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Masao Wada

As we celebrate the 60th anniversary of our foundation, NEC Networks & System Integration Corporation has formulated a new corporate message, "Re-designing your communication". This message tells our customers that not only do we build n e t w o r k s t h a t a r e s a f e , s e c u r e a n d r e l i a b l e , b u t t h a t w e c a n d e s i g n communications through the eyes of customers who need to increase their corporate value and contribute to realizing a society that is rich and vibrant. Environmental activities are carried out based on our environmental policy of using our position as a system integrator in this information-oriented society to promote harmony with the environment and foster employees and officers who engage in business activities that are environmentally friendly and contribute to creating a rich and vibrant society. We also promote thorough compliance with e nv i r o n m e n t a l s t a n d a r d s a n d r e g u l a t i o n s a n d t h e a c t i ve r e d u c t i o n o f environmental impact by operating an environmental management system based on ISO14001 standards.

To maximize the results of our energy-saving, resource-saving (paperless), and space-saving activities, we have introduced various measures at Head Office and in our branch offices based on our own revolutionary "EmpoweredOffice" concept, 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 help our customers cut costs and conserve energy.

All of these activities have helped us build up experience and a proven track record in providing environmental and energy-saving solutions to reduce CO2 emissions and promote the transition to a low-carbon society.

Moreover, because we understand that working in harmony with the natural environment, conserving resources, and preserving ecosystems must form an essential par t of all economic and social activities to ensure a sustainable society, 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, we have launched a Rice Paddy Cultivation Project in which we recultivate and maintain a fallow rice field in order to rejuvenate life and recover the ecosystem. In our local offices, we promote clean-up activities to clean up beaches or commuting routes, and have been encouraging our new recruits to par ticipate 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 also create a base from which we can launch new 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.

NEC Networks & System Integration Corporation

President

Editorial policy

06 04 03

07

08

1 Achieving Corporate Management

That Contributes to the Environment

(Message from the President)

2 CSR (Corporate Social Responsibility)

3 Corporate Profile

4 Aiming to Be a Company in Harmony

with the Environment

5 Measures Taken to Conserve

the Global Environment

6 Activities That Contribute to

the Environment and Society

● Ecosystem and biodiversity conservation activities

● Environmental and social contribution activities

7 Environmental Management Systems

8 Independent Assessment

11

14

15

This year marks the 60th anniversary of the establishment of NEC Networks & System Integration Corporation. This milestone also sees us placing an ever stronger focus o n e n v i ro n m e n t a l m e a s u re s . T h i s y e a r, w e w o r k e d o n m a k i n g p re p a r a t i o n s t o e x p a n d a n d d e v e l o p t h e n e w a c t i v i t i e s w e l a u n c h e d i n f i s c a l 2 0 1 2 , w h i c h i n c l u d e b i o d i v e r s i t y a n d o t h e r e n v i r o n m e n t a l a c t i v i t i e s a n d renewable energy and carbon offset schemes.

To s h a r e t h e d e t a i l s o f t h e s e a c t i v i t i e s w i t h o u r stakeholders, we have overhauled this environmental report t o m a k e i t e a s i e r t o r e a d a n d u n d e r s t a n d , b a s e d o n assessments and advice from an independent third party. We have also prepared the report in two formats so that it can be read by as many people as possible: an online version primarily for readers from the media, universities, and NPOs, and a printed version for customers, business partners, employees, and the general public.

T h i s re p o r t d e s c r i b e s o u r a p p ro a c h t o e n v i ro n m e n t a l conservation and the activities we are engaged in, focusing specifically on our environmental impact reduction activities in fiscal 2012, which were carried out in accordance with our action plan "Achieving Corporate Management That C o n t r i b u t e s t o t h e E n v i ro n m e n t - C o n t r i b u t i n g t o t h e Environment by Using IT and Networks."

We would appreciate if you could read this report and send u s a n y o p i n i o n s a n d c o m m e n t s y o u h a v e a b o u t o u r environmental approach or activities.

