INDEX

1. Overview

4

1.0 About Management Performance4

1.1 Fujifilm Group Organization Overview

5

1.2 CSR Management

7

1.2.1
1.2.2

Basic Approach
Philosophical Concepts and Related Policiesof the Fujifilm Group

7

1.2.3
1.2.4
1.2.5
1.2.6
1.2.7

7

CSR Management System
8
Relationship between CSR Planning andManagement Planning
8
Communication with Stakeholders
8
Background of CSR Planning and Process for
Identifying Materiality
10
The CSR Plan of the Fujifilm Group
Sustainable Value Plan 2030 (SVP 2030)
122. Governance
2.1 Corporate Governance
2.1.1
2.1.2

23
23

Basic Approach
Corporate Governance andGoverning Structure
Independence of Outside Directors
Diversity among Directors
Effectiveness of Directors
Assessment Results of
Directors’ Effectiveness
Executive Compensation
Owning Company Stocks by the Directors
Tax Policy

23

2.2 Compliance and Risk Management

28

2.1.3
2.1.4
2.1.5
2.1.6
2.1.7
2.1.8
2.1.9

2.2.1
2.2.2

Basic Approach
History of the Measures Implemented forCompliance and Risk Management
2.2.3 Compliance and Risk Management
Promotion Structure
2.2.4 Outline of the activities
2.2.5 Compliance Education
2.2.6 Compliance Awareness Survey
2.2.7 Corruption (Bribery) Prevention Efforts
2.2.8 Anti-competitive Practice Prevention Efforts
2.2.9 Export and Import Control
2.2.10 Whistle-Blowing Office andConsultation Office

23
24
24
24
25
25
27
27

28
28
29
30
31
31
32
32
32

2.2.11 Information Security
2.2.12 Protection of Privacy
2.2.13 Preparations for Large Scale
Natural Disasters

33
33

2.3 Innovation Management34

2.4 Supply Chain Management

35

2.4.1
2.4.2
2.4.3
2.4.4
2.4.5
2.4.6
2.4.7
2.4.8
2.4.9

Basic Approach
Procurement Policy and Structure (Overview)
Fujifilm Group Production and Procurement
Characteristics
Supplier Code of Conduct
Efforts for Improving Sustainability in
the Supply Chain
Response to Conflict Minerals
Efforts in Paper Procurement
Ethical Procurement Efforts in Logistics
Collaboration with International Initiatives in
the Supply Chain Area

2.5 Customer Relationship Management
2.5.1
2.5.2
2.5.3

Basic Approach for Customer Relationship
Structure for Customer RelationshipEfforts in Customer RelationshipManagement

3.2 Climate Change Strategy

36
37
38
39
40
40
40

41
41
41
42

44

3.1 Environmental Policy and Management
System44
Basic Approach
Environmental Management
EMS: Certification/Audit/Verification
Response to Environmental Laws andRegulations

35
35

32

3. Environmental Aspects
3.1.1
3.1.2
3.1.3
3.1.4

33

44
44
47
47

3.2.1
3.2.2
3.2.3
3.2.4
3.2.5
3.2.6

Basic Approach
Major Activities
Strategy and Management for the Climate
ChangeData Related to Climate Change Measures
Energy Consumption
Products Responding to Climate Change

49
49
50
51
53
53

49
FUJIFILM Holdings Corporation Management Report 20192

INDEX

3.3 Recycling of Resource
3.3.1
3.3.2
3.3.3
3.3.4

Basic Approach
Response to Water Risks
Measures to Reduce Waste
Improve the Efficiency of Resource Use

3.4 P roduct Stewardship (Design forEnvironment)
3.4.1
3.4.2
3.4.3
3.4.4

54
54
54
56
57

58

Basic Approach
58
Standards of Design for Environment
58“Green Value Products” Certification Program– A New System to Create Environmentally
Conscious Products
58
Result of Design for Environment
59

3.4.5

Disclosing Environment-Related Information
for Products

60

3.5 Management of Chemical Substance

61

3.5.1
3.5.2
3.5.3
3.5.4
3.5.5
3.5.6
3.5.7

Basic Approach
61
Management of Chemical Substance61
Safety Evaluation
61
Promotion of Non-Animal Testing
61
Management of Chemical Substances in
Products
61
Efforts in Hazardous Substance Management 62
Perfluorocarbons (PFC) Emissions/ Volatile
Organic Compounds (VOC) Emissions62

3.6 Biodiversity Conservation

4. Social Aspects
4.1 Employee Overview
4.1.1
4.1.2

Basic Approach on Activities for Employees
Basic Data

4.2 P
 romotion of Diversity and Equal
Opportunities for Employees
4.2.1
4.2.2
4.2.3

67
67
67
67

70

Basic Approach
Activities to Promote Diversity
Freedom of Association

70
70
71

4.3 Health and Safety for Employees

73

4.3.1
4.3.2
4.3.3

Basic Approach
Promotion System and Activities
Progress and Results

73
73
74

4.4 Human Resource Development for
Employees/Talent Attraction andRetention

75

4.4.1
4.4.2
4.4.3

Basic Approach
Human Resource Development Programs
Performance Appraisal

75
75
76

5. Sustainability Accounting
5.1.1
5.1.2

Labor Environment and Social Benefit
Accounting
Environmental Accounting

6. Independent Assurance Report

65

4.4.4

Employee Engagement

4.5 Human Rights
4.5.1
4.5.2
4.5.3
4.5.4
4.5.5
4.5.6

77

Basic Approach
77
Human Rights Due Diligence Process
77
Priority Human Rights Issues to Be Addressed(Identified Human Rights Risks)
77
Prevention and Mitigation of Adverse
Impact on Human Rights and Progress
79
Grievance Mechanism on Human Rights
81
Collaborative Initiatives Regarding
Human Rights
81

4.6 Corporate Citizenship
4.6.1
4.6.2
4.6.3
4.6.4
4.6.5

76

82

Basic Approach
82
Major Examples of Social Contribution
through Business Activities
82
Social Contribution Activities Continued by the
Fujifilm Group
83
Results of Social Contribution
83
Efforts to Assess the Impact on Society
and the Environment
84

88
88
89

91

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Overview

1.0 ｜ About Management Performance

1.0 About Management Performance
FUJIFILM Holdings Sustainability Report 2019—Management Performance introduces our basic approach, promotion systems
and an overview & results for each of the activities that corporations are expected to engage with by society. To make it simple
and easy to understand, it shows the series of basic results from the ESG point of view, including Governance, Environmental
Aspects and Social Aspects.
Please see the full report on the management performance in Sustainability Report 2019 at:
URL: https://www.fujifilmholdings.com/en/sustainability/data/index.html

In 2017, we established the Fujifilm Group’s CSR Plan, “Sustainable Value Plan 2030 (SVP2030)” to resolve CSR issues thatwere given high priority by both the Fujifilm Group and its stakeholders. Now we are implementing the activities along with thePlan. We will prepare a separate report, FUJIFILM Holdings Sustainability Report 2019—SVP Stories, to introduce the progressof our activities in fiscal 2018. Please refer to SVP Stories together with this Management Performance.

• Period covered by the report
FY2018 (April 1, 2018—March 31, 2019) is covered in the performance data.
With regards to the contents of activities, wherever possible, we have conveyed the most recent trends, including activities in
FY2019.

• Organizations covered by the report
The Fujifilm Group (FUJIFILM Holdings, and all the consolidated companies)
Major consolidated companies are shown on our website.

URL: https://www.fujifilmholdings.com/en/business/group/index.html• Date of publication (Management Performance)
June 2019 (next report: June 2020, previous report: September 2018)• Referenced guidelines· J apan’s Ministry of the Environment: Environmental Reporting Guidelines (2018 Version)·G RI: The GRI Sustainability Reporting Standards· J apan’s Ministry of the Environment: Environmental Accounting Guidelines (2005 Version)· ISO 26000: Social Responsibility• Supplemental information regarding reported matters· The term “employees” refers to all employees, including managers, general employees, and part-time staff. The term“company employees” indicates employees (full-time staff). To further ensure the accuracy of the report, the terms “regular
employees” and “non-regular employees” (temporary staff, part-time staff, others) have been used separately as required.

FUJIFILM Holdings Corporation Management Report 20194

Overview
1.1 ｜ Fujifilm Group Organization Overview

1.1 Fujifilm Group Organization Overview
The Fujifilm Group, runs wide ranging businesses utilizing the technologies based on advanced silver halide photography.
We are improving our fundamental technologies that are the base of our business and exclusive core technologies thatdifferentiate us in terms of sustainable superiority. Combining those technologies, we are able to offer a diverse range of
products and services.
To celebrate the 80th anniversary in 2014, we established our new corporate slogan, “Value from Innovation,” which seeks
to continue creating new technologies, products and services that inspire and excite people everywhere, and empower the
potential and expand the horizons of tomorrow’s business and lifestyle.
We continue to deliver new value through our business operations and technologies aiming to resolve social issues under
the sprit of our corporate slogan: “Value from Innovation.”
Holding Company: FUJIFILM Holdings Corporation
Company name:
Representative:
Head office:Established:
Capital:Employees:
Consolidated employees:
Consolidated subsidiaries:

FUJIFILM Holdings Corporation
Shigetaka Komori
Tokyo Midtown, 9-7-3 Akasaka, Minato-ku, Tokyo 107-0052, Japan
January 20, 1934
¥40,363 million (as of March 31, 2019)234 (as of March 31, 2019)72,332 (as of March 31, 2019)279 (as of March 31, 2019)

Proportion of Consolidated Employees by Region (FY2018)

(as of March 31, 2019)Japan

The Americas

EuropeAsia and others

51%

9%

6%

34%

Fujifilm Group Organization Overview
FUJIFILM Holdings Corporation

Holding company
Operating companies

Shared service company

100％

75％

100％

100％

FUJIFILM Corporation

Fuji Xerox Co., Ltd.

FUJIFILM Business
Expert Corporation

FUJIFILM Intellectual
Property Research Co., Ltd.

Subsidiaries

Subsidiaries

For information about the consolidated subsidiaries of FUJIFILM Holdings Corporation, please visit:https://www.fujifilmholdings.com/en/business/group/index.html

Consolidated Revenue/Consolidate Operating Income

Unit: billions of yen

FY2014FY2015FY2016FY2017FY2018

Consolidated revenue

24,926

24,604

23,222

24,33424,315

Consolidate operating income

1,724

1,806

1,723

1,233

2,098

Proportion of Consolidated Revenue by Region (FY2018)Japan

The Americas

EuropeAsia and others

41.4%

19.1%

13.0%

26.5%

FUJIFILM Holdings Corporation Management Report 20195

Overview
1.1 ｜ Fujifilm Group Organization Overview

Proportion of Consolidated Revenue by Operating Segments (FY2018)
Imaging Solutions

Healthcare & Materials Solution

Document Solutions

16%

43%

41%

Imaging Solutions
Photo Imaging

Optical Devices and Electric Imaging

67%

33%

Proportion of revenue bybusiness (FY2018)

Unit: billions of yen

FY2016FY2017FY2018

Consolidated revenue*

3,418

3,830

3,869

Consolidate operating
income

368

558

511

Healthcare & Materials Solution

Proportion of revenue bybusiness (FY2018)

Healthcare

Graphic
Systems/
Ink JetIndustrial
Products/
Electronic
Materials, etc.

Display
Materials

RecordingMedia

Others

47%

23%

17%

9%

3%

1%



Unit: billions of yen

FY2016FY2017FY2018

Consolidated revenue*

8,995

10,026

10,390Consolidate operating
income

830

914

976

Document Solutions

Proportion of revenue bybusiness (FY2018)

Office Products/
Office Printers

Production Services

Solution Services

Others

57%

12%

26%

5%



Unit: billions of yen

FY2016FY2017FY2018

Consolidated revenue*

10,80910,47810,056

Consolidate operating
income

827

84

964

* The figures in the financial results for FY2018 have been revised according to changes in the presentation of the net periodic pension cost and net
periodic postretirement benefit cost following the change of US GAAP.

FUJIFILM Holdings Corporation Management Report 20196

Overview

1.2 ｜ CSR Management

1.2 CSR Management
1.2.1 Basic Approach
The Fujifilm Group’s business originated with photographic film, a product for which lots of clean water and fresh air are
essential to the manufacturing process. It is also a product which requires customers to “buy on trust,” since they cannot try it
out beforehand. Thus, for the Fujifilm Group, an approach which emphasizes environmental conservation and maintaining thetrust of stakeholders has been a major premise at the very foundations of our business activities. This approach is the starting
point for our corporate social responsibility (CSR) activities and continues to be passed down within our Group, as the Fujifilm
Group’s “DNA.”

1.2.2 Philosophical Concepts and Related Policies of the Fujifilm GroupFujifilm Group established the Fujifilm Group Corporate Philosophy and Vision following the shift to a holding company
structure in 2006. Founded on the spirit of contribution to advancement of society, improved health, environment protectionand enhancement of the quality of life of people, by providing top-quality products and services with open, fair and clear
workplace culture and leading-edge, proprietary technologies, we have established the Fujifilm Group Charter for Corporate
Behavior and the Fujifilm Group Code of Conduct and implement them thoroughly throughout the Group. To ensure awarenessand implementation by all employees, we established the Fujifilm Group’s Approach to CSR in 2006 and updated it in 2014
in step with social changes. Seven additional policies (environmental, social contribution, biodiversity, procurement, quality,
occupational health and safety and global security trade and control) have been established to promote activities.

The Fujifilm Group’s Approach to CSR
The Fujifilm Group’s approach to corporate social responsibility is to contribute to the sustainable development of society
by putting our Corporate Philosophy into practice through sincere and fair business activities.
We will not only fulfill our economic and legal responsibilities,
but also:
1. endeavor to understand global as well as local environmental and social issues and create value to address theseissues through our business activities.
2. continue to evaluate the environmental and social impact of our business activities and strive to improve theperformance while increasing our positive impact on society.
3. constantly reassess whether our activities are responding adequately to the demands and expectations of society
through proactive stakeholder engagement with our stakeholders.
4. enhance corporate transparency by actively disclosing information.
Revised in February 2014
Fujifilm Group Corporate Philosophy/Vision (full text)
Fujifilm Group Charter for Corporate Behavior (full text)
Fujifilm Group Code of Conduct (full text)

URL: https://www.fujifilmholdings.com/en/about/philosophy/index.html
URL: https://www.fujifilmholdings.com/en/about/philosophy/conduct/index.html
URL: https://www.fujifilmholdings.com/en/about/philosophy/law/index.html

Fujifilm Group Corporate Philosophy and Vision
Fujifilm Group Charter for Corporate Behavior and Code of Conduct
CSR-Related Policies in the Fujifilm GroupThe Fujifilm Group’s Approach to CSR

Human Rights Statement

Green Policy (Environmental Policy)

Social Contribution Policy

Guidelines for Biodiversity

Procurement Policy

Revised April 2019

Revised April 2019

Revised April 2019

Revised April 2019

Quality Policy

Occupational Health and Safety Policy

Global Security Trade Control Policy

Requests to Suppliers

Revised April 2019

Revised April 2019

Adopted May 2015

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Overview

1.2 ｜ CSR Management

1.2.3 CSR Management System
The Fujifilm Group’s CSR Promotion System
The Fujifilm Group established the ESG Committee (reorganized from CSR committee in June 2019) chaired by the Presidentof FUJIFILM Holdings. The Committee takes decisions on the important matters relating to the CSR activities of the entire
Group. The ESG Division of FUJIFILM Holdings, which is the Secretariat of the ESG Committee, is responsible ensuring
rigorous CSR management by the Fujifilm Group. The Division considers the priority issues for the entire Group, discloses
information outside, communicates with stakeholders, supports the CSR activities of Group companies, audits the CSR
activities of the entire Group, and operation of the whistle-blowing offices.
FUJIFILM Holdings Corporation[Function of ESG Division of FUJIFILM Holdings]● ESG Committee Secretariat● Activity promotion across the entire Fujifilm GroupESG Committee
Deliberation and decision of important matters relating to the CSR activities of the Fujifilm Group
Chairman: President of FUJIFILM Holdings
Secretariat: ESG Division of FUJIFILM Holdings• Apply policies and strategic objectives (determined by the ESG
Committee across the entire Fujifilm Group)• Implement and manage progress of priority issues andinitiatives as determined by the ESG Committee across the
Fujifilm Group• Support the Fujifilm Group’s CSR activities (collect informationand conduct analysis and evaluation)• Promote public information disclosure and dialogues withstakeholders● Consultation Offices for the entire Fujifilm GroupOperating Companies[Function of ESG department of the operating companies]

FUJIFILM Corporation

Fuji Xerox Co., Ltd.

ESG department of the operating companies

To fulfill our CSR:
● Formulate and implement CSR activity plan
● Ensure thorough compliance and conduct risk
management● Promote communication with stakeholders● Report CSR measures to FUJIFILM Holdings’ ESG
Committee

Effective Management System
We implement IMS* across our seven business organizations to promote activities aimed at improving customer satisfaction.
(For our environmental management system, please refer to 3.1. Environmental Policy and Management System.)* Integrated management system (IMS): Management system integrating an environmental management system (EMS), quality management system(QMS), occupational health and safety assessment system (OHSAS) and information security management system (ISMS).
URL: https://www.fujifilmholdings.com/ja/sustainability/vision/activity.html* Acquisition of ISO & OHSAS
URL: https://www.fujifilm.co.jp/corporate/environment/governance/isoohsas.html
Fujifilm
URL: https://www.fujixerox.co.jp/company/eco/internal/iso14001/all.html
Fuji Xerox
		
https://www.fujixerox.co.jp/company/news/release/2016/001260

1.2.4 Relationship between CSR Planning and Management Planning
Under our corporate slogan “Value from Innovation,” our targets for contributing to building a sustainable society that complies
with SDG's were announced in our Long-Term CSR Plan SVP2030 toward fiscal 2030 in July 2017. Our Medium-Term
Management Plan VISION 2019 sets out the concrete business strategies to achieve these targets.

1.2.5 Communication with Stakeholders
Companies conduct their activities while interacting and maintaining
relations with a wide variety of stakeholders, and it is important to listen
carefully to their various views and expectations. At the Fujifilm Group,
we ensure that we make appropriate information disclosures as well asverifying, at various opportunities, whether or not our business activities
are responding to the demands and expectations of all our stakeholders,
and reflecting our findings in our business activities. To ensure that our
stakeholders’ views are reflected in our CSR activities, we also review themin our Sustainability Report.
In addition to opinions relating to our CSR activities as a whole,regarding priority issues such as “Environment,” “Work Style,” etc., we
conduct individual briefings on the content of the activities to external
parties, to receive their advice and evaluation.* Looking back over ouractivities and obtaining the views of external parties in this way provides agood opportunity to reexamine our activities.

Industrial
associations
Governmentorganization
Business
partners

Transaction
partners

Suppliers

Shareholders
andinvestors
Customers

Employees

Fujifilm Group

Futuregenerations

Local
communities

MarketSociety (local and global)

NPOs/NGOs

Environment

FUJIFILM Holdings Corporation Management Report 20198

Overview

1.2 ｜ CSR Management

The Fujifilm Group’s Communications with Stakeholders
Main stakeholders

Customers

Employees

Shareholders& investors

Transaction
partners

Futuregenerations& localsocieties

We have a diverse range of• Securing the safety andcustomers, from individuals,
quality of products
businesses, corporations to• Design for Environment
government offices, etc., since• Provision of appropriate
we have business deployed all
information on services
over the world, and we offer& products
such a wide lineup of products,• Improvement ofranging from digital cameras
customer satisfaction
and cosmetics to office printers,levelsmedical systems, medicine, highly• Customer response &functional materials and equipment
supportand materials for graphic arts.

Methods of communication• Day-to-day• Usability evaluation meetings and monitor surveys• As needed• Customer satisfaction surveys• As needed• Questionnaires at product purchase• Day-to-day• Showrooms, exhibitions• As needed• Holding seminars• As needed• Websites and social media• As needed• Providing opportunities for dialogue with top
management• As needed• Ensuring occupational
health and safety• Personnel management division liaison & interviews• Respect for humanrights• Compliance & Sexual Harassment Helpline• Utilization and training of
human resources• Regular meetings between the company and labor• Respect for diversity
unions/Health & Safety Committee

FUJIFILM Holdings has 97,838
shareholders, characterized by ahigh proportion of overseas andinstitutional investors. Japanesefinancial institutions account for
33.0% of our shareholders, while
foreign companies constitute
29.5% (as of end-March 2019).

• Maintenance andexpansion of corporate
value• Appropriate
redistribution of profits• Timely & appropriate
information disclosure• Measures for Socially
Responsible Investment(SRI)

The Fujifilm Group conducts
transactions worldwide with
suppliers of raw materials andcomponents and retailers of our
products, etc.

• Thoroughimplementation of
fairness & transparency
in transactions• Promotion of CSR
issues in the supply
chain, such as
human rights and theenvironment

The Fujifilm Group has bases inapprox. 40 countries across theworld and conducts its activities
by treating the local culture andcustoms with respect, as well as
putting efforts into educational
support for future generations.

We are conducting dialogues with • Dialogue, collaborationand support aimed at
NGOs & NPOs who are actively
aiming for a sustainable society, for the resolution of socialand environmental
the resolution of social issues andissuesenvironmental conservation.

• Day-to-day/
As needed• Day-to-day• As needed• Intranet; in-house magazines• Day-to-day• General shareholders meetings/Business reportbriefings/Briefings for investors• Once a year/
4 times a year/
As needed• IR conferences/Individual meetings• As needed• Integrated reports/Shareholder communications• As needed• IR information website• Day-to-day• Liaison office for responding to inquiries• Day-to-day• Briefings to suppliers (on CSR procurement including
green supply, management of chemical substances • As needed
contained, etc.)• CSR Self-Check (self-audited) and Onsite “Visit andCheck” by expert team• As needed• Website for exclusive use of transaction partners• Day-to-day• Regular discussions with partners• As needed• Liaison office for responding to inquiries (in eachprocurement and sales division)• Day-to-day• Environmental communication meetings/Factory• Contribution activities
tours
which make use of ourmain business strengths • Community volunteer activities• Respecting local• Regular discussions with local governments (cityculture & customs
hall, mayor, community association presidents, etc.)
and environmental
conservation• Liaison offices (at each factory & office)• Prevention of fires
and accidents in the• Dispatch of lecturers to the academic organization &workplaceendowed chairs• Educational support for•Environmental education activities in cooperation
future generations
with NGOs & NPOs

• Legal compliance• Joint research &development andcooperation in public
policy aimed at theresolution of social
issuesFrequency• Customer Center (liaison office for responding toinquiries)

Employees working for the Fujifilm
Group total approx. 80,000 people
in 279 companies. They are
active all over the world and theircomposition by country is Japan
51%, the U.S. 9%, Europe 6% andAsia 34% (as of end-March 2019).

The Fujifilm Group has businesses
in countries all over the world.
Government Each of these businesses belongs
several industrial associationsorganizations toand has active relations with& industrial
the respective government
associations organizations, including
participating in collaborations
and information exchanges, etc.

NGOs &
NPOs

Main issues
and areas of
responsibility• As needed• As needed• As needed• Day-to-day• As needed• As needed• Participation in various industrial committees• As needed• Participation in the development of industry
guidelines• As needed• Announcement of public comments through industry• As needed
associations• Joint research & development of government or
industry association• As needed• Proposals aimed at the resolution of social issues• As needed• Obtain views on the Sustainability Report• As needed• Participate in stakeholder dialogue• As needed• Administration committee of Public Trust Fujifilm
Green Fund• As needed• Review meetings on various CSR issues• As needed• Afflicted area support activities with NPO• As needed

FUJIFILM Holdings Corporation Management Report 20199

Overview

1.2 ｜ CSR Management

1.2.6 Background of CSR Planning and Process for Identifying Priority Issues (Materiality)
Social Background and Basic Approach
In recent days, international long-term targets such as Sustainable Development Goals (SDGs*1) and the Paris Agreement*2
have been announced in the drive to resolve social issues. In particular, expectations are growing for the role of companies
as players in resolving social issues and building a sustainable society. In view of these developments, the SVP 2030 has set
as its long-term goal for FY2030 to contribute to achieving the goals for resolving global social issues set by SDGs, the Paris
Agreement, etc.
*1 SDGs (Sustainable Development Goals): Goals in sustainable development adopted by the United Nations General Assembly in 2015, to beaddressed as social issues by the international community until 2030. There are 17 goals and 169 targets established to address the issues ofpoverty, inequality and injustice, health, education, fulfillment in work, climate change and the environment, etc.
*2 P aris Agreement: International, multilateral agreement on arresting climatic changes that was adopted by The 21st Session of the United Nations
Framework Convention on Climate Change Conference of the Parties (COP 21) held in Paris in 2015. The Agreement calls for holding the global
temperature rise to less than 2°C over the level before the Industrial Revolution.

Process for Identifying Materiality (Priority Issues)[STEP 1] Clarifying the Basic Policies
In addition to the review of CSR activities under SVP 2016, issues that should take priority in SVP 2030 were identified withattention given to global developments in response to climate change, etc. As a result of the review, the perspective adopted in
SVP 2016 to make company-wide efforts to solve social issues as opportunities for business growth was upgraded to clearlyspecify a future vision from the long-term perspective on contributions to resolving social issues as a global company and was
adopted as the basic policy.

The 1st Medium-Term CSR Plan
FY2007-2009

The 2nd Medium-Term CSR Plan

The 3rd Medium-Term CSR PlanSVP 2016

FY2010-2013

SVP 2030

FY2014-2016

FY2017-2030

l Continue to promote measures forthe two aspects of resolving social
issues through business andreducing the negative impact ofour business activities in society

Maintain & reinforcel Thorough implementation ofsound corporate
governance and compliancel Reduction of impact onenvironment and societyl Across the value chain,product lifecycles, andworld-wide viewpointl Solve social issues throughbusiness activities actively

Taking responsibility as acorporate citizen by legal
compliance

Expand the scope as a global
corporation

Company-wide efforts to solve
social issues as opportunities
for business growth

Have a long-term perspective tocontribute to resolving social issues
as a global company and show the
future vision clearly[STEP 2] Extracting Social Issues Based on Business Strategy
In identifying social issues, roughly 130 items listed from various indexes such as ISO 26000 and GRI Guidelines/Standards
were combined from the standpoint of social issues to be addressed from a long-term perspective, including the goals of
the Paris Agreement and the 169 targets under the SDGs. Also, the possibility of contributing to resolving social issues was
discussed with all business divisions to identify relevant products, technologies, and services in these divisions.
* Study of priority issues based on the SDG Compass from viewpoints of both the negative impacts from business processes andthe positive
impacts from social contribution through business
Main CSR Issues (PDF)

URL: https://www.fujifilmholdings.com/en/sustainability/svp2017/process/pack/pdf/main_CSR_Issue_en.pdf

FUJIFILM Holdings Corporation Management Report 201910

Overview

1.2 ｜ CSR Management[STEP 3] Evaluation of Materiality
Evaluation adopted the approaches both of resolving social issues through business and reducing the social impact ofbusiness activities in society.
1. Resolving social issues through business
Fujifilm’s products, technologies and services that show the potential of resolving social issues and the social issues wereorganized in a matrix diagram. Based on the diagram, the possibility of contributing to solving social issues and the scale ofthe impact on society were evaluated, and the social issues that must be prioritized by our company were identified.
2. Reduction of the impact of our business activities
With the participation of the CSR specialist E Square, the social issues identified were evaluated from a social perspective(how important society perceives the issue and what it demands of the Fujifilm Group) and our company perspective (impact
on business strategy, brand and reputation) and were mapped on five levels. Issues that were rated four or higher on bothsides were organized and reexamined in expressions suitable for the Group’s measures on the issues and were defined aspriority issues.
Impact on Business Processes across the Value Chain (Ex. Environment)
R&D/Manufacturing

Negative impacts(environmental impacts)

Positive impacts(contributions)

Procurement

Transportation

Use

Disposal/Recycling

Design for the Environment

Products with reduced
CO2 emissions

Resource recovery(recycling)

Environmental response knowhow(for entire Life Cycle)

Products with reduced
water consumption

Conversion into
valuable resources
Recycling knowhow

Other products related tothe environment & social issues
CO2 emissions fromraw materials (AL)CO2 emissions
from transportation

CO2 emissions frommanufacturing and R&D

Electric power consumed during
product use (CO2 emissions)

CO2 emissions
from incineration

Wastewater released
during product use

Waste liquid treatment(recycling)

Wastewater released
during manufacturing
Chemical substances(management)
Air-pollution substances released* Study of priority issues based on the SDG Compass from viewpoints of both the negative impacts from business processes and the positive impacts from social contribution through business

Matrix on Social Issues and Fujifilm Group’s Products, Services, and Technologies/Materiality Mapping for Extracting Priority Issues
Social issues

Medicalfunctional Document
Pharmaceuticals Highly
materials
solutions

Reduce CO2 emissions

●●

●●●●●

●●●●

Energy issues

●

●●●

●●●

・・・・・
・

●●

●

Exhaustion of resources

●

●●

・・・・・
・

●

●●

Improve accessibility to medical services●●●●●

Identify diseases at an early stage

●●●●●

・・・・
・

●●

●●●

Reduce doctor’s burden

●●

・・・・
・

●

●

●

Daily Life

Enrich humanity and relationships
Create a safe and secure society

●●●

・・・・
・

●

●●

●●●●

●

●

Materiality Mapping for Extracting Priority Issues

5
4

●

3
2
1

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● ● ●

●

●

●

1

●

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●
●

●

●

● ●
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●

2

●

● ● ● ●
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● ● ● ●
● ●
● ● ●
● ● ●
●

3

●

●

●

●

●

● ●●
●

●

4

5

Materiality for Fujifilm Group

●

・・・・
・

Work
Style

・
・
・
・

Social interests and requests

HealthEnvironment

Business
fields●Promote communications●●●

Promote diversity

●●

・・・・
・

●

● 推進方針1関連項目 ● 推進方針2関連項目 ● 推進方針3関連項目 ● その他

●

・
・
・
・
・

[STEP 4] P lanning and Review
For each priority issue defined, relevant business divisions at operating companies that had introduced measures on theissue took the initiative in studying the indicators for promoting progress toward the long-term goal, and for environmental
issues on a global scale, definitions of the numerical targets for the year 2030. Priority issues of SVP 2030 were finalized
in the deliberations by the CSR Committee (present ESG Committee), headed by the President of FUJIFILM Holdings. For
achievement of SVP 2030, we will re-examine our group-wide activities through PDCA every three years by planning for
medium-term management reform.

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Overview

1.2 ｜ CSR Management

1.2.7 The CSR Plan of the Fujifilm
Group Sustainable Value Plan
2030 (SVP 2030)

Realization of a
Sustainable Society

Value from Innovation

The Fujifilm Group announced its Sustainable Value
Plan 2030 (SVP 2030) in August 2017. The new plan sets
itself apart from previous medium-term CSR plans incharacteristically targeting FY2030 as its longterm goal,
which is expected to lay the foundations of the Group’sbusiness management strategies for sustainablegrowth.
Under SVP 2030, the Fujifilm Group will introduce
further measures to resolve social issues through ourbusiness activities, including the launch of innovative
products, technologies and services, in our aim todevelop into a company that can make a greater
contribution to creating a sustainable society.

