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NEC Networks & System Integration Corporation

Environmental Report

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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 MAchieving C MManagement tributes to thThat Contr hhe Environment

e from the Pr(Message esident)

orporate SociaCSR (Co aal Responsibility)

rate ProfileCorpor

g to Be a CompaAiming aany in Harmonyhe Environmentwith th

ures Taken to CoMeasu oonservelobal Environmethe Gl nt

ties That ContribActivit bbute tovironment and Sthe Env SSociety

● stem and biodiversEcosys ity conservation activities

● nmental and social Environm contribution activities

ental ManagEnvironme ggement Systems

t AssessmIndependent mment

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02 Environmental Report 2014 NEC Networks & System Integration Corporation

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 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, 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.

1 Achieving Corporate Management That Contributes to the Environment

PresidentNEC Networks & SystemIntegration Corporation

Masao Wada

03Environmental Report 2014 NEC Networks & System Integration Corporation

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 in networks with our IT know-how

we a re a b l e to p rov i de a w i de r a n g e o f se r v i c es fo r

communications systems, from planning and design to system

integration, installation, and even outsourcing services.

Based on our corporate message of "Re-designing your

communication", we aim to enhance communication between

people through our business act iv i t ies 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 ear th. 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.

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● CSR policy

Communication with others

● Main themes of CSR

A s a n e t wo r k s ys te m i n te g r a to r, we 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.

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2 CSR (Corporate Social Responsibility)

Environmental Report 2014 NEC Networks & System Integration Corporation

Connections with local communitiesWe make every 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 earthWe provide systems and services that contr ibute 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 safetyWe del iver h igh-qual i t y systems and ser v ices that customers can use w i th conf idence by ensur ing information security, prioritizing safety, and continuously e n h a n c i n g o u r m e as u re s to a c h i e ve t h o ro u g h compliance.

Cultivating diverse human resources and creating a friendly working environmentWe respect all basic human rights in all our corporate

activities, recruit and develop human resources with

various individual characteristics, and create a friendly

work ing environment that a l lows our employees to

maximize their skills and abilities.

Connections with customersWe build connections and establish relationships of

t r ust w i th our customers by work ing together as

par tners and prov iding systems and ser v ices that

contribute to our customers' business.

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

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Executive President

Management Quality Enhancement CommitteeOrganizing Office ● CSR Promotion Division● Accounting Division

Sales

Division

Division in charge

Primary themes for ISO 26000

Business

Division

Affiliated

Companies

Cooperation betweendivision in charge and

other divisions

Corporate governance

Human rights

Labor practices

Environment

Fair business practices

Consumer affairs

Participating in anddeveloping communities

CSR primary themes StakeholdersStakeholder engagement

Communication between people

Connection with the earth

Connection with customers

Connection with localcommunities

Strengthening complianceand ensuring safety and security

Developing diverse humanresources and creating afriendly working environment

Stockholders/Investors

Customers

Local communities

Clients

Students

NPOs/NGOs

Public servants

Employees

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Opinion

Disclose/Explaininformation

Select task

Evaluate result

Improve Execute plan

Plan

Check

DoAct

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

・ Safety & Quality Assurance Division

3 Corporate Profile

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 400 service offices nationwide.

● Corporate profile

● Consolidated financial data

06 Environmental Report 2014 NEC Networks & System Integration Corporation

Corporate name

Established

Capital

Head office

Corporate website

NEC Net wo r ks & Sys tem I n teg ra t i on 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 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”

Addit ion of NEC Telenetworx, Ltd. as a consolidated subsidiary

Merger with NEC Telenetworx, Ltd.

