more environmentallyconscious. As the result, a total of 45 models wereidentified as Green Products:

Introduction of a System for the use of Environmental Emblem to Green ProductsWith a view to providing information to our customers andto appealing our positive attitude to the outside of thecompany, we are now applying our own environmentalemblem in the catalogues and packing boxes of our GreenProducts from November 1998.

Implementation of Product EnvironmentalAssessment For products with new design, we have been conducting,since January 1996, an assessment based on our internal"PRODUCT ENVIRONMENTAL ASSESSMENT STANDARD"covering 40 items to promote the development ofenvironmentally conscious products.In fiscal 1998, assessment of 364 products were made andsuch assessment promoted the development ofenvironmentally conscious products (for example: digitalwireless remote controlling equipment, network server,color plasma display, etc.) (Cumulative total: 854products).

Compilation of "Information on the EnvironmentalRegulations covering our Global Products"In order to obtain in advance information onenvironmental regulations in the countries to which ourproducts are exported (Europe, the U.S.A, etc.) , we havecompiled the collected information for utilization asreference.

•Number of information relating to regulatory legislatures: 35•Areas and countries: 1 area and 12 countries

Desktop PC 15 models

Display 10 models

POS terminal 2 models

Notebook PC 15 models

Router 2 models

Page printer 1 model

Compliance with environmental laws (9)Ozone layer protection (1)Natural resources conservation (2)Energy saving (4)Recycling (6)Ease of processing and disposal (4)Ease of collection and transportation (1)Disclosure of information (2)Packaging (11)

[Assessment Items]

The numbers in ( ) indicate the numbers of sub-items these factors are given(Total:40 items).

Green Products Evaluation Standard

*For related information, refer to page 29.

1212

Introduction of Life Cycle Assessment (LCA)We are introducing the LCA system to quantitatively

analyze and evaluate the environmental load that productsgive on the environment through their life cycle [i.e., frommaterial collecting, through production (processing,assembly, inspection, packing), distribution, use,collection, and recycling, finally to disposal]. In fiscal 1998,the assessment was made for a total of 4 models(Cumulative total: 6 models). The results of suchassessment will be utilized for the development ofsubsequent models of the products.

•Products evaluated under LCALiquid crystal display: 2 modelsDesktop PC: 1 modelNotebook PC: 1 model

Promotion of Green ProcurementWe have launched in 1998, our approaches to "GreenProcurement", i.e. giving preference to environmentalconscious materials and parts in our procurementactivities. In fiscal 1998, the ISO14001-certified plantsconducted a survey of the suppliers in connection withtheir business activities relating to environmentalregulations and their approaches to the environmentalissues (A total of 271 suppliers were surveyed).The results of this survey will be stored as our databaseand will be supplied to our development and designingdivisions as reference for the development of future GreenProducts.

Example of the use:15 inch liquid crystal display:

From June 1998Desktop PC(compact type):

From November 1998Desktop PC(micro-tower type):

From January 1999

Principal Implementation Plans for Fiscal 1999Development and designing stages•Extension of the Green Products

Next series of FMV PC, Automatic cash dispensers, Smalltype printers, Scanners, Cellular phones, Small type

Shock absorber for 15 inch liquidcrystal display

Outline of the Green Procurement Survey

Potential effects

Whether the regulatedchemical substances areused or not

Whether the approachesare made or not againstenvironmental issues

1.Whether equipped with soot and smoke emitting facilities as provided in Air Pollution Control Law or not.2.Whether there is discharge of specially controlled industrial wastes as provided in the Law concerning the Disposal

and Cleaning of Wastes or not.3.Whether there exists designated plant for thermal control and/or designated plant for power control as provided in

the Law concerning the Rationalized Use of Energies or not.4.Where there is the use or storage of "toxic substances" as provided in the Law concerning the control of hazardous

and toxic substances or not.

1.Environmental Management System2.Reduction and recycle of the wastes3.Energy-saving

4.Product design5.Procurement6.Disclosure of information

1.Ozone layer depleting substances (Contained in the product or not, Used in the manufacturing process or not)2.Asbestos, polychlorinated biphenyl (Contained in the product or not)3.Trichloroethane (Contained in the product or not, Used in the manufacturing process or not)4.Dioxin, furan(Contained in the product or not)5.Specific bromine-based flame retarding agent (Contained in the product or not)

magnetic disk units, etc.•Apply to the products (PC) of painting enabling the

recycled use of materials

(kg)0

50

100

150

200

250

Material

Production

Distribution

Use

Collection

Disposal

CO2 Em

issionExample of evaluation by LCA (Desk-top PC FMV-6450DX2)

Increase in the Use of Easily Recyclable ShockAbsorberThrough new structural measures such as piling up ofcorrugated cardboard or partial use of laminate corrugatedcardboard, we have developed easily recyclable shockabsorber that enables to reduce the weight and alsoenables the use for heavy products (Approx. 10kgs). Thenew material was started to be used for a total of 13models.

1313

Industrial Waste CutsOur company has been making efforts to reduce by the end of fiscal 2000 the amounts of wastegenerated in plants (waste acid and alkali, wastepaper, waste plastics, waste oil, etc.) to 80% ofthe results for fiscal 1991. We are accordingly attempting not only to reduce the amounts of wastegenerated, but also to use these wastes more effectively.

Targeted waste levelsfor the end of fiscal 2000

(ton)0

10,000

20,000

30,000

'94'93'92'91 '95 '96 '97 '98 '99(Fiscal year)

Changes in waste cut quantities

Quantity of waste

In fiscal 1998, we generated 5,443 tons of waste, which is a31.6% decrease from the figure for the previous year and an80% decrease from the figure for fiscal 1991. The target forfiscal 1998, which was a 73% reduction from fiscal 1991,was thus met. This 80% reduction indicates that we haveattained the target for the end of fiscal 2000.

Principal measuresReduction of waste at their origin•Separation and recovery of copper powder generated

from the printed circuit boardsNagano Plant (17 tons)

•Volume reduction of waste plastic (polystyrene foam andvinyl waste) by crushing and compressing

Nasu Plant (17 tons)•Reduction of the quantity of use of chemical through the

review of the effective using period of chemicalSuzaka Plant (4 tons)

Effective use of waste•Use of sludge as raw material for cement

Aizuwakamatsu Plant (260 tons)•Use of waste plastic (waste molded products, etc.) as fuel

Kumagaya Plant (39 tons)•Reuse of toner cartridge

Kawasaki Plant and Nasu Plant (total: 35 tons)

Investment in equipmentA total of 103 million yen(cumulative total of 216 million yen for the past 4 years)•Installation of waste volume reduction equipment

37 million yen Kanuma Plant•Installation of waste plastics compressing volume

reducing equipment27.5 million yen Nagano Plant

and others

Changes in effective use of waste

(ton)0

10,000

20,000

30,000

'91 '92 '93 '94 '95 '96 '97 '98(Fiscal year)

Effectively used amounts

•Waste acid/alkali•Wastepaper•Waste plastic •Waste oil •Sludge

•Metal waste •Combustion residue •Glass waste •Wood waste

[ Objects of Reduction ]

Industrial Waste Cuts

Separation and collection of waste(Nagano Plant)

1414

Total of5,443 tons

Total of5,443 tons

Kawasaki21% Acid/alkali

30%

Paper26%

Plastics22%

Sludge6%

Oil8%

Others8%

Akashi13%

Aizuwakamatsu14%

Iwate13%

Nagano9%

Oyama8%

Others22%

[ By plant ]� [ By category ]�

Amount of waste (Fiscal 1998)

Principal Plans for Fiscal 1999•Reduction of waste plastic to heavy oil

Nagano Plant (Effective utilization: 103 tons)•Improvement of concentration ratio of waste alkali and

waste acidKanuma Plant (Reduction: 150 tons)

•Extension of the reuse of toner cartridge to other plants

•Effective use of kitchen garbage as organic fertilizerIn collaboration with the farmers who avoid the use ofagricultural chemicals, we have started the cultivation ofgreen vegetables (lettuce, cabbage, etc.) with organicfertilizers made from the kitchen garbage from thecompany cafeteria. The grown vegetables started to beused as food material at the company cafeteria.The above was a great step forward to "food circulationsystem" from kitchen garbage to fertilizer to vegetables.In fiscal 1999, it is planned to grow 1 ton of lettuce and 5tons of cabbage.

