E n v i r o n m e n t a l R e p o r t CONTENTS

Transcription

1 CONTENTS Message from the President 1 Corporate Data 2 1. Business Activities and their Main Aspects 3 2. Policies, Goals and Overview 5 3. Management 8 4. Communications Efforts to Reduce Impacts Considerations and Contributions of Products and Technologies 15

2 Message from the President In the 21 st century, business activities in the manufacturing industry are becoming increasingly globalized, with procurement, production and sales occurring in many countries. At the same time, concerns about the environment will have a large impact on manufacturing in the future. Fears about the worsening global environment grow, and international efforts to establish regulations to prevent global warming and create systems for recycling-based societies are increasing. In spite of this, signs of improvement are still not easy to see at this time. The most important issue for human society is to balance economic development and environmental protection. As consciousness of this fact grows, businesses in the automotive industry, in particular, will be expected to make even greater efforts to reduce the environmental impacts of automobiles through environmental management. As a global supplier of automobile parts, we at Fujitsu Ten are following a business vision that appeals to the people of the world. In this vision, we imagine and create bountiful lifestyles and a car society that has a sense of the future. Through innovation of the human interface of automobiles, creating a better relationship between cars and people, we can ensure safety and reliability, create comfortable mobile spaces and protect the global environment. In particular, we believe we can fulfill the role of an environmental leader by contributing to the reduction of environmental impacts of automobiles through the development of green products and with the concern that we give the environment in the making of products. President and Representative Director Takamitsu Tsuchimoto For environmental management, viewed with the three considerations of economy, environment and society, whether or not sustainable development can be achieved is becoming an important issue. We are working on the development of green products, an environmental issue that is business specific, and for concern for the environment in the making of products, an environmental issue that has effects at both local and global levels. In addition, we will put our energy into management that handles the issues of society, including corporate ethics, community revitalization, contributions to society and cultural activities. We are also strengthening and expanding our partnerships with other companies, communities and groups. We hope that you will lend us your support and understanding for our environmental management efforts at Fujitsu Ten. With this edition, we are publishing our 4 th Fujitsu Ten Group Report, also the first to be published in English. This report covers information related to the environment, including the environmental impacts of the Fujitsu Ten Group's business activities in the 2002 fiscal year, our green product development, and the status and results of our environmental preservation efforts and contributions to society. We will be happy if this report helps you understand the state of the environmental efforts of the Fujitsu Ten Group. If you have any thoughts about our activities, we would be pleased to hear your frank opinions. July 2003

3 Corporate Data Company Name Locations Representative Date Established Business Activities Main Products Capital Group : Fujitsu Ten Limited : Head Office 2-28, Gosho-dori 1-chome, Hyogo-ku, Kobe Japan Tel Plants in Japan 2-28, Gosho-dori 1-chome, Hyogo-ku, Kobe Japan Tel , Naegi, Nakatsugawa, Gifu Japan Tel : President and Representative Director Takamitsu Tsuchimoto : October 25, 1972 : Manufacture and sales of infotainment equipments and car electronic devices : Infotainment equipments Audio and car navigation equipments For automotive use: Audio products Audio-visual products Navigation systems For home use: Time Domain audio system Mobile communication radios Information-communication-applied systems Information-communication-applied equipments Car electronic devices Electronic Control Units (ECU) and sensors Millimeter-wave radar (60 GHz/76 GHz band) : 5.3 billion (as of March 31, 2003) AVN Vehicle Security System (VSS) (Domestic) : Manufacturing Tochigi Fujitsu Ten Limited Sales Fujitsu Ten East Japan Sales Limited Fujitsu Ten Chubu Sales Limited Fujitsu Ten West Japan Sales Limited Other Companies Fujitsu Ten Acty Limited, Fujitsu Ten Research Limited, Fujitsu Ten Information Systems Limited, Fujitsu Ten Staff Limited, Fujitsu Ten Technology Limited (Foreign) : Manufacturing Fujitsu Ten Corporation of America (USA) Fujitsu Ten de Mexico, S.A. de C.V. (Mexico) Fujitsu Ten Corporation of the Philippines (Philippines) Tianjin Fujitsu Ten Electronics Co., Ltd. (China) Fujitsu Ten (Thailand) Company Limited (Thailand) Sales 5 related companies in Canada, Germany, England, Australia (2) Other Companies 3 related companies in the USA, Singapore and the Philippines Time Domain audio system Millimeter-wave radar Sales Volume Change (in billions of yen) Production Volume Change (in billions of yen) Change in Number of Employees Editing Policy We believe that this environmental report is an important means of communication between the Fujitsu Ten Group and our valuable customers. In making this report, we have tried to make everything easy to understand by showing our goals, plans and results using graphs, illustrations and tables. For the 2003 edition, we expanded coverage of the Fujitsu Ten Group to include the presentation of information about domestic sales companies and foreign production facilities. Report Coverage The data summaries of the environmental impacts and environmental accounting in this report are for the 2002 fiscal year (April 1, 2002 to March 31, 2003). We provide data for Fujitsu Ten and data for other companies of the Fujitsu Ten Group, including 1 manufacturing company, 3 sales companies, and 5 other companies in Japan, and 5 manufacturing companies abroad. The extent of data consolidation for fiscal 2002 differs for some aspects, including environmental impacts and environmental accounting. In the next fiscal year, we will consolidate the information for all of the group companies.

