[Priority Issue 3] Enhance Value Chain Management from the Viewpoint of CSR: Outline of Activities in FY2016 “Biodiversity Conservation”

Since its foundation, the Fujifilm Group has engaged in a wide range of environmental protection activities for the conservation and protection of biodiversity, based upon philosophy of “environmental consciousness and environmental protection are at the core of our corporate activities,“ as we have needed lots of water and clean air to produce photographic films. In June 2009, we clarified our guideline for group-wide efforts to biodiversity conservation and introduced the “Fujifilm Group Basic Concepts and Action Guidelines for Biodiversity Conservation” (hereafter, “Guidelines for Biodiversity”). In 2012, we reviewed our biodiversity approach under the four key elements of factories, products, social contribution, and communication, 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.

• Activities on Biodiversity Conservation

Fujifilm is engaged in development of products based on Design for Environment that have been implemented from the standpoint of biodiversity conservation. At the same time, we are engaged in continued regional collaboration activities, such as ground water conservation in Minami-Aso Village. FUJIFILM Kyushu's activities become the first Grand Prix winner of the Kumamoto Ground Water Conservation Awards. In FY2014, we participated in the Taskforce Committee for the Nagoya Protocol on Access and Benefit Sharing for Genetic Resources (ABS) led by the Ministry of Economy, Trade and Industry in Japan, and since then, have been working to obtain the latest information on Japan's measures under consideration and trends in overseas legislation and exchange opinions on them.

• Ground Water Conservation Activities

Fuji Xerox requires its suppliers of paper, which is an important product for the Company, to comply with laws and regulations and to prevent impact on local ecosystems and the lives of local citizens as a result of deforestation. Fuji Xerox is also promoting greater awareness toward biodiversity in its CSR procurement activities, showing the importance of environmental conservation in its guidelines for suppliers. Furthermore, Fuji Xerox is participating in the Japan Business Initiative for Biodiversity (JBIB), established in FY2008 to promote biodiversity protection activities in Japan and other countries.