Sustainable Procurement Activities

To promote sustainable procurement activities, the Fujifilm Group has designated a Sustainable Procurement Promotion Program that is run cyclically in the following four steps.

To help our suppliers gain an understanding of the Fujifilm Group’s CSR approach and requirements, instead of just disclosing our Code of Conduct and Procurement Policy on our website, we hold supplier briefings to explain our policies and standards directly, and request for their compliance. To go even further, we also send out our Code of Conduct to the suppliers and receive their consent forms on a regular basis to disseminate our approach. (Disseminated basically once in three years and at the revision of Fujifilm Group Code of Conduct) In Europe and the Americas, in addition to obtaining consent forms, we also conduct activities to raise awareness of the Code of Conduct at the time of contract signing and order placement.

To identify sustainability-related risks and issues concerning suppliers, the Fujifilm Group conducts regular risk assessments and requests suppliers to carry out self-checks. Such assessments are carried out on critical suppliers determined by procurement amounts and replaceability of the procured items, as well as on suppliers in the priority risk management regions,^*1 such as China and Asia. When a tier 1 supplier is a trading company, we request self-checks from the production companies beyond the trading company. When a tier 1 supplier is a production company, we request self-checks for each of its production sites, thereby expanding the scope of evaluation. In addition to evaluating existing suppliers, we also conduct assessments on sustainability-related risks when selecting potential new suppliers.

Also, we started using a risk screening tool provided by an external vendor in fiscal 2022 for more efficient identification of sustainability risks concerning suppliers to enable a prompt response in the event of a risk-related incident. With this tool, we are now screening legal violations from the viewpoints of social and governance in our supply chain.

Feedback sheets are sent to all suppliers who have completed the self-checks described above (2). For suppliers with a conformance rate below 80%, as well as those with non-conformance in high-priority items, advice is provided within the feedback sheets to encourage improvements. Additionally, for some suppliers, follow-up interviews and other measures are conducted to directly verify the status of non-compliant items. If corrective actions are deemed necessary, we ask the suppliers to resolve and subsequently monitor the progress.

Furthermore, for suppliers judged to be high-risk based on self-checks and day-to-day procurement, as well as for "most critical suppliers" that have a significant impact on our business due to procurement volume or the scarcity of procured items, we conduct individual onsite verifications and provide improvement requests and support. In China and Asia, our internal expert teams conduct onsite visit and check for sustainability activities by the supplier and provides advice on making improvements. Based on the check results, we encourage the suppliers to proceed with improvements, and thereby promote the Fujifilm Group’s sustainable procurement methods across the whole supply chain.

• *1 The Fujifilm Group identifies risk areas within its supply chain from the viewpoint of sustainability by analyzing the regional environment, social risks and the relevant regulations in countries and regions.

The Fujifilm Group disseminated its Requests to Suppliers (Fujifilm Group Charter of Corporate Behavior and Code of Conduct) to its suppliers in Japan, China and other Asian countries, which are the focus of its risk management efforts, and collected consent forms from 622 suppliers.

As our Group standard, we disseminate the Requests to Suppliers once every three years. In fiscal 2024, we collected consent forms from more than 400 companies, which was our original target. This was due to consecutive dissemination to critical suppliers in China and other regions over two years, as well as dissemination by Group companies that newly started sustainable procurement activities. In Japan, we also confirm understanding of the Fujifilm Group’s Corporate Behavior Charter and Code of Conduct with indirect material suppliers at the start of business transactions.

We requested critical suppliers to carry out self-checks. For fiscal year 2024, we have newly added some questions, including whether reasonable accommodations are being provided for workers with disabilities and those with religious practices. We received self-check responses from 1,027 suppliers (1,550 sites), marking a 92% response rate. The fiscal 2024 self-check results did not reveal any significant risks related to child labor, forced labor, or freedom of association.

At the same time, we also conducted the information security survey (self-check), which we started in fiscal 2022. This is to understand the security risk management status in our suppliers, in response to reports that cyberattacks on supply chains were affecting production activities and supplies. The number of responding suppliers was 1,101 in fiscal 2024.

