[Priority issue 2]Promote Resource Recycling"Outline of Activities in FY2014"

The Fujifilm Group is making comprehensive efforts to use resources effectively and reduce waste throughout the entire lifecycle of its products, from design to manufacturing and disposing. We think carefully about the most effective ways to use resources and reduce waste as much as possible, by considering reduction of resources in products and recycling after use in the design stage, and reducing losses at the manufacturing stage. Meanwhile, we are concerned about waste emitted necessarily in manufacturing too, and since FY2011 we have been involved in project as Fujifilm Group to convert waste in manufacturing into valuables and raise the value of these valuables. In addition to activities at production sites, we have expanded to wastes in office and warehouse for transportation, promoted our measure in the scope of our business activities overall.

Regarding waste in office, we have improved used paper recycling by roughly 20% in the Tokyo metropolitan and Kanto regions through consolidated management by the Group's shared company. At distribution warehouses, plastics used for packaging have previously been disposed of as waste due to the low volume and wide variety. Starting at the end of October 2014, these plastics have been gathered by area for sorting and collecting by a contractor service. Such efforts are expected to generate value for roughly half of the plastics collected, thus cutting down waste output. With these activities, we were able to cut down waste by 9% in FY2014, achieving the Medium-Term Target of reducing volume of waste generated by 8% compared to FY2012 by FY2016 two years early. Outsourced waste disposal cost had also been reduced by 28% by end of FY2014 (compared to FY2010). Reduction of waste to be disposed of by simple incineration/landfill (zero emission) is underway on a global scale. In FY2014, the Group achieved zero emissions of over 90% for all regions (Japan, US, Europe, and China).

At Fuji Xerox, based on the approach that “used products are not waste products but valuable resources,” we have been introducing resource recycling activities aiming for Infinite Zero Landfill(*1) through the maximum use of resources by collecting used products and reusing and recycling(*2) them. We have achieved Zero Landfill from the collected used products in Japan by recycling them as a part of other products. We also established resource recycling systems equivalent to that in Japan in China and the Asia Pacific region based on the idea that we have same responsibility to reduce environmental impact in all the regions where we conduct business as a global corporation. As a result of such efforts, we have been maintaining more than 99.5% of resource recycling rate, which is the target rate for Zero Landfill, in all of our business areas(*3) since FY2010.

As for new resource inputs, we managed to reduce these by 41 tons in FY2014 from the previous year. However, we expect that it will be more difficult to retain such a reduction rate of these inputs against the increase in the amount of products and parts due to advancements in downsizing and weight reduction in products and consumables.

*1 Definition of “Zero Landfill”: Reduction of simple incineration or landfill to under 0.5% of total waste output.
*2 Reusing: Either parts are reused as they are, or their materials are reused.
Recycling: Components that could not be reused are recycled as a resource for other purposes.
*3 Japan, China and the Asia Pacific

Since our establishment, the Fujifilm Group has been working toward water usage reduction and water recycling. In FY2013, we set the medium-term target of “maintaining water usage per sales (water input per unit)(*1) at FY2012 levels” in order to address the water risk, which is now of growing concern and achieved the target of FY2014.We believed that our water risk was low as our production sites with high water usage are all located in Japan, where water is abundant. However, in FY2014, we identified our group sites with relatively higher water risk through visualization using a matrix with two indices: “water stress” and “impact on company business in terms of water usage.”

*1 =Water usage/revenue