ISO 14001 certification scope changed, integration withISO 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 DAI ICHI AD SYSTEM CO., LTD. (currently, D - Cub i c C o r p o ra t i o n ) ( S h i b u ya-k u , To k yo ) a s a consolidated subsidiary

Industry classif ication 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, Tokyo) as a consolidated subsidiary

Ad d i t i o n o f N EC M ag n us C o m m u n i c a t i o ns , L td . (Minato-ku, Tokyo) as a consolidated subsidiary

● Our business

Providing total supportcorresponding to the management

cycle of customers


cycle of customers

ProProProProProProProProProProProProPrProProPrProProProProProProProProProProvidvidvidvidvidvidvidvidvidvidvididvidvidvividvidvidvidvvidvidvidvidvidinggingngingingingingngingngngngingingingngingingingingngngingingngingnging to t to to to to to to to to to to to toto totototo to totototototaltaltaltaltaltaltaltaltaltaltaltaltaltaltaltalt ltaltaltaltaltaltaltal su su su susu su su su susu su sususu susususususus ppoppoppoppoppoppooppoppoppoppoppoppoppopppppppppppppppppppppppppppp rtrtrtrtrtrtrtrtrtrtrtrtrtrtrtrtrtrtrtrtrtrtrtProviding total supportccorccocorcorcorcorcorcorcocorcorcorcorcorcorororresresresresresresresresresresresresresreseesesponponponponpoponponponponponponponponponponpoppppppppppppp dddididididididindindindindindindindididididindindidindindindindindindindindinding 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 tg to to to to o to o to o to to to to to to to to to to to to to to to to to to to to the he he he he he hhhhhhhhe he he he hhehe he hehehehehehe hee he he mmmanmanmamanmanmanmanmanmanmanmanmanageageagageageagageageageageageageageageageageggggggggggggg menmenmenmenmenmenmenmenmenmenmenmenmenmentttttttttttttttttttcorresponding to the management

ycyccyccyccyccyccyccyccyccyccyccyccyccyccyccycyccycyccycyyyyyyyy le le le le e e e e le le le e e le lelelee lelelele e lelee of of of of of of of of of of of of ofof of of ofof ofofof ofofofofof cuscuscuscuscuscuscuscuscuscuscuscuscuscuscusususcuscuscuscustomtomtomtomtomtomttomtomtomtomtomtomtomtomtomtomtomtomtomtomtomomersersersrserserse sersersersersersersersserscycle of customers


cycle of customers

(Millions of yen)

2010March

2011March

2012March

2013March

2014March

2010March

2011March

2012March

2013March

2014March

2010March

2011March

2012March

2013March

2014March

2010March

2011March

2012March

2013March

2014March

(People)

217,727

217,948

204,658

235,716

270,326

5,644

4,660

4,474

7,246

8,257

225,943

196,620

198,838

183,411

210,863

220,565

5,305

5,037

4,481 7,058

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 5,9366,024

7,1644,282 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

Telecommunicationscarriers

Central and local governmentsSocial infrastructure operators


● Solar energy generation system in MSC Center Building

DOWN

DOWNDOWNDOWN

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

Powerdistribution

board

Simplified energy savingdiagnostics

Auto airconditioning control

Window thermalbarrier

LED lightingVisualize

energy use

Commercialpower

Floor powersupply

Accumulator

Junction box

Foyer displayCommercial

power supply

Green room(vending machines,

TVs, etc.)

Presentation roomlighting

Display monitors atnTOC (plasma displays):

14 units

Office PCs, etc.

Power conditioner Power distribution board

Lightingfacility

Air conditioningfacility

Solar powergeneration system

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 int roduc ing our revo lu t ionar y of f ice so lu t ion

"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 ef fective use of

energy resources such as solar energy generation systems and

accumu la to r f ac i l i t i e s , and a l so p rov i de se r v i ces fo r

communication systems such as planning, consulting, design,

const ruct ion, ma intenance, operat ion, moni to r ing, and

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-fr iendly 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

Demandmanagement

Visualizepower use

08

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.

