Reporting Scope and Approach

Objectives

At FUJIFILM Business Innovation Hong Kong, recognising our role and responsibilities at the forefront of sustainability, we have incorporated the fundamental sustainability values in our management strategy while addressing the sustainability issues that are important to our stakeholders including customers, employees, suppliers and transaction partners, future generations, non-governmental organisations (NGOs) and local communities. We also ensure the accuracy and quality of our qualitative and quantitative sustainability data by using our Intelligent Environmental, Social and Governance (iESG) 2.0 management tool.

This report is prepared in response to the requirements for information disclosure of our business development plans and latest goals and initiatives. This is our 12^th annual sustainability report that follows the Japanese financial year closing on 31 March. As such, some projects and plans mentioned may be still in progress, have been completed or be scheduled to roll out in the next fiscal year.

Reporting Scope and Period

This report provides information on significant economic, environmental and social impacts incurred in our operations between 1 April 2020 and 31 March 2021 (i.e. FY2020) in the following locations operated by FUJIFILM Business Innovation Hong Kong:

• Hong Kong and Macau offices
• Logistics and Warehouse
• Document Technology Centre

Due to the different data collection systems implemented in individual offices, some performance data related to the Macau office has not been included.

Reporting Principles

This Sustainability Report has been prepared in accordance with:

• The internationally recognised Global Reporting Initiative (GRI) standards issued in 2016 and partially updated in 2018
• ISO 26000 : 2010 Guidance on Social Responsibility
• UN SDGs
• ESG Reporting Guide issued by the Stock Exchange of Hong Kong Limited (SEHK)

External Assurance

FUJIFILM Business Innovation Hong Kong appointed Hong Kong Quality Assurance Agency (HKQAA) to conduct an independent verification of this report according to the GRI standards, ISO 26000 : 2010 Guidance on Social Responsibility and SEHK ESG Reporting Guide. For details of the verification statement, please refer to the “Verification” section.

Sustainability Management

The Fujifilm Group has developed an approach to Corporate Social Responsibility (CSR) that contributes towards the sustainable development of the society by putting its Corporate Philosophy into practice through sincere and fair business activities. As such, FUJIFILM Holdings Corporation developed the SVP 2030 as a long-term plan with the same target year as the Paris Agreement and the UN SDGs.

As an overseas subsidiary of the Group, FUJIFILM Business Innovation Hong Kong makes appropriate non-financial information disclosures as requested by our stakeholders, creates value for them and shares our business performance. Although we are not a listed company in Hong Kong and are not obligated to disclose our ESG data, we believe that sustainability disclosure is a valuable means of stakeholder engagement. We will continue to integrate sustainability into our business and comply with international and local requirements through active disclosure. Please visit our corporate website holdings.fujifilm.com and local website fujifilm.com/fbhk for more publications and historical data on our sustainability performance.

Material Aspects and Stakeholder Engagement

With reference to Fujifilm’s SDGs-aligned SVP 2030, FUJIFILM Business Innovation Hong Kong undertakes a new materiality assessment in this reporting year to identify pertinent issues and evaluate their relevance to our business and stakeholders in accordance with the GRI standards and Accountability’s AA1000 Standards.

Since our first local Sustainability Report published in 2010, we have been defining the material aspects by reviewing the feedback from our Annual CSR Survey, with reference to international and Japanese standards and guidelines, including but not limited to the 10 Principles of the UN Global Compact, GRI, UN SDGs and J-SOX.

We have also invited our stakeholders to provide feedback on our performance in the environmental, social and economic areas, and share their views on our business and the sustainability challenges they have ever faced. We are pleased to learn that our leadership in ESG disclosures has been highly recognised by both our internal and external stakeholders. About three-fourths of the responding employees and most of our external stakeholders thought that our performance and the degree of transparency in ESG disclosures were “Good” or “Excellent”.

The feedback was collected and turned into a materiality matrix that reflected the priority of a material issue named by various stakeholders. Issues in the “High-High” area of the Materiality Matrix Diagram were identified as material matters, and other topics indicated might be further discussed.

Materiality Matrix

Material matters identified in the “High-High” area of this Materiality Matrix Diagram will be discussed in the following sections.

