CORPORATE SOCIALRESPONSIBILITY REPORT2012

Corporate Philosophy / Principles of Conduct – Seven Promises

Corporate
Philosophy/ Principles ofConduct– Seven Promises

Corporate Philosophy

EIZO Group Principles of Conduct – Seven Promises

The EIZO NANAO Group pushes

We promote our business with integrity and bravery by establishing“Principles of Conduct – Seven Promises –” as follows.

the limits of technology
to create products of new value,
inspires its customers through visual display systems
and entertainment software,and strives for sound prosperity while coexistingin harmony with the environment and society.

1. We will supply high-quality products and services loved by customers through creating and offering new value by unique technologies
and ideas.
2. We will promote our manufacturing and business activities inconsideration of reducing their environmental burdens.
3. We will act as an international corporation with a global outlook andmindset.
4. We will conduct open and fair trade.
5. We will seek to build and maintain strong bonds of trust with our
stakeholders (business partners, employees, shareholders, and the
local community).
6. We will strictly respect and comply with both the letter and the spiritof the law as a good corporate citizen.
7. We will respect basic human rights and value a broadminded corporate culture.

Participation in the United Nations Global Compact
EIZO became a participant of the United Nations Global Compact (UNGC) in September

As a corporate participant, EIZO will engage in an ongoing effort to realize the UNGC’s ten

2012. Through this voluntary initiative, member corporations cooperate in the develop-

CSR principles in the areas of human rights, labor, the environment and anti-corruption,

ment of a global framework for sustainable growth by demonstrating responsible,

under the personal leadership of the company’s president.

creative leadership in their actions as good corporate citizens.
EIZO NANAO CORPORATION CSR REPORT 201201

Contents

Contents

Corporate Philosophy / EIZO Group Principles of Conduct – Seven Promises
Contents
President’s Message
Corporate Information / Our Products
Financial and Non-Financial Information
The Competitive Advantages of EIZO
Fourth Mid-Term Business Plan “1000 AGAIN!”

01

Seven Promises 7

02

Broadminded Corporate Culture
Laying the Foundations for a Motivating Workplace

25

04

Promoting Work-Life Balance / Human Resource Development Efforts

26

05

Securing Safety and Health

27

06
07

Seven Promises 1

Creating New Value

25

03

AppendixSocial and Environmental Timeline
GRI Index

28
29

08

EIZO’s Quality Assurance System

08

Third-Party Review

EIZO Solutions

09

Third-Party Review

30

Seven Promises 2

Environmental Consideration for Our Products and Business Operations

11

Environmental Policy / Environmental Management System

11

Basic Product Development Sequence / Green Procurement

12Compliance with Environmental Labeling Standards and Legal Requirements

13Collection and Recycling of Used Products/ Overview of the Environmental Impact of Our Business Operations

14

Environmental Risk Management / Prevention of Global Warming / Water Use / Waste Reduction/ Chemical Substance Management
Environmental Targets/Performance Report

15
16

Seven Promises 3

Operating as an International Corporation

17

EIZO Group Global Network

17

Globalization of Development and Production / Overseas Sales Network

18

Seven Promises 4

Open and Fair Trade19● Editorial Policy: We have compiled an explanation

Seven Promises 5

Strong Bonds of Trust with Stakeholders

20

Relationship with Each Type of Stakeholder

20

Relationships with Customers

21

Relationships with Shareholders / Relationships with the Local Community

22

Seven Promises 6

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

Editorial Policy for the CSR Reporton topics we consider important and a report on
the impact and effects of our business activities onsociety and the environment, using the GRI
Guidelines as reference.

● CSR Activity System: The General Affairs division is

responsible for our CSR activities. Under thesupervision of the officer in charge of generalaffairs, the division reports on its activities to theboard of directors● Scope of the report: EIZO Nanao Group

Exceptions to the scope of coverage are explainedin the notes to the relevant sections.

● Period covered: April 1, 2011 to March 31, 2012 (FY 2011)23● Issue date: October 2012

Compliance / Risk Management23● Issue date of previous report: October 2011

Corporate Governance24● Issue date of next report: October 2013

● Contact information: EIZO Nanao Corporation General

Affairs Department,
Tel: +81-76-274-2406

EIZO NANAO CORPORATION CSR REPORT 201202

President’s Message

We place the greatest value on offering our customers
the pride of being EIZO users

President’s
Message

Consistently Meeting Customer Expectations for EIZO
Monitors

establishing our Corporate Philosophy and Principles of Conduct throughout

We understand the first and foremost meaning of corporate social

pride by combining close communication and dedicated activities within the

responsibility (CSR) is pursuing business with integrity and ultimately

Group, even during our recent efforts to extend the company’s global reach.

the entire Group. Over the years we have managed to infuse this sharedcontributing to society. I believe EIZO does this by realizing the possibilities

Moreover, since Group companies represent diverse cultures and operateof technology to provide products that are consistently superior to the manyin different social environments, we have recognized the growing need forbrands of monitors sold across the world. We also contribute to society andsharing and putting into practice common CSR guidelines. One initiative

drive the sustainable growth of our company by offering customers thefor addressing this need is our participation in the United Nations Global

satisfaction of using EIZO products and the continual pride of being users

Compact as a corporate participant. We will conduct a group-wide effort toof the world’s premier products. This has been our approach to CSR and we

abide by the ten principles of the Global Compact and realize them throughintend to continue on this path well into the future.

our business operations.

United by Pride

EIZO’s New Goal: “1000 AGAIN!”*

In principle we do not send Japanese personnel to overseas GroupIn May 2012, we announced our fourth Mid-Term Business Plan for thecompanies but instead entrust responsibility for management and sales

three-year period starting fiscal 2012. We are targeting net sales of 90 billion

strategy to local employees. The key to the success of global group

yen for the plan’s last year, compared with actual net sales of 59.5 billion yen

management is cultivating a sense of unity, which means that every employee

for fiscal 2011, and adopted the “1000 AGAIN!” slogan to intensify our efforts

around the world should share the same sense of pride in their roles ofto generate 100 billion yen in net sales by opening up new business areas anddelivering EIZO monitors.

markets.

We also want residents of the communities in which we operate to be

We also plan to change our corporate name from EIZO Nanao Corporation

proud of the company’s presence and believe this pride also reflects one way

to EIZO Corporation in April 2013. Emphasizing “EIZO” in our corporate namewe contribute to the local community.

will boost recognition of the brand in global markets and reinforce ourcompetitiveness to achieve growth as a Group.

Building Foundations with Communication
A sound management system is an essential part of the foundation for

We intend to contribute even more to society by consistently meeting

maintaining the sense of pride in our company shared by employees andstakeholder expectations in the EIZO brand and continually broadening the

local residents as well as shareholders and suppliers. This requires firmly

scope of our CSR efforts.

October 2012

Yoshitaka Jitsumori
President, EIZO Nanao Corporation* “1000 AGAIN!” is based on 1,000 okuen, a Japanese unit equivalent to 100 million yen, and therefore equals 100 billion yen.

EIZO NANAO CORPORATION CSR REPORT 201203

Corporate Information / Our Products

Corporate
Information/ Our Products
Corporate Information

Our ProductsCompany NameEIZO NANAO CORPORATIONBusiness Activities


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

EstablishedMarch 6, 1968

For General Markets
Standard LCD monitors featuring a variety of user-friendly functions, consideration for the environment and high reliability that are at the core of ourbusiness and products. These computer monitors are widely used in offices,
schools, public facilities and homes.

President

Yoshitaka Jitsumori

Address of Headquarters

153 Shimokashiwano, Hakusan, Ishikawa 924-8566, Japan

Group Sales¥59.5 billion (FY 2011)

Employees

1,553 (consolidated, as of March 31, 2012), excluding temporary workers

Subsidiaries
Development,
Production, Sales

14 (including five domestic subsidiaries and nine overseas subsidiaries, as of March 31, 2012)●

EIZO NANAO MS CORPORATION

Japan: Manufacturing of computer monitors and amusement monitors●

EIZO GmbHGermany: Development, manufacturing, and sales of medical monitors●

EIZO Technologies GmbH

Medical image display monitors

For Graphic Markets
Color management LCD monitors that support the high-quality color reproduction and high-definition calibration required by professionals, such as
designers, photographers and computer graphics artists, in their creative work.

Germany: Development, manufacturing, and sales of industrial monitors, air traffic control monitors and controller boards for monitors●

EIZO Display Technologies (Suzhou) Co., Ltd.

China: Development, manufacturing, and sales of computer monitors, etc.
●

Irem Software Engineering Inc.

Japan: Development, manufacturing, and sales of amusement software
Sales

●

EIZO NANAO TECHNOLOGIES INC.

USA: Sales of computer monitors, etc.
●

Eizo Nordic AB

Sweden: Sales of computer monitors, etc.
●

EIZO Europe GmbHGermany (and branch offices in Austria, Belgium, Czech Republic, Italy and the Netherlands):
Sales of computer monitors, etc.
●

EIZO NANAO AG

Switzerland: Sales of computer monitors, etc.
●

EIZO Limited

United Kingdom: Sales of computer monitors, etc.
Others●EIZO SUPPORT NETWORK CORPORATION

Japan: Providing after-sales service for computer monitors, etc.
●

EIZO ENGINEERING CORPORATION

Japan: Development and designing of computer monitors, and temporary staff services●

Color management LCD monitors

Tech Source, Inc.

USA: Development, manufacturing, and sales of graphics boards for air traffic control●

Standard monitors

For Medical Markets
A varied lineup of solutions for a broad spectrum of medical operations,
including monitors for displaying CT and X-ray images as well as monitors for
operating rooms and electronic medical records.

NANAO AGENCY CORPORATION

Japan: Insurance service

For Industrial Markets
Optimum solutions for industrial needs, such as units incorporated into
FA equipment and monitors for security control inside factories and kiosk
terminals.
For Air Traffic Control
Comprehensive solutions that include main monitors for tracking aircraft
flight status, auxiliary monitors for displaying air traffic control information,
training monitors and specialized high-definition graphics boards for displaying
air traffic control data.

LCD monitors for industrial use

High-definition
graphics boards

For Home Entertainment
LCD monitors for entertainment systems using proprietary resolution technology, such as the world’s first shade visibility improvement function, whichenable users to enjoy the maximum impact of digital content on their PCs,
game machines and AV equipment.
For Amusement Markets
We design and manufacture LCD monitors installed in pachinko equipment.
These models combine the Group’s hardware technology, gained through thedesign and manufacture of computer monitors, with amusement software development technology to offer realistic expression, stories with a strong gaming
feel, and lovable characters toward our goal of delivering products that become
customer favorites year after year.

Main monitors
for air traffic control

Entertainment monitors© SANYOBUSSAN CO., LTD.

LCD monitors for pachinko equipment

EIZO NANAO CORPORATION CSR REPORT 201204

Financial and Non-Financial Information

Financial and
Non-Financial
Information
Financial Information

Non-Financial Information■ Net sales

Operating Income

100

77.5

74.5

8

65.2

60
40

4

20

2
FY 2007

FY 2008

FY 2009

FY 2010100

FY 2011

4.3

1,600

11.3%

7.4

5.8
8.4

1.5%

General corporations

9.5

6

Treasury stock

Financial institutions

9.0

5.1

4.4

38.7%

800

FY 2008

FY 2009 FY 2010 FY 2011

22.4%

0

1,460

1,462

1,492

1,553

1,191

1,222

1,227

1,217

1,236

275

317

400

Foreign institutional
investors, etc.

