FUJIFILM Sustainable Value Plan 2016

Medium-Term Medium-Term New Medium-Term Under the corporate slogan, “Value from Innovation,” implementation. Creating the Triple Promotion Policy CSR Plan CSR Plan CSR Plan FY2007-2009 FY2010-2013 FY2014-2016 established to coincide with our 80th anniversary, the Following SVP 2016, we aim to be a corporation that l Thorough implementation Fujifilm Group has created a new Medium-Term CSR Plan contributes to the “development of sustainable society” by The SVP 2016 Triple Promotion Policy was established in the of sound corporate governance and Priority issues Continue & covering FY2014 to FY2016, titled, “Sustainable Value proactively creating “new value” toward resolving social following four steps. compliance (Legal compliance and taking responsibility reinforce l Reduction of impact on as a corporate citizen) Plan 2016” (SVP 2016), and commenced work on its issues. Please visit the link below for details of the process. environment and society http://www.fujifilmholdings.com/en/sustainability/valuePlan2016/ l Across the value chain, Maintain & product lifecycles, and Expand the scope process/index.html world-wide reinforce

Social Background & Basic Approach social issues through products, services, and technologies.” l Solve social issues Company-wide STEP Clarifying the Basic Policies through business Expand the scope We enhance collaboration between our business activities 1 activities actively efforts At present, global warming and other environmental issues and social issues under the heightened expectation for the are in a state of crisis. In addition, social issues such as global companies to solve the worsening environmental Making it clear in the Basic Policies through a review of Matrix on Social Issues and Fujifilm Group’s Products, Services, and Technologies existing CSR activities. human rights and social disparity are becoming ever more and social issues. By this reflection, we embody our CSR Highly Business Pharma- Document Social issues Medical functional ・・・・ serious. Approach, “to contribute to the sustainable development of fields ceuticals materials solution

This in turn drives society to expect global corporations society by putting our Corporate Philosophy into practice Extracting Social Issues Based 2 STEP Reduce CO emissions ●● ●●●●● ●●●● with greater influential power to take actions towards through sincere and fair business activities.” In addition to 2 on Business Strategy Energy issues ● ●●● ●●● Environ- resolving such issues. At the same time, corporations are resolving social issues through its innovative technologies, ment ・・・・・・●● ● Exhaustion of resources ● ●● ● Listing social issues based on indicators found in ISO changing their approach to CSR by taking the initiative in products and services in the four priority areas related to ・・・・・・● ●● identifying and solving social issues as an opportunity for their the driving forces that VISION 2016 focuses on (healthcare, 26000, GRI guideline, etc. Improve accessibility to medical services ●●●●● ●● renewed growth, rather than simply reacting to regulations highly functional materials and document solutions), the ● Clarifying possible products, services, and technologies Identify diseases at an early stage ●●●●● by division Health ・・・・・ ●●● and requests. company will reinforce and expand by aggressively tackling Reduce doctor’s burden ●● Thus, the relationship between CSR and business environmental issues in its business activities and its CSR ・・・・・ ● ● ● Enrich humanity and relationships ●● ●●●●

activities is becoming closer than ever. Since the Fujifilm basis for activities on a worldwide scale. Create a safe and secure society ●●● ● ● STEP Evaluation of Materiality Daily Life Group’s first Medium-Term CSR Plan was created in 2007, The Fujifilm Group aims to be a company that contributes 3 ・・・・・ ● ● immediately after FUJIFILM Holdings was established, we have to “the sustainable development of society” by actively ・・・・・ ● The following two approaches have been implemented: Promote communications ●●● promoted CSR activities in a systematic manner. This latest creating “new values” to resolve the various social issues Working Promote diversity ●● ● 1) Solving social issues through business activities styles plan—our third—reflects the idea of “Contributing to solving that we face. ・・・・・ ● 2) Conscious on environmental and social impact within ・・・・・ business processes Materiality Mapping for Extracting Priority Issues FUJIFILM Sustainable Value Plan 2016 5 Areas seen mainly as opportunities for growth (opportunities) STEP 4 Planning and Review Solving social issues through business activities 4 ● Setting goals for priority issues, along with internal Identify social issues with a high potential for contribution, based on the understanding that proactively “solving social issues through reviews and approval business activities is the creation of new value,” which in turn provides a growth opportunity for the corporation 3 1. Improve accessibility to medical services Health Daily Life In FY2015, a general review of the Group’s priority issues 2. Contribute to identifying diseases at an 2 1. Contribute to creating a safe identified in SVP 2016 was carried out employing the early stage and secure society Social interests and requests Social interests 3. Response unmet medical needs 2. Contribute to enriching perspective of the SDGs on the 130 items involved in social 1 4. Promotion of health and contribution to humanity and relationships issues. Specifically, we invited the CSR specialist E-Square beauty to participate once again, as for the development of SVP 1 2 3 4 5 Promotion 2016, to examine the 169 SDG targets from the standpoint Policy Materiality for Fuji lm Group 1 of “social interests and requests” and “materiality for the 1. Global warming Contribute to solving social Working Promotion 1 Promotion 2 Promotion 3 Others Environment issues concerning the environment, 1. Promote communications Fujifilm Group” and to help decide whether new items should related items related items related items countermeasures peoples health, daily life, and Style that transcend the working style through our products be added to the existing priority issues. The findings led to 2. Response to water and services. information barrier problems 2. Promote diversity items that increased in importance but confirmed that there is 3. Response to energy no significant difference with the existing items. We will aim to promoting our activities along with the Group’s priority issues issues contribute solving social issues shown in the SDGs through identified in SVP 2016.

Fujifilm Group's Actions on SDGs Promotion Promotion Policy Policy 1. Raise compliance awareness 1. Promote global warming 2 3 and ensure risk management Enhance the CSR framework Respon- countermeasures Solve environmental issues 2. Develop and utilize diverse Good Afforda- Decent Industry Sus- sible Con- Peace, within business processes actively. supporting the corporate activities Clean tainable Justice Partner- across the value chain. No Zero Health Quality Gender ble and Work and Innovation Reduced sumption Climate Life below Life on 2. Promote resource recycling human resources Poverty Hunger and Well- Education Equality Water and Clean Economic and Infra- Inequality Cities and and Action Water Land and ships for Being Sanitation Energy Growth structure Commu- Produc- Strong the Goals 3. Ensure product and 3. Enhance value chain nities tion Institution management from the chemical safety Health viewpoint of CSR ● ● Daily Life ● ● ● Environ-

Identify the social issues to address to minimize external risks that could adversely affect 1 policy ment ● ● ● ● ● ● ● our business activities and reduce the social impact from our business processes Promotion Work Style ● ● ● ● ● ● ● ● Conscious on environmental and social impact within business processes Promotion policy 2 ● ● ● ● ● Areas seen mainly for their impact on society (risks) Promotion policy 3 ● ● ● ● ● ● ● ● ● ● ● ●

10 FUJIFILM Holdings Corporation Sustainability Report 2016 FUJIFILM Holdings Corporation Sustainability Report 2016 11 FUJIFILM Sustainable Value Plan 2016 Contribute to solving social issues concerning the environment people’s health JCIA Promotion Policy 1 daily life and oring style through our products and services Technology

Award Priority Issue for the development 1 Improve accessibility to medical services of sensor lm for World’s Targets: (1) Improve the medical environment in emerging countries 5,316 (2) Increase medical check opportunities in disaster or emergency situations and touch panels highest capacity Health improve diagnostic accuracy participants (3) Increase the medical check opportunities and improve diagnostic accuracy by The number of on a coated reducing the burdens on doctors participants of Tono magnetic tape Priority Issue Mirai Zukuri 2 Contribute to identifying diseases at an early stage College Demonstrated 220 TB Target: Disseminate medical diagnosis systems with improved accuracy and less physical data storage capacity burden on patients per cartridge Priority Issue 3 Response unmet medical needs Target: Develop medicines for diseases without effective treatments Priority Issue 4 Promotion of health and contribution to beauty Targets: (1) Extend healthy life expectancy and support positive state in everyday life (2) Assist women in staying healthy, beautiful, and attractive

216 Health is the most personal and Social Issues important topic for people, yet million yen ◦ Aging society ◦ Increased medical costs Basic there is a range of associated Risks in Approach problems, such as disparities in Subsidy for development international ◦ Regional divide in medical care Acceleration society medical access, shortage of doc- of highly sensitive, rapid ◦ Response to healthy life expectancy tors, increasing burden on med- on regenerative ical workers, and surging medical costs. The ◦ Unmet medical needs ◦ Global health etc. medicine tuberculosis diagnostic Fujifilm Group started producing X-ray film in business kit for developing 1936, soon after the company’s establishment. countries Health is listed as one of the goals of SDGs. Since then we have been a long-term contribu- Promoting studies for For example, the number of people suffering 1in11adults tor in the field of Medical Diagnosis. Our med- practical use of from diabetes is drastically increasing in many ical business has recently expanded into the cell therapy by countries, particularly in developing countries, Prevention and Treatment fields, as a part of iPS cells although it is a preventable and treatable dis- a strategic move towards the group’s growth. ease. One of the disease’s main causes is obe- We are continuously striving to widen our con- sity, an illness of modern society. About 422 mil- 1.8 lion adults had diabetes, with around 1.5 million tribution to promoting people’s health and times increase deaths per year resulting from the illness. The welfare. In this new CSR Plan, we set out four Generated hours for total number of patients is expected to multi- priority issues based on the scale of our con- sales activities by ply in the next 20 years, and due to this rapidly tribution to help solving the social challenges, increasing risk from diabetes across the world, Global number of adult identified through reviewing all the products, work style reforms WHO decided to make diabetes the major focus diabetic patients services, and technologies that we possess. of World Health Day 2016. Source: Global report on diabetes, WHO

FUJIFILM Sustainable Value Plan 2016 Related Business Fields Healthcare Related ongoing business activities (introduced in Sustainability Reports 2014 & 2015) ● Medical systems (X-ray diagnostic imaging systems, endoscopes, etc.) Promotion Policy ● Pharmaceuticals (low-molecular pharmaceuticals and biopharmaceuticals) • Virus detection diagnostic systems • Support for medical & pharmaceutical 1 ● Regenerative medicine (autologous cultured epidermis/cartilage) frontlines • Regenerative medicine ● Life sciences (functional cosmetics and supplement products) • Diagnostic ultrasound systems • Education & training for medical staff in emerging countries Contribute to solving social issues • Endoscope systems Document Solutions IT solutions for hospitals Global services (outsourcing services including document management and • Cosmetics and nutritional supplements • ● New medicines for cancers business process improvement) aimed at carbohydrate-control and • concerning the environment, people’s antioxidation health, daily life, and working style Outline of Activities in FY2015 through our products and services. promoted new drug development through starting clinical trials of The Fujifilm Group aims to be a total healthcare company and is making two anticancer drugs in the U.S. steady progress in strengthening its business structure. Particularly in the field of medial systems, ourmedical IT systems and diagnostic Future Prospects ultrasound systems have a good reputation in the market, with sales Health Daily Life Environment Working Style expanding across the world. In the filed of medical systems, we plan to introducesystems that In 2015, we acquired TeraMedica, Inc. in the U.S. in order to assist efficient management and diagnosis of medical images. Other contribute to more efficient medical imaging management and diagnoses. contributing prospects include promotion of a portable diagnostic We also made contributions to building network systems that link a local ultrasound system that works well in remote locations and emergency government and related organizations. We also started a new business situations, and unique endoscopes—such as transnasal endoscopes collaboration in order to establish technology to build a rapid diagnosis and models using laser light. We also plan to enhance the lineup of system for tuberculosis, one of the world’s three major infectious functional products that use our proprietary technologies in the life Page 17 Page 21 Page 24 Page 26 diseases, based on our own early detection technology for influenza virus. science field. Our focus in the pharmaceutical business includes further In the field of regenerative medicine, we expanded our business enhancement of biopharmaceutical contract manufacturing and the 1. Improve accessibility to medical 1. Contribute to 1. Global warming 1. Promote communications services creating a safe and countermeasures that transcend the strengthening the partnership with our group companies, Japan Tissue development of new drugs that meet “unmet medical needs,” such as 2. Contribute to identifying secure society 2. Response to water information barrier Engineering Co., Ltd. and Cellular Dynamics International, Inc. which has treatment for Alzheimer’s disease and anticancer drugs. We are also diseases at an early stage 2. Contribute to problems 2. Promote diversity become a consolidated subsidiary. strengthening our regenerative medicine business through acceleration 3. Response unmet medical needs enriching humanity 3. Response to energy Further, in the pharmaceutical field, we expandedthe of products and industry-government-academia collaboration, aiming to 4. Promotion of health and and relationships issues biopharmaceutical contract manufacturing business, and further contribution to the industry. contribution to beauty

12 FUJIFILM Holdings Corporation Sustainability Report 2016 Photo: SonoSite iViz, a tablet-type highly portable diagnostic ultrasound system for medical situations. FUJIFILM Holdings Corporation Sustainability Report 2016 13 FUJIFILM Sustainable Value Plan 2016 Promotion Policy 1 Contribute to solving social issues concerning the environment people’s health daily life and oring style through our products and services

2013 Priority 2013 Priority Infectious Disease Diagnostic System Establishment of Regenerative Issue Regenerative Medicine Issues Examination technology Development of highly sensitive, rapid tuberculosis diagnostic kit for Medicine Business Development 3 Group-wide action on cell therapy and drug creation support that enables early 2&3 Office & Regenerate Medicine detection of influenza developing countries Research Laboratories 2014 [Previous activity report] Sustainability Report 2015, page 18 2014 [Previous activity report] Sustainability Report 2014, page 19 & Sustainability Report 2015, page 18 Japan Tissue Engineering Start of research into 2015 Co., Ltd. became a wholly rapid diagnosis of Acquired Cellular owned subsidiary/Launch Now, there are more than ▼Regenerative Medicine of Fujifilm Group 2015 Ebola virus disease Tuberculosis (TB) is one ▼State of Tuberculosis in the World Today (2014) of extracellular matrix Start of development of Dynamics 30,000 types of diseases in Expand the regenerative medicine business with the combination of the top three infectious Tuberculosis International, Inc. highly sensitive, rapid fatalities the world for which effective of Fujifilm’s extracellular matrix, our technology accumulated in the tuberculosis diagnostic kits diseases, alongside AIDS photography business and technologies of other companies. and malaria, infecting 9.6 treatment methods and million Drug discovery business Epansion of drug 1.5 drugs have yet to be found. Regenerative medicine is drawing CDI CDI FF discovery business million people, and causing the deaths of 1.5 million around the world. Tuberculosis fatalities among HIV patients attention as the potential solution. Regenerative Medicine is to bring upply of Cardiomyocyte euron epatocyte Improved performance of cells through a The percentage of TB patients is particularly high in the developing and other cells derived from human iP cells combination of iP cell and extracellular advances in cell therapy in restoring the function of diseased parts to be used for drug development matrix countries in Africa and Southeast Asia. HIV is also common among iP cell baning 400,000 by regenerating damaged organs or tissues with artificially cultured populations in developing countries, and when people contract HIV, Children became ill Epansion of regenerative with tuberculosis cells and tissues (somatic cells, somatic stem cells and iPS cells*1). Cell therapy business J-TEC J-TEC FF medicine products their immune systems are adversely affected, making HIV patients Combine somatic cellsstem cells In addition, it is expected to simplify and increase certainty of drug Regenerative medicine products such as much more likely than healthy individuals to develop tuberculosis. million epidermis and cartilage utiliing somatic ith extracellular matrix to expand 1 discovery, by utilizing iPS cells in its process. cellssomatic stem cells regenerative medicine products based on Therefore, it is important to provide regular tuberculosis screening Tuberculosis fatalities among children threedimensional cell development Fujifilm Group is marketing “cellnest” (recombinant peptide or for people living with HIV in order to begin TB treatment at an early Source: Fact sheets on tuberculosis, World Developments in RCP), an extracellular matrix essential for cell culture developed with Peripheral business FF CDI J-TEC FF stage of the disease. Health Organization 140,000 organ regeneration (WHO) Fujifilm’s collagen technology accumulated in photography business. Extracellular matrix recombinant evelopment of products using iP cells Based on Fujifilm’s own silver amplification technology peptideRCP for regenerative medicine combining the In addition, in 2014 we acquired Japan Tissue Engineering Co., Ltd. technologies of the three companies used in photo development, we have developed an extrapulmonary TB patients (many of whom are affected with HIV) (J-TEC), the only company in Japan marketing autologous cultured immunochromatography*1 influenza diagnostic system that is for whom sputum diagnosis is not effective.

epidermis and autologous cultured cartilages at that time. In May FF II CorporationJ-TEC apan issue Engineering Co td capable of detecting the influenza virus at an early stage. In the This development project has been chosen for funding by the 2015, we proceeded to acquire Cellular Dynamics International, Inc. CDI Cellular ynamics International Inc drive to apply this technology to early detection of various infectious Global Health Innovative Technology Fund (GHIT Fund), which aims (CDI), a leading company in iPS cell development and manufacturing, diseases around the world, a joint study started in February 2015 on at the development of innovative medicines, vaccines and diagnostic and established Cellular Dynamics International Japan Co., Ltd. material technologies, engineering technologies, CDI's iPS cell- a rapid diagnostic system for Ebola virus disease. In March 2016, medicines in Japan. Granted a subsidy of 216 million yen, the project (CDJ) in October for sales operations in Japan. These steps have related technologies and know-how, and J-TEC's manufacturing we concluded a joint development contract on highly sensitive is scheduled for implementation from April 2016 to October 2017. enabled the Group to set up the framework to expand the business technologies for therapeutic cells. rapid tuberculosis diagnostic kits with FIND*2 of Switzerland. In *1 immunochromatography: A diagnostic method in which a colored line indi- domain extensively in areas of iPS cell-based drug development, *1 Somatic cells, somatic stem cells and iPS cells: Somatic cells reproduce developing countries, the diagnosis of TB is frequently carried out cating positive (antigen present) appears when an antigen-antibody com- cell therapy covering stem cells, somatic stem cells and iPS cells. only for specified purposes and do not differentiate into others. Somatic using a microscope to search a patient’s sputum for the presence plex, formed when the tested substance (virus or bacteria) in the specimen (nasal swab) drops on to the reagent, bonds with the labeled antibody in Although iPS cell-based therapy has yet to be applied in actual stem cells are capable of differentiation into organs in a certain range. iPS of the bacteria that causes TB. We have focused on a compound cells have the ability to differentiate into a variety of organ cells and can the reagent and is captured by the antibody applied linearly on the detec- practice in the world, we plan to start clinical trials for the treatment multiply infinitely. specifically produced by TB that is excreted in the urine. We will work tion line. Since this method provides rapid results, it is commonly used of age-related macular degeneration that causes blindness (in to develop a kit suitable for resource-poor countries that will allow for the diagnosis of infectious diseases that require immediate medical *2 NEI: Organization conducting research and supporting treatment of eye intervention. collaboration with the National Eye Institute (NEI)*2), as well as the diseases, an arm of the National Institutes of Health (NIH), the medical the prompt identification of the presence of the TB bacteria simply development in the treatment of Parkinson's disease, heart diseases, research organization under the United States Department of Health and by placing a urine sample into a cartridge in a device that does not *2 FIND (Foundation for Innovative New Diagnostics): A non-profit organization Human Services. headquartered in Switzerland dedicated to advancing the development and and other conditions. As the top runner in regenerative medicine, require electricity. This system simplifies diagnosis for children and adoption of new diagnostic technologies for infectious diseases that are we plan to contribute to the further industrialization of regenerative elderly persons from whom sputum cannot easily be obtained, and suited for developing countries. medicine by generating synergy between our high-performance

