2022

Sustainability Report 2022

CON TEN T S

This “Sustainability Report 2022” is a PDF version of the information on the website as of October 2022.
The website may also be frequently updated from October 2022.
• General
Sustainability Basic Policy‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 3
Materiality‧ ‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 4
ESG Promotion Framework ‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 5
Dialogue with Stakeholders‧ ‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 6
Coordination with External Initiatives ‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 7• Approach to Sustainability
FA Business‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 16
ROBOT Business‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 17
ROBOMACHINE Business‧ ‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 19• Social
Respect for Human Rights‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 23
With Our Customers‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 25
With Our Employees‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 44
With Local Communities ‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 62
Supply Chain ‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 66• Environment
Environmental Preservation Activity‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 74
Climate Change‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 82
Resources and Waste‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 91
Water‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 95
Biodiversity‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 96• GovernanceCorporate Governance‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 100
Internal Control System‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 103
Information Security‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 104
Intellectual Property‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 106
Tax Policy‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 108

Sustainability Information Guidelines Referenced• GRI Standards (Global Reporting Initiative)• Environmental Reporting Guidelines (2012 edition / 2018 edition) (Ministry of the Environment)• ISO26000

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Sustainability Report 2022

GeneralSustainability Report 2022

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Sustainability Basic Policy
FANUC provides indispensable values throughout the world in the field of factory automation through unceasingly creating
technological innovations, and will continue to be a company that is trusted by all stakeholders.

FANUC Sustainability MarkThis mark consisting of a “tree leaf” and an “infinity” symbol represents FANUC’s commitment
to creating a sustainable society by overcoming environmental and social challenges throughunceasingly creating technological innovations.

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Materiality
Materiality

Risks

Opportunities●The emergence of competitive products
utilizing new technologies may cause our
products to lose their core competence.

●We can maintain our superiority by
developing competitive products,
enhancing our services, and providing ourcustomers with attractive products.
●Creation of new markets through the useof new technologies also introduces new
business opportunities for FANUC toexpand its business domain and grow.

Maintain and improve
competitivenessResponse toenvironmental issues

Shrinking labor force
population

Building a governancesystem●Our factory may come to an almost
complete stop, if a large-scale disaster
happens in the area where the factory is
located.

●We have nearly finished establishingmultiple production sites for our CNC(computer numerical control) systems androbots, so that we can continue to serve
our customers, even in the event of a large­
scale disaster.

●Stricter environmental regulations on
resource conservation led by Europe, suchas reducing greenhouse gas emissions andmanaging chemical substance, may lead toincreased costs.

●We strive to provide highly dependable,high quality products that are “Reliable,
Predictable, Easy to Repair” and to minimize
downtime at our customers’ factories by
putting “Service First.” In particular, theconcept of lifetime maintenance, which
embodies our commitment to continue
providing maintenance as long as ourcustomers continue to use our products,
has helped to reduce waste for ourcustomers around the world.

●The transition from internal combustion
engines to EVs powered by electricmotors, driven by measures taken by theautomobile industry to combat climatechange, may have a major effect on themarket environment for our main productsin the FA business.

●Leading the development of energy-saving
products and products high in energy
efficiency will provide opportunities toexpand sales of our products in developed
markets such as Europe. The transition
to EVs will broaden the range of robot
applications, and create opportunities toincrease product sales. The number of
sensors and cameras mounted to EVs will
grow, and is expected to stimulate theincrease in sales of ROBOSHOTs (electric
injection molding machine). Furthermore,
the demand for high-precision parts usedin EVs and the demand for molds for EV
components are both expected to increase.
This will boost the demand for machine
tools in this sector, leading to a higher
demand for CNCs.

●It may become difﬁcult to hire competentpeople.

●The rising need for automation in
manufacturing sites also represents anopportunity to expand the industrial robot
market, and will lead to the development ofsafe and secure work environments.

●There is a possibility that correct
management decisions will not be made, orthat decision-making will be delayed.

●Proper decision-making will be madepossible by establishing a governancesystem under which the roles andresponsibilities of the executive bodies (themanagement) are separated from those themonitoring bodies (the Board of Directors).

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ESG Promotion Framework
At FANUC, various committees conduct activities related to the factors of ESG, such as the environment, health and safety, andcompliance, with important matters being reported to the Board of Directors.
● Board of Directors
Approval of policies, approval of medium- to long-term targets● Risk Management Committee
Addressing risks that may adversely affect the business continuity, enhancement of the corporate value, orsustainable development of the business activities● Cyber Security Committee
Reinforcement of cyber security system● Compliance Committee
Checking the status of whistleblowing and discussing issues● ISO14001 Meeting
Decisions on environmental activity plans, formulation of medium- to long-term targets● Health and Safety Committee
Deliberations and decisions regarding basic policies and measures on health and safety

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Dialogue with Stakeholders
Stakeholders

Customers

Communication
methodFrequency

Sales representatives

As needed

Collect and provide feedback on demands and requests
to FANUC. In addition, give customers tours of factories
to enhance their understanding about new products anddevelopment schemes.
Cancelled tours of factories in 2021 due to the COVID-19
pandemic.

ServiceAs needed

More than 2,300 service and support staff members aroundthe world provide telephone support, onsite customer
support, and maintenance parts management.

Membership website

As needed

Answer customer inquiries by email and chatbot. In
addition, we enable customers to purchase maintenanceparts thorough our membership website.

New products open house
show

Every year

Invite customers and introduce our latest products.
Cancelled our new products open house show due to the
COVID-19 pandemic, but in 2022 it was conducted underadequate infection prevention measures.

Exhibitions

As needed

Exhibit at trade shows in Japan and abroad to introduce
our latest products.

ESG Rating

As needed

Answer questionnaire for Ecovadis, CDP etc.

At least twice amonth

Hold discussions, negotiations, and exchanges of opinions
through regular monthly meetings and committees,
quarterly meetings, and labor-management negotiations.
Conducted these activities online in 2021 due to the
COVID-19 pandemic, as in the previous year.

Every year

Every year, we conduct an “organizational culture
assessment” to ascertain employee awareness. Eachorganization uses the results of the survey to identify
organizational issues and implements countermeasuresin a PDCA cycle to consistently improve the workplaceenvironment and enhance employee job satisfaction.

General meeting ofshareholders

Annually

Report on business reports, consolidated and nonconsolidated ﬁnancial statements, and audit results, anddeliberate and make resolutions on matters to be resolved
after Q&A.

Financial results brieﬁng

Quarterly

Hold brieﬁngs and telephone conferences on the contents
of ﬁnancial results and business forecasts, as well as
engage in Q&A sessions.

Individual dialogues withinstitutional shareholders

As needed

Explain FANUC’s initiatives and governance, and exchange
opinions.

ESG disclosure

As needed

Publicize ESG activities, as needed.

Coexistence with
communities

As needed

Contribute to the revitalization of the local economy
through tax payments, job creation, and having businesswith local companies.

FA Foundation

As neededAward prizes to recognize research results on factory
automation (FA) and industrial robot technology.

Economic and industry
associations

As needed

Participate in the planning and implementation of various
initiatives by organizations.

Public-private joint projects

As needed

Participate in various public-private joint projects andpromote technical exchanges.

Labor union

Employees
Organizational culture
assessment

Shareholders

Communities

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Coordination with External Initiatives
FANUC promotes partnerships with various organizations including public institutions and organizations inindustrial and academic fields, to realize sustainable development.

Public Institution
FANUC participates in the Study Group on Establishing an Industry-Academia Collaborative
Framework for Human Resource Development, held by the Ministry of Economy, Trade and Industry.
The Consortium of Human
Education for Future Robot We are actively engaged in robotics human resource development activities, such as participating in
System Integration (CHERSI) CHERSI, which will develop human resources specialized in robotics, and giving online lectures on
the latest robotics technology for College of Technology.

New Energy and Industrial
Technology Development
Organization (NEDO)

FANUC participated in the Strategic Innovation Program for Energy Conservation Technologies
conducted by NEDO by submitting a research plan on the development of machine tools for realizing
energy saving, “R&D on Energy-Saving Machine Tools that Apply New Structural Materials,” jointlywith the Japan Machine Tool Builders’ Association and other organizations and achieved the plan’senergy-saving targets through research extending over three years.

Economic and Business Associations
FA Foundation

This foundation was established for the purpose of giving awards for research achievements related
to FA (factory automation) and industrial robot technology. It is operated using the interest fromfunds donated by FANUC at the time of its establishment and subsequent donations by FANUC.

Japan Business Federation(KEIDANREN)

As a member of KEIDANREN, FANUC strives to resolve international issues and strengthen
economic relations with other countries through dialogue with concerned parties and attendance atcommittees, while complying with the Charter of Corporate Behavior.

The Japan Machinery
Federation

This organization aims to contribute to the overall progress and development of the machineryindustry and to the advancement of the Japanese economy. FANUC belongs to this organization as
a company member and serves as a general executive officer.

Japan Machine Tool
Builders’ Association

The Association is a comprehensive organization related to the machine tool business, which ismainly comprised of machine tool builders in Japan. FANUC’s Chairman, Dr. Yoshiharu Inaba, serves
as its Chairman.

Japan Robot Association

The Association is an organization that encourages research and development on robots andassociated system products, and promotes the use of robot technology. FANUC’s President andCEO, Kenji Yamaguchi, serves as its Chairman.

The Japan Society ofIndustrial Machinery
Manufacturers

FANUC is a member of the Society, which is an organization that drafts and promotes measures toincrease productivity and to rationalize production structure in the ﬁeld of environmental equipment,
plastic machinery, and other industrial machinery.

Optoelectronics
Industry and Technology
Development Association

FANUC regularly participates in the Multi-Technology Integrated Optical Process Study Grouphosted by the Association.

Japan Forming Machinery
Association

FANUC participates in the drafting of relevant ISO standards as a member of this Association.

ROBOT Industrial BasicTechnology Collaborative
Innovation Partnership(ROBOCIP)

FANUC participates as a member of the ROBOT Industrial Basic Technology Collaborative Innovation
Partnership (ROBOCIP), in which robot manufacturers collaborate in basic technological researchof industrial robots, with the aims of broadening and deepening the scale and content of researchbeyond what could be accomplished independently as well as strengthening the foundation fortechnological innovation in line with the SDGs (Sustainable Development Goals).

TCFD (Task Force on
Climate-related Financial
Disclosures)

In December 2021, we have agreed to the TCFD recommendations and disclosed information on theimpact of climate change on our business activities.

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Academic Associations
Participation in various
conferences

FANUC participates as a sponsor in academic societies of relevant ﬁelds (The Japan Society for
Precision Engineering, The Japan Society of Mechanical Engineers, The Institute of ElectricalEngineers of Japan, The Robotics Society of Japan, The Japan Society for Abrasive Technology, The
Society of Instrument and Control Engineers, The Japan Society of Polymer Processing, etc.), as wellas in academic lectures, to collect the latest technical information.

Exchange of opinions with
universities

Every year, FANUC invites faculty members of several universities to its new products open houseshow in April, where we introduce our latest products and have the professors introduce the latest
technologies, targeting technical exchange.

Collaboration with
universities

FANUC collaborates with major domestic and overseas universities, such as the University of Tokyo,
Tokyo Institute of Technology, the University of California, Berkeley (USA), and other universities
to conduct joint research and exchange opinions. We also provide scholarship donations to help
cultivate young researchers for the future.

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Approach to
Sustainability

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Approach to Sustainability
FANUC operates the businesses of FA, ROBOT, and ROBOMACHINE, as well as the IoT business that improves these threebusinesses. Since its foundation, we have developed a tough corporate structure by focusing on these businesses, without blindly
seeking to expand the scale of its business. And we aim to remain a company trusted by stakeholders by working to provide essential
value to not just customers but also to society through persistent technological innovation in all of our businesses and fulfilling oursocial responsibility through our business activities. Demand for factory automation is expected to continue to grow. FANUC willcontinue to aim to achieve SDGs by creating new value and working to resolve environmental issues such as climate change andother social issues including the need to improve work environment.

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Two Perspectives on Sustainability

FANUC’s two perspectives on sustainability are “energy saving and carbon neutrality” and “SDGs.”

We are engaged in efforts to reduce greenhouse gas emissions, reduce power consumption, and utilize green energy by switchingfrom hydraulic to electric power.

We will contribute to achieving 8 of the 17 goals, in particular, improving the working environment, increasing productivity, reducing
waste, etc.

Initiatives in Products (FA) (Contribution to Customers)
Reduction of power consumption dependent on machining
We are working to reduce power consumption of CNC, servo, and laser systems.

●Development of low power consumption CNC●Power supply regeneration returns deceleration energy to the power supply for effective use (35% reduction compared to theresistance regeneration method in our example)●Amplifier loss reduction through the application of low-loss power elements (loss reduction has been achieved continuously since
the past and is currently up to 28% less than in 1995)●Motor loss reduction by high-speed current control●Laser power saving function
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Power consumption reduction dependent on processing time
● Control technology for cycle time reduction reduces operating time of auxiliary equipment, etc.
○ Drilling and tapping processes are sped up through the optimization of machining paths○ Cycle time reduction through speed control that optimizes cutting load
○ Handling of the latest machining tools and technologies, such as turning through a reciprocating motion○ Improved efficiency of peripheral device operation, etc., through faster sequence control

High speed drilling and tapping●AI thermal displacement compensation using machine learning corrects thermal displacement immediately after machine power-on.
Reduces warm-up time and power consumption. (In the example below, warm-up time is reduced to 1/6.)

Reduction of warm-up timePower consumption reduction of the entire machine●Displays supplied power and power recovered by power regeneration in real time on the power consumption monitor●Provides an energy saving level selection function that allows selection of operation settings that prioritize machining time or
power consumption, enabling confirmation of power consumption and machining time. Level can be set by confirming the power
consumption amount and machining time on the CNC screen●Visualizes operation status and power consumption through MT-LINKi and supports optimization of machine operation●Reduces power consumption during trial machining by utilizing machining simulation to reduce trial machining

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Initiatives in products (Robots) (Contribution to Customers)●We conduct product development that is environmentally conscious. In the development of the CRX, the weight was significantly
reduced to 40 kg, compared to the 150 kg mass of the conventional 10 kg payload class machine. This has reduced power 		
consumption to 100-300W.

● In addition to weight reduction, we are working on various other initiatives.
○ Reduction and visualization of power consumption through energy-saving functions○ Reduction of CO₂ emissions during transportation through weight reduction○ Peak power dispersion through nighttime operation of robots○ Contribution to an increase in the ratio of renewable energy

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Initiatives in Products
products (Robomachines) (contribution(Contribution toto customers)
Customers)
ROBODRILL initiatives● Improved productivity○ High machining performance...Reduces cycle time with a unique fixed cycle that ensures smooth and lean operation.
○ High operating rate...ROBODRILL-LINKi collects and visualizes operating information, contributing to improved operating rate andwork efficiency.
○ Ease of use...Utilization of dedicated G-code significantly reduces programming time
● Power consumption reduction○ Power supply regeneration...Motor regenerative energy is returned to the power supply for reuse.
○ Energy-saving functions...Various energy-saving functions minimize power consumption during standby.
○ Power consumption monitor...Visualizes power consumption and can be centrally monitored with ROBODRILL-LINKi.
● Waste reduction○ Rechargeable battery unit...Reduces disposal of backup batteries, making the machine maintenance-free.
○ Longer spindle life...Environmental resistance has been improved by adding air purge to the rear side of the spindle.
○ Longer life of each spindle cover...Each spindle cover has been reinforced to improve durability.

ROBOSHOT initiatives● Improved productivity○ High molding performance...Simultaneous operation reduces cycle time.
○ High operating rate...ROBOSHOT-LINKi2 can be used to analyze the operation rate and examine ways to improve it.
○ Ease of use... Outstanding operability achieved by a large screen display unit.
● Power consumption reduction○ Power supply regeneration...Motor regenerative energy is returned to the power supply for reuse.
○ Barrel heat insulation cover...Full enclosure with heat insulation material suppresses heat dissipation from the heater and reduces
power consumption.
○ Power consumption monitor...Analyzes power consumption and supports energy-saving activities.
● Support for environmentally friendly resins○ Recycled resins...The deep groove of the plasticizing screw enables stable measurement of recycled resin (crushed material).
○ Biomass resin...Molding of biomass-derived resin contributes to carbon neutrality.

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ROBOCUT initiatives● Improved productivity○ High machining performance...High-speed machining conditions improve machining speed.
○ High operating rate...operating rate is improved by high wire connection rate with AWF3 automatic wire connection.
○ Ease of use...Guidance function prevents operation errors and supports lean operation.
● Power consumption reduction○ Discharge power regeneration...Energy stored in the feed cable when generating discharge pulses is regenerated and reused in
the DC power supply of the discharger.
○ Sleep mode...Minimizes power consumption during standby to reduce unnecessary power consumption.
○ Power consumption monitor...Visualizes power consumption to support energy-saving activities.
● Longer life of expendable parts○ Longer life of filter...Filter life is extended through flow control.
○ Extended electrode pin life...Contact pressure between wire and electrode pin is increased to suppress wear caused by electricaldischarge, extending the life of the electrode pin.
○ ROBOCUT-LINKi...The usage of expendable parts can be monitored remotely.

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FA Business● Products○ CNCs, servos, lasers● Strengths○ FANUC’s basic technology○ Top-level global market share of CNCs (FANUC estimate)

Business Overview
The FA business is the origin of FANUC and its basic technology. FANUC is the first private-sector company in Japan to havedeveloped numerical control (NC) and servo technologies that control machine tools using numerical information. Until then, highly
skilled engineers, who have acquired know-how through many years of training, were indispensable for high-precision processing
by machine tools. FANUC made it possible to complement skilled engineers’ skills with NCs and servos. Computer-controlled NCs(CNCs) and servos further made it possible to process complex shapes and produce varied items efficiently. Currently, FANUC offers
CNCs and servos covering a broad range from simple machine tools to composite machining equipment with complex configurations
to industrial machinery. Further, demand for introduction of robots in machine tools is increasing at machining sites, with an aim toautomate processes or labor saving. Believing improved compatibility between machine tools and robots is important, FANUC isdeveloping the functions to enhance it.

Value Created by FA Business
High-machining performance CNCs and high-speed, high-precision servos contribute to improved productivity as they enable more
precise, higher-speed machining. We have implemented energy saving features in our servos. Laser products contribute to improving
quality of products of users with their high-quality machining capability supported by FANUC’s CNCs and servos installed in them. It isessential to improve operating rates for improving productivity of factories. In order to avoid extended suspension of production lines
due to machine trouble or emergency maintenance work, we attach importance to functions and designs for preventive maintenance.
Factory operation at high operating rates becomes possible through monitoring of insulation resistance of motors, drops in thenumbers of rotations of fan motors for CNCs and servo amplifiers, etc. and conducting preventive maintenance in advance of a halt of
the machine.

Ensuring Customer Safety
It is important to help operators not used to operating machines use FANUC products safely, as the numbers of people working in the
manufacturing industry and highly skilled engineers are expected to decrease. FANUC’s products are compliant with safety standards,
including the ISO/IEC standards, and certified by accreditation organizations. In addition, sufficient attentions are paid to safety use as
CNCs are equipped with functions to suspend operation upon receiving an alarm in case of operational errors.

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ROBOT Business● Products○ Robots● Strengths○ Products applied with CNCs and servos, FANUC’s basic products○ Top-level global market shares (FANUC estimate)

Business Overview
FANUC exclusively targets industrial robots, instead of service, medical, or entertainment robots. We concentrate on helping customers
automate or robotize their factories and contributing to improved productivity. Our industrial robots, which include types for welding,material handling (transportation of articles), assembly, and painting, according to application, are used in wide-ranging industries, including
automotive, electronic parts, logistics, food, pharmaceuticals, and cosmetics. FANUC’s industrial robots are general-purpose robots and usedin many industry sectors.

Value Created by ROBOT Business
Robots help solve a variety of issues society is facing. Robots, which perform strenuous work as programmed even under harsh environment,
release workers from dangerous, dirty, and difficult jobs. Robots can also improve productivity and reduce night shift for workers as they can
perform precise work over a long time at a certain speed, even at night. COVID-19 outbreaks occurred in 2020. In such a time, robots canhelp protect health and safety of people by substituting some workers to allow them to avoid the “Three Cs” (closed spaces, crowded places,
close-contact settings). Introducing Zero Down Time (ZDT), a preventive maintenance and problem prediction using IoT, can service robots
before they break down, helping to avoid extended suspension of a production line just because of trouble in a single robot. Robots thus
not only promote automation and robotization of factories and contribute to improved productivity but also help improve work environment,
ultimately achieving improved productivity in labor-intensive industries through technology, a target of SDGs.

Robots for a new age
The market of “collaborative robots,” which can work alongside human workers, is growing. As collaborative robots automatically stop safely
when touched by humans, they do not require safety fences. By assisting work alongside human workers, operators can avoid strenuous work
and workers whose physical power is weak can work safely. The CRX series, light-weight collaborative robots FANUC announced in December
2019, are a new type of collaborative robots developed to achieve thorough ease of use for customers. As these products are light, you cancarry and install them without using a crane. The manual guided teaching feature that allows users to directly move the arm by hands enables
intuitive robot operation. Users can design teaching programs in a smartphone-like operation, using drag-and-drop operation on a tablet
device they are familiar with. The robots, designed with an aim to create an appearance that coexists with humans, make workers feel safe.
They are robots for a new age, equipped with a safety feature that stops itself when touched and maintenance-free (for 8 years), high reliability.

Targeting Expanding Robot Market
According to statistics by the International Federation of Robotics, the number of industrial robots in operation has increased year by year andis expected to continue to grow. FANUC develops robots that can help solve issues faced by society and as measures to improve productivityof customers’ factories and address decreases in working population and highly skilled workers.

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ROBOMACHINE Business● Products○ ROBODRILLs (compact machining centers)○ ROBOSHOTs (electric injection molding machines)○ ROBOCUTs (wire electric discharge machines)● Strengths○ Products applied with CNCs and servos, FANUC’s basic products○ Top-level global market share of ROBODRILLs (compact machining centers) (FANUC estimate)○ Top-level global market share of ROBOSHOTs (electric injection molding machines) (FANUC estimate)○ High precision performance, high operating rates, easy to use

Business Overview
Products of the ROBOMACHINE business are comprised of machine tools or industrial machinery installed with FANUC’s CNCs andservos. They are used for production in factories of machine users. They are all highly compatible with FANUC robots. Factory automation isenhanced through the combination of ROBOMACHINEs and robots.
Machine users can improve quality of their products and shorten the time it takes for machining by using FANUC’s highly reliable, high­performance ROBOMACHINE products. The products will contribute to improved productivity of machine users’ factories.
Furthermore, a function to monitor the operational status of the entire factory in real time will enable designing of more precise productionplans and improvement in operating rates (ROBODRILL-LINi, ROBOSHOT-LINKi, and ROBOCUT-LINKi ).
ROBOSHOTs and ROBODRILLs became eligible for a subsidy for business expenses supporting promotion of advanced energy-saving
investments, allocated in the FY2022 supplementary budgets in recognition of their energy-saving potential. Furthermore, ROBOSHOT
became eligible for a subsidy in the FY2022 for ESG lease promotion business for the establishment of a decarbonized society.
ROBOMACHINE products are used in the production of medical instruments, including syringes and artificial bones, contributing to efforts toachieve a goal among SDGs of securing healthy life.

