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(1)

Environmental Report

(2)

Editorial policy

NEC Networks & System Integration Corporation celebrated the 60th anniversary of its establishment last year, and implemented various new activities on that occasion.

We installed a solar energy generation system at the MSC Center Building, and introduced renewable energy to the network Total Operation Center (nTOC). We also installed a Green Remote Observation System that uses solar and wind energy at our Rice Paddy Cultivation Project, a biodiversity conservation project, which allows us to remotely operate an ultra-sensitive camera from our head office to monitor the growth of rice in real time.

In this way, we are integrating in a suitable manner our company's environmental and energy-saving solutions to make them contribute to our environmental activities.

This report describes our approach to environmental conservation and the activities we are engaged in, focusing specifically on our environmental impact reduction activities in fiscal 2013, which were carried out in accordance with our action plan "Achieving Corporate Management That Contributes to the Environment - Contributing to the Environment by Using IT and Networks."

We would appreciate if you could read this report and send us any opinions and comments you have about our environmental approach or activities.

◆ Period of reporting: April 1, 2013, to March 31, 2014

◆ Scope of reporting: Head office, six plants and four branch offices in the capital region, and 13 branch offices and 31 business offices ◆ Link to the environmental activities page on our website: http://www.nesic.co.jp/csr/environment.html

◆ Contact: (e-mail)[email protected]

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Corporate M

Achieving C MManagement tributes to th

That Contr hhe Environment e from the Pr

(Message esident) orporate Socia

CSR (Co aal Responsibility) rate Profile

Corpor

g to Be a Compa

Aiming aany in Harmony he Environment

with th

ures Taken to Co

Measu oonserve lobal Environme

the Gl nt ties That Contrib

Activit bbute to vironment and S

the Env SSociety

●Ecosysstem and biodiversity conservation activities ●Environmnmental and social contribution activities

ental Manag

Environme ggement Systems t Assessm

Independent mment

(3)

NEC Networks & System Integration Corporation, which celebrated the 60th anniversary of its establishment last

year, has set as its corporate message “Re-designing your communication” with the aim of increasing the

corporate value of our customers and contributing to the realization of an affluent society.

Further, with NEC Networks & System Integration Corporation’s basic principle for environmental policy of “as a

system integrator for the information society, NEC Networks & System Integration Corporation contributes to the

realization of an affluent society while aiming to be a company in harmony with nature where all persons working

at the Company participate in earth-friendly business activities”, we are actively promoting thorough compliance

with environmental standards and regulations and reduction of environmental impact by operating an

environmental management system based on the ISO 14001 standards. This fiscal year, we will further expand

the scope of our activities under a new management system to include group companies, with the aim to achieve

NEC Networks & System Integration Group certification.

To maximize the results of our energy-saving, resource-saving (paperless), and space-saving activities, we have

introduced a variety of measures at the head office and in our branch offices based on our own office innovation

concept, “EmpoweredOffice”, leading to significantly reduced environmental impact. We have also introduced

our “EmpoweredOffice” concept to customers’ offices, and continue to provide solar energy generation systems,

accumulator facilities, and other environmental and energy-saving solutions to our customers to help them

drastically cut costs and conserve energy.

All of these activities are helping us build up experience and a solid track record in providing environmental and

energy-saving solutions to reduce CO2 emissions and promote the transition to a low-carbon society. Last year,

the reduction of total CO2 emissions thus achieved exceeded the CO2 emissions of our own business activities.

We will continue to work toward reducing CO2 emissions as a company that is fundamentally committed to

contributing to society.

Moreover, because we understand that working in harmony with the natural environment, conserving resources,

and preserving ecosystems must form an essential part of all economic and social activities to ensure a

sustainable societ y, we also focus on activities to safeguard ecosystems and sustain

biodiversity, as well as social contribution activities that protect the environment.

In terms of sustaining biodiversity, under the Rice Paddy Cultivation Project, we recultivate

and maintain fallow rice fields in Higashitanaka, Ishioka-shi, in Ibaraki Prefecture, in order to

bring back various living species and restore the ecosystem. Furthermore, at our local offices,

we promote activities to clean up beaches, river beds, and around buildings, and have been

encouraging our new recruits to participate in volunteer activities such as removing rubble,

mowing grass, and removing gravel to recover small rivers, to restore the natural environment

and improve the living conditions of residents in Minamisanriku-cho, Motoyoshi-gun in Miyagi

Prefecture, an area badly affected by the Great East Japan Earthquake.

These activities create a base from which we will continue launching activities to

preserve the environment, allowing us to forge a path as a trusted network system

integrator known for contributing to people, society, and the earth.

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Achieving Corporate Management

That Contributes to the Environment

President

NEC Networks & System Integration Corporation

(4)

NEC Networks & System Integration Corporation is a system integrator whose mission is to develop new communications systems and mechanisms. B y blending our accumulated technologies and experience in networkswith our IT know-how w e a r e a b l e t o p r o v i d e a w i d e r a n g e o f s e r v i c e s f o r communications systems, from planning and design to system integration, installation, and even outsourcing services.