4 Business Activities and their Main Aspects The main activities of the Fujitsu Ten Group are product development, design, manufacturing and sales of infotainment equipments (including audio and car navigation equipments and mobile communication radios) mainly for use in automobiles, and car electronic devices. The environmental efforts of the group include recognizing the impact on the environment of our business activities and the use and disposal of our products. We are undertaking quantitative evaluations of investments in materials and natural resources and of byproducts, including waste materials discharge, wastewater and gas emissions, for every type (aspect) of environmental impact, and planning and promoting our efforts accordingly. Aspects of our Main Business Activities and Products and Efforts Taken to Protect the Environment Flow of Business Activities and Products Common to All Business Locations Development and Planning Procurement of Parts and Materials Main environmental aspect (input) (1) Consumption of energy resources (2) Consumption of water resources (3) Consumption of forest resources (1) Consumption of fuel by test vehicles (1) Consumption of fuel by transport vehicles Factors that contribute to environmental impacts Main environmental aspect (output) Main environmental aspect (product) (4) Emission of substances with environmental impacts (5) Wastewater from non-industrial uses (6) Waste (2) Gas emissions from test vehicles (3) Use of natural resources, including minerals, oil and forest resources (4) Consumption of fuel at time of product use (5) Presence of harmful substances in product parts (2) Emission of substances that impact the environment during manufacture (3) Gas emissions from transport vehicles (4) Waste from containers and packing of delivered parts and materials Measures to prevent global warming (1) (4) Development of simulators (1) (2) Promotion of green procurement Efforts to reduce paper use (3) Development of green products (3) (4) (5) Participation in the supplier cooperation subcommittee of the Tenei Kai (1) (2) (3) (4) protection efforts Management of chemical substances handling and reduction of the use of harmful substances (4) Development of products that contribute to environmental protection Reduction of waste and appropriate disposal (6)

5 Main Efforts in the 2002 Fiscal Year Among the green products we have developed, we have begun the delivery of an engine control computer for cars equipped with "idling-stop" technology. This is a product that we have developed with automotive manufacturers to reduce gas emissions from automobiles. In addition, we have also begun to use leadfree solder and have introduced green models of 4 types of consumer car audio-visual equipment, which are 40% lighter than past models, to the market. Furthermore, we have begun delivery of products that are compliant with European automobile environmental regulations (End-of-Life Vehicle (ELV) Directive 03/7 harmful substances restrictions). We almost completely achieved all of our environmental protection activity goals for the fiscal year, including reducing CO2 emissions, recycling waste materials as raw resources, and reducing the use of chemical substances. In particular, through the recycling of waste materials we achieved zero waste emission, eliminating the disposal of wastes that otherwise would have no useful purpose by simple incineration or landfill, at all of our production facilities in Japan. Manufacturing Product Logistics, Sales, and Aftercare Services Product Use Product Disposal (Collection and Recycling) (1) Electric power consumption by our manufacturing plants (1) Consumption of fuel by vehicles used by logistics and sales (2) Consumption of paper in the manufacture of catalogs and product containers and packaging (2) Use and emission of substances that impact the environment during manufacture (3) Unnecessary materials (scrap materials and faulty products) (4) Used containers and packing of supplied parts and materials (3) Gas emissions from vehicles used by logistics and sales (4) Used catalogs and product containers and packaging (5) Presence of harmful substances in the secondary materials of products (1) Automobile fuel use (indirect impact) (1) Used products (postrecycling automotive waste, shredder residue) Measures to prevent global warming (1) Reduction of the use of substances with environmental impacts (2) (5) Reuse of containers and packing from supplied parts and materials (4) Promotion of green logistics (1) (3) Introduction of the use of eco-cars (1) (3) Recycling of product containers and packaging (2) consideration in making catalogs and product manuals (2) Design for product energy conservation (Product Use (1)) Reduction of the environmental pollution risks of used products (Product Disposal (1)) Recycling and reuse of used products (Product Disposal (1))

6 Policies, Goals and Overview 1. The Fujitsu Ten Corporate Vision: Vision 2012 In October 2002, 30 years from the founding of Fujitsu Ten, we carefully considered what kind of company we should become 30 years in the future. We also established the Fujitsu Ten Corporate Vision, Vision 2012, that describes what path we should follow and, as a global business, what kind of company we should be for the next 10 years. Fujitsu Ten places the environment as one of our most important management concerns. Based on this corporate vision, we established the Fujitsu Ten Group Environment Charter to provide a guiding policy for our environmental endeavors and we set our Fundamental Principles, Fundamental Policies and Action Directives regarding the environment. Corporate Philosophy Corporate Culture Business Vision We will work with the utmost sincerity to support our customers and contribute to society. Responsibility and Contributions to Society Customer Focus, Highest Possible Quality MAKOTO Sincerity Work Value Challenge Originality Bright & Speedy Accomplish Encourage We shall not only accept change but daringly embrace it. Creating originality. Cheerful, Fun, Fast Achieving goals. We shall encourage each other by engaging in lively conversation. We have brought together the three fields of automotive electronics, entertainment, and information technology to work on the creation of a new business category. By using IT to improve cars and by innovating easy-to-use human interfaces, we are bringing society and cars together seamlessly. Our goals are to ensure safety and reliability, create a comfortable mobile space, and protect the global environment. Automotive Electronics Entertainment Information Technology Innovations in Human Interfaces Ensure Safety and Reliability Create a Comfortable Mobile Space Protect the Environment 2. Fujitsu Ten Group Environment Charter In accord with the Fujitsu Ten Corporate Vision, we reexamined the Fujitsu Ten Environment Charter that we created in November 1992, and, in March 2003, we replaced it with the Fujitsu Ten Group Environment Charter. We are committed to the important goal of harmony with the environment, and, by making use of our unique car electronics technology, we are making efforts on a global level to contribute to the development of both car society and an abundantly green 21 st century society. Fundamental Principles Fundamental Policies Action Directives The Fujitsu Ten Group is aware of the close connections between the global environment and our business activities, products and services related to the industries of automotive electronics, entertainment, and information technology. With our promotion of environmental management, we are contributing to the development of a green 21 st century and meeting our responsibilities as a corporate citizen. 1. Comprehensive measures 2. Thoroughness of basics 3. Coordination and collaboration with society 1. Promote site environmental protection efforts that seek to minimize environmental impact 2. Apply the latest environmental technology to our products by strengthening cooperation with related companies and suppliers 3. Promote green procurement and green logistics 4. Raise the awareness of our entire staff through substantial environmental education 3. Effort Concept In accord with the Fujitsu Ten Environment Charter, the Fujitsu Ten Group has made "Green Life 21- Making Everything Green" the key theme of our environmental efforts in every business area. Effort Concept Green Factories Realization of zero waste emission factories Promotion of measures to prevent global warming Promotion of resource conservation and resource recycling measures Promotion of measures to reduce the use of and environmental risk from chemical substances Green Products Development of technologies that contribute to the environment and the provision of green products Implementation of product environmental assessment Promotion of ecological design Development of essential technology for green products Factories (Production) GREEN LIFE 21 Making Everything Green Protection Protection Products (Development and Design) Management Upstream and Downstream (Procurement and Logistics) Green Sourcing and Logistics Consideration of the environment both upstream and downstream of production Create green partnerships Green procurement (of parts and materials that are environmentally friendly) Green logistics (of products in an environmentally friendly manner) Management Creation of a foundation for environmental management and publication and release of information

