CORPORATE SOCIAL RESPONSIBILITY REPORT 2009

Corporate Philosophy, Principles of Conduct, The Seven Promises

Corporate Philosophy
The EIZO NANAO Group pushes the limits of technology to create products of new value,
inspires its customers through visual display systems and entertainment software,and strives for sound prosperity while coexisting in harmony with the environment and society.

Principles of Conduct
1. We supply superior products and services by focusing on quality and following scientific operation procedures.
2. We act as an international corporation with a global outlook and mindset.
3. We aim to grow in a harmonious manner by building strong bonds of trust with our stakeholders(shareholders, suppliers, employees, and the local community).
4. We respect and comply with both the letter and the spirit of the law as a good corporate citizen.
5. We cultivate a broadminded corporate culture, establishing a vibrant workplace.

The Seven Promises

Toward Fulfilling Our Corporate Social Responsibility

We established the Eizo Nanao Group Code of Conduct as a statement of our standards for fulfilling
our corporate social responsibility.
The Corporate Philosophy and Principles of Conduct stated above are included in the Eizo Nanao Group Code of Conduct,
which serves as a foundation for Eizo Nanao on which our promises to stakeholders stand.
From this code, the Seven Promises of Eizo have been derived.

Seven Promises

Seven Promises

7

1

We will strive to coexist inharmony with theenvironment and society
as a globally responsible
corporation.

We will inspire customers
by creating and offering
products of new value.

P24

Seven Promises

P08

Seven Promises

6

2

We will value a
broadminded
corporate culture.

Principles
of Conduct

Corporate
Philosophy

5

P21

Principles
of Conduct

1

We will supply superior
products and services
that reflect respect for
the environment as partand parcel of quality.

P10

Seven Promises

Principles
of Conduct

4

5
We will strictly
respect and comply withboth the letter andspirit of the law.

P19

Principles
of Conduct2

Principles
of Conduct

Seven Promises

3

3

Seven Promises

4

We will pursue
sound development
as an international
corporation.

P14

We will seek to build andmaintain strong bonds oftrust with stakeholders.

P15

CSR REPORT 200902

Contents

Corporate Philosophy, Principles of Conduct, The Seven Promises

02

Contents
President’s Message

03

Corporate Information
Our Products

06

04
07

Creating New Value

Seven Promise

1・We will inspire customers by creating and offering products of new value.

08

・High-Precision Monitors Spark the Evolution of Medical Practice09

Product Environmental Considerations

Seven Promise

2・We will supply superior products and services that reflect respect for the environment as part and parcel of quality.

10

・Eizo’s Original Eco Label—Eizo Eco Products

11

・Compliance with Environmental Labeling Standards and Legal Requirements

12・Eizo’s Quality Assurance System

13Sound Development as an International Corporation

Seven Promise

・We will pursue sound development as an international corporation.

Strong Bonds of Trust with Stakeholders

3
14

Seven Promise

4・Relationships with Customers

15

・Relationships with Shareholders

16

・Relationships with Suppliers

17

・Relationships with the local community

18

Strict respect and compliance with both the Letter and Spirit of the Law

Seven Promise

5・Compliance and Corporate Governance

19

・Risk Management

20

Broadminded Corporate Culture

Seven Promise

6・Laying the Foundations for a Motivating Workplace

21

・Promoting Work-Life Balance

22

・Human Resource Development Efforts and Securing Safety and Health

23

Environmental Management

Seven Promise

7

・We will strive to coexist in harmony with the environment and society as a globally responsible corporation.

24

・Overall Environmental Impact of Business Activities

25

・Fiscal 2008 Environmental Targets/Performance Report

26

・Fiscal 2009 Environmental Targets

27

・Environmental Management System and Environmental Risk Management

28

・Efforts to Prevent Global Warming and Resource Conservation

29

・Reducing Waste

30

・Collection and Recycling of Used Products (For Customers in Japan)

31

Appendix・Social and Environmental Timeline

32

・GRI Index

33

Editorial Policy for the CSR Report●

Editorial Policy: We have compiled an explanation on topics we consider importantand a report on the impact and effects of our business activities on society and theenvironment, using the GRI Guidelines as reference.

●

Scope of the report: Eizo Nanao Group
Exceptions to the scope of coverage are explained in the notes to the relevant sections.

●

Period covered: April 1, 2008 to March 31, 2009●

Issue date: August 2009●

Issue date of previous report: July 2008●

Issue date of next report: August 2010●

Contact information: Eizo Nanao Corporation General Affairs Department,●

Changes from previous report: We added more information on the social aspects of
our activities, derived from our corporate philosophy and action guidelines theSeven Promises, structured our report based on each promise, and changed thetitle of the report from the Social and Environmental Report to the CSR Report.

Tel: +81-76-274-2406

CSR REPORT 200903

President’s Message

Doing the right thing comes naturally to Eizo
—This is the essence of our Seven Promises
The Eizo Nanao Group began publishing Environmental Reports in 2001 and a Social and Environmental Report in 2005. Now
having updated this publication into a CSR (Corporate Social Responsibility) Report, we have expanded its scope in responseto changes in the social environment in which the company operates. The report contains subjects we have consistently
upheld through our corporate philosophy and action guidelines and have put into practice.
I would like to share my thoughts on these topics by explaining them from the standpoint of our Seven Promises.

A Corporate Culture of Offering Only theBest Products in the World
Our first promise is to inspire customers by creating and offering
products of new value. This is synonymous with our corporate culture ofproviding only the world’s best products to the market.
I believe a brand represents a promise to users. We have built Eizo into a
global brand with the promise of outstanding picture quality, highreliability and durability. This is a promise we must keep by all means.
Out of this promise, we publicly announced a product defect in 2002 withthe offer of free repairs, despite the risk of incurring a considerable loss.
Some users told us they would typically expect to pay for the repair ofsuch a defect. However, we made the decision because we pride
ourselves in creating the best products in the world. Keeping in line with
our fifth promise of strict respect and compliance with both the letter andspirit of the law, a prerequisite for any company, our announcement went
beyond this obligation as an action deeply rooted in our corporate
culture.

aspects of CRT monitors, as well as for incorporating these standards into
all our products.
Our own Eizo Eco Products standard, of which TCO served as thebenchmark, has been continuously revised in line with European
environmental standards, the vanguard in environmental policies, andwe therefore consistently maintained more stringent requirements thanother standards generally applied.
In addition, we consider the environment in our production sites andoffice operations. As stated in our seventh promise, we will strive tocoexist in harmony with the environment and society as a globally
responsible corporation; this is our promise to remain steadfast in ourefforts to protect the environment throughout our operations, based on
the awareness that environmental preservation is a goal shared by all
humankind.

Initiatives for Respecting the Diverse Cultures andTruly Environmentally Sound Products
As expressed in our second promise, Eizo is unique in the sense that we
consider respect for the environment as part and parcel of quality.
It has been popular for some time to tout respect for the environment,
but I question the superficial concept that products are environmentallysound simply because they were made from environmentally friendly
materials. At Eizo, we share the belief that products made to be used overa long period demonstrate significant consideration for the environment
from the perspectives of conserving resources and reducing waste.
Naturally, we also emphasize environmentally sound product specifications and were among the first to do so. The Eizo brand was firstrecognized in Europe in the 1990s in the days before CRT monitors werere-imported to Japan. The recognition we enjoyed in Europe was as muchdue to our level of environmental consideration as for outstanding
picture quality and reliability. We were highly respected as the firstcompany in the world to comply with TCO, the Swedish standard with themost demanding requirements for electromagnetic waves and other

Customs of Each Country
Our third promise is to pursue sound development as an international
corporation. I have learned through my own experiences working
overseas that it is counter-productive for a Japanese company operating
abroad to blindly enforce the policies and norms of the head officelocated in Japan. A truly international company can only be realized bydemonstrating respect for the cultures and customs of each country andby forging relationships of mutual trust with partner companies.
While we operate through a global sales network, we do not pursue a
uniform way of doing business by, for example, establishing a single
European headquarters. We operate instead through a one-country,
one-distributor system. Europe may in some ways operate as a single
region, but local cultures and customs, values and approaches to work
vary from country to country. We need this system to work in accord withdiversity. And we maintain a commitment to hiring locally instead ofdispatching top management from Japan. This is also based on the ideathat local management requires local people.

CSR REPORT 200904

President’s Message

User Feedback is the Source for Technological Innovation
The Relationship with Suppliers is the Cornerstone of
Stable Supply
Our fourth promise is to build and maintain strong bonds of trust withstakeholders. Eizo users tend to have strong preferences and highexpectations. Their demands are tough precisely because they are
enthusiastic about Eizo, and we strive to respond to them. While we may
have been unable to meet every single demand, our efforts to respond to
as many requests as possible have developed Eizo into the brand it istoday. We are firmly resolved to remain true to this stance.
Eizo considers suppliers as partners. We endeavor to maintain mutuallysatisfactory relationships with the goal of developing a foundation oftrust so that stable supply is secured even during times of limited
availability.
With respect to our relationship with the local community, we play asignificant role behind the scenes in local activities, since our headquarters and factories are concentrated in Ishikawa Prefecture. However,I believe Eizo’s greatest corporate contribution lies in making local people
proud that we are there.

Creating an Open Atmosphere—Removing Neckties and Getting Out of My Office
Our sixth promise is to create a broadminded corporate culture. This issynonymous with my own personality and thinking, and to me, a natural
course of action more than a promise. In Japan, employees tend toremain silent even when their supervisor makes a mistake and typicallywill not publicly acknowledge the errors of any division apart from theirown. I address these tendencies head on. The reason behind my decision
to adopt a casual dress policy and spending as much time as possible
working outside my office and among other employees is to encourage alively exchange that transcends job positions and divisions. So instead ofrequiring employees to waste energy knocking on the president’s officedoor, they can directly approach me whenever I’m working with them.
I have a deep love for our company, our brand and our employees. I
cannot see how anyone can manage a company without such love.
Employees too should love their products and their company—that iswhat it all comes down to. I am convinced that as long as managers andemployees work hand in hand, we will continuously strengthen thecompany and fulfill our Seven Promises.

June 2009

Yoshitaka Jitsumori
President, Eizo Nanao Corporation

CSR REPORT 200905

Corporate Information

OutlineCompany Name:

Eizo Nanao Corporation

Business Activities:

Development, design, manufacture and sales of imaging systems including computer monitors,
amusement applications and LCD TVs, and peripheral products

Established:

March 6, 1968

President:

Yoshitaka Jitsumori

Address of Headquarters:

153 Shimokashiwano, Hakusan, Ishikawa 924-8566, Japan

Group Sales:¥74.5 billion (as of March 31, 2009)

Employees:

1,460 (Consolidated, as of March 31, 2009)

Group Companies:

Seven domestic consolidated subsidiaries and six overseas consolidated subsidiaries

Performance Results
Financial Information (consolidated)
Trends in Net Sales

Trends in Operating Income
100 million

100 million
1200

119

120

117

103
1000

956

910

850

100

893

84

800

745

80

600

60

400

40

200

20

0

42

0
FY 2004

FY 2005

FY 2006

FY 2007

FY 2008

Sales and Percentage Breakdown by Product Category

FY 2004

FY 2005

FY 2006

FY 2007

FY 2008

Sales and Percentage Breakdown by Region

Other

8.7％

¥6.4 billion

Europe28.3％
Monitors foramusement
applications

34.9%¥26.0 billion¥21.0 billion

Consolidated
net sales¥74.5 billion

Computermonitors

56.4％¥42.0 billion

Japan

65.0％
¥48.4 billion

Consolidated
net sales¥74.5 billion

North America

4.3％¥3.1 billion
Other

2.4％
¥1.8 billion

CSR REPORT 200906

Our Products

Computer Monitors

Monitors for Amusement Applications

These computer monitors are designed and manufactured from theperspective of the end-user and feature superior picture quality as well
as a variety of functions. While we primarily focus on the most popular
standard monitors, we also offer specialized monitors for medical andgraphics applications.