Base d o n ou r co r p o rate messag e of "Re-desig ning you r communication", we aim to enhance communication between p e ople th rou g h ou r b usiness acti v ities by stre ng the ning connections, bonds, and commitment between people, within societies, and towards the earth itself. In addition to our regular business activities, we are engaged in activities to conserve the earth's environment so that we can maintain and enhance our connection to ear th. We also carr y out CS activities to build

relationships of trust with and reinforce our connection to our customers, and we make every effort to maintain and develop our connection to local communities by engaging in a range of local contribution activities.

These connections rely largely on people and organizations, and their commitment to achieving compliance, safety and security. To develop and provide high-quality and secure systems and ser vices, we carr y out activities focused on compliance and security, employ people from diverse backgrounds to whom we provide regular training and education, and work hard to create a friendly working environment.

All of our corporate activities aim to resolve the issues facing society as well as promote sustainable development throughout the world.

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CSR policy

Communication with others

Main themes of CSR

A s a n e t w o r k s y s t e m i n t e g r a t o r, w e b l e n d o u r accumulated network technologies and experience with our IT know-how to provide systems that enable many different types of communication. With these systems, we can enrich communication and enhance connections between people, with society and with theearth itself.

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CSR (Corporate Social Responsibility)

Connections with local communities

We make ever y effor t to fulfill our responsibilities as a good corporate citizen by meeting the needs of society, such as by providing support for disaster-stricken regions and engaging in international cooperation, while at the same time using communication with local communities to carry out activities that contribute to each specific area.

Connections with the earth

We provide systems and ser vices that contribute to reducing CO2 emissions and energy consumption. At the

same time, we are also engaged in activities to reduce our own environmental impact, use resources more effectively, and maintain biodiversity, which will lead to a reduction in the environmental impact of society as a whole and to better environmental conservation across the globe.

Enhancing compliance and

ensuring security, peace, and safety

We deliver high-qualit y systems a nd ser v ices that c u s to m e r s c a n u s e w i t h c o n f i d e n c e b y e n s u r i n g information security, prioritizing safety, and continuously e n h a n c i n g o u r m e a s u r e s t o a c h i e v e t h o r o u g h compliance.

Cultivating diverse human resources and

creating a friendly working environment

We respect all basic human rights in all our corporate activities, recruit and develop human resources with various individual characteristics, and create a friendly wor k ing environment that allows our employees to maximize their skills and abilities.

Connections with customers

(5)

We have established a Management Quality Enhancement Committee to enhance corporate value through activities based around ISO 26000.

NEC Networks & System Integration Corporation prioritizes communication with our stakeholders and makes it a cornerstone of our corporate activities.

CSR promotion structure

Stakeholder engagement

Executive President

Management Quality Enhancement Committee

Organizing Office ● CSR Promotion Division● Accounting Division

Sales

Division Division in charge

Primary themes for ISO 26000

Business

Division

Affiliated

Companies

Cooperation between division in charge and

other divisions

Corporate governance

Human rights

Labor practices

Environment

Fair business practices

Consumer affairs

Participating in and developing communities

CSR primary themes Stakeholders

Stakeholder engagement

Communication between people

Connection with the earth

Connection with customers

Connection with local communities

Strengthening compliance and ensuring safety and security

Developing diverse human resources and creating a friendly working environment

Stockholders/ Investors

Customers

Local communities

Clients

Students

NPOs/NGOs

Public servants

Employees

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Opinion

Disclose/Explain information

Select task

Evaluate result

Improve Execute plan

P

lan

C

heck

D

o

A

ct

2 CSR (Corporate Social Responsibility)

CSR Promotion Division

Planning Division

General Affair Division

Legal Division

Human Resource Division

Accounting Division

Management System Section

Material Procurement Section

(6)

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Corporate Profile

Providing ser vices related to information and communication technolog y ( ICT ) systems centered on net wor ks, such as planning, consulting, and design, and providing maintenance, operation, monitoring, and outsourcing services that are available 24/7 from more than 400 service offices nationwide.

Corporate profile

Consolidated financial data

Corporate name

Established Capital Head office Corporate website

N E C N e t w o r k s & S y s t e m I n t e g r a t i o n Corporation

December 1, 1953

13.1 billion yen (as of March 31, 2014) 2-6-1 Koraku, Bunkyo-ku, Tokyo http://www.nesic.co.jp/english/index.html

Corporate history

November 1953 December 1980 December 1983 July 1990 September 1992 July 1993 July 1999 October 2005 April 2006 April 2007 July 2007 July 2007 April 2008 April 2008 November 2008 October 2010 December 2010 October 2011 April 2013 June 2013 October 2013

Establishment of Nippon Electric Installation Company

Company name changed to “NEC System Integration & Construction, Ltd.”

Listing on Second Section of the Tokyo Stock Exchange

Opening of Isehara Technical Center in Isehara Cit y, Kanagawa Prefecture, as a technical training and research facility

Transfer of some shares to First Section of the Tok yo Stock Exchange

Relocation of head office to Shinagawa-ku, Tokyo

Acquisition of ISO 14001 certification

*Examination organization: Japan Audit and Certification Organization for Environment and Quality (JACO)

Company name changed to “NEC Networks & System Integration Corporation”

Addition of NEC Telenet wor x, Ltd. as a consolidated subsidiary

Merger with NEC Telenetworx, Ltd.

ISO 14001 certification scope changed, integration with ISO certification of NEC Telenetworx, Ltd.