* Coordination gateway: Provides a portal site, paper-based record Priority digitization system, and SS MIX2 data conversion system Issue Patient Data Network System Prefectural Medical/welfare data coordination Priority Kita Sanriku Net connects four municipalities and Kuji Hospital infrastructure system ASP cloud Issue 1 service Medication Verification System 67 facilities. ● igital patient PROOFIT cuts down pharmacists’ workload record system Private cloud netor ● Information 1 ● Integrated medical infrastructure disclosure system treatment data ● Pbased

torage Remote conferencing gateay ●

In face of the growing number of senior citizens and the rising management disclosure medical records Information system need for nursing and home medical care, coordination between system system The workload of pharmacists are growing rapidly, expanding prepared for patients are correct. At present, pharmacists usually ● Pbased medical care and social welfare has become a major issue in nursing support from dispensing to counseling on medications, in response to the conduct it through a visual inspection. PROOFIT takes photo system local communities. In addition, providing seamless medical care/ ● ome medical development of disease prevention, self-medication*1 and home pictures of medications and make analysis to verify instantaneously Hospital nursing care/social welfare services even during a natural disaster Kita Sanriku Net treatment support medical care for the community and the elderly. and accurately whether the picked medications were identical ● Coordination system requires backup of patient data, not only paper-based records. gateay In April 2016, Fujifilm introduced a new medication verification to the prescription. The system reads not only barcodes but also ● CP terminal Remote backup Kita Sanriku Net was created as a system to resolve this issue by system named PROOFIT. It helps pharmacists to check if types characters printed on PTP*2 sheet employing character recognition connecting hospitals and medical clinics (including dental clinics), and quantities of medications for patients match the prescription technology developed by , which accommodates to a Medical clinics, dental clinics, Pharmacies Home medical care pharmacies, nursing care facilities and social welfare facilities (such nursing care centers ● Coordination gateay & nursing data. In Japan, it is compulsory for a pharmacist to conduct a wide range of font types. Also, the system analyzes edges of PTP ● Coordination gateay ● CP terminal ● ome medical examination as comprehensive community support centers), totaling 67, in the support system verification to confirm both types and quantities of medications sheets, shadows in the photo images with our high-precision optical ● CP terminal ● Prescription data system four municipalities in the Kuji medical service zone. Started as a drive engineering and image processing technology. The system reduces to support recovery from the Great East Japan Earthquake, Fuji participating facilities. The information shared by participating facilities human error as it accurately measures numbers of PTP sheets in a Xerox is providing the system, including an integrated patient data include treatment records, pharmacy prescription history, letters of bundle, quantities of tablets and capsules. Furthermore, the system system, to support community-level problem solving in the areas of recommendation, records of care at nursing and social welfare facilities contributes immensely to reduce pharmacists’ workload by its medicine, nursing care and welfare in Iwate Prefecture. The network for citizens who agree to the shared access with written consent forms, automatic update function to acquire latest medications data to the is being managed by the NPO Kita Sanriku Juku, established as as well as notes and reports on home medical examination and doctor’s system automatically. an organization to support all persons in the Kuji medical care visits for treatment and nursing at home. This system makes possible to *1 Self-medication; Treatment of minor physical ailments by the individual zone requiring rehabilitation and nursing care through coordination provide smooth cooperation between facilities and continual services. Select a patient at the touch panel, place Types and quantities of medications will be themselves, taking responsibility for their own health medications on stage and then press judged immediately after photo-shooting. between relevant organizations. Fuji Xerox will continue to propose solutions to various community photo-shooting button. It emits an alert beep sound if checked *2 PTP: Abbreviation for “press through package”, a type of medication pack- The network digitizes data at each facility for storage and problems in the areas of Document Services & Communications, in types and quantities of medications did age from which tablets and capsules are removed by pressing through not match those at prescription. backup in a secure private cloud, which also provides access to coordination with local governments and regional organizations.

14 FUJIFILM Holdings Corporation Sustainability Report 2016 FUJIFILM Holdings Corporation Sustainability Report 2016 15 FUJIFILM Sustainable Value Plan 2016 Promotion Policy 1 Contribute to solving social issues concerning the environment people’s health daily life and oring style through our products and services

Priority Issue Priority 1 Contribute to creating a safe and secure society 2013~ Issue Daily Life Target: Disseminate products that contribute to long-term storage of important information, crime Development and supply Portable Diagnostic Ultrasound System prevention, and improve information security and social infrastructure safety of portable diagnostic 1 Mobile tablet with a range of medical uses ultrasound system Priority Issue 2014 [Previous activity report] Sustainability Report 2014, page 19 2 Contribute to enriching humanity and relationships Launch of advanced Targets: (1) Contribute to handing down important cultures and artworks portable system Diagnostic ultrasound sys- The tablet comprises (2) Develop solutions to invigorate the community engagement 2015 FIFILM FC1 a sector probe and Launch of tablet-type tem has become widely 7-inch display that can (3) Disseminate photographic products that store memories in tangible forms and enrich people’s lives SonoSite iVi available in recent years, be operated with the thumb. and is used for checking seriously ill patients in hospital laboratories, ICUs, and NICUs,*1 and also in local clinics and for home medical care. Portable diagnostic ultrasound systems to be used in emergency situations or for home medical care need to be compact, and equipped with high definition Social Photography, the original busi- displays and a variety of diagnostic functions. ◦ Safety & security ness of the Fujifilm Group, has Issues Basic the power to preserve memories Exploiting our market-proven expertise in medical imaging ◦ Relationships & life fulfillment Risks in Approach of events and help us to lead ful- systems, Fujifilm has been working to develop a compact and international society ◦ Transmission and storage of information filling lives. This belief was re- lightweight diagnostic ultrasound system that offers both high quality inforced by the “Photo Rescue ◦ Preservation of arts and culture imaging and comfortable operability. In 2014, ahead of others, we an image transmission capability over a secure network in order to Project” organized during the 2011 Great East launched the FUJIFILM FC1, the first joint product with SonoSite, contribute to a variety of medical situations, including home medical etc. Japan Earthquake. With our Tono Mirai Zukuri College, conceived as part of the recovery as- a leading developer of portable handheld medical imaging devices, care, accident & emergency events, remote locations, and disaster- We now live in the era of Big Data, when different sistance activities, we are exploring directions 2 trillion GB in order to respond to the diverse demands of the POC testing* affected sites, where improvements to medical support system are types of information are stored as digital data. 44 we can take in the future to revitalize local market. The model released in May 2016 was the SonoSite iViz, indispensable. The data volume generated across the world has communities. Photos and documents can re- 20202020 a tablet-type diagnostic ultrasound system with a slim body and increased massively, marking 4.4 trillion GB in vitalize communication and preserve our cul- *1 NICU: Neonatal Intensive Care Unit. 2013—a figure expected to increase 10 times by tural heritage for future generations, and our weighing a mere 520 g, which can even be put into the pocket. The *2 POC testing: Point of Care testing. Conducting a medical test in front of a 2020 to 44 trillion GB. However, available stor- hope is that we can develop new products and product is designed not only to be compact but also to deliver a clear patient in hospital or at home to make a medical decision or provide opti- age could only accommodate 33% of existing data in 2013, and this will decrease to less than services and promote their wider use in socie- mum treatment. 20132013 4.4 trillion GB and high definition 1.4 M-pixel image backed up by a new image 15% by 2020. We are now faced with the seri- ty. The safe storage of digital data is important processing circuit developed through our exclusive technology. The ous issue of storing important data safely. in allowing members of society to preserve their ties with other people, thus enriching life device is equipped with a camera to record a patient’s mental and Digital data volume generated in the world by 2020 in a society that is safe and with fewer acci- physical condition in an emergency situation or home medical care Source: IDC dents and less crime. as still or moving pictures. We plan to enhance the product with

Related Business Fields 2006 Priority Document Solutions Related ongoing business activities Issue (introduced in Sustainability Reports 2014 & 2015) Development and commercialization Supplements and Functional Cosmetics ● Global services (outsourcing services including document management and of supplements and cosmetics based on photo film technology 4 Further utilization of astaxanthin and salacia business process improvement) • Data archiving using magnetic tapes 2014 • Future Creation Program to contribute to local communities Announcement of [Previous activity report] Sustainability Report 2015, page 20 Highly functional materials new functions of ● Recording media (magnetic tape for computers, data storage services) • The Photo Renaissance activities to foster the culture of photography Lenses for security cameras astaxanthin and Digital imaging • 2015/2016 salacia As the aging society launched Kirin ASTALIFT Water • New communication tool in tourist spots Launch of foods with function 2 ● Photo imaging (photo books and film processing/printing services) claims and products under collaborations continues to progress, containing nano-astaxanthin* with different business partners prolonging “healthy life and pure collagen*3. This is Optical devices Optical devices (TV camera lenses/cine lenses and lenses for security cameras) expectancy”*1 is the focus a beauty-supplement drink ● of many people’s interest. Japanese Foods with Function Claims developed through a technological system was started in April 2015 along with the backdrop of the collaboration between Fujifilm government’s Self-Care and Self-Medication campaign to raise and the Company to support awareness about preventing lifestyle diseases and health risks women’s beauty and health via among consumers. oral intake. Fujifilm continues Metabarrier Slim, a food with function and sales are expanding globally. In the data storage field, we Utilizing a range of technologies developed through its to develop products based on claims (left), and a calorie intake Outline of Activities in FY2015 control supplement (right) enhanced the safe and secure long-term storage systems for large photographic film production, Fujifilm has developed and offered scientific evidence and enhance Fujifilm Group has contributed to the development of photographic amount of data through launching the FUJIFILM LTO Ultrium7 Data supplements and functional cosmetics that contribute to lifestyle the product range both with and without business partnerships to improvement. Such products include “salacia,” a contribute to the people’s beauty and health. culture since the time of its foundation. Our efforts were highly Cartridge, which utilizes our exclusive technology, BaFe magnetic evaluated in the Mécénat Awards 2015 as the Photo Inspiration particles, and the data archive service, “d:ternity.” natural sugar blocker that helps prevent lifestyle *1 Healthy life expectancy: Suggested by WHO in 2000. The difference be- diseases, and “astaxanthin,” an antioxidant to tween “average life expectancy” and “healthy life expectancy” among Award for our series the Heart to Heart Communication—“PHOTO help fight against aging. Taking advantage of the Japanese as of 2010 was 9.13 years for men and 12.68 years for women. IS” 30,000—Person Photo Exhibition, which has been growing Future Prospects Foods with Function Claims approval system, *2 Nano-astaxanthin: Emulsified astaxanthin made into nano-sized particles bigger and bigger since it began in 2006. we launched Metabarrier Slim, which contains a less than 100 nm in size using Fujifilm’s technology. We also offered opportunities to the younger generation who As a company that fosters the culture of photography, it was very salacia derivative, salacinol, targeted at women in *3 Pure collagen: Highly purified collagen developed by Fujifilm. grew up with digital cameras and smart phones to enjoy immediate encouraging that our the Heart to Heart Communication—“PHOTO their 20s and 30s. Thanks to the new system, we photo printing and combining various pictures through expanding IS” 30,000—Person Photo Exhibition received such a valuable could promote salacinol’s sugar blocking efficacy the FUJIFILM lineups and promoting value-added printing, award. We will continue to promote the way to provide joy in in an easy and direct manner to the intended such as the “Year Album” and “Shuffle Print.” Our new mirrorless photographs and printing in a manner suited to the era of digital audience. digital camera, the FUJIFILM X-T10, and our flagship model, cameras and smart phones in order to enrich people’s lives. At the In April 2016, Kirin Beverage Company the FUJIFILM X-Pro2, offer exceptional photographic quality, same time, we are striving to offer innovative products and solutions operability, and portability to customers. that suit diverse senses of value and lifestyles—represented by our Kirin ASTALIFT Water, a soft drink developed jointly by Kirin Beverage and Fujifilm Additionally, our 4K-compatible high zoom ratio cine lens— multi-language services for tourists, and safe, long-term storage launched ahead of others—are highly rated for their image quality systems for endlessly expanding data.

16 FUJIFILM Holdings Corporation Sustainability Report 2016 FUJIFILM Holdings Corporation Sustainability Report 2016 17 FUJIFILM Sustainable Value Plan 2016 Promotion Policy 1 Contribute to solving social issues concerning the environment people’s health daily life and oring style through our products and services

Priority Priority 2013 Issue 2013 Issue Commenced a joint project Future Creation Programs in Local Community Commenced Photo Photo Renaissance Activity with Tono City 2 Tono Mirai Zukuri College, government-industry-academia cooperation joint project Renaissance activity 2 Globally promoting the culture of photography to enrich people’s life 2014 [Previous activity report] Sustainability Report 2014, page 24 & Sustainability Report 2015, page 22 2014 [Previous activity report] Sustainability Report 2014, page 22 & Sustainability Report 2015, page 23 Opened Tono Opened the first WONDER PHOTO Mirai ukuri One of the priority issues the Global Award of the Discover Countryside Treasures in Japan*2 Fujifilm is promoting the 2015 College 2015 SHOP Promotion for College and for Fuji Xerox is to help program (second selection) hosted by the Ministry of Agriculture, Received the “Photo Renaissance” ac- Mécénat Award similar programs to other areas solve social issues in local Forestry and Fisheries (MAFF). This work of community revitalization tivity across the world to communities through is now attracting public interest and has gained a reputation as a communicate the pleasure business. As a part of related activities, Tono Mirai Zukuri College movement to invigorate rural areas. that photography brings through “shooting, preserving, displaying, was established in Tono City, Iwate Prefecture, which served as Fuji Xerox plans to broaden the projects to help in resolving and gifting” as a part of the promotion and development of the “pho- a logistic support point for the disaster area after the Great East concrete issues in the area of education, industry promotion, and to culture” that Fujifilm has pursued since its foundation. Japan Earthquake. The college now functions as a collaborative site administration, in addition to the exchange programs. It also plans to In 2015, the Heart to Heart Communication – PHOTO IS for industry, government, academia, and the local community to establish a PR team to promote further usage of the college. 30,000-person photo exhibition received the Photo Inspiration work together towards resolving social issues for the future through Fuji Xerox is intending to expand the Future Creation projects Prize at the Mécénat Awards 2015 hosted by the Association for utilizing Fuji Xerox’s advanced communication technologies. nation-wide, utilizing the expertise it gained in Tono City. Following Corporate Support of the Arts. The exhibition started as the PHOTO The college celebrates its second year in FY2015, and Fuji the Minami-Ashigara Mirai Zukuri Project (Kanagawa Prefecture), in IS 10,000-person photo exhibition in 2006, and has now continued Xerox has promoted further usage of the college to broaden its October 2015 it concluded a collaborative agreement with Iki City, for 10 years, with the number of entries now standing at approx. operational foundations. Approximately 20 programs over seven Nagasaki Prefecture, for an Iki-na Mirai Zukuri Project. This project 30,000 each year. The exhibition is the largest photo exhibition held areas are offered including; Attractive Educational Environment for aims to build a model of community revitalization on a remote in Japan, and all photographic works convey the innermost feelings local communities, New Product & Service Seeds for corporations, island. Fuji Xerox’s efforts in community revitalization are steadily of the entrants. The total number of applicants over the past ten years The Mécénat awarding ceremony attended by exhibition staff members and partner Realistic Local Research for universities, and New Administrative progressing. has now reached 192,234 together with some 3.8 million visitors to organization representatives Services for governments. The programs enjoyed 5,316 participants *1 Tono & Sumida Furusato Experience Council: An organization formed by 11 the exhibitions. The awarding of the Photo Inspiration Prize was in We host various photo from local communities, corporations, and universities, 50 percent bodies, including Tono Mirai Zukuri College, Tono Minpaku (vacation rental) recognition of Fujifilm’s significant contribution to the development Association, and Sumida Minpaku Association. promotion events more than the 3,469 participants in FY2014. The number of rooms of the culture of photography through such measures as providing across the world, including the 500px for accommodation in the college building marked 1,969 this year. *2 Discover Mura no Takara: An MAFF program to promote nation-wide model a wide audience with the opportunity to enjoy photographs, rural community revitalization projects. Fujifilm Global Photo Half of the participants were from the Tokyo metropolitan area, establishing an exhibition in which everyone can participate and Walk providing significant economic benefit to the local community ▼College Programs *Approx. 20 programs over seven areas were conducted utilizing the company’s own resources—the Fujicolor chain of photo (approx. 200 million yen). Also in 2015, the Tono & Sumida Country Program areas Outline shops across Japan. Life Experience Council,*1 of which the college is a member, received The Photo Renaissance activity also included a business aspect Future creation activities Promotion of collaborations among people concerning nature, Exchange culture, food, and arts. in that we commenced a variety of new services for smart phones. Future creation camp Workshops and discussions on open themes. Junior-high and high school Developing an education program concerning local topics for We opened a WONDER PHOTO SHOP in Harajuku, Tokyo in 2014, continuous study program junior-high and high school students. Lifestyle and it was welcomed by young customers—from those in their teens Research by university students on local community issues and Academic collaboration and making suggestions to governments to those in their 30s—for the product and service range targeted Culture Theme-based discussions necessary for local communities, specifically at smart phone users. Over 60% of the store sales is Local community study including medical, local knowledge, and disaster prevention. photo print orders from smart phones (less than 30% in standard recorded on video tapes and 8 mm films to high quality digital data Local community Identifying and addressing local issues with an aim of Industry revitalization cultivating local leaders chain stores), cultivating a new demand for photo printing. In 2015, and rerecords it on DVDs. It is a mission for Fujifilm to offer the means Creation Business model research through collaborations with sponsor Management School for Working Adults (Tono 3rd-sector field work) for community Industry creation companies and local companies we expanded the WONDER PHOTO SHOP overseas including of preserving the precious memories of the previous age for the next revitalization (left) and The University of Tokyo Innovation Summer Program (right) Columbia, Shanghai in China, Manila in the Philippines, Barcelona age utilizing its exclusive technology in a time when it is becoming in Spain, Singapore and Australia. More stores are planned for the more difficult to access video decks and film projectors. Fujifilm thus future. In addition, we plan to start a new wall décor service in Japan, continues to promote “photo culture” by diverse means. Priority 2013~ Issues which is already available in Europe and the U.S. in 2016. * The Mécénat Award is to honor the activities of corporations and corporate Developed released a Data Archiving on Magnetic Tape While we adapt to new media, we also offer services for legacy foundations in Japan that contribute to enrich culture and society through long-term and high capacity 1&2 Technology to store valuable data safely and efficiently their support of the arts. magnetic tape media. The Fujicolor Remake Service converts analog image data 2014 [Previous activity report] Sustainability Report 2014, page 22 & Sustainability Report 2015, page 23 Launched a data archive service All manner of information demonstrated data storage and retrieval of the world’s highest 2015 dternity WONDER PHOTO SHOP Wonder Photo Box Demonstrated data storage of and historical documents capacity of 220 TB*1 data storage on a single coated magnetic tape opens across the world— (released July 2015), the world highest capacity across the world are with the highest*2 areal recording density of 123 Gbpsi.*3 With an eye in Philippines (top), a large-capacity Australia (bottom-left), digital photo album now archived as digital on commercializing this technology, we continue to strive to offer a and Spain (bottom-right) with easy operations data and their volume is increasing day by day. How to store such data media service with even higher performance and quality. data safely and efficiently and at a reasonable cost has become a *1 Data as of the news release on April 9, 2015 for non-compressed capacity. significant issue to be addressed. Based on our own research. In response to this situation, Fujifilm—for the first time in the *2 Data as of the news release on April 9, 2015 for coated magnetic tapes. world—has developed a Barium Ferrite (BaFe)-based high capacity Based on our own research. magnetic tape, and commenced a data archiving service “d:ternity” *3 Gbpsi: Giga bits per square inch. A unit to indicate areal recoding density. Fujicolor Remake Service utilizing BaFe tape. Magnetic tape offers excellent capabilities in long- converts analog data to digital even from a medium in poor term data storage without requiring electricity, unlike a hard disk, condition, such as a moldy or badly deteriorated tape which requires a constant power supply so that reduces energy cost = and CO2 emissions to one tenth. Also, as it is free from system failures 220 TB 310,000 CDs 220 million books and security risks, such as viruses and hacking, magnetic tape has become an important means of data storage in recent years. In November 2015, we launched LTO The 220 TB and 123 Gbpsi tape can In 2015, we made significant improvements to the characteristics Ultrium7 with a maximum storage store data equivalent to 310,000 CDs or capacity of 15.0 TB (6.0TB native) and a 220 million books. of BaFe magnetic particles, and, jointly with IBM, successfully maximum data transmission speed of 750 MB/s (300MB/s native).

