Social and Environmental Report

2008
April 2007 – March 2008

SOCIAL & ENVIRONMENTAL REPORT 2008

EIZO NANAO CORPORATIONSOCIAL &ENVIRONMENTALREPORT 200802

CONTENTS
About the Social and Environmental Report 2008..................2
Corporate Information
President’s Message..............................................................3

About the Social and Environmental Report 2008
Scope of report

Eizo Nanao Corporation (non-consolidated)(Data on consumption of energy and resources, industrial waste
output, etc., includes totals for affiliated companies that are located on
the same site as Eizo Nanao Corporation: Irem Software Engineering
Inc., Eizo Support Network Corporation, and Nanao Agency
Corporation. Totals for branch offices and user support centers of
Eizo Nanao Corporation and its affiliates are not included.)

Period covered

April 1, 2007 – March 31, 2008

Business Activities ............................................................. 4-5

Social Report• Corporate Philosophy, Action Guidelines, and Approach to CSR

Production guidelines Based on the Ministry of the Environment’s Environmental Report
Guideline (2007 edition) and on the National Environmental
Performance Track program of the U.S. Environmental Protection
Agency.

Corporate Governance ..........................................................7

Issue date

CSR Management .................................................................6

Compliance ...........................................................................7

July 2008

Issue date of next report July 2009
Contact information

Relations with Customers ......................................................8

General Affairs Division
Tel: +81-76-275-4121 Fax: +81-76-275-4125
E-mail: ecology@eizo.co.jp

Relations with Suppliers.........................................................8
Relations with Employees ......................................................9

Corporate Information
Environmental Report
Environmental Policy............................................................10
Overall Environmental Impact...............................................11
Environmental Objectives and Targets/Performance Report ..... 12-13
Environmental Accounting ...................................................14
Environmental Management System....................................15
Environmental Education .....................................................15
Efforts to Prevent Global Warming .......................................16
Resource Conservation .......................................................16
Reducing Waste Output ......................................................17
Collection and Recycling of Used Products .........................18
Environmental Initiatives.......................................................19
Ensuring the Quality and Environmental Compliance of Our Products .....20
Compliance with the EU EuP Directive and REACH Regulation .....21

Company Name:
President:
Established:
Capital:Address:

Eizo Nanao Corporation
Yoshitaka Jitsumori
March 6, 1968
¥4,425,745,500
153 Shimokashiwano, Hakusan,
Ishikawa 924-8566, Japan
Tel: +81-76-275-4121
Fax: +81-76-275-4125
Employees:
733 (as of March 31, 2008)
Sales:¥82.5 billion (as of March 31, 2008)
Corporate Group Employees:
1,389 (as of March 31, 2008)
Consolidated Group Sales:¥89.3 billion (as of March 31, 2008)
Business Activities: Development, design, manufacturing,and sale of display monitors andperipherals, amusement products,
and imaging system software[Domestic Sales Offices]
1st Division
Sendai Sales Office
Nagoya Sales Office
Hokuriku Sales OfficeOsaka Sales Office
Fukuoka Sales Office
2nd Division(Minato-ku, Tokyo)(Sendai)(Nagoya)(Hakusan, Ishikawa)(Osaka)(Fukuoka)(Hakusan, Ishikawa)Compliance with the EU WEEE and RoHS Directives...........21[Eizo Galleria Locations]
Eizo Galleria Sendai
Eizo Galleria Ginza
Eizo Galleria Osaka
Eizo Galleria Fukuoka(Sendai)(Chuo-ku, Tokyo)(Osaka)(Fukuoka)[Domestic User Support Centers]
Eizo Support Sendai (Sendai)
Eizo Support Tokyo(Ota-ku, Tokyo)
Eizo Support Nagoya (Nagoya)Eizo Support Hokuriku (Nanao, Ishikawa)
Eizo Support Osaka (Amagasaki, Hyogo)
Eizo Support Fukuoka (Fukuoka)[Affiliated Companies]
Eizo Nanao MS Corporation(Hakui, Ishikawa)
Irem Software Engineering Inc.
(Hakusan, Ishikawa)
Eizo Support Network Corporation(Hakusan, Ishikawa)
Eizo Engineering Corporation(Hakusan, Ishikawa)Nanao Agency Corporation(Hakusan, Ishikawa)
Eizo Nanao Technologies Inc.
(U.S.A.)
Tech Source, Inc.
(U.S.A.)
Eizo Europe AB(Sweden)Eizo Nanao AG(Switzerland)
Eizo GmbH(Germany)Compliance with J-Moss .....................................................21
Management of Chemicals ..................................................21
Green Procurement .............................................................21

Trends in Sales and Operating Income (consolidated and non-consolidated)
1000
916

956

910
880

886

939

850

800

893
825

818

Consolidated sales(¥100 million)
Non-consolidated sales(¥100 million)

600

Communication ...................................................................22400

Affiliated Company Data ..................................................... 23

200

Social and Environmental Timeline.......................................24

0

Performance Track Reference Table.....................................25

120

FY 2005

FY 2006

114
111

100

FY 2005

FY 2006

119

117
117

103

FY 2007

117

100

97
84

80
60
40
20
0

FY 2005

FY 2006

FY 2005

FY 2006

FY 2007

Consolidated operating
income (¥100 million)
Non-consolidated operating
income (¥100 million)

President’s Message

SOCIAL &ENVIRONMENTALREPORT 200803
We will continue to offer
environmentally friendly
products, while enhancing
our corporate value by fulfilling
our social responsibility.
July 2008

Yoshitaka Jitsumori
President, Eizo Nanao Corporation

In the Eizo Nanao Corporate Philosophy we state that ourcompany “pushes the limits of technology to create and offer a
new set of values, while aiming to be a globally responsible
corporation sustaining a sound and prosperous business.”
This obsession with pushing the limits of technology andcreating new value could be described as our corporate DNA.
We are absolutely committed to delivering customer satisfaction
by developing products of the highest quality and reliability. This
commitment has remained constant since the company’s founding, and it has enabled us to achieve our present position as oneof the most respected brands in the computer monitor field.
We are also a pioneer in the area of environmental responsibility.
Based on an awareness that our products have a significant
impact on the environment and our pledge to consider respect
for the environment to be part and parcel of product quality, we
have continued to lead the industry in our efforts to reduce theenvironmental impact of our products. For example, we work
closely with our suppliers to ensure that the components used in
our products are as environmentally friendly as possible. We arealso in the vanguard in the rapid collection and compilation ofdata in response to calls for strict environmental accountability.
We will continue to work to improve environmentally friendly
business practices in the years ahead and to fulfill our responsibilities as a globally responsible corporation.

We are aware of the fact that in addition to developing productswith the customer’s viewpoint in mind and consideration for theenvironment, maintaining corporate ethics plays a key role insustaining a sound and prosperous business. Accordingly, we
have put in place a system to ensure proper corporate governance.
Nowadays awareness of corporate social responsibility is on therise. We are constantly aware of our responsibility to society tocreate corporate value. We believe that, by contributing to thecommunity in a variety of ways and striving to live in harmony
with our neighbors, we can enhance our corporate value forsociety as a whole.
Eizo Nanao Corporation will continue to create products that are
beneficial to the environment, to society, and to consumers. We
will carry on with our efforts at harmonious coexistence with theenvironment and society as we aim to advance further as acompany. I very much look forward to hearing the views andsuggestions of our customers and business partners regardingthese efforts.

Business Activities

We provide imaging solutions for customers ranging from professionals to home users.

We want to expand the possibilities of imaging throughhigh-level expertise and technology focused on our field ofspecialization.

SOCIAL &ENVIRONMENTALREPORT 200804

At Eizo Nanao Corporation, we have been expanding the possibilities of computer-based image creation andcommunications since the days when CRT monitors were the norm, working together with professionals in the fields ofphotography and graphic and other design. As we enter the digital age in earnest, our efforts to meet all the demanding
requirements of professional users in specialized and advanced areas have led us into new fields. The scope of ourbusiness now extends beyond graphic design and photography as we work to offer added value for applications
including digital film production and medical imaging.
We intend to differentiate ourselves from the competition based on our unmatched core competence in image
expression, built up through our work in specialized and advanced areas. At the same time, we will work to sustain
continued growth by cultivating new markets and business opportunities through the discovery of new possibilities inimaging.

Our Fields of Business

For Business
Applications

Professionals such as traders in dealing rooms, who track large volumesof data simultaneously and must not miss even momentary fluctuations,demand excellent display performance and reliability from their monitors.
EIZO supplies high-performance monitors to meet a wide range of requirements in the business world. Our products are used for many businessapplications in addition to dealing rooms.

For Medical
Applications

The importance of monitors for the healthcare field is increasing aselectronically based medical records and digital medical imaging become
more widespread. EIZO supplies LCD medical monitor solutions that meet
specific requirements and provide high-precision display capabilities,
reliability, and easy maintenance. Our multifaceted support for the healthcare field also extends to multipurpose LCD monitors for bedside use.

For GraphicalApplications

Professionals working in the graphics field, including designers, photographers, and computer graphics creators, demand extremely accurate color
reproduction. EIZO has an established reputation for excellent color
reproduction and enjoys strong support from “color professionals.” Today
our LCD monitors support professionals with their graphical applications
that provide consistently outstanding color reproduction, display stability,
and compatibility with high-precision calibration.

For Household
Applications

Uses for computer monitors in the home have expanded to include watching TV, playing games, and editing digital photos and videos. EIZO
supplies a range of products for this market, including widescreen
monitors equipped with jacks for a variety of connector types. In addition,
our LCD TVs bring a whole new television experience to consumers with
their superior picture quality, excellent audio quality, and sleek design.

For Amusement
Applications

Eizo Nanao Corporation monitors for amusement applications combine
advanced hardware and software technology to deliver realistic expression, stories with a strong gaming feel, and lovable characters. Our aim is
to deliver products that will be long-term favorites with consumers.

Ⓒ SANYO BUSSAN CO., LTD

For Air Traffic Control Monitors for air traffic control applications must accurately show a hugeamount of information, including the positions and operating status ofApplications
multiple airliners as well as map, weather, and topographic data. EIZO
supplies the air traffic control market with monitors that are relied on for
their stable and precise display performance and high-definition graphics
boards.