Value Created by ROBODRILLs
ROBODRILLs are compact machining centers. They are used for machining metal materials, such as iron and aluminum, with tools and for
drilling holes.
The products have superior machining performance for their compactness and contribute to making production equipment smaller andsaving energy. They improve production efficiency by thoroughly reducing redundancy in machines’ operation, and achieve more stablemachining through the use of AI thermal displacement compensation function. These features help improve machine users’ product quality
and productivity.

Value Created by ROBOSHOTs
ROBOSHOTs are electric injection molding machines. They form melted plastics, etc. into shapes by casting them into metal molds. Many
components used in daily lives, including mobile phone components, auto parts, and medical instruments, are made using injection molding
machines.
FANUC’s products can perform more precise and stable molding thanks to the highly-rigid and low-friction mechanism and contributeto manufacturing of high value-added precision molded products. AI backflow monitor helps estimate the amount of wear on backflow
prevention rings, allowing for replacement of components at optimum timing. This contributes to reducing molding defects and improving
operating rates.

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Value Created by ROBOCUTs
ROBOCUTs are wire electric discharge machines, which use discharge
phenomena between wire electrodes and the workpiece to perform machining.
They can perform machining on anything from thin boards to ultrahardmaterials, which are difficult to process for cutting tools, into complex shapes
as long as the material is conductive, regardless of its hardness.
By achieving stable machining through the use of the AI thermal displacementcompensation function, these products contribute to improving machine users’
product quality. The automatic wire feeding (AWF3) can automatically recoverfeeding when a wire is accidentally cut and disconnected during machining,
thereby enabling unmanned operation for long periods. These featurescontribute to improving operating rates.

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SocialSustainability Report 2022

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SocialFANUC contributes to the development of its customers’ businesses and the manufacturing industry, by promoting the automation
and robotization of customers’ factories. In addition, our employees, who support FANUC’s corporate activities, are also regarded asimportant stakeholders.
FANUC gives due consideration to people and society, while contributing to the creation of an affluent society as well as its
sustainable development.

Policies
� FANUC Code of Conduct� Human Rights Policy
� CSR Procurement Policy

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Respect for Human Rights
Basic Approach
At FANUC, we respect the human rights of all persons involved in our business, based on the understanding that it is the basic
principle of all activities, in accordance with our Human Rights Policy.
In addition, the FANUC Code of Conduct prohibits “discrimination based on race, beliefs, gender, social status, religion, nationality,
age, mental or physical disability, sexual orientation, sexual identity, etc.”
We are constantly engaged in efforts to foster awareness, so that employees do not infringe the human rights of others throughharassment prevention education and line-care training.
��

Human Rights Policy
FANUC Code of Conduct

Laws and International Norms of Behavior
FANUC respects human rights as deﬁned in international norms, such as the Universal Declaration of Human Rights, the International
Covenant on Civil and Political Rights and the International Covenant on Economic, Social and Cultural Rights, and the International
Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work, in accordance with the guiding principles on
business and human rights.

Human Rights Due Diligence
The following items will be addressed as priority issues.

Prohibition of Discrimination● Prohibition of discrimination based on gender, age, nationality, ethnicity, race, place of origin, religion, beliefs, disability, sexual
orientation, sexual identity, etc.

Respect for the Rights of Workers● Ensuring employee health and safety● Prohibition of all forms of harassment● Prohibition of child labor and forced labor● Respect for the rights of foreign and migrant workers● Respect for freedom of association and the right to collective bargaining● Prevention of low-wage labor (labor less than the minimum wage and living wage)● Prevention of excessive amounts of overtime

Respect for the Rights of Vulnerable People● Respect for the rights of local and indigenous peoples related to our business● Respect for the rights of women, children, persons with disabilities, minorities, and the elderly● Avoiding complicity in conﬂicts and human rights violations relating to mineral procurement

Protection of Privacy and Personal Information● Respecting the privacy of customers, employees, and other parties concerned, and protecting personal information
FANUC will evaluate and identify potential and actual human rights risks and implement measures to avoid or reduce such humanrights risks.
We will encourage our business partners and related parties not to infringe human rights if they have a negative issues on humanrights.
When it is clear that our business has caused or has engaged in any violation human rights impacts, we will endeavor to implement
remedies them, and will establish a grievance system as necessary.

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Promotion Framework
A helpdesk has been established in both the Human Resources Division and the labor union to provide advice across the entire
company. A helpdesk has also been set up in the Welfare Department of the Human Resources Division, led by the executive
employees in charge (one male and one female). This helpdesk offers advice on all forms of human rights-related harassment,
including sexual harassment, maternity harassment (harassment related to pregnancy, childbirth, child-care leave, etc.), and power
harassment. The existence of this helpdesk is being widely advertised through the company-wide portal site. We have established aframework to respond to inquiries from employees and offer advice.
In these consultations, due attention is given to the protection of privacy, and consideration is given to ensure that anyone seeking
advice and anyone who is involved in confirmation of the facts of the matter are not subjected to unfavorable treatment. Based on
confirmation of the facts, the consultations are handled by the parties concerned, taking confidentiality into account, and appropriate
measures are taken. In this way, we strive to improve the workplace environment to make it a more comfortable place to work.

Communication● We thoroughly inform all employees and our group companies of our human rights policies.
● Communicate with relevant stakeholders on measures against risks and impacts on human rights.
● We will appropriately disclose and report information on our Human Rights Policy and related initiatives.

Harassment Prevention Training for All Employees
Harassment in the workplace is not only an act that unjustly harms the dignity and character of the individual, but it is also an
absolutely unforgivable act that damages the workplace environment.
FANUC strives to prevent harassment, with the aim of achieving workplace environments in which all employees can maintain goodmental and physical health and work energetically with peace of mind.
Our efforts to establish workplace environments that will not give rise to harassment include harassment prevention training on
an e-Learning platform, group harassment-prevention training for executive employees, company-wide preventive measures, andfostering understanding of diversity.
We post examples of harassment and the company’s responses on the company-wide portal site to thoroughly raise awarenessamong employees.

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With Our Customers
Basic Approach
The three philosophies of FANUC are comprised of “one FANUC,” “Reliable, Predictable, Easy to Repair,” and “Service First.” FANUC
contributes to the manufacturing industry around the world by conforming to, and practicing these philosophies.
In development, FANUC focuses on ensuring its customers’ safety and enhancing their productivity.
FANUC strives to enhance the quality, safety, and reliability of its products, and has established a quality management system toward
this end.
FANUC provides lifetime maintenance to its products for as long as they are used by customers, through more than 260 service
locations throughout the world. In addition, FANUC strives to improve customer satisfaction through the provision of training courses
at FANUC ACADEMY and support at the time of product installation.

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With Our Customers

Improving Customer Productivity
FANUC pursues the automation and robotization of our customers’ factories as well as their high efﬁciency. FANUC has realized ahigh operating rates by analyzing failure information regarding our products, and conducting ongoing research and development toenhance reliability.

FA Business
FANUC provides highly reliable CNCs, servos, and lasers, which constitute the basic technologies of FANUC. As well as improvingease of use for machinery manufacturers, we also enhance end users’ productivity by improving performance and save space byreducing the size of devices.
In addition, we contribute to improving the quality of end users’ products by achieving high-quality machining. The manufacturingof a variety of industrial products using machine tools equipped with FANUC’s CNCs and servos contributes to an efﬁcient society,including the manufacturing industry.

Developing a simulation
function

The development of CNC simulators and CNC GUIDE has made it possible to provide education onmachining programming, even in the absence of actual machine tools. This leads to the improvementof educational efﬁciency at training sites in the manufacturing industry, as well as a reduction in therequired number of units of training machinery and equipment, thereby helping to reduce resources.
In addition, predicting the machining results before the actual machining through the Digital Twinof CNC utilizing CNC GUIDE 2 to reproduce the operation of CNC enables the detection of errors
in machining programs and the optimization of machining conditions. This leads to the reductionof defects caused by machining errors in the actual machining.This reduction enables cost cutting
as a result of curbed power consumption at the time of performance of relevant tasks (such as
regular disposal of cutting chips) and machining, because it reduces the amount of cutting chips andcoolant discharged.

Developing customizable
functions

Since the structures and functions of the machine tools provided by machine tool builders, who
are our customers, differ, the required operating screens and control functions also vary. The
development of functions allowing customers to easily customize tasks, such as designing displays
and controlling signals, enables each customer to provide operators with operability suited to theirown machines.

Servo Learning Oscillation

The biggest obstacle to automating turning is that long chips become entangled in the workpiece ortool during turning or drilling. In addition, such long chips are difﬁcult to discard. This function solves
these issues by shredding chips during turning or drilling, mitigating problems such as damage totools and defective machining.

Fast Cycle-time Technology

This is a group of functions that reduce machining time. Through optimization of the actualmachining operations of the machines as well as a reduction in non-machining time, the overallmachining time is shortened and the operating rates of the machines is improved.

SERVO GUIDE,AI Servo Tuning

We provide our customers, manufacturers of machinery, with support tools to easily realize high-leveltuning of parameters to control the servo motor. The inclusion of an AI-based tuning support function
improves the machining performance of machine tools.

AI Servo Monitor

By using FANUC CNC and servo data, signs of malfunctioning spindle axes and feed axes ofmachine tools can be detected without a separately installed sensor.
The AI servo monitor detects changes such as damage to spindle axes and feed shafts asanomalies, preventing sudden malfunctioning of machine tools and contributing to stabilization of
production and maintenance plans.

iHMI

iHMI provides a user interface that simpliﬁes the operations of the operator who is the actual user ofthe machine tool.

MT-LINKi

With MT-LINKi, it is possible to identify machining processes that may constitute bottlenecks in the
production line, by knowing the operational status of the machine tools installed in the factory. Thisfacilitates process improvement.

Fine Surface Technology

This CNC and servo control technology realizes high-quality machining. This technology can reduce
the quantity of work in subsequent processes, such as polishing the machined surface, and enables
reduced friction in components used in the manufacturing of automobile parts. This results inenhanced automobile quietness, and solves problems such as noise.

Failure diagnosis function
Preventive maintenancefunction

The failure diagnosis function provides guidance when warnings and alarms are issued, whichindicates the cause along with countermeasures, thereby shortening recovery time, as well as apreventive maintenance function that detects signs of failure, thus reducing machine downtime.

Improving spindle motor
outputBy molding the stator with highly thermal conductive resin to improve cooling performance, theoutput of the spindle motor can be increased without changing its size, thus contributing to theimprovement of the machining performance of machine tools.
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Laser-related products

CNC and highly reliable lasers that have highly synchronous connections between robot axis control
and laser output commands enable pinpoint laser irradiation, for the realization of machining with an
exceptionally high degree of precision.
Further, the combined application of the many laser machining functions that we have built up over
the years, such as laser-power control that controls laser output according to machining speed,dramatically improves the speed, precision, and quality of machining and ease of use and raises ourcustomers’ work efficiency.

ROBOT Business
Robots which utilize the basic technologies of CNCs and servos relieve workers from dangerous, dirty, and difﬁcult jobs byperforming tasks that were previously handled by humans. At the same time, robots revolutionize work styles, such as by reducing
work hours and eliminating night shifts. Through the development of intelligent robots using visual sensors and force sensors, theareas in which robots can be used are expected to expand.
In addition to automating production lines and enhancing efﬁciency, the utilization of robots improves and stabilizes product quality,
as they can continue consistent production over long periods.

Saving space

The Robot R-2000iD, which is frequently used in spot welding and handling applications, has afootprint that is 23% smaller than those of conventional models.
Our wide range of models can be mounted in a variety of conﬁgurations, including on shelves, walls,
and ceilings, and save space by optimizing the factory layout.

Reducing robot cycle time

FANUC has acquired a patent for the world’s ﬁrst practical learning robot. For example, in aconventional car body welding line, the utilization of 30 robots reduced cycle time by 10.2% after
learning.

Improving cost efﬁciency

An automatic guided vehicle (AGV) equipped with a collaborative robot can move autonomously,
allowing a single robot to work at multiple locations, and improves the operating rates of the robot inprocesses with long cycle times.

Automation system design
support tool

The use of ROBOGUIDE, a software that automatically calculates the optimal layout of machines androbots, can reduce the time for trial and error required to design an automation system.
Optimizing the operating program using ROBOGUIDE reduces cycle time.

Reducing downtime

Zero Down Time (ZDT) is a “predictable” function that alerts users before failure and improves
productivity by reducing the downtime in factories. ZDT is connected to more than 25,000 robots
around the world, and has prevented more than 1,700 downtime cases.

Remote monitoring ofoperation

A robot’s teach pendant screen can be viewed from a remote PC via a network. Accordingly, theoperating conditions of many robots can be conveniently checked from the ofﬁce, eliminating theneed to make rounds of the factory to inspect the operating conditions of each robot.

Software Provision
Platforms

With the new collaborative robot CRX, we have established a platform in which customers candownload the latest software from our website and update it as needed by themselves, eliminating
the need for our service personnel to attend customers’ factories to set it up. This enables ourcustomers to operate their machine tools with the up-to-date software at all times.

Reducing equipment costs

The 7-axis Robot P-1000iA, used for painting automobile bodies, contributes to drastically reducing
the size of the paint booth compared to the use of conventional 6-axis robots. It is possible to greatly
reduce initial costs when a paint booth is built as well as running costs such as air-conditioning.

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Awards on ROBOT Business
Winner of the President’s Award (2021): 10th Technology Management and Innovation Awards, Japan TechnoEconomics Society
Triple award winner (2020): Minister of Economy, Trade and Industry Award at the Ninth Robot Awards; Nikkei
Sangyo Shimbun Award in the 2020 Nikkei Superior Products and Services Awards; and the 63rd Nikkan Kogyo
Shimbun Ten Great New Products Awards Main Prize
FANUC Robot CRX-10iA

Winner of double awards (2019): Nikkei Sangyo Shimbun Award for Excellence in the 2019 Nikkei Superior
Products and Services Awards/62nd Nikkan Kogyo Shimbun Ten Great New Products Awards Main Prize
FANUC Robot R-2000iD/210FH

Winner of double awards (2018): Minister of Economy, Trade and Industry Award and Minister of Internal Affairs
and Communications Award at the Eighth Robot Awards
Zero Down Time (ZDT)ROBOMACHINE Business
ROBOMACHINE Business provides three product groups, consisting of ROBODRILLs (compact machining center), ROBOSHOTs(electric injection molding machine), and ROBOCUTs (wire electrical-discharge machine), which utilize the basic technologies for
CNCs and servos. All of these product groups boast high performance and high operating rates, and help our customers adopt IoTin their factories.

Saving space

Compact ROBODRILLs with high machining performance provide the beneﬁts of both saving factory
space and increasing ﬂexibility in terms of factory layout.

Reducing machining time

ROBODRILLs shorten cycle time and achieve high productivity by thoroughly reducing idle time by
executing tool changes and table positioning operations concurrently. In addition, we are proactively
expanding compatibility with new machining methods using special tools.

AI backﬂow monitor

ROBOSHOTs leverage AI to evaluate and predict wear on expendable parts (backﬂow preventionring), and conduct “predictable” preventive maintenance. This makes visual inspections, which is theconventional way to conﬁrm wear, unnecessary, thus reducing the workload.

Multi-functionalizing
standard models

A second injection unit was developed for ROBOSHOTs. With this unit, molding of two types of resinmaterials with different functional requirements is made possible with in a single mold achieves highvalue-added molding and less man-hours in the assembly process.

AI thermal displacementcompensation function

Fluctuations in cutting accuracy caused by changes in the temperature of ROBOCUTs are predicted
and controlled using AI technology. As a result, compensation accuracy improved by roughly 30%
compared with the conventional models.

High reliable auto wire
feeding (AWF3)

The ROBOCUT features highly reliable automatic wire feeding that can automatically recover feedingwhen a wire is accidentally cut and disconnected, thereby enabling unmanned operation for long
periods.

Job Interruption Function

In ROBOCUTs, we have developed a function that allows the user to interrupt the current machining
operation to perform another one with a higher priority, if necessary during machining, and easily
continue the original machining after the job is finished. This enables flexible operation of themachine and improves the productivity of our customers.

ROBODRILL-LINKiROBOSHOT-LINKi2
ROBOCUT-LINKi

Monitors the operating status of the entire factory in real- time and supports the early detection oferrors for quick recovery, contributing to improvements in operating rates of factory equipment.
ROBOSHOT-LINKi2 enables significant increases in the number of connectable injection molding
machines and in the quantity of data stored. It also makes it possible to view the system from mobile
devices such as tablets.
In addition, the periodic inspection and testing function provides comprehensive support foreverything from inspection scheduling to work recording.

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Our automation introduction packages, which combine ROBOMACHINE and ROBOT products,
reduce the technical roadblocks involved in building robot systems.
Simple installation, simple settings, and simple operation significantly reduce man-hours in thedesign process and start-up time.

QSSR of ROBOMACHINE(QSSR=Quick and Simple
Start-up of Robotization)• ROBODRILL-QSSR
Support automation of machining systems• ROBOSHOT-QSSR
Support automation of injection molding systems• ROBOCUT-QSSR
Support automation of wire electrical-discharge systems

Awards on ROBOMACHINE Business
51st Industrial Machinery Design Award IDEA: The Japan Society of Industrial Machinery Manufacturers (JSIM)
Award (2021)
Display Unit PANEL iH Pro for ROBOSHOT α-SiB Series

64th Nikkan Kogyo Shimbun Ten Great New Products Awards Main Prize (2021)
ROBOCUT α-CiC

66th Okochi Memorial Foundation Okochi Memorial Production Prize (2019)
ROBOSHOT

5th (1994)/28th (2017) Japan Society of Polymer Processing Aoki Katashi Innovation Award

Development of AI Pressure Tracking Control for a Fully Electric Injection Molding Machine (1994)
Movement Detection Technology and Injection Volume Stabilization Technology for a Backﬂow Prevention Ring (2017)

FIELD system
The FIELD system (FANUC Intelligent Edge Link & Drive system) is an open platform for manufacturers that aims to further improve
productivity and efﬁciency within the industry. This system helps increase yield, quality, and productivity by visualizing factories,
thereby contributing to the improvement of our customers’ revenue.
The FIELD system offers an SDK (Software Development Kit), so that third-party developers can also freely develop and sell
application software and converters for devices. The design guide of the SDK provides a comfortable development environment withconstant surface speed (CSS) that integrates universal design.

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With Our Customers

Energy-efficient Products/Waste Reduction
Energy-efficient Products
FANUC will continue to make energy-efﬁcient products, which will contribute to conserve energy in our customers’ factories.

Development of largecapacity servo motors

We have developed a high-precision, high-efﬁciency, large-capacity servo motor fully utilizing ouradvanced digital control system ahead of other companies.
In the ﬁeld of industrial machines, including press machines, which require tremendous power, wehave realized energy saving by introducing this large-capacity servo motor in place of hydraulicpressure.

Adoption of power supply
regeneration system

In the servo ampliﬁer, we use a power supply regeneration system that returns energy to the power
supply when the motor decelerates. This effective use of the power supply leads to energy savings.
When mounted on a ROBODRILL, it reduces energy consumption by approximately 35% comparedwith the resistance-regeneration method. Furthermore, the adoption of new power devices has
continuously reduced energy loss of the servo amplifier. It is reduced by maximum 28% comparedto that in 1995.

Power consumption
monitoring function

Through the power-consumption-monitoring function, we have made it possible to monitor theamount of power consumed by our CNC systems, enabling the efﬁcient adjustment of the cycle
time. In addition, CO2 emissions can also be displayed.
By using the energy-saving level-selection function, we have made it possible to choose the type ofoperation: one that prioritizes cycle time and one that prioritizes power consumption.
When there are differences in cycle times in the production line, in case fast processing is notnecessary, choosing the power consumption priority operation contributes to energy savings for theentire factory.

Fast Cycle-time Technology

This series of functions reduces cycle time. Reducing operating time contributes to reductions ofenergy consumption by peripheral equipment, such as a coolant pump.

Averaging the load of power
Night operation using robots disperses peak power and curbs power consumption.
demandReducing CO2 emissions by
reducing weightThe design of the robot mechanical arms with lighter weight reduces power consumption. For the
robots with a payload of 165 kg, the Robot S-430iW in 1997 weighed 1,300 kg while the Robot
R-2000iC/165F in 2013 is lighter with weight of 1,190 kg.
In addition, the collaborative robot CRX has a robot mass of 40 kg with a payload of 10 kg, which isconsiderably lighter than the robot mass of 150 kg common to robots in the same class thus far, andreduces power consumption.
Even the LR-10iA/10 fully enclosed handling robots are more than 1/3 lighter than conventional
robots with the same 10 kg payload, and consume 30% to 40% less power.

Optimal operating program

By optimizing the operating program with ROBOGUIDE, power consumption is reduced and thelifetime of the reducer is extended to reduce running costs.

Efﬁcient robot utilization

Use of an autonomously moving, Automatic Guided Vehicle (AGV) with collaborative robots allows
a single robot to work in multiple locations, improving the efﬁciency of robots. This reduces standby
power, compared with installing multiple robots.
In addition, the latest model of the collaborative robot CRX has a very light robot mass of 40 kg, and
the AGV can also be made compact. Furthermore, the CRX can be moved on a handcart instead ofon an AGV, making it possible to move the robot to the place where and when it is needed.

Instruction operation panel
Reduces power consumption by automatically turning off the backlight of the LCD screen on thebacklight automatically turns
robot’s teaching operation panel when no operation is performed for a certain period of time.
offEnergy-saving design

We have developed a new type of heavy payload robot, M-1000iA, with a serial link mechanismthat is compact and has a wide motion range. Using the latest structural analysis, the M-1000iA
has the necessary strength and rigidity while making extensive use of curved surfaces, at the sametime, saving energy through the use of arms designed to be lightweight and power regeneration thatreuses the robot’s deceleration energy.

Highly reliable automatic
wire feeding (AWF3)ROBOCUT is capable of unmanned operation for long periods, thanks to the highly reliable automatic
wire feeding AWF3, which can automatically recover feeding even when a wire is accidentally cut
and disconnected. Stable night-time machine operation disperses peak power usage and curbs
power consumption.

Discharge control iPulse3

With ROBOCUTs, our newly developed discharge control iPulse3 reduces machining time byapproximately 10% compared to that of conventional control. Reduced machining time curbs power
consumption.
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Electriﬁcation of peripheral
equipment

Additional axis options for ROBOSHOT can electrify hydraulically controlled peripheral equipment.