18 FUJIFILM Holdings Corporation Sustainability Report 2016 FUJIFILM Holdings Corporation Sustainability Report 2016 19 FUJIFILM Sustainable Value Plan 2016 Promotion Policy 1 Contribute to solving social issues concerning the environment people’s health daily life and oring style through our products and services

Priority Issue Global warming countermeasures 1 Priority Environment Target: Reduce CO2 emissions by 20 million tons by FY2020 (compared to 2005) 2013 Issue Chairmans Prie of ECC, Development of Energy-Saving Products Energy Conservation Grand Prie 1 Fuji Xerox products received high evaluation in environmental awards Priority Issue Response to water problems 2 2014 [Previous activity report] Sustainability Report 2015, page 25 Target: Reduce and restrict of water pollution Ministers Prie, the Ministry of Economy, Trade and Industry, Eco-Products Awards Fuji Xerox full-color digital *1 The Energy Conservation Grand Prize: An award program hosted by the Priority Issue 2015 Energy Conservation Center, Japan and sponsored by the Ministry of 3 Response to energy issues Chairmans Prie of ECC, multifunction devices Target: Contribute to generating energy with low environmental impact 13 times winner of the Energy Conservation Economy, Trade and Industry. Grand Prie top of the industry won the 2015 Energy *2 Energy Star Program: An international energy saving scheme for office Conservation Grand Prize equipment operating in nine countries and regions. for the 13th time, the highest number in the industry. This year, the products that won the ECCJ Chairman’s Prize under the Product and Business Model category, the Energy Conservation Grand 1 Social According to the latest re- Prize,* were two models in the Apeos Port-V series and a further Issues Basic port from the United Nation two models in the DocuCentre-V series, due to their Intergovernmental Panel on convenient usability while achieving power consumption Risks in ◦ Global warming Approach Multifunction device international Climate Change (IPCC), it is as low as 30% of the target value specified by the Energy Customers in 7-Eleven stores society ◦ Exhaustion of resources ◦ Water problems likely that temperatures will in- Star Program.*2 ◦ Energy issues etc. crease by approximately 4°C We were also honored by the 5th Carbon Offset by 2100 without additional mitigation and CO2 Award (hosted by the Carbon Offset Network, Japan) in emissions continue to rise. Global warming is recognition of our carbon offset scheme—offsetting CO2 Climate change and sustainable energy us- % reduction becoming ever more serious and remains as emissions from power consumption and paper usage age are issues listed in the SDGs. The Paris 40‒70 one of the most important issues to address Agreement concluded in COP21 also stated re- by customers using the multifunction devices installed in Power and paper usage stricting any global temperature rise this century across the world. The water risk is another Apeos Port-V C7776 (photo) offers 7-Eleven stores. This was a one-year scheme beginning high quality imaging and convenience to below 2°C compared to pre-industrial levels, serious issue in focus. The Fujifilm Group aims on December 8, 2014, for the multifunction devices while achieving energy saving through as a long-term international target. To achieve to help resolve these environmental challeng- exclusive IH fusing technology etc. this target, it is important to expand renewable installed in 18,249 7-Eleven stores across Japan, and low-carbon energy use in power generation, es through changing our working styles and Offset Calculate CO2 was the first of its kind in the convenience store industry. emissions amount along with energy-saving measures through di- products towards low environmental impact, CO2 emissions verse technological innovation, and by encour- including highly functional materials and mag- Due to the fact that a wide range of age groups use Carbon credits aging behavioral change in our life. GHG emissions reduction target convenience stores, the scheme had a large social impact by 2050 (compared to 2010) netic tape utilizing applied photographic film IPCC Fifth Assessment Report and a significant result. The prize was given for this social Support for development and production technologies. anti-global warming aspect and our contribution to carbon offset promotion. 7-Eleven projects in Fuji Xerox continues its contribution to reducing Investment developing countries Related Business Fields environmental loads through our technological Offset volume was equivalent to a reduction of 22,000 tons of CO2 or CO2 absorption by 1.52 million development and environmentally conscious products. cypress trees for one year. Highly functional materials Related ongoing business activities (introduced in Sustainability Reports 2014 & 2015) ● Industrial materials and electronic materials, etc. (development of new materials, etc.) • Resource saving solutions for printing business Priority Development of Materials That Solve Graphic systems • Development of products and services with superior environmental performance 2013 Photovoltaic backsheets Sankei Shimbun Prize, Advanced Issue ● Materials and equipment for graphic arts (CTP plates) • Environmental Issues Ion exchange membrane (measures for water problems) Technology Award (Development Document Solutions • and commercialization of a thermal 1 EXCLEAR thin double-sided sensor film for touch panels • Reducing environmental impact at offices insulation material) 2014 ● Office products and office printers • Gas separation membrane (using natural gases) Minister of Environment Prize, [Previous activity report] Sustainability Report 2014, page 16 & 17 ● Production services (digital printing systems) Green and Sustainable ● Global services (outsourcing services including document management and busi- Chemistry Award (Backsheets for solar cells) ness process improvement) 2015 Fujifilm has won the in one of its constituents, indium. Such issues include the fact that Special Technology Prize, JCIA Technology Award (Thin double-sided Special Technology indium is a rare metal of which supplies may become unstable, sensor film for touch panels) Prize under the 48th indium compounds are listed in the Ordinance on Prevention of JCIA Technology Award* Hazards Due to Specified Chemical Substances because of its (hosted by the Japan Chemical Industry Association) for its thin environmental risks, and its rigidity can cause wire breakage when Outline of Activities in FY2015 double-sided sensor film for touch panels, an application of the bending the film, causing an even higher electrical resistance. environmental impact. Also, the thin double-sided sensor film for company’s photographic technology. The EXCLEAR film utilizes high-conductivity silver image Utilizing the technology accumulated through photographic film touch panels that won the JCIA Technology Award contributes to Sensor films for touch panels are often used in smart phones, formation, one of the latest applications of silver-halide photographic production, the Fujifilm Group develops and sells a range of products the reduction of environmental risks and risks related with material and are commonly made of Indium Tin Oxide (ITO). Because ITO technology. EXCLEAR enables not only pen input and multi-touch that reduce environmental impact as a leading company of highly supply stability. films have high resistance their stimulation response is quite poor input on a touch panel, but also has wide applications in 3D and functional films, Our efforts and products in the document solution business and therefore it is difficult to use the film for pen input or multi-touch wearable device sensors thanks to its high transparency and We set a goal to reduce CO2 emissions by 20 million tons have won multiple environmental awards for their contribution to input, and for screens larger than 10 inches. Therefore, an alternative flexibility. Being free from indium, there are no risks for material by FY2020 compared to FY2005, and in FY2015 we contributed environmental impact reduction. to ITO film has been sought, also due to the disadvantages inherent procurement and this contributes to a reduction in environmental 12.05 million tons of CO2 emissions reduction compared to FY2005. Important contributors Future Prospects impact. We continue to respond to various demands Amount of CO2 Reductions EXCLEAR on a touch panel module ▼ include BaFe-based data from society through developing highly functional for Customers FY2014 Glass screen EXCLEAR storage media, whose sales We plan to promote sales of sensor film for touch panels and materials utilizing our exclusive expertise. Results Optically clear have grown constantly, LTO backsheets for solar cells, which already have steady sales, along adhesive * JCIA Technology Award: Awards given to unique products (10 kiloton-CO2) Target 20 million EXCLEAR and technologies that contribute to progress in scientific 2,000 tapes, and SYNAPSE, the IT with resource-saving solutions for graphic systems and products LCD panel technology. 60% solution for medical clinics. Our and services in the digital printing market, where demand is expected Flexible 1,500 backsheets for solar cells to grow. Utilizing our advanced fundamental technologies and the printed circuit Enlarge Fuji Xerox received the Nikkei Global core technologies that we have accumulated over the years, the Silver formation 1,000 at μm-level pitch Environmental Technology Fujifilm Group continues to contribute to resolving ever-progressing To controller IC Anisotropic conductive film 500 Fujifilm Award in October 2015 for environmental issues by launching innovative products that match Printing fine sensor patterns using matte and black silver halide, which does not reflect a part of the visible prolonging the useful life of market needs in a timely manner. spectrum, on the surface of a transparent polyethylene terephthalate film realizes a sensor film with high 0 transparency and flexibility. 2015 2020 (FY) solar cells and thereby reducing

20 FUJIFILM Holdings Corporation Sustainability Report 2016 FUJIFILM Holdings Corporation Sustainability Report 2016 21 FUJIFILM Sustainable Value Plan 2016 Promotion Policy 1 Contribute to solving social issues concerning the environment people’s health daily life and oring style through our products and services

Priority Issue Working 1 Promote communications that transcend the Priority 2009 Issues information barrier Started Sales Process Reform Work Style Reform Target: Promote solution services to enhance communications inside and outside the company 1&2 Improving sales productivity by streamlining business processes and structures Style and widely notify details of case studies 2013 [Previous activity report] Sustainability Report 2015, page 27 Adopted New Work Style Priority Issue Promote diversity (change in the supporting 2 2015 systems and rules) With the recent improve their productivity, and among the sales staff members in Target: Create and expand practical working environment solutions that enable people to work emergence of various the department, the number of visits to customers has increased wherever and whenever to suit individual’s skills and lifestyle needs Established satellite offices as a part of Work Place Reform social factors, including by 65%, and average overtime hours have decreased by 10–20% an increasingly organized compared to FY2014. ICT environment, workforce diversity promoted as a political issue, The Work Style Reform activities in Fuji Xerox have generated and concern for workforce reduction, working styles utilizing ICT are quantitative results that include an 11% reduction in total working hours, becoming a focus of society as a means to enable diverse human a 52% reduction in hours spent on associated work, and a 1.8 times Social The Fujifilm Group has brought resources to work with higher productivity. Since the 1980s, Fuji increase in hours for sales activities such as meetings with customers Issues Basic evolution to communications Xerox has engaged in research and practice focused on work style (FY2015 results compared with FY2008). These reforms are also Risks in in society through a fusion of reforms and has been proposing New Work Styles based on its attracting customers’ attention as many of them are also seeking new ◦ Working disparity Approach international familiar paper data with digital experiences. In 2009, the company started sales process reform, working styles for their employees. Fuji Xerox sales staff members can society ◦ Reduction in workforce data and on to a seamless inte- and in 2013 we began introducing working program to support offer office solutions that help such customers’ issues in a collaborative ◦ Diversity etc. gration with cloud services and different working styles. As a part of these changes, we implemented manner based on their own experience. The next stage that Fuji Xerox mobile solutions. Access to and the sharing a sales support system that reduces complicated administrative is aiming to reach is a visualization of quality in work and tasks for which of information in various forms with ease and tasks, changed the company rules and practices, and established a productivity is difficult to measure, so that we can create a corporate SDGs list the issues of gender equality, sus- More than without any conscious awareness of the digi- mobile work environment. Now we are building an office environment culture and system to evaluate not by “quantity” of working hours but by tainable economic growth, and employment tal divide expands the possibilities for different among them. In Japan, the Act of Promotion of to support such new working styles. One example is the opening of the “quality” of their work. In order to disseminate truly diverse working % services and working styles in every possible Women’s Participation and Advancement in the 30 satellite offices in the central Tokyo area in 2015. The office space styles to society and realize Workplace was enforced on April 1, 2016. We of seats place—in offices and government organiza- of Nihonbashi Branch (Nihonbashi, Chuo ward) was newly designed an environment to improve now face concerns for labor shortages in the tions and in education and medical care. By future and diversification in occupational needs, as a model to put the latest working styles into practice. The office productivity, we continue to and globalization. To address these issues, it is giving value to communication with the focus indispensable to diversify human resources in on people, Fujifilm will continue to support a layout was free address and the branch building also contains evolve our advanced work various employment areas. Women’s participa- a satellite office. One of the Departments has its main office in style reforms. tion is particularly important in such employment The number of seats women wide range of working styles for the new age. issues. hold in national parliament in at Nakano-Sakaue, Nakano ward, about 40 minutes away by train from least one chamber (46 countries) Nihonbashi. Many sales staff members who work in this department Fact Sheet, Sustainable Development Goals (September 17, 2015) have customers around the Nihonbashi area, and they now carry out the majority of their work in the satellite office instead of the Nihonbashi Office with a large desk for Related Business Fields main office. Activities without returning to the main office significantly satellite workers Document Solutions Related ongoing business activities (introduced in Sustainability Reports 2014 & 2015) ● Office products and office printers ● Production services (digital printing systems) • Work Style Reform as a possible solution for all society Priority ● Global services (outsourcing services including document management and busi- • Business Process Improvement to enhance productivity and workers’ skills Issues Technological Development to Realize Valuable Communications ness process improvement) • Support for mobile work for more flexible working 1&2 Accelerating solutions and services offers through collaboration among research facilities • Support for multilingual communications • Presenting new working styles through teleworking Today, business communications are no longer just simple face- Global collaboration among Fuji erox research facilities to-face meetings—meetings now take place across different time Fuji erox Developing specific zones and locations and through different languages, demanding R&D Suare solutions and services (Japan) to customers more advanced methods of information delivery and sharing. In Outline of Activities in FY2015 Future Prospects order to accelerate development for advanced communication technology that promotes diverse working styles and interaction, Fuji Xerox offers solution services to build environments where To contribute to resolving increasingly complicated social issues, we in 2015 Fuji Xerox established a new research organization, the diverse people can work in the way most suitable for their own continue to develop and offer ICT and Cloud-based solution services Innovation Office, in Singapore. The Innovation Office’s role is to situations, regardless of location and time. and products that address clients’ business issues or offer new ways verify that our technology leads to solutions for each customer’s Innovation Office F Palo Alto Laboratory In FY2015, we launched DocuStation C3375 CS, a self- of working, along with concrete examples of our own experience of business challenges, working together with customers and partner (Singapore) (Silicon Valley, U.S.) service public official certificate issuance system that enables resolving similar problems. companies in the Asia-Pacific region excluding Japan, in order to Working together with customers and partner Advanced R&D into users to obtain official documents without visiting public offices, and A newly introduced research collaboration system that links create the most advanced values. Following the verification, Fuji companies, this core organization in the Asia multimedia and Pacific region offers value verification leading information technologies solution services to obtain “My Number,” the Japanese national ID researchers from diverse cultural backgrounds in Japan, North Xerox R&D Square in Japan then develops the Innovation Office’s to solutions for business issues number introduced in January 2016, in the manner most suitable to America, and Singapore, is helping to evolve reforms to our own research results into a specific solutions/services as a business to or specially tailored to each customer. working styles and business processes through new ways of offer to customers. Research collaboration is also conducted with Through the collaboration among these three facilities, Fuji Xerox We also reinforced interconnections between various functions communications utilizing ICT. We then offer the results of such the FX Palo Alto Laboratory*1 in the U.S., where the most advanced aims to extend its solutions and services businesses that realize within Fuji Xerox’s cloud services, Working Folder, and Scan reforms as solutions to customers. technologies are being integrated. In Fuji Xerox R&D Square, valuable communications, promptly responding to the global Translation Service, thereby improving their convenience. Further, research activities with a medium- to long-term perspective are customer needs. we commenced sales of solution services, multifunction devices, conducted toward the commercialization of solutions and services. *1 FX Palo Alto Laboratory, Inc.: Research site established in California, U.S. in 1995. It conducts research into the document service and communication and production printers, all of which support the mobile work of our We plan to link these three research facilities utilizing the remote communications technology*2 developed by FX Palo Alto Laboratory area with a long-term vision. The laboratory’s fortes are in multimedia tech- customers. Such new products and solutions include Cloud On- nology and information technology. to build a unique research environment, in which our researchers Demand Print, a service to create a flexible printing environment and customers work together for value verification in real time, *2 Remote communications technology: Technology that enables several lo- for companies to promote collaborative work relationships through cations to be connected with a remote conferencing system via web in- regardless of their geographical locations whether in Japan, Silicon smoother document deliveries and information sharing. terface. Such systems create an environment just as if participants were Valley, or Singapore. attending a real meeting by offering natural conversation together.

