Fuji Electric Global


ESGRisk Management

Basic Policies

Based on the Fuji Electric Risk Management Rules, the Company manages risks in a coordinated, systematic manner. We practice appropriate management and counter various risks that could affect Fuji Electric’s management in order to prevent risks from materializing (crisis situations), thereby minimizing the impact on management in the event that risks do materialize.

Risk Management System

The Company’s business divisions and affiliated companies are responsible for managing risks related to their business activities as a part of their business duty, developing appropriate risk management systems, and implementing risk countermeasures.

Significant risks, such as those related to business plans and large-scale investments, are reported at the Executive Committee as appropriate to facilitate the sharing of information. We also have manuals in place to ensure that risks are steadily managed. We provide training in handling each type of risk and inform the whole Company about our efforts to manage risks through company magazines and other appropriate means.

The internal auditing divisions conduct regular audits to check whether each business division and affiliated company identifies and evaluates risks based on the Fuji Electric Risk Management Rules, defines countermeasure policies, and properly builds and operates management systems.

Risk categories

Emergency response

If an emergency arises due to a large-scale disaster or any other serious cause, we need to act to prevent the situation from becoming any worse and resolve the situation as soon as possible. Hence, we have guidelines in place on preparations for possible emergencies, an emergency contact network, and setting up an emergency task force.

Risk management process

When annual budgets are formulated, the Company’s business divisions and affiliated companies gain an understanding of and evaluate risks related to their business activities.

Policies and countermeasures in response to risks (aversion, mitigation, relocation, retention, and so forth) are considered based on their impact on management and frequency of occurrence, and each division appoints a person in charge of policy and countermeasure execution.

We also conduct mid-year progress checks at the end of the second quarter of each fiscal year to improve and effectively implement risk countermeasures.

Annual Risk Management Process

Related Link

Responding to natural disasters and accidents(BCP efforts)

Based on the Fuji Electric Disaster Prevention and Procedural Manual, all of Fuji Electric’s bases have developed disasterresponse systems and put comprehensive measures in place to ensure that structures and facilities are earthquake resistant. They also stockpile emergency goods, conduct regular drills, and take other preventive measures. In addition, we regularly conduct safety confirmation training for all employees to strengthen our disaster response capabilities.

We have formulated business continuity plans (BCPs) at the head office, factories, and area operations that serve as contact points with customers. We have also formulated Company-wide BCPs for our procurement sections, which manage our supply chain, and for IT sections, which manage our information systems. In addition, in fiscal 2021, we introduced our disaster prevention information system—which enables the automatic identification of domestic business partners located in regions affected by natural disasters—for customers as well, and we built a system that enables us to quickly understand the customer damage situation.

The Company has also been positively evaluated for its active business continuity efforts, and we have therefore acquired Resilience certification.

Resilience certification
Positively evaluated for active business continuity efforts, leading to the acquisition of Resilience certification

Procurement BCP

By identifying, assessing, and addressing supply chain risks, we aim to build stable material procurement and production systems over the medium and long terms.

Responding to natural disaster risks

The Company has introduced a disaster prevention information system that makes it possible to identify domestic business partners located in regions affected by earthquakes and regions for which emergency warnings have been issued. In fiscal 2021, as a result of utilizing data related to the approximately 9,000 bases of primary and secondary business partners registered to our disaster prevention information system, we were able to quickly confirm the situation when natural disasters (mainly earthquakes) occurred, thereby avoiding effects on the Company’s production activities. We will strive to more effectively visualize supply chain risks and expand the number of registered business partners.

Resilience certification
Conceptual image of the disaster prevention information system (when an earthquake occurs)

Efforts aimed at purchasing from multiple suppliers

In fiscal 2021, the supply was hindered as a result of various countries being locked down due to the impact of COVID-19, which resulted in the production of many industrial supply chains stopping and other problems. The Company has individually evaluated the risks associated with approximately 200,000 materials that could be purchased from multiple suppliers and is striving to achieve multi-sourcing for materials that have risk ratings of D and E. As a result, approximately 60% of its procured material items have been sourced from multiple vendors thus far. In addition, we are endeavoring to conclude long-term contracts in order to stably procure certain items. We will continue to consider items for which we have not yet achieved multi-sourcing.

* Multi-sourcing refers to a system in which materials are procured from multiple business partners.

Annual Risk Management Process

Efforts to improve quality

Promoting quality assurance activities

Under its Production Technology Committee—which is headed by the Corporate General Manager of the Production & Procurement Group and consists of Corporate General Managers of Business Groups—Fuji Electric strives to improve its production technologies and quality.

