Fujitsu : Sustainability Management

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Sustainability

Management

The Fujitsu Group's Purpose includes a pledge to "make the world more sustain- able." To realize this goal, the Fujitsu Group is advancing initiatives that address priority issues identified under the Global Responsible Business (GRB) platform.

Based on the GRB platform, we will practice sustainability-focused management on a global scale. Moreover, each of the priority issues aligns with the Sustainable Development Goals (SDGs) established by the United Nations.

Through this platform, we will not only help achieve the SDGs but also set our sights beyond them as we reinforce and accelerate our initiatives to tackle issues facing both business and society at large.

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Message from the Chief Sustainability Officer (CSO)

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Message from the Chief Sustainability Officer (CSO)

Guided by the Fujitsu Way, we are aiming to promote transformation that encompasses the sustainability of business and society, while building relationships based on genuine trust with our stakeholders.

Driving Transformation to Encourage

New Value Creation

COVID-19 has demonstrated to us once again that we are one global society, posing an equal threat to people throughout the world. At the same time, competition has emerged among countries trying to secure medical supplies and vaccines for their people, casting divisions in society into sharp relief and underlining persistent inequities for communities unable to access the same opportunities for treatment and economic recovery. Cooperation and competition are vying with one another around the world, and against this backdrop, I was appointed as CSO of the Fujitsu Group in April 2021. I believe my mission is to foster understanding within the Group regarding these problems facing global society and to drive our transformation to encourage the creation of new value for all, as well as to externally communicate the Group's efforts to solve social issues.

Revision of the Fujitsu Way Aimed at Moving to a New Stage

The Group first formulated the Fujitsu Way in 2002. Since then, we have steadily expanded our sustainability initiatives, which can also be described as the practical implementation of the Fujitsu Way, earning a certain amount of recognition from external groups and evaluating institutions. However, our activities have been driven mainly by certain, mainly corpo- rate, divisions, and we must acknowledge that not all Group employees have a full sense of their own role in our efforts toward sustainability management.

The context for the 2020 revision of the Fujitsu Way is that of an accelerating global movement to create a new capitalism designed to overcome the challenges of climate change, social division and other social issues. In this environment, we were determined to take the Group's sustainability management efforts to the next stage. To ensure that the Group will

Yumiko Kajiwara

CSO

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continue to be trusted by society and have an essential part to play in the future, we felt that each Group employee needed to consider the value that the Fujitsu Group provides to society.

The revised Fujitsu Way is centered on Our Purpose, which sets out why Fujitsu exists in society. It sets out the milestones that the Group will aim to achieve, looking ahead to the society of the future and backcasting to clarify the role that the Group should play as a technology company toward realizing it. We will also look to the past, digging down into our DNA to draw inspiration from our 86-year history since our founding.

ownership of Our Purpose, we introduced a dialogue program titled "Purpose Carving®" for putting the individual's own purpose into words as an exercise for helping each individual employee explore their own purpose and give it shape. We also create opportunities for employees to reflect on the value that their work brings to society.

Through these actions, sustainability initiatives within the Group are gradually being stepped up. As the president continuously communicates his thinking about the Fujitsu Way and demonstrates a strong commitment to purpose-driven management, corresponding movements are emerging among employees, and I am encouraged by those responses.

issue, we aim to demonstrate quantitatively to our customers and other external stakeholders the changes that we have made toward creating value in a way that is unique to Fujitsu.

The seven priority issues are mutually interlinked and exert a positive influence on each other, such as wellbeing and health and safety, or supply chain and compliance. By working toward set targets, the results should become evident in the trust that the Group receives from stakeholders, particularly customers, and in the trust that the Company receives from individual Group employees. Based on this idea, the Group has established non-financial indicators as customer Net Promoter ScoreSM (NPS®) and employee engagement. We are monitoring the progress of sustainability management and changes toward the realization of Our Purpose

Internal Promotion of Our Purpose and

Sharing of Values

To help employees understand Our Purpose and engage in business with a focus on the sustainability of society, they must share the values that form the principles for their conduct. Our Values are "Aspiration," "Trust," and "Empathy," and for each of these three values, we have presented four conduct guide- lines. These have been made into an explanatory document that has been translated into 19 languages to promote them internally. Furthermore, the heads of our internal divisions and Group subsidiaries are all responsible for promoting the Fujitsu Way, and we hold regular meetings for reporting on and sharing the status of implementation of the Fujitsu Way. In addition, to encourage employees to understand and take

Promotion of GRB and Establishment of

Non-Financial Indicators

We have been promoting Global Responsible Business (GRB) as a platform for implementing the Fujitsu Way. GRB is a platform comprising universal issues that need to be addressed in promoting sustainable management while upholding our responsibility as a technology company. We have established seven priority issues.

Through our efforts to promote GRB, we aim to cultivate a Groupwide mindset and organizational culture that can resolve sustainability-related issues for society. This is the reason for incorporating GRB-related items in our evaluation system for the executive team. At the same time, by disclosing our progress on the KPIs that we have set for each priority

through such management.