The risk screening tool, which was introduced in fiscal year 2022, continues to be used in fiscal year 2023 to conduct risk checks on approximately 3,000 suppliers located in key risk management regions, including Japan, China, and rest of Asia. Detected risk information is promptly reviewed through consultations between the ESG Division and the Procurement & Equipment Manufacturing Division of FUJIFILM Holdings. Based on the nature and severity of the risk events, necessary measures are taken, such as requesting corrective actions through the relevant procurement divisions that have transactions with the affected suppliers.
In fiscal 2024, we detected 92 cases of risk information related to Fujifilm Group suppliers. We confirmed that none of these cases were serious enough to impact the Group’s supply; however, we urged the procurement departments involved to continuously monitor the suppliers where risk events were detected.

In fiscal 2024, based on the fiscal 2023 self-check results, we sent feedback sheets to all surveyed suppliers. Additionally, we conducted follow-up interviews with 85 suppliers through face-to-face meetings, telephone calls, and e-mails, focusing on those with conformance rates below 80% or with non-conformance in high-priority items. As a result of the follow-up, we confirmed specific examples of improvement such as: “Although we did not understand the necessity of formalizing the policy, we have newly established human rights and environmental policies to ensure thorough implementation,” and “While risk management from a sustainability perspective for suppliers had not been conducted, we have newly started a risk check survey for suppliers.”
In fiscal 2024, we confirmed that 69 of the 85 suppliers who received follow-up interviews and other communications in the previous year improved their conformance rates.

Reviewing the self-check results from the previous year and considering the procurement amount and business status of our suppliers, we identified 65 suppliers in China and Vietnam as requiring risk assessment. Expert teams from our production sites provided onsite visits and checks to 66 suppliers out of 67.

In onsite visits and checks during fiscal 2024, as usual we visited suppliers' production sites and their employee dormitories. We also inspected their labor agreements and related documents.
These assessments identified the following issues and continuously confirmed that they had been improved.

We confirmed that such critical issues were improved by the end of that fiscal year for all suppliers where onsite assessments had been conducted. We continue monitoring the suppliers’ progress for those issues that require some time for improvement.

In supplier briefings in Japan, we raised awareness of the importance of appropriate chemical management in the supply chain. We also provided concrete information on the latest trends concerning procurement-related laws and regulations, and promoted thorough communications on the regulated chemicals contained (or not contained) in the procured goods. We always opened the briefings with an explanation of the importance of sustainability and our efforts in sustainable procurement. We also fostered understanding of the Fujifilm Group Charter of Corporate Behavior and Code of Conduct and requested suppliers to submit their consent form for the Code of Conduct. Following on from the previous year, the fiscal 2024 briefings were held as a webinar. A total of 136 participants from 112 companies attended the webinars.

In December 2025, the Fujifilm Group held its first cross-business sustainable procurement briefing for suppliers in Suzhou, China. Of approximately 800 targeted suppliers located in China, 958 participants from 772 companies attended. In addition to providing an overview of the Fujifilm Group’s business and sustainable procurement activities, we directly explained specific requests based on the newly established "Fujifilm Group Supplier Code of Conduct.”
The participant feedback included comments such as "We would like to promote sustainable development together," "We gained a better understanding of the necessity of sustainable procurement activities," and "We hope such briefings will be held regularly." We will continue to strengthen engagement with suppliers.

Japan’s logistics industry faces serious social issues, such as long working hours by courier drivers, death from overworking, and environmental and safety issues caused by poorly maintained vehicles. These problems are caused by the increasing trend of internet shopping and the home delivery demand.

FUJIFILM Logistics Co., Ltd., which is in charge of logistics operations for the Fujifilm Group, has been requesting its logistics partners (tier 1 suppliers) to cooperate in our sustainable procurement for logistics in Japan since fiscal 2009. Through such requests, logistics partners conduct sustainability self-checks and if their conformance rate is less than 90%, FUJIFILM Logistics visits the partner company to offer advice for correction.

In fiscal 2024 , we requested 114 suppliers to conduct self-checks and collected the results from all suppliers. In the fiscal year, we added questions to the self-check to assess logistics partners’ appropriate response to the "2024 logistics industry issue," which arises from Japan’s Work Style Reform-related law limiting drivers' overtime to 960 hours per year. For companies that had less than a 90% conformance rate in the previous year, we made an onsite interview and confirmed that the nonconforming aspects had been improved . As a result, all these companies improved their self-check conformance rates.

