Committed to disclosing our sustainability performance in accordance to international standards with greater transparency, Fuji Xerox (Hong Kong) has adopted the stringent “Plan-Do-Check-Act” (PDCA) improvement cycle, supported by our pioneering Intelligent Environmental, Social and Governance (iESG) management tool that consolidates sustainability data to ensure accuracy and validity of all qualitative and quantitative data within the scope of this report. To facilitate a better understanding of our company, this report will illustrate our business development plans and latest goals and initiatives. While responding to the sustainability issues which are of greatest importance to our stakeholders, we will also share our business philosophy to show how we embed sustainability values in our management approach at every level.

This is our ninth annual sustainability report that follows the Japanese fiscal year which officially ends on 31 March. As such, the projects and plans mentioned in this report may be still in progress, may have been completed, or may be scheduled to roll out in the next fiscal year (FY).

This report covers information on significant economic, environmental and social impacts incurred in our operations between 1 April 2017 and 31 March 2018 (i.e. FY2017) in the following locations:

• Hong Kong Island’s offices
• Tsuen Wan’s Recycling Center
• Kwai Hing’s Document Technology Center
• Macau office

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

This Sustainability Report complies with:

• The international Global Reporting Initiative (GRI) Standards issued in 2016, ISO 26000:2010 Guidance on Social Responsibility, United Nations Global Compact (UNGC) Initiatives, United Nations Sustainable Development Goals (SDGs), Business Environment Council (BEC) Handbook of Understanding Materiality for Environmental, Social and Governance Report, SEHK Environmental, Social and Governance (ESG) Reporting Guide and Fuji Xerox Operating Companies’ Sustainability Report Guidance
• Stakeholder concerns
• Benchmarking against other industry players

This report was prepared in accordance with the GRI Standards: Core Option with respect to the extent of coverage and the information provided. To ensure credibility of this report, Fuji Xerox (Hong Kong) appointed Hong Kong Quality Assurance Agency (HKQAA) to conduct an independent verification of this report in accordance with the GRI Standards, ISO 26000:2010 Guidance on Social Responsibility and ESG Reporting Guide. For details of the assurance statement, please refer to the Verification section.

Under the Sustainable Value Plan (SVP) 2030 developed by FUJIFILM Holdings Corporation based on a comprehensive assessment of global social issues and Fuji Xerox Co., Ltd.’s commitment to being an “open, fair and clear” operation, Fuji Xerox (Hong Kong) has striven to exceed stakeholders’ expectations in every aspect, address customers’ concerns timely, and share values with stakeholders, demonstrating the principle of “unity of words and deeds” (“Genko-Itchi” in Japanese) in all business processes.

Despite not being a listed company and not obligated to publish this report, Fuji Xerox (Hong Kong) would like to share our CSR management performance with our stakeholders by reporting all ESG-related information in this report. We believe that it is a viable stakeholder engagement channel and an integral part of our strong relationship with all stakeholders. By means of active disclosure, we hope to ensure the integrity of our decision-making processes, enhance our CSR management and comply with international, local and industry requirements under the GRI Standards. Ultimately, we aim to create a positive impact for our stakeholders by further advocating local changes, addressing social issues and fostering a stronger bond with the society. Our parent company Fuji Xerox Co., Ltd. first published the “Fuji Xerox Environmental Progress Report 1998” in 1999, followed by the “Environmental Report” from 2000 to 2002, and eventually the “Sustainability Report” from 2003 onwards. Fuji Xerox’s Sustainability Reports can be viewed at https://www.fujixerox.com/eng.

In response to the interests and concerns of our stakeholders, we identified material matters in this report in accordance with the GRI Standards and refer to other applicable guidelines and principles, such as AccountAbility’s AA1000 Series of Standards.

Since our first Sustainability Report published in 2010, we have defined the report’s material aspects by reviewing the feedback of the Fuji Xerox Annual CSR Survey, which was developed based on international and Japanese standards and guidelines, including but not limited to the UNGC Ten Principles and the Japan Association of Corporate Executives’ New Corporate Assessment Standards. This year, we continue to incorporate the 17 Sustainable Development Goals (SDGs) established by the United Nations into our materiality assessment.

Through this materiality assessment that took local benchmarking platforms into consideration, the voices and opinions of internal and external customers and feedback from our unique “Green Tour” were included. First introduced in 2010, the “Green Tour” is an innovative two-way communication platform through which stakeholders are invited to visit our recycling and/or low-carbon facilities. In FY2017, 16 tours were organized and a total of 178 stakeholders visited our facilities. The feedback was categorized and formed a materiality matrix based on the frequency of a particular issue referenced by various stakeholders.

Materiality Matrix

Material matters identified in the “High-High” area of this Materiality Matrix Diagram will be discussed in the coming chapters, to which the covered matters will be highlighted in white at the beginning of each chapter.