Key changes from last materiality analysis:

• Based on the review of the definition of Carbon and Energy Management, which refers to the consumption of electricity and fuels, and the approach and initiatives to manage operational energy consumption and greenhouse gas emissions, we combined “Carbon Management” with “Energy Management” in this report.
• Based on the review of the definitions of Occupational Health and Safety, which refers to providing a safe work environment and protecting employees from occupational health and safety hazards, and Good Health and Well-being, which refers to ensuring healthy lives and promoting well-being for all ages, we separated “Occupational Health and Safety” and “Good Health and Wellbeing” in this report.
• Based on the review of the definition of Workstyle, which refers to the efforts to improve employees’ job-related knowledge and skills, develop and utilise diverse human resources, we replaced “Manpower Development” with “Workstyle” in this report.
• Based on the review of previous materiality analysis and adhering to the Fujifilm SVP 2030, we removed “Zero Hunger”, “No Poverty”, “Life on Land”, “Life below Water”, “Clean Water and Sanitation”, “Quality Education”, “Partnerships for the Goals”, “Environmental Education”, “Decent Work and Economic Growth”, “Gender Equality”, “Peace, Justice and Strong Institutions“ and “Reduced Inequalities“ from the Stakeholder Engagement Survey and this report.

Our Response to Stakeholders’ Needs

Stakeholders	Concerns	Engagement Platforms
Customers	Quality of Products and Services User-friendly Design Cost Effectiveness of Services Responsiveness of Services Information Security	Customer Satisfaction Survey ISO/IEC 27001 Information Security Management System Audits Website Press Release Social Media Platforms
Employees	Safe and Fair Working Environment Benefits and Welfare Career Development Employee Satisfaction	Employee Relation Activities Newsletters Managing Director’s Monthly Message through Intranet Portal* Occupational Health and Safety Assessment
Suppliers and Transaction Partners	Economic Stability CSR Performance Management Business Ethics Fair Trade	Code of Conduct Irregular Meetings Letters
Future Generations, NGOs and Local Communities	Low Carbon Office Eco Product Lifecycle Sustainable Procurement Mentoring	Various Audits (ISO 14001 Environmental Management System, ISO 50001 Energy Management System, FSCTM Chain of Custody, 5S, etc.) Volunteering CSR and Fundraising Events Academic Projects Placement

Remarks: * Physical communication meetings and gatherings were cancelled to avoid crowd gathering during COVID-19 pandemic.

Management Approach

Echoing Fujifilm Group’s management philosophy, we attach high importance to creating value for the defined stakeholder groups through our sustainability management practices and processes.

Engagement with Customers

Under the new normal, we believe that innovation is the key to business growth, meeting the needs of customers and coping with the ever-changing environment. In light of the remote working mode during the pandemic, we have been supporting our customers to build up online infrastructure to maintain business and service continuity. Through interactive communication with customers, we have also fostered long-term customer relationships built on trust and mutual growth. The feature enhancements of the iESG 2.0 management tool demonstrates our innovative efforts to be more responsive to our customers’ needs in data management, target tracking, risk management and sustainability reporting.

Engagement with Employees

Employees are our key stakeholders in driving our business growth. We endeavour to provide an innovative environment for employees to pursue personal growth and cope with challenges. A wide array of engagement initiatives has been implemented to enhance job satisfaction, strengthen bonding, promote workplace diversity and provide learning and development opportunities.

Engagement with Suppliers and Transaction Partners

FUJIFILM Business Innovation Hong Kong attaches high importance to the partnerships with our suppliers and transaction partners along the supply chain with a strong sustainability foundation. To ensure that our suppliers share the same vision, we actively and frequently communicate with them on our sustainability philosophy and management approach and pursue continuous improvement together. Working closely with our suppliers and transaction partners, we have developed an all-rounded sustainable procurement strategy for our value chain.

Engagement with Future Generations, NGOs and Local Communities

We promote the sustainable development of our community by assessing and managing the social impact of our operations and by supporting local community initiatives that bring effective and lasting benefits to the public. Frequent dialogues with NGOs and charitable groups are conducted to address social and environmental issues, and proactive collaboration with academic institutions offers students further opportunities to integrate information and communications technology (ICT) software into their daily lives.