Social and Environmental Report

2007

April 2006–March 2007

SOCIAL & ENVIRONMENTAL REPORT 2007

EIZO NANAO CORPORATIONCONTENTS
Corporate Information

䡵 Environmental Risk Management ..................................... 12

Business Expansion

䡵 Environmental Education .................................................... 12

President’s Message .................................................................. 2

䡵 Environmental Objectives and Targets/Performance
Report .................................................................................... 13

Social Contribution through Business Activities ................ 3-4
Efforts to Earn Trustworthiness as a Company ................. 5-6

䡵 Environmental Accounting ................................................. 14

Environmental Performance

Social Report ................................................................. 7-10
CSR Management ...................................................................... 7䡵 Overall Environmental Impact of Business Activities(Fiscal 2006) .......................................................................... 15
䡵 Collection and Recycling of Used Products ................... 16• Corporate Philosophy, Action Guidelines, and Approach to CSR

䡵 Efforts to Prevent Global Warming ................................... 17

Corporate Governance ............................................................... 8

䡵 Resource Conservation ...................................................... 17

Compliance .................................................................................. 8

䡵 Increasing the Recycling Rate and Reducing Waste ..... 18

Relations with Customers .......................................................... 9

䡵 Ensuring the Quality and Environmental Complianceof Our Products .................................................................... 19

Relations with Suppliers ............................................................ 9
Relations with Employees ....................................................... 10

䡵 Compliance with the EC RoHS Directive ........................ 20

Relations with the Community ............................................... 10

䡵 Compliance with J-Moss ................................................... 20
䡵 Management of Chemicals ............................................... 20
䡵 Green Procurement ............................................................ 20

Environmental Report .......................................... 11-22

Affiliated Company Data

Environmental Management

䡵 Eizo Nanao MS Corporation, Hakui Plant ....................... 21

䡵 Environmental Policy ............................................................ 11䡵 Eizo Nanao MS Corporation, Nanao Plant ..................... 21

䡵 Environmental Management System ................................ 11

Environmental Timeline ....................................................... 22

Social andEnvironmental
Report 2007

SOCIAL & ENVIRONMENTALREPORT 2007

1

Editorial policy

This year we have endeavored to present easily understandable information on Eizo Nanao
Corporation’s product lineup and connections with society, based on the idea that our
products form a major part of our influence on society as a company (our social
contribution). In addition, fiscal 2006 is the first year of our medium-term management plan,
and we have included information on our business plans on this basis.
Scope of report
Eizo Nanao Corporation (non-consolidated) (Data on consumption of energy and resources,industrial waste output, etc., includes totals for affiliated companies that are located on thesame site as Eizo Nanao Corporation: Irem Software Engineering Inc., Eizo Support
Network Corporation, and Nanao Agency Corporation. Totals for branch offices and user
support centers of Eizo Nanao Corporation and its affiliates are not included.)
Period covered
April 1, 2006–March 31, 2007
Production guidelines
Based on the Ministry of the Environment’s Environmental Report Guideline (2003 edition).
Issue date
September 2007
Issue date of next report September 2008
Contact information
Environmental Management
Tel: +81-76-274-2409 Fax: +81-76-275-4125 E-mail: ecology@eizo.co.jp

President’s Message

I intend to engage in“CSR management” based onincreasing corporate value,
and to meet the expectationsof our stakeholders.

September 2007

Yoshitaka Jitsumori
President, Eizo Nanao Corporation

In the Eizo Nanao Corporate Philosophy we state that ourcompany “pushes the limits of technology to create visualsystems of the utmost quality.” Our second medium-term
management plan (covering a three-year period) spells out ourcommitment to continuing to increase corporate value by
cultivating new business opportunities and sustained growth. To
achieve this we will differentiate ourselves overwhelmingly interms of quality, products, and services, in the process reinforcing the appeal of our product lineup and strengthening ourposition in the business sectors where we are active. I am
conscious of the fact that our responsibility to society consists
precisely of these efforts to continue to increase corporate
value. Our commitment to our products, which has remained
constant since the company’s founding, is the mindset thatmakes creating and increasing corporate value possible. This is
why our products will remain the key element of our future
efforts to make a social contribution.
The corporate identity of our company lies in quality. At thedevelopment stage we pay constant attention to such aspects
of product quality as environmental and social impact. We
exercise particular care regarding quality control in our products
for the healthcare market, where the special characteristics ofthis application demand special attention. This is another way inwhich we build corporate value.

We are constantly aware of the fact that a vital aspect of any
product is its impact on the environment. As environmental
standards become ever stricter, we are making ongoing efforts
to improve the environmental compliance of our products in atimely manner.
I am also aware that from the standpoint of corporate ethics,
sustainable creation of value is assured by good corporate
governance. With this in mind, we are working to further
strengthen our corporate governance system.
Continued value creation (growth) is something that can only bebuilt on a foundation of harmony with society as a whole. It
therefore goes without saying that we must maintain a balance
between the goals of efficiency and competitiveness on the one
hand, and social responsibility and humanity on the other.
In the years ahead there will be even stricter requirements for
management based on corporate social responsibility than isalready the case today. I very much look forward to hearing theviews and suggestions of our customers and business partners
regarding how best to meet these expectations while at thesame time further developing the business activities of Eizo
Nanao Corporation and increasing corporate value.

2

SOCIAL & ENVIRONMENTALREPORT 2007

Business Expansion

Building on our strengths to differentiate ourselves overwhelmingly and create
new fields of business
Expanding the possibilities ofimaging with high-level expertiseand technology focused on ourfield of specialization

Our Fields of BusinessMedium-term Management Policy
LCD computer monitors|LCD monitors for the

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

Second Medium-termManagement Plan

Response by market

Our lineup of products offers added value in the form of function and performance tailoredto the requirements of specific market segments. Our policy of 100% in-house development
and 100% domestic production enables us to supply superior products to a diverse market.

general market

LCD monitors for the general market•Createnew added value with support for video technology.

Education, public facilities,
showrooms, dealing rooms

Computermonitors|Monitors for medical applications
Picture archiving and communication
systems (PACS), modality (medical
imaging equipment), electronic medical
records, ultrasound diagnostics

LCD monitors for the medical market•Striveto become the top general medical monitor manufacturer
worldwide.

adoption of new• Activetechnology
for diverse|Monitors for graphical• Support
requirements and strong
cost competitiveness

LCD monitors for the graphics market•Work
to extend growth and expand our foothold as a leading

applications

monitor manufacturer worldwide.

Design, editing, printing, CAD

Monitors for amusement applications
Core competenceHardware technology
Software technology
Peripheral technology

Further strengthen technical capabilities in software andhardware.
Continue to supply attractive products.

Monitors for amusement
applications(FY 2006 to FY 2008)

Differentiating our quality, products, andservice through 100% domestic production
and 100% in-house development

Other

monitor and software• Integrated
technology

LCD TVs•Achieve
integration of PC monitor and TV functions.
Extend scope to next generation of TVs/monitors.

Competition is growing increasingly fierce in the monitor
and television markets. Our policy aims to cultivate new
business and sustain growth by bolstering our strengths
in the products and fields where we excel, making themost of the strength of our brand plus the technology andexpertise we have built up over time.
Based on this policy, we are strictly adhering to ourcommitment to 100% domestic production and 100%in-house development. Our second medium-term
management plan sets targets of ¥130 billion in sales and¥16.3 billion in ordinary income.

Other

Game software•Increaserecognition of the Irem brand.

|LCD TVs (FORIS.TV)

Develop characters that will appeal to fans.

|Home game software

Sales
Direct sales•Achievesales of ¥10 billion (in fiscal 2008).

Creating new markets

Corporate Information
Company Name:
President:
Established:
Capital:Address:

Eizo Nanao Corporation
Yoshitaka Jitsumori
March 6, 1968
¥4,425,745,500
153 Shimokashiwano, Hakusan,
Ishikawa 924-8566, Japan
Tel: +81-76-275-4121
Fax: +81-76-275-4125
Employees:
714 (as of March 31, 2007)
Sales:¥9.39 billion (as of March 31, 2007)
Corporate Group Employees:
1,224 (as of March 31, 2007)
Consolidated Group Sales:¥95.6 billion (as of March 31, 2007)

Business Activities: Development, design, manufacturing,and sale of display monitors andperipherals, amusement products,
and imaging system software䡵 Domestic Sales Offices
1st Division(Minato-ku, Tokyo)
Sendai Sales Office(Sendai)
Nagoya Sales Office(Nagoya)
Hokuriku Sales Office(Hakusan, Ishikawa)
Osaka Sales Office(Osaka)Fukuoka Sales Office(Fukuoka)
2nd Division(Hakusan, Ishikawa)䡵 Eizo Galleria Locations

Eizo Galleria Sendai
Eizo Galleria Ginza
Eizo Galleria Osaka
Eizo Galleria Fukuoka(Sendai)(Chuo-ku, Tokyo)(Osaka)(Fukuoka)䡵 Domestic User Support Centers

Eizo Support Sendai
Eizo Support Tokyo
Eizo Support Nagoya
Eizo Support Hokuriku
Eizo Support Osaka
Eizo Support Fukuoka(Sendai)(Ota-ku)(Nagoya)(Hakusan, Ishikawa)(Amagasaki)(Fukuoka)䡵 Affiliated Companies

Eizo Nanao MS Corporation
Irem Software Engineering Inc.
Eizo Support Network Corporation
Eizo Engineering Corporation
Nanao Agency Corporation
Eizo Nanao Technologies Inc.
Tech Source, Inc.
Eizo Europe AB
Eizo Nanao AG
Eizo GmbH(Hakui, Ishikawa)(Hakusan, Ishikawa)(Hakusan, Ishikawa)(Hakusan, Ishikawa)(Hakusan, Ishikawa)(U.S.A.)(U.S.A.)(Sweden)(Switzerland)(Germany)䡵 Trends in Sales and Operating Income (consolidated and non-consolidated)
Consolidated sales (¥100 million)
Non-consolidated sales (¥100 million)
1000

800

916
775

880

910
880

850

956
939

Consolidated operating income (¥100 million)
Non-consolidated operating income (¥100 million)
120

103

117

117
117

FY 2006

FY 2007

100

727
80

600

62

60
400
40
200

0

119

114
118

100

818

50

20

FY 2003

FY 2004

FY 2005

FY 2006

FY 20070

FY 2003

FY 2004

FY 2005

Social Contribution through Business Activities

EIZO Solutions

We deliver imaging solutions for applications ranging from professional work to household use.