7 4. Action Plan In order to realize the items determined in the Fujitsu Ten Environment Charter concretely, in March 2003, we created the 4 th Fujitsu Ten Group Action Plan, which has fiscal 2005 as the final year of completion. Item Main Theme of Action Specific Action Plan Fiscal Year 2003 Goals Discontinue completely the use of lead solder in all new products made beginning in July 2005 Phase in products for customers Green Products + Green sourcing Expansion of list of substances prohibited from use in products Discontinue the use of parts containing hexavalent chromium by the end of 2004 Discontinue completely the use of parts containing lead or cadmium by the end of June 2005* Establish alternate technologies and create a plan for the changeover Complete study of parts to be covered Introduce products that do not use mercury in their backlighting to the market by the end of fiscal 2005 Complete evaluation tests of product using alternate technologies Promote measures to prevent global warming Japan Reduce CO2 emissions by production volume to 15% less than fiscal 2002 levels by the end of fiscal 2005 Reduce CO2 emissions by production volume to 15% less than fiscal 1990 levels by the end of fiscal % or more 14% or more Green Factories + Green logistics + Green sourcing Promote measures to conserve, recycle and reuse resources Japan Reduce the amount of waste disposal by production volume to 10% less than fiscal 2002 levels by the end of fiscal 2005 Achieve a waste recycling rate of 90% by the end of fiscal 2005 Reduce the amount of waste disposal by production volume to 10% less than fiscal 2002 levels by the end of fiscal % or more 84% or more 9% or more Maintain a waste recycling rate of 100% 100% Promote measures to reduce the use of chemical substances and to decrease environmental risks Reduce the amount of the use of substances covered by the Pollutant Release and Transfer Register (PRTR) by production volume to 30% less than fiscal 2002 levels by the end or fiscal % or more *Deadline for discontinuing use except for substances that still do not have prohibition dates set under Europe's End-of-Life Vehicle (ELV) Directive. The ELV Directive is a European Union regulation that requires environmental consideration for cars that have reached the ends of their useful lives. The directive regulates the prohibition of the use of designated harmful substances (lead, hexavalent chromium, cadmium, mercury) in cars and ensures the car recycling rate. In order to achieve these performance goals, in addition to strengthening the collaboration of the group on environmental management, we are making an accurate appraisal of the environmental impacts of our products, including every process from design to disposal and of the product itself, and setting up a system for management. Furthermore, we are working on the development of green products, an environmental issue that is business specific, and on the consideration of the environment in the making of products, an environmental issue that has effects at both local and global levels. In addition, we will put our energy into management that handles the issues of society, including corporate ethics, community revitalization, contributions to society and cultural activities. We are also strengthening and expanding our partnerships with other companies, communities and groups. 5. Goals, Results and Evaluation The results for fiscal 2002 of the 3 rd Fujitsu Ten Group Action Plan are shown in the chart below. With the exception of measures to prevent global warming, we achieved our goals for all of the items. Ratings : Goal exceeded : Goal met approximately : Goal not met : Goal not met to a large extent Item Action Plan Final Goal Fiscal 2002 Results Rating Reference Page Consideration of the environment in products Introduce products that are free of lead solder on the market Introduced one AVN model which is free of lead solder on the main printed circuit board For production facilities in Japan Waste volume reduction measures Measures to reduce the use of harmful substances Measures to prevent global warming Complete measures to achieve zero waste emission at our Head Office Plant and Nakatsugawa Plant, and raise our recycling rate to 96% Reduce paper purchases by 30% compared with fiscal 1999 by the end of fiscal 2002 Maintain the rate of the use of substances covered by PRTR per basic unit of production volume at 21% or less than fiscal 1995 levels Restrict the amount of CO2 released per basic unit of production volume to less than 91% of fiscal 1990 levels by the end of fiscal 2002 Completed measures at 3 plants in Japan Recycling rate of 98% 30% 13% 93%

