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(1)

Environmental Report

(2)

Contents

1. Regarding the Publication of this Environmental

Report

2

2. Corporate Profile

3

3. Environmental Policy and CSR Policy

4

4. Environmental Management Systems

5

5. Environmental Impact

6

6. New Activities in FY2010 7

7. Regulatory Compliance Status, Internal Audits,

and Environmental Accounting

8

8. Environmental Objectives,

Targets and Achievements

9

9. Social Contribution Activities

10

10. Numerical Data 11

Scope of this Report

Period of report coverage: April 1, 2010 to March 31, 2011

Organizations covered: The environmental management activities of the entire

organization (excluding overseas and consolidated subsidiaries) for the fiscal year

ended March 31, 2011 are covered by this environmental report.

URL for environmental activities of the Company

http://www.nesic.co.jp/english/corporate/csr.html

Issuing department/contact information

Environment Promotion Group, CSR Promotion Division, NEC Networks & System

Integration Corporation

03-6699-7004

Publication Manager: Shogo Minami, Senior Vice President

(3)

1. Regarding the Publication of this Environmental Report

September 2011

Shogo Minami

Senior Vice President and

Member of the Board

* NEC Networks & System Integration

Corporation

s CSR homepage

http://www.nesic.co.jp/english/ir/message.html

NEC Networks & System Integration Corporation relocated its

head office to Bunkyo-ku (Iidabashi First Tower) in Tokyo 2010.

in October, deploying on that occasion EmpoweredOffice

(a revolutionary information and communication

technology-based Office Ionnovation solution heretofore

partially applied to the Shinagawa head office) to all floors.

To maximize energy saving, resource saving (paperless operations), and space

saving at the new head office location, the office environment was thoroughly

redesigned to incorporate various efficiency-promoting innovations. Furthermore,

great consideration was given to radical cost reform through work style innovations,

as well as the creation of systems for energy saving and improved business

continuity.

However, owing to the impact of the March 11 Great East Japan Earthquake and

nuclear power plant accident, we believe that reforms from an even wider viewpoint

are needed with regard to energy demand and business continuity. To this end, the

Company, which had thus far been working on EmpoweredOffice (Office Ionnovation)

solutions and environment and energy-saving solutions as part of efforts to address

the issues of global warming and energy conservation, will be increasingly

contributing on energy demand (energy saving designs) through cloud service

operations.

This report provides an overview of the Company

s

environmental activities

in the

fiscal year ended March 31, 2011. Through such activities, we will further create

information provision and communication opportunities as we grow our capabilities as

a genuine and trusted network system integrator.

(4)

Corporate Profile

Corporate Name: NEC Networks & System Integration Corporation

Established: November 26, 1953

Capital: 13.1 billion yen (as of the end of March, 2011)

Head Office: 2-6-1 Koraku, Bunkyo-ku, Tokyo

URL: http://www.nesic.co.jp/english/index.html

Business Outline

Provision of planning, consulting, design, and installation of ICT system with a core of networks and 24-7

maintenance, operation, monitoring, and outsourcing services from more than 300 support service stations nationwide

Domestic Service Network

As of October 1, 2011

Regional Divisions: 4 Network Total Operation Centers: 2 Regional Offices: 13 Service Centers: 21 Sales Offices: 33

2. Corporate Profile

Consolidated Financial Data

Years ended March 2007 March 2008 March 2009 March 2010 March 2011

[Consolidated Financial Data]

Net sales (Millions of yen)

254,641 258,212 249,070 217,727 217,948

Net income (Millions of yen)

3,476 4,412 5,154 5,806 4,747

Number of employees 6,407 5,817 5,906 5,998 5,939

Capital (Millions of yen) 13,122 13,122 13,122 13,122 13,122

Corporate History

November 1953 Establishment of Nippon Electric Installation Company December 1980 Company name changed to

“NEC System Integration & Construction, Ltd.”

