[Priority Issue 3] Enhance Value Chain Management from the Viewpoint of CSR: Outline of Activities in FY2016 “Response to Conflict Minerals”

The Fujifilm Group has declared that it will not use any minerals mined or refined by illegal practices, and does not take part, directly or indirectly, in supporting such activities. Further, it has clearly declared in the basic policy for procurement transactions that we are sincerely addressing the issue of conflict minerals.

The Fujifilm Group started an internal education program concerning conflict minerals step by step in 2010, and established internal guidelines to gather mineral source information using the Conflict Minerals Reporting Template supplied by CFSI (*1). Further, FUJIFILM joined the Responsible Procurement of Minerals formed by the Japan Electronics and Information Technology Industries Association (JEITA (*2)) in 2011, and Fuji Xerox followed in 2013. Those business divisions and Group companies that are subject to strong customer expectations constantly gather the latest information concerning conflict mineral regulations, while improving information accuracy with the help of suppliers.

In FY2016, we held briefing sessions for our suppliers to raise awareness of avoiding conflict mineral usage throughout the supply chain and the necessity of accurate information. We also continued the survey targeted on suppliers, and Fuji Xerox, which particularly faces a strong demand regarding conflict minerals due to the nature of the industry, managed to achieve a 96.5% survey response rate from their suppliers. Further, the percentage of Conflict Free Smelters (CFSs) in our supply chain has increased by 20.5 points, reaching a total of 40%.

*1 CFSI (Conflict-Free Sourcing Initiative): This international private sector organization supports companies in addressing the issue of conflict minerals. The template for conflict minerals reporting provided by CFSI is an investigation and information management tool for procurement of raw materials.

*2 Japan Electronics and Information Technology Industries Association (JEITA): This industry organization aims to foster the sound production, trade, and consumption of electronic devices and components, thereby contributing to economic development and cultural promotion in Japan.

In FY2017 the Fujifilm Group continues efforts in conflict mineral information gathering and accuracy improvement through providing regular briefing sessions and individual support for our suppliers. We particularly aim at maintaining a 95% survey response rate or higher to Fuji Xerox's survey in order to further refine information accuracy.