For Medical Applications
The importance of monitors for the healthcare field is increasing as electronically based medical
records and digital medical imaging become more widespread. EIZO supplies LCD medical monitor
solutions that meet specific requirements and provide high-precision display capabilities, reliability, andeasy maintenance. We also produce multipurpose monitors for bedside use and image transmission
systems for emergency support.

Monitors
for generalapplications

For Graphical Applications
Professionals working in the graphics field, including designers, photographers, and computer graphics
creators, demand extremely accurate color reproduction. EIZO has been known for excellent color
reproduction since the days when CRT monitors were the mainstream and has enjoyed strong support
from “color professionals.” Today we supply LCD monitors for graphical applications that provide
superior color reproduction, display stability, and high-precision calibration support.

FlexScan®

Monitors
for medical
applications

For Business Applications
Traders in dealing rooms, who track large volumes of data simultaneously and must not miss evenmomentary fluctuations, demand excellent display performance and reliability from their monitors. In
fact, EIZO supplies high-performance monitors to meet a wide range of requirements in the businessworld. Our products are used for many business applications in addition to dealing rooms.

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

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

LCD TVs

RadiForce®

Monitors forgraphical
applications

Other

5.4%

ColorEdge®

LCD TVs, etc.

Computer monitors

41.1%

Monitors for general applications
Monitors for medical applications
Monitors for graphical applications

Sales breakdownby market

Consolidated sales¥95.6 billion(Fiscal 2006)

FORIS. TV®

Other 2.0%
North America 2.6%
U.S.A.
CanadaMonitors foramusement
applications

Monitors for amusement
applications

53.5%

South Korea
TaiwanSingapore
OthersEurope 19.9%
Germany
UK
Switzerland,
SwedenOthersSales breakdownby area

Consolidated sales¥95.6 billion(Fiscal 2006)
Japan
75.5%

©SANYOBUSSAN CO., LTD.

SOCIAL & ENVIRONMENTALREPORT 2007

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4

SOCIAL & ENVIRONMENTALREPORT 2007

Efforts to Earn Trustworthiness as a Company

Creating Direct Points of Contact with Customers and the Community
We are working to expand the range of contact points with individual and corporate customers to gain support as a leading monitor
brand and enable our technology to be utilized in many diverse areas. We also consider the effect of our products on society, andhave established the facilities and venues described below to enable customers to query us directly regarding our company andproducts. This is an important aspect of our efforts to ensure accountability. We have specialized departments in each market for
dealing with corporate customers, and our sales facilities and agents provide support for specific needs. In addition, the Eizo Galleria
showrooms and Eizo Direct online shopping site give us direct contact with general consumers.
PRODUCTS

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

Environmental Labeling and ISO 14020

Type I: ISO 14024

Premium LCD TVs

FORIS.TV
Launched in 2004, our FORIS.TV
series of premium LCD TVs
employs the advanced image
reproduction technology developed
for the FlexScan, which hasreceived overwhelming acclaim
from professionals in the graphic
arts industry.

Type II: ISO 14021

A program under which a license to use a label is granted
based on inspection by a third party to verify compliancewith a set standard of environmental compliance.

Individuals

SHOPPING AND COMMUNICATION

A program under which a company asserts the environmental
compliance of its products (or services) with standards it hasestablished itself. This is referred to as a self-declaration typelabeling program, and the environmental assertions are
determined by each individual company or organization.

TCO'03/TCO'06

Showrooms

Products

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

EIZO Eco Products 2004/2006
Energy Star and International
Energy Star Program

PC Green Label

Type III: ISO 14025
A program under which theenvironmental characteristics ofproducts are disclosed as
quantitative LCA* data. A major
point of difference from Type I
and Type II labeling is that thedisclosed data can be judged by
the customer.

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

COMMUNICATIONSHOPPING

Customer liaison

Online shopping site

EIZO Contact Center

EIZO Direct
This Web service sells our products such as the
FORIS.TV directly to consumers. It offers a variety ofservices designed with customers in mind, including
home setup, collection of used products, andfinancing. There are separate Web sites for individualand corporate customers, offering products andservices tailored to their needs.

Communication

Established in January 2004, the Eizo Contact Center
enables us to respond directly to inquiries from
customers. Queries cover topics such as productsales, specifications, and functions; related laws andregulations; and technical matters.

Consulting

Corporations
Eizo Nanao Corporation Sales System
The domestic sales department comprises the Volume Sales Distribution Section, Corporate Sales Section, Medical Section, Graphics Section, andSystem Section. These sections track customers in their fields of specialization and implement focused sales promotions. In addition, five regionalsales offices provide nationwide sales coverage in Japan and serve as direct contact points with customers. Overseas, distributors in numerous
countries worldwide and local subsidiaries in key markets of Europe and North America work on sales of our line of LCD computer monitors.

Creating Products that Provide Added Value

Color vision deficiency simulation monitors supporting color universal design for people with impaired color vision
We develop products for customers with a variety of special requirements. One example is our color vision deficiency
simulation monitors. Not all people perceive colors in the same way. Many people have impaired color perception caused bygenetic factors or diseases affecting the eyes. This means that designers must pay attention to such matters as the way theyuse colors and differences in brightness if they want to ensure that information is conveyed accurately to all users. Thisapproach, based on seeing things from the user’s viewpoint, is called color universal design. Our color vision deficiency
simulation monitors enable designers and managers involved in the production of printed materials and displays to meet theneeds of persons with impaired color vision in a better way by putting color universal design into practice.

SOCIAL & ENVIRONMENTALREPORT 2007

5

RoHS Directive/J -Moss (JISC0950)
Pb,
Cr (VI)
Pb,Cr (VI)

EU RoHS Directive

EIZO Eco Products
2006/2004
In addition to compliance with applicablelaws and third-party standards, we
implemented a system called Eizo Eco
Products 2002 in October 2002 to certify
products as environmentally friendly basedon standards developed in-house. Thiswas succeeded by Eizo Eco Products
2004 and then by Eizo Eco Products 2006
(EEP06), which was adopted in June
2006. EEP06 is based on regulations
reflecting new environmental considerations, such as the EC RoHS Directive thattook effect in July of last year, as well as
the basic environmental concepts of thethree R’s (reduce, reuse, recycle) andenergy conservation. (Visit the Web site of
Eizo Nanao Corporation for details.)

J-Moss (JISC0950)

Our products carry a variety of environmental labels.

EIZO Eco Products 2006/2004 certification standards
No.

Item

2006 2004

3

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

4

Use of chrome-free steel plates

5

User’s manual made with chlorine-free recycled paper

6

Use (or partial use) of lead-free solder

7

Use of lead-free wires in external (supplied) cables

8

Use of soy ink in printed materials accompanying product9

Use of recycled Styrofoam or paper as packaging cushioning materials

0

Subject to an internal product environmental assessmentq

Use of plastics made from plant-derived raw materialswCompliance with JEITA personal computer VOC guidelineseCompliance with RoHS Directive (J-Moss Green Mark for LCD TVs for Japanese market)

1
2(Only in Japan)

6

SOCIAL & ENVIRONMENTALREPORT 2007

Social Report

CSR Management

Corporate Governance
Overview of Management Organization

Corporate Philosophy
The Eizo Nanao Group pushes the limits of technology to create visual systems of the utmost quality.
With the highest of ethical standards and pure dedication to excellencein all operational aspects, we aspire to exceed our customers’ expectations.
We recognize one of the most challenging issues to date is environmental conservation, anddocuments such as draft proposals and contracts. He also collaborates
with the Audit Office, the company’s internal auditing department, on the
checking of internal regulation functions. Another role of the full-time
corporate auditor is attending internal audits. The Audit Office reports on
the findings of these audits in response to requests from directors. Finally,
the full-time corporate auditor attends audits conducted by the
Accounting Inspector and participates in meetings between the
Accounting Inspector and our company.

