Fujitsu Group Conference for Explaining the Green Procurement Direction November 2003 FUJITSU LIMITED Procurement Group Corporate Environmental Affairs Group Corporate Product Technology Group
Today's schedule 1. Fujitsu Group activities for environmental management Corporate Environmental Affairs Group, Environmental Engineering Center Eco Cycle Promotion Dept. Director (M.Takahshi) 2. Fujitsu Group activities for eliminating specified hazardous substances Corporate Product Technology Group, Corporate Technology Engineering Center. Vice General Manager(H.Yagi) 3. Green Procurement Direction Procurement Group, Procurement Engineering Div., Vice General Manager(W.Naitoh) 4. Questions and answers 2
Comprehensive effort on Environmental Management in Fujitsu Corporate Environmental Affairs Group Environmental Engineering Center Makoto Takahashi 3
1. Base of Fujitsu Group s activities for environmental management 2. Activity record in phase 3 of Environmental Action Program 3. Overview of phase 4 of Environmental Action Program 4
Original Starting Point for the Fujitsu s Environmental Management Industrial Park - Not looks like manufacturing facility - Create products in good harmony with nature 5
Fujitsu Group s s Environmental policy Fujitsu Group recognizes that environmental activities performed by Fujitsu Group as an IT enterprise in order to ensure sustainable prosperity of community are important corporate activities and makes every effort to leave affluent nature as it is for the next generation by ensuring that the entire organization and the individual people of Fujitsu Group will always keep ahead of the times when acting for the global environment. 6
Environmental Consciousness by individual employees Fujitsu Corporate Action Guidelines (enacted in 1987) Mission Values Customers Technology/Quality Efficiency Internationalization Human-beings Code of Conduct The FUJITSU Way enacted in 2002 Customer Focus People Quality Environment Growth and Profit Mission Values Code of Conduct 7
Environmental Vision Green Life 21 Focused on the Green Realization of zero-emission facilities Green Products development contributing to environment Green Life 21 Global scale environmental activities Offering Environmental Solution Environmental management infrastructure development, information transmission and disclosure 8
1. Base of Fujitsu Group s s activities for environmental management 2. Activity record in phase 3 of Environmental Action Program 3. Overview of phase 4 of Environmental Action Program 9
Green products Definition: Advanced Eco-strengthened Product Providing all newly developed products as green products Totally disusing lead solder in in-house manufactured products 100 Green product percentage 100 100 100 Lead-free solder usage percentage 100 95.5 100 100 80 60 40 41.9 60.5 66 80 60 40 36.6 57.2 62.3 20 20 0 '01 '02 '03 0 '01 '02 '03 Actual Actual Planned Actual Actual Planned 10
Activities for green procurement Target setup and execution earlier than competitors Target Percentage of green material procurement: 99% or higher Fujitsu: End of March 2003; Group: End of March 2004 Definition (1) Environment management system construction/operation (2) Materials do not contain substances included in the Fujitsu Group list of prohibited substances. Progress Fujitsu: 99.4% at at the end of of March 2003 Group: 93.2% at at the end of of March 2003 11
Fujitsu environment rating example (1) Dow Jones rating (2500 companies from the world surveyed) First in the computer sector, in 5 successive years Principal merits All products are green Environmental solutions are offered An environmental accounting system is implemented 12
Fujitsu environment rating example (2) Rated top by SVTC (Environment ranking among PC equipment manufacturers evaluated in 2002 by the coalition of US environment NPOs) Principal merits Top management s leadership Use of lead-free manufacturing methods SVTC Silicon Valley Toxics Coalition 13
1. Base of Fujitsu Group s s activities for environmental management 2. Activity record in phase 3 of Environmental Action Program 3. Overview of phase 4 of Environmental Action Program 14
Transition in Environmental Protection Programs Stages (period) Slogan Applicable area 1st~2nd stages 93 00) Foundation of Environmental Management Fujitsu Factory 3rd stage (01 03) Leading Company for the Cyclical Society Fujitsu Group (the initial stage) Factory/ Design/R&D 4th stage(04 06) (under planning) From Environmental Management to Sustainable Management Fujitsu Group (the Intensification stage) Factory/Design/ R&D/ H.Q./Sales/ Soft & Service 15
Idea for phase 4 environmental action program Phase 3 environmental Enhancement action of environmental program Enhancement of environmental activities activities for for products products Phase 4 environmental Creation of environment-aware action program Creation of environment-aware products products that that will will produce produce significant significant impact impact on on business business Green products The standards raised to include all products in the green-product category. Hazardous substances Prohibition of use of lead-solder Promotion of green procurement Green products containing top-runner elements Attitude towards full consideration on human beings (more extensive efforts for hazardous substance elimination) More extensive green procurement 16