The High Reliability Working Group, a subordinate organization of the Production Technology Committee, aims to achieve a stable, uniform level of quality by formulating a High Reliability Activities Policy every year and then applying it to business divisions and factories to promote activities. Every year, the working group identifies all the serious complaints received and continually conducts recurrence prevention diagnosis to reassess the effectiveness of recurrence prevention measures. The working group also promptly reports any serious quality problem that has arisen to the Company’s President and COO, the Production Technology Committee members, and other stakeholders in accordance with the rules and regulations to share which risks are involved and quickly promote countermeasures.

In fiscal 2021, a working group was set up within the High Reliability Promotion Working Group in order to conduct activities intended to increase the quality soundness. In addition to the internal auditing we typically conduct, this working group diagnoses the health of our quality control system by having employees of different bases mutually check whether the quality data of each base satisfies external required specifications and whether there are any problems with the quality data creation process. In addition, these activities are connected to instructional activities, such as efforts to promote a mindset leading to increased quality soundness.

At our factories, we are also working on further improving the accuracy, reliability, and speed of our quality control by utilizing the IoT to promote the visualization of production, quality information, and traceability, expanding the range of equipment for which we can digitize or automate tests and inspections, and phasing in statistical quality control.

Training human resources to support quality

In an effort to thoroughly learn from past product defects and failures and to conduct activities that prevent such problems, we have continually held the Failure Utilization Workshop since fiscal 2006. At this workshop, we use case studies to clarify the true causes, backgrounds, and circumstances of failures, reflect on this information, derive lessons from it, share this with trainees as well as other in-house parties, and utilize the results for our daily work.

Information Security Measures

Implementation of information security measures

To properly manage confidential and personal information, Fuji Electric has formulated and is implementing policies and regulations related to information security. We have also established management systems at the Company as well as Group companies in Japan and overseas, and we provide regular training to all of our employees, manage access to operating sites and offices, implement Internet device and computer security measures, and conduct annual inspections regarding the status of efforts taken by each workplace.

In addition, to respond to increasingly diversified and sophisticated cyber security threats, we endeavor to strengthen our computer security incident response team and security operation center (CSIRT/SOC) , our monitoring of signs and information related to new cyber-attacks, and our information-system defense and attack monitoring functions.

External Certification Related to Information Security

At our bases as well, we strive to improve our countermeasures based on the requirements of our business partners, related industry organization guidelines, market trends, and other factors. At Group companies requiring high-level information security management, a total of five departments (in three companies) have acquired information security management system (ISMS) certification, and both the Company and three of its subsidiaries are granted the right to display "PrivacyMark" in the course of their business activities.

Companies that have acquired ISMS certification Fuji Electric Co., Ltd. (3 Divisions)
Fuji Electric IT Solutions Co., Ltd.
Fuji IT Co., Ltd.
Companies that PrivacyMark have been granted to Fuji Electric Co., Ltd.
Fuji Electric Information Technology Center Co., Ltd.
Fuji Electric IT Solutions Co., Ltd.
Fuji Office & Life Service Co., Ltd.

Implementing Information Security Audits

Fuji Electric conducts internal audits as a part of efforts to lift the level of information security on a continuous basis. In fiscal 2021, internal audits were conducted at all of Fuji Electric's departments and divisions as well as 29 consolidated subsidiaries in Japan and 29 consolidated subsidiaries overseas.

For issues identified by the internal audits, the divisions and companies will create improvement plans and all of Fuji Electric, including its overseas sites, will work to continually improve.

Information Security Education and Training

Fuji Electric conducts regular information security trainings and works to improve information security awareness and knowledge among all employees.

Information Security Education and Training in Fiscal 2021

Scope Fuji Electric Co., Ltd. Fuji Electric FA Components & Systems Co., Ltd.
Course Information security Information security
No. of participants 13,319 816

Other affiliated 58 companies in Japan and overseas conduct their own respective information security education and training.

Coordination with Information Security-Related Organizations

Fuji Electric participates in or coordinates with the following information security-related organizations.

  1. Nippon CSIRT Association

  2. Japan Computer Emergency Response Team Coordination Center

Measures to Prevent Infringement of Intellectual Property Rights

As part of our intellectual property activities, we employ a system to monitor other companies’ patents on a daily basis to prevent any inadvertent infringement of patents held by third parties.

We also conduct compliance training for employees as part of our effort to prevent infringements.

With respect to our own technologies, we actively acquire patent rights to protect our business. Fuji Electric continues to address overseas intellectual property issues and implement measures against counterfeit products to minimize business risks related to intellectual property.