䡵 Board of Directors:
The Board of Directors meets once each month and whenever else
considered necessary to provide rapid decision-making capabilities todeal with today’s business environment. All important matters related tothe board’s decisions are discussed, and reports are presented on the
progress of business tasks. At the June 2006 general meeting ofstockholders a new post of outside director was created to provide
supervision and advice from a third-party perspective and thereby
increase the transparency of management decisions.
䡵 Management Conference:
A system of operating officers has been put in place to speed up strategic
decisions and strengthen the business operation system. A management
conference is held once each month and whenever else considerednecessary to study and report on key business operation issues,countermeasures, and progress. All important matters related to business
operations are reported to the management conference.

are uncompromising in our dedication to this integral element in all our business activities.

Action Guidelines
1 We will supply superior products and services by focusing on quality and following scientific operation procedures.
2 We will act as an international corporation with a global outlook and mindset.
3 We will aim to grow in a harmonious manner by building strong bonds of trust with our stakeholders

䡵 Board of Corporate Auditors:
The system of corporate auditors is designed to strengthen the
management oversight functions of the organization. The board has four
members (one full-time and three part-time), and all are outside corporate
auditors affiliated with companies other than Eizo Nanao Corporation.
Corporate auditors attend key meetings of the Board of Directors. The
full-time corporate auditor reviews and discusses with directors important䡵 Internal Auditing System:
The Audit Office is under the direct supervision of the President andfunctions as the company’s internal auditing department. It carries out
internal audits in accordance with the Basic Regulations on Internal Audits,which specify audit policies, and with the Basic Annual Audit Plan,approved by the President, as the basis. All findings of these internal
audits are reported to the President.
The internal auditing system is implemented by the head of the Audit
Office and auditors appointed by him. In fiscal 2006, a quality andenvironmental management audit was carried out by a team of 15 persons,an information management audit by a team of 12, and an audit ofpayment authority by a team of 16.

(shareholders, suppliers, employees, and the local community).
Corporate Governance System

4 We will strictly observe the letter and spirit of the law as a good corporate citizen.

General meeting of stockholders

5 We will foster a liberal and broadminded corporate climate and build a lively workplace.

Election/dismissal
Election/
dismissal

Board of Corporate Auditors(All outside corporate auditors)
ReportVerification

Credibility of business reports

Auditing

Accounting Inspector

Board of Directors
Proper carrying out of duties by directors

Inspection of accounts

Separation of decision-making and implementation
ReportInstructions/supervision

Management conference
ReportInternal auditing department

Approach to CSR

Auditing(Audit Office)Legal auditing department Monitoring

A corporation is an organization that contributes to the advancement ofsociety and provides value to society. In addition, corporations and society
must develop synergistically. Based on a consciousness of this ideal, ourcompany aims in its CSR initiatives to further increase existing corporate
value through the company’s business activities.
We believe that corporate value is created by two types of factors: thosethat increase corporate value (factors that maximize the positive) and thosethat allow us to avoid risks that reduce corporate value (factors thatminimize the negative). We are working to put in place a management
system and corporate governance capable of identifying corporate value inour changing times, enhance our compliance system, and further
strengthen our relationships with our stakeholders.

Management System Overview

Ma

nag

Eizo Nanao
Corporation

ement syste

Society(Market)Further increasing corporate value+
Avoiding risks that may decrease value

Increasing
corporate
value

m

SOCIAL & ENVIRONMENTALREPORT 2007

7

ReportInstructions/supervision

Legal complianceDepartment chiefs
ReportInstructions/supervision

Employees

Corporate Philosophy/Action Guidelines

Compliance

Re
e
ev
alu
v
alu
e
ating corporat

Enhancing the Compliance System

Strengthening the Information Management System

An internal notification scheme was started in April 2005 as part of efforts
to enhance the compliance system at Eizo Nanao Corporation. Thismeasure is intended to ensure easy detection of illegal activity by officers
or employees and to anticipate and prevent unfavorable publicity. In
addition, measures were taken in January 2006 to improve supervisionand management of the compliance system in order to strengthen the risk
management system for management activities and information
management.

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

\•••••••••••••••••••••••••••

Operating officers\•••••••••••••••••••••••••••

ring corporate v
alu
ove
c
s
e
Di

(General Affairs Division)

Credibility and soundness of corporation actions

Instructions/supervision

8

SOCIAL & ENVIRONMENTALREPORT 2007

Social Report

Relations with Customers
Feedback system for all types of customer input
Sales companies

Customers

Retail stores(corporate/individual)

EIZO
Contact
CenterEIZO
Galleria
EIZO
DirectPlanning
department

Pr
od

uc

Sales
department

tsComputer monitors
Via sales companies andvolume retailers, direct sales
LCD TVs (FORIS.TV)
Mainly direct sales

Our EIZO Galleria locations enable us to talk with customers directly about
our environmental activities and the environmental features of our
products. We also host events and seminars as a way to encouragecommunication with customers.

Customer input
Product flow

Monitors for amusement applications
Via sales companies

1 FORIS.TV Touch and Try Event (held three times in 2006)

EIZO Contact Center
The EIZO Contact Center opened in January 2004 and provides a valuable
contact point for product-related inquiries. Currently the EIZO Contact
Center is staffed by ten “communicators” (personnel whose job is to
speak with customers directly) organized into three liaison groups: 1
Number of calls
Consulting
Product overview

7000

17%

6000

Other

5000

39%

4000
3000

Breakdown Specifications
10%of callcategories
FunctionsOperation procedures

2000

Troubleshooting

1000
0

6%
1

2 3
2004

4

1

2 3
2005

4

1

2 3
2006

inquiries related to product purchasing, 2 inquiries related to productspecifications or operation procedures, and 3 other (information on
support centers, information on stores and special promotions,processing of complaints, etc.). These groups respond to customers’
inquiries received by telephone, fax, and e-mail.
Details of inquiries from customers are collected in monthly batches andanalyzed by a study committee for raising customer satisfaction. The
results are reported to relevant departments within the company. Productsuggestions are referred to planning and development personnel, andsuggestions for improvements to difficult-to-understand sections of thecompany’s Web site or catalogs are passed on to the sales promotion
staff. Feedback from customers thus leads to improvements in manydifferent aspects of our operations.

EIZO Galleria
Designdepartment

Production
department

Relations with Employees

4

1 2
2007

Prices and sales
Display locations
Business hours

Order 10%related

10%

A presentation in seminar format about how to choose a TV and theadvantages of the FORIS.TV

2 ColorEdge Seminar (continuous since August 2006)

The ColorEdge CE Series Touch and Try Seminar is a presentation aimed at
photographers. It explains how to use software such as Photoshop to
display, print, and do color matching on photos captured using a digital SLR
camera. It also covers the superior performance of the ColorEdge CE andintroduces our color matching solutions.

3 Event Celebrating EIZO Galleria Ginza Opening (November 2006)

EIZO Galleria Ginza opened on November 2, 2006. It has two floors,connected by a staircase. The first floor is devoted to LCD computer
monitors, and LCD TVs are displayed on the second floor. The number of
FlexScan series models has been increased to allow them to be even more
extensively used than before.

Dealing with Occupational Hazards

Employee Welfare and Related Matters

Based on the medium-term management plan, we are is investing
significant management resources in the development and design of new
products. To continue to develop and design products of high added
value, we believe it is necessary to ensure the good health of ouremployees. We consider this to be an important part of corporate risk
management. Thus far our efforts to prevent workplace accidents havefocused on KYT activities (training to anticipate danger), hiyari-hatto
activities (training dealing with close calls), and 5-S activities (training
focusing on the concepts of seiri (shifting), seiton (sorting), seiso (sweeping
and washing), seiketsu (spic and span), and shitsuke (sustaining)). Risk
assessment procedures are used to eliminate or minimize risks in eachindividual workplace. Thanks in no small part to these efforts, noaccidents attributable to workplace hazards, traffic hazards, or overwork
have occurred at our facilities.

|Employee Welfare

To accommodate changes in the lifestyles of employees and differing
individual preferences, Eizo Nanao Corporation makes available a wide
assortment of recreational facilities outside the company. These provide
employees with a chance to refresh and invigorate themselves, bothmentally and physically. The company also provides childcare support,
including a system of reduced hours following maternity leave.
|Company Consultation System
In-house company counselors are available to employees who wish to
discuss issues of concern, such as job-related stress or sexual
harassment. The counselors can also refer employees to appropriate
facilities outside the company, should the situation warrant it. There is alsoa system in place that enables employees with long working hours to
consult with company physicians. This makes it possible to identify andtreat physical or psychological problems early on.

Fiscal 2007 Management Efforts

1. Basic Policy
To put in place a new health and safety action system and expand its
implementation.

······························································································

2. Slogan
Reducing major risks and maintaining our mental and physical healthunder the new system.

······························································································

3. Management Targets
Management area
Safety management
Health management
Traffic hazard prevention

Target value|||

Reduction of unacceptable risks
Elimination of untreated ailments
100% seatbelt usage

Children’s Workplace TourA “Children’s Workplace Tour” for children of our employees was held at
the company headquarters on January 6, 2007. Its aim was toencourage communication in theworkplace and at home, while providing
the children with an opportunity to
deepen their understanding of theworking world through experiences notavailable at school. The participants (24children ranging from second throughsixth graders) seemed to enjoy findingout about the difficulty and importanceof their parents’ jobs, as well as how
interesting it is to work with us.