FY 2007

1,389

1,200

Individual investors
and others

19.9%

5

Overseas

2,000

Securities companies

6.2%

11.6
7.9

59.5

Japan

(%)
15

10

89.3

80

0

Operating Margin(billions of yen)
12(billions of yen)120

■ Number of Employees (total)■ Shareholder Composition■ Operating Income/Operating Margin

0

FY 2011

198

238

235

FY 2007

FY 2008

FY 2009 FY 2010 FY 2011

* Regular employees■ Sales and Percentage Breakdownby Product Category (FY 2011)■ Composition of
Net Sales by Region (FY 2011)
North America

4.9%

2.9 billion yen

OthersOthers 3.7%
2.2 billion yen

12.4%

7.4 billion yen

Europe26.2%

Consolidated
Consolidated
Amusement
Monitors for 15.5 billion yen Net Sales
Sales
Monitors 59.5Net
59.5 billion yen
billion yen Computer Use

34.5%

20.5 billion yen

53.1%

31.6 billion yen

Japan

65.2%

38.8billion yen■ Five-year Change in Dividends
Year-end Dividend

(Yen)
90
80
70
60
50
40
30
20
10
0

80
40

41.0

Payout Ratio

229.7

(%)
250

70

200

30
40

■ Emissions of Greenhouse Gases (Japan)

Interim Dividend(t-CO2)
115,217
7,000

Emissions of CO2

107,6166,000

Energy use(GJ)120,000

99,876

99,63889,381

5,000

50
25

50
25

40

50
25
67.5

25

25

22.6

31.5

FY 2007 FY 2008 FY 2009

FY 201025
FY 2011150
100

100,000
80,0004,000

60,000

3,000

50

2,000

0

1,000
0

40,0006,444
FY 2007

5,979
FY 2008

4,938

3,326

2,220

20,000FY 2009 FY 2010 FY 2011

0With regard to greenhouse gas
emissions, we measure CO ₂ emissions by
converting figures for electricity, kerosene
and LPG use into CO₂. We also comply with
the Air Pollution Control Act by regularly
measuring our emissions of atmosphericp o llu t ant s N O x an d S O x , w hi ch aresignificantly lower than minimum
statutory levels.

* Calculations of CO ₂ emissions associated with electric-

ity use are based on the conversion factor of Hokuriku
Electric Power Company.

EIZO NANAO CORPORATION CSR REPORT 201205

The Competitive Advantages of EIZO

The Competitive
Advantages of
EIZO

Since its founding, the EIZO Group has consistently focused its technology andpassion on creating visual display products. We continue to concentrate our energy◆ Excellence in Development and Quality●Development

and efforts on developing products that are a step ahead of the times by using ad-

In the course of creating visual display prod-

vanced devices and pursuing cutting-edge technologies. Our goal is to deliver reli-ucts, we have gained the full spectrum of tech-able, high-quality products that both satisfy and inspire our customers.

nologies required for developing monitors. This

EIZO’s competitive advantage is the result of our business model, excellence inin turn has enabled us to quickly deliver new,
cutting-edge products and high-quality prod-development and quality, and our global network.

■ Core Competence
Software, Hardware, and Peripheral Technologies
Environmental Compatibility
Technology
Image Quality
Evaluation
Technology

Application Software
Development
DigitalAnalogMechanism/
System
Display Device Mechanics
Image Processing
Development
Evaluation Development
Algorithm
Technology
Technology

ucts with enhanced functionality at reasonable◆ Business Model

prices.

ASIC
FPGADevelopment

veloping new products with the additional performance and functions required in

3DTechnology

Embedded Firmware
Development

Power Circuit
Technology
Touch Panel
Technology

We have built on our core competence* through our work on general-purpose
LCD monitors with superior picture quality to expand into vertical markets by de-Video Signal
Transmission
Technology●Quality●

Consistent quality control through 100% self-development and self-production

various fields. Leveraging the technology, procurement and production synergies

We have always been committed to 100% self-development and self-production, andamong our business units has enabled us to create advanced products with pro-

we will maintain this commitment to integrate quality control, from development andprietary features to further develop and expand our business. This unique business

manufacturing to after-sales service, under a group-wide effort to further enhance quality.

model has been the major driver of our growth.
●■ Business Development Based on Synergies among Business Units

Development of environmentally sound products
Our proven track record of incorporating the principle of environmental preservation
into product development has been highly regarded in Europe, where environmental

Color management LCD
Air traffic control
monitorsmonitors
Amusement application
Entertainment
monitors (pachinko)
monitors
LCD monitors with
Medical image
Industrial monitors
superior picture quality
display monitor

consideration for the environment is highly prioritized. As public concern for the environment grows, we will work harder to develop environmentally sound products by,for example, actively participating in the formulation of environmental standards.
●

Rigorous attention to quality control
The key to the success of our products is the stringent
inspections we conduct on the image quality of our moni-

C ore Competence

tors at different stages, from development to production.

Softw areare, andperiph , hardw logies
e r a l t e c hn oProducts are checked by human eye in addition to machine to ensure that the image quality of every unit is reviewed at the highest level

Technology
Sharing technologies between business units and developing advanced
products with proprietary features

Procurement
Guaranteed device procurement
capability

Production
Production line for flexibly responding to orders* Our core competence: Technological expertise that allows for a significant competitive advantageof accuracy from the perspective of the user.
◆ Global Network
Please refer to page 17.
EIZO NANAO CORPORATION CSR REPORT 201206

Fourth Mid-Term Business Plan “1000 AGAIN!”

Fourth Mid-TermBusiness Plan

Our fourth, three-year Mid-Term Business Plan began in fiscal 2012. Under this plan, withthe three focuses seen on the right comprising our policy, we are reinforcing our businessfoundation so that we can continue to enjoy exceptional customer support. This is madepossible by fully demonstrating the comprehensive capabilities we have gained in productdevelopment and the commercialization of visual equipment, particularly monitors.
We plan to double overseas net sales with measures that include further solidifying ourglobal system of procurement, development, sales, and logistics across the entire Group andstrengthening sales in Europe through our own sales channels, as well as business expansion

4th Mid-Term Plan (2012–2014)

in China. Meanwhile, we will enhance the added value of our products in vertical markets(medical, graphics, industrial, and air traffic control) by aggressively engaging in R&D to con-“1000 AGAIN!”

tinually deliver new solutions, and consequently cement our unchallenged No. 1 position.
■ Net Sales Targets by Region(billions of yen)Japan

Europe
14.8

15.5

28,0
28.0

Expand sales toindustrial markets

Operations that utilize
new sales groupcompanies

Other
1.1

0.3

Expand sales to emerging
markets including India,
the Middle East, andCentral and South America

24.0

China
0.9

0.5

North America
2.7

7.0

Strengthen sales
activities in the video
production market• Solidif y No.1 position in ver tical markets throughinnovative R&D and value-added products• Cement the position of No. 1 manufacturer of amusementmonitors by strengthening produc t planning anddevelopment

Increase share in
the medical
market■ Net Sales Target* Figures do not include sales of service and maintenance.

1st Mid-Term Plan
(2003–2005)

2nd Mid-Term Plan
(2006–2008)

3rd Mid-Term Plan
(2009–2011)“Evolving, Exploring,
Innovating”“Compelling
Differentiation”“Undisputed
Top Position”• Growth in vertical markets• No. 1 in the medical market• Commenced direct sales• Entered the air traffic control
market• Reorganized manufacturingsubsidiaries• Expand the scale of the monitor business through a solid
global network in Japan, Europe, the U.S. and China• Built up glo b al R& D an d
product systems throughM&A(billions of yen)

90.0

80

• No. 1 in strategic ver ticalmarkets

60• Commenced developmentof the industrial market

40• Res truc ture d for leaner,more ef fective corporate
operations

100

100

20
0

65.2

7.9

20.8
22.3

70.0
59.5

7.4

7.8

22.2

20.5
20.0

9.0
20.0

45.0
26.4

■

Other monitors■

Amusement monitors

■

■

14.0

11.5

13.6

16.0

FY 2010

FY 2011

FY 2012 PlanFY 2014 Plan

Specific-purpose computer
monitors
General-purpose computer
monitors

Note: “1000 AGAIN!” represents 1,000 × okuen (Japanese unit for 100 million yen) = 100 billion yen.

EIZO NANAO CORPORATION CSR REPORT 201207

Seven Promises 1

Creating New Value

Seven Promises 1

Creating New Value

We will deliver
high-quality
products andservices that
customers appreciate by creating
and offering newvalue derived
from proprietary
technologies andideas.

Our products are used in offices and homes around the world, and each field requires different specifications and functions.
Beyond listening and responding to customer requests in each field, we relentlessly pursue proprietary technologies and ideas to create
and offer new sets of values that extend our promise to consistently deliver products that customers appreciate.

EIZO’s Quality Assurance System
Under our Quality Management Policy, we seek to ensure reliable long-term useof EIZO brand products by establishing an integrated quality control system that

Quality Management Policy

encompasses development and manufacturing to after-sales service and making

The Eizo Nanao Group is committed to continually fulfilling customers’
expectations by proposing and offering high quality products,
services, and solutions. We therefore:

continuous improvement throughout the system.
◆ Development Process
We develop and verify our products from the perspective of our customers from1

Aim to develop high quality products by pursuing the world’s highest level oftechnology.

2

Carry out our responsibility for environmental preservation by actively reducing
the effects on the environment in every business activity from product development to manufacturing to sales and service.

3

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

4

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

5

Respond to the trust of both medical professionals and patients by providing
medical equipment with assured quality, effectiveness and safety.

6

Comply with legal and social requirements.

every conceivable viewpoint, starting with reliability and safety and including environmental compliance, energy saving, EMC performance*, ergonomics, usability andservice. In addition, we perform product longevity testing to confirm that the performance and functionality of our products are maintained even after long-term use.
* EMC performance : Electro-Magnetic Compatibility◆ Manufacturing Process
All EIZO products are manufactured under an integrated production process at
our own factories, from PCB assembly to the final finished product. All display performance inspections rely on the human eye, from the perspective of customers whowill use the product.
◆ After-sales Service
Under our system for ensuring that customers can use our products safely and for along time, we respond to requests for after-sales service at EIZO Support Network Corporation for our customers in Japan and at our Group companies and distributors forour customers overseas. Feedback is incorporated into future product development.

