Information Disclosure based on TNFD
1. Introduction
The Fujitsu Group has established “Conservation of the global environment” as one of its essential contributions (Materiality). Our approach to Materiality is to implement measures against risk, focused on internal initiatives within Fujitsu, and to take up opportunities to solve social issues through business expansion, with Uvance. We are committed to achieving Net-Positive by promoting our approach to Materiality and providing value to our customers and society; we will reduce any negative impacts and expand the positive impacts on Fujitsu businesses and society.
Since nature-related issues vary according to location and business, achieving the Fujitsu Group’s Vision requires measures based on an understanding of each business and each location. Therefore, the LEAP approach concepts were employed in the analysis and evaluation of dependencies and impacts on nature, nature-related risks and opportunities, and priority locations.
2. TNFD-Based Information Disclosure
General requirements, and governance, strategy, risk and impact management, metrics and targets, are shown in the table below.
- Adoption of importance (Materiality)
Importance (materiality) was assessed taking into account the extent of nature-related dependencies and impacts, as well as the degree of importance to the business. - Scope of disclosures
①Upstream value chain (hereinafter, “supply chain”): For the identification of sensitive locations, the analysis covered manufacturing sites (based on publicly available information) associated with major Tier 1 product-related suppliers, representing approximately 80% of manufacturing-procurement expenditure. For the identification of material dependencies and impacts, supply chains associated with 23 major procurement categories were analyzed.
②Direct operations: The analysis covered Fujitsu Limited and consolidated group companies in which Fujitsu owns an equity stake of more than 50%.
However in the identification of priority locations, analysis focused on plants, main data centers, and main development sites and offices (top sites for GHG emissions). To identify important dependencies and impacts, and identify and assess risks and opportunities, the service solutions telecommunications business and the hardware solutions manufacturing business were analyzed.
③Downstream value chain: The downstream value chain was excluded from the scope of analysis because customer industries and product applications vary widely, detailed information is difficult to obtain, and Fujitsu has limited ability to control environmental impacts generated by customers. - Location of nature-related issues
For locations within the above scope, sensitive locations were identified using IBAT etc. Locations with significant dependencies or impacts on nature were identified as Material locations, using degree of nature-dependency by ENCORE assessment, environmental performance data at each business site, and individual research. Locations that were both sensitive locations and material locations were identified as priority locations. - Integration with other sustainability disclosures
Fujitsu Group’s TCFD-based information disclosure (https://global.fujitsu/ja-jp/sustainability/environment) has already been implemented This TNFD disclosure has been prepared as a standalone disclosure. Integration with TCFD-based disclosures will be considered in the future. - Time horizons considered
For identification and assessment of risks and opportunities, short-to-medium term is considered as being up to 2030, and long-term as up to 2050. - Engagement with Indigenous Peoples, Local Communities and affected stakeholders
Any required engagement with impacted stakeholders such as indigenous people and local communities aligns with the Fujitsu Group Human Rights Statement and the Multi-stakeholder Policy.
- Governance A, B：
Same as TCFD-based information disclosure - Governance C：
Our response with respect to human rights has been implemented in accordance with the Fujitsu Group Human Rights Statement. Stakeholder engagement aligns with our Multi-stakeholder Guidelines.
- Strategy A：
[Dependencies and impacts]
Using ENCORE, a general-purpose nature-related analysis tool, nature-related dependencies and impacts in the supply chain and in direct operations were assessed. For supply chain assessments, upstream supply chain structures were modeled using publicly available information on the principal components of major procurement items. It was found that the impact on nature of “emissions of nutrient pollutants to water and soil” might be a highly important impact in the supply chain and in direct operations. In addition, the assessment indicated that the following may also represent significant impacts within the supply chain: disturbance (e.g. noise and light), area of freshwater use, area of seabed use, rainfall pattern regulation services, and water purification services.