8 Policies, Goals and Overview 6. Accounting Since March 2000, we have been conducting environmental accounting in order to identify and evaluate quantitatively the expenses related to environmental protection and the economic and material amount effects. In fiscal 2002, we began implementing environmental accounting at our production facilities abroad also, and this time we have included their environmental costs in the summary. accounting, as a part of business administration, promotes the effective reduction of environmental impacts by grasping all of the company environmental protection efforts. In addition, we consider this to be a valuable tool to deepen the understanding of the environmental protection efforts of our company. We referred to the Ministry of the Environment's guidelines and the environmental management systems already established by other companies when creating the Fujitsu Ten Group Accounting Guidelines. In this document, we are publishing the summarized results of our environmental accounting. In order to utilize environmental accounting fully as a management tool, however, many issues must be dealt with, including how to estimate environmental costs, how to measure the economic and material amount effects of environmental investments, which are necessary for making management decisions, and how to establish standards. Furthermore, in order to improve the reliability of our accounting from the perspective of information disclosure, in addition to continuously reconsidering and reexamining our Accounting Guidelines, we will set up an internal audit system. Methods for Categorizing and Summarizing Costs and Economic Effects Method for Costs losses Maintenance costs investments impacts (Investment amounts attributed proportionately according to amount relevant to the environment) risk reduction Reduce environmental costs overall New equipment investment is the sum of an annual amount based on 5-year fixed amortization and other costs that occurred during the applicable fiscal year. Results of Fiscal 2002 All related domestic environmental costs increased by 12 million yen over the last fiscal year, reaching 319 million yen total. The main causes of the increase were the establishment of technology for lead-free parts attachment, which increased the amount of work, and that research and developments costs increased by 29 million yen. The total environmental cost of production facilities abroad was 84 million yen. The consolidated economic effects of all of our efforts in Japan Method for Economic Effects Actual effects (cost reduction): Saving on maintenance costs and income from the sales of valuable goods Presumed effects: The economic effects that are presumed, by some definition, to result from efforts such as environmental education Risk avoidance effects: Avoidance of risks, including environmental pollution and lawsuits increased slightly over the previous fiscal year to 136 million yen. Through the development of models qualifying as green products, the effects of research and development increased by 22 million yen. The effect of parts purchases cost reduction by reusing parts from unnecessary equipment and jigs increased by 19 million yen. These effects increased, but, due to the decline in parts prices and the sharp increase in costs, including parts removal and inspection, the effects of parts purchases cost reduction by reusing parts from products declined by 39 million yen. Breakdown of Costs (Unit: millions of yen) Breakdown of Effects (Economic Effects) (Unit: millions of yen) Costs Fujitsu Ten Only For Japan All Companies Abroad Economic Effects Fujitsu Ten Only Fiscal 2001 Fiscal 2002 All Companies in Japan Fiscal 2001 Fiscal 2002 losses Maintenance costs investments Total Fiscal 2001 Fiscal 2002 Fiscal 2001 Fiscal 2002 Fiscal 2002 Actual effects Presumed effects Risk avoidance effects Total Material Volume Effects and Impact Improvement Indicators We are measuring environmental performance with absolute values, including environmental impacts that occur from business activities and material volume effects of our protection efforts. In addition, we are setting environmental impact improvement indicators that link significant impacts with management indicators (production volume, environmental costs). From the perspective of management, we hope to evaluate the effectiveness of our protection activities through these measurements and achieve continuous improvement of our environmental management. Fiscal 2002 Accounting Classification Details Fujitsu Ten Only (Unit: millions of yen) All Companies in Japan Efficiency* (Production volume/co2 emissions amount) (Unit: 100 million yen/tc) Fiscal Year Fujitsu Ten Only All Companies in Japan Material volume effects Amount of environmental impact reduction (fiscal 2002 impact amount minus fiscal 2001 impact amount) CO2 emissions amount (unit: tc) * efficiency (production volume/environmental impact): An index that indicates the amount of environmental impact per production volume (This value shows the more effective reforms are, the more the economic value increases.)

9 Management 1. Promotional Organization In 1992, we established the Environment Committee and, within this, the Site Environment Subcommittee that is responsible for environmental protection at every facility or business location, and the Green Products Subcommittee that is responsible for environmental considerations for products. Management Committee Officer in charge: Koichiro Fukushima Audit Team Protection Department Management Planning Group Legal affairs, public relations, education, contributions to society Quality Assurance Group Prevention of issues related to quality Marketing & Sales Group Investigation and notification of customer requests Service Section: reuse of parts Environment Committee Purchasing Group Green procurement Research & Development Group Operation of product environmental information system, infrastructure preparation Production Group Reduction of packaging, increasing efficiency of logistics, development of production technology Site Environment Subcommittee Green Products Subcommittee Energy conservation, reduction of waste materials, reduction of chemical substance emissions Product environmental assessment, green product development Head Office Plant Nakatsugawa Plant Tochigi Fujitsu Ten FTCA (USA) FTdM (Mexico) FTCP (Philippines) Tianjin Fujitsu Ten (China) FTTL (Thailand) Development Division Business Division Production Division In addition, we have established cooperation committees for cooperative activities among facilities in Japan and facilities in other countries, and separate promotion committees for each kind of promotion effort related to product environmental measures. Facility Cooperation Committees Task Promotion Committees Japan Group Cooperation Committee Foreign Group Cooperation Committee Green Products Development Promotion Committee Product Assessment Promotion Committee Lead Elimination Promotion Committee Hexavalent Chromium Elimination Promotion Committee 2. Management System The environmental management of the Fujitsu Ten Group, based on the ISO international standards, employs a systematic Plan/Do/Check/Action tool. In addition, while improving our responsiveness to the needs of the age and society by introducing environmental accounting and environmental performance indicators, we are developing every stage of our business activities. Furthermore, in order to make steady progress with the Fujitsu Ten Group Action Plan, we are setting environmental policies and environmental management programs for each year. We are developing a detailed environmental management program that will further involve every part and every member of our company. Management System Reevaluation at the management level Management meetings Environment Committee Fundamental principles and policies Fujitsu Ten Environment Charter Plans and goals Fujitsu Ten Group Action Plan Inspection and improvement Principle inspection and internal audit system Implementation and application management system

10 Management 3. Status of ISO Certification The Fujitsu Ten Group is seeking to achieve ISO certification for all of our production facilities and has already completed certification of 3 facilities in Japan and 4 facilities in other countries. In addition to making progress toward attaining certification in December 2003 for Fujitsu Ten Thailand, our fifth certified facility abroad, we will create environmental management systems for all of our facilities within this fiscal year and plan stronger cooperation among group members. In May 2003, Fujitsu Ten Europe (FTEG) attained certification. This was the first certification for a Fujitsu Ten Group sales company. Enterprise Date of Certification Evaluating Organization Authorizing Organization Fujitsu Ten Head Office Plant 24 June 1997 JACO JAB, UKAS Japan Fujitsu Ten Nakatsugawa Plant 26 August 1997 JACO JAB, UKAS Tochigi Fujitsu Ten 27 October 1997 JACO JAB, UKAS FTCP (Philippines) 21 October 1998 TÜV Rheinland DAR FTCA (USA) 17 June 1999 LRQA ANSI, RAB Abroad Tianjin Fujitsu Ten (China) FTdM (Mexico) 15 December June 2000 CCEMS LRQA ZHB, UKAS RAB, ANSI FTEG (Germany)* 26 May 2003 TÜV Rheinland DAR FTTL (Thailand) Expected in 2003 Not yet determined Not yet determined *Sales company 4. Auditing We are implementing internal audits as part of our environmental management system. While checking the state of our environmental protection efforts based on these results, we also conduct an evaluation of our management efforts for the year in order to improve our environmental management system continuously. 5. Education Internal audit We are implementing environmental education at all levels in the company by including environmental management in our company education program. In particular, we are conducting special education programs, both introductory training and refresher courses, for staff with direct responsibility for environmental management work. Staff members who are in charge of environmental management, responsible for environmental protection promotion, involved environmental management auditing, or doing environmentally related work, train in order to gain necessary knowledge and skills. 6. Training for Emergency Measures Since the Great Awaji Hanshin Earthquake Disaster in January 1995, we have been conducting training drills for employees to practice response to a simulated chemical substance leakage accident near the storage facilities. In addition to this, at workplaces where chemical substances are used, we conduct training for coping with spills during work. We are also implementing periodical inspections of the equipment that we have provided for handling these accidents. Training simulation drill (Tochigi Fujitsu Ten)