22 FUJIFILM Holdings Corporation Sustainability Report 2016 FUJIFILM Holdings Corporation Sustainability Report 2016 23 FUJIFILM Sustainable Value Plan 2016 11% Promotion Policy 2 olve environmental issues ithin business processes actively CO2 reduction compared to the base year Significant Achievement one year earlier for FY2016 reduction of The Fujifilm Group is working towards recognizing the social usage and final disposal. Understanding the entire picture of More than target and environmental impact through the material flow system such impact caused by our activities throughout the value summarized resource inputs, emission and recycled volume chain is helping us to accelerate our efforts towards realizing 99.5% from our corporate activities in all business process—from a sustainable society. in all of our 13% material procurement, manufacturing, transportation, to Compared to the medium-term business areas target volume of waste generated by FY2016 Resource recycling rate of Target Fujifilm Group Green Policy (Environmental Policy) http://www.fujifilmholdings.com/en/sustainability/vision/greenpolicy/index.html collected used products (Fuji Xerox) Reduction by Related Data and Information Environmental Aspects Pages 64, 65, 66 Direct control over the Fujifilm Group’s environmental burdens

Waste Inentie material % Discharged 67.2 a 30 water kilotons CO2 emissions by FY2020 6 The 12th Award of Water* ...... 43.4 million tons (compared to FY2005) BOD*7 ...... 53.7 tons “LCA Society of Japan” COD*7 ...... 149 tons (Fuji lm) O Total nitrogen*7...... 232 tons U Atmospheric Total phosphorus*7 .... 4.18 tons Atmospheric Atmospheric Atmospheric T emissions emissions emissions emissions *3 *4 *5 P CO2*1 .... 1,970 kilotons CO2 .... 414 kilotons CO2 .... 689 kilotons CO2 .... 167 kilotons U Atmospheric T emissions CO2*2 ...... 1,256 kilotons VOC ...... 0.85 kilotons SOx...... 13.4 tons NOx...... 493 tons Soot ...... 4.18 tons

R&D/ Disposal/ Procurement Manufacturing Transportation Use Recycling Resource extracting transporting refining Electricity used Light diesel oil and Electricity used Waste combustion synthesiing processing Oil and gas used heavy oil used Water used recycling energy and materials transporting Water used Electricity used FUIFILM Sustainable alue Plan 26 Aluminum, Electricity...1,150 million kWh Light diesel oil, etc*11 Electricity*12 Combustion amount aluminum alloy... 127 kilotons Oil*8...... 52.4 ML ...... 160 ML ...... 1,240 million kWh (estimation)*13 I Silver ...... 0.360 kilotons Natural gas*9...... 222 million m3 (paper/PET/TAC, etc.) Promotion Policy Paper (used for Water ...... 47.4 million tons ...... 51 kilotons 2 N products)...... 44.5 kilotons P PET*...... 30.8 kilotons U TAC* ...... 38.5 kilotons T Others ...... 162 kilotons Collecting used products Solve environmental multifunction devices / ( * PET: Polyethylene terephthalate PS plates/CTP plates, etc.) issues within business TAC: Triacetylcellulose R processes actively. E Material Amount of C recycling cyclic water Material Y Aluminum, PET, used*10 recycling C Silver, TAC 82.4 million tons L E

*1 Environmental burdens due to raw materials procurement (CO2 emitted *6 Wastewater released as a result of business activities during the process of extracting, transporting, refining, synthesizing, pro- *7 Volume released to public water cessing, and transporting raw materials) is calculated for the main raw ma- terials procured. *8 Total of heavy oil A, heavy oil C, kerosene, light diesel oil, and gasoline (Amounts of the petroleum-based products are summed after appropriated *2 Environmental burdens due to product manufacture is calculated based on energy conversions, and the total is expressed in terms of the amount of the total amount of energy (electricity, petroleum, and gas) consumed in the heavy oil A.) production process. *9 Total of natural gas, liquefied natural gas (LNG), urban gas, butane, and *3 For the calculation of environmental burdens due to product transportation, liquefied petroleum gas (LPG) (Amounts of the gases are summed after estimates are made based on domestic and overseas transportation meth- appropriate energy conversions, and the total is expressed in terms of the ods and distances traveled. The typical amount of CO2 emissions per unit amount of urban gas.) Page 26 Page 3 Page 32 of weight and distance for each method and correction factors such as the yield rate are multiplied by the weight of the raw materials procured. *10 This includes the amount of water used in a cyclic manner. *4 For copy machines, printers, and fax machines, environmental burdens due *11 Calculation assuming transport by truck to use of products is calculated as energy consumption for a 5-year period *12 Based on the average CO2 emission coefficient of the Federation of . Promote Global Warming 2. Promote Resource 3. Ensure Product and for the machines installed this year. For other products, the estimated num- Electric Power Companies of Japan ber of machines in operation is multiplied by typical energy consumption. *13 Hypothetical combustion rate for each substance used Countermeasures Recycling Chemical Safety *5 Environmental burdens due to product disposal is calculated based on the (For the above, data from the input-output table and other sources are used to estimation of stress on the environment caused by the disposal of the raw obtain CO2 emissions per unit of output.) materials procured.

24 FUJIFILM Holdings Corporation Sustainability Report 2016 Photo: 800 solar panels installed for in-house power generation at FUJIFILM Speciality Ink Systems Ltd. (UK) FUJIFILM Holdings Corporation Sustainability Report 2016 25 FUJIFILM Sustainable Value Plan 2016 Promotion Policy 2 olve environmental issues ithin business processes actively

Priority Issue : Fujifilm Fujinomiya 1 Factory (power ▼Fujifilm Group’s Main CO2 Reduction Measures generation site) Action area Relevant stage Principal CO2 reduction measures Promote Global : Fujifilm sites Development and Multifunction devices (copiers, printers, faxes) with less energy consumption (document field) : Sites of Fujifilm dissemination of Procurement, use ● Energy saving medical diagnostic equipments (medical field) Non-processing CTP plates requiring Warming affiliated companies products with less and disposal ● ● environmental impact no developing solution (graphics systems field) : Fuji Xerox sites Countermeasures ● Fuel shift from heavy fuel oil to gas (Japan) ● Use of methane gas generated at waste disposal sites as fuel (United States) ● Wind power generation at factory site (Netherlands) ● Introducing Solar Power Generation (United States, Netherlands) ● Developing and introducing energy-saving Target 2 technologies such as waste heat collection and steam collection (production sites in Japan, Reduce CO emissions from the Reducing CO2 emissions at factories and offices Manufacturing Europe, United States, China, etc.) ● Reducing the usage of energy that is not directly linked with entire product lifecycle by 30% production output, changing condition of air conditioner, minimization of equipment number, changing compared to FY2005 by FY2020 manufacturing process (production sites in Japan, Europe, United States, China, etc.) ● Wheeling Sites using the Fujifilm Group’s wheeling of electric power with in-house of electric power within-house co-generation system for 18 sites (Japan) ● Usage of energy storage co-generation system (As of March 2016) battery to reduce peak time electricity consumption (Japan) ● Purchasing Green Energy (Japan, etc.) Recycling for scrap aluminum from the production of PS/CTP plate and developing and expanding Recycling Procurement, ● disposal the use of a collecting & recycling system of used PS/CTP plate (graphics systems field) Paths optimization Improving loading ratio Promote modal shifts Using light and compact Efficient distribution Transportation ● ● ● ● The Fujifilm Group has been promoting activities to reduce CO2 emissions by setting management indi- packaging ● Promoting eco-driving ● Milk Run procurement system for components (China) Basic cators for CO2 emissions across the entire product and service lifecycle (from material ”procurement,” product “manufacturing,” “transportation,” “use” and “disposal”), not only within our Group. We set Approach the target of “reducing CO2 emissions for the entire lifecycle of products by 30% by FY2020 (relative ▼FY2015 Results for Fujifilm Group ▼Energy Strategy Promotion Committee 2 CO2 (kt-CO2/year) Production Subcommittee of to FY2005)” in April 2010, and we are continuing to actively reduce CO emissions in our Group as a Total stress on whole. Since FY2012, we also calculate CO2 emissions based on the Scope 3 Greenhouse Gas Protocol 2,000 1,970 the environment the Fuji Xerox Environmental Others Committee (“Scope 3”),* and report related information as required. We also carry out development of environmen- 4,496 kt-CO2/year Cooperation tally conscious products based on “Rule for Design for Environment (DfE),” with which we review the 1,500 1,256 Workplace Activity Teams degree of achievement in product performance to the target set in the design stage. Aluminum Energy Strategy These efforts should contribute to the further reduction of CO2 emissions. Gas 1,000 Others Promotion Committee Functional Film Production * Scope 3: Refers to one of the scopes that are targets for calculation and reporting on greenhouse gas emissions by companies. Medical equipments Chaired by Corporate VP Petroleum 689 Other Production/Office Scope 3 refers to indirect emissions, such as material procurement, manufacturing, transportation, use, disposal, as well as em- PET Minilab in charge of CSR 500 414 ployees’ commuting and business travel. Scope 3 calculation is based on the General Guidelines on Supply Chain GHG Emission TAC Copiers Copiers Electricity Printers Cross-section Activity Teams Accounting released jointly by METI and MOE. Printers Fax machines 167 Fax machines 0 Energy procurement Procurement Manufacturing Transportation se Disposal Energy saving technologies Wheeling system of electric power ▼CO2 Emissions ▼FY2015 Result of GHG Scope 3 ▼CO2 Emissions across the Entire Product Lifecycle (Scope 1, 2, 3) Emissions for Fujifilm Group

Outline of Activities in FY2015 (kt-CO2/year) Downstream leased assets Procurement Manufacturing Transportation End-of-life treatment mutual-inspections and energy-reduction diagnosis, etc. (kt-CO2/year) 6,000 of sold products se Disposal Emission Trading 5,289 5,137 4,993 Furthermore, we also embarked on new measures such as 6,000 se of sold Global Warming Countermeasures 5,000 16% ● cope products the introduction of electricity from new power companies 4,000 Oter Processing of looking toward the separation of generation and transmission Related Data and Information Environmental Aspects Page 64 5,133 indirect sold products 5% 5,049 Target relative 74% 75% emissions Downstream 5,000 253 3,000 3% of electricity (implemented in April 2016), etc. Moreover, the in- 257 4,843 4,737 to FY2005 transportation 4,680 and distribution Purchased goods 226 188 4,496 75% house co-generation system* that was launched in FY2014 to 615 190 30% 2,000 pstream and services 167 reduction leased assets 11% supply the power generated in the Fujifilm Fujinomiya Factory 1.112 616 749 reduction 709 1,000 10% 12% 11% Employee 53% 4,000 689 commuting to sites among our group companies, was additionally compared to 646 16% 13% 14% 2 464 3,525 0 Business travel CO 404 441 2013 2014 2015 (FY) Waste generated 6% expanded to 18 sites in FY2015, simultaneously contributing % the base year 365 138 in operation 414 11 Scope 1 Direct emissions 401 pstream to alleviating peak demand to the power grid and to reducing Scope 2 Indirect emissions resulting transportation Capital goods Achievement one year earlier for FY2016 target 3,000 Fuel and energy-related activities 1,354 from energy usage and distribution energy costs. 1,339 1,288 423 1,317 Scope 3 Other indirect emissions 1,487 1,256

2,000 929 Future Prospects CO2 Emissions Reduction Across the Product Continuous Promotion of Energy Strategy Lifecycle The Fujifilm Group founded the Global Warming Prevention In FY2016, we plan to further expand energy-saving In FY2015, despite our Group’s production output exceeding 2,265 2,198 2,145 Committee in FY2007 to promote significant improvements measures across the Fujifilm Group and revise their manner 1,000 2,060 1,970 1,828 that of the base year, FY2005, the Group’s overall CO2 1,634 in production energy intensity and CO2 emissions per of operations in order to continuously reduce energy- emissions were reduced by 553 thousand tons (11%) unit production at six major factories in Japan, as well as derived CO2 emissions. At the same time, we will re-assess from the base year level, and the medium-term target for 0 the Energy Cost Reduction Project, across the company our scenario for achieving the FY2020 targets as well as FY2016 (a reduction of 10%) was achieved one year earlier. -74 including overseas companies and factories since FY2010, considering new targets for after FY2020. In addition, we will We have maintained a downward transition since FY2011 both of which achieved their targets in FY2012. In FY2013 promote contributions to the prevention of global warning, -1,000 with a reduction of 5% compared to FY2014. In FY2015, 2005 2011 2012 2013 2014 2015 2020 (FY) these energy management schemes were renewed and through comprehensive measures in production processes we reduced CO2 in all lifecycle stages including a reduction Base year Target restarted as the Energy Strategy Promotion Committee, and offices, from technical endeavors to improve production of 8% compared to FY2014 for procurement in particular. giving them control over energy procurement and supply. efficiency, thorough reductions in fixed energy consumed This was due to the contribution of reductions in procured further efforts to improve the energy usage efficiency at our In FY2015, we reduced energy use by 3% compared to regardless of the amount of production, and sharing of amounts of raw materials (continuous recycling activities of facilities, through promotion of energy-saving measures FY2014. In addition, in part due to the drop in energy unit energy-saving measures from each business site across the aluminum from used PS plates and promotion of reduction of across the group companies, enhanced utilization of in- prices (electricity and fuel), we achieved a significant (18%) entire group, followed by group-wide deployment of these loss in manufacturing). CO2 emissions in the manufacturing house co-generation systems in Japan, and utilization of reduction in energy costs. measures for expanded effects. Meanwhile, we continue our stage were reduced by 2% compared to FY2014 and by renewable energy in overseas sites. In addition, we also made As specific activities for FY2015, we devised energy in-house co-generation system while planning and promoting 16% compared to the base year (FY2005). Under conditions steady improvements from the perspective of environmental minimum production plans in collaboration between the more measures for new National systems in the future. where the CO2 emissions coefficients of the electric power efficiency in terms of product value (revenue)/environmental operations division and the power division, as well as group- * In-house co-generation system: Enforced in Japan following the revision of utilities in Japan increased by 30%, this was achieved by impact, with an improvement of 5% compared to FY2014. wide activities such as energy-reducing seminars and the Electricity Business Act, in April 2014.

26 FUJIFILM Holdings Corporation Sustainability Report 2016 FUJIFILM Holdings Corporation Sustainability Report 2016 27 FUJIFILM Sustainable Value Plan 2016 Promotion Policy 2 olve environmental issues ithin business processes actively

emissions credit in July 2016, and we are comprehensively this ideal in mind, we are creating new value by developing Third-Party Opinion on “Promote Global Outline of Activities in FY2015 continuing our activities for contributing to CO2 reduction. products that seamlessly integrate the environmental OPINION Warming Countermeasures” For water usage which is now gaining world attention, technologies we have developed and refined. ●Design for Environment we formulated the internal guideline to Calculate the Water In FY2015, four models of our ApeosPort-V Series Footprint in 2014, to commence visualization of water usage and DocuCentre-V Series won the Chairman’s Prize of the Mr. Takejiro Sueyoshi Special Advisor across the product life cycle. In FY2015 we conducted Energy Conservation Center in the Product and Business UNEP Finance Initiative assessment for the resource saving solution “FUJIFILM Model category of the 2015 Energy Conservation Grand Profile In addition to being involved in UNEP FI, Mr. Sueyoshi has Incentive SUPERIA” for the Graphic System Business. Prize. This is the 13th award Fuji Xerox has won and the served in various positions, such as committee member on various types of councils on the Central Environment In highly recognition of our activities over many years, highest number in the industry (see page 21). In software, Council, advisor to Kawasaki City and Kagoshima City, Award part-time lecturer at the University of Tokyo Graduate we were awarded the Incentive Award in the 12th Awards of environmental action is being implemented for the entire School. He also works as an external member of the The 2th Award of LCA Society of apan (Fujifilm) “LCA Society of Japan” hosted by the Japan Environmental product commercialization process starting from the product board to companies and engages in efforts to raise awareness on environmental issues and the social Management Association for Industry in FY2015 (see page planning stage, with emphasis on (a) new functions and responsibility of companies on TV, in newspapers, pub- lished works, and lectures. 33). ideas in reducing environmental impact, (b) environmental Fujifilm Group impact reduction effect when used by the customer, (c) Praise for dramatic reduction in CO2 Fujifilm Group carries out development of environmentally Future Prospects environmental action on media, printed matter, packaging, conscious products throughout the entire product lifecycle etc., provided to the customer and (d) environmental emissions over the entire product based on the Green Policy, and promotes to provide products In FY2016, we start Design for Environment activities for the improvement activities by the organization in charge of lifecycle and services that contribute to reducing CO2 emissions and Software/Service/IT System and intend to accelerate our product commercialization. We contribute to CO2 reduction The most noteworthy result for FY2015 was the dramatic other global environment impacts. efforts to promote contributions to reducing CO2 toward the in the customer office by offering software with outstanding reduction in CO2 emissions. This was achieved not only achievement of the 2020 targets. Also, concerning water effect in reducing environmental impact. one year earlier than the target in the medium-term plan, Fujifilm usage, we will promote the development of products to despite the increase in the production output, but it also Fujifilm has been working on reducing environmental impact conserve water resources and provide the environmental Future Prospects covers the entire product lifecycle. The Fujifilm Group for its all new and renewed products according to “Rule for information through visualizing the water usage amount in deserves praise for its determination to implement the Design for Environment” since 2003. We promote to visualize our products. We will continue to contribute to business growth of our product lifecycle approach while the CO2 reduction efforts the results of social contribution toward the target to “reduce *1 The internal guidelines to Calculate the Environmental Contribution for the customers and at the same time reduction of CO2 emission, by other companies remain fragmentary or partial, defined CO2 emissions by 20 million tons by 2020 (compared to Reduction in CO2 Emissions: A compilation of approaches and methods to through solutions and services that are the strengths of in the narrow sense. I am strongly impressed by the results visualize contributions to CO2 emissions reduction in a quantitative manner 2005)” stated in the Medium-Term CSR Plan, based on the across the product lifecycle, including the stage of customer usage. our company combined with outstanding environment- of diligence and drive organized through consolidated internal guideline to Calculate the Environmental Contribution friendly products by eco-friendly technologies that we have *2 Special assessment format for the Software/Service/IT System: Target set- action by the management and employees. 1 for the Reduction in CO2 Emissions* formulated in March ting and assessment from the perspective of Contribution on Environmental developed over our history. In the Paris Agreement at COP21 held late last year, 2013. In FY2015, we made ten case studies focusing mainly Impact Reduction on the customer side, in terms not only of things but also the global target was set to zero emissions. Around the of reduction of movement of people and use of storage space, etc. on medical products, and also confirmed new projects and world, many leading companies are already competing updated the list of candidate projects (a total of about 60) that head-to-head to achieve zero emissions. In view of this may contribute to CO2 emissions reductions. In view of the Fuji Xerox development, I would like to see Fujifilm Group define significant potential expansion of IoT in the future, we added Fuji Xerox hopes to contribute to both solving issues and ▼RealGreen Concept a more ambitious long-term target beyond its FY2020 a special assessment format*2 for “the Software/Service/IT reducing environmental impact at customer offices through goal of a 30% reduction. A higher target will attract great System” for the Rule for Design for Environment. Aside from its products and services. At the core of its mission is Stress-free operation igh environmental attention and will stimulate greater motivation. This is all the this, to raise awareness of the contribution for CO2 emission our concept of “RealGreen,” our policy on realizing both performance (no waiting) more important because realization of carbon neutral has reduction for general customers, we actively participated environmental performance and convenience. The goal is to (TEC*) become a vital factor in winning against the competition in in industry activities such as the LCA working group at achieve “Comfortable Eco,” an ideal rooted in our conviction the 21st century. the Japan Chemical Industry Association. We have also that to achieve true environmental performance, our product I look forward to further action from the Fujifilm Group. started provision of cosmetics with carbon offset using CO2 must be stress-free for customers as well earth-friendly. With RealGreen (Real energy efficiency)

Virtually zero waiting time between sleep mode and copy/scan mode minimizes user stress. ▼Progress of “Design for Environment”