FUJIFILM
Sustainable Value Plan 2030

Environment
HealthDaily Life
Work Style

Supply Chain
GovernanceBusiness Fields
Imaging
Solutions

Healthcare& Materials
Solutions

Document
Solutions

Corporate CodeCorporate Philosophy / Vision / Code of Conduct

SVP 2030 Priority Area/Priority Issues (Materiality)

Solving social issues throughbusiness activities

Conscious on environmental
and social impact within
business processes

Contribution (Opportunities)

Impact (Risks)

1. Address climate change
2. Promote recycling of resources
3. Address energy issues toward a non-carbon
society.
4. Ensure product and chemical safety.

●
●
●

●
●

●

●

1. Fullfill unmet medical needs.
2. Improve accessibilities to medical services.
3. Contribute to identifying diseases at an earlystage.
4. Contribute to health promotion and beauty.
5. Promote management of a healthy workplace.

●●●

Daily Life

1. Contribute to creating a safe and secure society.
2. Contribute to enriching humanity andrelationships between people.

●●

Work Style

1. Create environments that lead to motivatedworkplace (provide solution services).
2. Develop and utilize diverse human resources.

●

Supply Chain

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

GovernanceImprove and maintain governance structures by further disseminating an open, fair and clear corporate culture.

Environment

Health●Fujifilm Group’sContribution to SDGs

● (Employees)● (Employees)● (Employees)

Base for business activities

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Overview

1.2 ｜ CSR Management

Targets and Results of SVP2030
Environment: Reduce our own environmental impacts and contribute to the resolutionof environmental issues.
[Priority Issue 1] Address climate change.
Relation to business
Target for 2030

Relation to business (Medium-Term
Management Plan VISION 2019)

Influence on sales, costs,
risk and opportunities

Impact on the company’s
operation

Risks, costs(1) R educe the Fujifilm Group’s CO2 emissions by 30% by FY2030 (compared to
the FY2013 level).

• Recording Media• Graphic Systems• Document Solutions

Opportunities,
revenues(2) C ontribute to a reduction in the CO2 emissions generated by society by 50
million tons by FY2030.

Progress (FY2018)(1) CO2 emissions in FY2018: 22% reduction(2) CO2 Emission Size of Contribution in FY2018: 9.1 million tons (The achievement rate: 18%)

Future Activities and Targets• Further disseminate and enhance energy-saving measures at production sites.
• Seek the further opportunities and actual utilization to achieve renewable energy usage targets (Procuring renewable energy-derived electricity andinstallation of renewable energy facilities).
• Promote creation of environmentally conscious products through the “Green Value Products” Certification Program.

[Priority Issue 2] Promote recycling of resources
Relation to business
Target for 2030

Relation to business (Medium-Term
Management Plan VISION 2019)

Influence on sales, costs,
risk and opportunities

Impact on the company’s
operation

Risks, costs(1) R educe the amount of water the Fujifilm Group uses for production by 30% by
FY2030 (compared to the FY2013 level).

Opportunities,
revenues(2) C ontribute to the treatment of 35 million tons of water per year in society by
FY2030.

Risks, costs(3) Reduce the amount of waste generated by the Fujifilm Group by 30% by
FY2030 (compared to the FY2013 level).

Risks, costs(4) Improve the efficiency of the Fujifilm Group’s resource use per unit ofproduction by 30% by FY2030 (compared to the FY2013 level).

• Graphics• Inkjet Printers• Industrial Products

Progress (FY2018)(1) Water usage in FY2018: 15% reduction(3) Waste generation in FY2018: 5% increase(2) Water treatment contribution in society in FY2018: 8.7 million tons/year(4) Resource usage per unit in FY2018: 28% improvement

Future Activities and Targets• Continue stable reduction measures suited each region and site.

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Overview

1.2 ｜ CSR Management[Priority Issue 3] Address energy issues toward a non-carbon society.
Relation to business
Relation to business (Medium-Term
Management Plan VISION 2019)

Influence on sales, costs,
risk and opportunities

Impact on the company’s
operation

Risks

Target for 2030

Contribute to the creation and widespread use of renewable energies throughhighly functional materials.

Progress (FY2018)• Participated in an industry, government, and academia project hosted by the New Energy and Industrial Technology Development Organization(NEDO) to develop the all-solid-state lithium-ion batteries, the next-generation storage batteries for electric vehicles, as one of 23 companies, including
automobile and battery manufacturers.
Future Activities and Targets• We will continue participating in the NEDO activities and R&D collaborating with other companies.

[Priority Issue 4] Ensure product and chemical safety.
Relation to business
Relation to business (Medium-Term
Management Plan VISION 2019)

Influence on sales, costs,
risk and opportunities• Fine Chemicals

Revenues, costs, risks,
opportunities

Target for 2030

Minimize adverse effect on chemical substances on human health and theenvironment.

Progress (FY2018)• Completed the review of chemical substances used globally in products according to our voluntary management policy for specific chemical
substances preceding regulation in each country. Created and enforced management plans for alternatives and reduction of chemical usage andemissions.
• An alternative test method for skin sensitization test, ADRA has been adopted in OECD test guidelines 442C*. For in vitro skin corrosion tests using
3-dimensional reconstructed human epidermis model, LabCyte EPI-MODEL 24 was also adopted into OECD test guidelines 431.
• Started full-scale operation of a chemical information communication system, chemSHERPA in China.
• Started development of a safety prediction method that takes account of animal welfare.
• Started education program for reagent users concerning chemical substance handling.
*O ECD test guidelines: Guidelines specified by the Organization for Economic Co-operation and Development (OECD) to standardize testing methods to assess thecharacteristics and safety of chemical substances.

Future Activities and Targets• Further reduce usage and emissions of hazardous substances and replace them with safer alternatives based on the chemical substance management
plan.
• Complete transfer to the new version of chemSHERPA within FY2019 and utilize IT tools such as RPA to make the legal compliance system morerobust.
• Further expansion of chemical handling education program to reagent product users and improvement of internal education.
• Develop a highly accurate safety prediction method.
• Build a next-generation chemical substance management system.
• Utilize alternative methods to animal testing for internal safety evaluations.

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Overview

1.2 ｜ CSR Management

Health: Create a healthy society through the process of prevention, diagnosis andtreatment in healthcare.
[Priority Issue 1] Fulfill unmet medical needs.
Relation to business
Relation to business (Medium-Term
Management Plan VISION 2019)

Influence on sales, costs,
risk and opportunities• Pharmaceuticals• Biopharmaceuticals• CDMO• Regenerative Medicine

Revenues,
opportunities

Target for 2030

Develop and disseminate new treatments based on regenerative medicine andcell therapy.

Progress (FY2018)[Target] Develop new treatment solutions (① Regenerative medicine, ② Infectious disease treatment, ③ Central nervous system)① Autologous cultured epidermis JACE® was approved for inclusion within national health insurance coverage as regenerative care for hereditaryepidermolysis bullosa, a refractory genetic disease.

① A pplied for manufacturing and marketing approval of autologous cultured corneal epithelium (EYE-01M), the first regenerative medical product inophthalmic field in Japan.

① Received the Prize for Science and Technology under a FY2019 Commendation for Science and Technology by the Minister of Education, Culture,

Sports, Science and Technology for “Development of Autologous Cultured Epidermis.”② Obtained an imported drug license in China for the oral synthetic quinolone antibacterial agent, which is mainly for respiratory tract infections, such as

pneumonia.

② A pplied for manufacturing and marketing approval in Japan for a new antibacterial agent for treatment for infectious diseases in otorhinolaryngology,

such as otitis media and sinusitis.

② L aunched Japan’s first oral antifungal agent miconazole ORAVI® Mucoadhesive Tablets 50 mg for oropharyngeal candidiasis treatment.
③ Started the phase II clinical trials of a new drug candidate that accelerates rehabilitation after strokes.

[Target] Improve accessibility to new treatment solutions (④ Contribution through contract development and manufacturing, ⑤ Contribution through development anddissemination of products that support advanced treatments)④A
 cquired a large-scale biologics manufacturing site from a major US biopharmaceutical* company, Biogen.
④ Significantly shortened the development period of biopharmaceuticals down to 34 weeks, the shortest in the CDMO industry.
④ Developed a high-performance and highly efficient fully integrated continuous production system that controls processes from cultivation to

purification.

⑤ L aunched new product iCell® Microglia, an iPSC-derived neural cell type, contributing to new drug evaluation in human biology, mainly for drugs forneurological diseases, such as for Alzheimer’s diseases.

⑤ FUJIFILM Wako Bio Solutions Corporation, our new company, started new subcontract services in new drug development support and inspection.
*B iopharmaceuticals: Pharmaceutical products utilizing biological particles, such as proteins, that provide effects unachievable by conventional chemically synthesized smallmolecule drugs. Such biopharmaceuticals include insulin, vaccines, and antibody drugs. Antibody drugs utilize antibodies used by the immune system to protect our bodies
from abnormal organisms, such as viruses and cancer cells, by recognizing them selectively.

Future Activities and Targets• Introduce regenerative medicine products to the market, expand their application and improve contract manufacturing for these products.
• Accelerate the development of new drug pipelines.
• Expand contract manufacturing for biopharmaceuticals.
• Develop and disseminate cell culture medium or relevant manufacturing technologies that support advanced biomedical treatments (gene therapy, etc.).

[Priority Issue 2] Improve accessibilities to medical services.
Relation to business
Relation to business (Medium-Term
Management Plan VISION 2019)

Influence on sales, costs,
risk and opportunities

Target for 2030

(1) R educing burden on doctors and medical staff by utilizing IT• Medical Systems

Revenues,
opportunities(2) D evelopment and dissemination of infectious disease diagnostic system tocontribute to global health(3) Offering technical diagnosis training and spreading effective health practices
to emerging countries

Progress (FY2018)[Target] Expand and scale up AI & IoT technology to reduce burdens on medical staff• In collaboration with academia, the FUJIFILM Creative AI Center, “Brain(s)”was established as a dedicated research center to foster next-generation AI
technologies that can help resolve social issues, including health problems (October 2018).
• Together with Kyoto University, we have successfully developed an AI technology to support diagnosis of interstitial pneumonia* (April 2019).
• Launched SYNAPSE SAI viewer, an AI diagnosis support platform, as the first product under the brand of our medical AI technology, REiLI (July 2019).

* Interstitial pneumonia: A general category of lung diseases in which the lungs harden through inflammation. Causes of interstitial pneumonia vary such as pneumoconiosis
caused by asbestos and idiopathic interstitial pneumonia which the cause is unknown. Idiopathic interstitial pneumonia is a designated intractable disease that is difficult totreat.

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Overview

1.2 ｜ CSR Management[Target] Market launch and scale up a novel point-of-care tuberculosis diagnostic kits in developing countries• A highly sensitive rapid tuberculosis diagnostic kit, TB-LAM was adopted for the Phase 2 investment (FY2018 to FY2020) by the Global HealthInnovative Technology (GHIT) Fund, to continue its clinical trials. TB-LAM is being developed by Fujifilm with the collaborating partner FIND* undercontinuous investments from the GHIT Fund, which aims at creating innovative therapeutic drugs, vaccines, and diagnostic drugs originating in Japanto fight against infectious diseases and poverty in the developing world.

*F IND (Foundation for Innovative New Diagnostics): Swiss non-profit organization that helps development and spread new diagnostic techniques for infectious diseases suitablefor developing countries.

[Target] Implement a medical checkup system to help improve the medical environment in emerging countries• Continued to carry out the FY2017 project in Brazil to promote medical collaboration in the use of remote diagnostic imaging technology funded by theJapan International Cooperation Agency (JICA) in FY2014 (completed in March 2019).
• Convened technical workshops to provide trainings to medical staff in South Africa, Myanmar, Kirghiz, etc.
Future Activities and Targets• Accelerate the implementation of R&D and solutions that utilize advanced medical AI Technology through the platform of “Brain(s).”• With an aim of commercialization, additional clinical trials to be conducted for TB-LAM to further accumulate data to obtain WHO recommendation.
Contribute to the SDGs Goal 3 by aligning the TB-LAM initiative with the WHO target to end the global tuberculosis epidemic by 2030.
• Scale up medical checkup systems and continue providing education and trainings to help improve the medical environment in emerging countries.

[Priority Issue 3] Contribute to early disease detection.
Relation to business
Relation to business (Medium-Term
Management Plan VISION 2019)

Influence on sales, costs,
risk and opportunities• Medical Systems

Revenues,
opportunities

Target for 2030
Reduce the physical burden through widespread and expanded use of medical
diagnostic systems.

Progress (FY2018)• Continued promoting CureSign*, a remote blood test service in which a user sends self-collected blood by post. The service is targeted mainly towards
family members of health insurance association members, who are not eligible for a mandatory annual medical checkup.

*C ureSign: A service in which a user collects a small sample of their own blood using a blood collection kit and sends the sample to the test center by post. Within one to two
weeks, the test results are returned by post. The screening items currently available are stomach cancer, stomach ulcer, duodenal ulcer, and 14 other items related to lifestylediseases, including metabolic syndrome. Approximately 14,000 people used this service as of FY2018.

Future Activities and Targets• Promote the CureSign service among health insurance associations and consider to adopt this service as a substitute of medical exam required for life
medical insurance application.
• As a part of overseas business expansion, the project has initiated in Thailand with an aim to implement the service in the country under the JETRO
Experimental Project.

[Priority Issue 4] Contribute to health promotion and beauty.
Relation to business
Relation to business (Medium-Term
Management Plan VISION 2019)

Influence on sales, costs,
risk and opportunities• Life Science

Revenues,
opportunities

Target for 2030
(1) P romote measures to prolong healthy lives. (2) Promote to support for women
empowerment.

Progress (FY2018)[Target] Prolong healthy lives and support a positive state in everyday life
• Launched foods with functional claims to support improvements in lifestyle-related diseases by improving the intestinal environment and excretion, andlower LDL (bad) cholesterol.
[Target] Support women in staying healthy, beautiful, and attractive• Developed a new and unique component, Nano-Resveratrol EX, which employs a new function of collagen that helps maintain skin firmness andresilience, and launched cosmetics with functional claims containing this component.
• Introduced a new product lineup that utilizes D-UV Guard+ developed based on our recent ultraviolet research.
• Created the big opportunity to try ASTALIFT, through a free sample giveaway campaign for 100,000 people.
• Promote the CureSign service among health insurance associations and consider to adopt this service as a substitute of medical exam required for life
medical insurance application.
• As a part of overseas business expansion, the project has initiated in Thailand with an aim to implement the service in the country under the JETRO
Experimental Project.
Future Activities and Targets• Increase the number of trial opportunities of highly-functional and scientifically-proven anti-aging care products. (Aim at a total of 10 million people whohave experienced our products by 2030.)• Increase the number of people’s SNS postings on our healthcare products, such as experience reports. (Aim at a total of 100,000 postings by 2030.)

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Overview

1.2 ｜ CSR Management[Priority Issue 5] Promote management of a healthy workplace.
Relation to business
Relation to business (Medium-Term
Management Plan VISION 2019)

Influence on sales, costs,
risk and opportunities

Impact on the company’s
operation

Risks

Target for 2030

Promote management of health and productivity to maintain employees’ vitality.

Progress (FY2018)[Target] Raise cancer screening rates to 90% or more (for men/women: stomach, lungs, large intestine)• The number of people who requested gastroendoscopies and screening for breast and gynecological cancer increased steadily. The endoscopyspecialist clinic within the company premises continually encouraged employees to take large intestine endoscopies and to utilize the clinic. The
number of users in FY2018 increased to 2,206 (7% over the previous year).
• Promoted breast and gynecological cancer screening by dispatching a cancer screening cars.
[Target] Reduction in number of workdays lost
• The group-wide physical and mental health committee conducted a factor analysis concerning sick leave in order to study the signs that could indicate
potential mental illness and implement countermeasures at an early stage. The committee also analyzed departmental characteristics based on stresschecks and sent feedback to those departments with high risks.
[Other major activities]• The Employee Wellness Promotion Group was inaugurated in July 2018. The entire Group, including the health insurance association, formed thisstructure to promote health practice by setting group-wide health management targets and standardizing measures.
• Announced the Fujifilm Group Employee Wellness Declaration in September 2019 to contribute to achieve a healthy and long life society in addition toaccelerate the employee wellness initiatives.
• Listed in the “White 500,” the Certified Health and Productivity Management Organization Recognition Program for three consecutive years. Nine groupcompanies were also listed in the program.
• Fujifilm and Fuji Xerox group companies set medium-term targets and KPIs for their health promotion plans.
• Promoted our online stop-smoking program and held walking events as a part of initiatives to address five priority areas (lifestyle diseases, smoking,cancer, mental health, and long working hours) concerning management of employee wellness.
• Identified health issues in each of the 85 group companies belonging to the Fujifilm Group Health Insurance Association, and presented a Health Reportto the senior management of each company.
• Reinforced the company’s health management system for Japanese employees dispatched overseas to the same level as in Japan (since 2017). This
ensured that such employees received regular health checks, and if any health risks were identified, a telephone interview and advice from a Japanese
doctor were arranged.
Future Activities and Targets• Further encourage group-wide health promotion for employees and reinforce the disclosure of the results.
• Under the leadership by top management of each group company, set KPIs in five priority areas and promote healthy practices.
• Reinforce countermeasures against breast cancer and large intestine cancer, cases of which have increased rapidly and occupy a large percentage ofthe company’s medical expenses for cancer.
• Organize a group-wide e-learning program to raise health awareness.
• Further enhance the ongoing online stop-smoking program and a walking event.
• Expand health promotion measures suitable for each region and country, and share good practices.

Daily Life: Support the tangible and intangible aspects of infrastructure in people’s lives
through various products, services and technologies.
[Priority Issue 1] Contribute to creating a safe and secure society.
Relation to business
Target for 2030

Relation to business (Medium-Term
Management Plan VISION 2019)

Influence on sales, costs,
risk and opportunities• Recording Media• Electronic Materials• Display Materials• Indsutrial Products

Opportunities,
revenues(1) D evelop technologies for products and services and promote their greater use
to contribute to the development of an ICT.

• Indsutrial Products

Opportunities,
revenues(2) C ontribute to enhancing the safety of infrastructure through more efficient
inspections for the deterioration and malfunctioning of buildings andstructures.

Progress (FY2018)[Target] Aim at 100% preservation of records archived on tapes• Won the Minister of Economy, Trade and Industry Prize under the 7th Management of Technology and Innovation Awards, for developing a largecapacity data tape using barium ferrite magnetic particles that supports the age of big data and the IoT. (Fujifilm)

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Overview

1.2 ｜ CSR Management[Target] Shorten the inspection periods of deterioration and malfunctioning through providing a non-destructive inspection system• Launches the FUJIFILM Creative AI Center Brain(s) Kyushu, a research facility to develop next-generation AI technologies to streamline the inspection
and diagnosis of social infrastructures including bridges.
[Other major activities]• Newly entered the long-range surveillance camera market in July 2019 by releasing the FUJIFILM SX800, a long-range surveillance camera with built-in
zoom lens, in which our cutting-edge optical and image processing technologies are integrated.
• Launched the cloud-based signage service, SkyDeck Media Message which enables multi-language broadcasting of information about facilities andevacuation in case of a disaster.
Future Activities and Targets• Promote reliable and cost effective long-term data storage with the development of magnetic tape with higher data storage capacity.
• Promote next-generation AI technology research to improve safety in social infrastructure.
• Develop innovative long-range surveillance cameras by combining our unique optical technology, refined through the development of 4K/8K-compatible
broadcast lenses with cutting-edge image processing technology found in the “X Series” of digital cameras.

[Priority Issue 2] Contribute to enriching humanity and relationships between people.
Relation to business
Relation to business (Medium-Term
Management Plan VISION 2019)

Influence on sales, costs,
risk and opportunities• Photo Imaging• Electric Imaging• Optical Devices

Opportunities,
revenues

Target for 2030
Contribute to enriching and making people’s lives peaceful through records ofphotos and videos, and photographic products that give form to memories.

Progress (FY2018)[Target] Offering opportunities to enjoy photos that give forms to memories• Launched various smartphone services, including Kazoku no Kiroku (Family Record) app, FUJIFILM Prints & Gifts service, as well as a photo bookservice, PhotoZINE Slim-Type.
• Launched the Premium Print Service through which customers can easily order professional-level high-quality silver prints on the Internet.
• Held the 20th anniversary campaign to commemorate sales of instax and enhanced the product lineup.
• Hosted photo exhibitions in Japan, the US and Europe to display works, aiming at participation by 100,000 people by 2020. Exhibited 100,000
photographs worldwide and achieved this target ahead of schedule in FY2018.
• Started the Homesha (Praise with Photos) Project as a main partner to establish a new child-raising practice that improves children’s self-esteem bydisplaying their photographs at home.
[Other major activities]• Providing high image quality mirrorless cameras that respond to a wide range of demands from entry models to medium format models.
• Received the Award for Excellence “Art of Moment Award” at Japan Mécénat Awards 2018, in recognition of FUJIFILM SQUARE activities.
• FinePix 4700Z, the world’s first digital camera with honeycomb-structured CCD, was registered as Essential Historical Materials for Science andTechnology by the National Museum of Nature and Science, Tokyo.
Future Activities and Targets• Offer products, services, and opportunities that disseminate the various ways to enjoy photography across the world, including shooting, preserving,
displaying and gifting photographs.
• Launch a cloud photo archive service which uses AI to manage the uploaded digital photographs or scanned analog data.
• Further dissemination of open participation photo exhibitions worldwide.

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Overview

1.2 ｜ CSR Management

Work Style: Promote social change where every person is motivated in the workplacethrough extending our in-house work-style reforms.
[Priority Issue 1] Create environments that lead to motivated workplace
Relation to business
Relation to business (Medium-Term
Management Plan VISION 2019)

Influence on sales, costs,
risk and opportunities• Document Solution• Business Infrastructure

Revenues, costs, risks,
opportunities

Target for 2030

Contribute to generate the innovation for organizations and society by offeringsolutions and services that support increasing worker’s productivity and exerting
their creativity.

Progress (FY2018)[Target] Efforts in work style reform in our own company• Overtime working hours per employee has been reduced by 20% compared to FY2014. (FF)• Implemented measures that give more consideration to employees’ health, such as revising the upper limit of overtime working hours andmanagement-driven initiatives to eliminate long-hour working. (FF & FX)• Provided mobile PCs to office-based and sales employees to promote more efficient working. (FF & FX)• Promoted work streamlining by utilizing ICT, such as Robotic Process Automation (RPA), Business Intelligence (BI) tools in offices, and training new
employees to use such technologies. (FF)• Provided seminar for all managers concerning efficient working. (FF)• Reinforced and streamlined sales procedures and reformed business processes through companywide reform project. (FX)• Modified conditions (such as types of work and work locations) for home working for childcare and nursing care and remote working system (effectivefrom April 2019). (FX)
[Target] Actions for work style reform for customers• Offered solution services to realize Smart Work Innovation*. (FX)
• Concluded a partnership agreement with Yokohama City to realize Innovation City Yokohama.
• Conducted demonstration experiments to progress work style reform. (FX)*S
 mart Work Innovation: Fuji Xerox’s value provision strategy through offering solution services utilizing AI, IoT, and IoH technologies that support our customers’ work stylereforms.

Future Activities and Targets• Promote further work style reform by enabling all employees to utilize the latest IT through offering training and support. (FF)• Continue to reform work environments so that employees can work healthily to increase their productivity. (FX)
• Offer solution services globally to support our customers’ work style reforms. (FX)

[Priority Issue 2] Develop and utilize diverse human resources.
Relation to business
Relation to business (Medium-Term
Management Plan VISION 2019)

Influence on sales, costs,
risk and opportunities

Impact on the company’s
operation

Risks, costs

Target for 2030

Create frameworks and workplaces so that the Fujifilm Group’s diverse may exert
their capabilities and creativity to the fullest extent.

Progress (FY2018)[Target] Increase the rate of international employees (i.e., non-Japanese) in major positions.
• Identified important posts in overseas subsidiaries, and started successor training through training programs. (FF)• Aiming at optimized assignments and best use of global human resources, promoted more communications and discussions among HR officers in
Europe, North America, China, and the Asia Pacific region. (FF)
[Target] Improve the rate of women in managerial positions.
• Percentage of women in executive and managerial positions increased from 3.4% in 2011 to 7.6% in FY2018. (FX)
[Target] Continue exceeding the legally stipulated rate of employment of people with disabilities.
• The rate of employment of people with disabilities in June 2019 was 2.35% (group-wide calculation method under FUJIFILM Holdings).
• Promoted employment of people with disabilities working together with group companies (workplaces tailored for people with disabilities, etc.). (FX)• Distributed voice recognition software to help communications for employees with hearing problem. (FX)

FUJIFILM Holdings Corporation Management Report 201919

Overview

1.2 ｜ CSR Management[Target] Achieve zero retirement of employees caused by nursing care, childbirth, and childcare.
• Held seminars for employees returning from childcare leave and their managers to raise awareness on how to make their return to work smooth. (FF)• Held specialist seminars to prevent employees quitting their job for nursing care; increased support offices for nursing care. (FF)• Prepared for enhanced home working system for childcare and nursing care (raising the maximum age of children requiring care, expanding systemcoverage to pregnant employees, and more flexible work locations in the use of the system) (effective from April 2019). (FX)
[Other major activities]• Accepted intern students from overseas universities. (FF)• Held a cross-industry exchange forum for women managers to support their careers. (FX)• Distributed a Managers’ Guide to Support Employees in Childcare. (FX)
Future Activities and Targets• Further disseminate and accelerate Work Style Innovation (WSI)* to realize diverse work styles with high productivity. (FF)• Work style reform focusing on thorough business streamlining, work environment to exert employees’ capabilities, and thorough labor compliance. (FX)*W
 ork Style Innovation (WSI): Activities implemented by Fujifilm to aim to become a company where diverse employees can utilize their individual strengths to demonstrate theircapabilities in effective ways of working that produce results.

Supply Chain: Strengthen CSR foundations across the entire supply chain including
factors of the environment, ethics, and human rights.
[Priority Issue ] Strengthen CSR foundations across the entire supply chain including factors of the environment, ethics,
and human rights.
Relation to business

Target for 2030
(1) R ealize sustainable procurement considering the environment, ethics and human rights.

Business infrastructure(2) E nsure compliance with legislation on biodiversity.
Progress (FY2018)[Target] Realize sustainable procurement• Started on-site visits by expert teams to suppliers with assemble works in China to offer procurement diagnoses and started providing support for
improvements. (FF)• Achieved elimination of production line stops caused by suppliers’ CSR risks in consecutive years ⇒ FX Shenzhen for four years & FX Haiphong forthree years. (FX)
• Obtained 100% response rate from suppliers for the conflict minerals survey (in the document business where customer interest is high). (FX)
[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*.
*N atural Capital Protocol: A standardized framework developed by the Natural Capital Coalition (NCC) for businesses to identify, measure and value their impacts anddependencies 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. (FF)• 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). (FX)
• 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.

FUJIFILM Holdings Corporation Management Report 201920

Overview

1.2 ｜ CSR Management

Governance: Improve and maintain governance structures by further disseminating an
open, fair and clear corporate culture.
[Priority Issue] Improve and maintain governance structures.
Relation to businessBusiness infrastructure

Target for 2030
Aim for zero cases of misconduct and major legal violations by disseminating an open, fair and clear
corporate culture.

Progress (FY2018)[Target] Develop a governance organization for the entire Fujifilm Group and reinforce the business management process.
• Increased the number of independent outside directors to four to augment deliberations by the Board of Directors and improve transparency ofmanagement decision-making by using an independent outside director.
• Established the Nomination and Remuneration Advisory Committee chaired by an independent outside director as an arbitrary advisory body to theBoard of Directors.
[Target] Improve compliance awareness across the entire global Group and reinforce risk management.
• Revised the Fujifilm Group Charter for Corporate Behavior and Code of Conduct. (see Page 43)• Follow-up investigation on the FY2017 compliance awareness survey ⇒ No major issues.
• Implemented training programs for risk managers at several overseas regional headquarters.
• Introduced the information security reporting system globally.
• Implemented disaster prevention education and training to prepare for a wide-area disaster. (see Page 43)[Target] Maintain a fair and independent audit and improve the audit quality level.
• Established methods for analysis of financial data and work record etc. as well as an e-mail forensics mechanism; all of which have already been
deployed in domestic audits and have led to improving audit completeness and objectivity.
Future Activities and Targets• Strengthen consolidated management of compliance activities by operating companies FF & FX under an FH initiative and by execution of measures
aimed at further improving compliance awareness among all employees.
• Enhance deliberations by the Board of Directors and improve transparency of management decision-making.
FH: FUJIFILM Holdings FF: Fujifilm FX: Fuji Xerox

FUJIFILM Holdings Corporation Management Report 201921

Overview

1.2 ｜ CSR Management

Themes That Are Significantly Related with our Business in the Priority Issues of SVP2030
Item

CSR Priority Issue 1

Material Issues

Contribute to resolving social issues
related to health, daily life, environment
and work style through products andservices(Issues related to social impact in thefour areas “Environment”, “Health”,“Daily Life”, and “Work Style” of
SVP2030)

Business processes that respond toenvironmental issues.
(Issue related to the company’s
operation in the “Environment” of
SVP2030)Develop and make use of diverse
human resources.
(Priority Issue 2 in the “Work Style” of
SVP2030)

In the above four areas "Environment","Health", "Daily Life", and "WorkStyle"of SVP2030, contributing toresolving social issues including
improving access to medical services,
identifying disease at an early stage,
fulfilling unmet medical needs andpromoting health are priority areas inour Medium-Term Management Plan
VISION 2019 and lead to businessgrowth.

Business operations that respondto environmental issues (energy
conservation) not only contribute to
reduced costs and improved earnings
for a company in the chemical,
electrical and machinery industries but
are also essential in ensuring stability
and continuity of business, as well as inmaintaining our social reputation.

The people working at the various
worksites form the foundation of ourglobal business operations in diverse
fields. Improving working conditions
and assuring employee diversity inthe company and in the supply chainat large is the key to reducing job
turnover, increasing motivation andultimately leading to business growth.
In addition, the expertise gained in thecourse of these activities has led to us
offering work style reform services toother companies.

Business Impact

Revenue & profit

Costs & risks

Risks, sales & revenue

Businessstrategies• Grow sales in the growth areasof medical IT, endoscopes andultrasonic diagnosis systems inmarkets including emerging countries
and expand our lineup of productswith functional claims using our
exclusive technologies.

• Launch of innovative new products
founded on value co-creation andincorporating our high levels offundamental and core technologies
that contribute to solving
environmental issues in partnershipwith external parties.
• Maximizing profits through energy
conservation and implementing a
cost-cutting business structure.

• Creating a corporate environment inwhich diverse employees are able todemonstrate their individual strengths
through the introduction of Work
Style Innovation.
• Promoting CSR procurement (survey)
and reinforcing CSR systems at
suppliers, including better working
conditions for employees aimed atbuilding a stable and sustainableprocurement system.

[Health]Increase healthcare business sales by
30% in FY2016 in line with the MediumTerm Management Plan VISION 2019.
[Environment]
Medium-Term CSR Plan
• Reduce CO2 emissions by 20 million
tons by FY2020.
• Long-Term CSR plan
• Reduce CO2 emissions by 50 million
tons by FY2030.