8%

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

Relations with the Community
Building Bonds of Trust with Suppliers
As a manufacturing company whose main production operation isassembly, we place a high priority on controlling the quality, delivery
schedules, and cost of the parts and materials we procure from suppliers.
We provide opportunities for regular exchanges of information to ensurethat we and our suppliers have a common understanding of each other’s
management policies and technical strategies. When needed, we provide
help and support. This approach ultimately results in the achievement of
substantial results and the creation of future value that neither partner
could have achieved alone. We intend to continue to build strong
partnerships
withsuppliers through such
attitudes and efforts as
described above.

Company Tours
We conduct tours of company facilities to broaden understanding among
the public at large of our corporate structure and the products wemanufacture. Participants include school and education-related groups aswell as groups of local citizens. We view company tours as a valuablemeans of communication with local people and as a way to spreadrecognition of our operations as a company open to the community.

We promote regional afforestation and environmental
preservation initiatives through membership in a variety ofenvironmental organizations.
Environmental Organizations• Office Paper Recycle Kanazawa• Sustainability Communication Network• Green Purchasing Network• 22nd Century Environment Culture Foundation• Ishikawa Afforestation Promotion Association• Ishikawa Environmental Partnership Citizens Association
etc.

Total tour participants: 18 groups (323 participants)
Schools/education related
Breakdown

9 groups

Environment/health and safely related

1 groupGeneral (other)

8 groups

Our entry wins top prize at Hakusan Chiyo-jo Morning
Glory Festival
The city of Hakusan, where our headquarters is located, holds a yearly
Chiyo-jo Morning Glory
Festival in honor of the
haiku poetess Chiyo-jo,
who was born there.
We submit an entry
every year, and thisyear our submission
was awarded first prizein the group/corporate
category.

Materials procurement briefing

SOCIAL & ENVIRONMENTALREPORT 2007

910

SOCIAL & ENVIRONMENTALREPORT 2007

Environmental Report

Environmental Risk Management

Environmental Policy

Facility Management

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

1. 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 as other environmental preservation requirements of society at large. We
determine environmental objectives and targets based on aclear understanding of such requirements as well as theenvironmental impact of our corporate operations andproducts. These objectives and targets are reviewed on aregular basis to achieve ongoing improvement of our environmental management system and performance.

dispose properly of all waste generated. We are engaged inpositive efforts to promote the collection and recycling of usedproducts discarded by consumers.
4. We constantly monitor the latest information related to theenvironment through our information network, which includes
our overseas facilities and affiliated companies. We endeavor toshare information appropriately by disclosing and disseminating
details of our own environmental initiatives, and we work withothers in common efforts aimed at preserving the environment.

2. At the research and development stage, we pay carefulattention to the design of our products to minimize theconsumption of resources and energy, ensure ease ofrecycling, and reduce the volume of toxic substances. Our aim
is a continuous raising of our environmental standards.

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

Some of our facilities are covered by the Air Pollution Control Law. They
have established their own management standards, regardless of whether
or not their operations are on a scale that makes them subject to legal
requirements. Compliance with these standards is strictly monitored bymeasuring the levels of the substances in question. (Detailed
measurement data can be viewed on the Eizo Nanao Corporation Web
site.) In addition, drills are carried out once a year to practice emergency
procedures for dealing with accidents that could cause air pollution, suchas leaks in the oil supplies of climate control systems or abnormal
combustion in boiler systems.
The new research and development building, which was brought into use
in April 2007, includes an energy center in a separate structure to reduce
environmental impact and conserve energy at the site overall. As a result,the number of facilities (hot and cold water generators for climate control)
subject to the Air Pollution Prevention Law has increased to three. For
these we have selected energy efficient models fueled by LPG, which
produces less carbon dioxide and air pollution than fuel oil.

Emergency response drill

Waste Processing
All waste generated by the company is processed by other companies on
a contract basis. As a generator of waste, we have a responsibility toensure that the contractors we hire dispose of it in a proper manner. For
this reason We carry out on-site inspections of the intermediate and final
waste processors we employ. In fiscal 2006 these inspections showedthat processing was being carried out appropriately.

3. In our corporate operations we give due consideration toconserving energy and resources. We work to reduce thevolume of waste products generated by our operations and toOn-site inspection

Environmental Education
Initiatives in Fiscal 2006

Environmental Management System
Operation of Environmental Management System
We obtained ISO 14001 certification in July 1998, and it has been updated
twice since then. The management system operates through thecooperation of an organization that works to improve the environmental
performance of our corporate operations (Environmental Management
Office, General Affairs Division) and an organization that concentrates onenhancing the environmental compliance of our products (Engineering
Management Office, Quality Assurance Division). In fiscal 2005, wecompleted the process of making our environmental management systemcompliant with the 2004 revision of the ISO 14001 standard. During fiscal
2006 it was expanded to include the operations of our newly opened sales
office in Sendai and our four Eizo Galleria locations.

Environmental Auditing
During fiscal 2007, the internal auditing system verified that the company’senvironmental preservation efforts continue to be carried out appropriately.
Efforts to make our products environmentally compliant, a major emphasisat the company, are being promoted continuously and in planned fashion
based on EU directives and laws. Work to develop products complying
with the 2008 version of our in-house Eizo Eco Products standards is

SOCIAL & ENVIRONMENTALREPORT 200711

proceeding actively. In addition, preparations have begun to ensurecompliance with the EU EuP Directive within fiscal 2007, as required.
In our corporate activities, new buildings have been completed and there
is a trend toward increased energy consumption (particularly electric
power). In the future we must redouble our efforts to conserve energy andto help prevent global warming. Though environmental preservation
efforts directly linked to work tasks remain small at present, related issues
have started to become apparent little by little. In most departments such
efforts are centeredaroundreducing
waste paper, proper
processing of waste
products, and energy
conservation.
Ongoing environmental education andsteady efforts are
therefore important.
Audit

In fiscal 2006 new and existing employees participated in educational
programs, and training was provided for area environmental education
instructors.
As we did last year, we invited outside instructors to conduct our
educational program for employees. They presented lectures on subjects
related to corporate environmental efforts, such as “The Necessity for
Environmental Preservation Efforts as Part of Corporate Activities” and“Thoughts of an Engineer Regarding Environmental Preservation Efforts.”
These presentations provided valuable insights into ensuring that
manufacturing is both people-friendly and environmentally friendly. In
addition, we offered screenings of environmental videos to employees toraise their awareness further. Time was allotted by each department toallow all employees to view the videos.
An environmental slogan contest is held each June, in observance ofEnvironment Month. It provides employees with an opportunity to deepen
their interest in and awareness of environmental preservation issues andmotivates them to become actively involved in related activities.

Environmental lecture• New employees participating in education programs: 57• Other employees participating in education programs: 806• Area environmental education instructors participating in training: 25

Strict Compliance with Laws and Regulations
The company daily monitors new developments in laws and regulations
pertaining to our corporate operations. This information is also summarizedon the company’s Web site intranet so that employees can check the laws
and regulations that cover the tasks they are involved in.

In fiscal 2006, we were not in violation of any environmental laws or
regulations, and it had no fines or unfavorable court settlements. There
were no significant environmental accidents at company facilities, and nocomplaints were received from local residents regarding environmental
matters.

12

SOCIAL & ENVIRONMENTALREPORT 2007

Environmental Report

Environmental Objectives and Targets/Performance Report

Environmental Accounting

Of the 12 corporate initiatives and seven product-related initiatives promoted during fiscal 2006, seven corporate initiatives reached theirtargets, one did not reach its target but nevertheless achieved a result of 70% or better, and four failed to reach 70%. Three
product-related initiatives reached their targets, three did not reach their targets but nevertheless achieved results of 70% or better, andone failed to reach 70%. In fiscal 2007 we plan to continue our efforts to promote progress for initiatives that failed to reach their targets.
Objective

Self-evaluation
related page

17% reduction in total volume of industrial waste from fiscal 1996

32% reduction in total volume of industrial waste from fiscal 1996

Reduction Achieved 13.6% reduction (26.4% increase from previous year)of
Achievement of 95% recycling of industrial waste
industrial
Achieved 96.9% recycling
waste
Promotion of collection of used products
Corporate: 350 units per year, household: 2,500 units per year
Corporate: 400 units per year, household: 2,668 units per year

P18

P18
P16

Limit consumption of electricity to 113% of fiscal 1996
15.5% increase from fiscal 1996 (12.4% increase from previous
year)

P17

Corporate initiatives

60% reduction in consumption of fuel oil A from fiscal 1996

Prevention 70.0% of fiscal 1996of global Limit consumption of kerosene to 135% of fiscal 2001 or lesswarming 30.5% increase from fiscal 2001

• Corporate:
400 units per year
• Household:3,000 units per year

New targets accompanying opening of New Building
Limiting electricity use to 6,800 MWh (basic unit: 61 GJ/¥100 million)
Limit to 6,800 MWh• Maintain appropriate indoor temperature• Monitor electricity use of New Building

