FUJIFILM Holdings

CSR activity report│Environment

Address Climate Change (Priority Issue 1)

[image]New FDB facility to be operational in spring 2025 (Holly Springs, North Carolina, USA)

New FDB facility to be operational in spring 2025 (Holly Springs, North Carolina, USA)

The Fujifilm Group is expanding its contract development and manufacture of biopharmaceuticals (CDMO*1) business. The Group’s core bio CDMO company, FUJIFILM Diosynth Biotechnologies (FDB), has four bases of operations located in the United States, the United Kingdom and Denmark and meets a wide range of customer needs with its advanced production and quality control technologies and state-of-the-art facilities. Because further market growth is expected, FDB announced in March 2021 the new construction of a large-scale cell culture biopharmaceutical manufacturing facility—adding a second facility in North Carolina, USA. The new facility will have eight 20,000 liters bioreactors for cell culture, a large-scale drug product manufacturing line and a packaging line. This will make it possible to provide complete solutions from bulk drug substance to drug product and packaging.

When choosing the location for the new facility, the company took its overall environmental impact on the supply chain into account based on a life cycle assessment, not limited to its own operations. Envisioning supplying products to the United States, which is the highest-demand market, several model cases were used to estimate the CO2 emissions associated with manufacturing, packaging and shipping. As a result, the company found that all models involving air transport via European manufacturing facilities resulted in tremendous amounts of CO2 emissions and that the model of completing all processes within the United States had the least environmental impact. In addition, at the new facility, the company will leverage the advantages of North Carolina’s robust state environmental programs such as renewable energy incentives, and will actively introduce systems that reduce environmental impact in collaboration with the local government and its business partners. Going forward, environmentally conscious manufacturing will be expanded, and business growth will be accelerated by utilizing renewable energy sources for all electric power requirements.

  • *1 The Company offers wide-ranging services to pharmaceutical companies, from cell line development to process development, stability testing and manufacturing of investigational new drugs

Model Comparison of Product Supply to the United States

Manufacturing everything at U.S. facilities

Manufacturing everything at the Denmark facility with high renewable energy usage and shipping to the U.S

With the aim of contributing to the realization of a sustainable society, the Fujifilm Group has established the Fujifilm Group “Green Value Products” Certification Program as a mechanism for continuing to create environmentally conscious products and services.

In fiscal 2020, 30 new products were certified, making a total of 166 certified products. We also set a new environmental target for fiscal 2030, “Make Green Value Products rate per sales 60%.” We endeavor to further environmental impact reductions through our products and services.

  •     This certification program started in 2018 and is compliant with ISO 14021 (Self-declared environmental claims) to secure objectivity, reliability and transparency, with advice from Dr. Norihiro Itsubo of Tokyo City University as an external expert.

Examples of certified products and services

Gold certification: Reducing CO2 emissions in a data-driven society—Magnetic tape and data archiving solution

Currently, the energy required to store enormous volumes of data is a social issue. In hard disk drives (HDDs) used at data centers, the disk continually spins regardless of whether the data is accessed or not, requiring continuous electric power. Fujifilm’s data archiving solution can efficiently store “cold data,” which is seldom accessed but said to account for more than 80% of all data.

This is because its LTO tape (large-capacity magnetic tape) uses power only when data is written to or read from the tape. It substantially reduces power consumption by approximately 74% compared to storing data on HDDs. This solution was granted a gold certification for its contribution to reducing energy usage at data centers as the volume of digital data continues to increase.

Comparison of power consumption

Operating conditions: Calculated based on data write and non-write times, with drives powered 24 hours a day and approximately 110GB of data written per day
TAA data: Fujifilm measurement for HDD capacity of 10TB + tape capacity of 240TB (LTO-7 x 40 drives)
HDD data: [Source] Energy Conservation with Use of Tape Storage 2016, JEITA Data Storage Technical Committee

Gold certification: Telecommuting solution “beat” reduces human travel and use of office equipment

Since 2020, telecommuting has been spreading rapidly due to the COVID-19 pandemic, and work styles have been changing. However, there are still many companies that have not adopted it due to concern over security risks. FUJIFILM Business Innovation’s telecommuting solution “beat” is a service that provides comprehensive support for secure, simple and convenient network management.

It enables a comfortable and safe network environment with its strong security system, a one-stop solution for 24/7 monitoring of network operations, and the flexibility to connect internal and external networks. This solution was granted a gold certification since it reduces the workload of introducing telecommuting, thus contributing to the reduction of CO2 emissions with less human travel and use of office equipment.

Expected flow of network management outsourcing

The Fujifilm Group develops, manufactures and sells triacetylcellulose (TAC) film (product name: FUJITAC), a protective film for polarizers that is indispensable in LCD (liquid crystal display) and OLED (organic light-emitting diode) display polarizers (filters that allow light through only in a specific direction). It has superior optical properties and smoothness as well as high transparency, so it is also used as a substrate for high-performance coating film.

