NEC's ESG Activities · 7/11/2017 · distribution centers and at the entrance gate, and efficient...

ESG Communication for Investors

July 11, 2017

Senior Vice President Nobuhiro Odake

NEC's ESG Activities"Sustainable Earth" - NEC's Approach to Sustainable Society

1. NEC's Approach to Social Value Creation

2. Progress of Environmental Management

and Future Approach

3. Support for Environmental Activities

Contents

Approach to Social Value Creation

4 © NEC Corporation 2017

Global megatrends


Global Social Issues

• Rapid global increase of flood risks

• Economic cost increase over fivefold

Disaster prediction and

forecast

Risk minimization

measures

Appropriate evacuation

guidance

Disaster

• 2/3 of global population in water stress in 2025

• Approx. 1.8 million children die each year from unclean water

Efficient use of water

Clean water supply

Water infrastructure

building

Water

• Approx. 800 million people are malnourished

• Global food waste approx. 1.3 billion tons/year(1/3 of food produce)

Food productivity

improvement

Fair food distribution

Food loss and waste

reduction

Food

* Source: World Resources Institute (WRI)

* Japan Association for International Collaboration of Agriculture and Forestry (JAICAF) “The State of Food Insecurity in the World 2015”

* The United Nations World Water Development Report and Human Development Report

* 4th Global Environmental Outlook, etc.

* United Nations Food and Agriculture Organization (FAO)Global Food Loses and Food Waste (2011)


Sustainable Development Goals (SDGs)

The 17 Sustainable Development Goals and 169 targets

Many targets are related to climate change


NEC's 7 Social Value Creation Themes for Resolving Social Issues

Sustainable Earth Safer Cities & Public Services

Lifeline Infrastructure

Communication

Industry Eco-System

Work Style

Quality of Life

The SevenThemes for Social

Value Creation


Using NEC's Strength (Cutting-edge AI Technologies) to Achieve Sustainable Society

Cyber Security

SDN/NFV

SDN/NFV

Cyber World

AI

Data collected from global

environment and social infrastructure

Big Data

Cloud

Sensing

Analytics PrescriptionVisualization

Real World

Providing value to resolve social issues

such as achieving SDGs and implementing

measures to addressclimate change

IoT

Social value Reinforcing infrastructure

Preparing disaster plans

Using resources effectively

Supporting industries

(agriculture, etc.)

Preserving forests

Preserving ecosystems...etc.

Food shortages

Water shortages

Increases in CO2 emissions

Energy shortages

Increases in natural disasters...etc.


Cutting-edge AI technologies support social value creation


Provide value to resolve social issues

Pivoting to Environmental Management Focused on Climate Change

Contributions to “mitigation”

Contributions to “adaptation”

Reducing carbon emission from business activities and BCP measures

Provide value as measures to address climate change

Implement measures to address our own impact on climate change (social responsibility)


Innovation to Prevent Global Warming (High-efficiency Data Centers)

High-efficiency data center PUE=1.18*

Air conditioning powerreduced by 40%

* PUE (Power Usage Effectiveness): Index to indicate power efficiency of data centers. The higher the efficiency the closer the value to 1.0.

NEC's unique cooling technology

"Phase change system"

SustainableEarth

LifelineInfrastructure

Winning the "Energy

Conservation Grand Prize“

in 2016Successful Case of Energy

Conservation Chairman Prize of ECCJ

"Power consumption reduction by converting

existing buildings to smart buildings"

(The Energy Conservation Center Japan)

Human sensor

Cloud-based BEMS

Phase change cooling unit

Electric fingerprint analysis

Power-saving buildingCommercial power

consumption reduced by 50%

Server qualified to operate under high temperatures Guaranteed operation in temperatures of 45

to 48°C (Reducing air conditioning power consumption)

(NEC Tamagawa Plant) (NEC Kobe Data Center)

Dry-coil

Phase change cooling

FansP

hase c

han

ge

coolin

g

Server racks(micro modular servers)

Server racks(normal servers)