Commercialization of total office solution “EmpoweredOffice”

Addition of Nichiwa Co., Ltd. (Kobe city, Hyogo prefecture) as a consolidated subsidiary

Opening of Network Total Operation Center in Tokyo

Opening of Parts Delivery Operation Center in Tokyo

Relocation of head office to Bunkyo-ku, Tokyo

Addition of DAIICHI AD SYSTEM CO., LTD. (currently, D - C u b i c C o r p o r a t i o n ) ( S h i b u y a - k u , To k y o ) a s a consolidated subsidiary

Industr y classification of the company's shares on the Tokyo Stock Exchange changed

(from “Construction” to “Information and Communication”)

Integration of base station business of NEC Mobiling, Ltd. (currently, MX Mobiling Co., Ltd.)

Addition of Q& A Corporation (Shibuya-ku, Tok yo) as a consolidated subsidiary

A d d i t i o n o f N E C M a g n u s C o m m u n i c a t i o n s , L t d . (Minato-ku, Tokyo) as a consolidated subsidiary

Our business

Providing total support corresponding to the management

cycle of customers

Providing total support corresponding to the management

cycle of customers

Pro Pro Pro Pro Pro Pro Pro Pro Pro Pro Pro Pro Pr Pro Pro Pr Pro Pro Pro Pro Pro Pro Pro Pro Pro

Providvividvidvidvidvidvvidvidvidvidvidvidvidvidvidvidvidvidvidvidvidvididingingingingingingingingingingingingingingingingingingngngngngngngngngngngg to to to to to to to to to t to to to to to to totototototototototaltaltaltaltaltaltaltalt ltaltaltaltaltaltaltaltaltaltaltaltaltaltaltal su su su su su su su su su su susussusususususususuppppppppppppppppppppppoppoppoppoppoppoppoppoppoppoppoppoppopppppppportrtrtrtrtrtrtrtrtrtrtrtrtrtrtrtrtrtrtrtrtrtrt

Providing total support c cor c co cor cor cor cor cor cor co cor cor cor cor cor

corororresresresresresresresresresresresresresreseesesponpppppppppppppponpoponponponponponpoponponponponponponpondindindindidindinding tdindindindindindindididindididdidididididdidindindindindinding tg tg tg tg tg tg tg tg tg tg tg tg tg tg tg tg tg tg tg tg tg tg tg tg tg to to to to to to to the o to to to to to to to to to o to to to o to to to to to to to hehehe hehehehehehe he he he hhe he hhe he he he hhe hhhhhe hhe e manmanagemanmanmanmanmanmanmanmanmamanmm ageageageageageageageagageageageagageageageggggggggggggg menmenmenmenmenmenmenmenmenmenmenmenmenmenttttttttttttttttttt corresponding to the management

y cyc cyc cyc cyc cyc cyc cyc cyc cyc cyc cyc cyc cyc cyc cycyc cycyc

cycyyyyyyyyle lelele lelelelelelele le le le le le le e e ee e e e e e of ofofofofof ofofof ofof of ofofof of of of of of of of of of of of cuscustomcuscuscuscuscuscuscuscuscuscuscuscuscuscuscuscuscususustomtomtomtomtomtomtomtomtomtomtomtomtomtomtomtomtomttomtomtomomerserserserserserserserse sersersersersersrss cycle of customers

Providing total support corresponding to the management

cycle of customers

(Millions of yen)

2010 March 2011 March 2012 March 2013 March 2014 March 2010 March 2011 March 2012 March 2013 March 2014 March 2010 March 2011 March 2012 March 2013 March 2014 March 2010 March 2011 March 2012 March 2013 March 2014 March (People) 21 7, 72 7 21 7, 94 8 20 4, 65 8 23 5,7 16 27 0, 32 6 5, 64 4 4, 66 0 4,4 74 7, 246 8,25

7 225, 94 3 19 6, 62 0 19 8, 83 8 18 3, 41 1 21 0, 86 3 220 ,56 5 5, 30 5 5, 03 7 4,4 81 7,0 58 7, 424 1,000 0 2,000 3,000 4,000 5,000 8,000 6,000 7,000 50,000 0 100,000 150,000 200,000 250,000 300,000 1,000 0 2,000 3,000 4,000 5,000 50,000 0 100,000 150,000 200,000 250,000 300,000

Consolidated management index Non-consolidated management index

5,998 5,939 5,936 6,024

7,164 4,282 4,344 4,393 4,530 4,631

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 9,000 8,000 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 Sales Number of employees

(Millions of yen) Net income

(Millions of yen) (People) Sales Number of employees

(Millions of yen) Net income Enterprises Support service System integration Consulting Telecommunications carriers

(7)

Solar energy generation system in MSC Center Building

DOWN

DOWN DOWN

DOWN

DOWN DOWN

(*Using TEPCO actual emission coefficient published by Ministry of the Environment on December 9, 2013)

Energy saving

Energy creation

Rooftop panels

A reduction in CO2 emissions of 7.1 tons per year* is expected.

Accumulating energy

Power distribution

board Simplified

energy saving diagnostics

Auto air conditioning control

Window thermal barrier LED lighting

Visualize energy use

Commercial power

Floor power supply

Accumulator

Junction box

Foyer display power supplyCommercial

Green room (vending machines,

TVs, etc.)

