CORPORATESOCIALRESPONSIBILITYREPORT 2010

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,

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.

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.

P22

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

6

2

We will value a
broadminded
corporate culture.

Principles
of Conduct

Principles
of Conduct

Corporate
Philosophy

5

P19

1

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

P07

5. We cultivate a broadminded corporate culture, establishing a vibrant workplace.

The Seven Promises

P06

Seven Promises

Principles
of Conduct

4

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

P17

Principles
of Conduct2

Principles
of Conduct

Seven Promises

3

3

Seven Promises

4

We will pursue
sound development
as an international
corporation.

P11

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

P12

CSR REPORT 201001

Contents

Corporate Philosophy,Principles of Conduct,The Seven Promises
Contents
President's Message
Corporate Information
Our Products
We will inspire customers by creating and offering products of new value.

01
02

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

Seven Promises 7

03

Environmental Management

04

・Environmental Policy・Environmental Management System

1805・Overall Environmental Impact of Business Activities

19

・Environmental Targets/Performance Report

20

Seven Promises 1

Creating New Value

Appendix

・EIZO Solutions

・Social and Environmental Timeline

21

・GRI Index

22

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

06

Seven Promises 2

・Quality Management Policy・EIZO’s Quality Assurance System

07

・Basic Product Development Sequence

08

・Compliance with Environmental Labeling Standards and Legal Requirements

09

We will pursue sound development as an international corporation.

Third Party Review
・Third Party Review

Product Environmental Considerations

23

Seven Promises 3

Sound Development as an International Corporation

・One Country/Territory, One Distributor System・Globalization of Development and Production

We will seek to build and maintain strong bonds of trust with stakeholders.

10
Seven Promises 4

Strong Bonds of Trust with Stakeholders

・Relationship with Each Type of Stakeholder

11

・Relationships with Customers・Relationships with Shareholders

12・Relationships with Suppliers・Relationships with the local community

13

We will strictly respect and comply with both the letter and spirit of the law. Seven Promises 5
Strict Respect and Compliance with both the Letter and Spirit of the Law

Editorial Policy for the CSR Report・Compliance and Corporate Governance14● Editorial Policy: We have compiled an explanation on topics we・Risk Management

15

consider important and a report on the impact and effects ofour business activities on society and the environment, using
the GRI Guidelines as reference.

We will value a broadminded corporate culture.

Seven Promises 6

Broadminded Corporate Culture・Laying the Foundations for a Motivating Workplace・Promoting Work-Life Balance

16

・Human Resource Development Efforts and Securing Safety and Health17● CSR Activity System: The General Affairs division is responsible
for our CSR activities. Under the supervision of the officer incharge of general affairs, the division reports on its activities tothe board of directors● 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, 2009 to March 31, 2010 (FY 2009)● Contact information: Eizo Nanao Corporation General Affairs
Department,
Tel: +81-76-274-2406● Issue date: September 2010
● Issue date of previous report: August 2009
● Issue date of next report: August 2011

CSR REPORT 201002

President’s Message

七

A globally responsible corporationthat coexists in harmony with the environment and society—Friendly to users, and to the environment
Consideration for the Environment
Means Introducing Products that will
Become Longtime Favorites
Public awareness of the environment has significantly
grown, and today I’m often asked about how we
intend to address environmental issues. I haveconsistently responded that operating out of agenuine concern for the environment and being
eco-friendly means providing outstanding productsthat can be used for a long time. It makes nodifference whether the product is made of
eco-friendly components if it easily breaks down
and must be discarded, thereby increasing waste.
In some cultures, old furniture is carefully preserved
as antique heirlooms handed down from generation
to generation. In a similar vein, I believe true
consideration for the environment is about productsthat do not easily go to waste and become longtime
customer favorites.

Friendly to the Environment—a Keen Sense of Awareness Cultivatedin Europe
In 1985, we began selling our own products in Europe,
home to a culture that values old furniture.
Considered the vanguard in environmental policies,
Europe at the time had already become very awareof the environment and required a sufficient levelof environmental consideration in our products.
Compliance with environmental standards was the
key for winning recognition.
For this reason, we proactively sought to develop
eco-friendly products from the very onset of oursales. As a result of our ongoing efforts to sincerely
respond to customer demand, we not only achieved
superior performance in our products, but also

became acutely aware of environmental
considerations.

Friendly to Users—the Ergonomic Standpoint
Friendly to users—in other words, adopting anergonomic standpoint—is yet another aspect that
we keep at the center of our awareness. We strive
to maintain the user’s standpoint, to make productsthat are less stressful for the body and the eyes, andmore convenient to use. This approach has led us
to create product with diverse functionality andunique mechanisms, which in turn allows us toconsistently provide a comfortable environment
for our customers.

Development of the EcoView Concept
In fiscal 2009, we announced our philosophy of
being friendly to users and to the environment as
our EcoView concept. One example of ourphilosophy in practice is a function that automatically adjusts screen brightness depending on thebrightness of the surrounding environment. Thisfunction simultaneously reduces eyestrain—friendly to users—and saves energy—friendly to theenvironment. We have also incorporated presence
sensors that automatically switch to power savemode when the monitor is not used for a long
period, and adopted narrow bezels that do not
impede the line of sight when multiple monitors areused side by side. Flexible stands have also been
adopted for optimally repositioning the monitor
based on our EcoView concept of being
eco-friendly without inconveniencing ourcustomers.

Friendly to Users—as a Global Corporation

We recently announced the establishment of a
subsidiary in China. Our goal is to target China,
which is undergoing rapid economic development,
as a strategic priority, and bolster sales in the Chinese
medical market by developing an integrated systemthat encompasses procurement, production andsales, thereby achieving local production and local
consumption.
Over the past few years, the number of our overseas
subsidiaries has grown to seven, including the one
in China. Our approach to people holds the key inuniting employees with different cultural backgrounds
as the Eizo Group. We value a corporate climate thatoffers a creative environment characterized by mutual
respect for diverse cultures and a broadmindedexchange of views. This resonates with our philosophyof being kind to people in the context of ourcorporate activities.

parcel of quality. We recognize this philosophy as acommon thread that runs throughout all our
corporate activities. And moreover, integrity is
another common element of everything we do.
While this may seem natural enough, we are notintending to accomplish anything extraordinary.
Our philosophy is to steadfastly do what is naturaland what we should be doing. The very essence of
our CSR is to earnestly and sincerely care for people
and the earth.

Friendly to Users, and to the Environmentis the Common Thread of ourSeven Promises
In promoting our CSR, we recognize that the Eizo
Nanao Group Code of Conduct, which comprises
our Corporate Philosophy and Principles of Conduct,
serves both as the principles we must follow as wellas our promises to stakeholders. These have been
incorporated into the Seven Promises of EIZO. Our
philosophy of being friendly to users and to theenvironment introduced here, however, is not limited
to our first promise of inspiring customers by creating
and offering products of new value, or to our second
promise of supplying superior products and services
that reflect respect for the environment as part andJuly 2010

Yoshitaka Jitsumori

President, Eizo Nanao Corporation
CSR REPORT 201003

Corporate Information

OutlinePerformance Results

Company Name:

Eizo Nanao Corporation

Business Activities:

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

Established:

March 6, 1968

President:

Yoshitaka Jitsumori

Address of Headquarters: 153 Shimokashiwano, Hakusan, Ishikawa 924-8566, Japan
Group Sales:¥77.5 billion (FY 2009)

Employees:

1,462 (consolidated, as of March 31, 2010) *excluding temporary workers

Subsidiaries:

Six domestic consolidated subsidiaries・Seven overseas consolidated subsidiaries(as of March 31, 2010)

