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 first process in identifying materiality is to determine the basic policy on future CSR activities, focusing on CSR-related developments in society, the state of activities as it relates to the philosophy and the basic policies of the Fujifilm Group and business developments.

Under SVP 2030, our current CSR plan, the objective was to identify our vision as a global corporation by capturing what contribution we can make to resolving social issues from a long-term perspective. SVP 2016, our previous CSR plan, identified the relationship between business development and company-wide action to resolve issues in society as opportunities for business growth. The difference in SVP2030 from the previous CSR plan is that it identifies a clear vision for the entire Group, positions the medium-term management policy as its action plan and defines the direction of evolution as a global company with the focus on social issues.

Although this basic policy remains unchanged until the target year of 2030, we will conduct reviews to examine the need for revisions when required.

Under basic policies, we have extracted social issues related to the current and future business activities of the Fujifilm Group from a wide variety of identified global social issues.

We have listed social issues shared by the entire world, including global standards represented by ISO 26000, guidelines such as the GRI Standards, the targets of the Paris Agreement and SDGs and social issues unique to the industry. 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 were listed up as relevant social issues.

In addition, we have examined these social issues as they relate to our businesses, focusing on social and environmental changes, regulatory and policy directions, the demands of stakeholders in the business areas that are linked or likely to be linked in the future.　When SVP 2030 was established, the number of issues totaled roughly 300 items.

The social issues that have been extracted are prioritized to determine which will have a significant impact on our business activities by studying the social demands for our Group and the degree that an issue affects our business operations. 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).

Using the results of our identification and assessment of medium- to long-term risk and opportunities (please refer to Medium- to Long-Term Risks/Opportunities and Materiality in our Integrated Report 2023), we define plans and targets for the priority issues extracted in Step 3 in cooperation with the relevant business divisions of the operating companies working on these issues. The plans and targets are examined 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.

Coordinated with the development of each medium-term management plan, priority issues are reviewed at regular intervals, at least once every three years, implementing changes as needed.

When establishing VISION 2023, our medium-term management plan that sets fiscal 2023 as the goal, CSR Plan SVP 2030 was also reviewed from fiscal 2019 to fiscal 2020. As a result of the review, we have updated some of our targets under “Environment” to make it more challenging and defined some new targets. Under “Health” and “Work Style,” new KPIs were established for priority issues designed to contribute to resolving social issues through our business activities. Additionally, through reviewing our targets, the environmental target for reducing our CO₂ emissions was raised to achieve 1.5°C target in December 2021.

Furthermore, we have used the SDG Compass has been used as a reference under “Environment,” where there are many issues requiring urgent global action, to organize and map the risks and opportunities in the environment and society on our value chain.

• * 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.

Priority issues were reviewed in fiscal 2019 to 2021. We have been reviewing them again after fiscal 2023.

We revised some targets to make them more challenging and added some new targets.

Biodiversity, an issue that has attracted international interest in recent years, is an environmental issue that is highly regional in character as opposed to climate change. In view of the vital importance of water in the operation of our business sites, we have added biodiversity conservation as a priority issue in SVP 2030. We plan to promote activities with the focus on water and business operations. (Concrete numerical targets are scheduled to be defined by the end of fiscal 2024.)

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.

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