Corporate Philosophy VISION2022

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2 We will work with the utmost sincerity to support our customers and contribute to society. Customer Focus, Highest Possible Quality We always think first how to best serve our customers, to create products of the highest quality that exceed our customers' expectations. Responsibility and Contributions to Society Work Values Corporate Philosophy Recognizing we are a part of society, we shall fulfill our social responsibilities and contribute to our society through our corporate activities. Each and everyone shall take pride in their work, and utilize their own abilities to realize a workplace where everyone shares in our achievements. VISION Sustainability Report CONTENTS Top Commitment 1 Environmental Management 23 Environmental Action Plan 45 Performance Data 6 Site data 7 Social Report (Topics) 8 Corporate Profile 9

3 TOP COMMITMENT We aim to realize the exciting sustainable mobility society by connecting people, vehicles and community Akira Yamanaka President & Representative Director FUJITSU TEN LTD. The social responsibility of the FUJITSU TEN Group is to contribute to realization of the free and comfortable mobility society by connecting people with vehicles and also the community with vehicles through our business activities. Besides that, we would like to grow sustainably through those activities. Development of the ICT has been accelerating and the hyper connected world is expanding with more and more people and things being connected to the Internet through the cloud computing. The era of connected car is just around the corner, and cars will be also connected as devices in the era. In addition, we are not too far away from autonomous cars that will be materialized through spread of advanced driver assistance systems (ADAS), which will come after the era of connected car. Under these future prospects, FUJITSU TEN announced the key concept, FutureLink, in October 2014 ahead of the era, and our future business direction is well received by our customers. Making use of our strength and placing the VehicleICT at the center of our business related to the FutureLink, we are focusing on the three business domains: comfort & convenience, security & safety and environment. We make an effort to contribute to the realization of the free and comfortable mobility society and we will be a company that stakeholders will trust and need. We at FUJITSU TEN must observe our motto MAKOTO (sincerity) is the way of heaven because I believe that the spirit of MAKOTO is the source of our CSR activity and that it has helped us gain favor from our customers and grow until today. We will make active efforts based on the spirit of MAKOTO and corporate philosophy, customer focus and highest possible quality, responsibility and contributions to society and work values. Customer Focus and Highest Possible Quality With an understanding that quality is our top priority, we are carrying out measures to improve quality in order to deliver the highest quality products to our customers. Since the importance of the builtin software has been increasing in recent years, we are especially striving to enhance systems for software quality assessment on a global groupwide basis. Responsibility and Contributions to Society For carrelated companies, global approach is important to reduce impact on the environment. We have so far worked on development of technologies that contribute to lightweight vehicles and resource saving as well as development of products, including control units, for better fuel efficiency. For the solution to the issues, such as global warming, we continue our efforts to reduce environmental burden based on our Environment Mid to LongTerm VISION. In addition, we will contribute to creation of the vehicle society friendly to people and environment though environmentallyfriendly technologies, such as the battery management system for hybrid vehicles and electric vehicles. Work Values We are making efforts from the viewpoint Visions can be materialized by people. For example, as a result of the efforts in providing support for balancing work and parenting, in May 2015, we became a first company in Hyogo prefecture that received Platinum Kurumin, the next generation support certification logo. Actively carrying out the diversity activity, we continue to strive for sustainable growth of the company through your higher skills and higher motivation by enhancing the workplace power. We also continue our efforts in developing human resources that think and find what we must do and act responsibly in line with that and in changing our corporate culture in that direction. While firmly observing the corporate philosophy MAKOTO, we will make our best efforts to supply exciting products and services in the mobility society, and at the same time, we will put the efforts into realization of the sustainable society through our contribution to our customers and the society. I hope that FUJITSU TEN is a company that always grows with our customers. I would like to have your frank opinions. 1