Financial Information (consolidated)
Trends in Net Sales

Trends in Operating Income

100 million

100 million

1200

120
956

1000
850

745

775

60

400

40

200

20

FY 2005

FY 2006

FY 2007

FY 2008

FY 2009

Sales and Percentage Breakdown by Product Category(FY 2009)

90

84
80

600

0

117

100

893

800

119

0

42

FY 2005

FY 2006

FY 2007

FY 2008

Sales and Percentage Breakdown by Region(FY 2009)

North America

Other 2.5%
¥1.9 billion

3.6%¥2.8 billion

Other

FY 2009

9.7%¥7.5 billion
EuropeMonitors foramusement
applications

45.3%¥35.1 billion

23.2%
Consolidated
net sales¥77.5 billion

Computermonitors

45.0%¥18 billion

Consolidated
net sales¥77.5 billion¥34.8 billion
Japan

70.7%
¥54.7 billion

CSR REPORT 201004

Our Products

For General Use

For Industrial Markets
コンピュータ用モニター

LCD monitors with superior picture quality that are widelyused in offices, schools, public facilities and homes. These
core Eizo products lay the foundation for our specialized
monitors.

Standard monitors

Optimum solutions for diverse industrial needs, such as
units incorporated into FA equipment and monitors forsecurity control inside factories and kiosk terminals.

For Amusement Markets

Game Software

We design and manufacture LCD monitors installed inpachinko equipment. These models combine the Group’s
hardware technology, gained through the design andmanufacture of computer monitors, with amusement
software development technology to offer realistic
expression, stories with a strong gaming feel, and lovablecharacters toward our goal of delivering products that
become customer favorites year after year.

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

LCD monitors for industrial use(C)SANYOBUSSAN CO., LTD.

For Medical Markets

For Air Traffic Control

A variety of solutions including monitors for displaying
X-ray images, electronic medical records and images frommedical equipment, and quality control systems formonitors installed at hospitals. Monitors with flexible arms
that allow patients to watch TV while lying down in arelaxed posture for a more comfortable medical careenvironment.

Comprehensive solutions that include main monitors for
tracking aircraft flight status, auxiliary-monitors fordisplaying air traffic control information, training monitorsand specialized high-definition graphics boards fordisplaying air traffic control data.

LCD monitors for pachinko equipment

Main monitors
for air traffic control

Medical image
display monitors

Multifunctional LCD monitorswith flexible arm

High-definition
graphics boards

For Home Entertainment

Color management LCD monitors that support thehigh-quality color reproduction and high-definition
calibration required by professionals, such as designers,
photographers and computer graphics artists, in theircreative work.

Fully HD-capable LCD monitors and LCD TVs that are idealfor displaying moving pictures such as digital videos andDVDs. PC mouse with remote control functions thatcombines the functionality of a wireless PC mouse and a
TV remote control to eliminate the hassle of shifting
between control devices for those who use their TVs andPCs simultaneously.

PC mousewith remote control functionsGame softwareAwardsTIPA Awards 2009

April 2009

EIZO ColorEdge CG242W
Our color management LCD monitor, the EIZO ColorEdge
CG242W, received the Best Photo Monitor Award at TIPA
Awards 2009 sponsored by TIPA* Europe.
This is the third time EIZO products have been recognizedby TIPA, following awards received in 2005 and 2007.

For Graphic Markets

Color management LCD monitors(C)SANYOBUSSAN CO., LTD.
(C)2009 IREM SOFTWARE ENGINEERING INC.

Entertainment monitors*TIPA (Technical Image Press Association)
A non-profit organization composed of editors from 29 professional camera and video journals in 13 countries in Europe, the UnitedStates, Canada and South Africa. Once a year, members vote on the best product in each of the photography and imaging categories
from all products launched over the previous 12 months. This award is recognized as one of the three major camera awards.

Good Design Award 2009

October 2009

FlexScan EV series LCD Monitor
Entertainment Monitor
EIZO received the 2009 Good Design Award for two products,
a FlexScan EV series LCD Monitor and an entertainment
monitor. The EV series was specifically recognized for its newenergy-saving solution, which incorporates a presence
sensor, and for its light-weight compact body. EIZO products
have received this award for 14 consecutive years.

CSR REPORT 201005

Creating New Value

Seven Promises

1

We will inspire customers by creating
and offering products of new value.
Our products are used in offices and homes around the world, and each field requires different specifications and functions.
We not only listen and respond to customers’ requests in each field, but also create and offer a new set of values that reaches farther ahead in our promise
to continue turning out products that our customers appreciate.

EIZO Solutions
In Medical Treatment Settings
Monitors play an increasingly important role in the
medical profession, where advances in digitization
have meant that a broad array of data, frommedical records to images including X-ray results, is
now displayed on a monitor. EIZO supports highly
accurate medical treatment and enhances
operational efficiency through monitor solutions
that offer high-precision displays and theoutstanding reliability required for diagnosis, alongwith control applications that consistently
guarantee the correct display of information.

In Creative Work Settings
Design and photography demand extremely
accurate color reproduction. EIZO possesses anestablished reputation for excellent color
reproduction and enjoys strong support fromcreative professionals such as graphic designers
and photographers. We broadly support their workby 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.

*Hardware calibration
Calibration method for setting the monitor display environment toenable users to directly adjust the color display by adjusting internalparameters

On the Frontlines of Finance
High-quality display and reliability are required on
the frontlines of finance to keep pace withconstantly changing exchange rates and the needto make instant decisions. EIZO monitors havebeen widely installed to meet these needs. And for
trading room environments with multiple,
side-by-side monitors, we offer products withthinner screen rims that do not impede the line ofsight, thereby enhancing operational efficiency.

Supporting Universal Design
Universal design is a type of design thatcan be readily understood and used byanyone. Realizing this requires confirmingthat results can be easily viewed byanyone at the production stage. EIZO
offers color vision deficiency simulation
software for its ColorEdge series monitors
targeted at the graphics market. The
software provides clear, real-time displayof color simulations as seen by persons
who are color blind, enabling users to
confirm the display of colors from a
universal design perspective, andconsequently improving the efficiency of
creative work.

Enriching Home Use
A broad range of digital devices such as digital
cameras and videos are available today for homeuse. To meet the demands for beautiful display of
still photographic images and high-quality
playback of moving images, EIZO offers new
approaches for household digital environments byequipping monitors with a wide variety ofconnectors that enable users to hook up the latest
digital devices.

CSR REPORT 201006

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 an integral part of product quality,
we have been consistently working 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,and also consume less energy. At the same time, we believe it is important for a product to be used over a long period of time.

EIZO’s Quality Assurance System

Quality Management Policy
The Eizo Nanao Group is committed to continually fulfilling customers’
expectations by proposing and offering high quality products, services, and solutions.

We therefore:

1 Aim to develop high quality products by pursuing the world’s highest level of technology.
2 Carry out our responsibility for environmental preservation by actively reducing the effects on
the environment in every business activity from product development to manufacturing tosales and service.

3 Set the quality target which are carried out and reviewed by all the employees in every
business activity.

4 Establish a quality management system, review it periodically, and continually improve it tosustain its validity and suitability.

5 Comply with legal and social requirements.

Under our Quality Management Policy, we seek toensure reliable long-term use of EIZO brandproducts by establishing an integrated quality
control system that encompasses development
and manufacturing to after-sales service andmaking continuous improvement throughout thesystem.

Development Process
We develop and verify our products from theperspective of our customers 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 confirm that theperformance and functionality of our products aremaintained even after long-term use.