Increase sales of highly functional
materials by 20% in FY2016
in line with the Medium-Term
Management Plan VISION 2019.
Medium-Term CSR Plan
• 30% reduction in CO2 emissions
over FY2005 levels over the productlifecycle by FY2020• 10% reduction in basic resource
input units over FY2012 levels by theyear FY2020• Long-Term CSR Plan
• 30% reduction in CO2 emissions overthe product lifecycle over FY2013
levels by the year FY2030• 30% reduction in water consumptionof the entire Group over FY2013
levels by FY2030• Increase number of female managers
by 6% (Fujifilm) and by 14% or more(Fuji Xerox) by FY2020.

FY2030

FY2030

FY2020Applied when determining
compensation of the company
president serving as COO andexecutive officers supervising relevant
divisionsApplied when determining
compensation of the company
president serving as COO andexecutive officers supervising relevant
divisions, as well as executive officers
in charge of CSR

Applied to personnel administration
and when determining compensationof executive officers in charge of CSR

Business Case

Long-Term
Target/Metric

Target Year

Executive
Compensation

CSR Priority Issue 2

CSR Priority Issue 3

FUJIFILM Holdings Corporation Management Report 201922

Governance

2.1 ｜ Corporate Governance

2.1 Corporate Governance2.1.1 Basic Approach
The Fujifilm Group aims to contribute to the sustainable growth of society while improving its corporate value through sincere
and fair business activities. As the foundation to achieve this, we regard corporate governance as a primary issue in ourbusiness management. We also position the Board of Directors as the organization that determines basic Group management
policies and strategies and other important matters relating to business execution, as well as supervising the implementationof business affairs.
This idea is clarified in the Corporate Governance Guidelines, which are approved by the Board of Directors.
Corporate Governance Guidelines
URL: https://www.fujifilmholdings.com/en/about/governance/pdf/ff_governance_guideline_en.pdf
Report on Corporate Governance (Tokyo Stock Exchange)
URL: https://www.fujifilmholdings.com/ja/about/governance/pdf/ff_ab_2018_001.pdf (in Japanese only)
Basic approach to the internal control system and its outline
URL: https://www.fujifilmholdings.com/en/about/governance/internal_control/index.html
Articles of Incorporation
URL: https://www.fujifilmholdings.com/ja/investors/pdf/other/ff_irnews_20150626_001j.pdf (in Japanese only)
Fujifilm Tax Policy
URL: https://www.fujifilmholdings.com/en/sustainability/steps/governance/index.html
Yuka Shoken Houkokusho (Securities report)
URL: https://www.fujifilmholdings.com/ja/investors/pdf/securitiesreports/ff_sr_2018q4_allj.pdf (English available in Sept.)
Integrated Report 2018
URL: https://www.fujifilmholdings.com/en/investors/ir_library/integrated_reports/index.html

2.1.2 Corporate Governance and Governing Structure
Corporate Governance and Governing Structure
Shareholders’ Meeting

Designated Reward
Committee

Board of Directors• Determination of Group management policies and strategies • Decision of importantmatters relating to business execution • Supervision of business execution

Chairman, Representative Director & CEO

Business Execution

Audit &
Supervisory Board

Audit &
Supervisory Board

Board Staff Division

President, Representative Director& COO

ESG Committee* Including compliance risk management

Management Council

M&A Investment Committee
Corporate
Planning Division

Accounting Division

ESG Promotion Division

Global Audit Division

Group Companies
Management Division* Including Legal and Public Relations/IR

Each Group Comapny

Auditing Structure
FUJIFILM Holdings has adopted the system of appointing an Audit & Supervisory Board, which consists of four members,
including two outside auditors (50% of the entire auditors) as of the end of June 2019. The current outside auditors are both
qualified accountants and possess a wide range of experience and knowledge through their practice in other corporations,in addition to their accounting expertise. Each auditor attends the Board of Directors and the full-time auditors always attend
the management meeting and exchange opinions with COO regularly to maintain the transparency of the entire management.
Our Global Audit Division comprises 55 members (as of the end of June 1, 2019) to support internal auditing and evaluate
the internal control in our global operations with speed and transparency.

FUJIFILM Holdings Corporation Management Report 201923

Governance

2.1 ｜ Corporate Governance2.1.3 Independence of Outside Directors
There are 11 directors as of the end of June 2019, four of which are independent outside directors (36% of the board). Outside
Directors observe the Board of Directors’ decision making and its processes objectively to judge and discuss their rationality
from a perspective of increasing corporate value considering the benefit of stakeholders including minority shareholders. They
are playing role of contribution to ensure validity and appropriateness of Board decision making.
Outside directors and outside Audit & Supervisory Board members of FUJIFILM Holdings Corporation are deemed to be
independent when none of the following conditions apply:
Criteria for Independence of Outside Directors and Outside Audit & Supervisory Board Members
URL: https://www.fujifilmholdings.com/en/about/governance/officers/index.html

2.1.4 Diversity among Directors
Directors candidates are selected giving overall consideration including diversity of the Board of Directors to their personality
and acumen, wealth of professional experience, international business experience, depth of insight into the Group’s businessand management environment, ability to analyze and judge matters objectively and such.
Outside Director candidates are selected giving overall consideration to their having sufficient acumen and wealth ofprofessional experience for supervising management from an independent perspective, high level of expertise in fields suchas corporate management, finance and accounting, and law, knowledge and experience regarding the Company’s fields ofbusiness, and such.
To diversify the Board of Directors, we appointed our first female outside director in June 2018. In selecting director
candidates, we make comprehensive consideration covering the extent of the individual’s work experience, international
business career, insight into business environment surrounding the Fujifilm Group businesses, objective analytic skills, andsense of judgment.

2.1.5 Effectiveness of Directors
Attendance Status for the Board and Audit Committee Meeting (between April 1, 2018 and March 31, 2019)
Outside directors and auditors are indicated with ＊. The chair person is indicated with ◎



Name

Board meeting

Auditing committee meeting(No. held: 10)(No. held: 12)

Directors

Shigetaka Komori◎ (Attendance rate: 10/10, 100%)ー

Directors

Kenji Sukeno〇 (Attendance rate: 10/10, 100%)ー

Directors

Kouichi Tamai〇 (Attendance rate: 10/10, 100%)ー

Directors

Junji Okada〇 (Attendance rate: 7/7, 100%)ー

Directors

Takashi Iwasaki〇 (Attendance rate: 7/7, 100%)ー

Directors

Teiichi Goto

〇 (Attendance rate: 7/7, 100%)ー

Directors*

Tatsuo Kawada〇 (Attendance rate: 8/10, 80%)ー

Directors*

Makoto Kaiami〇 (Attendance rate: 10/10, 100%)ー

Directors*

Kunitaro Kitamura〇 (Attendance rate: 9/10, 90%)

ー

Directors*

Makiko Eda〇 (Attendance rate: 7/7, 100%)ー

Auditors

Kazuya Mishima〇 (Attendance rate: 10/10, 100%)◎ (Attendance rate: 12/12, 100%)

Auditors

Naohiko Sugita〇 (Attendance rate: 7/7, 100%)〇 (Attendance rate: 9/9, 100%)

Auditors*

Hisayoshi Kobayakawa〇 (Attendance rate: 10/10, 100%)〇 (Attendance rate: 12/12, 100%)

Auditors*

Shiro Uchida〇 (Attendance rate: 8/10, 80%)

〇 (Attendance rate: 9/12, 75%)

* The attendance rate is since the appointment.
* Director’s duty period: One year
* Auditor duty period: Maximum four years* Kazuya Mishima started a chair of auditing committee meeting on 28 June, 2019.

FUJIFILM Holdings Corporation Management Report 201924

Governance

2.1 ｜ Corporate Governance2.1.6 Assessment Results of Directors’ EffectivenessWe sought the opinions of directors and auditors concerning the effectiveness of the 2018 Board of Directors through aquestionnaire and individual interviews, and assessed the results.

1. Overview of questionnaire and interviews
Scope of assessment:
Assessors:
Assessment method:
Survey period:
Survey contents and method:

Thirteen Board of Directors held from January to December 2018
All directors and auditors (total 14 individuals)
Self-assessment through questionnaire and interview
January to March 2019
After the questionnaire asked about the board member configuration, improvement ofdeliberation quality, deliberation environment, and monitoring by the Board, the respondents
completed their answers in free format replies, Individual interview conducted based on thequestionnaire results.

2. Results of analysis and assessment
Analysis and assessment results of the above survey concerning effectiveness of the Board of Directors in Fujifilm Holdings
are as follows.
• By appointing one more outside director added diversity in terms of knowledge and experience to the Board of Directors.
The Board of Directors maintains its appropriate size, conducts efficient discussions, and appropriately fulfills its duties andresponsibilities in monitoring important business operations.
• The outside directors fully contribute to maintaining the effectiveness of the Board of Directors.
• The company holds preliminarily explanation sessions for the outside directors concerning meeting agendas and businessdetails. These sessions effectively function to provide outside directors with company information and contribute toimprovement of deliberation quality in the board meetings. The future prospects for the Board of Directors is to further
deepen the business understanding by the outside directors and gain even greater contributions from them concerning HR
and IT strategies, as well as environmental efforts, which are critical to nurture the sustainable development of the Fujifilm
Group.

3. Efforts for effectiveness improvement
Based on the above assessment results, we will conduct an additional session to explain our efforts concerning HR, IT, and theenvironment, targeting all board members, in addition to business explanations for the outside directors. We aim to promote
the better understanding of the outside directors on our business management strategies and obstacles to achieve sustainable
development of the Group through this extra session, and thereby improve the deliberation quality and effectiveness of theBoard of Directors.

2.1.7 Executive Compensation
1. Executive compensation• The total (upper limit) of the compensation for either a director or an auditor is determined at the shareholders’ meeting.
• The compensation of each director (including performance-based compensation) is determined by the resolution in theboard meeting after deliberations of the Nomination and Compensation Committee.
• The compensation of each auditor is determined through discussions by the auditors.
• Compensation of the directors comprises fixed compensation and performance-based compensation: the latter varies
depending on business performance.
Performance-based compensation comprises a short-term performance-based compensation that is associated with a single
business year performance and a goal achievement level, and stock option that is a middle- to long-term performance-based
compensation. The percentage of the fixed compensation and the performance-based compensation, and the actual figure of
the compensation are determined depending on the director’s position and scope of responsibility. The compensation of an
outside director is always fixed, due to the nature of their role and to maintain their independency.
We set the consolidated sales and consolidated operating profit, which are our short-term numerical goals in management
control, as the performance-based index of a single fiscal year. Then we determine the figure for the short-term performancebased compensation by assessing the goal achievement level for these indices and comparing the business results of themost recent fiscal year and the previous year.
We also grant stock options to directors (excluding outside directors) as the middle- to long-term performance-based
compensation. This aims to improve morale among the inside directors and motivate them to contribute to improving corporate
value by sharing in the common interest with shareholders concerning stock prices. The stock option plan is an incentive
for management to improve the corporate value, and the amount of stock allocated to each director is determined by the
Board of Directors according to their respective position and scope of responsibility and authority within the framework ofpredetermined corporate rules.
FUJIFILM Holdings Corporation Management Report 201925

Governance

2.1 ｜ Corporate Governance

2. Nomination and Compensation Committee
The Nomination and Compensation Committee was established in June 2019 as a voluntary advisory organization to theBoard of Directors. The committee creates the CEO succession plan and discusses the basic policy and the procedure forthe director compensation system. This membership structure reinforces the transparency of discussion details and further
ensures sound corporate governance. As of June 2019, the committee comprises two outside directors (including the chairperson) and an inside director who were assigned by the resolution of the Board of Directors meeting. This membership
structure reinforces the transparency of discussion details and further ensures sound corporate governance.
Compensation for Each Director (FY2018)
Name

Shigetaka
KomoriKenji
SukenoKouichi
Tamai

Junji
Okada

TakashiIwasaki

Teiichi
Goto

Category

Company

Basiccompensation

Short-term based
compensation

Stock
option(million yen)

(Bonus)(million yen)(million yen)Total
(million yen)

Directors

FUJIFILM Holdings Corporation

Directors

FUJIFILM Corporation

103
25

43
10

166
33

313
70

Directors

Fuji Xerox Co., Ltd.

52

16

ー

69

Total

30
7

83
16

453
202
45

9

2

ー

11

7

1

ー

8

Total

266

28

3

11

43

FUJIFILM Corporation

12

1

28

41

Fuji Xerox Co., Ltd.

74

22

ー

97

Total

183
25
15

Directors

FUJIFILM Holdings Corporation

Directors

FUJIFILM Corporation

Directors

Fuji Xerox Co., Ltd.

Directors

FUJIFILM Toyama Chemical Co., Ltd.

Directors

FUJIFILM Holdings Corporation

Directors
Directors

88
20

Directors

FUJIFILM Holdings Corporation

Directors

FUJIFILM Corporation

12
10

4
3

8
2

Directors

Fuji Xerox Co., Ltd.

11

7

ー

18

Total

59

Directors

FUJIFILM Holdings Corporation

8

4

ー

13

Directors

FUJIFILM Corporation

13

7

8

29

Directors

FUJIFILM Electronic Materials Co., Ltd.

18

ー

ー

18

Total

61

ー

8

8
Total

52
61

Directors

FUJIFILM Holdings Corporation

6

1

Directors

FUJIFILM Corporation

33

10

Note: For further details, please refer to the Security Report 2018.
URL: https://www.fujifilmholdings.com/ja/investors/pdf/securitiesreports/ff_sr_2018q4_allj.pdf (In Japanese Only)

The Number and Amount of Compensation Paid to Executive Officers (FY2018)
NumberBasiccompensation(million yen)

Short-term based
compensation(Bonus)(million yen)Stockoption(million
yen)

Total
amount(millionyen)

Directors(excluding outside directors)

9

250

82

297

630

Auditors(excluding outside auditors)

3

43

ー

ー

43

Outside Executive Officer

6

60

ー

ー

60

Total

18

353

82

297

734

Category

Note: For further details, please refer to the Security Report 2018.
URL: https://www.fujifilmholdings.com/ja/investors/pdf/securitiesreports/ff_sr_2018q4_allj.pdf (In Japanese Only)

FUJIFILM Holdings Corporation Management Report 201926

Governance

2.1 ｜ Corporate Governance2.1.8 Owning Company Stocks by the Directors
We offer the inside directors stock options in order to enables inside directors to share mutual interests on the effect of stock
price fluctuations with shareholders, aiming to increase morale and motivate them to further contribute to improving corporate
value.

2.1.9 Tax Policy
Fujifilm Group Tax Policy
1. In line with its Code of Conduct, which advocates an “Open, Fair and Clear” corporate culture, the Fujifilm Groupshall comply with taxation laws of countries around the world, international taxation regulations and the spiritof such laws and regulations. The Group shall make payment of all required taxes by all specified dates in all
countries in which it operates
2. The Fujifilm Group shall thoroughly examine the contents of all business transactions in advance from theperspective of tax, receive advice from competent tax advisors if and when required, and implement reportingand preliminary approval processes for important tax matters in accordance with internal regulations in order tomaintain and improve governance on tax affairs
3. The Fujifilm Group shall maintain trusting relations with tax authorities, and give full consideration to, and if deemednecessary, shall proceed with its application for the Advance Pricing Agreement, so as to avert any lack oftransparency in tax affairs
4. The Fujifilm Group shall actively utilize beneficial tax treatment in countries in which it operates while complying
with their legislative intent in order to maximize consolidated cash flow. The Group shall not engage in tax planningor use tax havens for the sole purpose of obtaining tax benefits.

Control of Tax Matters
The Fujifilm Group closely monitors our tax-related activities and management.
We do not recognize any serious issue concerning tax-related risks at this moment.
• The director responsible for managing the accounting departments takes responsibility for execution of tax processing
and instructions, and the creation of financial statements. Note that the financial statements are audited by an independent
audit corporation.
• With the recognition that each auditor is an independent authority to form an overall corporate governance system, theauditors closely examine the directors’ business fully adhering to the auditing standards specified by the Audit & Supervisory
Board, as well as the company’s auditing policies and plans.
Yuka Shoken Houkokusho (Security Report)
URL: https://www.fujifilmholdings.com/ja/investors/pdf/securitiesreports/ff_sr_2018q4_allj.pdf (English available in Sept.)

FUJIFILM Holdings Corporation Management Report 201927

Governance

2.2 ｜ Compliance and Risk Management

2.2 Compliance and Risk Management
2.2.1 Basic Approach
The Fujifilm Group defines “compliance” as “not only to pursue the law but to behave correctly within the framework of common
sense and ethics”. Moreover, we think the compliance and the risk are two sides of the coin, as the lack of complianceawareness among employees would lead to grow the possible corporate risk. For this reason, the following four steps havebeen implemented in the PDCA (plan-do-check-act) cycle in the drive to increase awareness of compliance.

Plan

Do

Check

Act

Revising the annualCompliance Briefings based on
the results from the awarenesssurvey among employees, thereport on workplace briefings
held in each office, andchanges in social concers.

Providing employees witheducation throughmanagers based on theabove revisions.

Conducting a survey toassess changes in
employees’ awarenessthrough various
educational programs andbriefings.

Reflecting the results of
the awareness survey andreport contents in the
Compliance Briefings ofthe following year.

2.2.2 History of the Measures Implemented for Compliance and Risk Management
Establishment and reinforcement of foundation at each company
1995-2005• Formulation of a Code of Conduct for employees• Establishment of responsible organization (committee)• Opening of a helpline and whistle-blowing office• Start raising employees’ Awareness, education, and monitoring through awareness surveys and briefings sessions

Establishment and reinforcement of foundation for the entire Fujifilm Group
2006-2008• Establishment of Fujifilm Holdings CSR Committee• Revision of Group’s Corporate Philosophy and Charter for Corporate Behavior , and formulation of Vision and code of
Conduct and raising awareness• Expansion of initiative to Group companies outside of Japan

Addressing new priority issues
2009-20132014-2016• Introduction of anti-corruption regulations• Review of Group-wide risk issues related to natural disasters, such as large earthquake or possible eruption of Mt.
Fuji• Establishment of a system to ensure no relations with anti-social forces• Introduction of information security regulations and guidelines etc.

Further activity promotion toward Sustainable Value Plan 2016 targets• Review and clarification of major risks for the Fujifilm Group• Strengthening measures to raise awareness on existing rules and regulations etc.

Strengthening Corporate Governance as the Fujifilm Group2017-2019• Compliance education for all Employees and distribution of CEO message concerning the inappropriate accounting
issue• Establishment of whistle-blowing system to report directly to Fujifilm Holdings• Revision of the Charter for Corporate Behavior and the Code of Conduct• Establishment of Fujifilm Holdings ESG Committee reorganized from CSR committee

FUJIFILM Holdings Corporation Management Report 201928

Governance

2.2 ｜ Compliance and Risk Management

2.2.3 Compliance and Risk Management Promotion Structure
Fujifilm Group Risk and Compliance Management System
Fujifilm Group Risk Management System
Board of Directors
Report
ESG Committee
Chairman: President

Fujifilm

Total Risk Management Committee

Fuji Xerox
Compliance & Risk Management Committee

Chairman: President

Fujifilm Group Companies(including shared service company under FUJIFILM Holdings)

Chief executive for risk management: President
Risk Manager(Headed by President)

Risk Management Committee

Fuji Xerox Group Companies
Risk Management Committee
Chairman: President

Following the inappropriate accounting experienced by Fuji Xerox overseas subsidiaries in FY2017, we also revised our risk
management in terms of the control structure and operation in order to thoroughly implement measures for crisis control andrecurrence prevention. We also strengthened our risk minimization activities for normal circumstances. The Fujifilm Groupannually reviews risks identified by companies across the world under Fujifilm Holdings and creates action plans to control
these risks following established procedures. In the event of an incident, each operating company controls the risk following
the predetermined procedure. If the case is serious, the company reports it to the Secretariat of the Fujifilm Holdings ESG
Committee in order to supervise risk management across the entire Group and ensure its effectiveness.
Risk Extraction and Process for Establishing Action Plan
Each company must clarify risks from the following 10 viewpoints, assess each risk taking accountof probability of occurrence and scale of impact on business management, and create an action
plan. The company then reports the results to the committee of the operating company to which
the reporting company belongs (i.e. either the Fujifilm Total Risk Management Committee or the Fuji
Xerox Risk Management Committee).

Based on the submitted report, the committee of the operating company (Fujifilm Total Risk
Management Committee or Fuji Xerox Risk Management Committee) identifies the major risks foreach operating company and report the results to the Fujifilm Holdings ESG Committee (Chair
person: Kenji Sukeno, COO, Fujifilm Holdings).

The Fujifilm Holdings ESG Committee that leads operating companies follow up the major risk
issues and submit follow-up reports to the Board of Directors.

Risk Items(1) Fraud and misconduct (Violation of
Corporate Code of Conduct, including
bribery)(2) Information security (including privacy
protection)(3) Serious legal violation related to business
operations(4) Product safety and product quality(5) Occupational accident(6) Large-scale natural disaster(7) Employee safety (Terrorist attack response)(8) Environment (including Climate change andwater risk)(9) Human rights(10) Others (Risk specific to the company)

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Governance

2.2 ｜ Compliance and Risk Management

FY2019 Priority Risk Map for the Fujifilm Group
Large
Information security
Personal data management

ImpactCompliance of Healthcare
Business(Securing ethics andtransparency)
Eliminating misconducts and fraud
Labor management
Harassment

Small
Probability of occurence

Small

Risk item

Large

Reason for selection

Countermeasures

Information security

In response to the expansion of ICT in products, services
and manufacturing, the effective range of information
security is expanding. Therefore, a review of conventionalcountermeasures is necessary.

Personal data management

In the face of the growing reinforcement of local regulations ineach country, the effects of violations and information leaks
are growing. Therefore, more comprehensive management isnecessary.

Compliance of Healthcare
Business (Securing ethics andtransparency)

In the Healthcare Business, ethical conduct and transparency
are requested by the regulation authorities in each country. We
recognize this is one of our priority issues.

Eliminating misconducts andfraud

Incidents are declining; however, more comprehensive
management and education are necessary overseas.

Labor management

In line with the Work Style Reform Law that was enacted in April
2019, we manage working hours to suitable lengths to prevent
long working hours.

Harassment

With society’s increasing interest in harassment issues,
harassing behavior must be prevented.

• Improvements tointernal rules and risk
management systems• Comprehensive
implementation of a rangeof compliance, information
security and risk training
programs

2.2.4 Outline of the Activities
In response to the inappropriate accounting experienced by Fuji Xerox overseas subsidiaries found in FY2017, we reviewed our
corporate governance across the entire group. We also conducted a compliance education program concerning the incident
to disseminate the open, fair, and clear corporate culture that we set as the foundation of Fujifilm Group conduct. This program
aimed to ensure that we could listen to all stakeholders, exchange opinions in both directions, and adhere to the rules in afair and just manner, and that we all take responsibility for the decisions and actions that we make and thereby maintaining
business transparency with utter honesty.
We have revised the Charter for Corporate Behavior and the Code of Conduct in April 2019 to reflect the changes insocial trends and in our approach to corporate social responsibility. These texts have been translated into 24 languages anddistributed to different countries to enable our employees across the world to clearly understand the Charter and Code. We
also provide all Group employees—both inside and outside—Japan with an e-learning program since May to cultivate theirunderstanding of these important documents.
In FY2018, we did not experience any critical compliance issues that we needed to make public.
Fujifilm Group Charter for Corporate Behavior and the code of conduct
URL: https://www.fujifilmholdings.com/en/about/philosophy/pack/pdf/02_FF_CoC_2019_English.pdf

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Governance

2.2 ｜ Compliance and Risk Management

2.2.5 Compliance Education
Contents of Compliance Education
Participants (FY2018 results, Unit: person)
Intended audience

Details

Fujifilm Group
Domestic

All employees(Executive officers,
managers ofdivisions, generalemployees)

Overseas

Fuji Xerox Group
Total

12,660 12,660

Fujifilm Holdings Total

Domestic

Overseas

Total

Domestic

-

-

0

-

Overseas

Total

Overall compliance-

Compliancedeclaration for code of
conduct--

024,273

Information security,e-learning

21,934-

21,934

26,412-

26,412 48,346-

48,346Overall complianceand risk management

473

-

473

752

-

752

1,225

-

1,225

Harassment
prevention

3,780

-

3,780

-

-

0

3,780

-

3,780

General risk
management

-

84

84

-

-

0

-

84

84

Enhancement forharassment cases

67

-

67

-

-

0

67

-

67

Training of compliancecase study

-

-

0

-

62

62

-

62

62

21,71673,15321,654 45,927 24,273

12,660 12,660
21,654 45,927

New employees(New executive
officers, newmanagerial
personnel, newgeneral employees)

Group companies(domestic priority
companies)

Employees(Executive officers,
general employees(including contract/
temporaryemployees))

Risk managers

Sales companies(Presidents
and managerial
personnel)

Total

26,254

12,744 38,998 51,437

77,691 34,460 112,151

2.2.6 Compliance Awareness Survey
Conducting a follow-up survey to the FY2017 Compliance Awareness Survey
We conducted a Compliance Awareness Survey of all our Group employees (93,000 employees across 320 organizations) in
December 2017. In September 2018, we undertook a follow-up survey targeting the organizations where a large number of
respondents answered that they know about a compliance violation (27,000 employees across 23 organizations) to identify
the concrete facts in these cases. As a result, actual compliance violations identified were as low as 4% of reported case andthere were no serious problems that could affect our business. The concrete issues we discovered in the survey were further
investigated within each organization to prevent any recurrence.

Conducting Harassment Awareness Survey in “critical” workplaces in the Fujifilm GroupThe Harassment Awareness Survey undertaken in December 2016 of all Fujifilm Group employees in Japan (21,000 employees
in 36 companies) found out that seven companies had higher percentages of employees answering that they had experienced
harassment than the Group mean figure. We conducted the same awareness survey in June 2018 on those seven companies
and two additional companies that newly joined the Group. The additional survey identified an improvement in only one
company but the remaining eight companies were still below the mean figure. Since September 2018, we have been providing
a harassment prevention program and workplace discussions in each company to prevent any further cases of harassment.

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Governance

2.2 ｜ Compliance and Risk Management

2.2.7 Corruption (Bribery) Prevention Efforts
To nurture a corporate culture based on the open, fair, and clear sprit, as stated in the Group Vision, Chapter 2 (Fair Corporate
Activities) of the Fujifilm Group Charter for Corporate Behavior and Code of Conduct clearly declares the requirement for Fair
Sales Activities, Fair Procurement, Prevention of Corruption, and Prohibition of Bribery and restriction on gift-exchange andEntertainment. The chapter states that we must avoid any actions that could cause suspicion of a collusive relationship with athird party or could jeopardize the fair relationship with suppliers; we should avoid being involved in any corrupt activities; andwe also should avoid any dubious action that could cause suspicion of fraud with retailers, business partners, public officials
and government representatives. In response to the increasing reinforcement of corruption prevention laws across the world,
each Group company implements anti-bribery rules. We also conduct regular onsite audits in areas where the risk is deemed
to be high.
The Fujifilm Group never had a corruption or bribery, and we have never been investigated by administrative authorities
concerning any anti-corruption matters.
Anti-corruption effort

URL: https://www.fujifilm.co.jp/corporate/environment/compliance/anti-corruption/index.html

2.2.8 Anti-competitive Practice Prevention Efforts
The Fujifilm Group is working hard to observe anti-trust laws, maintains a regular education system, and holds annual self
audits. Since 2003, we have never been subject to a penalty concerning antitrust/anticompetitive practice nor are there any
ongoing antitrust lawsuits.

2.2.9 Export and Import Control
The Fujifilm has created the Global Security Trade Control Policy, one of the basic policies commonly shared across the
Fujifilm Group, and control our exports based on this policy. This is our means of preventing products and goods that could be
converted into arms or be adapted for military use from being obtained by terrorists or nations that could threaten international
security. We can therefore state that we contribute to maintaining international safety not only by observing the related laws.
The Fujifilm Group never had a case pointed out by administrative authorities concerning export and import control.
Global Security Trade Control Policy

URL: https://www.fujifilmholdings.com/en/sustainability/vision/control.html

2.2.10 Whistle-Blowing Office and Consultation Office
The Fujifilm Group has a separate whistle-blowing system. One is in Fujifilm Holdings that can be accessed directly by all
Fujifilm Group employees across the world (consultation available in Japanese, English and other 23 languages), and the otherenables employees to report to each regional headquarter. Both can be accessed anonymously, and protection of the whistleblower is stipulated to protect them from detrimental treatment caused by reporting.
• Number of whistle blowing reports in the Fujifilm Group in FY2018: 298 (199 in Japan and 99 in overseas)
Seventy percent of the report contents were harassment, human relationship issues, and HR or labor matters; however, noserious issues were identified.

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Governance

2.2 ｜ Compliance and Risk Management

2.2.11 Information Security
The Fujifilm Group regards information security as one of the major risks and implements the following measures:
1. C
 ontinuous security reinforcement to address cyber security threats that have been increasing recently.
2. Establishment of the Global Security Regulations and provision of regular education programs as information leakage withan internal cause and external attacks must be addressed by common measures across the Group.
3. Establishment of an information security incident responses team in FUJIFILM and Fuji Xerox to minimize the damage froman information security incident, should one occur. Implementing simulation trainings for incidents (At lease once a year).
4. Establishment of the Personal Information Protection Policy and the Personal Information Protection Regulations andconducting regular audits and employee training.
5. Providing vulnerability tests (once in six months) for the web servers that have possibilities of attacks from outside.
In fiscal 2018, there were no serious cases related to information security were pointed out by administrative authorities andassessed to require public disclosure.
* Implementation of measures in collaboration with the Group’s regional headquarters in Europe in advance of the introduction of the EU General
Data Protection Regulations (GDPR) in May 2018.

2.2.12 Protection of Privacy
In the Fujifilm Group, the Code of Conduct that sets out how all Fujifilm employees are to conduct themselves, protection ofprivacy has been defined as an item affecting respect for human rights.
The policy is being applied to external suppliers as requests to suppliers and is being applied to all Fujifilm Group operations.
The importance of privacy protection growing every year, and we recognize the issue in the course of risk identification andaction planning for the entire Group each year, to assure the effectiveness of Group risk management.
In fiscal 2018, there were no serious cases related to customer privacy were pointed out by any third parties or administrative
authorities and assessed to require public disclosure.
Code of Conduct: Respect for Human Rights Protection of Privacy
URL:https://www.fujifilmholdings.com/en/about/philosophy/law/humanrights.html
URL: https://www.fujifilmholdings.com/en/sustainability/vision/procure.html
Fujifilm Group Procurement Policy: Request to Suppliers

Acquisition of P-Mark and ISMS
Certification

As of July, 2018

Certified affiliates

P-Mark*1

FUJIFILM Medical Co., Ltd.
FUJIFILM Imaging Systems Co., Ltd.

FUJIFILM Techno Service Co., Ltd.
Fuji Xerox System Service Co., Ltd.

FUJIFILM Imaging Protec Co., Ltd.
FUJIFILM Media Crest Co., Ltd.

ISMS*2

FUJIFILM Global Graphic Systems Co.,Ltd.
FUJIFILM Software Co., Ltd.
FUJIFILM Imaging Systems Co., Ltd.
FUJIFILM Imaging Protec Co., Ltd.
FUJIFILM Business Expert Corporation
FUJIFILM Recording Media Products
Division
FUJIFILM Medical Co., Ltd.