[Risks and Opportunities]
Risk and opportunity analyses and materiality assessments were conducted for 2030 and 2050 under: Scenario #1: Nature-positive outcome, and Scenario #3: Business-as-usual outcome. As a result, the following were identified as high-materiality risks: Natural disasters and environmental degradation, Supply chain and procurement, Environmental regulations and compliance, Development of new technologies and services, and risks relating to talent acquisition. Opportunities identified included those for New service offerings; Sustainable supply-chain development; Reputation enhancement through nature conservation activities; and Talent acquisition. - Strategy B：
For future consideration. - Strategy C：
For future consideration. - Strategy D：
[Priority locations]
①Direct operations: Of 39 major sites, 22 were identified as sensitive locations through IBAT and related assessments. Regarding “emissions of nutrient pollutants to water and soil”, a significant impact in the analysis of Dependencies and impacts, environmental performance data including chemical-substance emissions, waste generation, and waste-treatment practices was reviewed. Where emissions occurred, appropriate management and treatment were confirmed. As a result, no material impacts on nature (no material locations) were identified from this factor. Additional investigations of sensitive locations will be carried out in the future to determine material locations from perspectives including ecosystems, water resources, and local land use.
②Supply chain: Of 119 manufacturing sites associated with major Tier 1 suppliers, 105 were identified as sensitive locations through IBAT and related assessments. Additional investigations and supplier engagement will start to identify material locations.
- Risk and impact management A,B,C：
Same as TCFD-based information disclosure
- Metrics and Targets A：
For future consideration. - Metrics and Targets B：
Ecological Footprint has been selected as the metric for comprehensive assessment of overall corporate activity.
Metrics for priority locations will be considered in future. - Metrics and Targets C：
Performance against target will be managed using metrics of comprehensive assessment of overall corporate activity.
FY2030 targets for overall corporate activity: Reduce negative impacts on biodiversity by at least 42% (Base year : FY2020) in the area of company's corporate activities, including the value chain, and promote activities to increase positive impacts on it. FY2025 Results: 36.3% reduction against FY2020 base.
Metrics and targets for dependencies and impacts on priority locations, and metrics and targets for risks and opportunities, will be considered in future.
3. Supplementary Information regarding TNFD-Based Information Disclosure Details
3.1 Scope of disclosure
Target scope
(Supply chain)
In upstream value chains (supply chains) for raw materials and parts procurement, due to our environmentally friendly goods procurement in accordance with the Fujitsu Group Green Procurement Standards and Ecosystem Performance Guidelines for Suppliers, it has been deemed possible to deal with negative impacts and risks to the environment, and so this has been included in the analysis.
However, for the identification of sensitive locations, the analysis covered manufacturing sites associated with major Tier 1 product-related suppliers, representing approximately 80% of manufacturing-procurement expenditure.
To identify important dependencies and impacts, and identify and assess risks and opportunities, the service solutions telecommunications business and the hardware solutions manufacturing business were analyzed.
* As a result of assessment of nature-related dependencies and impacts using ENCORE、 and the importance on the business (revenue), the information and telecommunications business of the Service solutions segment and the manufacturing business of the Hardware solutions segment were identified as priority businesses.
The analysis covered Fujitsu Limited and its Group companies (shareholdings of 50% or more).
However, in the identification of priority locations, analysis focused on plants, main data centers, and main development sites and offices (top sites for GHG emissions). Small sites were excluded as their environmental burden was considered low. Size of site is deemed to correlate broadly with GHG emissions, with analysis focused on sites with GHG emissions of 1,000 tons or more. (Covers more than 90% of total on a GHG emissions base.)
To identify important dependencies and impacts, and identify and assess risks and opportunities, the information and telecommunications business of the Service solutions segment and the manufacturing business of the Hardware solutions segment were analyzed.
* As a result of assessment of nature-related dependencies and impacts using ENCORE、 and the importance on the business (revenue) , the information and telecommunications business of Service solutions segment and the manufacturing business of Hardware solutions segment were identified as priority businesses.
The downstream value chain was excluded from the scope of analysis because customer industries and product applications vary widely, detailed information is difficult to obtain, and Fujitsu has limited ability to control environmental impacts generated by customers.
3.2 Assessment of nature-related dependencies and impacts
(1) Linking business activity into ISIC classifications
Direct operations
All the Fujitsu Group businesses were classified using ISIC classifications, and were analyzed and assessed using ENCORE.