Contribution of 7 Social Value Creation Themes Towards SDGs

Measures against food loss and waste

Approx. 1.3 billion tons/year of

global food loss that can feed

1 billion hungry people (FAO report)

Production of wasted food is a major

cause of greenhouse gas emission(United Nations "Sustainable Development Goals (SDGs)")

Poverty and agricultural productivity improvement

Hunger and poverty are pressing

issues in Mozambique

Many issues remain in the better

variety, fertilizer, and pesticide

provision program by FAO

Deploying AI/Big Data technologies to improve the accuracy of demand projectionto contribute towards food loss and waste reduction

Sustainable Earth

Industry Eco-System

”e-Voucher” based on Mobile technology and electronic money to contribute towards agricultural productivity and income improvement

IndustryEco-System

Quality of Life


Formulation of an Environmental Management Plan Focused on Climate Change

"NEC Group Environmental Management Action Plan 2020/2030" (Target)

The NEC Group will promote activities from three perspectives

to provide social value through climate change measures.

Announced on July 5, 2016

1. Contribution to

“mitigation” of

climate change

2. Contribution to

“adaptation” to

climate change

3. Reduction of

emissions from

business activities

② Improvement in product energy

efficiency (compared with 2013)

③ Preparing for the impacts of climate

change through the provision of

Solutions for Society

④ Improvement in CO2 emissions basic unit

through higher product energy efficiency

and switch to renewable energy sources

23

million tons

30％

improvement

50

million tons

80％

improvement

Increase contribution through more competitive solutions to problems and through business expansion

18％

improvement

30％

improvement

2020 2030

① Reduction in emissions through the

provision of IT solutions


Changes in Environmental Policy and Long term Target

▌Evolution of Environmental Activities in Response to Social and Businesses Changes

1970s 1980s 1990s 2000s 2010s

SDGs

ESG

Reduce environmental impacts and risks

Reduce CO2 emissions

Reduce product risks

Reduce CO2 emissions of products

Reduce CO2 emissions through IT solutions

Climate change measure by social Solution

Pollution prevention

Environment conservation

Environment control

An environment professionaldepartment is established.

(1970)

Environmental Management Vision 2010

(2003)

Environmental Management Action Plan 2017/2030

(2010)

Environmental Management Action Plan 2020/2030

(2016)

Eco-audits initiated(1973)

"NEC Environmental Charter" established

(1991)

Introduced ISO 14001 (1995)

NEC's originalEnvironmental Label

"Eco Symbol" established (1998)Establishment of

"EnvironmentalImprovement Symbol“

（1981） Social valueCo-creation

Compliance with waste related legislation

Environmental management

The Eco Symbol Star System started (2008)

Environmental Management

Concept

～2050

Course of Action for Climate Change Towards 2050(2017)


CO2

zero emissions

New Target for 2050

0.480.47

0.41

0.35

0.4

0.360.35

0

0.1

0.2

0.3

0.4

0.5

2010 2016 2050

CO2 emission from NEC's commercial activities to “substantially zero" in 2050

Reduction of energy consumption

Increase the use of renewable energy

carbon offset

(Million tons)

Progress of Environmental Management and Future Approach


Medium-term Plan Promotion with the Eco Symbol System*

▌ Promoting activities by including climate changes to the Eco Symbol Star requirements

* NEC's own "self-declared (ISO type II) environmental labeling" for products, software, and services that satisfy environmental consideration standards set by NEC.

Products, software, and services with environmental considerations

* Standard requirements applicable to all products.

Energy saving design, restriction of toxic substances, information disclosure, EMS, etc.

Resource circulation (resource saving, ease of disassembly, long lifetime, etc.)

Mitigation (CO2 emissions reduction by 50% or more)

Adaptation (adaptability to climate change risks)

Resource circulation (bioplastics, new technologies, etc.)

Technical superiority, external awards, etc.

Life cycle consideration Energy saving (consistent to the medium-term plan) Not using brominated flame retardants.

Weight and mass are reduced to 80% or less. Using eco plastic. Qualified for the Eco label.