1,427kWh1,469kWh 3%

15.2km/L15.4km/L 0.2km/L

●Improvement in metropolitan charter freight consolidation rateReduction in environmental impact of logistics

by raising the number of shipping items per truck

Improvement in recycling rateof industrial waste

Reduction inCO2 emissions

3.33items2.60items 0.73 72

97%95% 2%

5 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

usage has been increasing. However, by int roducing

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 industrialwasteWe recycle 97% of our industr ial waste by using thermal

recycling.

Reducing environmental impact of logistics by improving metropolitan charterfreight consolidation rate

According to Law concerning the Rational Use of Energy, all

owners of goods are obl igated to take energy-sav ing

measures. We have improved the operational efficiency of

the vehicles that we use to t ranspor t goods f rom our

Improving fuel economy through introduction of company-owned eco-carsand 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 al l employees to be ful ly 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 consumptionby promoting eco-driving

Target Result

Target Result

Target Result

declined

itemsimproved

tonsimproved

improved

Target Result

t t

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CO2

68,59141,640165%

29.127.9 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 CO2 emissions

Effective utilization of resources

Using Tradable Green CertificatesNEC Networks & System Integrat ion Corporat ion uses "Tradable Green Cer tif icates", which allows us to cover some of the power used in the staf f 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 solutionsThe 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 f ice" of f ice 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 measuresBy 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.



●Reduction in copy counts

Target Resultcounts increased

achieved

Promotion of sales of environmentallysound products (Eco symbol products)

Target Result

● Head Office

10


150t20%

6 t7%

2 t30%

8 t17%

5 t10%

Promotion of environmental and energy-saving solutions

Examples of improvements achieved at NEC Networks & System Integration Corporation byintroducing the EmpoweredOffice concept

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

36%Reduced by CO2

emissionsreduction

Officecosts

CO2

emissionsreduction

Officecosts

CO2

emissionsreduction

Floor efficiency

CO2emissionsreduction

Floor efficiency

CO2

emissionsreduction

Officecosts

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 re loca t ion. ●The CO2 em iss ions 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 s ix months. ●The reduct ion ef fect 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 re loca t ion. ●The CO2 em iss ions 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 s ix months. ●The reduct ion ef fect 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 compar ing f i rst hal f of 2011 before relocation and first half of 2012 af ter re loca t ion. ●The CO2 em iss ions 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 s ix months. ●The reduct ion ef fect 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 pu rchased copy paper. ●The CO2 e m i s s i o ns r e du c t i o n a m o u n t was obtained by extrapolating the actual data for a three-month period to a period of six months. ●The reduction ef fect var ies depending on the office environment and the above reduct ion 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 f i rst hal f of 2011 before relocation and first half of 2012 af ter re loca t ion. ●The CO2 em iss ions 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 s ix months. ●The reduct ion ef fect 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 NewOffice 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 officeNumber of people: Approx. 70 Renewal in November 2013

● Tohoku branch officeNumber of people: Approx. 110 Floor relocated in September 2012

Office floor space

Power consumption

Paper purchasedfor copying

Paper purchased for copying (internal business use)

Number ofcopy machines

Number ofshredders installed

Travel expenses

Office floor space

Number of cabinets (office)


Travel expenses

Power consumption

Office floor space



Travel expenses

Power consumption



Travel expenses

Power consumption

Office floor space



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).

We also issue the Environmental News 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 of f ices, to acquire Eco Test cer tif ication to enhance their ability to propose practical solutions to customers at the customer’s site.


This system, which connects v ia a mobile l ine 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.

11

Rice paddy in Higashitanaka

Wind energygeneration

Solar energygeneration

High-performancecamera

Monitoring in head office(Iidabashi)

WAN router/mobile router

Battery

Powersupply

Feedback from participants

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

● Green Remote Observation System

NEC Networks & System Integrat ion 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.

Th is pro ject was designed for NEC Networks & System

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 supervision of local experts. (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 need to create a recycl ing-or iented economic environment of substance through policies.

