Strengthen CSR Foundations across the Entire Supply Chain

Although Fujifilm and FUJIFILM Business Innovation are in the Fujifilm Group, the products they manufacture are very different. Thus, the situation and risks associated with their production, procurement, and suppliers are also diverse. However, we regard collaboration with suppliers concerning socially responsible management as highly important regardless of such differences in business content. This is why we have been working to gain their understanding about the Fujifilm Group Procurement Policy, particularly from our production materials suppliers, by distributing our Procurement Policy and Requests to Suppliers to them and distributing our policy documents taking account of business such differences.

FUJIFILM Business Innovation has been leading promotion of ethical procurement in the Group since 2007. This is because the company has an overseas production rate as high as 90% and belongs to the electrical and electronic industry, where demand for socially responsible management has been strong since early days. Through our procurement scheme, FUJIFILM Business Innovation (1) adopts the international ethical procurement standards required by the Responsible Business Alliance (RBA), which includes many electrical and electronic industry as members; (2) offers suppliers the expertise gained by FUJIFILM Business Innovation and FUJIFILM Manufacturing Shenzhen Corp. , a major FUJIFILM Business Innovation production site; and (3) makes and distributes management tools (management guidelines and self-checklists) to our suppliers. Utilizing these management tools, suppliers have become able to check their procurement soundness and establish improvement plans by themselves. Also, running the PDCA cycle for procurement every year ensures steady improvements. FUJIFILM Business Innovation requires all of its suppliers to conform to 90% or more of the “very important” items in the CSR Self-Checklist. Currently, the average conformance rate remains around 90% and since FY2015, FUJIFILM Manufacturing Shenzhen Corp. has been free from any production line stops caused by CSR risks in its suppliers. Fujifilm began requests to some of its suppliers to conduct self-assessment from the CSR viewpoint in 2009, in addition to conventional communications concerning the chemical substances contained in products. This self-assessment has been expanded to other suppliers and now covers 80% of each business division’s procurement. In FY2018, we extended the procurement management that FUJIFILM Business Innovation has developed to Fujifilm’s production subsidiaries in order to reinforce and deepen our procurement policy across the Fujifilm Group. As the first site to introduce this scheme, we appointed Fujifilm Imaging Devices (Suzhou) Co., Ltd. (FC), Fujifilm’s major production site for digital cameras and instant camera systems, for which customers have been increasingly demanding CSR management over suppliers in recent years. The procurement management has already started in cooperation with FUJIFILM Manufacturing Shenzhen Corp., which has knowhow in assessment and improvement support in China. We continue to reinforce our CSR management across the supply chain by sharing knowhow within the Group.

• See the Sustainability Report for more details on ethical procurement and our FY2021 efforts concerning conflict minerals, human rights, and biodiversity.

• Please refer to the Feature Article of the Integrated Report 2021 Promoting Sustainable Procurement through Group Synergies.