Sustainability

Risk Management

Fuji Electric is strengthening its risk management to maximize corporate value and minimize the potential impact of risks.

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. In fiscal 2024, we conducted internal audits at 45 bases. No risks or inadequacies with the potential to seriously affect management were discovered.

Emergency Response

If an emergency arises due to a large-scale disaster, accident 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.
They consider policies and countermeasures in response to each risk (aversion, mitigation, relocation, retention, etc.) based on the impact on management and the frequency of occurrence, and implement these policies and countermeasures by appointing a person in charge of execution in each division or other unit.
We conduct an interim follow-up after the end of the second quarter, followed by an annual evaluation of risk countermeasures and the formulation of countermeasures for the next fiscal year.

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.

Responding to Natural Disasters and Accidents(BCP Efforts)

In order to resume and continue the important businesses within the required time, even when unforeseen situations such as large-scale disasters and accidents occur, we have formulated business continuity plans (BCPs) and are making efforts company-wide for continuous improvement, based on the Fuji Electric Business Continuity Management (BCM) Rules.
In addition to formulating BCPs at the head office, factories, and area operations, which serve as contact points with customers, we have comprehensively formulated BCPs for functions that are essential for business continuity, such as measures for early recovery and minimizing damage to IT systems, response to natural disaster risks in the procurement field, and multi-sourcing. Furthermore, we implement education and training based on the formulated BCPs and regularly evaluate the effectiveness of the BCPs and their management system once every six months at the “Company-wide BCM Promotion Meeting.” For BCPs formulated at factories and area operations, the Crisis Management Secretariat checks, assesses, and verifies whether the assumed scale of disasters and damage reflects the latest risks, as well as the appropriateness of target recovery times and strategies for business continuity. Through these efforts, we work to improve BCPs and strengthen our business continuity capabilities.
Furthermore, to ensure reliable execution of emergency response and business continuity measures, we hold “Business Continuity Seminars” for business manager-level employees and “Disaster Response Headquarters Drills” at each base on an ongoing basis. Four times a year, we also conduct drills that simulate a situation in which the head office’s disaster response headquarters is non-functional due to a large-scale earthquake.
In recognition of these proactive business continuity initiatives, we have obtained and renewed the “Resilience Certification” as an organization that contributes to national resilience.

Contributing to Business Continuity through Stable Procurement

We conduct risk assessments for the 200,000 parts and materials that we order on an ongoing basis and, after visualizing single-source items, are promoting multisourcing. In fiscal 2025, we achieved multi-sourcing for approximately 90% of our procured items (a fivepercentage- point increase from the previous fiscal year). In fiscal 2026, we will target a multi-sourcing rate of 95% and aim to complete a system for purchasing from multiple suppliers.

In Japan, we utilize a disaster prevention system that can identify business partners located in areas subject to special warnings for earthquakes or weather. We have established a system for quickly ascertaining whether our business partners have been affected and the impacts on our company, enabling us to promptly implement countermeasures. We have expanded the scope of registration of this Japan disaster prevention system to include secondary business partners, with approximately 13,000 sites registered in fiscal 2025.
To respond to disasters occurring overseas, we introduced a new disaster prevention system in fiscal 2025 and registered approximately 200 sites. In fiscal 2026, we will expand the scope of registration to include secondary business partners, aiming to further strengthen our global BCP, accelerate emergency response, and reinforce preventive risk measures.

Efforts to Improve Quality

As for quality, each year we formulate the High Reliability Activities Policy and apply it to each business division and factory to promote improvement activities. To enhance the degree of product refinement at the development and design stages, we incorporate plans to acquire new technologies into our design reviews, in addition to the technologies already possessed by our factories and development divisions. We also focus on changes and modifications that arise during design and, in addition to reviews by experts, utilize generative AI technology to identify omissions in analysis and verification, thereby reducing quality risks.
For process quality, we conduct internal quality audits at each factory to assess the management status of our manufacturing processes. In addition, we carry out mutual diagnoses by experts from other factories, and we reflect the results and findings in our frameworks and rules to improve our quality control standards.

Initiatives to Strengthen Project Management

We are committed to reducing the risks of incurring losses by strengthening project management in order to further enhance our corporate value through profit-oriented management.
To facilitate early identification of loss risks and predictive maintenance, we analyze the causes of major losses that have occurred and share them with relevant divisions within the company. We also implement measures to prevent recurrence and monitor such implementation.
In particular, we will continue efforts to enhance training at our overseas bases, leading to further strengthening of project management and an even greater reduction in the risk of losses.

Strengthening Product and Factory Security

Product security must be strengthened to comply with laws and regulations such as the EU Cyber Resilience Act (CRA). With digitalization, products and systems such as drive control systems, control equipment, and monitoring and control systems are increasingly connected to networks. Technologies (embedded security) and support that maintain a secure state throughout the entire product life cycle (design, development, shipment, operation, etc.) are becoming increasingly important.
To improve the quality and ensure a stable supply of our products and services, we have been promoting certification under the international standard for control system security, IEC*1 62443-4-1, since fiscal 2023. In April 2026, in addition to the five bases that had already obtained certification (the Tokyo Factory, Suzuka Factory, Kobe Factory, Hakko Electronics Co., Ltd., and Fuji Electric FA Components & Systems Co., Ltd.), the Tsukuba Factory also obtained certification. The Tokyo Factory also had its certification renewed in recognition of its continued operation of the “secure product development process.”
In fiscal 2026, we will establish a new Security Committee and launch organizations with functions for new product security incident response (PSIRT*2) and factory security incident response (FSIRT*3), in addition to the existing function for information security incident response (CSIRT*4). These organizations will coordinate their activities across organizational boundaries to appropriately address diverse cyber threats and minimize risks. Through these initiatives, we are working to improve the quality and ensure the stable supply of products and services delivered to customers.

Information Security Measures

To address the threat of cyberattacks, we are continuously strengthening cybersecurity and governance, including information management and operational structures.

Efforts to Maintain and Strengthen Information Security

To properly manage as confidential information all asset value such as management, commercial and technical information and personal information held by Fuji Electric, the Company has redeveloped and rolled out policies and regulations related to information security based on the National Institute of Standards and Technology (NIST) Cybersecurity Framework.
Furthermore, we have also established management systems at Fuji Electric 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 cyberattacks, and our information-system defense and attack monitoring functions.
At our bases as well, we strive to improve our information security countermeasures based on the requirements of our business partners, related industry organization guidelines, market trends, and other factors, and in businesses for which public certification of information security management is required, two departments and two subsidiaries of Fuji Electric Co., Ltd. have acquired information security management system (ISMS) certification. Furthermore, concerning personal information protection, Fuji Electric Co., Ltd. and two of its subsidiaries have acquired the Privacy Mark certification.

External Certification Related to Information Security

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 2025, internal audits were conducted at all of Fuji Electric's departments and divisions as well as 25 consolidated subsidiaries in Japan and 49 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.

Other affiliated 66 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.

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.