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					Fujifilm

Sustainability Report

2003
The Fujifilm Group is committed to promoting the sustainable development of the earth through concerted efforts that focus on environmental, economic, and social issues.

Table of Contents

Message.................................................................................1

Editorial Guidelines
This report focuses on the efforts of Fuji Photo Film Co., Ltd, (Fujifilm) and the Fujifilm Group to promote sustainable development and the Company’s achievements in fiscal 2002 (from April 1, 2002, to March 31, 2003). Accordingly, Fujifilm renamed its report the Sustainability Report and included environment-, social-, and economic-related information in greater detail. To make this report more readily accessible and easier to understand by as many readers as possible, Fujifilm placed the names and photos of those in charge of product development in the “Design for Environment” section, among other things.

Business Profile of the Fujifilm Group..............................................2 Fujifilm’s Relationship with Society ................................................4 Fujifilm’s Environmental Vision .....................................................6 Green Policy ............................................................................8 Stakeholders’ Opinions..............................................................10 Summary of Fujifilm’s Environmental Achievements in Fiscal 2002 .......................................................12 Fujifilm Sustainability Accounting.................................................14
Environmental Accounting for Fiscal 2002 ..............................................14

Fujifilm Group Sustainability Accounting.........................................16
Consolidated Environmental Accounting For Fiscal 2002.............................16 Social Accounting ...........................................................................16

Fujifilm and Environmental Impact ................................................18 Environmental Management System ..............................................20
Current Status of Acquisition of ISO 14001 Certification..............................21 Environmental Education ..................................................................22 Chemical Management.....................................................................23

Special Feature: The Fujicolor Quicksnap and Inverse Manufacturing Factory .....................................................24 How Design for Environment Works ...............................................26 Environment-friendly Products .....................................................27 Environment-friendly Technologies ...............................................32 Green Procurement and Resource Conservation ................................34 Energy Conservation and Reducing CO2 Emissions .............................35 Reducing Chemical Emissions .....................................................36 Less Emissions into the Air and Water............................................38 Preventing Pollution .................................................................39 Waste Reduction and Zero Emissions.............................................40 Environmental Impact Reduction in Distribution ................................41 Environmental Performance of the Fujifilm Group ..............................42 Relationship with Employees.......................................................44 Relationship with Customers .......................................................46
Product Safety Management ..............................................................46 Organizational Structure and Systems for Customer Support ........................48 Universal Design ............................................................................49

Target readers: Customers, residents living near Fujifilm business sites, clients, shareholders, investors, environmental NGOs and NPOs, rating agencies, research institutes, the media, Fujifilm Group company employees, and all other stakeholders* Organizations covered: Fuji Photo Film Co., Ltd.; domestic and overseas Fujifilm Group companies listed on page 42; and domestic Group companies listed on page 16 under sustainability accounting Areas covered: Environmental, economic, and social areas Period covered: Fiscal 2002 (from April 1, 2002, to March 31, 2003) Consolidated data includes the total for the 2002 calendar year. Also, information on business activities includes those in fiscal 2003. Guidelines observed: Environmental Reporting Guidelines (2000) (Ministry of the Environment) Guidelines referenced: Sustainability Reporting Guidelines 2002 (Global Reporting Initiative [GRI])

Relationship with Suppliers ........................................................50 Communication Activities ...........................................................51
External Evaluation .........................................................................51 Supporting the Eco-Stage ..................................................................51 Dealing with Complaints ...................................................................51

Social Contribution Activities.......................................................52
Promotional Activities of the Fujifilm Greenery Fund .................................52

Independent Assurance Report on Fujifilm Sustainability Report 2003 .....54 History of Fujifilm’s Business Activities ..........................................56 History of Fujifilm’s Environmental Activities ...................................57 Glossary................................................................................58 Site Data ...............................................................................59

*Stakeholders
Stakeholders refer to the people and organizations that have an interest in various aspects of our companies. They include shareholders, customers, clients, employees, local residents, NPOs, and governments.

Message

Message

Fujifilm’s mission is to contribute to society by providing customers with superior products and services that they can rely on and focusing on the continuously evolving Imaging and Information (I&I) technologies, the former being the capturing and recording of images while the latter is the optimizing of images according to use. By organically fusing chemical technologies with cutting-edge information technologies, the Company develops business activities that lead the industry in diverse areas, including digital imaging solutions. Fujifilm’s view on social contribution is based on the basic philosophy it has held since its foundation, i.e., environmental protection is the basis of company management. The Company constantly strives toward environmental friendliness (harmony between people and nature) and chemical safety and has taken various measures and addressed diverse issues. In April 2002, we established the Fujifilm Group Green Policy as part of our new mediumterm environmental strategy. Under the basic policy, we aim to provide products and services and carry out corporate activities that are extremely friendly to the environment, or what we call having high “environmental quality.” Environmental quality is the amount of environmental impact that can be reduced in a product’s design. It is also the amount of effort a company puts into environmental protection while conducting business activities that have less environmental impact throughout the life cycle of the company’s products. By improving environmental quality at such stages as product design, production, and marketing, Fujifilm hopes to grow as a company while contributing to the sustainable development of the earth. At the end of fiscal 2002, we added “the improvement of eco-efficiency” (balancing economic and environmental aspects) to our Green Policy. By fiscal 2010, we plan to double the eco-efficiency we achieved in fiscal 2000 by reducing six kinds of environmental impact caused by our business activities and increasing revenue to show an improvement in economic performance. We are deeply committed to fulfilling our social responsibilities through the attainment of these goals. One of Fujifilm’s most important achievements in fiscal 2002 was the establishment of a framework for its Design for Environment, which is followed by the entire Fujifilm Group. Prior to its full-scale launch in April 2003, the Design for Environment was carried out on a trial basis. A few of the Company’s products that were a part of the trial run included the FinePix F410, the first digital camera to acquire a Type III Eco-Label in Japan. Other examples of Fujifilm’s environment-friendly products are the QuickSnap Night & Day; the Princiao Qn, a Printpix digital printing