4 Fujitsu Ten Group promotes environmental management proactively based on our corporate philosophy. In March 2013, we have created the Environmental mid to longterm vision that indicates the goal of environmental management toward This aims at sharing the entire group purpose and vector by clarifying how we want to be as a group. For pursueing the Environmental mid to longterm vision, we have set the 7th Environmental Action Plan in April 2013 with fiscal 2015 as final target year. In June 2014, we have revised it for the purpose of shifting to global index and upward adjustment. In fiscal 2015, we plan to create the 8th Environmental Action Plan with fiscal 2018 as final target year. Corporate Philosophy Environmental Management at the Fujitsu Ten Group We will work with the utmost sincerity to support our customers and contribute to society. FUJITSU TEN Group Global Environment Charter Fundamental Principles The Fujitsu Ten Group is aware that the environment and economy to coexist harmoniously is our crucial business task, and promotes the better relationships of people with vehicles and the environment by utilizing the technology and creativity in the field of the automotive electronics, entertainment, and information and communication technology. We also contribute to realizing a green 21st century by committing to realizing a lowcarbon society and sustainable development. Fundamental Policies 1. Fulfillment of Responsibility as a Global Company 2. Thoroughness of Basics and Voluntary Activities 3. Coordination and Collaboration with Society Action Directives 1. We will reduce environmental impact in every stage of life cycle. 2. We will enrich environmental management foundation by improving environmental management system continuously, boosting management method as well as offering environmental education to raise the awareness of our entire employees. 3. We will promote environmental contribution activities including biodiversity conservation initiatives for the community and society. Environmental activity concept In imlementation of action directives, we classify our activities into 5 categories as shown below. We set target for each category and promote them with the clarified goals specified in the environmental mid to long term vison and the action plan. Factories (Production) Environmental conservation (Social contribution) Products (Development, Design) Supply chain (Purchasing, Logistics) Environmental management system 2

5 Environmental Management at the Fujitsu Ten Group Fujitsu Ten Group Environmental Mid to Long Term Vision This vision sets three goals for 1. Contributions to customers and society, 2. Pursue internal reforms, 3. Commit to biodiversity, centering on the Fujitsu Group's environmental vision: "Green Policy 2020." While we will aim to peak out CO 2 by 2022 and to reduce by half by 2050 as the goals of reducing our environmental load, we define our mission as "building a better relationship of people with vehicles and the environment", as an automotive related company. Thus, we will promote contributions to green mobility by developing the environmental contribution products (*) such as HV (hybrid vehicle) / EV (electric vehicle) control ECUs. *Environmental cotribution products A product that can contribute to the reduction of the environmental loads in other products and systems by the use of the product. In Fujitsu Ten Group, it refers to the product that contributes to automotive energy saving and clean energy, such as HV control ECU, EV control ECU, and engine control ECU. Fundamental principal We recognize the reduction of greenhouse gas emissions by half by 2050 as a social supreme proposition. Toward achieving the goal, along with the reduction of our environmental load, by the development of environmental contribution products and ecofriendly products, we will make our best efforts to do what we can do to contribute to the realization of a sustainable society, in collaboration with customers and society. Our mission We will contribute to society by promoting the better relationships of people with vehicles and the environment. Environmental LongTerm VISION2050 Numerical target Reducing our greenhouse gas emissions by at least 50% compared Qualitative target Contribution to reduction of social greenhouse gas emissions by half by the development of environmental contribution products and energysaving products Contribution to biodiversity conservation Contribution to resourcesrecycling society Face out the important environmental challenges facing society. Environmental MediumTerm VISION2022 Peak out global greenhouse gas emissions, and reduce domestic emissions by Numerical target 20% compared. Qualitative target Promote the development of environmental contribution products. Reduce the environmental load of our products by promoting the Design for Environment based on LCA (*1) in all product lines. Understand the extent of the impact of greenhouse gas based on Scope 3 (*2), and set a target for global warming countermeasures including the value chain. Assess the impact of the biodiversity conservation associated with business activities, and create an improvement plan. Promote efforts regarding resource circulation. *1 LCA(Life Cycle Assessment) A method to quantatively understand the environmental loads at each stage in a product's life cycle, from the extraction of raw materials to the manufacture, distribution, use, and disposal of products. *2 Scope3 New framework for understanding and assessing global warming countermeasures, proposed by WBCSD (World Business Council for Sustainable Development). In addition to the emissions from the company itself, its upstream and downstream global warming potentials through the value chain are specified, and those shall be the new subjects of understanding, disclosure, and reduction. 3