Awards and Topics on Energy Saving
ROBOSHOTs and ROBODRILLs became eligible for a subsidy for business expenses
supporting promotion of advanced energy-saving investments, allocated in the
FY2022 supplementary budgets in recognition of their energy-saving potential. (2022)
ROBODRILL α-DiB Plus Series
ROBODRILL α-DiBADV Plus Series
ROBOSHOT α-SiA, α-SiB Series

Eligible for a subsidy in 2022 for ESG lease promotion business for the establishmentof a decarbonized society (2022)
ROBOSHOT α-SiA, α-SiB Series

ROBODRILLs and ROBOSHOTs became eligible for a subsidy for business expenses
supporting promotion of advanced energy-saving investments, allocated in the
FY2021 supplementary budgets in recognition of their energy-saving potential. (2021)
ROBODRILL α-DiB Plus Series
ROBODRILL α-DiBADV Plus Series
ROBOSHOT α-SiA, α-SiB Series

ROBODRILLs and ROBOSHOTs became eligible for a subsidy for business expenses
supporting businesses rationalizing energy use in production equipment, allocatedin the FY2019 supplementary budgets in recognition of their energy saving potential.
(2020)ROBODRILL α-DiB Series
ROBODRILL α-DiBADV Series
ROBOSHOT α-SiA Series

Approved for subsidies for the introduction of energy-saving equipment for local
factories and small- and medium-sized enterprises (2014)
ROBOCUT α-CiA Series

Prize of the Director General of Agency of the Natural Resources and Energy,
Excellent Energy Saving Device Award Program by the Japan Machinery Federation(2003)For our large-capacity servo system with a power regeneration feature and precision digital control and for our large-size AC Servo
Motor αi Series

The Minister Award of the Ministry of International Trade and Industry, Excellent
Energy Saving Device Award Program by the Japan Machinery Federation (1999)
Digital servo system using phase control regeneration and cycle time reduction, AC Servo Motor α Series

The Minister Award of the Ministry of International Trade and Industry, Excellent
Energy Saving Device Award Program by the Japan Machinery Federation (1998)
For our wire-cut electric discharge machines equipped with a high-speed automatic wire feeding mechanism and thick plate tracking
control
ROBOCUT α Series
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The Minister Awards of the Ministry of International Trade and Industry, Excellent
Energy Saving Device Award Program by the Japan Machinery Federation (1995)
ROBOSHOT Series

Waste Reduction and Effective Utilization of Resources in Our Customers’ Factories
FANUC ’s products also contribute to waste reduction and the effective utilization of resources.
Resources and Waste

Sustainability Report 202231With Our Customers

Quality and Safety
Framework to Promote Product Quality and Safety
FANUC promotes activities to improve quality in all processes, from development and design of products to product quality buildups
and after-sales services following manufacturing and shipment, in an effort to enhance the quality, safety, and reliability of its products.
The Research & Development Promotion / Support Division functions across multiple research & development divisions to ensure
the quality and reliability of products and to ensure the prevention and prompt resolution of issues about quality. At the same time, asection devoted to reliability development has been established in each research & development division in each business division
engaged in product development and design. In addition, research & development divisions regularly share information on bothdevelopment and technology in various technology meetings and use such information during development.
Through after-sales services following manufacturing and shipping, we have built a system to feed back reliability issues discovered in
the field to production divisions and research & development divisions and to continue improvement through the PDCA cycle.

FANUC strives to ensure the safety and quality of its products through a quality management system based on ISO 9001. We carryout checks through design review and veriﬁcation in order to meet the requirements of laws, regulations and standards as well as therequirements of individual customers. In addition, we conduct risk assessments of our products.
FANUC conducts the following ongoing activities with the aim of improving and enhancing product quality.
●Technology meetings (held for executives of research & development divisions)●Reliability development technology brieﬁngs (held for researchers)●Reliability meetings (held in each research & development division)●Quality meetings (held to improve manufacturing quality in production divisions and research & development divisions)“Visualization” of Quality and Reliability
The status of quality and reliability in all processes, from product design to manufacturing and after-sales services, is monitored inorder to promptly respond to defects. We collect data from our after-sales services, analyze it, identify issues, and give feedback to
our production divisions and research & development divisions. These activities improve our products’ quality and reliability.

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Reliability Development Technology
We promote the development of a framework to design and manufacture highly reliable products, as well as sharing of knowledge, inorder to enhance the reliability development ability of our researchers.
The Research & Development Promotion / Support Division works with members of the reliability development departments in eachresearch & development division to regularly review methods to improve reliability-related issues and proceed with standardizing
reliability development methodologies.
In addition, the Defect Management Procedures have been established to systematize rules regarding response procedures when
defects arise.
All defects that arise are registered in a database called the Defect Record, which centrally manages the entire range of processes,
from the investigation of the cause to the measures taken. This allows us to “visualize” the progress of the response, and prevent
any oversights. The knowledge and lessons of the Defect Record are utilized companywide, and have proven to be effective in termsof quality buildup and quality improvement measures, prevention of the occurrence and recurrence of defects, and the educationof young engineers. Furthermore, the Reliability Evaluation Building has an area featuring lessons learned from past defects, where
actually used products with quality and performance are displayed. This area is used to educate researchers by encouraging them tolearn from past failures.

Reliability Evaluation Technology
As FANUC products are used in manufacturing sites, they are exposed to extremely harsh environments. In order to ensure thatour products can operate stably for long periods of time under these conditions, while contributing to minimizing downtime in ourcustomers’ factories, we are promoting the standardization of evaluation tests by conducting them in a variety of surroundings.
The Reliability Evaluation Building, which opened in 2016, has a total ﬂoor area of approximately 22,679 square meters (103 meters
wide × 198 meters deep), and houses a variety of equipment for thorough reliability veriﬁcation.
This facility is equipped with dedicated test rooms, such as an anechoic chamber, an EMS (electromagnetic susceptibility) test room,a vibration test room, a mist test room, a variable temperature room, a variable humidity room, a capability limit test room, a noise
measurement room, a submergence test room, a clean room, and a precision measurement room. In this facility, a variety of tests are
performed while taking into account variations in data under various conditions, including the accelerated life test to evaluate longterm reliability.

Reliability Evaluation Building

Anechoic chamber

Mist test room
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Ensuring Customer Safety
FANUC contributes to the improvement of safety and the minimization of downtime at its customersʼ factories. To this end, it isessential to enhance product safety in order to protect operators from danger. FANUC engages in research and development toensure a higher level of safety, and its FA, ROBOT, and ROBOMACHINE products comply with the relevant safety standards.

Complying with safety
standards

We fully meet safety standards, such as ISO and IEC, and have been certiﬁed by certiﬁcation bodies.
The ROBOSHOT α-SiB series meets the newly established safety requirements for injection molding
machines (ISO 20430, JIS B 6711). This will ensure the safety of operators and molding worksites inaccordance with the new safety standards.

Dual Check Safety (DCS)

DCS complies with safety standards (IEC61508 SIL 2, IEC62061 SIL 2, and ISO 13849-1 PL d) andhas been certiﬁed by certiﬁcation bodies. Safety-related signals are duplicated for comparative
monitoring. In the event of a failure of one hardware safety circuit, the other detects the failure, thus
maintaining the safety of the system.

Custom ProgrammableMachine Controller (PMC)
safety function

In our ROBODRILL, the customer or system integrator can apply the abovementioned DCS to thecontrol of peripheral equipment that is additionally installed on the ROBODRILL. This will make theseparate safety circuits and control equipment unnecessary.

Malfunction preventionfunction

The design gives consideration to safety, such as by halting and issuing an alarm in the case of
accidental operations by the operator. In the future, we will work on a feature that stops functions
pertaining to hazardous and accidental operations, as well as one that prevents such choices.

Fully covered structure forhigh temperature parts

FANUC’s unique structure features a fully covered machine, including the high temperature area
where the ROBOSHOT heater is mounted, in order to avoid the risk of operator contact with hightemperature parts during molding operations.

Collaborative robots

Collaborative robots do not require a safety fence, because they securely stop operating whencoming into contact with humans. These robots are used to assist in tasks alongside human
workers, enabling operators to avoid heavy lifting, so that persons with less physical strength canperform tasks safely.

Smooth stop function

This function stops robots on a procedure that has been conﬁrmed to be safe in the shortest
possible time, in case of any abnormality.

Brake error diagnosis
function

If a failure occurs on a brake while the robot is in operation or at rest, the power of the brake may
decrease, causing the robot’s gravity axis to fall. This function provides early diagnoses of suchbrake malfunction, and notiﬁes the user in advance.

Product Design
In line with our “Simple & Smart” design policy and the human-centered design (HCD) concept, we create products that fulfill ourusers’ requirements and greatly satisfy them, without being deficient or excessive. While complying with ISO, JIS, and local laws andregulations, we aim for designs that seriously take into consideration user-friendliness and safety. We are in the process of formulating
related guidelines. Our new collaborative robot CRX, released in December 2019, gives the rough, rugged image of industrial robots a
fresh new look. The clean, rounded lines of this novel design offer a soft external appearance that allows the operator to share spacewith the CRX comfortably.

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With Our Customers

Solutions for Decreases in the Workforce and Skilled Engineers
The number of workers in the manufacturing industry, as well as the number of skilled engineers is expected to decrease in the future.
FANUC promotes labor saving through the automation and robotization of factories, in order to solve the problem.
In addition, if engineers cannot operate the machines properly, not only will productivity decline, but also the facility operating rates
will decrease due to such failures, and the engineers themselves may be injured. We strive to solve this issues by developing userfriendly products.

Partial automation of work
processes by collaborative
robotsCollaborative robots do not require a safety fence, because they securely stop operating whencoming into contact with humans. This enables the partial automation of work processes at manuallabor production sites.
Collaborative robots provide additional options for solving labor shortage.

QSSR (Quick and Simple
Start-up of Robotization)

In order to reduce the technical roadblocks involved in building robot systems, we have packaged
the basic elements required to connect CNCs and robots. FANUC facilitates the introduction ofsystems that easily connect machine tools and industrial machinery to robots and easily check
operation status, as well as with robot control by CNC programming (G code command) and manual
handles, including a function that automatically views and recognizes the relative positions of themachine and the robot, without requiring correction of the robot’s position teaching.

Visual guidance screen

With ROBOCUT, functions such as a simple adjustment for adjusting machining parameters, whichenables easy ﬁne-tuning, are displayed on the guidance screen, to provide visual guidance on how
to use the machines. We give attention to make them user-friendly even for unskilled operators.

Easy-to-use user interface(UI)

By making the UI of the teaching pendant used in the teaching of robots easier to use and adopting
a tablet style for the pendant, we have made it easy even for unskilled workers to conduct operationand programming.
The new collaborative robot CRX has made the creation of teaching programs easier, enabling
operators to use their hands to move the robot arms directly and control the robot easily evenon first-time use. With the tablets now widely used, operators can create teaching programs bydragging and dropping icons, just as they would with a smartphone.

Easy connection of laser
oscillators

Highly- synchronous connection with machine tools and robots through simple settings supports thesmooth building of machining systems.

SERVO GUIDE, AI Servo
TuningWe provide machinery manufacturers with support tools for the easy realization of high-level tuningof parameters to control the servo motor. The inclusion of an AI-based tuning support function
enables even unskilled operators to carry out servo tuning.

CRX arc welding function

It is easy to handle the robot and replicate the welding techniques of experienced welders evenfor first-time users, thanks to Direct Teach, which lets you move the arm directly by hand, andthe intuitive arc welding operation, through icons on a tablet. In addition, because the CRX is acooperative robot, it can be easily introduced without safety fences.

Dual-screen simultaneous
display

ROBOSHOT uses a 21.5-inch display, one of the largest in the injection molding machine industry,and our unique dual-screen simultaneous display for improved screen operability. The help display
corresponding to each setting item allows even first-time ROBOSHOT operators to set up the screen
without a manual.

Multilingual support

ROBOMACHINE promotes multilingual operation screens so that all customers around the world can
comfortably operate the machine in their local language.

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With Our Customers

Service

Lifetime Maintenance
FANUC provides lifetime maintenance for its products as long as they are used by customers, even for models that are no longer inproduction. Lifetime maintenance makes it unnecessary for our customers to renew their equipment due to discontinued maintenanceservice, thereby allowing them to use FANUC products at a low cost for several decades.
At our Repair Factory, we perform approximately 90,000 repairs per year in Japan, including products that were manufactured morethan 40 years ago. We have a stock of over 3 million pieces of 17,000 types of repair parts, including old parts that are no longer inproduction, ready to repair used motors, PCBs, or units.
Even in cases where some parts run out of stock, the Repair Factory has a system for ﬁnding replacement substitutes or redesigningthem. In addition, old manuals are also digitized as part of our efforts for lifetime maintenance.
Units which have broken down are cleaned in an automatic washing machine using robots or other means, and after drying themovernight with a drying furnace, they are repaired. Not only damaged parts, but also parts that are starting to deteriorate are replaced,
to attain a quality in repair that is equal to a brand new unit.
We collect parts that have deteriorated but can still be regenerated and overhaul them for re-use, thus contributing to the reduction ofwaste as well.
The Repair Factory has performed over 1.9 million repairs thus far, and its know-how is utilized in domestic and overseas repairs, aswell as being fed back to laboratories.

Example of repair for PCB, spindle motor and servo ampliﬁer unit over 40 years ago.

Before repair

After repair

Providing Global Services
Based on the spirit of “Service First,” FANUC provides lifetime maintenance for its products for as long as they are used by customers,
through more than 260 service locations supporting more than 100 countries throughout the world.
Service

Basic Approach
Based on our spirit of “Service First,” FANUC strives to improve customer satisfaction by providing prompt and careful services andlifetime maintenance.

PolicyConforming to the spirit of “Service First,” FANUC provides lifetime maintenance to its products for as long as they are used bycustomers, through more than 270 service locations supporting more than 100 countries throughout the world.

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With Our Customers

Promotion Framework
In order to promote our basic policy, once a year, we hold the Global Service Conference, organized by the President and CEO, which
is attended by top management of Group companies and service personnel from locations around the world, as well as key members
from FANUC Headquarters.
From 2020, due to the Covid-19 pandemic, we use online discussion boards to hold conferences, and just as in real conferences,
participants share case studies and knowledge about topics like parts and technical information, maintenance tools, service training,and service DX through various working group activities to improve and strengthen our services.
The 2022 Global Service Conference, although held online, was attended by a total of about 540 participants with more than 1,200
comments and lively discussions.

Goals
We aim to improve customer satisfaction by providing better services. To this end, we make efforts to shorten the average waitingtime for services, and increase the percentage of maintenance parts that can be delivered immediately on demand.

Initiatives
To Realize Flexible Services
More than 2,300 service personnel and support staff (all are FANUC Group employees) around the world handle phone calls, provide
services at customer sites, and manage maintenance parts. Units replaced at the request of our customers are repaired at Repair
Factories in 14 locations around the world to be reused. Using these units in subsequent maintenance services leads to waste
reduction and the effective utilization of resources.
In our domestic services, we are striving to enhance mobility, primarily by having all ﬁeld service personnel carry a mobile device, sothat representatives can visit customer sites as quickly as possible, based on the current locations of all personnel.
To further reduce wait times, we do not divide the introductory training into groups by machine type for new hires after 2021. Instead,all new hires receive the same training.
Younger employees who joined the company before that time also receive cross-training, not just on the machines with which they
are proficient. We focus on training multi-skilled service personnel who can handle all types of machines, including FA (CNC), LASER,
ROBOT, and ROBOMACHINE.
The realization of ﬂexible services requires all types of maintenance parts that amount to an enormous quantity.
FANUC has a global parts warehouse in Japan to store maintenance parts for which there is extremely low demand. We also strive to
visualize inventory around the world.
By globally managing our inventory of maintenance parts, regardless of how old or rarely used they may be, they are stored at somelocations around the world. Inventory data is updated to provide parts as quickly as possible. In addition, we prepare an overall
demand forecast for maintenance parts, in order to utilize the data to streamline the supply of parts.
Furthermore, we established additional core locations in Japan as part of our business continuity plan (BCP), to secure the continuityof our services. We have also ensured that we can continue providing lifetime maintenance by establishing call centers and parts
warehouses in the two locations of Hino, Tokyo and Komaki, Aichi, as well as by mirroring the servers that contain accumulated
information, including past service data.

Nagoya Service Center

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Enhancing Our Service System
In our after‒sales service, in addition to carrying out repairs in a short time, we are strengthening our efforts to implement preventive
maintenance by detecting signs of trouble before breakdowns. We are actively marketing ZDT (Zero Downtime), which enables themonitoring of information and preventative maintenance by centrally managing information on mechanical parts, processes, systemstatus, and maintenance timing by connecting the AI Servo Monitor, which connects CNCs via a network and collecting servo motor
data to predict failures.
In addition, we are encouraging preventive maintenance in order to improve operating rates in our customers’ factories. In our callcenters, we accept inquiries regarding repairs in case of failures and parts sales.
We have established and deployed a toll-free line in Japan. Call centers use a dedicated reception software which are updated asneeded, reflecting requests from service personnel and operators.
Similar software is used in our overseas ofﬁces tailored to the circumstances and characteristics of each country.
Key data from individual maintenance reports is shared among countries, and utilized primarily to improve reliability, and develop jigs
and tools.
To accommodate the new normal era created by COVID-19, we are pursuing new types of services, such as remote diagnosis andonline support, as a project for service DX.
Our first step was to launch FabriQR Contact, a contact service using QR codes, in Japan in October 2020.
Services in Japan
We accept calls until 5:10 p.m. on Saturdays for customers who operate their factories on weekends.
After long public holidays and other times when there is a heavy concentration of calls, all staff in each location, including veteran fieldengineers, handle calls, and calls are automatically forwarded from the call center to available lines at locations to prevent a fall in
response rate.
We also provide the CS24 service (for a fee) to customers who request availability at night and on Sundays and holidays.
Some overseas ofﬁces have individual contracts with customers to provide maintenance services 24/7.
In addition, we provide a maintenance contracts after expiration of the warranty period. Customers who have signed the contract toprepare for any product failures after the warranty period expires, are entitled to repair services which are free of charge within thecontract term for an unlimited number of times (certain parts and supplies are excluded).

Membership Website
A membership website established in April 2015 provides downloads of electronic data for outline drawings to members free ofcharge. There are two types of membership, i.e., general membership open to the general public amounting to around 32,000
members, and customer membership limited to actual users of FANUC products currently consisting of around 12,500 members (asof June 30, 2022).
Customer membership website is a very convenient site where a customer can download materials including electric manuals andpurchase maintenance parts.
In December 2019, we added a chatbot function, launching a registration service for customer product information and a Q&A service
regarding the membership website. Compared to the past when service personnel entered such registration information sent backfrom customers on postcards, such information can now be self-registered by customers, enhancing convenience for both parties. We
are launching a new maintenance information service based on the registered information.
We have also begun responding to customer members’ technical inquiries with the use of a chatbot function. We are engaged ininitiatives to enhance convenience for customer members by regularly adding and updating Q&A content.
Membership Website (in Japanese)*Japanese site services are available only in Japan.

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Customer Satisfaction Surveys
FANUC America, FANUC Europe, and other overseas group companies conduct regular customer satisfaction surveys. In Japan, we
conduct anonymous questionnaire surveys of customers that we attend on site, in order to reﬂect customer feedback in improvements
to our services.

Support for Restoration from Natural Disaster

Many natural disasters occur in Japan every year, and we dispatch service personnel to respond according to the needs of ourcustomers.
In 2021, there was an earthquake off the earthquake off the coast of Fukushima Prefecture in February, flooding in Numazu
City, Shizuoka Prefecture in July, and a heavy rain disaster in western Japan in September, etc. Our service personnel visited 44
companies and 320 units for restoration work.
Overseas, we cleaned and repaired as needed in response to flooding in Durban, South Africa. The Global Service Division took
the lead in arranging parts and handling repairs at repair shops in neighboring countries, enabling the customers’ factories to berestored as soon as possible.
FANUC responds to disasters under our philosophies of “one FANUC,” “Reliable, Predictable, Easy to Repair,” and “Service First.”

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With Our Customers

Support for Customers
Technical Support for Our Customers
Each business division provides support to our customers per product, to enhance customer satisfaction.
In the FA Business Division, the Sales Engineering Department plays a central role in providing technical support and adjustments
for installing CNCs at the design/production sites of machine tool builders, who are our customers, as well as support for building
machining systems for laser oscillators and determining machining settings. Engineers are dispatched from research & development
divisions as necessary to share the latest technical information and hold technical meetings to deal with new models designed by ourcustomers.
The ROBOT Business Division and the ROBOMACHINE Business Division also provide technical support for automating productionlines of our customers.
In addition, the ROBOMACHINE Business Division has established an environment to conduct remotely machining and molding tests
without the need for customers to visit the company, as a way of providing technical support during the COVID-19 pandemic.

Efforts to Facilitate the Introduction of New Models
FANUC facilitates the introduction of new machine tool models at manufacturing sites. For machining programs using G code, which
are primarily utilized in FANUC CNCs, the program of old models can be used as-is, without making changes. As such, machine tools
equipped with FANUC CNCs can reuse the programs and settings of old models, thereby facilitating the introduction of new machine
tools for our users.
Even during the introduction of new ROBOT and ROBOSHOT models, the programs for old robot models can be converted andreused. In ROBOSHOTs, various settings data and parameter ﬁles for molding conditions can be transferred to other models.
Combined with our efforts for lifetime maintenance, we realize the long-term use of our products, and promote improvements incustomer satisfaction and the effective utilization of resources.
Our collaborative robots do not require a safety fence and can be easily installed later without the need to re-design the existingproduction line layout.
The robot mechanical arms and controller of the new collaborative robot CRX are lightweight, enabling them to be carried by hand,eliminating the need for a crane for transportation and installation. In addition, while industrial machinery often uses a three-phasepower supply, which is for commercial use, CRX is compatible with AC100V/200V single-phase power supply, so it can be plugged
into a normal power socket.

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With Our Customers

FANUC ACADEMY
Overview
FANUC has been focusing its energy on training our customers, as well as domestic and overseas service personnel since its
foundation, in order to promote automation and robotization in our customersʼ factories around the world.
In 1982, FANUC established the FANUC Technical Training Center and over 100,000 participants have graduated to date.
In March 2018, FANUC established FANUC ACADEMY, an educational facility that expanded the size and content of the Center.
FANUC ACADEMY offers training programs for all products, from CNCs, Servos, and Lasers, Robots, Robomachines, and the FIELD
system, with training lasting from two days to three weeks, depending on the needs of the participants.
In 2020, the number of trainees decreased due to the spread of COVID-19 and the measures we took to prevent infection, but we
responded to the demand for education by enhancing eACADEMY, a new online education system with live and on-demand seminars
through FY2021.
During the one-year period from April 2021 to the end of March 2022, as a result of thorough countermeasures to prevent the spreadof COVID-19 such as limiting the number of participants in face-to-face seminars and holding only those seminars considered highly
necessary, the number of face-to-face Academy seminar participants continued to decline, but we had 2,462 participants from Japan.
Live seminars and on-demand seminars continued to accept participants.
In addition, FANUC ACADEMY is also working with Training Departments established in the United States, Europe, and China to builda system for conducting training based on FANUC’s global standard to customers around the globe.
We are engaged in efforts to provide a high level of customer service while also educating our trainers and service engineers aroundthe world on the latest products through live seminars.

FANUC ACADEMY offers robotics education to students from local technical high schools.
The students presented this initiative to visitors at the opening seminar of the International Robot Exhibition 2019, which was very wellreceived.
Click here to see the initiatives taken at FANUC ACADEMY in response to COVID-19.