Manufacturing Process
All EIZO products are manufactured under an
integrated production process at our own factories,
from the manufacturing of substrates to the final
finished product. While automated robots are usedin some processes in which results of human work
tend to be inconsistent, all display performance
inspections rely on the human eye, from theperspective of customers who will use the product.

After-sales Service
Under our system for ensuring that customers canuse 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 productdevelopment.

*EMC performanceElectro-Magnetic Compatibility

CSR REPORT 201007

Product Environmental Considerations

Basic Product Development Sequence
In product development, we endeavor to enhancethe environmentally sound quality of our products,
including compliance with domestic and overseas
legal requirements and standards as well as due
consideration for industry trends and social
conditions. In addition, we conduct productenvironmental assessments in accordance with ourown Environmental Compliance Standards tomeasure the environmental soundness of products.
These Environmental Compliance standards arelinked to our system for developing, implementing
and meeting companywide environmental targets
for each fiscal year, and are utilized to enhance theEnvironmental 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

environmental soundness of our products. In linewith our corporate stance of steadfastly maintaining environmental vigilance, we annually revise theEnvironmental Compliance Standards to reflectchanges in laws, regulations and industry trends.
We have also reinforced our evaluation and control
of chemical substances based on our Green
Procurement Standards so that they correspondwith regulations on chemical substances, such as
the RoHS Directive and REACH Regulation, which
are becoming increasingly more stringent,
particularly in Europe.

Example of Product Environmental Assessment
Category

Content of Assessment

1. Decomposability
and recyclability

Can be disassembled to the unit level (disassembly is undertaken by specialized companies)
Can be disassembled using standard tools (disassembly is undertaken by specialized companies)
Component label is attached to plastic parts weighing 25g or more
Plastic parts weighing 25g or more are made of recyclable materials
Recycling label and component label are attached to plastic packaging materials
Cardboard made of recycled paper is used in packaging boxes

2. User’s manual

Includes information on product collection after use

3. Energy conservation

Complies with the ENERGY STAR program

Does not use ozone depleting substances as designated by the Montreal Protocol
4. Regulations on
during internal production processes
hazardous substances
Plastic parts weighing 25g or more do not contain flame retardants based on chlorine or bromine

Product Planning
Product planning
Product design planning
Product environmental assessment(evaluation of prototypes)

Product improvements
Finalization of products

Application
for new
products

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. This reflects our confidence in the quality of our products,
allowing us to state that the warranty reflects this quality in an easily
understandable form. We believe that providing support to ensure continued
safe use from the time of purchasing to any necessary repairs is an intrinsic
component of our products. We promise to continue to be worthy of ourcustomers’ trust and meet their expectations.

CSR REPORT 201008

Product Environmental Considerations

Compliance with Environmental Labeling Standards and Legal Requirements
We not only observe the legal requirements ofJapan and other countries, but also comply withenvironmental 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
after TCO’03 and TCO’06, one of the most widely
recognized standards across the world, and
ENERGY STAR 5.0 were announced in 2008. EIZO
was involved in the planning of these standards.
While both standards include extremely stringent
requirements, we believe it is our mission todevelop products that are in full compliance.

TCO
Efforts to make our products more environmentallyfriendly have proceeded largely in response to theevolution 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, the current version.
In addition to environmental items, this standard
also covers safety, electromagnetic radiation, andergonomics, giving it a comprehensive character.
EIZO has consistently participated in the formulation 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 the years ahead we will continue
to recognize the importance of meeting thisstandard in the development of new products.

ENERGY STARThe ENERGY STAR Program was launched by the
U.S. Environmental Protection Agency in 1993 to
help reduce the power consumption of computersand related devices. The International ENERGY STAR
Program was adopted in Japan in 1995 on the basisof an agreement with the U.S. government.
We have participated in this program from thevery beginning, and since becoming the firstregistered monitor manufacturer, we have had
virtually all subsequent products registered under
the program.
ENERGY STAR Ver. 5.0 went into effect in October
2009. While the new standard iseven more stringent, our products
have been in compliance since itwent into effect. Future products
will comply as well.

EPEAT
EPEAT is a comprehensive evaluation standard forthe environmental impact of personal computersand 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 coveringa broad range of items including reduction of
hazardous substances, recyclable design, long-life
design, recovery and recycling, and corporate
activities. Products are rated Gold, Silver or Bronze
depending on the level of compliance with theoptional requirements. EIZO has several monitorsthat were rated EPEAT Silver. And since 2009, we
have several products rated Gold.

RoHS Directive and WEEE Directive
The RoHS Directive is a European regulation
restricting the use of hazardous substances thathas been enforced within the European Union
since July 2006. The directive covers electrical andelectronic equipment and restricts or bans the useof six substances that are harmful to the global
environment or human health: lead, mercury,cadmium, hexavalent chromium, PBB* and PBDE**.
Products that do not comply with the RoHS
Directive cannot be sold in Europe. We began theswitchover 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 throughpromotion of the three Rs of Reduce, Reuse,
Recycling for used electrical and electronicequipment. We have responded by displaying
recovery and recycling symbol logos, providing
information on disassembly and hazardous
substances for recycling facilities, and developing asystem for recovery and recycling.

PC Green LabelThis environmental labeling program is administeredby the PC3R Promotion Association. The program isbased on three concepts:(1) environmentally sound design and manufacturing;(2) post-use recovery and recycling of products;(3) environmental information disclosure.
EIZO has participated in revising the program as amember of the governing expert committee. We havealso actively sought certification for our FlexScan andColorEdge series and intend to maintain this policy.

* PBB : Polybrominated biphenyl**PBDE : Polybrominated diphenyl ether

CSR REPORT 201009

Sound Development as an International Corporation

Seven Promises

3

We will pursue sound development
as an international corporation.
As an international corporation, we respect the cultures and values of diverse countries across the world in choosing the best solution.
In order to ensure the delivery and ongoing worry-free use of our products worldwide, our group companies in Japan and abroad, 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.

One Country/Territory,
One Distributor System
In our overseas sales, we have adopted a one
country/territory, one distributor system in which asingle subsidiary or distributor is responsible for thesales of a country or territory. This unique systemenables us to accurately discern customer needs ineach country or territory by distributors who fully
understand the culture and values of theirrespective regions and share information moresmoothly. It also allows us to offer products
through sales
methods thatare appropriate for eachcountry or
territory.
Once a year, distributors from around the world
gather for the meeting, EIZO UNITED, to exchange
information and acquire more knowledge.

Eizo Group’s Overseas Sales Network
Our products are well received around the world, with current sales in more than 60 countries and territories through Group companies,
including four in Europe, two in the United States and one in China, along with 25 global distributors.

Germany

EIZO GmbH

SwedenEizo Europe AB

Germany

EIZO Technologies
GmbH

USA

EIZO NANAO TECHNOLOGIES INC.

Switzerland

EIZO NANAO AGJAPANEIZO NANAO CORPORATION (Headquarters)

USA

Tech Source, Inc.

China

EIZO Display Technologies (Suzhou) Co., Ltd.

Globalization of
Development and Production
The Eizo Group has a total of five production bases,
two in Germany and one in the United States,
China and Japan, a network that maintains a
coherent development and production system
within the Group. This system enables us to apply
stringent quality control from development toproduction, promote the creation of development
synergies that maximize the strengths of each base,and construct an optimal production system foreach market and customer.

Headquarters
Group companies
Location of distributors
Countries in which Eizo products are sold

CSR REPORT 201010

Strong Bonds of Trust with Stakeholders

Seven Promises

4

We will seek to build and maintainstrong bonds of trust with stakeholders.
We will sincerely engage with stakeholders to forge closer bonds oftrust through communication channels while fulfilling our responsibilities.