15 Products

1,097 Products

Eco Symbol Star

Eco Symbol

Eco Products

The eight risks of climate change

Rising sea level Flooding Breakdown ofinfrastructure

Heat waves

Drought Insufficientwater resource

Loss ofmarine ecosystem

Loss ofinland ecosystem







1. Contribution to

“mitigation” of

climate change

2. Contribution to

“adaptation” to

climate change

3. Reduction of

emissions from

business activities









23

million tons

30％

improvement

50

million tons

80％

improvement


18％

improvement

30％

improvement

2020 2030




Contribution to “mitigation” of climate change

① Reduction in emissions through the provision of IT solutions

Total 23million tons

Total 14.35

million tons

Annual 2.88million tons

Total 14 million tons

Annual 2.63 million tons

Both the single year target and accumulated target were not achieved due to the decrease in solution sales.

2020Target

2016Target

2016 Results


Reduction in emissions through the provision of IT solutions

2010 2011 2012 2013 2014 2015 2016 2017

5

10

15

20

25

Million tons

Year0

CO

2em

issi

ons

reduction

2018 2019 2020

4.43

7.41

9.70

2.12

11.71

13.22

263

15.00

23.00

20.40

17.70

Target

14.00


Case Study: Vehicle Guidance System Using Bluetooth Low Energy (BLE)

CO2 emissions reduction by congestion control for roads around large distribution centers and at the entrance gate, and efficient berthing guidance within the center

▌Outside: Notifications of congestion status within the distribution center to drivers‘ smartphones (Helps mitigate congestion in surrounding areas)

▌Entry: Use of smartphones helps make entry more efficient(Eliminates need for gates. Helps mitigate congestion at gates)

▌ Inside: Efficient berthing guidance within the distribution center(Eliminates need for guidance personnel and reduces paper work)

CO2 emission

85%reduction

Congestion

status

Guidance

information

Projected CO2 emissions reduction

6 tons/year

CLIMATE

ACTION







1. Contribution to

“mitigation” of

climate change

2. Contribution to

“adaptation” to

climate change

3. Reduction of

emissions from

business activities









23

million tons

30％

improvement

50

million tons

80％

improvement


18％

improvement

30％

improvement

2020 2030




② Improvement in product energy efficiency

Contribution to “mitigation” of climate change

improvement rate

30％

improvement rate

10％

improvement rate

17％

Energy efficiency has improved significantly due to the increased sales of energy saving product iStorage M Series

2020Target

2016Target

2016 Results

（Compared to 2013）




Improvement in product energy efficiency

2005 2011 2012 2013 2014 2015 2016 2017

20

40

60

80

100%

Year0

CO

2em

issio

ns r

eduction

rate

com

pare

d t

o

pro

ducts

in t

he r

efe

rence y

ear

2018 2019 2020

65% 64%

75%

91%97%

30%

15%

20%

25%

10%

Comparison with products in 2005 Comparison with products in 2013

Target

* The target for 2017 (80%) was exceeded in 2014; therefore, a new target was set by reviewing the reference year after 2016.

Initial target

80%

17%

▌Energy efficiency improved approx. 40 times in 11 years from 2005 to 2016 (average of all NEC products).


(Factory Computer series)Panel computer

T5WA-T5BA

Eco Symbol Star Products in 2016

Seven hardware products were granted Eco Symbol Star status

Mainframe (ACOS series)i-PX9800/S1A4

DLP laser projectorNP-P502HLJD

Storage (iStorage)M310F

Storage (iStorage)M710F

CO₂ emissions

reduction of50% or more.

Next-generationmodel standard

WiMAX2+ Mobile Router

LTE Mobile Router

Broadband Router

CO₂ emissions


CO₂ emissions


CO₂ emissions

reduction ofmax 50%


Case Study: ECO Evolved with iStorage M310F

Unprecedented low power consumption with cutting-edge energy saving technologies

Using the power

supply with high

efficiency power

conversion

CO2 emission

64%reduction

NEC's unique energy saving autonomous control

Monitor the device temperature and

control the speed of the fan

Application of MAID* including unused disks

Application of High-performance SSD and error

avoidance control

Energy saving by remote monitoring and

power supply control

- Scheduled operation control

- Peak electricity control (power capping)

Visualization of power consumption

Projected CO2 emissions reduction

0.7 tons/year

Energy saving operation by autonomous control

Pow

er

consu

mption

(kW

h)

Num

ber

of I/

Os

Power consumption reduction according to the usage

Autonomous control

*MAID (Massive Array of Inactive Disks): Reduce power consumption by enabling power saving mode on infrequently accessed mirrored disks.