We design and manufacture LCD monitors installed in pachinkoequipment. These models combine the Group’s hardware technology,
gained through the design and manufacture of computer monitors, withamusement software development technology to offer realistic expression, stories with astrong gaming feel, and lovable characterstoward our goal of delivering products that
become customer favorites year after year.

General Use Monitors
Computer monitors that are widely used in offices, schools,
public facilities and households. These core Eizo products
lay the foundation for our specialized monitors.

Monitors for Medical Applications (Monitor Solutions)
A variety of solutions includes monitors for displaying
electronic medical records and images from medical
equipment, and quality control systems for monitors
installed at hospitals.

Monitors for Graphics Applications
Color management LCD monitors that support the high-quality color reproduction required by professionals suchas designers, photographers and computer graphics artists.

Monitors for Air Traffic Control Applications
Our monitors are relied upon in air traffic safety for stable,
precise display performance and high-definition graphics
boards.

Other Products
A broad range of peripheral products incorporates elemental technologies, such as computerized techniques and image processing that wehave built up through the development of computer monitors.

PC Mouse with Remote Control Function
The C@T-one combines the functionality of a wireless PC
mouse and a TV remote control to eliminate the hassle ofshifting between control devices for those who use their TVs
and PCs simultaneously.

Multifunctional LCD Monitors with Flexible Arm
Monitors mounted to flexible arms allow users to easily
reposition them for comfortably viewing TV or PC screens
while lying in a relaxed position, such as in a hospital bed.

High-Definition Graphics Boards
Monitors for air traffic control require specialized
high-definition display capabilities; we provide dedicatedgraphics boards for transmitting data as required by thisapplication.

Game Software
Monitors for Industrial Applications
Optimum solutions for diverse industrial needs includeunits for FA equipment, security control, and kiosk terminals.

We create and manufacture a colorful variety of gamesoftware by developing new genre games and by adapting
our titles that are popular in the Pachinko Market as gamesoftware for home use.

AwardsHome Entertainment Monitors
Fully HD-capable LCD monitors and LCD TVs are ideal for
displaying moving pictures such as digital videos and DVDs.

Color Vision deficiency Simulation Monitors
Color Vision deficiency simulation functions support Color
Universal Design.

May 2008
Color Management LCD Monitor ColorEdge Series Wins Camera
Journal Press Club Award at Camera Grand Prix 2008
Eizo was recognized by the Camera Journal Press Club for supporting the work ofprofessionals with high-quality displays and for maintaining a steadfast development stance and ongoing quality-related efforts despite our extensive product line.
This marked the first time an award was received for an LCD monitor at the Camera
Grand Prix.

October 2008
Four Eizo Brand Products Receive Good Design Award 2008
Eizo brand products have received the Good Design Award for 13 consecutive years.
In fiscal 2008, Eizo received awards for its integrated wireless PC mouse/remotecontrol, LCD TV with flexible arm, and color management LCD monitors in the 22.0and 29.8-inch classes.

CSR REPORT 200907

Creating New Value

Seven
Promises 1

We will inspire customers by creating
and offering products of new value.
Eizo’s computer monitors are used in homes and offices around the world.
The history of our products began with support from design professionals. Since then we have continued to create better products by responding to feedback from these users. As a result, we are providing products today for medical applications and other specialized fields such as air
traffic control, which require highly accurate display capabilities. Each field requires different specifications and functions.
Eizo not only listens to customers’ requests in each field and responds to them, but also creates and offers a new set of values that reaches
farther ahead in our promise to continue turning out products that are valuable to customers.

Where Design is Created

On the Frontlines of Finance

Design and photography demand extremely accurate color
reproduction. Eizo possesses an established reputation for excellent
color reproduction and enjoys strong support from creative professionals such as graphic designers and photographers. We broadly
support their work by achieving
the high level of display functionality they require and by developing and offering monitors
compatible with high-definition
hardware calibration for constantly
maintaining accurate coloring.

High-quality display and reliability are required on the frontlines offinance to keep pace with constantly changing exchange rates andthe need to make instant decisions. Eizo monitors have been widely
installed to meet these needs. And for trading room environmentswith multiple, side-by-side
monitors, we offer products withthinner screen rims that do not
impede the line of sight, thereby
enhancing operational efficiency.

Enriching Home Use

Eizo’s Special LCD TV

A broad range of digital devices such as digital cameras and videos
are available today for home use. To the meet the demands for beautiful display of still photographic images and high-quality playback ofmoving images, Eizo offers new approaches for household digital
environments by equipping monitors with a wide variety of connectors that enable users to hook up the latest digital devices.

Television has become an essential household fixture, and therefore
Eizo offers LCD TVs with a unique concept: realizing the “natural
comfort” of superior picture quality through natural visual expression;
adding an enriched, more realistic sensation andimpact to the sound that is integrated with thevisual image; and a functional design with a distinctive presence that stands out from the background.
We provide fresh ways to enjoy television and visualenvironments through our very special LCD TV,
which seamlessly unifies the three elements of visual
image, sound and design.

Supporting Universal Design
Universal design is a type of design that can be readily understood and used by anyone. Eizo
offers color vision deficiency simulation monitors that supports universal design from theperspective of color. Our monitor features a mode that simulates the display of colors as seen
by persons who are color blind, enabling users to switch modes during the course of design
to efficiently confirm the display of colors from a universal design perspective.

CSR REPORT 200908

Creating New Values

High-Precision Monitors Spark the Evolution of Medical Practice
In conventional practice, X-ray and CT images were printed on film
for diagnostic review. However, just as in the field of photography,
an increasing number of medical institutions have recently
installed filmless environments in which medical images are stored
as digital data and viewed on monitors.
Diagnostic imaging is critical for patient health and well-being, andin the past, film played an important role for its ability to express
subtle contrast. Accurate diagnosis in a digital environment
therefore requires high-precision monitors that display images

comparable to those captured on film.
Eizo delivers monitor solutions with the high-precision imagery
and outstanding reliability required by the medical field, already in
use at many medical institutions.
We will continue to provide new advances for the medical field that
benefit both patients and medical professionals through monitor
solutions based on our own, leading-edge technology.

Representative Installation

previously captured two images on film for CT breast scans, one forthe mediastinum (area that includes the heart) and the other forthe lungs. A digital system, however, allows us to examine the stateof the lungs and bones from a mediastinum image alone by
applying a simple process to the digital image. In other words, we
can gather more information from a single data set,” Mr. Chiba said.
The filmless environment has helped improve the efficiency of theexamination process, in turn reducing waiting time for patients.

Reducing the Burden on Patients

Yoshihiro Chiba,
medical radiological technologist, Ishinomaki Red Cross Hospital

Digitization of Medical PracticeIn 2006, Ishinomaki Red Cross Hospital installed a diagnostic
station incorporating overall diagnostic imaging (radiation,
endoscope, echo, fundus examination) and introduced a filmless
environment using Eizo’s color monitors and RadiNET Pro network
quality control system. It has been used for diagnosis based on
digital images displayed on the monitors.

Enhanced Examination Efficiency in a
Filmless Environment“With digital images we can adjust contrast—that is the advantage
of monitor-based diagnosis,” said Yoshihiro Chiba, a medical
radiological technologist at the hospital. “For example, we

Patients find color monitors helpful for
facilitating understanding in explanations.

Digital imaging also facilitates information sharing, and since data
can be retrieved anywhere inside the hospital by accessing theserver, patients and nurses no longer need to carry film from one
clinical section to another. “It is difficult for patients with arm or leg
disabilities to carry film to the examination room. The burden is nolonger there because they don’t have to carry anything,” noted Mr.
Chiba. And from the perspective of medical administrators, digitization has eliminated the need for ordering and storage of film.

Contributing to Post-Installation Quality Control
Just as with film and the maintenance and management required
for laser imagers, a filmless environment requires quality control
over multiple monitors.
Eizo’s RadiNET Pro is a network-based system that integrates thecontrol of several monitors. Post-installation maintenance had
been a major issue for Mr. Chiba, who says he found the system’s
automatic response to minor image degradation particularly
appealing.

Touch-panel monitors that visually confirm
operations are easy to use.

With digital images, a wide variety of information
can be gleaned simply by changing viewing conditions.

CSR REPORT 200909

Product Environmental Considerations

Seven
Promises 2

We will supply superior products and services that reflect
respect for the environment as part and parcel of quality.
Based on our awareness that our products have an impact on the environment and our pledge to consider respect for the environment as anintegral part of product quality, we have continued to lead the industry in our efforts to reduce the environmental impact of our products.
An environmentally friendly product must, of course, use raw materials and components that are themselves environmentally sound. At thesame time, we also believe it is important for a product to be used over a long period of time.
While we vigorously work to ensure that our products comply with environmental standards of third-party organizations, we have also set ourown environmental compliance standards to guide our product development.
We believe the promise of the Eizo brand consists of providing products that customers can confidently use for years to come, and we conduct
rigorous quality control from development and manufacturing to after-sales service in order to support this promise.

Basic Product Development Sequence
In product development, we endeavor to enhance the environmentallysound quality of our products, including compliance with domestic andoverseas legal requirements and standards as well as due consideration
for industry trends and social conditions. In addition, each product isevaluated against our own Environmental Compliance Standards todetermine how well they measure up. The results of this assessment arelinked to our system for developing, implementing and meeting

Environmental Goals, Targets and Standards
Standards

Regulations

Industry trends

Annual environmental goals and targets
Environmental compliance standards
Investigation of hazardous substances
Application for next fiscal year

EcoView—Design Concept that Reduces
Burdens on the Environment and the User
Eizo’s environmental design and ergonomic considerations are
expressed by our EcoView concept, which, in turn, is reflected in
our products. EcoView products include functions such as
automatic optimization of monitor brightness to match ambient
illumination and quick checks on current power saving levels. In
addition, products launched in April 2009 incorporate a presence
sensor that sets the monitor to power save mode
when the user is awayfrom his or her desk.

companywide environmental targets for each fiscal year. A key theme isensuring that products are environmentally sound under the “Eizo Eco
Product 200X program” (200X refers to the year established), which is also
connected to output. In line with our corporate stance of steadfastly
maintaining environmental vigilance, we annually revise the Environmental Compliance Standards to reflect changes in laws, regulations andindustry trends.

Product Planning
Product planning (Eizo Eco Products established)
Product design planning
Product environmental assessment (evaluation of prototypes)

Application
for new
products

Product improvements
Finalization of products

1. Auto EcoView function reduces eye strain and power consumption
The sensor makes automatic adjustments by detecting the brightness ofthe surrounding environment, thereby reducing strain on the user’s eyes
and preventing a decline in work efficiency, while also reducing power
consumption.
2. EcoView Index function quickly confirms power-saving levels
An indicator displays the level of power saving in relation to the brightness setting, enabling the user to constantly check and remain aware ofcurrent power saving levels, thus encouraging power conservation.
3. EcoView Sense function ensures power conservation
The presence sensor automatically switches the monitor to power savemode when it detects the user has moved away from his or her desk. The
monitor’s screen automatically turns back on when the user returns,
thereby conserving electricity without requiring manual operation.