Systems to Enhance Educational EffectivenessWorkshop classrooms

Actual products are installed in our classrooms, so that trainees can practice directly on CNCs ormachines by their side, while listening to lectures.

eACADEMYeACADEMY offers two styles of training: live online seminars that even persons living far away can
attend, and on-demand seminars providing training material that can be studied multiple times,
regardless of time or location. Tablets are available for eACADEMY students so that they canparticipate in on-demand seminars during the course period. It is possible to study in the classroom
during breaks and in accommodation rooms in the evenings.

Abundance of machines forpractice

For training on CNCs, ROBOTs, and ROBODRILLs, one unit is provided to each trainee.

Guest House

There are 110 spacious guest rooms. There is also a cafeteria and onsen facilities (hot spring baths)

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FANUC ACADEMY’s Satisfaction Rating and Number of Trainees
We have revised our systems to thoroughly enhance educational effectiveness, and have received a rating of 4.5 or higher out of 5 on
the trainee satisfaction survey, since 2019.The average satisfaction rating for the FY2021 was 4.60.

FANUC ACADEMY’s Satisfaction Rating and Number of Trainees* The number of trainees decreased from February to March 2018, due to the transition from FANUC Training Center to FANUC
ACADEMY. During this period, the Nagoya school continued to offer training.
* Due to COVID-19, the number of trainees decreased 2020.

Respect for Trainee Diversity
When we built FANUC ACADEMY in 2018, we set up a Muslim prayer room for trainees. This was done to ensure the facility takes into
consideration the religions and customs of employees and trainees from around the world.
Food served at the facility includes vegetarian items and gluten-free items.

Door sign

Place for wudu

Prayer room
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With Our Employees
Basic Approach
FANUC considers its employees to be human resources who are indispensable for the Company’s business activities. We will support
the health and growth of our each of employees and provide an environment that allows each employee to attain self-realization with asense of purpose.

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With Our Employees

Promotion of Employees’ Diversity & Equal Oppotunity
Basic Approach
FANUC respects and supports the diversity and equal oppotunity of our employees, and creates an environment that accepts
diversity, based on the philosophy that diversity gives rise to new values.

Initiatives(1) Gender-Related Initiatives<Promoting the Active Participation of Women>
In addition to striving to ensure that employees can play an active part in the workplace regardless of factors such as nationality andgender, etc. FANUC has enhanced various systems including maternity leave, child-care leave, and short time working until children
ﬁnish elementary school, so that women can pursue their careers without interruption. In this manner, FANUC fully supports the active
participation of women.
In April 2021, we renewed our General Employer Action Plan Based on the Act on Promotion of Women’s Participation andAdvancement in the Workplace. We are actively promoting the recruitment of women, with the aim of increasing the percentage offemale employees. Under this plan, FANUC has established a target of 10% of regular female employees for the Company as a whole.
To achieve these goals, we are promoting efforts such as having female researchers visit schools and handle company visits byfemale students when recruiting for technical positions, and promoting efforts to create opportunities for women to discuss work andactual lifestyles. We are also implementing initiatives such as external seminars to support career development for female employees.
Recently, women have increasingly been playing active roles as executives in various ﬁelds, with two female employees promoted asofﬁcers.
<Support for Balancing Work and Home Life>
At FANUC, 100% of the female employees who have used the child-care leave system during the past three years have returned towork, which conﬁrms that the Company’s working environment is comfortable for women. Furthermore, we opened a nursery for
employees’ children in the Headquarters’ site in April, 2019, using the company-initiated nursery business system, supervised by the
Cabinet Ofﬁce. To reduce total actual working hours, we have set the annual paid leave-taking rate to at least 80%, and supporting forbalancing work and home life.
As an initiative to encourage male employees to take child-care leave, we have posted on the companywide portal site Q&A andguidance documents regarding leave systems for child care and nursing care as well as support offered by the government. A help
desk has also been set up in the Human Resources Department to support the balance between work and child care and nursing
care. This approach has spread knowledge and understanding of our initiatives within the Company, and more male employees aretaking child-care leave.

(2) Disability-Related Initiatives
When determining assignments, FANUC takes into account the characteristics of each individual’s disabilities as well as his/her
aptitudes, while also considering safety aspects so that persons with disabilities can play an active role in the Company.
We have also established a support system to promote the employment of persons with disabilities, by cooperating with the Japanese
government’s Hello Work employment centers and the Yamanashi Prefecture Vocational Center for Persons with Disabilities, and byappointing vocational life counselors for persons with disabilities.

(3) Initiatives for Nationality, Race, and Religion
FANUC thoroughly implements the “prohibition of discrimination based on race, creed, gender, social status, religion, nationality, age,mental or physical disability, etc.” in its recruitment practices as well. While we hire students from overseas, we do not treat themdifferently or discriminate against them in any way because of nationality.
FANUC also strives to provide a working environment that is comfortable for employees from overseas. We have facilities that take
into consideration the religions and customs of employees from around the world. We offer vegetarian food, gluten-free food, etc. toemployees for whom religious dietary considerations are required. FANUC ACADEMY also has a Muslim prayer room for employees
and trainees from overseas Islamic companies.

Entrance display

Place for Wudu

Prayer room
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(4) Age-Related Initiatives
In October 2006, FANUC extended its mandatory retirement age from 60 to 65 years.
Employees who have reached the retirement age of 65 years may continue to work at the Company if both the Company and theemployee so wish.

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With Our Employees

Health and Safety of Employees
Health and Safety Principle
FANUC considers the health and safety of its employee’s first issue.
1.Safety is created through the collective creativity and ingenuity of each individual in each workplace, with the participation of all
employees.
2.We create a clean, bright and comfortable workplace.
3.We promote the mental and physical health of our employees.

Policies
Safety Management Policy
FANUC accurately communicates information to workers on the production site through the team leader. Further, provide work
guidance based on work observation results and implement activities to reduce accidents.

Health Management Policy
FANUC places an emphasis on preventing heat strokes during the summer in view of recent exceptional weather conditions, whileworking to maintain and manage the physical and mental health of our employees.

Promotion Framework
FANUC has established the FANUC Health and Safety Committee as an organization that mainly discusses and determines companywide safety and health management policies, related measures and signiﬁcant issues.
The Committee holds two meetings per year, with the President and CEO designated as the responsible person, and ofﬁcers of eachbusiness division and the union leader as its members. The Safety and Health Department of the Human Resources Division serves as
the secretariat engaged in coordinating activities.
In addition, we have established District Safety and Health Committees based on the law in four factory districts and ﬁve sales ofﬁce
districts for health and safety activities. Each District Safety and Health Committee holds meetings of the Workplace Safety and HealthCommittee, which is a sub-organization per department, to notify instructions and other matters from the District Safety and HealthCommittees to each workplace.

Initiatives
Scope of Health and Safety
FANUC has implemented Health and Safety Regulations to ensure the health and safety of FANUC Group employees, contract
employees and part-time employees, in order to make work smoother and improve productivity.
When employees of contractors and subcontractors perform tasks at FANUC, we do its best to prevent accidents, injuries and healthproblems from occurring, in conformance with FANUC’s Contractor Safety Management Regulations.

Priority Activities for Health and Safety
FANUC has speciﬁed ﬁve priority activities, and is pursuing our efforts through the establishment of a promotion department, thatmainly works together with the Safety Section and each workplace.
We aim to reduce occupational accidents by setting single-year goals regarding safety management.

Preventing occupational
accidents

We will prevent equipment-related accidents by introducing pre-commissioning risk assessment of
production equipment when equipment is installed.
We will establish a system to provide internal notiﬁcations of the cause of each accident andcountermeasures taken, with the aim to prevent accidents.

Improving the work
environment

We will improve the work environment based on the results of working environment assessment.

Health maintenance andpromotion

Efforts are being made to eradicate occupational diseases by conducting special healthexaminations, along with follow-ups of the health examinations results.

Preventing ﬁre accidents

Efforts are made to prevent accidents by improving the management of equipment that use ﬁrewithin the workplace.

Preventing cargo handlingand transport accidents

Efforts will be made to create a system for preventing forklift accidents.
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As an initiative for preventing forklift accidents, a designated operator system will be introduced as
Designated operator system an in-house qualification. Under this scheme, only forklift driving license holders who are recognizedby the workplace as having skills above a certain standard will be permitted to drive forklifts.

Risk Management of Production Equipment before go-live
As an assessment before go-live of new production equipment, FANUC identifies and assesses risks and conducts risk management
related to health and safety. The Production Engineering Department, Manufacturing Department, and Health and Safety Department
conduct risk assessments from their respective viewpoints and make determinations of “operable,” “provisionally operable,” or“operation suspended.” For determinations other than “operable,” countermeasures are taken within 30 days, and the equipment inquestion can be put into operation after it is determined to be safe.

Health and Safety Education
FANUC conducts position-based and job-based education programs on occupational health and safety. It also conducts safety
education for all employees at the start of employment and at times of operational changes.

Division and Department
Heads

Training at the time of appointment of safety officer

Section Heads

Supervisor education

Newly appointed teamleaders

Supervisor education delivered by specialist institutions
Health and safety education by Health and Safety Department

Company fleet drivers

Risk prediction training through discussions among small groups of drivers belonging to the same
sectionService personnel

Risk prediction training for representatives of each location by specialist institutions

Number of Participants of Health and Safety Education
In FY2021, FANUC conducted the following education programs.
Type of Education

Times Held

Number of Participants

Supervisor education by specialist
institutions

4

53

Health and safety education by Health and
Safety Department

5

23

Risk prediction training through discussions
A total of 1,068 times by the end ofamong small groups of drivers in the same
December 2021
sectionA total of approximate 5,000 employees
took part in this education program by theend of December 2021

Danger prediction training for service
personnel-

92

Danger prediction training for team leaders

484

Training at the time of appointment assafety officer*Cancelled in 2021 due to the COVID-19
pandemic.

00

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Health and Safety Patrols
With the aim of reducing occupational accidents, FANUC conducts monthly patrols at each factory. In addition to patrols by the safety
officer, health officer, and industrial physician, we have established a system, in which individual sections patrol the condition mutually.

Based on the results of working environment assessments and special health checkups, we have identified workplaces with noise
issues and workplaces that use organic solvents and confirmed the status of operational improvements.

Knowledge and Measures Learned from Occupational Accidents
We investigated the causes of lost-time accidents, eliminated dangerous actions and tasks, and implemented safety measures forboth machinery and management. We also strive to prevent occupational accidents by sharing near-miss cases.

Safe Maintenance Work by Service Personnel
As service personnel perform their work alone at the customer’s factory, it is important that they are more sensitive toward safety andpredict potential risks. Risk prediction training by specialist institutions is provided to the representatives of service locations, whothen roll it out in their respective service locations, to improve risk prediction capability.
We also develop maintenance tools for service personnel to achieve safe and efficient maintenance work.

Issue and Distribution of Pocket Safety Card
We have issued a pocket-sized card that features FANUC’s Three Safety Principles, Six Safety Action Principles, Six Prohibitions, andthe FANUC KY Principles, so our employees can check them anytime, anywhere.
In 2020, we revised the Five Safety Action Principles and Five Prohibitions that had previously only been applicable to manufacturing
sites, making them Six Principles and Six Prohibitions that cover the entire Company. In this way, we are striving for company-wide
occupational health and safety.

Goals/Achievements
Goals
FANUC has established the Health and Safety Committee, with the President and CEO designated as the responsible officer. This
Committee sets and monitors annual goals for lost time injury (LTI) frequency rates and intensity rates every year.

Achievements
There were no work-related fatalities of employees, contract employees, and temporary staff at FANUC CORPORATION. We have now
achieved zero fatalities for more than 3 years.

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With Our Employees

Creating Better Working Environments
Initiatives
Practicing Work and Life Balance
FANUC considers reduction of long working hours to be an issue, and is striving to lower the maximum limit for overtime work andpromote the taking of annual vacations as corrective measures. We check the achievement status of these goals and working hours
in monthly meetings attended by executives. Annual vacations were taken at a rate of 86% in FY2021, achieving the target of 80%. In
addition, to facilitate flexible work styles that achieve a better balance with everyday life, in October 2020, we made it possible to takeannual vacation by hour unit.
In addition to annual leave, we have also established systems to make it easier for employees to take various types of leave. We have
expanded the system for infertility leave, by adding family care and infertility treatment to the purposes used for accumulated vacation(paid).
To better promote the balance of work and child-care, we have extended the application of the short time working system for childcare, as well as the exemption from overtime and work on holidays for child-rearing employees upon request, until children haveﬁnished elementary school.
In recent years, in response to feedback from employees that they would want to continue working while receiving treatment even if
they are diagnosed with cancer or other illnesses, we have established a helpdesk to support such employees so that they can work
while receiving treatment, by actively promoting short time working, working from home, and other means.
*Official working hours of FANUC CORPORATION is 7 hours 45 minutes a day, 124 vacation days in FY2021, and the annual total
official working hours is 1,867 hours.
Main Systems● Support for Balancing Work and Home Life
● Child-care leave (Return-to-work ratio: 100%; Retention ratio one year after returning to work: 100%)● Nursing-care leave (e.g., to take care of elderly parents)● Infertility leave● Subsidies for speciﬁc infertility treatment costs● Short time working for child care
● Refreshment leave (can be taken after 10 years, 15 years, 20 years, 25 years, 30 years, 35 years, and 40 years of employment)● Leave due to transfer of a spouse● Working from home

Promotion of Mental-health Care and Line CareIn addition to treatment by psychiatrists and mental health care mainly by counsellors, as part of our health support initiatives for
employees, FANUC offers Employee Asistance Program (EAP) delivered by external specialist institutions to current employees andtheir family members, as well as former employees who were at least 60 years of age when they resigned.
Eligible persons can receive guidance and advice from specialists, including consultation on health-related concerns, mental healthcounselling, and second opinions.
By providing line-care training for executive employees on a regular basis, we are working to create comfortable workplaceenvironments and to achieve early detection and treatment for employees with mental health issues.
We also conduct stress checks every year, follow up with individuals with high stress levels, and analyze the ratio of health risks andindividuals with high stress levels by organization. In these ways, we are making efforts to help those organizations with problems
improve their workplace environment.

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FANUC Nursery School (Corporate-led Nursery Business)
With the growing number of employees of the child-rearing generation in their 20s and 30s, to contribute to the enhancement of thechild-rearing environment in Oshino-Mura, Yamanashi Prefecture where FANUC Headquarters is located, we established a corporateled nursery business in the spring of 2019.
Located next door to the workplace, FANUC Nursery School reduces the time required to drop children off at the nursery schooland pick them up and enables the safe and certain handover of children in the event of an emergency such as a natural disaster.
Responding to users’ needs, the facility has been operating at close to full capacity since its first year of operation.
In addition, the facility accepts new enrollments throughout year, facilitating a smooth return to work for employees on child-careleave.
The school is actively engaged in initiatives to improve the quality of child care, such as offering various training programs to its
nursery teachers, receiving evaluations from external institutions, and providing dietary education by cooking lunches with local
ingredients.
FANUC Nursery School will continue to provide an environment in which its users will be able to balance child-rearing and careerdevelopment with peace of mind into the future.
Name: FANUC Nursery School
Address: 3515-1, Shibokusa, Oshino-Mura, Minamitsuru-Gun,
Yamanashi, Japan
Facility area: Floor area: 259.2 m²; Playground area: Approx. 470 m²
Capacity: 19 (Max. 31)
Eligible ages: From at least 57 days after birth to before starting
elementary school
Eligibility: Priority is given to employees of FANUC and its
subsidiaries, but children of local residents are also accepted.
Opening hours: 8:00 a.m. – 7:00 p.m.

Promotion of Barrier-free Buildings
We have started to install wheelchair-accessible restrooms whenever new business premises are built and existing ones are
refurbished.
Facilities with wheelchair-accessible restrooms

Headquarters area

11 facilities

Tsukuba Factory

3 facilities

Mibu Factory

5 facilities

Local ofﬁces, local branches, service centers

9 facilities

Asset-building Support● Corporate pension plan
With the corporate pension plans, we guarantee future benefits to employees so that they can work with peace of mind.
● Retirement allowance plan
FANUC has set up retirement allowance plans to reward employees for their long-term contributions to the company, so that they
can live with peace of mind after retirement.
● Employee shareholding association plan
FANUC has an employee shareholding association to support employees with long-term asset building by acquiring shares in thecompany.

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With Our Employees

Creating a Fulfilling Workplace
Basic Approach
A work environment in which each employee can develop a career vision based on the values they cherish and continue to grow to
fulfill that vision is necessary to improve the job satisfaction of our employees.
As a mechanism for this purpose, we are currently working to create opportunities for dialogue within the workplace to support
individual career development and growth through the implementation of rank-specific trainings, and we have also introduced aninternal recruitment system to match departments that recruit personnel with employees who plan to achieve their career goals.
In addition, we are continuously engaged in efforts to improve organizational issues to create a fulfilling workplace through theimplementation of a yearly organizational culture survey.

Initiatives at FANUC CORPORATION
Career Development Support
We are working to create opportunities for dialogue between supervisors and subordinates through training programs in order tosupport the career development of each one of our employees. We provide training for supervisors to improve their management
and leadership skills, conveying the importance of supporting the growth of their subordinates through interactive dialogue, as wellas to acquire skills and knowledge that can be utilized in dialogue situations with subordinates. For subordinates, we provide “young
employee training” to implement growth plans based on values they cherish as well as “mid-career employee training” to pursue
areas of specialization as professionals, creating a mechanism for them to share their respective career visions with their supervisors
and receive support from them.

Internal Recruitment
We conduct internal recruitment where departments in need of new human resources clarify the requirements they are seeking andrecruit personnel internally. With this system in place, employees are encouraged to take on new challenges to achieve their own
career goals, thereby revitalizing the organization and enhancing individual motivation.

Organizational Culture Survey
Every year, we conduct an “organizational culture survey” to ascertain employees’ awareness. Each organization uses the results ofthe survey to identify organizational issues and implements countermeasures in a PDCA cycle to consistently improve the workplaceenvironment and enhance employee job satisfaction.

Initiatives at FANUC America Corporation
At FANUC America, we seek our employees’ feedback in our pursuit of creating a desirable employee experience and continuing to
attract and retain top talent. We empower them to share feedback in an annual survey which generates high-quality information thathelps us understand how our employees feel at work, where we need to improve our employee experience and what solutions we canimplement. Managers whose team includes five or more survey respondents receive specific team reports. These reports are used todrive discussions at the group level and further refine our understanding of the feedback and development of action items supporting
employee engagement.
In 2021, 72% of our employees participated in the survey. Employees’ opinions of communications within the company, of their job
and of the company continued at the same high levels as measured in previous years. Favorable responses to questions about theability to accomplish career objectives at FANUC America increased from 83% to 85%, the opportunity for promotion / advancement
within the company increased from 63% to 66%, providing a supervisor/manager they can respect increased from 90% to 91% andtreating employees with respect and dignity also increased from 90% to 91%. Talent development continues to be an area of focus.
FANUC America also participates in a survey that identifies Top Workplaces in the Southeast Michigan and Chicago regions basedon the results of an independent employee satisfaction survey. FANUC America headquarters has been a winner of this award for the
past 10 years, and for 2018-2021, FANUC America’s Chicago office was also named as a Top Workplace winner.

2012-2021(Detroit)2018-2021(Chicago)
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Initiatives at FANUC Europe Corporation
1. General intention - set up - participation
Target of FANUC Europe Corporation is to be the Employer of Choice, both for our employees and for new talents we want to attract.
To utilize the engagement of our Employees, FANUC Europe Corporation conducted an Employee Survey in December 2021.
More than 1,800 employees in 24 countries received an individual invitation E-mail and a link to the survey from external company toensure confidentiality.
Results of the survey are available through a customized Dashboard with several filter options for Managers. Anonymity measures
have been applied to ensure the confidentiality of respondents. For the answers, we applied a 5-point scale from strongly disagree tostrongly agree. The survey was available in 9 languages and as desktop and mobile app application to facilitate a high participationrate.
1,431 employees responded to the survey, which leads to an overall participation of 79.1%. This is a very good participation rate forsuch comprehensive survey in several countries and languages.

2. Summary of content and results
We asked 43 questions related to the categories Engagement, Work Conditions, Leadership and Communication.
Top 5 positive: (percentage shows employees who rated with “strongly agree” or “somewhat agree”)

Top 5 negative (percentage shows employees who rated with “strongly disagree” or “somewhat disagree”)

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3. Communication of Results
All employees have been informed from European HR with a Summary of the overall results. Employees Newsletters from the CEO
supported the communication additionally. In parallel, the Management of local Subsidiaries got access to an electronic survey
dashboard, the presentation of the results was done from the local Management.

4. Action Plans
Two types of action plans are defined: European Action Plans and local Action Plans. For the European Action Plans, CHRO and HR
together with CEO analysed the results to come up with actions that have to be addressed. Local Action plans are defined from each
Subsidiary and monitored from European Management

5. Follow up
Besides the continuous monitoring of the implementation of local action plans, a follow up survey is planned for FY 2023.

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With Our Employees

Communication with Employees
Basic Approach
FANUC recognizes that each employee’s individuality, as well as the comprehensive capabilities of our employees constitutethe source of FANUC’s growth and competitiveness. Accordingly, we believe that it is extremely vital to conduct bidirectional
communication, which properly conveys the Company’s status, policies, and expectations to our employees, while also receiving
input from them.
In order to enhance communication, FANUC engages in indirect communication via the Labor Union, as well as direct communication.

Initiatives
Communication via the Labor Union
1.Production Council (four meetings per year)
The Council explains the Company’s production status, hiring plans, work hours, and other short-term conditions to the labor union,
and receives requests from the labor union.
2.Spring labor-management negotiations (ﬁve times from February to March)
Spring negotiations are held to share the Company’s business condition and determine the working conditions based on a labormanagement agreement.
3.Regular labor-management meeting (once per month)
A forum is provided for sharing and resolving daily occupational, health and safety issues.
4.Labor-Management Overtime Management Committee (once per month)
The Committee shares the actual situations and issues regarding work hours for objectives such as work style reforms, promotionof health, and work-life balance, and discusses directions for resolving these issues.

Direct Communication between the Company and Employees
1.When announcing ﬁnancial results, we send a message to our employees regarding the Company’s business performance andthe associated background, deepening their understanding of the Company’s conditions as we strive to foster a sense of unity with
employees.
2.Top management sends messages directly to our employees at each milestone, such as when they join the company, promoted
to executive employee, or posted overseas, explaining the FANUC’s basic principles and management policies and expectations for
employees, leading to increased pride and engagement in the FANUC and their work.

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With Our Employees

Development and Training of Employees
Basic Approach
FANUC supports the growth of our employees as human capital who are indispensable for FANUC’s business activities and who
contribute to the value enhancement of FANUC.
In order to realize sustainable growth as a company in the future, we believe it is necessary to provide employees with opportunities todeepen their understanding of our basic principles and organizational vision, to act autonomously as strong individuals who recognize
their own role, as well as to learn and grow according to their own career aspirations and strengths, and to maximize their strengths
through mutual interaction.