Fuji Xerox Co., Ltd.
Fuji Xerox domestic sales companies(37 companies)
Fuji Xerox Information Systems Co., Ltd.
Fuji Xerox System Service Co., Ltd.
Fuji Xerox Learning Institute Inc.
Fuji Xerox Printing Systems Co., Ltd.
Fuji Xerox InterField Co., Ltd.

Fuji Xerox Advanced Technology Co., Ltd.
Fuji Xerox Manufacturing Co., Ltd.
Fuji Xerox Service Creative Co., Ltd.
Fuji Xerox Service Link Co., Ltd.
Fuji Xerox overseas manufacturing
companies (4 companies)
Fuji Xerox Asia Pacific Pte Ltd
Fuji Xerox overseas sales companies(16 companies)*1 Privacy Mark (P-Mark): A mark granted by the Japan Information Processing Development Corporation (JIPDEC) to companies in which personal
information is handled appropriately.
*2 ISMS: Certification regarding the overall management framework for information including personal information (Information Security
Management System).
http://www.fujifilmholdings.com/en/sustainability/data/compliance/index.html*3 F
 or the certified companies of Fuji Xerox Group, please visit:

2.2.13 Preparations for Large Scale Natural Disasters
As the global environment changes, such as rising sea level by climate change and abnormal weather occurrence, risks
concerning natural disasters are increasing.
Based on the damage estimations, We are enhancing and reinforcing the anti-disaster measures as a part of the BusinessContinuity Plans (BCPs) to further improve the Group response to a wide-area natural disasters in Japan, including preparations
for a Tokai-Tonankai-Nankai multiplate earthquake (Nankai megathrust earthquake), Tokyo Metropolitan earthquake, eruptionof Mt. Fuji., torrential rain, river floods and rising sea level.
We also implement BCPs and reinforce employee safety measures for natural disasters specific to America, Europe, andSoutheast Asia, such as earthquakes, tornados, and wildfires.

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Governance
2.3 ｜ Innovation Management

2.3 Innovation Management
Under the Group’s corporate slogan, “Value from Innovation,” aimed at being continuously innovating—creating newtechnologies, products and services that inspire and excite people everywhere, the Fujifilm Group will continue to createa wide range of products and businesses, supported by the diverse technologies we have accumulated in manufacturing
photographic / motion picture film and other fields with the aim of resolving social issues in a broad range of areas.
In the drive to generate innovation, activities are underway to create innovative new products and services, as well as new
businesses and new values, chiefly in our priority areas of healthcare and highly functional materials.
We believe in the fundamental importance of engaging in face-to-face communication with parties outside the company, in
addition to building co-creation ties with equal relationship and sharing the same ambitions and goals with our partners, toachieve real innovation that will have a significant impact on society. For this purpose, we created an “Open Innovation Hub”
in Japan in 2014 as a center for these activities. As of June 2019, 3 of these centers have been created in regions including
the United States and Europe to accelerate collaborative efforts for open innovation. Moreover, in 2018 we set up a center
specializing in the development of the next-generation AI technology named “Brains” to advance these co-creation activities.

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Governance
2.4 ｜ Supply Chain Management

2.4 Supply Chain Management
2.4.1 Basic Approach
The Fujifilm Group lists “Strengthen CSR foundations across the entire supply chain including factors of the environment,
ethics, and human rights” as one of the priority issues of our CSR plan towards 2030, Sustainable Value Plan 2030 (SVP2030).
The majority of the suppliers of our production materials are Japan-based companies, with other from advanced andemerging countries. Regulations related to human rights, labor safety, and the environment vary in different countries; however,
we declare that we will not be complicit in any infringement of the human rights of our suppliers’ workers or in environmental
destruction through our production process.

2.4.2 Procurement Policy and Structure (Overview)
Fujifilm Group upholds the Fujifilm Group’s Procurement Policy as a group-wide policy. We believe it is important that thebusiness partners and suppliers, especially production materials suppliers, understand the importance of CSR (environment,
human rights, occupational health and safety, corporate ethics, etc.) and work together with us in resolving issues. Therefore,
we revised the Policy in 2015 and 2019, and added the aspects of CSR for our supplier evaluation standard.

Fujifilm Group Procurement Policy
The Fujifilm Group will conduct its procurement based on Fujifilm “Open, Fair, Clear” policy and the basic concepts listed
below. At the same time, we will build mutual trust and respect with suppliers.
1. The Fujifilm Group is committed to engage in procurement activities in compliance with laws, regulations and social
norms, paying full considerations to perspectives including human rights, environment, occupational health andsafety.
2. We will treat suppliers irrespective of nationalities with fairness and ensure that they are given equal business
opportunities. We are also committed to consider procurement from new suppliers.
3. The Fujifilm Group procure from trustworthy suppliers selected through comprehensive criteria that includes
quality, price, delivery time, technological capabilities, CSR activities and business continuity.
Note that ‘procurement’ under this policy covers not only the procurement of parts and materials for products, but also
procurement such as indirect materials, facility and maintenance services.
Established in October 2009, Revised in April 2019

Each of the Fujifilm Group business companies requests their suppliers to implement the Fujifilm Holdings Environmental
Policy and Procurement Policy in their CSR activities, including environment and labor.
● Requests to suppliers on environment

Fujifilm Green Procurement Standards
URL: https://www.fujifilm.co.jp/corporate/environment/pdf/greening/ff_greenbasic_ver3_2e.pdf
Fuji Xerox Green Procurement Standards
URL: https://www.fujixerox.co.jp/company/eco/green/pdf/green_procurement_standards_ver60_english.pdf● Requests to suppliers on overall CSR such as labor, human rights

Fujifilm Group Request to Suppliers (on the same page of Fujifilm Group Procurement Policy)
URL: https://www.fujifilmholdings.com/en/sustainability/vision/procure.html
Fujifilm CSR Procurement Guideline for Suppliers
URL: https://www.fujifilm.co.jp/corporate/environment/procurement/concept/pack/pdf/index_pdf_02_en.pdf
Fuji Xerox CSR Management Guidelines
URL: https://www.fujixerox.com/eng/company/csr/sr2018/suppliers/theme.html#anc01

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2.4 ｜ Supply Chain Management

2.4.3 Fujifilm Group Production and Procurement Characteristics
The Fujifilm Group stipulates the priority areas of its procurement strategy as follows: (1) Cost (price) improvement; (2) Constantrealization of stable procurement and supply (quality and delivery); and (3) Business Continuity Plan (BCP) for procurement.
We set annual targets for these areas for continuous improvement. As a part of this procurement strategy, we request ethicalprocurement to suppliers as specified in a mandatory measure, “Minimizing CSR risks (environment, human right & labor
management, corporate ethics) in suppliers.”
Our business companies, FUJIFILM and Fuji Xerox, manufacture significantly different products. Therefore, CSR risks
in their respective suppliers, production, and procurement conditions are diverse. The Fujifilm Group is reinforcing ethicalprocurement across the group taking into account such diverse characteristics and risks.

Characteristics of FUJIFILM Manufacturing
As well as medical, high precision, and optical devices, FUJIFILM manufactures a wide range of products, such as chemical
products and highly functional materials. The percentage of chemical products and highly functional materials among ourentire product range is around 80%, with medical, high precision, and optical devices accounting for around 20%.
(1) Chemical products and highly functional materials
Almost all of these products are manufactured in Japan, as well as in the US and Europe. One characteristic of manufacturing
such products is that many of the procured items for these products are chemical substances. One of the major risks
concerning chemical substances is that lack of appropriate management could cause adverse effects on human beingsand the environment (pollution, explosion, or other accidents), and contamination of products by hazardous substances. It isalso essential to adhere to the legal requirements of permitted chemical substances in products, such as the RoHS directive
and the REACH regulations in Europe. This is why we request our suppliers to follow the FUJIFILM Green Procurement
Standards in the two aspects of “management of the handling of chemical substances” and “management of information on
chemical substances in our products,” in addition to implementing these standards in our own factories. Further, to ascertain
the chemical substances used by our suppliers, since FY2010 we have been utilizing a system to gather, manage, andcommunicate information about the chemical substances contained in parts and members across the supply chain.
(2) Medical, high precision, and optical devices
We manufacture these products in Japan, the US, and Asia (mainly China). Many of the primary suppliers are Japanese
corporations with others based overseas. It is generally said that suppliers in Asian countries face a higher risk of businessstoppage due to labor disputes and tightening environmental regulations enforcement. Such suppliers face risks of delivery
delays to our factories and insufficient quality due to problems in suppliers’ factories. For this reason, we have been reinforcing
ethical procurement in China since FY2018, in a similar manner taken in Fuji Xerox, as described below.

Characteristics of Fuji Xerox Manufacturing
Some 70% of Fuji Xerox’s major products—multifunction devices and printers—are assembled in factories in China andVietnam. Fuji Xerox introduced ethical procurement in 2007 to ensure stable production in Asia. Thanks to the company’s
continuous efforts to understand the risk of operational stoppages in suppliers’ sites, and requests for improvement, delivery
delays from suppliers due to their environmental or labor problems have been reduced.

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2.4 ｜ Supply Chain Management

2.4.4 Supplier Code of Conduct
As a code of conduct for suppliers, FUJIFILM provides the CSR Procurement Guidelines and Fuji Xerox provides their CSR
Management Guidelines to suppliers. These guidelines cover items listed in the Fujifilm Group Code of Conduct that theGroup companies request their suppliers to follow, as well as all the items covered in the Code of Conduct required by the US
Responsible Business Alliance (RBA).
Reference: Fuji Xerox CSR Management Guidelines Contents List
* Fujifilm CSR Procurement Guidelines includes almost the same contents as below.

1. Human Rights and Labor (Social)
Prevention of Forced and Child Labor; Prevention of Unfair Discrimination and Privacy Infringement; Prevention of Violence,
Sexual Abuse, Sexual Harassment, and Excessive Punishment in Workplaces; Provision of Appropriate Wages and Proper
Management of Working Hours and Mandatory Days Off; Guarantee of Right of the Directly Employed for Organization andCollective Bargaining; Prevention of Work-Related Accidents at Workplaces and on Duties; Establishment of Measureson Treatment of Illnesses and Injuries and Maintenance of Health; Sufficient Healthcare Facilities and Welfare Measures;
Promotion of Human Resource Development (Capacity Building); Promotion of Third-Party Certification
2. Environment
Prevention of Global Warming; Promotion of Resource Conservation in Products (Reduced Use of Natural Resources);
Recycling and Proper Waste Disposal; Proper Management of Chemical Substances; Promotion of the Natural Environment
Preservation (Biological Diversity and the Ecosystem); Adherence to Administrative Procedures; Promotion of Third-Party
Certification of an Environmental Management System (EMS)
3. Corporate Ethics (Governance)
Corporate Ethics and Compliance Management; Anti-Corruption; Protection of Intellectual Property; Guarantee of Fair
Procurement Transaction; Establishment and Management of Raising Concerns and Whistleblowing; Establishment ofInformation Security System
4. Extended application of the provisions by suppliers to their suppliers (secondary suppliers for Fuji Xerox)
Fuji Xerox requests its suppliers to promote of recommendation and application of each of the three aforementioned
provisions to their suppliers.

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2.4 ｜ Supply Chain Management

2.4.5 Efforts for Improving Sustainability in the Supply Chain
The Fujifilm Group adopts ethical procurement promotion programs and implements the program policy (including the suppliercode of conduct), assesses supplier risks, and requests improvement and provides support for suppliers that face CSR risks(environment, human rights, labor management, and corporate ethics), as shown in the following process.
1. Notifying policies etc. to suppliers
Notifications at briefings to suppliers or by providing Code of Conduct documents.
Fujifilm Holds	Supplier Briefing for Chemical Substance Management Education every six months. On this occasion, we stipulate
our procurement policy and request their compliance.
Fuji Xerox	Submits supplier code of conduct (CSR Management Guidelines) to major suppliers every year, and requests theircompliance.

2. Risk assessment in suppliers
Risks are assessed by CSR self-check results and QCD results in suppliers. (QCD: Quality, Cost, Delivery)
Fujifilm• Request suppliers to undertake regular self-checks since FY2015. As a result, primary suppliers in Japan, Europe and the US havebeen assessed as low CSR risk.
• In FY2018, individual surveys at one assembly plant in China found four suppliers had CSR risks.
Fuji Xerox• Requests annual CSR self-check to critical suppliers since FY2007. In FY2018, Chinese and Vietnamese factories have identified 42
suppliers with CSR risks.
* The items of CSR self-check covers as follows:<Environment> 1.Prevention of Global Warming; 2.Promotion of Resource Conservation in Products (Reduced Use of Natural
Resources); 3.Recycling and Proper Waste Disposal; 4.Proper Management of Chemical Substances; 5.Promotion of the Natural
Environment Preservation (Biological Diversity and the Ecosystem); 6.Adherence to Administrative Procedures; 7.Promotion of
Third-Party Certification of an Environmental Management System (EMS); 8. Promotion of Recommendation and Application toYour Company’s Suppliers.
<Human Rights and Labor> 1.Prevention of Forced and Child Labor; 2.Prevention of Unfair Discrimination and Privacy Infringement;
3.Prevention of Violence, Sexual Abuse, Sexual Harassment, and Excessive Punishment in Workplaces; 4.Provision ofAppropriate Wages and Proper Management of Working Hours and Mandatory Days Off; 5.Guarantee of Right of the Directly
Employed for Organization and Collective Bargaining; 6.Prevention of Work-Related Accidents at Workplaces and on Duties;
7.Establishment of Measures on Treatment of Illnesses and Injuries and Maintenance of Health; 8.Sufficient Healthcare Facilities
and Welfare Measures; 9.Promotion of Human Resource Development; 10.Promotion of Third-Party Certification; 11.Promotion of
Recommendation and Application to Your Company’s Suppliers.
<Corporate Ethics> 1.Corporate Ethics and Compliance Management; 2.Anti-Corruption; 3.Protection of Intellectual Property;
4.Guarantee of Fair Procurement Transaction; 5.Establishment and Management of Raising Concerns and Whistleblowing;
6.Establishment of Information Security System; 7. Promotion of Recommendation and Application to Your Company’s Suppliers.

3. Instruction and improvement activities for suppliers with high CSR risks• Provides Onsite “Visit and Check” by expert team improvement. Monitors progress.
• Provides various seminars for suppliers.
Fujifilm• Provided Onsite “Visit and Check” in the four suppliers of the company’s Chinese manufacturing site as a trial and requested
correction of risk factors. Progress will be inspected in FY2019.
• Provides semiannual educational sessions to suppliers for chemical products and highly functional materials, which account for
about 80% of the company’s products. Requests them to adhere to FUJIFILM Green Procurement Standards.
• In FY2018, provided usage training program for chemSHERPA system, which enables 322 suppliers to share information aboutchemical substances in their products. All suppliers have started using this system.
Fuji Xerox• Expert teams from Fuji Xerox Shenzhen, Fuji Xerox Shanghai, and Fuji Xerox Hai Phong provided Onsite “Visit and Check” to 42
suppliers (factories) in China and Vietnam. Requested correction and now monitoring progress.
• Fuji Xerox production line down time (due to supppliers' CSR problems): Zero hours in Fuji Xerox Shenzhen and Fuji Xerox Hai Phong.
• Since 2014, Fuji Xerox Shenzhen has conducted seminars to suppliers in labor, safety, environment practical management. This is toprovide information to suppliers on rapidly changing labor and environmental regulations. To date, 25 seminars have been held and2,099 people from about 400 companies have attended.

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2.4 ｜ Supply Chain Management

CSR Self-Checks by Suppliers to Identify CSR Risks [Results for last three years and targets]

Requestfor selfcheck

Number of selfchecks conductedin critical suppliers

FY2016FY2017FY2018FY2019 Target

Fujifilm 427 (Japan,
China)

Fujifilm 262 (Japan,
North America)

Fujifilm 66 (Japan,
Europe)Fuji Xerox 305(Japan, China, Asia,
others)Fuji Xerox 296(Japan, China, Asia,
others)Fuji Xerox284(Japan, China, Asia,
others)Self-checks conductedby all critical suppliers in
the high risk area: 100%
(Both FUJIFILM & Fuji
Xerox)

92%

77%

53%

Response rate orconformance rate
(FUJIFILM)

Results

Most critical items
and the percentage
of suppliers whose
conformance rate
is 90% or higher

94.1% for mostcritical items
56.9% for critical
items

95.6% for mostcritical items
68.2% for critical
items

93.7% for mostcritical items
74.6% for criticalitems

Response rate: 50% ormore for FUJIFILM
90% or more for FX

2.4.6 Response to Conflict Minerals
The Fujifilm Group is aware of conflict minerals*1 issues, the mining of which causes human rights violations and disputes, andclearly declares that it will not be complicit, directly or indirectly, in supporting activities related to such disputes and humanrights violations. The Fujifilm Group manages minerals by following the five steps of the Due Diligence Guidance specified by
the Organisation for Economic Co-operation and Development (OECD) to identify actual and potential adverse effects from ourbusiness activities and prevent or alleviate such effects.
Fujifilm Group's stance toward the issue of responsible minerals procurement
URL: https://www.fujifilmholdings.com/en/sustainability/vision/procure.html

OECD 5 steps

Fujifilm Group efforts(1) Establish strong company
management systems

Procurement, sales, and HQ departments of Fuji Xerox that has strong requests from
customers, have formed an intra-company structure to accurately track the origin of minerals bymonitoring the relevant conditions. We are expanding this scheme throughout Group.

(2) Identify and assess risks inthe supply chain

The Fujifilm Group is not subject to reporting obligations based on Section 1502 of the DoddFrank Wall Street Reform and Consumer Protection Act, as the Group is not registered with
the U.S. Securities and Exchange Commission (SEC). However, we have more than one
SEC-registered client corporation in some of our businesses and these corporations haverequested our cooperation. Thus, we track mineral origins through monitoring our supply chain,verifying results, and identifying the country of origin following the procedures specified by the
Responsible Minerals Initiative (RMI)*2.
Fuji Xerox reports the investigation results to OEM product clients. Both FUJIFILM and Fuji Xerox
address issues for other clients individually.

(3) Design and implement
a strategy to respond to
identified risks

Although it was possible that minerals from conflict areas had been used, there was no proof
that any terrorist group was involved. Because there are recognized humane mining companies
and organizations in the area, we did not withdraw the mineral usage uniformly.

(4) C arry out independent
third-party audit of smelter/
refiner's due diligencepractices

The Fujifilm Group participates in the Responsible Minerals Trade Working Group of JEITA*3 anddiscusses RMAP*4 jointly with other companies. We encourage suppliers to use conflict-freesmelters that are verified by RMI after a third-party audit.

(5) R eport annually on supply
chain due diligence

The Fujifilm Group’s conflict mineral policies, measures, and results are disclosed on the official
website.

*1 Minerals (tantalum, tungsten, tin, and gold) regarded to be problematic because profits may be used for inhumane purposes or its mining may
infringe human rights.
*2 R
 MI = Responsible Minerals Initiative*3 J EITA: Japan Electronics and Information Technology Industries Association.
*4 R
 MAP: Responsible Minerals Assurance Process.

Results for Last Three Years and Target
FY2016FY2017FY2018FY2019 Target

Supplier response rate for conflictminerals survey (FX)

96.5%

100%

99.2%

95% or higher

Percentage of conflict-free smeltersin conflict minerals survey (FX)

40.0%

46.2%

54.8%

Continuous improvementof conflict-free smelter
percentage
FUJIFILM Holdings Corporation Management Report 201939

Governance
2.4 ｜ Supply Chain Management

2.4.7 Efforts in Paper Procurement
As Fuji Xerox sells paper for printers and copiers, the company declares that it procures pulp from forests that are managedwith consideration for the environment and human rights, avoiding any involvement in forest destruction and human rights
infringements.
To realize this, we established the Environmental, Health, and Safety Requirements regarding Paper Procurement. These
rules specify paper quality standards for procurement, as well as selection criteria for material suppliers. Through theserules, we request material suppliers to pay attention to biodiversity and respect the rights of local residents in their business
operations.
We also hold an annual meeting of the CSR Paper Procurement Committee, chaired by the director responsible for
procurement, in order to confirm the compliance status of existing suppliers and to select new suppliers.
Paper Procurement Efforts KPI

Percentage of suppliers insideand outside Japan fulfilling ourpaper procurement requirements(Fuji Xerox)

FY2016FY2017FY2018FY2019 Target

100%

100%

100%

100%

2.4.8 Ethical Procurement Efforts in Logistics
The number of items delivered by courier services has significantly increased since 2017 due to continued popularization ofinternet commerce. This has caused social problems in logistic companies’ employees, such as long working hours by courier
drivers, death from overworking, and environmental and safety issues caused by poorly maintained vehicles.
Fujifilm Logistics Co., Ltd., which delivers Fujifilm Group products, has been requesting its logistics partners (primary
suppliers) to cooperate in our ethical procurement for logistics since FY2009. Through such requests, logistics partners
conduct CSR self-checks and if they identify that their conformance rate is less than 90%, Fujifilm Logistics visits the partnercompany to offer advice for correction.
Ethical Procurement Effort KPI in Domestic Logistics

Percentage of companies with
90% or more CSR self-checkconformance rate
(Fujifilm Logistics)

FY2016FY2017FY2018FY2019 Target

100%

97.4%

100%

100%

2.4.9 Collaboration with International Initiatives in the Supply Chain Area
The Fujifilm Group participates in international initiatives to meet the evolving global-level of production and procurement
standards and deliver our products with confidence, valuing the importance of global CSR trends. Below are the initiatives inwhich we participate in the supply chain area.
• Joint Article Management Promotion-consortium (JAMP)
JAMP aims to disseminate a system to manage chemical substance information and smoothly communicate suchinformation across supply chains. FUJIFILM is a member of JAMP and our CSR-related director takes the role of the deputy
chairman.
• United Nations Global Compact (UNGC), and its Action Platform on Decent Work in Global Supply Chains
Fuji Xerox signed Global Compact. The company is the only Japanese corporate member of this action platform and ourCorporate Vice President responsible for corporate wide procurement signed the commitments recommended by theplatform.
• Responsible Minerals Trade Working Group of JEITABoth FUJIFILM and Fuji Xerox participate in the Responsible Minerals Trade Working Group led by the Japan Electronics
and Information Technology Industries Association (JEITA), the industrial organization of the Japanese IT and electronics
industry.

FUJIFILM Holdings Corporation Management Report 201940

Governance
2.5 ｜ Customer Relationship Management

2.5 Customer Relationship Management
2.5.1 Basic Approach for Customer RelationshipAs we declare in our corporate philosophy, the Fujifilm Group aims to provide the best quality products and services which
are safe, appealing to customers and provide them with peace of mind, by basing our management on Customer Satisfaction(CS).” In order to achieve customer satisfaction, it is important to obtain the views of a wide range of customers and to have amechanism in place for effectively reflecting these in our products and services. For this purpose, we pay special attention tocommunicating with our customers at customer centers which are our point of contact with them. We aim to correctly grasp
their views, as well as seek to respond in a speedy, kind, accurate and fair manner, and we are constructing a system to linkthese views to improvements in product development and our work processes.

2.5.2 Structure for Customer Relationship
Mechanisms for Communicating with Customers
Customers
Daily customer communication(complaints, claims, requests, inquiries, etc.)

Changes in the environment surrounding
customers, economic trends, etc.

Employees who interface
with customers

Integrated Customer Support Center

Official
websiteCustomer evaluation

Marketresearches

ISO 10002
Self audits based on the Complaints
Handling Management System
CS program evaluations

CS improvement activities at customer contact points
Strengthening of relationships with individual customers; improvement ofoperating processes based on remarks, opinions, and requests, etc.

See
Think
Plan
Do

CS improvement activities by each core group
Improvement of operating processes based on remarks, opinions,and requests; strengthening of product planning ability, etc.
Top management’s CS activities
Decisions on companywide policies and methods for resolving
important issues by the Management Council, etc.

Competitive
Benchmarking
CS Program
User CS Program

CS Program (Improvement activities based on the CS surveys)
Objectives for the Use of Survey Results

The Two CS Programs
Competitive Benchmarking CS Program

Complementary relations
Promote improvements based on customer evaluations
and enhance relationships with individual customers.

T

Company-wide
improvement activities
as well as activities by
each site and function

S

D

Customers

P

Activities linked to grasp the CS market position,enhance our strengths, and improve on our weaknesses.

CS improvement activities extracted
from issues when comparedwith competitive companies

CS improvement activities based on
individual customer evaluations

Users CS Program

FUJIFILM Holdings Corporation Management Report 201941

Governance
2.5 ｜ Customer Relationship Management

2.5.3 Efforts in Customer Relationship Management
1. Customer satisfaction survey results(1) Customer satisfaction survey
Customer satisfaction percentage was calculated in the area of FUJIFUILM Holdings to take track of customer satisfaction
where after-sales services are critical, i.e., in photograph-related products, digital cameras, medical systems and the documentbusiness.
Until FY2016 the figure was limited to the document business. In FY2017, the areas of digital cameras and medical products
were also added for better customer satisfaction coverage.
①Change in Customer satisfaction survey

Unit: %FY2015FY2016FY2017FY2018Target in
FY2018Percentage of satisfied customers
among all customers (%)

93.2

93.2

83.5

85.1

84

Data coverage (e.g. within sales,customers, etc.)

47

46

73

77

73

②Customer satisfaction for business fields in the above data

Fujifilm
Fuji Xerox

Unit: %

Business field

FY2017FY2018

Imaging (digital cameras and photograph-related products)

85.2

89

Healthcare and Materials (medical systems)

80.0

78

Document

93.2

91(2) Customer satisfaction survey results (Fujifilm)
We conducted a survey on the following questions for customers registering with us after purchasing our products, as well as
for those using the support desk for queries regarding various products.
Unit: %

Evaluation of the company (products)
including the quality of response
from support centers, not only
products and services

Evaluation of the quality of response
from support centers

Assessment items

FY2017FY2018Willingness to recommend tofriends and acquaintances

70

69

Willingness to use Fujifilm
products in the future

80

77

Ease in understanding the
response

85

80

Ease in hearing or reading

82

82

Response speed

8582(3) Customer satisfaction survey results (Fuji Xerox)
Customers willing to continue business with Fuji Xerox

Unit: %FY2017FY2018

95.7

94.9

Received awards for customer satisfaction survey in 2018
• J.D. Power 2018 Japan Color Copier Customer Satisfaction Study <Large/Mid-size Business>: Highest for nine years
in a row.
[Study based on a total of 6,868 companies with 30 and more employees. URL: http://jdpower-japan.com (in Japanese only)]• J.D. Power 2010-2018 Technical Support Call Center Satisfaction Study: Highest in J.D. Power 2018 Technical Support
Call Center Satisfaction Study <Copiers/Printers>.
[Study based on a total of 5,109 companies with 5 and more employees. URL: http://jdpower-japan.com (in Japanese only)]• Ranked top in the Consulting/Upstream Design Services Category of Nikkei Computer’s Customer Satisfaction Survey,
in the September 13, 2018 issue of Nikkei Computer.

FUJIFILM Holdings Corporation Management Report 201942

Governance
2.5 ｜ Customer Relationship Management

2. Online service usage status

Unit: %FY2015FY2016FY2017FY2018Target in
FY2018

Online customers*1(Percentage of customers who use
online services or sales platforms
among all customers)

93.2

93.2

83.5

85.1

84

Online sales*2(Percentage of online sales (direct
sales and advertising))

47

46

73

77

73

*1: O
 nline customers refers to customers using Fuji Xerox's domestic multifunction machine online remote maintenance contract.
*2: O nline sales were calculated from the business fields of imaging, life science, and document solution, where online business has been
reinforced.

3. Efforts in the Healthcare Field
The Fujifilm Group, which began as a manufacturer of photographic and motion picture film, now includes 15 different
businesses. Among them, the healthcare field forms one of our major businesses. As it affects people’s lives directly, we
implement special efforts, as described below.
①Efforts to improve access to healthcare services

The Fujifilm Group appoints Health as one of our priority areas and pours a range of efforts into this area. Setting Improve
Accessibility to Medical Services as the priority issue in the area, we are working to introduce a health check service withindifferent regions, and are developing an early tuberculosis diagnosis system for use in developing countries.
URL: https://www.fujifilmholdings.com/ja/sustainability/svp2030/health/02.html②Efforts to ensure fairness and transparency in the healthcare business

Just as in our other business fields, the Fujifilm Group aims to improve the quality of life for people through our healthcare
products, services, and technologies.
As the healthcare field is one of the most critical business that directly influences on people’s life, we promote the following
activities to ensure the transparency of our relationships with medical institutions and trust in general.
1) Sales activities through fair competition
All activities conducted by the Fujifilm Group follow industrial regulations, such as the Code of Ethics, the Charter of Business
Behavior, the Promotion Code of the Medical Devices Industry, and the Fair Competition Code of the Medical Devices Industry
in Japan, as specified by the Japan Federation of Medical Devices Associations, the Japan Fair Trade Council of the Medical
Devices Industry, and the Japan Pharmaceutical Manufacturers Association. Further, we have set up the Fujifilm Group
Charter for Corporate Behavior and the Fujifilm Group Code of Conduct, as well as intra-company regulations specified byGroup companies involved in the healthcare business. Employees in each company carry out their business adhering to theseregulations and through fair business competition.
2) Information disclosure
The Fujifilm Group regularly discloses healthcare business information, such as funding, in order to gain the wider understandingof society with regards to the manner in which the Group operates its business to a high ethical standard.

FUJIFILM Holdings Corporation Management Report 201943

Environmental Aspects
3.1 ｜ Environmental Policy and Management System

3.1 Environmental Policy and Management System
3.1.1 Basic Approach
The Fujifilm Group organizes activities aimed at contributions to “sustainable development” in all the Group’s business activities,
in accordance with its environmental policy (Fujifilm Group Green Policy).

Fujifilm Group Green Policy
Basic Policy“Sustainable development” is the most important issue for our planet, the human race, and all business entities in the 21st
century. Through all products and services and businesses, we will strive our contributions to “sustainable development”
by initiative to address climate change, promote resource circulation, ensure chemical safety, preservation for regional
environment and biodiversity conservation.
Action Guidelines
1. W
 e will contribute to solving environmental issues with original and advanced technology in the product life cycle.
2. We will comply with the rules established by each country and region, self-regulations of the Fujifilm Group companies,
standards, individually agreed requirements.
3. As a member of the supply chain and community, we will work with each stakeholder to promote activities to solve
environmental issues.
4. We will actively disclose information on environmental initiatives and their results to various stakeholders such as local
communities, governments, shareholders and investors, NGOs and NPOs, employees of the Fujifilm Group companies,
and ensure good communication.
5. We strengthen the foundation to address environmental issues voluntarily by providing education to employees of eachgroup company thoroughly to raise awareness.
Established in October 2002, Revised in April 2019

3.1.2. Environmental Management
To ensure that the Fujifilm Group's business philosophy is applied in all business processes to generate rapid business results,
Fujifilm and its subsidiaries and affiliates have introduced an integrated management system (IMS)* for the consolidation of
all business and CSR activities. By evaluating each business operation from the perspective of the various stakeholders,these activities have led to continual business improvement, including improvements in operational quality and reduced
environmental impact.
* Integrated management system (IMS): Management system integrating an environmental management system (EMS), quality management system(QMS), occupational health and safety assessment system (OHSAS) and information security management system (ISMS).