CSR REPORT 200910

Product Environmental Considerations

Eizo’s Original Eco Label—Eizo Eco Products
The Eizo Nanao Group has sought to realize high quality and reliability inproduct development while at the same time pursuing environmentallysound design. Eizo Eco Products (hereafter EEP) is a voluntary certification system launched in 2002. EEP was established to keep pace with
continuously evolving environmental needs and reflect our philosophyof thoroughly considering the environment in product design to further
advance our products and corporate system. To that end, EEP not only
satisfies existing environmental labeling criteria established and certified
by third-party institutions (International ENERGY STAR Program,Sweden’s TCO, Japanese Law on Promoting Green Purchasing, PC Green
Label, etc.), but also incorporates various industry guidelines and market
requirements as well as our own standards.

The latest version, Eizo Eco Products 2009, maintains compliance withprevious versions EEP2002 (established October 2002), EEP2004(established October 2003), and EEP2006 (established May 2006), and isreinforced with more stringent criteria such as lowered power consumption and the visual display of environment-related information.

Eizo Eco Products Certification Standard
In addition to complying with items laid out by third-party institutions in Japan and abroad (TCO’03, International ENERGY STAR Program, PC Green Label, etc.),
Eizo Eco Products require compliance with self-designated items such as those listed below.

Item

EEP2009

EEP2006

EEP2004

Power consumption at 0 watts when turned off (LCD monitors)

1

Power consumption at 0.1 watt or less when turned off (LCD TV)
Power consumption at 1 watt or less when turned off

2

Power consumption at 1.5 watts or less in power save mode (LCD monitors)
Power consumption at 2 watts or less in power save mode (LCD monitors)
Power consumption meets requirements under the International ENERGY STAR Program Ver. 4.1

3

during ordinary use (LCD monitors)
Annual power consumption in compliance with levels stipulated under the
Law on Promoting Green Purchasing (FY 2008) (LCD TV)

45

Use of recycled plastic
User’s manual made of chlorine-free recycled paper or chlorine-free certified
paper under forest certification system

6

Use of soy ink in printed materials accompanying product7

Subject to an internal product environmental assessment

8

Use of plastics made from plant-derived raw materials

9

Use of recycled styrofoam or paper as packaging cushioning materials

10Compliance with JEITA personal computer VOC guidelines (applied to all products including LCD TVs)*

Compliance with RoHS Directives (J-Moss Green Mark may be applied as analternative for LCD TVs for the Japanese market)

11

Use (or partial use) of chrome-free steel platesUse (or partial use) of lead-free solder
Use of lead-free wires in external (supplied) cables

12

Disclosure via the website of product eco profile (environment-related information)*Excludes products for overseas markets

CSR REPORT 200911

Product Environmental Considerations

Compliance with Environmental LabelingStandards and Legal Requirements
We not only observe the legal requirements of Japan and other countries
but also comply with environmental labeling standards and proactively
develop environmentally sound products. Furthermore, we not only
ensure the compliance of our own products; we also actively participate
in the development of standards as part of our role in reducing environmental impact as much as possible for entire ranges of products,
including those made by other companies.
TCO Display 5.0, the next generation standard to TCO’03 and TCO’06, oneof the most widely recognized standards of the world, was announced infiscal 2008 as well as ENERGY STAR 5.0. Eizo involvement in thesestandards began before 2008. While the requirements of both thesestandards are extremely stringent, we believe it is our mission to continue
developing products that are in full compliance.

RoHS Directive and WEEE Directive
The RoHS Directive is a European regulation restricting the use of hazardous substances that has been enforced within the European Union since
July 2006. The directive covers electrical and electronic equipment andrestricts or bans the use of six substances that are harmful to the global
environment or human health: lead, mercury, cadmium, hexavalentchromium, PBB and PBDE. Products that do not comply with the RoHS
Directive cannot be sold in Europe. We began the switchover in 2005 andachieved complete compliance in all products by May 2006.
The WEEE Directive went into effect in the EU in August 2005 toward
reducing environmental impact through promotion of the three Rs of
Reduce, Reuse, Recycling for used electrical and electronic equipment.
We have responded by displaying recovery and recycling symbol logos,
providing information on disassembly and hazardous substances forrecycling facilities, and developing a system for recovery and recycling.

TCO
Efforts to make our company’s products more environmentally friendly
have proceeded largely in response to the evolution of environmental
standards in Europe, starting with ensuring compliance with the TCO’95
standard introduced in Sweden. This standard was subsequently
upgraded to TCO’99 followed by TCO’03 and by TCO Display 5.0, thecurrent version. In addition to environmental items, this standard also
covers safety, electromagnetic radiation, and ergonomics, giving it acomprehensive character. Eizo has consistently participated in theformulation of TCO standards, and even as we scrutinized the content of
the standards to ensure progressive and effective application, Eizo
became the first in the world to receive certification for TCO Display 5.0 in
April 2009. Nearly every monitor we produce is TCO compliant. In theyears ahead we will continue to recognize the importance of meeting thisstandard in the development of new products.

EPEAT
EPEAT is a comprehensive evaluation standard for the environmental
impact of personal computers and peripheral equipment. It has been
applied by the related institution of the U.S. Environmental Protection
Agency since 2006. EPEAT consists of 23 mandatory and 28 optional
requirements covering a broad range of items including reduction of
hazardous substances, recyclable design, long-life design, recovery andrecycling, and corporate activities. Products are rated Gold, Silver orBronze depending on the level of compliance with the optional requirements. Eizo has several monitors that are rated either EPEAT Gold or
Silver.

ENERGY STARThe ENERGY STAR Program was launched by the U.S. Environmental
Protection Agency in 1993 to help reduce the power consumption ofcomputers and peripheral devices. The International ENERGY STAR
Program was adopted in Japan in 1995 on the basis of an agreement with
the U.S. government.
We have participated in this program from the very beginning, and since
becoming the first registered monitor manufacturer, we have had
virtually all subsequent products registered under the program. ENERGYSTAR Ver. 5.0 standards, which update the current Ver. 4.1, wereannounced in March 2009. While the new standards
are even more stringent, we are proceeding withthe development of fully compliant products.

PC Green LabelThis environmental labeling program is administered by the PC3R
Promotion Association. The program is based on three concepts: (1)environmentally sound design and manufacturing; (2) post-use recovery
and recycling of products; and (3) environmental information disclosure.
Eizo has participated in revising the program as a member of the governing expert committee. We have also
actively sought certification for our
FlexScan and ColorEdge series andintend to maintain this policy.

CSR REPORT 200912

Product Environmental Considerations

Eizo’s Quality Assurance System
Quality assurance ensures that customers can safely purchase our
products and use them confidently over a long period of time andrepresents a core promise of the Eizo brand. Based on this stance, we
conduct thorough quality control from development and manufacturing
to after-sales service, and continuously seek to improve our system andprocesses.

Manufacturing Process
We undertake the entire production process from assembly of substrates
to manufacturing of the final finished product at our own factories under
stringent quality control.

Development Process
We develop and evaluate our products from the perspective of ourcustomers from every conceivable viewpoint, starting with reliability andsafety and including environmental compliance, energy saving, EMC
performance, ergonomics, usability and service. In addition, we perform
product longevity testing to be certain of how our products will performover many years.

Conducting EMC performance tests in our own anechoic facilities

After-sales Service

Longevity testing

Under our system for ensuring that customers can use our products safely
and for a long time, we respond to all requests for after-sales service at theEizo Support Network Corporation located within our headquarters.
Feedback is incorporated into future product development.

Confidence in Our Quality—Five-Year Warranty
In 2003, we became the first in the industry to offer a five-year
manufacturer’s limited warranty. We repair LCD monitors*1 free ofcost over this five-year period*2, reflecting our confidence in thequality of our products based on stringent quality control.
We believe that providing support to ensure continued safe usefrom the time of purchasing to any necessary repairs is an intrinsic
component of our products.

*1 Some exceptions apply, such as monitors for air traffic control.
*2 Limited to 30,000 hours of use.

LCD panels are guaranteed for three years.

CSR REPORT 200913

Sound Development as an International Corporation

Seven
Promises 3

We will pursue sound development as aninternational corporation.
Our headquarters in Japan, Group companies in Japan, Europe and the United States, and distributors in various countries that serve as the
backbone of our worldwide sales, maintain strong mutual relationships to support customers and achieve sound corporate growth byensuring the delivery and ongoing worry-free use of our products worldwide.
As an international corporation, we respect the cultures and values of diverse countries across the world in choosing the best solution, and do
not try to force a Japanese way of thinking.
Based on the resulting partnerships, we listen to what customers in each country have to say and consistently respond to their requests.
We believe this is the pathway to sound corporate growth.

One Country/Territory, One Distributor System

Eizo United (Distributors Meeting)

For Eizo, powerful partnerships between our headquarters in Japan,
Group companies in Japan, Europe and the United States, anddistributors in various countries, constitute the backbone of soundgrowth as an international corporation. In our overseas sales, we haveadopted a one country/territory, one distributor system in which asingle subsidiary or distributor is responsible for the sales of a country
or territory. This unique system also enables us to accurately discern
customer needs in each country or territory and share information
more smoothly.
Having sales handled by distributors who fully understand the culture
and values of their respective regions makes it possible for us toappropriately introduce and offer products in each country or
territory.

Our solid overseas growth is supported by the deep understanding and care distributors have for our products as well as
their own passion. Once a year, we convene the Eizo Distributors Meeting, gathering distributors from around the world toshare information and to recognize them for their annual sales
performance. The event also affords a valuable opportunity forforging friendships and encouraging mutual growth among
distributors.

Germany

Avnet Technology
Solutions GmbHGermany

EIZO GmbHGermany

EIZO Technologies
GmbH

Czech

Avnet s.r.o

India

RSG Solutions (P) Ltd

SwedenThailand

Eizo Europe AB

SYNNEX (THAILAND)
PUBLIC COMPANY LIMITED

PolandALSTOR Sp.j.

Austria
Netherlands

Avnet Technology
Solutions B.V.

Avnet Technology Solutions
Handelsgesellschaft m.b.H.

Belgium

Avnet Visual +Data Solutions

UK

Avnet Technology
Solutions Ltd.

FranceFeeder S.A.S

USA

Eizo Nanao Technologies Inc.

Switzerland
Eizo Nanao AG

JAPANEizo Nanao Corporation (Headquarters)

USA

Tech Source, Inc.

Korea

d.gen, Inc

TaiwanSpain

GrandWave International Corporation

Aryan
Comunicaciones s.a.

BrazilIBT Indústria Brasileirade Televisores S/A.

China

Synnex Technology International (HK) Limited

UAE

International Distribution
Network s.a.l

Italy

Avnet Technology
Solutions Srl

Singapore

POWERMATIC Distribution Pte Ltd.

Lebanon

GM Habis sal.

GreeceMalaysia

MICROTEC A. E.

PM Distribution Sdn Bhd

IsraelAustralia

ARCADIA Corporation Pty. Ltd.

