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Environmental Policy and Management

Policy

As part of its corporate social responsibility activities, NEC engages in environmental management. NEC seeks to reduce environmental burdens across society by providing environmentally friendly products and services as well as reducing the environmental load of its own business activities, by conserving energy at its facilities and the transportation stage, and reducing the chemical substances it uses. Also, to promote environment-oriented management Group-wide—including NEC on a non-consolidated basis, affiliated companies, production bases, and research facilities—the Company has established the NEC Environmental Policy, which sets out action guidelines. Moreover, we rigorously ensure that all actions of employees and corporate officers comply with this policy. Further, we require all suppliers, contractors, and other stakeholders engaged in our supply chains to behave in a manner consistent with relevant guidelines and agreements while considering the environment.

NEC Environmental Policy
NEC views the operation of business in harmony with the environment as one of its top priority issues and is committed to reducing the environmental impact of the entire global supply chain and contributing to a sustainable society.

  1. We will create social value focused on delivering ICT solutions and services leveraging advanced technologies to contribute to their adaptation, and we will contribute to the reduction of the environmental burden on customers and the global environment and to the mitigation of the impacts of climate change.

  2. We will assess the environmental impact throughout the entire life cycle of ICT solutions and service development with considerations for reducing environmental burden.

  3. We will comply with environmental laws and regulations associated with our business activities, honor agreements with stakeholders, and strive to conserve energy, save resources, and prevent environmental pollution caused by chemical substances and waste along the entire supply chain.

  4. We will prioritize the procurement of environmentally friendly hardware, software, and services.

  5. We will disclose environmental information regarding our business activities, ICT solutions and services to our stakeholders.

  6. We will raise the environmental awareness of each and every one of our employees worldwide and contribute to the conservation of the global environment through the promotion of climate change action, resource circulation, and biodiversity.

  7. We will strive to improve an environmental management system with environmental targets and conduct periodic reviews to realize continual improvement.

Framework

Environmental Management Implementation Framework

Important matters, including climate change, are discussed by either the Executive Committee or the Business Strategy Committee. Discussions are limited to those deemed important based on deliberations by the environmental management committees in each business unit, special sub-groups for each topic, and the Environmental Management Promotion Committee, which comprises managers in charge of the environment in each business unit. Furthermore, issues that may have a particularly significant impact on NEC's businesses are reported to the Board of Directors.

Each business unit has established environmental management committees. In addition, a system has been established for carrying out specific measures by each business unit, its divisions, affiliated companies, and subsidiaries of NEC around the world. By formulating and implementing specific action plans based on the environmental strategy devised by either the Executive Committee or by the Business Strategy Committee, we can implement consistent environmental management throughout NEC under the supervision of the Board of Directors.
For business development activities in which the environment is a new business opportunity, we have established a dedicated team called the Carbon Neutral Business Promotion PMO* to promote collaboration among all companies, including Group companies, and to accelerate commercialization.

  • *
    PMO: Project Management Office
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NEC's Environmental Management Promotion Structure (as of April 2024)

Climate Change Countermeasure Implementation Framework

Within the framework described in Environmental Management implementation Framework, we are also implementing climate change countermeasures.

NEC's environmental policies and goals regarding climate change are discussed and formulated by the Environmental Management Promotion Committee, which is made up of the environmental promotion managers from each business unit. The Corporate Officer in charge of the Environment confirms the council's proposals and reports them to the Business Strategy Committee, an organization that is further up the organizational hierarchy and the one that provides approval at the corporate level. Risks related to climate change are also shared at the Environmental Management Promotion Committee. The Corporate Officer in charge of the Environment confirms those risks that could have a significant impact on businesses and, as necessary, reports to the Risk Control & Compliance Committee in accordance with the risk management process. In particular, climate risks and opportunities that could significantly affect businesses are also reported to the Board of Directors, as necessary. The Board of Directors deliberates on such reports and gives instructions on relevant measures, thereby providing supervision that ensures that NEC advances appropriate climate change countermeasures.

In fiscal 2023, participation in TCP was reported to the Business Strategy Committee and the Board of Directors, and the President approved the revision of the 2030 targets in conjunction with moving the target for net zero emissions up to 2040 from 2050. The new target is now shared by the entire Group through the revision of NEC Eco Action Plan 2025.

In addition, as part of our climate change countermeasures, we are advancing groupwide measures to reduce our in-house CO2 emissions by addressing specific aspects of the issue through three special committees: the Eco Product Promotion Sub-group, the Eco Solution Promotion Sub-group, and the NEC Group Energy-saving Discussion Working Group. By reporting and submitting proposals to the Environmental Management Promotion Committee, these special committees facilitate the groupwide pursuit of energy-saving initiatives. Decisions made at the Environmental Management Promotion Committee are reported and instructed at each business unit and plant committee, and are then communicated to and thoroughly implemented by all employees.