11 7. Green Procurement In September 2001, we created Green Procurement Guidelines in order to promote green product development, the most important issue for environmental management. These guidelines include our green procurement philosophy and goals and list the standards that parts, raw materials and secondary materials must comply with for environmentally friendly procurement. In 2002, we added an item to cover chemical substances used during supplier production processes and issued a revised edition of our procurement guidelines. Furthermore, as a result of strengthening our support of the creation of environmental management systems at suppliers that had poor evaluation records in the previous fiscal year, our green procurement rate reached 98%, exceeding our green procurement goal of 85%. We will make further efforts to support reforms at the remaining suppliers and will seek to achieve a green procurement rate of 99%, based on supply costs, by the end of fiscal Green procurement rate Fiscal 2002 Goal Fiscal 2002 Result 85% or greater 98% (goal achieved) Definition of green procurement Procurement of green parts and materials that have been made with consideration for environmental protection, including energy conservation, resource use reduction and recyclability Definition of green parts and materials Parts, raw materials and secondary materials that have been procured from businesses that have received ISO certification or that are making environmental protection efforts in conformance with this standard Parts, raw materials and secondary materials that do not contain substances that our company has prohibited for use Green Procurement Guidelines Requests for our suppliers 1. Establish an environmental management system 2. Promote environmental protection efforts that match our Action Directives Receive ISO certification or establish an environmental management system in conformance with this standard by the end of fiscal 2003 Management and risk reduction of substances with environmental impacts Energy and resource conservation Consideration about packaging materials Labeling of products that use small secondary batteries Consideration about recycling Making products lead-free Results of Supplier Status Evaluation (Evaluated suppliers: 291 in fiscal 2001, 373 in fiscal 2002) Management System Evaluation (Maximum Score: 80) Total Evaluation with the Addition of Performance Evaluation (Maximum Score: 100) 49 or fewer points points points points 80 points 49 or fewer points points points points points points 100 points Evaluation Items and Points Per Item The number of suppliers is in parentheses ( ). The number of suppliers is in parentheses ( ). Category Evaluation Item Points Evaluation Item Points management system evaluation (80 points) Policies related to the environment impact evaluation and laws related to the environment Plan for environmental protection efforts Organizations and systems related to environmental management Education and information efforts related to environmental protection Communication with stakeholders Documentation of environmental management system and management of those documents Preparation for emergency situations Inspection and improvement Reevaluation at the management level Performance evaluation (20 points) Efforts to conserve energy and resources Reduction of waste disposal and efforts to recycle Efforts to reduce the use of substances with environmental impacts Efforts to disclose environmental impacts Efforts to make contributions to society and to be active in local communities Contribution Awards In fiscal 2001, we began to give Contribution Awards to suppliers that made excellent efforts to cooperate with our goals of developing green products and reducing the environmental impact of factories. The fiscal 2002 award results are as shown on the right. Fiscal 2002 Award Results 3 Companies (For making electrolytic condenser sleeves lead-free)

12 Communications 1. Information Release and Publicity At the Fujitsu Ten Group, we believe that releasing information about the environment is one of the most important aspects of the duty all companies bear to explain corporate activities to society. Using this Report, among other means, we provide information about our environmental roles to the public. Along with this, we are also providing environmental information in our in-house publications and on our intranet in order to raise the understanding of the importance of our environmental protection efforts and make all of our employees realize that these efforts involve everyone in the Fujitsu Ten Group. Report (this publication) We began publishing the Report, which summarizes all of our corporate environmental information, in fiscal In addition to distributing it to all of our suppliers and affiliated companies, we provide it to visitors to our factories and others upon request. Furthermore, in addition to distributing the Report as a brochure*, we also make it available on our company website. In fiscal 2003, we have also prepared this, the first abridged English edition of the report, available for download from our website. At the Fujitsu Ten Group, we do not want to have information that flows only one-way, but rather we are actively seeking to develop two-way communication with our clients, stakeholders and the public. If you have any opinions about our environmental efforts, comments about this environmental report, or anything else that you would like to communicate with us about, please do not hesitate to contact us. *Japanese edition only External Public Relations Record May 2002 August 2002 October 2002 March 2003 Sales of green products free of lead solder Publication of fiscal 2001 environmental accounting and environmental report Achievement of zero waste emission at our Head Office Plant and our Nakatsugawa Plant Achievement of zero waste emission at Tochigi Fujitsu Ten 2. Efforts to Contribute to Society At the Fujitsu Ten Group, in addition to our on-site environmental protection efforts, we are making significant efforts to help build a recycling-based society while developing partnerships with the people in our communities. Community Cleaning Many of our employees cooperate with local people to clean areas near our facilities and along commutation routes. Please visit the following URL if you have any comments or questions. Website Suma Beach cleaning Beautification efforts around the Nakatsugawa Plant Beautification efforts around the Tochigi Fujitsu Ten Plant Participation in a Disaster Prevention Welfare Community Making use of the lessons learned from the Hanshin Awaji Great Earthquake Disaster, we are cooperating with "Disaster Prevention Welfare Community," a citizen organization based in the neighborhood where our home office and plant are, and other businesses and hospitals in the area. Together we have established a cooperative system for times of disaster, completing various arrangements for emergency situations, including refuge locations, material and human contributions, and the distribution of rescue resources. Fujitsu Ten Social Contribution Foundation The company and the labor union made contributions together to establish the Fujitsu Ten Social Contribution Foundation. Among its activities, the foundation makes donation to social welfare facilities and supports visits to these facilities by our culture and sports club. The foundation's other activities include support for the "Ring of Love Concert" by Oto Kobo, a volunteer group, and sponsorship of concerts in and out of the company. The foundation also supports an event for employees to experience wheelchair use put on by the group Fureai Kobo. Welfare concert