Karat Israel Ltd.

CyprusK&D Computer Systems Ltd

Eizo Group’s Overseas Sales Network
Our products are well received around the world, with current sales in more than 60 countries andterritories through Group companies, including four in Europe and two in the United States, along with 27 global distributors.

Headquarters
Group companies
Distributors
Countries where
Eizo products
are sold

CSR REPORT 200914

Strong Bonds of Trust with Stakeholders

Seven
Promises 4 -1

We will seek to build and maintain strong bonds oftrust with stakeholders.
—Relationships with Customers
Eizo strives to establish direct communication with customers through various points of connection to comprehensively answer questions
and inquiries, and to respond to customer requests and feedback.

Feedback system for all types of customer input

EIZO Contact Center

Customers
EIZO Galleria
EIZO Direct

Sales companies/Retail stores

Eizo Nanao
Corporation

Receiving questions and inquiries about our products

Check, experience and ask questions

EIZO Contact Center

EIZO Galleria* Showroom* Customer liaison

Eizo Contact Centers have been set up as a convenient way for customers
to communicate with the company. These centers provide answers toinquiries related to product specifications and operating procedures,product purchasing and technical questions through telephone, e-mailand fax. Inquiries and requests received from customers are shared byrelevant departments within the company, and we strive to incorporate
this information into product development as well as information
provision to customers.

Product flow

Customer
input

Eizo Gallerias have been set up in four locations in Japan as spaces for
exhibiting LCD televisions and LCD monitors so that customers can see
the actual products and review their performance and functionality. Staff
are always on hand to explain the products and respond to questions.
We also conduct seminars on color matching and other topics to provide
information that helps users better utilize their personal computers andEizo products at work or at home.

Number of calls
Number of calls
25,00025,41522,92815,00022,027

18,91620,00015,12910,0005,000

Direct from Eizo to customers
0

FY 2003 FY 2004 FY 2005 FY 2006 FY 2007

Breakdown of call categories
FY 2008

14.7％
Other

9.7％
Specifications
10.8％

Product compatibility

11.8％

Orders/sales/
optional service related

21.7％
Functions/operation procedures

17.1％

Consulting/product overview

14.4％
Troubleshooting/guarantee/repairs

EIZO Direct * Online shopping
Customers can enjoy membersonly special discounts and purchaseexclusive products through ourdirectly-operated online shoppingsite Eizo Direct, which offers avariety of services designed withthe customer in mind, including
home setup, collection of usedproducts and installment payments
at specially reduced interest rates.

*These services are currently only available for customers in Japan.

CSR REPORT 200915

Strong Bonds of Trust with Stakeholders

Seven
Promises 4 -2

We will seek to build and maintain strong bonds of trustwith stakeholders.
—Relationships with Shareholders
Eizo seeks to earn and maintain the trust of shareholders and investors, and conducts investor relations activities based on the principle
of providing fair and accurate information on management policies, business strategies and financial performance to all stakeholders.

Basic Policy on Information Disclosure

Company Presentations for Investors

We are committed to the timely and appropriate disclosure of information in accordance with the Financial Instruments and Exchange Act andother related laws and regulations as well as the Rules on Timely
Disclosure of Corporate Information by Issuer of Listed Security and thelike laid out by the Tokyo Stock Exchange. We strive to deliver the same
key information so all market investors may obtain it equally towardmaking their investment decisions.

We invite institutional investors to our semi-annual earnings results
briefings in Tokyo, where we report on our management policies,
activities and performance. We also hold briefings for individual investors
to promote a greater awareness of our company. In fiscal 2008, such ameeting was held in Kanazawa City, Ishikawa Prefecture in March 2009 to
introduce our operations, report the state of our business performanceand explain the content of our third medium-term management plan.

General Shareholders Meeting
We try to schedule our annual general shareholders meeting for a datethat is convenient for shareholders by avoiding days on which other suchmeetings are being held. We also make an effort to send out invitations as
far in advance as possible to provide enough time for shareholders to
examine the proposed resolutions and the state of our operations.
To ensure that participating shareholders can better understand theitems being covered in the meeting, we provide visual on-screen presentations. We view these meetings as a valuable opportunity for directly
communicating with our shareholders and more clearly explaining ourcorporate activities through a display corner at which shareholders candirectly have a hands-on experience with our products.
In addition, we invite shareholders to an informal gathering following thegeneral shareholders meeting. During these occasions, the president
offers a detailed review of Eizo’s philosophy and activities. We welcome
honest opinions and questions from shareholders and strive to respondas comprehensively as possible. For example, in response to comments atthe 2008 general shareholders’ meeting, we enhanced shareholder
convenience by letting them use their discount privileges for online
payment of purchases on the Eizo Direct website.

Basic Policy on Profit Distribution
Returning profit to shareholders is a key management concern for Eizo
Nanao Corporation, and we have followed a basic policy of stabledividend payment in line with corporate growth. We return profit toshareholders on the basis of an overall consideration of securing retained
profit for capital investments and R&D expenditures required for businessexpansion, financial status and future performance. Our target shareholder return ratio is 30% to 40% of net income, and we strive tostrengthen our profit base to ensure we achieve this goal. Based on theseprinciples, our annual dividend payment for fiscal 2008 was ¥70 per share(¥40 interim dividend and ¥30 year-end dividend).
In addition, in May 2008 we repurchased 408,900 shares for enhanced
capital efficiency and to implement flexible capital policies in response to
the changing management environment.

Dividend Payments for the Past Five Years(¥)
90

Year-end dividendInterim dividend

80

60

55

50

30

40

0

40
40

30

30

25

20
10

70

70

70

40

80

15

FY 200425

FY 200530

FY 200640

40

FY 2007

FY 2008

CSR REPORT 200916

Strong Bonds of Trust with Stakeholders

Seven
Promises 4 -3

We will seek to build and maintain strong bonds oftrust with stakeholders.
—Relationships with Suppliers
Eizo views suppliers as essential and important partners for the continuation of our business. Therefore, we not only exchange detailed
information on individual transactions but also cultivate mutual understanding of management policies and technical strategies to achieve
substantial results based on powerful partnerships.

Basic Stance on Procurement
We deal with suppliers in Japan and overseas on an equal opportunity
basis in accordance with procurement policies based on the principles ofmutual coexistence and prosperity. Factors we consider essential inevaluating suppliers include a stable management foundation, supply
capability, technological expertise, compliance with laws and social
norms, and consideration for the global environment. We select suppliers
who meet these standards.

Eizo Green Procurement Philosophy(1) Eizo Nanao Corporation conducts business activities to protect
the global environment in accordance with its Environmental
Policy, supports the establishment of a zero-waste oriented
economy and society, and engages in the manufacture ofenvironmentally sound products.

Selection Standard for Suppliers(2) We formulated our Green Procurement Standards as a guideline

1

Sound managementfor our material procurement activities to meet the expectations of2

Technological excellence that will contribute to the quality of our products

the international community, local society and our customers by3

Appropriate quality, prices, and delivery schedules for products andmaterials to be supplied to us

activities. They are also for fulfilling our social responsibility by

4Stable supply capacity and ability to respond flexibly to fluctuations
in demand

5

Compliance with relevant laws, consideration for the environment,
and active involvement in environmental preservation

maintaining and enhancing our environmental protection
quickly complying with ever-evolving environmental laws,
regulations and standards in countries around the world.
(3) Eizo Nanao Corporation places high priority on transactions
with suppliers who are actively involved in reducing their own
environmental impact and protecting the environment inaddition to considering quality, price, delivery schedule, service

Building Bonds of Trust with Suppliers

and technological ability. We also vigorously adopt products, parts

As a manufacturing company whose main production operation isassembly, we place a high priority on controlling quality, delivery
schedules, and the cost of parts and materials we procure from suppliers
as well as on ensuring that their operations are environmentally sound.
We provide opportunities for regular exchanges of information addressing these issues and ensure that we and our suppliers share a common
understanding of each others’ management policies and technicalstrategies. This approach ultimately results in the achievement of
substantial results and the creation of future value that neither partner
could have achieved alone. We intend to continue building strong
partnerships based on these attitudes and efforts.

reducing the associated impact in the overall business operations ofand materials that have less influence on the environment, thereby
Eizo Nanao Corporation, while at the same time helping to expand
the market for environmentally sound products.

Chemical Content Analysis
Amid rising global concern over the environment, we seek to certify
our products under prevailing environmental standards in Japanand abroad and analyze chemical content to expand green procurement. We evaluate the environmental efforts of our suppliers andanalyze the chemical content of the parts they supply. The results
are stored and managed in a database, which is used to confirm theMaterials Procurement Briefing
We conduct materials procurement briefings twice each year for our
suppliers. During these briefings we go through our procurement policy
and request their support, green procurement trends and information.
We also report on the results ofquality improvement efforts andexplain related policies. Many
suppliers attend these briefings,
which contribute to a greater
understanding of Eizo and togathering information later utilized
in business decisions.

suitability of specific suppliers and materials as well as to evaluate
the environmental friendliness of our own products.
Flow of Chemical Content Analysis

RequestEvaluation of Environmental Efforts

Supplier(at start of transactions)

Environmental
Technology Database

List of Chemical Substances(items, etc.)

Material Information
Response

CSR REPORT 200917

Strong Bonds of Trust with Stakeholders

Seven
Promises 4 -4

We will seek to build and maintain strong bonds of trust withstakeholders.
—Relationships with the Local Community
Eizo fulfills its responsibility as a corporate citizen through a variety of activities, such as protecting the regional environment, cooperatingwith regional development and publicly disclosing information. We are committed to developing our business while maintaining good
relationships with the local community.

Preservation of the Local Environment
We promote environmental preservation initiatives through membershipin a variety of environmental organizations.

Paper Recycling Initiative
Office Paper Recycle Kanazawa is a united effort by companies andorganizations in Kanazawa City and its suburbs for building andoperating a regional circle of paper recycling. Participation in this activity
involves separating and collecting wastepaper (e.g., copier paper) andpurchasing and using recycled products (e.g., toilet paper).

CSR Survey and Research Initiative
The Sustainability Communication Network conducts surveys andresearch primarily on subjects such as CSR, the environment and the daily
lives of citizens, toward building partnerships between businesses andcitizens for developing a sustainable society. Eizo participates as acorporate member and receives the latest information, particularly
related to CSR and the CSR report, which serves as a key communication
tool.
Major Environmental Organizations Eizo Supports

Office Paper Recycle Kanazawa
Sustainability Communication Network
Green Purchasing Network
Ishikawa Afforestation Promotion Association
Ishikawa Environmental Partnership Citizens Association

Social Contribution Activity
Our basic social contribution stance is to start close to home. For
example, we participate in a program for collecting PET bottle caps
toward the donation of vaccines (polio, measles, diphtheria, whooping
cough) for children all over the world. The program is led by a nonprofit
organization in Kanagawa Prefecture, and the caps we collect aredelivered to Kanagawa through local waste disposal companies.

For Regional Development
Ishikawa Keiei Tensho Juku (Ishikawa Management Tensho School)
The Ishikawa Keiei Tensho Juku is a project aimed at enhancing practicalthinking and decision-making skills required for corporate management
among young corporate managers and future entrepreneurs who will
shoulder the future of the regional economy. The project is mainly
undertaken in Ishikawa Prefecture and is managed through the unified
efforts of industry, government andacademic institu-tions. As a supporterof this objective, Eizo advises on theoperation of this project and offers
lectures. Eizo’s own story is included
as a case study in the curriculum.
We also cooperate in producing
educational texts and classes.