EIZO NANAO CORPORATION CSR REPORT 201208

Seven Promises 1

Creating New Value

Seven Promises 1

Creating New ValueEIZO Solutions◆ In Medical Treatment Settings◆ In Creative Work Settings

Monitors play an increasingly important role in the medical profession, where ad-

Design and photography demand extremely accurate color reproduction. EIZO

vances in digitization have meant that a broad array of data, from medical records topossesses an established reputation for excellent color reproduction and enjoys

images including X-ray results, is now displayed on a monitor. EIZO supports highly

strong support from creative professionals such as graphic designers and photogra-

accurate medical treatment and enhances operational efficiency through monitor

phers. We broadly support their work by achieving the high level of display function-

solutions that offer high-precision displays and the out-

ality they require and by developing and offering monitors compatible with high-standing reliability required for diagnosis, along with quality

definition hardware calibration* for constantly maintaining accurate coloring.

control applications that consistently guarantee the correct
display of information.
We also train medical professionals to use the monitors

While our reputation in the still image market is alreadywell established, we intend to further strengthen our products and present new concepts for the video production

more effectively and efficiently through seminars that ex-market.

plain mechanisms of the monitors, the importance of moni-*Hardware calibration
Calibration method for setting the monitor display environment to enable users to directly adjust the color display by adjusting internal parameters

tor images in diagnosis, maintenance tips and other topics.

◆ A New Standard for Air Traffic Control◆ For Broad Industrial Applications Requiring Customization

For the ATC market, we provide a total solution that includes the main monitors

Monitors built into factory equipment and specialized systems must be fine-tuned

for tracking aircraft flight status, sub monitors for displaying relevant information,

to meet their specific requirements. EIZO can quickly and flexibly respond to cus-training monitors, graphics boards for displaying images, and flight status recording

tomization needs through our track record of outstanding

systems. We have also developed a high-resolution main

quality and reliability, small-lot production utilizing our flex-

monitor (4096 × 2160 dots) capable of displaying images

ible production system, and the capacity to provide stable,

equivalent to two conventional monitors, which we are pro-long-term supply based on our procurement capabilities.

posing as a new standard.
◆ Proprietary Image Processing Technology for Home Entertainment
We are committed to enhancing video display performance in order to provide
a higher level of enjoyment in viewing videos for entertainment on PCs, game machines and AV equipment by developing our proprietary image processing technology. (See page 10)

EIZO NANAO CORPORATION CSR REPORT 201209

Seven Promises 1

Creating New Value

Seven Promises 1

Creating New Value

Creation and Proposal of New Value for Video Displays
In pursuit of higher video display performance, we developed proprietary technology forenhanced visibility. This technology has been incorporated into our FORIS entertainment
monitor and DuraVision industrial monitor.

The Three Smart Functions
Smart Insight – Shade Visibility Improvement Technology
Smart Insight analyzes the original image for each scene in a video, automatically detects the less visible areas on the screen, and enhances thevisibility of the darker areas by adjusting the brightness of each pixel, thus
Seen through the human eye
Image viewed on a camera
displaying the image on themonitor as it was seen throughthe human eye.
Displays the backlight scene as it was seen through the human eye
Smart Resolution – Super-Resolution Technology
This technology analyzes the original image for noise and blurring andthen corrects the blur to theextent needed to sharpen
the image. For example, while
playing a game or watching
Readability remains as original
a movie, Smart Resolution
sharpens the content to makeit more vivid.

from the time of purchase to the point of any necessary repair is an intrinsic
component of the products. In 2003, we became the first in the industry to offer
a five-year manufacturer’s limited warranty (three years for LCD panels), and in2012 we expanded our five-year warranty to cover LCD panels as well. Five years
is the longest* warranty period for these types of products,
which reflects our confidence in our product quality.
We are committed to consistently earning our customers’ trust and meeting their expectations.
* As of June 2012; researched by the company

AwardsGood Design Award 2011

ColorEdge CG275W
EIZO received the 2011 Good Design Award for the ColorEdge CG275W, a 27-inch
LCD monitor for color management. Specific accolades from judges included
these comments: “Superb calibration functions worthy of a professional monitor”
and “Deep consideration for the user has gone into creating this design, as evidenced by the ingenious interface features.”
EIZO brand products have received the Good Design Award for 16 consecutive

Smart Detection – Adjustment of Animated Areas
A function of this technology identifies areas of the screen that include animatedimages from the entire screen Full screen mode
Video modeand only applies super solution
and shade visibility improvement processing to those areas.
Smart Function's adjustment function is applied across the entire screen

Ensuring Continued Safe Use – Five-Year Warranty
We believe that providing support to ensure the safe use of our products

years since 1996.

Smart Function's adjustment function is applied only across the video area

Used in combination, these three “Smart” functions enhance the visibilityof various scenes to realize the optimal display. We are working to apply
these functions to monitors for games, photograph and online video viewing, and security and surveillance.

EIZO NANAO CORPORATION CSR REPORT 201210

Seven Promises 2
Environmental Consideration
for Our Products
and Business Operations

We will incorporate
environmental
considerations
into our manufacturing andbusiness operations.

Environmental Consideration for Our Products and Business Operations

Seven Promises 2

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

Environmental Management System

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

1

2

3

4

5

We endeavor to constantly remain up to date on and to strictly adhere to environmental laws and standards applicable to our corporate operations and products, as well asother environmental preservation requirements of society at large. We determine
environmental objectives and targets based on a clear understanding of suchrequirements as well as the environmental impact of our corporate operations andproducts. These objectives and targets are reviewed on a regular basis to achieve
ongoing improvement of our environmental management system and performance.
At the research and development stage, we pay careful attention to the design of our
products to minimize the consumption of resources and energy, ensure ease ofrecycling, and reduce the volume of toxic substances. Our aim is a continuous raisingof our environmental standards.
In our corporate operations we give due consideration to conserving energy andresources. We work to reduce the volume of waste products generated by our operations
and to dispose properly of all waste generated. We are engaged in positive efforts topromote the collection and recycling of used products discarded by consumers.
We constantly monitor the latest information related to the environment through our
information network, which includes our overseas facilities and affiliated companies.
We endeavor to share information appropriately by disclosing and disseminating
details of our own environmental initiatives, and we work with others in common
efforts aimed at reserving the environment.
We educate all company members and strive to deepen their awareness of environmental matters, while creating members of a team that will be committed to theeffective use of natural resources and energy, and to the protection of our global
environment.

After establishing an environmental management system under our Environmental Policy, we obtained ISO 14001 certification* in July 1998. Since then we have
implemented measures for waste reduction and reduced resource and energy consumption. We have also taken a step farther in light of a number of factors, including
society’s movement toward environmentally sound products and growing public interest in eco products, by operating our environmental management system, whichemphasizes environmental targets centered on environmentally sound products.
* EIZO Nanao MS Corporation, EIZO GmbH, and EIZO Display Technologies (Suzhou) Co., Ltd. have also obtained certification to date.

◆ Activities under the Environmental Management System
As in fiscal 2010, we incorporated many tasks

Raising Customer Satisfaction

for meeting our environmental targets for fiscal 2011 that would achieve results in productActionspecifications. We also sought to accomplish

Environmental
Management
Systemthese tasks and targets by sharing them with

Check

Plan

Do

in-house organizations, including the designand development departments. We success-Stakeholder

fully reduced power consumption during suspension and use, exercised stricter control over chemical substances used in parts,
and achieved manufacturing that meets advanced environmental standards.
◆ Environmental Management System Audits
Our ISO 14001 certification was maintained and updated in fiscal 2011 after a thirdparty institution conducted an external audit.

EIZO NANAO CORPORATION CSR REPORT 201211

Seven Promises 2
Environmental Consideration
for Our Products
and Business Operations

Environmental Consideration for Our Products and Business Operations

Basic Product Development Sequence

Seven Promises 2

Green Procurement

In product development, we endeavor to meet the legal requirement and standards◆ Our Philosophy on Green Procurement

as well as to enhance the environmentally sound quality of our products including com-

Our Environmental Policy for preserving the global environment applies to all our businesspliance with the legal requirement and standards, domestic and overseas legal require-

operations, and respect for the environment is incorporated into product development to create aments and standards, industry trends and social conditions. In addition, we conduct

recycling-based society.

product environmental assessments in accordance with our own Environmental Compli-

Our Green Procurement Standards were established to guide material procurement and tomeet the expectations of customers and society as a whole by maintaining and strengthening ourance Standards to measure the environmental
soundness of products.
Voice from a Worksite
The standards are linked to our system for developing, implementing and meeting

environmental preservation activities. The standards were also intended to fulfill our social respon-

Voice
from
a Worksite
companywide environmental targetsforeach
fiscal year, and are revised every year

sibility by enabling us to quickly respond to the evolving environmental rules and regulations in

toward improving the environmental soundness of our products. We also evaluate andeach country.

Voice from a Group Company

control chemical substances throughout our supply chain in line with our Green Procure-

Our suppliers’ efforts to reduce environmental impact and preserve the environment are justas important to us as their quality, prices, delivery schedule, services and technological excellence.

ment Standards so that they comply with chemical substance regulations.
Voice from a Worksite

In selecting products, parts and materials, including packaging, we place higher priority on thosethat are environmentally sound as well as meeting our quality, function and cost requirements.

Voice from a Worksite

These efforts are helping to reduce the environmental impact of our business operations while
Our division is responsible for the structural design of products, which involves the devel-at the same time expanding markets for environmentally friendly products.

opment of the chassis, external cladding, packaging materials, labels and user’s manuals.
Every year, we seek to raise the level of environmental consideration that goes into our
products, not only through compliance with the frequently changing environmental regu-◆ Management of Chemical Content Information
Amid growing concern for the en- ■ Flow of Chemical Content Survey

lations and standards of each country, but also by taking into account resource savings andvironment across the globe, we vol-using environmentally sound materials in our product development.

untarily monitor chemical substances

RequestWe adopt various approaches to reduce the amount of materials used in our products

toward obtaining certifications forEnvironmental efforts survey

such as resins and steel plates toward making them smaller and lighter to both save resourc-

environmental standards in Japan

Supplier Chemical substance survey listes and maintain high quality and reliability. We also place high priority on

and overseas, and support our green

reducing container size and have been able to conserve resources andprocurement efforts. These efforts

raise the efficiency of logistics.

include surveying the environmental

In order to quickly introduce environmentally sound materials, we assess and verify recycled resin, ink with less environmental impact andother materials in cooperation with our suppliers.

Yasushi Ikeda
Modeling and Design
Division
Functional Unit
Development
Department

Environmental
Information
Database(JAMP AIS File)

Material Information Sheet
Survey response

activities of our suppliers and thechemical substances contained in the parts we procure from them. We have established a
database for collecting and managing the results of these surveys to determine which suppliers and materials best align with our values, and we also use the information in evaluating theenvironmental compliance of our own products.

EIZO NANAO CORPORATION CSR REPORT 201212

Seven Promises 2
Environmental Consideration
for Our Products
and Business Operations

Environmental Consideration for Our Products and Business Operations

Seven Promises 2

Compliance with Environmental Labeling Standards and Legal Requirements
In our effort to proactively develop environmentally sound products, we observe the legal re-◆ EPEATquirements of Japan and other countries and comply with major environmental labeling standards

EPEAT, developed by the U.S. Environmental Protection Agency and managedin each market for our flagship products. Furthermore, as we ensure that our own products are inby the Green Electronics Council since 2006, is a tool for evaluating the environ-full compliance, we also play our role in guiding the entire industry by actively engaging in the de-mental impact of computers and peripheral equipment. Products are compre-

velopment of standards, such as the internationally recognized TCO Display 5.0 and ENERGY STAR 5.0.

hensively evaluated against 23 mandatory and 28 optional requirements to award

We will continue to closely monitor trends in environmental labeling to reduce the environmental impact of product development.

them gold, silver or bronze ratings.
Many of EIZO’s monitors have been certified as EPEAT Silver, and since 2009 wehave been reinforcing our efforts to increase◆ TCO

the number of our gold-rated products.