13 Efforts to Reduce Impacts The Fujitsu Ten Group as a whole is promoting measures to prevent global warming, to conserve and recycle resources, and to reduce the use of chemical substances and lower their environmental risks. In the 3 rd Fujitsu Ten Group Action Plan, implemented fiscal , we established action goals for production facilities in Japan as a single integrated management area, but for facilities and sales bases in other countries, we conducted activities independently according to the conditions in each country. With the creation of the 4 th Fujitsu Ten Group Action Plan in March 2003, however, the Fujitsu Ten Group will begin pursuing globally integrated environmental protection activities in fiscal Measures to Prevent Warming In order to reduce the emissions of CO2, which is a primary cause of global warming, in addition to the energy conservation measures such as the installation of energy conserving equipment and thorough electricity use reduction efforts, we are also trying to make our design, production, logistics and office work more efficient. In fiscal 2003, we will begin expanding our efforts to control CO2 emissions with new measures, including the implementation of green processes and the introduction of technology to use reusable energy in our production activities, purchasing of green electric power, and protection of forests. Fiscal 2002 Goal Fiscal 2002 Results Goals for the 4 th Action Plan Period Restrict CO2 emissions amounts per basic unit of production volume to 91% of fiscal 1990 levels 93% of fiscal 1990 levels (goal not achieved) Reduce CO2 emissions amounts by production volume by 15% from fiscal 2002 levels by the end of fiscal 2005 JapanReduce CO2 emissions amounts by production volume by 15% from fiscal 1990 levels by the end of fiscal 2005 Efforts to Conserve Energy at Workplaces In order to reduce emissions of CO2, a primary cause of global warming, we are making increased efforts throughout the company to take measures to conserve energy. These include reducing electricity use for air-conditioning and lighting, elimination of wasteful equipment utilization through the introduction of energy conserving equipment and line rationalization, and improvement of the efficiency of design, production, logistics and office work. The target to reduce the CO2 emissions amount by production volume for fiscal 2002 of the 3 rd Action Plan was not met. Fiscal 2002 Results CO2 emission amount (tc) Fiscal 2002 CO2 Emission Amount by Source Fiscal 2002 CO2 Emission Amount by Business Electricity LNG (liquefied natural gas) Heavy oil City Gas Light oil LPG (propane) Natural Gas Kerosene FTCP Home Office Plant Nakatsugawa Plant Tianjin Fujitsu Ten FTdM Tochigi Fujitsu Ten FTCA Sales companies in Japan FTTL Others *For the CO2 emissions amount conversion value for production facilities abroad, the conversion coefficients for Japanese facilities were used. Installation of cogeneration equipment that generates heat and electricity simultaneously At our Home Office Plant, we installed a cogeneration system when replacing cold and hot water generation equipment. This system uses city gas as fuel for a gas turbine to generate 50 kw of electricity. The heat generated in this very effective system is used for room heating and cooling and other purposes. This low pollution, energy conserving equipment contributes to the preservation of the global environment and the prevention of global warming. Cogeneration equipment

14 Efforts to Reduce Impacts 2. Measures to reduce waste Based on the philosophy of the 3Rs, reduce, reuse and recycle, the Fujitsu Ten Group is working to reduce the amount of waste matter that we produce and turn the waste we do produce into resources. We had been aiming to achieve zero waste emission by the end of fiscal 2005 at all of our production facilities in Japan, but we reached this goal ahead of schedule. The Home Office Plant and the Nakatsugawa Plant both achieved zero waste by the end of September By the end of January 2003, Tochigi Fujitsu Ten also achieved this goal, thus all of our plants in Japan are now zero waste. At our Home Office Plant, waste products and parts had been disposed of in landfills as shredder residue. We solved this waste issue by implementing the disassembly of waste materials and the development of new recycling routes for them. Waste acid is also now recycled as a neutralizer at our Nakatsugawa Plant and Tochigi Fujitsu Ten. Obstacles to achieving zero waste have been overcome, and for fiscal 2002, the total recycling and reuse rate of all of our production facilities in Japan reached 98%. Fiscal 2002 Goal Fiscal 2002 Results Complete measures to achieve zero waste emissions* at the Home Office Plant and the Nakatsugawa Plant, including the recycling and reuse of waste products, parts and acids. Achieve a waste recovery rate of 96% or greater. Measures to achieve zero waste emissions at all plants in Japan completed (goal achieved). Waste recovery rate of 98% achieved. *The Fujitsu Ten Group definition of "zero waste emissions": By reducing the amount of waste matter at workplaces, and by reusing and recycling the waste that does occur, we eliminate waste that is disposed of in landfills, by incineration, or by other means and not put to good use. Furthermore, in fiscal 2002, the consolidated amount of waste discharged by our domestic production facilities decreased slightly from 1396 tons in fiscal 2001 to 1374 tons. On the other hand, since our logistics center in Kobe imported more products from abroad, packaging waste nearly doubled from 284 tons in fiscal 2001 to 548 tons in fiscal These wooden pallet and cardboard packaging wastes were all recycled. We expect that, as our production abroad increases, we will import more products to Japan and therefore this trend of increasing amounts of packaging waste will continue. For this reason, we have added the goal of reducing waste amounts by production volume in our 4 th Action Plan and will also pursue measures to reduce waste on a global level in cooperation with our production facilities outside Japan. In addition, we are also seeking to achieve zero emissions at all plants in other countries by th Action Plan (Fiscal Fiscal 2005) Reduce amount of waste discharge by production volume by 10% from fiscal 2002 levels by the end of fiscal Achieve a waste recycling and reuse rate of 90% by the end of fiscal JapanReduce amount of waste discharge by production volume by 10% from fiscal 2002 levels by the end of fiscal Maintain a waste recycling and reuse rate of 100%. Fiscal 2002 Results Recycling amount (t) Final disposal amount (t) Recycling rate (%) Waste amount (t) Production volume (100 million yen) Basic unit of production volume (t/100 million yen) Japan Fiscal 2002 Waste Amount by Source Fiscal 2002 Waste Amount by Business Paper waste Plastic waste Metal scraps Wood scraps Ordinary garbage from office activites Other Home Office Plant FTdM Kobe Logistics Center and other facilities Tochigi Fujitsu Ten Nakatsugawa Plant FTCP FTCA Tianjin Fujitsu Ten FTTL Waste Products and Parts Recycling Examples Categories after Disassembly and Sorting Methods of Recycling and Reuse Iron scrap Recycled as iron Waste products Waste parts Disassembly Sorting Nonferrous metal scrap Electric wire scrap Circuit board scrap Miscellaneous metallic scrap Each metal recycled separately Copper recovered and recycled Valuable metals recovered, remainder recycled as roadbed material Metals recycled by type, and, after valuable metals recovered from circuit boards, remainder recycled as roadbed material Compound iron and plastic materials Melted, iron recycled, plastic used as blast furnace fuel LCD screens Glass parts recycled, plastic used as secondary fuel Waste plastic Identifiable plastics recycled, unidentifiable plastics used as secondary fuel