Presentation room lighting

Display monitors at nTOC (plasma displays):

14 units

Office PCs, etc. Power conditioner Power distribution board

Lighting facility

Air conditioning facility

Solar power generation system

NEC Net works & System Integration Corporation has been working on environmental activities to reduce the consumption of energy and resources, and the generation of waste through corporate activities.

We have also achieved a significant reduction in environmental i m p a c t b y i n t r o d u c i n g o u r r e v o l u t i o n a r y o f f i c e s o l u t i o n "EmpoweredOffice", which effectively maximizes energy-saving, resource-saving (paperless), and space-saving activities, at Head Office and in our branch offices.

In addition to "EmpoweredOffice", we also provide a range of other environmental and energy-saving solutions. For energy issues, we provide solutions to promote the effective use of energy resources such as solar energy generation systems and a c c u m u l a t o r f a c i l i t i e s , a n d a l s o p r o v i d e s e r v i c e s f o r communication systems such as planning, consulting, design, c o n s t r u c t i o n, m a i n te n a n c e, o p e r a t i o n, m o n i to r i n g, a n d outsourcing to suppor t the environmental impact reduction activities of our customers.

As described above, we aim to be a corporation in harmony with the environment and help build an eco-friendly low carbon society by engaging in environmental impact reduction activities and providing customers with environmental and energy-saving solutions.

NEC Networks & System Integration Corporation covers part of the power used by the network Total Operation Center (nTOC) in the MSC Center Building with renewable energy generated by a solar energy generation system.

Furthermore, nTOC being a first action base in the case of a large-scale disaster, it gets to use the power generated by that system as an emergency power supply.

4

Aiming to Be a Company in Harmony with

the

Environment

Demand management

(8)

We have also installed in-vehicle voice guidance systems in our vehicles to support eco-driving as well as promote safe driving. As a result of these new systems, we are by and large maintaining our average fuel consumption target of 15.2 km/L.

materials storage center, with a consolidation rate improved by 0.73 items compared with the target, and a reduction in CO2 emissions of approximately 72 tons.

1,427kWh

1,469kWh

3

%

15.2

km/L

15.4

km/L

0.2

km

/

L

●Improvement in metropolitan charter freight consolidation rate

Reduction in environmental impact of logistics by raising the number of shipping items per truck

Improvement in recycling rate of industrial waste

Reduction in CO2 emissions

3.33

items

2.60items

0.73

72

97%

95%

2

%

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Measures Taken to Conserve the Global

Environment

Mitigating global warming

Reducing power usage

●Reducing power usage

reduced

Approach to environmental issues

As our business and staf f have expanded, our power us ag e has b e e n in c re asin g. H oweve r, by intro du cin g EmpoweredOffice at branch offices, our power usage per unit (per person) was improved by 3% compared with the target value. We will continue to promote EmpoweredOffice to the entire Company to further reduce our power usage.

Improving recycling rate of industrial

waste

We recycle 97% of our industrial waste by using thermal recycling.

Reducing environmental impact of logistics by improving metropolitan charter

freight consolidation rate

According to Law concerning the Rational Use of Energy, all ow ner s of goods a re obligated to ta ke energ y-sav ing measures. We have improved the operational efficiency of the vehicles that we use to transpor t goods from our

Improving fuel economy through introduction of company-owned eco-cars

and promotion of eco-driving

We started introducing hybrid cars in fiscal 2008, and by March 2013 we had changed 90 vehicles to hybrid cars, including fully electric cars. This is 61% of our entire motor vehicle inventory (excluding vans).

Moreover, we encourage employees who are registered as drivers of company-owned vehicles to practice eco-driving, and also encourage all employees to be fully aware of eco-driving when they drive in or der to achieve the CO2

emissions reduction target set by the Kyoto Protocol.

Power usage per unit (per person)

Improving fuel consumption by promoting eco-driving

Target Result

Target Result

Target Result

declined

items

improved

tons

improved

improved

Target Result

(9)

CO2

68,591

41,640

165

%

29.1

27.9

1.2

*The J-VER Credit scheme is a scheme established by the Ministry of the Environment in which the reduction/removal by sinks of greenhouse gases generated by domestic projects is certified as credits.

Reducing CO

2

emissions

Effective utilization of resources

Using Tradable Green Certificates

NEC Net wor ks & System Integration Cor poration uses "Tradable Green Cer tificates", which allows us to cover some of the power used in the staff canteen at head office (24,000 kWh) by generated "green" solar power. This equates to an annual reduction in CO2 of approximately 11 tons. Moreover, we

were able to cover the power used to host our "Customer's Fair 2014" at the exhibition center in the Tokyo International Forum entirely by green power.

Collection and recycling of NEC information and communications equipment

(PCs, computers, communications equipment, etc.)

NEC Networks & System Integration Corporation collects and recycles NEC information and communications equipment (PCs, computers, communications equipment, etc.) having received certification for wide-area industrial waste product processing by the Minister of the Environment.