Initiatives
FANUC strives to enhance the value of our employees by providing support for their individual growth and career development.
As an educational system for this purpose, we are currently providing executive employees with trainings to improve their
management and leadership in the workplace according to their responsibilities.
Furthermore, we are conducting trainings for mid-career employees to pursue their areas of expertise as professionals, and trainings
for young employees to implement growth plans based on the values they cherish, and we are working to support their careerdevelopment and growth through dialogue within the workplace.
We also conduct training for employees to give them the specific knowledge and skills that are required in the individual workplaces.
For example, the Service Division strives to improve customer satisfaction by providing technical education to service personnel inJapan and overseas.

Current Education and Training Framework
Trainings for All Employees

Training Name

Trainee

Content

Diversity training

All employees

Encourage understanding of the significance and importance of promoting
diversity, foster and instill a sense of ownership, and communicate key
points that each individual should be aware of and work on in their own
workplace

Harassment prevention
training

All employees

Acquire basic knowledge needed to prevent harassment and create a betterworking environment

Mental health training(line care/self-care)

All employees

Promote understanding and increase awareness of mental health issues,
as well as deepen understanding of the care expected of managers forworkplace members

Information security
education

All employees

Raise employee security awareness and literacy, with the aim of preventing
information security incidents

All employees

We post various policies and guidelines on our company-wide portal site,
and we are working to foster compliance awareness through awarenessraising and educating activities by providing various types of training.
In 2022, we conducted compliance training on whistleblowing system
for FANUC officers and employees (including part-time employees andcontractors) based on the revised Whistleblower Protection Act.

Compliance education

Management and Leadership Improvement

Training Name

Trainee

Content

Training for division headAll division heads

Improve skills required to overcome management issues that should beconsidered by management leaders (management skills, growth strategymaking skills, life skills)

Training for department
heads

All department heads

Establish management and leadership styles to lead the workplace basedon awareness of the role of one’s own department from a company-wide
perspective

Training on workplace
management

All section heads

Learn the basics of management to enhance organizational capability as amanager of an organization and maximize their section’s outcomesTraining for new executive Employees promoted to
employees
executive positions

Learn leadership for achieving results as a team, with the aim of deepening
their own expertise and solving issues that they are addressing as a group
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Career Development

Training Name

Trainee

Content

Mid-career employee
training

General mid-career
employees

Cultivate an awareness as a “professional” who plays a central role in
the execution of workplace operations, and pursue their “unique” area ofexpertise to lead the workplace as a front-runner.

Young employee training

Young employees incareer-track positions(three years since joining
the Company)

Foster “independent human resources” who can proactively approach theirwork from their own awareness of the expectations of others, their personal
strengths, and their core values

Management Capability Improvement for Manufacturing Sites

Training Name

Trainee

Content

Team leader training

All team leaders

Raise awareness of one’s role as a supervisor at the frontline of the
manufacturing site and improve the knowledge and practical skills required
to manage a workplace as a leader

Young technicalemployees training

Young technicalemployees(7 or 8 years with thecompany)

Cultivate an awareness as a member of the organization who is responsible
for the execution of manufacturing operations and the preservation andenhancement of organizational strength, and connect it to actions forencouraging others and resolving work issues.

New Recruit Training

Training Name

Trainee

Content

New Recruit Training

All new-graduate recruits
and mid-career hires

Learn basic knowledge as employees of FANUC, such as its businesses,
history, basic principles, organization, corporate culture and so on, explain
governance and various other policies as well as human rights policies andrequire compliance with them.

Etiquette training

All new-graduate recruits

Acquire business etiquette to facilitate work and become a trusted
corporate person through appropriate behavior and communication as amember of society.

Foreign Language Training (English and Chinese)
To help individual employees enhance their skills according to the language proficiency requirements of their work, in addition to the
TOEIC exam, we have expanded our training options for language skill acquisition, including business English, English conversation,
and Chinese conversation.
Division-based Training
Besides the training programs described above, each division has their employees attend external workshops and provides training
sessions for them to acquire the particular knowledge and skills required for their assigned tasks.

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Education and Training for Service Enginneers
The Service Division conducts cultivation and education training for service personnel. At FANUC, we believe that improving the levelof the services provided by our service personnel is of utmost importance. As such, we are working to provide high-quality services
globally through the cultivation and education of our service personnel.
In addition to etiquette training for all new-graduate recruits, we strive to further improve customer satisfaction by giving consideration
to personal appearance and speaking manner, based on the Service Engineer Code of Conduct.
In addition, we have started an initiative to transfer young service personnel to the sales and technical support departments (fora designated period of about two years) in order to cultivate a multifaceted viewpoint, which will lead to career advancement andimprovement of duties, by allowing them to see their own departments from the outside.
Apart from this, we would like to further improve the efficiency of current duties by appointing younger field service personnel for callcenter duties, which until now we thought could only be performed by veterans, using databases and reception systems.
As for the new employee training, in 2022, as in 2021, we set up a videoconferencing system available at all times in one of theclassrooms at FANUC ACADEMY of FANUC Headquarters, allowing the Hino Branch and FANUC ACADEMY to view each other’s
activities.
We also provided all employees with a tablet and laptop computer immediately after they joined the Company.
In addition, we provided our new employees with basic knowledge by sharing with them the e-Learning contents produced by FANUC
ACADEMY and other resources prepared in-house by individual departments.
Currently, new employees watch the e-Learning contents in their free time for preparation and review.
Over the approximately five months after joining the company, we have provided technical training, basic education as a working
member of society, and safe driving education by an external lecturer. For future required qualifications, we have started providing
special education for operating industrial robots, low-voltage electricity, full harnesses, etc., from the time they join the company sothat they can safely carry out their duties.
Moreover, in order to drive company-owned vehicles on a daily basis, they attend courses such as on-site training from local police
departments and “safe driving based on accident examples” from non-life insurance companies to improve their safety awareness.
(Domestic Service Division)
Because our business is essentially based on client visits, we conduct not only general information security training, but also training
on client information management, in order to ensure thorough information management.
Similarly, for technical education, safe driving education, and lessons on safe working for service personnel already active in the field,
we conducted online education by connecting FANUC Headquarters, Hino Branch, and each service location throughout Japan.
In the past, we have had business trips to trade shows and other events, but since we are trying to minimize business trips to distantlocations during the COVID-19 pandemic, our service personnel are also watching the customer-oriented online distribution toenhance their product knowledge.
For those who were not able to participate in that either, we are also working on online training courses.
To overseas service personnel, we maintain a high level of service overseas through education and training on maintenance technics
by using videoconferencing systems, on-demand seminars and video materials.

Technical education at
FANUC ACADEMYFANUC ACADEMY provides technical education to service personnel Japanese and overseas almost
every week, utilizing training programs that incorporate our customers’ requests.

Technical education atgroup companies

We also provide technical education to service personnel at FANUC America, FANUC Europe, andother group companies. With regard to education on new models and advanced technology, thepersons in charge participate in programs offered by FANUC ACADEMY to acquire the necessary
skills, and deploy them within their ofﬁces after returning to their countries.

Introductory training andfollow-up training of new
employees

In Japan, we provide intensive education to new service personnel for four to ﬁve months, at thetime of onboarding. Service personnel hired overseas are also given training in a planned manner atthe Headquarters.
Furthermore, follow-up training is provided to new hires one year after joining the Company.

Winter intensive training(Japan)In the winter, FANUC ACADEMY conducts intensive skill improvement training, mainly with regard
to new products, so that all service personnel are able to provide high-quality service based on
FANUC’s global standards.

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Implementation Status of Education and Training for FY2021

Number of FANUC ACADEMY participants

Domestic service personnel: 236
Overseas service personnel: 96

Number of trainees trained in group companies

Overseas service personnel: 828

Number of FANUC ACADEMY training hours (annual average per trainee)

Domestic service personnel: 20.83 hours

Award Programs
On July 1 every year, at the Anniversary of Foundation Ceremony, FANUC presents awards to groups and individual employees who
have made significant contributions to the Company’s business performance or who have undertaken outstanding activities that serve
as a model for others. Other awards include those for employees who have created patented inventions and other inventions that are
beneficial to our business.
In 2021, we presented the Special Achievement Award, Achievement Award, Invention Award, and Outstanding Safety WorkplaceAward.
The awardees received a certificate of commendation and cash reward, and the Special Achievement Award recipient was alsopresented with a medal.
The Special Achievement Award and Achievement Award are often given to teams that cross business divisions and administration
divisions, signifying the practice of “one FANUC.”
The Outstanding Safety Workplace Award was presented to workplaces that achieved remarkable results in the elimination ofoccupational accidents.
As for services, at the annual Global Service Conference, we present awards to the top service personnel from all over the world who
have provided excellent service in the past year. In 2022, we presented awards to 11 individuals or groups from ten companies.

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With Our Employees

Health and Productivity Management
FANUC’s Health and Productivity Management Statement
Creating an Environment in which Employees can Thrive and Feel Fulfilled
In order to make our vision a reality, we consider the health and well-being of our employees and their families as being the foundationthat upholds our business activities. Based on this belief, Health Management has been promoted from April 2022.
As part of this endeavor, we will create an environment in which our employees can work actively with enthusiasm and a sense of
worth, be healthy both in body and mind, and have a happy and fulfilling livelihood.

Promotion Framework
The General Manager of the Human Resources Division is responsible for health promotion, and the Welfare Department serves as theadministrative office.
Six task force teams have been established under the Health Promotion Committee to actively incorporate the opinions of related
divisions and work together to promote the program.

Activity Policy
1) We will turn “health promotion,” which will further strengthen our health foundation, into a new engine for improving corporate
value.
2) We will acquire “Excellent Health Management Corporation” status in FY2022 and promote activities from a medium- to long-term
perspective.
Note: “Excellent Health Management Corporation” is a certification program of the Ministry of Economy, Trade and Industry, which is
given to corporations that practice excellent health management.
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Commitment
1) First, learn proper lifestyle habits in general, starting with “exercise”
2) Stimulate “education” and “communication” to create a corporate culture in which people can work actively3) Link the effects of each of the health promotion projects
Implement PDCA operation in the annual business cycle.
In this way, we will promote the acquisition of health literacy, which encourages people to become physically and mentally healthy on
their own.

①

Matching
analysis of
medicalcheckup results
and receipt⑤

Integrated
management of
medical checkup
results and
HR data

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With Local Communities
Basic Approach
FANUC has over 260 offices covering more than 100 countries around the world. We aim to earn the trust of all stakeholders of ouroffices and to be rooted in the communities surrounding them. In our headquarters area, many of our employees have moved fromother areas to Yamanashi Prefecture, following a local lifestyle while working close to home. FANUC headquarters employees relyon the organizations and facilities of the local government and community in their daily lives. Accordingly, FANUC makes efforts tocontribute to the local community, such as by recruiting human resources from technical high schools in Yamanashi Prefecture every
year and making donations to the community.

Supporting Research through the FA Foundation
The FA Foundation was founded in 1989 by Dr. Seiuemon Inaba, the Honorary Chairman of FANUC. FANUC donated funds at the timeof establishing the Foundation, and has made donations to cover its operating costs since that time.
The mission of the FA Foundation is to contribute to society by improving automation technology, and automating machinery andmachine factories, primarily through ofﬁcial commendations of research achievements related to factory automation (FA) and industrial
robot technologies.
In FY2021, a total of eight outstanding theses were commended by the Foundation.
FA Foundation (In Japanese)

The Consortium of Human Education for Future Robot System Integration
On December 18, 2019, under the initiative of the Ministry of Economy, Trade and Industry, industry players, including FANUC and the
National Institute of Technology, signed a memorandum for establishing the Consortium of Human Education for Future Robot System
Integration to develop human resources in robotics. This initiative aims to match schools and educational institutes with industrial
players in the robotics ﬁeld. It is hoped that such matching will introduce students and teachers to internship programs, promote thedispatch of robotics engineers from companies to schools, and facilitate the development of future human resources in the robotics
ﬁeld.
FANUC contributes to the development of human resources in robotics, through activities such as internship programs for teachers
and the dispatch of lecturers to technical colleges and technical high schools. In FY2021, we actively engaged in robotics humanresource development activities, including online lectures on the latest robotics technology for technical schools.

Support for Creative Manufacturing Education that Brings Ideas to LifeAll Japan Student Indoor Flying Robot Contest
FANUC is a special sponsor of the All Japan Student Indoor Flying Robot Contest.
The 17th All Japan Student Indoor Flying Robot Contest was held from December 17 (Fri) to December 19 (Sun), 2021 at the Ota-City
General Gymnasium. This time, the contest was conducted by taking measures to prevent the spread of COVID-19, such as taking
peoples’ temperatures, disinfecting, and registering participants in advance.
This contest was intended to encourage students to engage in the “making things,” but more importantly to develop human resourcesin aircraft design, control and other areas. A total of 48 teams from universities, technical colleges, high schools, and vocational
schools across Japan, from Okinawa to Hokkaido, participated in the contest.
Participants conducted missions such as transporting goods and flying with an autopilot system, and competed in flight performance,
control technology, and flying techniques.
At this contest, the FANUC Award was granted to the Tokyo Metropolitan College of Industrial Technology who won the first place inthe autopilot category.

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Donations to the Community around FANUC Headquarters
FANUC has donated items such as testing machines and other equipment to the Fujiyoshida Municipal Hospital, which often assists
us with employee health management and thorough examinations, etc.
Every year, we sponsor Shinto rituals and community events, make ongoing contributions to the Yamanashi Prefecture Community
Chest’s “Red Feather Community Chest,” and also regularly provide food support to the non-proﬁt organization, “Food Bank
Yamanashi.”
Up to 2019, we had donated 1,570 m2 of land for road use for village road-widening projects in Yamanakako-Village and OshinoVillage. Furthermore, in FY2022, we plan to exchange and donate the company-owned portion of the land after the completion of theOshino village road widening project.
Since 2022, we have been donating 10% of vending machine sales commissions from vending machines installed in our headquarters
area to the Gold Ribbon Network, a certified NPO.
Major Donations

2020

FANUC supported the “Let’s Cheer Up Healthcare Workers! Donation Project for COVID-19 Countermeasures” organizedby Yamanashi Prefecture, and donated ¥50 million as part of support for COVID-19 countermeasures.
We also donated face masks to the government of Yamanashi Prefecture, where FANUC Headquarters is located, and to
Fujiyoshida Municipal Hospital.

2021

We built shelters at two bus stops that had no roofed structures and therefore offered users no protection from the windor rain, and donated these shelters along with the road land to Oshino-village.

2022

Donation of €1 million for supporting the humanitarian crisis in Ukraine through the Yamanashi Branch of the Japanese
Red Cross Society.
We have been donating 10% of vending machine sales commissions from vending machines installed in our headquarters
area to the Gold Ribbon Network, a certified NPO.

Blood Donation Drives
For six days between October 1 and 8, 2021, FANUC Headquarters held a blood donation drive by the Yamanashi Red Cross Blood
Center for the fifth time in as many years. The number of employees who donate blood is increasing every year, reaching 535 in 2021.
In 2020, FANUC received the Governor’s Commendation for Blood Donation Promotion, which is presented to organizations thatcooperate with blood donation at least twice a year or that have had more than 50 blood donors for three consecutive years.
Our Mibu Factory in Tochigi Prefecture has also been conducting blood donation drives since 2018, with 62 people on April 8, 2021
and 73 people on October 6, 2021, for a total of 135 employees donating blood.
As a familiar social contribution activity, FANUC will continue these blood donation drives with the cooperation of our employees.

Initiatives in Japan
Local Employment around FANUC Headquarters
FANUC Headquarters take initiative for securing human resources from technical high schools in Yamanashi Prefecture every year,
accepting them for factory tours prior to their application and providing them with opportunities to experience manufacturing sites.

Support for Reconstruction in Disaster Zones
FANUC assists in the restoration of disaster-stricken areas, in order to help disaster victims. Such activities include donations at thetime of the Great East Japan Earthquake in March 2011, the torrential rains in the Kanto and Tohoku areas in September 2015, theKumamoto earthquake in April 2016, and the heavy downpours centered on western Japan in July 2018, as well as recovery support
activities for disaster victims, to enable affected customers to resume operations as quickly as possible.
Employees also engaged in volunteering activities in the aftermath of the Kumamoto earthquake.
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Inviting a City Gas Station to the Area
FANUC invited a city gas station to be built in the Headquarters area to reduce electric power consumption, which helped promote
the use of city gas among local residents.

Harmonization with Local Landscapes
Oshino-Mura, where the Headquarters area is located, offers a harmonic landscape where you can view a lot of nature, such as lakes,
ponds and rivers created by Mt. Fuji’s subsoil water, and man-made scenery like farming fields and thatched roofs, with Mt. Fuji in the
background. The local governments of Oshino-Mura and Yamanakako-Mura have established landscape plans for the preservation of
the landscapes, and FANUC is also actively working with those plans.
Most forest resources owned by FANUC consist of trees planted after the war. At FANUC Headquarters, following guidance from the
Yamanashi Forestry and Forest Products Research Institute, we maintain and manage trees according to the “FANUC Forest 100Year Plan,” aiming to restore forests to a state in harmony with the region. We are currently promoting a plan to replace the artificiallyplanted coniferous trees with rich broadleaf trees that bloom, bear fruits, and allow coexistence with small birds and animals.
In addition, we are conducting controlled logging of hazardous trees to avoid obstruction of village roads due to fallen tall trees on thesite, while planting tree species that naturally blend in with the land and the local area after logging is completed.
All exterior walls of FANUC’s existing factories had previously been painted yellow, but when they were repainted during major
refurbishments of the individual factories, gray is used as a base color and the amount of yellow used has been limited (e.g., 20% orless of external walls in the Headquarters area, 5% or less of external walls in the Hino area).

Offering the Dormitory Scheduled for Demolition to Disaster Response Training
In October 2022, we offered our dormitory scheduled for demolition to the Tsukuba Fire Department for disaster response training.
This was in response to a request from the Tsukuba Fire Department to enhance disaster response capabilities by conducting
destructive activities that are difficult to conduct in the training facility used on a daily basis and by conducting various types oftraining in an environment more similar to an actual disaster.
FANUC will continue to engage with the local community.

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Initiatives at FANUC India Pvt Ltd
Towards Zero Hunger
In India, approximately 236 million children attend 1.1 million government schools. Children in government schools, especially thosein villages are the children of migrant workers who help with household chores and are unable to eat even one meal a day. A meager
dinner does not give them enough energy to last until lunch time the next day. The result is lack of concentration, inattention, lots oftrouble, and absenteeism.
FANUC India provides meals to children and migrants.
● Provided breakfast to total of 883 children near Bangalore and lunch to 5,000 children.
● Operate a day care center in Pune, West India, with 130 children attending. The children are cared for and fed while their parents areengaged in work.
● Providing support to orphanages in Bangalore, Madurai and Coimbatore.
● Provided ration kits and cooked meals to migrants near Bangalore affected by the lockdown caused by the COVID-19.

Lunch distribution

Ration kit and cooked meals distribution

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Supply Chain
Basic Approach
FANUC purchases raw materials, electric and electronic parts and mechanical parts used in its products, and the equipment, tools
and ﬁxtures used in our factories and other facilities, as well as outsources their machining and assembly, from/to approximately
1,000 suppliers. These suppliers are all important partners who are indispensable for the production of FANUC products, and we areworking to establish a collaborative system with these suppliers that allows us to grow together. To this end, we strive to develop
mutual trust, with a view toward fulﬁlling the social and environmental responsibilities required of supply chains by domestic andoverseas communities.
� CSR Procurement Policy

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Supply Chain

Promotion Framework
Purchasing Department
At FANUC, as a point of contact with our suppliers, Purchasing Department gathers information on the quality, delivery time, andcost, while internally sharing information in a timely manner. Regarding CSR Procurement Policy and conflict minerals, we require our
suppliers to comply with the reduction and elimination of harmful substances contained in products.
The Purchasing Department cooperates with Research & Development Divisions and Production Divisions to actively promote theuse of multiple suppliers to reduce supply chain risks. In addition, with regard to parts (especially customized parts) that have only
one supplier, the Department works to maintain an appropriate level of inventory even during ordinary times, so that in the event of adisaster, these parts will be secured until the supplier’s factory recovers.
FANUC has set up the Supply Chain Risk Management (SCRM) Working Group to consider, and take appropriate measures against
supply chain risks in the event of a disaster. The SCRM Working Group studies the location and area of the manufacturing facilities foreach part, so as to immediately determine which suppliers may have been impacted, in the event of a disaster. This data has assisted
us greatly in securing service parts that became difficult to obtain due to the impact of COVID-19.
In addition, with the cooperation of our suppliers, the Group has built and is operating a system (automatic email transmission) toinvestigate the safety of suppliers’ employees, as well as whether factories and other facilities have been damaged in the event of adisaster (an earthquake with an intensity of 5 or greater, etc.). The Group also investigates and analyzes our suppliersʼ efforts toward
BCP, and urges suppliers to make improvements, when deemed necessary.
Once it had established mechanisms for scheduling the above activities on an annual basis and updating the information every year,
and created a manual for each activity, the SCRM Working Group transferred its activities to the Purchasing Department. (July 2020)
Due to the rapid increase in demand starting in 2020, the procurement of various parts, including semiconductors, was in a criticalstate. We established an Emergency Countermeasures Working Group with the Purchasing Department, Research & Development
Division, and Production Division, and the entire company worked together to negotiate parts procurement, purchase market items,
adopt alternative parts, and replace production processes, etc. to ensure that production could continue at a high level.

Disaster Response TeamIn the event of natural disasters such as earthquakes and typhoons, the Purchasing Department conducts automatic emailtransmission (as described above). It also identifies suppliers that may have suffered damage based on factory location information it
has studied in advance, and conﬁrms their status.
In particular, in the event of a large-scale disaster, the Disaster Response Team initiates its activities in cases where the supply chain isdeemed to have been seriously damaged. The Disaster Response Team comprises personnel selected in advance from each research& development division, each production department, and the Purchasing Department. These personnel work together to grasp thestatus of suppliers, confirm the delivery time of parts, and take supplementary measures for parts difficult to obtain.
In response to the turmoil in the supply chain caused by the impact of COVID-19, we established a Disaster Response Team and took
various measures to ensure smooth supply of our products to customers.

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Supply Chain

Initiatives
Master Transaction Agreement
The following articles are incorporated in the master transaction agreement we conclude with each supplier, and compliance to thesearticles is required as important items.
Article 33 Environmental Policy and Environmental Laws and Regulations
Article 39 Elimination of Anti-social Forces

CSR Procurement Policy
FANUC established the CSR Procurement Policy in July 2019.
The Supplier Code of Conduct is prescribed within this Policy. We send this Policy to each supplier and request their compliance.

Declaration of Partnership Building
In August 2020, FANUC released a Declaration of Partnership Building with the aims of building mutually-beneficial relationships with
suppliers in its supply chain and increasing added value across the entire supply chain through new partnerships with suppliers.
The framework and structure for the Declarations of Partnership Building have been confirmed by the Council on Promoting
Partnership Building for Cultivating the Future, which consists of representatives from the business community and labororganizations, as well as government officials, and are being promoted by the Cabinet Office and the Small and Medium Enterprise
Agency.
Under our Declaration, we will strive to ensure that SMEs do not bear the brunt of unfair trade conditions caused by the impact of
COVID-19, surges in raw materials and logistics costs, and other reasons, and we will continue our efforts to encourage companies tointroduce appropriate subcontract practices. We will also encourage the building of new partnerships that involve efforts to increase
added value across the supply chain and open innovation that transcends business size, groups, and other boundaries.
To this end, going forward, we will continue to strive to develop mutual cooperation and relationships of trust that will enable us togrow and prosper together with our suppliers, with a view to fulﬁlling the social responsibilities of the entire supply chain.