December 1983 Listing on Second Section of the Tokyo Stock Exchange

July 1990 Opening of Isehara Technical Center in Isehara City, Kanagawa Prefecture, as a technical training and research facility September 1992 Transfer of some shares to First Section of the Tokyo Stock Exchange

July 1993 Relocation of head office to Shinagawa-ku, Tokyo July 1999 Acquisition of ISO 14001 certification

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

October 2005 Company name changed to

“NEC Networks & System Integration Corporation”

April 2006 NEC Telenetworx, Ltd. became a group company April 2007 Merger with NEC Telenetworx, Ltd.

July 2007 ISO 14001 certification scope changed, integration with ISO certification of NEC Telenetworx, Ltd.

July 2007 Commercialization of total office solution

“EmpoweredOffice”

April 2008 Nichiwa Co., Ltd. (Kobe City, Hyogo Prefecture) taken over as a subsidiary

April 2008 Opening of Network Total Operation Center in Tokyo November 2008 Opening of Parts Delivery Operation Center in Tokyo October 2010 Relocation of head office to Bunkyo-ku, Tokyo December 2010 DAIICHI AD SYSTEM CO., LTD. (Shibuya-ku, Tokyo) taken over as a subsidiary

Organization covered in the above financial data : The entire organization of NEC Networks & System Integration Corporation except affiliated companies (overseas-related business activities are not included) Businesses subject to reporting : Head office and 5 business offices in the Tokyo metropolitan area, 4 regional

divisions, 13 regional offices, and 33 sales offices Period of report coverage : April 1, 2010 to March 31, 2011

(5)

3. Environmental Policy and CSR Policy

Basic Principles

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 every employee participates in earth-friendly business activities.

Guidelines for Action

At NEC Networks & System Integration Corporation, 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 activities, products and services that integrate a wide variety of aspects from

communication and information systems consulting to planning, design, procurement, software provision, implementation, and operation and maintenance, 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.

April 1, 2007

Masahiko Yamamoto

President

Improve Working Conditions and Develop Human Resources Globally

CSR Policy

The Company builds trusting relationships with its stakeholders by putting compliance first, working to solve social issues through business activities, and soundly improving and returning profits to society.

Environmental Policy

Seven CSR Initiatives

We identified the most relevant and significant issues and themes for stakeholders and society as a whole and selected seven CSR initiatives.

Initiatives for Customers

Initiatives for Customers

Include Everyone in Systems and Services

Build Reliable Information and Communications Infrastructure

Provide Multifaceted Security

Establish CSR Platform

Establish CSR Platform

Strengthen

Risk Management and Compliance

Earn Customer Trust

(6)

4. Environmental Management Systems

Management Structure

ISO 14001 Certification Status

NEC Networks & System Integration Corporation obtained ISO 14001 certification of its

environmental management system on July 28, 1999.

In fiscal 2010, the Company underwent a renewal audit for ISO 14001 in combination with ISO 9001

between November 8 and November 12 and its environmental management system was judged to

continue being effective based on the ISO 14001:2004 Standard.

1 Examination organization: Japan Quality Assurance Organization (JQA)

2 Registration date: December 17, 1999 3 Expiration date: December 16, 2011 4 Registration number: JQA-EM0640 5 Company name

NEC Networks & System Integration Corporation 2-6-1 Koraku, Bunkyo-ku, Tokyo

Environmental

Management

Organization Chart

As of April 2011

As environmental management is one of our most important issues, NEC Networks & 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 hold also monthly Environment Promotion Meetings chaired by the

General Manager of CSR Promotion Division (person in charge of environmental management

systems) for the purpose of promoting environmental management activities.

Status of Certification of Affiliated Companies

Company name Examination organization

Toyo Networks & System Integration Co., Ltd.

DNV

TOYO ALPHANET CO., LTD. DNV

Nichiwa Co., Ltd. JQA

(7)

5. Environmental Impact

Business activities

IN

PUT

OUT

PUT

Electricity

10,356,091 kwh

City gas

89,893 m

3

Heavy oil, etc.