Efforts to make our products more environmentally friendly have proceeded largely in responseto the evolution of environmental standards in Europe, starting with ensuring compliance with the
TCO’95 standard introduced in Sweden. This standard has evolved into TCO Displays 6.0 following
subsequent upgrades. EIZO has consistently participated in the formulation of TCO standards andscrutinizing the content of the standards to ensure progress in their effective application.
EIZO became the first in the world to receive certification for TCO Display 5.0 in April 2009, which
was revised in September 2012 into TCO Displays 6.0 and for which we were also the first to receive◆ RoHS Directipve
The RoHS Directive bans the use of six substances that are harmful to the global environmentor human heath: lead, mercury, cadmium, hexavalent chromium,
PBB and PBDE. We began the switchover in 2005 and achieved complete compliance in all products bound for the EU by May 2006.

certification. In the years ahead we will continue to recognize the importanceof meeting this standard in the development of new products and maintainour policy of obtaining certification.

◆ WEEE Directive
The WEEE Directive went into effect in the EU in August 2005 toward reducing environmental
impact through promotion of the three Rs of Reduce, Reuse, Recycling for used electrical and◆ ENERGY STAR

electronic equipment. We have responded by developing a system for recovery and recycling.

The ENERGY STAR Program was launched by the U.S. Environmental Protection Agency in 1993 to
help reduce the power consumption of computers and related devices. The International ENERGY◆ PC Green LabelSTAR Program was adopted in Japan in 1995 on the basis of an agreement with the U.S. govern-

This environmental labeling program is administered in Japan by the PC3R Promotion Asso-ment. We have participated in this program from the very beginning, and since becoming the first

ciation. The program is based on three concepts: (1) environmentally sound design and manufac-

registered monitor manufacturer, we have had virtually all subsequent products registered underturing; (2) post-use recovery and recycling of products; (3) environmental information disclosure.

the program. ENERGY STAR Ver. 5.0 went into effect in October 2009. While the new standard is even

EIZO has participated in revising the program as a committee member.

more stringent, our products have been in compliance since it went into effect. Ver.

We have also actively sought certification for our FlexScan and ColorEdge

6.0 is scheduled to come into effect in 2013, and we will continue to actively seek

series and intend to maintain this policy.

compliance with these standards for the models we develop in the future.

EIZO NANAO CORPORATION CSR REPORT 201213

Seven Promises 2
Environmental Consideration
for Our Products
and Business Operations

Environmental Consideration for Our Products and Business Operations

Collection and Recycling of Used Products (Japan)

Seven Promises 2

Overview of the Environmental Impact of Our Business Operations
Scope of calculations: three domestic areas as listed below◆ Collection of Used EIZO Products from Homes
In compliance with the Waste Disposal Act
and the Law for Promotion of Effective Utili-Parts manufacturers and purchasing companies in Japan and overseas

Monitors
Actual collection from homes (FY 2011)
CRT monitors

LCD monitors

zation of Resources, we have been collecting

Volume in weight (kg)29,548

7,959

used commercial products from individual

Quantity (units)

1,211

1,137

Recycled volume (kg)

19,777

6,352

Recycling ratio (%)

66.9

79.8

customers under our Product Collection andRecycling System since October 2003.

For monitors purchased after October 1, 2003, we provide “PC Recycle Mark” labels at
customer request. Monitors bearing these labels can be discarded without charge.

Energy usage:
89,381 GJ
Energy usage breakdown:
Electricity: 8.24 million kWh
Kerosene: 17 kl
LPG: 130 t

Copier paper:
5.4 t
Water usage:
23,195 m3

CO2 emissions:2,220 t-CO2
Waste

INPUT

OUTPUT

EIZO Group

Waste breakdown:
Industrial waste: 225 t
General waste: 13 t
Wastepaper: 353 t
Recycling rate: 95.7%◆ Collection of Used EIZO Products from Corporate Users
In compliance with the Waste Disposal
Act and the Law for Promotion of Effective

Monitors
Actual collection from corporate users (FY 2011)

Utilization of Resources, we have been col-Volume in weight (kg)lecting used commercial products from

Quantity (units)

corporate customers under our Product

Used and discarded by customer in Japan and overseas

CRT monitors

LCD monitors

1,220

420

50

60

Recycled volume (kg)

884

322

Recycling ratio (%)

72.5

76.7

Collection and Recycling System since July

■ Environmental Impact by Area

2001. Products collected under this system are disassembled, crushed and sorted by

Area

recycling companies for reuse. Since June 2010, we have been collecting and recy-

Operations

cling through a system administered by the PC3R Promotion Association.

EIZO Nanao MS Corporation
Hakui Plant

Assembly of
monitors

Production of
circuit boards

Law that came into effect on April 1, 2009,

EnergyResources Kerosene (kl)LCD TV Sets
Actual collection and recycling (FY 2011)
Quantity collected from designated collection sites (units)

LPG (t)306

added LCD and plasma TV sets to the list

Quantity of products discarded for recycling (units)326

of appliances covered by the law. EIZO

Weight of products discarded for recycling (kg)5,281

Weight of recycled products (kg)4,120

responded by establishing its Product Col-

8,774

Electricity(10,000 kWh)◆ Disposal of TV Sets

Recycling rate (%)

lection and Recycling System and began

78

EIZO Nanao Corporation
Headquarters area

Nanao Plant

Total Energy Usage (GJ)

The revised Home Appliance Recycling

Materials collected in accordancewith the Containers and Packaging Recycling Law

Collection and recycling of used products

88

Total

31,10649,501

89,381

312

424

824

—

—

17

17

—

—

130

130

Copier Paper (t)

0.1

0.9

4.4

5.4

Water Usage (m3)

2,603

2,388

18,20423,195

CO₂ Emissions (t-CO₂)

Waste

197

699

1,324

2,220

Industrial Waste (t)

68

36

121

225

General Waste (t)

1

3

9

13

Wastepaper (t)

93

69

191

353

Recycling rate (%)

96.1

93.7

96.2

95.7

collecting and recycling used TV sets regardless of their manufacturer.

EIZO NANAO CORPORATION CSR REPORT 201214

Seven Promises 2
Environmental Consideration
for Our Products
and Business Operations

Environmental Consideration for Our Products and Business Operations

Environmental Risk Management

Seven Promises 2

Water Use

◆ Facility Management

We use only groundwater in EIZO Nanao Corporation’s Headquarters area (Group com-

In principle, we ensure compliance with stringent voluntary management standards, including standards not bound by law.

panies use the public water supply). We monitor water usage and wastewater discharge
to reduce the risk of subsidence and stress on wastewater treatment systems. We use
water in our corporate buildings as well as for the snow melting system and for watering◆ Regulatory Complianceplants in the summer. Our manufacturing processes do not use any water.

We strive to comply with regulations governing corporate activities such as the Air Pollution Control Act, the Water Quality Pollution Control Act, and the Waste Disposal and Public Cleansing Act byWaste Reduction

collecting information on revisions and new regulations and by regularly monitoring and measuring
the status of our response. In addition, we adhere to our own voluntary management standards, even

◆ Industrial Waste

in operations for which there are no applicable laws. No compliance problems were found in fiscal

Our total volume of industrial waste

2011, and no administrative guidance, admonitions, orders or reprimands have been received. In ad-

decreased 32% year-on-year to 225 t, pri-dition, no complaints about environmental issues were received from our neighboring communities.

marily due to production adjustments in

Prevention of Global Warming◆ Emissions of Greenhouse Gases and Atmospheric Pollutants
Please refer to “Non-Financial Information” on page 5.

■ Discharge of Industrial Waste and Recycling Rate
(t)

400
350

96.7
364

97.7
347

96.7

96.3

329

333

95.7

80

300

the wake of the Great East Japan Earth-250

quake and the historic rise in the yen’s

150

(%)

100

225

60

200

value. The recycling rate of 95.7% fell

100

short of our goal of 96% due to surplus

0

40
20

50
FY 2007 FY 2008 FY 2009 FY 2010 FY 20110

unrecyclable waste generated by separate production activities, including the disposal of unrecyclable desiccants contained in◆ Energy Use

the packaging of materials, and the promotion of voluntary 5S activities.

In fiscal 2011, we sought to save energy associated with our air conditioning systems by
optimizing the operation of our air conditioning units and replacing some units. Given theChemical Substance Management

current state of electric power supply in Japan, we also reduced electricity use by cutting
down on in-house lighting and more frequently turning off unnecessary lights. As a result, we◆ Appropriate Management of Chemical Substanceswere able to limit total energy use to below 1,500 kl in crude oil equivalent, which is the target

We closely manage kerosene and organic solvents in compliance with regulations

for energy efficiency under the Energy Savings Law. We will continue to pursue group-widesuch as the Fire Service Act and the Industrial Safety and Health Act. We do not use

energy saving activities while also maintaining comfortable working conditions.

any chemical substances subject to the PRTR Law*.

■ Targets and Actual Results Scope: EIZO Nanao Corporation Headquarters and EIZO Display Technologies(Suzhou) Co., Ltd
FY 2012 Targets
FY 2011 Targets
FY 2011 Actual Results
Level of Attainment

Electricity
9.26 million kWh9.20 million kWh
8.24 million kWh○

Kerosene

○

LPG
16kl
20kl
17kl

○

* Pollutant Release and Transfer Register
Regulation governing the monitoring and promotion of efforts to more effectively manage the release of controlled substances into the environment.