Relationship with Each Type of Stakeholder

EIZO’s Responsibility

Customers

Communication Channels
Developing Better Products

In addition to offering products that satisfy
customers, we listen closely to their feedback andprovide useful support.

Inspiring customers by creating andoffering products with new value.

Shareholders
We strive to gain the understanding and trust of ourshareholders by providing fair and accurate information on
management policies, business strategies and financial
performance, and by maintaining transparency in our
corporate management.

Customers

Develping products from thecustomer’s standpoint.

Setting up Contact Centers as Customer Liaison Points−Responding to questions and inquiries before and after purchase−Listening to customer opinions
Sharing information with relevant departments and considering
incorporation into products

Responding clearly to questions andinquiries.

Interacting with customers at showrooms and through direct dialog

Thoroughly responding to customer
requests and feedback.

Providing and collecting information through participation invarious trade shows

Suppliers

Providing timely information via the corporate website

We view suppliers as essential and importantpartners in the continuation of our business, andforges powerful relationships by sharing management policies and technical strategies.

Shareholders

Enhanced corporate value

Local Community
We seek to build solid relationships with thelocal community to gain their understanding
and cooperation in pursuing our business
operations. We are committed to fulfilling our
responsibilities as a corporate citizen.

Employees
We are a company focused on creative
development that requires theimaginative ideas and powerfulmotivation of its employees. We therefore
work to create a broadminded corporate
climate and a workplace in which
employees have a sense of security, andwe support our employees in theirself-development.

Timely and appropriate disclosure of
information

Fair business transactions
Suppliers

Local
Community

Explaining corporate policy and broadening
understanding among suppliers
Preventing accidents and disasters at eachbusiness site
Protecting the regional environment
Cooperating with regional development
and promoting culture

General Shareholders Meeting (holding informal gatherings)
Stable dividend payment
Sharing information and creating mutual understanding as partners
Establishing selection standards, dealing with suppliers on an equal
opportunity basis
Holding material procurement briefings
Receiving company visits
Sponsoring various events and organizations
Supporting environmental conservation activities

Motivating workplace environment
Employees

Developing excellent personnel

Providing various educational programs

Promoting work-life balance

Creating workplaces that reflect employee opinions and soundlabor-management relations through consultation conferences

Securing safety and health

CSR REPORT 201011

Strong Bonds of Trust with Stakeholders

Relationships with Customers
We strive to establish direct communication withcustomers through various points of connection tocomprehensively answer questions and inquiries, andto respond to customer requests and feedback.

Relationships with Shareholders
Breakdown of call categories

11.5%
Other

9.4%

Eizo Contact Center: Customer Liaison
Eizo Contact Centers have been set up as aconvenient way for customers in Japan tocommunicate with the Company. These centersprovide answers to inquiries related to productspecifications and operating procedures, productpurchasing and technical questions throughtelephone, e-mail and fax.
Inquiries and requests received from customers
are shared by relevant departments within the
Company, and we strive to incorporate thisinformation into product development as well as
information provision to customers. In addition, we
regularly conduct customer satisfaction surveys toproactively solicit opinions and use them tomaximize customer satisfaction.
Feedback system for all types of customer input
Domestic

EIZO
Contact Center
EIZO Galleria
EIZO Direct
Sales companies/Retail stores

Customers

EIZO NANAOCORPORATION

25.0%
Functions/operation proceduresSpecifications

9.5%
Orders/sales/
optional service related

17.3%

Product 10.5%
compatibility

16.8%

Consulting/product overview

Troubleshooting/guarantee/repairs(FY 2009)

Eizo website
Via the Eizo Nanao Corporation website, we mainly
provide information on our products, along withinformation on customer support, hiring, corporate
data and investor relations. In particular, we present
detailed information on our products’ features andappealing characteristics using images and movies
in an effort to provide customers with information
they need in a way that is easy to find andunderstand, while striving for timely disclosure ofnecessary information. Our website is updated on adaily basis to present information in a progressively
comprehensible manner while incorporating theopinions and requests we receive from customers.

We seek to earn and maintain the trust ofshareholders and investors, and conducts investor
relations activities based on the principle ofproviding fair and accurate information on
management policies, business strategies andfinancial performance to all stakeholders.

Company Presentations for Investors
We invite institutional investors to our semi-annual
earnings results briefings in Tokyo, where we reporton our management policies, activities andperformance. We also hold briefings for individual
investors to promote a greater awareness of ourcompany.

General Shareholders Meeting
We try to schedule our annual general shareholders
meeting for a date that is convenient for shareholders by avoiding days on which other such meetings
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 theproposed resolutions and the state of ouroperations.
We also set aside space at the meeting site fordisplaying and explaining our products in an effort
to provide shareholders with a deeper understanding of our company and products through directcommunication.
In addition, we invite shareholders to an informal
gathering following the general shareholders
meeting. During these occasions, the president
offers a detailed review of EIZO's philosophy andbusiness. We think that this is a special opportunity
for receiving honest opinions as well as questions
from shareholders. We also strive to respond to all
opinions and questions as comprehensively as
possible.

Shareholder Composition
Treasury stocks 1.80%
Other 7.03%
corporations

1.04%

Japanese
securities companies

13.9%

Foreign corporations
and other foreign investors

27.4%

48.9%
Individuals
and others

Financial
institutions(FY 2009)

Overseas

Overseas subsidiaries
Distributors
in each country

Product display and explanation corner

CSR REPORT 201012

Strong Bonds of Trust with Stakeholders

Relations with Suppliers
We regard suppliers as essential and importantpartners 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 withprocurement policies based on the principles ofmutual coexistence and prosperity. Factors weconsider essential in evaluating suppliers include astable management foundation, supply capability,
technological expertise, compliance with laws andsocial norms, and consideration for the global
environment. We select suppliers who meet thesestandards.
Selection Standard for Suppliers
1Sound management

2

Technological excellence that will contributeto the quality of our products

3

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

4

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

5Compliance with relevant laws,
consideration for the environment,
and active involvement in environmental preservation

Relationships with the Local Community
Building Bonds of Trust with Suppliers

As a manufacturing company whose main
production operation is assembly, we place a highpriority on controlling quality, delivery schedules,
and the cost of parts and materials we procure
from suppliers as well as on ensuring that theiroperations are environmentally sound. We provide
opportunities for regular exchanges of information
addressing these issues and ensure that we andour suppliers share a common understanding ofeach others’ management policies and technicalstrategies. This approach ultimately results in theachievement of substantial results and the creationof future value that neither partner could haveachieved alone. We intend to continue building
strong partnerships based on these attitudes andefforts.

Materials Procurement Briefing
We conduct materials procurement briefings twice
each year for our suppliers. During these briefings
we go through our procurement policy andrequest their support, green procurement trends
and information. We also report on the results ofquality improvement efforts and explain related
policies. Many suppliers attend these briefings,
which contribute to a greater understanding of
EIZO and to gathering information later utilized inbusiness decisions.

We fulfill our responsibility as a corporate citizen
through a variety of activities, such as protecting
the regional environment, cooperating with
regional development and publicly disclosing
information. We are committed to developing ourbusiness while maintaining good relationships withthe local community.

Social Contribution Activity
For Children All Over the World
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 caps we collect are delivered
to the organization through local waste disposal
companies. In 2009, we collected 216kg of PET
bottle caps, equivalent to the value of vaccines for
200 people.