1. Contribution to

“mitigation” of

climate change

2. Contribution to

“adaptation” to

climate change

3. Reduction of

emissions from

business activities









23

million tons

30％

improvement

50

million tons

80％

improvement


18％

improvement

30％

improvement

2020 2030




Examples of Eco Symbol Star Products in 2016

Software services that were granted Eco Symbol Star

Records and accumulates knowhow and applies appropriately.

Improves quality and crop yield, and helps to prevent and reduce yield losses and low crop production due to global warming.

Agriculture guidance support system

Using ICT technology to visualize advanced

agricultural techniques

Support for young and new farmers' learning

the techniques

Agricultural technique learning support system

Support for checking

people's safety in the

event of disaster and

assembling employees

Safety confirmation output

from various devices

Emergency communication, people's safety confirmation system

Instructor Producer


Case Study: Joint Study of Disaster Reduction Assessment Method for Coastal Hazards Due to Climate Change

Contributing towards improvement of nature conservation, disaster prevention, and community livelihood through development support for the high efficiency simulation model using the earth simulator

Frequent and powerful typhoons

Coastal erosion

Loss of lives and livelihoodFlood in coastal areas

Central Philippines where typhoons frequently pass have suffered great damage due to high tides and high

waves caused by powerful typhoons in recent years.

→ Requires disaster reduction by high tide measures

Typhoon Haiyan (November 2013) left 10 million victims in Philippines.


Socia

l im

ple

men

tati

on

tech

niq

ues

Optimization for areas and external force

Life cycle cost assessment

Green infrastructure / gray infrastructure

Un

derl

yin

g

tech

nolo

gie

s

Mangrove's plant

characteristics+

effects of global

warming

Mangrove

hydraulic

experiment

Mangrove element

modeling

Core

te

ch

nolo

gie

s

Changes in

typhoon characte-

ristic due to global

warming

High tide and high

wave long-term

assessment model

development

Disaster

reduction model

with mangroves

▌ In collaboration with the Disaster Prevention Research Institute, Kyoto University and

others, developed the disaster reduction and life cycle cost assessment method by the

optimum combination of green (mangrove) and gray (embankment) against typhoons,

high tides, and high waves.

Support “adaptation” for climate change and contribute towards building and maintaining safe and secure community

Case Study: Joint Study of Disaster Reduction Assessment Method for Coastal Hazards Due to Climate Change

Launching research and development of the “Coastal Disaster Simulation System" to examine and assess disaster reduction effects by Green infrastructure

Granted the Environment Research and Technology Development Fund in March 2017.


▌Calculate an amount equivalent to the increase in CO2 emissionsthat will lead to disasters caused by climate change

403 kt/yr

23 kt/yr

100 kt/yr

52 kt/yr

990 kt/yr

354 kt/yr

Disaster prevention communications network (last resort network)

Risk Adaptation solution

Service resource controller 633 kt/yr

Coefficient(per Solution)

Dam monitoring control system

Disaster monitoring(landslide prevention)

Water purification set, reverse osmosis type 2

Business continuity (BC) (crowd detection)

Agriculture ICT solutions

Sea level rise, high tides

Flood damage

Infrastructure breakdown

Food shortages due to droughts

Fiscal 2016 results

Total

4.53Million tons

Preparing for the Impacts of Climate Change

Formula for calculating effect of disaster prevention through adaptation: IT contribution rate x cost of damage x coefficient for increase in damage as CO2 increases in the atmosphere

Per year• Portion of IT costs within total costs• Rate of damage reduced by IT

Calculate from past data







1. Contribution to

“mitigation” of

climate change

2. Contribution to

“adaptation” to

climate change

3. Reduction of

emissions from

business activities









23

million tons

30％

improvement

50

million tons

80％

improvement


18％

improvement

30％

improvement

2020 2030




Reduction of emissions from business activities

④ Improvement in CO2 emissions basic unit through higher product energy efficiency and switch to renewable energy sources

2016: 0.350 Million tons (3% year-on-year reduction) Although energy consumption (oil equivalent kl) was reduced by 3%, the sales base unit worsened due to the decline of sales.