•Reuse of copper chloride at the overseas affiliateFujitsu Computer Products of Vietnam is transformingthe copper chloride generated at the plating process intocopper oxide with chemical reaction. This enabled us todecrease the amount of wastes to 1/4 of what used to be.The obtained copper oxide has been exported to Japanand used as the raw material for ferrite since January1999.

* For the import of copper oxide to Japan, the proceedings required byBasel Convention are being followed.

* Basel ConventionAn international convention regulating export, import, transportationand disposal of hazardous wastes. It became effective in 1992.

K a w a s a k i p l a n t

Company cafeteria

Generated kitchen garbage

Production of fertilizer

Providingfertilizer

Sellingorganically

grown vegetablesin the plant

Farmers

Organicallygrown vegetables

Use of organicallygrow

n vegetablesat the com

pany cafeteria

Recycling of kitchen garbage

Facility to reuse copper chloride (Fujitsu Computer Products of Vietnam)

Other Efforts

1515

Reduction of Release of ChemicalsWith a target to reduce by the end of fiscal 2000 the release of those chemicals used in ourmanufacturing process (fluorine compounds, xylene, toluene, etc) by 20% compared with theresults of fiscal 1995, we have been making efforts to decrease their use, to switch to substitutesand to control their releases.

(ton)0

20

40

60

'95 '96 '97 '98 '99 (Fiscal year)

Changes in the release of chemicals

Quantity of release

Targeted release reductionfor the end of fiscal 2000

*2

The quantity of release*1 in fiscal 1998 was 43.6 tonsrepresenting a reduction of 22.1% from the previous yearlevel and 16.4% reduction (8.5 tons) from the level of fiscal1995. The 15% target for the fiscal 1998 was achieved.In order to attain the 20% reduction (10.4 tons) which isthe target for fiscal 2000, we are going to realize furtherreduction of 1.9 tons in 2 years of fiscal 1999 and fiscal2000.

(ton) (Fiscal year)

0

20

40

60

Quantity of release

'95 '96 '97 '98Fluorine compounds

(ton) (Fiscal year)

0

20

40

60

Quantity of release

'95 '96 '97 '98Xylene

(ton) (Fiscal year)

0

20

40

60

Quantity of release

'95 '96 '97 '98Toluene

Principal Measures Implemented•Reduction in the quantity of use of coating material

containing xylene or toluene realized by the change incoating from both sides coating to one side coating or byelimination of coating with the adoption of stainless steelmaterial ...... Oyama Plant (3.9 tons reduction in release)

•Reduction in the quantity of use of coating materialcontaining xylene or toluene realized by the review of thecoated area .. Akashi Plant (2.4 tons reduction in release)

•Building of an organic exhaust treatment facility forxylene in the resist process for semiconductor devicemanufacturing

Aizuwakamatsu Plant (0.8 ton reduction in release)/ Operation was started in January 1999.

•Elimination of the use of toluene in the final inspectionprocess with the use of a substitute (ethyl alcohol)

Kanuma Plant (0.03 ton reduction in release)

Others•Suspension of the use of fluorine compounds by the

termination of PlantAizuwakamatsu Plant (3.3 tons reduction in release)

*1 Calculation of the quantity of the release of chemicalsIt is calculated by measuring the concentration of chemicals releasedthrough the outlet or vent holes of each plant, and then multiplying itby the total quantity of released water (in the case of fluorinecompounds, nickel compounds, manganese compounds, etc.) or totalquantity of gases (in the case of xylene, toluene, etc.) or based on thebalance of chemicals (in the case of xylene, toluene, etc.)

*2 Reason for the increase of the release in fiscal 1997 is attributed tothe increase in the quantity of use of xylene, etc. accompanied withthe operation of additional production line.

Xylene organic exhaust treatment facility (Aizuwakamatsu Plant)

Reduction of Release of Chemicals

•Fluorine compounds •Xylene •Toluene •Nickel compounds •Manganese compounds•Lead compounds •Cadmium compounds •Chromium compounds

•Arsenic compounds •Bromine compounds•Cyanide compounds •Phosphine •Hydrazine derivatives •Phenol •3,3-dichloro-4,4-diaminodiphenylmethane

[ Objects of Reduction ]

1616

Principal Plans for Fiscal 1999•Operations throughout the year of the organic exhaust

treatment facility for xylene in the resist process forsemiconductor device manufacturing

Aizuwakamatsu Plant (1.6 ton reduction in release)•Reuse of solvent through the introduction of solvent

recovery facility to the coating process.Akashi Plant (0.1 ton reduction in release)

Other EffortsWe have developed and operated since January 1998, theMSDS*1 data retrieval system*2. In fiscal 1998, we registered information on around 500chemicals (cumulative total:1,624 chemicals)In the event some chemicals are intended for newly use,the environmental management sector will study inadvance the manner of the use, and other issues such astoxicity, environmental pollution possibility, etc. andexamine whether they could be used or not.

Display of the Materials Safety Data Sheet (MSDS) data retrieval system

Total of43.6 tons

Total of43.6 tons

Mie22.1%

Aizuwakamatsu40.0%

Iwate13.7%

Oyama17.4%

Others 1.5%

Akashi5.3%

Fluorine compounds60.4%

Xylene35.5%

Toluene3.6%

Others 0.5%

[ By plant ]� [ By category ]�

Amount of released chemicals (Fiscal 1998)

*1 MSDS: Material Safety Data Sheet*2 MSDS retrieval system:

A system for retrieval and reading of information on the intranet, toensure the safe and proper management of chemicals, coveringphysical and chemical features of chemicals, measures at the time ofemergency, and other information relating to dangers, toxicity,environmental impact, etc.

1717

Energy-saving Measures (Measures for Global Warming)We have been making efforts to achieve by fiscal 2000 a targeted 20% to 30% reduction of sales-basedelectricity consumption per unit compared with the results for fiscal 1990, by diffusing common energy-saving technologies such as inverters at plants and offices and effective use of cold outside air,applying extensively the energy-saving assessment system in introducing manufacturing equipment.

Energy-saving ResultsSales-based power consumption per unit (basic unit ofenergy consumption) for fiscal 1998 was 38.6 MWh/100million yen, which was a decrease by 5.2% compared withthe figure for the previous year and by 30.8% comparedwith the results for fiscal 1990. The target for fiscal 1998,which was a reduction of 29% was attained as well as thetarget for fiscal 2000.

Reference:The total energy consumption (i.e., the total of consumedelectricity, oil and gas) for fiscal 1998 is represented as180,000 ton-C*1 (5.7 ton-C/100 million yen in sales-basedfigure) in terms of CO2 release, which correspond to adecrease by 10.8% from the previous year and by 8.4% fromthe fiscal 1990 result.

Principal measures implemented•Operation control of equipment in response to the

fluctuation of the load with the use of inverter*2

Kawasaki Plant (2 units of Air-Conditioner fan, 3 unitsof cooling water pump)

Reduction: Total of 140 MWh•Control of the number of operating unit depending on the

fluctuation of the load through the collective operation ofmultiple equipment.