FUJIFILM Holdings Corporation Management Report 201944

Environmental Aspects
3.1 ｜ Environmental Policy and Management System

Fujifilm FY2019 Priority Issues
Priority Issues

Strategies

1. A ddress climate change1) Continually promote CO2 emission reduction at each of the stages of product lifecycle.
(procurement, manufacturing, transportation, use, disposal)2) D evelop and market products and services that will contribute to CO2 emission reduction.
3) Promote a group-wide energy strategy and activities.
① Development and establishment of energy conservation measures throughout the group② Pursuit of energy efficiency in cogeneration system③ E xplore and seize opportunities for using renewable energy.

2. P romote recycling ofresources

1) Promote efficient use of water resources.
2) D evelop and market products and services that will contribute to the conservation of water
resources.
3) Use resource efficiently by promoting the 3Rs (Reduce-Reuse-Recycle) in products.
4) Improve the resources used per unit of production.
5) Reduce waste and promote the concept of Zero Waste Disposal.

3. A
 ddress energy issues
toward a non-carbon society
4. E nsure product andchemical safety

1) Develop products and technologies that will contribute to conserving, storing and creatingenergy.
1) Evaluate and improve the administration of internal regulations concerning product safety andchemical management.
2) C ontinue dissemination of approaches and systems to the supply chain concerning
management of chemicals in products.
3) Continue to improve the systems for regulatory compliance to support the expansion of
product categories.
4) Contribute to chemical safety through the use of internal chemical library and safety evaluation.

5. S trengthen CSR foundations
across the entire supply
chain1) Ask suppliers to engage in business activities with consideration for the environment, ethics
and human rights, and carry out activities for investigating and improving their implementation
status.
2) A udit and improve the CSR activities at priority suppliers.

6. Environment and safety risk
management1) Maintain systems that abide by laws and regulations and adheres to voluntary managementtargets.
2) S trengthen the system of occupational health and safety activities.
3) Ensure safety management based on the risk assessment of chemicals.
4) Continue to control the level of VOC emissions generated from the production process.

7. Information disclosure andcommunication of relevant
information

1) Enhance information disclosure through various methods. (e.g., Corporate reports, websites)2) E nhancement of the disclosure of environmental performance information.

8. Employee education

1) Educate employees in the areas of product safety, occupational safety and environmental law
regulation.

Fuji Xerox FY2019 Priority Issues
Priority Issues

Strategies

1. A ddress climate change1) Contribute to help reduce CO2 emissions from customers' office and factory by providing
energy saving products, service and solutions2) R educe CO2 emissions by installing new energy-efficient equipment and improving
productivity in production process at the development and production sites3) Reduce CO2 emissions in office by reforming employees' work style4) Reduce CO2 emissions by improving efficiency in product logistics

2. P romote recycling ofresources

1) Establish next generation environmentally conscious technologies2) R educe resource input with lighter equipment
3) Reduce the use of new resources by recycling used parts
4) Reduce waste output and promote recovery of valuable substances at production andproduct development sites5) Reduce water usage in production and product development sites

3. E nsure product andchemical safety

1) Reinforce measures against laws and regulations to reduce chemical substance risks fromproducts (observing RoHS, REACH, etc.)2) E xpand and strengthen risk assessment method against laws and regulations3) Promote environment and safety activities

4. S trengthen CSR
foundations across theentire supply chain
5. Information disclosure andcommunication of relevant
information
6. Employee education

1) Promote sustainable paper procurement taking into consideration the forest ecosystems1) Stabilize the operation of the environmental performance data management system2) E nhance information disclosure through various methods. (e.g., websites)
1) Educate employees in the areas of product safety, occupational safety and environmental law
regulations.
FUJIFILM Holdings Corporation Management Report 201945

Environmental Aspects
3.1 ｜ Environmental Policy and Management System

Environmental Report – Quantitative Data

Material Flow*O rganizations covered in the environmental performance data are,as a general rule, those that are shown in the consolidated financial
statements, and are significant in terms of environmental burden.
However, certain sales and manufacturing (assembly) subsidiaries
are excluded.
Those not shown specifically are included in the tabulation figures
above. Moreover, figures for the Group total may not reflect the sumof each subtotal.

Direct control over the Fujifilm
Group’s environmental burdens

Wastematerial

81.2 kilotons

Discharged
water

O
U
T
P
U
T

Atmosphericemissions

Water*6..........39.7 million tons
BOD*7 .................... 27.4 tons
COD*7 ....................... 94 tons
Total nitrogen*7......... 169 tons
Total phosphorus*7.. 1.93 tons

CO2*1 .........1,720 kilotons

Atmosphericemissions

Atmosphericemissions

Atmosphericemissions

CO2*3 .... 340 kilotons

CO2*4 .... 395 kilotons

CO2*5 .... 119 kilotons

Atmosphericemissions
CO2*2 ..... 1,105 kilotons
VOC ......... 0.81 kilotons
SOx............... 21.8 tons
NOx................ 326 tons
Soot .............. 5.07 tons

I
N
P
U
T

R
E
C
Y
C
L
E

Procurement

R&D/Manufacturing

Transportation

Use

Disposal/Recycling

Resource extracting,transporting, refining,
synthesizing, processing,and materials transporting

Electricity used,
Oil and gas used,
Water used

Light diesel oil
and heavy oil used,
Electricity used

Electricity used,
Water used

Waste combustion
recycling energy

Metal (aluminum, steel, etc.)............................122 kilotons
Others ..................191 kilotons

Electricity... 1,135 million kWh
Purchased energy ...... 195 TJ
Oil*8 .......................... 29.0 ML
Natural gas*9.................... 228 million Nm3
Water ...........42.8 million tons

Light diesel oil, etc*11................................. 132 ML

Electricity*12.................... 739 million kWh

Combustion amount(estimation)*13 ....... 32 kilotons(paper/PET/TAC, etc.)

Collecting used products(Multifunction devices /PS plates/CTP plates, etc.)

Material
recycling
Aluminum, PET,
Silver, TAC*1 Environmental burdens due to raw materials procurement(CO2 emitted during the process of extracting,transporting, refining, synthesizing, processing, andtransporting raw materials) is calculated for the main raw
materials procured.
*2 Environmental burdens due to product manufacture is
calculated based on the total amount of energy (electricity,
petroleum, and gas) consumed in the production process.
*3 For the calculation of environmental burdens due to
product transportation, estimates are made based on
domestic and overseas transportation methods anddistances traveled. The typical amount of CO2 emissions
per unit of weight and distance for each method andcorrection factors such as the yield rate are multiplied by
the weight of the raw materials procured.

Amount ofcyclic waterused*1063.7 million tons

*4 For copy machines, printers, and fax machines,
environmental burdens due to use of products is calculated
as energy consumption for a 5-year period for the machines
installed this year. For other products, the estimated numberof machines in operation is multiplied by typical energy
consumption.
*5 Environmental burdens due to product disposal is calculated
based on the estimation of stress on the environment
caused by the disposal of the raw materials procured.
*6 Wastewater released as a result of business activities*7 Volume released to public water*8 Total of heavy oil A, heavy oil C, kerosene, light diesel oil,and gasoline (Amounts of the petroleum-based products
are summed after appropriated energy conversions, and thetotal is expressed in terms of the amount of heavy oil A.)

Material
recycling*9 Total of natural gas, liquefied natural gas (LNG),
urban gas, butane, and liquefied petroleum gas (LPG)(Amounts of the gases are summed after appropriate
energy conversions, and the total is expressed interms of the amount of urban gas.)*10 T
 his includes the amount of water used in a cyclicmanner.
*11 C
 alculation assuming transport by truck*12 B ased on the average CO2 emission coefficient of theFederation of Electric Power Companies of Japan
*13 H
 ypothetical combustion rate for each substance
used(For the above, data from the input-output table andother sources are used to obtain CO2 emissions per unitof output.)

FUJIFILM Holdings Corporation Management Report 201946

Environmental Aspects
3.1 ｜ Environmental Policy and Management System

Progress of “Design for Environment”
The Fujifilm Group has been implementing resolutions to environmental issues for our products and services to promote
design for the environment, including a mechanism to set targets for environmental performance at the product design
stage, introduction of a quantitative evaluation through lifecycle assessment, and introduction of the Green Value Products
Certification System to certify products with reduced environment impact or that contribute to reductions in the environmental
impact.
FY

Promoteenvironmental
labeling

Management of chemical
substances contained Overall design for environment

2002

Formulationof rules

2004

2006

2007

2008

Implement for all new products
and upgrade products (Fujifilm)

2009

2010

2011

2012

2013

2014

Formulation of
calculation guidelines
for environmental
contribution effect

Provision of
information on
chemical substances

2017

Revisionof rulesRevisionof rulesIntroduction of JAMP*1 mechanisms

2019

Contribution to
50 million ton
CO2 reduction
in 2030
Contribution to
35 million ton
water treatment
in 2030

Implementation and utilization

Revisionof rulesRevisionof rulesPromoteTransition
steadytooperations
chem
3
SHERPA*

Promote steady operations(Obtain information from suppliers, deploy overseas)

Ecoleaf

2018
Revision (Additionof environmentallyconscious productcertification program)

Implementation and utilization

Formulation ofwater footprint
calculation
guidelines

Self audit

2016

Making internal
system torespondto ABS*2

Revision of rules(Visualization oftargets & assessment)

Formulationof rules2015

Revision(Addition of
biodiversity
conservation)

Carbon footprint
PLATE to PLATE label (Type II)
Carbon offset*1 Joint Article Management Promotion Consortium*2 ABS (Access and Benefit-sharing): Access to genetic resources and the fair and equitable sharing of benefits arising from their utilization*3 chemSHERPA: A scheme that facilitates sharing information on chemical substances in products

3.1.3 EMS: Certification/Audit/Verification
Status of EMS Certification and Audit in FY2018
Certification/audit/verification system by specializedcompanies with International Certification (ISO14001, EMAS)

Coverage: 60%

Certification/audit/verification system by internal experts

Coverage: 40%
Our internal experts communicate specific instructions basedon the internal FRC rules and FRC policy for activities, andverify the activities reported through environmental intranet.

Total Coverage of Environmental Management System (EMS)
for our company (The sum of the above two)100%

Related URL: https://www.fujifilm.co.jp/corporate/environment/preservation/greenpolicy/index.html (in Japanese only)

3.1.4 Response to Environmental Laws and Regulations
Legal Compliance and Reports on Complaints in FY2018
In 2018, there was one violation (which was overseas) of environment-related laws and no customer complaints, and two
incidents (of which one was overseas). The legal violation issue concerned management of the transportation of hazardous
materials—preventive measures have already been completed.
Japan

Overseas

Group total

Number of legal violations (number of cases solved)

0 (0)

1 (1)

1 (1)

Number of complaints (number of cases solved)

0 (0)

0 (0)

0 (0)

Number of incidents (number of cases solved)

1 (1)

1 (1)

2 (2)

FUJIFILM Holdings Corporation Management Report 201947

Environmental Aspects
3.1 ｜ Environmental Policy and Management System

Responses to Environment-Related Complaints and Legal Violations in FY2018*1
Company/Site name

Description

Responses

FUJIFILM Wako Pure Chemical Corporation

Leakage and runoff of harmful
substances when delivered by tanker.

Review of operational procedures
and moving containers inside thebreakwater. Preventive measures
have been completed.

FUJIFILM Manufacturing U.S.A. Inc.

Lack of education for transporters
and inadequate labeling*2

Education on how to handle
hazardous materials for transporters
and proper labeling have been
completed.

FUJIFILM Manufacturing U.S.A. Inc.

Leakage of hazardous materials
during transportation

Introduction of double layered
containers to prevent leaks has been
completed.

*1 Relatively minor violations have been excluded.
*2 Occurred in FY2017; however, administrative action was implemented in 2018.

FUJIFILM Holdings Corporation Management Report 201948

Environmental Aspects
3.2 ｜ Climate Change Strategy

3.2 Climate Change Strategy
3.2.1 Basic Approach
The Fujifilm Group has set CO2 emissions reduction targets toward 2030 to create of a carbon neutral society aimed at by theParis Agreement. Along with CO2 emissions reduction across the entire product lifecycle (from material procurement, productmanufacturing, transportation, use and disposal), we are continuing to actively reduce CO2 emissions in society throughproviding our products and services. At the manufacturing stage, we direct our efforts at using lower carbon energy sources,
including adopting and utilizing renewable energy, in addition to the promotion of energy saving and efficient energy usage.
Targets and Progresses of Climate Change
Long-term target: 	Reduce the Fujifilm Group’s CO2 emissions by 30% by FY2030 (compared to the FY2013 level)
Progress: 22% reduction at the end of FY2018 (compared to the FY2013 level)
Mid-term target: 	Reduce the Fujifilm Group’s CO2 emissions by 30% by FY2020 (compared to the FY2005 level)
Progress: 27% reduction at the end of FY2018 (compared to the FY2005 level)
Short-term Target:	Reduce the Fujifilm Group’s CO2 emissions by 1% by FY2019 (compared to the FY2018 level)
Long-term targets are set down in SVP2030 and certified as Science Based Targets by the SBT Initiative.

Renewable Energy Usage Targets:• Converting 50% of purchased electric power to renewable energy-derived power by FY2030• Converting 100% of purchased electric power to renewable energy-derived power aiming at zero CO2 emissions from ourenergy consumption by converting using fuels to hydrogen in our in-house cogeneration systems by FY2050.
• This target was certified as being in line with the purpose of the RE100 by the Climate Group, an international NPO; wejoined the RE100 in April 2019.
Renewable Energy (Electric Power) Consumption

Renewable energy consumption

Unit: MWh

FY2014FY2015FY2016FY2017FY201822,97846,675102,552

101,435

96,1003.2.2 Major Activities
At Fujifilm Group, the Energy Strategy Promotion Committee has been working group-wide to maximize efficiency in energy
usage and to seek in the energy purchase based on lower carbon resources. We have been working to reduce environmental
impact through our products and services, based on internal rules concerning Design for Environment.
We are directed efforts to the active introduction of renewable energy, both in Japan and other countries, including
the introduction of wind power-generated electricity at FUJIFILM Manufacturing Europe B.V. (Netherlands), installation of aphotovoltaic power facility at its Kumamoto Plant (Japan) and installation of a new large-scale photovoltaic power facility at
Fujifilm Printing Plate (China) Co., Ltd., in FY2018.
In January 2019, the Fujifilm Group established a renewable energy usage target, and the Group plans to continue pursuingfurther energy conservation and introducing renewable energy sources to meet its CSR targets for the year 2030 as laid out
in SVP2030.

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Environmental Aspects
3.2 ｜ Climate Change Strategy

3.2.3 Strategy and Management for the Climate Change
At the Fujifilm Group, the Energy Strategy Promotion Committee has been working group-wide to maximize efficiency inenergy usage and to seek further CO2 emissions reductions at the procurement stage. We are promoting these measures
proactively throughout the Group. We are utilizing the carbon pricing scheme (price of CO2 emissions) to evaluate risks andopportunities for climate change, and are now examining impact probabilities and future measures.
At the manufacturing stage, we promote CO2 emissions reduction measures that include improvements to efficient energy
usage, conversion to renewable energy-derived electric power, conversion of natural gas and heavy oil used in our in-housecogeneration systems to hydrogen sources (after FY2030). At the procurement stage, we are reducing the input of material
resources by a more sophisticated scheme for reusing and recycling them. In response to the physical risks accompanying theclimate change, we are introducing risk countermeasures for product supplies in procurement and manufacturing in various
countries.
Furthermore, we are contributing to reducing CO2 emissions on a global scale by promoting design for the environment
and providing, disclosing and introducing appealing products and solutions that have a high CO2 reduction efficiency throughthe FUJIFILM Holdings Environment Conscious Certification System (established in May 2018).
Information Disclosure Based on TCFD
In December 2018, the Fujifilm Group announced that it would endorse the recommendations issued by the Task Force on
Climate-related Financial Disclosures (TCFD).
Furthermore, we are participating in the TCFD support program of the Ministry of the Environment and have started ascenario analysis on climate change.
GovernanceRisk Management• Deliberate on climate change risks and opportunities at the
ESG Committee (chaired by the President) to reflect them in ourmanagement, and report to the Board of Directors.
[Examples] Establish a target for renewable energy use and endorse the TCFD
recommendations.
 Join RE100, the global corporate leadership initiative.

• Monitor the levels of CO2 emitted by each business and through the
product lifecycle with the global system.
• Analyze factors affecting energy efficiency and CO2 emissions at theEnergy Strategy Promotion Committee.
• Identify water risks using indexes for “water stress,” “water usage”
and “relation to business” at all sites.

Strategy

Index and Target• Establish Sustainable Value Plan 2030 (SVP 2030) with FY2030 as its
long-term goal.
• Identify risks and countermeasures.
[Physical risks] Determine raw materials procurement and factory production
stoppages caused by abnormal weather (floods etc.).
 Establish Business Continuity Plans (BCPs) to decentralize raw
materials suppliers and production sites.
[Transition risks] Evaluate financial risks of the carbon pricing scheme and promote
the introduction of renewable energy.
 Converting to 100% renewable energy at FUJIFILM Manufacturing
Europe B.V. in the Netherlands, etc.
• Develop and distribute products that mitigate and address
climate change making use of the internal certification system forenvironmentally conscious products Energy-saving multifunction devices, data archive storage system,
process-less thermal CTP plates, etc.
• Convert not only purchased electric power but any fuels used byin-house cogeneration systems into renewable energy using newtechnologies such as hydrogen, and aim for zero CO2 emissions.
 Clarify our approach to a non-carbon society through RE100, theinternational initiative, and promote infrastructure development as aconsumer.

• Target for reducing CO2 emissions (Certified by Science Based
Targets).
 Reduce CO2 emissions by 30% across the entire product lifecycle by
FY2030 (compared to the FY2013 level).
• Renewable energy usage target Convert 50% of purchased electric power to renewable energyderived power.
 Convert 100% of purchased electric power to renewable energyderived power. (Aim at zero CO2 emissions from energy such as
electricity, fuels, etc.)• Water usage reduction target Reduce the amount of water used in production by 30% by FY2030(compared to the FY2013 level).

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Environmental Aspects
3.2 ｜ Climate Change Strategy

3.2.4 Data Related to Climate Change Measures
GHG Emissions (Scope 1, 2)
Unit

Total direct GHG
emissions (Scope 1)

Totalemissions

Total indirect GHG
emissions (Scope 2)

Totalemissionst CO2e(metric tons CO2
equivalents)

t CO2e(metric tons CO2
equivalents)

FY2014FY2015FY2016FY2017FY2018671,000

662,000

635,000

604,000

594,000

663,000

606,000

569,000

530,000

512,000

Scope 1: CO2 emissions in fuel.
Data coverage is for 100% of total sales
The above Scope 1 & 2 data have been verified by the third party organization: SGS Japan, Inc.

CO2 Emissions (Scope 1, 2, 3)
FY2016
4,639
14%
12%
75%

CO2 Emissions (kt- CO2/year)
Scope 1
Scope 2
Scope 3

FY2017
4,360
14%
12%
74%

FY2018
4,082
15%
13%
73%

FY2018 Results of GHG Scope 3 Emissions for Fujifilm Group
Purchased
goods
andservices

Capital
goods

55.9

7.7

Unit: %

Downstream Processing
Fuel and Upstream
Waste
End-of-lifetransportationenergy- transportation generated Business Employee Upstreamof
Use of sold treatment Downstream
leasedandandrelatedintravel commuting assets
soldproducts of sold leased assets
distribution products
activities distribution operation
products

1.9

0.3

0.3

1.2

－

0.6

11.4

1.8

2.9

4.0

FY2018 Results for Fujifilm Group

Items

12.1

Unit: kt-CO2/year

Procurement

Manufacturing

Transportation

Use

Disposal

Total

1,720

1,105

340

428

86

3,680

PET, TAC, etc.

303

Gas

514

Aluminum

1,207

Petroleum

79

Copiers/Printers/
Fax machines

210

Electricity

512

340

Medical equipment

52

Minilab27

Copiers/Printers/
Fax machines359

Others686* Trading emissions are allocated to Use and Disposal.

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Environmental Aspects
3.2 ｜ Climate Change Strategy

CO2 Emissions*

Unit: kt- CO2/year

R&D/
Manufacturing/
OfficeFY2014FY2015FY2016FY2017FY2018Japan/Manufacturing

921

894

853

782

761

Japan/Nonmanufacturing

27

30

33

32

30

Overseas/Manufacturing

346

308

268

278

274

Overseas/Nonmanufacturing

40

37

50

43

40

Group total

1,333

1,269

1,204

1,134

1,105

Vehicle

33

31

31

31

29

Total

1,366

1,299

1,235

1,165

1,135

* Calculation method: Calculation of CO2 emission by energy usage specified in the Act on the Rational Use of Energy. Emission coefficient byelectric power utility used for purchased power.

2018 CO2 Emission by Region* (R&D/Manufacturing/Office)

Unit: kt-CO2/year

791

Japan

Overseas

Americas (USA, Canada & Brazil)

152

Europe (Netherlands, Germany, Belgium, UK & France)

51

China

78

Asia excl. China & Oceania (Australia, South Korea, Singapore, etc.)

33

Group total

1,105* Calculation method: Calculation of CO2 emission by energy usage specified in the Act on the Rational Use of Energy. Emission coefficient byelectric power utility used for purchased power in Japan, and emission coefficient released by IEA for each country used for other countries.

Annual Changes in Total CO2 Emissions in Domestic Logistics*

Total CO2 emissions

Unit: t- CO2/year

FY2014FY2015FY2016FY2017FY201845,63350,22949,761

47,10045,846* Total CO2 emissions are calculated as the amount of CO2 emitted by FUJIFILM Logistics Co., Ltd. in its logistics activities for the Fujifilm Group
companies. Since FY2006, we shifted calculation method to the method based on revised Energy Conservation Law (travel distance of empty cars
not included in calculations, etc.).

Annual Changes in Amount of CO2 Reductions and Reduction Rates through Transportation Efficiency Improvements*(Domestic distribution)
FY2014FY2015FY2016FY2017FY2018Amount of CO2 reductions(tons of CO2/year)

11,404

12,692

15,79013,156

12,927

CO2 reduction rate (%)

20.0

20.2

25.4

21.8

22.0

Amount of CO2 reductions
Total CO2 emissions + CO2 reductions* In the FY2018, we enforced our activities for CO2 reductions in collaboration with a specified consigner. Major reduction initiatives, which proved
effective, include starting modal shifts (road transport to sea transport) in FY2017, as well as improving carrying efficiency by double stacking
during transport and enhancing gasoline mileage by eco-driving. The amount was a total figure of each facility’s CO2 reduction measure.

CO2 reduction rate (%) =Annual Changes in Domestic Transport Volume*

Transportation volume

Unit: million tons/kilometer

FY2014FY2015FY2016FY2017FY2018

181

190

190

168

155

* Range of transportation volume is calculated within the range of ownership in compliance with reporting under the Act on the Rational Use ofEnergy.

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Environmental Aspects
3.3 ｜ Recycling of Resource

3.2.5 Energy Consumption
Annual Changes in Energy Consumption*1

Japan

FY2014FY2015FY2016FY2017FY2018

Electric power, purchased
electric power

6,766

6,718

6,583

6,032

5,760

Heavy oil, etc.*2

2,171

2,040

1,569

1,299

1,110

Gas*3

8,432

8,495

8,609

8,348

8,507

6

1

1

1

4

Electric power, purchased
electric power

5,621

5,121

4,805

4,863

4,904

Heavy oil, etc.*2

39

33

30

24

23

Gas*3

1,784

1,756

1,787

1,779

1,698

Renewable energy*4

76

291

874

844

788

24,89524,45424,25623,19022,796

Renewable energy

Overseas

Unit: TJ

Total

*1 Per unit calorific value is based on the Energy Conservation Act.
*2 T
 otal of heavy oil A, heavy oil C, kerosene, light oil and gasoline*3 T otal of natural gas, liquefied natural gas (LNG), city gas, butane and liquefied petroleum gas (LPG)*4 F
 UJIFILM Manufacturing Europe B.V. (EF) classified its energy usage as renewable energy because the supply of wind-generated power has
been 100% since FY2015.

Breakdown of Consumption of Heavy oil, etc. (FY2018)*

Unit: thousand kiloliters

Heavy oil

Kerosene

Light oil

Gasoline

Japan

26.5

1.1

0.1

0.0

Overseas

0.0

0.0

0.6

0.0

Group total

26.5

1.1

0.7

0.0

*Consumption in manufacturing only

3.2.6 Products Responding to Climate Change
The Fujifilm Group is developing products that have a low impact on the environment. We try to design products that not only
reduce their environment impact by themselves but that also contribute to reducing greenhouse gas emissions in society. We
believe that developing products to address climate change issues is the first step to resolving environmental issues in society
as well as to creating business opportunities.
For further details, please refer to 3.4 Product Stewardship (Design for the Environment.)

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Environmental Aspects
3.3 ｜ Recycling of Resource

3.3 Recycling of Resource
3.3.1 Basic Approach
Since our establishment, the Fujifilm Group has been actively recycling resources, through reducing water usage, recycling
and reusing water, recovering and reusing resources (e.g. silver), and establishing a recycling system for multifunction devices
and copiers, etc. We are conducting efforts to use resources effectively and reduce waste through measures which take into
account the total lifecycle of a product, by considering the 3Rs (reduce, reuse, recycle) in the product design, reducing loss at
the manufacturing stage, collecting, reusing and recycling used products, and recycling or converting into valuables.

3.3.2 Response to Water Risks
In the production of the motion picture and photographic film that had formed the mainstay of its business operations since its
foundation, the Fujifilm Group had made extravagant use of clean water. For this reason, the Group has taken early steps in
reducing water use and in water recycling. In face of the recent growth in the interest focused on water risks as an importantinternational issue, the Group is implementing further steps for the reduction and efficient use of water resources. Due to theconcern over the possible expansion of areas stricken by water shortage issues, the Group created a matrix system for waterrisk evaluation in 2014 that uses conditions in “water stress regions” and “impact on businesses based on water usage” as
its two indicators, and has engaged in continual evaluation of water risks for all business operations under the Group. At thesame time, Fujifilm contributes to issues on water treatment in society by providing its product and services, including filtrationmaterials.
Targets and Progresses on Water
Long-term target:

Reduce the amount of water the Fujifilm Group uses for production by 30% by FY2030(compared to the FY2013 level)
Progress: 15% reduction at the end of FY2018 (compared to the FY2013 level)

Mid-term target:

Reduce the amount of water the Fujifilm Group uses for production by 15% by FY2020(compared to the FY2013 level)
Progress: 15% reduction at the end of FY2018 (compared to the FY2013 level)

Short-term Target: Reduce the amount of water the Fujifilm Group uses for production by 1% by FY2019(compared to the FY2018 level)
Water Usage
Unit

FY2014FY2015FY2016FY2017FY2018

Clean water

million m3

9.0

8.9

8.3

8.1

8.0

Groundwater

million m3

40.6

39.6

37.4

35.6

34.5

Rainwater and others

million m3

0.2

0.2

0.2

0.2

0.3

* Data coverage is for 100% of total sales. The above data has been verified by the third party organization: SGS Japan, Inc.

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Environmental Aspects
3.3 ｜ Recycling of Resource

High
Watershed environmental risks
Middle

6

5

4

3

2

1
Low

Assessment of locations in water stress regions

Assessment Map of the Impact of Water Resources on Company Business

1

2

3

Low

4
Middle

5

6

7
High

Degree of impact on company business

Assessment of water usage & business risks
: Worksites (production sites & non-production sites)

FY2018 Water Usage by Region

Unit: %

Japan

Americas

EuropeChina, Asia/Oceania

Water usage

87

5

5

3

Water discharge

88

5

4

3

2025 Water Stress Map and 2018 Fujifilm Group’s Water Usage

North America

5%EuropeUK

5%

The Netherlands

China/Asia
Hebei ProvinceSouth Carolina

Fujifilm
Fuji Xerox
(

3%
Japan

Suzhou Province Shanghai

87%shows size of water usage)

Annual water availability
per capita for 2025
–500 m3
500–1,000 m3
1,000–1,700 m3

ScarcityStress1,700–4,000 m3
4,000–10,000 m3

Sufficient quantities

10,000 m3–

Water Stress Map: Mapping Fujifilm Group’s water usage into 2025 Water Stress Map (UNEP)

Participation in Initiatives
FUJIFILM Europe GmbH has been participated in the international nongovernmental organization, WaterAid since 2012.

FUJIFILM Holdings Corporation Management Report 201955

Environmental Aspects
3.3 ｜ Recycling of Resource

3.3.3 Measures to Reduce Waste
The Fujifilm Group is proceeding more effective use for resources and reduction of waste, not only at the manufacturing stage
but over the entire product lifecycle as well. In addition to the emphasis on recycling and conservation of resources at the
product design stage, reductions in the waste generated at the manufacturing stage are underway in Japan, North America,
Europe and China, in ways that suit each region. In Japan, from FY2011 we have been promoting group-wide optimization,
including extracting valuables from waste and improving the quality of recycling, not only at our production sites but over our
entire business operations including offices and warehouses. In Americas, the regional headquarters promote this effort ofgroup-wide optimization with other sites, too.
Since fiscal 2016, the amount of waste disposed of by incineration or in landfill has been increasing because of the increasein waste liquids resulting from our new business expansion and difficulties in recycling plastics in Asia. We are working for theentire Group to reduce the amount of waste liquids by improving processes and by recycling plastics to achieve our SVP2030
targets.
Targets and Progresses on Waste
Long-term target:

Reduce the amount of waste generated by the Fujifilm Group by 30% by FY2030(compared to the FY2013 level)
Progress: 5% reduction at the end of FY2018 (compared to the FY2013 level)

Waste Generation

Unit: ton

FY2014FY2015FY2016FY2017FY2018A Total waste output volume*1

75,30072,20080,10079,30081,100

B Total wastes used, recycled or sold

65,60063,10065,50064,50064,700Total waste output volume*2 (A – B)

9,700

9,100

14,60014,80016,400* Data coverage is for 100% of total sales.
* The above data has been verified by the third party organization: SGS Japan, Inc.
*1 Processed by external service providers and simple incineration or landfill disposal on sites.
*2 Simple incineration or landfill disposal by external service providers and on sites.

Annual Changes in Valuable Resources*

Unit: thousand tons/year

FY2014FY2015FY2016FY2017FY2018

Japan

34.0

34.0

34.1

30.3

26.9

Overseas

27.2

30.1

24.5

42.1

30.6

Group total

61.2

64.1

58.6

72.4

57.4

* Valuable resources sold to the third party.

Main Recycling Methods for Waste Products
Waste product

Recycling method

Waste product

Recycling method

Plastics (sorted)

Pallets, pipes, clothing, heatinsulation materials

Mixed flammable waste
products

Solid fuels, electricity and hot
water production

Plastics (mixed)/Filters

Blast furnace fuelFluorescent lamp

Glass wool

Magnetic tape

Blast furnace fuel, tatami
mat material, heat insulationmaterials

Batteries

Zinc, smelt iron

Aluminum hydroxide

Aluminum sulfate

Left over food, raw garbage,organic sludge

Fertilizer, animal feed

Inorganic sludge, polishing
agent

Cement, roadway material,construction materials

Documents, empty boxes

Recycled paper

Organic solvent

Paint thinner

Iron, aluminum, copper, etc.

