FUJITSU LABORATORIES LTD. Sustainability Report 2016

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1 The Fujitsu Group is committed to Creating Things in Harmony with Nature. As a member of this group, Fujitsu Laboratories undertakes research and development that places environmental contribution as a priority item based on the FUJITSU Way-the Fujitsu Group s corporate philosophy-in which protecting the environment and contributing to society is a key corporate value. Kawasaki Laboratories (Head Office) Atsugi Laboratories 1. Greetings from the CEO We currently face many issues in the world such as problems with food supply, energy and resources, climate change, an increase in natural disasters, and the loss of biodiversity, due to global population increases, deforestation, and the burning of fossil fuels, etc. The rules for this new era are gradually being clarified with the UN General Assembly s adoption in 2015 of the Sustainable Development Goals (SDGs) for world society looking to 2030 and the agreement at COP21 on the Paris Climate Agreement toward a zero-carbon society. Given this situation, expectations are increasing for companies to contribute to resolving these social and environmental issues. As the core research and development (R&D) organization of the Fujitsu Group, Fujitsu Laboratories conducts research and development from an environmental perspective in wide-ranging areas from ICT-related, advanced materials, nextgeneration elements, networks, and cloud systems, to creating next-generation solutions, services and business models. Based on these innovative technologies and our slogan of Developing technology to contribute to the resolution of social and environmental issues, Fujitsu Laboratories promotes various environmental activities including CO2 emissions reductions through energy-saving and work efficiency improvements, resource saving, natural disaster response, conservation of biodiversity, and countermeasures to global warming. Shigeru Sasaki CEO and Representative Director FUJITSU LABORATORIES LTD. 1/8

2 2. Introduction to Fujitsu Laboratories Offices Kawasaki (Head Office) Location: Kamikodanaka, Nakahara-ku, Kawasaki, Kanagawa Established: 1968 No. of employees: about 800 Atsugi Location: 10-1 Morinosato-Wakamiya, Atsugi, Kanagawa Established: 1983 No. of employees: about Green ICT Activities Environmentally Conscious R&D (Promotion of Advanced Green R&D) To establish specific targets for putting the Fujitsu Environmental Policy into practice, the Fujitsu Group formulated the Fujitsu Group Environmental Action Plan (Stage VII) for environmental targets for the FY FY 2015 period. This plan is centered on the three topics of Our Society: Contributing to Society, Our Business: Fujitsu s own business activities and Continuous targets: continuous management targets. Within Our Society, Fujitsu Laboratories is promoting Advanced Green R&D with the aim of developing innovative technologies in all its R&D projects that contribute to reducing environmental burden of products and solutions. FY 2015 Performance and Results Positioning and highlighting Our Key Green Technologies To disseminate the Fujitsu Group s advanced green ICT throughout society, promote its early deployment in businesses, and raise the awareness of researchers, we are positioning our best-in-class and world-first technologies and technologies with remarkably high environmental contribution as Key Green Technologies. We are also intensifying dissemination of our technical capabilities and expertise through ongoing R&D efforts and press announcements. In FY 2015, Fujitsu Laboratories announced 25 research and development achievements, with 18 of these in the Green by ICT category (reducing environmental burden throughout society by use of ICT) and 7 of these in the Green of ICT category (reducing the environmental burden of ICT itself). Development Achievements (25 items) (1) April 2, 2015 Fujitsu Develops Software that Analyzes Service Quality while Monitoring at World-Record 200 Gbps (2) April 2, 2015 Fujitsu Develops Web OS Technology for Easy Connection between Various Smartphones and Peripheral Devices (3) May 1, 2015 Fujitsu Develops World's First Technology that Visualizes Complexity of Business Logic in a Program's Code (4) May 29, 2015 Fujitsu Laboratories Develops Virtualization Technology that Brings Security and Operability to Web Applications 2/8