Conforming with Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors
FANUC strictly complies with the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors (hereinafter the“Subcontract Proceeds Act”). Approximately 330 companies, or 33% of all of our suppliers, are subject to the Subcontract Proceeds
Act. We pay rigorous attention to ensure that there is no unjust disadvantage to our suppliers, in accordance with the Subcontract
Proceeds Act.

Conﬂict Minerals
FANUC has a policy of not using conﬂict minerals* in its products. Accordingly, we strive to gather as much information as possible
from our suppliers, in order to conﬁrm that the minerals are not sourced by illegal mining from conﬂict areas.
* Conﬂict minerals refer to minerals (tin, tantalum, tungsten, and gold) that are illegally mined in conﬂict areas (Democratic Republicof the Congo and surrounding regions). Companies listed in the United States are required to disclose and report the use of suchminerals, under the conﬂict mineral disclosure rule (Dodd-Frank Act) of the U.S. Securities and Exchange Commission (SEC).

Reduction and Elimination of Harmful Substances Contained in Products
FANUC promotes reduction and elimination of use of harmful substances targeted by the RoHS Directive and the REACH Regulation.
Accordingly, we notify our suppliers of the related policies and request their cooperation. Since new substances may be included due
to revisions of the regulations, we always strive to obtain the latest information regarding the directive and regulations.

Establishment of the Supplier Hotline
In June 2021, FANUC set up the Supplier Hotline as a contact point for suppliers to report to if they discover illegal, fraudulent,
unethical, or suspicious acts related to the business of the FANUC Group. Executives and employees of our suppliers can report
directly to designated law firms, enabling us to promptly discover, correct, and prevent problems.

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Disposal of Molds and Payment of Storage Fees
In March 2020, to protect subcontractors, the Ministry of Economy, Trade and Industry and the Small and Medium Enterprise Agency
revised and enforced the standards for encouraging fair practices and other guidelines concerning approaches to enhancing proper
mold management stipulated in the Act on the Promotion of Subcontracting Small and Medium-sized Enterprises. Under the newstandards, it is necessary to dispose of molds that have not been used for a long time or to pay subcontractors for the cost of storingthem.
FANUC asked our subcontractors that store molds to file an application regarding the molds they wish to dispose of. We approved thedisposal of some molds, and decided to pay storage fees for the other molds that should not be disposed of. We began the disposalof molds in March 2019 and the payment of storage costs in March 2020.

Lump-sum Full Payment of Mold Costs
In the payment of mold costs to subcontractors, the standards stipulated in the Act on the Promotion of Subcontracting Small andMedium-sized Enterprises calls for the transition away from long-term payment methods such as 24-month installments, which placea burden on subcontractors, to methods of early payment, such as lump-sum payments. In April 2020, FANUC changed from the24-month installment payment method we had previously employed to a lump-sum payment method.

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Supply Chain

Goals/Performance
Single-year Goals
So-called silent change (changes made to the quality of deliverables, unbeknownst to the Company) at our suppliers may have asigniﬁcant impact on the quality of FANUC products. In order to prevent such silent change, we require our suppliers to apply forchanges in 4M (Man, Machine, Method, Material) and obtain FANUC’s approval in the event of any changes made to deliverables. We
send documents stating our request regarding changes to our suppliers, in order to obtain a response indicating their consent.
If some suppliers do not consent on the grounds of conﬁdentiality or respond by adding conditions, we hold discussions with thesaid suppliers and strive to increase the number of suppliers who provide consent, so as to maintain a high level of quality without
undermining mutual trust.

Performance in FY2021
We have been working continuously to achieve our single-year goals. In FY2021, we also sent the same documents as those of theprevious year to obtain responses indicating our suppliers’ consent. Even for suppliers whose consent we could not obtain, we haveworked with quality control divisions to consider our suppliers’ conditions, an approach that has allowed us to reach agreement withthem in more and more cases. Going forward, we will strive to increase the number of suppliers who provide consent.

Medium-term Goals
We will build a database for the centralized management of supplier information. In addition to the supplier’s information (sales, proﬁt,
items handled, and factory information) and the supplier’s relationship with FANUC (transaction amount, products purchased, thecontact department and PIC within the supplier), the database will also list an evaluation of the quality, delivery time, and cost of eachsupplier. In addition, we will consider posting information such as the supplierʼs efforts on ESG-related items.
Over the next few years, we will need to significantly increase production, mainly of robots, but we anticipate difficulties in partsprocurement. We will work with our existing suppliers as well as develop new suppliers to establish a stable parts procurement
system.

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Supply Chain

Responsible Sourcing of Minerals
Basic Policy
As part of its corporate social responsibility, the FANUC Group is committed to acting in a socially responsible manner regarding the
procurement of minerals.
The FANUC Group adheres to the “OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected
and High-Risk Areas,” in order to respect human rights and avoid contributing to conflicts, by not sourcing mineral resources such astin, tantalum, tungsten, gold and cobalt, in its procurement activities, which are mined in conflict-affected areas and high-risk areas
such as the Democratic Republic of the Congo (DRC) and adjoining countries, where there are concerns of human rights violation insuch forms as forced labor or child labor, environmental exploitation, and actions which may fund armed groups.

Approach to Conflict Minerals
The FANUC Group surveys approximately 500 suppliers regarding their use of conflict minerals. If a problem is found, we change thesource we procure from to avoid using conflict minerals.

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Sustainability Report 2022

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Environment
FANUC Headquarters is located in a stunning forest environment adjacent to the Fuji-Hakone-Izu National Park. We have beenworking to protect this wonderful natural environment on our premises spanning 1.78 million square meters.
In 1999, in order to conserve the global environment, in addition to protecting the nature on our premises, we established theEnvironmental Policy, and have continued to update it since then. This policy guides all of our environmental initiatives by summarizing
and clarifying our basic stance, which is to reduce the environmental burden at each stage of the product life cycle, from productdevelopment to procurement, production, and operation.
Based on our basic vision of “leaving nature and resources to posterity,” we have been working on reductions of CO2 emissions andenergy consumption, which are considered to be the causes of climate change, the efﬁcient use of resources such as water andminerals, as well as the proper disposal and reduction of waste, from both the viewpoints of products and corporate activities.
FANUC shares this Environmental Policy not only within the Company and group companies, but also with its suppliers to work on
achieving global environmental conservation together.

Policy� Environmental Policy and Action Policy

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Environmental Preservation Activity

Promotion Framework and Initiatives
Environmental Management Promotion
FANUC recognizes that actions for the environment are an important tasks, with the President and CEO designated as the person
responsible for the initiatives. Important environmental issues, including climate change, are reported to the Board of Directors for
decision-making. Reports on the progress of FANUC’s environmental initiatives, and the direct and indirect impacts of the environment
on our business activities are collected from environmental managers assigned to the relevant divisions, and reported at the ISO14001
meeting, which is chaired by the Executive Managing Ofﬁcer and General Manager, Production Division. Important matters arereported to the Board of Directors for decision-making.
Regular reports include the setting of environmental goals in March of each year, as well as a report on environmental management forthe previous ﬁscal year in June.

Environmental Management System
FANUC has acquired certiﬁcation for the international standard for environmental management systems ISO 14001 (2015 version).
In August 1999, the entire FANUC organization was granted ISO14001 certiﬁcation, with the registered range being those activities
related to FA, ROBOT, and ROBOMACHINE products (including research and development, manufacturing, and sales & service). Thisnot only covers Headquarters (Yamanashi) but also the Tsukuba Factory, Hayato Factory, and each of Hino, Nagoya, Osaka, Hokkaido,
Tsukuba and Kyusyu branches and ofﬁces. In FY2018, our Mibu Factory was also included.
This environmental management system applies to every FANUC site in Japan, and also to the employees, factories, premises,buildings, facilities, corporate activities and environmental conservation activities related to the products and services offered by
FANUC’s domestic group companies.

Scope of Application of Environmental Management System

Organization and StructureWith the Executive Managing Ofﬁcer and General Manager, Production Division serving as the chair, we hold ISO14001 meetings
once a year, consisting of representatives of related divisions, to determine activity plans and review activities. Important matters at
ISO14001 meetings are reported to the Board of Directors.

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Internal Environmental Audit
FANUC conducts internal environmental audits of all divisions every year. The purpose of these audits is to conﬁrm that theenvironmental management system conforms to ISO14001 standards and is being appropriately implemented and maintained. To
ensure objectivity and fairness, the audits are performed by auditors selected from divisions other than those being audited. In cases
where nonconformities are discovered in an internal environmental audit, corrective measures are implemented.

Environmental Education and Information Disclosure
To fully understand the signiﬁcant environmental aspects, risks and opportunities and to minimize, control and improve theenvironmental load, we provide environmental training to all our employees.
New recruits, regular employees, people in charge of speciﬁc tasks, and people in charge of environmental management are educatedin accordance with their respective tasks.

Compliance with environmental laws and regulations
FANUC has established a system to identify environmental laws and regulations, manage data related to both the direct and indirect
impacts of our business activities on the environment, and make reports regularly.
In the unlikely event of any violations of laws or regulations, we will take swift corrective actions.
In FY2021 and in the past until now, there have been no serious violations of laws or regulations, ﬁnes or civil penalties, or major
spillages in relation to the environment. Furthermore, no complaints regarding environmental issues have been filed.

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Environmental Preservation Activity

Overview of Environmental Impact from Corporate Activities

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Environmental Preservation Activity

Goals

Mid-to long-term Environmental Targets
Item

Mid-to long-term environmental target

Amount of electricity consumption(input)Reduce electricity consumption (purchased electricity) by 10% or more per unit ofproduction from the FY2020 level by FY2030.

Freon refrigerant (discharge)

Reduce refrigerant emissions conducting regular inspections in accordance with laws andregulations by FY2030.

Amount of kerosene used

Change from kerosene to city gas in the Headquarters area by FY2025.

Amount of waste liquid discarded

Using FY2020 as reference, identify the actual amount of waste liquid discardedin proportion to the level of production by FY2025. Thoroughly conduct storage
management.

Using FY2020 as reference, identify the actual amount of PRTR chemical substances
Amount of PRTR chemical substancesused in proportion to the level of production by FY2025. Thoroughly conduct storage
usedmanagement.

CO2 absorption

Promote the switch from coniferous to broad-leaved trees by FY2025.

Amount of fuel used to companyowned cars

Promote the reduction of fuel consumption of company-owned cars used fortransportation between sites and buildings by using online conference tools by FY2025.

Development of environmentallyfriendly products

Implement reduction in size and weight, power consumption, and number of service parts,
while extending the product lifetime, etc., by establishing numeric targets for the end of
FY2025.

Environmental Targets for FY2021 and Performance
Item

Environmental target for FY2021

Performance in FY2021

Electricity
consumption

The target was to reduce the amountused in proportion to the level ofproduction by 0.84% from the previous
fiscal year’s level.

Target achieved with a 15.7% decrease from the previous fiscal.

Kerosene/LPG
consumption

Switch to city gas in the headquarters
area.

Target achieved.
1.Switched to city gas.

Create a feasible goal in proportion to
the production level.
Through storage management.

Target achieved.
1.Utilization of oil water separators.
2.Collection and reuse of cutting fluid attached to chips.
3.Use of a release agent with less waste liquid.
4.Use of cutting fluid with a long service life.
5.Utilization of distillation and regenerating equipment.
6.Emergency training for waste liquid leaks.

PRTR chemical
substance usage

Create a feasible goal in proportion to
the production level.
Thorough storage management

Target achieved.
1.Use of cutting fluid that does not contain N,N-dicyclohexylamine.
2.Use of lead-free solder.
3.Use of an ethylbenzene-free coating.
4.Thorough storage management.
5.Emergency training for chemical leaks.

Development ofenvironmentallyfriendly products

For the main products, reduce size
and weight, power consumption, andthe number of service parts, while
extending the life of those parts, etc., byestablishing numeric targets

Target achieved.
1.Reduction in size and weight.
2.Reduction of power consumption.
3.Reduction of the number of service parts.
4.Improvement of operating rates.
5.Reduction of hazardous substances in parts.

Amount of
discarded waste
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Environmental Target for FY2022
Item

Environmental target for FY2022

Electricity consumption

The target was to reduce the power consumed in proportion to the level of production byat least 6.11% compared to the previous ﬁscal year.

Freon refrigerant (discharge)

Reduce refrigerant emissions conducting regular inspections in accordance with laws andregulations.

Amount of discarded waste liquid

Using the previous ﬁscal year as reference, identify the actual amount of waste
liquid discarded in proportion to the level of production. Thoroughly conduct storage
management.

PRTR chemical substance usage

Using the previous ﬁscal year as reference, identify the actual amount of PRTR chemical
substances used for production as compared with the level of production. Thoroughly
conduct storage management.

CO2 absorption

Promote the switch from coniferous to broad-leaved trees.

Amount of fuel used to companyowned cars

Promote the reduction of fuel consumption of company-owned cars used fortransportation between sites and buildings by using online conference tools.

Development of environmentallyfriendly products

For the main models of individual products, implement reductions in size and weight,
power consumption, and the number of service parts, while extending the product lifetimeof those parts, etc., by establishing numeric targets.

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Environmental Preservation Activity

Performance in FY2021
Amount of Electric Power Used
Actual Reduction in the Amount of Electric Power Used
As part of our efforts to reduce our output of greenhouse gases such as CO2 and thus prevent global warming, we are constantly
aiming to reduce the amount of electric power that we use.
The power used in proportion to the level of production in FY2021 decreased increased by 12.4% compared to the previous ﬁscal
year’s level, and we could achieve the FY2021 target.

Electric Power Reduction Measures (main measures implemented by FY2021)
1.Some machine tools in our plants were exchanged for those incorporating auto power-off devices.
2.Some of the compressors in our plants were exchanged for those incorporating inverter controls.
3.Energy-saving ﬂuorescent lamps (with electronic ballasts) and energy-saving compressors (inverter type) were installed in newbuildings.
4.The roofs of new buildings were changed to silver in color.
5.The roofs of new buildings were enhanced in heat insulation by duplicating them.
6.Power consumption was reduced with motion sensors.
7.Wind-shielding curtains were used for energy saving in air conditioning.
8.Measures were taken against heat emissions from compressors for energy saving.
9.Energy-saving measures were studied by energy-saving consultants.
10.Use of LED lighting was promoted.
11.Co-generation was promoted.
12.Power waste was reduced by preventing leakage of compressed air piping.

Energy-saving compressors(inverter type)

Silver roofs

Duplicated roofs

Motion sensors

Wind-shielding curtains

Measures were taken against
heat emissions (1)Measures were taken against
heat emissions (2)Measures were taken against
heat emissions (3)Amount of Kerosene/LPG Used
Kerosene/LPG Reduction Results
In some parts of the Headquarters area, kerosene and LPG were replaced by city gas.
As a result, we reduced the total amount of kerosene used by 49% and LPG used by 79% compared to the previous year.
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Amount of Waste Liquid Discarded and Amounts of Other Waste
Waste Liquid Reduction Results
Identiﬁed the actual amount of waste liquid discarded in FY2021 in proportion to the level of production. Improved the management ofwaste liquid, so as to prevent environmental pollution due to spilled waste liquid.

Waste Liquid Reduction Measures (main measures implemented by FY2021)
1.Reused separated water by introducing oil-water separators
2.Collected cutting ﬂuid attached to chips and reused it.
3.Used mold release materials with less amount of waste liquid.
4.Used long-life cutting ﬂuid.
5.Reused distilled water by deploying distillation and regenerating equipment.

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Other Waste
Almost all waste was recycled.
We sold waste metal 43,125t, waste plastic 31t, and waste liquid 71t for recycling.

Amount of Chemical (PRTR) Substances Used
PRTR Chemical Substance Reduction Results
Identiﬁed the actual amount of PRTR chemical substances used for production in FY2021 in proportion to the level of production.
Improved the management of chemical substances, so as to prevent environmental pollution due to spilled chemical substances.

PRTR Chemical Substance Reduction Measures(measures implemented by FY2021)
1.Used cutting ﬂuid that does not contain N, N-Dicyclohexylamine.
2.Replaced HCFC 141b with other materials.
3.Used oil not containing xylene.
4.Banned the use of copper salts.
5.Banned the use of ferric chloride.
6.Used lead-free solder.
7.Used coating material containing no ethylbenzene.
8.From HCFC-225 to HCFO type (ozone depletion factor is almost zero, global warming potential is less than one, not subject to
PRTR)
9.Products containing ethylene glycol monoethyl acetate (Manufacture 9) changed to non-PRTR products

Total Chemical Substance Control
In order to implement the total ﬁeld control of objects stored by divisions using chemical substances, we conducted the following
inspections and remedied those defects found as a result of those inspections:
1.Entry of stored objects into the ledger
2.Name indication
3.Maximum quantity of dangerous objects that can be held in the storehouse
4.Whether storage containers are free from damage and leakage.
5.Whether periodic inspections are conducted.
6.Whether protective devices are provided.
We also conducted an emergency drill assuming chemical substance leakage.

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Development of Environmentally Friendly Products
The research and development divisions evaluate the environmental impact of products, set targets and develop environmentallyfriendly products.
The Product Development Subcommittee under the environmental management system prepares environmental management plans,
and product developments are conducted based on medium- to long-term plans and annual plans.

CNC System

1.Reduction in power consumption
2.Minimizing down time
3.Hazardous chemical substance reduction

LASER

1.Reduction in material consumption
2.Reduction in power consumption
3.Hazardous chemical substance reduction

ROBOT

1.Reduction in number of service parts while extending product lifetime
2.Reduction in size and weight
3.Hazardous chemical substance reduction
4.Reduction in power consumption

ROBODRILL

1.Reduction in number of service parts while extending their product lifetime
2.Reduction in power consumption
3.Hazardous chemical substance reduction

ROBOSHOT

1.Reduction in number of service parts while extending their product lifetime
2.Reduction in power consumption
3.Hazardous chemical substance reduction

ROBOCUT

1.Reduction in number of service parts while extending their product lifetime
2.Environmental load reduction after disposal
3.Hazardous chemical substance reduction

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Climate Change
Responses to climate change
To achieve carbon neutrality, FANUC has set mid-term and long-term targets for reducing greenhouse gas (GHG)
emissions and is promoting efforts to achieve them.
Targets for reducing GHG emissions

FY2050 Target●Scope 1, 2 : Carbon neutral by FY2050

FY2030 Targets●Scope 1, 2 : 42% reduction by FY2030 (in comparison with FY2020)●Scope 3 : 1
 2.3% reduction of emissions due to the use of sold products by FY2030(in comparison with FY2020).

FANUC’s GHG emissions reduction targets have been certified by the SBT initiative.
FY2030 targets are certified by the SBT (Science Based Targets) initiative.

Regarding Scope 1 and 2, part of the power consumed in the FANUC Headquarters’ area,
Mibu factories and Tsukuba factories will be renewable electricity, and other sites will also
switch to using renewable electricity in the near future. Furthermore, solar panels will be set
up, and measures to save energy will be further accelerated to reduce GHG emissions
resulting from our business activities.

FANUC Headquarters

Mibu Factories

Regarding Category 11 (Use of sold products) of Scope 3, FANUC will contribute to reducing the emissions by enhancing ofenergy saving features of FA, ROBOT and ROBOMACHINE products.

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Climate Change

Promotion Framework
FANUC recognizes climate change as a critical business challenge.
At the “Sustainability Committee” chaired by the Representative Director, President, we will deliberate and make decisions onimportant policies and measures related to climate change, and report to the Board of Directors. Based on the reported content, theBoard of Directors will supervise to check whether identification of risks and opportunities, and measures related to climate change
are promoted appropriately.

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Climate Change

Disclosure in Accordance with TCFD Recommendations
Since the adoption at COP21 (21st Conference of the Parties to the United Nations Framework Convention on Climate Change) of
the Paris Agreement, movement towards a de-carbonized society is spreading. FANUC Group with its business activities expandingaround the world promotes these initiatives as we recognize climate change as a critical business challenge.
In the meantime, FANUC expressed its support for the Task-Force on Climate-related Financial Disclosures and its recommendations(hereafter, TCFD recommendations) in December 2021.
Further, we would like to utilize the framework of TCFD recommendations, and continue enhancing the quality and amount of
disclosures to promote climate change initiatives still further, and contribute to achieving a sustainable society.

Governance
FANUC recognizes climate change as a critical business challenge.
At the “Sustainability Committee” chaired by the Representative Director, President, we will deliberate and make decisions onimportant policies and measures related to climate change, and report to the Board of Directors. Based on the reported content, theBoard of Directors will supervise to check whether identification of risks and opportunities, and measures related to climate change
are promoted appropriately.

Strategy
FANUC conducted a scenario analysis targeting mid-term (2030) and long-term (2050) with a 1.5°C scenario, 2°C scenario, and 4°C
scenario on the FA business, Robot business, and Robomachine business to identify the risks and opportunities related to climatechange, and to check how these will impact FANUC Group businesses. Regarding the scenario analysis, we referred to IEA NZE,IPCC RCP1.9, etc., for 1.5°C, IEA SDS, IPCC RCP2.6, etc., for 2°C, and IEA STEPS, IPCC RCP8.5, etc., for 4°C. For each scenario,
we identified the risks and opportunities related to climate change, and quantitatively and qualitatively examined and evaluated theimpact on the business.
Among these, we identified the following risks that will have a significant impact on the businesses: “Increase in costs due tointroduction of carbon tax,” “Increase in costs due to the rise in raw material prices,” and “Decrease in demand for a part of FANUC
products due to the consumer behavior change and shift to EV⁄FCV.” We also identified the following opportunities: “Increase indemands for FANUC products due to energy-saving and robotization,” and “Increase in demands for FANUC products due to the shift
to EV⁄FCV.”

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In the 1.5°C and 2°C scenario, the world is expected to undergo major social changes as it transitions to de-carbonization. There isa possibility for costs to increase due to the introduction of carbon taxes and rise in raw material prices, but we believe that we can
expand the FA business, Robot business, and Robomachine business as energy-saving⁄robotization, and that the shift to EV⁄FCV will
expand. The 4°C scenario does not promote low carbonization, and increasing severity of natural disasters will be expected due toclimate change, such as increases in average temperature. This creates a potential increase in recovery costs as production sites,
etc., will be damaged, having a negative impact on production. For these reasons, we will continue to promote the support of ourbusiness continuity plan (BCP), and deal with physical risks.
The findings of the scenario analysis on FA business, Robot business and Robomachine business rated these businesses as highly
resilient in all scenarios used for the analysis. We will further promote initiatives in order to meet the challenges of identified risks andrealize these opportunities in the future.

Risk Management
To address risks that may hinder the continuity of our business, the enhancement of our corporate value, or the sustainable
development of our corporate activities, FANUC has established a Risk Management Committee and risk management policies, andwe are conducting appropriate risk management under the supervision of the Board of Directors. The risks of climate change will also
be placed in the rules, and managed.