Numazu Plant (4 units of compressor)Reduction: 90 MWh

•Effective use of cool outside air in the winter timeNagano Plant (Cooling water for the equipment iscooled with outside air)Reduction: 60 MWh

•Automatic turn-off of lightingSystems Laboratory

(Collective turn-off of the light in office by timer,automatic lighting of toilet with the use of sensor)Reduction: 57 MWh

•Extension of the application of Energy Saving AssessmentSystem at the time of introducing manufacturing equipment

Kumagaya Plant, Akashi Plant, Suzaka Plant, MiePlant, Aizuwakamatsu Plant, Iwate Plant (Cumulativetotal: 10 Plants)

•Trial for the introduction of Electricity Monitoring Systemwith simple electric power monitor

Nagano Plant, Oyama Plant

Investment in equipment Total 270 million yen Renewal to high efficiency air conditioner and refrigerator

95 million yenIntroduction of inverters: 77 million yen Raw water heating equipment with the use of waste heat

65 million yenEtc.

0

20

40

60

80

100

'94'93'92'91'90 '95 '96 '97 '98 '99 2000(Fiscal year)

(%)

Energy Saving Committeebegan activitiesa

Reduction targetfor fiscal 2000

Electricity consumption reduction trend (indices)

Sales-based electricity consumption per unit

Inverters introduced to the fans of air-conditioning equipment(Kawasaki Plant)

Fiscal year

Consumption

1996 1997 1998

1,300,000 1,310,000 1,230,000

Results of Electricity Consumption Unit: MWh

(Total of 14 plants)

*1 ton-C:Represents only the weight of carbon (C) contained in CO2.

*2 InverterA device to control the power consumption by adjusting the operatingcondition to the optimum state (by way of rotation control) inresponse to the loads applied to the equipment.

1818

Management of Plants and Offices in accordance with the Energy-saving Rate*1

The "energy-saving rate" has been introduced as index formanagement to comprehend and manage the state ofenergy saving at each plant/office since fiscal 1993. Interms of crude oil, energy savings of 16,950 krwererealized in fiscal 1998, while the consumption figuretotaled 397,000 krof energy. Accordingly, the energysavings rate for that year came to 4.09%, which met ourpractical aim of 2%.

Establishment of Energy Saving Targetfor Fiscal 2010

Based on the international targets agreed at the 3rdSession of the Parties to the United Nations FrameworkConvention on Climate Change (COP3) and "KeidanrenVoluntary Action Program on the Environment", we arestudying a new energy-saving target with the fiscal 2010 asthe target year. In addition to electricity, we include the oiland gas as the targets for saving and also we include thosefacilities falling under the category of the Type 2Designated Energy Management Plant. The reduction ratecalculation will be changed from electricity consumptionto generation of CO2.

Principal Plans for Fiscal 1999•Setting of concrete targets for fiscal 2005 (mid-term

target) and that for fiscal 2010 •Further introduction and extension of inverters and

power saving devices in plants and offices•Inverter: Kawasaki, Oyama, Nagano, Numazu,

Kumagaya, Akashi, Suzaka, Mie Plants, etc. (Total:139)

•Power saving devices: Nagano Plant, TatebayashiSystems Center, Aomori Systems Laboratory, SystemsLaboratory (Total: 14)

•Co-generation system: Iwate Plant (1 system,postponed from fiscal 1998)

•Introduction of a system to comprehend electricityconsumption using simple electric power monitors toplants

(%)0

1

2

3

4

'93 '94 '95 '96 '97 '98(Fiscal year)

Energy-saving rate

Changes in energy-saving rate

Electricity80.3%

Oil16.6%

Gas2.7%

Others 0.4%

Iwate20.1%

Mie13.9%

Nagano11.5%

Aizuwakamatsu11.4%

Kawasaki11.1%

Numazu6.1%

Akashi5.0%

Others20.9%

[ By plant ] [ By category ]

Energy use (Fiscal 1998)

*1Energy saving rate = Saved energy

Total energy consumption + saved energy

Saved energyReduced energy-use amount using energy-saving measures

Total energy consumptionTotal of consumed electricity, oil and gas.

1919

Introduction of Environmental Accounting SystemWe introduced "Environmental Accounting", which was to grasp environmental protection cost andeffect quantitatively and evaluate environmental investment and effect, from fiscal 1998. The U.S.Environmental Protection Agency and Environment Agency of Japan have already publishedguideline to grasp environmental cost, but there are no guideline to calculate the effect.Therefore, we made our own "Environmental Accounting Guideline". We also obtained, for thefirst time in Japan, the certification of the third party organization. We will make our continuedeffort to identify more clearly the relationship with the effect of reduction in environmental load.

Purpose of introduction 1. To express corporate attitude by information disclosure (By annual report, environmental report, etc.) 2. To conduct long-term, continuous environmental countermeasure 3. To conduct effective environmental investment Features1. Calculated not only Fujitsu's results, but also consolidated results including 138 domestic/overseas main consolidated

subsidiaries 2. Classification of cost is based on "Guideline to grasp and publish environmental protection cost" (March, 1999) announced

by Environment Agency of Japan 3. Contribution of environmental protection activities within value added by manufacturing activities, cost reduction made by

reducing of environmental load, etc., were included in effect. 4. Established "Environmental Accounting Guideline" Basic concept 1. To grasp Fujitsu's and consolidated results (Including overseas consolidated subsidiaries) 2. To calculate cost/effect not only concerning environmental protection but also concerning environment related products 3. To grasp effect quantitatively in terms of amount of money

*As for environmental load reduction activity for each item, please see ref. page.

Item Scope

Cost

Effect

1. Direct cost Cost for environmental protection activities to secure manufacturing activities

2. Indirect cost Cost for environmental promotion activities(Personnel expenses) and for obtaining and maintenance of ISO

3. Energy saving cost Cost for energy saving measures

4. Recycling cost Cost for collection and recycling of products

Cost for treatment of wastes

5. R&D cost Cost for R&D of environmentally conscious products and environmental countermeasure technologies

6. Social activity cost Cost for promotion of greening, making of environmental activity report, environmental advertisement, etc.

7. Other environment related cost Cost for cleaning of soil contamination and dioxin countermeasure (Cost for countermeasure against environm

Total

1. Environmental protection activity Contribution of environmental protection activities within the value added by manufacturing activities

to support manufacturing

2. Energy saving activities Cost reduction made by reduction of use of electricity, oil, and gas

3. Recycling activities Sold price of valuable parts and reused parts after waste products recycling

Cost reduction made by waste reduction

4. Risk management Avoided loss of plant operation by not observing laws and regulations

Avoided compensation to residents and insurance saving made by groundwater contamination countermeasure,

and difference made by abolition of incinerators for dioxin countermeasure

5. Environmental business activities Contribution of environmental business products(MSDS management system,

environmental monitoring system, and so on)

6. Efficient environmental activities Effect of paper reduction, cost reduction by using of management system

7. Environmental education Effect of in-house education by ISO14001 establishment consultant, auditor education, and so on

Total

Result of Environmental Accounting on fiscal 1998

Environmental Accounting System

2020

Certification by Third PartyIn order to raise the reliability and transparency of theresult of our environmental accounting, we have obtained,for the first time in Japan, the third party (Showa OhtaEnvironment & Quality Laboratory) certification.An examination was made for about one month withrespect to the collection process of information concerningthe environmental cost and effect, collation with basematerial and correctness of calculation whether they aremade in conformity with "Environmental AccountingGuideline".During the examination, examination was also conductedat our plant as well as at affiliate companies.

Future PlanIt is our plan to grasp quantitatively cost vs. effect relatingto environmental protection, and disclose the result. Also,we intend to obtain the certification of the third partyorganization continuously from now on.