Creating Direct Points of Contact with Customers and the Community

SOCIAL &ENVIRONMENTALREPORT 2008

We are working to expand the range of contact points with individual and corporate customers to gain support as aleading monitor brand and enable our technology to be utilized in many diverse areas. We also consider the effect ofour products on society, and have established the facilities and venues described below to enable customers toquery us directly regarding our company and products. We have specialized departments in each market for dealing
with corporate customers, and our sales facilities and agents provide support for specific needs. In addition, ourshowrooms and online shopping site help us maintain direct contact with individual consumers.

Individuals

05

SHOPPING & COMMUNICATION
Showrooms

EIZO Galleria
Four Eizo Galleria locations (Tokyo, Sendai, Osaka, Fukuoka) directly
managed by Eizo Nanao Corporation offer customers who care about
image quality the opportunity for close examination of our products,
including the FORIS.TV and our line of LCD monitors. Staff are always on
hand to answer customer questions about our products and about ourcompany.

Shopping
Communic ion

SHOPPING
Online shopping site

EIZO Direct

COMMUNICATION
Customer liaison

EIZO Contact Center

This web service sells our products suchas the FORIS.TV directly to consumers. It
offers a variety of services designed withthe customer in mind, including home
setup, collection of used products, andfinancing. There are separate web sites
for individual and corporate customers,
offering products and services tailored totheir needs. (For customers in Japan)

Consulting
Corporations

The Eizo Contact Center enables us torespond directly to inquiries from customers.
Queries cover topics such as product sales,
specifications, and functions; related laws andregulations; and technical matters.
(For customers in Japan)

Eizo Nanao Corporation Sales System
The domestic sales department comprises the Volume Sales Distribution Section, Corporate Sales Section, Medical Section, Graphics Section,and System Section. These sections track customers in their ﬁelds of specialization and market our products to them. In addition, ﬁve
regional sales oﬃces provide nationwide sales coverage in Japan and serve as direct contact points with customers. Overseas, distributors innumerous countries worldwide and local subsidiaries in key markets of Europe and North America market our line of computer monitors.

Sales Breakdown by Product Category
Computer monitors

Other

51.0%

6.0%

Monitors for general applications
Monitors for medical applications
Monitors for graphics applications

LCD TVs, etc.

Sales breakdown by product category

Consolidated sales¥89.3 billion(Fiscal 2007)

Monitors for amusement
applications 43.0%

Social Report

SOCIAL &ENVIRONMENTALREPORT 200806
CSR Management

Corporate Philosophy
The Eizo Nanao Group pushes the limits of technology to create visual systems of the utmost quality.
With the highest of ethical standards and pure dedication to excellence in all operational aspects,
we aspire to exceed our customers’ expectations.
We recognize one of the most challenging issues to date is environmental conservation,
and are uncompromising in our dedication to this integral element in all our business activities.

Action Guidelines
1. We will supply superior products and services by focusing on quality and following scientific operation procedures.
2. We will act as an international corporation with a global outlook and mindset.
3. We will 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 will strictly observe the letter and spirit of the law as a good corporate citizen.
5. We will foster a liberal and broadminded corporate climate and build a lively workplace.

Approach to CSR
The CSR program at Eizo Nanao Corporation represents our efforts as acompany focused on the creative development of products that will make asocial contribution. We place particular emphasis on increasing theenvironmental friendliness of our products through our Environmental
Management System. The basic thinking behind these efforts is acommitment to maintaining a good relationship with our stakeholders(shareholders, customers, suppliers, employees, and communities), who
are vital when considering social value, and to promoting trustworthy
management practices by strengthening our internal control, such as ourcompliance and risk management systems.

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Management System Overview

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Eizo Nanao
CorporationrarpoSociety (market)
Stakeholders

Increasing
corporate
value

Further increasing corporate value

Avoiding risks that may decrease value

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Social Report

SOCIAL &ENVIRONMENTALREPORT 2008

07
Corporate GovernanceWe aim to be a company that consistently produces appropriate results with the support of our stakeholders. For this reason we consider the enhancement ofcorporate governance to be an important management theme.

Overview of Management Organization
directors important documents such as draft proposals and contracts. He
also collaborates with the Audit Office, the company’s internal auditing
department, on the checking of internal regulation functions. Another role ofthe full-time corporate auditor is attending internal audits. The Audit Officereports on the findings of these audits in response to requests from directors.
Finally, the full-time corporate auditor attends audits conducted by the
Accounting Inspector and participates in meetings between the Accounting
Inspector and our company.
Internal Auditing System:
The Audit Office is under the direct supervision of 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 specify
audit policies, and with the Basic Annual Audit Plan, approved by thepresident. All findings of these internal audits are reported to the president.
For each internal audit, auditors are appointed by the General Manager ofthe Audit Office as necessary. In fiscal 2007 a quality and environmental
management audit was carried out by a team of 16 persons, an information
management audit by a team of 16, and an internal control audit of overseas
subsidiaries by a team of 2.

Board of Directors:
The Board of Directors meets once each month and whenever else
considered necessary to provide rapid decision-making capabilities to deal
with today’s business environment. All important matters related to theboard’s decisions are discussed, and reports are presented on the progressof business tasks. A single outside director serves on the board to provide
supervision and advice from a third-party perspective and thereby increase
the transparency of management decisions.
Management Conference:
A system of operating officers has been put in place to speed up strategic
decisions and strengthen the business operation system. A management
conference is held once each month and whenever else considerednecessary to study and report on key business operation issues,countermeasures, and progress. All important matters related to business
operations are put on the agenda of the management conference.
Board of Corporate Auditors:
To strengthen the company’s management oversight functions, three of thefour members of the board (one full-time and three part-time) are outside
corporate auditors. Corporate auditors attend key meetings of the Board of
Directors. The full-time corporate auditor reviews and discusses with

Corporate Governance System
General meeting of stockholders
Election/dismissal

Election/dismissal

Board of Corporate Auditors(All outside corporate auditors)
ReportCredibility of business reports

Auditing

Board of Directors

Verification

Accounting Inspector

Proper carrying out of duties by directors

Inspection of accountsl

Separation of decision-making and implementation
ReportInstructions/supervision

Management conference
ReportInternal auditing department

Auditing(Audit Office)Legal auditing department(General Affairs Division)

Credibility and soundness of corporation actions

Instructions/supervision

Operating officers
ReportInstructions/supervision

Legal complianceDepartment chiefs
Monitoring

ReportInstructions/supervision

Employees

Corporate Philosophy/Action Guidelines

Compliance
Enhancing the Compliance System

Strengthening the Information Management System

To maintain a high degree of social responsibility, including ethical responsibility,
we have adopted an Eizo Nanao Group Code of Conduct and disseminated its
contents throughout our organization. In addition, a Compliance Committee istasked with enhancing the compliance system. As part of these efforts to boost
compliance, an internal notification scheme is in place to ensure early detectionof illegal activity and to prevent misconduct by officers or employees.

A document entitled Information Handling Guidelines (Action Policy) was
adopted and put into effect in March 2003 to ensure proper handling ofconfidential information. In addition, an information management coordinator
was appointed in January 2006 with overall responsibility for the establishmentof a companywide information management system.

Social Report

SOCIAL &ENVIRONMENTALREPORT 200808
Relations with Customers (For customers in Japan)
Feedback system for all types of customer input

EIZO Contact Center

Customers

Sales companies

Eizo
Contact
Center(corporate/individual)

Retail stores

Eizo
Galleria
Eizo
DirectPlanning
department
Pro
Computer monitors
ducts
Via sales companies andvolume retailers, direct sales
LCD TVs (FORIS.TV)
Mainly direct sales
Monitors for amusement applications
Via sales companies

Sales
department
Production
department

Designdepartment
Customer input
Product flow

The EIZO Contact Center provides a convenient way for customers tocommunicate with the company. It is staffed by nine “communicators”(personnel whose job is to speak with customers directly) organized into threeliaison groups: 1. inquiries related to product purchasing, 2. inquiries related to
product specifications or operation procedures, and 3. other (information on
support centers, information on stores and special promotions, processing ofcomplaints, etc.). These groups respond to customers’ inquiries received by
telephone, fax, and e-mail.
Details of inquiries from customers are collected in monthly batches andanalyzed by a study committee for raising customer satisfaction. The results
are reported to relevant departments within the company. Product suggestions
are referred to planning and development personnel, and suggestions for
improvements to difficult-to-understand sections of the company’s web site or
catalogs are passed on to the sales promotion staff. Feedback from customers
thus leads to improvements in many different aspects of our operations.

EIZO Galleria

Number of calls

In addition to being places where we display and sell our products, our EIZO
Galleria locations enable us to talk with customers directly and help them tounderstand our environmental activities and the environmental features of our
products. We also host events and seminars as a way to encouragecommunication with customers.

8000

1. ColorEdge Seminars

2000

We hold presentations on using our ColorEdge graphics monitors for color matching aimed at
photographers. These presentations explain how to use software such as Adobe® Photoshop®
to display, print, and do color matching on photos captured using a digital SLR camera. They
also cover the superior performance of the ColorEdge and introduce our color matchingsolutions.

7000
6000
5000
4000
3000

1000
0

1

2 3
2004

4

1

2 3
2005

4

1

2 3
2006

4

1

2 3
2007

4

1
2008

Consulting/product
overview

2. FlexScan Seminars
These seminars cover methods to ensure monitors display information correctly and provide
hints on selecting a monitor.

Other

39%

3. Galleria Events
We organize regular events aimed at encouraging communication through interaction with large
numbers of visitors, ranging from family groups to computer experts. Information on new products
and upcoming sales campaigns is distributed to customers by direct mail in an effort to have agreat number of people visit us as frequently as possible.

18%
Order
Breakdown
relatedofcall categories 14%

Prices and sales/display locations/product launch timing
5%

Functions/operation
procedures

9%Specifications
Troubleshooting
6%

8%

Relations with Suppliers
Basic Stance on Procurement

Building Bonds of Trust with Suppliers

We deal with suppliers in Japan and overseas on an equal opportunity basis
in accordance with procurement policies based on the principle of mutual
coexistence and prosperity. Some of the conditions we consider essential
when evaluating suppliers are a stable management base, supply stability andability to handle fluctuations, appropriate quality, superior technology,
competitive pricing, compliance with laws and social norms, consideration for
the global environment, customer service, reliable handling of environmental
management substances, support for electronic transactions, and a high levelof technological expertise capable of contributing to the value of our products.
We select suppliers who meet the following standards:
1. Sound management.
2. Technological excellence that will contribute to the value of our products.
3. Appropriate quality, prices, and delivery schedules for products andmaterials to be supplied to us.
4. Stable supply capacity and ability to respond flexibly to fluctuations indemand.
5. Compliance with relevant laws, consideration for the environment, andactive involvement in environmental preservation work.