140t
140t
130t

Figures for the goals have increased due to the addition of electricity data from our Group company in China starting in fiscal 2012.
EIZO NANAO CORPORATION CSR REPORT 201215

Seven Promises 2
Environmental Consideration
for Our Products
and Business Operations

Environmental Consideration for Our Products and Business Operations

Seven Promises 2

Environmental Targets/Performance Report
Scope: EIZO Nanao Corporation Headquarters area and EIZO Nanao MS Corporation
Environmental
Theme

Focus

Environmental
Objective

Creating a sustainable
society

Environmental
communication○

Reduce electricity consumption to no
more than 9.26 million kWh/year
Upgrade interior lighting to LED

Reduced fuelconsumption

Reduce consumption of fuelLPG: up to 140 t; kerosene: up to 20 kl

LPG: 129.5 t; kerosene: 17.3 kl○

Reduce consumption of fuelLPG: no more than 140 t;
kerosene: no more than 16 kl

Implement product LCA

Closely monitored carbon footprint deliberations of the Ministry of
Economy, Trade and Industry

×

Potential focus

Environmentally soundproduct design

Reduce product electricity consumption

EV series achieved power consumption of 0.1 W or less in sleep mode foranalog signal input and 0.1 W or less in off mode○

Further reduce electricity consumptionof products when connected to DVI/
Display port—0.5 W for sleep mode and
0.5 W for off mode
• Promote lightweight, compact products• Promote slimmer products

Increased transport
efficiency

Increase efficiency of product transport

Implemented compact packaging by separating stand bases○

Accomplished and removed from
Environmental Targets

Green procurement

Green purchase of office supplies

Disseminated in-house information on recommended products for green
purchasing○

Ongoing focus

ReduceReduce industrial waste by up to 350 t
for industrial waste generation and up
to 6.2 t for purchases of copier paper

Industrial waste generation: 225 t; purchase of copier paper: 5.4 t○

Industrial waste generation: 325 t
Purchases of copier paper: 6.024 t

Reuse

Promote reuse of office supplies

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

Effectively use resources(Promote reuse of office supplies)

Expand use of recycled plastic materials
in products

Adopted use of recycled materials in EV series

Recycling rate of waste generated oncompany premises: 96%

Recycling rate of waste generated on company premises: 95.7%△

Disclose product collection system

Disclosed information on product collection through the website anduser’s manual

Improve recycling rate of waste
generated on company premises: 96%
Investigate and consider recycling partsfor amusement monitors○

Reduce use of hazardous substances,and control and review MSDS

CO₂ reduction

Three R’s
(reduce, reuse,recycle)Management ofchemicals

Maintaining
communication

Compliance withenvironmental laws
and standards

Fiscal 2012 Targets

Maintained under 8.24 million kWh/year

Use mercury-free backlight units

Expanded development of models mounted with LED backlight

Manage and restrict emissions andtransport of toxic substances

Changed cleansing agent used in the substrate assembly process to reduce
environmental impact

Green procurement

Manage chemicals used in products

Introduced new evaluation and control system for chemical substancesand established an operational routine○

Accomplished and removed from
Environmental Targets

Education and training

Conduct in-house education

Conducted environmental training for all employees○

Conduct in-house education

Report corporate environmental
activities

Published CSR Report in accordance with GRI application level B
Promoted the wearing of lighter or warmer clothes under the “cool biz”
and “warm biz” campaigns, and sought and shared eco-ideas publicly
Disclosed product environmental information through the corporatewebsite and catalogs○

Disclose environmental information forcompany and products

Provide in-house feedback on market
needs and trends

Collected information on local environmental standards from overseas
subsidiaries and distributors, and implemented ongoing internal feedback△

Ongoing focus

Comply with environmental laws andstandards

Obtained ISO 14001 certification at EIZO Display Technologies (Suzhou)Co., Ltd.
Complied with revised Rationalization in Energy Use Law
Discontinued acquisition of TCO Certified Edge△

Respond to ENERGY STAR 6.0
Respond to TCO Certified Displays 6.0

Reduced consumption ofchemicals

Disclosure ofenvironmental
information
Survey of market trends

Environmental
complianceSelfevaluation

Reduce electricity consumption by
9.20 million kWh/year

RecycleEnvironmental issues

Fiscal 2011 Actual Results

Reduced power
consumption

Tracking CO₂ volume
Efforts to prevent
global warming

In-house Environmental Target

Standards compliance○ : Results exceeding 75%, △ : Over 50% and under 75%, × : Under 50%

EIZO NANAO CORPORATION CSR REPORT 201216

Seven Promises 3
Operating as
an International Corporation

We will take on
the role of being
an international
corporation with a
global outlook
and mindset.

Operating as an International Corporation

Seven Promises 3

In order to ensure the delivery and ongoing worry-free use of our products worldwide, our group companies in Japan and abroad,and distributors in various countries, maintain strong mutual relationships to support customers and achieve sound corporate growth.

EIZO Group Global Network
The EIZO Nanao Group comprises 14 companies in Japan, Europe, the United States and China. We generate synergies in development, production and sales among our Group
companies and utilize our comprehensive, worldwide capabilities to meet the needs of the market while enhancing our product lineup and expanding our market share.

Germany

EIZO Technologies
GmbH

SwedenEizo Nordic AB

Germany

EIZO Europe GmbH
(and 5 branch offices*)

United Kingdom
EIZO Limited

USA

Germany

EIZO NANAO TECHNOLOGIES INC.

EIZO GmbH

Switzerland

EIZO NANAO AG

Japan

USA

EIZO NANAO CORPORATION(and 4 companies)

Tech Source, Inc.

China

EIZO Display Technologies (Suzhou) Co., Ltd.

Group companies
Locations of distributor
Countries in which Eizo products are sold

Our products are well received around the world, with current sales in 67 countries and territories through our Group companies and 17 global distributors. (As of September 2012)* EIZO Europe GmbH is composed of the head office in Germany and five branch offices in Austria, Belgium, Czech Republic, Italy and the Netherlands.

EIZO NANAO CORPORATION CSR REPORT 201217

Seven Promises 3
Operating as
an International Corporation

Operating as an International Corporation

Globalization of Development and Production

Seven Promises 3◆ Transition to a Direct Sales System in Europe and Reinforcement of Sales
In addition to general-purpose monitors, we have expanded into vertical markets

The EIZO Group has three production sites in Japan, two in Germany andencompassing medical, graphics, industrial and air traffic control monitors. Theseone in the United States and China, forming a network that maintains a coher-

vertical markets require close, ongoing communication with customers as well as

ent development and production system throughout the Group. This systemsolid global support. We established sales subsidiaries in the United Kingdom andenables us to apply stringent quality control from development to production,

Germany in August 2011 to more effectively respond to these specific market en-

promote the creation of development synergies that maximize the strengths

vironments and diversified sales channels. This decision required terminating ourof each base, and construct an optimal production system for each market andcontracts with local distributors to initiate direct sales through our Group company

customer. In addition, we promptly share information obtained in the course ofin Europe starting in 2012. We plan to reinforce regional sales for further businessdevelopment and production along with opinions and requests obtained fromgrowth with the two sales subsidiaries and five branch offices showing the way.

markets and customers to incorporate into product development and customer support.

≪ EIZO United ≫◆ Efforts in the Chinese Market

Nanao Corporation headquarters to tour the production site, directly exchangeGroup companies and distributors in each country periodically visit EIZO
China represents a priority market that is expected to continue growing. We areinformation with the planning and development departments, and participate

particularly focusing on expanding into the Chinese medical market. Our basic ap-

in product study sessions to deepen their understanding of EIZO and its prod-

proach is “local production for local consumption,” in which products sold in the Chi-

ucts and quality. In addition, annual EIZO United meetings gather Group com-nese market are produced by our Group company in China. Our business expansion

panies and distributors to exchange information and broaden their collectiveplans call for introducing products into the medical equipment market and buildingbase of knowledge.

a competitive advantage through aggressive product development and parts procurement at that company.

Overseas Sales Network◆ One Country/Territory, One Distributor System
From the very beginning of selling proprietary products in overseas markets, wehave adopted a one country/territory, one distributor system in which a single subsidiary or distributor is responsible for all sales within a given country or territory. This
unique system enables us to accurately discern customer needs in each country or
territory by distributors who fully understand the culture and values of their respective regions and share information more smoothly. It also allows us to offer products
through sales methods that are appropriate for each country or territory.

EIZO NANAO CORPORATION CSR REPORT 201218

Seven Promises 4

Open and Fair Trade

Seven Promises 4

Open and Fair Trade

We will conducttransactions in an
open and fairmanner.

Our suppliers are essential partners for ensuring the long-term viability of our business.
We therefore ensure transactions are conducted in a fair and equitable manner and strive to forge relationships of trust based on mutual prosperity.

◆ Relationships of Trust Based on Mutual Prosperity◆ Basic Procurement Policy

With respect to our suppliers, we are committed to forging relationships of trust based on

We deal with suppliers on an equal opportunity basis in accordance with procurement poli-mutual prosperity to build successful, long-term partnerships, and we strive to conduct trans-

cies. In conducting transactions, we select suppliers who meet our standards as listed below.

actions that are fair, equitable and transparent.
In overseas sales, authority is delegated in each country to Group companies and distributors

Selection Standard for Suppliers

who are knowledgeable about local culture and values. This has enabled us to actively engage❶ Sound managementin overseas sales based on a deep understanding of our products. We have sought to expand❷ Technological excellence that will contribute to the quality of our products

sales by building on the relationships of trust and powerful partnerships developed over time,❸ Appropriate quality, prices, and delivery schedules for products and materials to be supplied to us

cooperating with distributors in organizing exhibitions, and providing customer support.

❹ Stable supply capacity and ability to respond flexibly to fluctuations in demand❺ Compliance with relevant laws, consideration for the environment, and active involvement in◆ Enhancing Employee Awarenessenvironmental preservation

Conducting transactions in a fair and open manner requires each employee to have thenecessary level of knowledge and awareness. We seek to deepen employee understanding◆ Developing Mutual Understanding with Suppliers

and awareness with a steady flow of compliance information through our intranet and study

As a manufacturing company that strives to create excellent products that satisfy customers

sessions. Topics include anti-trust regulations directly related to business transactions as wellaround the world through our primary business operations, we place high priority on controllingas procedures for handling confidential information as required by regulations that prohibit

quality, delivery schedules and the cost of parts and materials procured from suppliers as wellinsider trading and that govern relationships with suppliers.

as confirming that supplier operations are environmentally sound. We provide opportunities forregular exchanges of information to address these issues and ensure we and our suppliers share◆ Handling of Information Obtained through Suppliers

a common understanding of each others’ management policies and technical strategies.

We obtain confidential information from suppliers and customers through proper channels
and will not seek to obtain or use information that is known to have been improperly obtainedor disclosed. We also pay the utmost care in handling information we have obtained and follow the appropriate procedures for managing it.

Materials Procurement Briefing
We conduct regular briefings with our suppliers to explain ourbasic procurement policy and request their cooperation. We also discuss the market environment and our future efforts. Many suppliers◆ Unequivocal Prohibition of Bribery
We do not offer money or other benefits in violation of the law governing relationships withattend these briefings, which contribute to a greater understandingof EIZO and to gathering information for subsequent incorporation into business decisions.

public servants and employees of public institutions. Likewise in our relationships with suppliers,
we do not offer or accept entertainment, gifts or benefits that violate the law or deviate from generally accepted business practices, and we explicitly ensure they understand our corporate stance.
EIZO NANAO CORPORATION CSR REPORT 201219

Seven Promises 5
Strong Bonds ofTrust with Stakeholders

We will seek tobuild and maintainstrong bonds oftrust withstakeholders.

Strong Bonds of Trust with Stakeholders

Seven Promises 5

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

Relationship with Each Type of Stakeholder
EIZO's Stakeholders

EIZO’s Responsibility

Communication Channels● Developing better products● Creating and offering products with new

Customers
P.21

Suppliers
P.19
Employees
P.25
Shareholders
P.22
Local
Community
P.22

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

We view suppliers as essential and important partners in thecontinuation of our business, and forges powerful relationships by
sharing management policies and technical strategies.
We are a company focused on creative development that requires
the imaginative ideas and powerful motivation of its employees.
We therefore work to create a broadminded corporate climate
and a workplace in which employees have a sense of security, andwe support our employees in their self-development.

value.
● Develping products from thecustomer’s standpoint.
● Responding clearly to questions andinquiries.
● Thoroughly responding to customer
requests and feedback.