Fujitsu Consolidated Total Ref.Subsidiaries Page

42 35 77 21,22

14001 certification 11 15 26 7,8

8 1 9 17,18

2 2 4 9,10

8 8 16 13,14

1 5 6 11,12

2 3 5 24,27

ental risks) 6 1 7 22,23

80 70 150

37 23 60 21,22

6 3 9 17,18

5 29 34 9,10

1 2 3 13,14

18 14 32 21,22,23

9 5 14

5 3 8 29,30

13 3 16 24

3 2 5 25,26

97 84 181

The third party opinion

(Unit: 100 million Yen)

21

Plant Environmental Control Measures

Protecting the Water and AtmosphereTo protect the water and atmosphere, we have been making efforts to prevent pollution by setting our own environmentalstandards that are stricter than the corresponding national and local laws and regulations. We have also been measuringspecific environmental values on a regular basis and maintaining and managing environmental protection facilities. In fiscal1998, none of the relevant measurements had exceeded our voluntary standards.

ItemRegulated value Measured value(maximum)

IFiscal 1996 Fiscal 1997 Fiscal 1998

Effluentfromplants

Hazardoussubstances

Generalitems

Cadmium 0.1 0.1 0.01 ND(<0.01) 0.005 ND(<0.005)Total cyanogen 1 1 0.5 ND(<0.01) 0.01 ND(<0.01)Organic phosphorus 1 1 0.1 ND(<0.1) ND(<0.1) ND(<0.1)Lead 0.1 0.1 0.05 ND(<0.05) ND(<0.005) 0.009Hexavalent chromium 0.5 0.1 0.05 ND(<0.01) ND(<0.01) ND(<0.01)Arsenic 0.1 0.1 0.05 ND(<0.01) ND(<0.01) ND(<0.01)Total mercury 0.005 0.005 0.0005 ND(<0.0005) ND(<0.0005) ND(<0.0005)Organic mercury ND ND ND ND(<0.0005) ND(<0.0005) ND(<0.0005)PCB 0.003 0.003 0.001 ND(<0.0005) ND(<0.0005) ND(<0.0005)Selenium 0.1 0.1 0.01 ND(<0.01) ND(<0.01) ND(<0.005)Benzene 0.1 0.1 0.01 ND(<0.01) ND(<0.01) ND(<0.01)Trichloroethylene 0.3 0.3 0.03 0.01 ND(<0.01) ND(<0.01)Tetrachloroethylene 0.1 0.1 0.01 ND(<0.01) ND(<0.01) ND(<0.01)1,1,1-Trichloroethane 3 3 0.3 ND(<0.01) ND(<0.01) ND(<0.01)Carbon tetrachloride 0.02 0.02 0.01 ND(<0.01) ND(<0.01) ND(<0.01)Dichloromethane 0.2 0.2 0.02 ND(<0.01) ND(<0.01) ND(<0.01)1,2-Dichloroethane 0.04 0.04 0.01 ND(<0.01) ND(<0.01) ND(<0.01)1,1,2-Trichloroethane 0.06 0.06 0.01 ND(<0.01) ND(<0.01) ND(<0.01)1,1-Dichloroethylene 0.2 0.2 0.02 ND(<0.02) ND(<0.02) ND(<0.02)cis-1,2-Dichloroethylene 0.4 0.4 0.04 ND(<0.04) ND(<0.04) ND(<0.04)pH 5.8-8.6 5.8-8.6 6.0-8.0 7.8 7.6 7.6Biochemical oxygen demand (BOD) 160 30 25 9 14 12.6Chemical oxygen demand (COD) 160 30 30 10 6.0 6.0Suspended solids (SS) 200 50 30 15 20.4 17.6n-Hexane(mineral) 5 5 2 ND(<0.5) 1.2 ND(<0.5)n-Hexane (animals and plants) 30 10 5 ND(<0.5) 22 ND(<0.5)Phenols 5 1 0.5 ND(<0.1) ND(<0.1) ND(<0.1)Copper 3 3 1 ND(<0.05) 0.25 ND(<0.05)Zinc 5 5 1 0.22 0.2 0.19Soluble iron 10 3 1 0.59 0.75 0.41Soluble manganese 10 3 1 ND(<0.05) ND(<0.05) ND(<0.05)Total chromium 2 2 0.5 ND(<0.2) ND(<0.05) ND(<0.05)Fluorine 15 8 5 0.61 1.04 0.88

ItemRegulated value Measured value(maximum)

IFiscal 1996 Fiscal 1997 Fiscal 1998

Boiler

No.1

No.2

No.3

No.4

Nitrogen oxides (ppm) 180 180 150 71 89 82Sulfur oxides (Nm3/h) 14.1 5.6 4.0 1.6 1.8 1.8Soot and dust (g/Nm3) 0.3 0.3 0.2 0.001 0.011 0.008Nitrogen oxides (ppm) 180 180 150

No117 140

Sulfur oxides (Nm3/h) 19.8 7.9 5.6installed

1.4 1.8Soot and dust (g/Nm3) 0.3 0.3 0.2 0.008 0.005Nitrogen oxides (ppm) 180 180 150 140 127 120Sulfur oxides (Nm3/h) 20.3 8.1 5.8 1.4 1.9 1.4Soot and dust (g/Nm3) 0.3 0.3 0.2 0.003 0.017 0.027Nitrogen oxides (ppm) 180 180 150

Not96 85

Sulfur oxides (Nm3/h) 13.5 5.4 3.9installed

1.2 1.5Soot and dust(g/Nm3) 0.3 0.3 0.2 0.002 0.007

Atmospheric measurement results*1 (Case example: Oyama Plant)

Wastewater measurement results*1 (Example of Oyama Plant) ND: Not detected Unit: ppm (mg/R)

Japanesestandard

Prefecturalstandard

In-housestandard

Japanesestandard

Prefecturalstandard

In-housestandard

22

Noise and VibrationTo prevent the adverse effects of plant-generated noise and vibration on houses in neighboring areas, we have set voluntarystandards, and have measured their values on a regular basis. In fiscal 1998, we found a case of one plant that exceeded thesestandards. However, countermeasure was immediately taken by installing noise proof wall. We are conducting more activitiesto further reduce the noise level.

Efforts against Soil and Underground Water ContaminationThe use of organic chloride compounds (trichloroethylene,methylene chloride) was completely stopped by the end ofSeptember 1995 and we have been continuing the survey ofsoil and underground water.In June 1998, to respond to the survey "Underground waterpollution by organic chlorine compounds" conducted bythe Ministry of International Trade and Industry, welaunched the emergency committee to considercountermeasure and at the same time conducted a surveyof "Used Quantity of Chloride Compounds in the Past" and"Actual Status of Soil and Underground Water" at 15Fujitsu sites and consolidated companies (28manufacturing companies). As the results of the survey, itwas found that the environmental standards wereexceeded at some parts of 5 sites out of 15 sites of Fujitsuand 7 companies out of 28 consolidated manufacturingcompanies. With respect to these cases, we immediatelyreported to each competent authority and under theinstruction from the authority, we are promoting therequired measures, aiming at healthy recovery of soil andunderground water.

Boring survey

ItemRegulated value Measured value(maximum)

IFiscal 1996 Fiscal 1997 Fiscal 1998

Noise

Vibration

Day time 75 65 57 56 57

Morning & evening 70 60 57 57 58

Night time *2 60 55 55 55 55

Day time 70 60 45 45 39

Night time 65 55 45 45 37

Noise and vibration measurement results*1 (Example of Oyama Plant) Unit: dB

Japanesestandard

Prefecturalstandard

In-housestandard

*1 For those items the results were higher than the previous year'sresults, continued monitoring and control are to be made.

*2 The national standards shall not apply because the subject area isdesignated as exclusive industrial zone.

23

Plant Environmental Control Measures

Efforts against Environmental Endocrine DisruptorsWith respect to 67 chemicals announced by theEnvironment Agency of Japan as being suspected of havingendocrine disrupting effects to human beings, weconducted a survey of their use at our plants (in fiscal1997). Simazine and Manzeb, herbicides that had beenused to keep the garden of our plants were switched tosubstitute chemicals and their use was completely stopped.With respect to those chemicals listed in the followingtable, we are also promoting the reduction of their use orswitching to substitute chemicals. In fiscal 1998, a chemical (diethyl phthalate) was newlyadded to the list of chemicals we use. It is our plan toestablish internal system during fiscal 1999 so that athorough control of these chemicals will be made.