FY 2002 200 2004 2005 2006 200 200 200 2010 2011 2012 201 2014 2015 2016 201 Become Output function Automatic operable becomes ready recovery immediately during operation Revision aing internal Response to the third-party opinion ddition of biodiversity sstem to respond to A FormulationImplement for all new products and upgrade products Fujifilm conservation We sincerely appreciate your highly evaluation for our Overall of rules Formulation of ontriution to design Revision of rules calculation Implementation and utiliation 20 million ton activities in FY2015 for the Fujifilm Group’s target of isualiation of targets guidelines for for environmental O2 reduction assessment contriution effect in 2020 achieving a 30% reduction in CO2 emissions in FY2020 environment High speed recovery Smart WelcomeEyes Smart Power Saving Formulation of Implementation and utiliation ontriution to from the sleep mode over the 2005 level through the entire product lifecycle, as ater footprint response to calculation ater riss well as our success in achieving our medium-term target guidelines Eco-friendly technology one year early. Formulation Revision Revision Revision * Typical Electricity Consumption (TEC): The amount of power consumed by office We will continue to do our utmost to reduce CO2 anagement of rules elf audit of rules of rules of rules equipment, such as printers and copiers over a conceptual week (five days of operation emissions in the business processes, as well as at our of cemical and repeated sleep/power-off mode, plus two days of sleep/power-off mode). sustances Provision of Promote steady operations customers through our products and services, by setting contained ransition to information on Introduction of AP mecanisms Obtain information from suppliers, deploy overseas cemRPA2 cemical sustances a more ambitious longer-term target beyond 2020, focusing the goal of achieving the zero emissions of the Promote coleaf aron footprint Paris Agreement. environmental laeling PA to PA lael pe II (CSR Group, Corporate Planning Division, FUJIFILM Holdings)

oint rticle anagement Promotion Consortium 2 chemERP scheme that facilitates sharing information on chemical substances in products

28 FUJIFILM Holdings Corporation Sustainability Report 2016 FUJIFILM Holdings Corporation Sustainability Report 2016 29 FUJIFILM Sustainable Value Plan 2016 Promotion Policy 2 olve environmental issues ithin business processes actively

Priority Issue 2 ▼Fuji Xerox New Resource Reduction by Using Reuse Parts* target. In addition, regarding ▼Water Usage per Unit Promote Resource Recycling (Total for Japan, the Asia-Pacific Region, and China) our group sites with relatively (usage/revenue) Targets (1) Reduce volume of waste generated by 8% (t) higher water risk we identified (thousand tons/100 million yen) 4,000 in FY2014 through visualization 3.0 compared to FY2012 by FY2016 3,273 2.8 2,875 2,916 (2) Reduce material input per unit by 10% 3,000 using a matrix with two indices: 2.6 2,361 2.38 Target compared to FY2012 by FY2020 (Create an 2,272 “water stress” and “impact on 2.4 2,000 company business in terms of 2.2 input control system by FY2016, such as setting 2.0 1,000 water usage,” in FY2015, we 2.02 indices per unit and verifying the efficacy) 1.8 1.94 1.90 reconfirmed how low risk is at 1.6 (3) Maintain water usage per sales (water input per 0 (FY) 1.4 Target achieved unit) at FY2012 levels Water source in FUJIFILM Ashigara Factory 2011 2012 2013 2014 2015 each site through the situation *The total amount of New Resource reduction in the production stage of water management and water 1.2 by using Reuse Parts. 1.0 usage reduction measures. We 20122013 2014 2015(FY) were assessed as B rank by The Fujifilm Group has always been aware of the importance of effective use of natural resources, CDP Water.* as the main raw material for photographic film, the main product at the time of our establishment, is Basic operating area*2. As a result of such efforts, the total number the precious natural resource, silver, and to which lots of clean water and fresh air are essential in Approach of products using recycled parts since 1995, reached to 380 manufacturing. Since our establishment, we actively continue with our efforts to reduce the amount of Future Prospects virgin resources, such as by reducing water usage, recycling and reusing water, recovering and reusing thousands in 2015. As for the reduction of new resource silver, and establishing a resource recycling system for multifunction devices and copiers, etc. We are inputs by using recycled parts, we increased these by 357 We not only maintain the level of water usage per unit set conducting efforts to use resources effectively and reduce waste through measures which take into tons in FY2015 from the previous year. This was because the as the medium-term, but also consider the new goals. And, account the total lifecycle of a product, by considering the 3Rs (reduce, reuse, recycle) in the product amount of products and consumables using recycled parts we continue to reduce water usage and water recycling design, reducing loss at the manufacturing stage, collecting, reusing and recycling used products, and increased. by implementing water risk countermeasures in our group recycling or converting into valuables. sites according to their water risk levels and actual business Future Prospects operations. We are also surveying and taking measures to reduce water usage in our suppliers and customers. We are progressing with the further utilization of resources and * CDP Water: An information disclosure and rating program relating to water too, and since FY2011, we have been involved in a project reductions in environmental impact to enhance the “quality” risk for companies by CDP, an international non-profit organization. B is the Outline of Activities in FY2015 as Fujifilm Group to convert waste in manufacturing into of recycling, such as by improving the working environment second one for eight rankings. valuables and raise the value of these valuables. In addition in dismantling processing bases while maintaining “Zero Related Data and Information Environmental Aspects Page 65 to activities at production sites, we have expanded our Landfill” in all of our business operation areas. ▼Assessment Map of the Impact of Water Resources on efforts to waste in offices and warehouses for transportation *1 Definition of “Zero Landfill”: Reduction of simple incineration and landfill rate Company Business and promoted our measures in the scope of our business of no more than 0.5% of all waste produced by weight. Significant activities overall. *2 Japan, China and the Asia-Pacific High 6 These various continued efforts have made strong reduction of 5 13% results, with 4% reduction in volume of waste generated Response to Water Risks Compared to the medium-term target volume compared to FY2014 and the achievement of a significant Since our establishment, the Fujifilm Group has been 4 of waste generated by F26

reduction by 13% compared to the base year FY2012 of the working toward water usage reduction and water recycling. Middle medium-term target. In addition, reduction of waste to be Considering increasing attention to water risks , we set a disposed of by simple incineration/landfill (zero emission) is medium-term target related to water resources and have 2 atersed environmental riss atersed Measures to Reduce Waste underway on a global scale. Since FY2014, the Group has been promoting further reductions in and more efficient 1

The Fujifilm Group is making comprehensive efforts to use kept zero emissions of over 90% for all regions (Japan, US, water usage in FY2013. As a result of continued efforts at ow 1 2 4 5 6

resources effectively and reduce waste throughout the entire Europe and China). each site, in FY2015, we achieved a significant improvement regions stress Assessment of locations in ater ow Middle High Degree of impact on compan usiness lifecycle of its products. We think carefully about the most by 20% compared to FY2012 in water usage per unit Assessment of ater usage usiness riss effective ways to use resources and reduce waste as much as Future Prospects (water usage/revenue), which achieved the medium-term ● orksites production sites non-production sites possible, by considering reduction of resources in products and recycling after use in the design stage, and reducing We are progressing continual waste reduction and utilization losses at the manufacturing stage. Meanwhile, we are of resources, following cost reduction through group-wide concerned about waste emitted necessarily in manufacturing optimization. We are also considering higher targets for 2025 Water Stress Map and 2015 Fujifilm Group’s Water Usage reduction of waste generation. ▼ North America 5% Europe 4%

▼Outline of Measurements for Waste Reduction in Fujifilm Measures to Zero Landfill from Products UK The Netherlands 3% Group At Fuji Xerox, based on the principal of treating used China/Asia products as valuable resources instead of as waste, by Hebei Province Japan Product Design for nvironment Design products ic generate minimal aste 88% South Carolina Suzhou Province Shanghai development Consider the s, educe, euse and ecycle collecting customers’ used products and reusing or recycling Fujifilm them, the program aims to utilize resources as effectively as Fuji Xerox possible with the goal of “Zero Landfill*1.” We have achieved ( shows size of water usage) Reduce loss in production Reduce aste to minimum in production anufacturing Zero Landfill from the collected used products in Japan educe loss in production and reduce the occurrence of defects by recycling them as a part of other products. As a global Annual water availability corporation, meanwhile, we recognize our responsibility to per capita for 2025 –500 m3 Promotion of effective use of resources Reccle and reuse minimize our environmental impact in every locale where we Scarcity reatment of 3 emissions Improving the uality of recycling Heat recovery Material recycling, do business. In China and the Asia-Pacific region, we have 500–1,000 m and the reusing of resources in products 1,000–1,700 m3 Stress built integrated recycling systems on a par with our Japanese 1,700–4,000 m3 ompreensive efforts to promote aste reduction system. Since 2010, we have maintained a recycling rate of 4,000–10,000 m3 Sufficient quantities and effective use of resources at least 99.5%—our “Zero Landfill” target—for our entire 10,000 m3– Water Stress Map: Mapping Fujifilm Group’s water usage into 2025 Water Stress Map (UNEP)

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Procurement Manufacturing Sales Priority Issue 3 Environmental safety manage- ment of chemi-

● products Raw cal substances Chemical

Ensure Product and Upstream materi- Priority als Issue Domestic and International Appraisals Chemical Safety Winning awards for environmental impact reduction and disclosure of ● Mix - 1 tures climate change information Functional Functional Midstream Target Contribute to “Minimization of adverse effect to productsmaterial environment and human health from chemical Fujifilm has won the FUJIFILM Holdings was also listed for the first time in the Climate ● Parts Management Incentive Award under Disclosure Leadership Index (CDLI) by CDP.*2 CDP offers a climate substances in production and usage by FY2020” ● Compo - of chemical substances in Downstream nents Fujifilm Green Procurement Standards Electrical and the 12th Awards change program to request corporations to promote climate change- * Joint Article Management Promotion-consortium (JAMP): A cross industry organization products electronic products of “LCA Society of related information every year. FUJIFILM Holdings acquired a full established in 2006 to ensure smooth communication and management of information on Acquiring, managing and communicating information on chemical substances contained in products throughout the supply chain. chemical substances (using the JAMP* framework) Japan.”*1 The prize scale (100 points) in their disclosure scoring. We continue to reduce was given in recognition environmental impact across our group companies and proactively Ceremony for the 12th Awards of “LCA Society of for our LCA (Life Cycle disclose environmental information to stakeholders. Japan” Because the Fujifilm Group manufactures a wide range of products such as chemical products, func- Assessment) activities *1 An award scheme established in 2004 to honor the excellent activities of tional materials, optical devices, office equipment, and medical equipment, etc., we have established (establishing an internal system for LCA promotion, Employee LCA to lead to reduce environmental impact reduction across the product Basic life cycle. and implement management rules according to the respective composition and manufacturing pro- training, Integration to “Design for Environment,” and CO2 emissions Approach cesses of our products, from the perspective of management of the handling of chemical substances reduction across the product life cycle, etc.) and its resulting on *2 A nonprofit organization to gather and assess corporate environmental in- environmental impact reduction, which we have been working on formation on behalf of institutional investors. Their programs cover climate and management of information on chemical substances. Since 2010, in our Medium-Term CSR Plan, change, water, and forests. we have been making efforts for the priority issues of establishing and disseminating the framework to since 2003. acquire, manage, and communicate information on chemical substances contained in products along the supply chain and enhancing our system to acquire information on laws and regulations in each country and region around the world accurately, and to ensure response efficiently. Priority Issues Activities to Reduce Environmental Impact in Europe and U.S.A. 1&2 Low-carbon energy utilization and water usage reduction

was designed to conduct chemical risk assessment practically Outline of Activities in FY2015 ˜Building the first large-scale joint wastewater treatment ˜ Redesigning the company garden reduces water usage as and efficiently by standardizing the assessment steps as much plant in the Netherlands an adaptation measure (U.S.A.) Related Data and Information Environmental Aspects Page 66 as possible for typical operation conditions. Together with Water Board De Dommel, FUJIFILM Manufacturing California has been suffering from drought for the last five years, Europe B.V. (EF), and three other companies in the Netherlands and mandatory water restriction and water rationing by the State Future Prospects are constructing a large-scale joint wastewater treatment plant in of California have been introduced. Taking the initiative in water Formulated the premises of EF. The ground-breaking ceremony was held in usage reduction, FUJIFILM North American Corporation (FNAC) has 1 2 the In FY2016, we expand our activities to ensure an understanding November 2015. The companies are combining their wastewater collaborated with the owner of the facility, Cypress Land Company, 3 new rules of the new chemical management throughout the Group, both in flows within the plant to minimize the environmental impact from their to replace greenery and plants that require significant amounts of Company-wide rules on Japan and other countries, and start full-scale implementation. businesses, while at the same time reducing wastewater treatment water with drought-tolerant plants, and change watering systems chemical substance control (Fujifilm) costs. Benefits of the plant include not only being able to release to drip irrigation to minimize water consumption. These measures Management of Chemical Substances in Products treated water as clean water, but also generating biogas from the reduced water usage in FY2015 to some 60% of that in FY2014. Management of Chemical Substances Fujifilm has been improving its management of chemicals in wastewater sludge. The plant is expected to start operations in Fujifilm manages the chemical substances used in its business products across the supply chain through regular briefings for the summer 2016. according to the internal classifications based on the applicable suppliers and support to the suppliers. In FY2015, the briefings laws and regulations, the level of hazard, and the company’s were organized to provide social trend and latest regulatory ˜ Commencing production solely by wind power (Netherlands) On January 13, 2016, FUJIFILM Manufacturing Europe B.V. (EF) management policies. information concerning chemicals in products in addition to the concluded a contract with Eneco, a Dutch energy company, to In FY2015, we created the outline of our new company- method and procedure of the information communication to commence production using only wind power. Since 2011, Eneco wide rules on chemical management, to ensure consistency foster the deeper understandings. We focused on conversation has been directly supplying 20% of EF’s electricity needs from five with the trend of chemical management in the world today, with the suppliers about their issues on the information wind turbines on Eneco’s site. The new contract is for additional including the change of perspectives on chemical safety placing communication towards their solution. electricity required from Eneco’s wind farm in Tholen to power EF’s the emphasis on the chemical risk and the expanding scope of At the same time, we became a supporting member entire production requirement, enabling Fujifilm to achieve complete regulated chemical substances as well as shortening the period of chemSHERPA, which is a new scheme that facilitates Plants in the 23,183-square foot garden were replaced with drought-tolerant plants carbon neutrality. and ground cover that require minimum watering. of time between proposal for regulation and enforcement. The communicating information on chemicals in products essential features of the new internal rules are implementation throughout the supply chain developed by the Ministry of of chemical risk assessment for all chemical substances used Economy, Trade and Industry, Japan to reinforce our system to ●Solar power generation realized 39.62 tons CO2 emissions in Fujifilm and management categories of chemical substances enhance the management of chemical substances contained reduction (U.K.) linked to significance of chemical regulations. We aim at ensuring in our products. For the smooth transition from the current FUJIFILM Speciality Ink Systems Ltd. (FSIS) has installed 800 solar the further safe handling and well-planned use of chemical information communication scheme to chemSHERPA, we panels measuring 1,320 m2 at its premises to generate power substances through these activities. joined various related committee activities of the JAMP (Joint for its own use. The The revised Industrial Safety and Health Act came into force Article Management Promotion-consortium), which has been solar power generation in Japan in June 2016. This act makes an assessment of the the operating body of chemSHERPA, and act as one of the system started full-scale chemical risk to human health mandatory when using substances leading companies since April 2016. operations on February specified by the Order for Enforcement of the Industrial Safety 1, 2016, and 39.62 tons worth of carbon had been and Health Act (as Dangerous or Harmful Substances Subject Future Prospects to Labeling, etc.). The assessment was an effort obligation until offset by the end of March. The 100 gigawatt hours of electricity required for all plant operations is equivalent to the energy used by 30,000 households. this revision. To respond to this revised act appropriately, we Along with preparation for the smooth transition to chemSHERPA, These solar panels use FUJIFILM backsheets for developed and started to implement chemical risk assessment we will further expand our management system concerning solar cell. procedure used in the Fujifilm Group in Japan. The procedure chemical in products in the Asia region.

32 FUJIFILM Holdings Corporation Sustainability Report 2016 FUJIFILM Holdings Corporation Sustainability Report 2016 33 FUJIFILM Sustainable Value Plan 2016 Promotion Policy 3 Enhance the CS framework supporting the corporate activities across the value chain. Reduced to Introduction of Program for 21% Accompanying a The number of persons CSR Activities Promoting throughout the Value Chain with metabolic Spouse’s Transfer ▼ syndrome in FY2015 (Fuji Xerox) Procurement RDManufacturing Transportation Use DisposalRecycling

Promote Global Warming Countermeasures Page 26 Ensure Product and Chemical Safety Page 32 Raise Compliance Awareness and Ensure Risk Management Page 36 Social Contribution Activities Page 3

Promote Resource Promote Resource Recycling Page 3 Recycling Page 3 Biodiversity Conservation Page 6 Biodiversity Judge’s Conservation Page 6 Enhance Value Chain Prize ntroduction Management from Develop and Utilize Products and Services which Biodiversity Action the Viewpoint Diverse Human Reflect Our Customers’ Resources Page Views Page Award Japan 2015 of ome of CSR Page 3 (Fuji Xerox) Woring Main CSR Activities Fujifilm Groups System (Fujifilm) ormulated The Fujifilm Group established its Charter for Corporate effort to enhance value chain management. We will keep Behavior, Code of Conduct, and Approach to CSR and recognizing social effect through our business activities and CSR promotes CSR through sincere and fair business activities. In our responsibilities, and aspire for establishing a sustainable order to expand and strengthen our activities, it is necessary value chain with mutual growth through understanding and Approx. Procurement to collaborate all processes, procurement, manufacturing, implementation of these activities not only within the Group transportation, use, and disposal throughout the value chain. but also by our business partners. Guidelines In March 2015, the Fujifilm Group revised the Procurement 800 Policy and presented the “Requests to Suppliers” in an participants for All-Fuji Xerox (Fujifilm) Management Improvement Training in FY2015 ▼Fujifilm Group CSR Procurement Promotion Program

.Communication for wareness and .ssessment of Suppliers Understanding of ur Policy and Reuests Primary ris evaluation selecting suppliers Understanding about Procurement Policy and sent a self-chec FUJIFILM Sustainable Value Plan 2016 Reuests to Suppliers Self assessment uestionnaire self-chec „Fujifilm Group„ Group Companies n-site assessment „usiness Partners „Suppliers ž Self-assessment by suppliers based upon ž Briefings/study sessions for persons responsible self-checklist Promotion Policy 3 for procurement within the Group ž Share results of assessment with suppliers ž Guidance by documents or briefings and Fujifilm Group for suppliers FUJIFILM Holdings Fujifilm/Fuji Xerox Enhance the CSR framework CSR Procurement department supporting the corporate .mprovement ctivities .Education to Suppliers oluntary improvement activities Reuest improvements to suppliers by each supplier activities across the value chain. Fujifilm Procurement Guidelines ssist each supplier in improving

he Fujifilm Groups pproach to CSR he Fujifilm Groups their capabilities capacity building ž Conducting of actual improvements, as well as linking to the next step Fujifilm Group Corporate Philosophy and ision Fujifilm Group Corporate Philosophy and ž Confirmation of sites by specialist team of Fujifilm Group ž Improvement activities through discussions with suppliers Fujifilm Group Procurement Policy and Reuests to Suppliers Policy Fujifilm Group Procurement Fujifilm Group Charter for Corporate ehavior and Code of Conduct

▼Requests to Suppliers

Respect for basic human rights, elimination of discrimination, prohibition of non-humanitarian treatment, workers’ rights, Respect for human rights prohibition of forced and child labor, restraint on extended work hours, wages, privacy, and occupational safety and health Active communications, information disclosure, fair trade, prohibition of abuse of superior status, prohibition of corruption, Open, fair and clear offer of unfair benefits, severance of ties with antisocial forces, compliance with export/import laws and regulations, Page 36 Page 40 Page 43 business activities quality & product safety, protection of confidential information, intellectual property rights protection and preservation of personal information environment Preservation and protection Promotion of green purchasing, prevention of global warming, waste control, prevention of environmental pollution and 1. Raise Compliance 2. Develop and Utilize 3. Enhance Value Chain of the environment preservation of natural resources Development of management Awareness and Ensure Diverse Human Resources Management from the systems and schemes Management system and internal/external communication Risk Management Viewpoint of CSR

34 FUJIFILM Holdings Corporation Sustainability Report 2016 Photo: Employee health and safety program of the Fujifilm Group Company in the U.S. FUJIFILM Holdings Corporation Sustainability Report 2016 35 FUJIFILM Sustainable Value Plan 2016 Promotion Policy 3 Enhance the CS framework supporting the corporate activities across the value chain.