As a manufacturing company whose main production operation is assembly,
we place a high priority on controlling the quality, delivery schedules, and costof the parts and materials we procure from suppliers and on ensuring that
their operations are environmentally friendly. We provide opportunities forregular exchanges of information to ensure that we and our suppliers have acommon understanding of each other’s management policies and technicalstrategies. When needed, we provide help and support. 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 tocontinue to build
strong partnerships
with suppliers throughsuch attitudes andefforts as describedabove.

Materials procurement briefingSocial Report

SOCIAL &ENVIRONMENTALREPORT 200809
Relations with Employees
Dealing with Occupational Hazards

Employee Welfare and Related Matters

We are investing significant management resources in the development,
design, and production of new products. To continue to develop, design, andmanufacture products of high added value, we believe it is necessary tomaintain workplace safety and ensure the health of our employees. We
consider this to be an important part of corporate risk management.
Our efforts to prevent workplace accidents through risk assessment beganfour years ago and include KYT activities (training to anticipate danger),hiyari-hatto activities (training dealing with close calls), and 5-S activities(training focusing on the concepts of seiri (sorting), seiton (straightening),
seiso (sweeping and cleaning), seiketsu (spic and span), and shitsuke(sustaining)). Our health-related policies aim to sustain the psychological andphysical well-being of our employees. Industrial physicians conduct individualinterviews and examinations as part of a wide-ranging program to prevent
lifestyle and other diseases.
Thanks in no small part to these efforts, no accidents attributable toworkplace hazards, traffic hazards, or overwork have occurred at our facilities
during the past decade, including fiscal 2007.
We plan to continue efforts to prevent workplace accidents before they occur,working to identify and eliminate or reduce risk factors through regular risk
assessments and safety audits of new equipment, carrying out ongoing safety
education, and making risk factors visible by applying labels and the like. We
are also trying to eliminate untreated ailments and ensure the psychologicaland physical well-being of our employees by carrying out health assessments,and for the prevalence among those at risk of developing chronic physicalconditions or illnesses, we arrange for more thorough testing as well as
reexamination following self care.

Employee Welfare
To accommodate changes in the lifestyles of employees and differing
individual preferences, Eizo Nanao Corporation makes available a wide
assortment of recreational facilities outside the company. There are also
company sports and leisure clubs that provide employees with a chance torefresh and invigorate themselves, both mentally and physically.

Achieving a Balance between Work and Family
Eizo Nanao Corporation provides childcare support, encouraging employees
to take the full maternity leave to which they are entitled and providing asystem of reduced hours following their return to work. We also haveintroduced a flexible work time system according to type of job as well as
specified days when all employees are prohibited from working overtime, allwith the aim of helping to maintain an appropriate balance between work
responsibilities and private time.

In-House Consultation System
As part of our efforts to promote psychological well-being in the workplace,in-house company counselors are available to employees who wish to
discuss issues of concern. The counselors can also refer employees toappropriate facilities outside the company, should the situation warrant it.
There is also a system in place that enables employees with long working
hours to consult with company physicians. This makes it possible to identify
and treat physical or psychological problems early on.

Basic Policy on Safety and Health

Fiscal 2008 Slogans(Safety and Health Management Regulations)

Together we can create a safe and pleasant workplace!
Together we can maintain our physical and mental health!

The basic policy on the safety and health of Eizo Nanao
Corporation aims to create a healthy and safe working
environment for all employees. This is achieved throughmanagement of risk factors related to safety and health.
Specifically, we make a constant effort to identify
unacceptable risk factors in the workplace and neutralize
them, with the ultimate goal of eliminating workplace
accidents.

Fiscal 2008 Targets/Key Action Points andFiscal 2007 Performance
Management area

Targets/key action points

Safety management Reduction of unacceptable risks
Key point: Boosting consciousness of potential dangers

Medium-Term Plan (Fiscal 2007 to 2009)
We will undertake an overall reevaluation of our initiatives
related to safety and health in response to changes in thebusiness climate.

Health management Elimination of untreated ailments
Key point: Enhanced mental health measures and timely
individual intervention
Traffic safety

Adherence to rules and courtesy toward others
Key point: Encouraging safe driving through “latitude”
and “consideration for others”

Fiscal 2007 performance
Two of nine cases rated risk level V or
IV were reduced to risk level III or below.
Evaluation: Good
There was a tendency for participants
to turn in their follow-up reports late.
Evaluation: Fair
Our seatbelt inspections showed acompliance rate of up to 98.6%.
Evaluation: Fair

Environmental Report

SOCIAL &ENVIRONMENTALREPORT 2008

10
Environmental Policy

Environmental Policy
We, Eizo Nanao Corporation, are aware that our products have a significant impact on the environment.
In our product development work we therefore consider friendliness to the environment to be partand parcel of product quality. We endeavor to supply our customers worldwide with products developed tocommon specifications that meet or exceed the environmental requirements of individual countries as well 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 aspectsof our corporate operations.

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.

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.

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.

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.

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.

Environmental Report

SOCIAL &ENVIRONMENTALREPORT 200811
Overall Environmental Impact of Business Activities (Fiscal 2007)
Energy Usage

64,667 GJ (+17.9%)[Energy Usage Breakdown]
Electrical power............ 5.84 million kWh (+18.0%) Air conditioning and other equipment
Fuel oil A.......................................... 1 kL (–97.0%) Air conditioning
Kerosene ................................... 41.1 kL (–5.9%) Air conditioning
Gasoline and diesel....................... 6.8 kL (–9.7%) Company vehicles
LPG............................................ 65.0 t (+162.9%) Air conditioning

Materials Usage[Paper Usage]
Copier paper ............................... 7.7 t
Printer paper................................. 0.2 t
Toilet paper................................... 3.9 t[Usage Status]
Parts, semiconductor devices, products, goods .........4,005 t (+6.5%)
Product packaging ........................................................944 t (–0.2%)
Plastic bags, cushioning materials (Styrofoam, cardboard), and packing boxes (cardboard) used to package products

Distribution packaging ..................................................5.44 t (+29.5%)
Plastic wrapping sheets used to prevent load collapse when transporting semiconductor devices or products on pallets[Other]Normal hexane ...........................................................0.049 t (–33%)
Amanol .......................................................................0.048 t (–24%)
IPA..............................................................................0.012 t (+100%)

51,000 m3 (+15.1%)

Water Usage (groundwater)(–11.4%) Recycled 100%(+13.7 %) Recycled 57%(–3.5 %) Recycled 100%

Figures in parentheses ( ) indicate comparisons with the previous fiscal year.

T

U

P

IN

Parts manufacturers and purchasing companies
Japan Overseas•

Use and disposal by customer
Japan Overseas••(See page 23.)

Collection and recyclingof used products (Japan)(See page 18.)

Emissions of Greenhouse Gasses

3,032 t-CO2 (+37.5%)[Emissions of 6 Substances Stipulated by Kyoto Protocol (t-CO2)]
Carbon dioxide (CO2)..................................................................3,031 t (+37.5%)
Methane (CH4) ............................................................................0.001 t (–7.7%)
Dinitrogen oxide (N2O) ................................................................0.003 t (–14.3%)
Note: Does not apply to HFCs, PHCs, or SF6.

Emissions and Movement of Chemicals
No emissions or movement of chemicals covered by PRTR.

Total Product Production
Production quantity LCD monitors........................................ 415,000 units
Other imaging products ............................................................. 9,000 units
Peripheral devices ..................................................................... 8,000 units■ Total................................................................................... 432,000 units

T* Value applies to recycling contracted to the Japan Containers and Packaging Recycling Association under
the Containers and Packaging Recycling Law. The total is composed primarily of plastics, such as Styrofoamand vinyl bags, and does not include cardboard.

U
P

T

U

O

Eizo Nanao
Corporation

Affiliated companies• Eizo Nanao MS Corporation•

Materials collected inaccordance with
the Containers
and Packaging
Recycling Law*
16.0 t (Japan)

Percentage of LCD monitor products certified to bear environmental labels .........92 %Volume of packaging materials ......................................................944 t

Total Waste Output/Final Waste Disposal Volume[Waste Processing Breakdown]
Reused.......................................................................................445.7 t (+4.3%)
Heat recovery.............................................................................112.4 t (+4.2%)
Simple incineration..........................................................................1.3 t (+8.9%)
Final disposal..................................................................................5.9 t (+25.7%)[Waste Type Breakdown]
Industrial waste products............................................................212.5 t (+11.2%)
Waste products with commercial value .........................................20.9 t (–6.9%)
General waste products................................................................45.5 t (+52.1%)
Wastepaper................................................................................272.4 t (–15.6%)

Wastewater

51,000 m3 (+15.1%)
Figures in parentheses ( ) indicate comparisons with previous fiscal year.