● Setting up Contact centers as customer liaison points−Responding to questions and inquiries before and after purchase−Listening to customer opinions−Technical support● Sharing information with relevant departments and considering
incorporation into products● Interacting with customers at showrooms and through direct dialog● Providing and collecting information through participation invarious trade shows● Providing timely information via the corporate website● Building relationships of trust● Sharing information and creating mutual understanding as partners● Fair business transactions● Establishing selection standards, dealing with suppliers on an equal● Explaining corporate policy and broadening

opportunity basis

understanding among suppliers● Holding material procurement briefings● Motivating workplace environment● Providing various educational programs● Developing excellent personnel● Supporting self-development activity● Promoting work-life balance● Creating workplaces that reflect employee opinions and sound● Securing safety and healthlabor-management relations through consultation conferences

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

● Timely and appropriate disclosure of● Enhanced corporate value● Stable dividend payment

We seek to build solid relationships with the local community togain their understanding and cooperation in pursuing our business operations.
We are committed to fulfilling our responsibilities as a corporate
citizen.

● Preventing accidents and disasters at each● Receiving company visits (15 groups in 2010)

business site
● Protecting the regional environment● Cooperating with regional development
and promoting culture● Sponsoring various events and organizations

information● General shareholders meeting (holding informal gatherings)● Supporting environmental conservation activities● Corporation with Local Community and association● Participating in local voluntary activities

EIZO NANAO CORPORATION CSR REPORT 201220

Seven Promises 5
Strong Bonds ofTrust with Stakeholders

Strong Bonds of Trust with Stakeholders

Relationships with Customers

Seven Promises 5◆ EIZO Galleria Showroom (Japan)
EIZO Galleria is a showroom located in the Ginza district

We provide product information on our Website, at our showrooms and throughof Tokyo where people can test the performance of oursales and promotional activities. We strive to directly communicate with customers

products while trying out their different functions. Our ded-through various channels in order to fully answer questions and respond to customer

icated onsite staff introduces products and provides advice

requests and feedback.

to customers who want to know more about them. We also
hold seminars there on a variety of topics, such as color matching to provide informationon the operating environments of computers for office and home use and on more ef-■ Feedback system for all types of customer input

fectively using EIZO products. The showroom is also used as a communication space for

Domestic
EIZO Contact Center (Customer Liaison)
EIZO Galleria (Showroom)
EIZO Direct (direct sales website)
Websiteother types of events such as exhibitions of photographs taken by customers.
◆ EIZO Website

Sales companies/Retail stores

Overseas

Customers

Websites delivering timely information to customers in each country are managed

EIZO NANAOCORPORATION

Overseas Group companies
Customer liaison dedicated to ordering
Customer liaison for technical support

by EIZO Group companies within the appropriate cultural and business context of eachregion.

Distributors in each country

Via the EIZO Nanao Corporation website, we mainly provide information on our prod◆ Customer Liaison

ucts, along with information on customer support, hiring, corporate data and investor

EIZO Contact Centers have been set up as a convenient means for customers in Ja-

relations. In particular, we present detailed information on our products’ features andpan to communicate with the company. These centers provide answers to inquiries

appealing characteristics using images and movies in an effort to provide customers

related to product specifications and operating procedures as well as questions re-with information they need in a way that is easy to find and understand, while striving

lated to purchasing products through telephone, e-mail and fax. Our overseas Groupfor timely disclosure of necessary information. Our website is updated on a daily basis tocompanies have also established specialized contact centers for customers to placepresent information in a progressively comprehensible manner while incorporating theorders or seek technical support. Customer inquiries and requests are shared among

opinions and requests we receive from customers.

re l ev ant d ep ar t m ent s■ Breakdown of call categories

within the company andOtherutilized to guide product2.9%
Support/Warranty/Recycling/development as well as

9.0%

to prepare information

9.4%

provided to customers.

Orders/Sales service related

Troubleshooting

Functions/Operation procedures

32.2%
Japan

Germany

Sweden10.0%
Product compatibility

Consulting/Product overview

10.6%

25.9%
FY 2011

EIZO NANAO CORPORATION CSR REPORT 201221

Seven Promises 5
Strong Bonds ofTrust with Stakeholders

Strong Bonds of Trust with Stakeholders

Relationships with Shareholders

Seven Promises 5

Relationships with the Local Community

We conduct investor relations activities based on the principle of providing fair

We fulfill our responsibility as a corporate citizen through a variety of activities,

and accurate information on management policies, business strategies and financial

such as protecting the regional environment, cooperating with regional develop-

performance to all stakeholders.

ment efforts and publicly disclosing information. We are committed to developing
our business while maintaining good relationships with the local community.

◆ Basic Policy on Information Disclosure
We disclose information in a timely and appropriate manner in compliance with

◆ Relationships with Local Communities

the Financial Instruments and Exchange Act and related regulations as well as the

In Japan we take part in activities that are close to us, such as voluntary cleaning of“Timely disclosure rules and other regulations for issuers of listed negotiable securi-

beaches and shoveling snow, and we donate EIZO products to public facilities. Out-ties or valuable instruments” of the Tokyo Stock Exchange. We strive to ensure anyside of Japan, every Group company seeks to contribute to their local community inmaterial information that may affect investment decisions is delivered to all market

their own way. For example, in the United States, EIZO supports children’s programs

participants in an equitable manner.

organized by local fire and police departments, while in Germany we have established close collaboration with a university and are developing new technologies◆ General Shareholders Meetingand technological approaches with young engineers there.

We try to schedule our annual
general shareholders meeting fora date that is convenient for shareholders by avoiding days on which◆ For Regional Development in Japan (headquarters of EIZO Nanao Corporation)● For Regional Economic Development: Ishikawa Keiei Tensho Juku

The Ishikawa Keiei Tensho Juku is a project undertaken mainly in Ishikawa

other such meetings are being held. We also send out invitations as far in advance as pos-

Prefecture and managed through the concerted efforts of industry, government

sible to provide enough time for shareholders to examine the proposed resolutions andand academic institutions. The goal of the project is to enable young corporate

the state of our operations.

managers and future entrepreneurs who will bear responsibility for the future

During the general shareholders meeting, we provide opportunities for direct com-of the regional economy to acquire the practical thinking and decision-making

munication with our shareholders, such as by offering explanations about products ex-

skills required for corporate management through lectures and case studies. We

hibited at the meeting site. We also invite shareholders to an informal meeting following

support the project by providing operational advice and holding lectures, andthe general shareholders meeting to listen to their questions and comments.

EIZO’s own story is included as a case study. We also cooperate in the productionof educational texts and provide additional support by holding lectures at our of-◆ Company Presentations for Investors
We invite institutional investors to our semi-annual earnings results briefings infices and organizing company tours.
● Cooperation in Promoting Culture: Orchestra Ensemble Kanazawa

Tokyo, where we report on our management policies, activities and performance.

We co-sponsor Orchestra Ensemble Kanazawa in Ishikawa Prefecture. We have

We also hold briefings for individual investors to promote a greater awareness of ouralso co-sponsored La Folle Journée Kanazawa Music Festival as a member of thecompany.

executive committee from the very beginning. We intend to continue contributing to local culture and regional development.
EIZO NANAO CORPORATION CSR REPORT 201222

Seven Promises 6
Strict Respect andCompliance with boththe Letter and Spirit of the Law

We will respect
and comply withthe letter andspirit of laws in
our commitment
to maintain good
corporate citizenship.

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

Seven Promises 6

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

Compliance◆ Internal Notification Program
To further strengthen our compliance system, we set up a liaison point to provide answers◆ Our Philosophy on Complianceto questions and advice on problems, concerning legal issues or the content of the principles

We recognize compliance as one of the most important concerns of management for fulfill-of conduct, that may arise in the course of our operations. In addition, we strive to ensure earlying our social responsibility at the highest levels, and this includes ethical responsibility. Ourdetection of illegal activity and to prevent misconduct by operating a whistle-blowing system

action guidelines on compliance stipulate that we never become involved in illegal or unethi-

that requires officers and employees to report to the liaison point immediately upon learningcal acts, and that we provide sufficient compliance training for all officers and employees. Weof activities in violation of laws or ethics, regardless of their own involvement. We ensure thathave established an organizational structure for guaranteeing compliance and have been

the privacy of the whistle blower is protected and that the individual will not be placed at any

developing measures and systems to ensure effectiveness, and steadily promoting these mea-

disadvantage for reporting the violation. Based on established procedures, immediate actionsures based on an annual plan from a long-term perspective.

is taken in response to notification, including a fact-finding investigation, a report to the Ethics
Committee and the issuing of a termination order or an operational improvement order.

◆ Compliance Training
For officers and other employees, regulatory and other related information are always

Risk Management

available on the corporate intranet, and we regularly provide training material to encouragethem to update and enhance their knowledge toward establishing full awareness of the role

As part of our internal controls, we have established and operate a risk management system

and importance of compliance and cultivating an ethical mindset. We established the EIZO

based on a group-wide perspective. The company’s risk management activities are led by theGroup Code of Conducts—The Seven Promises to clarify our corporate philosophy and action

Management Conference and the Risk Management Committee.

guidelines in concrete terms and to serve as a standard in decision-making, evaluation and in
the actions undertaken through the course of our business activities. We also seek to instill a◆ Business Continuity Plan (BCP)

thorough awareness of compliance among all Group employees in Japan and overseas while

We have formulated a BCP for handling an outbreak of the new influenza virus as well as afurther enhancing our compliance system based on the prior establishment of the Compli-

BCP for responding to natural disasters, and these plans have been disseminated throughout

ance Committee and by further strengthening our management structure.

the company. Work is currently underway on the formulation of a plan that summarizes theconcrete steps to be taken by each department. Particularly with regard to our BCP for disaster◆ Strengthening the Information Management System

response, we will build and reinforce a system for minimizing the impact of a major disaster by

We ensure proper handling of confidential information in accordance with our establishedquickly recovering factory operations, diversifying material procurement channels, ensuring

guidelines. We have also appointed an information management representative with overall

critical devices are sufficiently spread out for greater security, and implementing other mea-

responsibility for establishing a company-wide information management system.

sures such as promptly switching to alternative parts.

EIZO NANAO CORPORATION CSR REPORT 201223

Seven Promises 6
Strict Respect andCompliance with boththe Letter and Spirit of the Law

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

Corporate GovernanceSeven Promises 6

A system of operating officers has been put into place to accelerate strategic decisions andstrengthen the business operation system, and the management conference is composed of

We strive to be a company that consistently produces satisfactory results with the support

directors (excluding the outside director), a full-time auditor and operating officers.

of our stakeholders. To this end, we view the ongoing improvement of corporate governanceas a vital management concern.

● Board of Corporate Auditors

We have adopted a system of corporate auditors. The board of corporate auditors consistsof four members (one full-time and three part-time, as of June 21, 2012) and includes three■ Corporate Governance Systemoutside corporate auditors. Corporate auditors attend key meetings of the Board of Directors.

General Meeting of Stockholders
Election/dismissal

Board of Corporate Auditors

Election/dismissal

Inspectionof accountsl

Separation ofdecision-making
andimplementation

ReportAuditing(Audit Office)ReportCorporate Philosophy
Principles of conduct

Instructions/supervision

Managing Officers
ReportLegal Auditing Departmentpany’s internal auditing department, on the review of internal regulation functions.