Priority Issue 1 with overseas Group companies will be strengthened. In ▼Compliance and Risk Management Promotional Raise Compliance Awareness FY2016, Fuji Xerox will strengthen the function of the CSR Organization (Fujifilm and its affiliates) Council, integrating the Ethics and Compliance Committee otal Ris anagement ommittee ompliance ommittee and Ensure Risk Management into the Council, which is a higher level of the conference Roles Roles body. Through this change, the important measures related 1. Prevention of the actualization 1. Dissemination of the Fujifilm Targets (1) Maintain 100% awareness of major risks and full-scale and expansion of risks Group Charter for Corporate to corporate ethics and compliance that are deliberated 2. Undertaking preparatory Behavior and Code of Conduct performance of awareness-raising schemes on and decided by the Council will be implemented more measures 2. Follow-up to the dissemination of 3. Implementation of preventive the Code of Conduct (2) Ensure offering health promotion opportunities to promptly and steadily by the heads of the various functional activities 3. Response to violations to the R Division Code of Conduct employees organizations. ompliance and (3) Be aware of risk of human right issues across the airman airman Ris anagement airman President ● ice cairman President Division ● ice cairman Fujifilm Group Charter for Corporate Behavior ● Regular committee memers Executive officer responsible for CSR and Code of Conduct Executive officer responsible for CSR management management ● Regular committee memers Outline of Activities in FY2015 Executive officer responsible for Executive officer responsible for consolidated corporate management consolidated corporate management Executive officer responsible for Executive officer responsible for The Fujifilm Group interprets compliance as “more than simply not breaking the law and acting correctly general administration personnel ●Risk Management Executive officer responsible for legal Executive officer responsible for general Basic in the light of common sense and ethics.” We believe that we achieve compliance by responding flexibly affairs administration with a keen sensibility to the needs of society. A lack of awareness of compliance often leads to Related Data and Information Compliance and Risk Management Page 60 Executive officer responsible for PR Executive officer responsible for legal Approach affairs increased risk. Consequently, compliance and risk represent two sides of the same coin. A dedicated ecretariat General Manager of ecretariat Each operating company establishes and maintains its Compliance and department in each operating company of the Fujifilm Group manages risks in a comprehensive and General Manager of Compliance Risk Management General Manager of Compliance integrated manner, recognizing that promoting compliance and managing the risks associated with own appropriate risk management systems. Following and Risk Management Division Division and Risk Management Division business operations is a single continuum. We steadfastly advance compliance and risk-management prescribed procedures, the operating companies report their activities across the Group, with our two operating companies, Fujifilm and Fuji Xerox, overseeing their risk management activities, including preventive measures respective affiliates in Japan and overseas. and countermeasures against materialized risks to the CSR ▼Corporate Ethics and Compliance Promotion System The Fujifilm Group ensures compliance with laws and regulations, including those related to respect for Committee secretariat. With regard to significant risks in (Fuji Xerox and its affiliates) basic human rights, which is the most fundamental compliance item, as well as for occupational health, Group operations, the CSR Committee takes a group-wide oard of oard of Directors the basis for all business activities. perspective in examining appropriate countermeasures and orporate Auditors Internal Audit effecting their implementation. usiness eecution President Analsis Department Fujifilm Group Code of Conduct/Compliance Statement http://www.fujifilmholdings.com/en/about/philosophy/law/ In FY2015, Fujifilm conducted training for the risk managers in each Group organization to deal with the R ouncil measures related to prevention of corporate misconducts. tics and ompliance ommittee Regarding the risk management for the safety of employees Outline of Activities in FY2015 outside Japan, we enhanced the measures for employees General ffairs Department uman Resources Department egal ffairs Department The Fujifilm Group has never been investigated by adminis- visiting or living in developing countries on business. Also trative authorities concerning any anti-corruption matters. regarding information security, training against targeted rganiation of Fuji erox and its affiliates ●Compliance attacks and web-based training are conducted for Related Data and Information Compliance and Risk Management Page 60 improvement of employee awareness. Fuji Xerox selects rules in the Group companies in April 2012, training and priority issues, with attention given to changes in social and ▼System of Collect Information on Risk and Compliance Consulting (Fujifilm) As a set of fundamental policies, we have formulated the audit have been implemented on a regular basis. In FY2015, business conditions, the status of our business operations, Fujifilm Group Charter for Corporate Behavior and Code of on-site audit and training have been executed in priority the occurrence frequency, impact on management, etc. every Employees of Fujifilm Employees of Fujifilm affiliates Conduct. We have also established the Fujifilm Group Code regions for further reinforcement. Fuji Xerox has distributed year. In FY2015, priority risks, such as large-scale natural of Conduct to better guide each employee to act and behave case studies to the employees for further understanding of disasters, new types of influenza, information security, etc., Supervisor Supervisor in compliance with laws, regulations and social ethics and harassment, and a news letter based on accounting issues were selected for priority action and were deliberated by the make it clear that we give the first priority to compliance in at other companies. In addition, it has executed web-based CSR Council on the state of progress in action. General Manager of Supervising Division in Fujifilm Presidents of Fujifilm affiliates our business activities. We have established a division that training program (educational video) for all managers and put Secretariat of Total Risk Management Committee is exclusively responsible for promoting compliance and up a poster on compliance. Future Prospects (General Manager of Compliance and Risk Management Division) instilling a compliance based mindset throughout the Group Secretariat of Compliance Committee within each of our principal operating companies: FUJIFILM Future Prospects In addition to strengthening response to large-scale natural (General Manager of Compliance and Risk Management Division) Corporation and Fuji Xerox Co., Ltd. disasters and information security, Fujifilm will identify Internal consulting Fujifilm conducted in FY2015 a compliance awareness Fujifilm will promote further improvements in compliance priority risk issues through the PDCA cycle and formulate Compliance consulting facility facility survey covering employees of our entire domestic group, awareness, reinforcing detailed training and education, and implement specific action plans. Fuji Xerox will further Compliance and Risk External compliance Set up at each in order to confirm dissemination of compliance awareness focusing chiefly on issues identified in the awareness enhance response against the priority risks deliberated at the Management Division consulting facility* Fujifilm affiliate and identify issues. Since the introduction of anti-corruption surveys and training programs. Furthermore, cooperation CSR Council, including business continuity in a disaster and

activities to prepare against outbreak of contagious diseases. Employees of Fujifilm Employees of Fujifilm affiliates ▼Measures Implemented for Compliance and Risk Management *External compliance consulting facility is set up for employees in case Fujifilm “Compliance & Risk Management” where, for whatever the reason, they feel they cannot directly report to F99 to F2 F26 to F2 F29 to F23 F2 to F26 http://www.fujifilm.co.jp/corporate/aboutus/compliance/index. company or supervisor, even if they find risk-related information. Establishment of foundation Establishment of foundation Responses to individual Implementation of the html (in Japanese only) at each company for the entire Fujifilm Group priority issues Sustainable alue Plan 26 Fuji Xerox “Ethics and Compliance” ▼Risk Management System (Fuji Xerox) http://www.fujixerox.com/eng/company/compliance/ ● Formulation of a Code of Conduct for ● Foundation of FUJIFILM Holdings ● Introduction of anti-corruption rules ● Review and clarification of serious Secretariat orporate ecutive ommittee Employees CSR Committee ● Review of risk issues against large risks for the Fujifilm Group ● Launch of body (committee) in charge ● Revision of Group’s Corporate earthquakes and a possible eruption ● Strengthen measures to raise General Affairs of issue Philosophy and Charter for of Mt. Fuji awareness on rules and regulations Department ● Opening of helpline/consulting facility Corporate Behavior, and formulation ● Establishment of a system to ensure etc. CSR Department R ommittee of Vision and Code of Conduct and ● Start raising employees’ awareness, no relations with antisocial forces Human Resources education, and monitoring through raising awareness ● Introduction of information security Department awareness surveys and briefing ● Expansion of initiative to Group measures and guidelines etc. Corporate Strategy sessions companies outside Japan Department Risk Management Committee

36 FUJIFILM Holdings Corporation Sustainability Report 2016 FUJIFILM Holdings Corporation Sustainability Report 2016 37 FUJIFILM Sustainable Value Plan 2016 Promotion Policy 3 Enhance the CS framework supporting the corporate activities across the value chain.

that the same type Outline of Activities in FY2015 of accidents do not Outline of Activities in FY2015 our Group’s CSR policy and our CSR activities promoting at occur again in the our suppliers as one of the measures for human rights due ● Occupational Health and Safety/ other departments. ●Respect for Human Rights diligence (see page 59). Promotion of Health In FY2015, we In addition, referring to the Human Rights Guidance Tool launched efforts We believe that respect for basic human rights is a fundamental created by UNEP FI* (formulated in 2011, revised in 2014), Related Data and Information Sustainability Accounting Page 69 to horizontally and aspect of our compliance and we have clearly stated our we reviewed the “Human Rights Issues by Sector (Second Occupational Health and Safety Policy http://www.fujifilmhold- mutually share Held promotion seminars on endoscopic examination commitment to it in the “Fujifilm Group’s Charter for Corporate Edition)” formulated in FY2013 by the Consortium from the ings.com/en/sustainability/vision/health_safety.html lessons from work of colon for early detection and treatment three times. Behavior and Code of Conduct.” Group company employees perspective of the chemical and construction materials industry accidents, as well are required to sign their names on a declaration found at the to see whether there were any additions, deletions or revised as sharing data after discussing sharing of work accident end of the Code of Conduct. At the same time, to deepen their items. As a feature of FY2015, NGOs/NPOs and experts raised Reduced to information with global sites starting with the U.S. understanding of human rights, we have training programs the human rights issues of sexual minorities, a subject that 21% aimed at engendering respect for human rights and eliminating has raised significant concerns among the public in Japan, Fuji Xerox discrimination. and foreign workers, and we identified human rights issues The number of persons with metabolic syndrome in FY2015 In FY2015, Fuji Xerox conducted activities focused on the From the perspective of internal checks, Fujifilm has including the raised issues with other 11 industry sectors. five priority targets of ”measures for quitting smoking and included items on human rights issues in our annual self preventing lifestyle-related diseases,” “measures against assessment questionnaire for the business activities of all Future Prospects Fujifilm Group cancer,” “measures for mental health,” “countermeasures our Japanese and overseas affiliates since FY2013. In recent The Fujifilm Group believes it essential to ensure that against risk due to overwork,” and “prevention of work years, especially in Europe and North America, there has been Considering international movement around the subject of employees can work with vigor and in good health both accidents.” All companies, including domestic affiliated an increase in the demand for measures to ensure that human human rights in recent years, we aim to formulate a Human physically and mentally at their workplaces, in order to companies, have banned smoking during working hours. As rights are respected, not only by companies themselves, but by Rights Policy to clarify our Group’s stance besides our Group implement our vision of maintaining our position as a leading a result of our stop-smoking treatment subsidy program and their supply chains too. The Modern Slavery Act enacted in the Charter for Corporate Behavior and the Code of Conduct. company by Creating New Value. In the Group, however, we quit-smoking support seminars, the proportion of smokers UK in 2015 and the California Transparency in Supply Chains We will continue to strengthen measures both within and suffered further cases of decreased labor productivity and has fallen from 19.1% to 17.6%. In terms of measures against Act enacted in 2012 are the part of the demand. Considering outside the Group. an increase in medical costs. In response, we established a cancer, we have established a system to enable employees this movement, we are introducing measures across our entire To deepen our understanding of human rights due group-wide health promotion council composed of the Group at all companies to have endoscopic examinations for supply chain as part of our CSR procurement activities. diligence and further enhance our Group’s activities, in companies’ Human Resources divisions, industrial doctors stomach. We have added checks for gynecological cancer to To promote the measures of due diligence for human rights, addition to our own views, we will continue to actively adopt and the Fujifilm Group health insurance association in July our regular health checks, and as a result of employees being FUJIFILM Holdings has been participating in the Nippon CSR outside opinions and joint studies with other companies 2013. The council has since been proceeding with its efforts able to have at no personal cost, the number of employees Consortium managed by the Caux Round Table Japan since and continue with our activities to raise awareness of the to conduct activities focusing on four areas: prevention of having such checks doubled compared to the previous year 2012. We are studying human rights risks within the company importance of human rights issues within the Group. serious lifestyle-related diseases; quitting smoking; mental to over 60%. In Oct. 2015, we introduced the colorectal in response to deliberations at international conferences * UNEP FI: United Nations Environment Programme Finance Initiative. It is a illness and prevention of overwork. cancer endoscopic check subsidy system which is helping and public comments. FY2015 was the fourth year of our global partnership between UNEP and the financial sector, established in 1992. Over 200 institutions, including banks, insurance companies, and in- In FY2015, as a group-wide measure to prevent lifestyle- to contribute to the early detection and early treatment of participation. In FY2015, at the international conference, we vestment funds, work with UNEP to promote the environmental and sus- related diseases, we implemented a target to reduce the cancer. held discussions and exchanged opinions with experts on tainable practice in financial operations through researches and information number of persons with metabolic syndrome to 25%. We In terms of measures to support mental health, 93% exchanges. were able to achieve the target and reduce the number of of employees took our annual stress check in FY2015. In ▼Human Rights Issues Considered Important for the Chemical and Construction Materials Industries *Items added based on sug- persons with metabolic syndrome to 21% through life-style addition, in FY2015, the number of employees who had gestions by NPOs/NGOs habits and diet counseling. consultation regarding long working hours increased by UNEP FI Key Human Rights Issues Concrete Issues 54.8% compared to last fiscal year, and as well as the safety I: Core operation/Supply chain Fujifilm a Working hours ž BtoB companies may face possible occurrence of overtime work arising from receiving orders without and health committee conducting discussions on causes consideration of resources. In 2014, Fujifilm opened the Nishiazabu Medical Center in its and countermeasures at each factory, we are also reinforcing ž There are relatively many sources of risks as the industry that use hazardous substances (chemical headquarters building. We are trying to improve the detection predictive management based on individual data and seeking c Health and safety substances) and large scale facilities. 1: Workplace ž Possible risks of causing health hazards to employees and final consumers if suppliers do not provide rate and early treatment of cancer by establishing an envi- to reduce risk of the occurrence of damage to health due to condition complete information on chemical substances. ž Because practices of disciplinary measures differ largely according to countries and regions, there are ronment that enables employees to easily have endoscopic long working hours. possible risks of developing policies on disciplinary measures that do not match regions. examinations, which are more accurate than x-ray screening d Disciplinary measures ž Inadequate grievance mechanisms against disciplined persons ž Difficulty in understanding actual situations of disciplinary measures against suppliers, because practices and effective for the early identification of cancer in the stom- Future Prospects of disciplinary measures differ largely according to countries and regions. ach, esophagus, and colon. In FY2015, to encourage the f During work ž Cases of discrimination issues differ in areas and time (for instance, discrimination against sexual minorities 2: Discrimination has occurred in 2015). Elimination of discrimination during work globally remains unsolved. further use of this Center, we conducted activities to enlight- In FY2016, the Fujifilm Group managed to maintain the g Redundancy and dismissal ž Clear and convincing selection standards may not be presented during redundancy and dismissal. en about the colorectal examination through cancer control numbers of people with metabolic syndrome while at the n Deposits and papers ž There are high reputational risks during occurrence of forced labour, because the presence or absence of seminars, etc. For some employees, we have implemented same time enhancing our stop-smoking activities. At Fujifilm, migrant workers is not globally and comprehensively identified. 4: Forced labour o Forced overtime ž BtoB companies may possibly demand forced overtime, because they receive orders without consideration a program which subsidizes 70% of the cost of a colorectal we deploy the group-wide measures to share work accident of their resources (volunteer overtime work ends up being overtime work). examination in order to increase the rate of employees who information and lessons from accidents to Europe. From p Trafficking in human ž There are high reputational risks during occurrence of forced labour, because the presence or absence of take the colorectal cancer examination. As for the occupa- FY2016, Fuji Xerox will conduct activities focusing on the migrant workers is not globally and comprehensively identified. q Freedom of association and ž Possible risks of facing a production suspension due to occurrence of strikes and boycotts, if negotiation tional health and safety, we are working to raise awareness five priority targets as common areas with the rest of the Fuji 5: Freedom of collective bargaining between management and labour is not conducted correctly. association about safety through prevention of falling accidents which Xerox Group, and utilizing the health database introduced in r Conflict with local law ž Possible risks of facing a production suspension due to occurrence of strikes and boycotts, if negotiation between management and labour is not conducted correctly. have been increasing across Japan. We conducted activities FY2015, we will make efforts for promotion for occupational II: Community to raise safety awareness by having activities on near-misses, health & safety and promotion of health. 1: Resources a Use of natural resources (water, ž The industry may give a huge impact to local communities, as it uses a relatively large amount of resources etc., not just in factories but throughout the entire group land, etc.) and has a potential for causing pollution damage by discharge and leak of hazardous materials. including office-working divisions of sales companies etc., III:Society and Government c Bribery and corruption ž Due to an extension of the scope of application of legislation on bribery and increase in enormous using the Ministry of Health, Labour and Welfare’s “STOP 1: Relations with surcharge payment, there are potential impacts of giving to stakeholders such as employees and investors. governments Falling Accidents Project” as a reference. In addition, we e Governments with poor human ž Potential risks of being involved in violations of human rights due to operations in countries with poor rights records human rights activities. have been sharing information on minor work accidents and 2: Relationship Health and safety ž Potential risks of causing health hazards to consumers, because chemical materials are used. Also, risks disseminating information throughout the Group to ensure with consumers * are present if information on value chains is not properly shared.

38 FUJIFILM Holdings Corporation Sustainability Report 2016 FUJIFILM Holdings Corporation Sustainability Report 2016 39 FUJIFILM Sustainable Value Plan 2016 Promotion Policy 3 Enhance the CS framework supporting the corporate activities across the value chain.