41 kl

Gasoline

316,942 liters

Water

44,365 m

3

Paper

99,964 kg

Chemical

substances

2,488 kg

CO

2

emissions

5,632.74 tons

Waste

material

Generated

amount

2,273 tons

Recycling

amount

1,988 tons

Final disposal

amount

285 tons

Wastewater

41,925

m

3

Electricity: Power consumption of offices Gas: City gas consumption for office air conditioning

Water: Drinking water consumption of offices Paper: Consumption of copy paper at offices Chemical substances

Lead solder, paints, adhesives

CO2 emissions: Amount of carbon dioxide emissions resulting from use of energy such as electric power and city gas

Wastewater: Domestic wastewater from offices Amount of generated waste: Total amount of general waste + industrial waste

Recycling amount: Total amount of recycled waste Disposal amount: Total amount of waste disposed of by incineration or landfill disposal

(8)

6. New Activities in FY2010

Conversion of all head office floors to EmpoweredOffice

When power usage grows large and enters

the “Caution”zone, the displayed graphic

changes to a scene depicting a withered forest that looks desolate and barren.

The Company

s head office was relocated from Shinagawa to Iidabashi in October 2010. At that

time, the following measures were implemented as part of the conversion of all floors to the

EmpoweredOffice design.

Promotion of awareness toward paperless operations (working without the use of paper) through

the reduction of document storage in archives and cabinets

Reduction of number of multifunction printers and shredders

Promotion of teleconferencing through the installation of additional videoconferencing system

terminals

Reduction of time losses through the use of stand-up meetings

Reduction of power consumption of PC terminals through promotion of thin clients

Introduction of energy-saving air conditioning for switch rooms

A 22% reduction of future power consumption (second half of 2009/second half of 2010 comparison,

excluding air conditioning) was aimed for through the above measures.

Moreover, we installed digital signage on all floors, displaying power usage amounts in

real time to promote awareness of energy conservation among employees.

Collaboration work using non-printed electronic documents

Thorough company-wide transmission and notification through office signage

Management of quality at customer work sites done at in-house center

(9)

7. Regulatory Compliance Status, Internal Audits,

and Environmental Accounting

Regulatory Compliance Status

Regulatory compliance is of paramount importance for management, and thus we have been

promoting the development of an internal system for corporate ethics along with related

educational activities.

As part of these activities, on the occasion of the relocation of our head office in FY2010, we

conducted a thorough review of our energy usage in greater detail than ever before.

With respect to waste management, we carried out in a planned manner manifest

management, administrative reporting, and on-site checks of waste disposal companies,

among other things.

As a result of the above-mentioned and other activities, there were no incidents or accidents

of significant impact on the environment around our various facilities, nor violations of

environmental laws, nor cases of administrative guidance.

Internal Audits

In FY2010, we conducted internal audits of thirteen sites between July 21, 2010 and

February 4, 2011, with the following results. The results of these internal audits were

reported to the General Manager for Environmental Management, and improvements and

other modifications were made to our management systems as needed.

Number of audit sites Number of evaluation points Major non-conformance Minor

non-conformance Observations Request

13 sites 35 items 0 items 7 items 7 items 21 items

Environmental Accounting

Large classification Middle classification Small classification Investments Costs Economic effect Business area costs Prevention of global

warming

Global warming prevention measures

0 4,452 13,357

Effective utilization of resources

Effective utilization of resources

0 0 38,333

Resource recycling activities

Costs of waste disposal 0 76,568 0

Risk management Legal compliance and management of chemical substances

0 360 0

Upstream and downstream costs

Design of

environmentally sound products

Design of environmentally sound products

0 300 0

Costs of management activities

Management activities Personnel costs related to environmental activities, costs for maintenance of ISO certification and

environmental audits

0 40,566 0

Research and development costs

Research and development

Costs related to research and development

0 0 0

Social activities costs Social activities Contributions to society and information disclosure