Promoting paperless offices by using ICT solutions

The digitization of printed information through the use of digital multifunction printers and the promotion of paperless meetings have led to a significant reduction in paper use, and although the target for fiscal 2013 was raised slightly, we remained within 5% of the upper limit of the target. (Copier use per person per day reduced by 40% compared with fiscal 2008)

Promotion of environmental and energy-saving solutions

Promotion of environmental and energy-saving solutions including the

"EmpoweredOffice" office innovation solution for energy-saving, resource-saving

(paperless), and space-saving activities

NEC Networks & System Integration Corporation proposes a range of eco solutions including the "EmpoweredOf fice" of fice innovation solution. Through these solutions, we can help reduce CO2 emissions,

alleviate the environmental impact of our customers, and improve the global environment.

Implementing carbon offset measures

By using the J-VER Credit* scheme, NEC Networks & System Integration Corporation contributes to the mitigation of global warming, the conservation of biodiversity, the revitalization of forestry in Japan, and disaster relief. Moreover this year, we were able to reduce CO2 emissions when creating our "Ecology through EmpoweredOffice" leaflet and Environmental Report by 2 tons.

5 Measures Taken to Conserve the Global Environment

●Reduction in copy counts

Target Result counts increased

achieved Promotion of sales of environmentally

sound products (Eco symbol products)

(10)

Head Office

5 Measures Taken to Conserve the Global Environment

150

t

20

%

6

t

7

%

2

t

30

%

8

t

17

%

5

t

10

%

Promotion of environmental and energy-saving solutions

Examples of improvements achieved at NEC Networks & System Integration Corporation by

introducing the EmpoweredOffice concept

Received New Office Promotion Award in 24th Nikkei New Office Award

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% Reduced by CO2 emissions reduction Office costs CO2 emissions reduction Office costs CO2 emissions reduction Floor efficiency CO2 emissions reduction Floor efficiency CO2 emissions reduction Office costs

28

% Reduced by

25

% Reduced by

60

% Reduced by

59

% Reduced by

55

% Reduced by

20

% Reduced by

●T h e v a l u e s a r e o b t a i n e d b y comparing second half of 2009 before relocation and second half of 2010 after r e l o c a t i o n . ●T h e C O2 e m i s s i o n s reduction amount is a converted value based on the power consumption and amount of purchased copy paper. ● The CO2 emissions reduction amount is the cumulative amount for a period of six months. ●T he re du ctio n ef fe ct v a r i e s d e p e n d i n g o n t h e o f f i c e environment and the above reduction effect does not constitute a guarantee.

●T h e v a l u e s a r e o b t a i n e d b y comparing second half of 2011 before relocation and second half of 2012 after r e l o c a t i o n . ●T h e C O2 e m i s s i o n s reduction amount is a converted value based on the power consumption and amount of purchased copy paper. ● The CO2 emissions reduction amount is the cumulative amount for a period of si x months. ●T he re du ctio n ef fe ct v a r i e s d e p e n d i n g o n t h e o f f i c e environment and the above reduction effect does not constitute a guarantee.

●Th e v a l u e s a r e o b t a i n e d b y compar ing first half of 2011 before relocation and first half of 2012 after r e l o c a t i o n . ●T h e C O2 e m i s s i o n s reduction amount is a converted value based on the power consumption and amount of purchased copy paper. ● The CO2 emissions reduction amount is the cumulative amount for a period of si x months. ●T he re du ctio n ef fe ct v a r i e s d e p e n d i n g o n t h e o f f i c e environment and the above reduction effect does not constitute a guarantee.

●The values are obtained by comparing pre-relocation period from November 2012 to January 2013 and post-relocation period from November 2013 to January 2014 and extrapolating to a period of six months. ●The CO2 emissions reduction amount is a converted value based on the power consumption and amount of p u r c h a s e d c o p y p a p e r. ●T h e C O2 e m i s s i o n s r e d u c t i o n a m o u n t w a s obtained by extrapolating the actual data for a three-month period to a period of six months. ●The reduction effect varies depending on the office environment and the above reduction ef fect does not constitute a guarantee.

●T h e v a l u e s a r e o b t a i n e d b y compar ing first half of 2011 before relocation and first half of 2012 after r e l o c a t i o n . ●T h e C O2 e m i s s i o n s reduction amount is a converted value based on the power consumption and amount of purchased copy paper. ● The CO2 emissions reduction amount is the cumulative amount for a period of si x months. ●T he re du ctio n ef fe ct v a r i e s d e p e n d i n g o n t h e o f f i c e environment and the above reduction effect does not constitute a guarantee.

Number of people: Approx. 3,000 Head office relocated to Iidabashi in October 2010

Chugoku branch office

Received Chugoku New Office Promotion Award in 26th Nikkei New Office Award

Number of people: Approx. 70 Office relocated to a different building in March 2013

Chubu branch office

Received Chubu New Office Encouragement Award in 26th Nikkei New Office Award

Number of people: Approx. 110 Gradual renewal in March 2013

Kyushu branch office

Number of people: Approx. 70 Renewal in November 2013

Tohoku branch office

Number of people: Approx. 110 Floor relocated in September 2012

Office floor space

Power consumption Paper purchased for copying Paper purchased for copying (internal business use) Number of copy machines Number of shredders installed

Travel expenses

Office floor space Number of cabinets (office) Paper purchased for copying Travel expenses Power consumption

Office floor space Number of cabinets (office) Paper purchased for copying Travel expenses Power consumption Number of cabinets (office) Paper purchased for copying Travel expenses Power consumption

Office floor space Number of cabinets (office) Paper purchased for copying Travel expenses Power consumption 7% Reduced by 40% Reduced by 10% Reduced by 15% Reduced by 10% Reduced by 13% Reduced by 4% Reduced by 10% Reduced by 10% Reduced by 7% Reduced by 90% Reduced by 20% Reduced by 15% Reduced by 7% Reduced by 9% Reduced by 17% Reduced by 34% Reduced by 28% Reduced by 17% Reduced by

Human resources development and awareness raising

As part of our environmental education program for employees, we use the company intranet to provide various educational tools such as an environmental glossary, general environmental education, and industrial waste education. In particular, for general environmental education, we have achieved a 100% participation rate using our proprietary education system, NEC Networks & System Integration Learning Management (NLM).