FUJIFILM Logistics has been focusing on improving logistics efficiency through cross-industry collaboration since fiscal 2022 and continued to implement “long-distance relay trucking,” where multiple drivers change over after covering a set intermediate distance, in fiscal 2024. Relay trucking reduced both the number of vehicles and working hours, as well as minimizing the long-hour working resulting from long-distance single driver transportation. Furthermore, in fiscal 2024, we reviewed certain transportation routes and strengthened our ongoing efforts toward modal shift to address challenges such as the "2024 logistics industry issue" and driver shortages, thereby securing stable transportation methods. As a result, we reduced driver driving time by 60% on the targeted routes.

Since fiscal 2020, FUJIFILM Logistics has been using the GoStop Management System, a logistics service provided by the Japan Weather Association, to support transportation safety in bad weather. We provide our partners with information gained from the system, such as bad weather forecasts and other data that helps determine whether it is necessary to cancel transportation. In fiscal 2024, there were no accidents caused by natural disasters.

Over the years, due to the nature of our founding business, the Fujifilm Group has been working to reduce the environmental impact from our business throughout the product life cycle, from material procurement, manufacturing, transportation, and use, to final disposal. Particularly in material procurement, we are expanding the scope of efforts to include our suppliers through the structure of sustainable procurement.

About 70% of our entire GHG emissions derives from our procured goods that fall under Scope 3 Category 1. To reduce these emissions, the understanding and cooperation of our suppliers is essential. Also, a third of the Scope 3 Category 1 emissions is from chemical materials. In fiscal 2024, continuing from fiscal 2023, we conducted a questionnaire survey for suppliers of chemical raw materials, which account for about one-third of Scope 3 Category 1 emissions, to understand the status of GHG emissions calculation, and whether or not they had set reduction targets, as well as learning about any obstacles to emissions reduction efforts. The questionnaire was submitted to 214 suppliers of our Group companies both in Japan and overseas, and 187 responded (90% response rate). The scope of the survey has been expanded beyond the domestic Group companies in Japan, which were the target of the fiscal 2023 questionnaire survey, to include some overseas Group companies. Additionally, when the tier 1 supplier is a trading company, the survey is extended to manufacturers at the secondary trading level.

Further, we visited some of the respondent companies to hold interviews to learn about their actual status and gain some insight into any obstacles they faced. As a result, we clarified that some 73% of the suppliers had already calculated their own GHG emissions or will be able to calculate them within the next two years. Also, 63% of the suppliers have set emissions reduction targets or will set them within two years.

On the other hand, of those suppliers who have completed calculation of the Scopes 1 and 2 emissions, only 45% had completed calculations for Scope 3 emissions. To date, we have used a representative emission intensity database. Continuing from fiscal 2023, we calculate our Scope 3 Category 1 emissions using the actual emissions (primary data) obtained from suppliers through the recent questionnaire, and reflect their emissions reduction efforts in our GHG emissions calculations.

In fiscal 2024, we launched a new GHG Emissions Calculation Support Program for suppliers that have not yet calculated their GHG emissions. This program provides explanatory videos on calculation methods, calculation sheets, and proposals for effective reduction measures based on the calculation results. Regarding reduction measures, we promote the use of the "Inter-Company Collaboration Advanced Model Support," which provides subsidies when the company and suppliers jointly update equipment to reduce GHG emissions. We also propose optimizing electricity usage to reduce Scope 2 emissions.

The Fujifilm Group conducted  the Responsible Business Alliance^*2 (RBA) Facility Risk SAQ at six production sites in Japan and overseas, and confirmed that none of the sites were classified as High Risk.

• *2 RBA (Responsible Business Alliance / Virginia USA) See RBA’s website for details.

Fujifilm Group's main production sites have been undergoing audits under the Validated Assessment Program (VAP) of RBA.

Major companies within the Fujifilm Group have received the following ratings in the sustainability assessment conducted by EcoVadis^*3 (headquartered in Paris, France) as of Janualy 2026.

• *3 EcoVadis: The EcoVadis Sustainability Rating evaluates companies' policies and initiatives in four categories: Environment, Labour & Human Rights, Ethics, and Sustainable Procurement.