Instructions/supervision

Management Committee

Internal Auditing Department

such as draft proposals and contracts. He also collaborates with the Audit Office, the com-

(7members, including 1
from outside)
All members or male

Cooperation

Accounting Auditor

The full-time corporate auditor reviews and discusses with directors important documents,

Board
BoardofofDirectors
Directors

Auditing(4members, including 3 from outside)
All members or male

Auditing(General Affairs Division)

Instructions/supervision

Group companies
in Japan and overseas◆ Overview of Management Organization● Board of Directors● Internal Auditing System

The Audit Office reports directly to the president and functions as the company’s internal
auditing department. It carries out internal audits in accordance with the Basic Regulations on
Internal Audits, which specifies audit policies, and with the Basic Annual Audit Plan approvedby the president. All findings of these internal audits are reported to the president.
◆ Compensation System
With respect to bonuses paid to officers, we have endeavored to further clarify directors’

The Board of Directors meets monthly and as required to support timely decision-making for

management responsibilities for corporate performance. Also, we have introduced a perfor-

today’s business environment. All important matters related to the board’s decisions are discussed

mance-based compensation system that explicitly limits bonuses to within 3% of net income

and progress reports on business tasks are presented on a regular basis. Among the seven Boardfor each fiscal year (up to a maximum of ¥200 million) in an effort to ensure transparency ofof Directors, we have appointed a single outside director (as of June 21, 2012) to provide supervi-

the calculation method. (Partially revised in June 2012)sion and advice from a third-party perspective and thereby increase the transparency of management decisions. We also appointed one outside director and two outside corporate auditors as
independent directors as stipulated under Tokyo Stock Exchange regulations.

◆ Internal Control System
We established our basic policy underlying a system that ensures directors execute theirtasks in compliance with the law and the articles of incorporation, along with a system for● Management Committee

ensuring the appropriateness of other operations, at a Board of Directors meeting in May 2006

The management committee is convened as required to support decision-making by the(revised May 2012). Based on the policy, we have proceeded to develop related systems andBoard of Directors. The conference studies and reports on measures regarding key businessto complete the groundwork for establishing an internal control system. We have also estab-

operation issues and tasks at hand and their progress.

lished in an internal control system for financial transactions in accordance with the Financial
Instruments and Exchange Act, and exercise thorough control over our financial operations.
EIZO NANAO CORPORATION CSR REPORT 201224

Seven Promises 7
Broadminded
Corporate Culture

We will respecthuman rights andvalue a broadminded corporate
culture.

Broadminded Corporate Culture

Seven Promises 7

EIZO is a company focused on creative development that requires the imaginative ideas and powerful motivation of all its employees.
We therefore take various measures to create a broadminded corporate culture by developing an environment that encourages free exchange of opinions and a workplace in which employees have a sense of security.
Many of our top managers at overseas Group companies are local personnel, and we pay due consideration to the diversity of each country’s cultures and customs to create the most suitable working environments.

Laying the Foundations for a Motivating Workplace◆ Developing Trust-Based Labor-Management Relations
Mutual understanding is the cornerstone of labor-management relations. In keep-

We undertake various activities to create a motivating workplace environment

ing with this fundamental point, we endeavor to develop trust in labor-managementthat cultivates excellent human resources for the sake of the long-term growth of ourrelations by encouraging dialog through the establishment of a consultation confer-personnel as well as further corporate development.

ence. These conferences discuss a wide range of topics, from labor-managementagreements and reduction of overtime to ways for improving the work-life balance◆ Employment

and employee benefit packages. We also maintain good labor-management relations

To ensure that EIZO continues to develop cutting-edge imaging technology for creat-at Group companies under the specific circumstances of each country or company.

ing and offering new values as a company focused on creative development, we are
expanding our engineering staff and creating a motivating workplace for our employees.

◆ Promoting the Careers of Persons with Disabilities
Persons with disabilities are■ EIZO Group including overseas affiliates (as of March 31, 2012)
Number of Employees(regular employees)

1,553

engaged in careers at many of ourEngineering staff

530

Foreign nationals

327■ Percentage of Employees Who Are Persons with Disabilities(EIZO NANAO CORPORATION)

worksites, and as of March 2012, 17

March 2009

March 2010

March 2011

disabled people are currently em-

2.21

2.24

2.09

ployed by the Group. This represents 2.09% of the workforce at EIZO Nanao Corporation,■ EIZO NANAO CORPORATION (as of March 31, 2012)

Number of Employees(including term employees)

Graduate recruits
Joined company in April 2012

Mid-career recruits
Joined company from April 2011
through March 2011

Average age
As of March 31, 2012

Average length of service
As of March 31, 2012

Average annual working hours
FY 2011

756

21

13

exceeding the minimum legal requirement of 1.8%. We intend to continue improving
Male

400

Female356

Engineering staff

235

Foreign nationals

17

our workplace environment and expanding work opportunities for the disabled.
◆ Paying Due Respect to Human Rights
To curtail behavior that undermines individuality at the workplace and throughout our operations, such as forced labor and child labor, discriminatory remarks or
actions, and sexual or power harassment, we have clearly stated our position on thematter in our principles of conduct and conduct educational activities to keep all

37.2

employees, including those at Group companies, informed of this position.

13.8 years
1,908 hours

EIZO NANAO CORPORATION CSR REPORT 201225

Seven Promises 7
Broadminded
Corporate Culture

Broadminded Corporate Culture

Promoting Work-Life Balance

Seven Promises 7

take sufficient paid leave. As a result of ■ Average Working Hours (EIZO NANAO CORPORATION)
these efforts, we were able to reduce

FY 2009

FY 2010

FY 2011

To respond to diversifying work styles and ensure employees are able to work withaverage actual working hours in fiscal

1,913 hours

1,937 hours

1,908 hours

a sense of satisfaction, accomplishment and happiness, we believe it is important for2011. We are striving to further im-

employees to have extra time to refresh their minds and bodies.

prove these results in fiscal 2012.

◆ Opportunities for Recreation and Exchange

Human Resource Development Efforts

We support employees in their◆ Reinforcing Management Capabilities

varied sports and cultural activities
within the company by supple-

Management-level employee training is a high priority at EIZO. We ensure the practical use-

menting costs and permitting use

fulness of training by setting a theme for each fiscal year, such as strategic thinking, customerof company facilities to encourage participation. We also offer

development or operational reform.
Training on compliance, fair job evaluation and effective allocation of work is also provided

opportunities for recreation and exchange through numerous affiliated accommodation facilities and sports gyms.

for newly appointed managers to deepen their understanding of these areas.

◆ Supporting Childcare and Nursing Care

◆ Emphasis on Educating Younger Employees

Under the respective laws of■ Number of Applicants (EIZO NANAO CORPORATION)First-year employees participate in programs on organizational structure, basic knowledge

FY 2009

FY 2010

FY 2011

for adulthood and independence, on-site factory training and on-site sales training to learn

Childcare/Nursing Care
Leave

23

29

29

about the foundations of our company. We provide technical training for new engineering

Reduced Working Hours For
Childcare or Nursing Care

18

24

31

each country, we support various
programs including maternity leave,
childcare leave and nursing careleave, shorter working hours, andstaff to ensure they acquire a broad foundation of knowledge on our basic technologies. We
also conduct a variety of programs specifically targeting young employees. On-the-job train-

leave to care for sick children. We have developed a supportive working environment thating (OJT) is emphasized in each department, and managers draw up three-year career plansincludes measures such as reducing working hours up to two hours per day for childcare toin consultation with young employees, providing a basis for a systematic OJT program.

flexibly meet employee needs. We plan to enhance our programs for supporting employees with childcare or nursing responsibilities by introducing benefits such as childbirth leave
for prospective fathers.

◆ Supporting Career Development
We encourage employee career development by providing a complete and diverse range ofself-development programs, including language classes, seminars on business skills (logical think-◆ Shorter Actual Working Hours

ing, presentation skills) and by subsidizing the cost of distance learning or obtaining certifications.

As part of our efforts to decrease the number of working hours, we undertake work im-

Our overseas affiliates also provide similar support; for example, EIZO GmbH in Germany uses

provement activities on a unit-by-unit basis and observe a weekly no-overtime day. We also

its network with the local chamber of commerce to organize seminars that enhance professional

vigorously encourage employees to take compensation days off for working on holidays andskills and encourages employees to attend them.

EIZO NANAO CORPORATION CSR REPORT 201226

Seven Promises 7
Broadminded
Corporate Culture

Broadminded Corporate Culture◆ Development of Global Human Resources

Seven Promises 7

We will continue these efforts by identifying and reducing risks through risk assessments andWe are developing global human resources by providing English and Chinese classes, aswell as Japanese classes at overseas affiliates, and holding seminars on cross-cultural commu-

safety screening of newly installed machinery and equipment, and by raising awareness on
safety through workplace patrols and employee training.

Voice fromWorksite
nication. We also run an exchange program
foraengineers
between overseas affiliates, in which

employees are dispatched for a short term of 6 to 12 months. The goal of this program is to
Voice from a Worksite
increase the number of employees who
can work effectively with different cultures and man-age technology from a global perspective, and to cultivate new technological expertise.
Voice from a Group Company◆ Efforts in Health Management
Our efforts in this area include regular health checkups and preventive checkups for lifestylerelated diseases, dedicated contact points for responding to employee anxieties and concerns,
mental health checkups and face-to-face consultations with industrial physicians, and follow-up
guidance based on the results of health checkups. We will seek to safeguard employee physical

Voice from a Worksite

and mental well-being by raising individual awareness of health management and achieving a

I was temporarily transferred to Voice
TechfromSource,
a WorksiteInc. in Florida, U.S.A. from January to
December 2011 as part of a technical exchange. I was responsible for developing agraphics board used in air traffic control systems. I gained valuable experience in customizing the product for a specific customer using new technology that was still underreview in Japan, all while living in a culture unfamiliar to me. My interactions with the U.S.
development team helped me learn about the differences between
the Japanese and American ways of thinking and the considerable

goal of 100% follow-up.
Basic Policy on Safety and Health (Safety and Health Management Regulations)

The basic policy on the safety and health of EIZO Nanao Corporation is intended to create a healthy and safe working environment for all employees. Thisis achieved through management of risk factors related to safety and health.Specifically, we constantly strive to identify unacceptable risk factors in the workplaceand neutralize them, with the ultimate goal of eliminating workplace accidents.

gap between the scope and level of work expected of an engineer
in a work setting different from those in Japan. I am convinced thisexperience will prove invaluable as I engage in future joint development projects with overseas Group companies and develop mycareer as a technical leader.