Educational and Cultural Support
Special Lectures
At the request of the local Kanazawa University, we presented a special
lecture entitled, Corporate Environmental Preservation Activities, to 42
seniors in the Human and Mechanical Systems Engineering Course. While
the purpose of the lecture was to nurture a broad perspective andknowledge among students, from our point of view it also provided an
opportunity for encouraging open communication between the university
and businesses. We introduced concrete efforts for protecting the environment from the standpoints of both environmentally sound products andbusiness operations.

Extracurricular Activities for Elementary andJunior High School Students

We actively respond to requests from regional elementary schools and juniorhigh schools for corporate tours and research as part of their general studies.
In fiscal 2008, we cooperated with general studies research as part of career
education at a local elementary school. Students were encouraged to think
about their own future livelihoods by talking with adults who are involved ininteresting professions. During this course, an elementary school student
who was interested in designing games visited Irem Software Engineering
Inc. We also welcomed a visit and interview by local junior high school
students to learn about companies operating in the region.

Cooperation for Promoting Culture
We co-sponsor Orchestra Ensemble Kanazawa in Ishikawa Prefecture. This
also creates an opportunity for our
employees to appreciate culturalexpression as part of their benefits
program. We also co-sponsored La
Folle Journée Kanazawa Music
Festival with the intention of promoting local cultural events and regional
development.
©LFJ Kanazawa Executive Committee

CSR REPORT 200918

Strict respect and compliance with both the Letter and Spirit of the Law

Seven
Promises 5

We will strictly respect and comply with both the letterand spirit of the law.
Corporate operations require absolute legal compliance.
We believe each individual employee must raise their awareness of compliance and the company must conduct sound corporate governanceto provide our stakeholders with security, trust and profit through the ongoing creation of corporate value.

Compliance
Eizo Philosophy on Compliance
Eizo recognizes compliance as one of the most important concerns ofmanagement for fulfilling our social responsibility at the highest levels,and this includes ethical responsibility. Our action guidelines on compliance stipulate that we never become involved in illegal or unethical acts,that we respond immediately and transparently to illegal or unethicalactions by taking appropriate corrective and preventive measures, andthat we provide sufficient compliance training for all officers and employees. We will, therefore, establish an organizational structure for guaranteeing compliance, develop measures and systems to ensure effectiveness, and steadily promote these measures based on an annual plan froma long-term perspective. We are actively cultivating an ethical mindset
among management and employees by providing comprehensive
training on the role and importance of compliance.
We established the Eizo Nanao Group Code of Conduct to clarify our
corporate philosophy and action guidelines in concrete terms and toserve as a standard in decision-making, evaluation and in the actions
undertaken through the course of our business activities. We also seek toinstill a thorough awareness of compliance among all Group employees
in Japan and overseas while further enhancing our compliance system
based on the prior establishment of the Compliance Committee and by
further strengthening our management structure.
*The entire text of the Eizo Nanao Group Code of Conduct can be found on our website:www.eizo.com/about/code_of_conduct.asp

Strengthening the Information Management System
We ensure proper handling of confidential information in accordancewith our Information Handling Guidelines (Action Policy). We have also
appointed an information management representative with overall
responsibility for establishing a company-wide information management
system.

Internal Notification Program
To further strengthen our compliance system, we set up a liaison point for
officers and employees who are seeking advice on questions andproblems concerning legal action or the content of the code of actionthat may arise in the course of our operations. In addition, we strive toensure early detection of illegal activity and to prevent misconduct byoperating an internal notification program that requires officers andemployees to report to the liaison point immediately upon learning ofactivities in violation of laws or ethics, regardless of their own involvement.
We ensure that the privacy of the reporter is protected and that theindividual will not be placed at any disadvantage for reporting theviolation. Based on established procedures, immediate action is taken in
response to notification, including a fact-finding investigation, a report to
the Ethics Committee and the issuing of a termination order or an
operational improvement order.

Corporate GovernanceWe strive to be a company that consistently produces satisfactory resultswith the support of our stakeholders. To this end, we view the ongoing
improvement of corporate governance as a vital management concern.
Overview of Management Organization

General meeting of stockholders
Election/dismissal

Election/dismissal

Auditing

Board of Corporate Auditors(All outside corporate auditors)

Board ofDirectors

Accounting Inspector

Separation ofdecision-making
Instructions/andimplementation supervisionInspectionof accountsl

Management conference
Operating officers

Legal compliance(Audit Office)Legal auditing
department

Proper carryingout of duties
by directors
Credibility andsoundness ofcorporation actions

ReportInternal auditing
department

Credibility ofbusiness reports

Department chiefs(General Affairs Division)

Employees

Corporate Philosophy/
Action Guidelines

Overview of Management Organization
Board of Directors
The Board of Directors meets monthly and as required to support timely
decision-making for today’s business environment.
All important matters related to the board’s decisions are discussed, andprogress reports on business tasks are presented.
Among the seven Board of Directors, we have appointed a single outside
director to provide supervision and advice from a third-party perspective
and thereby increase the transparency of management decisions (as ofMarch 31, 2009).
Management Conference
A system of operating officers has been put into place to accelerate
strategic decisions and strengthen the business operation system. A
management conference is held monthly and as required. The conference
studies and reports on key business operation issues, countermeasuresand progress. All key, business-related issues are reported at the management conference.

CSR REPORT 200919

Strict respect and compliance with both the Letter and Spirit of the Law

Board of Corporate Auditors
Eizo has adopted a system of corporate auditors. The board of corporate
auditors consists of four members (one full-time and three part-time, asof March 31, 2009) and includes three outside corporate auditors.
Corporate auditors attend key meetings of the Board of Directors. The
full-time corporate auditor reviews and discusses with directors
important documents, such as draft proposals and contracts. He alsocollaborates with the Audit Office, the company’s internal auditing
department, on the review of internal regulation functions. The full-time
corporate auditor also attends internal audits. The Audit Office reports on
the findings of these audits in response to requests from directors. Finally,
the full-time corporate auditor attends audits conducted by the accounting auditor and participates in meetings between the accounting auditor
and our company.

Risk Management
As part of our corporate governance, we have established and operate arisk management system based on a group-wide perspective. The Risk
Management Committee takes the lead in the company’s risk management activities. In fiscal 2008, we identified key risks from among all risks
surveyed in the previous fiscal year and confirmed existing countermeasures and implemented additional measures for each risk. In March 2009,
we simultaneously conducted our first internal audit as well as an internal
compliance audit to review the status of preparation and operation for
countermeasures against risks, and we confirmed that they were satisfactory. Looking ahead, we will seek to further reduce exposure to risk bypromoting countermeasures against major vulnerabilities while alsoenhancing our Business Continuation Plan (BCP) related to potential
disasters.

Internal Auditing System
The Audit Office reports directly to the president and functions as thecompany’s internal auditing department. It carries out internal audits inaccordance with the Basic Regulations on Internal Audits, which specifies
audit policies, and with the Basic Annual Audit Plan approved by thepresident. All findings of these internal audits are reported to thepresident.
Auditors for each internal audit are appointed by the general manager ofthe Audit Office as necessary. In fiscal 2008, a quality and environmental
management audit was conducted by sixteen auditors, a personal
information management audit by ten auditors, and an internal control
audit by eight auditors.

Risk Management System

Chief Risk Officer (CRO): Executive Vice President
リスクマネジメント委員会
Risk Management Committee

Chairman

General Manager of the General Affairs Department

Vice Chairman

General Managers of the Personnel Department,
Accounting Department, Information Systems Department,
and Audit Office

Full-time Members

Representatives responsible for promotion ofrisk management
Employees called upon as required by specific topic

Part-time Members

Internal Control System
We established our basic policy underlying a system that ensuresdirectors execute their tasks in compliance with the law and the articles
of incorporation, along with a system for ensuring the appropriateness ofother operations, at a Board of Directors meeting in May 2006 (revised
May 2007). Based on the policy, we have proceeded to develop related
systems and to complete the groundwork for establishing an internal
control system.
Prior to these efforts, an internal control system for financial transactions
was established in accordance with the Financial Instruments andExchange Act, and we exercise thorough control over our financial
operations.

Officer Compensation System

Topic-based
working groups

Representatives
reponsible forpromotion ofrisk management
Department managers at
Eizo Nanao Corporationand domestic affiliates

Risk Management Secretariat
Secretary General
Officers appointed from General Managersof the General Affairs Department and the
Accounting Department by the Chairman of
the Risk Management Committee based on
deliberations by the committee
Departments responsible
for administrative work
Staff appointed from the General Affairs
Department, Accounting Department, Information Systems Department and otherdepartments by the Chairman of the Risk
Management Committee based on deliberations by the committee

With respect to bonuses paid to officers, we have endeavored to further
clarify directors’ management responsibilities for corporate performance.
Also, we have introduced a performance-based compensation systemthat explicitly limits bonuses to within 3% of net income for each fiscal
year (up to a maximum of ￥200 million) in an effort to ensure transparency of the calculation method.

CSR REPORT 200920

Broadminded Corporate Culture

Seven
Promises 6

We will value a broadminded corporate culture.
Eizo is a company focused on creative development that requires the imaginative ideas and powerful motivation of all its employees.
We therefore take various measures to create a broadminded corporate climate by developing an environment thatencourages free exchange of opinions and a workplace in which employees have a sense of security.

Laying the Foundations for a Motivating Workplace
OLive women’s project team in action

Eizo undertakes various activities to create a motivating workplaceenvironment that cultivates excellent human resources for the sake of thelong-term growth of our personnel as well as further corporate development.

OLive is a project team consisting of women who work as Operation
Leaders. The team is engaged in a number of advisory requests andactivities, and brings a female perspective to broad topics such as
corporate image and enhancing operational efficiency. Its activities areintended to create a more supportive corporate climate by sharing
experiences and addressing problems to encourage mutual growth, andby forming new networks that transcend departmental barriers.

Paying due respect to human rights
We provide training sessions as part of a full-scale effort to curtailbehaviors that undermine individuality at the workplace and in ouroperations, such as discriminatory remarks and actions and sexual or
power harassment.

Developing trust-based labor-management relations
Mutual understanding is the cornerstone of labor-management relations.
In keeping with this fundamental point, we endeavor to develop trust inlabor-management relations by encouraging dialog through theestablishment of a consultation conference. These conferences discuss awide-range of topics, from labor-management agreements to ways for
improving the work-life balance and employee benefit packages.

Family Workplace Visits
Each summer, OLive organizes workplace visits for family
members of employees. The event is intended to enliven
communication at work and at home, promoting an open

Promoting the careers of persons with disabilities

corporate climate, and deepening children’s understanding of

Persons with disabilities at Eizo Nanao Corporation represent 2.29% (12people) of our workforce, exceeding the legal requirement of 1.8%. These
people are pursuing careers in many of our worksites. We intend tocontinue enhancing the workplace environment and expanding theirwork opportunities.

work through these visits and work experience. Last year, a
total of 35 visitors, including the children, spouses and parentsof employees, participated. The visits began with a greetingfrom the president and included explanations about Eizo
products and a tour of the company. Participants expressed

Actively encouraging post-retirement reemployment

surprise at the size of the company and testing facilities, andWe introduced a post-retirement reemployment program toward
becoming a company in which highly motivated and skilled elderly
employees can continue to work. Under this program, retired employees
have the opportunity of being rehired. We believe this also provides ameans for handing down the invaluable skills of experienced employees.

were impressed by the many processes involved in manufacturing a single product; they left with a stronger interest in theworkplace of their family member.