Enhancement for green products Offering of super-green products from principal products groups yielded by all business sectors All business sectors develop super-green products, which are environment-strategic products that will directly lead to successful business because their prominent feature is the first in the world, Japan, or the industry or stands out in another way. Evaluation items Energy saving, reduction, reuse, recycling, manufacturing processes, chemical substances, and so forth 17
Further reduction of hazardous hazardous substances Products destined for Europe, which must be RoHS Directive compliant (no containment of lead, mercury, cadmium, hexavalent chromium, PBB, PBDE) will be made RoHS Directive compliant by the end of 2004. For other products, the substances that need to be totally disused will be totally disused by the end of March 2006. Banned substances and substances that are Prohibited for use in manufacturing are immediately prohibited. 18
More extensive green procurement All suppliers will implement an environment management system (EMS) by the end of 2006. Execution of environmental assessment of products Information disclosure 19
Request to supply environmental information about deliverables Survey regarding contained chemical substances Survey regarding amounts of contained chemical substances that are specified in common by JGPSSI (JGPSSI :Japan Green Procurement Survey Standardization Initiative) Survey regarding activities for RoHS Directive compliance Survey regarding containment of 6 substances specified in RoHS Directive 20
Fujitsu Group Activities for eliminating specified hazardous substances Corporate Product Technology Group Corporate Technology Engineering Center Harumi Yagi
Fujitsu Group specified hazardous substances Fujitsu Group specified hazardous substances (Banned substances, substances prohibited for use in manufacturing, and substances to be totally disused) Survey regarding suppliers environmental activities (Questionnaire on Environmental Protection Measures) Contained chemical substances specified in common by JGPSSI Substances specified in RoHS* * Directive Mercury, lead, hexavalent chromium, cadmium PBB, PBDE Objectives of recycling: Gold, silver, copper, palladium, etc. *RoHS :Restriction of the Use of Certain Hazardous Substances **JGPSSI :Japan Green Procurement Survey Standardization Initiative Quantitative checking of contained substances Survey regarding contained chemical substances; conformable to surveys conducted by JGPSSI** (Fujitsu green survey tool) Survey regarding activities for RoSH Directive compliance (Fujitsu RoHS survey tool) Verification of RoHS compliance 22
RoHS Directive overview RoHS Directive (2002/95/EC) is an EU directive regarding the use of hazardous substances in electric or electronic equipment RoHS Directive became effective on February 13, 2003. (Each member country will include an equivalent of RoHS Directive in its legislation within 18 months.) Restriction of the use of the specified substances will begin (be enforced) on July 1, 2006. The target is the following 6 substances: Lead, mercury, cadmium, hexavalent chromium, polybrominated biphenyls (PBB), polybrominated diphenyl ethers (PBDE) Applicable products Information technology (IT) and communication equipment Other applicable products (for reference) Large/small domestic appliances, consumer electronics, illumination equipment, Electric/electronic tools, toys, leisure/sports products, vending machines 23
Typical examples of containment of substances specified in RoHS Directive [Reference information] Substance Procured item Usage example Lead Mercury Cadmium Hexavalent chromium PBB, PBDE Electronic components (ICs, resistors, capacitors, switches, etc.) Wires Paint Batteries Electronic components (switches, etc.) Fluorescent tubes Switches Wires/paint Mechanical components (metal plates, screws, etc.) Wires/paint Plastic moldings Solder, contact plating Stabilizers, pigments Pigments Electrodes, plating, solder Contacts Illumination Contacts Pigments Plating Pigments Flame retardants 24
Fujitsu Group specified hazardous substances to be totally disused Applicable Fujitsu Group products Principle: All products EU-destined products (RoHS-compliant) assigned priority Finally, all products Deliverables targeted Cooperation requested Fujitsu Group products targeted All deliverables targeted Principle: All deliverables that will be used in/for products All materials, components, units, and other items that make up products (including OEM equipment and other deliverables) All auxiliary materials that will be used when products are being manufactured 25
Fujitsu Group schedule Total disuse time scheduled by Fujitsu Group 2003 2004 2005 2006 RoHS enforcement 7/01 Prior survey (HDDs, laptop PCs) End of September Products destined for EU (RoHS compliant) End of December All products End of March Suppliers are requested to totally disuse hazardous substance by the following time: Products based on new specifications All deliverables End of September End of December 26
Fujitsu Group Regarding Green Procurement Direction Procurement Group Procurement Engineering Div Wataru Naitoh
Background of Green Procurement Direction revision The first edition was established on June 25, 2001. Environmental assessment of deliverables Control of chemical substances Marking that indicates the use of a compact secondary battery Energy saving etc. Increasing social interest in environmental problems More extensive legislation and stricter regulations in various countries(weee, ELV, RoHS) Version 2.1 became effective on October 28, 2003. Environment management system construction Environmental assessment of deliverables Control of specified hazardous substances Marking that indicates the use of a compact secondary battery, etc. Companies are asked to bear a widening scope of social responsibility for corporate activities. 28