0 5,158 0

Costs of environmental damage

Other Other 0 0 0

Total 0 127,404 51,690

(10)

Environmental objectives, targets FY2010 plan FY2010 result Evaluation Compared to preceding year

1 Improvement in recycling rate of industrial

waste 90% 86% △ 5% reduction

2 Improvement in recycling rate of general

waste 100% 100% ○

100% maintained

3

Reduction in power purchases

Reduction of 1% compared with previous fiscal year

(MWH)

7.106

(MWH)

10.356 (6.825) ○ (5% improvement) 4

Reduction in purchases of copy paper

Reduction of 30% compared with FY2008 93 tons 100 tons △

25% reduction (compared with

FY2008) [Promotion of environmental improvements through business operations (eco-solutions)]

5 Promotion of sales of environmentally

sound products (Eco symbol products) 125 units 96 units △ 29 units decline

[Awareness raising]

6 NEC Environmental Awareness SurveyOver 60% in Eco Excellence zone 95% 99% ○ 2% improvement

[Automotive & logistics measures]

7

Improvement in average fuel economy through promotion of eco-driving (km/liter) Target vehicles (240)

14.0 14.7 ○

Improvement of 0.5 km/liter

8

Improvement in metropolitan charter freight consolidation rate (item)

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

2.50 2.30 △

21% improvement

8. Environmental Objectives, Targets and Achievements

Major Initiatives and Achievements in FY2010

Achieved:  Not achieved: △

*1: Power purchases

The figure reported in the periodic report specified under the Revised Energy Conservation Law based on actual results for FY2010 is listed. Moreover, the figure (in parentheses) that factors in power consumption for air conditioning following the head office’s relocation in October 2010 to reflect the switch from city gas to electricity is also provided for reference purposes.

*2: NEC Environmental Awareness Survey

In order to build a sustainable society that is in harmony with nature and raise the environmental awareness of each and every employee, the NEC Group has been conducting an environmental awareness survey of all employees once a year, and the FY2010 survey indicated that almost 100% of NEC Group employees belong to the high environmental awareness category (Eco Excellence).

Index Initiatives

Prevention of global warming

Reduction in power usage, introduction of company-owned eco-car and promotion of eco-driving, reduction of the environmental impact of logistics, compliance with the Revised Energy Conservation Law (preparation and submission of periodic reports and medium- and long-term plans)

Effective utilization of resources

Digitization of printed information through the use of digital multifunction printers, promotion of paperless meetings, donation and sale of office equipment on occasion of the relocation of the head office

Promotion of eco-solutions Promotion of the EmpoweredOffice office reform solution for energy saving and paperless operations

Human resources development and awareness raising

Expansion of number of employees who have high environmental awareness through environmental awareness surveys

(11)

Activities

We launched the in-house retail of bakery goods produced by Workshop Yamadori, a facility in

Bunkyo Ward, Tokyo, that supports people with disabilities (twice a month starting in February

2011).

On the occasion of the relocation of our head office and the resulting centralization of previously

scattered offices, we donated excess disaster contingency stockpiles to the local Minato-ku

Shibaura-Konan Regional City Office. The donated emergency food supplies were displayed at

an exhibit of disaster relief goods held by the Minato-ku Shibaura-Konan Regional City Office on

Disaster Prevention Day, and residents who visited the exhibit had the opportunity to taste them.

Moreover, some of the donated items were sent to the city of Iwaki in Fukushima Prefecture,

which suffered greatly from the Great East Japan Earthquake, and thus were of actual use.

On the occasion of the relocation of the head office, we streamlined all our office floors and

donated the excess furniture, etc., to welfare facilities in Shinagawa Ward, where the old head

office was located.