Educational and Cultural Support

Cooperation in Promoting Culture
We co-sponsor Orchestra Ensemble Kanazawa in
Ishikawa Prefecture. This creates an opportunity for
employees to appreciate cultural expression as partof their benefits program. We have also
co-sponsored La Folle Journée Kanazawa Music
Festival as a member of the executive committee
from the very beginning. We intend to continue
contributing to local culture and regional
development.

For Regional Development
Ishikawa Keiei Tensho Juku
The Ishikawa Keiei Tensho Juku is a project aimed atenhancing practical thinking 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 theunified efforts of industry, government andacademic institutions. As a supporter of thisobjective, we advise on the operation of thisproject and offer lectures. EIZO’s own story is
included as a case study in the curriculum. We also
cooperate in producing educational texts andclasses.

©LFJ Kanazawa Executive Committee

Paper Recycling Initiative
Office Paper Recycle Kanazawa
This organization is a united effort by companies
and organizations in Kanazawa City and its suburbs
for building and operating a regional circle of paper
recycling. As a member of this activity, we separate
and collect wastepaper (so called “office paper”
which includes copier paper, etc.) and purchasing
and using recycled products (e.g., toilet paper).

CSR REPORT 201013

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.
We believe each individual employee must raise their awareness of compliance and the company must conduct sound corporate governanceto provide our stakeholders with trust through the ongoing creation of corporate value.

Corporate GovernanceCompliance
Our Philosophy on Compliance

We recognize compliance as one of the mostimportant concerns of management for fulfilling
our social responsibility at the highest levels, andthis includes ethical responsibility. Our action
guidelines on compliance stipulate that we never
become involved in illegal or unethical acts, 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 toensure effectiveness, and steadily promote thesemeasures based on an annual plan from along-term perspective.

Compliance Training
We conduct mandatory compliance training for
new recruits. As for officers and other employees,
compliance and regulatory-related information arealways available on the corporate intranet, and weregularly provide training material to encouragethem to update and enhance their knowledge
toward establishing full awareness of the role andimportance of compliance and cultivating an
ethical mindset. We established the Eizo Nanao
Group Code of Conduct to clarify our corporate
philosophy and action guidelines in concrete terms
and to serve as a standard in decision-making,evaluation and in the actions undertaken throughthe course of our business activities. We also seek
to instill a thorough awareness of complianceamong all Group employees in Japan and overseas
while further enhancing our compliance system
based on the prior establishment of the Compli-

ance Committee and by further strengthening ourmanagement structure.

Strengthening the Information
Management System
We ensure proper handling of confidential
information in accordance with our establishedguidelines. 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 to provide answers toquestions and advice on problems, concerning
legal issues or the content of the code of conduct,that may arise in the course of our operations. In
addition, we strive to ensure early detection ofillegal activity and to prevent misconduct byoperating an internal notification program that
requires officers and employees to report to theliaison point immediately upon learning ofactivities in violation of laws or ethics, regardless of
their own involvement. We ensure that the privacyof the reporter is protected and that the individual
will not be placed at any disadvantage forreporting the violation. Based on establishedprocedures, immediate action is taken in response
to notification, including a fact-finding investigation, a report to the Ethics Committee and theissuing of a termination order or an operational
improvement order. We received no reports ofviolation in fiscal 2009.

We strive to be a company that consistently produces satisfactory results with the support of our stakeholders. To this end, we view the ongoing improvement of corporate governance as a vital management concern.

Corporate Governance System
General meeting of stockholders
Election/dismissal

Board of Corporate Auditors(4members, including 3 from outside)

Election/dismissal

Auditing

Board of Directors(7members, including 1 from outside)

Accounting Inspector

Separation of decision-making
and implementation

Inspectionof accountsl

Management conference
Internal auditing department

Auditing(Audit Office)Legal auditing department

ReportOperating officers
ReportAuditing(General Affairs Division)

Instructions/supervision

ReportInstructions/supervisionCorporate Philosophy
Action Guidelines
Code of Conduct

Department chiefs

Instructions/supervision

Employees

Overview of Management Organization
Board of Directors
The Board of Directors meets monthly and as
required to support timely decision-making fortoday’s business environment. All importantmatters related to the board’s decisions are
discussed and progress reports on business tasks
are presented. Among the seven Board of Directors,
we have appointed a single outside director (as ofJune 24, 2010) to provide supervision and advice
from a third-party perspective and thereby increase
the transparency of management decisions.
The current outside director possesses ample
experience and broad insight, both as a corporate
director and an auditor, as well as an objective
perspective that is independent from management
responsible for the execution of operations. He wasselected based on our judgment that management
would benefit from his appointment. We do notforesee any conflicts of interest between theoutside director and our general shareholders andtherefore have appointed him as an independent
officer.
Management Conference
The management conference is convened as
required to support decision-making by the Boardof Directors. The conference studies and reports on
measures regarding key business operation issues
and tasks at hand and their progress.
A system of operating officers has been put into
place to accelerate strategic decisions andstrengthen the business operation system, and the
management conference is composed of directors(excluding the outside director), a full-time auditor
and operating officers.

CSR REPORT 201014

Strict Respect and Compliance with both the Letter and Spirit of the Law

Risk Management
Board of Corporate Auditors
We have adopted a system of corporate auditors.
The board of corporate auditors consists of four
members (one full-time and three part-time, as ofMarch 31, 2010) and includes three outside
corporate auditors. Corporate auditors attend key
meetings of the Board of Directors. The full-time
corporate auditor reviews and discusses withdirectors important documents, such as draft
proposals and contracts. He also collaborates 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 theaccounting auditor and participates in meetings
between the accounting auditor and our company.

Internal Auditing System
The Audit Office reports directly to the president
and functions as the company’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 the president.
All findings of these internal audits are reported tothe president. Auditors for each internal audit are
appointed by the general manager of the Audit
Office as necessary.

Internal Control System
We established our basic policy underlying asystem that ensures directors execute their tasks incompliance with the law and the articles ofincorporation, along with a system for ensuring theappropriateness of other operations, at a Board of
Directors meeting in May 2006 (revised May 2007).
Based on the policy, we have proceeded todevelop related systems and to complete thegroundwork for establishing an internal control
system. Prior to these efforts, an internal control
system for financial transactions was established inaccordance with the Financial Instruments andExchange Act, and we exercise thorough control
over our financial operations.

As part of our internal controls, we have establishedand operate a risk management system based on agroup-wide perspective. The company’s risk
management activities are led by the Management
Conference and the Risk Management Committee.
In fiscal 2009, we reviewed 76 major vulnerabilities
that remained under management since theprevious fiscal year. We reduced the number to 62
items and confirmed existing countermeasures andimplemented additional measures for each risk. In
March 2010, we laid out new guidelines andconducted a further review from the standpoints oflevel of impact and frequency of occurrence,
in-house responsiveness, involvement of multiple

organizations, increased public concern, andheightened sense of crisis. As a result, major
vulnerabilities were narrowed down to 19 items,
which will be discussed at the Management
Conference for deliberation, including an outbreakof a new strain of influenza virus, occurrence ofearthquakes and fires, and leakage of confidential
information from an employee to a third party.
While none of the major vulnerabilities wererealized during fiscal 2009, we will continue toreview our countermeasures to further limit therisks. At the same time, our immediate task is theformulation of a Business Continuation Plan (BCP)
for risk resulting from disaster risk.