While the location was not that far from the city center, I was astounded to be able to see fireflies. I felt that I would like to preserve this environment in which fireflies can live.

the environmental impact of our own activities and lives.

We a lso promote educat iona l act i v i t ies 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.　

6 Activities That Contribute to the Environment and SocietyEcosystem and biodiversity conservation activities


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-work ing space we establ ished 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.

12

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 can accomplish only a little o n my ow 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 fact that nothing wi l l change 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.

Koshinetsubranch office

Kofusales office

13

We hold the Sawayaka Echo Club once a month.

We conduct Asano River 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

resources, based on thei r one-year exper ience of l i fe in

Antarctica. Children are also provided with oppor tunities to

touch ice from Antarctica and try 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,

Science and Technology) held in Ikebukuro in Tokyo on

February 1 and 2, 2014. In addition to listening to first-hand

accounts of real-li fe 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 quizzes.

The Company's booth

was v i s i ted by abou t

1,600 people.

● Holding of “South Pole Club” youth development activity

Chububranch office

Hokurikubranch office

We conducted Abe River riverbed cleaning.

Shizuokabranch office

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

Kyushubranch office

* Child listening to the sound of Antarctic ice

14

Examination organizationDNVDNVJQAJQAJQA


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, 1996Revision 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

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 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 organization2. Registration date3. Expiration date4. Registration number5. Company name

* DNV: Det Norske Veritas AS DNV Business Assurance Japan

Japan Quality AssuranceOrganization (JQA)December 17, 1999December 16, 2014JQA-EM0640NEC Networks & SystemIntegration Corporation2-6-1 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 al l these activ i t ies, 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 CompaniesCompany 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 auditedmanagement sites

36 cases

Satisfactorypoints

0 cases

Minor points ofnon-compliance

31 cases

Improvementopportunities

Satisfactorypoints

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.

③ With regard to activities to reduce CO2 emissions through the use of TV conferencing systems, we collect detailed statistics that allow us to accurately calculate the CO2 emissions reduction effect.


8 Independent Assessment

In the preface of Environmental Report 2014, the expression “to

realize an af f luent 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 i t y is gradual ly brought into rel ief through an

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 activit ies for conserving the global

environment, activities in the field of the environment and energy

saving great ly contr ibuted to environmental conser vat ion

compared with the previous year. The making of a smar ter

society, as represented by EmpoweredOffice, is a concept at the

fo ref ront of the env i ronmenta l f ie ld in Japan, bu t such

smar ti f ication should be a means for “real iz ing an af f luent

society,” and not an end unto itself. EmpoweredOffice, which is

implemented at the head of f ice and branch of f ices 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 society of the future. Fur thermore, 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 work ing, a rev iew of the of f ice environment f rom 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 every

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

age, where the dark s ide of SNS is of ten repor ted, the

importance of employees experiencing the reality of life has the

potential of becoming an important asset of the organization.

Fur thermore, new employees par t icipate in disaster rel ief

performed as a social contribution activity, getting to learn anew

about the pr ior i t ies required by society, and real iz ing 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,

bu t cou ld be be ing the ve r y s tu f f o f CSR bu i ld ing new

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

rea l i t y, made me fee l the potent ia l o f educat ion in the

environmental field as a new media.

Environmental issues cannot be resolved just through the

reduct ion of greenhouse gases and the conser vat ion 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 every

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 every 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 corporationTrees and Environment Network AssociationChairman of the Boardof Directors

Juichi Shibusawa

NEC Networks & System Integration Corporation

Publication Manager Komei Sakanashi, Associate Senior Vice PresidentEditing Manager Seiichi Inaba, General Manager, CSR Promotion DivisionPublication August 22, 2014Contact information Environment Promotion Group, CSR Promotion Division Tel: 81(3)6699-7004 E-mail: [email protected]

2-6-1 Koraku, Bunkyo-ku, Tokyo, 112-8560, Japan

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