15 3. Measures to Reduce the Use of Harmful Substances For all chemical products used by the company, we have created a system in which we use chemical substance safety data sheets to identify the presence of substances that are subject to management, the amount contained (%), and chemical substance assessments that identify their negative effects on the human body and their risks to the environment. We are also making efforts to identify and reduce the use of chemical products that have high environmental risks. At present, the focus of our use reduction efforts are substances that are covered by the PRTR* 1, including lead, toluene, and xylene, and one VOC* 2, isopropyl alcohol (IPA), substances that we have used in significant amounts. * 1 PRTR (Pollutant Release and Transfer Register): A system in which the amount of harmful chemical substances released into the environment and the amounts contained in waste matter and products that are transferred out of workplaces are calculated and publicized. The PRTR Law was enacted in Japan in March * 2 VOC (Volatile Organic Compounds): Substances that volatilize at room temperature, spread into the atmosphere and generate photochemical oxidants that damage forests, that pollute the environment as harmful chemical substances, including carcinogens and environmental hormones, and that are feared to harm ecosystems. Fiscal 2002 Goal Fiscal 2002 Results Maintain the amount of PRTR covered substances used per basic unit of production volume to a maximum of 21% of 1995 levels 13% of 1995 levels (goal achieved) In fiscal 2002, we continued to reduce the amount of solder used through the merging of production lines to make multiple products on the same line. In addition, we worked to revise our designs to reduce the amounts of solder, achieving our fiscal 2002 goal to keep the amounts at 18% or less than 1995 levels. Within our 4 th Action Plan, we established a plan to reduce the use of substances covered by the PRTR, reflected by our lead-free solder program, and we will seek to reduce use by 30% from fiscal 2002 levels. 4 th Action Plan (Fiscal Fiscal 2005) Reduce the amount of PRTR-covered substances used by production volume by 30% from fiscal 2002 levels by the end of fiscal 2005 Fiscal 2002 Results (Units: kg) Usage by Business Substance Lead Xylene Toluene Silver Total Amount Used Nakatsugawa Plant FTCP Tianjin Fujitsu Ten FTdM Tochigi Fujitsu Ten Home Office Plant FTCA FTTL Measures to Reduce the Use of Solder (Lead) We have switched from using lead solder (37% lead) and are promoting the development of lead-free solder materials and construction methods. In July of fiscal 2002, we put products that use lead-free solder on the market. For further details, please see the section entitled Lead-Free Solder on page 16. Furthermore, in order to reduce the use of solder itself, we are promoting reduction at the design stage by making smaller circuit boards and using Surface Mounted Devices (SMD). Measures to Reduce the Use of Isopropyl Alcohol (IPA) In order to reduce isopropyl alcohol use, in addition to the merging of production lines to make multiple products on the same line, as with solder, we are also strengthening our voluntary efforts to reduce the frequency of machine washing and instead of washing, just wiping them clean during periodic inspections and maintenance. Elimination of Alternative Fluorocarbons (Nakatsugawa Plant) We had used alternative fluorocarbons in the product repair process to remove coating materials, but in September 2002, we switched to coating materials that can be removed with solvents other than fluorocarbons, achieving the complete elimination of the use of alternative fluorocarbons. Measures to Prevent Soil and Groundwater Pollution In 2001, the Fujitsu Ten Group completed a soil inspection of all places on our properties where there had been a history of use of 1,1,1-trichloroethane and trichloroethylene, substances that we no longer use, and confirmed that there is no soil pollution.

16 Considerations and Contributions of Products and Technologies The Fujitsu Ten Group established a system for Product Assessment in We implement assessments for every product from the design stage and only put into production the designs that have cleared our set of standards. Furthermore, we are promoting environmental consideration in products by implementing a system of recognizing as "green products" those that have implemented significant improvements, especially in energy and resource conservation and the elimination of harmful substances. In fiscal 2002, 25% of our newly designed products, 547 out of 2150, qualified as green products. 1. Working to Meet Europe's End-of-Life Vehicle Directive Europe has implemented the End-of-Life Vehicle (ELV) Directive, beginning in July 2003, which, with limited exceptions, prohibits the inclusion of lead, cadmium, hexavalent chromium, and mercury. We had already completed the elimination of the use of lead and cadmium by July From 2004 on, we will work towards the complete elimination of the use of prohibited substances part-by-part, staying ahead of ELV Directive restriction deadlines. Symbol identifying green products Periods for Restriction of Substances and the Fujitsu Ten Group's Elimination Plan ELV restriction period Fujitsu Ten Group elimination period (based on product shipments) Parts Containing Substance PVC (electric wire sheaths, tubes, electrolytic condenser sleeves), terne coated sheets, coatings Fiscal 2003 April July Fiscal 2004 Fiscal 2005 Fiscal 2006 Fiscal 2007 Completed elimination before European deadline Lead Light-bulb glass Aluminum for machine processing (1% lead 2%) January July January July (Lead 1% to be restricted from July 2008) Solder Lead-free with the exception of high-temperature solder in parts Restriction period not yet determined July (beginning with new products) Cadmium Motor commutators, fuses, connectors, pigments, NiCad batteries Thick film paste July April Completed elimination before European deadline July July Hexavalent chromium Chromate treatment January July Mercury Liquid crystal backlights Restriction period not yet determined Measures to Eliminate Hexavalent Chromium Hexavalent chromium is used in the zinc-coating of steel plates in, for example, brackets and deck chassis, and of screws. We are developing alternative technologies in order to eliminate its use entirely by the end of In 2002, we began to use alternative parts that have had their quality verified. Airbag control computer Engine control computer Products that use zinc-coated steel plates that are free of hexavalent chromium

