Materiality

Materiality in the Fujitsu Group

The Fujitsu Group has revised its approach to Materiality. Since specifying Materiality in 2018 under the Basic CSR Policy, we have regularly updated it in line with business environment changes and stakeholder expectations. In 2023 the revision encompassed Materiality in Management, with a greater focus on the perspective of delivering value to customers and society through our business activities. We have conducted annual periodic reviews since; in 2024 some items were updated.
In 2025, in response to sustainability disclosure standards such as CSRD (*1), we again revised Materiality with the aim of aligning with both the new Mid-term Management Vision that starts from FY2026 and adapting to changes in the external environment.
With a medium to long-term perspective to 2035, we evaluated Materiality more specifically in terms of the financial effect of sustainability issues on the company’s performance, cash flow and financial status, and the impact of our business activities on the environment and society. As a result, the configuration of six themes in two categories identified in 2023 remains unchanged, and only the name was revised from “Solving global environmental issues” to “Conservation of the global environment”.
The Fujitsu Group has identified two categories of Materiality issues that must be resolved in order to achieve sustainable growth. The first category is ‘Essential Contribution Areas’ and the second is ‘Fundamentals for achieving sustainable development.’ In the first category of Essential Contributions, we will leverage the development of Uvance and other businesses to provide customers and society with value that contributes to “Planet: Conservation of the global environment”, “Prosperity: Developing a digital society”, and “People: Improving people's well-being”. Furthermore, we will strengthen our technology, management foundation, and human resources to create a foundation for achieving sustainable development as the source of value creation for the Fujitsu Group, while supporting the creation of new business models and spurring innovation.
In the fiscal year 2025 update, on the basis of these categories, we identified three themes under Essential Contribution Areas, and three themes under Foundation for Achieving Sustainable Development.
The materiality assessment process makes use of the results of a Fujitsu Group-wide potential risk assessment to ensure alignment with company-wide risk management. Issues such as climate change, human rights, and security identified through materiality analysis are linked as important sources of risk in potential risk assessments conducted throughout the Fujitsu Group. Some of these are disclosed as "Business Risks."
In addition, Materiality-related initiatives are recommended as a goal-setting item in the “Executive Performance Management” evaluation system for executives at FUJITSU VP-level and above. The non-financial indicators based on Materiality are being progressively linked to the evaluation indicators for executive remuneration (Executive Director bonuses).
Going forward, we will continue to promote Group-wide initiatives related to Materiality, reduce and avoid critical management risks, and maximize business opportunities. In this way, we aim to enhance the corporate value of the Fujitsu Group and contribute to preservation of the global environment, the digital society, and people's well-being.

(*1) : Abbreviation for Corporate Sustainability Reporting Directive

Materiality

Concept diagram of materiality

Materiality Identification Process

The Fujitsu Group identified Materiality with reference to the concept of double materiality of CSRD (ESRS (*2)), whereby the mutual impacts of corporations and the environment and society are assessed.

(*2) : Abbreviation of European Sustainability Reporting Standards

Step 1 Study the environment surrounding Fujitsu

Based on internal and external information, identify the main stakeholders and the scope and granularity of the value chain, and as well assess the current status and potential future business available by adjusting our business model

Step 2 Create a list of sustainability topics

Create a comprehensive long list of various social issues (280 issues) that will flow from the future megatrends anticipated in 2035 and global ESG information disclosure standards, based on the following:
・ SDGs
・ International ESG reporting guidelines (ESRS, GRI Standards, SASB Standards)
・ ESG stock indices evaluation criteria from international ESG rating organizations (FTSE, MSCI and Dow Jones Best-in-Class Indices)
・ External ESG assessments and codes of conduct (CDP, EcoVadis, Responsible Business Alliance (RBA) Code of Conduct)
・ World Economic Forum (WEF) Global Risk Reports, Frontiers “Beyond 2030”, documentation from the ・ World Business Council for Sustainable Development (WBCSD) and the Global Enabling Sustainability Initiative (GeSI)
Identify 38 social issues by integrating similar items and deleting items with minimal business relevance