2020Target

2016Target

improvement rate

-18％

improvement rate

-14％

improvement rate

-9.5％

2016 Results





NEC's History of Direct Emissions (Scope 1 and 2)

Scope 1: Standards for calculating and reporting greenhouse gases directly emitted from an organization's facilities or factories Scope 2: Standards for calculating and reporting indirect emissions from an organization through purchased energy

0

0.1

0.2

0.3

0.5

0.4

2010 2011 2012 2013 2014 2016Reference: Electricity conversion coefficient

[0.351] [0.350] [0.476] [0.487] [0.570]

0.48 0.47

0.41

0.35

0.40

(Million tons)

29.2

25.0

23.4

20.5

19.0

Year2020

0.35

(％)

-10

-20

-30

0

-9.5%

-18%（Target)

-7.7%

Reference year

-18.4%

20

25

(Millionℓ)

15

10

30

Energ

y c

onsu

mption

(Oil

equiv

ale

nt

10kl)

17.5

CO

2em

issio

ns

Base

unit im

pro

vem

ent

rate

2015

[0.579]

0.36

17.9

-12.4%

【History of Base unit (Compared to 2012)】

[0.587]

-25%

CO

2em

issio

ns


History of Supply Chain CO2 Emissions (Scope 1, 2, and 3)

Fiscal 2016: 7.76 Million tons (9.65 Million tons in the previous year)

Emissions from procured products and services

Category 1

Scope1

Scope2

95%

Scope373％Category 11

Emissions from other categoriesexcept categories 8, 13, and 14

7.76(Million tons)

1%

4%

9％

13％

Emissions from sold products

0

2

4

6

10

8

2013 2014 2015

(Million tons)

Year

7.56

9.50 9.65

Scope3

9.29Scope3

9.10Scope3

7.21

Scope1,2

0.35Scope1,2

0.40Scope1,2

0.36

Breakdown of fiscal 2016 results

Yearly emission history

2016

7.76

Scope3

7.41

Scope1,2

0.35

Standards for calculating and reporting greenhouse

gases directly emitted from an organization's facilities

or factories

Standards for calculating and reporting indirect

emission from an organization through purchased energy

Standards for calculating and reporting greenhouse

gases emitted from all the organizations in a group

(supply chain) for a particular product or service

Scope 1

Scope 2

Scope 3

Emission by the use of products (category 11) was significantly reduced as the shipment of high-power consumption devices decreased.

(Third partyreview)

(Third party assessment)




Outcome summary of activity effort in 2016

Mitigation

14.0(Million tons)

Supply chainCO2 emissions

7.76(Million tons)

2016 ＝2.4Times

Adaptation

4.53(Million tons)

① Reduction in emissions through

the provision of IT solutions

③ Preparing for the impacts of

climate change through the

provision of Solutions for Society



④ Improvement in CO2 emissions

basic unit through higher product

energy efficiency and switch to

renewable energy sources


Goals for Measures to Address Climate Change (announced in July 2014)

CO2 emissions reductions (mitigation)

Preparation for climate change (adaptation)

+

Social value created by NEC

Impact of NEC’s businesses

Supply chain

CO2 emissions

(Scope 1, 2, 3)

Impact

Contribution

2020(Target)2014

(10.0)(Million tons)

11.81(Million tons)

9.50(Million tons)

Attain a level of CO2 reduction that is five times

the total volume of CO2 emissions from our entire supply

chain in fiscal 2020 by providing Solutions for Society.