◆Period of reporting: April 1, 2012, to March 31, 2013  (Numeric data)

◆Scope of reporting: Head office, five plants and four branch offices in the capital region, and 13 branch offices and 29 business offices

◆Link to the environmental activities page on our website:

http://www.nesic.co.jp/csr/environment.html

◆Contact: (e-mail) [email protected]

Achieving Corporate

Management That Contributes

to the Environment

1.

C O N T E N T S

Environmental Report

(3)

NEC Networks & System Integration Corporation is a system integrator whose mission is to develop new communications systems and mechanisms. By blending our accumulated technologies and experience with our IT know-how we are able to provide a wide range of services for communications systems, from planning and design to building, execution, and even outsourcing.

Based on our corporate message of "Re-designing your communication", we aim to enhance communication between people through our business activities by strengthening 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 the earth. We also carry 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 services, we carry 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.

CSR policy

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

CSR promotion structure

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

Stakeholder engagement

Communication with others

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 the earth itself.

Connections with the earth

We provide systems and services 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 s o c i e t y a s a w h o l e a n d to b e t te r e nv i r o n m e n t a l conservation across the globe.

Connections with customers

We build connections and establish relationships of trust with our custome r s by working togethe r as par tners and providing systems and ser vices that contribute to our customers' business.

Connections with local communities

We make every effort 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.

Enhancing compliance and ensuring securit y, peace, and safety

We deliver high-quality systems and ser vices that customers can use with confidence by ensuring i n f o r m a t i o n s e c u r i t y, p r i o r i t i z i n g s a f e t y, a n d continuously enhancing our measures to achieve thorough 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 working environment that allows our employees to maximize their skills and abilities.

Main themes of CSR

1

2

3

4

5

6

Executive President

Management Quality Enhancement Committee

Organizing Office ● CSR Promotion Division ● Accounting Division

● Manufacturing Revolution Promotion Section

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

Local communities Customers

Clients

Students

NPOs/NGOs

Public servants

Employees

1.

2.

3.

4.

5.

6.

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

●Manufacturing Revolution Promotion Section

(4)

Corporate profile

Corporate name Established Capital Head office Corporate website

NEC Networks & System Integration Corporation

December 1, 1953

13.1 billion yen (as of March 31, 2013) 2-6-1 Koraku, Bunkyo-ku, Tokyo http://www.nesic.co.jp/english/index.html

Corporate history

Our business

Consolidated financial data

Providing services related to information and communication technology (ICT) systems centered on networks, such as planning, consulting, and design, and providing maintenance, operation, monitoring, and outsourcing services that are available 24/7 from more than 300 service offices nationwide.

Support services

Integration

Consulting Corporations Communication providers Public offices/Local authoritiesSocial infrastructure providersPublic offices/Local authorities

NEC Networks & 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 impact by introducing our revolutionary office solution "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 accumulator facilities, and also provide services for communication systems such as planning, consulting, design, construction, maintenance, operation, monitoring, and outsourcing to support 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.

Energy creation

LED lighting

Floor power supply Power distribution

board

Lighting facility Air conditioning facility

Accumulating energy

Demand management

Sales

(Millions of yen) (People) (Millions of yen)

Number of employees Net income Capital

Commercial power

Accumulator Visualize energy use

Simplified energy-saving diagnostics

Solar power generation system

Visualize power use

Energy saving

DOWN DOWN DOWN DOWN DOWN DOWN Providing comprehensive support services that correspond

to the management cycle of the customer

2009

March March2010 March2011 March2012 March2013 March2009 March2010 March2011 March2012March2013 March2009 March2010 March2011 March2012 March2013

249,070 217,727

217,948 204,658 235,716 5,154 5,806 4,747 4,593

7,492

225,943 196,620 198,838

183,411 210,863 4,881 5,305 5,037 4,481

7,058 13,122 13,122 13,122 13,122 13,122

1,000 0 2,000 3,000 4,000 5,000 6,000 50,000 0 100,000 150,000 200,000 250,000 300,000

5,906 5,998 5,939 5,9366,024 4,154 4,2824,344 4,3934,530

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 Independent management index

0

2009

March March2010 March2011 March2012 March2013

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 2009

March March2010 March2011 March2012 March2013

0 1,000 5,000 10,000 15,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000

3.