Environmental Report

SOCIAL &ENVIRONMENTALREPORT 2008

12
Fiscal 2007 Environmental Objectives and Targets/Performance Report
Of the ten corporate initiatives and six product-related initiatives promoted during fiscal 2007, seven corporate initiatives reached their targets, two did not reach
their targets but nevertheless achieved a result of 70% or better, and one failed to reach 70%. Three product-related initiatives reached their targets, one did notreach its target but nevertheless achieved results of 70% or better, and two failed to reach 70%.
Fiscal 2007 target

Fiscal 2007 performance and future measures

Self-evaluation (Related page)

Achieved 4% reduction (40.6% increase from previous year)
17% reduction in total volume of industrial wastefrom fiscal 1996

Countermeasures: • Reduction in volume of industrial waste produced by departments• Reduction in plastic waste[Page 17]

• Increase in processing of refuse as waste having commercial value

Reduction ofindustrial waste Achievement of 95% recycling of industrial waste

Achieved 97% recycling
Countermeasures: • Survey of recycling methods

Promotion of collection of used products
Corporate: 370 units per year, household:2,800 units per year

[Page 17]

Corporate: 273 units per year, household: 2,622 units per year
Countermeasures: • Promotion of collection of used products[Page 18]
• Disclosure of collection system for used products
Consumed 5.83 million kWh (18% increase from previous year)

Corporate initiatives

Limit consumption of electricity up to 6.8 million kWhCountermeasures: • Maintain appropriate indoor temperature[Page 16]

• Monitor electricity consumption in a timely manner

Prevention of
global warming

Limit consumption of kerosene up to 130%of fiscal 2001

22.8% increase from fiscal 2001
Countermeasures: • Maintain appropriate indoor temperature[Page 16]

Annual usage volume was 65 t
Limit LPG usage volume up to 170 t

Countermeasures: • Maintain appropriate indoor temperature[Page 16]

• Monitor electricity consumption in a timely manner
Limit output of carbon dioxide up to 142%of fiscal 1996

Resource
conservation

32.2% increase from fiscal 1996
Countermeasures: • Maintain appropriate indoor temperature[Page 16]

Achieved 36.2% reduction from fiscal 1996
50% reduction in use of copier paper from fiscal 1996
Countermeasures: • Encourage distribution of documents in electronic form

[Page 16]

Expanded green purchasing product list and achieved green purchasing ratio of 85.0% in office supplies

Green
purchasing

Expansion of green purchasing product list
Step-by-step promotion of green procurement

Countermeasures: • Continue promoting green purchasing and continue increase in green purchasing ratio
Promote green procurement (parts and materials)[Page 21]

Product-related initiative items

Countermeasures: • Encourage suppliers to engage in environmental promotion activities
Reexamination and thorough implementation of usage methods for organic solvents

Management of
hazardous
substances

Implementation of new management systemfor chemicals(including MSDS management, risk management,
and CFC management)

Compliancewith European
standards

Implementation of LCA (in preparation for compliancewith EuP Directive)
Implement LCA for at least one product model

EcoLeaf (Type III environmental labeling under JEMAI LCA method) obtained for S1701-ST in October 2007

Reduction of volume Expansion of use of biodegradable plastics(derived from vegetable materials)of hazardous
Expansion of scope of use to parts other than user manual bags
substances

Bag materials resistant to vibration tests found as one of our technical themes, but adoption forgone
due to high cost (2 to 3 times current materials)
Countermeasures: • Discussions with parts manufacturers to encourage discovery and evaluation of promising new materials

Resource
conservation

Making products more lightweight and compact
Evaluation standards adopted

Making packaging more lightweight is being studied along with a reassessment of evaluation standards

Energyconservation

Conformance with “energy conservation” item inenvironmental compliance standards
RadiForce conforms with “energy conservation” item
FORIS.TV conforms with green purchasing guidelines

Environmental
labeling
Management ofchemical
substances in
products

Evaluation standard

Thorough management of waste materials containing strong acids
Countermeasures: • Implementation of management system for chemicals(including MSDS management and risk management)

Countermeasures: • Construction of processes enabling implementation of LCA[Page 21]

Countermeasures: • Continuing study along with reassessment evaluation standards
GS520 power consumption of 0.9 W at standby mode/1.2 W at power-save mode
Two models of FORIS.HD (QA029, QA030) achieved energy conservation ratio of 121% or better
Countermeasures: • Continuation of energy conservation efforts and setting of new targets
EEP2008 guidelines established and name changed to EEP2009 for external disclosure

Creation of Eizo Eco Products 2008 guidelines[Page 19]

Countermeasures: • Completed
Achievement of compliance with JGPSSI Chemical
Substances Survey Guidelines Ver. 3.0

Not implemented; surveys continuing under present system while considering incorporation of
REACH Regulation compliance, which will greatly affect management of chemical substances

Achievement of compliance with JGPSSI Guidelines for
the Management of Chemical Substances in Products

Countermeasures: • Preparations for incorporation into operations under company’s new business system: Achieved

Not implemented: Achievement ratio of more than 70% but less than 100%

[Page 21]

: Achievement ratio of less than 70%

Environmental Report

SOCIAL &ENVIRONMENTALREPORT 2008

13
Fiscal 2008 Companywide Environmental Targets
In response to demands related to environmental standards for our increasingly diverse range of products, the framework used until fiscal 2007 of corporate
initiatives and product-related initiative items has been eliminated. In its place we have adopted unified companywide environmental targets and shifted the focus ofthese targets from energy, resources, and waste products to environmentally friendly product design. We will continue to pursue the Fiscal 2008 Companywide
Environmental Targets in the coming fiscal years as part of long-term targets.
Environmental theme

Issue

Environmental objective

In-house environmental target

Efforts to prevent
global warming

CO2 reduction

Tracking CO2 volume

Implementation of LCA-based product assessment

Environmentally friendly product design

Reducing product energy consumption
Reducing product CO2 emissions

Increased transport efficiency

Measures to increase the loading ratio
More compact and lightweight designs

Reduced power consumption

Reducing consumption of electricity (up to 5.6 million kWh/year)

Reduced fuel consumption

Reducing consumption of LPG (up to 110 t/year)
Reducing consumption of kerosene (to 42 kL/year)

Creating a sustainable
societyThree R’s (reduce, reuse,recycle)Green procurement

Green purchasing of office supplies

ReduceReducing industrial waste (up to 210 t overall)Reducing consumption of paper (up to 6 t for purchases of copier paper)

Reuse

Efficient resource utilization (promoting reuse of office supplies)

RecycleUsing recycled plastic in products
Reducing environmental impact through recycling (easily disassembled design)
Promoting recycling

Environmental issues

Environmental
communication

Management of chemicals

Maintaining communication

Reducing consumption of chemicals

Management and limitation of emissions and movement of toxic substances

Green procurement(management of chemicals
used in products)

Compliance with JGPSSI Chemical Substances Survey Guidelines Ver. 3.0

Corporate activity report

Disclosure of product environmental information

Compliance with JGPSSI Guidelines for the Management of Chemical Substances in Products

Issuing of corporate Environmental Report

Environmental
compliance

Compliance withenvironmental laws
and standards

Survey of market trends

Survey of environmental technology

Education and training

Implementation of employee education

Standards compliance

Support for REACH Regulation
Support for TCO standard
Support for EuP Directive
Support for Law Concerning the Rational Use of Energy

Eizo environmental labelingSupport for Eizo Eco Products

Environmental Report

SOCIAL &ENVIRONMENTALREPORT 2008

14
Environmental Accounting
Environmental Preservation Costs

Investment

Investment

Main initiatives

Category(Unit: ¥1,000)

Fiscal 2007

Fiscal 2006

Fiscal 2005

Fiscal 2007

Fiscal 2006

Fiscal 2005

0

0

0

293,495

33,17835,208

1-1 Pollution prevention costs

Soot measurement and combined tank management costs

0

0

0

569

2,930

1,539

1-2 Global environmental
preservation costs

Upgrading of climate control systems and lighting fixtures,
overhauling and inspection of KHP air conditioner outdoor
units, sewerage operations beneficiary defrayment

0

0

0

251,142

12,64018,205

1-3 Resource recycling costs

Cost of recycling, processing, and disposing of waste products

0

0

0

41,784

20,53817,003

2. Up- and downstream costs

Product recovery and recycling, costs of recycling
packaging

000

12,963

11,5809,764

3. Management activity costs

Costs of environmental impact and monitoring,
Environmental Report production, ISO 14001 auditing,landscaping of grounds, employee education

0

0

0

24,953

13,101

13,934

4. R&D costs

Environmentally aware design, green procurement support
system, green procurement LCA related costs, TCO certification,measurement of volatile organic compounds (VOCs)

30,074

21,642

15,936

6,485

7,073

42,612

5. Community outreach costs

Contributions to environmental groups

0

0

0

3,381

3,313

5,418

0

0

0

0

178

0

30,074

21,642

15,936341,277

71,353

108,475

Breakdown

1. Business-area costs

6. Environmental restoration costs Costs of restoring the natural environment
Total

Economic Effects (Actual Effects) of Environmental Preservation Measures

Profit(Unit: ¥1,000)

Description of effectAmountBusiness income from recycling of waste products generated by major business operations and recycling of used products, etc.

564

Reduction in energy costs achieved through better energy efficiency

─Cost reduction

0

Reduction in waste processing costs achieved through better resource efficiency and recycling

Total

564
ExpensesIn fiscal 2007, investment costs associated with environmental preservation
totaled ¥30.07 million, an increase of 39% from the previous year.
Environmental preservation expenses came to ¥341.27 million, an increase of
378.3% from the year before. The economic effects of our environmental
preservation efforts totaled ¥0.56 million. The largest share of total investment
was research and development costs, including expenses associated withcompliance with environmental standards and the green procurement support
system. The largest share of expenses was for business-area costs for
upgrading the climate control systems of the plant buildings.

Community outreach costs
R&D costs
Management activity costs
Up- and downstream costs
Business-area costs
Total¥1 million
340
320

341

300
120

108

100
80

71

60
40

Scope of accounting: Eizo Nanao Corporation20(as covered by Social and Environmental Report)
Period covered: April 1, 2007 – March 31, 2008
0
Fiscal 2005
Fiscal 2006
Fiscal 2007
Investment: Amount applied for the current term under the depreciation scheme used
for financial accounting
Expenses: Personnel costs, material costs, depreciation, other expenses
Depreciation costs: Included in cost of goods acquired in fiscal 2005, 2006, and 2007 according to the depreciation scheme used for financial accounting for fiscal 2007
The Environmental Accounting Guidebook 2005 Edition was used for reference when compiling the above figures.
Research and development operations include elements related to environmental preservation considerations. However, due to the difficulty of tracking direct environmental preservation costs, the costsof equipment, prototype products, etc., related to R&D work is not included in the expenses total (except for R&D work expressly for the purpose of environmental preservation).

Environmental Report

SOCIAL &ENVIRONMENTALREPORT 200815
Environmental Management System
Operation of Environmental Management System
After establishing an environmental management system under our Environmental
Policy, we obtained ISO 14001 certification in July 1998, and the management
system has been updated three times since then. In the past it operated throughthe cooperation of two organizations, one of which worked to improve theenvironmental performance of our corporate operations and the other concentrated
on enhancing the environmental compliance of our products. In April 2008 these
two organizations were merged in order to focus on making our products moreenvironmentally friendly, since our in-house systems to deal with waste and reduceresource and energy consumption are now well advanced. Now our environmental
management system concentrates on product-centered environmental initiatives.
The environmental management system of Eizo Nanao Corporation operates at our
five business locations and two Eizo Galleria locations in Japan.