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T his system, which connects via a mobile line Higashitanaka, Ishioka-shi, in Ibaraki Prefecture, which is where the NEC Networks & System Integration Corporation’s Rice Paddy Cultivation Project is taking place, and the head office (Bunkyo-ku, Tokyo), allows monitoring of the rice growing progress through

remote operation of a 360-degree, 36x zoom camera in real time. Moreover, this system makes use of renewable energy through solar energy and wind

energy generation systems. Rice paddy in Higashitanaka

Wind energy generation Solar energy

generation High-performance

camera

Monitoring in head office (Iidabashi)

WAN router/ mobile router

Battery Power supply

Feedback from participants

NEC Networks & System Integration Corporation's Rice Paddy

Cultivation Project

Green Remote Observation System

NEC Net wor ks & System Integration Corporation regards biodiversity as an important foundation to achieving a sustainable society. We therefore encourage our employees to participate in biodiversity conservation activities and promote environmental and energy-saving solutions while at the same time reducing

In fiscal 2012, NEC Networks & System Integration Corporation launched the Rice Paddy Cultivation Project as par t of our ecosystem and biodiversity conservation activities.

The Rice Paddy Cultivation Project aims to rejuvenate life and recover the ecosystem of fallow rice fields in Higashitanaka, Ishioka-shi, in Ibaraki prefecture.

T h i s p ro j e ct wa s d e s i g n e d fo r N EC N et wo r k s & S y ste m Integration Corporation Group employees and their families as a year-round hands-on nature program. The participants carry out activities from planting to threshing and ecosystem research under the super vision of local exper ts. (Par ticipants in fiscal 2013: 177 people)

Listening to the explanation of biological surveys, I was surprised to learn that each rice paddy has different organisms living in it. This experience allowed me to feel the changes in nature through my skin.

I realized that unless we consciously conserve the natural environment, Japan will become a wasteland. I think that we n e e d to c r e a te a r e c yc l i n g - o r i e n te d e c onomic e nvironme nt of subst a nc e through policies.

While the location was not that far from the city center, I was a s to un d e d to b e a b l e to s e e fireflies. I felt that I would like to preser ve this environment in which fireflies can live.

the environmental impact of our own activities and lives. We a l s o p ro m ote e d u c a t i o n a l a c t i v i t i e s to e n h a n c e t h e understanding and awareness of our employees towards preserving biodiversity, so that they can be proactive about the biodiversity in their behavior at work and at home. 

6

Activities That Contribute to the

Environment and Society

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A total of 98 employees, including 74 new employees who entered the Company in April 2013, were divided into two groups that took part in reconstruction activities in Minamisanriku-cho, Motoyoshi-gun in Miyagi Prefecture, and Rikuzentakata-shi in Iwate Prefecture.

In Minamisanriku-cho, the volunteers removed gravel (rubble removal) from small rivers around the Hadenya temporary housing complex, making sandbags, and sorting fishing nets according to the needs of the local residents. On the last day of activities, they visited the Himawari (sunflower) House, a co-wor k ing space we established in Rikuzentakata in November 2012, where a group discussion was held with the new employees about what will be required for the reconstruction of the area based on recent conditions, and a number of proposed measures were drafted based on the views of all the participants.

Along with contributions to the reconstruction of disaster areas and the improvement of the natural environment and living environment, these activities, a lot of work requiring the strength of youth was performed to help, as much as possible, the people in the affected areas.

6 Activities That Contribute to the Environment and Society

We clean up the area around the NEC Kansai building once a month as part of the area’s clean city program.

Environmental and social contribution activities

Reconstruction activities in disaster-stricken areas carried out by 2013 new recruits

Activities at

regional offices

Feedback from participants

I felt that while I c an accomplish only a little o n m y o w n , p e o p l e working together can accomplish big things.

I felt that the disaster area residents I met were living on bravely.

Though not consciously, I found myself seeking to act in tune with the feelings of the disaster area residents. I will remember and treasure the fact that I was able to tackle work with my own eyes and hands based on this awareness.

Though I can accomplish only very little by oneself, I feel like doing my own little bit, for example by buying goods from the Tohoku area and visiting the area as a tourist.

Before I went to Tohoku, I wasn't really sure what I could do there. But the people in Tohoku were very welcoming, thanking me for coming and telling me that every little bit helped. I felt like I was really doing something useful.

I was strongly impressed with the fac t that nothing will c h a n g e unless we do something, even if it is only a little, and that things will change if we do something.

Kansai branch office

We picked up trash from sidewalks and shrubs around the branch office and sales office.