The film is made from cellulose produced from non-edible plants. Around 50% of the CO2 emissions associated with its disposal are excluded in the total emissions since the emissions from biomass are deducted. For that reason, compared to PET*2, COP*3, acrylic and other petroleum-derived films, TAC film is now attracting attention from an environmental perspective as well.

By further expanding the provision of TAC film products, we will contribute to reducing CO2 emissions in society.

  • *2 Polyethylene terephthalate
  • *3 Cyclic olefin polymer

In 2006, Fujifilm received biomass product certification from the Japan Organics Recycling Association for TAC film.

CO2 emissions from waste disposal
  • Note: CO2 emissions calculated using general structural formula for each material. Deducted amount for TAC film calculated from biomass material ratio (weight ratio).

Natural gas emits less CO2 compared to other fossil fuels such as petroleum and coal, and is considered to be an energy resource that will lead to reduction of CO2 emissions in the transition period toward the realization of a decarbonized society.

The Fujifilm Group has developed and provided CO2 separation membranes that separate impurities such as CO2 from natural gas. This process utilizes membrane formation technology leveraging high-precision coating and chemical design technology.

By applying these technologies to develop membranes with various properties, we aim to purify and generate energy resources that do not emit CO2 such as hydrogen. We will continue our efforts to realize decarbonization in the energy domain.

Separation membrane for natural gas purification

The Fujifilm Group aims to build a decarbonized society through our business and communications with stakeholders.

1. Participating in Climate Change Initiatives

The Fujifilm Group participates in the following climate change initiatives to endorse and support their activities.

(1) Japan Climate Leader’s Partnership (JCLP)

A coalition of Japanese companies that aim to build a sustainable decarbonized society, established in 2009. We became a partner in May 2018.

Activities/Achievements
  • In July 2020, we gave a presentation, "The Fujifilm Group's Procurement of Renewable Energy," at a seminar held by the organization. The presentation introduced our renewable energy usage practices and our electricity and fuel strategy toward decarbonization.
(2)Japan Climate Initiative (JCI)

Established in July 2018 as a voluntary network to reinforce communications and exchange opinions among companies, local governments, NGOs, and other organizations that are actively working for climate change. We joined the initiative in 2018.

Activities/Achievements
  • In June 2020, as a JCI member, we participated in an opinion exchange session with the Minister of the Environment toward Green Recovery at the COVID-19 pandemic. We appealed for the need to support technological development and infrastructure building toward fuel decarbonization, which is critical in the chemical industry.
  • In January 2021, as one of 93 corporate members, we published a message calling for the Japanese government to raise its 2030 renewable energy target to 40–50% in the 6th Strategic Energy Plan.
  • In April 2021, JCI submitted a statement to request the Japanese government to raise its emission reduction target from 26% (at that time) to a more ambitious level, one that better represents Japan’s responsibility as a leading economy and is more aligned with the European Union’s target of 55% and 50% for the United States. At the press conference related to the statement, we announced our endorsement of the JCI message along with our own efforts toward reducing climate change.
(3) Task Force for Climate-related Financial Disclosure (TCFD)

An organization that advises corporations to disclose their financial information concerning climate change risks and opportunities. We announced our endorsement of the TCFD recommendations in December 2018.

Activities/Achievements
  • Joined the TCFD Support Project by the Ministry of Environment in 2019.
  • Joined the TCFD Consortium in 2019.
  • Started disclosing environmental analyses and information based on TCFD recommendations in our Sustainability Report 2019.
(4) RE100

An international initiative of corporations that are committed to 100% renewable electricity for their business operations. We joined the organization in 2019.

The deadlock for achieving decarbonization in chemical indstry
The chemical industry requires high temperature steam heat. It is extremely difficult to replace this energy with renewable energy using currently available technology. In our case, CO2 emissions from such high temperature heat usage accounts for almost 50% of the CO2 emissions from the energy used in our manufacturing processes. We are aware that acceleration of technological innovation is indispensable toward the decarbonization of electricity and energy, not only within our companies but across society as a whole. For this reason, we join the RE100 setting our renewable energy usage target in 2019 and a target date of 2050 to achieve zero CO2 emissions, combining the renewable energy usage and replacement with fuels without CO2 emissions, such as hydrogen. In 2021, we brought forward our renewable energy usage target by ten years, stating “convert to 100% renewable energy by fiscal 2040.” We continue seeking all possible solutions, working together with other companies to help break the deadlock in converting to renewable energy in the chemical industry.

Activities/Achievements
  • In June 2019 at the JCLP Symposium, the “Proposal from Corporate Consumers Aiming to Sourcing 100% Power from Renewable Electricity” was released based on discussions by RE100 companies in Japan.
  • In 2020, in a series of seminars, “Corporate Sourcing of Renewable Energy,” jointly held by RE100 and GWEC/CDP, we presented the Fujifilm Group’s practices of renewable energy procurement.
  • In March 2021, under a collaboration with JCLP, 53 of the RE100 companies released a statement for the Japanese government to increase the share of renewables.
(5) Science Based Targets initiative: SBTi

A partnership among the World Wide Fund for Nature (WWF), CDP (former Carbon Disclosure Project), United Nations Global Compact, and the World Resources Institute (WRI). They recommend corporations to set science-based CO2 emissions reduction targets restricting the global average temperature rise to 1.5°C above pre-industrial levels.