Chemicals Quantity of Major useconsumption

Nonyl phenol 225 Degreasing agentBisphenol A 0.96 Raw material for resinsDimer and trimer of Styrene 0.02 Molded materialDi-2-ethylhexyl Phthalate 0.02 Viscosity adjusterDi-n-butyl Phthalate 1.8 Plasticizer, ReagentDiethyl Phthalate 0.28 Viscosity adjuster

Condition of use of environmental endocrine disruptorsin plants (Fiscal 1998) Unit :Kg

Efforts against DioxinAs a countermeasure for the generation of dioxin, theincineration facilities installed at our plants are beingeliminated.At our Numazu Plant, the incinerator is still beingoperated, after making special measures to control thegeneration of dioxin, because the disposal of paper andother wastes is required to be done within the plant incompliance with the Pollution Prevention Agreement withthe local authorities. However, it is our plan to stop itsoperation by March 2000.

•Oyama Plant Stopped in November 1998•Tatebayashi Systems Center Stopped in November 1998•Kanuma Plant Stopped in March 1999•Akashi Plant Stopped in April 1999•Numazu Plant Scheduled to be stopped in March 2000

Incineration facilities which was stopped tobe used (Akashi Plant)

Elimination of Ozone-Layer Depleting SubstancesWe had been using substitute freon (HCFCs) for thelubrication of media, but we completely eliminated its useat the end of March 1999 with substitutive technologiesdeveloped internally.Furthermore, when replacing old air conditioners in plantsand offices with new ones, we are also replacing freon asrefrigerant with non-freon chemicals

Efforts against Greenhouse GasesWith a view to controlling and reducing the emissions ofgreenhouse gases such as perfluorocarbons (PFCs),hydrofluorocarbons (HFCs), and sulfur hexafluoride (SF6),the semiconductor industries have established theirvoluntary action plan.To accomplish this plan, we are making efforts on thedevelopment, evaluation and collection of informationconcerning the substitutive technologies, elimination aswell as the recovery method. Such efforts are beingconducted mainly by our electronics device sector incooperation with related industries. We also conducted thesurvey of released quantity in fiscal 1997 and reported it toElectronic Industries Association of Japan.We will continue our effort and try to realize our internalreduction program prepared following the reductiontargets agreed upon at the World SemiconductorConference.

Efforts on Pollutant Release and Transfer RegisterSystem (PRTR*1)

Aiming at the reduction of release to the atmosphere andto the water of chemicals that may cause environmentalpollution and the reduction of their transfer amountcontained in the waste, the "PRTR guideline in the Electricand Electronic Appliances Industries" was establishedjointly by 5 related organizations of the electric andelectronic appliances industries. We introduced PRTRsystem based on this guideline.It is our plan to continue our internal survey to grasp theamount of our release and transfer of pollutants (179chemicals) and continue to make effort to reduce releaseand use of them.

*1 PRTR:A system requiring business corporations to report the amount ofrelease and disposal of the chemicals. The content of the report is tobe disclosed by the administrative organs.

24

80,000

90,000

100,000

0

5

10

15

'95 '96 '97 '98(Fiscal year)

(%)

Changes in total number of trees

Total number of trees

Increase rate of trees

Promotion of Plant GreeningFor ecological greening*1, we have implemented the GreenUp 10 activity with a goal of increasing the total number oftrees at our plants by 10% compared with the figure forfiscal 1995 by the end of fiscal 1998. In fiscal 1998, weplanted a total of approx. 4,500 trees at our plants, whichincreased the total number of trees at these plants by13.5% compared with the figure for fiscal 1995. We haveattained the 10% target for fiscal 1998.The number of trees planted during the past three yearswas approx. 12,300, making the total approx. 103,500.Greening by employees' own initiative is also being carriedout in many plants. At Oyama and Kumagaya Plants,greening clubs were started to promote the activities.Starting from fiscal 2000, we plan to launch "Green Life 21(Greening activity harmonized with the life of varieties ofcreatures)" aiming at promoting the greening of our plantsand overseas tree-planting that can "coexist" with widevarieties of creatures and natural environment.

*1 Ecological Greening:Creation of a land abundant in green plants where all creatures cancoexist and thrive, with an aim of preserving nature and theenvironment, and creating harmony with the surroundingenvironment

Promotion of Reducing PapersWith the aims at preserving our forests, reducing amountsof paper waste generated etc., we have been implementinga reducing papers campaign by promoting the use ofnetworks and electronic manuals. In fiscal 1998, wereduced paper consumption by approx. 165 million sheets(letter size).

Implemented measures(reduced paper sheets in letter size)

•Supply of business information through the intranet38 million sheets

•Supply of OA software manuals through the Intranet:25 million sheets

•Supply of manuals by way of CD-ROM 20 million sheets•Applications of electronic slips 16 million sheets•Others: 66 million sheets

In fiscal 1999, we will focus on measures which will bringgood results, e.g., electronic manuals.

Greening of open space (Minamitama Plant) Greening by greening clubs (Oyama Plant)

25

Environmental Education and EnlightenmentWe have been implementing continuous and repetitive education and enlightenment because allemployees' environmental awareness and practice are necessary to promote environmentalactivities.

Education for Office WorkersSeparated by

Hierarchical Level

Environmental Conscious Product Designing Course

Reducing of Environmental Load in the Manufacturing Divisions Course

Environmental Conscious Procurement of Materials and Parts Course

Course for Newly Assigned Plant Managers (Environmental Control Executives)

Course for Newly Assigned Management Staffs of Environmental Control Divisions

Environmental Engineer Course

Environmental Engineer Course (for newly assigned employees)

Education of Managers

Education of Staffs

Education of New Employees

Human Resources Developm

ent Standard

Technical EducationGeneral Education

Common Courses

Environmental education system

Divisional Courses

(For Environmental Control Divisions)

Course

Executing Environmental EducationWe executed environmental (technical, general) educationin accordance with "The Standard for the Implementationof Environmental Education".

Technical Education•Common Courses

Environmental Conscious Product Designing Course2 times 47 attendees

Reducing of Environmental Load in the Manufacturing DivisionsCourse 1 time 17 attendeesEnvironmental Conscious Procurement of Materials and PartsCourse 1 time 26 attendees

•Divisional Courses (Environmental control division)Course for Newly Assigned Plant Managers and Newly AssignedManagement Staffs of Environmental Control Divisions

1 time 6 attendeesEnvironmental Engineer Course (for newly assigned employees)

1 time 14 attendeesTotal 6 times 110 attendees

In the course "Environmental Conscious Product DesigningCourse", fieldwork at the recycle center was also conducted.

General Education•Education for office workers separated by hierarchicallevelEducation of managers 2 times 198 attendeesEducation of staffs 2 times 78 attendeesEducation of new employees 12 times 1,168 attendees

Total 16 times 1,444 attendees

In fiscal 1999, we plan to open courses for sales sectorpersonnel.

Environmental Engineer Course (for newly assigned employees)

Fieldwork at recycle center

26

Executing Enlightenment ActivitiesIssuing the "Eco-Plaza" environmental bulletinSince September 1994, we are publishing "Eco-Plaza", anin-house bulletin to present our environmental efforts andtopics. The bulletin is published regularly and isdistributed to domestic and overseas affiliates also. Infiscal 1997, Vols. 16-19 were published. With the supply onthe Intranet, we made a big reduction of circulation inpaper (from 2400 copies to 480 copies).

Opening a homepage in companyWe have opened the Eco Intranet homepage in August1996 to continuously provide information on generalenvironmental topics and events and specializedinformation such as corporate-wide environment ISOinformation. (Cumulative number of access:75,000) Infiscal 1998, we provided about 190 articles. We also addednewly the design information of environmentally consciousproducts, information on environmental standard, andmade mutual links of homepages with our group to sharethe environmental information.