Smelt metal

Acids and alkalines

Neutralizer

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Environmental Aspects
3.3 ｜ Recycling of Resource

Annual Changes in Container and Packaging Material* Used

Packaging material reduction rate

Unit: thousand tons/year

FY2014FY2015FY2016FY2017FY2018

15.5

15.2

15.6

15.6

16.3

* Total of corrugated paper boxes, paper materials, paper containers, metal materials, plastic molds, plastic film/sheet and glass used.

Annual Changes in Reduction in export Packaging Material Weight* (Cumulative total)

Packaging material reduction rate

Unit: %FY2014FY2015FY2016FY2017FY2018

9.3

10.5

12.7

17.5

17.8

Weight reduced
Total material weight + weight reduced*T otal weight of export packaging materials handled by FUJIFILM Logistics in FY2018 was 1,250.65 tons. Weight was reduced by 270.24. tons, withyearly reduction rate of 17.8%.

* Packaging material reduction rate (%) =3.3.4 Improve the Efficiency of Resource Use
The Fujifilm Group develops and offers a wide range of products such as chemical products, functional materials, opticaldevices, office equipment, and medical equipment, etc. For this reason, in FY2016, we formulated the Assessment Method ofMaterial Input per Unit (resource material input weight per converted production volume) that utilizes the “Converted Production
Volume (production volume of each product converted using the energy used during production)” which is authorized by the
Energy Saving Act in Japan. We started to use this method in FY2017. For multifunction devices and copiers, we collectcustomers’ used products and reuse or recycle them. The program aims to utilize resources as effectively as possible with
“Zero Landfill” as our goal. Since FY2016, we are promoting the planning for new products that emphasize the use of reusedparts.
Fuji Xerox New Resource Reduction by Using Reuse Parts*(Total for Japan, the Asia-Pacific Region, and China)

New Resource Reduction

Unit: tons

FY2014FY2015FY2016FY2017FY2018

2,916

3,273

3,809

3,730

2,967

* The total amount of new resource reduction in the production stage by using reuse parts.

FUJIFILM Holdings Corporation Management Report 201957

Environmental Aspects
3.4 ｜ Product Stewardship (Design for Environment)

3.4 Product Stewardship (Design for Environment)
3.4.1 Basic Approach
Based on the Fujifilm Group Green Policy, we are working to implement Design for Environment in all new and re-designed
products. We set environmental quality targets at the product development stage, then we conduct product assessment in
the design and development stage in order to understand the level of achievement against our set environmental targets. The
assessment results and requirements from the market are then reflected in the targets for future product development. Thisapproach is applied not only to the development of materials and standalone equipment, but also to software and solution
development in a bid to reduce the environmental impact on society as a whole. Along with the objective and quantitative
appraisal of environmental impact by means of Life Cycle Assessment, we proactively demonstrate our environmental
consideration through environmental labels.
Development and promotion of environmentally conscious products and services
URL: https://www.fujifilmholdings.com/en/sustainability/vision/greenpolicy/eco_products.html

3.4.2 Standards of Design for Environment
The Fujifilm Group manages Design for Environment following the two standards below.

1) Design for Environment standard• Materials and equipment
The Design for Environment for products considers the entire lifecycle of all products including procurement, manufacturing,transportation, use and disposal. We also set targets concerning environmental quality from the perspective of climate change
mitigation (reduced power use, etc.), the Reduce, Reuse & Recycle principle of resource saving and recycling, risk reductionof chemical substances, and biodiversity. The degree of target achievement is then assessed once a product has beendeveloped. All our products are developed through this cycle of Design for Environment.
• Software, Service, and IT Solutions
In the area of software and service solutions, our environmental focus is on resource conservation, energy conservation,transportation reduction, space saving, and time saving in customers’ sites. We are working to create products that cancontribute to environmental impact reduction throughout the whole of society.

2) Life Cycle Assessment (LCA)
The Fujifilm Group is developing products with less environmental impact through objective and quantitative environmental
impact assessment utilizing Life Cycle Assessment (LCA) in the product development stage, in addition to implementation of
the Design for Environment standards.
LCA is also used to assess the progress of efforts for the Group target, which is to reduce CO2 emissions throughout the
lifecycle of all Fujifilm Group products by 30% compared to FY2013 (reference year).

3.4.3 “Green Value Products” Certification Program – A New System to Create
Environmentally Conscious Products
As a new means to create products with environmental consideration, the Fujifilm Group started the Fujifilm Group “Green
Value Products” certification program in FY2018 to certify products incorporating outstanding environmental consciousness.
The environmental consideration standards and their operation are made common across the group so that the degree of
ecological performance improvement is quantified through the standards set for each product and service. The products
and services are then classified as Silver, Gold, or Diamond to indicate the improvement degree. This also helps clarify theenvironmental issues to be addressed next for further reduction of environmental impact.

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Environmental Aspects
3.4 ｜ Product Stewardship (Design for Environment)

Level

Certification criteria

Diamond

Products and services that use their respective industries’ innovative technologies to substantially contribute to
reducing environmental impact

Gold

Products and services that reduce environmental impact at their respective industries’ highest level

SilverProducts and services that reduce environmental impact at their respective industries’ standard level or greater

3.4.4 Result of Design for Environment
Certificationof the Fujifilm
Group Green
Value Products

Number of certified products and services in FY2018: 92• Process-less CTP plates: Resource saving, closed loop recycling, water saving• Inkjet digital press, VOC reduction by water-based ink, reducing paper usage, energy-savings• High capacity magnetic tape: Contribution to CO2 emissions reduction• Document products (Multifunction devices and copiers): Resource recycling and energy saving in usage

Target: Reduce CO2 emissions in the entire product lifecycle by 30% by FY2030, compared to the
FY2013 level.
FY2018 results: 331 thousand tons reduction Progress: 22%
Environmental effects

Managing chemical
substances in products
Resource conservation
Recycling

CO2 emissions
reductionin the entire
product
lifecycle

CO2 emissions
reduction in the
production stage

Logistic streamlining

Product energy saving,
resource saving

Environmental
impactreduction in
product usage
at customers’sites

Product stages

Measures to reduce environmental impact

Procurement
Disposal• Elimination or reduction of potentially hazardous substances
usage• Usage of biomass materials (recyclable materials)• Document products (Multifunction devices & copiers):
Promotion of activities that aim to maximize resource reuse
and recycling while eliminating resource disposal by collecting
used products from customers. The percentage of used
document product recycling in FY2018 was more than 99.5%,
our Zero Landfill standard, and the figure in Japan was 99.9%.
The reduced consumption of resources was 2,967 tons.
• Promotion of recycling of leftover aluminum from PS/CTP plateproduction, building and enhancement of used PS/CTP platecollection and recycling system (Graphics Systems business).

Production
stage• Promotion of change of fuel from heavy oil to gas (Japan)• Usage of methane gas generated from waste landfills (the US)• Wind-power procurement (Netherlands)• Installation of solar power generators (the US, UK, China, etc.)• Development and installation of energy-saving technologies,
such as waste heat and steam recycling (Production sites inJapan, Europe, the US, China, etc.)• Reduction of energy not directly related to production, review
of air conditioning operations, minimization of operating
equipment, review of production process (production sites inJapan, Europe, the US, China, etc.)• Wheeling self-generated power in the Group’s factories to 15
sites (Japan)• Reduction of peak consumption by utilizing storage batteries(Japan)• Buying in renewable energy (Japan, etc.)

Transportation• Optimization of logistic routes• Increase in loading efficiency• Promotion of modal shift• Weight reduction and downsizing of packaging• Promotion of eco driving• Component procurement through milk run (China)

Usage• Multifunction (copying, printing, and fax) devices with reduced
power consumption (Document)• Energy-saving medical diagnosis equipment (Medical)• Fully process-less CTP plates that do not require developer(Graphics Systems)

Target: Contribute to 50 million tons CO2 emissions reduction by FY2030.
FY2018 results: Contribution amount was 7.43 million tons. Progress: 15%• High capacity magnetic tape (energy saving in storing archival data)• Process-less thermal CTP plates (no film development process)• Multifunction devices (offering products and solutions)• Medical IT systems

FUJIFILM Holdings Corporation Management Report 201959

Environmental Aspects
3.4 ｜ Product Stewardship (Design for Environment)

3.4.5 Disclosing Environment-Related Information for Products
The Fujifilm Group actively discloses environment-related data in order to fully inform our customers, while aiming to achieve
higher environmental quality for all products.

1) Environmental Labels
The environmental labels indicate products with low environmental impact. We actively use the label as a part of environmental
information disclosure. We use the following labels:

Type I:
Third party certification(ISO14024)

A third party certifier defines and operates product classificationand judgment criteria for environmental certification. In response
to a company’s request, the certifier examines the product andpermits use of their mark if the product meets their criteria. The
certified product can then display the mark, which encourages
consumers to choose products that support environmental
protection.

• Eco Mark• Energy Star Program

Type II:
Self-declaredenvironmental claims(ISO14021)

This is a program by manufacturers to promote the environmental
quality of their products, services, and systems to the market
through self-declaration. No third-party judgment is involved.
Environmental quality is demonstrated by labels attached to
products and descriptions in instruction manuals, promotional
materials, and CSR reports.

• Green Value Products• Resource Recycling Productlabel• PLATE to PLATE aluminum
recycling label

Type III:
Environmental ProductDeclarations(ISO14025)

Quantitative data about a product’s environmental impact
calculated by the Life Cycle Assessment (LCA) method is
published by means of the Internet, etc. The data can be utilized
by consumers for their green purchasing or procurement. The
quantitative data can also help the company to understand theirproducts’ environmental impact quantitatively and thereby motivatethemselves toward further environmental load reduction.

• EcoLeaf• Carbon footprint

2) Safety Data Seat (SDS)/Article Information Seat (AIS)
To ensure customers’ safety when handling chemical and photographic products other than developer and related products,
the Fujifilm Group publishes safety information on the chemical substances contained in the products and handling precautions.

FUJIFILM Holdings Corporation Management Report 201960

Environmental Aspects
3.5 ｜ Management of Chemical Substance

3.5 Management of Chemical Substance
3.5.1 Basic Approach
Because the Fujifilm Group manufactures a wide range of products including chemical products, functional materials, opticaldevices, office equipment, and medical equipment, we have established management rules for the different assembly andmanufacturing processes of our products from two perspectives: management of the handling of chemical substances andmanagement of information on chemical substances in our products. We have implemented global operations management
across the Group and we have established a system to acquire accurate information on the laws and regulations in each country
and region around the world to start a prompt preparation in an early stage. This has allowed us to maintain comprehensive
and efficient management of chemical substances.

3.5.2 Management of Chemical SubstanceBased on international goals of minimizing the adverse effects of chemical substances on human health and the environment,
the Fujifilm Group manages such substances according to the hazard risk and degree of permitted exposure during use. We
assess the risks for all chemical substances handled, and stipulate handling methods within the permitted risk.

3.5.3 Safety Evaluation
It is important to assess the safety of chemical substances in order to handle them appropriately. Fujifilm built a facility to
conduct safety tests on chemical substances in 1975. We evaluate safety in terms of the global environment and human healthfrom the early development to commercialization of various chemicals, materials, and products. Using the Chemical Library
where previous safety test results are stored, we utilize and employ materials of a high safety level developed in-house.

3.5.4 Promotion of Non-Animal Testing
From the viewpoint of animal welfare*, the Fujifilm Group is actively engaged in joint research and development in alternative
methods for sensitization and corrosive tests to be used when assessing the safety of chemical substances. Our exclusive
skin sensitization test, Amino acid Derivative Reactivity Assay (ADRA), was evaluated as skin sensitization more accurately
than conventional methods and was included in the OECD Guidelines in June 2019. ADRA is now partially adopted for intracompany safety evaluations and we are also working to reduce the number of animal tests.
* 3Rs of animal protection (Replacement: Use of alternative method; Reduction: Reduction of the number of animals used; and Refinement: Relief ofanimal pain)

3.5.5 Management of Chemical Substances in Products
The Fujifilm Group has established standards for chemical substances contained in products and manages chemical
substances in raw materials, parts, and members in collaboration with our business partners. We are taking a lead in initiatives
in disseminating the mechanism of the chemSHERPA system, which distributes chemical substance information for products
between companies. We have been participating since the creation of this system, and since it came into full operation wehold twice-yearly briefings for business partners. We individually respond to clients’ consultations and contribute to improving
chemical substance management throughout the supply chain.

FUJIFILM Holdings Corporation Management Report 201961

Environmental Aspects
3.5 ｜ Management of Chemical SubstanceClassification by regulation andmanagement policy
S0

Ban on use

S1

Replacement with alternatives

S2

Reduction in consumption/
emission volumes

S3

Create of alternative plans

S4

Study for replacement of
substances
Not classified

Compliance with laws andindustry standards

The current chemical substance regulations permit usageof certain substances that may be regulated in the future,or those that may have a social impact. We voluntarily set
up our own additional chemical substance classifications,defined as the “S category,” to limit the usage of suchchemical substances. For those substances classified within
the S category due to their potential hazard level, each user
department searches for safer alternative chemicals, andcreates and implements plans to limit usage in products.
With regard to chemical substances contained in molded
products, Fujifilm categorizes those restricted by laws andregulations as “L substances,” and those for which we are
obligated to transmit information by laws or industry standards
as “I substances.” This enables us to manage chemicals
consistently in molded products made directly from chemical
substances and in products comprising components andmembers that may contain specified substances.

New Classification Chart for Chemical SubstanceManagement

Management based on risk
assessment

3.5.6 Efforts in Hazardous SubstanceManagement

3.5.7 Perfluorocarbons (PFC) Emissions/ Volatile Organic Compounds (VOC) Emissions
We are introducing measures to reduce perfluorocarbons (PFC), one of the greenhouse gases, according to the regulations ineach country. We have set a target to reduce VOC emissions to less than half the previous year’s level.
PFC and VOC Emissions
Unit

FY2014FY2015FY2016FY2017FY2018

Direct PFC emissions

kg PFC/
metrictons
produced

0

0

1,257

62

112

Direct VOC emissions

metric tons

838

834

750

800

812

* Data coverage (ratio to total profit or total employees) is 100% of the production volume.
* PFC emissions data has been verified by a third-party organization, SGS Japan, Inc.; however, the production volume used in the calculations isout of certification.

Response to the PRTR Law (Fujifilm and its domestic affiliates/Fuji Xerox and its domestic affiliates)
Fujifilm controls substances that must be reported under the PRTR Law (Pollutant Release and Transfer Register Law)
and another substances on a voluntary basis, and has been endeavoring to reduce those emission. Data (usage volume,
atmospheric emissions volume, emission into public water, volume going into sewage water, volume moved outside of facilities,
and volume recycled) on substances used in amounts of one ton or more per year by Fujifilm and its domestic affiliates may
be found on the following Fujifilm website.
URL: https://www.fujifilm.co.jp/corporate/environment/preservation/site/atmosphere/prtr.html (in Japanese only)
URL: https://www.fujixerox.com/eng/company/csr/sr2018/environment/reduce.html

Annual Changes in Atmospheric Emissions of VOCs

Unit: hundred tons/year

FY2014FY2015FY2016FY2017FY2018

Japan

6.8

6.5

5.9

6.4

6.4

Overseas

1.6

1.8

1.6

1.6

1.7

Group total

8.4

8.3

7.5

8.0

8.1

FUJIFILM Holdings Corporation Management Report 201962

Environmental Aspects
3.5 ｜ Management of Chemical Substance

Storage and Management of Devices/Equipment Containing PCBs* (FY2018)
Types of equipment containing PCBs

Storing and managing amount

Unit

Japan

Group total

High voltage transformers

Quantity

8

25High voltage condensers

Quantity090

PCB oil waste, etc.

kg

1,000

1,000

Sludge, etc.

m3

0.0

0.0

Fluorescent lamp stabilizers

Quantity

12,821

12,871Low voltage condenser excluding
fluorescent lamps

Quantity

116,947

116,947

Low voltage transformer

Quantity

0

0

kg

973

973

Quantity

121

121

Rags
Other devices*Excludes PCB in low concentration

URL: https://www.fujifilm.co.jp/corporate/environment/preservation/site/pcb.html (in Japanese only)

Reductions in VOCs Atmospheric Emissions* (Fujifilm non-consolidated)
Category

Name of substance

Reduction (tons)

Reduction rate in comparison
to previous fiscal year (%)

Substances requiring reporting
under the PRTR Law

Dichloromethane

4

9

Methyl alcohol

43Ethyl acetate

17

15

Methyl ethyl ketone

822Acetone0-1

Substances voluntarily
controlled by the company*Reduction in volumes in FY2018 compared with actual levels in previous year

Annual Changes in Volume of Atmospheric EmissionsSox emissions

NOx emissions

Soot particle emissions

Atmospheric emissions ofspecified CFCs*

Unit: tons/year

FY2014FY2015FY2016FY2017FY2018

Japan

22

9

19

15

19

Overseas

6

10

2

3

3

Group total

28

19

21

18

22

Japan

394

424

369

290

232

Overseas

61

78

86

111

94

Group total

455

502

455

401

326

Japan

4.2

3.1

2.3

2.4

1.8

Overseas

1.0

4.2

1.0

1.8

3.3

Group total

5.2

7.3

3.3

4.2

5.1

CFC-11

0.21

0.21

0.00

0.16

0.00

CFC-12

0.01

0.00

0.00

0.00

0.00

*Group total, below the limit of detection = 0

FUJIFILM Holdings Corporation Management Report 201963

Environmental Aspects
3.5 ｜ Management of Chemical Substance

Annual Changes in Water Contaminant Burden & Emissions*1

Unit: tons/year

FY2014FY2015FY2016FY2017FY2018

Japan

82.3

82.1

69.0

54.5

67.1

Overseas

57.0

67.3

55.5

49.6

27.2

Group total

139.3

149.4

124.5

104.1

94.2

Japan

38.5

37.1

30.2

24.3

26.8

Overseas

10.1

16.6

0.5

0.1

0.6

Group total

48.6

53.7

30.7

24.4

27.4

Total amount of nitrogen
emissions

Japan

223.3

232.3

170.9

181.7

167.2

Total amount ofphosphorous emissions

Japan

5.3

4.2

1.4

2.7

1.8

Total amount of COD*2

Total amount of BOD*3*1 Effluent release into public water bodies*2 C
 OD (Chemical Oxygen Demand): An indicator of water pollution. COD indicates the amount of oxygen consumed when water-borne pollutants(primarily organic contaminants) are oxidized upon the introduction of an oxidant.
*3 B
 OD (Biochemical Oxygen Demand): BOD is a way to measure the degree of water pollution, and indicates how much oxygen in the water isbeing used by organisms to decompose contaminants by looking at the reduction in oxygen in the water.

Surveying and remediating soil and underground water pollution(Fujifilm and its domestic affiliates/Fuji Xerox and its domestic affiliates)
The Fujifilm Group autonomously conducts environmental surveys on soil and underground water pollution. Regarding
substances that are used at manufacturing facilities and that are subject to environmental limits set by regulations, the Grouprigorously manages the usage and storage of such substances and monitors the concentrations of such substances inunderground water. We are prepared to deal with any unforeseen pollution incidents in a timely fashion.
URL: https://www.fujifilm.co.jp/corporate/environment/preservation/site/leakage/ (in Japanese only)
URL: https://www.fujixerox.co.jp/company/csr/stakeholder/environment/target.html (in Japanese only)

FUJIFILM Holdings Corporation Management Report 201964

Environmental Aspects
3.6 ｜ Biodiversity Conservation

3.6 Biodiversity Conservation
For the preservation and maintenance of biodiversity, the Fujifilm Group has established the Fujifilm Group Basic Concepts andAction Guidelines for Biodiversity Conservation (also known as Guidelines for Biodiversity) as the group-wide policy based on
the Fujifilm Charter for Corporate Behavior and Code of Conduct.
In 2012, we reviewed our biodiversity approach under the four key elements of factories, products, social contribution, andcommunication, in order to implement biodiversity conservation activities linked with our businesses. Fujifilm and Fuji Xerox
work on a number of biodiversity conservation activities related to their businesses respectively.
Based on the biodiversity risk assessment in Fuji Xerox’s Document Solution Business, we reaffirmed paper procurement
as posing a high risk and set the procurement standard for paper which stated the procurement from suppliers who agree thesustainable forest management and implement measures on environment, health and safety in good faith. We are engaging inprocurement based on the standard by designating suppliers.
FUJIFILM Holdings “Guidelines for Biodiversity”
Fujifilm "Policies for Wood Pulp Procurement"
Fuji Xerox "Continuing responsible paper procurement"

URL: https://www.fujifilmholdings.com/en/sustainability/vision/creature.html
URL: https://www.fujifilm.com/about/procurement/purchasing_policy/wood_pulp/
URL: https://www.fujixerox.com/eng/company/csr/sr2018/environment/theme2.html

Fujifilm Group Guidelines for Biodiversity[Basic Concepts]
In order to create a sustainable society, we have a responsibility to sincerely address serious problems currently facing
us to eliminate negative legacies being passed on to future generations.
Among these serious problems, are climate change issues such as global warming, depletion of natural resources, andbiodiversity loss that is occurring at a critical speed due to the destruction of ecosystems and extinction of various living
species.
Biodiversity provides us with food, medicine, and energy while reducing the risk of disasters. It is the very foundation of
our culture and art, supporting our life and daily activities.
As the Fujifilm Group's business activities are closely related to biodiversity, it is our responsibility to avoid the adverse
effects to, by addressing its preservation and sustainable usage. In doing so, it is essential to take into considerationthat we exist in a state of global interdependence and keep an international perspective when taking necessary actions.
[Action Guidelines]
1. To avoid destruction of biodiversity
Biodiversity is the “web of life.” In all aspects of our corporate activities, the Fujifilm Group avoids on the adverse effects
to this web of life, and gives due consideration not to have anything to do with destruction of the web.
2. To preserve biodiversity
In all aspects of our corporate activities, the Fujifilm Group strives to keep the natural environment healthy and diverse,
considering environmental preservation that reflects the natural and social conditions of each local community.
3. To make best use of biodiversity
The Fujifilm Group adopts sustainable methods to use biological resources for business activities, based on a long-term
point of view, in order to maintain biodiversity for future generations. and also considers the fair and equitable sharing of
benefits arising from its utilization.
4. To act globally
In all aspects of our corporate activities the Fujifilm Group strives to recognize impacts on biodiversity to reduce
environmental burdens in both domestic and overseas areas.
5. To meet social requirements
The Fujifilm Group complies with international laws and regulations regarding biodiversity, and values collaboration andharmony with various stakeholders such as customers, business partners, employees, local communities, government
agencies, shareholders and investors, NGOs and NPOs.
6. To share information
The Fujifilm Group proactively discloses information on activities regarding biodiversity. The Group also makes efforts to
educate employees on the Group's activities for such issues.
Established in June 2009, Revised in April 2019

FUJIFILM Holdings Corporation Management Report 201965

Environmental Aspects
3.6 ｜ Biodiversity Conservation

Minimize impact in manufacture [Defense]

Contribution to maintain/recover on biodiversity [Offence]●●

Biodiversity conservation

Activities on Biodiversity Conservation —Outline—
Minimum impact

Grasp/measure for impact● Chemicals cont. ◎Waste water cont. ● Air pollution ● CO2 emissions ○Wastes ◎ Land use

Conservation inregion○ Cultivation ○Springs ○Rice field (biotope), (Greening)

Conservation of
resources

Biodiversity in procurement○ CSR procurement (BD included) ○ABS (Access and Benefit Sharing) ○Paper Procurement

Minimum inmarket● Energy saving products ◎Resource saving / product recycling

Products forbiodiversity
conservation● Indirect contribution via CO2 reduction (Solar cell etc.)

Socialcontribution

Contribution by
fund/goods/labor○ Contribution through fund (Fujifilm Green Fund) ○Cooperation with region or NPOs and NGOs
○ Support for environment education projects for the next generation

Communication

Enlightenment for
FF/region◎ Domestic education program within the Fujifilm Group ○Communication meeting with region

Factories

Products

Direct contribution (monitor etc.)○: Measure related to biodiversity conservation (on going) ◎: Measure related to biodiversity conservation (middle target: plan)●: Measure indirectly related to biodiversity conservation

Main Activities for Biodiversity Conservation● Activities to conserve the water source at eachfactory● Participation in Initiatives· Fuji Xerox had a presentation on behalf of four electricaland electronic associations at the fourteenth meetingof the Conference of the Parties to the Convention on
Biological Diversity (COP14)· Fuji Xerox participates in the Japan Business Initiative for
Biodiversity (JBIB)· Participating in the Vancouver Declaration for the UN
SDGs and FSC Certification that pledges support for
the initiative for the sustainable management of naturalforest resources.
● Activities in compliance with the Natural Capital

Protocol● Overseas tree planting activities● Suiden-Otasuke-Tai <Kumamoto, Japan>
Regional collaboration activities to preserve groundwaterin Minami-Aso Village. FUJIFILM Kyusyu has been
participating in these activities since FY2010.
● Tokyo Greenship Action <Tokyo, Japan>
Greenery conservation activities organized by the Tokyo
Metropolitan Government in coordination with businesses,
NPOs, etc. Fuji Xerox Tama has been participating in the
program since 2004.
● Cooperation with NPOs, etc.
· Approved Specified Nonprofit Corporation Network for
Coexistence with Nature, etc.: “Kikigaki-Koshien”· Charitable Trust Fujifilm Green Fund, etc.: “Watashi-noShizenkansatsuro Competition”· Green Cross Japan: Kankyo Nikki, “Midori-no-Komichi,”etc.

<China/Vietnam>· Tree planting activities in the Horqin Desert of the Inner
Mongolia Autonomous Region of China· Support in the restoration of Can Gio mangrove forests
in Vietnam, that are approaching extinction as a result of
the use of defoliants

FUJIFILM Holdings Corporation Management Report 201966

Social Aspects
4.1 ｜ Employee Overview

4.1 Employee Overview* In regard to the numerical data in the section 4.1-4.4, when we use “Fujifilm Group”, it refers to Fujifilm non-consolidated + Fuji Xerox nonconsolidated unless otherwise specified

4.1.1 Basic Approach on Activities for Employees
Under our corporate slogan, “Value from Innovation,” we are proactively reforming our business regardless of the quickly
changing environment, aiming at generating value in society. To realize this aim, we value that each of our diverse employees
has their own strengths and exerts their abilities to the fullest extent. We are establishing an environment to enable employees
to create results through efficient manners of working, while collaborating with various stakeholders, both inside and outside
the company.

4.1.2 Basic Data
Composition of Employees

As of March 31, 2019

Fujifilm Group (Fujifilm + Fuji Xerox)
Executive officer
Regular employees
Non-regular employees

Total
31
11,815
1,333

Male
31
9,835

Fujifilm

Fuji Xerox
Total

Male

Female14140Generalemployees

3,361

2,624

737

Managerial
personnel

1,160

1,110

50

Senior expert

189

189

0

Temporaryemployees

105Part-timers

28

Employees reemployed after
retirement

109

Other (Contract
employees, etc.)

42

Executive officer(exc. Directors)
Regularemployees(Total: 4,710)

Non-regular
employees(Total: 284)

Female0
1,980

Rate of female manager
personnel (Target)

Regularemployees(Total: 7,122)

Executive officer

Total
17

Male
17

Female0Generalemployees

4,925

3,901

1,024

Managerial
personnel

2,094

1,955

139

Contracted
employees

86

56

30

TemporaryNon-regular employees
employees
Employees re(Total: 1,049) employed after
retirement
Rate of female manager
personnel (Target)

412
637
14% by the end of FY2020

6% by the end of FY2020

FUJIFILM Holdings Corporation Management Report 201967

Social Aspects
4.1 ｜ Employee Overview

Status of Regular Employees

As of March 31, 2019

Fujifilm

Fuji Xerox

Average age

Total
42.50

Male
42.88

Female40.61

Average age

Total
45.5

Male
46.5

Female40.7

Average length of employment(years)

17.74

17.82

17.37

Average length of employment(years)

20.2

21

16.4

Average number of dependents

1.42

ー

ー

Average number of dependents*1

1.16

ー

ー

Average annual salary*1

8.9 million
yen

ー

ー

Average annual salary*2

9 millionーー

Utilization of paid leave*2

70.0%

ー

ー

Utilization of paid leave*3

72.3%

ー

ー

Turnover rate*3

2.63%

2.73%

2.18%

Turnover rate*4

4.1%

4.0%

4.6%

Returning rate from childcare
leave*4

100%

ー

100%

Returning rate from childcare
leave*5

96.3%

100%

93.9%

Retention rate after 3 years fromreinstatement (childcare)*5

96.0%

100%

95.6%

Retention rate after 3 years fromreinstatement (childcare)*6

91.5%

91.7%

91.5%

Retention rate after 3 years fromreinstatement (nursing care)*6

100%

ー

100%

Retention rate after 3 years fromreinstatement (nursing care)*7

50.0%

50.0%

50.0%

*1 Average annual salary is calculated for the period from January 1,
2018 to December 31, 2018. (excluding mid-career recruitment)*2 D ata on utilization of paid leave is calculated based on data for theperiod from April 1, 2018 to March 31, 2019.
Attrition + Retirement + Voluntary +New start for senior employees program*3 T urnover rate =Annual average number of employees at
FUJIFILM Corporation (non-consolidated)*4 R
 eturning rate from childcare leave is calculated with the expiration
date falls on April 1, 2018 to March 31, 2019.
*5 R
 etention rate after 3 years from reinstatement (childcare)=

Number of employees as of the end of March 2019 among those
returning to work after childcare leave in FY2016
Number of employees reinstated after childcare leave in FY2016*6 Using the same methods as *5

yen

*1 A
 verage number of dependents
Number of dependents who have health insurance=
Number of employees who have health insurance*2 Average annual salary is calculated for the period from January 1, 2018
to December 31, 2018.
*3 Data on utilization of paid leave is calculated based on data for theperiod from January 1, 2018 to December 31, 2018.
Attrition + Retirement*4 Turnover rate =Number of employees in Fuji Xerox at the end of preceding fiscal year
(non-consolidated) +number of assigned employees
Calculation methods for turnover rate by gender
Male: Male turnover/Number of male employees
Female: Female turnover/Number of female employees*5 Returning rate from childcare leave is calculated with the expiration datefalls on April 1, 2018 to March 31, 2019.
*6 Retention rate after 3 years from reinstatement
Number of employees as of the end of the current fiscal year among those= returning to work after childcare leave in the second preceding fiscal year
Number of employees reinstated after childcare leave in the second
preceding fiscal year
*7 U sing the same methods as *6

Employment
Fujifilm

Fuji Xerox
Technical
positions

New graduate
recruitment*1

Total

Male Female

48

35

13

Administrative
positions

56

41

15

Factory
recruitment

2

0

2

46

34

12

Mid-career recruitment*2

Total

*1 N
 umber of new graduates recruited for the fiscal year is confirmed at the
beginning of April, 2019. (including graduates from university & graduate
school )*2 Number of mid-career recruitment represents those from April 2018 toMarch 2019.

New graduate
recruitment*1

Male Female

Technical
positions

37

14

22

14

80

7

87
Administrative
positionsMid-career recruitment*2

87

*1 N
 umber of new graduates recruited for the fiscal year is confirmed at the
beginning of April, 2019.
*2 Number of mid-career recruitment represents those from April 2018 toMarch 2019.

Re-employment
Fujifilm

Fuji Xerox

FY2014FY2015FY2016FY2017FY2018FY2014FY2015FY2016FY2017FY2018

13

19

37

45

65

506

554

554

173

215

* Employees re-employed after retirement during the relevant fiscal year
(April 1 to March 31).