Step 3 Analysis and assessment of Impact-Risk-Opportunities (IRO)

Conduct desktop research among internal and external sources based on identified social issues, and create a draft IRO evaluation.
Looking ahead to the future in 2035, for each issue identified in the IRO analysis, outline the risks and opportunities arising from those impacts, whilst also analyzing and identifying risks and opportunities that do not stem from those impacts.
Then create a draft materiality matrix that prioritizes social issues in terms of the risks and opportunities those issues present. The draft materiality matrix is created by conducting comprehensive assessments and assigning scores to risks and opportunities from the perspective of both positive and negative Financial Materiality (*3) (financial impact of sustainability issues on Fujitsu’s financial status, performance, cash flow etc. in the short-, medium- and long-term), and positive and negative Impact Materiality (*4) (impact of Fujitsu business activities on society and the environment in the short-, medium- and long-term).
Leverage personal interviews with the main internal and external stakeholders, including internal subject specialists, to gather feedback on the draft assessment from the perspectives of business direction, stronger organizational capabilities, societal trends, and social and environmental impacts. Based on this feedback, adjust the assessment scores and discuss the importance thresholds. Define both financial materiality and impact materiality as important materiality thresholds in materiality identification.
Then classify materiality into 2 categories and 6 areas and arrive at the final concept.

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(*3) : Financial Materiality
・ Risks and opportunities: Calculate assessment values by multiplying impact, based on the financial impact (including reputational risk), by the probability and timing (short-, medium-, or long-term) of occurrence.
(*4) : Impact Materiality
・ Positive and negative impacts: Calculate assessment values by multiplying severity level, based on scale and scope (including the possibility of recovery for negative impacts), by probability and timing (short-, medium-, or long-term) of occurrence. In the case of possible negative impact on human rights, for negative impact only, assessment should prioritize severity over probability of occurrence.

Fujitsu Group and Stakeholder Assessment

Surveys, interviews
Subject	Details
Chairman of the Board, CEO	Conduct interviews to gather opinions on the proposed Materiality matrix and concepts
Corporate Executive Officers	Conduct interviews with 24 Executive Officers responsible for relevant business areas to gather their opinions on the analysis and evaluation of topics and the proposed Materiality matrix
Independent Director and Audit and Supervisory Board Member (External)	Conduct interviews with a total of 10 individuals, 5 External Directors and 5 Auditors, to gather their views on the analysis and evaluation of topics, and the Materiality matrix and concept proposals, from the viewpoint of management and a governance/risk perspective
Labor unions	Conduct interviews, as employee representatives, to gather opinions on the analysis and evaluation of topics, focused on negative impacts and risks
Investors	Conduct interviews with five major shareholder corporate investors, both Japanese and non-Japanese, to gather their opinions on both impact and financial aspects, taking into account their expectations of Fujitsu as a company and external environment trends

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Desktop research
Assessment method	Details
Impact	Quantitatively and qualitatively assess the environmental and social impacts of Fujitsu’s business activities, using internal and external information such as internal information on business activities and TCFD and CDP results, and survey forms used by representative ESG rating organizations and various other external documents and reports.
Risks and opportunities	Quantitatively and qualitatively assess the financial impact of social issues on Fujitsu, using internal and external information such as survey forms used by representative ESG rating agencies and various other external references and reports, as well as information from internal discussions of market size and sales in primarily the Uvance business, and results of potential risk assessment.

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Materiality Matrix

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Step 4 Decision on Materiality

Finalize the materiality and key focus areas through the Sustainability Management Committee.
Review and approve the materiality at the Sustainability Management Committee, report them to the Management Council, and further report them to the Board of Directors via the Management Council.

Step 5 Review

Confirm the ongoing validity of Materiality through an annual review.
Review Materiality as necessary when formulating or revising the Medium-Term Management Plan.
In years when a Materiality review is conducted, that review is positioned as the annual review.

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