Events for environmental monthWith June "Environmental Month" (advocated by theEnvironment Agency), we held various events within thecompany and domestic affiliates with the participation ofmany people including executives as well as employees.

Major eventsEnvironmental lecture:

a total of 27 lectures with approx. 1,700 participants Presentation of video programs on the environment:

a total of 15 presentations with approx. 1,300 participants Call for environmental slogans:

Approx. 6,500 slogans submitted Tour in environmental facilities:

a total of approx. 50 participants Sales of organically grown vegetables:

Approx. 300 mealsOthers

Call of suggestions relating to environmental protectionPlanting of trees commemorating the Environmental MonthPublic Relation corner specially for environmental issue wasinstalled

Eco-Plaza (Intranet)

Environmental Lecture

Sales of organically grown vegetables

27

Open Environmental InformationWe publish environmental report regularly to disclose information on environmental activities andresults to the public actively, so that activities can be understood by many people. We alsorelease such information on the Internet to get opinions and suggestions, and participate inexhibitions.

Publishing of "1998 EnvironmentalActivity Report"

Starting in fiscal 1996, we are publishing annual reports onour environmental activities.In fiscal 1998, we published the "1998 EnvironmentalActivity Report" which outlines the results of theenvironmental activities (mainly by numerical data) infiscal 1997, and distributed it to domestic and overseascustomers, administrative organizations, local self-governing bodies, environmental protection organizations,etc. (7,600 copies in Japanese). This report can be seen onthe public home page "Environmental Information" both inJapanese and English.

1998 Environmental Activity Report

Releasing Information on PublicHomepage

We set up a public homepage entitled "EnvironmentalInformation" in April 1997 to release information oninternal activities, participation in external events andinformation on environment conscious products on atimely basis. In fiscal 1998, we released 22 information andreceived a total of 83 (out of which 24 from overseas)comments, suggestions, and questions.

Participation in External ExhibitionsWe have actively participated in the environment-relatedexhibitions held in various parts of Japan:Participation•Exhibitions attached to "IGES-Urbanization and

Environment/IHDP-Industrial Transformation/Kita-Kyushu Workshop"(Held by Institute for Global Environmental Strategies)

•Manufacturing Exhibition (Held by TEPIA Foundation)•Ishikawa Cool Earth Fair '98

(Held by Ishikawa Environmental Partnership PrefectureMember Meeting)

•'98 Environment Festival and Citizen's Life Exhibition(Held by City of Aizuwakamatsu and others)

•Eco-Messe Chiba 1998(Held by Eco Messe Chiba 1998 Action Committee)

•'98 Kyoto Environment Festival(Held by Kyoto Environment Festival Action Committee)

•Fujitsu Solution Fair '98(Held by Fujitsu)

And others: Total 15

Ishikawa Cool Earth Fair '98

• Details of comments, suggestions, and questions:Environmental Activity Report 32Products recycling 13Others 38

Homepagehttp://www.fujitsu.co.jp/hypertext/About_fujitsu/environment/index-e.html

28

Social Service Activities

Social Service ActivitiesWe implement social service activities in a wide range ofareas including environment, science and education,international exchanges, culture and art, and socialwelfare (development of related equipment). In the area ofthe environment, we participate in, and support overseasforestation activities, regional service activities andexternal organizations.

Chairman Sekizawa plant atree (Fiscal 1998,Thailand)

Mangrove to be planted (Fiscal1999, Vietnam)

Overseas Forestation Activities As a project for regenerating the tropical forest, weplanted, with the cooperation and support of RoyalFamilies of Thailand, 50,000 trees in the national park. Forthe commemorating plantation, around 300 peopleparticipated including officials of Thai Governmentrepresented by Minister of Agriculture and Forestry andemployees of our overseas affiliated companies.In fiscal 1999, we plan to make forestation activities inVietnam.

Regional Service ActivitiesWe participated in regional cleaning activities regularly,and picked up waste and cleaned roads, parking lots,parks, riversides, etc., around our plants (A total of 1,200employees participated).

Participating Activities of External OrganizationsWe actively participate in external organizations (about 30 organizations).

Main organizations which Fujitsu participated in Chemical Products Council, the Ministry of International Trade and Industry Committee on Environmental Protection of High Tech Industries, Kawasaki CityNetworking Group, Keidanren Committee on Nature Conservation Committee on Environmental Protection, Japan Electronic Industry Development Association Special Committee on Environment, Electronic Industries Association of Japan Environmental Preservation Committee, Communications Industry Association of Japan Environmental Management Committee, Japan Electric Manufacturers' Association Life-Cycle Assessment Society of Japan, Japan Environmental Management Association for Industry Examination Committee for Environmental Management Standard, Japanese Standards AssociationGreen Purchasing Network, Japan Environment Association Network for Environmental Reporting, Environmental Partnership Office Japan Forest Policy Research Institute

Cleaning of the road around our plant

Green Products

29

Environmental Related Products

Desktop PC: FMV6400CL2Improved recyclability is achieved through the use of easilyrecyclable polystyrene resin as plastic parts of 25g or more.And this PC has a function that reduces the electricityconsumption (This PC conforms to, and is registered with the"Energy Star Computers Program".).

Recyclable ratio 93%

Electricity consumption during stand-by 24W

Main environmental conscious items This product

Recyclable ratio 81%

Electricity consumption during stand-by 6W

Main environmental conscious items This product

Recyclable ratio 96%

Electricity consumption during stand-by 5W

Main environmental conscious items This product

Recyclable ratio 98%

Electricity consumption during stand-by 21W

Main environmental conscious items This product

Router: NetVehicle-S30Improved recyclability is achieved through the use ofbiodegradable plastic protective bags and easily recyclablepolystyrene resin and the elimination of coating and plating ofplastic parts. Energy saving is made with the setting of energy-saving mode.

Notebook PC: FMV-BIBLO 6366NA3/LImproved recyclability is achieved through the use of non-halogen flame retarding agent, recycled plastics and throughthe marking of materials on plastic parts of 25g or more. Andthis PC has a function that reduces the electricity consumption(This PC conforms to, and is registered with the "Energy StarComputers Program".) .

Page Printer: Printia LASER XL-5810Improved recyclability is achieved through the marking ofmaterial on plastic parts of 25g or more and the elimination ofcoating and plating of plastic parts. And this printer has afunction that reduces the electricity consumption (This printerconforms to, and is registered with the "Energy Star ComputersProgram".).

30

MSDS*1 Automatic Preparation System: eco-MSDSThis system automatically judges the hazard and toxicity incompliance with national legislation based on the productinformation (chemicals) and composition information, andprepares MSDS. Further, through its distribution managementfunction, the system enables to make the management of thedestination, type and edition of the distributed MSDS, andthrough its composition management function, the systemenables to realize the unified control of raw materialinformation and MSDS.

Development of recyclable Manganese OxideAbrasiveWe have developed for the first time in the world the recyclingtechnology of abrasive used in the abrasion*2 process in themanufacture of Logic and Memory LSI's. This enables toreduce greatly the used quantity as well as the amount ofwaste.

Monitoring System of Environmental Load in theOffices: SLIMOFFICEThis is software to support the estimation and analysis ofcarbon dioxide emission generated directly or indirectly in theworkplace of office (non-manufacturing) sectors of company.This is one of the effective tools to obtain ISO14001certification or to implement it.

Manifest for Windows*3 Corporate-wideManagement System of Information on WasteThis system calculates the generated quantity, treated quantityand treatment costs of the waste at each manufacturing site atthe environmental control division in headquarters, etc. andenables to make unified management. Further, this systemenables to conduct an effective management works of wastesbased on various data such as "Quantity of waste classified bytypes", "List of works entrusted with waste treatmentcontractors", "Manifest slip management", etc.