* Employees re-employed during fiscal 2018

FUJIFILM Holdings Corporation Management Report 201968

Social Aspects
4.1 ｜ Employee Overview

Number of Employees Taking a Leave of Absence
Fujifilm

Fuji Xerox
FY2014 FY2015 FY2016 FY2017 FY2018

Leave ofabsence fornursing care
Leave ofabsence forchildcare

Total

3

2

4

3

5

Male

1

0

2

1

3

Female

2

2

2

2

2

Total

43

53

49

45

36

Male

1

5

3

3

1

Female

42

48

46

42

35

Total

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Leave ofabsence for Malevolunteerwork
Female* Number of employees who began a leave of absence during the relevant
fiscal year.

FY2014 FY2015 FY2016 FY2017 FY2018
Leave ofabsence fornursing care
Leave ofabsence forchildcare

Total

3

4

4

5

4

Male

1

2

2

2

1

Female

2

2

2

3

3

Total

56

60

84

69

96

Male

9

10

11

14

35

Female

47

50

73

55

61

Total

3

0

0

1

1

2

0

0

1

1

1

0

0

0

0

Leave ofabsence for Malevolunteerwork
Female* Number of regular employees (including contracted employees) who
began a leave of absence during the relevant fiscal year (April 1, 2018 1 toMarch 31, 2019).
* Number of employees who used the social service program.

Number of Employees Taking a Care Leave (number of days)
Fujifilm

* Total number of days is shown in parenthesis.

Fuji Xerox

FY2014 FY2015 FY2016 FY2017 FY2018

FY2014 FY2015 FY2016 FY2017 FY2018

Total

13

15

26
(130.5)

39
(162)

25
(148.5)

Total

26

44

59

84

85

Nursing care Male
leave

9

10

15
(103)

25
(137.5)22(138)

Nursing care Maleleave*2

17

27

40

64

69

Female45

11(27.5)

14(24.5)

3(10.5)

Female

9

17

19

20

16

Total

6

7

16
18
(161.5) (141.5)

24
(97)

Total

298

314

373

386

382

Male

4

5

8
(117.5)

10
(86)

18
(85)

Male

86

147

206

213

241*5

Female

2

2

8
(44)

8
(55.5)

6(12)

Female

212

167

167

173

141

Total

48

59

73
(262)

96
(416)

96
(368)

Total

18
(47)

20
(62)

11
(36)

7
(22)

8
(50)

Child medical Male
care leave

9

16

31
44
42
(105.5) (149.5) (131.5)

Male

12

16

8

5

6

Female

39

43

42
52
54
(156.5) (266.5) (236.5)

Female

6

4

3

2

2

Total

0

1
(1)

0

0

1
(5)

Male

0

1
(1)

0

0

1
(5)

Female

0

0

0

0

0

Childcareleave

Volunteerwork leave*Number of employees who began a leave during the relevant fiscal year.

Childcareleave*3

Volunteerwork leave*4*1 Number of regular employees who began a leave during the relevant

fiscal year (from April 1, 2018 to March 31, 2019).
*2 Number of employees taking leave of nursing care leave under the“accumulated paid leave (nursing care for family members),” “nursing
care for family members” and “oneday nursing care leave” programs*3 Number of employees taking childcare leave under the “accumulated
paid leave (child healthcare)” and “child medical care” programs As aprogram equivalent to childcare leave, special leave (of 5 days at most)is granted for care of the eldest child at the time of birth of the second
child.
*4 Volunteer work leave shows the number of employees who took“accumulated paid leave (volunteer activity)” and the number of days
spent for such activities. Total number of days is shown in parenthesis.
*5 Including 53 taking a special leave when their wives’ gave birth on andafter the second child

FUJIFILM Holdings Corporation Management Report 201969

Social Aspects
4.2 ｜ Promotion of Diversity and Equal Opportunities for Employees

4.2 P romotion of Diversity and Equal Opportunities for Employees
4.2.1 Basic Approach
The Fujifilm Group lists “Respect and promotion of diversity” and “Prohibition of discrimination” in Chapter 1 Respect for
Human Rights of the Fujifilm Group Code of Conduct. We aim to become a robust organization that can contribute to a richer
society by generating new values through respecting, accepting, and being inspired by each employee’s personality andindividuality.
Fujifilm Group Code of Conduct Chapter 1 Respect of human rights
URL: https://www.fujifilmholdings.com/en/about/philosophy/law/humanrights.html

4.2.2 Activities to Promote Diversity
One of the Priority Issues listed in the Sustainable Value Plan 2030 (SVP 2030), FUJIFILM’s CSR Plan, states “Create
frameworks and workplaces so that the Fujifilm Group's diverse employees may exert their capabilities and creativity to thefullest extent.” Concretely, we set the following targets to progress work-style reform and diversity promotion: (1) Increase therate of international employees in major positions (global target); (2) Improve the rate of women in managerial positions (global
target); (3) Continue to exceed the legally stipulated rate of employment of persons with disabilities (in Japan); and (4) Achieve
zero retirement of employees caused by nursing care, childbirth, and childcare (in Japan).
In April 2019, we revised the Fujifilm Group Charter for Corporate Behavior and Code of Conduct by reinforcing thedescription concerning respecting diversity and elimination of discrimination. The revised Code of Conduct was translated into
24 languages and global education was started for all Group employees across the world.

Percentage of Women in Regular Employees*

Percentage of Women in Managerial Positions*

Women

Target

FY2018(by the end of FY2020)

Fujifilm Group

16.7%

Fujifilm Group

5.8%

−

Fujifilm

16.7%

Fujifilm

4.3%

6%

Fuji Xerox

16.8%

Fuji Xerox

7.6%*

14%

* As there were errors in data, corrections were made for the results (as of October 31, 2019). The ratio in the above 2 items are not included in thescope of third party’s assurance.

Percentage of Employment of Persons with Disabilities*
FY2014FY2015FY2016FY2017FY2018Target

2.32%

2.35%

−

Fujifilm GroupFujifilm

2.12%

2.10%

2.24%

2.27%

Fuji Xerox

2.06%

2.09%

2.22%

2.18%

* We disclose the actual percentage determined by the group-wide calculation method under FUJIFILM Holdings from FY2018. Data as of May 1.
2019.

FUJIFILM Holdings Corporation Management Report 201970

Social Aspects
4.2 ｜ Promotion of Diversity and Equal Opportunities for Employees

System for a Work-life Balance
We have improved various programs that more than satisfy legal requirements in order to support a flexible work style according
to the life event such as childcare and family care.
Fujifilm
Giving birth and childcare

Nursing care

Other

• Systems catering for pre- and post-birthrequirements• Leave of absence for childcare• Use of stock leave* for childcare• Systems for employment while raisingchildren• Three-person interview at the time of
returning to work from childcare leave• Child medical care leave program (1relevant child: 12 days per year; 2 ormore children: 24 days per year)• Reduced work hour program (child in
the third grade or lower)• Use of stock leave* for fertility treatment• Leave of absence for fertility treatment• Exemption from restrictions on nonscheduled hours worked and from workon holidays• Reinstatement to same workplace after
leave of absence for childcare• Leave of absence for nursing careprogram• Nursing care leave program (1 carerecipient: 12 days per year; 2 or morecare recipients: 24 days per year)• Use of stock leave* for nursing care
• Systems for employment while caring fora family member• Expansion of nursing care counselingoffice• Leave of absence for volunteer work,
Using of stock leave* for volunteer work
• Use of stock leave* for self development• Active Life Leave• Flextime• Discretionary labor system• Leaving the office on time (2 days per
week)• Re-employment Program• Home Working System• Paid Leave by the Hour System* Stock leave is a system enabling employees to accumulate unused leave time up to 60 days. Accumulated leave days may be used for treatment
needed for personal health problems, rehabilitation, childcare, nursing care, and volunteer activities.

Fuji Xerox (All those systems provide for generous leave beyond that required by law.)
Giving birth and childcare

Nursing care

Other

• Maternity leave (paid)• Leave of absence for childcare program• Program for rehiring former employees
who left the company for reasons suchas spouse’s transfer or childcare• Accumulated paid leave* for healthcareof employees’ family*• Shortened working hours in pregnant
and for childcare (from pregnancy tothird grade of elementary school)• Limited off-hours work for childcare (until
sixth grade of elementary school)• Limited late-night work for childcare(until six grade of elementary school)• Special leave for supporting the wife
during her childbirth period (first child’sbirth: 2 days; second child’s birth andthereafter: 5 days)• Leave of absence for birth support (oneyear leave system for fertility treatment)• Leave of absence for caring for a family
member (maximum 2 years)• Limited off-hours work for caring for afamily member• Limited late-night work for caring for afamily member• One-day nursing care leave• Accumulated paid leave* for caring for afamily member• Flextime• Homeworking system• Continuous service award special
vacation; “refresh vacation”• Social service system (leave of absence
program for employees participating insocially beneficial activities)• Accumulated paid leave* for volunteer
activities• Leave of absence for education• Leave of absence for senior theme(support for senior employees’ second
career)• Flexible work schedules (support forsenior employees’ second career)• A program for transfer and a leaveof absence due to accompanying a
spouse’s transfer* Accumulated paid leave is a system enabling employees to accumulate unused leave up to 60 days. Accumulated leave may be used for
healthcare, childcare, nursing care, and volunteer activities.

4.2.3 Freedom of Association
The Fujifilm Group clearly states that we maintain a smooth relationship between staff and management, while respecting theright to engage in collective bargaining and the right to enjoy freedom of association, as permitted by applicable laws, andrules in the country in which it conducts business. Such statements are included in the Fujifilm Group Code of Conduct andthe Fujifilm Group Human Rights Statement.
Fujifilm Group Code of Conduct: Article 9, Chapter 1 Basic Labor Rights
URL: http://www.fujifilmholdings.com/en/about/philosophy/law/index.html
Fujifilm Group Human Rights Statement: Consideration for Fujifilm Group Personnel
URL: https://www.fujifilmholdings.com/en/sustainability/vision/human/index.html

FUJIFILM Holdings Corporation Management Report 201971

Social Aspects
4.2 ｜ Promotion of Diversity and Equal Opportunities for Employees

Composition of Labor Union MembershipAs of March 31, 2019

Union members

Proportion of union
membership

Average age of union
members

Fujifilm Group

8,083

68.3%

－

Fujifilm*1

3,191

68%

40.14

Fuji Xerox*2

4,892

69.3%

42.2

*1 Proportion of union membership = Ratio to regular employees*2 P roportion of union membership = Ratio to regular employees excluding executive officers and senior experts (including managerial staff).

Revisions to Systems That Operate Based on Agreements between the Labor Unions and theCompany (in the last five years)
Fujifilm
FY

As of March 31, 2019

Item

2014

• Revision of work regulations, wage rules and other labor-related regulations• Extension of the period of nursing care leave• Flexible application for the flextime (for pregnant, childcare, and nursing care)• Expansion of the domestic affiliates for secondment• Partial revision of work regulations, wage rules and other labor-related regulations

2015• Partial revision of work regulations, wage rules, retirement allowance regulations and overseas travel regulations• Wider range of job assignment destinations within the Fujifilm Group in Japan• Introduction of Home Working System• Introduction of Paid Leave by the Hour System

2016• Partial revision of travel expense rules and company house management regulations• Partial revision of collective labor agreement and wage rules due to establishing a new branch• Partial revision of collective labor agreement, written agreement and work regulations regarding childcare andnursing care leave

2017• Partial revision of collective labor agreement and wage rules• Partial revision of collective labor agreement, written agreement and work regulations regarding childcare leave• Established rules for employees to drive their own cars to the office.

2018• Partial revision of wage rules• Wider range of job assignment destinations within the Fujifilm Group in Japan

Fuji Xerox
FY

Item

2014

• Introduction of new work style (co-working hour system, homeworking system, remote working system fordomestic sales)

2015• Revision of working conditions, work support and employee welfare with consolidation of various programs at
Group companies in Japan2016• Agreement between labor and management regarding the terms and conditions for applying a program totransfer and a leave of absence due to accompanying a spouse’s transfer• Revision of systems for childcare and nursing care due to the change of the related laws
• Change of starting point for reckoning on yearly paid vacation according to the systems at the Group companies
in Japan2017• Labor-management agreement signed on the introduction of the Paid Leave by the Hour System on April 1, 2018
(February 2018)2018• Revision of regulations for employees working abroad (January 1, 2019)• Revision of regulations of travel expense (January 1, 2019)• Revision of personnel systems (April 1, 2019)• Expansion of coverage for remote working system (April 1, 2019)• Expansion of coverage for home working system (April 1, 2019)

FUJIFILM Holdings Corporation Management Report 201972

Social Aspects
4.3 ｜ Health and Safety for Employees

4.3 Health and Safety for Employees
4.3.1 Basic Approach
In Fujifilm Group Code of Conduct, the Fujifilm Group clearly states that we comply with applicable occupational health andsafety laws and regulations, such as those designed to prevent workplace accidents. We also state that we aim to maintainand enhance safe, healthy and fit working environments by giving due consideration to the physical and mental health of ouremployees. In April 2019, we revised Fujifilm Group Occupational Safety and Health Policy to show concrete measures basedon this Code of Conduct. We will put this idea into practice and promote activities.

Fujifilm Group Occupational Safety and Health Policy
The Fujifilm Group operates its businesses based on this policy, considering that the promotion of workers’ occupationalsafety and health is the most important foundation of its corporate activities.
1. We will consider the occupational safety and health of employees including dispatched workers and contractors as
the top priority, and maintain safe, healthy and fit working environments.
2. We will comply with applicable occupational safety and health laws and self-regulations, such as those designed toprevent workplace accidents and excessive working hours.
3. We will promote health and productivity management through proactively supporting employees to maintain andenhance their physical and mental health.
4. We will establish smooth communications between all the Fujifilm Group companies and their employees on
promoting occupational safety and health.
5. We will actively and continuously provide employee education and training on occupational safety and health.
Established in January 2010, Revised in April 2019

Fujifilm Group Code of Conduct: Article 8, Chapter 1 Occupational Safety and Health/Health Promotion
URL: https://www.fujifilmholdings.com/en/about/philosophy/law/humanrights.html

4.3.2 Promotion System and Activities
Promotion System
In major business sites inside and outside Japan under FUJIFILM and Fuji Xerox, occupational health and safety officers areappointed. These officers create and implement measures and education programs to reduce occupational accidents andconduct self-checks using a designated checklist toward the target of zero workdays lost through accidents etc. They also
monitor the progress of their measures. Further, each site sets its own measures to protect employees’ health and safety, suchas chemical substance management, depending on the nature of its business.
For promoting health and productivity management in workplace, the FUJIFILM Holdings Corporate Vice President andGeneral Manager of the Human Resources Division is appointed as the Healthy Workplace Officer. Under this officer, the
FUJIFILM Holdings Health Promotion Group is established to supervise a health promotion department in each company. We
are keen to promote health across the group, and, particularly in Japan, the company is working closely with the Fujifilm Group
health insurance association and industrial doctors maintain and promote healthy working lives for our employees.

Management of Risks Related to Health and Safety
Every year, each of the Fujifilm Group companies identifies the priority risk issues (including potential ones) in our businessprocesses, creates and implements countermeasures, and follows up on progress. The priority issues and progress of eachcompany are reported to the FUJIFILM Holdings ESG Committee and to the Board of Directors after due discussions. The
health and safety of employees, including labor issues, are also included in the above process, and managed as one of thefactors to be discussed as a part of company-wide risk mapping. For more details of the Fujifilm Group’s risk management
process and priority risk mapping, see 2.2.3 Risk Management Promotion Structure in this report.

FUJIFILM Holdings Corporation Management Report 201973

Social Aspects
4.3 ｜ Health and Safety for Employees

4.3.3 Progress and Results
Work accident rate and work accident severity
Fujifilm

Industry average in parenthesis*3

FY2014FY2015FY2016FY2017FY2018TargetWork accident rate*1

0.00(0.40)

0.20(0.24)

0.00(0.37)

0.30(0.28)

0.00(0.47)

0Work accident severity*2

0.00(0.13)

0.00(0.00)

0.00(0.01)

0.00(0.01)

0.00(0.01)

0

Fuji Xerox

Industry average in parenthesis*3

FY2014FY2015FY2016FY2017FY2018TargetWork accident rate*1

0.00(0.16)

0.20(0.11)

0.00(0.18)

0.37(0.38)

0.18(0.36)

0Work accident severity*2

0.00(0.00)

0.00(0.00)

0.00(0.00)

0.00(0.01)

0.001(0.01)

0

Number of employees involved in work accidents
×1,000,000
Gross number of hours worked
Number of workdays lost
×1,000*2 Work accident severity =Gross number of hours worked*1 Work accident rate =*3 Source for industry average: FY2017 Survey on Industrial Accidents, Ministry of Health, Labour and Welfare

Number of Fatal Work Accidents

Fujifilm GroupFujifilm
Fuji Xerox

FY2016FY2017FY2018TargetEmployees

0

0

0

0

Contracted

0

0

0

0

Employees

0

0

0

0

Contracted

0

0

0

0

Employees

0

0

0

0

Contracted

0

0

0

0

Occupational Health and Safety Committee
The Occupational Health and Safety Committee convenes with same number of labor and management representatives, incompliance with laws and regulations.
Number of Employees Taking Occupational Health and Safety Training
FY2018
Fujifilm Group

13,289Fujifilm

3,169

Fuji Xerox

10,120* Including executive officers and employees employed indirectly

FUJIFILM Holdings was recognized under the 2018 Certified Health and Productivity Management Organization
Recognition Program (Large Enterprise Category)—White 500 for the third consecutive year since 2016.

FUJIFILM Holdings Corporation Management Report 201974

Social Aspects
4.4 ｜ Human Resource Development for Employees/Talent Attraction and Retention

4.4 Human Resource Development for Employees/
Talent Attraction and Retention
4.4.1 Basic Approach
The Fujifilm Group values human resource development as we believe that individual growth will lead to the company’s growth.
In order to accelerate the global development of a company in a rapidly changing business environment, it is indispensablethat each employee initiates their own reforms by sensitively detecting and responding to social changes from a wide viewpoint
while maintaining their own strengths as a professional. We are working to develop a corporate environment where individuals
and organizations can enhance their capabilities and concentrate on their tasks through exerting their abilities to the fullest
extent and thereby improve their careers.

4.4.2 Human Resource Development Programs
Human Resource Development Programs
Fujifilm’s Human Resource Development
Earnestcommitment
to people’s
development

Individual
seeking togrow

Strongleaders

Fujifilm’s Training to Develop Global Human Resources

Professionals● For Japanese employees

Diversity

Training prior to overseas appointment

For employees appointed tooverseas positions

Training to develop overseas managers
Short-term onsite training system

Enhancement of organizations
and functions

Enhancement of individuals
Enhancement ofroles by qualification
systemTraining for newly
appointed managers
Training for
professionals
management training
Training for newly
appointed managers
Training for candidates
for promotion, etc.

Enhancement ofprofessional mindset

Enhancement ofbasic skills

Enhancement ofskills and expertise

Career life design
training
New employee training
Career development
program, etc.

Business and strategy
Sales and marketing
Intelligent power (Use of
ICT)Management skills
Rational thinking (KTmethod)Communication

Managers and directors
Enhancement ofspecialist skills
Various seminars on
basic technology,
science and research
Quality control
Safety, environment
Danger prediction

Selection-style training
Management school
Training for next
generation management
Enhancement of global
mindset, etc.

Overseas trainee system

Overseas onsite training

Overseas study system
For interested employees

Language lessons, distance-learning (languages)

For technical position

MOT (technical management) training● For employees of overseas subsidiaries
FUJIFILM Global Leadership Seminar

Development of global leadership

FUJIFILM Regional Leadership Seminar

Dissemination of corporate philosophy

FUJIFILM WAY Training

Fuji Xerox’s Human Resources Development
Training and Education of Human Resources
Human resources empowered to rise to challenges ofgrowth and change and able to think and act on their own

Long term
Personal growth

Employees
Personnel systemthat encourages rising
to challenges

Real Change
LeaderShort termManagement andleadershipManagement

Reinforcement ofcorporate strength

Training and Development Inputs

As of March 31, 2019

Number of total hours

Number of hours pereach employee

Number of total cost

Number of cost pereach employee

Fujifilm

26,752

11.25

169,756 thousand yen

71,386 yen

Fuji Xerox*

88,95011.4

274,992 thousand yen

35,138 yen*Including executive officers and employees on temporary assignment

FUJIFILM Holdings Corporation Management Report 201975

Social Aspects
4.4 ｜ Human Resource Development for Employees/Talent Attraction and Retention

4.4.3 Performance Appraisal
Employee percentage of the individual performance appraisals
by the target management
Fujifilm Group100%

Fujifilm

100%

Fuji Xerox

100%

4.4.4 Employee Engagement
Fujifilm Group Employee Awareness Survey
In December 2017, we conducted a survey of all 93,000 Group employees to study their understanding of company policies
and awareness of compliance (response rate: 97%). The survey found that 84% of employees felt proud to be working in the
Fujifilm Group.

Fuji Xerox Employee Engagement Survey
In addition to the Fujifilm Group Employee Awareness Survey, Fuji Xerox has conducted its own employee motivation survey
based on the group-wide index Core Morale*1 at its affiliated companies and sales companies in Japan and overseas. In
conducting this survey, they have arranged it in accordance with the conditions in each region and country. In FY2018,
they revised the questionnaires in Japan and renamed this survey to “Engagement Survey.” This enabled them to maintaincontinuity with their past results and measure the self contribution awareness to the company and the performance of
expected contribution for companies both inside and outside Japan. In FY2018, 30,283 people (94.8% of target employees)
responded to the survey.
Coverage

Scores ofCore Morale,*2
employeeawareness indices

FY2015FY2016FY2017FY2018

Fuji Xerox (non-consolidated)

3.36

3.38

3.33

3.37

Japanese sales companies

3.43

3.40

3.35

3.34

Japanese affiliate companies(excluding sales companies)

3.23

3.26

3.26

3.27

Overseas affiliate companies(marketing and administration)

-

3.55

3.56

3.53

*1 Core Morale is a set of five indices Fuji Xerox regards as important to understand employees’ morale. The five indices are: Job fulfillment,
Workplace fulfillment, Trust in supervisors, HR operation satisfaction, Organization operation satisfaction.
*2 T he average score of Core Morale (5.00 points max.) in the ES awareness survey conducted on employees of Fuji Xerox and its affiliated andsales companies inside and outside Japan.

FUJIFILM Holdings Corporation Management Report 201976

Social Aspects
4.5 ｜ Human Rights

4.5 Human Rights
4.5.1 Basic Approach
The Fujifilm Group believes that respect for human rights is our duty and we clearly state our commitment to it in the Fujifilm
Group’s Charter for Corporate Behavior and Code of Conduct. The Charter for Corporate Behavior states the basic approachof the company toward respecting human rights. The Code of Conduct lists nine items to which every employee must adhere
for respecting human rights. Establishment, revision, and compliance to the Charter for Corporate Behavior and Code of
Conduct are discussed and decided by the FUJIFILM Holdings ESG Committee and the results are reported to the Board of
Directors.
In 2018, we published the Fujifilm Group Human Rights Statement, in which we declare our support for a range of global
human rights principles, including the UN International Bill of Human Rights and the UN’s Guiding Principles on Businessand Human Rights and to take any necessary measures to assess and reduce human rights infringement risks in businessactivities. To create the Human Rights Statement, we sought opinions and advice from our Group companies and stakeholders
across the world and it was introduced after adoption by the ESG Committee, chaired by the CEO.
Fujifilm Group’s Charter for Corporate Behavior Article 2. Social Responsibility, Article 3. Respect for Human Rights, Article 5. Vibrant Workplaces
URL: https://www.fujifilmholdings.com/ja/about/philosophy/index.html
Fujifilm Group Code of Conduct		Fujifilm Group Human Rights Statement

URL: https://www.fujifilmholdings.com/en/sustainability/vision/human/index.html

4.5.2 Human Rights Due Diligence Process
The Fujifilm Group implements group management in compliance with the procedures set out in the UN Guiding Principles
on Business and Human Rights and establishes andpromotes human rights due diligence processes covering
1. Identify priority human rights issues
all its operations and related business activities. For
concrete implementation, we refer to the requirements
2. Plan and implement prevention and mitigation measuresin the UN Guiding Principles Reporting Framework with
3. Dialogue with third parties
Implementation Guidance, which we studied in the Human
Rights Due Diligence Working Group under the Global
4. Review
Compact Network Japan. The Group engages in theidentification of potential and actual risks, investigating inwhat part of its business activities such risks are likely toCharter for Corporate Behavior
occur, and specifically what and whose human rights issues
Code of Conduct
are likely to be violated, and in the review and implementationof preventive and mitigating measures, as well as in dialogue
with third parties, regular reviews of risk assessment andassociated activities and information disclosure.

4.5.3 Priority Human Rights Issues to Be Addressed (Identified Human Rights Risks)
Human Rights Impact Assessment Process to Identify Priority Human Rights Issues
We firstly identified human rights risks that our business could potentially cause in each existing business segment. (See
Human rights impact assessment in existing business.) In the course of examining these risks, assessments are carried out on
those stakeholders who are likely to be affected by Fujifilm Group's business activities, namely, Fujifilm employees, employeesof suppliers, contractors and cooperation companies (including paying attention to the rights of children from the perspectiveof child labor and all foreign workers from the standpoint of immigrant workers), local communities (including paying attention
to the rights of indigenous people in the procurement of raw materials) and customers (including paying attention to the rightsof children as a section of consumers in general).
Then we listed up the priority human rights issues that the Fujifilm Group should address based on the probability of ahuman rights risk incident, the scale of impact should it occur, and our readiness to handle such an incident. In this process ofrisk assessment, we invited opinions from overseas experts from international human rights NPOs to narrow down the priority
issues (see the figure Human Rights Issues Considered Important for the Chemical and Construction Materials Industries).
When we start a new business, such as by making a large-scale investment, we assess the suitability of the project,
covering the human rights-related check items among a wide-ranging due diligence check list.

FUJIFILM Holdings Corporation Management Report 201977

Social Aspects
4.5 ｜ Human Rights

Reference: Human Rights Issues Considered Important for the Chemical and Construction Materials Industries
The following lists the priority issues identified through discussions with human rights NPOs and other companies in theindustry under the stakeholder engagement program conducted by Caux Round Table Japan.

In our group

Contractor/
Cooperationcompany

Suppliers

Working hours

◎

◎

◎

Health and safety

◎

○

○

Disciplinary measures

○

ー

○

During work

○

○

○

Risks to children

ー

ー

○

Minimum age

ー

ー

○

Working hours and conditions of
employment

ー

ー

○

Employment of young workers

ー

○

○

Deposits and papers

ー

○

○

Forced overtime

◎

◎

◎

Trafficking in human

ー

ー

○

Freedom of association and collective
bargaining

○

○

○

Conflict with local law

○

○

○

Use of natural resources (water, land,
etc.)

◎

ー

◎

Bribery and corruption

◎

ー

ー

Governments with poor human rights
records○ー○Key Human Rights Issues
Core operation/Supply chain
Workplacecondition
Discrimination

Child labour

Forced labour

Freedom of
association
Community
Resources

Society and Government
Relations withgovernments
Relationship with
consumers

Health and safety◎: Most important ○: Important

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Social Aspects
4.5 ｜ Human Rights

Priority Human Rights Issues That the Fujifilm Group Must Address
Following the above process, in FY2018, the Fujifilm Group identified the following potential human rights issues that we should
address as a Group (see the table on the next page, Human Rights Impact Assessment in Existing Business). Out of theseissues, we have identified the following two areas as salient human rights issues and have begun to take concrete action: (1)Actions for suppliers, contractors and cooperation companies, and (2) Actions for employees.
Human Rights Impact Assessment in Existing Business(Priority human rights issues that the Fujifilm Group must address are colored red)
Relevance to business segments
Targetedstakeholders

Customers, etc.

Employeesof suppliers,
contractors andcooperationcompanies

Local
communities

Employees

Potential human rights issues that the
Fujifilm Group must address

Healthcare &Document
Imaging solutions Material Solutions
Solutions(Digital cameras,(Highly functional(Office products andetc.)materials,
printers, etc.)
etc.)

Product safety
Personal data protection
Human rights infringement by unintended useof products and services
Consideration of rights of human subjects andsample providers for R&D in the healthcare
business
Appropriate labor conditions, labor
management, health and safety management

◎

◎

◎

△

〇

△

ー

◎

ー

◎

〇

◎

Consideration for rights and safety of foreign
workers (especially in factories)

◎

〇

◎

△

△

△

〇

△

◎

〇

〇

〇

〇

〇

〇

◎

◎

〇

Infringement of local residents’ rights(including decrease in assets, degradationof daily life environment, and health damage)due to environmental damage caused byinappropriate management of chemical
substances or illegal dumping
Decrease in assets, degradation of daily
life environment for local residents due toinappropriate procurement of raw materials
Appropriate labor conditions, labor
management, and health and safety
management
Adverse impacts such as mental or physicaldamage and decrease in opportunities due todiscrimination, harassment, and infringementof privacy
Health damage due to inappropriate
management of chemical substances,
biomaterials, etc. in production and R&D

◎

◎

◎

4.5.4 Prevention and Mitigation of Adverse Impact on Human Rights and Progress(1) Actions for suppliers, contractors and cooperation companies
The Fujifilm Group promotes actions for respecting human rights among suppliers, contractors and cooperation companies,
which is one of the priority human rights issues, mainly within the framework of ethical procurement. We clearly specify theProcurement Policy and Request to Suppliers as a procurement approach to gain the understanding of suppliers involvedin the Group’s product manufacturing regarding the importance of CSR management. We aim to work together to resolve
human rights issues. In the Sustainable Value Plan 2030 (SVP2030), the CSR mid- and long-term plan announced in 2017, we
committed to reinforce the CSR foundations such as labor, human rights, environment, and corporate ethics throughout the
supply chain–which we appointed as one of the priority areas.
The Group's ethical procurement program comprises (1) Notifying policies etc. to suppliers, (2) Risk assessment insuppliers, (3) Instruction activities for suppliers, and (4) Improvement activities for suppliers. As well as elimination of forcedlabor and child labor, we provide various checks and support for suppliers, including labor management, occupational healthand safety, and consideration for migrant workers.
Based on the risk assessments that Fujifilm and Fuji Xerox have conducted using a self-checklist on labor, human rights,
the environment, corporate ethics etc., our primary suppliers in Japan, Europe, and the United States have been recognized
as low CSR risk. In FY2018, we have identified 46 suppliers with CSR risks in China and Vietnam, and conducted onsite “Visit
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Social Aspects
4.5 ｜ Human Rights

and Check” by expert team from the Fujifilm Group. Leading examples of issues related to the human rights of employees at
suppliers, issues in the areas of labor management (excessive continuous work attendance and overtime work, etc.), shortageof fire prevention facilities such as sprinklers and fire detection devices, non-use or inadequate management of the necessary
protective gear, inadequate management of hazardous wastes, etc., were identified. Requests for improvement have been
issued to the suppliers accordingly, and improvements are underway based on their respective improvement plans. For moredetails about measures of ethical procurement, see 2.4 Supply Chain Management in this report.
Fujifilm Group Procurement Policy and Request to Suppliers

URL: https://www.fujifilmholdings.com/en/sustainability/vision/procure.html(2) Actions for our employees
We raise awareness on priority human rights issues among Group employees in their new employee training programsand training programs for new managerial personnel. The training programs for new managerial personnel focus on labor
management in general, including prevention of long working hours and mental health measures, as well as harassment
prevention. Regarding overtime working hours, changes in monthly overtime is monitored, and warnings and guidance
to business division exceeding the designated levels are issued and the necessary corrective measures are implemented
continuously. We are addressing the harassment issues with implementation of measures adapted flexibly to conditions ineach company and business division, in addition to regular training programs. In fiscal 2018, for instance, we conductedcustomized harassment trainings for business divisions that were likely to show a high level of potential and actual risk. For risk
managers, trainings to provide further details on how to handle counseling cases were conducted. For occupational healthand safety efforts, see 4.3 Health and Safety in this report.
In April 2019, we revised the Fujifilm Group Charter for Corporate Behavior and the Code of Conduct to adopt moreglobally generic contents, and enhanced descriptions concerning human rights such as respect for diversity and elimination of
discrimination, prevention of bullying and harassment, promotion of occupational health and safety, and health promotion. The
revised Charter for Corporate Behavior and Code of Conduct was translated into 24 languages as part of our global education
program, including disseminating the company’s human rights statement to all Group employees.