Metrics and Targets
The FANUC Group’s greenhouse gas (GHG) emissions in FY2021 (Scope 1, 2 and 3) are as follows:＊Regarding the third-party verification report on GHG emissions (Scope 1, 2 and 3), please see here.
FANUC has set up a long-term target of reducing GHG emissions from the business activities of FANUC Group (Scope 1, 2) to zero
by FY2050. To achieve this long-term target, we have set a mid-term target of 42% reduction of the same emissions by FY2030 (incomparison with FY2020). Regarding Scope 3, we aim for 12.3% reduction of emissions due to the use of sold products(Category 11)
by FY2030 (in comparison with FY2020). These mid-term targets are certified by the SBT (Science Based Targets) initiative.
Scope 1 and 2 for FY2021 were 5.7% lower than the base year.
The main reason is that a part of the electricity used in the Headquarters area, the Mibu Factories, Tsukuba Factories, etc. wasswitched to electricity derived from renewable energy sources. We plan to install and operate solar panels in the Headquarters area
and the Mibu area in FY2022, aiming for further emission reductions.
In FY2021, emissions due to the use of sold products for Scope 3 (Category 11) were 42.2% higher than the base year. This was
mainly due to a significant increase in the sales of our products. We will continue to aim for emission reductions by further improving
the energy-saving performance of our FA, ROBOT, and ROBOMACHINE products.

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Climate Change

Initiatives
Product Initiatives (Energy-savings)
FANUC is promoting energy saving in its products. There are two important initiatives, one is to conserve energy at our customers’
factories using our products. The other is also to conserve the energy in our own factories. Considering the life cycle of FANUC
products, the first initiative has a far greater effect on energy-savings. Therefore, we have long been working on developing energyefficient products.

Development of large-capacity servo
motorsWe have developed a high-precision, high-efﬁciency, large-capacity servo motor fully
utilizing our advanced digital control system.
In the ﬁeld of industrial machines, including press machines, which require tremendous
power, we have realized energy saving by introducing this large-capacity servo motor inplace of hydraulic pressure.

Adoption of power supply
regeneration system

In the servo ampliﬁer, we use a power supply regeneration system that returns energy
to the power supply when the motor decelerates. This effective use of the power supply
leads to energy savings. When mounted on a ROBODRILL, it reduces energy consumption
by approximately 35% compared with the resistance-regeneration method. Furthermore,
the adoption of new power devices has continuously reduced energy loss of the servo
amplifier. It is reduced by maximum 28% compared to that in 1995.

Power consumption monitoring
function

Through the power-consumption-monitoring function, we have made it possible tomonitor the amount of power consumed by our CNC systems, enabling the efﬁcientadjustment of the cycle time. In addition, CO2 emissions can also be displayed.
By using the energy-saving level-selection function, we have made it possible to choose
the type of operation: one that prioritizes cycle time and one that prioritizes power
consumption.
When there are differences in cycle times in the production line, in case fast processing is
not necessary, choosing the power consumption priority operation contributes to energy
savings for the entire factory.

Fast Cycle-time Technology

This series of functions reduces cycle time. Reducing operating time contributes toreductions of energy consumption by peripheral equipment, such as a coolant pump.

Averaging the load of power demandNight operation using robots disperses peak power and curbs power consumption.

Reducing CO2 emissions by reducing
weight

The design of the robot mechanical arms with lighter weight also reduces power
consumption. For the robots with a payload of 165 kg, the Robot S-430iW in 1997
weighed 1,300 kg while the Robot R-2000iC/165F in 2013 is lighter with weight of 1,190kg.
In addition, the collaborative robot CRX has a robot mass of 40 kg with a payload of 10kg, which is considerably lighter than the robot mass of 150 kg common to robots in thesame class thus far, and reduces power consumption.
Even the LR-10iA/10 fully enclosed handling robots are more than 1/3 lighter thanconventional robots with the same 10 kg payload, and consume 30% to 40% less power.

Optimal operating program

By optimizing the operating program with ROBOGUIDE, power consumption is reduced
and the lifetime of the reducer is extended to reduce running costs.

Efﬁcient robot utilization

Use of an autonomously moving, Automatic Guided Vehicle (AGV) with collaborative
robots allows a single robot to work in multiple locations, improving the efﬁciency ofrobots. This reduces standby power, compared with installing multiple robots.
In addition, the latest model of the collaborative robot CRX has a very light robot mass of
40 kg, and the AGV can also be made compact. Furthermore, the CRX can be moved ona handcart instead of on an AGV, making it possible to move the robot to the place where
and when it is needed.

Instruction operation panel backlight
automatically turns off

Reduces power consumption by automatically turning off the backlight of the LCD screenon the robot’s teaching operation panel when no operation is performed for a certain
period of time.

Energy-saving design

We have developed a new type of heavy payload robot, M-1000iA, with a serial linkmechanism that is compact and has a wide motion range. Using the latest structural
analysis, the M-1000iA has the necessary strength and rigidity while making extensive useof curved surfaces, at the same time, saving energy through the use of arms designed tobe lightweight and power regeneration that reuses the robot’s deceleration energy.

Highly reliable automatic wire feeding(AWF3)ROBOCUT is capable of unmanned operation for long periods, thanks to the highly
reliable automatic wire feeding AWF3, which can automatically recover feeding evenwhen a wire is accidentally cut and disconnected. Stable night-time machine operation
disperses peak power usage and curbs power consumption.

Discharge control iPulse3

With ROBOCUTs, our newly developed discharge control iPulse3 reduces machining timeby approximately 10% compared to that of conventional control. Reduced machining time
curbs power consumption.

Electriﬁcation of peripheral equipment

Additional axis options for ROBOSHOT can electrify hydraulically controlled peripheral
equipment.

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Awards and Topics on Energy Saving
ROBOSHOTs and ROBODRILLs became eligible for a subsidy for business expenses
supporting promotion of advanced energy-saving investments, allocated in the
FY2022 supplementary budgets in recognition of their energy-saving potential. (2022)
ROBODRILL α-DiB Plus Series
ROBODRILL α-DiBADV Plus Series
ROBOSHOT α-SiA, α-SiB Series

Eligible for a subsidy in 2022 for ESG lease promotion business for the establishmentof a decarbonized society (2022)
ROBOSHOT α-SiA, α-SiB Series

ROBODRILLs and ROBOSHOTs became eligible for a subsidy for business expenses
supporting promotion of advanced energy-saving investments, allocated in the
FY2021 supplementary budgets in recognition of their energy-saving potential. (2021)
ROBODRILL α-DiB Plus Series
ROBODRILL α-DiBADV Plus Series
ROBOSHOT α-SiA, α-SiB Series

ROBODRILLs and ROBOSHOTs became eligible for a subsidy for business expenses
supporting businesses rationalizing energy use in production equipment, allocated in the
FY2019 supplementary budgets in recognition of their energy saving potential. (2020)
ROBODRILL α-DiB Series
ROBODRILL α-DiBADV Series
ROBOSHOT α-SiA Series

Approved for subsidies for the introduction of energy-saving equipment for local
factories and small- and medium-sized enterprises (2014)
ROBOCUT α-CiA Series

Prize of the Director General of Agency of the Natural Resources and Energy, Excellent
Energy Saving Device Award Program by the Japan Machinery Federation (2003)
For our large-capacity servo system with a power regeneration feature and precision digital control and for our large-size AC Servo
Motor αi Series

The Minister Award of the Ministry of International Trade and Industry, Excellent
Energy Saving Device Award Program by the Japan Machinery Federation (1999)
Digital servo system using phase control regeneration and cycle time reduction, AC Servo Motor α Series

The Minister Award of the Ministry of International Trade and Industry, Excellent
Energy Saving Device Award Program by the Japan Machinery Federation (1998)
For our wire-cut electric discharge machines equipped with a high-speed automatic wire feeding mechanism and thick plate tracking
control
ROBOCUT α Series

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The Minister Awards of the Ministry of International Trade and Industry, Excellent
Energy Saving Device Award Program by the Japan Machinery Federation (1995)
ROBOSHOT Series

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Production Initiatives
FANUC contributes to energy-savings in our manufacturing facilities.

Streamlining the assembly process

At the Hayato Factory (Kagoshima Prefecture), cleaning was previously carried out using
an ultrasonic cleaning device during the assembly process of ﬂexible cables. However,this process was eliminated by reconsidering the necessity of cleaning in order to reduce
annual power consumption (by 158,976 kWh).
With Wire Electrical-Discharge Machine (small and medium size), we have achieved great
results in reducing assembly man-hours by sharing parts and making significant designchanges such as harness unitization through repeated prototyping and design reviews.

Introduction of cogeneration system

We have introduced cogeneration systems at our Mibu Factory (Tochigi Prefecture) andTsukuba Factory (Ibaraki Prefecture) to actively utilize waste heat. They have contributed
to reduce the amount of electricity purchased and fuel consumption used for gas-ﬁred
cold/hot water generators, which eventually reduce CO2 emissions.
The estimated annual CO2 emissions reduction by the cogeneration system in FY2021
is 1,298 tCO2e at the Mibu Factory (Tochigi Prefecture) and 739 tCO2e at the Tsukuba
Factory (Ibaraki Prefecture).

Consideration for the environment byswitching to city gas

By switching the fuel from kerosene and LPG to city gas,
we are continuously aiming to reduce CO2 emissions, andeventually to promote our BCP. At the same time, we havebeen working to eliminate kerosene tanks during this transitionin order to reduce the risk of soil contamination. The conversionof the plant to city gas was completed in April 2022.
Moreover, in the headquarters area, turbo chillers and aircooled chillers were replaced with city gas-powered chillers
and hot- and chilled-water generators.

Prevention of compressed air piping
leakage

Preventing leakage of compressed air piping reduces the load on the compressor andreduces electricity waste.

Reduction of loss due to spoilage

As a result of promoting activities to reduce loss due to spoilage by prioritizing parts
with high cost of loss due to spoilage, monthly loss due to spoilage was reduced, greatly
contributing to the improvement of management efficiency.

Zero “rust” of machined products

We achieved zero “rust” of machined products in FY2021 by examining cutting materials
and utilizing rust-preventive agents.

Reduction of power used for lighting
in the workplace

As a measure to reduce power consumption of lighting in the workplace, lighting at thepainting robot site was always switched off and only turned on when in use. In addition,lighting in utilities (restrooms, compressor room, and boiler room) was switched to lightingthat is compatible with motion sensors.

Reduction of power consumption
in aluminum smelting and holding
furnaces

At the Mibu Mold Factory, an insulating jacket is installed on the aluminum smelting
and holding furnace used in the die-casting facility to reduce power consumption by
suppressing heat radiation. Over the years, the factory has also been contributing to theprevention of heat stroke and burns among workers and the reduction of air-conditioning
load.

Logistics Initiatives
FANUC contributes to saving energy required for manufacturing products.

Use of truck return trips

The trucks that deliver CNC systems to machine tool builders in Japan are normally empty
on their return trips. We are notifying suppliers of the availability of such empty trucks
so that they can use them for parts deliveries, thereby improving the efﬁciency of truck
operations (reducing the number of trucks) and reducing CO2 emissions.

Container packing at our factories

In the past CNC systems for export were transported by truck from FANUC to a port
warehouse, and were packed into containers in a port area. We have changed theprocedure and have installed equipment to ship containers from FANUC factories, so thatthey can be sent directly to the packing area. This has made it possible to reduce thenumber of trucks by improving the container loading rate and by replacing trucks withtrailers, which have a larger loading capacity.

Improving on-site logistics efﬁciency

Local roads surrounding our Headquarters area used to be congested by trucks toaccommodate on-site logistics among the many factory buildings. By improving private
on-site roads, we have reduced the use of the local roads, secured trafﬁc routes, andfacilitated logistics. In the Mibu Factory, all factories are connected by conveyors,
eliminating truck-based transportation within the premises. Tsukuba Factory has eliminatedthe use of trucks for transport within its premises by increasing the size of the building,and connecting all robot production processes by conveyors within the same building.
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Initiatives at Non-production Sites
Installation of solar power generationequipment

Solar power generation equipment has been installed in some of the buildings in the
Headquarters area. In FY2021, a total of 38.69 MWh was generated from solar power. We
are also planning to install new solar power generation facilities in the Headquarters area
and at the Mibu Factory.

LED lighting

We have converted mercury lamps and general-purpose
ﬂuorescent lamps (used in our factories and ofﬁces) toLEDs, and also replaced ceiling lights, guidance lights,
and emergency lights with LED lighting. In addition to
the use of LEDs, motion detectors have been installed
in areas where people are not always present, such as
corridors and toilets, in order to prevent unnecessary
lighting.
In the Mibu Factory office, the room is divided into 38
sections, and we use motion and light intensity sensors
to prevent unnecessary lighting.
The outside lights at the Tsukuba Factory were switched to LEDs.

Cogeneration system

We have introduced a cogeneration system in the Headquarters area, using waste heat
for the welfare facilities in company housing and dormitories, as well as for the hot watersupply and heating at FANUC ACADEMY.
In FY2021, the estimated annual CO2 reduction from the cogeneration system was
1,475tCO2e.

Building renewal

At the Osaka Branch, we have renovated the entire building, with only the framework
left in place, and introduced energy saving air conditioners, LED lighting, and motion
detectors. We have reduced air conditioning power consumption by 60% and total power
consumption by 40%.

Demand response

In response to a request from the power supply company, we conduct, so-called
Negawatt Transactions, to reduce power consumption when the power supply anddemand are expected to be tight.

IT infrastructure

By turning off PC monitors during breaks, estimated annual power savings is expected tototal 28,800 kWh.

Enhancement of building insulation

To reduce the amount of energy used for heating and cooling, we have introduced
various measures to enhance insulation, such as external and internal insulation, doublewall (double-skin) construction for external walls, condensation-proofing, and the use of
double-glazed windows. Double-skin walls have been adopted in the parts center buildingof the Hino Branch and in the Nagoya Service Center.
For company housing built in 2017 or later, we are working to build facilities with the aimof obtaining a rating of B+ to A (self-assessed) in the Comprehensive Assessment System
for Built Environment Efficiency (CASBEE), by actively introducing external insulation anddouble-glazed windows.

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Climate Change

Collaboration with Stakeholders
Collaboration with suppliers

We collect information on climate change from a total of 12 companies, composed oftwo manufacturing subsidiaries and 10 of our partner suppliers, whose sales to FANUC
exceed 30%. We survey suppliers regarding speciﬁc items such as volumes of fossil
fuel consumption, electricity consumption, and industrial waste, and provide advice asneeded.
In FY2021, we confirmed that there were no serious problems or risks, and that they arecontinuing to work on energy conservation.

Collaboration with customers

We conduct training for our customers in our training facility, FANUC ACADEMY, to explain
the beneﬁt of energy saving to be achieved by using our products.
Through this training, we also explain how to operate each product, drawing thecustomers’ attention to energy conservation.

Collaboration with industry
associations

We have participated in the deliberations of the Japan Machine Tool Builders’
Association, the Japan Robot Association, and the Japan Society of Industrial Machinery
Manufacturers to encourage setting of the industry target. Through these associations,
we are making proposals to and cooperating with the Ministry of the Environment and theMinistry of Economy, Trade and Industry on climate change.

Collaboration with local communities
and society

In response to the Tokyo Cap-and-Trade Program, which is part of the Tokyo Metropolitan
Government’s climate change strategy, the Hino Branch changed its boiler fuel fromkerosene to city gas in March 2006. As a result, 2,791 tons of excess reductions had beenregistered with the Tokyo Metropolitan Government by 2016.

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Resources and Waste
Basic Approach
Under the vision of “leaving nature and resources to posterity,” FANUC promotes the efﬁcient use of resources, and proper disposal
and reduction of waste.We provide lifetime maintenance to its products as long as they are used by customers. As our customers do
not need to discard older used products or purchase new models due to such maintenance service, they will eventually reduce wastes
and enjoy effective use of resources.
In addition, we reduce waste and make effective use of resources in every aspect of our business activities, including productdevelopment, packaging and reuse of materials, as well as thoroughly managing the use of chemical substances.

Promotion Framework
FANUC recognizes addressing resource and waste management as an important issue, with the President and CEO designated as the
person responsible for the related initiatives.
Important subjects relating to this management are discussed in our environmental management promotion and environmental
management system.
Environmental Management Promotion

Thorough Management of Chemical Substances
FANUC uses chemical substances as raw materials in production process, but we are working to reduce the use of substances to theabsolute minimum.
To ensure that our customers around the world can safely use FANUC products, we are working to comply with chemical substancemanagement regulations in each country and region, and even voluntarily comply with stricter regulations.
FANUC conducts surveys of its business partners regarding their response to the RoHS Directive, U.S. TSCA Regulations, andsubstances newly added to the Substances of Very High Concern (SVHC) list under the REACH Regulation that are contained in theirproducts.

Monitoring and managing PRTR
chemical substances

We have reduced our use of chemical substances in accordance with the PRTR Act.
As our measures have proven to be effective and the amount that can be reduced has
become limited, since 2016, we have calculated the usage in proportion to production,rather than to the absolute amount.

Conforming with RoHS Directive

Even though FANUC products are not subject to the RoHS Directive (Directive on the
Restriction of the Use of Certain Hazardous Substances in Electrical Equipment), FANUC
is voluntarily working to eliminate the use of hazardous substances. In new designs, allmaterials, including auxiliary materials used in manufacturing, are below the thresholddictated in the RoHS2 Directive, and we are in the process of replacing parts in existing
designs.

Product Initiatives

Lifetime maintenance

Even for discontinued models, we provide lifetime maintenance as long as they are usedby customers. As a result, FANUC products can be used at economical cost for several
decades, and therefore generate minimum waste.
Lifetime maintenance

ROBOSHOT’s high molding performance reduces plastic molding defects, and its function
to support the automation of production setup will reduce downtime between production
Beneﬁts of high-performance products lots, and reduces losses of materials. In addition, we will help reduce the amount of plastic
waste by increasing the yield rate when using recycled materials from plastic scraps andwaste.

By designing products in small size,
we reduce weight and number ofcomponents

We have reduced the use of resources by designing products in small sizes and withfewer components.
We apply modular designs to standardize parts, thereby reducing the variety of procured
components, as well as maintenance components.

Proper maintenanceGrease and oil can be replaced at the most appropriate time with the intelligent greasechange reminder function, reducing the amount of grease and oil waste.

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Resources and Waste

Production Initiatives
Reducing failure rate

We have made efforts to optimize solder printing settings and to reduce scratch defects. It
has improved the failure rate of CNC equipment from 0.0073 to 0.0066 per unit.

Changing our casting method

By changing the casting method of the arm of high-performance ROBODRILLs from awooden die to a metal die, we have reduced cutting expenses. This has also reduced thecycle time (per machine) from 18 minutes to 16 minutes.

Initiatives in Packaging Materials
In transporting products in containers directly from a port to a warehouse, we used
to pack ROBOTs and ROBOMACHINEs in steel cases. However, we are now able toSigniﬁcant reduction in the use of steel
signiﬁcantly reduce the use of steel cases by using the containers as the packing cases.
cases
It means that we are directly packing ROBOTs and ROBOMACHINEs onto steel skids asmuch as possible.

Reducing weight and increasing
density

We have changed the shipping packaging of SCARA Robots from steel skids to cardboard
packaging to improve transport efﬁciency.
We also introduced recyclable cardboard packaging for the new collaborative robot CRX.
The new Genkotsu robot model has a more compact cargo form by removing some of
the links, which significantly reduces the amount of steel required to transport the robot
compared to previous models. Tier stacking is now also possible, thereby improving
transportation efficiency.

Saving resources

We have changed the shape of steel skids used in transporting, while maintaining theirstrength, to reduce the amount of steel used.

Reducing use of cardboard

We have stopped using cardboard in the delivery of eyebolts from suppliers, andintroduced reusable mesh pallets. This has led to an estimated annual waste reduction(paper waste) of 120 kg.

Adopting reusable shipping boxes

We have stopped using packing materials in the delivery of sheet metal covers, andadopted reusable shipping boxes with interior padding. This has led to an estimatedannual waste reduction (paper waste) of 99.6 kg.

Initiatives for Reuse

Transport packaging, pallets

We have changed shapes of the cardboard (boxes used in delivering CNC systems tomachine tool builders in Japan) to be reusable and by arranging delivery trucks to collectthe empty cardboard boxes to inspect them and repair for reuse.
We also send the steel skids, which are the packing material used when importing
castings, back to the foundry for reuse.

Waste liquid

We reduce the amount of waste liquid from machine tools by using waste-liquid-recycling
devices. This has resulted in an estimated annual reduction of waste liquid of 852 t.
At our Headquarters Factories, Tsukuba Factory, and Mibu Factory, we are promoting the
reduction of waste liquid by using long-life cutting ﬂuids.
In addition, at our Headquarters Factories and Tsukuba Factory, we are reducing waste
liquid by reusing the cutting ﬂuid adhered to chips (metal chips) generated duringmachining.
Die-casting factories in Headquarters and Mibu are promoting the reduction of waste
liquid by using mold release materials.

Chips and cutting tools

We hand over chips produced during cutting at our factories, as well as cutting tools thathave become unusable due to heavy wear to recyclers, so that they can be reused as raw
materials.

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Resources and Waste

Initiatives in Offices
Reduction of paper consumption

We reduce the use of paper by digitizing company documents.

LED lighting

We promote the use of LED lighting, which does not use the mercury, lead, or cadmium
contained in ﬂuorescent lamps, etc., thereby facilitating reduction in disposal of lighting.

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WaterBasic Approach
FANUC Headquarters is located in the rich natural environment adjacent to the Fuji-Hakone-Izu National Park, and we use the clean
and abundant groundwater of Mt. Fuji as a water source. The groundwater pumped from 80 meters below is stable in terms of bothvolume and quality throughout the year. We can say that FANUC is blessed with water resources, and has almost no risk of water
shortages.
However, we are well conscious of the fact that, there are water shortages in other parts of the world, and the United Nations
Environment Programme has reported that water shortages will become even more severe in some regions by 2025.
FANUC, therefore is working to conserve water resources, such as through daily water recycling, efﬂuent puriﬁcation treatment, andwater quality management. In order to discharge higher quality wastewater, we comply with regulated amounts of water pollutants.

Promotion Framework
FANUC recognizes addressing the conservation of water resourcesr as an important issue, with the President and CEO designated as
the person responsible for the related initiatives.
Important subjects relating to these resource conservation issues are discussed in our environmental management promotion andenvironmental management system.
Environmental Management Promotion

Initiatives in the Headquarters Area
25 factories are located in FANUC Headquarters, all of which use groundwater when required for production. In addition, our factories
reuse the water they have used for production for cooling and other purposes. When discharging sewage, we conduct partial purification
to adjust the pH value, striving to ensure high effluent standards.

Reusing Water
Cyclical use of cooling water

We circulate and reuse the cooling water that is used to cool the production equipment in
the die-cast factory at the Headquarters area.

Reusing wastewaterIn our ROBOT factory No. 1 at the Headquarters area, 92% of wastewater is reused byutilizing oil-water separators.
In our servo motor parts machining factories No. 1 and 2 at the Headquarters area, wereuse 19% of wastewater by making full use of distillation and regeneration equipment. In
the future, our new factory (servo motor parts machining factory No.3) is expected to beable to reuse nearly 90% of wastewater by increasing the efﬁciency of wastewater use.