6 The 7th Environmental Action Plan and its result Fiscal 2014 target and achievements Environmental Action Plan The below table shors the fiscal 2014 result of the 7th Environmental Action Plan that started from fiscal 2013 with final target year set in fiscal Green logistics targets could not be achieved due to the influences of US port strike which caused to swtich from ship to high CO2 emission coefficient of airlines. All the other items have met targets. Theme Green site Green Procurement and Green Logistics Green Products Action Objective Reduce CO 2 emissions (per production output) by 13.8% by the end of FY 2015 in comparison with FY (Global). Reduce waste emissions (per production output) by 17.2% by the end of FY 2015 in comparison with FY (Global) Reduce chemical substance amount by 12.2% by the end of FY 2015 in comparison with FY (Global) Reduce water use amount (per person) by 12.7% by the end of FY 2015 in comparison with FY (Global) Reduce CO 2 emissions in transportation by 4% or more per sales amount, by the end of FY 2015 in comparison with FY Develop three supergreen products by the end of FY Increase proposals on green technology to the automobile manufacturers by 50%, to cater to an increase in vehicles using electric power, in comparison with FY Ratings: :Target achieved : 75% of target achieved Target for fiscal % compared 14.6% compared 11.9% compared 13.4% compared 4.0% compared Achievement for fiscal % compared Place two Place two models in market models in market Increase by 50% compared to fiscal % compared 38.4% compared 11.9% compared 3.5% compared Increase by 180% compared to fiscal 2012 Evalu ation Environmental Management Expand the application scope of the ISO 14001/OHSAS globally integrated system established in FY *1 Incorporate the elements of the energy management system based on ISO into the alreadyestablished ISO 14001/OHSAS integrated system by the end of FY 2015, to enhance the energysaving promotion framework. ISO is excluded from certification. Expand do Fujitsu Ten Technosepta Initiation of energy saving performance comparison at purchase of machines. (JP sites) Expand do FTESA and Fujitsu Ten Technosepta Initiation of energy saving performance comparison at purchase of machines. (JP sites) Establish criteria for environmental management evaluation that takes into account sustainability and performance improvement to improve the evaluation indicators of the Group companies. Evaluation and target setting Evaluation and target setting Promote the social contribution activities carried out by employees together with the society. Contributing to Society Provide financial, technological, human resource, and other supports to activities to solve social and/or environmental problems such as biodiversity. More than once per location More than once per location More than once per location More than once per location *1 ISO14001 applies to all the sites with 10 employees or more. However, when the new site is founded, join the joint certification within 2 years. OHSAS18001 applies to all the production sites including overseas. Non production sites introduce risk assessment and implement basic safety activity thoroughly. 4

7 Principal Environmental Performance Data for FY2014 Global Warming Measures In order to reduce CO 2 emission that causes global warming, we introduce energysaving facilities, energysaving activities in offices, and streamlining of production and business operation. Initiatives for fiscal 2014 CO 2 emission as a result of energy consumption in Japan was reduced by 18.0% below fiscal 2011 levels, which has achieved the target of "reduce by 15.7 % below fiscal 2011 levels". Furthermore, global CO 2 emission (unit per production) was reduced by 22.1% (ie t CO 2 / 100 million yen) below fiscal 2011 levels, which has also achieved the target of "reduce by 13.4 % below fiscal 2011 levels". *Note on CO₂ emission factor: In Japan: Adopted Fujitsu group unified factor Outside Japan: Countryspecific electric power emission factor of the Japan Electrical Manufacturers' Association. Waste Reduction Measures In contributing to the emergence of a recyclebased society, we are working to reduce waste and achieve zero emissions* based on the theme of "3Rs" (reduce, reuse, recyle). *At the FUjitsu Ten Group, "zero emissions" represents the elimination of nonusable waste, such as refuse that is incinerated or disposed of as landfill without a benenficial use, through the application of the "3Rs". Initiatives for fiscal 2014 Global waste amount (unit per production) was reduced by 38.4 % (ie 0.45 t / 100 million yen), which has achieved the target of "reduce by 14.6 % below fiscal 2011 levels". Trend in Waste Volumes (t) Japan Outside Japan Trend in CO 2 Emissions (Energy Alone) Japan Outside Japan Trend in Waste Volumes: per Production Output and Annual Total (Global) (t/ 100 million) Trend in CO 2 Emissions: per Production Output and Annual Total (Energy Alone) (tco 2 / 100 million) 5