Corporate Profile

4.

with the Environment

Aiming to Be a Company in Harmony

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 City, Kanagawa Prefecture, as a technical training and research facility

Transfer of some shares to First Section of the Tokyo 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 Telenetworx, Ltd. as a group company 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 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. (Shibuya-ku, Tokyo) as a subsidiary

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

(from “Construction” to “Information and Communication”) Integration of base station business with NEC Mobiling, Ltd. 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 Sales

(Millions of yen) (People) (Millions of yen)

Number of employees Net income

Auto air conditioning control

Window thermal barrier

Providing comprehensive support services that correspond

(5)

Reducing power usage

Using Tradable Green Certificates

Collection and recycling of NEC information and communications equipment

(PCs, computers, communications equipment, etc.)

Promoting paperless offices by using ICT solutions

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

and promotion of eco-driving

Reducing environmental impact of logistics by improving metropolitan charter

freight consolidation rate

Improving recycling rate of industrial waste

We started introducing hybrid cars in fiscal 2008, and by March 2012 we had changed 84 vehicles to hybrid cars, including two fully electric cars. This is 36% of our entire motor vehicle inventory (including 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 order to achieve the CO2

emissions reduction target set by the Kyoto Protocol. 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, the average fuel consumption has improved to 15.4 km/L.

As business has expanded, we have been able to employ more staff. However, this has led to an increase in power usage beyond the target amount. Nevertheless, by shifting control of the air conditioning systems at head office from individual control to central control to centralize thermal

management, we were able to improve the power usage per unit (per person) by 2% compared with the previous fiscal year. We will continue to promote this energy-saving policy to achieve our target reduction in total power usage.

According to Law concerning the Rational Use of Energy, all owners of goods are obligated to take energy-saving measures. We have improved the operational efficiency of the vehicles that we use to transport goods from our materials storage center, although the consolidation rate

compared with the previous fiscal year was slightly short of

the target. Nevertheless, we succeeded in reducing CO2

emissions by 91 tons, which is an improvement of approximately 3 tons.

We recycle 98% of our industrial waste by using thermal recycling.

Mitigating global warming

Reducing CO

2

emissions

Effective utilization of resources

NEC Networks & System Integration Corporation uses "Tradable Green Certificates", 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 9 tons. Moreover, we

were able to cover the power used to host our "Customer's Fair 2013" at the exhibition center in the Tokyo International Forum entirely by green power.

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.

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, although we did not achieve our year-on-year improvement target. Nevertheless, we succeeded in reducing copier/printer use by 0.7 counts (3%). (Copier use per person per day reduced by 48% compared with fiscal 2008)

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 by 1 ton.

C

O

2

Reduction of 1% compared with the previous fiscal year

●Reduction in power consumption

Power consumption per unit (per person)

increase

increase

4

%

2

%

●Improvement in metropolitan charter freight consolidation rate

Reduction in environmental impact of logistics by raising the number of

shipping items per truck

items

Reduction inCO2 emissions

short

0.15

t

improvement

3

Improvement in recycling rate of general waste

3

%

100

%

●Reduction in copy counts Year-on-year reduction of 7% Compared with

the previous fiscal year

Approach to environmental issues

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 "EmpoweredOffice" office innovation

solution. Through these solutions, we can help reduce CO2 emissions,

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

Promotion of sales of environmentally sound products (Eco symbol products)

*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.

5.

Measures Taken to Conserve the Global

Environment

Improving fuel consumption by promoting eco-driving

increase

0.2

Result7,025MWh

Target6,785MWh Target2,081MWh Result2,054MWh

Target15.2km/L Result15.4km/L

km/L

Target2.70 items Result2.55 items

Target95% Result98% Target100% Result100%

Improvement in recycling rate of industrial waste

improvement

maintained

Target26.7 Result27.9

counts

short

1.2

count

improvement

0.7

Target30,110 Result43,480

%

(6)

Examples of improvements achieved at NEC Networks & System Integration

Corporation by introducing the EmpoweredOffice concept

NEC Networks & System Integration

Corporation head office

EmpoweredOffice Center

Relocation (number of people transferred: Approximately 3000)

● This is a comparison of emissions in the second half of 2009 and after relocation fiscal 2010. ● The CO2 emissions reduction value is an equivalent value based on the power consumption and amount of purchased copy paper. ● The reduction effect varies depending on the office environment. The reduction effect introduced in the data above is not a guaranteed value. * The CO2 emissions reduction value is a 6-month cumulative value.