Priority Issue 2 ▼Fujifilm’s Training to Develop Global Human Resources ▼Fuji Xerox’s Human Resources Development

Develop and Utilize Diverse For apanese emploees Training and Education of Human Resources Human resources empowered to rise to challenges of growth Human Resources For employees appointed Training prior to overseas appointment and change and able to think and act on their own to overseas positions Training to develop overseas managers Target 1 Long term Build a working environment with diversity* that Short-term onsite training system Personal growth Management and 2 leadership enable all workers* to exert their individuality Overseas onsite training Overseas trainee system *1: Create systems to develop human resources and utilize them to Real Change Overseas study system Employees Management the most suitable positions Leader For interested employees Language lessons, distance-learning languages *2: Domestic and foreign workers, and female, elderly, or disabled FUJIFILM WAY Training for employees across the world employees Personnel system Reinforcement of (Photo: FUJIFILM Holdings America Corporation) For technical position MOT technical management training that encourages rising corporate strength to challenges Short term

For emploees of overseas susidiaries

The Fujifilm Group aims at realizing its corporate slogan “Value from Innovation” by challenging with Development of FIFILM Global Leadership Seminar ▼Fuji Xerox Employee Training courage in the dramatic changes of business environment. Further, for the purpose of driving such gloal leadersip FIFILM Regional Leadership Seminar Basic Total number of hours 111,886 hours acceleration on the creation, development, and global expansion of prospective businesses listed in Dissemination of Approach corporate philosophy FIFILM WA Training the Medium-Term Management Plan, VISION 2016, it is important to develop the human resources Average number of hours per employee 12.5 hours and to create an environment where diverse human resources can maximize their abilities. For these purposes, we are giving a top priority to developing global and executive talent with high level of skills Total cost 400,276,910 yen creating a pool of specialists who can identify, select, foster in thinking and acting on their own in global society, and are actively reforming and expanding our Average cost per employee 44,824 yen businesses for the next generation. We are now implementing the systems to identify, develop, and and utilize these human resources from a global perspective, promote human resources based on an international viewpoint across the Group. through meetings between the persons responsible for HR management in North America, Europe, China and the Asia Pacific regions. In terms of development of global human resources, in addition to continuing to provide global training to the next Future Prospects generation of leaders, we have also enhanced our program HR, etc. These consist of various training programs where to develop management-level candidates from overseas Outline of Activities in FY2015 people systematically learn basic business skills and We are working to establish a basic infrastructure for affiliates through study in Japan at graduate schools or in various technical skills needed in the workplace from basic expanding our business in the global market based on an long-term OJT. We increased the number of such positions to application levels. We are aiming to improve their work organic relationship with our employees around the world. from one in FY2014 to four people in FY2015. We are ●Human Resources Development capabilities by firmly linking this OFF-JT to guidance in the also conducting internships in collaboration with famous Related Data and Information Personnel and Labor Pages 61, 62 workplace through OJT. overseas technical universities to aid in obtaining and utilizing Sustainability Accounting Page 69 We are also implementing measures to foster global Approx. non-Japanese human resources to strengthen the global human resources based on scheduled training to develop responsiveness of our domestic employees. In FY2015, we Fujifilm global skills and mindsets, and improving the capabilities of participants received four students from China, one from Australia, and Fujifilm places great importance on developing its human our employees to work globally. While we are introducing 800 four from India, totaling nine students in all. resources. More concretely, we aim to support each of planned practical training, including for Japanese employees in FY2015 All-Fuji Xerox To achieve transformation through accelerated human Management Improvement Training our employees in seeking to improve their capabilities by due to be appointed to positions overseas and overseas resources development and to allocate the most suitable developing highly marketable strengths and becoming onsite training to enable employees to gain practical human resources to the most suitable positions, we have professionals who demonstrate their own diverse talents, experience in local workplaces, we are also implementing Fuji Xerox integrated HR and training system of approx. 23,000 and to foster a work culture where managers also are training for employees of overseas subsidiaries (see figure). Fuji Xerox conducts training to develop human resources employees in Japan, including in domestic affiliates and closely involved in their staff development. To this end, as We have also begun construction of a system to find, foster empowered to rise to the challenges of growth and change, sales companies, and we have also been unifying our human well as conducting career training to develop the strengths and utilize excellent talent, with the aim of conducting and able to think and act on their own in order to create resources database and information system. of all our employees, from new graduates to management, global HR development that can deploy and utilize the most consistently high value that keeps pace with the changing and to enhance the individual roles of each of them, we are suitable talent for each position from all the human resources business and market environment. For this purpose, we Future Prospects developing systematic and planned leadership development. at all our companies, regardless of nationality or gender. We provide career support to enable employee to develop their For example, we are fostering the development of young are in the process of introducing specific measures toward competencies in a self-directed way by offering them diverse We are enhancing our use of human resources by considering employees who have less than three years of experiences, while evaluating and promoting employees the entire Fuji Xerox Group, both in Japan and overseas, as work experience by having senior employees ▼Fujifilm’s Human Resource Development who can think and act on their own. We also conduct the arena for their performance, and enhancing the mobility

run along with them after setting action and Earnest various programs, including HR training to develop global of our human resources through a unified HR and training development targets, which is to support them ndividual seeing commitment to peoples Strong leaders Professionals Diversity competence, training in problem solving, and management system and human resources information system. We will to grow development in demonstrating energy and enthusiasm in training to promote renewal of our organizational climate into continue to provide management improvement training, their work while maintaining a desire to learn one that thrives on challenge. while evaluating and rewarding human resources who at all times with humble heart. We are also In FY2015, the All-Fuji Xerox Management Improvement challenge themselves, as part of our transformation into an nancement of individuals nancement of organiations and functions enhancing the abilities of our management to Training, which was launched in full as a three-year plan that organizational culture that thrives on challenge. Enhancement of roles Enhancement of Enhancement of basic Enhancement of sills see through issues towards their resolution by ualification system professional mindset sills and expertise forms the keystone of the transformation of our organizational by improving teamwork and stimulating a Training for newly appointed Career life design training usiness and strategy Enhancement of managers climate that began last fiscal year, was provided to approx. managers New employee training, etc. Sales and marketing and directors fundamental transformation in direction. Training for professionals Intelligent power Use of ICT Enhancement of specialist 800 people. We plan to provide this training to a total of management training We are also conducting training to enable Selection-style training Management skills skills 1,500 people. We are also expanding our problem-solving Training for newly appointed Management school Various seminars on basic employees to gain skills and competencies, managers ational thinking KT method technology, science and training for overseas affiliates to enable their employees to Training for next generation Communication research Training for candidates for management and the basic skills needed by people promotion, uality control develop their capabilities to solve problems on their own. Enhancement of global working for organizations and functions such etc. mindset, etc. Safety, environment anger prediction as R&D, production, sales and marketing,

40 FUJIFILM Holdings Corporation Sustainability Report 2016 FUJIFILM Holdings Corporation Sustainability Report 2016 41 FUJIFILM Sustainable Value Plan 2016 Promotion Policy 3 Enhance the CS framework supporting the corporate activities across the value chain.

Priority Issue 3 Outline of Activities in FY2015 Enhance Value Chain Introduction of Realization of Diverse Ways of Working Program for Management from the ● Accompanying Related Data and Information Personnel and Labor Pages 61, 62 a Spouse’s Transfer Viewpoint of CSR Sustainability Accounting Page 69 (Fuji Xerox) Targets (1) Identify the CSR status of major Fujifilm suppliers and notify FH’s expectation and Fujifilm has been implementing Work Style Innovation improvement requirements activities since FY2014, aiming to become a company where of women leaving their jobs due to marriage or relocation (2) Ensure compliance with legislation diverse employees can utilize their individual strengths to of their spouses by granting them work opportunities (see concerning biodiversity in procurement Briefings for the business partners at FUJIFILM. demonstrate their capabilities in an effective way of working page 47). A next-generation women leaders program has that produces results. These activities consist of the three also been created to stimulate interest and motivation in principles of (1) Working style innovation (Each one of us tries promotion among female employees. Alongside this, the to develop ways to increase productivity and results per hour); use of the work-at-home system is also spreading among The Fujifilm Group is implementing the Fujifilm Group Procurement Policy to ensure procurement from (2) Skill exertion of diverse employees (Utilize your strength employees engaged in childcare or home nursing care Basic the viewpoint of CSR based on a recognition of the importance of CSR and corporate ethics. The Group aims to achieve growth along with its suppliers through business activities, and to this end deals in work regardless of gender or age); (3) Enhancement of (increased by 1.3 times over the previous year). These Approach with suppliers in a fair and appropriate manner, while helping them deepen their understanding of the support systems (Company supports flexible ways of working measures have increased the ratio of women executives and importance of promoting CSR activities across the supply chain. We are thus enhancing partnerships for child rearing or nursing care). managers and are being implemented to achieve the goal of with our suppliers’ understanding to fulfill our CSR. In FY2015, for the purpose of IT utilization in business 14% by 2020. Fujifilm Group Procurement Policy http://www.fujifilmholdings.com/en/sustainability/vision/procure.html to promote working style innovation, we conducted activities For older employees, the Second Life Program was to enlighten employees about more efficient and innovative introduced in FY2006 to make use of the abilities of employees working styles by hosting seminars by specialists divided after retirement, as well as to support their livelihood in by purpose and level and presentations on exceptional retirement. The survey conducted on the situations of rehired examples from all across the Group. retirees in FY2015 to support the strategic utilization of older Meanwhile, in terms of enhancement of support employees showed that rehiring has led to effective use of Outline of Activities in FY2015 Formulation of systems, in August, we introduced in full a Home Working their expertise and experience and has had a beneficial impact CSR Procurement System which had been introduced previously as a trial on the work environment. We intend to apply the findings ●Enhancement of CSR Procurement Activities Guidelines measure, with the aim of enhancing support for employees to future policy measures. To promote wider participation 2 (Fujifilm) with responsibilities such as childcare and caring for other of employees with disabilities, workshops to foster greater Promoting Comprehensive CSR Activities with family members, to support their motivation and enable understanding of people with hearing disabilities have been Major Suppliers them to demonstrate their abilities. This system enables held. Similar workshops for mutual understanding are being Fujifilm employees who fulfill the conditions to work a certain number scheduled in the future. Fujifilm Group Customer expectations on activities for human rights and of days per week from home. In October, we introduced the In response to social expectations for reinforced CSR activities the environment to be improved right across the value chain Paid Leave by the Hour system, to enable employees to use Future Prospects across the entire value chain, the Fujifilm Group has been are increasing day by day. To respond to these expectations, the paid leave which each employee is allocated in one-hour examining the actual status of CSR in the major suppliers at Fujifilm’s affiliated companies (97 companies within and units for not only childcare or caring for other family members Management e-learning programs on diversity will also each of our operating companies, as well as making efforts outside Japan) are using a group-wide checklist*1 to check but also for visiting hospitals for themselves or completing be organized to promote greater understanding of the to improve things by constructing a cooperative system the risks on their own company’s business activities, including official procedure. Moreover, after investigating the situation differences between employees as individuals and greater based on mutual trust with our partners. CSR, once per year. If there are items that do not meet the of employees who need to care for family members, we utilization of their respective strengths. Company-wide launched support measures to assist employees in balancing promotional measures, etc., will also be conducted to create their work and caring for family members. Care and Work a workplace culture where a diverse workforce can thrive. ▼Progress in Procurement from the Viewpoint of CSR Balance Support Seminar was held as one of these measures and was attended by over 1,000 employees (see page 47). FY2007-FY2008 FY2009-FY2010 FY2011-FY2012 FY2013-FY2014 FY2015 FY2009 l Establishment of a practical ▼Ratio of Women in Executive and Managerial Positions l Establishment and system based upon new announcement of Fujifilm Follow-up and monitoring in Procurement Policy (Fuji Xerox and affiliated companies) FUJIFILM Future Prospects Group Procurement Policy line with the progress of the l Revision of the Fujifilm Group l Expansion of applicable Holdings implementation process (%) Overseas affiliated l Review of details of the business partners (overseas, survey on the greenness of transport, indirect materials, We are enhancing support systems to enable diverse 30 28.1 companies 26.4 26.9 companies etc.) employees to demonstrate their capabilities in innovative 24.8 Only Fuji Xerox 25 l Awareness-raising about the working styles, by proceeding with activities according to our Domestic affiliated Fujifilm Group Procurement l Buyer training on new companies Policy l Survey based on new web Procurement Policy 20 three principles. l Implementation of first pilot system and review of survey l Formulation of Guidelines l Survey on the situation survey details for business partners and 15 * Re-calculated after Fujifilm of each procurement l Implementation of second l Expansion of survey targets communication (distribution, excluding the number of department, and launch of l Collection of replies to the pilot survey taskforce by relevant staff survey, and tabulation, l Establishment of internal briefing sessions) 10 managerial retirement for only Fuji Xerox evaluation, and feedback guidelines to deal with the l Implementation of CSR Fuji Xerox 5.8 6.2 of the results, and issue of conflict minerals self-checks for main primary 5.1 * Changed job rank 5 4.2 improvements/ corrections suppliers in Japan and China. Fuji Xerox aims to be a company where all can deliver their classification partially for (using PDCA) full potential—regardless of gender, nationality, disability, or 2.7 2.8 2.8 3.4 manager level in FY2013 0 for overseas affiliated l Launch of procurement l Expansion and enhancement age—by building an organizational culture that draws to 2012 2013 2014 2015(FY) companies activities from the viewpoint of of procurement measures CSR targeting major suppliers l Launch of CSR seminars for from the viewpoint of CSR the full on a diversity of expertise, effective use of a diverse in Japan, China, and South senior executives of suppliers l Establishment of Paper outside Japan (in China and l Conducted seminars on Korea, starting with the transportation companies environment/health and Establishment of PDCA Procurement Regulation workforce, and a work style designed for high productivity procurement of materials l Standards overseas) safety/labor management for Fuji Xerox l Start of visiting suppliers cycle in the field of material suppliers (South China Region) (shorter working hours and flexible working styles) that will procurement at domestic and l Start of visiting by those l Launch of procurement from by a specialist team for overseas suppliers and for responsible for procurement to the viewpoint of CSR in l Held CSR Sessions by key form the basis of our employees’ health. In women’s career procurement from the Vietnam persons from production, viewpoint of CSR, and working with transportation all supplier sites in China procurement, and head office. advancement, the Program for Accompanying a Spouse’s expansion of survey targets companies in Japan l Launch of measures to include transportation concerning the issue of Transfer was created in FY2015 to reduce to zero the number companies conflict minerals

42 FUJIFILM Holdings Corporation Sustainability Report 2016 FUJIFILM Holdings Corporation Sustainability Report 2016 43 FUJIFILM Sustainable Value Plan 2016 Promotion Policy 3 Enhance the CS framework supporting the corporate activities across the value chain.

standards, they actively establish the plans for improvements Third-Party Opinion on “Enhance Value Chain or carry out their own risk assessment. In FY2015, the OPINION Start examination Management from the Viewpoint of CSR” number of questions in the checklist was narrowed down production to improve business efficiency, but we also included more Zero in response to line stop in 2015 questions on human rights and environmental conservation. conflict minerals Mr. Minoru Matsuzaki caused by supplier CSR risks Member, Caux Round Table Japan Meanwhile, we provided training to the persons 2010 • (Fuji Xerox of Shenzhen Ltd.) •Researcher, Social Design Lab., responsible for procurement (buyers) at Fujifilm and the Rikkyo University group companies within Japan and China on the importance Profile Served as CSR advisor at a business corporation before of keeping a CSR perspective in procurement, based on Fuji Xerox Response to Conflict Minerals becoming a researcher. During his corporate career, he had been involved in the management of the MDGs our Procurement Policy that was revised in March 2015. We Labor strikes and other problems are occurring with higher The Fujifilm Group has declared that it will not use any minerals committee of the Global Compact Network Japan (GC- NJ) and corporate-side manager for the NGO-Business produced CSR Procurement Guidelines to encourage them frequency at factories in southern China, where Fuji Xerox mined or refined by illegal practices, and does not take part, Network meetings hosted by the Japan NGO Center for International Cooperation (JANIC). In 2012, the Nippon to promote CSR activities, and clarified the self-check items has its major production sites. To assess the state of directly or indirectly, in supporting such activities. Further, CSR Consortium was set up as the venue for businesses, NGOs and NPOs to converge and deliberate on various for suppliers. These Guidelines were sent out to all ongoing operation at suppliers and to make improvements, Fuji Xerox it has clearly declared in the basic policy for procurement social issues, and he acts as the secretariat for its suppliers of chemicals and major parts and equipment for has engaged in ethical procurement, placing priority on the transactions that we are sincerely addressing the issue of management. our products, OEM manufacturers, and business partners of southern China region. In FY2015, Fuji Xerox of Shenzhen conflict minerals. Group companies in China, and we held briefing sessions for accomplished “zero production line stops caused by CSR Since 2010, Fujifilm has been providing an internal Expectations for future activities based these suppliers and business partners, seeking to increase risks at suppliers.” education program concerning conflict minerals. It on the Guiding Principles on Business their understanding. Meanwhile, similar disputes related to the environment, also participates in the working group on Responsible and Human Rights In order to monitor CSR efforts by our business partners, human rights and labor broke out with greater frequency in Procurement of Minerals formed by JEITA*1 in 2011, and Globalization of economic activities holds the potential to we extracted the major items common to the global supply eastern China and in Southeast Asia as well. For this reason, created internal guidelines to gather information concerning create negative aspects in the value chain. Society calls for chain CSR initiative such as the UN Global Compact and ethical procurement has grown in importance in these any conflict minerals in our supply chain using the CFSI*2 companies to manage the full spectrum of their business EICC*2, and also included expert opinions from both within regions. Customers are also seeking greater improvement in Conflict Minerals Reporting Template. We are working activities. In the G7 Summit held in Schloss Elmau in and outside the Group. We established a Fujifilm Supplier CSR action at Fuji Xerox production sites. to gather such information and improve its accuracy in Germany, a policy of “promoting responsible global supply CSR Checklist that includes 58 selected questions. From For this reason, it was decided that the knowhow cooperation with our suppliers. chains” was advocated, and “the UN Guiding Principles on FY2015 to FY2016, this checklist was deployed in one after accumulated in CSR at our own production sites and ethical In FY2015, we held briefing sessions for our suppliers to Business and Human Rights” was strongly supported. another, to ensure that it was used by the business partners procurement at Fuji Xerox of Shenzhen will be applied in raise awareness of the need to make efforts to avoid conflict I can see that the Fujifilm Group recognizes that responsible for over 80% of the total procurement amount eastern China and Vietnam. To kick off the measure, person in minerals and ask for improvements in the accuracy of the enhancing value chain management from the viewpoint for each business division in the Fujifilm, and the Group charge of CSR promotion from headquarters and production procurement information provided to us. of CSR is a priority issue and is putting a PDCA cycle companies within Japan and China. and procurement assembled at the Shenzhen office for In spite that Fuji Xerox is not registered with the U.S. appropriately into practice, reflecting the distinctive These efforts were implemented by the persons a CSR session. At the session, participants engaged in Securities and Exchange Commission (SEC), it participates in characteristics of each business operation throughout the responsible for CSR, including a staff member who has hands-on learning on how to identify and confirm problems, the working group on Responsible Procurement of Minerals Group. And these activities are making steady progress passed auditor training under ISO SA8000 relating to human using the production lines at Fuji Xerox of Shenzhen as a organized by JEITA in 2013, and conduct surveys on the each year. In FY2015, it is particularly noteworthy that the rights and labor, to incorporate the expectations of the global workshop. Additionally, the participants confirmed that they origins of the minerals used for its products, in order to clarify Group has introduced checklists at suppliers and briefing society and requests from our customers. would strengthen coordination between related persons at the absence of any involvement of armed groups in its supply sessions for business partners and suppliers and has made the production sites. chain, as well as cooperating with the survey conducted by solid progress in achieving zero production line stops in Future Prospects customer companies which are registered with SEC. areas where labor risks are high. Future Prospects In FY2015 survey, the response rate to the questionnaire Its corporate policy of strengthening its partnerships In FY2016, in addition to implementing the Fujifilm Supplier to our primary partners increased from the previous year to with suppliers and overcoming issues through collaboration CSR Checklist, we will expand our CSR procurement CSR management at the production sites and ethical 97.3% and no involvement of any armed group was identified. is vital in solidifying sustainable business management. activities to Europe and the U.S. We also plan to implement procurement will be strengthened in both eastern China I look forward to the review of the UN Guiding Principles onsite inspections of Group production sites and business and Vietnam. CSR management will be restructured for Future Prospects on Business and Human Rights within the framework of partners’ factories, etc., to lead to further and more effective production sites at Fuji Xerox Hai Phong (Vietnam) and Fuji Fujifilm's rules and code of conduct, in order to achieve improvements. Xerox of Shanghai. Activities will be promoted to create a In FY2016 Fujifilm is continuing to gather wider and more further advances in and consolidation of these activities. *1 Group-wide checklist: A checklist of approx. 100 questions on general scheme under which suppliers in the two regions will be accurate information through regular briefings with suppliers business management, adherence to laws and regulations, HR and labor visited by expert staffers in the areas of the environment, and by providing support to individual companies. Response to the third-party opinion management, health & safety, information security, purchasing, transport, personnel administration, etc., to assess supplier conditions Fuji Xerox will aim to maintain the response rate and accounting, R&D, manufacturing, sales, human rights and labor (child/ We sincerely appreciate your high evaluation of one forced labor, freedom of association, prohibition of discrimination, etc.), and give support for improvement. accuracy of the survey in FY2016. occupational health and safety, environmental preservation, and others of our priority issues, which is to enhance value chain *1 Japan Electronics and Information Technology Industries Association (whistle-blowing system, etc.) management from the viewpoint of CSR. We now operate (JEITA): This industry organization aims to foster the sound production, *2 EICC: Electronic Industry Citizenship Coalition and its code of conduct trade, and consumption of electronic devices and components, thereby our business across a broad range of industries. And we contributing to economic development and cultural promotion in Japan. are working together with our suppliers to enhance our *2 CFSI (Conflict-Free Sourcing Initiative): This international private sector or- CSR activities across the entire value chain in all industries ganization supports companies in addressing the issue of conflict materials. in order to meet the expectations of each industry and its The template for conflict materials reporting provided by CFSI is an investi- customers, including the electronics industry where the gation and information management tool for procurement of raw materials. demand for CSR procurement has been growing in recent years. In face of the rising expectations to address human rights issues in the supply chain that has been pointed out, we intend to take action on human rights and other social issues in cooperation with our suppliers, focusing particularly on raising awareness of the importance of CSR procurement within the Group, as well as dissemination and consolidation of these activities. (CSR Group, Corporate Planning Division, FUJIFILM Holdings)