8 Principal Environmental Performance Data for FY2014 Hazardouw Material Reduction Measures The Fujitsu Ten Group undertakes assessments of all chemical products used in all our domestic and international locations. We implement measures to reduce the use of chemicals if identified as carrying a high environmental risk. Initiatives for fiscal 2014 Global chemical substance (subject to PRTR, VOC) amount (unit per production) was reduced by 11.9% (ie 57.6kgCO2/ 100 million yen), which has achieved the target of "reduce by 11.9% below fiscal 2011 levels". Water resource saving measures We, Fujitsu Ten group, aware that water is a limited resource thus promote initiatives for saving clean water by controlling clean water consumption per employee. *Fujitsu Ten Ltd. Does not use water in manufacturing process. Initiatives for fiscal 2014 Our global clean water consumption was reduced by 20.7% (14.2 m 3 / person), which has achieved the target of "reduce by 13.4% below fiscal 2011 levels". Transition of chemical substance amount unit per production Trend in Water Volumes (kg/ 100 million) (1000 m 3 ) Japan Outside Japan Transition of water consumption unit per employee (m 3 / person) TOPICS FTCA received the double award from SIA "Environmental Sustainability Award" & "Environmental Stewardship Award" In April 2015, Fujitsu Ten Corp. of America (FTCA) has received the double award for Environmental Sustainability Award and Environmental Stewardship Award from Subaru of Indiana Automotive, Inc. (SIA). This is the result of actual environmental improvement activities such as reducing the waste at FTdM, and overall companywide involvement. There are 130 SIA suppliers, and 5 suppliers received the environment related awards including FTCA. In particular, FTCA was the only supplier which received the double award. It is considered as Special Award. From Left: H.Shiraishi, Sr. Mgr, FTCA; Together with K.Tabuchi, EVP,FTCA; 6

9 Environmental Data of Fujitsu Ten Affiliated Group Japan CO 2 Emissions (tco 2 ) Energy Consumption (Electric power equivalent/mwh) Waste Emissions (t) Paper Purchased (t) Chemical substance(*1) Consumption (kg) Water Consumption (m 3 ) FUJITSU TEN LIMITED ; Head Office Manufacturing FUJITSU TEN MANUFACTURING LIMITED ; Nakatsugawa Plant FUJITSU TEN MANUFACTURING LIMITED ; Oyama Plant FUJITSU TEN TECHNOSEPTA CO,LTD. Sales FUJITSU TEN SALES LIMITED 7, , , , , , , , ,831 24, ,120 15, (*1) Object substance:toluene Xylene Silver Lead Isopropyl Alcohol Methylnaphthalene The environmental data of the other confiliated companies are included in the manufacturing sites' data since these companies operate coupled with manufacturing sites. Outside Japan Manufacturing FUJITSU TEN de MEXICO, S.A. de C.V. (FTdM) FUJITSU TEN CORPORATION OF THE PHILIPPINES (FTCP) TIANJIN FUJITSU TEN ELECTRONICS CO., LTD. FUJITSU TEN (THAILAND) COMPANY LIMITED (FTTL) FUJITSU TEN ELECTRONICS (WUXI) LTD. (FTEW) CO 2 Emissions (tco 2 ) 7, , , , , , ,483.0 Energy Consumption (Electric power equivalent/mwh) 6, , ,165.3 Waste Emissions (t) Paper Purchased (t) Chemical substance(*) Consumption (kg) 21,383 16,245 24,240 Water Consumption (m 3 ) ,780 15, ,372 28,929 47,820 24,342 27,010 FUJITSU TEN ESPAÑA, S.A. (FTESA) 1, , ,580 5,814 FUJITSU TEN CORP.OF AMERICA (F TCA) ,446 FUJITSU TEN CANADA INC. (FTCI) Sales and Other Businesses FUJITSU TEN (EUROPE)GmbH (FTEG) FUJITSU TEN SOLUTIONS PHILIPPINES, INC. (FTSP) FUJITSU TEN (SINGAPORE) PTE. LTD. (FTSL) FUJITSU TEN (AUSTRALIA) PTY. LTD. (FTAL) FUJITSU TEN TRADING (TIANJIN) LTD. (FTTT) FUJITSU TEN RESEARCH & DEVELOPMENT (TIANJIN) LTD. (FTRT) , , , ,460 FUJITSU TEN KOREA LIMITED (FTKL) (*) Object substance:toluene Xylene Silver Lead Isopropyl Alcohol The CO 2 emission factors used here are the countryspecific electric power emission factors of the Japan Electrical Manufacturers Association 7