CO2 emissions reduction*

150

tons

CO2 emissions reduction*

3

tons

NEC Networks & System Integration

Corporation Shin-etsu branch

Application of EmpoweredOffice (Number of employees: 30)

Office floor space

Power consumption

Peak power reductions Paper purchased for copying

Number of multifunction printers installed Number of shredders installed

Travel expenses

Office floor space

Power consumption

Paper purchased for copying Number of business trips

Office expenses

Summer 2010

Summer 2011 For in-house use

●Peak power reduction is a management value based on consumption during summer 2009.

● This is a comparison of emissions from July to October in 2011 and after the EmpoweredOffice concept was applied in 2012. ● The CO2 emissions reduction value is an equivalent value based on the power consumption and amount of purchased copy paper. ● The effect of the reduction varies depending on the office environment. The reduction effect introduced in the data above is not a guaranteed value. * The CO2 emission reduction value is a 6-month cumulative value.

Head office was relocated to Iidabashi in October, 2010. We applied the EmpoweredOffice concept and proved its energy-saving effects. After relocating, we cut costs by 20% by reducing floor space and energy use.

We reduced floor space and energy use in July 2 0 1 2 b y a p p l y i n g t h e E m p o w e r e d O f f i c e concept.

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 e d u c a t i o n . We a l s o i s s u e t h e E n v i ro n m e n t a l N e w s newsletter every 3 months to introduce in-house and public activities related to the environment to enhance employees'

environmental awareness. Moreover, we encourage employees, especially those who work in the core offices, to acquire Eco Test certification to enhance their ability to propose practical solutions to customers at the customer's site. As environmental awareness has increased in recent years, the number of employees who have voluntarily acquired Eco Test certification has also increased.

Approach to environmental issues

5. Measures Taken to Conserve the Global Environment

6. Activities That Contribute to

the Environment and Society

In fiscal 2012, NEC Networks & System Integration Corporation launched the Rice Paddy Cultivation Project as part 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.

This project was designed for NEC Networks & System Integration Corporation employees and their families as a year-round hands-on nature program. The participants carry out activities from planting to harvesting under the supervision of local experts. (Participants in fiscal 2012: 117 people) NEC Networks & 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 the environmental impact of our own activities

We learned that unless the field is kept in good condition, the environment in the paddy-field-in-the-ravine cannot be sustained for more than a year. And once the field has gone fallow, it takes more than 10 years to completely recover. I came to understand how important it is to maintain and conserve nature.

That was a good experience for m y f a m i l y b e c a u s e w e c o u l d interact with living beings that cannot be found in our daily life.

This project has taught us how hard the upkeep of a rice field is. This was a great experience for our kids as well as us.

NEC Networks & System Integration Corporation held a wild bird watching and miso (soybean paste) making event at the NEC Abiko Plant on February 16, 2013, as part of our e d u c a t i o n a l p ro g r a m f o r e n v i ro n m e n t a l c o n s e r v a t i o n awareness. (Participants including those from co-host NEC: 82 people)

In the wild bird watching part of the event, participants walked around the plant while listening to a lecture about wild birds, and then performed environmental assessments based on the 24 kinds of birds observed during the activity.

In the miso-making part of the event, participants made miso from soybeans and malted rice made from the rice harvested in the Rice Paddy Cultivation Project run by NEC Networks & System Integration Corporation.

This event clearly showed the connection between our lives and the environment.

Feedback from participants

NEC Networks & System Integration Corporation's Rice Paddy Cultivation Project

Wild bird watching and miso-making event

Ecosystem and biodiversity conservation activities

● ● ●

and lives.

We also promote educational activities to enhance the 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.