Environmental Auditing
During fiscal 2007, the internal auditing system verified that the company’senvironmental preservation efforts continue to be carried out appropriately underthe environmental management system. Efforts to make our products
environmentally compliant, a major emphasis at the company, are being promoted
continuously and in planned fashion based on EU directives and laws.
Work to develop products complying with the 2009 version of our in-house Eizo
Eco Products standards is being actively promoted. In addition, preparations havebegun to ensure compliance with the EU EuP Directive, as is now required. In our
corporate activities, new buildings have been completed and there is a trend
toward increased energy consumption (particularly electric power). Fiscal 2008
marks the first year of Japan’s commitment under the Kyoto Protocol, and we at
Eizo Nanao Corporation plan to redouble our efforts to conserve energy and to help
prevent global warming.
An external audit conducted in fiscal 2007 found that efforts related to “reducing
waste paper, proper processing of waste products, and energy conservation” were
well-established within the company. Though these efforts will continue, theauditors suggested a shift of focus in future toward identifying environmental
aspects that areclosely linked to ourbusiness operations.
In response, we havebegun a reassessment of our environmental management
system for fiscal 2008and beyond.

Environmental Risk Management■ Facility Management
Some of our facilities are covered by the Air Pollution Control Law. As a fundamental
policy, they establish their own management standards, regardless of whether or nottheir operations are on a scale that makes them subject to legal requirements.
(Detailed measurement data can be viewed on the Eizo Nanao Corporation web
site.) As in previous years, noneof our facilities exceeded their
management standards in fiscal
2007. In addition, drills arecarried out once a year topractice emergency proceduresfor dealing with accidents that
could cause air pollution, suchas leaks in the oil supplies ofclimate control systems or
abnormal combustion in boiler
systems. Starting in October
2007, an overhaul wasundertaken of the climate
control systems in our production plants. The new systems
are powered by LPG, which
produces less carbon dioxide
and air pollution than fuel oil A.
Emergency response drill■ Waste Processing

All waste generated by the company is processed by other companies on a contract
basis. As a generator of waste, we have a responsibility to ensure that the contractors we hire dispose of it in a proper manner. For this reason we carry out on-site
inspections of the intermediate and final waste processing contractors we employ.
We also take measures to assure that private information on customers is handled
and protected properly because the collection of used products involves suchinformation. In fiscal 2007, our inspections showed that processing was being
carried out appropriately by all of the contractors.

Audit

Environmental Education
Environmental Education Initiatives in Fiscal 2007

Strict Compliance with Laws and Regulations

In fiscal 2007, new and existing employees participated in educational programs,
and training was provided for area environmental education instructors.

The company daily monitors new developments in laws and regulations pertaining toour corporate operations. This information is also summarized on the company’s
intranet web site so that employees can check the laws and regulations that cover
the tasks they are involved in.

▼ ▼ ▼Since fiscal 2008 marks the first year of Japan’s commitment under the Kyoto
Protocol, our educational program for employees included a video presentation onefforts to prevent global warming. To further boost environmental consciousness,
information on the themes of “food mileage” to cut CO2 emissions and “LCA” at
Eizo Nanao Corporation was presented on a web page hosted on the company
intranet.

New employees participating in education programs: 60
Other employees participating in education programs: 1,026
Area environmental education instructors participating in training: 20

In fiscal 2007, we were not in violation of any environmental laws or regulations, andthere were no fines or unfavorable court settlements. There were no significant
environmental accidents at company facilities, and no complaints were received
from local residents regarding environmental matters.

Environmental Report

SOCIAL &ENVIRONMENTALREPORT 200816
Efforts to Prevent Global Warming
In fiscal 2007, our total energy input increased by 17.9% year on year.

Fiscal 2008 target
Fiscal 2007 target
Fiscal 2007 results
Achieved/not achieved
Base year

CO2 emissions
Relative to sales■ Greenhouse Gas Emissions

Greenhouse Gas Emissions
CO2 emissions
2,700 tLimit increase up to 42% over ﬁscal 1996
32.2% increase
Yes
Fiscal 1996

Of six types of greenhouse gases, the company produces carbon dioxide (CO2),methane (CH4), and dinitrogen oxide (N2O), the output volume of which we track in
carbon dioxide equivalency values. Note that the electricity conversion factor was
updated in fiscal 2007 to match the figures publically announced by the powercompany. The new conversion factor is larger, so the increase in greenhouse gas
emissions appears larger than the increase in energy usage.

［t-CO₂］
3,000

3.7(t/¥100 million)
4.0

3.4

3.5

3.1

3.0
2.7

2,000

2.3

2.5

2.3

2.0
2,294

2,048

2,169

2,205

3,032

2,700

1,000

1.5
1.0
0.5

0

FY 1996

FY 2004

FY 2005

FY 2006

FY 2007

FY 2008 target

0

Energy Usage
Electricity
Fuel oil A
Kerosene
LPG
Fiscal 2008 target Limit to 5.6 million kWh───Limit to 42 kL
Limit up to 110 t
Fiscal 2007 target Limit to 6.8 million kWh─── Limit increase up to 30% over ﬁscal 2001 Limit up to 170 t
Fiscal 2007 results 5.83 million kWh 1,000 L
22.8% increase
65 tAchieved/not achieved
Yes
───
Yes
Yes
Base year
Fiscal 1996
Fiscal 1996
Fiscal 2001
Fiscal 2005
Note: LPG for headquarters climate control system

In fiscal 2007, there were worries of a large increase in energy consumption due to the
opening of a new building for development and design work as well as theaccompanying increase in personnel, but we were able to meet our targets throughreductions in climate control energy use from upgrades to existing facilities and central
monitoring. The new climate control systems are fueled by LPG, which produces less
CO2 than fuel oil A. This has increased consumption of LPG, but fuel oil A has beenphased out entirely. We plan to continue to work toward the twin aims of acomfortable workplace environment and energy efficiency by controlling thetemperature and humidity in individual rooms remotely via the central monitoring
system.
Examples of Efforts

Gasoline, diesel oil, LPG (GJ)
LPG (climate control)
Kerosene
Fuel oil A(GJ/¥100 million)
Electricity
100
Relative to sales■ Energy Usage［GJ］
80,00070,00060,00050,00067
48,76153,41264,89682

79

64,46455,073

70

65

60
50

56

40

30,00030

20,00020

10,000080

49,94959

40,00090

10
FY 1996

FY 2004

FY 2005

FY 2006

FY 2007

FY 2008 target

0

Note: Gasoline: Consumption by company vehicles
Diesel oil: Consumption by company vehicles and snowplows
LPG: Consumption by climate control system● Remote control of climate control equipment via central monitoring system● Adjustment of temperature and humidity based on workplace environment measurements

carried out in summer and winter● Companywide shutdown of climate control systems (during nighttime hours)

Resource Conservation
Copier paper
Fiscal 2008 target
Limit up to 6 t
50% reduction over ﬁscal 1996
Fiscal 2007 target
Fiscal 2007 results
36.2% reduction
Achieved/not achieved
No
Base year
Fiscal 1996

Printer paper
Copier paper
Relative to sales■ Paper Usage

Paper Usage
Printer paper──────
96.2% reduction───
Fiscal 1996

It was decided that in fiscal 2007, as in the previous year, the volume of copier paper
purchased would be 50% less than the base year level. Purchases continued todecrease as a result of efforts to promote the use of electronic media and publicity
aimed at reductions, but we again failed to reach our target. In fiscal 2008, we willcontinue advancing the use of electronic media in document management. The
target for fiscal 2008 will be the same as that for fiscal 2007, but will now be basedon volume. EDP paper has been removed from the list of environmental targets dueto the small purchase volume.

Water Usage
The company uses groundwater exclusively. No water is used in manufacturing
processes, but a large volume of water is used for snow abatement in winter and forwatering plants in summer. The volume of water used can change dramatically due
to weather conditions. We have therefore not set a target but will continue to track
usage trends. The summer usage volume has been increasing and the winter usage
volume decreasing for the past several years, perhaps as a result of global warming.

［t］
20.0

(kg/¥100 million)
30

25

15.0

25

6.2

20
10.0
0.2

5.0

0.0

12.0

FY 1996

0.2

0.2

10

11

8.2

9.1

FY 2004

FY 2005

9

8.7

FY 2006

33,200

0

10
8

7.7

FY 200742,10850,94936,607

15,066

13,74812,19013,807FY 2002

FY 2003

FY 2004

FY 2005

22,68010

6.0

5FY 2008 target

0

Dec. ‒ Mar.
Apr. ‒ Nov.

■ Water Usage［m³］
70.00060.00050.00040.00030.00020.00010.000015

0.230,22921,606

20,741

FY 2006

FY 2007

Environmental Report

SOCIAL &ENVIRONMENTALREPORT 200817
Reducing Waste■ Industrial Waste

Industrial Waste
Industrial waste volume
Fiscal 2008 target
Reduction up to 210 t
Fiscal 2007 target
17% reduction over ﬁscal 1996
Fiscal 2007 results
4% reduction
Achieved/not achieved
No
Base year
Fiscal 1996

Recycling rate
96％
95％
97%
Yes
───

In fiscal 2007 the recycling rate was 97%, and we reached our target for that
initiative. However, the total volume of waste increased substantially, preventing us
from meeting that target. This is due to the upward trend in imports of large-format
component parts as the screen size of our products increase. As a result, thevolume of Styrofoam (up 35% from the previous year) and waste plastic (up 25%
from the previous year) from packaging has grown. We work with waste processing
companies to collect waste Styrofoam, melt it down, and then mold it into chips thatcan be used as a raw material for new plastic products. Some of this resource isalso used as Styrofoam in the packaging of our products. In fiscal 2008 we will
endeavor to reduce the volume of waste plastic and increase that of waste productswith commercial value.
Note that as of April 2008 wood scraps (from wood pallets) are being treated asindustrial waste rather than general waste, in response to changes in the law, andthat this will result in a corresponding increase in the volume of industrial waste
reported for fiscal 2008.