33,17835,208 22,073

0

0

0

2,930

1,539

1,570

0

0

92,251

12,64018,205

8,362

0

0

0

20,53817,003 13,711

0

0

0

11,5809,764 10,339

0

0

2,500

13,101

13,934 16,737

21,642

15,936

9,989

7,073

42,612 25,351

Septic tank inspection and outsourced management costs

1-2 Global environmental Upgrading of climate control systems and lighting
fixtures, coating of window glass to block heat loss,
preservation costs
sewerage operations beneficiary defrayment
1-3 Resource recycling
Cost of recycling, processing, and disposing of waste productscosts

2 Up- and downstream costs

3 Management activity costs

Product recovery and recycling, green purchasing,costs of recycling packaging
Costs of environmental impact and monitoring, employee
education, Environmental Report production, ISO 14001
auditing, landscaping of grounds
Environmentally conscious design, introduction of green
procurement support system, measurement of volatileorganic compounds (VOCs), TCO certification

P17

New item
Limit LPG use to 150 tons considering opening of New Building• Maintain appropriate indoor temperature

Limit to 230,000 kg(considering introduction of
new climate control systems)

5 Community outreach costs

Contributions to environmental groups

0

0

0

3,313

5,418

3,390

Limit output of carbon dioxide to 42% increase from 1996

Limit to 150% of fiscal
1996 or less

6 Environmental restoration costs

Costs of restoring the natural environment

0

0

0

178

0

0

50% reduction in use of copier paper from fiscal 1996

50% reduction in use of copierpaper from fiscal 1996

4% reduction in output of carbon dioxide from fiscal 1996
Achieved 3.9% reduction from fiscal 1996

P17
P17
P18

Target to be eliminated (althrough tracking of volume discarded will continue) because all
waste paper is now recycled, achieving a substantial reduction in environmental impact

P20

Further expansion of green purchasing product list
Increase in green purchasing ratio
Step-by-step promotion of green procurement (parts and materials)

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

Implementation of management system for chemicals (including
MSDS management, risk management, and CFC management)

Clarification of utilization methods for organic solvents
Clarification of handling of strong acids from use through disposal
Compliance with WEEE Directive
Preparation of chemical substances disclosure data for recycling
companies (by August)

4 R&D costs

Further expansion of green
purchasing product list
Increase in green
purchasing ratio
Step-by-step promotionof green procurement(parts and materials)
Implementation of management
system for chemicals (including
MSDS management, risk
management, and CFC
management, and reassessment)

Total

21,642

15,936 104,740

71,353 108,475 79,460

Economic Effects (Actual Effects) of Environmental Preservation Measures(Unit: ¥1,000)

Description of effectProfitCost reduction

AmountBusiness income from recycling of waste products generated by major business operations
and recycling of used products, etc.
Reduction in energy costs achieved through better energy efficiency

Completed; henceforth a constant component of business operations——

New item
Implementation of LCA (in preparation for compliance with EuP Directive)

Expansion of use of soy ink to labels (paper) other than nameplates
Reduction Switched to soy ink for all letterpress printed labelsofExpansion of use of biodegradable plastic to parts other than UM bags
volume ofAn evaluation was performed and its findings discussed, buthazardous implementation was delayed and a decision made to continue
substances investigation and study owing to poor cost-effectiveness and highrisk for current parts

Henceforth a constant component of business operations

Ongoing; continue studying expansion to other parts

Resource Making products more lightweight and compact (study and drawing
conservation up of provisional evaluation standards)

Expand usage scope

Ongoing; formulate evaluation standards

659.8
915

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

Total

Compliance
Data posted on Web site in early August 2006
withEuropean Agreed to supply this data to EU dealers having purchasing
standards agreements with Eizo Nanao Corporation

Product-related initiative items

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

0

Limit to 128% of fiscal
2001 or less

Further expansion of green purchasing product list
Step-by-step promotion of green procurement (parts and materials)

Managementofhazardous
substances

Achievement of 96%
recycling rate

0

Limit consumption of kerosene to 130% of fiscal 2001 or less
• Maintain appropriate indoor temperature

P17

Green procurement| Promoted efforts to encourage environmental preservation
activities by suppliers

Maintain 95% recycling of industrial waste
Survey of recycling methods

0

Target to be eliminated due to phase-out of fuel oil A use with
upgrading of climate control system

Annual usage volume was 24,730 kg

GreenAchieved green purchasing ratio of 85.0% in office supplies
purchasing | Green purchasing promoted in General Affairs Division• Reduction in volume of industrial waste produced by departments 21% reduction from fiscal
1996• Reduction in plastic waste• Increase in processing of refuse as waste having commercial value

Fiscal 2006 Fiscal 2005 Fiscal 2004 Fiscal 2006 Fiscal 2005 Fiscal 2004

1 Business-area costs
1-1 Pollution prevention costs

Expenses

P17

Maintain LPG usage volume at fiscal 2005 (28,760 kg)

50% reduction in use of copier paper from fiscal 1996
Resource Achieved 28.0% reduction from fiscal 1996
conservation Through recycling, maintain volume of paper discarded at 145% of fiscal 1999 or less
54.2% increase from fiscal 1999

Fiscal 2007 target

Fiscal 2009 target(mid-term target)(Unit: ¥1,000)

Investment

Main initiatives

Category

Breakdown

Fiscal 2006 target
Fiscal 2006 performance

Environmental Preservation Costs

In fiscal 2006, investment costs associated with environmental
preservation totaled ¥21.64 million, an increase of 35.8% from theprevious year. Environmental preservation expenses came to ¥71.35
million, a decrease of 34.2% from the year before. The economic effectsof our environmental preservation efforts totaled ¥1.57 million. The
largest share of total investment was research and development costs,
including the green procurement support system and measurement ofvolatile organic compounds (VOCs). A major portion of the expenses
consisted of business-area costs, one source of which was an increasein waste products (recycling) associated with manufacturing equipment
for our diversifying production structure.

01,574.8

䡵 Expenses

Community outreach costs
R&D costs
Management activity costs
Up- and downstream costs
Business-area costs
Total¥1 million
120

108.4

100
80

79.5
68.4

60
40

Evaluation standards were presented and discussion held regarding future study topics
20

Bringing all general-use LCD monitors into conformance with “energy conservation”

item in environmental compliance standards (excluding on mode)
Energyconservation New general-use LCD monitors are Energy Star Tier 2 compliant, and 100% of FORIS.

Completed; henceforth a constant component of business operations

TV3 models meet the requirements of the Law Concerning the Rational Use of Energy
Creation of Eizo Eco Products 2008 guidelines (including adoption

Environmental of long-term environmental compliance improvement targets)labeling

Proposals were presented in conjunction with a study on reducing size and weight

Managementof chemical
substancesin products(New)
Achieved compliance with JGPSSI Chemical Substances Survey
Guidelines Ver. 3.0
Achieved compliance with JGPSSI Guidelines for the Managementof Chemical Substances in Products

P19

P20

Ongoing; formulate evaluation standards

Investigation and study in preparation for introduction

Information was collected through participation in JGPSSI general
meetings, etc., but matters did not progress to the study stage

Evaluation standard: Achieved

SOCIAL & ENVIRONMENTALREPORT 200713

: Achievement ratio of 70% or more

: Achievement ratio of less than 70%

Formulation of Eizo Eco
Products guidelines forfiscal 2010

Scope of accounting: Eizo Nanao Corporation0(as covered by Social and Environmental Report)
Fiscal 2004
Fiscal 2005
Fiscal 2006
Period covered:
April 1, 2006–March 31, 2007
Investment:
Amount applied for the current term under the depreciation scheme used for financial accounting
Expenses:
Personnel costs, material costs, depreciation, other expenses
Depreciation costs: Included in cost of goods acquired in fiscal 2004, 2005, and 2006 according to the depreciation scheme used for financial
accounting for fiscal 2006

The Environmental Accounting Guideline 2005 Edition was used for reference when compiling the above figures.
Research and development operations include elements related to environmental preservation considerations. However, due to the difficulty of
tracking direct environmental preservation costs, the costs of equipment, prototype products, etc., related to R&D work is not included in the
expenses total (except for R&D work expressly for the purpose of environmental preservation).

14

SOCIAL & ENVIRONMENTALREPORT 2007

Environmental Report

Overall Environmental Impact of Business Activities (Fiscal 2006)
Energy Usage

55,073 GJ (+3.1%)

Energy Usage Breakdown
conditioning and| Electrical power ..................................... 4.94 million kWh (+12.4%) Air
other equipment| Fuel oil A .................................................................... 33 kl (–26.7%) Air conditioning| Kerosene ................................................................ 43.6 kl (–5.1%) Air conditioning| Gasoline and diesel .................................................. 7.5 kl (–21.8%) Company vehicles| LPG ........................................................................... 24.7 t (–24.6%) Air conditioning

Materials Usage
Paper Usage| Copier paper ............................................................... 8.7 t (–4.4%) Recycled 100%
| Printer paper ............................................................... 0.2 t (±0 %) Recycled 57%| Toilet paper ................................................................. 4.1 t (+16.4%) Recycled 100%

Usage Status| Parts, semiconductor devices, products, goods ........................... 3,759 t (+24.5%)| Product packaging ............................................................................... 946 t (+19.4%)
Plastic bags, cushioning materials (Styrofoam, cardboard), and packing boxes (cardboard) used to package products| TDistribution packaging ...................................................................... 4.20 t (+42.9%)
Plastic wrapping sheets used to prevent load collapse when transporting semiconductor devices or products on pallets

Other| Normal hexane ................................................................................... 0.073 t (–26%)| Amanol ................................................................................................ 0.063 t (+290%)| IPA ....................................................................................................... 0.006 t (–57%)

Water Usage (Groundwater]Collection and Recycling of Used ProductsCollection and Recycling of Commercial Products
A product collection and recycling system was set up in July 2001 under the
Waste Disposal Law and the Law for Promotion of Effective Utilization of
Resources. The collection and recycling regime it establishes is targeted at
products marketed to commercial customers. The collected products are
disassembled, crushed, and sorted by recycling contractors, and the resulting
raw materials are reused in the manufacture of new products. In March 2005,
collection and recycling began under a Designated Wide-Area Recycling
Industrial Waste System certified by the Japanese Ministry of the Environment.