Risk Management System

Chief Risk Officer (CRO): Executive Vice President

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

Risk Management Committee
ChairmanVice Chairman
Full-time Members
Part-time Members

General Manager of the General Affairs Department
General Managers of the Personnel Department, Accounting Department,
Information Systems Department, and Audit Office
Representatives responsible for promotion of risk management
Employees called upon as required by specific topic

Officer Compensation (FY 2009)
Directors (excluding outside director)

7¥210 million

Corporate auditors

1¥3 million

Outside officers

5¥26 million(excluding outside corporate auditors)• Amounts paid to directors do not include the employee salary portion
paid to employees concurrently serving as directors.
• Basic compensation is determined under the Officer Compensation
Rules according to the office or concurrent positions held by theofficer.
• Officers’ bonuses are determined based on the performance-based
compensation system that explicitly limits bonuses to within 3% of
net income for each fiscal year (up to a maximum of ¥200 million).

Topic-based working groups

Risk Management Secretariat
Secretary General
Officers appointed from General Managers of the General Affairs
Department and the Accounting Department by the Chairman of
the Risk Management Committee based on deliberations by the committee

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

Departments responsible for administrative work
Staff appointed from the General Affairs Department, Accounting
Department, Information Systems Department and other departments by
the Chairman of the Risk Management Committee based on deliberations
by the committee• The upper limit for annual fixed-amount monetary compensation paid
to directors is ¥300 million (excluding the employee salary portion).
• The upper limit for annual compensation paid to corporate auditors is¥35 million.

CSR REPORT 201015

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
We undertake various activities to create a
motivating workplace environment that cultivates
excellent human resources for the sake of thelong-term growth of our personnel as well as
further corporate development.

Employment
To ensure that EIZO continues to develop
cutting-edge imaging technology for creating andoffering new values as a company focused on
creative development, we are expanding ourengineering staff and creating a motivating
workplace for our employees.
Employment (As of March 31, 2010, Eizo Nanao Corporation)
Number of employees(including contract workers): 760

Men : 400
Women : 360

Engineering staff

320

Foreign nationals

23

Graduate recruits

14 *Joined company in April 2010

Mid-career recruits

6 through March 2010

Average age
Average length of service
Employee turnover
Average annual
working hours*Joined company from April 2009

Developing trust-basedlabor-management relations
Mutual understanding is the cornerstone oflabor-management relations. In keeping with thisfundamental point, we endeavor to develop trustin labor-management relations by encouraging
dialog through the establishment of a consultation
conference. These conferences discuss awide-range of topics, from labor-managementagreements to ways for improving the work-lifebalance and employee benefit packages.

Promoting the Careers of
Persons with Disabilities
Persons with disabilities at Eizo Nanao Corporation
represent 2.2% of our workforce, exceeding theminimum legal requirement of 1.8% as of April
2010. These people are pursuing careers in many of
our worksites, and we intend to continueenhancing the workplace environment andexpanding their work opportunities.

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

Opportunities forrecreation and exchange
We support employees in their varied sports andcultural activities within the company bysupplementing costs and permitting use ofcompany facilities to encourage participation.
We also offer opportunities for recreation andexchange through numerous 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 ofworking hours, we undertake work improvement
activities on a unit-by-unit basis, observe a weekly
no-overtime day, and vigorously encourage
employees who have not taken sufficient paid
leave to take it.

36.3 *As of March 31, 201012.8 years *As of March 31, 2010
3.0% *FY 2009
1,913 hours *FY 2009

Paying due respect to human rights
To curtail behavior that undermines individuality at
the workplace and throughout our operations,such as discriminatory remarks or actions andsexual or power harassment, we have clearly statedour position on the matter in our Code of Conduct
and keep all employees informed about thisposition.

CSR REPORT 201016

Broadminded Corporate Culture

Human Resource Development Efforts

Securing Safety and HealthSupporting career development

Reinforcing management capabilities

Apart from seminars and training required for ouroperations, Eizo Nanao Corporation provides acomplete and diverse range of educational
opportunities for employees to select from on thebasis of their own career plans. These programs varyfrom support for obtaining qualifications to in-house
English language classes.

We recognize that training management candidates isa key task that is directly linked to cultivating humanresources for shouldering the future of the company.
Eizo Nanao Corporation undertakes selective
training for this class of employees. Selected members
from diverse departments acquire qualities requiredof managers, such as management ability, leadership,
and critical thinking. This approach affords various
benefits, including the creation of a solid in-housenetwork through training. We also offer training for
newly appointed managers to deepen theirunderstanding of fair job evaluations and appropriate
allocation of work.

Emphasis on educating
younger employeesFirst-year employees are the target audience forprograms on organizational detail, basic knowledge
required for adulthood and independency, on-site
factory training, and on-site sales training to learn
about the foundations of our company. For our new
recruit engineering staff, we provide technical training
to ensure they acquire a broad base of knowledge 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 each department. Managers draw up
three-year career plans in consultation with young
employees as the basis for a systematic OJT program.

We invest significant management resources into thedevelopment, design and production of new
products. To continue creating products with highadded value, we believe we must maintain workplacesafety 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.

Medium-Term Plan (Fiscal 2010 to 2012)
Promoting and establishing voluntary safety
management and health management based on
self-awareness.
Fiscal 2010 Targets/
Key Action Points and Fiscal 2009 Performance
Management
area

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 ahealthy and safe working environment for all
employees. This is achieved through management of risk factors related to safety andhealth.Specifically, we constantly strive to
identify unacceptable risk factors in theworkplace and neutralize them, with theultimate goal of eliminating workplace
accidents.

Safetymanagement

Targets/key
action points

Fiscal 2009
performance

Zero occurrence ofworkplace accidents,
including traffic
accidents

By implementing
risk aversion
measures against
intolerable risks,risk levels werelowered in threeout of six cases

Key point:
Continued risk assessment
and reduced workplace risks
100% follow-up
on checkup results

HealthKey point:
management Promotion of healthmanagement activities
based on self-awarenessEvaluation

Compliance rate forfollow-up remained
below 90%

○ : achieved, △ : nearly achieved

CSR REPORT 201017

Environmental Management

Seven Promises

7

We will strive to coexist in harmony with the environmentand society, as a globally responsible corporation.
We are conscious of the importance of environmental preservation as a common issue for all humankind,and are committed to do our utmost to protect the environment in all aspects of our corporate operations,with particular emphasis on efforts that result in environmentally sound product specifications.

Environmental Management System
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 theenvironment 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 basedon a clear understanding of such requirements as well as the environmental impact of our corporate
operations and products. These objectives and targets are reviewed on a regular basis to achieve
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 used products
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 reserving the environment.

After establishing an environmental management
system under our Environmental Policy, we obtained
ISO 14001 certification in July 1998. Since then we
have implemented measures for handling waste andreduced resource and energy consumption. We havealso taken a step farther in light of a number offactors, including society’s movement toward
environmentally sound products and growing public
interest in eco products, by operating our environmental management system, which emphasizes
environmental targets centered on environmentallysound products.

Activities under the Environmental
Management System
As in fiscal 2008, we incorporated many tasks formeeting our environmental targets for fiscal 2009 thatwould achieve results in product specifications. We
also sought to accomplish these tasks and targets by
sharing them with in-house organizations, including
the design and development departments. We
successfully reduced power consumption duringsuspension and use, exercised stricter control overchemical substances used in parts, and achieved
manufacturing that meets advanced environmental
standards, which are being applied primarily inEurope and the United States.

Environmental Management System
AuditsOur ISO 14001 certification was maintained andupdated in fiscal 2009 after a third-party institution
conducted an external audit. Furthermore, in view ofthe strengthened awareness in recent years ofmanagement audits for controlling chemical
substances, we conducted audits dedicated to this
aspect internally as well as with clients.