Special features of this abrasive•Little waste liquid from the abrasion will be generated •95% or more of the abrasive can be recycled•Used quantity is decreased greatly (1/4 of conventionalabrasive)

•High speed abrasion (4 times or more compared toconventional abrasive)

*1 MSDS (Material Safety Data Sheet)*2 Abrasion process

Process to smooth the surface by way of chemical and mechanicaloperation without causing any damage on it, mainly used in multilayerwiring process of LSI.

*3 Windows is a registered trade name of Microsoft Corporation of theU.S. in the U.S. and other countries.

Product Substance

Logic to judge hazard and toxicity

Material Safety Data Sheet(MSDS)

Input product data

Button to direct automatic preparation

Distribution management

Prior input of composition information

History management

• Registration of destination• Condition of destination

• Edition of MSDS• Revision of MSDS

Prepare MSDS automatically

Disposal RecyclingOffice paperCorrugated cardboard

Combustible wastePolystyrene foam

Energy consumptionElectricity GasWater supply Gasoline

Division. A

Division. B

Division. C

SLIMOFFICECarbon dioxide emission

Waste discharge

Time-series transitionsMean value, comparison with that of same month in previous yearEmission rankingComparison with target value

Time-series transitionsAmount of use/disposalMean value, comparison with that of same month in previous yearEmission rankingRecycling ratioComparison with target value

Manganese dioxide

Dimanganese trioxide

Granular abrasive of manganese oxide

Abrasive of manganese oxide

Collection ofabrasive

Solution of granular abrasiveof manganese oxide

Manganese sulfatesolution

Recyclingsystem

Electrolysis

Abrasion

Heating

Grinding

Mixture with water

Removal of foreign substances with filter

Adding sulfuric acid and hydrogen peroxide water

Environmental control division in headquartersCalculation of quantity of wasteCalculation of treatment cost of wasteInformation of waste treating contractors

Site that generates waste

Site that generates waste

Site that generates waste

Collection and transport contractors

Intermediate and final treatment contractors

Information of completion of transportation

Report

Administrative divisions of Japan

Information of completion of treatment

Manifest information

31

Group Integrated ActivitiesTo tackle the environmental issues with domestic and overseas affiliates in unity, we holdconferences with those companies on a regular basis. We also hold presentation meeting andlectures, present awards, hold photo contests, etc., for the entire group.

Domestic Affiliated Companies' Environmental Protection CouncilThis is a council composed of the environmental controlofficers of 36 domestic affiliates, mainly manufacturingcompanies. Discussion about Fujitsu Group's commonpolicy and issues, and information exchange of the statusof the environmental protection efforts of each company,and relevant laws and regulations, etc were conducted (2meetings, total: 11 meetings).

Major output from discussion•Promotion of environmental conscious purchasing

activities-Green Purchasing•Promotion of the sharing of information relating to each

company's auditing of waste treatment contractors•Promotion of the development of environment related

homepages of each group company and its links witheach other

We had technical exchange meetings for each issue so thateach company's excellent environmental technology andknow-how may be shared and utilized within the groupcompanies (8 meetings, cumulative total: 29 meetings).

Subjects for the technical exchange meetings•Environmental Management System•Product Recycling•Industrial Waste Cuts•Reduction of Release of Chemicals•Energy-saving Measures•Measures against hazardous air pollutants

For example, at the technical exchange meeting onproduct recycling, presentations were made on lead-freesoldering, development of environmental consciouspackaging for notebook PCs, activities about environmentlabel, etc.

Domestic Affiliated Companies' EnvironmentalProtection Council

Technical exchange meeting of affiliatedcompanies

32

Participants to local conference of North America (Held in U.S.A)

Fujitsu Group Worldwide Environmental ConferenceBased on the agreement reached at the 2nd worldwide meeting (November 1997), local conferences were held at each region,i.e. North America and Asia & Oceania. The local conference in Europe is scheduled to be held in September 1999. The 3rdworldwide meeting is scheduled to be held in November 1999 in Japan.

North America: Held in September 1998•Companies participated: (5 companies, 8 persons)

Fujitsu Network Communications, Inc.Fujitsu Computer Products of America, Inc.Fujitsu Computer Packaging Technologies, Inc.Fujitsu Compound Semiconductor, Inc.Amdahl Corporation

•Principal results of discussions:The target for obtaining environmental management systemcertification was decidedActive promotion of the wastes recycling was decidedSharing of information on environment related activities

Asia & Oceania: Held in November 1998•Companies participated: (7 companies, 20 persons)

Fujitsu Component (Malaysia) Sdn. Bhd. (Malaysia)Fujitsu Microelectronics (Malaysia) Sdn. Bhd. (Malaysia)Fujitsu Computer Systems (Malaysia) Sdn. Bhd.

(Malaysia)Fujitsu Microelectronics Asia Pte. Ltd. (Singapore)Fujitsu (Thailand) Co., Ltd. (Thailand)Fujitsu Computer Products Corporation of the Philippines

(Philippines)Fujitsu Computer Products of Vietnam, Inc. (Vietnam)

•Principal results of discussions:Promotion of opening of environment related homepagesPromotion of information sharing with the use of e-mail onenvironment management system, energy-saving equipment,environmental protection equipment, etc.

Local conference of Asia & Oceania (Held in Malaysia)

Overseas Environmental Information NetworkThrough the network connecting overseas affiliates, we tried to utilize the environmental information effectively by sharing it.

Examples of major information provided•German industrial association's views concerning the ordinances on the disposal of information processing equipment in

Germany•State of environmental activities of competitors•Call for Environmental Contribution Award and Photo Contest

Number of network affiliated companies •North and South America 14•Asia & Oceania 25•Europe 16 (Total : 21 countries, 55 companies)

33

Group Integrated Activities

Fujitsu Eco-Forum '98In order to introduce the examples of environmentalactivities made by each affiliate as well as the relatedtechnologies and to raise the environmental awareness andpromote the implementation of the measures and topromote the sharing of information, we held Fujitsu Eco-forum '98 (Cumulatively 5 times).

In this year's Forum, examples of environment protectionactivities at manufacturing plants, examples of product-related technologies (products recycling technologies,development of packaging material), examples of researchand development were presented. Further, lecture wasgiven by outside lecturers on the recycling activities madeby other companies (Approx. 200 people participated).

Lecture (above) and presentation (below)

Environmental Contribution AwardsWe are conducting every year since fiscal 1995 the systemto give awards to plants, divisions or individuals whichrecorded remarkable performances with theenvironmental protection activities. In fiscal 1998, we hada total of 58 entries (50 from Japan and 8 from overseas),exceeding the previous year's 44, out of which 5Environmental Contribution Awards and 10 EnvironmentalContribution Incentive Awards were selected. The awardswere granted by the Chief Environmental Officer.

Awarded achievement:Environmental Contribution Awards:•Improvement of wastewater quality and coexistence with

the nature through construction of multi-purpose typebiotope at Kumagaya Plant. (Kumagaya Plant Environmental Protection Promotion Committee, Air,

Water Quality, Vibration, Noise Sub-committee)

•3,600 people's environmental control activities (Nagano Plant)

•Completion of FMV-BIBLO using electricity savingmanagement software, PowerPanel(WindowsNT*1 Development Planning Project, Software Group)

•Commercialization of environmental householdaccounting software, COCODIET, and its spreading.(Fujitsu FIP. environmental household accounting project)

•Pollution Prevention and Resource Conservation /Protecting The Earth(Amdahl's Headquarters)

Environmental Contribution Award ceremony (Mr.Otaki,Senior Vice President, Chief Environmental Officer: Right)

*1 WindowsNTWindowsNT is a registered trade name of Microsoft Corporation ofthe U.S. in the U.S. and other countries.