Programs that offer employee security
Over the long course of employment, employees may require extended
leave due to illness or disaster. To meet this need, we have in place an
Expired Annual Paid Leave System. Under this program, unused paid
leave is set aside in accordance with certain conditions and can later beused as additional paid leave in the event of illness, disaster or volunteer
activities.

Employment (As of March 31, 2008, Eizo Nanao Corporation)
Number of employees(including contract workers) : 765
Men : 401
Women: 364*As of March 31, 2008

Full-time employees

738

Contract workers

27

Engineering staff

322

Foreign nationals

15

Graduate recruits

15 *Joined company in April 2009
*Joined company from April 2008
through March 2009

Mid-career recruits

7

Average age

35.70 *As of March 31, 2008

Average lengthof service

12.11 years

Employee turnover

2.9％ *FY 2008

Average annual
working hours

1,952 hours *FY 2008

*As of March 31, 2008

CSR REPORT 200921

Broadminded Corporate Culture

Promoting Work-Life Balance
To respond to diversifying work styles and ensure employees are able towork with a sense of satisfaction, accomplishment and happiness, we
believe it is important for employees to have extra time to refresh theirminds and bodies.

Opportunities for recreation and exchange
We support employees in their varied sports and cultural activities within
the company by supplementing costs and permitting use of company
facilities to encourage participation.
We also offer opportunities for recreation and exchange throughnumerous affiliated accommodation facilities and sports gyms.

Supporting childcare and nursing care
We have put in place a variety of programs in addition to providing
support for maternity leave, childcare leave and nursing care leave.

Shorter actual working hours
As part of our efforts to decrease the number of working hours, weundertake work improvement activities on a unit-by-unit basis, observe aweekly no-overtime day, and vigorously encourage employees who havenot taken sufficient paid leave to take it.

Free, Open Atmosphere Gives Rise to Imaginative Ideas
Blurring the boundary between the president and employees
While the president has a desk in his office, he also maintains asecond desk unpartitioned on the same floor that employees work,
creating an environment in which employees can freely andwithout hesitation talk with the president as needed.
The president shares his daily reflections in the President’s
Monologue on the corporate intranet, offering employees anopportunity to keep up with what the president is considering.

Free discussion in a borderless environment

Open-minded ideas are critical to Eizo for creating unique productsthat meet the specialized needs of our customers. We offer support
through various programs as well as a corporate climate thatdeeply values openness and fairness. This encourages free,unfettered discussion.

The workplace environment at Eizo Nanao Corporation facilitates
an active exchange of ideas among members of various departments. It also allows for communication uninhibited by job titles.
Given this setting, the opinions of a broad spectrum of employees
are reflected in various corporate decisions, including productdevelopment and planning. We also regularly convene problemsolving sessions to improve operations through discussion among
employees and undertake cross-department team activities.
Within this framework, initiatives such as the development of astructure and system for raising the efficiency of freight operations
were underway in fiscal 2009.

Freedom is the mother of invention
Under the Working Casual rule adopted in 2003, no employees
except for factory workers wear uniforms, and only domestic sales
personnel wear suits and ties. Some creative thinking is required toescape the formality of the business suit while still maintaining aprofessional presence for guests. The goal is to encourage employees to exercise their imagination as well as to facilitate communication among employees regardless of position.

At the company cafeteria, everyone
shares a common dining area withno barriers between the president,
officers and employees.

Our liberal and broadminded
corporate climate generates free
discussion inside the company
every day.

CSR REPORT 200922

Broadminded Corporate Culture

Human Resource Development Efforts
Supporting career development
Apart from seminars and training required for our operations, Eizo Nanao
Corporation provides a complete and diverse range of educational
opportunities for employees to select from on the basis of their own
career plans. These programs vary from support for obtaining qualifications to in-house English language classes.

Emphasis on educating younger employeesFirst-year employees are the target audience for programs on organizational detail, basic knowledge required for adulthood and independency,
on-site factory training, and on-site sales training to learn about thefoundations of our company. For our new recruit engineering staff, we
provide technical training to ensure they acquire a broad base ofknowledge on our basic technologies. We provide a variety of othertraining programs specifically targeting young employees.
Our energies are also focused toward on-the-job training (OJT) in eachdepartment. Managers draw up three-year career plans in consultation
with young employees as the basis for a systematic OJT program.

and shitsuke (sustaining).
We plan to continue efforts to prevent the occurrence of workplace
accidents while working to identify and eliminate or reduce risk factors
through ongoing risk assessments and safety audits of new equipment,
carrying out safety education to prevent accidents during activities
outside the company, and increasing the visibility of risk factors.

Health Management Efforts
We have been pursuing several initiatives for maintaining physical andmental health. These include timely consultations with physicians, healthcheckups to prevent chronic physical conditions or illnesses, athorough array of testing, and the establishment of dedicated liaison
points inside and outside the company for receiving employee concerns.
We will seek to ensure the psychological and physical well-being of ouremployees by carrying out mental health consultations when appropriate. This will be done with the goal of preventing chronic physicalconditions or illnesses by encouraging employees to take a complete
examination as called for by checkup results and reexamination following
self care efforts.

Reinforcing management capabilities
We recognize that training management candidates is a key task that is
directly linked to cultivating human resources for shouldering the futureof the company.
Eizo Nanao Corporation undertakes selective training for this class of
employees. Selected members from diverse departments are organized
into teams that spend a year tackling their respective assignments tooffer proposals to management. This approach affords additional
benefits beyond developing the diverse skills required of management,such as the creation of a solid in-house network based on shared team
activities. We also offer training for newly appointed managers to deepen
understanding of fair job evaluations and appropriate allocation of work.

Basic Policy on Safety and Health(Safety and Health Management Regulations)
The basic policy on the safety and health of Eizo Nanao Corporation is intended to create a healthy and safe working environment
for all employees. This is achieved through management of risk
factors related to safety and health.
Specifically, we constantly strive to identify unacceptable risk
factors in the workplace and neutralize them, with the ultimate
goal of eliminating workplace accidents.

Medium-Term Plan (Fiscal 2007 to 2009)
We will completely reevaluate our health and safety-related initiatives in
response to changes in the business climate.
Fiscal 2009 Targets/Key Action Points and Fiscal 2008 Performance

Securing Safety and Health
We invest significant management resources into the development,
design and production of new products. To continue creating productswith high added value, we believe we must maintain workplace safety
and ensure the health of our employees. We also consider this to be a vital
aspect of corporate risk management and promote various activities forsecuring health and safety.

Efforts to Prevent Occupational Hazards
Our efforts to prevent workplace accidents through risk assessment
began five years ago and include KYT activities, training to anticipate
danger; hiyari-hatto activities, training to deal with close calls; and 5-S
activities, training focused on the concepts of seiri (sorting), seiton(straightening), seiso (sweeping and cleaning), seiketsu (spick and span)Management
area

Safetymanagement

Targets/key
action points
Implementation of risk
assessment and 20%
reduction in
high-risk cases
Key point: Enhance
accident prevention
measures for activities
outside the company

Fiscal 2008
performance

Evaluation

By implementing risk
aversion measuresagainst high-risk
items, risk levels offour out of ninecases were lowered

100% follow-up on
Compliance rate
checkup results
for follow-up was
Healthmaintained
management Key point: Enhanceabove 80%
mental health measures

CSR REPORT 200923

Environmental Management

Seven
Promises 7

We will strive to coexist in harmony with the environmentand society, as a globally responsible corporation.

Environmental Policy
We, Eizo Nanao Corporation, are aware that our products have an impact on the environment. In our
product development work we therefore consider friendliness to the environment to be part and parcelof product quality. We endeavor to supply our customers worldwide with products developed tocommon specifications that meet or exceed the environmental requirements of individual countries aswell as our own environmental standards. We are conscious of the importance of environmental preservation as a common issue for all humankind and pledge to do our utmost to protect the environment
in all aspects of our corporate operations.

1

We endeavor to constantly remain up to date on and to strictly adhere to environmental laws andstandards applicable to our corporate operations and products, as well as other environmental
preservation requirements of society at large. We determine environmental objectives and targets
based on a clear understanding of such requirements as well as the environmental impact of ourcorporate operations and products. These objectives and targets are reviewed on a regular basis toachieve ongoing improvement of our environmental management system and performance.

2

At the research and development stage, we pay careful attention to the design of our products tominimize the consumption of resources and energy, ensure ease of recycling, and reduce the volume
of toxic substances. Our aim is a continuous raising of our environmental standards.

3

In our corporate operations we give due consideration to conserving energy and resources. We work
to reduce the volume of waste products generated by our operations and to dispose properly of all
waste generated. We are engaged in positive efforts to promote the collection and recycling of usedproducts discarded by consumers.

4

We constantly monitor the latest information related to the environment through our information
network, which includes our overseas facilities and affiliated companies. We endeavor to share
information appropriately by disclosing and disseminating details of our own environmental initiatives,
and we work with others in common efforts aimed at preserving the environment.

5

We educate all company members and strive to deepen their awareness of environmental matters,
while creating members of a team that will be committed to the effective use of natural resources andenergy, and to the protection of our global environment.

CSR REPORT 200924

Environmental Management

Overall Environmental Impact of Business Activities
Parts manufacturers andpurchasing companies
Japan • Overseas

Energy Usage:
107,617 GJ

Emissions of CO2:
6,027 t-CO2
Waste

Energy Usage Breakdown:
Electricity: 9.97 million kWh
Kerosene: 31 kl
LPG: 141 t

INPUT

OUTPUT

Copier paper: 7.5 t
Water Usage: 47.678 m3

Waste Breakdown:
Industrial waste: 347 t
General waste: 24 t
wastepaper: 337 t
Recycling Rate: 97.7%

Eizo Nanao Group

Use and disposal
by customer
Japan • Overseas

Collection and recyclingof used products

Materials collected inaccordance with the Containers
and Packaging Recycling Law*Scope of calculations:
three domestic areas as listed below.

Environmental Impact by Area
Area

Eizo Nanao MS Corporation
Nanao Plant

Eizo Nanao MS Corporation
Hakui Plant

Operations

Assembly of printed circuit boards for
Eizo Nanao Corporation products

Assembly of
Eizo Nanao Corporation products

Total Energy Usage (GJ)

Waste

Total

9,671

36,291

61,665

107,617

97

364

536

997

Kerosene (kl)31

31

LPG（t）

141

141

Electricity (10,000 kWh)
EnergyResources

Eizo Nanao Corporation
Headquarters area*

Copier paper (t)

0.3

1.4

5.8

7.5

Water usage (m3)

2,963

3,037

41,67847,678Emissions of CO2 (t)

537

2,018

3,472

6,027

Industrial waste (t)

87

58

202

347

General waste (t)

5

8

11

24

Wastepaper (t)

121

78

178

377

Recycling rate (%)

99

96.4

97.7

97.7

*Includes data for Irem Software Engineering Inc., Eizo Support Network Corporation and Nanao Agency Corporation located within the area (site).