Environmental Education Activities
We have set up an Environmental Promotion
Committee composed of a cross-sectional selectionof personnel to enhance the shared awareness of ourunique in-house activities for environmentally soundproducts. Through the committee, Environmental
Promotion Coordinators for each department provide
concrete feedback on the environment surrounding
the company, environmental considerations requiredfor our products, and actual progress achieved
through our efforts, thus enabling us to share a morepractical awareness of environmental considerationand to more thoroughly educate employees.

Raising Customer Satisfaction
Action5

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 and energy,
and to the protection of our global environment.

Check

Environmental
Management
SystemPlan

Do

Stakeholder

CSR REPORT 201018

Environmental Management

Overall Environmental Impact of Business Activities
Environmental Impact by Area

Parts manufacturers andpurchasing companies

Eizo Nanao MS Corporation

Japan • Overseas

Operations

Energy Usage:
99,876GJ

Emissions of CO2:
4,938t-CO2

Energy Usage Breakdown:

Waste

INPUT

Copier paper:
6.0t

OUTPUT
Eizo Nanao Group

Water Usage:
44,105m3

Nanao Plant

Hakui Plant

Assembly of printed
circuit boards for
Eizo Nanao Corporation products

Assembly of
Eizo Nanao Corporation products

37,08853,01799,876

98

372

451

921

Kerosene (kl)2727

LPG (t)139

139

Electricity (10,000 kWh)
EnergyResources

Total

9,771

Total Energy Usage (GJ)Electricity: 921 million kWh
Kerosene: 27kl
LPG: 139t

Eizo Nanao Corporation
Headquarters area*

Area

Waste Breakdown:
Industrial waste: 329t
General waste: 20t
Wastepaper: 262t
Recycling Rate: 96.7%

Use and disposal
by customer
Japan • Overseas

Copier paper (t)

0.2

1.1

4.7

6.0

Water usage (m3)

2,304

2,383

39,41844,105Emissions of CO2 (t)

473

1,797

2,668

4,938

Industrial waste (t)

77

67

185

329

General waste (t)

1

4

15

20

Wastepaper (t)

29

79

154

262

Recycling rate (%)

97.4

95.1

97.5

96.7

Waste

Collection and recyclingof used products

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

*Includes data for Eizo Support Network Corporation and Nanao Agency Corporation located within the area (site).

CSR REPORT 201019

Environmental Management

Environmental Targets/Performance Report
As in fiscal 2008, we focused our targets on environmentally sound design.
As a result, we achieved results exceeding 75% in seven initiatives, over 50% and under 75% in eight initiatives, and under 50% in one initiative.
Scope: Eizo Nanao Corporation Headquarters area and Eizo Nanao MS Corporation
Environmental theme

Efforts to prevent
global warming—CO2 reduction

Environmental
objective• 9.21 million kWh

Reduce electricity consumption—up to 10 million kWh/year

Reduced fuelconsumption

Reduce consumption of fuel—LPG: up to 130 t; kerosene: up to 36 kl• LPG: 139 t; kerosene: 27 kl

Reduce consumption of fuel—LPG: up to 150 t; kerosene: up to 33 kl

Tracking CO2
volumeImplement product LCA• Closely monitored carbon footprint deliberations by the Ministry of Economy, Trade and Industry

Consider introduction of carbon footprint assessment

Environmentallysound product design

Reduce product energy consumption• Developed a model equipped with ambient light sensor• New EV series achieved power consumption of 1 W or below in sleep mode and 0.1 W or below in off mode

Further reduce electricity consumption of products—
0.1 W for sleep mode, 0.1 W for off mode

Increased transport
efficiency

Increase product transport efficiency• Implemented compact packaging by separating stand bases

Increase product transport efficiency (promote lightweight, compact
products)

Green procurement

Green purchase of office supplies• In-house dissemination of information on products eligible for green purchasing as recommended items

Green purchase of office supplies

Reduce industrial waste—
up to 360 t for industrial waste generation,
up to 7.6 t for purchases of copier paper• Industrial waste generation: 329 t• Purchases of copier paper: 6.0 t• Industrial waste generation: 340 t• Purchases of copier paper: 6.5 t

Introducing specifications for products that have no unnecessary
accessories• Removed unnecessary accessories from 7,300 units

Promote reuse of office supplies• Promoted reuse of office supplies and in-house furniture and fixtures through the corporate intranet

Expand use of recycled materials in products• Considered use of recycled plastic materials in products

Target: 96% recycling of waste generated on company premises• Recycling rate of waste generated on company premises: 97%

Announce product collection system• Disclosed information on product collection through the corporate website and CSR Report• Implemented trade-in and resale of TV sets

Reducing
consumption ofchemicalsManagement and limitation of emissions and transport of toxic
substances• Changed cleansing agent used in the substrate assembly process to one with lower environmental impact

Management and limitation of emissions and transport of toxic substances

Green procurement

Management of chemicals used in products• Introduced new evaluation and control system for chemical substances

Management of chemicals used in products(Started management under new system)

Implement in-house education• Implemented environmental training for all employees

Implement in-house education

Disclosure ofenvironmental
information

Report corporate environmental activities• Published CSR Report in accordance with GRI application level C• Registered companies participating in the Team Minus 6% campaign,
set up website for in-house publicity, utilized promotional stickers and name card ads• Disclosed product environmental information through the corporate website and catalogs• Introduced products based on environmentally sound concepts through the corporate website
and e-mail magazines

Report corporate environmental activities

Survey ofmarket trends

Provide in-house feedback on market needs and trends• Collected information on local environmental standards from overseas subsidiaries and distributors,
implemented ongoing internal feedback• Conducted research on power-saving effects of EcoView Sense

Provide in-house feedback on market needs and trends

Standards compliance

Compliance with environmental laws and standards• New models achieved compatibility with ENERGY STAR 5.0 and TCO Display 5.1

Comply with environmental laws and standards

Reuse

Recycle—Managementof chemicals

Educationand training

Environmental
communication—Maintaining
communication

Environmental
compliance—Compliance withenvironmental laws
and standards

Fiscal 2010 targets

Reduce electricity consumption—by 10.45 million kWh/year

ReduceEnvironmental issues

Selfevaluation

Reduced power
consumption

Creating asustainable society—Three R’s(reduce, reuse, recycle)

Fiscal 2009 actual results

Fiscal 2009 target

In-houseenvironmental labeling• Developed EIZO Eco Products 2009—
Promote reuse of office supplies• Expand use of recycled materials in products• Review collection routes for used commercial products—(The term “Eco Products” will be used to describe EIZO’s environmental efforts
as a whole and will be deleted from the fiscal 2010 environmental targets.)○ : Results exceeding 75%, △ : Over 50% and under 75%, × : Under 50%

CSR REPORT 201020

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 to General 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 on company 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.

2003

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.

2004

Launched efforts to comply with the RoHS Directive.

Started collecting and recycling commercial products in response to requests and over an expanded region.
Implemented energy conservation measures in conjunction with equipment 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 for Controlling Pollution by Electronic Information Products).

Substantial increase in energy consumption as R&D building is completed 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.
Began working toward ENERGY STAR (version 5.0) certification.
Launched efforts to comply with the Home Appliance Recycling Law (Act for Recycling of Specified Kinds of Home Appliances).

Issued first CSR Report.
Added Eizo Nanao MS Corporation to scope of operations included in ISO 14001 certification.