Reduced by

36

%

Reduced by

28

% Reduced by

25

%

Reduced by

20

% Reduced by

60

%

Reduced by

59

%

Reduced by

55

%

Reduced by

32

%

Reduced by 52%

Reduced by 25%

Reduced by

15

%

Reduced by

47

%

Reduced by

35

%

Reduced by

25

%

(7)

NEC Networks & System Integration Corporation organized a class called "South Pole Club" at three primary schools in Bunkyo ward where our head office is located. The class is based on our 26-year record of dispatching employees to Antarctica.

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 resources, based on their one-year experience of life in Antarctica. Children are also provided with opportunities to touch ice from Antarctica and try on the actual cold weather gear used there, thereby creating a fun learning atmosphere.

"South Pole Club" class held at primary schools in Bunkyo ward

Activities at regional offices

Kansai branch office

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

We clean up the roads around the NEC Chubu building and Horikawabata Park once a month in a clean-up activity called "Aichi clean-up volunteer".

We participate in the "Love-earth clean-up activity" as part of the "Global e n v i ro n m e n t a n d l o c a l a c t i v i t i e s " project hosted by Fukuoka city. We cleaned up Uminonakamichi Seaside Park (Gannosu beach).

Chubu branch office

Kyushu branch office

*"Dreams come true" message from lecturers

6. Activities That Contribute to the Environment and Society

Environmental and social contribution activities

We dispatched 151 volunteers divided into three groups, including 104 employees newly recruited in 2012, to Minamisanriku-cho, Motoyoshi-gun in Miyagi prefecture and Rikuzentakata-shi in Iwate prefecture.

In Minamisanriku-cho, the volunteers removed rubble, mowed grass, removed gravel from small rivers, and carried logs around Hadenya temporary housing. In addition, they also built benches where needed, and planted sunflower seeds to comfort local residents.

In Rikuzentakata-shi, the volunteers planted tulip bulbs in planters,

and presented them to people staying in temporary housing

facilities around Takekoma-cho in Rikuzentakata-shi.

The purpose of this activity was to provide young manpower to

support the reconstruction of disaster-stricken areas and improve the natural and housing environments for local residents whose

lives were impacted by the disaster.

Volunteer activities in disaster-stricken areas carried out by

2012

new recruits

Feedback from participants

● Removing rubble and other heavy items like TVs or

furniture washed right to the top of hills made me realize the huge impact of the tsunami.

● My heart reached out to the people affected by the

disaster. By experiencing the situation first hand, with my own eyes, I could really understand the feelings of the local people.

● I don't really feel that I did much to help, but if I helped

even one person even a little bit, I am happy.

● I wanted to do something, no matter how small, to make

things better.

● I have learned that nobody can live alone and coopera-tion is key for our lives.

● The local residents were very grateful. If I helped even a

little bit, I'm happy.

● I must tell other people about this experience, because

(8)

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 the CSR Promotion Division (person in charge of environmental management systems)

for the purpose of promoting environmental management activities.

Compliance is one of our most important 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.

As part of our compliance activities, we implemented a review to ascertain

actual energy usage levels when we relocated our head office in fiscal 2010.

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.

In fiscal 2012, we conducted internal audits from June 20 to October 10. 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.

NEC Networks & System Integration Corporation obtained ISO 14001 certification of its environmental management system on July 28,

1999.

In fiscal 2012, the company underwent a regular audit for ISO 14001 between November 12 and November 16 and its environmental management system was judged to continue being effective based on the ISO 14001:2004 Standard.

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 all persons working at the Company participate 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.

Establishment March 1, 1996 Revision June 26, 2012

President

1.Examination organization Japan Quality Assurance Organization (JQA) 2.Registration date December 17, 1999 3.Expiration date December 16, 2014

4.Registration number JQA-EM0640 5. Company name NEC Networks & System

Integration Corporation

2-6-1 Koraku, Bunkyo-ku, Tokyo

Status of Certification of Affiliated Companies

Examination organization DNV DNV

JQA

* DNV: Det Norske Veritas AS DNV Business Assurance Japan

Management structure

ISO

14001

certification status

Compliance

Internal audits

7. Environmental Management Systems

Environmental policy

Masao Wada

Company name

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

Nichiwa Co., Ltd.