Collection of Commercial Products (April 2006–March 2007)
Volume collected Quantity collected Volume recycled Recycling rate(t)(units)(t)(%)
CRT monitors

13.18

355

9.87

74.9

LCD monitors

0.38

45

0.34

89.3

44,000 m3 (–31.6%)
Telephone

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

Collection request

Corporate
customer• Estimate• Payment of fee

EIZO productsCollection

Processing
completion report

Eizo Support Network Co., Ltd.

Reception

IN
P

Collection arrangements

TU

Hankyu Express International
Pickup and transport Co., Ltd., and others

Recycling

Emissions duringtransport*1
1.14 million t·kg

Parts manufacturers and purchasing companies•Japan •Overseas

Disassembly, crushing, sorting

Hyper Cycle Systems,
Co., Ltd.

Use and disposal by customers•Japan •Overseas

Collection and Recycling of Household Products

Affiliated companies•Eizo Nanao MS Corporation(See page 21.)

In October 2003, a product collection and recycling system for individual
customers was set up under the Waste Disposal Law and the Law for
Promotion of Effective Utilization of Resources. Under it, used householdproducts are collected and recycled. As the collection system has become
established, the number of collection requests has been increasing year by
year.

Emissions duringtransport*1
89,999 t·kg

Eizo Nanao Corporation

Web and telephone
3 Payment

2,205 t-CO2 (+1.7%)

Emissions of 6 Substances Stipulated by Kyoto Protocol (t-CO 2)| Carbon dioxide (CO 2)......................................................................... 2,204 t (+1.7%)| Methane (CH4) .................................................................................... 0.001 t (+8.5%)| Dinitrogen oxide (N2O) ...................................................................... 0.003 t (+18.6%)
Note: Does not apply to HFCs, PHCs, or SF6.

Emissions and Movement of Chemicals| Emissions and movement of chemicals (lead) ........................................................ 0 t(recycled) (0.0012 t in previous year)

Total Product Production| Production quantity LCD monitors ..................................................... 414,000 units

Other imaging products ...................................... 19,000 units
Peripheral devices ............................................... 12,000 units䡵 Total ............................................................... 445,000 units

Household (individual)
customer

Total Waste Output/Final Waste Disposal Volume
Waste Processing Breakdown| Reused................................................................................................ 427.2 t (+7.5%)| Heat recovery ..................................................................................... 107.9 t (+24.3%)| Simple incineration ................................................................................ 1.2 t ( +18.7%)| Final disposal ......................................................................................... 4.7 t (–26.2%)
Waste Type Breakdown| Industrial waste products .................................................................. 191.1 t (+26.4%)| Waste products with commercial value ............................................. 22.4 t (+24.5%)| General waste products ...................................................................... 29.9 t (+11.0%)| Wastepaper......................................................................................... 314.1 t (+5.7%)

44,000 m3 (–31.6%)
Figures in parentheses ( ) indicate comparisons with previous fiscal year.

SOCIAL & ENVIRONMENTALREPORT 2007

15

2,523

48.23

71.3

1.32

182

1.03

78.4

Information
Devices Recycle Center

URL: http://www.pc-eco.jp

Post office orconvenience store

Reception| Percentage of LCD monitor products certified to bear environmental labels ................. 95%| Volume of packaging materials ........................................................................... 946 t

Wastewater

67.69

4 Sending of Eco Yu-Pack shipping label
5 Delivery to post office

EIZO products

Emissions of Greenhouse Gasses

CRT monitors
LCD monitors

2 Sending of fund transfer form

T

U

P

T

U

O

Notes:
1. Values (transport distance emissions coefficient) apply to transport of materials and products paid for by
the company and include shipment of exports within domestic ports and seas adjacent to those ports.
t·kg: Basic unit of transport. Volume transported (tons) multiplied by distance transported (kilometers).
2. Value applies to recycling contracted to the Japan Containers and Packaging Recycling Association under
the Containers and Packaging Recycling Law. The total is composed primarily of plastics, such as
Styrofoam and vinyl bags, and does not include cardboard.

1 Collection request

Collection and recycling
Materials collectedof used products (Japan)
in accordance with
(See page 16.)
the Containers andPackaging Recycling Law*2
9.8 t (Japan)

Collection of Commercial Products (April 2006–March 2007)
Volume collected Quantity collected Volume recycled Recycling rate(t)(units)(t)(%)• Simple packaging such as bags
• Shipping labelsorPost office

5 Request for pick-up

Collection point/
recycling facility(Four locations in Japan)• Hokkaido Eco Recycle Systems Co. Ltd.
• Hyper Cycle Systems Co., Ltd.
• Green Cycle Corporation• Recycle Tech Co., Ltd.

Recycling
6 Collection〒
Eco Yu-Pack shipment

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

Recycling
CRT-TV

16

SOCIAL & ENVIRONMENTALREPORT 2007

Environmental Report

Efforts to Prevent Global Warming

Increasing the Recycling Rate and Reducing Waste

In fiscal 2006 our total energy input decreased by 3.85% year on year.

䡵 Greenhouse Gas Emissions

Greenhouse Gas Emissions
CO2 emissions
4% reduction
4% reduction
3.9% reduction
No
Fiscal 1996

Fiscal 2007 target
Fiscal 2006 target
Fiscal 2006 results
Achieved/not achieved
Base year

Note: Of six types of greenhouse gases, the company produces carbon dioxide (CO2), methane(CH4), and dinitrogen oxide (N2O), the volume of output of which we track in carbon
dioxide equivalency values.

[t-CO2]
3,000(t/¥100 million)

4.0

CO2 emissions
Relative to sales

3.5

3.1

3.0

2.8
2.7

2,000

2.3

2.3

2.5

2.3

2.0
1,000

2,294

1,996

2,048

2,169

2,205

3,257

1.5
1.0

The company’s Target Items Related to Greenhouse Gas Emissions

Gasoline, kerosene, diesel fuel, fuel oil A, liquefied petroleum gas, electricity• usage• Incinerated waste plastic (including vinyl)

Energy Usage
Electricity
Fiscal 2007 target Limit to 6,800 MWh
Fiscal 2006 target Limit increase to 13%
Fiscal 2006 results 15.5% increase
Achieved/not achieved–––
Base year
Fiscal 1996

0.5
0FY 1996

FY 2003

FY 2004

FY 2005

䡵 Energy Usage
Fuel oil A–––
60% reduction
70% reduction
Yes
Fiscal 1996

Kerosene
LPG
Limit increase to 30% Limit to 170,000 kg
Limit increase to 35%
28,75030.5% increase
24,730Yes
Yes
Fiscal 2001
Fiscal 2005

Note: LPG for headquarters climate control system

In fiscal 2006, the overall climate control load rose due to an increase inpersonnel, higher temperatures during the summer months, and changes in
the configuration of the production system. In addition, the opening of a newbuilding in fiscal 2007 was accompanied by a substantial rise in energy
consumption. In the future we plan to increase the use of LPG, which hasless environmental impact than fuel oil A.
Examples of Effortsof heat-block coating to windows• Applicationof temperature and humidity based on workplace environment• Adjustment
measurements carried out in summer and winter• Companywide shutdown of climate control systems (during nighttime hours)

FY 2006

FY 2007 target

Gasoline, diesel oil, LPG (cafeteria)
LPG (climate control)
Kerosene
Fuel oil A
Electricity(GJ/¥100 million)
Relative to sales 80,059[GJ]
80,00050,00053,412
48,69048,76149,94970

Fiscal 2007 target
Fiscal 2006 target
Fiscal 2006 results
Achieved/not achieved
Base year

Printer paper––––––
96.7% reduction–––
Fiscal 1996

It was decided that in fiscal 2006, in contrast to the previous year, thevolume of copier paper purchased would be 50% less than the base year
level. Purchases did tend to decrease, encouraged by in-house surveys
and publicity, but we failed to reach the target. We will continue to track thepurchase volume of EDP paper in fiscal 2007, but due to the small volume
used we have removed this item from our list of environmental targets.

We use groundwater exclusively. No water is used in manufacturing
processes, but a large volume of water is used for snow abatement in
winter and for watering plants in summer.