Fujitsu Group Green Procurement Direction Scope Procurement Direction common to Fujitsu Group Products (deliverables) procured by Fujitsu Group companies from suppliers (materials, components, units, attachments, packaging materials, equipment, software services) Basics for green procurement Procurement from suppliers that are eager for environmental protection activities Procurement of products (deliverables) that are low in environmental loads and do not contain hazardous substances Promotion of procurement that satisfies both 29
Requirements specified in Green Procurement Direction 1. Environment management system construction 2. Execution of environmental assessment of products Control of specified hazardous substances Marking on deliverables using small secondary batteries Energy saving Consideration on recycling Easier treatment/disposal Environmental consideration on packaging materials 3. Information disclosure Deliverables information disclosure Submission of certificates proving that hazardous substances are not used or contained 30
Environment management system construction (effects) Promotion of development of products and processes designed to reduce environmental loads Contribution to global environment Implementation of an ISO 14001 compliant system Fostering of environment-aware corporate culture and framework Accumulation/impregnation of know-how for environment improvement activities Trade passport Business opportunities Proving that the company is superior in environmental concern Authorization by a third-party organization If a supplier cannot obtain a certificate in a short period without difficulty, they can construct a Fujitsu Environment Management System (FJEMS). Emerging green consumers Green purchase 31
Execution of environmental assessment of products (1) Control of specified hazardous substances Deliverables need to fulfill the following regulations: Banned substances Deliverables must not contain any banned substances specified by Fujitsu Group. Substances prohibited for use in manufacturing Substances specified by Fujitsu Group as prohibited for use in in manufacturing must not be used when deliverables are being manufactured. Substances to be totally abolished (lead, mercury, cadmium, hexavalent chromium) Containment of of any of of these substances in in deliverables will be prohibited after December 2004 or or earlier depending on the result of of discussions between Fujitsu and the supplier. 32
Request for compliance with RoHS Directive EU RoHS Directive: Enforced on July 1, 2006 Controlled substances Lead Mercury Hexavalent chromium Cadmium Bromine-based flame retardants (PBB, PBDE) Prohibition of containment of these substances in products Fujitsu Group products will become RoHS-compliant earlier than the deadline specified in the Directive. (By the end of 2004 for products destined for EU) Suppliers are asked to totally disuse these substances in deliverables by December 2004 or earlier. We may ask suppliers to conduct a survey regarding chemical substances contained in their products. Please be cooperative by responding to this request promptly. 33
Execution of environmental assessment of products (2) Definition of containment of specified hazardous substances Intentional addition for the purpose of providing a certain degree of performance or function The following are not included in intentional containment: Containment of substances as impurities Unintentional non-reaction products It should be noted however that the definition of containment of substances to be totally disused may change to reflect legislative and other factors in the future. 34
Execution of environmental assessment of products (3) Items which are not included in substances to be totally disused These items may change to reflect legislative or other factors in the future. Substance Lead Mercury Cadmium Hexavalent chromium Principal use of items which are not included in substances to be totally disused Lead in high melting temperature type solders (with a weight percent of lead exceeding 85%) Lead in glass of cathode ray tubes, electronic components, and fluorescent tubes Lead in ceramic electronic parts (e.g., piezoelectronic devices) Lead as an alloying element in steel containing up to 0.35% lead by weight Lead as an alloying element in aluminum alloy containing up to 0.4% lead by weight Lead as an alloying element in copper alloy containing up to 4% lead by weight Mercury in compact fluorescent lamps not exceeding 5 mg per lamp Mercury in straight fluorescent lamps not exceeding 10 mg per lamp Mercury in lamps other than compact or straight fluorescent lamps Cadmium used to surface-treat electric contacts that require high reliability Hexavalent chromium as an anticorrosion of the carbon steel cooling system in absorption refrigerators 35