Our CSR Improving Mechanism

For detailed linkage between material topics and SDGs, please refer to GRI Content Index.

Our Value and Connection to SDGs

Our Response to Stakeholder's Needs

In line with our parent company’s mission and responsibilities as a corporate citizen, Fuji Xerox (Hong Kong) has been at the forefront in creating value for six defined stakeholder groups through our CSR management practices and processes. The below sections summarize our management approaches to build trust and engagement with our stakeholders.

Engagement with Customers

To enhance our customers’ business efficiency and quality, Fuji Xerox (Hong Kong) strives to develop and deliver industry-leading innovative products and services. Fuji Xerox (Hong Kong) is committed to identifying and anticipating customers’ management problems through active communication and engagement, and developing new solutions to tackle these issues. To further support our customers, we upgraded and launched the iESG platform version 2.0 in September 2017. The tool captures ESG data that fulfills both ESG Reporting Guide and GRI Standards, allowing customers to optimize their sustainability performance in a simple and effective manner. By communicating with our customers and providing them with holistic solutions, we endeavor to gain satisfaction and trust of our valued customers.

Engagement with Employees

Fuji Xerox (Hong Kong) considers human resources as one of our most valuable assets. By creating an inspiring environment that fosters innovative ideas, we can enhance our business and benefit both the community and our company. To motivate and empower our employees, we have implemented a wide range of engagement initiatives to improve employee satisfaction, strengthen their sense of belonging, promote diversity and provide personal learning and development opportunities in the hope that our team can reach their full potential, cope with different challenges, and excel personally and professionally.

Engagement with Suppliers

Fuji Xerox (Hong Kong) recognizes the importance of promoting sustainability not only within our operations, but also across our entire supply chain. Apart from requiring our suppliers to comply with all applicable laws and regulations on the environment, ethics, information security and other important issues, we also want to grow with our suppliers and adapt to the ever-changing market needs together. For instance, in response to the Promotion of Recycling and Proper Disposal (Electrical Equipment and Electronic Equipment) (Amendment) Ordinance 2016 effective 1 August 2018, we organized a briefing session for relevant suppliers in Hong Kong on 15 June 2018 to share our arrangement. Meanwhile, we have shared our CSR philosophy and management approach with our suppliers frequently. We succeeded in encouraging a group of suppliers to adopt green and sustainable procurement strategies in line with ours, and have maintained close relationships with our suppliers. Looking forward, we will continue to nurture a green and competitive supply chain that will benefit all parties.

Engagement with Global Environment

Fuji Xerox (Hong Kong) released its first Environmental Protection Policy in 1985 and replaced it with our Sustainability Policy in 2010. Since the adoption of ISO 14001 Environmental Management System in the second half of 2002, we have incorporated sustainability into our core business activities and pursued continuous improvement through our PDCA improvement cycle. We fully support the regional efforts of our parent company in embedding sustainability into all aspects of the product lifecycle, from sourcing of parts and materials, assembly, processing, logistics and end-user power consumption, to product recycling and disposal. We also support the regional 360º of Sustainability^TM initiative, aiming to minimize the negative impacts caused by our operations in Hong Kong. To inspire the next generation, we have regularly collaborated with universities and academic institutions, and organized “Green Tours” for students. We believe that a hands-on experience can ignite their interest in integrating innovative ICT applications into their daily lives, and ultimately help them create a sustainable future for themselves and the generations to come.

Engagement with Local Communities

As a responsible corporate citizen in Hong Kong, we take local social issues to heart and strive to create a better society. Therefore, we serve the communities, particularly those in need, through our strong and caring “Volunteer Network” that utilizes our core competencies. We have initiated and promoted a number of volunteering programs, ranging from environmental conservation, child welfare to cultural preservation. Furthermore, we have been actively seeking opportunities to collaborate with non-governmental organizations (NGOs) and institutions to create greater synergy. While the achievements so far have been encouraging, we understand that more actions are still required to sustain positive changes in the community. Fuji Xerox (Hong Kong) will continue to make the best use of our resources, such as our professionals and ICT technology, to tackle social problems and contribute to the society.

Engagement with Shareholders/Investors

Committed to running an “open, fair and clear” business, Fuji Xerox (Hong Kong) has been serving customers wholeheartedly, keeping abreast of the market changes and embracing new challenges. We strive to work closely with our counterparts in China and to achieve our CSR targets amid the rapidly-changing and unfavorable economic environment. Striving for continuous improvement, we benchmark ourselves against industry pioneers to cement our status as a trusted ICT partner specializing in leading document services and communications. Last but not least, we endeavor to be a key source of revenue of our parent company Fuji Xerox Co., Ltd. and deliver exceptional performance for the shareholders/investors of FUJIFILM Holdings Corporation and Xerox Corporation.