Process for Identifying Materiality

In identifying priority issues (materiality), important social issues that impact both the Fujifilm Group and society are identified through the steps shown in the figure and established as priority issues in SVP 2030. In evaluating materiality in Step 3, priority issues were identified after studying both how to resolve social issues through business activities (contribution to environment and society) and how to increase consideration for society and the environment in our business processes (minimization of environmental and social impacts). Regarding social interests and requests, priority issues (top right of the figure) have been identified through evaluation by E Square, a CSR specialist representing current social opinions. In the area of the environment, the issues requiring urgent action on a global scale, social and environmental impacts (risks) and contributions (opportunities) have been mapped according to the SDG Compass to enable us to organize priority issues.

• Define long-term targets (for 2030) 
•  Promote measures based on disclosed numerical targets for global environmental issues
•  Promote priority measures for resolving social issues through business activities (contribution to society and the environment) and considering society and the environment in our business processes (minimization of environmental and social impacts).

For achievement of SVP 2030 and aiming to be a cooperation that contribute to realize a sustainable society, we will reexamine our group-wide activities and long-term targets through PDCA every three years by planning for mediumterm management reform.

The process of determining and re-examining materiality begins with deciding on the basic policy for future CSR activities, with attention given to CSR-related developments in society, the status of activities that reflect the philosophical concepts and policies of the Fujifilm Group and business developments.

In our study of the development of the current SVP 2030, we re-examined the activities conducted under SVP 2016, our previous medium-term CSR plan, and at the same time reviewed priority issues that needed to be addressed in face of the changes taking place in the world. As a result, we decided to continue the approach we adopted in SVP 2016 that sees company-wide efforts to solve issues as opportunities for business growth, take it to a higher level and establish a basic policy that clearly specifies our long-term vision on how to contribute to resolving social issues as a global company.

Establishing our basic policy was followed by work designed to extract from global standards and guidelines for current and future social issues to be addressed by Fujifilm Group through its business activities, developments at other companies in the industry and communication with stakeholders.

In identifying social issues, we created a comprehensive list of some 300 items, with the addition of items that need to be addressed from a long-term perspective, including the global standards ISO 26000, G4/GRI Standards, the targets of the Paris Agreement, SDGs and the Ten Principles of the UN Global Compact. In addition, information was gathered from shareholder meetings, interviews with investors and dialogues on environmental issues, as well as social issues that we may be able to address through the products, technologies and services all our divisions have developed. These issues have been listed up as relevant social issues.

In the process of identifying materiality, we have given attention to social and environmental changes, regulatory and policy directions and the demands of stakeholders in relation to business areas that are linked or likely to be linked to the Fujifilm Group.

In evaluating materiality, we have adopted a two-sided approach: reducing and considering the negative impact generated from our business activities on society and the environment (emphasizing risk response) and resolving social issues through our business activities (emphasizing creation of opportunities).

In the field of the environment where there are many urgent global issues, we mapped risks and opportunities on the environment and society in the value chain using the SDG Compass as a reference.

• * Study of priority issues based on the SDG Compass from the viewpoints of both the negative impact of our business processes and the positive impact of our contribution to resolving social issues through our business activities.

We defined plans and targets for the priority issues extracted in Step 3 together with relevant business divisions of operating companies working on these issues. The plans and targets are deliberated on and approved by the ESG Committee. Progress in these activities is reviewed annually and described in the Sustainability Report.

SVP 2030 planning targets for fiscal 2030 were finalized in cooperation with the relevant business divisions. Especially for environmental issues, we identify the state of progress and establish numerical targets, with the focus on climate change, which is an urgent global issues.

Priority issues under SVP 2030 are deliberated on and approved by the ESG Committee headed by the president of Fujifilm Holdings and reported to the Board of Directors. These issues are then reflected in the group-wide policy and acted on throughout the Group.

Priority issues are reviewed on a regular basis.

More recently, the CSR plan SVP 2030 was reviewed in FY2019 and FY2020 for development of our Medium-Term Management Plan, VISION 2023. SVP 2030 targets are for fiscal 2030, but reviews are planned at least every three years in step with development of the medium-term management plan.

In the recent review, some of the targets in the area of the Environment were updated to make them more challenging. At the same time, a number of new targets were established. In the fields of Health and Work Style, new KPIs were established for priority issues designed to contribute to resolving social issues through our business activities. In the area of the Environment, decarbonization targets were re-examined later in December 2021 to ensure that we would achieve the so-called “1.5° target” and the target for CO₂ emissions from the Fujifilm Group was raised.

Period: Fiscal 2019 to 2020 (some activities in the Environment were implemented also in fiscal 2021)

Please refer to SVP 2030 Major Targets and Results in FY2021 for targets and activity results examined and used in the review.

We revised some targets to make them more challenging and added some new targets.
Some of added/revised targets are as follows:
By FY2030:

• 50% reduction of CO₂ emissions through our entire product lifecycle^*1 (compared to the FY2019 level).
  • *1 Procurement of raw materials, and manufacturing, transportation, use, and disposal of products
• Contribute to reducing CO₂ emissions to 90 million tons by offering products and services that enable significant CO₂ emissions reductions when our customers use them.
• Increase the sales percentage of Green Value Products, which significantly reduce environmental impact, to 60% of total Fujifilm Group sales.

We have set following KPIs in the area for solving social issues through business activities.

• Improving access to medical services by using medical AI technologies to introduce our products and services to all 196 countries throughout the world by fiscal 2030.

We have set following KPIs in the area for solving social issues through business activities.

• Offering 50 million people work styles that support employee productivity and creativity through solution services that bring innovation to our business.

As a result of the review, we determine that our priority issues are sufficiently valid and we should continue the same contents.

As we re-examine our priority issues at least every three years by establishing for medium-term management plan, we will work on group-wide activities for achievement of SVP 2030.