9. Social Contribution Activities

To promote the development of a sound society as a responsible corporate citizen, NEC Networks

& System Integration Corporation is actively engaged in social contribution activities, such as

international cooperation and disaster recovery support, for all our stakeholders, including local

communities, under the slogan

Little by Little, Starting Where We Can.

Collected Articles Intended Use of Proceeds Donation Recipient

Unusable postcards Literacy education for people in developing countries as “World Terakoya Movement”

National Federation of UNESCO Associations in Japan

Used prepaid cards

Health maintenance activities for expectant and nursing mothers in developing

countries

Japanese Organization for International Cooperation in Family Planning

Used stamps Overseas dispatch of healthcare workers Japan Overseas Christian Medical Cooperative Service

Plastic bottle caps Vaccination of children overseas to prevent infectious diseases

Japan Overseas Christian Medical Cooperative Service

Further details about the social contribution activities of the company are available at

http://www.nesic.co.jp/english/corporate/csr.html

International Contributions through Collection Programs, Donations, etc.

International Contributions through Collection Programs, Donations, etc.

Great East Japan Earthquake Support Activities

Great East Japan Earthquake Support Activities

As support activities for the areas devastated by the Great East Japan Earthquake of March 11,

2011, with the cooperation of the company

s labor union, we solicited funds from employees,

provided monetary and other assistance to employees who suffered losses in the disaster, made

donations to the Japanese Red Cross Society.

Symbiosis with the Local Community

Symbiosis with the Local Community

(12)

Numerical Data

47,605 56,765

GJ

Electricity

(air conditioning portion estimate)

20 22

kl

Bunker A (added from FY2009)

21 21

kl

Kerosene(added from FY2009)

5,631 6,174

CO

2

CO2 emissions

92.3 194.88 2,328.61 2,523.49

0.00 194.88 191.51 2,137.10 191.51 2,331.98 117,150 57,021 300,467 (185,950) 9,662,125

FY2009

87.2 371.57 2,521.90 2,893.47

0.00 371.57 181.77 2,340.13 181.77 2,711.70 132,689 53,964 277,205 ━ ━

FY2008 FY2010

Unit

2,078.48 Ton

Amount of generated industrial waste

99,964 kg

Copy paper

44,365 m3

Water

316,942 Liter

Gasoline

(89,893)

m3

City gas

(usage up to second half of FY2010)

194.51 Recycling amount of general waste

1,793.29 Recycling amount of industrial

waste

194.51 Ton

Amount of generated general waste

2,272.99 Amount of generated waste

0.00 Disposal amount of general waste

285.19 Disposal amount of industrial waste

87.5

Recycling rate of waste

285.19 Disposal amount of waste

1,987.80 Recycling amount of waste

10,356,091

KWH

Electricity

(revision of scope from FY2009)

Ton Ton Ton Ton Ton Ton Ton

*1 The scope was expanded from FY2009 to cover all offices and include the electricity consumption (air conditioning included) of sales offices and other workplaces for which data was not previously collected.

Following the relocation of the head office in October 2010, the energy source for air conditioning was changed from city gas to electricity. Therefore, electricity consumption in FY2010 marked a year-on-year increase, but as the city gas usage of the head office until then was calculated as included in the electricity consumption (air conditioning portion estimate), the total electricity usage amount declined.

*2 City gas consumption (values in parentheses) was calculated as part of electricity consumption (air conditioning portion estimate) and thus are reference values.

*3 The amount of generated industrial waste is on a decreasing trend along with the amount of on-site work execution amount.

*4 The amount of generated general waste increased slightly as the result of archive sorting work accompanying the relocation of the head office.

*5 The recycling rate in FY2009 rose above the usual level owing to a larger amount of debris during that year.

(13)

NEC Networks & System Integration Corporation 2-6-1 Koraku, Bunkyo-ku, Tokyo 112-8560 Publication Manager: Shogo Minami, Senior Vice President

Editing Manager: Naoharu Hatama, General Manager, CSR Promotion Division Publication: October 1, 2011

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