Supply chain
The supply chain was estimated using publicly available information on the principal components of 23 major procurement categories. For each of those items, the businesses at each stage of the supply chain were linked to an ISIC classification, and were analyzed and assessed using ENCORE.
(2) Identification of important dependencies and impacts
The assessment results from ENCORE were visualized as a heat map showing nature-related dependencies and impacts on the supply chain and in direct operations. As a result, emissions of nutrient pollutants to water and soil was identified as a highly important impact for consideration in the supply chain and in direct operations. In addition, the assessment indicated that the following may also represent significant impacts within the supply chain: disturbance (e.g., noise and light), area of freshwater use, area of seabed use, rainfall pattern regulation services, and water purification services.
(3) Assessment of nature-related dependencies and impacts by procurement category
Assessment results from ENCORE: For the 6 assessment stages NA/VL/L/M/H/VH, points 0 to 5 are individually allocated, and then points for the dependencies and impacts are totaled on each procurement category. In calculating totals, a weighting is applied depending on the supply chain tier, since the impact on Fujitsu of a higher tier supplier is considered relatively greater than that of a lower tier supplier.
A plot of the results on the axes of impact and dependency indicates that the dependency and impact scores for product types - servers, PCs, and network equipment - are high, and it was found that suppliers in the final product chain are the high priority candidates for engagement.
* This method does not reflect the actual scale of the environmental impact due to the strong influence of the number of component parts. For example, the reason that the score for semiconductors (CPU/ASIC/FPGA, memory etc.) is low is a result of the relatively small number of different component parts. It does not necessarily mean that the environmental burden of the manufacturing process is small.
3.3 Assessment of nature-related risks and opportunities
(1) Overall summary
Taking into account the nature-related dependencies and impacts identified in the Evaluate phase, our own list of nature-related risks and opportunities was created by aggregating ① Examples of TNFD risks and opportunities, ② Disclosure of benchmark companies, and ③ Previously identified risks and opportunities.
In the identification of risks and opportunities, and materiality assessment, based on the following two hypothetical scenarios, we conducted the analysis for the years 2030 and 2050.
・# 1 Nature-positive outcomes: The world is united in working towards achieving nature-positive outcomes, with strong stakeholder pressure. Nature is recovering through innovation and changes in policies and values.
・#3 Business-as-usual outcomes: There are regional disparities in public sentiment and policies regarding nature positivity, and the impacts of environmental degradation are becoming apparent.
A assessment (three levels of low-medium-high) was conducted on the importance of the listed risks and opportunities, based on two axes of “degree of impact” and “likelihood of occurrence”.
(2) Main Nature-related Risks
In terms of nature-related risks assessed as High, there were five risks related to natural disasters and degradation of the natural environment; six risks related to the supply chain and procurement; two risks related to our response to environmental regulations; two risks related to development of new technologies and services; and one risk related to talent acquisition. Measures for each risk will be considered in future.
(3) Main Nature-related Opportunities
In terms of those nature-related opportunities assessed as High, there were three opportunities related to the provision of new services; one opportunity related to the building of sustainable supply chains; one opportunity related to enhanced reputation through our conservation activities; and one opportunity related to talent acquisition. Additional research, and activity within the company will be considered in future in order to take advantage of these opportunities.
3.4 Identification of priority locations
(1) Overall summary
A location that is both a “Sensitive location” and a “Material location” is defined as a “Priority location”.
Sensitive locations are analyzed and assessed using databases such as IBAT.
Material locations are assessed through checks of collected environmental performance data and additional research, from the perspective of dependencies and impacts on nature.
(2) Identification of sensitive locations
For direct operations, manufacturing sites, main data centers, main development centers and offices were assessed.
For supply chains, the analysis covered manufacturing sites (based on publicly available information) associated with major Tier 1 product-related suppliers, representing approximately 80% of manufacturing-procurement expenditure.
The databases used for identification of sensitive locations were selected as shown in the list below, taking into consideration their use as a standard database and availability of tools.
The score criteria thresholds for the metrics that are the criteria for assessment as a sensitive location are shown in the following table. Even one score of 5 on a metric means assessment as a sensitive location.