10 Fujitsu Ten Group implements various activities for fulfilling social responsibility based on our corporate philosophy. Customer Focus Highest Possible Quality Social Report ( Topics ) FTTT (Tianjin) Guangzhou branch received the "Total Quality Promotion Award" from GAC Hino Motors Co., Ltd. (GHMC) for the first time! In 2014, we achieved our goal of zero quality defects and were also praised for our risk management and ontime deliveries, leading to receiving this award. Of their 200 suppliers, 13 companies received this award. Responsibility and Contributions to Society Companywide evacuation drill at a time On Februry, 2015, we have implemented companywide evacuation drill simultaneously with the assumption of earthquake and tsunami at Kobe HQ area. This companywide evacuation drill was the first attempt for the purpose of confirming evacuation route at event of equathquake and tsunami and of experiencing actual action. Work Values FTCP Achieves TCCLS (Tripartite Certificate of Compliance with Labor Standard) On October 28, 2014, during the 7th DOLE Region IVA Annual Convention on the Regional Tripartite Industrial Peace Council at the Tagaytay International Convention Center, FTCP was formally awarded the Tripartite Certificate of Compliance with Labor Standard (TCCLS) by the Department of Labor and Employment (DOLE). Work Values FTCP Safety Exhibit: Zero Accident Workplace On June 25, 2014, FTCP launched its very first Safety Exhibit. The EHS Team of General Affairs spearheaded the activity to level up the safety awareness of all FTCP Team Members and prevent accident. The exhibit ran for six (6) days from June 25 to July 2 attended not only by FTCP Team Members but also all subcontractors working inside FTCP. 8

11 Corporate Profile Company name: FUJITSU TEN LIMITED Head office address: 228, Goshodori 1chome, Hyogoku, Kobe , Japan Phone: Facsimile: Established: October 25, 1972 Capital stock 5,300 Million Shareholders FUJITSU LIMITED TOYOTA MOTOR CORPORATION DENSO CORPORATION Business description Infotainment Equipment Audio and Car Navigation Equipment Home Audio Equipment Mobile Communications Radios Car Electronic Devices Chairman & Representative Director President & Representative Director Takashi Shigematsu Akira Yamanaka "Sincerity is the way of Heaven." The "Ten" in our company name "Fujitsuten" means heavenly, in the sense of ultimate or supreme. The character that means "heaven" has been our trademark since the company was first known as Kawanishi Machine Works and then later as Kobe Industries. We have always followed the ideal that "Sincerity is the way of Heaven," as stated in the classic Confucian text "The Doctrine of the Mean." Consolidated Business Results ( 100 million) Sales Employees Operating Income Ordinary Income Net Income ( 100 million) ( 100 million) ( 100 million) 9

12 228, Goshodori 1chome, Hyogoku, Kobe , Japan TEL: For inquiries regarding this report, please contact: Department: TEL Issued: December 2015 Scheduled date of the next issue: December 2016