Amount recycled(kg/¥100 million)
Amount processed as waste
350
Relative to sales

［t］
250
303

200

7

7

258

266

300
250

6

150

8

10
173

204

200

189

161

205

100

150

203

163
132

100

125

50
50
49

0

FY 1996

FY 2004

FY 2005

FY 2006■ Breakdown of Industrial Waste
Other parts
Electronic parts
Polyvinyls
Circuit boards
Waste products

FY 20070

FY 2008 target

Glass and ceramics 2%
Waste products
1%
Waste plastic
1%

2%
1％
1%
2%
5%

Metal (iron) 6%

Incinerated or landﬁll 3%

Glass (including
cathode ray tubes)
12%

212 t

Waste plastic
42%

Recycled
97%

Styrofoam
25%

General Waste■ General Waste

In fiscal 2007, output of burnable trash increased by 17% from the previous year
while output of wood scraps rose 81% due to an increase in the amount ofcomponent parts imported. This resulted in an overall increase of 52%. Note that
due to changes in the law wood scraps (from wood pallets) are being treated asindustrial waste as of April 2008. This will result in a corresponding decrease in thevolume of general waste reported for fiscal 2008.

［t］
35
30

(kg/¥100 million)

Wood scraps
Non-burnable trash
Burnable trash
Relative to sales 33

40

34

Note: The definitions of waste products were revised effective fiscal 2006, and as a result
non-burnable trash that was previously treated as industrial waste is now included in the
totals for general waste.

29

20

5

Waste cardboard, which constitutes about 90% of our recycled paper total, is used
as a packing material for imported components and disposed of in-house. The
volume of recycled waste cardboard decreased 16% from the previous year, one
reason being a shift from cardboard to Styrofoam as the packing material for someof the parts and materials we import for use in our products.
We collect used paper from offices and purchase recycled products (toilet paper)from Office Paper Recycle Kanazawa as part of our community-oriented recycling
efforts.

11.0

25

16.4

1.3

20

1.5

15
10

30

29.7

25

0

Paper Recycling

35

32

1.1

6.4

■ Items Discarded as General Waste• Burnable trash: Grass clippings, office provisions (used tea, etc.), non-recyclable
items (carbon paper, thermal paper), indoor footwear, etc.
• Non-burnable trash: Plastic office supplies• Wood scraps: Shipping pallets for raw materials

40

0.0

28.1
10

0.0
17.7

0.9

15.3

13.6

15
15.8

5

5.6
FY 199910

FY 2003

FY 2004

FY 2005

FY 2006

FY 2007

0■ Paper Recycling［t］
400

Newspaper, magazines, other paper
Cardboard
Relative to sales
383

350

31

300

(kg/¥100 million)
400

302

363
331

28

344

30

300

36
27

250

246

200

306

150
100

200

32
265

293
262

237

100

171

50
0

FY 1999

FY 2003

FY 2004

FY 2005

FY 2006

FY 20070Environmental Report

SOCIAL &ENVIRONMENTALREPORT 200818
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 collection and recycling regime it establishes is targeted at
products marketed to commercial customers. The collected products are
disassembled, crushed, and sorted by recycling contractors, and the resulting
raw materials are reused in the manufacture of new products. In March 2005,
collection and recycling began under a Designated Wide-Area Recycling
Industrial Waste System certified by the Japanese Ministry of the Environment.
In fiscal 2007, the number of products collected decreased 34% from the

Telephone

Corporate
customer

previous year because there were fewer collection requests than usual fromlarge-volume customers. We aim to promote collection and recycling tocustomers as part of our sales promotion activities in fiscal 2008.
Collection of Commercial Products (April 2007‒March 2008)
Volume collected Quantity collected Volume recycled Recycling rate(t)(units)(t)(%)

CRT monitors

8.0

244

5.36

67.0

LCD monitors

0.36

29

0.33

91.2

Collection request●●

Collection
Eizo products andNanao products

Processing completion report

Estimate
Payment of fee

Eizo Support Network Co., Ltd.

Reception

Collection arrangements
Pickup and transport

Hankyu Express International
Co., Ltd., and others

Recycling
Disassembly, crushing, sorting Hyper Cycle Systems, Co., Ltd.

Collection and Recycling of Household Products
We mail “PC recycling mark” stickers corresponding to previously purchasedmonitors to customers who request them. Monitors bearing these stickers canbe disposed of without any additional cost to the customer.

In October 2003, a product collection and recycling system for individual
customers was set up under the Waste Disposal Law and the Law for
Promotion of Effective Utilization of Resources.
The number of collection requests has been increasing year by year as thecollection system has become established, but in fiscal 2007 there was adecrease (of approximately 3%) from the previous year. In fiscal 2008, we will
promote collection and recycling to individual as well as corporate customers
as part of our sales promotion activities.

Collection of Commercial Products (April 2007‒March 2008)
Volume collected Quantity collected Volume recycled Recycling rate(t)(units)(t)(%)

CRT monitors

58.2

2,332

39.2

67.4

LCD monitors

1.84

290

1.5

81.2

Information Devices
Recycle Center① Collection request

URL: http://www.pc-eco.jp② Sending of fund transfer form

Web and telephone

Household(individual)
customer③ Payment

Post office orconvenience store④ Sending of Eco Yu-Pack shipping label

Eizo products andNanao products●●⑤ Delivery to post officeor⑤ Request for pick-up

Simple packaging such as bags
Shipping labels⑥ Collection

Reception

Post office

Collection point/
recycling facility

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

Collection of CRT TV upon Purchase of LCD TV
Our FORIS.TV® line of LCD TVs went on sale in March 2004. In this regard,
we are offering customers purchasing a new FORIS.TV® from us a deal underwhich we will collect and dispose of their old CRT TV. We are extending thisoffer as a retailer under the Electrical Household Appliances Recycling Law.

Recycling
CRT-TVEnvironmental Report

SOCIAL &ENVIRONMENTALREPORT 2008

19
Environmental Initiatives
We are developing environmentally conscious products by conforming to the environmental labeling standard (ISO 14020) and observing the applicable legal
requirements of Japan and other countries. In particular, we participated in the forum that helped establish the parameters for TCO’03. Our active environmental
efforts are not limited solely to complying with standards, but include assisting in their establishment as well. See pages 20 and 21 for details of relevant standards
and laws.

Type II : ISO 14021

Environmental Labeling and ISO 14020

A program under which a company asserts theenvironmental compliance of its products (or services)with standards it has established itself. This is referred
to as a self-declaration type labeling program, andthe environmental assertions are determined by eachindividual company or organization.

Type I : ISO 14024
A program under which a license to use alabel is granted based on inspection by athird party to verify compliance with a set
standard of environmental compliance.

EIZO Eco Products 2004/2006

TCO'03/TCO'06

Type III : ISO 14025
Energy Star and International
Energy Star Program

PC Green LabelA program under which theenvironmental characteristics
of products are disclosed as
quantitative LCA* data. A
major point of difference fromType I and Type II labeling isthat the disclosed data can be
judged by the customer.

* LCA stands for “Life Cycle Assessment,” a method ofanalyzing the global environmental impact of a productthroughout all stages of its life cycle, from manufacture
through to eventual disposal.

Eizo Nanao products carry a variety of environmental labels.
Pb,
Cr(VI)EIZO Eco Products 2006/2004

J-Moss (JIS C 0950)

Pb,Cr(VI)

Eizo Nanao products carry a variety of environmental labels.

EIZO Eco Products 2006/2004
In addition to compliance with applicablelaws and third-party standards, we
implemented a system called Eizo Eco
Products 2002 in October 2002 to certify
products as environmentally friendly basedon standards developed in-house. This was
succeeded by Eizo Eco Products 2004 andthen by Eizo Eco Products 2006 (EEP06),
which was adopted in June 2006. EEP06 isbased on regulations reflecting newenvironmental considerations, such as the
EU RoHS Directive that took effect in July oflast year, as well as the basic environmental
concepts of the three R’s (reduce, reuse,recycle) and energy conservation. (Visit the
web site of Eizo Nanao Corporation for
details.)

EIZO Eco Products 2006/2004 certification standards
No.

Item

2006

2004

Power consumption less than one watt when turned off Note: “When turned off” means when manually switched off by the user.
“Power save mode” refers to the low-power status the product switches to automaticallyPower consumption less than two watts in power save mode Note:after a period of inactivity specified by the PC or monitor settings.

Use of recycled plastic
Use of chrome-free steel plates
User’s manual made with chlorine-free recycled paper
Use (or partial use) of lead-free solder
Use of lead-free wires in external (supplied) cables
Use of soy ink in printed materials accompanying productUse of recycled Styrofoam or paper as packaging cushioning materials
Subject to an internal product environmental assessment
Use of plastics made from plant-derived raw materials
Compliance with JEITA personal computer VOC guidelines
Compliance with RoHS Directive (J-Moss Green Mark for LCD TVs for Japanese market)(Japan only)Environmental Report

SOCIAL &ENVIRONMENTALREPORT 200820
Ensuring the Quality and Environmental Compliance of Our Products
Basic Product Development Sequence
In product development, we endeavor to enhance the environmental consciousness of our products, including compliance with domestic and international legal
requirements and standards. Based on our in-house Environmental Compliance Standards, each product is subject to an environmental compliance assessment (anevaluation of the degree of environmental compliance of the product).
The results of the assessment are linked to our system for drafting, implementing, and meeting companywide environmental targets for each fiscal year. A key theme
is making products environmentally sound under the “Eizo Eco Products 200X” (200X refers to the year established) program, and this is also linked to output. In linewith our corporate stance of constantly building environmental awareness, we revise the Environmental Compliance Standards each year to reflect changes in laws,
regulations, and industry trends.