Number of sites audited Satisfactory points

Major points of non-compliance Minor points of non-compliance

26 sites

44 cases

0 cases

3 cases

1. Inadequate environmental regulation assessment/lack of records and bookkeeping

2. Some designated assessments of purposes and objectives incomplete 3. Some documentation on "Relating to environment" incomplete

Minor points of non-compliance

* All has been corrected. Double-checked by person who is promoting or in charge of

The name "NEC Networks & System Integration Corporation" may not evoke an image of their actual business.

After visiting the company, we now understand that this company delivers essential services required for society in the era of IT and the global environment.

This company provides services related to information communication systems centered on networks, such as planning, design, development, building, construction, maintenance, operation, and consulting related to the above. In addition, all these areas of business are compatible with environmental conservation activities. As clearly stated in the company's environmental policy, NEC 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 C o r p o r a t i o n h a s established concrete systems to implement environmental measures.

The implementation status of environmental measures can also be checked by looking at material balance and numerical data related to environmental impact. Excluding fiscal 2009 and 2011, which were exceptional due to the huge impact of the Lehman Brothers bankruptcy and the Great East Japan Earthquake respectively, if you compare fiscal 2010 and 2012, the company's sales volume has increased by 8% over two years. At the same time, their environmental measures have achieved the following outcomes.

1) The consumption of gas, water, and copy paper has been reduced by 1.5%, 9%, and 11% respectively. 2) The amount of industrial waste generated has been reduced by approximately 27%, and the amount of industrial waste disposed of has been reduced by a very large 89%.

Although CO2 emissions have increased by 10.7%, the

reason for this increase is that the amount of thermal power purchased by this company has increased due to the disaster at the Fukushima Daiichi Nuclear Power Plant, and the thermal power share has a larger impact on the

CO2 emission coefficient.

The overall environmental performance of this company is generally quite good as far as the data shows. However, in order to maintain and improve this performance in the future, all members of the company, including top management, must fully understand the purpose of the environmental measures required in terms of international and domestic political trends and overall management, as well as acquire the know-how to implement these measures. We can see that this company has been e n c o u r a g i n g i t s e m p l o y e e s t o e n h a n c e t h e i r e n v i ro n m e n t a l a w a re n e s s t h ro u g h e n v i ro n m e n t a l education. This attitude should continue to be enhanced. "EmpoweredOffice", which is NEC Networks & System

Integration corporation's revolutionary new office concept, not only focuses on saving energy and resources from a hardware perspective, but is also intended to enhance motivation and human endeavor, and the environmental

awareness of workers. The hardware effects and results are already apparent. From now, we expect the company to focus more on the software side to realize the outcomes above.

This company also engages in various activities that contribute to the environment and society. The Rice- Paddy Cultivation Project and wild bird watching event are good opportunities for workers to deepen their relationships with family members as well as foster their environmental awareness. Among the activities carried out by NEC Networks & System Integration Corporation, we were especially impressed with the volunteer activities in disaster-stricken areas participated in by new recruits and the "South Pole Club" class held at local primary schools.

In the former activity, the company dispatched 104 recruits to the Rikuzentakata and Minamisanriku areas in fiscal 2012. The volunteer activities of these young workers were undoubtedly well-received by the people in the area, and this experience must have empowered these volunteers for the rest of their lives. In the "South Pole Club" project, workers who have experienced living i n A n t a r c t i c a f o r o n e y e a r d e s c r i b e t h e n a t u r a l environment in Antarctica and how they lived under limited resources. This is a great environmental education opportunity for children in that they learn about how to survive in a severe global environment.

As introduced above, we could see that NEC Networks & System Integration Corporation not only promoted reducing environmental impact through their activities, but also actively engaged in social contribution activities that enhanced the environmental response capability of society as a whole.

Approved Nonprofit Corporation

Japan Association of Environment and Society for the 21st Century

Co-representatives

Konoe Fujimura / Saburo Kato

(9)

NEC Networks & System Integration Corporation

Publication Manager Editing Manager Publication Contact information

Komei Sakanashi, Associate Senior Vice President Seiichi Inaba, General Manager, CSR Promotion Division August 30, 2013

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