CSR REPORT 200925

Environmental Management

Fiscal 2008 Environmental Targets/Performance Report
We shifted the focus of our targets to environmentally sound design starting in fiscal 2008, and as a result, we achieved results exceeding 75% in 13 initiatives,
over 50% and under 75% in four initiatives, and under 50% in three initiatives.

Scope: Eizo Nanao Corporation area

Environmental
theme

Issue

Environmental
objective

In-house environmental target>>Performance and future measures

Reduced power
consumption

Reducing consumption of electricity (up to 5.6 million kWh/year)⇒Sum total: 5.356 million kWh

Reduced fuelconsumption

Reducing consumption of fuel (LPG: up to 110 t/year; kerosene: 42 kl/year)⇒LPG sum total: 140 t; kerosene sum total: 31 kl

Tracking CO2 volume

Efforts to prevent
global warming

CO2 reduction

Environmentallysound product design

Evaluation

Implementing product LCA⇒Designated as ongoing initiative for fiscal 2009
Reducing product energy consumption⇒Developed EV2411 with LED backlight⇒Zero-watt goal achieved for off mode
⇒Developed new technologies including a presence sensor and EcoView
Reducing product CO2 emissions⇒Implemented carbon footprint trend test

Increased transport
efficiency

Green procurement

ReduceCreating asustainable
societyThree R’s
(reduce, reuse, recycle)

Reuse

RecycleReducing consumptionof chemicals
Environmental
issuesEnvironmental
communication

Environmental
complianceManagementof chemicals

Maintaining
communication

Compliance withenvironmental laws
and standards

Increasing transport efficiency⇒Tracked loading ratio and implemented in-house feedback
Measures to increase loading ratio⇒Created compact container box by changing the shape of the standGreen purchasing of office supplies⇒Promoted green purchasing by designating in-house
recommendations based on green procurement catalogs
Reducing industrial waste (up to 210 t overall)*⇒Sum total: 202 t
Effective use of resources (up to 6 t for purchases of copier paper)*⇒Sum total: 5.8 t
Promoting reuse of office supplies⇒Promoted effective use of in-house paid supplies
Promoting recycling of industrial waste⇒Target: 96% recycling* Average annual recycling rate: 97.8%
Expanding use of recycled plastics⇒Considered expanding use of recycled materials in productsManagement and limitation of emissions of toxic substances

Green procurement

Management of chemicals used in products⇒Strengthened thresholds for cadmium and hexavalent chromiumin product parts⇒Developed LED backlight models

Education and training

Implementation of employee education⇒Implemented environmental training for all employees

Corporate activity report

Publication of corporate Environmental Report

Survey of market trends

Disclosure of product environmental information
Survey of environmental technology

Standards compliance

In-houseenvironmental labelingCompliance with related standards⇒Prepared in-house system in response to REACH Regulation⇒Complied with new ENERGY STAR program⇒Complied with new TCO standard⇒Complied with Act on Promoting Green purchasing⇒Implemented trend survey on Eup Directive⇒Implemented trend survey on Clean Air Act,
Water Pollution Control Law,
Waste Disposal and Public Cleaning Law
Complied to Eizo Eco Products⇒Released Eizo Eco Products 2009

○ : Achievement ratio of over 75% ; △ : Achievement ratio of over 50% and under 75% ;×: Achievement ratio of under 50%* Excluding Irem Software Engineering Inc.

CSR REPORT 200926

Environmental Management

Fiscal 2009 Environmental Targets
Starting in ﬁscal 2009, we plan to add aﬃliate Eizo Nanao MS Corporation (hereafter EMS) to our conventional target area covering the headquarters of
Eizo Nanao Corporation (hereafter Headquarters). This undertaking is to achieve the level of environmental consideration required of a manufacturer
by pursuing our efforts at a broader scope.

Environmental
theme

Issue

Environmental
objective
Reduced power
consumption

Environmental target
Reducing consumption of electricity—Headquarters: up to 5.45 million kWh/year
Reducing consumption of electricity—EMS: up to 5.0 million kWh/year

Reduced fuelconsumption
Efforts to prevent
global warming

CO2 reduction

Tracking CO2 volume

Implementing product LCA

Environmentallysound product design

Reducing product energy consumption

Increased transport
efficiency

Increasing product transport efficiency

Green procurement

Green purchasing of oﬃce supplies

ReduceCreating a
Three R’s
sustainable society (reduce, reuse, recycle)

Environmental
issuesEnvironmental
communication

Environmental
complianceManagementof chemicals

Maintaining
communication

Compliance withenvironmental laws
and standards

Reducing consumption of fuel—Headquarters: LPG: up to 130 t; kerosene: 36kl

Reducing industrial waste—Headquarters*: up to 210 t for industrial waste
generation, up to 6 t for purchases of copier paper
Reducing industrial waste—EMS: up to 150 t for industrial waste generation,
up to 1.6 t for purchases of copier paper

Reuse

Promoting reuse of office supplies

RecyclePromoting recycling of industrial waste
Target: 96% recycling of waste generated on company premises

Reducing consumptionof chemicals

Management and limitation of emissions and movement of toxic substances

Green procurement

Management of chemicals used in products

Education and training

Implementation of employee education

Disclosure ofenvironmental information

Disclosure of corporate Environmental Report
Disclosure of product environmental information

Survey ofmarket trends

Survey of environmental technology

Standards
compliance

Compliance with environmental laws and standards• REACH Regulation• ENERGY STAR Ver. 5.0 program• TCO Display 5.0• Energy Saving Act• Act on Promoting Green Purchasing• EuP Directive• Air Pollution Control Law• Water Pollution Prevention Law• Wastes Disposal and Public Cleansing Act

In-houseenvironmental labeling

Eizo Eco Products*Excluding Irem Software Engineering Inc.

CSR REPORT 200927

Environmental Management

Environmental Management System
After establishing an environmental management system under ourEnvironmental Policy, we obtained ISO 14001 certification in July
1998. Since then we have focused on and begun achieving results indealing with waste and reducing resource and energy consumption
across the company. However, in light of a number of factors,
including a rise in public environmental concern and growing interestfor environmentally sound products, we have renewed our stance of
expecting our environmental management system to achievestronger outcomes for products and services while maintaining
existing activities. In fiscal 2008, we began operating our environmental management system under a new organizational structure
centered on environmentally sound products.
We believe the goal of environmental management is to achieve
results not only in the sense of in-house accomplishments associatedwith handling waste or reducing resource and energy consumption,
but also in terms of customer satisfaction with our products andservices.

Activities under the Environmental
Management System
We incorporated many tasks for meeting our environmental targets forfiscal 2008 that would achieve results in product specifications andsought to accomplish these tasks and targets by sharing them within-house organizations, including the design and development departments. More specifically, we held regular meetings of the Environmental
Promotion Committee, composed of Environmental Promotion Coordinators selected from each department in the company, to exchange
progress reports on targets, accomplishments and tasks. In terms ofenvironmental targets directly linked to products, we successfully
reduced power consumption during suspension and use, exercised
stricter control over chemicals used in parts, and made our products
more compact and lightweight.

Raising Customer Satisfaction

ActionCheck

Environmental
Management
SystemDo

Stakeholder

Plan

Environmental Management System Audits
In fiscal 2008, we continued to conduct internal audits to confirm that
activities under the environmental management system were being
satisfactorily implemented. A third-party institution conducted an
external audit, and our ISO 14001 certification was maintained andupdated. During the external audit, updated in-house regulations
and management systems under our new management organizationand system were confirmed. Furthermore, in view of the strengthened awareness in recent years of management audits for controllingchemical substances, an audit was conducted by a client specialized
in this field.

Environmental Education Activities
In fiscal 2008, we sought to enhance the shared awareness of ourunique in-house activities for environmentally sound products
through initiatives of the Environmental Promotion Committee.
Environmental Promotion Coordinators for each department provided
concrete feedback through the committee on the environment
surrounding the company, environmental considerations required forour products, and actual progress achieved through our efforts, thus
enabling us to share a more practical awareness of environmental
consideration and to more thoroughly educate employees.

Environmental Risk Management
Facility Management
Several of our facilities are subject to the Air Pollution Control Law.
However, as a fundamental policy, we have established our own
management standards encompassing even those operations thatare not applicable to be governed by legal requirements. (Detailed
measurement data can be reviewed on the Eizo Nanao Corporation
website). In addition, annual drills are conducted to practice
emergency procedures for dealing with accidental leaks from the oil
supplies of climate control systems. With due consideration for
reducing environmental impact and conserving energy throughout
the entire site, we began using
the Energy Center as the heatsource for climate control in the
production building as well as
the research building. We use
LPG as the heat source, whichemits less CO2 and air pollutants
than fuel oil A.
Emergency procedure drill

Waste Processing
We train our employees to properly separate and dispose of waste inaccordance with items on a list posted at the temporary storage
facility. Waste is subsequently transported to a waste storage facility
for further separation, delivered to a contracted waste disposal
company and sent off for recycling, incineration or landfill disposal.

CSR REPORT 200928

Environmental Management

Efforts to Prevent Global Warming

Resource Conservation

In fiscal 2008, our total energy input decreased by 6.8% year on year.

Greenhouse Gas Emissions
Of six types of greenhouse gases, we produce carbon dioxide,
methane and dinitrogen oxide. We track the output volume of thesegases in carbon dioxide equivalency values.
Greenhouse Gas Emissions

Copier Paper Usage
In fiscal 2008, our copier paper usage by volume decreased by 21.0%
year on year. This was the result of efforts to promote the use ofelectronic media and information campaigns encouraging
reductions. In fiscal 2009, we will further boost the use of electronic
media to reduce copier paper consumption.
Copier Paper Usage(t-CO2)

(t)
11

7,000

10

6,000

9
5,000

8
7

4,000
3,000

6
4,819

5,352

5,697

6,465

6,027

2,000

5
4

10.0

11.0

10.6

9.5

7.5

FY 2004

FY 2005

FY 2006

FY 2007

FY 2008

3

1,000

2
0

FY 2004

FY 2005

FY 2006

FY 2007

FY 2008

1
0

Energy Usage
In fiscal 2008, we were able to meet our targets for electricity andkerosene consumption by reducing climate control energy use
through upgrades to existing facilities and central monitoring. We
were, however, unable to meet our target for LPG. We plan tocontinue working toward our twin goals of creating a more comfortable workplace environment and higher energy efficiency byremotely controlling the temperature and humidity in individualrooms via a central monitoring system.

Water Usage
While our affiliates use public water and sewage systems, Eizo Nanao
Corporation uses groundwater exclusively. No water is used in
manufacturing processes, although water is used for snow
abatement in winter and for watering plants in summer.