Connecting Corporate Value and Sustainability

The sustainable increase of the Group's corporate value depends heavily upon the sustainability of our global society, as well as on building relationships of trust with all stakehold- ers. By incorporating sustainability perspectives in our business as a matter of course, we strengthen the competitiveness of our services, and enhance the value we provide, leading to improvements in customer evaluation and employee engage- ment. As the CSO, I will drive the Group's transformation with a view to establishing this kind of interconnectedness.

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Overview of Our Sustainability Management

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Overview of Our Sustainability Management

Until now, the Fujitsu Group has earned society's trust by delivering products and services responsibly. At present, however, given the unpredictability of day-to-day life and business activities due to an unprecedented crisis, we must redouble ef forts to meet society's expectations. Accordingly, under the guidance of our leadership, we will step up sustainability-focused business management and make significant advances in directions that benefit society.

For details on "Sustainability Management in the Fujitsu Group," please visit the following website:

https://www.fujitsu.com/global/about/csr/vision/policy/

The Fujitsu Group's Sustainability Management

Basic Approach

In contributing proactively to the transformation of society amid the current uncertainty and volatility, we have to conduct business activities as a member of international society based on the new Fujitsu Way, which clarifies Our Purpose, or reason for being. It is particularly important that we take into consideration environmental, social, and economic viewpoints when addressing issues, thereby formulating initiatives that have beneficial impacts on society. To this end, we revised our

reports findings to the Management Council and the Board of Directors. The committee is chaired by the CEO and comprises executives whom the chairperson appoints with a view to furthering sustainability management. As of October 2021, the committee had 17 members, including the chairperson.

Guided by the Sustainability Management Committee while adhering to the overarching Global Responsible Business (GRB) platform of sustainability aspirations, we have identified seven

priority issues as shown in the figure below. Setting our sights on key performance indicators for each of these issues, we are advancing initiatives across each region and division globally. The leaders of units and Group companies are responsible for promoting the Fujitsu Way internally. Therefore, these leaders will establish missions for their organizations based on the Fujitsu Way and the GRB platform and review the progress of initiatives aimed at accomplishing the missions.

management targets by incorporating new non-financial indicators alongside existing financial indicators in fiscal 2020. Through long-term, stable contribution to society and customers financially and non-financially, the Fujitsu Group will achieve renewed growth.

Promotional Systems and Framework

In April 2020, the Fujitsu Group established the Sustainability Management Committee, tasked with determining how a responsible global company should conduct business man- agement. Specifically, the committee is focused on realizing long-term growth by taking into consideration environmental, social, and economic impacts and by creating value for all of the Group's stakeholders.

Convening every six months, the committee checks progress toward non-financial targets, deliberates on new activities, and

Sustainability Management		Board of Directors
Promotional Framework
			Management Council
		Sustainability Management Committee
	(Chairperson: CEO; Vice Chairperson: COO; Head of Office: Head of Sustainability Unit)
		Fujitsu Way (Our Purpose, Our Values, Code of Conduct)
		Global Responsible Business
Human Rights,					Health and
Diversity &	Wellbeing	Environment	Compliance	Supply Chain	Community
Safety
Inclusion

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Overview of Our Sustainability Management

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Management Indicators and Global Responsible Business (GRB)

Human Rights,

Diversity &

Inclusion

Wellbeing

Community

Non-Financial

Indicators

Customer Employee

NPS®Engagement

Environment	Health and
Safety

Compliance

Supply Chain

SDG Initiatives

Our Purpose is to make the world more sustainable by building trust in society through innovation. This statement represents an internal and external pledge to help realize the Sustainable Development Goals (SDGs).

We believe the SDGs essentially define a system transformation that must be achieved by 2030 to allow the world's population, which is expected to exceed 9 billion-plus inhabitants in 2050, to live a good life within the planetary boundaries. The issues highlighted in the SDGs include environmental, social, and economic elements. One key to solving these inherent problems is digital transformation (DX), which can be applied on a scale that encompasses all aspects of society. Fujitsu is transforming itself to a sustainable management model via its GRB platform and is also working to resolve societal challenges through its business operations.

As a DX partner for our customers, we are promoting ecosystem-style initiatives that connect data and services across industry sectors. We will take a multifaceted approach to societal challenges by means of co-creation, aiming to create an impact by achieving larger-scale solutions with a wide range of stakeholders, and to maximize that impact.

By driving sustainability initiatives, the GRB platform gives concrete form to the Fujitsu Way. Ever mindful that their corporate group is a member of society, all Group employees will not merely seek profits but simultaneously work to reduce the negative impact of business activities on sustainability while maximizing their positive benefits.

By promoting the GRB platform, our initiatives toward the non-financial sector will ultimately benefit our business and

financial performance in the long term. Accordingly, the Sustainability Management Committee will regularly check the progress toward achievement of the GRB platform, and the committee's conclusions will be released through reviews of the Group's Management Direction and various media.

For details on the non-financial indicators, please see

page 35, "Non-Financial Indicators."

For details on SDG initiatives, please visit the following website:

https://www.fujitsu.com/global/about/csr/sdgs/