Based on its consolidated internal controls framework, the Fuji Electric Group periodically reviews and revises risk management systems and emergency procedures for environmental accidents, with the aim of minimizing damage due to pollution.

Soil and Groundwater Pollution

The Fuji Electric Group has been conducting relevant soil and groundwater surveys at operating sites with a history of organic solvent usage since before the enactment in 2003 of legislation in Japan governing soil pollution. If tests detect pollutant levels in excess of environmental standards, the company reports and explains survey findings to local authorities and community residents and undertakes required decontamination measures to clean up the site.

Soil surveys and decontamination programs (fiscal 2005)

Hokuriku Fuji Co., Ltd.

A survey confirmed that leakage of fluorine from parts of the piping system in the plant's wastewater treatment facility had caused pollution of surrounding soil within site grounds. A decontamination program involving the replacement of excavated soil is currently underway.

Mie Fuji Co., Ltd. (FRS)

A decontamination program involving the replacement of excavated soil is planned after surveys detected concentrations of lead, fluorine and arsenic within site grounds. The exact cause of the pollution due to substances used in operating activities has not been determined, except in the case of lead.

Fuji Electric Device Technology (FDT)(Matsumoto branch)

A voluntary soil survey within the site grounds that was conducted by FDT in 2004 detected high levels of fluorine. A subsequent survey of the site periphery conducted with the local Matsumoto authorities found groundwater concentrations of fluorine and selenium in excess of environmental standards. Site soil and groundwater surveys identified the source of the pollution as wastewater seepage before relevant legislation came into force. FDT has taken steps to remove any polluted soil from the site and to prevent further seepage in the vicinity of the relevant facilities. A barrier well has also been sunk to prevent any further groundwater pollution by isolating the site from the surrounding area. An operation to decontaminate polluted groundwater is underway.

  Separate projects commenced in 2005 to excavate and remove polluted soil that had been identified by soil surveys conducted over the entire site, and to transfer above ground any underground wastewater pipes that constitute a potential groundwater pollution risk. Once finished, the latter work will enable the wastewater piping to be monitored on a continual basis.

Mid-project (excavation/removal of polluted soil)

After completion (soil replaced and covered with asphalt)

PCB Emission Countermeasures

The Fuji Electric Group is holding in storage approximately 5,000 transformers, capacitors and other equipment containing PCBs. The Group is keeping these items in strict compliance with special Japanese legislative measures governing management of PCB-contaminated equipment, and is submitting reports to authorities as required.

  After the Japan Environmental Safety Corporation (JESCO) initiated operations to process PCB wastes in December 2004, the Fuji Electric Group quickly established a working group on PCB decontamination to facilitate a prompt and effective solution. This body coordinated efforts to share related information within the Group, set up a PCB database and promote appropriate countermeasures such as improved equipment labeling. Site registration with JESCO for equipment processing was completed in fiscal 2005. Decontamination work contracted to JESCO is scheduled to begin in fiscal 2006 at the JESCO site in Tokyo. Processing of all PCB-contaminated Group equipment in storage is projected to finish by March 2011.

  Work on assembling a database of equipment with low-level PCB emissions is also proceeding. The company plans to implement proper processing measures once the Japanese government has determined related policies and procedures.

Asbestos Pollution

The Fuji Electric Group established a working group to coordinate asbestos pollution countermeasures in July 2005. The Group conducted a full investigation with regard to products, production facilities, buildings and possible damage to health. These studies determined that asbestos had been utilized in some products and incorporated into a number of production facilities and buildings. The company has formulated a Group policy on asbestos pollution and implemented swift countermeasures.

  All production of asbestos-containing products has been terminated. Sales teams have provided the relevant details to any customers that have already taken delivery of such products. To date, the Group has not received reports of former Group employees having contracted any asbestos-related medical conditions qualifying for workers' medical compensation.

  Going forward, the Group plans to ensure that proper procedures are followed during the demolition of buildings with regard to the processing of building material wastes. The Group continues to pursue a safe and optimally effective initiative of asbestos countermeasures based on full compliance and open communication with employees and local community residents.

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