CSR activity report

Supply Chain

Strengthen CSR foundations across the entire supply chain including factors of the environment, ethics, and human rights.

Strengthen CSR Foundations across the Entire Supply Chain (Priority Issue 1)

Outline of Activities in FY2018

[Target] Realize sustainable procurement

Briefings for suppliers in China

Started on-site visits by expert teams to suppliers with assemble works in China to offer procurement diagnoses and started providing support for improvements. (Fujifilm)
Achieved elimination of production line stops caused by suppliers’ CSR risks in consecutive years ⇒ FX Shenzhen for four years & FX Haiphong for three years.(Fuji Xerox)
Obtained 100% response rate from suppliers for the conflict minerals survey (in the document business where customer interest is high). (Fuji Xerox)

[Target] Ensure compliance with legislation on biodiversity

Continued risk assessment of biological resource procurement from the product design stage, based on internal rules (starting in February 2010).
Participated in the Taskforce Committee for the Nagoya Protocol under the Ministry of Economy, Trade and Industry (METI), Japan (continuous participation since FY2014).
Continued risk management for procurement of copier paper, one of our important products, based on internal rules and guidelines (since 2012).

[Other major activities]

In June 2018, the Fujifilm Group Human Rights Statement was approved by the CSR Committee (current ESG Committee; headed by the President) to be disclosed.
In April 2019, the Fujifilm Group Charter for Corporate Behavior and the Fujifilm Group Code of Conduct were revised to enhance descriptions concerning respect for human rights. Started dissemination and education including the Human Rights Statement.
Conducted the comprehensive human rights impact assessment across the Group and determined the priority in human rights issues to address.
Conducted natural capital assessments concerning procurement of copier paper based on the Natural Capital Protocol^*1.

*1 Natural Capital Protocol: A standardized framework developed by the Natural Capital Coalition (NCC) for businesses to identify, measure and value their impacts and dependencies on natural capital to improve their decision making and strategies. First published in July 2016.

Future Activities and Targets

Establish on-site visits by expert teams to suppliers with assemble works in China as a regular practice and reinforce support for improvements. (Fujifilm)
Maintain 95% or more response rate from suppliers for the conflict minerals survey, and refine data accuracy (in the document business where customer interest is high). (Fuji Xerox)
Implement ongoing efforts to comprehensively manage biological diversity risks resulting from procurement, continuing our FY2018 activities.
Expand our business assessment in compliance with the Natural Capital Protocol.
Increase the preventive and mitigating measures for the priority human rights issues (identified human rights risks) and monitor the progress.

Strengthen CSR Foundations across the Entire Supply Chain

Learn more

See the Management Performance for more details on ethical procurement and our FY2018 efforts concerning conflict minerals, human rights, and biodiversity.

Supply Chain Management	Supply Chain Management [PDF]
Response to Conflict Minerals	Response to Conflict Minerals [PDF]
Respect for human rights	Human Rights [PDF]
Biodiversity Conservation	Biodiversity Conservation [PDF]

Third-Party Opinion

Third-Party Opinion on “Supply Chain”

Among the Fujifilm Group, the ethical procurement implemented by Fuji Xerox (FX) has particularly matured, having departments specializing in ethical procurement at different business sites. Using an international standard—RBA—as its own benchmark, the company not only conducts selfassessments but also seeks professional advice in workplaces. Their extensive initiatives have led to successful risk management as well as productivity enhancements. These are noteworthy results. At the same time, they have meticulously addressed issues specific to FX, such as paper procurement.

On the other hand, ethical procurement in Fujifilm (FF) appears to be still at the introductory stage. It is expected that its initiatives will eventually become as extensive as FX, however, managing suppliers’ factories is not sufficient when taking account of the diversity of FF’s entire business area. The evaluation of human rights due diligence risks across the supply chain is still in the general stage and identification of risks specific to FF’s business seems to be insufficient. I hope the company will improve these aspects in the near future.

Mr. Hidemi Tomita
Director
Lloyd’s Register Japan K.K.

Profile

Graduated from the Department of Applied Physics, The University of Tokyo. M.S.E. in Chemical Engineering, Princeton University. Took the role of General Manager of the CSR Department in Sony Corporation since the department’s foundation, including supply chain management. After joining the Lloyd’s Register Group, he became the director of Lloyd’s Register Japan K.K. Participated in the formulation of domestic and international standards, including ISO 26000, ISO 20400, GRI standards, Tokyo Olympic and Paralympic sustainable sourcing code, etc.

Response to the third-party opinion

Thank you very much for your considered opinions regarding our initiatives.

FX which belongs to the electrical and electronic industry has started ethical procurement as an early starter. The initiatives made by FX have resulted in productivity improvements, not only for its suppliers but also in its own business. FF has also been working together with suppliers taking account of its business characteristics and has also been involved with controlling the chemicals contained in its products over the last several years. We plan to further improve our initiatives utilizing FX’s expertise to continue to raise the standards of ethical procurement across the Group.

(ESG Division, FUJIFILM Holdings)

Area	Priority Issues
Environment	Address Climate Change	Learn more
	Promote Recycling of Resources	Learn more
	Address Energy Issues toward a Non-Carbon Society	Learn more
	Ensure Product and Chemical Safety	Learn more
Work Style	Develop and Utilize Diverse Human Resources	Learn more
Customer service	Products and Services which Reflect Our Customers' Views
Social Contribution Activities		Learn more