2015

Mitigation

14.0(Million tons)

9.65(Million tons)

7.76(Million tons)

2016

14.88(Million tons)

Adaptation4.53

(Million tons)

(50.0)(Million tons)

5times

2.4times1.5

times1.2times


"M

itigatio

n" o

f clim

ate

ch

an

ge

"A

dap

tatio

n" o

f clim

ate

ch

an

ge

II. Achieving sustainable society by collaboration

Course of Action for Climate Change Towards 2050

３. Low carbon society as

the global target(Keeping global average

temperature rise between

1.5 and less than 2 degrees)

Looking ahead to 2050, NEC will endeavor to achieve "Sustainable

Earth“ and implement measures for climate change from both

"Mitigation" and "Adaptation"

２. Strict measures against

climate change risks in

supply chains

１. Aiming for zero CO2

emissions from

supply chains

４. Safe and secure society that is strong against climate change risks

I. Building sustainable management foundation


Long-term Direction and Target for 2050 (See the Press Release)

1. Aiming for zero CO2 emissions from supply chains

Reduce CO2 emission (Scope 1, 2) from NEC's commercial activities

to "effectively zero"

① Reduction of energy consumption with the latest and cutting-edge energy

saving technologies

(Energy saving at data centers with cutting-edge technologies such as phase change

cooling and heat recovery, active deployment of latest information technologies such as

IoT, Big Data, and AI, and development and application of new innovations, etc.)

② Increase the use of renewable energy

(Implementation in NEC branches and NEC-owned buildings,

external installation, linkage to large power storage

systems, etc.)

③ Use of carbon offset

Efforts for reducing CO2 emission (Scope 3) to zero from supply chains

• Improving products' energy efficiency further (category 11)

• CO2 emissions reduction in purchased goods and services (category 1)

2. Strict measures against climate change risks in supply chains

• Joint development and review of BCP measures with suppliers

I. Measures for climate change to build a sustainable management foundation


Long-term Direction and Target for 2050 (See the Press Release)

3. Low carbon society as the global target

• Implement the value chain reform to improve efficiency in production and distribution, increase the

facility operation ratio, and reduce food waste and loss.

Add the value provided by the increased use of renewable energy with large power storage systems.

4. Safe and secure society that is strong against climate change risks

• Promote the solutions for building safe and secure society with considerations to climate change risks

such as stable supply of energy, water, and food, and precautions for health hazards.

II. Achieving sustainable society by collaboration

Disaster prediction and forecast

Risk mitigation measures

Appropriate evacuation guidance

Efficient use of water

Clean water supply

Water infrastructure building

Food productivity improvement

Fair food distribution

Food loss and waste reduction

Glo

bal socia

l is

su

es

Support for Environmental Activities

Measurement Method for Major Management Index

(Solution's contribution to CO2 emissions reduction, product energy efficiency

improvement, and "adaptation")

Implementation Methods for Operation Lines

Environmental Education Overview


Measurement Method for the Solution's Contribution to CO2 Emissions Reduction

▌Assess the changes in the workflow by the ICT solution implementation by CO2

emission (focusing on 7 activities concerning CO2 emission)

Load reduction by ICT implementation Load increase by ICT implementation

(1) People's movement

(4) Move of things

(5) Storage of things

(2) Use of paper

(3) Use of things

•Use of web conferencing systems

(Reduction example)

• Efficiency improvement in logistics•Move reduction byelectronization of things

• Electronic file sharing, electronic books

•Use of network services(Ex. Move from CD-ROM to online music distribution)

• Storage reduction byreduction of paper and things

(6) Use of IT devices(Increase example)

(7) Use of network services

• Increase of power consumptionby more IT devices due to new systems

• Increase of power consumptiondue to increase of network load

(7)

(6)

(5)

(4)

(3)

(2)

(1)

Before implementation After implementation

Calculate reduction effects for a year using an assessment tool and certify the effective items as Eco Symbol

Star products


▌Reduction contributions for Eco Symbol Star products and solutions per business category are calculated separately and the totals are added together.