Information disclosure (1) Deliverables information disclosure Method for disassembling large products Procedure for disassembling complex-structured products and special tools required for disassembly Information on parts used (types and quantities of component materials) Characteristics of and disposal method for special materials, if used OEM product assessment results Risks in terms of quality, performance, and/or function involved in substituting a material for a proven material Submission of certificates such as a disuse certificate, a total disuse schedule, etc. Suppliers shall be able to submit certificates such as a disuse certificate, a total disuse schedule, etc., if such submission is requested by the Fujitsu Group company. 36
Information disclosure (2) What we ask you for today Submission of a Disuse Certificate 37
Disuse certificate Submission of a certificate proving that the substances specified in RoHS Directive are not contained Controlled substances In the light of Green Procurement Direction Lead Mercury Cadmium Hexavalent chromium PBB PBDE Not contained Contained Disuse Certificate Total Disuse Schedule 38
About documents to be submitted Restriction condition for the substances Upper limits(or threshold values) and exceptions regarding the containment of the RoHS Directive specified substances are quoted in the Fujitsu Group Green Procurement Direction (hereinafter referred to as the Direction). Note ; The Direction will change to keep up with the latest version of the EU countries legislation. Target deliverables All products that are delivered from you to Fujitsu and Fujitsu Group companies(see the companies list in table 4 in the Direction). Other Basically, we prefer that you would summarize the answers of each business unit, but if it is difficult you can submit respective answers. In this case, please let us know in advance. 39
About Disuse Certificate If your products to be delivered to Fujitsu group do not contain any of the six hazardous substances, submit a Disuse Certificate How to fill in a Disuse Certificate (1) Name of your company and a responsible person, his/her title and sign must be written. (2) About your contact, please fill in follows; a. Contact person's name b. Contact person's section name c. Contact person's telephone number d. Contact person's e-mail address Other Date: To Fujitsu Limited Regarding Hazardous Substances Specified in the RoHS Directive Disuse Certificate We certify that any products, components, units, or other items (including attachments, packaging materials, and other items procured by our company) to be delivered from our company to Fujitsu Group do not contain any of the six specified hazardous substances included in the hazardous substances specified in the Fujitsu Group Green Procurement Direction (hereinafter referred to as the Direction). 1. Target hazardous substances 2. Future action Rep.No.E-GP03/0047 [Form 1] If the Direction is revised to be stricter to the extent that your deliverables will begin to contain a hazardous substance, please notify us via our contact within two weeks after the Direction is revised. Remarks (1) Lead, (2) Mercury, (3) Cadmium, (4) Hexavalent chromium, (5) PBB, (6) PBDE - If the Direction is revised (regarding standard values and/or exceptions) to be stricter to the extent that products, components, units, or other items we deliver to Fujitsu Group will begin to contain one or more of the six hazardous substances, we shall notify you via your contact within two weeks after the Direction is revised. - If our newly developed products or other items are likely to use one or more of the six hazardous substances, we shall notify you in writing via your contact before we actually use the substance(s). Contact regarding this answer (Please fill in the blanks): Name: Section: Phone (2) E-mail: Company name: (1) Representative name (or other person responsible): (sign) 40
About Total Disuse Schedule If products you deliver to Fujitsu Group contain at least one of the specified hazardous substances, submit a Total Disuse Schedule. How to fill in Total Disuse Schedule (1) Please fill in the followings as same as Disuse Certificate, then make sign. a. Company, responsible person, his/her title b. Your contact (2) Scheduled total disuse time for the specified substances Example: Only lead is contained in a supplier s products, and the supplier plans to totally disuse lead by the end of December 2004. Target substance Scheduled total disuse time Lead By 04/12E Mercury Cadmium Hexavalent chromium PBDE Other When you eliminate all of the six specified substances, submit a Disuse Certificate. PBB Date: To Fujitsu Limited Regarding Hazardous Substances Specified in the RoHS Directive Total Disuse Schedule We notify Fujitsu Group that we shall totally disuse the following hazardous substances specified in the Fujitsu Group Green Procurement Direction in all products, components, units, and other items (including attachments, packaging materials, and other items procured by our company) to be delivered from us to Fujitsu Group by the following times. 1. Target hazardous substances Remarks (1) Lead, (2) Mercury, (3) Cadmium, (4) Hexavalent chromium, (5) PBB, (6) PBDE 2. Scheduled total disuse time Target substance Lead Mercury Cadmium Hexavalent PBB PBDE chromium Scheduled total disuse time The symbol indicates that the substance is already disused. When we eliminate all of the six specified substances, we shall submit a Disuse Certificate. Contact regarding this answer (Please fill in the blanks): Name: Section Name: Phone E-mail: Rep.No.E-GP03/0047 [Form 2] (1) Company name: (2) Representative name (or other person responsible): (1) (sign) 41
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Where to send answers and where to send questions 43