34

Environmental Photo ContestAiming at appealing the importance of environmental protection through the photos, we have held since fiscal 1995 photocontests including domestic and overseas affiliated companies. In fiscal 1998, we had a total of 267 entries (76 from Japanand 191 from overseas), exceeding the previous year's 75, out of which 1 picture received the 1st prize, 2 received the 2ndprizes, 1 received special prize and 5 received the 3rd prizes, and 8 honorable mentions.

1st Prize: Collecting Heavy Oil 2nd Prize: Shade in the Woods

Special Prize: Rocks

2nd Prize: Interdependence

35

External AwardsWe received honorable prizes from external organizations in recognition of our environmental

activities and technologies. We were granted "Third Prize" in "Green Reporting Award" in 2consecutive years.

Awarded PrizesTitle of prize Sponsor / Supporter Points receiving recognition

Green Reporting Awardcommendation ceremony

"Distinguishably ContributedPerson for RecyclingPromotion in fiscal 1998"commendation ceremony

"Third Prize" in "GreenReporting Award" (April 1998)

Sponsor:Toyo Keizai Inc. and Green Reporting Forum

Awarded for "1997 Environmental Activity Report".Basic environmental principles are clearly expressed. Efforts forreducing the environmental load are clearly shown. Its message iswell conveyed.

"Prize for Excellence forgeneral public" in"Spring Flower GardenContest" (April 1998)

Sponsor:Akashi City Green Park AssociationSupporter:Akashi City

Awarded to Akashi PlantIdea and design of the flower garden with an image of Akashi Bridgewith northpoles in the background filled with pansies were excellent.

"Gold Rank" in "NaganoEco Circle" (June 1998)

Sponsor:Nagano City

Awarded to Nagano Plant.Active efforts on environmental issues and remarkable resultsobtained by using its own methods in various areas, e.g. reductionand recycle of waste were excellent.

"Special Prize" in"Environmental ActionPlan Awards"(June 1998)

Sponsor:Zenkoku kankyo hozen suishin rengoukaiSupporter: The Environment Agency, MainichiNewspapers, and NHK

Awarded for "1997 Environmental Activity Report".Concrete targets are set for reducing the environmental load, andthen specific measures are formulated to achieve them.

"Excellence Prize"in "EnvironmentalAwards"(June 1998)

Sponsor:Environmental Research Centerand Nikkan Kogyo ShinbunSupporter:The Environment Agency

Awarded for the development of a recyclable manganese oxideabrasive.This is the first recycling technology for abrasion developed in theworld, which has made possible an abrasion process that does notgenerate wastes.

"Encouragement Prize"in "Saitama GlobalEnvironment Award"(June 1998)

Sponsor:Saitama Prefecture

Awarded to Kumagaya Plant.The plant established environmental principles, and has beenproducing result by concrete measures. It also made itsenvironmental know-how public.

"Chairman's Award" for"DistinguishablyContributed Person forRecycling Promotion infiscal 1998" (October1998)

Sponsor:Council for the Promotion of RecyclingSupporter: The Environment Agency, ThePrime Minister's Office, MITI, Ministry ofConstruction, etc.

Awarded to Nagano PlantFor taking lead to the recycling activities such as reduction ofwastes, reuse of resources, etc. and for making distinguishedcontribution through continued activities.

"Excellence Award" inHanazono Contest(November 1998)

Sponsor:Citizen's Charter Promotion Committee,Aizuwakamatsu City

Awarded to Aizuwakamatsu PlantFor its contribution to the promotion of flower decorated beautifultown making through creation of flowerbeds. This is to meet theCitizen's Charter slogan "Keep good environment and make our citybeautiful".

"Third Prize"in "Green ReportingAward"(April 1999)

Sponsor:Toyo KeizaiInc. and Green Reporting Forum

Awarded for "1998 Environmental Activity Report"Targets which could not be achieved were clarified and reasons whyand countermeasures were explained.

36

History of Environmental Control Activities

When Kawasaki Plant was constructed, a park style design was adopted with the suggestions of our first President, Mr. Yoshimura.

Environmental Control Section was established at each plant

Ozone Layer Protection Committee was launched.

Environmental Committee was launched

Environmental Control Evaluation System was implemented

Environmental Engineering Center was launched

"Fujitsu's Commitment to the Environment" was established

The use of freon for cleaning and carbon tetrachloride was stopped

Energy-saving Committee was launched

Product Recycling Committee was launched

Waste Control Committee was launched

"Fujitsu Environmental Protection Program"(1st edition) was established

Product Environmental Assessment Guideline was implemented

Domestic Affiliated Companies' Environmental Protection Council was launched

Environmental Information Service (FJ-CUG) was opened Eco-Plaza, Environmental Bulletin was 1st published

The use of Trichloroethane was stopped

"The 1st Fujitsu Group Environmental Technology Exhibition" was held

Environmental Emblem was decided

Environmental Management System Committee was launched

Overseas Environmental Information Network was started

Establishment and implementation of Fujitsu Recycle System

"The 1st Fujitsu Group Worldwide Environmental Conference" was held

"Fujitsu Environmental Protection Program"(2nd edition) was established

Intranet "Environmental Engineering Center Homepage" was opened

Release of Chemicals Reduction Committee was launched

Environmental Activity Report was 1st issued

Homepage "Environmental Information" was started.

ISO14001 Certification was obtained by all manufacturing plants in Japan

Forestation activities in Thailand

Green Products were announced

Environmental Accounting was introduced

37

Questionnaire for facsimile To: Environmental Engineering Center, Fujitsu Limited

FAX: +81-44-754-2748

Thank you for your reading of our "1999 Environmental Activity Report". For our reference at the time we prepare the nextissue, we would appreciate it if you could kindly fill in the items below and fax this sheet to us.To those who kindly replied to this questionnaire, we would like to send the next issue "2000 Environmental Activity Report".(Scheduled to be issued in June 2000)

Q1.sDid you know Fujitsu's Environmental Protection Activities?

I knew it. I knew a little. I didn't.

Q2.sWhat was your impression about this report?

Excellent Good Poor

Q3.sWhich of the following articles in this report concerned you? (Plural answers accepted)

•Message from the President•Fujitsu's Commitment to the

Environment•Fujitsu Environmental Protection

Program•System of Environmental Control•Relation between Business Operations

and Environment •Environmental Management System

•Product Recycling•Industrial Waste Cuts•Reduction of Release of Chemicals•Energy-saving Measures (Measures for

Global Warming)•Introduction of Environmental Accounting•Plant Environmental Control Measures•Environmental Education and

Enlightenment

•Open Environmental Information•Social Service Activities•Environment Related Products•Group Integrated Activities•External Awards•History of Environmental Control

Activities

Q4.sKindly indicate on what perspective did you read this report?

•Customer of our products •News media •Environment NGO•General consumer •Shareholder •Government officials•Student •Financiers & Investors •Outside research organization•Environment Specialist •Purchasing staff of corporation •Others ( )•Neighborhood residents of Fujitsu facilities •Corporate environmental staff

Q5.sFrom what did you learn the existence of this report?

•Newspaper

•Magazine

•Advertisement

•Public relations office

•Our employee

•Our sales staff

•Tour to our plant

•Environment NGO

•Your friend

•Others ( )

Q6.sPlease fill freely your comments, request, etc. as to Fujitsu's activities to environmental issues:

Thank you for your cooperation. If you don't mind, kindly fill in the following blanks:

Your name: Male / Female Age:

Address to send the next report:

Occupation (Company you are working for)

Department:

Title:

E-mail: Environmental Engineering Center Phone: +81-44-754-2010

Environmental Engineering CenterFUJITSU LIMITED 1-1 Kamikodanaka, 4-Chome, Nakahara-ku, Kawasaki, Kanagawa 211-8588, JapanPhone: +81-44-754-2010Fax: +81-44-754-2748

Published: July 28, 1999This report uses Eco-mark certified recycled paper.

FUJITSU LIMITED

Recycled paper made completely of used paper is used.