3 (5) June 9, 2015 Fujitsu Achieves Four-User Concurrent Access and 12 Gbps Transmissions by Multiplexing Millimeter-Wave Beams as Step toward 5G (6) June 10, 2015 Fujitsu Releases FUJITSU Cloud IoT Platform, a Platform Service for IoT Data (7) June 22, 2015 Fujitsu Laboratories Develops Data Transfer Technology that Increases Speed of Remote File Access (8) July 10, 2015 Kyushu University and Fujitsu Laboratories Use Supercomputer for Real-Time Disaster-Recovery Scheduling (9) July 27, 2015 Fujitsu Develops User Interface Technology that Converts Entire Rooms into Digital Spaces (10) July 29, 2015 Fujitsu Develops Technology to Visualize the Energy Required to Execute Software (11) August 5, 2015 Fujitsu Develops Innovative Technology for Fast, Automated Setup of Virtual Networks for Linux Containers (12) September 4, 2015 Fujitsu Doubles Same-Cell Wireless Communication Capacity for 5G (13) September 7, 2015 Fujitsu Develops Technology that Uses Machine Learning to Quickly Generate Predictive Models from Massive Datasets (14) September 8, 2015 Fujitsu Develops World's First Compact 300 GHz Receiver for Wireless Communications of Tens of Gigabits per Second (15) November 11, 2015 FDK Developed FPFD12SR70100, a Non-isolated DC-DC Power Module which Corresponds to 100A (16) November 18, 2015 Fujitsu Develops Technology to Automate Construction of Visual-Inspections Programs for Production-Lines (17) December 9, 2015 Fujitsu Develops World's Smallest, Most Efficient 12-W AC Adapter (18) December 10, 2015 Fujitsu and Kitasato Institute Develop Glove-Type Touch Sensor to Obtain Data from Palpations in Kampo Medicine (19) December 21, 2015 Fujitsu Field Trial in City of Koriyama Detects Signs of Storm Sewer System Overflows Due to Torrential Downpours (20) January 12, 2016 Fujitsu and NIMS Develop World's Largest-Scale Magnetic-Reversal Simulator (21) January 18, 2016 Fujitsu Works to Conserve Biodiversity with Start of Technology Trial to Predict Deer Populations in Yamanashi 3/8

4 (22) January 21, 2016 Fujitsu Develops Industry's First Technology to Detect Back-and-Forth-type Targeted Attacks in Real Time (23) January 25, 2016 Fujitsu Develops GaN Power Amplifier with World's Highest Output Performance for W-Band Wireless Transmissions (24) February 2, 2016 Fujitsu Develops Technology for Instantaneous Searches of a Target Image from a Massive Volume of Images (25) February 3, 2016 Fujitsu Constructs a Home Energy Management System (HEMS) for Cloud Control of Home Appliances and Launches Solar Power Output Control Demonstration Experiment (Japanese edition) Creation of Green ICT Fujitsu Laboratories engages in resolving social issues using ICT, and we repositioned and highlighted our environmental contribution in the Green ICT area, which is an area with particularly large ripple effects. The Case of Green ICT (1) Fujitsu Works to Conserve Biodiversity with Start of Technology Trial to Predict Deer Populations in Yamanashi (Announced January 18, 2016) Biological diversity is conserved by a variety of living organisms existing in the proper balance, but in recent years, the rapid increase in the population of sika deer has led to forest damage through overgrazing. There are concerns that an increasing amount of damage will lead to a future loss of biodiversity. Developing countermeasures requires population estimates gained through field surveys, and forecasts on the growth of animal distribution, but there are issues with conducting investigations across many locations in a broad area and in locations that are difficult for researchers to access to, etc. Fujitsu Laboratories has developed a software technology to predict maximum possible animal populations without conducting a field survey, by using publicly available information, such as vegetation maps that display the types and distribution of plants, topographical maps, and climate information, as well as information about the animal's basic biology. By applying this technology to sika deer, using maps of vegetation, land-use, and topography, the habitable areas that are suitable for deer to live are calculated, and, by applying the relationship between sika deer population density and their weight, the maximum possible population number for each square kilometer area is predicted. Figure : Using the new technology to predict the maximum sika deer population that can inhabit an area 4/8

5 (2) Fujitsu Field Trial in City of Koriyama Detects Signs of Storm Sewer System Overflows Due to Torrential Downpours (Announced December 21, 2015) In recent years, there have been numerous instances of torrential downpours that far exceeded the magnitudes anticipated in the operation of storm sewer systems. The damage from overflows stemming from such intense, localized downpours is becoming increasingly extensive. With limited human and financial resources, however, there is a need to utilize ICT, in addition to measures to improve storm sewer system infrastructure. Fujitsu Laboratories has succeeded in the real-time detection of early signs of storm sewer system overflows during torrential downpours, thereby obtaining data for effective analyses. The data was collected in a sensing system field trial initiated in July 2015 with the City of Koriyama in Japan's Fukushima Prefecture. Features control technology for optimal measurement of risk from changing sewage water level and reduces power consumption by about 70%. Thermoelectric generator module Sensor node Figure : Image of the thermoelectric generator module attached to a manhole cover 4. Environmental Activities Countermeasures to Global Warming Reduction of energy use and CO2 emissions Fujitsu Laboratories promotes energy-saving activities at each location. Strategic facility investment Adjustable lighting/led lighting with motion sensors Latest sensitive building air-conditioning equipment Thorough elimination of wasteful electricity consumption Further optimization of air-conditioning operation by using more sensors [t - CO2] All lights turned off during lunchtime and enabled the turning off of lights on an individual basis Reduction of impact of outside air on indoor environment Insulation of existing window glass and use of shading film The Green Curtain (Summer) Cool Biz/Warm Biz campaigns [year] 5/8

