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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, while also working to minimize the environmental impact of its own business activities, including energy conservation at facilities and during transportation, and reducing the use of chemical substances. In addition, NEC strives to promote these efforts based on insights and expectations gained through dialogue and engagement with stakeholders, incorporating them into the implementation of initiatives aligned with its environmental policy. To promote environmental management across the entire Group—including NEC on a non-consolidated basis, affiliated companies, production sites, and research facilities—the Company has established the NEC Environmental Policy, which outlines its action guidelines. NEC ensures that all employees and corporate officers comply with this policy and act with due consideration for the environment. We also require suppliers, contractors, and other stakeholders in our supply chains to act in accordance with relevant guidelines and contractual agreements. Additionally, we recommend that our business partners understand and respect the intent of this policy and consider adopting similar environmental policies within their own organizations, where appropriate.

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

Overview

Important environmental matters 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 the NEC Group'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 the NEC Group 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 Project Management Office (PMO) to promote
collaboration among all companies, including Group companies, and to accelerate commercialization.

  • *
    The Eco Product Promotion Sub-group, the Eco Solution Promotion Sub-group, the NEC Group Energy-saving Discussion Working
    Group, and the Environmental Education Promotion Sub-group.
zoomLarger view
NEC's Environmental Management Promotion Structure (as of April 2025)

Involvement with Industry Associations

To ensure consistency between NEC's own position and that of industry associations, NEC participates in various organizations as a committee member and engages in active discussions.
In discussions, we keep in mind whether the position aligns with NEC's values and whether it follows global initiatives such as the Paris Agreement. If any discrepancies arise, the matter is brought back internally and adjustments are made through the Environmental Management Promotion Committee and other relevant bodies, based on the environmental management system,
to clarify NEC's position. Through this process, NEC aligns its climate change initiatives with the activities of industry
associations.

Major Related Industry Associations
Organization (Secretariat) Committee name Activities
Japan Business Federation
(Keidanren)
Committee on Energy and Resources: Planning
Subcommittee
Committee on Environment and Safety:
Subcommittee on Global Environment / Working
Group on Global Environment Strategy /
Subcommittee on Waste & Recycling /
Subcommittee on Environmental Risk Response
Nature Conservation Council
NEC's Corporate Officer in charge of the Environment
participates as a committee member in the
Committee on Environment and Safety and the
Committee on Energy and Resources, providing
policy proposals for global warming countermeasures
and energy measures utilizing IT.
Japan Electronics and
Information Technology
Industries Association
(JEITA)
Environmental Subcommittee, Environmental
Promotion Committee, Environmental
Management Committee, Sustainable IT
Promotion Committee, Impact Assessment
Committee, Advanced Topics Study Group
This is the primary environmental organization for IT
companies. It covers a wide range of topics including
chemical substances and climate change.
Japan Environmental
Management Association
for Industry, Japan LCA
Forum
LIME3 Utilization Working Group NEC will utilize LIME3 to conduct environmental
impact assessments that include natural capital.
Four electrical and
electronic industry
associations: JEITA, JEMA,
JBMIA, CIAJ
Environmental Strategy Liaison Committee,
Liaison Group of Japanese Electrical and
Electronics Industries for Global Warming
Prevention, Steering Committee, Product
Contribution Expert Committee, etc.
These committees and working groups examine and
guide strategies from a managerial and strategic
perspective to address global issues in the electrical
and electronics industry and make policy proposals
to governments in Japan and abroad.

Policy Engagement

NEC Europe's Brussels office plays a central role in monitoring and responding to environmental trends in the EU, such as climate change, chemical substance management, and the circular economy. In coordination with the NEC head office, it has long been actively involved in the policymaking process for major environmental regulations such as the Waste Electrical and Electronic Equipment (WEEE) Directive, Restriction of Hazardous Substances (RoHS) Directive, REACH Regulation, and Eco-design as a chair or member of related committees in the Japan Business Council in Europe (JBCE) and DIGITALEUROPE. Furthermore, it provides support to the NEC head office in interpreting new regulations such as the EU taxonomy regulation, Corporate Sustainability Reporting Directive (CSRD), and Corporate Sustainability Due Diligence Directive (CSDDD) and assessing their impact on NEC. It also works to ensure Japan's views are reflected in the EU's environmental policy process, promotes understanding of EU laws and requirements through communication with Japanese electronics industry associations, and engages in advocacy (the protection of rights) with EU institutions.
These efforts contribute to the advancement of EU environmental policies and position NEC as a bridge between Japan and the EU through collaborations with the NEC head office and Japanese industry associations. For more details, please see the following web page.

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 2025)
Consolidated subsidiaries
in Japan
Consolidated subsidiaries
outside Japan
Total
23 companies 8 companies 31 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 fiscal 2025, 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, no environmental accidents that were contained within our sites, and one complaint was 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) On June 5, in conjunction with the United Nations' World Environment Day, NEC's executive officer in charge of environmental affairs delivered a video message to all NEC Group employees worldwide. The message highlighted not only our "defensive" initiatives, such as the Environmental Management Policy and being listed on the CDP A List for six consecutive years, but also our "proactive" initiatives that view the environment as a business opportunity. This initiative was designed to deepen all NEC Group employees' understanding of environmental management and to encourage more active engagement in environmental initiatives. 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