Targets and Results
Water Resource Input

Electricity

Kerosene

LPG

Fiscal 2009 target

10.05 million kWh

36 kl

130 t

(m3)
80,000Fiscal 2008 target

10.20 million kWh

42 kl

110 t

70,000Fiscal 2008 results

9.97 million kWh

31 kl

141 t

60,000

Achieved/not achieved

50,000Total Energy Input

40,000(GJ)
12,00010,000115,491
86,112

95,580101,836

30,000107,61771,75654,786

61,47047,678FY 2004

FY 2005

FY 2006

FY 2007

FY 2008

20,00010,000

8,000
6,000

56,297

083,66392,07998,709110,368

2,449

3,501

3,127

5,123

FY 2004

FY 2005

FY 2006

99,301

4,000
2,000
0

FY 2007
Electricity

8,316
FY 2008
Others (LPG, kerosene)

CSR REPORT 200929

Environmental Management

Reducing Waste
Industrial Waste

General Waste

In fiscal 2008 the recycling rate was 97.7% and the total volume ofwaste decreased, enabling us to achieve both our targets. Woodscraps (from wood pallets) are now being treated as industrial waste
rather than general waste in response to changes in the law, and the
expanded screen size of our products led to imports of large-format
component parts accompanied by increases in styrofoam and waste
plastic from packaging. We were nevertheless able to meet ourtargets by restraining disposal of unwanted materials and equipment
during inventory clearance. We work with waste processing companies to collect waste styrofoam, melt it down, and then mold it into
chips that can be used as a raw material for new plastic products.
Some of this resource is also used as styrofoam packaging for our
products. In fiscal 2009 we will endeavor to reduce the volume ofwaste plastic and increase the rates of waste products with commercial value.

Industrial Waste

In fiscal 2008, the volume of general waste decreased from theprevious year largely due to changes in the law, enforced since April
2008, requiring wood scraps (from wood pallets) to be treated asindustrial waste.

Disposal of General Waste

Burnable trash

Non-burnable trash

Grass clippings, office supplies (used tea, etc.),
non-recyclable items (carbon paper, thermal paper),indoor footwear, etc.
Plastic office supplies

General Waste

(t)
400

(t)
60

350

50

300
40

250

30

200
348

150

334

360

364

347
20

100
10

50

30

37

36

59

24

FY 2004

FY 2005

FY 2006

FY 2004

FY 2008

00
FY 2004

FY 2005

FY 2006

FY 2007

FY 2008

Industrial Waste (FY 2008)

3％

7％

Waste products

5％

Wood scraps

Other

6％

Metal (iron)

9％

Glass
(including panels)

38％

347ｔ

Waste plastic

Total volume

10％

Circuit boards

22％

Styrofoam

CSR REPORT 200930

Environmental Management

Collection and Recycling of Used Products (For Customers in Japan)
Collection and Recycling of Commercial Products
A product collection and recycling system was set up in July 2001
under the Waste Disposal Law and the Law for Promotion of Effective
Utilization of Resources. The resulting collection and recycling regime
focuses on products marketed to commercial customers. The
collected products are disassembled, crushed and sorted by recycling

contractors, and the resulting raw materials are reused to manufacture new products. In March 2005, collection and recycling began
under a Designated Wide-Area Recycling Industrial Waste System
certified by the Japanese Ministry of Environment.

Corporate customer

Collection of Commercial Products(April 2008–March 2009)

Eizo Support Network Co., Ltd.

① Collection request

Telephone

CRT
monitors

LCD
monitors

Volume collected (kg)

4,661

178

Quantity collected (units)

173

30

Volume recycled (kg)

2,990

152

Recycling rate (%)

64.1

85.6

④ Processing completion report

EIZO products and
NANAO productsReceiving
Payment of fee

ReceivingTel: 076-274-7369② Collection arrangementsCollection③ Collection

Disassembly, crushing, sorting

Pickupandtransport

Recycling
Plus Cargo Service Co., Ltd.
and others

Hyper Cycle Systems Co., Ltd.

Collection and Recycling of Household Products
In October 2003, a product collection and recycling system forindividual customers was set up under the Waste Disposal Law andthe Law for Promotion of Effective Utilization of Resources. We mailCollection of Household Products(April 2008–March 2009)

Volume collected (kg)
Quantity collected (units)

Household(individual)
customer

CRT
monitors

LCD
monitors

54,090

2,437

2,148

372

Volume recycled (kg)36,213

1,960

Recycling rate (%)

66.9

80.4

“PC recycling mark” stickers to customers at their request for products
purchased after October 1, 2003. Monitors bearing these stickers canbe disposed of without any additional cost to the customer.

① Collection request

Information Devices
Recycling Center② Sending of fund transfer form

Web and telephone③ Payment (post office or convenience store)

Eizo products
and Nanao products

LCD and plasma televisions are subject to collection under
the revised Home Appliance Recycling Law of April 1, 2009.
We therefore established a recycling system to collect andrecycle any televisions, whether produced by Eizo or by othermanufacturers.

Collection point/
Recycling facility⑥ Eco-Yu Pack shipment

Eco-Yu Pack

Television Disposal

E-mail: info@pc-eco.jp
URL: http://www.pc-eco.jp④ Sending Eco-Yu Pack shipping label⑥ Delivery to post office (post office)⑤
Simple packaging such as bags/
Shipping labels

Tel: 03-3455-6107

Receiving

Customers

Recycling(Four locations in Japan)
Hokkaido Eco Recycling Systems Co., Ltd.
Hyper Cycle Systems Co., Ltd.
Green Cycle Corporation
Recycle Tech Co., Ltd.

① Request for pickup② Payment and collection of productReplacement
purchase

Shop where customers will maketheir replacement purchase
Shop where customers previously
purch ased the Eizo product

When discarding an
Eizo product subject tothe law and purchasing
a new productDisposal otherthan replacement
When discarding an
Eizo product subject tothe law withoutpurchasing a new product

Home applianceretailers③ Transport④ Recycling

Designated pickup point
Disposal company

CSR REPORT 200931

Appendix

Social and Environmental Timeline
Product Standards

Corporate Action

1988

Started utilizing bromine-free flame retardants in plastic parts.

1992

Started survey of toxic substances in parts (20 substances).

1993

Began working toward TCO’92 certification.
Began working to acquire ENERGY STAR registration (major product models).

1996

Started utilizing halogen-free flame retardants in plastic parts.
Began working toward TCO’95 certification.

Appointment of Environmental Management Officer toGeneral Affairs Division.

1997

Started environmental compliance assessment.
Expanded survey of toxic substances in parts (to 34 substances).
Started registering products under International ENERGY STAR Program.

Adoption of Environmental Policy.
ISO 9001 certification.

1998

Began working toward TCO’99 certification.

ISO 14001 certification.

1999

Began working toward Eco Circle certification.
Eliminated cadmium from parts.
Expanded survey of toxic substances in parts (to 920 substances).

Closed waste incinerators.
Established environmental preservation website oncompany intranet.

2000

Switched from water-cooled to air-cooled air conditioners.

2001

Began Eco Mark registration.
PC Green Label registration.

Issued first Environmental Report.
Began collecting and recycling commercial products.
Adopted Corporate Philosophy.

2002

Established the company’s environmental labeling(established Eizo Eco Products 2002).

Introduced monitoring and computerization systems.

Began working toward TCO’03 certification.
Established Eizo Eco Products 2004.

Received Governor of Ishikawa’s Green Enterprise award.
Received Health Minister’s Award for Excellence in health and safety
initiatives.
Began collecting and recycling household products.

Launched efforts to comply with the RoHS Directive.

Started collecting and recycling commercial products in responseto requests and over an expanded region.
Implemented energy conservation measures in conjunction withequipment upgrades (climate control, lighting) at Headquarters.
Implemented traffic safety guidance in local communities.

2005

Began product shipments in compliance with the RoHS Directive.

Issued first Social and Environmental Report.
ISO 14001 certification of Environmental Management System
including sales offices.
ISO 13485 certification.

2006

Adopted Eizo Eco Products 2006 standards.
Launched J-Moss compliance efforts.
Started compliance with WEEE Directive(displayed recycling logo and completed providing data on
hazardous substances to recycling contractors).

Added Eizo Galleria locations to scope of operations included in
ISO 14001 certification.

2007

Started compliance with China RoHS (Management Methods forControlling Pollution by Electronic Information Products).

Substantial increase in energy consumption as R&D building iscompleted and brought into use.

2008

Adopted Eizo Eco Products 2006 standards.
Began working toward EPEAT certification.

2009

Began working toward TCO Display 5.0 certification.

2003

2004

Began working toward compliance with the Electrical Household
Appliances Recycling Law.

CSR REPORT 200932

Appendix

GRI Index
Indicator [Self-declared GRI application level C]

Item

Report page

1. Strategy and Analysis
1.1Statement from the most senior decision-maker of the organization (e.g., CEO, chair, or equivalent senior position)
about the relevance of sustainability to the organization and its strategy.

2.1

Name of the organization.

2.2

Primary brands, products, and/or services.

3–4

2. Organizational Profile
5
5, 15

2.3

Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures.

5

2.4

Location of organization's headquarters.

5

2.5

Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant tothe sustainability issues covered in the report.

13
5, 15

2.6

Nature of ownership and legal form.

2.7

Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).

5

2.8

Scale of the reporting organization, including: Number of employees; Net sales (for private sector organizations) or net revenues (for public sector organizations);
Total capitalization broken down in terms of debt and equity (for private sector organizations); and Quantity of products or services provided.

5

2.9

Significant changes during the reporting period regarding size, structure, or ownership including: The location of, or changes in operations, including facility openings,
closings, and expansions; and Changes in the share capital structure and other capital formation, maintenance, and alteration operations (for private sector organizations).

N/A

2.10

Awards received in the reporting period.

6

3. Report Parameters
3.1

Reporting period (e.g., fiscal/calendar year) for information provided.

2

3.2

Date of most recent previous report (if any).

2

3.3

Reporting cycle (annual, biennial, etc.).

2

3.4

Contact point for questions regarding the report or its contents.

2

3.5

Process for defining report content, including: determining materiality; prioritizing topics within the report;
and identifying stakeholders the organization expects to use the report.

2

3.6

Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers).

2

3.7

State any specific limitations on the scope or boundary of the report.

2

3.8

Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations,and other entities that can significantly affect comparability from period to period and/or between organizations.

N/A

3.10

Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement(e.g., mergers/acquisitions, change of base years/periods, nature of business, measurement methods).

N/A

3.11

Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.

2

3.12

Table identifying the location of the Standard Disclosures in the report.

33

4. Governance, Commitments, and Engagement
4.1

Governance structure of the organization, including committees under the highest governance body responsible for specific tasks,
such as setting strategy or organizational oversight.

18

4.2

Indicate whether the Chair of the highest governance body is also an executive officer(and, if so, their function within the organization's management and the reasons for this arrangement).

18

4.3

For organizations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or non-executive members.

18

4.4

Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.

18

4.14

List of stakeholder groups engaged by the organization.

1

4.15

Basis for identification and selection of stakeholders with whom to engage.

1

Economic
ES6

Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation.

16

EC8

Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in kind, or pro bono engagement.

17

Environmental
EN4

Indirect energy consumption by primary source.

24, 29EN5Energy saved due to conservation and efficiency improvements.

25, 29

EN6

Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives.

9–11

EN7

Initiatives to reduce indirect energy consumption and reductions achieved.

25, 29EN8

Total water withdrawal by source.

24, 29EN16

Total direct and indirect greenhouse gas emissions by weight.

24, 29EN22

Total weight of waste by type and disposal method.

24, 30

EN26

Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.

9–11, 31

Social Performance Indicators
Labor Practices and Decent Work
LA1

Total workforce by employment type, employment contract, and region.

LA2

Total number and rate of employee turnover by age group, gender, and region.

LA3

Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations.

20
20
20–21

LA7

Rates of injury, occupational diseases, lost days, and absenteeism, and number of work related fatalities by region.

22

LA8

Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases.

22

LA11

Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.

22

CSR REPORT 200933