• Manufacturing

• Distribution, services

• Finance, insurance

• Medical care, welfare

• Public business

• Information communications

• Education, leaning support

• Others

＝2.63 Million tons

Ex. UNIVERGE PF

Measurement Method for the Solution's Contribution to CO2 Emissions Reduction

(Achieved in 2016)

CO2 reduction by Eco Symbol Star

Reduction contributions fromeach solution (kg-CO2/year)

Shipped number (items)× ＝ Total reduction contributions from

each solution (kg-CO2/year)

Total reduction contributions byEco Symbol Star products

(tons-CO2/year)

0.25 Million tons

∑

500 servers

→170 servers after implementation

Solutions for business categories

Average coefficient ofbusiness categories

(kg-CO2/million yen)

Sales by business categories

(million yen)× ＝Contribution by each

business category(tons-CO2/million yen)

Total reduction contributions from individual business operations

(tons-CO2/year)∑

(1.05 to 3.75 kg CO2/million yen)

2.38 Million tons

+

Environmental load assessment Solution assessment

CO

2re

du

cti

on

Sales

Each solutioncoefficient distribution


Calculation Method for Energy Efficiency Improvement Ratio

▌Compare the power consumption of the shipped product and the power

consumption of the model in the reference year (2013)

▌Calculate the power consumption of the given product's model in the reference year

with considerations to the performance improvement ratio

Example for storage: The model in the reference year was 631 W and the model in this year is 665 W

Because the performance (TBPS) has improved 1.46 times,

the power consumption of the model in the reference year is deemed

to be 631 x 1.46 = (921 W)

Therefore, the CO2 reduction ratio is 1 - 665 / 921 = 28%

▌Multiply the annual power consumption of the model

in this year and in the reference year by the number

of shipments, and sum these values for all the products

to calculate the CO2 emissions reduction ratio

▌CO2 emissions reduction ratio (%) =

×100[Σ this year's shipment ] CO2 emission

[Σ reference year's model] CO2 emission1－

Reference year's model This year's model

CO2 emission reduction

Given modelperformance base

Reference yearmodel


Status of Progress on New Climate Change Targets

▌Based on the correlation between changes in CO2 emission increase and damage

costs caused by climate change, calculate the "conversion coefficient"

(CO2 emission / damage costs) ... (1)

▌Calculate the amount of the damage reduced by implementing IT solutions (damage

reduction amount) ... (2)

▌Multiply (1) by (2) to quantify the damage prevented by implementing IT solutions

as "CO2 emission" ... (1) x (2)

Impact increasesas emissionsincrease

Assume that reducing impact will reduce emissions

Set the "conversion coefficient“from the correlation * The method used to

quantitatively assess

social value is currently

being developed jointly

with the Waseda

Environmental Institute.

Impacts

of clim

ate

change

(Flo

ods,

dro

ughts

, dis

ast

ers

, etc

.)

Increase in CO2 emissions


Implementation Methods for Operation Lines

Eco Action Plan 2017(Environmental management target of the NEC Group

for coming 3 years)

Develop into targetsand measures for each organization Result summary

Progress assessment

Environmental Activities of Each Employee

Activity status check

Environmental activity promotion in day-to-day operations

Medium-term issues

Activity target, measure development, and activity promotion

in each BU and group company

NEC Group Environmental Management Action Plan 2020/2030

(Long-term environmental target and direction of the NEC Group)

Climate change measure policies towards 2050

Long-term direction

Environmental trend/Expectations

from stakeholders

Activity management through environmental management audit and

ISO 14001 audit

Progress assessment

<Action and assessment>

<Plan development>


Chapter 1.Solving environmental problems

through business

Chapter 2.Creating environmentally sound

products and services

Chapter 3.Complying with environmental laws

and regulations

Chapter 4.Energy-saving

and power-saving activities

Enhancement of competitiveness

（offense）

Environmental risk

management（defense）

Outside the company(external efforts)

Within the company(internal efforts)

▌ This training will be divided into the perspectives of environmental activities for “enhanced corporation competitiveness,” “responses to environmental risk,” activities directed “outside the company,” and initiatives “inside the company.” Contents introduced will include need-to-know facts and expected actions for those working in the NEC Group.