CSR REPORT 201021

Appendix

GRI Index
Sustainability Accounting Co., Ltd. (Chiyoda-ku, Tokyo) conducted a third-party check to confirm that the report meets Application Level B.
Item

Indicator

Report page

1. Strategy and Analysis
1.1 Statement from the most senior decisionmaker of the organization about the relevance of sustainability to the organization and its strategy. 3
1.2 Description of key impacts, risks, and opportunities.
3
2. Organizational Profile
2.1 Name of the organization.
44
2.2 Primary brands, products, and/or services.
4
2.3 Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures.
4
2.4 Location of organization's headquarters.
Number of countries where the organization operates, and names of countries with either major operations or that are specifically10
2.5 relevant to the sustainability issues covered in the report.
4,12
2.6 Nature of ownership and legal form.
4
2.7 Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).
4
2.8 Scale of the reporting organization.
Not applicable
2.9 Significant changes during the reporting period regarding size, structure, or ownership.
5
2.10 Awards received in the reporting period.
3. Report Parameters
REPORT PROFILE
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.).
22
3.4 Contact point for questions regarding the report or its contents.
REPORT SCOPE AND BOUNDARY
2,123.5 Process for defining report content.
3.6 Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers).
22
3.7 State any specific limitations on the scope or boundary of the report.
Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly
Not applicable
3.8 affect comparability from period to period and/or between organizations.
Not applicable
3.9 Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations
applied to the compilation of the Indicators and other information in the report.
Not applicable
3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement.
Not applicable
3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.
22
3.12 Table identifying the location of the Standard Disclosures in the report.
23
3.13 Policy and current practice with regard to seeking external assurance for the report.
4. Governance, Commitments, and Engagement
Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, 14
4.1 such as setting strategy or organizational oversight.
14
4.2 Indicate whether the Chair of the highest governance body is also an executive officer.
For organizations that have a unitary board structure, state the number of members of the highest governance body that are
14
4.3 independent and/or non-executive members.

Economic
Disclosure on Management Approach

Mid-Term Business Plan
http://www.eizo.com/global/
investors/pdf/Mid-Term_Business_Plan.pdf

Economic PerformanceEC6. Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation.

13

Development and impact of infrastructure investments and services provided primarily for public benefit
EC8. through commercial, in kind, or pro bono engagement.

13

Environmental
Disclosure on Management Approach
Environmental PerformanceEN3. Direct energy consumption by primary energy source.
EN4. Indirect energy consumption by primary source.
EN5. Energy saved due to conservation and efficiency improvements.
Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy
EN6. requirements as a result of these initiatives.
EN8. Total water withdrawal by source.
EN16. Total direct and indirect greenhouse gas emissions by weight.
EN22. Total weight of waste by type and disposal method.
EN26. Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.
Labor Practices and Decent Work
Disclosure on Management Approach
Labor Practices and Decent Work Perfomance
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.
LA7. Rates of injury, occupational diseases, lost days, and absenteeism, and number of work related fatalities by region.
Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families,
LA8. or community members regarding serious diseases.
Programs for skills management and lifelong learning that support the continued employability of employees and assist
LA11. them in managing career endings.
Human Rights
Disclosure on Management Approach
Human Rights

1,18-20
19
19-20
20
8-9
19
19-20
19-20
7-9
1,16-17
16
16
16
17
17
17
1,16

HR4. Total number of incidents of discrimination and actions taken.

We have not identified any
incident of non-compliancewith any discrimination.

Operations identified as having significant risk for incidents of child labor, and measures taken to contribute to theHR6. elimination of child labor.

Not applicable

Operations identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute
HR7. to the elimination of forced or compulsory labor.

Not applicable

1,14

14

Society
Disclosure on Management Approach
Society Performance

Process for determining the qualifications and expertise of the members of the highest governance body for guiding the
4.7 organization’s strategy on economic, environmental, and social topics.

14

SO4. Actions taken in response to incidents of corruption.

We have not identified any
incident of non-compliancewith any corruption.

Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental,
4.8 and social performance and the status of their implementation.

1

Procedures of the highest governance body for overseeing the organization’s identification and management of economic,
4.9 environmental, and social performance, including relevant risks and opportunities, and adherence or compliance withinternationally agreed standards, codes of conduct, and principles.

2

Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental,
4.10 and social performance.

2

Not applicable
SO7. Total number of legal actions for anticompetitive behavior, anti-trust, and monopoly practices and their outcomes.
SO8. Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with laws and regulations. Not applicable
Product Responsibility
Disclosure on Management Approach
7-10
Product Responsibility Performance

4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.
Linkage between compensation for members of the highest governance body, senior managers, and executives, and
4.5 the organization's performance.
4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided.

COMMITMENTS TO EXTERNAL INITIATIVES
4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organization.
4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses.
4.13 Memberships in associations and/or national/international advocacy organizations in which the organizations.
4.14 List of stakeholder groups engaged by the organization.
4.15 Basis for identification and selection of stakeholders with whom to engage.
4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group.
Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to
4.17
those key topics and concerns, including through its reporting.

12
15

8,9

Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service
PR4. information and labeling, by type of outcomes.

We have not identified any
incident of non-compliance withany regulation voluntary codes.

Not applicable
9
11
11
11
10-13

CSR REPORT 201022

Third-Party Opinion

To President Yoshitaka Jitsumori,
Eizo Nanao Corporation

Takashi Fukushima
President, Sustainability Accounting Co., Ltd.

Serving primarily as an introduction to corporate efforts for developing good relations
with diverse stakeholders, the CSR Report has also become a focus of attention in recent
years as a tool for explaining sustainability, in which society and the company shall coexist
and co-prosper into the future. While the former requires an all-encompassing report, thelatter requires a materiality report that probes deeper, with a focus on key areas related tothe company’s sustainability. In simpler terms, it is my view that the latter report must
provide content that fully expresses the unique social value of the company and its
singular appeal for the future.
I would like to start with my evaluation of EIZO’s efforts for developing good relations
with its diverse stakeholders. Since the previous fiscal year, EIZO has adopted a style for its
CSR Report through which the company’s overall efforts are summarized under the Seven
Promises, which combine the Corporate Philosophy and Code of Conduct. This is an
excellent approach for developing an understanding of the relationship between EIZO’s
policies, management and actions.
Turning to the content, for example in the “Seven Promises 6—We will value a broadminded corporate culture,” which deals with the relationship with employees as key
stakeholders, I was able to gain a strong sense of how EIZO’s open atmosphere encourages employees to cultivate imaginative ideas that are in turn applied to productdevelopment, which represents the lifeline of the company.

products of new value,” and the second promise, “We will supply superior products andservices that reflect respect for the environment as part and parcel of quality,” wereparticularly connected to EIZO’s appeal.
The report described the diverse social contexts in which EIZO’s advanced technologicalcapabilities were being appreciated and the speed with which EIZO has achieved
compliance with various environmental labeling standards, as well as the company’s Eco
View concept introduced in fiscal 2009. I was able to understand that these aspects
constitute EIZO’s appeal as a company.
However, these descriptions seemed to be primarily focused on the “D” part of the PDCA
(Plan-Do-Check-Act) cycle. To communicate EIZO’s appeal for the future in addition to its
appeal from the past to present, the company should aim to clearly define its ideals andexplain the status of its current efforts with respect to its roadmap and to how its present
capabilities are preparing the company to take future action toward its goal. In otherwords, the company should present an overall picture with respect to its future.
As monitors are the company’s core products, EIZO appropriately adopted a horizontal
PDF format starting with this year’s CSR Report, which allows it to be read on a computer
screen instead of having to print it out. Considering that only a few companies are
currently making this particular effort, I was impressed by this good idea.
I look forward to seeing the further evolution of EIZO’s CSR efforts in the future.

As for whether I think the report fully expresses EIZO’s appeal for the future, I felt that thefirst one of the Seven Promises, “We will inspire customers by creating and offering

CSR REPORT 201023