Environmental Management System

Environmental Audit and ISO 14001 Inspection

NEC is promoting the establishment of an ISO 14001-based environmental management system throughout the entire Group. Each Group company in Japan conducts in-house environmental audits while the Environment Management Department conducts environmental management audits. The latter audits are conducted by specialized certified ISO 14001 auditors. Environmental management audits particularly focus on the relationship between each division's operations and environmental strategy, the progress of environmentally friendly product development, environmental impact reduction, risk management, and monitoring of overall environmental activities such as ISO 14001 conformance, including examination of the effectiveness of the internal environmental audits. The results of these audits are verified through ISO 14001 audits undertaken by an external certification body.

ISO 14001 Certification

ISO 14001 Standard for Environmental Management Systems: Certification (As of April 2024)
Consolidated subsidiaries
in Japan
Consolidated subsidiaries
outside Japan
Total
25 companies 7 companies 32 companies

Environmental Risks

Environmental Risk Countermeasures

Recognizing the impact that such environmental risks as climate change and pollution by hazardous substances could have on its businesses, NEC conducts risk reduction and prevention activities through assessment, inspection, and education.

We classify risk countermeasures under three risk categories: plantrelated risks, product-related risks, and sales and maintenance-related risks. In the first category, countermeasures for plant-related risks cover risks related to leaks of hazardous substances, soil contamination, and groundwater contamination caused by natural disasters or equipment failure. To help prevent such environmental accidents, we conduct prior environmental risk assessments as well as education and training. In the second category, countermeasures for product-related risks are focused on risks such as the inclusion in products of substances regulated by the Restriction of Hazardous Substances (RoHS) Directive in the European Union and violations of labeling regulations. To address such risks, we conduct product assessments to ensure strict compliance with guidelines and use in-house systems to implement centralized management of information. As for the third category, countermeasures for sales and maintenance-related risks are aimed at mitigating such risks as violations of the Waste Management and Public Cleansing Act due to inadequate consignment of waste treatment. Our countermeasures include efforts to ensure compliance by issuing guidelines on waste and regularly conducting education for sales department personnel. In conjunction with these efforts, we have established the Environmental Escalation Manual for Emergencies to strengthen our governance of environmental risks.

Our risk management system includes the Risk Control & Compliance Committee. If a risk is identified that may have a significant effect on businesses, the Risk Control & Compliance Committee deliberates on countermeasures. The committee fulfills a supervisory function for specific risk measures by checking the results of activities, problems, and future plans and by issuing directives on where measures should focus. Further, reports are submitted to the Executive Committee and the Board of Directors, as necessary.

Legal Violations, Accidents, and Complaints

Since fiscal 1999, NEC has used its website to disclose any fines or penalties levied on the Company related to the environment. In both fiscal 2022 and fiscal 2023, NEC was not subject to any fines or penalties related to the environment inside or outside the Company There were no accidents that affected the areas beyond the perimeters of our sites; there were four environmental accidents that were contained within our sites; and three complaints were received.

Prevention Activities: Group-wide Dissemination of Information on Near-misses

Since the latent causes of environmental accidents are present in minor accidents, we thoroughly investigate their causes and implement technological countermeasures even for minor incidents at the near-miss level.
NEC's findings are then passed on to affiliated companies in Japan and abroad, and corrective measures are checked. In this way, we advance accident prevention.

Soil

Among the substances covered by the Soil Contamination Countermeasures Act, NEC completely discontinued the use of the VOCs trichloroethylene and tetrachloroethylene in 1998 and 1,1,1-trichloroethane in 1993. Further, as far as possible NEC has continued to conduct independent soil surveys.

We will continue to conduct soil surveys and comply with the Soil Contamination Countermeasures Act, related ordinances, and the directives of the administrative agency with jurisdiction and will continue taking appropriate measures.

Environmental Training

Aiming to realize the Purpose of the NEC Way, we heighten employees' environmental awareness through environmental education that targets specific business divisions and employee ranks.

Items Details Targets
Environmental training for all employees NEC conducts environment-related web-based training (in five languages) for all employees at offices around the world.This training aims to inform all employees of NEC’s environmental policy and goals, and to ensure compliance with environmental laws and regulations.

For completion rates, see 3. Build foundations to promote environmental management
All
employees
Training of
environmental
auditors
NEC conducted auditor training remotely by group on law revisions, audit policy, and other matters. NEC environmental auditors
Environment Month (June) NEC sets a theme every year and holds environmental awareness-raising events based on the theme. Environment Month includes food events co-sponsored with NEC Livex an NEC cafeterias, NEC Living Nature Observation in Abiko, sharing the NEC Group's Environmental Initiatives around the world, and environmental lectures. All
employees
Energy efficiency & conservation Month(February) In Energy efficiency & conservation Month, NEC disseminates the NEC Group’s ICT solutions that contribute to a decarbonized society, NEC Group's targets for expanding the renewable energy, examples of energy-saving practices such as setting up IT equipment and switching to LED lighting that can be done in the office or at home and gives environmental lectures. Through these activities, we strive to raise the awareness of all employees about energy efficiency & conservation and promote the practice of daily energy-saving behavior. All
employees

Environmental Ratings by External Organizations