FY 2003

FY 2004

FY 2005

FY 2006

FY 2007 target(kg/¥100 million)

Printer paper
Copier paper
Relative to sales

25

30
25

15.0
20

6.2
12.0

10.0

2.5

13

8.8

0.2
8.2
10

5.0

FY 1996

FY 2003

FY 2004

0.2
9.1

9.0

FY 2005

15

0.2
8.7

11

FY 2006[m3]
70.000

0.2
6.0

10

5.0

5

FY 2007 target

60.00050.00040.00030.000SOCIAL & ENVIRONMENTALREPORT 200717

18,826
16,41533,20015,066

42,10813,74836,607
12,19050,94913,807FY 2001

FY 2002

FY 2003

FY 2004

FY 2005

22,68021,606

FY 2006

150

118

100
50

0

50
129
15
FY 1996

FY 2002

194
11
FY 2003

147
10
FY 2004

143
8
FY 2005

䡵 Breakdown of Industrial Waste

185
129
6
7
FY 2006 FY 2007 target

0

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

Incinerated or landfill 3%
Recycled
97%

Documents,
cardboard 6%
Glass(including
Braun tubes)
11%

191 t

Waste plastic
43%

Styrofoam
22%

䡵 General Waste

General Waste[t]

Wood scraps
Non-burnable trash
Burnable trash
Relative to sales

25

•
•
•

40
33

34
29

30

28.1
6.4
1.3
17.7

15
10

10

5

0.9
5.6

0

35

33

1.1

20

Note: Until fiscal 2002 statistics on waste output were not collected on a fixed-term basis.
Reporting of statistics for fixed-term emissions became possible in fiscal 2003, and thisaccounts for the notable increase in the totals.
This item has been eliminated as a target for fiscal 2007 and henceforth only actual
figures will be reported, due to a review of definitions according to which most generalwaste is now treated as industrial waste.

25
20

11.0
1.5
15.3

17.2
0.0
13.6

15
10

4

2.3
FY 1999

FY 20025

0.7
FY 2003

FY 2004

FY 2005

FY 2006

0

䡵 Paper Recycling

Paper Recycling

0(kg/¥100 million)35
30

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

Fiscal 2007 target
Fiscal 2006 target
Fiscal 2006 results
Achieved/not achieved
Base year

Dec. – Mar.
Apr. – Nov.

200

100

Other R
2%
Polyvinyls
2%
Metal (iron and iron alloys) 3%
Circuit boards
3%
Waste products B 5%

In fiscal 2006, output of burnable trash decreased by 14.7% from thepreceding year while output of wood scraps rose 49.4% due to anincrease in the amount of component parts imported. This resulted in an
overall increase of 5.6%, and we were unable to meet our target for
general waste of a reduction from the previous year’s level.

[t]
20.0

189

178

0

Note: Gasoline: Consumption by company vehicles
Diesel oil: Consumption by company vehicles and snowplows
LPG: Consumption by climate control system

0

204

10
FY 1996

250

232
198

20

10,00010.000

49
173

150

30

20,00020.000300

40

䡵 Water Usage

Water Usage

303

200

50

56

30,0000.0(kg/¥100 million)
Amount recycled
Amount processed as waste
350
Relative to sales

250

60

65
59

55

[t]

70

55,073

䡵 Paper Usage
Copier paper
50% reduction
50% reduction
28% reduction
No
Fiscal 1996

In fiscal 2006 the recycling rate was 96.9%, the highest so far, and wereached our target for that initiative. However, the total volume of waste
increased substantially, preventing us from meeting that target. The
increase is due to the upward trend in imports of large-format component
parts. As a result, the volume of Styrofoam (up 30% from the previous year)
and waste plastic (up 28% from the previous year) from packaging has
grown. We work with waste processing companies to collect waste
Styrofoam, melt it down, and then mold it into chips that can be used as araw material for new plastic products. Some of this resource is also used as
Styrofoam in the packaging of our products.

80
67

Resource Conservation
Paper Usage

Recycling rate
95%
95%
97%
Yes
–––

90

40,0000Industrial waste volume
Fiscal 2007 target
17% reduction
Fiscal 2006 target
32% reduction
Fiscal 2005 results
13.6% reduction
Achieved/not achieved
No
Base year
Fiscal 1996

100

70,00060,0000䡵 Industrial Waste

Industrial Waste

Volume of Paper Recycled–––
Limit increase to 45%
54.2% increase
No
Fiscal 1999

Waste cardboard, which constitutes about 90% of our total paper
disposed of through recycling, increased 9.5% from the preceding year, so
we were unable to meet our target for paper recycling. In this connection,
it should be noted that we collect used paper from offices and purchaserecycled products (toilet paper) from Office Paper Recycle Kanazawa aspart of our community-oriented recycling efforts.

[t]

354
302

250
200
150

400

383

350
300

(kg/¥100 million)

Newspaper, magazines, other paper
Cardboard
Relative to sales

400

335

364

31
306

27
231

331

28
265

28
287

36
262

300

200

32
171

100

100
50
0

FY 1999

FY 2002

FY 2003

FY 2004

FY 200518

FY 2006

0

SOCIAL & ENVIRONMENTALREPORT 2007

Environmental Report

Ensuring the Quality and Environmental Compliance of Our Products
Basic Product Development Sequence
We endeavor to develop environmentally conscious products, including compliance with domestic and international legal requirements and standards.
Based on previously established in-house Environmental Compliance Standards, each product is subject to an environmental compliance assessment(an evaluation of the degree of environmental compliance of the product). The results of the assessment help to clarify what measures need to betaken to deal with items that require improvement and are used in setting environmental objectives and targets for the coming fiscal year.
Among the provisions listed in our environmental goals and targets, we are addressing key issues through our “Eizo Eco Products 200x” (200x refers
to the year established) program, which is designed to draw attention to environmentally sound products.
In addition, the environmental compliance standards contain 100 check items, and they are revised each year to reflect changes in laws, regulations,and industry trends.

Environmental Goals, Targets, and Standards

Product planning

Regulations

Product planning(Eizo Eco Products established)Standards

Industry trends

Yearly environmental goals and targets

Product design planning

Environmental compliance standards

Product environmental assessment(evaluation of prototypes)

Investigation of hazardous substances

Product improvements

Application for next fiscal year

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

For products sold in Japan, we have adopted the following mark for use incatalogs and the like. “Management Methods for Controlling Pollution by
Electronic Information Products,” commonly referred to as China RoHS,
was brought into effect by the Chinese government on March 1, 2007. Like
the EU RoHS Directive, it covers six hazardous substances. It differs,
however, in that it applies to products
such as medical equipment andbatteries, which are exempted fromthe EU RoHS Directive. We arecomplying with the provisions ofChina RoHS, including its labelingrequirements.

Compliance with J-Moss

Application for
new products

As part of a review of the Law for Promotion of Effective Utilization of
Resources, the Japanese Ministry of Economy, Trade and Industry has
instituted legally binding labeling requirements based on the J-Moss (JIS C
0950) standard. J-Moss is a Japan Industrial Standard (JIS) that specifies
the labeling method to be used to indicate the presence of specified
chemical substances in electrical and electronic equipment. There are six
such substances: lead, mercury, cadmium, hexavalent chromium, PBB,

and PBDE. The J-Moss standard stipulates that the absence of thesesubstances in six categories of products, including personal computers
and television sets, be indicated by a Green Mark (optional) and that theirpresence be indicated by a different mark.
We are using the designated marks on products covered by the law, suchas LCD monitors and LCD TVs.
This J-Moss mark indicates that content of the

Finalization of productdesignated chemical substances exceeds thePb,
Cr(VI) specified standard. The chemical symbols for

The J-Moss Green Mark indicates that content
of the six designated chemical substances isbelow the specified standard.
Pb,Cr(VI)

TCO’03/TCO’06
Efforts to make our company’s products more environmentally friendly have proceeded largely in response to the evolution ofenvironmental standards in Europe. These efforts started with our work to comply with the TCO’95 standard introduced in
Sweden. This standard was followed by TCO’99, and that was followed by TCO’03, which is the version still in effect today.
We participated actively in the forum that helped establish the parameters for TCO’03, and in January 2003 we became oneof the first companies to receive certification (as one of a group of four companies, with a total of 15 products receiving
certification).
Almost all monitor products we produce are TCO compliant. In the years ahead we will continue to consider it an important
standard to be met in the development of new products.
In August 2006 we released one of the world’s first new products complying with the TCO’06 Media Display standard. (Fourproduct models were introduced simultaneously by three companies, including Eizo Nanao Corporation.) TCO’06, which
derives from TCO’03, is a standard for monitors designed for video reproduction. To the requirements of TCO’03 it adds new
items related to reproduction of moving images, such as response speed between halftones and black level brightness.

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

the substances are displayed below or to theside of the mark.

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

Parts manufacturers
Reply to survey

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

Eizo Nanao Corporation
Data

CustomerDevelopment Division

Survey request

Data
Quality Assurance Division

Reply to survey

Data

Confirmationof content
Secondary survey request

Energy Star and International Energy Star Program
The International Energy Star Program was adopted in Japan in 1995 on the basis of an agreement with the U.S. government.
We have participated in the program since its inception, and one of our products was the first computer monitor to beregistered under it. Since then virtually all our products have been registered under the Energy Star and International EnergyStar programs.
The program’s requirements are being made stricter in two stages. Stage one took effect in January 2005 and the more
stringent stage two came into force in January 2006. We are working actively to bring our products into compliance with the
new standards.