Koshinetsu

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We hold the Sawayaka Echo Club once a month.

We c o n d u c t A s a n o R i v e r clean-up activities once every six months.

6 Activities That Contribute to the Environment and Society

Taking advantage of its experience gained over 26 years by dispatching employees to the Antarctic, NEC Networks & System Integration Corporation organized the “South Pole Club,” a traveling classroom focused on youth development that goes to elementary

schools in various regions, starting in Bunkyo-ku in January 2013. We have been dispatching one employee every year to maintain and operate the communication infrastructure at the Showa Station in Antarctica. In the class, these employees use movies to introduce the natural environment and natural science of Antarctica and show what life is like living under limited energy re so u rc e s, base d o n t h eir o n e-ye a r ex p e r ie n c e of li fe in Antarctica. Children are also provided with oppor tunities to touch ice from Antarctica and tr y on the actual cold weather gear used there, thereby creating a fun learning atmosphere.

Moreover, we held a South Pole Club exhibition as a hands-on, participatory event contributing to the sound development of youth, at the “Tobidase! Kids! ~Minnade Taiken Katsudou World fair” (sponsored by the Ministry of Education, Culture, Sports, Scie n c e a n d Te c h n olo g y ) h eld in I keb u k u ro in To k yo o n Februar y 1 and 2, 2014. In addition to listening to first-hand

accounts of real-life experiences about such things as the nature of the Antarctic and life wintering over in the Antarctic by company employees who participated in the wintering crew, the participating kids received explanations about the animals of the Antarctic and were given the opportunity to touch actual ice from the Antarctic, put on cold weather gear, and take part in educational quiz zes. T h e C o m p a ny 's b o ot h w a s v i s i t e d b y a b o u t 1,600 people.

Holding of “South Pole Club” youth development activity

Chubu

branch office branch officeHokuriku

We c o n d u c t e d A b e R i v e r riverbed cleaning.

Shizuoka branch office

We participate in the “Love-earth-clean-up activity” hosted by Fukuoka-shi, conducting clean-up activities at the Uminonakamichi Seaside Park.

Kyushu branch office

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Examination organization DNV

DNV JQA JQA JQA

7

Environmental Management Systems

Environmental policy

Basic Principles

Guidelines for Action

As a system integrator for the information society, NEC Networks & System Integration Corporation Group contributes to the realization of an affluent society while aiming to be a company in harmony with nature where all persons working at the Company participate in earth-friendly business activities.

Establishment March 1, 1996

Revision May 7, 2014

President

At NEC Networks & System Integration Corporation Group, all persons working at the Company promote the following environmental conservation activities,

upholding harmony with the environment as one of our key management issues.

1. Through a whole range of business activities, products, and services, we work to improve the environment as much as possible both technologically and economically, based on awareness of environmental impact.

2. Along with the prevention of environmental pollution, we aim for continuous improvement.

3. We manage activities, products and services that may affect the environment with strict observance of environment-related laws and regulations, agreements, and other relevant requirements.

4. In deploying management activities based on environmental policies, we set annual goals and targets, promoting resource and energy saving at all stages of our activities, products, and services, along with the reduction of waste products and biodiversity conservation, among other things. We also execute the measures as part of our environmental management program as we aim for broad-ranging improvements.

5. Along with documenting environmental policies to keep all persons working at the Company apprised, we implement and maintain environmental management systems.

6. Along with broadly disclosing our environmental policies, we contribute to our community.

Masao Wada

As environmental management is one of our most impor tant issues, NEC Net works & System Integration Corporation has been strengthening its mechanisms and structure for environmental management promotion. Specifically, through our Central Committee for Environmental Management (Chairperson: Officer in charge of the environment), we discuss and determine

the company’s environmental strategies and policies and follow up on major issues. Furthermore as a subordinate organization, we also hold an environment promotion meetings nearly every month, chaired by the General Manager of the CSR Promotion Division (person in charge of environmental management systems), for the purpose of promoting environmental management activities.

Management structure

NEC Networks & System Integration Corporation obtained ISO 14001 certification of its environmental management system on July 28, 1999. In fiscal 2013, the company underwent a regular audit for ISO 14001 between November 5 and November 8 and its environmental management system was judged to continue being effective based on the ISO 14001:2004 Standard.

1. Examination organization 2. Registration date 3. Expiration date 4. Registration number 5. Company name

* DNV: Det Norske Veritas AS DNV Business Assurance Japan Japan Quality Assurance

Organization (JQA) December 17, 1999 December 16, 2014 JQA-EM0640 NEC Networks & System Integration Corporation 2-6-1 Koraku, Bunkyo-ku, Tokyo

ISO 14001 certification status

Compliance is one of our most impor tant management issues. At NEC Networks & System Integration Corporation, we continue to create and maintain in-house systems to ensure compliance with corporate ethics, and implement awareness-raising activities.

In fiscal 2013, we fully established data management through NEC’s new environmental data system (GGX), which helps us understand energy usage more precisely and rapidly, and as a result we were able to achieve higher

management accuracy.

We also conducted the following scheduled industrial waste management activities: Manifest management, administrative reporting, and onsite visits of industrial waste disposal operators.

As a result of all these activities, we recorded no incidents, accidents, environmental law violations, or administrative guidance that could have had an effect on the environment around our branch offices.