The outline of environmental education(attendance rate 96.8% in 2016)

Reference Materials

Our evaluation in the main ESG assessment


Our evaluation in the main ESG assessment (As of June 30, 2017)

Assessment Bodies Index / Rating Evaluation (○; selected)

CDPCarbon A－

Water B

ESG

asse

ssm

ent a

gency / M

edia

RobecoSAM RobecoSAM Sustainability Award Bronze Class

FTSE Russell FTSE4Good Index Series ○

Sustainalytics STOXX Global ESG Leaders Index ○

Global Compact 100 Index ○

Channel NewsAsia Sustainability Ranking 10th

MSCI MSCI Global Sustainability Indexes ○

Vigeo EirisEuronext Vigeo World 120 Index ○

Ethibel Pioneer & Excellence ○

Toyo Keizai Inc. CSR Ranking 13th

Morningstar Socially Responsible Investment Index ○

Corporate Knights Global 100 Ranking 86th

Custo

mer

EcoVadis Supplier CSR Rating Gold (the highest rank, for the 3rd

consecutive time since 2014)


Cautionary Statement with Respect to Forward-Looking Statements

This material contains forward-looking statements regarding estimations, forecasts, targets and plans in relation to the results of operations, financial

conditions and other overall management of the NEC Group (the “forward-looking statements”). The forward-looking statements are made based on

information currently available to NEC and certain assumptions considered reasonable as of the date of this material. These determinations and assumptions

are inherently subjective and uncertain. These forward-looking statements are not guarantees of future performance, and actual operating results may differ

substantially due to a number of factors.

The factors that may influence the operating results include, but are not limited to, the following:

• Effects of economic conditions, volatility in the markets generally, and fluctuations in foreign currency exchange and interest rate

• Trends and factors beyond the NEC Group’s control and fluctuations in financial conditions and profits of the NEC Group that are caused by external factors

• Risks arising from acquisitions, business combinations and reorganizations, including the possibility that the expected benefits cannot be realized or thatthe transactions may result in unanticipated adverse consequences

• Developments in the NEC Group’s alliances with strategic partners

• Effects of expanding the NEC Group’s global business

• Risk that the NEC Group may fail to keep pace with rapid technological developments and changes in customer preferences

• Risk that the NEC Group may lose sales due to problems with the production process or due to its failure to adapt to demand fluctuations

• Defects in products and services

• Shortcomings in material procurement and increases in delivery cost

• Acquisition and protection of intellectual property rights necessary for the operation of business

• Risk that intellectual property licenses owned by third parties cannot be obtained and/or are discontinued

• Risk that the NEC Group may be exposed to unfavorable pricing environment due to intensified competition

• Risk that a major customer changes investment targets, reduces capital investment and/or reduces the value of transactions with the NEC Group

• Risk that the NEC Group may be unable to provide or facilitate payment arrangements (such as vendor financing) to its customers on terms acceptable tothem or at all, or risk that the NEC Group’s customers are unable to make payments on time, due to the customers’ financial difficulties or otherwise

• Risk that the NEC Group may experience a substantial loss of, or an inability to attract, talented personnel

• Risk that the NEC Group’s ability to access the commercial paper market or other debt markets are adversely affected due to a downgrade in its creditrating

• Risk that the NEC Group may incur large costs and/or liabilities in relation to internal control, legal proceedings, laws and governmental policies,environmental laws and regulations, tax practice, information management, and human rights and working environment

• Consequences of natural and fire disasters

• Changes in methods, estimates and judgments that the NEC Group uses in applying its accounting policies

• Risk that the NEC Group may incur liabilities and losses in relation to its retirement benefit obligations

The forward-looking statements contained in this material are based on information that NEC possesses as of the date hereof. New risks and uncertainties

come up from time to time, and it is impossible for NEC to predict these events or how they may affect the NEC Group. NEC does not intend to update or

revise any forward-looking statements, whether as a result of new information, future events or otherwise.

NEC's ESG Activities · 7/11/2017 · distribution centers and at the entrance gate, and efficient...

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Transcript of NEC's ESG Activities · 7/11/2017 · distribution centers and at the entrance gate, and efficient...