Environmental Goals, Targets, and Standards
Standards

Regulations

Industry trends

Product planning
Product planning(Eizo Eco Products established)

Yearly environmental goals and targets

Product design planning

Environmental compliance standards

Product environmental assessment

Investigation of hazardous substances

Product improvements

Application for next fiscal year

(evaluation of prototypes)

Application for
new products

Finalization of productCompliance with Environmental Standards
TCO’03/TCO’06
Efforts to make our company’s products more environmentally friendly have proceeded largely in response to the evolution ofenvironmental standards in Europe. These efforts started with our work to comply with the TCO’95 standard introduced in Sweden. This
standard was followed by TCO’99, and that was followed by TCO’03, which is the version still in effect today.
In addition to environmental items, this standard covers aspects including safety, electromagnetic radiation, and ergonomics, giving it acomprehensive character. We participated actively in the forum that helped establish the parameters for TCO’03, and in January 2003 webecame one of the first companies to receive certification (as one of a group of four companies, with a total of 15 products receiving
certification). In August 2006 we released one of the world’s first new products complying with the TCO’06 Media Display standard. (Fourproduct models were introduced simultaneously by three companies, including Eizo Nanao Corporation.)
Almost all monitor products we produce are TCO compliant. In the years ahead we will continue to consider it an important standard to
be met in the development of new products.

PC Green Label
The PC Green Label system is an environmental labeling program for computer equipment (including monitors) that was launched in July
2001 by the Japan Electronics and Information Technology Industries Association (JEITA). (At present it is administered by the PC 3R
Promotion Center.) The concept of this system comprises the following three components: (1) environmentally conscious product design
and manufacturing, (2) recovery and recycling of products after use, and (3) environmental information disclosure.
Eizo Nanao Corporation participates in the setting of standards for the program and is working aggressively to obtain certification for
additional products. These efforts will continue in the years ahead.

Energy Star and International Energy Star Program
The 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 agreementwith the U.S. government. We have participated in the program since its inception, and one of our products was the first computer
monitor to be registered under it. We have also been involved in the adoption of policy on new standards, and virtually all our products
have been registered.
The program’s requirements are being made stricter in response to the current societal focus on reduction of CO2 emissions and power
consumption, and we plan to continue our active involvement in the years ahead.

Environmental Report

SOCIAL &ENVIRONMENTALREPORT 2008

21
Compliance with the EU EuP Directive and REACH Regulation
In Europe, a key market for our products, environmental awareness is quiteadvanced even by world standards. It is therefore important to keep a careful
eye on trends in environmental regulations in the EU. Of these, the EuP
Directive and REACH Regulation are the focus of much attention in theelectronics industry. The details of their requirements and implementation
schedule remain unclear, but we are busy collecting information in preparation
for their coming into force so that we can bring our products into compliancequickly.

Compliance with the EU WEEE and RoHS Directives
In Europe, an anticipated increase in the volume of waste electrical andelectronic equipment led to the issuance on February 13, 2003, of the WEEE
Directive, which covers collection and recycling, and the RoHS Directive, which
restricts the use of designated hazardous substances. The RoHS Directive
stipulates that manufacturers of electronic equipment must ensure that products
put on the market in Europe from July 1, 2006, onward be free of six designatedsubstances: lead, mercury, cadmium, hexavalent chromium, PBB, and PBDE.
Both EU directives are of the greatest importance for companies sellingelectronic devices in Europe. Indeed, they have an influence that extends
beyond Europe to the regulations adopted in other countries, including Japan,
the United States, and China.
At our company the switchover began in July 2005 (products shipped from
August onward) and was completed for all target product categories by May

2006. For products sold in Japan, we have adopted the mark shown below foruse in catalogs and the like.
A Chinese version of RoHS was brought into effect by the Chinese government
on March 1, 2007. Like the EU RoHS Directive, it covers six hazardous
substances. It differs, however, in that it applies to products such as medical
equipment and batteries, which are exempted from the EU RoHS Directive. We
are complying with the provisions ofChina RoHS for all applicable products,
including display of the Controlling
Pollution by Electronic Information
Products mark.

Compliance with J-Moss
As part of a review of the Law for Promotion of Effective Utilization of
Resources, the Japanese Ministry of Economy, Trade and Industry instituted
legally binding labeling requirements based on the J-Moss (JIS C 0950)
standard in July 2006. J-Moss is a Japan Industrial Standard (JIS) thatspecifies the labeling method to be used to indicate the presence of specified
chemical substances in electrical and electronic equipment. There are six such

substances: lead, mercury, cadmium, hexavalent chromium, PBB, and PBDE.
The J-Moss standard stipulates that the absence of these substances in sevencategories of products, including personal computers and television sets, be
indicated by a Green Mark and that their presence be indicated by a different
mark. We are using the designated marks on products covered by the law,such as LCD monitors and LCD TVs.

This J-Moss mark indicates that content of thePb,designated chemical substances exceeds the specified
Cr(VI) standard. The chemical symbols for the substances are

The J-Moss Green Mark indicates that content of theseven designated chemical substances is below thespecified standard.
Pb,Cr(VI)displayed below or to the side of the mark.

Management of Chemicals
We are working to improve our surveying of chemical substances with the aim of
ensuring compliance with domestic and international environmental standards
and green procurement guidelines. Strict surveying and management ofchemical substances contained in parts and materials used in our products hasgrown in importance with the adoption by the EU of the RoHS Directive.
In response to these developments, we are presently building a chemical
substances survey management database that will provide full coverage for a
new industry-wide unified chemical substance survey form (the data form fromthe Japan Green Procurement Survey Standardization Initiative (JGPSSI) Green
Procurement Guidelines) listing more than 300 chemicals organized into 29
groups. This form is rapidly becoming the new standard within the industry inJapan. The new database will enable parts manufacturers to respond tochemical substances survey requests by entering data into electronic data forms.
This will allow all exchanges of information to be handled electronically, including

survey requests, tabulation of responses, and management of data.
In addition, information on which substances are permitted and which areprohibited will no longer be monopolized by a single management division. It is
becoming increasingly important that all of our divisions that handle products,
parts, and materials are able to share all relevant data. Viewed in this light, theimplementation of the new chemical substances survey management database
will be very significant because it will facilitate the smooth processing of green
procurement at all levels throughout the company.
As part of our efforts to comply with the RoHS directive, we have installed
fluorescent X-ray analysis machines. These expose test pieces to X-ray radiationand make it possible to determine their chemical content. Analyzing the moldedmaterials and electronic parts used in our products to confirm whether they
contain designated substances is an important part of controlling their chemical
makeup.

Green Procurement
Environmental awareness is a key issue in corporate management. Eizo Nanao
Corporation pursues environmental action based on its Environmental Policy.
This commitment is not limited to our internal operations, but also extends tocollaborative efforts with our suppliers. We promote a policy of green
procurement under which priority is given in purchasing to environmentallycompliant materials, parts, and products.

Communication

SOCIAL &ENVIRONMENTALREPORT 2008

22
Relations with the Community and Society
Company Tours
We conduct tours of company facilities to broaden understanding among the
public of our corporate structure and the products we manufacture.
Participants include school and education-related groups as well as groups of
local citizens. We view company tours as a valuable means of communication
with local people and as a way to spread recognition of our operations as acompany open to the community.

Total tour participants: 26 groups (631 participants)
Schools/education related
Breakdown

Environment/health and safely related
General (other)

Relations with the Community
Our facilities are located in a rural setting, and we endeavor to maintain strong
communication with the local community to ensure that any land developmentin the surrounding area will preserve the natural environment and not interferewith agricultural work.

13 groups

Our entries win top prize at Hakusan Chiyo-jo
Morning Glory Festival

Relations with Environmental Organizations
Office Paper Recycle Kanazawa is a program that aims to contribute in somesmall way to alleviating global environmental challenges and local trashproblems by uniting companies and organizations in the city of Kanazawa andits suburbs in a “regional circle of paper recycling.” The program’s activities
include separation and collection of waste paper (copier paper and otherhigh-grade paper, newsprint, cardboard, magazines, etc.) from offices,
recycling it into new products (such as toilet paper and file folders), and sellingthem to members. Employees of Eizo Nanao Corporation are actively involved
in separation and collection of waste paper, and the company purchases
recycled toilet paper as well.
Eizo Nanao Corporation also dispatches lecturers to environmental forums
sponsored by the Ishikawa Environmental Partnership Citizens Association. As
they lecture on the theme of global warming, we are cooperating in efforts toraise environmental awareness within the prefecture.
Public lecture

Partial List of Associated Environmental Organizations• Office Paper Recycle Kanazawa• Sustainability Communication Network• Green Purchasing Network• 22nd Century Environment Culture Foundation• Ishikawa Afforestation Promotion Association• Ishikawa Environmental Partnership Citizens Association

1 group

Topics

The city of Hakusan, where ourheadquarters is located, holds a
Chiyo-jo Morning Glory Festival
each August in honor of the haiku
poetess Chiyo-jo, who was born
there. We submit an entry every
year, and in 2006 and 2007 oursubmissions were awarded firstprize in the group/corporate
category.

We promote regional afforestation and environmental
preservation initiatives through membership in a varietyof environmental organizations.

12 groups

Affiliated Company Data

SOCIAL &ENVIRONMENTALREPORT 2008

23
INPUT

OUTPUT

Total Energy Usage

Greenhouse Gas Emissions

Energy Usage Breakdown| Electricity.................................4.14 million kWh (+3.1%) Climate control and other equipment| Gasoline and kerosene ......................... 1.4 kL (–1.2%) Company vehicles

Emissions of Six Substances Stipulated by Kyoto Protocol (t-CO2)| Carbon dioxide (CO 2) ...........................................................1,826 t (+13.9%)| Methane (CH4)....................................................................................0 t (–100%)| Dinitrogen oxide (N 2O) .................................................. 0.00069 t (–24.2%)
Note: Does not apply to HFCs, PHCs, or SF6.

Materials Usage
Paper Consumption| Copier paper................................................1.6 t (–6.3%) 100% recycled| Toilet paper...................................................1.1 t (–20.0%) 100% recycled
Consumption of Other Materials| Eutectic solder............................................0.7 t| Lead-free solder......................................10.3 t

Water Usage

1,826 t-CO2

3,000 m3 (–51.9%)

Fiscal 2007 Results
Reduction ● Investigation of excess packaging and requests for improvement.
of Waste ● Promotion of reuse of cardboard pallets.
● Reuse of cushioning materials.
● Reduction in number of defective circuit boards and parts due to processing errors.