Compliance

In fiscal 2013, we implemented internal audits on 24 management sites from July 22, 2013 to October 28, 2013. The results are shown on the right. The results of the internal audits were reported to the person in charge of environment management and used to improve the management system.

Internal audits

Status of Certification of Affiliated Companies Company name

Toyo Networks & System Integration Co., Ltd. TOYO ALPHA NET CO., LTD.

Nichiwa Co., Ltd. NEC Magnus Communications, Ltd.

NEC Net Innovation, Ltd.

24 sites Number of audited management sites

36 cases Satisfactory

points

0 cases Minor points of non-compliance

31 cases Improvement opportunities

Satisfactory

points

① With regard to improvement items we are working on as objectives and targets, we held regular committee meetings to promote activities toward the achievement of targets.

② With regard to environmental improvements items, a large part of the content is aligned with business activities, which is a positive thing.

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8

Independent Assessment

In the preface of Environmental Report 2014, the expression “to realize an af fluent society” is used a number of times in the context of the promotion of activities for the environment by top management. In each of the chapters that follow, the nature of that prosper it y is gradually brought into relief through a n interesting configuration of content. In the CSR policy, which places impor tance on the concept of “Re-designing your communication” set for th by the company, the focus is not limited to the mere realization of numerical targets. Instead, the impor tance of building up the relationships born from that process is expressed with terms such as “connections,” “bonds,” and “commitment.”

For example, regarding activities for conser ving the global environment, activities in the field of the environment and energy saving greatly contr ibuted to environmental conser vation compared with the previous year. The making of a smar ter society, as represented by EmpoweredOffice, is a concept at the fo r e f r o n t o f t h e e n v i r o n m e n t a l f i e l d i n J a p a n, b u t s u c h smar tification should be a means for “realizing an af fluent society,” and not an end unto itself. EmpoweredOffice, which is implemented at the head of fice and branch of fices of NEC Networks & System Integration Corporation, does not aim solely for the efficient use of time, space, and paper resources, but also for the visualization of business thought processes, the development of a sense of participation in consensus building, and the development of a relationship between the sense of unity of the organization and the feeling of self-fulfillment of each employee of the company. The creation of prosperity, beyond smartification, could be said to be the presentation of a solution by business itself for the society of the future, insofar as there is a sense of ownership in terms of companies feeling that they are needed by society and that they are participating themselves in the creation of the societ y of the future. Fur ther more, the employees themselves created a café space in the space obtained through higher efficiency and in the process a new sense of ownership was born, contributing to sharper thinking and wor k ing, a review of the of f ice environment from the viewpoint of disaster prevention, and the introduction of universal design for a better work environment for the handicapped, even when using wheelchairs. This is the ver y essence of CSV (Creating Shared Value) management, a topic that has been attracting considerable attention as environmental management, and the progressiveness of this approach is worthy of praise. At the front lines of the environment are humans, and the role of a company could be said to consist in giving each and ever y employee the courage to consider the environment around them and take action. In that sense, the Rice Paddy Cultivation Project imparts to employees the fact that their sense of their lives has

reality, through the creation of an ecosystem, a process in which humans, which are also part of it, directly connect with nature and establish relationships with various organisms. In today’s a g e, w h e r e t h e d a r k s i d e of S N S i s of te n re p o r te d, t h e importance of employees experiencing the reality of life has the potential of becoming an important asset of the organization. Fur ther more, new employees par ticipate in disaster relief performed as a social contribution activity, getting to learn anew abou t the pr ior ities required by societ y, and realizing the impor tance of people working together in nature and taking action personally. The par ticipants are also surprised by the changes that occur within themselves as they get close to disaster victims. The fact that employees were able to acquire consideration of others, the spirit of mutual help whereby people join forces, which might be said to be the spiritual culture of the Japanese, is not just an asset in terms of company personnel, b u t c o u l d b e b e i n g t h e v e r y s t u f f o f C S R b u i l d i n g n e w relationships between the company and the community. Likewise, the South Pole Club, which goes on after all these years, draws out the interest and understanding of children by featuring on the video shown on the monitor screen employees who were part of the wintering crew, thus conferring a sense of r e a l i t y, m a d e m e f e e l t h e p o te n t i a l o f e d u c a t i o n i n t h e environmental field as a new media.

Environmental issues cannot be resolved just through the re d u cti o n of g re e n h o u se g ase s a n d t h e c o n s e r vati o n of biodiversity. These two things are no more than indicators to help mankind realize an affluent where humans and other organisms coexist in harmony on the finite planet that is the Ear th. The leading player for environmental issues is each and ever y individual. I feel the ripple-like widening of the environmental activities of NEC Networks & System Integration Corporation, from numbers to people, and to society. I believe that when the feelings of each and ever y of the employees and the local residents who appear in the photos in this report overlap even more in this report, then this will become an outstanding CSR report.

Specified non-profit corporation

Trees and Environment Network Association Chairman of the Board of Directors

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NEC Networks & System Integration Corporation

Publication Manager Komei Sakanashi, Associate Senior Vice President Editing Manager Seiichi Inaba, General Manager, CSR Promotion Division Publication August 22, 2014

Contact information Environment Promotion Group, CSR Promotion Division

Tel: 81(3)6699-7004

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