As a result of assessment of locations according to the scoring criteria above, 22 of 39 direct operation sites fit the sensitive location criteria (Buffer settings were 5km for offices, 5km for data centers and 20km for plants). The main factors for this are thought to be protected areas and STARt. For the supply chain, 105 of 119 sites fit the sensitive location criteria (Buffer settings were 20km). The main factors for this are thought to be protected areas and STARt.
(3) Identification of material locations and priority locations
In direct operations, for those locations identified through dependency and impact analysis as having significant impact on nature (emissions of nutrient pollutants to water and soil), environmental performance data in the plant ie “Volume of chemical emissions”, “Volume of waste emissions”, and their treatment status, were checked by linking location information and Evaluate assessment results. Where emissions occurred, appropriate management and treatment were confirmed. As a result, no material impacts on nature (no material locations) were identified from this factor. In terms of other factors, additional investigations of sensitive locations will be carried out in the future to identify material locations from perspectives including ecosystems, water resources, and local land use.
For the supply chain, additional investigations and supplier engagement will start to identify material locations.
3.5 Metrics and Targets
Summary
Dependencies and Impacts Metrics: Fujitsu has established a Comprehensive assessment of all corporate activity which provides a view of initiatives that are highly effective in reducing the negative impact on biodiversity. In order to handle regionality, future consideration will be also given to metrics for priority locations after priority locations have been identified.
Risks and Opportunities Metrics: Future consideration will be given to metrics for each risk and opportunity category assessed as having “high” importance. The data collection and calculation logic for “Potential metrics” are difficult, so “Applicable metrics” that align with the activities will be set as process metrics (*1). Based on this, we plan to consider establishing “potential indicators” while continuing to refine the details of risks and opportunities and examining the calculation logic and data collection methods.
- (Note 1) Process metric: Metric that measures whether the way a task or piece of work is being conducted (the process) is appropriate.
Comprehensive assessment of overall corporate activity
(1) Alignment with the Kunming-Montreal Global Biodiversity Framework (GBF)
The Fujitsu Group’s vision for 2050 is to “Create a world in harmony with nature, where ‘nature and biodiversity’, which are fundamental to a sustainable society, are fully restored through digital technology”. This aligns with the GBF’s global biodiversity target for 2050, “A World in harmony with nature”.
Further, our 2030 Target is to “Reduce negative impacts on biodiversity by at least 42% (Base year: FY2020) in the area of company's corporate activities, including the value chain, and also promote activities to increase positive impacts on biodiversity”. This aligns with 2030 International Target 15 of the GBF. Negative impacts are assessed using Ecological Footprint.
(2) Validity of metric (Ecological Footprint)
The Ecological Footprint (EF) is set as a Goal B (Prosper with Nature) Complementary indicator in the monitoring framework adopted by COP16 in 2025. It is highly aligned with GBF.
The Ecological Footprint has also been proposed as a candidate for Target15’s indicator by SBSTTA-24 (Twenty-fourth meeting of the Subsidiary Body on Scientific, Technical and Technological Advice of the Convention on Biological Diversity), so we think it is recognized as an indicator for scientific measurement of impact on biodiversity. It is appropriate as a comprehensive evaluation metric as it can assess various types of impacts on biodiversity.
On the other hand, because important nature-related issues vary according to location, for priority locations in the Fujitsu Group, after identifying priority areas, we plan to consider whether monitoring with an additional metric is required according to the status of the business activity and ecosystems at the said location, taking into account the results of the LEAP analysis explained in Strategy.
(3) Assessment results and performance using the Ecological Footprint (EF)
The results of our EF assessment of the Group's corporate activities show that emissions of CO₂ from the Group and its supply chain activities together account for 92% of the negative-impact factors. Water resource utilization accounts for the remaining 8%, but we found that this was mainly attributable to energy use. We established that emissions of CO₂ and energy use together account for 99% of the negative-impact factors in Fujitsu Group. This means that activities aimed at reducing GHG emissions, such as energy conservation and the introduction of renewables, can also reduce the Ecological Footprint. In short, this demonstrates that the climate change measures are proving effective in reducing negative impacts on biodiversity.