Reusing machining liquid

In our ROBOCUT factory at the Headquarters area, we plan to introduce a new machining
liquid tank dedicated to testing, in order to enable 90% reuse of the machining liquid (water)
for testing during manufacturing.

Collaboration with Suppliers
Because water resources are used by our suppliers in the process of cooling castings and by our customers in the process of using
our products, indirect use of water resources is also an important issue.
FANUC, therefore, are asking suppliers to adopt our CSR Procurement Policy, and to promote the efﬁcient use and cyclical use ofwater resources.
A total of twelve companies, namely two manufacturing subsidiaries and ten suppliers whose sales to FANUC account for more than
30% of their total sales, are surveyed once a year on specific matters such as water consumption and water emissions. The results
are then quantified for evaluation, based on which risks are identified and assessed. We select the top three companies that are
defined as significant, set specific goals for reducing the environmental load of their production, and encourage them to take steps
toward those goals. In the event of significant changes in the numbers, we check the reasons for those changes and provide advice,
as necessary.

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Biodiversity
Basic Approach
Following on our basic vision of “leaving nature and resources to posterity.” FANUC is striving to maintain biodiversity, by preserving
the stunning natural environment of 1.78 million square meters in which our Headquarters is located, adjacent to the Fuji-Hakone-Izu
National Park.
Our Headquarters area is home to a variety of trees including native forests, as well as artiﬁcially planted Japanese larches and red
pines, making it a treasure trove of wild birds, plants, and ﬂowers. We will continue to take care of the forests and plant new trees, inorder to protect the richness of the land around Mt. Fuji, a World Heritage Site.

Forest Conservation Activities
FANUC Headquarters is located in a stunning natural environment neighboring the Fuji-Hakone-Izu National Park. While the greening
rate is speciﬁed in this area, we are striving to create a FANUC Forest that is more abundant than the designated greening rate. We
maintain our forest on a daily basis, and as a result, the trees and ﬂowers adorn the changing seasons, various wild birds and othersmall animals can be seen here.
When constructing factories and other buildings, we select locations with as few trees as possible, in order to minimize deforestation.
Furthermore, our use of land takes advantage of the natural terrain, and we make plans that maximize conservation of theenvironment, such as by ensuring that the heights of buildings do not exceed the height of the surrounding trees.
Since parking lots require large areas of ﬂat land, we are currently building multilevel parking lots in order to maintain the greening
rate. In the construction of parking lots started in 2016, we have completed seven parking lots, comprising a total of 92,250 square
meters of ﬂoor space and 3,393 parking spaces as of 2019. These multilevel parking lots have preserved 65,300 square meters ofgreen space.

100-year Forest Restoration Plan
Demand for timber during the wartime regime and the period of rapid economic growth encouraged the planting of conifers, so mosttree plantations are now coniferous. Parts of our Headquarters are also coniferous forests that were artiﬁcially planted. Our basic
policy for green space management in the FANUC Headquarters is to convert these existing planted coniferous forests into a broadleaved forest, which is the original vegetation suited to this area, over the long-term. The current coniferous forests have been planted
for many years with fast-growing red pines, larches and ﬁrs, etc., which are used as sand protection forests and to satisfy demand fortimber. Our aim is to convert these artiﬁcially planted coniferous forests into rich forests where small birds and animals can coexist,
by changing them into evergreen broad-leaved trees and broad-leaved forests suitable for the surrounding natural vegetation thatblossom, bear fruit, and drop leaves.
In order to steadily achieve this goal, FANUC is cooperating with the Yamanashi Forestry and Forest Products Research Institute. We
began implementing our plan to regenerate a forest that is suitable for the natural ecosystem of the area in 2015, and have planted
trees since 2016. Because it is difﬁcult for the trees to survive, we are engaging in the effort over the long term.
Since 2021, the overgrown tall trees in the forest have made it difficult to secure sunlight to low, and medium-sized hardwoods andother trees, so we have been thinning the tall coniferous trees as needed.

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Forest That Absorbs CO2
Currently, the coniferous forest on the premises of the FANUC Headquarters is densely packed with trees, making it difficult for the
sun’s rays to reach the forest interior. This means that new young trees receive insufficient exposure to sunlight. With such a highdensity of tall trees, it will become increasingly difficult for the coniferous forest to perform its inherent function as a forest. To prevent
soil degradation and maintain the forest’s abundance, FANUC aims for creating a forest that can absorb more CO2. It will achieve thisaim by thinning trees to ensure appropriate tree density and deliver sunlight to the forest interior.
As stated in the 100-year Forest Restoration Plan, because the existing forest was artificially planted with a single species ofconiferous tree, we are making efforts to convert it into a mixed-species forest that includes native trees and to change gradually
to original vegetation of this area. We are pursuing a plan to replant mainly evergreen broad-leaved trees (e.g., Japanese pieris andlongstalk holly, which grow even well on high ground), as well as cultivating deciduous broad-leaved trees that bear fruit, to create a
habitat for small animals.

Conservation of Waterside Organisms
The FANUC Headquarters area has eight regulating ponds of various sizes that serve as temporary rainwater storage. Water isretained constantly in seven of these ponds and various species of waterweed, such as common reeds, blood irises, sweet flags, andskunk cabbage, are planted and protected to purify the water and create a habitat for waterside organisms. Weeding management of
the ponds is conducted annually from the end of November to early December.
All regulating ponds are also weeded in summer and autumn, and the drainage outlets are managed as needed. Other works, such as
status checking, inspection, repair, and cleaning are performed after typhoons and heavy rainfall.

Conservation of Rare Plant Species
In the premises of our Mibu Factory in Tochigi Prefecture, the rare plant Lecanorchis suginoana, which appears in the Red Data Book
Tochigi 2018, compiled by Tochigi Prefecture, has been found growing. The entire area can be said to constitute a valuable naturalenvironment.
FANUC complies with environmental laws and regulations, and cooperates with the environmental surveys conducted by Tochigi
Prefecture.
In the Headquarters area, in the spring of 2023 we plan to transplant Japanese cypripedium, which is listed as an endangered species
II on the Red List by the Ministry of the Environment, to avoid any impact from the construction work.

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Sustainability Report 2022

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Governance
FANUC recognizes that a company will last forever and be sound with “strict preciseness” and the corruption of an organization anddownfall of a company start from a lack of “transparency.” Based on this basic principle of “strict preciseness” and “transparency,”
FANUC has established a system and is endeavoring to achieve sustainable growth as a company, while striving to earn trust of
stakeholders, including customers, employees, shareholders, suppliers, and local communities.

Policies�

FANUC Code of Conduct�Corporate Governance Guidelines� Information Security Policy
� Anti-Bribery Policy
� Tax Policy� Guidelines for Restricting Contact with Competitors

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Corporate Governance
Basic Approach
FANUC has always worked on enhancing corporate governance based on our Basic Principles of “Strict Preciseness” and“Transparency.” As we proceed in separating our supervisory and executive functions, in order to further strengthen the supervisory
functions of the Board of Directors and speed up management decisions, we transitioned to a company with an Audit and Supervisory
Committee, that allows us to establish an Audit and Supervisory Committee consisting of the Directors who are Audit and Supervisory
Committee Members and to expand the delegation of decision-making authority for business execution from the Board of Directors to
Directors. Thus, we are further endeavoring to enhance corporate governance and increase corporate value.
In addition, FANUC has established the Nomination and Remuneration Committee, a majority of which comprises Independent
Outside Directors, and is chaired by an Independent Outside Director. By increasing the objectivity and transparency of theappointment and evaluation of Directors, this committee ensures the strict preciseness and transparency of supervisory functions tomanagement.

Promotion Framework and Initiatives
� As a company with an Audit and Supervisory Committee, we have separated the Board of Directors (supervisory function) from the
management side (executive function) to maintain the independence of each.
� The ratio of Outside Directors and the diversity ratio of the Board of Directors are as follows.

� Three of the five Audit and Supervisory Committee Members are Outside Audit and Supervisory Committee Members, one of whom
is a woman.
� We continue to periodically review the contents of the Board of Directors and the Audit & Supervisory Committee from theperspectives of whether the independence of the Board of Directors and management is maintained, whether the effects of diversity
are evident, and whether discussions in the Board of Directors and the Audit & Supervisory Committee are active, and make
improvements as necessary.

Nomination and Remuneration Committee
With respect to appointment and dismissal and remuneration, etc. of Directors, we have established the Nomination andRemuneration Committee, the majority of which is composed of Independent Outside Directors, and chaired by an Independent
Outside Director, to secure the objectivity and transparency, etc. of procedures through consultations by this Committee.

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Analysis and Evaluation of Board of Directors Effectiveness1. Efforts to Improve EffectivenessTo ensure effective good governance, we adhere to our basic principles of “Strict Preciseness” and “Transparency.” We conduct anannual survey of directors to assess Board of Directors effectiveness, and establish opportunities for the exchange of such opinions
in a timely manner. Furthermore, we maintain a system that incorporates directors’ opinions and evaluations in the Corporate
Governance Guidelines when advisable, and put these results into practice.
2. Evaluation Methods
To evaluate Board of Directors effectiveness, in October, 2021 we conducted a questionnaire survey of all directors who are membersof the Board of Directors. In order to increase transparency and evaluate effectiveness from rigorous and multifaceted perspectives,
we employed an external organization to design the survey and to analyze and evaluate the results. The survey sought to determine
whether the Board of Directors was able to function effectively when making important decisions and overseeing significant matterssuch as the composition of the Board of Directors, its operations, and management strategy, given our transition to a company guided
by an Audit and Supervisory Committee in June 2021 and revision of the Corporate Governance Code.
3. Evaluation Results Summary
Our Board of Directors was highly praised for its diversity in terms of gender, nationality, work experience and other factors, and for
its fostering an environment that encourages the free and open exchange of opinions and facilitates the examination of issues frommultiple perspectives. On the other hand, the evaluation results pointed to a need for more comprehensive discussions on ways
to further develop human resources, to further promote sustainable corporate growth. The FANUC Board of Directors will continue
striving to improve its effectiveness.

Directors’ Remuneration(1) Matters concerning the Policy for Determining the Details of Remunerations for Individual Directors
The Company has established a policy for determining the details of remunerations for individual Directors (excluding the Directors
who are Audit and Supervisory Committee Members; the same applies hereinafter in this paragraph) (hereinafter, “Policy”) in place as
outlined below. (Resolved at a meeting of the Company’s Board of Directors held on June 24, 2021)
� Fixed remunerations shall be determined according to the position of each Director.
� Performance-based remunerations shall be linked to the current net income attributable to the shareholders of the parent company
as in the case of shareholder return in principle.
� Stock-based remuneration shall be provided as remuneration of restricted stock, taking various factors, such as the degree ofcontribution of the Director, into consideration in a comprehensive manner.
� Remuneration for Directors comprises fixed remuneration, performance-based remuneration and stock-based remuneration whose
ratios shall be set considering his/her position, responsibility, performance, etc., in a comprehensive manner.
� Remuneration of Outside Directors shall comprise fixed remuneration only.
The Policy shall be determined by a resolution of the Board of Directors.
As for remunerations for the Directors who are Audit and Supervisory Committee Members, the amount of remuneration for theindividual Directors who are Audit and Supervisory Committee Members shall be determined by consultation among the Directors
who are Audit and Supervisory Committee Members.

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(2) Matters concerning Resolution of Shareholders’ Meeting on Remunerations for the Directors
With respect to the aggregate amount of remunerations for the Directors (excluding the Directors who are the Audit and Supervisory
Committee Members), it was approved at the 52nd Ordinary General Meeting of Shareholders held on June 24, 2021 that it shall becapped at the sum of (a) the fixed remuneration limit and (b) the performance-based remuneration limit specified below. Further, it wasalso approved that, in addition to (a) and (b), (c)stock-based remuneration may be provided to the Directors except for the Outside
Directors.
� (a) Fixed remunerations of 800 million yen or less annually (including 100 million yen or less annually for the Outside Directors);
� (b) Performance-based remunerations of an amount equivalent to 0.7% or less of the current net income attributable to theshareholders of the parent company for the fiscal year immediately preceding the Meeting of Shareholders at which they areappointed or reappointed (but not exceeding an amount equivalent to three years of fixed remunerations);
� (c) The aggregate amount of monetary remuneration claims provided as stock-based remuneration (remuneration regarding
restricted stock, etc.) shall be 350 million yen or less annually. Total number of such restricted stocks allotted for each fiscal year
shall be capped at 28,000 shares.
As of the conclusion of the Ordinary General Meeting of Shareholders, the number of Directors (excluding the Directors who are the
Audit and Supervisory Committee Members) is six (6), and it is three (3) excluding the Outside Directors.
As for the aggregate amount of remunerations for the Directors who are the Audit and Supervisory Committee Members, it wasapproved at the 52nd Ordinary General Meeting of Shareholders held on June 24, 2021 to be capped at 200 million yen annually.
As of the conclusion of the Ordinary General Meeting of Shareholders, the number of Directors who are Audit and Supervisory
Committee Members is five (5).
(3) Matters concerning Determination on the Details of Remunerations for Individual Directors(excluding the Directors who are the Audit and Supervisory Committee Members)
When reviewing remuneration standards, the Company selects benchmark companies and also refers to remuneration standards thattakes into consideration results of surveys conducted by external third-party professional organizations. The Board of Directors thendetermines the details of the amount of remunerations for the Directors (excluding the Directors who are the Audit and Supervisory
Committee Members) after consultation with the Nomination and Remuneration Committee majority of which are independent Outside
Directors and chaired by an Outside Director. Since the amounts of remunerations for individual Directors are determined throughsuch procedures, the Board of Directors judges that their details are in line with the Policy.

Frequency of Board of Directors and Audit Committee Meetings
� In addition to the Board of Directors meets once a month in principle, it also meets as needed. (The Board of Directors held a totalof 12 meetings in FY2021)
� In FY2021, the Board of Corporate Auditors held two meetings prior to the transition to a company with an Audit and Supervisory
Committee on June 24, 2021. The Audit and Supervisory Committee met 11 times in the period from the transition to the last day of
the fiscal year.
� Attendance of individual Directors at meetings of the Board of Directors and other meetings is as follows.

Board of Directors
meetings

Audit & Supervisory Board meetings(Until June 24, 2021)

Audit and Supervisory Committee

Kenji Yamaguchi

12 of 12--

Yoshiharu Inaba

12 of 12--

Michael J. Cicco

12 of 12--

Kazuo Tsukuda

12 of 12--Masaharu Sumikawa 12 of 12

2 of 2-

Naoko Yamazaki

12 of 12--

Katsuo Kohari

12 of 122 of 211 of 11

Katsuya Mitsumura

12 of 122 of 211 of 11

Yasuo Imai

12 of 12-11 of 11

Hidetoshi Yokoi

11 of 121 of 211 of 11

Mieko Tomita

11 of 122 of 211 of 11

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Internal Control System
Basic Approach
Based on the FANUC Code of Conduct, which is derived from the basic principle of “Strict Preciseness” and “Transparency,” wehave established basic rules for compliance. In addition, we have established detailed rules for compliance and deployed theminternally through rules for an anti-corruption, the prevention of insider trading and the management of confidential information, theAntimonopoly Act, and rules for the protection of personal information, etc.

Promotion Framework and Initiatives
Whistleblowing System
FANUC has established a system under which officers and employees of FANUC and its domestic subsidiaries as well as otherstakeholders including suppliers, can make whistleblowing reports to FANUC’s internal and external contacts through hotlines.
In addition, FANUC has established a global whistleblowing system whereby officers and employees of overseas subsidiaries canmake whistleblowing reports directly to FANUC through an external point of contact.
In response to whistleblowing reports from both Japan and overseas, we strive to enhance the protection of whistleblowers (including
confidentiality of the contents of the whistle-blowing), so that they are not subjected to any disadvantageous treatment such as
retaliation including dismissal by the Whistleblowing System Operation Rules, etc.
Whistleblowing reports can be made anonymously at any time (24/7), and are available in multiple languages.

Risk Management
To address risks that may hinder the continuity of our business, the enhancement of our corporate value, or the sustainable developmentof our corporate activities, we have established a Risk Management Committee and risk management policies, and we are conducting
appropriate risk management under the supervision of the Board of Directors. Further, the Internal Audit Department, which reports
directly to the President and CEO, conducts internal audits of risk management.

Compliance
Issues related to compliance are discussed by the Compliance Committee, which is chaired by the Senior Executive Vice President,
and we have a system in place to ensure the important issues are reported to the Board of Directors and the President and CEO. In
addition, the Management Meeting, which mainly comprised of the executives of each business divisions, deliberates also on theseissues. Furthermore, the latest cases of whistleblowing are reported to the Board of Directors at least twice a year, so that adequate
deliberations are made on related compliance issues as necessary.
Further, the Internal Audit Department conducts business ethics audit including Anti-Bribery and Corruption at the FANUC
Headquarters and its subsidiaries in Japan and overseas on an annual basis.

Employee Awareness and Training
We post various policies and guidelines on our company-wide portal site, and we are working to foster compliance awareness throughawareness-raising and educating activities by providing various types of training.
In 2022, we conducted compliance training on whistleblowing system for FANUC officers and employees (including part-time
employees and contractors) based on the revised Whistleblower Protection Act.

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Information Security
Basic Approach
Under “Corporate Governance Guidelines,” “FANUC Code of Conduct,” “Privacy Policy,” FANUC protects important information
assets and makes efficient and effective use of them in compliance with laws and regulations, rules, contracts, and otherrequirements.

Promotion Framework
The Information Security Committee, under the leadership of the Chief Information Security Officer (CISO) and the Chief Information
Officer (CIO), was newly established in December 2019 as an information security system to control and manage information security
activities.

CSIRT/SOC System� Ensures the stable supply of our products and services to customers by giving instruction on how to promptly respond to
information security incidents caused by cyberattacks (analysis of the type of cyberattack/impact on business, interim/permanent
responses) and providing a swift resolution.
� Prevents information security incidents from occurring by collecting information on vulnerabilities, sharing such information within
the company, and understanding and controlling the status of response to vulnerabilities.

Establishment of PSIRTWe are currently working on the establishment of the FANUC PSIRT (Product Security Incident Response Team), which is designed to,as an engine for the realization of the Cyber/Physical Security Framework (CPSF) formulated by the Ministry of Economy, Trade andIndustry which we aim for, contribute to ensuring security of FANUC products by indicating how to prevent security risks in businessand promoting security activities involving customers and other stakeholders inside and outside the company in an efficient andsustainable way.
Vulnerability Information

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Initiatives
Recognizing that risks associated with cyberattacks and other threats are priority management issues, FANUC strives to strengthen
information security by appropriately allocating resources to cyber security measures, under the initiative of the management.

Acquisition of ISO 27001 Certification (ISMS Activities)
Under “Corporate Governance Guidelines,” “FANUC Code of Conduct,” and “Privacy Policy,” all of which have been announced as
our governance systems, we have established and implemented an information security management system and a basic information
security policy in order to ensure the protection of important information assets and the efficient and effective use of them incompliance with laws and regulations, rules, contracts, and other requirements.

IS656789 /ISO 27001
Corporate Administration Division, Research& Development Division, Sales Division(Headquarters),
Products Manufacturing Division and ProductsManagement Division (Headquarters).

December/2016: Research & Development Division acquired ISO27001
December/2017: Sales Division (Head Office) acquired ISO27001
December/2018: Corporate Administration Division acquired ISO27001
December/2019: FA Products Manufacturing Division and Products Management Division of Headquarters acquired ISO27001
December/2021: Products Manufacturing Division of Headquarters acquired ISO27001

Information Security Training
1.We believe that the most important information security measures are to improve employee knowledge of information security andto inform them of the procedures to be followed in the event of an incident, and we conduct annual information security training for
employees.
In addition, the CISO has released a video message to employees to demonstrate the Company’s commitment to information security.
2.FANUC considers information security measures at domestic and overseas affiliates to be important in light of the recent increase inattacks on supply chains. FANUC conducts annual information security training for these companies.

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Intellectual Property
Basic Approach
FANUC strives to acquire global intellectual property rights with the aim of protecting the technologies and brands of our own
products, while also respecting the intellectual properties of third parties.

PolicyFocusing on our manufacturing and sales locations in Japan and overseas, we aim to obtain global intellectual property rights,
including patent and design rights related to the technologies in our own products, as well as trademark rights related to our productbrands. Based on this approach, we will build a strong patent network.

Promotion Framework
To promote and support the R&D and sales operations of our three Business Divisions, the Intellectual Property Department and IP
officers in each Business Division work together closely on various intellectual property-related activities, such as creating inventions
and filing applications.

Initiatives
Global Patent Applications
� For patents, in anticipation of the further globalization of our business in the future, we will switch from obtaining international rights
with a particular focus on the United States, Germany, and China, and promote global rights acquisition.

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Thorough Research of Other Companies’ Patents
� To prevent infringements on the rights of other companies, the entire company conducts thorough research on other companies’
patents.

Intellectual Property Education for Employees
� Every year, we conduct a range of intellectual property education programs for employees to promote and support researchand development that is conscious of the prevention of infringement of other parties’ rights and of technology and brand rights
acquisition related to the Company’s products.

Invention Reward and Award Program� For inventions, devices, and designs made by our employees, we ensure that reward payments are made at the time of registrationin accordance with our in-house rules for handling inventions, devices, and designs. In addition, we also offer the same rewards forconfidential inventions. Furthermore, every year, among inventions, devices, and designs that have been registered for 5, 10, and 15
years, we evaluate those that have made a significant contribution to the Company’s business performance, and we offer awards
and reward payments at our Company’s Anniversary Ceremony. By enhancing this Invention Reward and Award Program, we work
to motivate employees involved in research and development.

Awards for Intellectual Property Activities
Sponsoring Organization

Award NameJapan Patent Office, Ministry of
Economy, Trade and Industry

Intellectual Property Achievement Award - Award for Excellent Corporation Utilizing theIntellectual Property Rights System (Open Innovation Promoter) (2019)

Clarivate Plc.

Derwent Top 100 Global Innovators 2022 (2012, 2013, 2022)

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Tax Policy
FANUC CORPORATION and its domestic and overseas subsidiaries ensure the practice of “Strict Preciseness” and “Transparency,”
FANUC’s principle. In terms of tax affairs as well, we comply with laws and regulations and pay taxes appropriately.

Global Tax Position and Minimization of Tax Risks
FANUC CORPORATION and its domestic and overseas subsidiaries pay taxes appropriately, in compliance with tax regulations andrelevant laws and regulations in their respective countries. Further, we do not use tax havens for the purposes of tax avoidance.

Transfer Pricings
Prices for international transactions between FANUC CORPORATION and its overseas subsidiaries are compliant with the Transfer
Pricing Guidelines published by the Organization for Economic Co-operation and Development (OECD), in consideration of laws andregulations in respective countries as well as functions and risks, thereby ensuring appropriate tax payment in the countries.

Relationship with Tax Authorities
FANUC CORPORATION and its domestic and overseas subsidiaries strive to build a relationship of trust with tax authorities by
providing them with information and explanations appropriately and conscientiously.

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