6 5. Social Contribution Activities Environmental Social Contributions The Green Curtain (Kawasaki Location) At the Kawasaki location, Fujitsu Laboratories collaborated with the Kawasaki Plant in the Green Curtain Project that lets bitter gourds grow along the walls of buildings to keep the indoor temperature cool. The bitter gourds grown in this way were harvested and enjoyed by employees. Green Curtain Project Bitter gourd harvest Volunteer Clean-up (Atsugi Location) Fujitsu Laboratories teams up with three neighboring firms twice a year in the spring and fall to clean up the area surrounding its offices. Fall 2015 marked the 38th time these clean-up activities were held and Fujitsu Laboratories is making a continuous contribution to cleaning and beautifying the local social environment. 37 th Volunteer Clean-up 38 th Volunteer Clean-up 6. Biodiversity Conservation of Biodiversity Preservation of endangered plants (Atsugi Location) In the green belt, threatened and near-threatened plants specified on the Ministry of the Environment s Red List such as Golden Orchid and Calanthe Discolor grow wild. Fujitsu Laboratories preserves biodiversity by conserving the locations where these plants grow wild to ensure they are not trampled on. Tree-planting Activities (Atsugi Location) Fujitsu Laboratories has been involved in ongoing tree-planting activities within the site since 2010 based on the slogan of Project to Create a Living Forest to conserve the tree varieties of the Tanzawa foothills. Golden Orchid Calanthe Discolor (Photographed in April 2016) 6/8

7 7. Environmental Management System Environmental Management System The Fujitsu Group engages in environmental activities based on an environmental management system (EMS) conforming to the ISO4001 international standard. As a member of the Fujitsu Group, Fujitsu Laboratories operates an EMS at each of its Kawasaki and Atsugi locations and promotes activities toward the reduction of environmental burden. Kawasaki Location 2000:Received ISO14001 certification Atsugi Location 1998:Received ISO14001 certification Kawasaki/Atsugi Location 2004:Received company-wide ISO14001 certification 2005:Received global integrated ISO14001 certification 2015:Updated global integrated ISO14001 certification 7/8

8 8. Environmental Policy Environmental Policy (Kawasaki) At its Kawasaki location, Fujitsu Laboratories promotes environmental activities on the basis of the Kawasaki Plant Environmental Policy*. * Please refer to the Kawasaki Research and Manufacturing Facilities Sustainability Report for details on the Environmental Policy. (Japanese edition) Environmental Policy (Atsugi) As an independent site, Fujitsu Laboratories at Atsugi embodies the basic philosophy of preserving the global environment and contributing to the sustainable development of society as set forth in the Fujitsu Group Environmental Policy* and has established the following principles as a basis for conducting its activities as an R&D hub centered on ICT-related equipment, devices and materials. (1) Observe laws, regulations and agreements related to the environment and the Fujitsu Group Environmental Policy. (2) Operate an environmental management system that conforms to ISO14001 and make ongoing improvements in conjunction with changes in business activities to reduce environmental load and prevent pollution. (3) Develop innovative technology for the resolution of environmental issues. (4) Promote reductions in environmental load directly related to Fujitsu s own business activities. Energy : Promote reduced use of energy through energy rationalization Waste : Maintain zero waste emission and keep down the total volume of generated waste Chemical materials : Intensify management of chemical materials and preventive measures against pollution (5) Promote environmental social contributions and the conservation of biodiversity using regional characteristics. (6) Specify clear environmental objectives, environmental targets, and action items to put these principles into practice and periodically review them to promote good environmental management activities. (7) Ensure that this environmental policy is well known to all employees of Fujitsu Laboratories at Atsugi and is released to the general public as well. * Fujitsu Group Environmental Policy : FUJITSU LABORATORIES LTD. R&D Management Unit Kamikodanaka, Nakahara-ku Kawasaki, Kanagawa 211/8588, Japan TEL: Head of Publication: Shigeru Sasaki Head of Editing: Hiroshi Uchiya Date of Publication: Augusut 2016 Target Period of Report Content: April March 2016 Report URL: 8/8