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Outline of Activities in FY2015 Main activities for biodiversity conservation Priority Reinforcing Risk Management for Safety of Employees l Activities to conserve the water source at each Issue ●Biodiversity Conservation factory 1 Overseas l Training courses for Nature Conservation Educators Manual created for overseas safety risk management and responses Related Data and Information Environmental Aspects Page 65 by the Nature Conservation Society As the Fujifilm Group’s business operates on a worldwide basis, many In 2015, the HR Department and the CP&RM Department developed Guidelines for Biodiversity http://www.fujifilmholdings.com/en/ Since FY 2001, more than 400 employees in total have sustainability/vision/creature.html attended at the training courses including co-sponsored of our employees visit overseas offices or live in foreign countries on our Overseas Risk Management Policy. Also, the risk management- ones by Fuji Xerox. business. Therefore, it is increasingly important to ensure the safety related information included in the Business Trip and Overseas l Support to the Monitoring Site 1000 of such employees from a variety of risks, including diseases, natural Assignment Manual has been compiled into a separate booklet, disasters, political instability, and terrorist attacks. the Overseas Safety Management Action Manual, which has been We have been providing sensor cameras used in surveying Judge’s mammals. As a part of such overseas risk management, the Fujifilm distributed to all employees being assigned overseas and their family Group is well-prepared for handling unexpected incidents by members, and also to business travelers. The booklet explains the l Suiden-Otasuke-Tai Prize having a clear chain of command and line of contact for both importance of adopting a “self-defense” attitude and encourages Regional collaboration activities to preserve groundwater in Biodiversity Action Award Japan 2015 (Fuji Xerox) normal and emergency situations throughout the HR Department, employees to make their own decisions to protect themselves from Minami-Aso village. FUJIFILM Kyusyu has been participating in these activities since FY2010. the Compliance and Risk Management (CP&RM) Department, and risks. The manual also explains concrete responses they should with local companies. When particular risks are anticipated based follow against different types of risks. l Cooperation with NPOs, etc. Since its foundation, the Fujifilm Group has engaged in on news media and information arriving from the Ministry of Foreign The Fujifilm Group continues to promote risk management Approved Specified Nonprofit Corporation Network for a wide range of environmental protection activities for • Affairs and embassies, we promptly submit appropriate alert notices among employees through enhancing safety manuals and Coexistence with Nature, etc.: “Kikigaki-Koshien” the conservation and protection of biodiversity, based to our employees. conducting drills. • Charitable Trust Fujifilm Green Fund, etc.: “Watashi-no- upon philosophy of “environmental consciousness and Shizenkansatsuro Competition” environmental protection are at the core of our corporate • Green Cross Japan: Kankyo Nikki, “Midori-no-Komichi,” activities,” as we have needed lots of water and clean air to etc. produce photographic films. l Support to the Biodiversity Action Award Japan Priority In June 2009, we clarified our guideline for cross-group Issue Supporting Diverse Ways of Working We have been providing digital camera for the prize winners efforts to biodiversity conservation and introduced the “Fujifilm as “Fujifilm Award” through the Japan Committee for UNDB 2 Holding the “Care and Work Balance Support Seminar” by a Specialist Group Basic Concepts and Action Guidelines for Biodiversity (United Nations Decade on Biodiversity) that host the Award. Conservation” (hereafter, “Guidelines for Biodiversity”). In Since 2007, Japan Based on these findings, we invited a specialist to hold a Care and 2012, we reviewed our biodiversity approach under the has become the Work Balance Support Seminar in every Fujifilm business site in four key elements of factories, products, social contribution, Responsible Paper Procurement annually again this year to super-aging society in order to promote understanding of our support systems—beyond and communication, in order to implement biodiversity reconfirm the system for providing paper that customers can which the ratio of the the industry’s usual welfare standards—and the specific methods conservation activities linked with our businesses. Fujifilm use with peace of mind. In recognition of these efforts as a population aged 65 to utilize them in appropriate situations. A total of more than 1,000 and Fuji Xerox work on a number of biodiversity conservation good example of procuring sustainable paper for biodiversity More than 1,000 employees in total attended and and above exceeds employees attended the series of seminars and deepened their activities related to their businesses respectively. conservation, we were awarded the Judge’s Prize in gave very positive feedback 21%. We recognize understanding of the actual problems that they may encounter in Fujifilm continues its evaluation based on the Rule for Biodiversity Action Awards Japan 2015.* that it is an important issue for a corporation to support its employees’ providing nursing care, such as care costs and how to choose a care Design for Environment (DfE) from the viewpoint of biodiversity working styles to create time for nursing care. Fujifilm submitted a manager, and the way to balance their work using the company’s conservation, and promotes development of environmentally Future Prospects “Questionnaire on Nursing Care” to employees and results from the support systems. conscious products. In FY2015, we participated in the survey revealed that many employees will potentially need to care Fujifilm continues to enhance such support systems and raise Taskforce Committee for the Nagoya Protocol on Access We will continue our design for environment and various for their family members in the near future and this possibility make awareness among employees so that no more employees choose to and Benefit Sharing for Genetic Resources (ABS) led by the regional activities. In addition, we will construct a reliable them concern balancing their care and work. leave their jobs due to their nursing care. Ministry of Economy, Trade and Industry in Japan, as we had measures for domestic procedures for the Nagoya Protocol in FY2014, to obtain the latest information on the progress in Japan and strengthen the management of paper with Japan’s measures on working and trends in overseas procurement to our suppliers. legislation. At Fuji Xerox, where paper is an essential Priority * Biodiversity Action Award Japan 2015: Hosted by Japan committee for Issue Career Advancement for Women commodity, we refer to guidelines for biodiversity when the UN Decade on Biodiversity. Awarded for efforts contributing to the Five Actions of the MY Action Proclamation, it aims for active publicity on biodi- 2 A Program to Enable Accompanying a Spouse’s Transfer to Expand Opportunities for Continuing One’s Career procuring paper. We also held the Committee for Socially versity and to make it the mainstream. Started in 2013.

Enhancing the human resource (HR) program and training to reinforce a to work in any Fuji Xerox office—including those overseas—to continue ▼History of Biodiversity Conservation Measures FF: Fujifilm FX: Fuji Xerox corporation’s competitiveness continues to be an urgent matter. In order their career in the case that their spouses are transferred to another to develop human resources who can lead company transformation, location. Fuji Xerox already has a program for employees to return to their 2 to 2 29 to 2 22 to 23 2 to 2 and to appoint the right staff to the right positions, it is necessary to work within a certain period after leaving a job due to reasons such as visualize existing human resources and enable flexible appointments by accompanying a spouse’s transfer; however, a career break, even if it Confirming level of own Formulation of the Fujifilm Formulation of targets for Reinforce measures standardizing assessment systems, training programs, labor rules, and is temporary, could reduce the motivation to work. When a Fuji Xerox and others awareness Groups policy on the next level based on the long-term and sharing perspectives biodiversity conservation and target HR databases throughout the group companies. In April 2016, Fuji Xerox employee applies for this new program to continue his/her work in the on the issue launch of concrete measures integrated the HR/training programs and HR information systems for location to which his/her spouse transferred, the company assesses 23,000 employees in affiliates and sales companies in Japan. Through this if there is a position that can accept the applicant in the area. If no l Conducting a questionnaire l Formulation and enactment of l Reviewed and systematized l Constructing measures to the within the Group the Fujifilm Group’s policy on entire activities linked with our Nagoya Protocol(FF) integration, Fuji Xerox intends to increase the flexibility of human resource appropriate position is found, Fuji Xerox will extend its search for possible l Holding study groups and biodiversity conservation businesses. (See page 65) *Participated in Taskforce utilization beyond the borders of individual companies aiming to enhance positions within Fuji Xerox’s affiliates. Further, the applicant can take a dialogue with stakeholders, l Incorporation of “Biodiversity l Expandead procurement Committee led by the Ministry of the opportunities and places for employees to exert their talents, and in leave in the event that no alternate position is found either within Fuji Xerox etc. Conservation” into the Fujifilm criteria for its paper supplier in Economy, Trade, and Industry in Japan turn creating a more empowering corporate culture. Such HR database or its affiliates. Group’s Design for an aim to conserve Environment for all products biodiversity (FX) l Implementation of paper integration would also standardize HR processes and reduce HR costs. Fuji Xerox continues to promote a corporate culture and systems that (FF) procurement by the At the same time, Fuji Xerox introduced the Program for motivate and empower individual employees to achieve their potential. Committee for Socially l Survey on land use for Responsible Paper Accompanying a Spouse’s Transfer as part of its initiative to advance * Job Leave program: Limited to Fuji Xerox and a number of domestic affiliated biodiversity conservation (FX) Procurement (FX) employees’ careers. The program provides an opportunity for employees companies.

46 FUJIFILM Holdings Corporation Sustainability Report 2016 FUJIFILM Holdings Corporation Sustainability Report 2016 47 FUJIFILM Sustainable Value Plan 2016 Promotion Policy 3 Enhance the CS framework supporting the corporate activities across the value chain.

Priority Promoting Health Activities Priority Business Continuity Plan in Issue Issue 1 among Employees 1 Emergency Situations Fitness programs reduce work accident compensation fees The plan helped early recovery of FUJIFILM Kyushu after the Kumamoto Earthquake

Musculoskeletal As a part of the countermeasures for this issue, FUJIFILM Holdings The major earthquake occurring in the Tokyo and Kanagawa area, such as an earthquake disorders (MSDs) America Corporation (HLUS) and FUJIFILM Manufacturing U.S.A., that hit Kumamoto in the Tokyo metropolitan area, etc. FFQ is also equipped with an are common Inc. (FA) have introduced health and safety programs called Prefecture, Kyushu, off-grid power generation system and an anti-seismic emergency workplace-related “FUJIFILM Fit” and “FUJIFILM ErgoFit.” The programs consist of on April 16, 2016, warehouse that stores emergency supplies. These preparations injuries, in which various activities to reduce MSDs, including an exercise promotion caused significant helped the prompt startup of the emergency management people experience campaign that encourages participation in group exercises, damage to the headquarters and quick decision-making. As for the support for production line at FUJIFILM Kyushu (FFQ), located in Kikuyo-cho. the local community, we delivered drinking water and food on the Many staff members participated in FUJIFILM Fit chronic musculo- stretching, and other brief during-work exercises, as well as an skeletal pain in the improvement plan for the work environment and work-related FUJITAC, Fujifilm’s polarizer protective film used in LCDs, boasts a day following the earthquake. Further, waterproof sheeting stored back, lower back, and arms, regardless of their industry or type processes. These programs successfully eliminated injuries caused 70% share of the world market, and more than 40% of this film at Fujifilm production sites in preparation for emergency facility of work, presenting issues for occupational health and safety in by MSDs in FY2015, producing a significant result of zero workplace is produced in FFQ. A breakdown at FFQ could have serious protection against ash falls in the event of an eruption of Mount the U.S. and Europe. In Fujifilm Group companies in the U.S., in- accident costs. The programs also encouraged employees to consequences for the world’s LCD production, and therefore an Fuji, was useful for supporting the community. In response to a juries derived from MSDs increase as the production line workers continue their healthy habits in their private lives. immediate assessment of plant damage and the possibilities for request from the Kumamoto Prefecture government, we offered our became older. Also, the recovery period of those suffering inju- These programs are now in place in other group companies, business continuity were needed following the earthquake. sheeting to Mashiki and Kosa in Kami-Mashiki County, and Ozu in Fujifilm had already reinforced its disaster countermeasures ries becomes longer, resulting in direct and indirect costs for the and we plan to further expand and permeate good health practices Kikuchi County, and other supplies to Kikuyo, thereby contributing to after the Great East Japan Earthquake in 2011. All of our group recovery activities by the local authorities. companies. across even more workplaces. companies collaborated in organizing a disaster recovery system Production of FUJITAC requires an extremely clean environment and have continued to improve it, while conducting regular and high precision operations that does not permit errors to the scale emergency drills. Our BCP specifies the formation of an Emergency of a submicron (1/10,000 millimeter). These production lines are Management Team (EMT) in the event of a major disaster. The EMT actually large-scale pieces of high-precision equipment and it usually comprises various departments, which gather general disaster takes two months to restart operations. However, the speedy initial Priority Issue Integrated Management of Procurement Information information and specific information on damage within the Fujifilm response and earnest support from the entire group enabled FFQ to Group, in order to take appropriate responsive actions. In the case of restart a part of their production within two weeks, and to resume Supporting prompt management decision-making by linking to the procurement BCP system 3 the Kumamoto Earthquake, the EMT was formed within four minutes full operations by the end of April, resulting in the achievement of of the occurrence of the preliminary earthquake on April 14. The complete recovery on May 22, earlier than our original plan. The Fuji Xerox launched operation of a new system that enables unified The procurement BCP system was built by linking various databases team immediately started checking the safety of FFQ employees promptness of this recovery was also highly praised by many of our management of procurement-related information on a global scale. that support the creation and execution of BCPs, commencing and gathering damage information utilizing the systems for initial customers. It consists of enhanced Electronic Data Interchange (EDI)* functions operations in 2012. This system has significantly reduced the response or the safety checks of employees. The first disaster report As the corporation’s business activities are increasingly for e-commerce with major suppliers and its Procurement Business time spent on managing risk issues. Connecting the EDI and the to management was made within 30 minutes. connected to global supply chains and, in turn, the world economy, Continuity Plan (BCP) system. The number of document types procurement BCP systems enables integrated management of all the Following the preliminary earthquake on April 14, FFQ stopped the range of the influence caused by disasters and the risks is handled in the system has been increased in the enhanced EDI procurement information held in different production sites in a timely all production lines and started a line check in order to restart them getting wider, and making BCP measures ever more important. system. The new system also supports a progress management manner. Further, linking the EDI system with the databases under by the 16th. However, the major earthquake then occurred in the Taking account of our experience of the Kumamoto Earthquake, the function that handles various inquiries and responses between Fuji the BCP system would improve procurement work efficiency and early hours of the morning of the 16th, severely damaging the Fujifilm Group is further enhancing its BCP measures to remain a Xerox and its suppliers. Such inquiries and responses can be viewed enhance responsiveness in the event of an emergency or disaster. production lines. To recover the lines as soon as possible, a request corporation with a strong resilience against disasters and shouldering was submitted to a specialist company to assess the factory’s by procurement managers and related staff members in Fuji Xerox, * EDI (Electronic Data Interchange): Exchanging order forms, invoices, and its full responsibilities as a global supplier. under appropriate access controls. This enables full organizational other trading information in electronic format between the computers of structural soundness by 6 o’clock management of procurement information, improving administrative companies and related organizations over a network. in the morning, and their diagnoses integration and efficiency not only in Fuji Xerox procurement were completed by that evening. departments but also for its suppliers. Production line experts from other Fujifilm Group’s factories arrived in Kyushu on that same day and started further line inspections and recovery work from the following day. From Priority Issue Better Product Quality together with Business Partners the 16th, (then) President Nakajima led the emergency management Supporting improvements in the production environment 3 headquarters, and the President, relevant executives, managers, EMT The FFQ’s emergency management headquarter Emergency goods stocked or newly purchased to be Before the program After the program members, and FFQ staff members took control using the emergency warehouse while supplied to FFQ in the Group started arriving from the 16th. To continue to be able to offer products with high reliability, close the factory building had yet to be declared safe. collaboration with business partners is indispensable. As a part of held a video conference each morning to share information and discuss value chain management, FUJIFILM Imaging Systems (Suzhou) response measures. Co., Ltd. and FUJIFILM (China) Investment Co., Ltd. have together The Fujifilm Group stores started a work process improvement activity to assist their business emergency supplies in Osaka, partners in China to realize a stable supply of high quality medical Toyama, Minami-Ashigara, and equipment. We continuously access to partners’ production line to Omiya, and the first goods had been revise the production processes, create procedural manuals, and dispatched from Osaka on April 15, offer advice. This close collaboration with business partners helps to arriving at FFQ on the following day. create an environment that ensures the supply of safe products with FFQ had already prepared itself with stable quality, enabling us to construct value chains that can win our information equipment that could customers’ trust. be used as a support for the Tokyo The number of failures has significantly decreased through revision of Headquarters’ EMT. This was intended Some 200 workers, including builders and Fujifilm (Then) President Nakajima visited Kumamoto on April 28 work processes, etc. employees, were dispatched to FFQ. Securing their to encourage employees working on the recovery. as a countermeasure to a disaster transportation and hotels was another major task.

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