SOCIAL & ENVIRONMENTALREPORT 2007

19

Management database

Recording of data

Tabulation and storage

Data
Data

Survey request

Green Procurement
Environmental consciousness is a key issue in corporate management.
Eizo Nanao Corporation pursues environmental action based on its
Environmental Policy. This commitment is not limited to our internal

operations, but also extends to collaborative efforts with our suppliers. We
promote a policy of green procurement under which priority is given inpurchasing to environmentally compliant materials, parts, and products.

20

SOCIAL & ENVIRONMENTALREPORT 2007

Environmental Report

Affiliated Company Data

Environmental Timeline

INPUTOUTPUT

Total Energy Usage

Greenhouse Gas Emissions

Energy Usage Breakdown| Electricity .......................... 4.01 million kWh (+7.5%) Climate control and other equipment| Gasoline and kerosene .................. 1.4 kl (–22.7%) Company vehicles

Materials Usage
Paper Consumption| Copier paper ......................................... 1.7 t (–2.3%) 100% recycled| Toilet paper ........................................... 1.3 t (–8.3%) 100% recycled
Consumption of Other Materials| Eutectic solder ...................................... 1.7 t| Lead-free solder .................................. 14.2 t

Water Usage

6,500 m3 (+101%)

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

Fiscal 2006 Results
Reductionof Waste

Reductionof Energy
Usage

Emissions of Six Substances Stipulated by Kyoto Protocol (t-CO 2)| Carbon dioxide (CO 2) ............................................... 1,564 t (+6.5%)| Methane (CH4) ...................................................... 0.00013 t (–23.5%)| Dinitrogen oxide (N2O) ......................................... 0.00091 t (–38.1%)
Note: Does not apply to HFCs, PHCs, or SF6.

• Reduction in use of organic solvents due to introduction of
Facilities
new solder baths.
Management
and Management • Measurement of workplace environment and noise.
• Appropriate processing of flammable oil waste.
of Hazardous• Introduction of lead-free machinery (one solder bath).
Substances

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

1992

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

1993

CRT monitor circuit boards ................................................. 0 units
LCD monitor circuit boards .................................. 2,953,000 units
Other monitor product circuit boards .................. 7,300,000 units

WastewaterStart of work toward TCO’92 certification.
Start of work toward Energy Star registration (major products).

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

1996

1997

Waste Processing Breakdown| Recycled ................................................................... 155.3 t (–13.0%)| Heat recovery................................................................ 9.5 t (+61.0%)| Simple incineration ....................................................... 6.4 t (–27.8%)| Final disposal ................................................................ 4.3 t (–38.9%)
Waste Type Breakdown| Waste with commercial value .................................... 13.6 t (–15.6%)| Industrial waste ........................................................... 67.7 t (–20.4%)| General waste ............................................................... 4.8 t (–36.8%)| Wastepaper ............................................................... 101.2 t (–5.9%)• Changes made to local exhaust ventilation equipment forlead-free operation processes.
• Chiller ventilation ducts and circulation fans installed.
• Introduction of document management system (ASTRUX).
• Wind barrier partitions installed in truck yard.
• Energy conservation study undertaken with Hokuriku ElectricPower Company, and presentation of proposals made.

1988

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

Appointment of Environmental Management Officer to GeneralStart of work toward TCO’95 certification.

Affairs Division.

Start of environmental compliance assessment.

Establishment of Environmental Management Office in General Affairs Division.

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

Adoption of Environmental Policy.

Start of registration of products under International Energy Star Program and Energy 2000.
1998
1999

6,500 m3 (+103.1%)

Start of work toward TCO’99 certification.
Start of work toward Eco Circle certification.

Closing of waste incinerators.
Establishment of environmental preservation Web site on company intranet.

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

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

2001
INPUT

Total Energy Usage

Greenhouse Gas Emissions

Paper Consumption| Copier paper ..................................... 0.28 t (+24.0%) 100% recycled| Toilet paper ....................................... 0.94 t (+2.6%) 100% recycled
Use of Other Materials| Chemicals (covered by PRTR) ............... 0 t

4,000 m3 (–4.1%)

Water Usage
Fiscal 2006 Results
Reductionof Waste

Reductionof Energy
Usage• Reuse of polypropylene bands in packaging.
• Number of defects reduced by improving anti-dust
measures in the aging process.
• Management thoroughness improved by clarification of thestatus of reused materials.
• Reduction in carbon dioxide emissions confirmed following
upgrade of the climate control system.
• Climate control efficiency improved for operation grinding
and packaging processes.
• Climate control changed from a system powered by fuel oil
A to an electrical heat pump system.
• Distribution of timetables of regular transport services in anelectronic format.
• Introduction of document management system (ASTRUX).

Facilities Management and Management of Hazardous Substances• Measurement of workplace noise.
• Checking for asbestos in waste materials during upgradingof the climate control system.

SOCIAL & ENVIRONMENTALREPORT 200721

Eizo Nanao
MS Corporation
Nanao Plant(Operations: Assembly of
Eizo Nanao Corporation
products)

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

OUTPUT

Materials Usage

ISO 14001 certification.

Elimination of cadmium from parts.

2000

Energy Usage Breakdown| Electricity ....................... 947,000 kWh (+18.7%) Climate control and other equipment| Fuel oil A ................................... 44.1 kl (–49.3%) Climate control equipment| Gasoline and kerosene .............. 1.5 kl (+2.3%) Company vehicles| LPG ............................................ 46 m 3 (–44.7%)| Corporate Action

Emissions and Movement of Chemicals| Emissions and movement of chemicals (lead) ............ 0.7 t (–75.0%)
Recycled

Total Waste Output/Waste Final Disposal Volume• Selection of suppliers to reduce excessive packaging.
• Reuse of plastic bubble packaging as cushions inpackaging.
• Investigation of carbon dioxide emissions due to waste
products (reduction confirmed).

| Product Standards

1,547 t-CO2

Note: Does not apply to HFCs, PHCs, or SF6.

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

487 t-CO2

Emissions of Six Substances Stipulated by Kyoto Protocol (t-CO 2)| Carbon dioxide (CO 2) .................................................. 487 t (–10.5%)| Methane (CH4) ........................................................ 0.0001 t (+30.0%)| Dinitrogen oxide (N2O) ......................................... 0.00039 t (–17.0%)

Issuance of first Environmental Report.

2002

2003

Emissions and Movement of Chemicals

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

Introduction of monitoring system and computerization system.

Start of work toward TCO’03 certification.

Receipt of Governor of Ishikawa’s “Green Enterprise” award.

Establishment of Eizo Eco Products 2004.

Start of collection and recycling of household products.

Start of efforts to comply with the RoHS Directive.

Start of collection and recycling of commercial products basedon requests from an expanded region.

| Emissions and movement of chemicals (lead) ................... 0 t (±0%)

2004

Product Production| Production quantity

Implementation of energy conservation measures in conjunction with
upgrading of equipment (climate control, lighting) in headquarters building.

Circuit boards for CRT monitors ......................................... 0 units
Circuit boards for LCD monitors .............................. 257,000 units
Circuit boards for other monitor products ........... 1,056,000 units

Total Waste Output/Waste Final Disposal Volume
Waste Processing Breakdown| Reused ............................................................................. 0 t| Recycled ................................................................... 195.8 t (+4.2%)| Heat recovery ............................................................. 34.4 t (+24.0%)| Simple incineration ....................................................... 1.8 t (+83.5%)| Final disposal ................................................................ 1.7 t (–37.9%)
Waste Type Breakdown| Waste with commercial value ...................................... 0.8 t (–67.5%)| Industrial waste .......................................................... 86.5 t (+27.3%)| General waste ............................................................... 1.8 t (+83.5%)| Wastepaper............................................................... 143.0 t (-5.0%)

Wastewater

2005

2006

Start of shipment of products complying with the RoHS Directive.

ISO 14001 certification of Environmental Management System
including sales offices in its scope.

Eizo Eco Products 2006 standards adopted.

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

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

Start of compliance with “China RoHS” (Management Methods
for Controlling Pollution by Electronic Information Products).

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

4,000 m3 (–4.1%)

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

22

SOCIAL & ENVIRONMENTALREPORT 2007

About the CoverSocial and Environmental Report

2007

April 2006–March 2007

SOCIAL & ENVIRONMENTAL REPORT 2007

EIZO NANAO CORPORATION

Printed on 100%
recycled paper

The three primary colors of light (red,green, and blue) express the preeminenceof Eizo Nanao Corporation in the imaging
field and convey the image of our brand.
We have worked continuously to bringnew value to society through these threecolors that represent our brand.
In addition to representing our brand, thecover design also expresses ourcommitment to CSR management,balancing the economy, society, and theenvironment, as we strive to achieve asustainable society in the future.

Printed with soy ink
approved as Eco Ink

Printed using waterless printing, which eliminates the water or dampening system containing
substances such as alkaline developer or isopropyl alcohol used in conventional printing