(3) Human rights risk management
The Fujifilm Group conducts annual screening of priority risk issues (including potential ones) in business processes at all its
organizations. All the organizations including Group companies identify priority risk issues, plan and execute measures, andmanage their results. Priority issues for the entire Group, based on the review results for each organization, and the results ofaction implemented are reported and deliberated on by the Fujifilm Holdings ESG Committee and reported to the Board of
Directors. This process is applied also to human rights issues. Human rights are specified explicitly as one of the perspectives
requiring attention at each company in review of our priority risk issues, with various human rights issues being managed as
elements for review in group-wide risk mappings.
In the 2017–2018 study on priority risk issues, risks related to work accidents, harassment, product safety, labor
management, employee safety, personal data management, environmental pollution, etc., were pointed out as major issues
related to human rights. The number of organizations that identified labor management and harassment, which are designatedas prioritized human rights issues related to our employees, as actual or potential risks stood at 91. All of these organizations
have developed and implemented preventive and mitigating measures. For more details about group-wide risk management,see 2.2.3 Compliance & Risk Management Promotion Structure in this report.

(4) Review on group-wide human rights-related activities
FUJIFILM Holdings conducts individual dialogues with experts in business and human rights, who were invited to the 2018
Business and Human Rights Conference in Tokyo held by Caux Round Table (CRT) Japan, to review our human rights
initiatives. This included a dialogue about FY2017 results.
●FY2018 Dialogue with human rights experts

Date:
September 12, 2018
Location:
Tokyo, Japan
Participants: Experts
		
Livio Sarandrea, 	Manager and Chief Adviser of Regional Program on Business and Rights, United
Nations Development Programme (UNDP) Bangkok Regional Hub		William Rook, 	Regional Manager, Middle East, Institute for Human Rights and Business
FUJIFILM Holdings		Mari Kojima, 	Manager, CSR Group, Corporate Planning Division		Toshihiko Hoshino,	Senior Expert, CSR Group, Corporate Planning Division
Moderator
		
Minoru Matsuzaki,
Caux Round Table (CRT) Japan
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Social Aspects
4.5 ｜ Human Rights

1. Appraisal of the Fujifilm Group Human Rights Statement (enacted June 2018) and dissemination throughout thecompany and suppliers.
2. Opinion exchange on clarifying positive and negative elements to society from Fujifilm Group business activities
when creating the Sustainable Value Plan 2030 (SVP2030), the Fujifilm Group CSR Plan, following the UN SDGs.
Discussion results:
The Fujifilm Group Human Rights Statement received a positive comment that it is well composed. In order todisseminate the declaration, the key is to engender the correct understanding of “human rights due diligence,” as
it is not such a common concept for general employees. For future prospects we are expected to provide detailed
and easy-to-understand descriptions on correction measures and remedies.
Our efforts towards the SDGs were also well appraised, and at the same time it was suggested that we should
create a policy for SDGs to support the story that SVP 2030 is well linked with SDGs.
In global society, “responsible business” is becoming increasingly important as a concept that transcends
conventional CSR. One comment was that we could realize “sustainable business” only after pursuing responsible
business.

Topics:4.5.5 Grievance Mechanism on Human Rights
Chapter 1 of the Fujifilm Group Code of Conduct describes our policies on Respect for Human Rights. Group employees
can report any concerns relating to the violation of items listed in the chapter or infringements of human rights that require
correction and remedies through the whistle-blowing system. Reports can be submitted to either (1) each company or region,or (2) the Group. In either case, the anonymity of the whistle blower is ensured and therefore they cannot be unfavorably treatedbecause of their report. For the number of reports made in FY2018, see 2.2.10 Whistle-Blowing Office and Consultation Officein this report.
For outside stakeholders, the Group provides the Contact Sustainability form and is ready to receive a wide range ofcomments on our CSR activities, including human rights.
Contact Sustainability

URL: https://www.fujifilmholdings.com/en/sustainability/contact/index.html

4.5.6 Collaborative Initiatives Regarding Human Rights
Caux Round Table (CRT) Japan
FUJIFILM Holdings has been participating in the Stakeholder Engagement Program held by the Nippon CSR Consortium(secretariat: CRT Japan) since 2012, discussing human rights issues in different industries.*1 In the 2018 Business and Human
Rights Conference in Tokyo, held by CRT Japan, we presented our human rights practices*2 as an example of a Japanesecompany. We also had individual dialogues with international business and human rights experts and reviewed our practices
based on the dialogue results.*3*1 CRT Stakeholder Engagement Program(Japanese)(English)http://crt-japan.jp/portfolio/she-program/
http://crt-japan.jp/en/portfolio/human-rights-due-diligence-workshop/*2 Presentation in the CRT International Conference (Agenda and report)(Japanese)(English)http://crt-japan.jp/human-rights/conference/
http://crt-japan.jp/en/seminar-overview/global-conference/*3 CRT dialogues with experts (Japanese only)
URL: http://crt-japan.jp/human-rights/expert-dialogue/

UN Global Compact
Fuji Xerox is signed up for United Nations Global Compact, a voluntary initiative that encourages companies to undertake fair
operations in the areas of human rights, labor, environment, and anti-corruption. In Japan, we have jointly hosted the Human
Rights Diligence Working Group within Global Compact Network Japan since 2017, among the various working groups where
corporate members discuss and exchange information on related topics.

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Social Aspects
4.6 ｜ Corporate Citizenship

4.6 Corporate Citizenship4.6.1 Basic Approach
The Fujifilm Group is committed to contributing to the sustainable development of society, working together with local
communities as a good corporate citizen and responding sincerely to the demands and expectations of those communities.
In 2008 we formulated the Fujifilm Group Social Contribution Policy, based on which we are conducting activities focusing
on the fields of research and education, culture, arts and sports, health and environmental conservation through cooperationand collaboration with local communities, institutions, NPO/NGOs, and others and in active support of volunteer activities
conducted by employees.

Fujifilm Group Social Contribution Policy
The Fujifilm Group will work together with local communities as a good corporate citizen and contribute to society by
responding sincerely to needs and expectations of those communities. The Group has established following action plans
to implement this policy.
1. Focus of activities
The Fujifilm Group will primarily focus on the fields of education and research; culture, arts and sports; health; andenvironment.
2. The Fujifilm Group will place value on following points when we conduct social contribution activities:
1. 	The Group will collaborate and work together with stakeholders. We place importance on mutualcommunication and partnerships with local communities, institutions, NPO/NGOs, and others.
2. 	The Group values the importance of employees to participate in volunteer activities that would enhance local
community harmonization, as well as to enhance social improvements. The Group will fully support such
employee volunteer activities.
3. 	As a means of social contribution, the Group will utilize its business strengths, such as products, services,
technologies and know-how.

Established in April 2008, Revised in April 2019

4.6.2 Major Examples of Social Contribution through Business Activities
	

FF: Fujifilm

Theme of social
SVP2030
SDGs
contribution

FX: Fuji Xerox

Relation tobusiness

Activities

Social/environmental results

Healthcare& Materials
Solutions• Improve healthcare quality in Zambia(FF)• Spread Japanese-style medical
services internationally (FF)• Promote early discovery of infectious
diseases (FF)• Fighting breast cancer campaign (FF)etc.

• Improve healthcare quality in Zambia(FF)• Spread Japanese-style medical
services internationally (FF)• Promote early discovery of infectious
diseases (FF)• Fighting breast cancer campaign (FF)etc.

HealthContribution to
improvementof medical
environment& diseaseprevention
promotion

Life
Style

Contribution
to culture, art,
education,and disasterrecoveryutilizing
photographic,
film, andprinting
technologies• Archive analog assets (FF)
• Replication of historical documents(FX)
Imaging•
Future creation activities in Iki-shi,
SolutionsTono-shi, and Minami-Ashigara-shi(FX)
Documentation • Photo Renaissance (FF)
Solutions• Photo project for children who
encountered death in the family (FF)• Photo restoration project (FF)
etc.

• Archive analog assets (FF)
• Replication of historical documents(FX)• Future creation activities in Iki-shi,Tono-shi, and Minami-Ashigara-shi(FX)• Photo Renaissance (FF)• Photo project for children who
encountered death in the family (FF)• Photo restoration project (FF)
etc.

Contribution
to educational
issues to thenext generationand disabled
people• Textbook provision in emerging
countries (FX)
• Enlarged font textbooks for weaksighted children (FX)
• KID’S ISO (FX)
Documentation • Donation books and stationery to
deprived children (FF)
Solutions• Photographic events for children withrare or intractable diseases (FF)• Mental support for children throughphotographs (FF)• Volunteer group support for
employees: Hasu (fraction) Club etc.

• Textbook provision in emerging
countries (FX)
• Enlarged font textbooks for weaksighted children (FX)
• KID’S ISO (FX)
• Donation books and stationery to
deprived children (FF)• Photographic events for children withrare or intractable diseases (FF)• Mental support for children throughphotographs (FF)• Volunteer group support for
employees: Hasu (fraction) Club etc.

Health/Others

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4.6 ｜ Corporate CitizenshipSocial contribution throughbusiness operations
Support for the education of
the future generation
Environmental conservation
and biodiversity conservation

4.6.3 Social Contribution Activities Continued by the Fujifilm Group●●●

Photo Rescue Project (Fujifilm)
Creating digital archives of cultural assets (Fujifilm)
The Heart to Heart Communication—“PHOTO IS” 50,000—Person Photo Exhibition (Fujifilm)
Album Café (Fujifilm)
Reproducing historical documents (Fuji Xerox)
Pink Ribbon Campaign (Fujifilm)

●
●
●
●●
●●
●●

Photo class for young people (Fujifilm)
Offering large-print textbooks to students with low
vision (Fuji Xerox)
Offering learning materials in emerging countries(Fuji Xerox)●●●

Fuji Xerox Kobayashi Fund (Fuji Xerox)
Fuji Xerox Print Collection (Fuji Xerox)
Special Olympics (Fuji Xerox)●● Kikigaki-Koshien (Fujifilm)●● Kankyo-Nikki, “Midori-no-Komichi” (Fujifilm)●● “Kids’ ISO 14000” program (Fuji Xerox)● Charitable Trust Fujifilm Green Fund (Fujifilm)● “Watashi-no-Shizenkansatsuro Competition”(Fujifilm Green Fund, etc.)● Ground water conservation activities in
Minami-Aso village (FUJIFILM Kyushu)● Volunteer tree planting activity in China (Fujifilm)● Training sessions for nature guides (HASU-Club,
Fuji Xerox)

4.6.4 Results of Social Contribution(1) The Amount of Expense on Social Contribution
The Amount of Expense of FY2018 by Category in the Fujifilm Group
Type of contribution

Amount (million yen)

Education for future generations

68

Harmony with the local community

220

Promote culture and the arts in society (in Japan)

601

Consideration for the international community andinternational cultures

96

Cooperation with NGOs and NPOs

34

Total

1,019

* See Chapter 5. Sustainability Accounting

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Social Aspects
4.6 ｜ Corporate Citizenship(2) Community Investment Cases
In Japan

Overseas

Fujifilm Green FundIn commemoration of FUJIFILM’s 50th anniversary, Fujifilm
started this Fund Japan’s first charitable trust to protect nature in
1983.
Through this fund, we offer financial support for nature protection
activities and research bodies, and host nature protection
awareness raising programs for primary and junior high school
pupils.

Contribution to recover the original marshland and bushland
Dutch nature preservation group, Natuurmonumenten has been
recovering woodland and agricultural land in Huis ter Heide backinto the original marshland and bushland since 1993. Fujifilm’s
office is in Tilburg, near Huis ter Heide and the company has
contributed to Natuurmonumenten’s activities through financial
support of more than 100,000 euros over the last 10 years.

HASU-Club (Fuji Xerox)
This is a volunteer support organization established by
employees’ own initiative in 1991. The organization is fundedthrough the payroll giving by the employees who opted to donate
a fraction (less than 100 yen) of their salary and bonus, plus anamount that the individual wishes to add monthly. The fund isthen reserved and the company offers matching donations infour charity areas ; "social welfare," "culture and education,""natural environment," "international aid, "chosen by employees
to support their volunteer activities and related NPOs.

Kobayashi Fund by Fuji Xerox Co., Ltd.
Established in 1977 as an intra-company fund to contributeto mutual understanding and goodwill through academic
exchanges between Japan and countries in the Asia-Pacificregion. It offers research grants and fellowship programs for PhD
researchers who fulfill the above conditions specializing in thearts and humanities and social science studies. The total numberof students who have received research grants reached 1,455 at
the end of FY2018.

4.6.5 Efforts to assess the impact on society and the environment(1) C ontribution effect for customers through environmental activities in business (CO2 andwater)
The contribution effect for customers is the sum of customers’ expenses brought by when a new product which is environmental
friendly has replaced a conventional product. (For example, when customers use an environmental friendly product, we
calculate the amount of money comparing the reduced cost for electricity, resources, or consumables which they used to use
with a conventional product.)(Unit: million yen)

FY2016

Amount
FY2017FY2018

1. H
 igh-density magnetic memorymaterials

7,196

7,165

8,414

2. P
 re-sensitized aluminum plate
not using plate-making film

66,267

83,506

96,352

3. F
 ilm for LCDs: WV films

5,527

4,120

2,790

4. D
 igital color multifunction
device and printers

28,601

24,962

16,986

Total

107,591

119,754

124,542

Product

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Social Aspects
4.6 ｜ Corporate Citizenship(2) Social impact assessment in social contribution
Fuji Xerox has worked since FY2016 to visualize social impact from our social contribution activities since FY2016.
① Background

In FY2012, Fuji Xerox decided to strengthen social contributions that harness the unique qualities of Fuji Xerox as a company
In FY2012, Fuji Xerox decided to strengthen social contributions that harness the unique qualities of Fuji Xerox as a company
whose ultimate calling is “communications.” The company set out two high-priority management themes to encourage its
social contribution activities. These themes are: “Education for future generations,” and “Conservation of diminishing culturesand information.” Through such activities, Fuji Xerox aims to achieve three of the Sustainable Development Goals (SDGs): “#4.
Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all”; “#11. Ensure access toaffordable, reliable, sustainable and modern energy for all” and “#17. Strengthen the means of implementation and revitalize
the global partnership for sustainable development.”② Purposes

Fuji Xerox has measured the social impact of contribution activities in order to understand effects. Specifically, regarding thethree projects “Offering Learning Materials in Emerging Countries”, “Reproducing and Utilizing Historical Documents”, “theMirai Zukuri (future creation) activity in Tono”. Fuji Xerox established a social impact assessment method* to quantitatively andqualitatively measure the changes and effects to visualize the social impact. Fuji Xerox then reflected the assessment results
utilizing the PDCA cycle, while also sharing them with stakeholders to contribute to resolving problems in local communities.
In this way, Fuji Xerox helped communities to further develop over the years.
* Determining the value of projects and activities by quantitatively and qualitatively understanding social and environmental changes, benefits,learning, and effects generated as a result of our projects and activities over both the short term and long term.
(From the definition of Global Social Impact Investment Steering Group (GSG, previous G8 Social Impact Investment Task Force.)③ Activities

To evaluate the social impact from our major social contribution activities, including the project to offer learning materials
in emerging countries and reproduction and utilization of traditional documents, we created a logic model and made trial
assessments.
(1)	Creating a logic model utilizing the Social Impact Assessment Tool Set.*1(2)	Creating a logic model based on a program evaluation approach and a review by Meiji University.
To enhance the reliability of our own assessments, we asked the Institute for Program Evaluation of Meiji University toreview our assessment results in FY2017.
(3)	Learning the latest trends concerning social impact assessment and contribution to disseminating such methods inJapan.
Since FY2017, we have been participating in the Social Impact Management Initiative*2 as a core member of the Case
Study Archiving and Utilization Working Group.
*1 A guidebook for social activity assessment created by GSG.
*2 A private-led platform to promote social impact assessment in Japan, established in 2016.

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Social Aspects
4.6 ｜ Corporate Citizenship(3) Discussion example: Suggested social impact assessment logic model and indices① Project to provide learning materials for children in emerging economies

Logic model and suggested performance indicators for Fuji Xerox’s “project to provide learning materials for children in emerging economies”
Multi-sector collaboration aimed at distributing learning materials to some 100,000 children by 2023 to rectify disparity of educational opportunities in emerging economies
Interim outcome(Operation objective)

Final outcome(Higher-order objective)

PeopleStaff, employees
as volunteers

Distributing learning materials

ChildrenFeeling the joy of learning

Higher academic capability

Increased learning
opportunities• Increased motivation
to learn
Number of positive responses
in surveys (level of interest in/enthusiasm for study)

Children can choose afuture path they desire(higher education/
employment)

Local NGOs

• Higher basic knowledge /skills• Increased enthusiasm forhigher education• Number of learningmaterials distributed• Number of children who
receive learning materials• Types of learningmaterials distributed

Outputs

Increased partners fortheir activities
Financial sponsors
Having their company names
appear in learning materials

Materials

Local communities andresidents

Printing devices,
paper

Becoming aware of
the activities

Higher name value/reputation
in local communities
Number of positive responses
in surveys (level of recognition/
reputation in local communities)

Greater interest/awareness/emphasis on childrenChildrenMoney• Number of children who
have received mentoring/monitoring

Increased opportunities
to get associated withadults• Heightened self esteem• Heightened sense of
empowerment
Number of positive responses insurveys (mentality score given on self
esteem and sense of empowerment/
mentality about future)

Capable of considering personalgoals and the future

Guardians
Increased opportunities tothink about children’s
education• Enrollment status: Junior highschools, senior high schools,
universities• Number/ratio of children who
have enrolled: Junior highschools, senior high schools,
universities• Employment rate

Greater connection withlocal communities
Number of people participatingin local activities (various
projects, events, etc.)

Number of positive responses
in surveys (level of interest/
awareness)

Heightened self respect/dignity

Monitoring/mentoring(children and parents)• Exam scores• Number of positive responses
in surveys (enthusiasm forhigher education)

Number of positive responses
in surveys (score given on
mentality about the future)

Improved school attendanceand established study habit
at homeNumber of positive responses
in surveys (attendance status,
study hours/frequency at home)

Heightened sense of trustin society• Establishing a sense ofengagement in social issues
Number of positive responses
in surveys (score given on thesense of trust in society)

Heightened understanding
about the importance ofstudy for young children

Established environment thatfacilitates children’s learning

Number of positive responses insurveys (level of awareness about theimportance of children’s education)

Number of positive responses insurveys (level of improvement inchildren’s learning environment)

Vision: Contributing to redress the disparity of educational opportunities among children in the Asia Pacific region

Initial outcome(Direct objective)

Inputs/activities* This shows a logic model and suggested performance indicators for social impact measurement as of June 2018. The items shown in grey have not been implemented.

URL: https://www.fujixerox.com/eng/company/csr/sr2018/communities/theme1.html

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Social Aspects
4.6 ｜ Corporate Citizenship② Project to replicate and utilize traditional documents

Logic model and suggested performance indicators for Fuji Xerox’s project to replicate and utilize traditional documents
Time-transcending communication through the replication and use of traditional documents to succeed local history and cultures to future generations
Inputs/activities

Outputs

Initial outcome(Direct objective)

PeopleReplication
work

Replicating andgifting documents

Producing high-quality
replicas that are faithfully
reproduced
Owners/administrators
displaying and using
replicas

Experts (using the replicas
to conduct research)

Materials

Multi-functional
devices,
Japanesetraditional paperand othermaterials

Experts using replicas
to conduct research
Planning the use of
replicated documents• Education• Events/fairs

Building a structure forreceiving feedback fromrecipients about the useof the replicas

Circulating information
about this project

Satisfying needs toreplicate traditional
documents• Number of times information
about the project ispresented• Number of times replicateddocuments are gifted• Recipients’ level ofsatisfaction about the replicas

Use of replicatedtraditional documents• Level of replicateddocuments’ use (usage
method, number of times/
frequency the replicateddocuments are used, numberof people who have viewed
the replicated documents)

Wide recognition andsupport for advanced
replication technology• Number of media reports on the
project (external)• Number of times project information
is displayed/posted (internal)• Number of times project information
is viewed (internal)

Approaching local
governments’ cultural
departments and the
Agency for Cultural
Affairs with presentation,etc. about the project

Reinforcing relationship withlocal communities/universities
and public organizations suchas the Agency of Cultural Affairs

Making local traditional
documents available toview and touch for alarge number of people• Increased number ofopportunities to view traditional
documents• Level of local interest in cultures/traditional documents

Replication of traditional
documents making themaccessible to promoteresearch and education• Outcome of research on
traditional documents• Use of traditional documents• Number of collaborations forschool education/adulteducation• Level of understanding
among those who receive
education about replicateddocuments

Establishing people’s
understanding about thesocial value of parties
that own traditional
documents• Heightened recognition oforganizations/people owning
traditional documents• Increased number of visitors
to the exhibition

Preserving/utilizing
valuable traditional
documents without thepossibility of loss
(Protecting theexistence and value of
traditional documents)

Helping people recognize
the significance of
succeeding local cultures

Helping local residents
deepen their sense of
attachment andunderstanding for theircommunities

Vision: Succeeding local histories and cultures to future generations• Conducting presentations
about the project• Identifying issues such as thepreservation of originals• Compiling a collection ofusage examples in this project

Final outcome(Higher-order objective)

Users (those who learn history
and cultures from replicas)
and local residents

Owners/administrators of
traditional documents
Identifying needs for
replicated documents

Interim outcome(Operation objective)• Number of cases of reinforced
relations with recipients• Number of collaborations with
universities/public organizations• Number of cases of reinforced
relations with universities/publicorganizations* This shows a logic model and suggested performance indicators for social impact measurement as of June 2018.

URL: https://www.fujixerox.com/eng/company/csr/sr2018/communities/theme1.html(4) Future prospects
Valuing dialogues with our stakeholders, we continue improving our social contribution activities based on the results ofour social impact assessment in order to contribute to problem solving and development of local communities. We are also
considering applying this measurement method across the Fujifilm Group.

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Sustainability Accounting
5 ｜ Sustainability Accounting (Labor Environment and Social Benefit Accounting, Environmental Accounting)

5.0 S
 ustainability Accounting (Labor Environment andSocial Benefit Accounting, Environmental Accounting)<Period of coverage>
FY2018 (April 1, 2018 to March 31, 2019)<Scope of labor environment and social benefit accounting>		68 domestic companies in the Fujifilm Group(FUJIFILM Holdings, Fujifilm and 19 Fujifilm affiliates, Fuji Xerox and 46 Fuji Xerox affiliates)

5.1.1 Labor Environment and Social Benefit Accounting<Basic items>●Objectives of labor environment and social benefit accounting
These accounts are prepared to allow the Fujifilm Group to keep up with its activities for improving the working environmentof its employees and the amounts spent for social contributions by preparing data on these activities from an economic
perspective.
●Accounting method

The expenditures (including investments) for the year have been added up to arrive at the figures shown. These figures do
not include depreciation. Figures for personnel training and social contributions may overlap with figures in the Environmental
Account as well.
*Values presented are rounded and the sums of the items do not always make up the totals.

Breakdown of Labor Environment and Social Benefit Accounting
Stakeholder

Goal

Unit: million yen

Cost totals
FY2017FY2018Work health and safety

1,698

1,586

Personnel training

2,848

952

Protect diversity

870

26

Develop a workplace in which employees can work
comfortably

1,135

864

Customers

Ensure appropriate customer response and safety

232

202

Future generations

Education for future generations

75

68

Communities(local society andgovernment)

Harmony with the local community

218

220

Promote culture and the arts in society (in Japan)

896

601

International
community

Consideration for the international community andinternational cultures

2

96

NGOs and NPOs

Cooperation with NGOs and NPOs

77

34

Suppliers

Consideration for products

52

14

8,103

4,663

Employees

Total

FUJIFILM Holdings Corporation Management Report 201988

Sustainability Accounting
5.1 ｜ Sustainability Accounting (Labor Environment and Social Benefit Accounting, Environmental Accounting)

Volunteer Activities During Working Hours

Hours spent on volunteer activities
Volunteering cost (million yen)

FY2016FY2017FY2018

1,117

1,436

1,440

6

9

9

* Volunteer activities
Calculated based on the hours spent on volunteer activities, such as area clean-up, working hours, the salary equivalent to that of those hours,
and cost of the activities.

Overview of FY2018• Expenditure on improving working conditions and for socially beneficial activities for different stakeholders is summarized.
• Efforts are made to create a worker-friendly environment through expanding educational seminars and supporting
mental healthcare programs.
• For local communities, expenditure includes a donation to build the Japan Photographic Preservation Center and a
product donation to the Nature Conservation Society of Japan. In the promotion of art and culture, expenditure includes
Fujifilm Square as the base for preservation and communication concerning photographic culture, as well as for photo
contests.

5.1.2 Environmental Accounting<Basic items>●Objectives of environmental accounting
1. To provide accurate quantitative information on volumes and economic effects to interested parties inside and outside theGroup
2. To provide numerical environment-related information useful for decision making by management and supervisors at theworking level●Accounting method

Based on the “Environmental Accounting Guidelines (2005 edition)” published by the Ministry of the Environment in Japan.
1. D
 epreciation is calculated in principle according to the straight-line method over a threeyear period.
2. When costs include expenditures for both environmental and non-environmental purposes, the portion relating to nonenvironmental purposes has been excluded.
3. Economic impact within the Group: The difference in value terms from the previous year in fines for polluting and usage ofenergy, raw materials, water, and other resources is accounted for, as well as the real impact of recovery, recycling, andother measures in value terms for the year in question.
4. Economic impact outside the Group: The difference in value terms from the previous fiscal year has been shown for SOx,
VOCs, and CO2. For recycling, the anticipated benefit in value terms has been shown for the year in question.
* Values presented are rounded and the sums of the items do not always make up the totals.

FUJIFILM Holdings Corporation Management Report 201989

Sustainability Accounting
5.1 ｜ Sustainability Accounting (Labor Environment and Social Benefit Accounting, Environmental Accounting)

Environmental Accounting

Unit: million yen

Environmental conservation benefits
Capital investment
Expenses
Fiscal year
2017
2018
2017
2018
1. C
 osts incurred within
1,129
1,168
5,493
6,355
the business site(1) Environmental
damage prevention

376

367

1,440

1,738

(2) Global
environmental
protection

751

797

1,900

2,073

2

(3) Resource recycling

4

2,153

2,544

Environmental conservation costs
Economic impact inside the Group
Economic impact outside the Group
Fiscal year
2017
2018
Fiscal year
2017
2018

Reduced pollution
levy

5

0

Energyconservation

485

590

6,261

6,261

331

412

1,622

1,676

318

283

150

245

182

103

8,036

7,704

Reduced raw
materials andresources used
Reducedwater resource
consumption*5
SilverPolymericmaterials
Aluminummaterials
Others2. Upstream/downstream
costs
Recovery from themarket3. C
 ost of management
activities
4. R esearch anddevelopment costs
5. Costs for social
programs
6. C osts for handlingenvironmental damage
Pollution levies
Total

9

0

7,005

6,976

46

138

10,743

9,708

1,369

1,345

9,770

10,014

0

0

115

4

3

19

28

50

2,555

2,670

33,155

33,107

Parts recoveredfrom usedequipment

Reduction in00
SOx emissions*1
Reduction involume of SOx
4t-4 t
emissions
Reduction involume of NOx
81 t
75 t
emissions
Reductionin VOC-32
2
emissions*2
Reduction in-92 t
6t
volume of VOC
Reduction in
16
142
CO2 emissions*3
Reduction involume of CO2
11 kilotons 50 kilotons
emissions
Reduced wastematerials
through reuse
and recycling*4

14,45012,907

Reducedvolume*6

144.5
kilotons

129.1
kilotons

37

87

Reuse ofaluminummaterials
Reducedvolume of CO2
emissionsCustomerbenefits*7

17,391

17,27320 kilotons 30 kilotons

119,754

124,542

134,225

137,680*1 S
 Ox emissions reductions: ¥4.4/ton
Bidding price of SOx emissions credits offered by the United States Environmental Protection Agency in March 2019 (US$0.04/ton).
*2 VOC emissions reductions: ¥350,000/ton
From the “Economics Evaluation Report on Countermeasures for Harmful Atmospheric Pollutants” issued by Japan Environmental Management
Association for Industry, February 2004.
*3 CO2 emissions reductions: ¥2,818.2/tons
Trading price of EU emissions credit 2019 futures (€11.54/ton) at the end of March 2019.
*4 L andfill costs for the waste product (¥100/kg).
*5 Water resource consumption reduction: ¥200/ton for clean water supply, ¥200/ton for sewage water times the reductions amount.
*6 V olume of recycle and valuable resources in generated industrial waste*7 F or further details of customer benefits, please refer to 4.6.5 Efforts to Assess the Impact on Society and the Environment.

Overview of FY2018●Environmental conservation costs
Total cost is the same as last year’s. The facility investment is a little increased to last year’s, with approx. 7% into facility
investment and roughly 93% into expenditure.
[Facility investments] Increased 4% year-on-year.
[Expenditure] The same as last year’s.
●Environmental conservation benefits
This resulted in year-on-year increased by 75 billion yen (5%), when internal and external economic effects are combined.
[Internal economic effect] Roughly the same as last year’s.
[External economic effect] Increased benefits for customers by 9% on year-on-year.
FUJIFILM Holdings Corporation Management Report 201990

Independent Assurance Report
6 ｜ Independent Assurance Report

6 Independent Assurance Report
FUJIFILM Holdings Corporation commissioned SGS Japan Inc. to conduct an independent assurance of the environmental
and social data contained in its Sustainability Report 2019. Please refer to our website for further details.
URL https:// https://www.fujifilmholdings.com/en/sustainability/verification/index.html

FUJIFILM Holdings Corporation Management Report 201991

■ Please address inquiries on this publication to:

FUJIFILM Holdings Corporation
ESG DivisionTokyo Midtown, 9-7-3 Akasaka, Minato-ku, Tokyo 107-0052
Tel.: +81-3-6271-2065 Fax: +81-3-6271-1190
http://www.fujifilmholdings.com/en/sustainability/contact/index.html

Date of publication: December 2019

© 2019 FUJIFILM Holdings Corporation