Emissions and Movement of Chemicals

Eizo Nanao
MS Corporation
Hakui Plant(Operations: Assembly of
printed circuit boards for
Eizo Nanao Corporation
products)

Reduction ● Introduction of reflow furnace jackets.
of Energy ● Introduction of vaporizer-type humidifiers.
● Discussions of climate control energy conservation proposals with Hokuriku Electric Power Company.
Usage● Reduction in volume of copier paper through use of document management system.
● Measurement of workplace environment and noise.
Facilities
Management ● Appropriate processing of flammable oil waste.
and●Management Limitation of processes using solder containing lead.
of Hazardous ● Reduction in volume of solder containing lead used through switch to lead-free substitutes.
Substances ● Audit of water quality of water-purification tank.

| Emissions and movement of chemicals (lead) ........... 0.2 t (–72.0%)
Recycled

Product Production| Production quantity (based on main circuit boards)

CRT monitor circuit boards ....................................................0 units
LCD monitor circuit boards .................................... 735,000 units
Other monitor product circuit boards............... 816,000 units

Total Waste Output/Waste Final Disposal Volume
Waste Processing Breakdown| Recycled......................................................................................146.1 t (–5.9%)| Heat recovery .................................................................................7.6 t (–20.0%)| Simple incineration ......................................................................9.6 t (+50.5%)| Final disposal ..................................................................................5.7 t (+34.5%)
Waste Type Breakdown| Waste with commercial value.............................................11.7 t (–14.4%)| Industrial waste...........................................................................74.8 t (+10.5%)| General waste ................................................................................8.4 t (+75.4%)| Wastepaper ..................................................................................96.2 t (–4.9%)

Wastewater

3,000 m3 (–51.9%)

Figures in parentheses ( ) indicate comparisons with previous fiscal year.

INPUT

OUTPUT

Total Energy Usage

Greenhouse Gas Emissions

Energy Usage Breakdown| Electricity.................................1,090,000 kWh (+15.0%) Climate control and other equipment| Fuel oil A .........................................................0 kL (–100%) Climate control equipment| Gasoline and kerosene ...........................1 kL (–32.9%) Company vehicles| LPG.................................................................... 7 m3 (–84.5%) Food service

Emissions of Six Substances Stipulated by Kyoto Protocol (t-CO2)| Carbon dioxide (CO 2) ...........................................................487.5 t (–4.3%)| Methane (CH4)....................................................................................0 t (–100%)| Dinitrogen oxide (N 2O) .....................................................0.0003 t (–92.3%)
Note: Does not apply to HFCs, PHCs, or SF6.

Note: Large-scale volume reduction due to phase-out in September.

Materials Usage
Paper Consumption| Copier paper.............................................0.2 t| Toilet paper................................................1.0 t
Use of Other Materials| Chemicals (covered by PRTR)........... 0 t

Water Usage(–25.2%) 100% recycled(+7.7%) 100% recycled

3,000 m3 (–12.8%)478 t-CO2

Emissions and Movement of Chemicals

Eizo Nanao
MS Corporation
Nanao Plant(Operations: Assembly of
Eizo Nanao products)| Emissions and movement of chemicals (lead) ................0 t (±0%)

Product Production| Production quantity

CRT monitor circuit boards ....................................................0 units
LCD monitor circuit boards .................................... 328,000 units
Other monitor product circuit boards............... 809,000 units

Total Waste Output/Waste Final Disposal Volume
Fiscal 2007 Results
Reduction ● Change of outer packaging boxes for monitor products.
of Waste ● Confirmation of proper processing of waste.
● Improvement of Styrofoam recycling operations and efficiency.
Reduction ● Reduction in volume of copier paper through use of document management system.
of Energy ● Management of aging time.
● Reassessment of preheating time.
Usage● Switch to centralized control of heating and cooling temperatures.
Facilities Management and Management of Hazardous Substances● Measurement of workplace noise.
● Investigation of water quality of water-purification tank.

Waste Processing Breakdown| Reused ...................................................................................................0 t| Recycled......................................................................................190.4 t(–2.7%)| Heat recovery ..............................................................................31.1 t(–9.4%)| Simple incineration ..................................................................... 4.8 t (+170.8%)| Final disposal ................................................................................. 4.1 t (+137.9%)
Waste Type Breakdown| Waste with commercial value............................................... 2.1 t (+153.8%)| Industrial waste...........................................................................76.7 t (–11.4%)| General waste ............................................................................... 4.8 t (+170.8%)| Wastepaper ...............................................................................150.5 t(+5.3%)

Wastewater

3,000 m3 (–12.8%)

Figures in parentheses ( ) indicate comparisons with previous fiscal year.

Social and Environmental Timeline

SOCIAL &ENVIRONMENTALREPORT 200824
| Product Standards

1988

Start of utilization of bromine-free flame retardants in plastic parts.

1992

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

1993

Start of work toward TCO’92 certification.

| Corporate Action

Start of work toward Energy Star registration (major products).
1996

Start of utilization of halogen-free flame retardants in plastic parts.

Appointment of Environmental Management Officer to General Affairs Division.

Start of work toward TCO’95 certification.
1997

Start of environmental compliance assessment.

Adoption of Environmental Policy.

Expansion of survey of toxic substances in parts (to 34 substances).

ISO 9001 certification.

Start of registration of products under International Energy Star Program and Energy 2000.
1998

Start of work toward TCO’99 certification.

ISO 14001 certification.

1999

Start of work toward Eco Circle certification.

Closing of waste incinerators.

Elimination of cadmium from parts.

Establishment of environmental preservation web site on company intranet.

Expansion of survey of toxic substances in parts (to 920 substances).
2000
2001

Switch from water-cooled to air-cooled air conditioners.
Eco Mark registration.

Issuance of first Environmental Report.

PC Green Label registration.

Start of collection and recycling of commercial products.
Adoption of Corporate Philosophy.

2002

Establishment of the company’s environmental labeling(establishment of Eizo Eco Products 2002).

Introduction of monitoring system and computerization system.

2003

Start of work toward TCO’03 certification.

Receipt of Governor of Ishikawa’s Green Enterprise award.

Establishment of Eizo Eco Products 2004.

Receipt of Health Minister’s Award for Excellence in health and safety initiatives.
Start of collection and recycling of household products.

2004

Start of efforts to comply with the RoHS Directive.

Start of collection and recycling of commercial products based on requests from an expanded region.
Implementation of energy conservation measures in conjunction with upgradingof equipment (climate control, lighting) in headquarters building.
Implementation of traffic safety guidance in local communities.

2005

Start of shipment of products complying with the RoHS Directive.

Issuance of first Social and Environmental Report.
ISO 14001 certification of Environmental Management System including sales offices in its scope.
ISO 13485 certification.

2006

Eizo Eco Products 2006 standards adopted.

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

Start of J-Moss compliance efforts.
Start of compliance with WEEE Directive (display of recycling logo and completionof provision to recycling contractors of data on hazardous substances).
2007

Start of compliance with China RoHS (Management Methods forControlling Pollution by Electronic Information Products)

2008

Eizo Eco Products 2009 standards adopted.

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

Performance Track Reference Table

SOCIAL &ENVIRONMENTALREPORT 200825
National Environmental Performance Track is the name of a program run by the U.S. Environmental Protection Agency (EPA) for promoting environmental
preservation efforts by businesses. Eizo Nanao Corporation makes reference to Performance Track requirements that relate to our annual reports on environmental
performance as part of an ongoing effort to improve our environmental information disclosure system. The present state of our compliance with various
Performance Track requirements is summarized in the table below.
Performance Track Requirements (see notes below)*

Relevant Items in This Social and Environmental Reportof EMS assessment and Social Report• Overview
success in meeting long- andshort-term targets[EMS performance: Overview of EMS
performance based on goals andtargets. Includes overview of EMS
and compliance auditing andcorrective actions.]

Environmental
ReportPage

Corporate Governance/ [Overview of Management Organization] / ■ Internal Auditing System

Page 7

Environmental Policy

Page 10

Fiscal 2007 Environmental Objectives and Targets / Performance Report

Page 12

Fiscal 2008 Companywide Environmental Targets

Page 13

Environmental Management System/ [Operation of Environmental Management System]/ [Environmental Auditing]/ [Environmental Risk Management] / ■ Facility Management ■ Waste Processing

Page 15

Environmental Education/ [Environmental Education Initiatives in Fiscal 2007]/ [Strict Compliance with Laws and Regulations]description of progress toward President’s Message•Brieffulfillment of pledges regarding
environmental performance[Target performance: Details ofenvironmental targets and report on
status of improvements]

Environmental
ReportPage 3Overall Environmental Impact of Business Activities

Page 11

Fiscal 2007 Environmental Objectives and Targets/Performance Report

Page 12

Environmental Accounting

Page 14

Efforts to Prevent Global Warming/ [Greenhouse Gas Emissions] / ■ Greenhouse Gas Emissions/ [Energy Usage] / ■ Energy Usage

Page 16

Resource Conservation/ [Paper Usage] / ■ Paper Usage/ [Water Usage] / ■ Water Usage

Page 16

Reducing Waste Output/ [Industrial Waste] / ■ Industrial Waste ■ Breakdown of Industrial Waste/ [General Waste] / ■ General Waste/ [Paper Recycling] / ■ Paper Recycling

Page 17

Collection and Recycling of Used Products/ [Collection and Recycling of Commercial Products]/ [Collection and Recycling of Household Products]/ [Collection of CRT TV upon Purchase of LCD TV]

Page 18

Environmental Initiatives

Page 19

Ensuring the Quality and Environmental Awareness of Our Products/ [Basic Product Development Sequence]/ [Compliance with Environmental Standards]/ [TCO’03/TCO’06], [Compliance with Environmental Standards / PC Green Label],[Compliance with Environmental Standards / Energy Star and International Energy Star Program]

Page 20

Compliance with the EU EuP Directive and REACH Regulation
Compliance with the EU WEEE and RoHS Directives
Compliance with J-Moss

Page 21

Management of Chemicals
Green Procurement
Affiliated Company Data•

Overview of efforts aimed atcommunication with the communityand society in general[Communication performance: Details
of efforts aimed at communication withthe community and society in general]

Communication

Relations with the Community and Society/ [Company Tours]/ [Relations with the Community]/ [Relations with Environmental Organizations]* The requirements listed above relate to items referenced in the compilation of the Social and Environmental Report.
* Requirements in brackets are based on expressions appearing in the latest version of the Program Guide, issued in March 2008.
* The requirements listed above were adapted from the original Performance Track documentation (in English) for use in our environmental initiatives.

Page 23

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