17 Lead-Free Solder From July 2005, we intend to use lead-free solder in all new products. For this purpose, we are working on establishing new soldering methods, and changing to different parts. In July 2002, we put our first product with lead-free solder on the market, the Eclipse AVN3302D, an audio-visual unit with a built-in DVDbased navigation system. In 2003, we will introduce other customeroriented audio devices and we will continue to expand the number of products that use lead-free solder from now on. ECLIPSE AVN3302D Main circuit board that uses lead-free solder 2. Product Information System We created a Product Information Management System that is linked with our PDM System*. About 600 designers are using it as a tool to support the development and design of green products. We are going to improve this system and use it as a means to provide automobile manufacturers with quantitative product environmental information in a timely manner. Green product development Supplier part makers *The Product Data Management (PDM) System is a system to manage information about products, including data about technological information related to products, such as plans, part lists and explanatory documents. Shared use of meaningful related information Provide information about part materials Product planning and design Collect environmental information about parts as electronic data Product Assessment Pass Production approved Mass production Recognition Green product Assessment checklist Assessment implementation management PDM System Product Assessment Information System (Database) Product name Assessment (incomplete/complete) Presence Substance Quantity name Unit Part Part Part Part Incomplete Complete Complete Complete Yes No Yes Cadmium Mercury 2mg 6mg Provide environmental impact information to customers Purchasing automobile manufacturers Disclosure of information about harmful substances Disclosure of recyclability rates Provide product environmental information as electronic data Management of evaluation results Comply with car disposal regulations of importing countries

18 Considerations and Contributions of Products and Technologies 3. Consideration in Speakers Seeking to reduce the environmental impact of 11 types of speakers sold in North America, including the SW918 Pro subwoofer, we changed the construction of the speakers so that their magnets can be removed. Speakers can be divided into basic parts, including magnets, cone paper and frames. When speakers break, usually it is the moving parts such as the cone paper and coils. The magnets themselves do not have any moving parts and the chance of one breaking is extremely low, so their reuse could contribute to the protection of material resources and the reduction of transportation energy costs. Furthermore, repair costs for customers could be reduced if their speakers break. Other merits could be the ability to leave the magnet in place when, in the future, different color cone paper is sold, so that only the paper needs to be replaced. 4. Reduction of Automobile Gas Emissions: CNG Engine Control Computer The Toyota Motor Corporation uses our control computer for the Compressed Natural Gas (CNG) V12 engine in their flagship saloon model, the Century. The CNG engine cuts the amount of global warming causing CO2 emissions by 20% from standard gasoline engines. In addition, it also reduces the emission amounts of NOx, CO and HC, which cause photovoltaic smog, acid rain and other environmental pollution, and it emits almost no SOx or particulate matter (PM), making it a green engine. (75% reduction from 2000 standard gas emissions is equivalent to the ultra-low emission level.) CO2 Emissions of Each Type of Automobile (compared to 100 for a gasoline fueled car) During fuel production and transportation During operation Gasoline car LPG car CNG V12 engine Diesel car CNG car Electric automobile CNG engine control computer

19 5. Improving Automobile Fuel Efficiency with the Engine Control Computer and the Intelligent Idling Stop Computer The Toyota Motor Corporation's Vitz U-Intelligent Idling Stop achieved the best fuel efficiency in its class at 25.5 km/l. Fujitsu Ten was responsible for the development of the engine control computer and the intelligent idling stop computer. Engine Control Computer In addition to CVT control, we added new items to improve fuel efficiency. CVT Control Continuously Variable Transmission (CVT) can set gear ratios at any time in response to traveling conditions by taking advantage of a system with two pulleys that can freely change their effective diameters. One pulley on the engine side and one on the tire side are connected by a belt in this structure. Use of this unique feature can greatly improve efficiency by controlling the transmission gear ratio to keep the engine at the revolution rate with the maximum torque. Battery Charging Control System This system manages electric voltage generation according to vehicle moving conditions, speed increase and decrease. This should reduce engine load from electricity generation and improve engine fuel efficiency. Fuel Pump PWM Control Pulse Width Modulation (PWM) control manages the amount of fuel used by responding to factors including the engine revolution rate. Use of PWM should result in lengthening the use life of the fuel pump and reducing the amount of electricity consumed. Cooling Fan PWM Control PWM control manages the cooling fan by responding to the engine state, resulting in both improvement of its cooling function and quieter operation. External Control Continuously Variable Capacity Compressor With an external control continuously variable capacity compressor, compressor operation capacity can be managed in response to air-conditioning burden, resulting in better energy efficiency. Engine side pulley Tire side pulley Low gear state (at start-up, etc.) Continuously Variable Transmission (CVT) Engine control computer Engine side pulley Tire side pulley High gear state (at highway speed, etc.) Intelligent Idling Stop Computer This system causes the engine to stop and restart automatically when the vehicle comes to a halt and recommences movement. When the gearshift is set to drive (D) and the break is applied, the engine will stop along with the vehicle, and then restart when the break is released. By stopping the engine with the vehicle, fuel efficiency should improve by 2 km/l. In past systems, the engine stop function only worked when in neutral (N) gear. This is the first system in Japan to add the function of automatic engine stop with vehicle stop in the drive gear. When the break is applied in drive gear and the vehicle comes to a stop... Break Engine stops Vehicle stopped Break is released Break Engine restarts Intelligent idling stop computer Vehicle begins to move