Activities/Achievements
  • In 2017, we announced our reduction targets and obtained the SBT 2°C target approval.
  • In 2020, we obtained the SBT Well-Below 2°C target approval by presenting our revised targets.

2. Endorsement and Support for Climate Change Policies

The Fujifilm Group announces political requests and endorsements through participating in climate change initiatives and industry organizations.

(1) 2019: Participated in the “Project to support for the Scenario Analysis in Line with the TCFD Recommendations” by the Ministry of Environment.

(2) 2020: Participated in the Ministry of Environment’s project to promote a decarbonized society, “Growing Momentum for Carbon Neutrality–Top Executives Talks about Decarbonization” through our video. The video introduced the Fujifilm Group’s anti-climate change efforts, such as 100% switch to wind energy in FUJIFILM Manufacturing Europe B.V. in the Netherlands in 2016, and setting group targets for renewable energy usage in 2019.

(3) Participating in projects by the New Energy and Industrial Technology Development Organization (NEDO), “Development of Continuous Production and Process Technologies of Fine Chemicals” and “Artificial Photosynthesis Project.” We were listed among the corporations under the Zero Emissions Challenge 2021, which covers companies participating in projects related to the Environment Innovation Strategy, under the Ministry of Economy, Trade and Industry.

(4) Keidanren Carbon Neutrality Action Plan (former Commitment to a Low Carbon Society)
Cross-industrial voluntary efforts by the economic community aiming at carbon neutrality by 2050. The plan is designed to encourage corporations to create their carbon neutrality visions and monitor their progress by undertaking assessment. We participated in the plan through the Japan Chemical Industry Association by reporting progress in CO2 emissions reduction and energy-saving measures.

Examples of our concrete measures
  • We are working to reduce CO2 emissions by continuing our pursuit of efficient energy usage in manufacturing processes, begun in the 1990s, and a gradual switch to low carbon fuels, such as natural gas, since the 2000s.
  • The manufacturing industry tends to aim at optimization of energy efficiency toward a set CO2 emission per unit target. However, we decided to set an absolute reduction target determined from the base year to achieve business expansion and emissions reduction at the same time.

Initiatives at each Fujifilm Group site

Reducing CO2 emissions by converting to city gas (FUJIFILM Toyama Chemical Co., Ltd.)

The Toyama Daiichi Plant of FUJIFILM Toyama Chemical converted its fuel for boilers from heavy oil to city gas, resulting in a 1,052-ton reduction in CO2 emissions per year. Since 2003, the Fujifilm Group has been proactively converting the fuel for in-house cogeneration systems and boilers from heavy oil to city gas. Now, approximately 90% of the fuel we are currently using is derived from natural gas, which has lower CO2 emissions.

Fuel equipment at Toyama Daiichi Plant

FUJIFILM Toyama Chemical members

Four facilities come together to engage in energy-saving activities (FUJIFILM Optics Co., Ltd.)

Energy-savings promotion members

FUJIFILM Optics is promoting energy-saving activities companywide. With four facilities each doing their part in improving energy savings, the company reduced its CO2 emissions by 2,300 tons compared to the previous year. One of the measures is the visualization of power consumption at the Sano Site in Tochigi Prefecture.

A fundamental review was conducted on the equipment operating conditions, particularly the air conditioning equipment in the clean room, which accounted for roughly 45% of the department’s power consumption. By optimizing the temperature settings and operating times by production area, they were able to reduce their overall power consumption by 16% compared to the previous year.

Reducing electric power by improving efficiency of cooling (FUJIFILM Corporation)

Kanagawa Factory members

The Kanagawa Factory of FUJIFILM Corporation supplies the heating and cooling sources used at manufacturing buildings via a central cold water system.

In fiscal 2020, power consumption was reduced by further consolidating freezers throughout the worksites and introducing high-efficiency turbo freezers that use inverter control to effectively utilize low-temperature cooling water.

For the year, a 240-ton reduction of CO2 was achieved.

Energy Saving and CO2 Emissions Reduction(FUJIFILM Corporation Fujinomiya Factory)

Energy Saving and CO2 Emissions Reduction(FUJIFILM Manufacturing Shenzhen Corp.)

Energy Saving and CO2 Emissions Reduction(FUJIFILM Diosynth Biotechnologies U.S.A., Inc.)

Energy Saving and CO2 Emissions Reduction(FUJIFILM Diosynth Biotechnologies UK Limited)

Energy Saving and CO2 Emissions Reduction(Biogen (Denmark) Manufacturing ApS)

CO2 Emission Reduction Activities through Processless Thermal CTP Plates (Fujifilm)

Climate change Countermeasures through Carbon Offsetting in the Cosmetics Sector (Fujifilm)

Address Climate Change (FUJIFILM Business Innovation)