Kenji Kiyota
Joined EIZO in 1999
2nd Product Development Division
Visual Products
Development
Department

Medium-Term Plan (Fiscal 2010 to 2012)
Promoting and establishing voluntary safety management and health management based on self-awareness.
■ Fiscal 2012 Targets/Key Action Points and Fiscal 2011 Performance

Securing Safety and Health
The ongoing development, design and production of high value-added productsManagement Area

SafetyManagement

requires not only a significant investment of management resources but also a consistently safe workplace and efforts to safeguard employee health.
◆ Efforts in Safety Management
We strive to prevent workplace accidents by conducting risk assessments for each work-

Targets/Key Action Points
Zero occurrence of workplace accidents, including traffic accidents
Key point : Ongoing risk assessment

Fiscal 2011 Performance

Evaluation

2・Workplace accidents
Frequency rate
1.28
Severity rate
0.0005・Traffic accidents during working hours
3 (offenses)
0・Unacceptable risks

almostFollow-up

almost100% follow-up on checkup results
HealthManagement

Key point: Promotion of healthmanagement activities based on selfawareness

91.6%*Workplace accidents frequency rate : Number of deaths and injuries caused by industrial accidents per million working hours. Used to express accident frequency.
*Workplace accidents severity rate : Number of work-days lost caused by industrial accidents per million working hours. Used to express accident severity.

place in addition to KYT (hazard prediction training), “hiyari-hatto” (close call) and 5S activities.
EIZO NANAO CORPORATION CSR REPORT 201227

Appendix

AppendixSocial and Environmental Timeline
Product Standards
1988

Started utilizing bromine-free flame retardants in plastic parts.

1992

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

1993

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

1995

Corporate Action

Obtained ISO 9002 certification for quality management system.
Obtained ISO 9002 for EIZO NANAO MS CORPORATION.

1996

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

Appointment of Environmental Management Officer to General Affairs Division.

1997

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

Adoption of Environmental Policy.
Obtained ISO 9001 certification for quality management system.

1998

Began working toward TCO’99 certification.

Obtained ISO 14001 for environmental management system.

1999

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

Closed waste incinerators.
Established environmental preservation website on company intranet.

2000

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

2001

Began Eco Mark registration.
PC Green Label registration.

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

2002

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

Introduced monitoring and computerization systems.

2003

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

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

2004

Launched efforts to comply with the RoHS Directive.

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

2005

Began product shipments in compliance with the RoHS Directive.

Issued first Social and Environmental Report.
Obtained ISO 14001 certification for environmental management system, including at sales offices.
Obtained ISO 13485 for quality management system for medical equipment.

2006

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

EIZO Support Network Corporation was added to the scope of operations included in our ISO 13435 certification.
EIZO Galleria locations were added to the scope of operations included in our ISO 14001 certification.

2007

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

Substantial increase in energy consumption as R&D building is completed and brought into use.
Obtained ISO 9001 and ISO 13485 for EIZO GmbH.

2008

Adopted EIZO Eco Products 2009 standards.
Began working toward EPEAT certification.

2009

Began working toward TCO Display 5.0 certification.
Began working toward ENERGY STAR (version 5.0) certification.
Launched efforts to comply with the Home Appliance Recycling Law (Act for Recycling ofSpecified Kinds of Home Appliances).

Issued first CSR Report.
Added EIZO Nanao MS Corporation to scope of operations included in ISO 14001 certification.
Obtained ISO 14001 for EIZO GmbH.

2010

Began complying with Chinese energy efficiency labeling standards.
Upgraded chemical substance survey system based on new industry format.

ISO 9001 certification at EIZO Display Technologies (Suzhou) Co., Ltd.

2011

Obtained ISO 9001, ISO 13485 and ISO 14001 certification for EIZO Display Technologies (Suzhou) Co., Ltd.

EIZO NANAO CORPORATION CSR REPORT 201228

Appendix

Appendix

GRI Index
Sustainability Accounting Co., Ltd. (Chiyoda-ku, Tokyo) conducted a third-party check to confirm that the report meets Application Level B.
■ GRI Guidlines Index (version 3.1)
Item

Indicator

Report Page

1. Strategy and Analysis
1.1 Statement from the most senior decisionmaker of the organization about the relevance of sustainability to the organization and its strategy. 3
1.2 Description of key impacts, risks, and opportunities.
3
2. Organizational Profile
2.1 Name of the organization.
4
2.2 Primary brands, products, and/or services.
4
2.3 Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures.
4
2.4 Location of organization's headquarters.
4of countries where the organization operates, and names of countries with either major operations or that are specifically17
2.5 Number
relevant to the sustainability issues covered in the report.
2.6 Nature of ownership and legal form.
4, 22
2.7 Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).
4
2.8 Scale of the reporting organization.
4
2.9 Significant changes during the reporting period regarding size, structure, or ownership.
Not applicable
2.10 Awards received in the reporting period.
10
3. Report Parameters
REPORT PROFILE
3.1 Reporting period (e.g., fiscal/calendar year) for information provided.
2
3.2 Date of most recent previous report (if any).
2
3.3 Reporting cycle (annual, biennial, etc.).
2
3.4 Contact point for questions regarding the report or its contents.
2
REPORT SCOPE AND BOUNDARY
3.5 Process for defining report content.
2
3.6 Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers).
2
3.7 State any specific limitations on the scope or boundary of the report.
2
for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect Not applicable
3.8 Basiscomparability from period to period and/or between organizations.
measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to Notes are next to
3.9 Data
the compilation of the Indicators and other information in the report.
the charts.
3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement.
Not applicable
3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.
Not applicable
GRI CONTENT INDEX
3.12 Table identifying the location of the Standard Disclosures in the report.
29
ASSURANCEA third-party
3.13 Policy and current practice with regard to seeking external assurance for the report.
review is on page30.
4. Governance, Commitments, and Engagement
GOVERNANCE
structure of the organization, including committees under the highest governance body responsible for specific tasks, such 24
4.1 Governanceas setting strategy or organizational oversight.
4.2 Indicate whether the Chair of the highest governance body is also an executive officer.
24
organizations that have a unitary board structure, state the number of members of the highest governance body that are
4.3 For24
independent and/or non-executive members.
4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.
22
between compensation for members of the highest governance body, senior managers, and executives, and the organization's 24
4.5 Linkage
performance.
4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided.
24
for determining the qualifications and expertise of the members of the highest governance body for guiding the organization’s 24
4.7 Process
strategy on economic, environmental, and social topics.
developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social 1
4.8 Internallyperformance and the status of their implementation.
Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environ- 1
4.9 mental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed
standards, codes of conduct, and principles.
for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and 24
4.10 Processes
social performance.
COMMITMENTS TO EXTERNAL INITIATIVES
4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organization.
1, 13
developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes 1
4.12 Externallyor endorses.
Memberships in associations and/or national/international advocacy organizations in which the organizations.
13
substantive funding beyond routine membership dues;or
4.13 -- Provides
Participates in projects or committees- Views membership as strategic
STAKEHOLDER ENGAGEMENT
4.14 List of stakeholder groups engaged by the organization.
20
4.15 Basis for identification and selection of stakeholders with whom to engage.
20
4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group.
20
Key
topicsandconcerns
that
have
been
raisedthroughstakeholder
engagement,
and
how
the
organization
has
responded
to
those
key
19, 21, 22,
4.17 topics and concerns, including through its reporting.
25-27

Item

Indicator

Report page

5 Management Approach and Performance Indicators
Economic
Disclosure on Management Approach
7
MARKET PRESENCE
EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation.
19
INDIRECT ECONOMIC IMPACTS
and impact of infrastructure investments and services provided primarily for public benefit through commercial, in 22
EC8 Development
kind, or pro bono engagement.
Environmental
Disclosure on Management Approach
11
ENERGY
EN3 Direct energy consumption by primary energy source.
14
EN4 Indirect energy consumption by primary source.
14
EN5 Energy saved due to conservation and efficiency improvements.
15
Initiatives
toprovideenergy-efficientorrenewableenergybased
products
andservices,andreductions
inenergyrequirements
12,13
EN6 as a result of these initiatives.
EN7 Initiatives to reduce indirect energy consumption and reductions achieved.
15
WATER
EN8 Total water withdrawal by source.
14
Emissions, Effluents, and Waste
EN16 Total direct and indirect greenhouse gas emissions by weight.
14
EN22 Total weight of waste by type and disposal method.
14
Products and Services
EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.
12, 13COMPLIANCE
value of significant fines and total number of non-monetary sanctions for noncompliance with environmental laws and 15
EN28 Monetary
regulations.
Product Responsibility
Disclosure on Management Approach
8
PRODUCTS AND SERVICES LABELING
Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information We have not identified
any incident of nonPR4 and labeling, by type of outcomes.
compliance with any regulation voluntary codes.
Labor Practices and Decent Work
Disclosure on Management Approach
25
EMPLOYMENTLA1 Total workforce by employment type, employment contract, and region.
25
LA2 Total number and rate of employee turnover by age group, gender, and region.
25
LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations.
26
OCCUPATIONAL HEALTH AND SAFETY
LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work related fatalities by region.
27
training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or 27
LA8 Education,community members regarding serious diseases.
TRAINING AND EDUCATION
for skills management and lifelong learning that support the continued employability of employees and assist them in 26, 27
LA11 Programs
managing career endings.
Human Rights
Disclosure on Management Approach
1, 25
NON-DISCRIMINATION
Total number of incidents of discrimination and actions taken.
We have not identified
any incident of nonHR4
compliance with any
discrimination.
Society
Disclosure on Management Approach
23
CORRUPTION
Actions taken in response to incidents of corruption.
We have not identified
any incident of nonSO4
compliance with any
corruption.
ANTI-COMPETITIVE BEHAVIOR
SO7 Total number of legal actions for anticompetitive behavior, anti-trust, and monopoly practices and their outcomes.
Not applicable
COMPLIANCE
SO8 Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with laws and regulations. Not applicable

EIZO NANAO CORPORATION CSR REPORT 201229

Third-Party Review

Third-Party
Review
To President Yoshitaka Jitsumori,
Eizo Nanao Corporation

Takashi Fukushima
President, Sustainability Accounting Co., Ltd.

EIZO is a corporate group that has firmly established its position among the myriad monitor makers around the world by deftly combining threeelements: a business model, excellence in development and quality, and a global network for consistently supplying high-quality monitors that satisfy
the diverse performance requirements of various fields. As a group that pursues business in the global marketplace, EIZO is also expected to meetglobal standards in its CSR efforts, and this requires serious consideration within the context of its relationships with a broad range of stakeholders.
Seen from this perspective, EIZO has vigorously responded by upholding its policy of recognizing environmental considerations as part and parcelof product quality, a stance that has been highly regarded in Europe, where companies face stringent environmental standards. EIZO also participatesin the formulation of environmental standards, such as TCO and ENERGY STAR. More recently, the company has achieved progress from the perspective of management as well by signing the United Nations Global Compact. In addition, EIZO reviewed its principles of conduct toward integrating itwith the Seven Promises on which the company's CSR Report is based, leading to a revised code of conduct under seven themes and thereby further
evolving its CSR commensurate with EIZO’s standing as a global corporation.
The next step I expect from EIZO is the formulation and disclosure of medium-term goals for CSR and an annual progress report on activities foraccomplishing these goals expressed in quantitative benchmarks. From the financial perspective, EIZO has clearly defined its medium-term goals in
the “100B AGAIN!” mid-term business plan. Although it may be too early to expect the company to progress as quickly in its CSR efforts, the disclosureof concrete KPIs (key performance indicators) is being recognized worldwide as an integral element of CSR. I look forward to seeing EIZO attain evenhigher levels of achievement in its initiatives and disclosure.

EIZO NANAO CORPORATION CSR REPORT 201230