system; and the Frontier 340E, a digital minilab. Fujifilm took further measures to reduce its environmental impact by decreasing volatile organic compound (VOC) emissions as well as the amount of paper packaging materials used in containers. Despite the encouraging results of the Company’s efforts, the amount of CO2 emissions and generated waste still rose due to increased production as a whole and the higher number of improved prototypes. Some countermeasures are already implemented, such as the use of a fuel substitute. Fujifilm further strives to draw up and carry out even more significant measures to improve its eco-efficiency. In addition to its environment-related efforts, Fujifilm reviewed its Employee Code of Conduct and published an update in April 2003. The Company gained a lot of trust in Japan and the rest of the world for its strict corporate ethics and fair business practice. Fujifilm considers the nurturing of a vigorous, sincere, and diligent corporate culture as indispensable for its survival and development. Moreover, the Company strives to enhance corporate transparency by disclosing information on social issues, such as its relationship with partners, personnel affairs, employment, and employee health and safety. To this end, Fujifilm changed the name of its report from the Environmental Report to the Sustainability Report and adding more detailed information. Fujifilm considers this Sustainability Report as a first step in reporting its efforts to attain sustainable development to all stakeholders. We appreciate any comment and/or request that you may have. August 2003

Message

Minoru Ohnishi, Chairman

Shigetaka Komori, President and CEO

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Company profile

Business Profile of the Fujifilm Group

Fuji Photo Film Co., Ltd. January 20, 1934 Nakanuma 210, Minami Ashigara-shi, Kanagawa Prefecture Tokyo Head Office 2-26-30 Nishiazabu, Minato-ku, Tokyo Capital ¥40.363 billion (as of March 31, 2003) Number of Employees 72,633 (Group) (as of March 31, 2003) 9,392 (parent only) Revenue ¥2,505.7 billion (Group) (for the fiscal year ended March 31, 2003)
Japan The Americas Europe Asia and others Total (Group) Fiscal 2001 ¥1,355.2 billion ¥517.1 billion ¥282.8 billion ¥246 billion ¥2,401.1 billion Fiscal 2002 ¥1,330.1 billion ¥562.8 billion ¥333.7 billion ¥279.1 billion ¥2,505.7 billion

Name Establishment Head Office

the cancellation of employee pension funds at Fujifilm and some of its affiliated companies. Excluding the cancelled funds, however, operating profit was ¥183.3 billion, up 8.7%. Pretax profit for the year totaled ¥120.5 billion a 24.5% decrease from that in the previous year. while net profit was ¥48.5 billion, a 40.3% decrease from that in the previous year.
¥100 million

¥100 million

Breakdown of Consolidated Sales
9,504 9,312 Imaging solutions Information solutions Document solutions 7,243 6,400 6,853

■Breakdown of Consolidated Sales (for the Fiscal Year Ended March 31, 2003)
Business Profile of the Fujifilm Group

25,000

Document Solutions
Office copiers Printers Fax machines Consumables, etc. (for document services)

Imaging Solutions
Color film Cameras Digital cameras Photo finishing equipment Color printing paper, chemicals, etc. (for developing and printing)

20,000

15,000

Revenue
24,011 25,057 Parent only Group 10,000 7,433 5,000 7,846 8,310

25,000

20,000

38% ¥950.4
billion
Fiscal year ended March 31, 2001 Fiscal year ended March 31, 2002 Fiscal year ended March 31, 2003

33% ¥831.0
billion

15,000

0 13,833

¥795.4 billion (parent only) (for the fiscal year ended March 31, 2003) Net Income ¥48.5 billion (Group) ¥44.4 billion (parent only) (for the fiscal year ended March 31, 2003) Consolidated Subsidiaries 179 (as of March 31, 2003) Nonconsolidated Subsidiaries to Which the Equity Method Is Applied 55 Affiliated Companies to Which the Equity Method Is Applied 59

10,000

8,491

8,477

7,954

5,000

Imaging Solutions Segment
• In its capacity as an official sponsor of the 2002 FIFA World Cup Korea/Japan™, Fujifilm helped manage the event and improved its brand image by conducting promotional campaigns that were seen globally. • Color film: The FUJICOLOR SUPERIA Venus line, a highly sensitive film with a fine-grain structure that utilizes new technology, was launched. • Single-use cameras: The overseas shipment of the Fujicolor QuickSnap exceeded a total of 1 billion units since the product’s launch. • Instant cameras: The domestic shipment of the Fuji Instax Mini 10, which takes high-grade card-size photos, exceeded 3 million units. • Digital cameras: Sales increased in North America and Europe. In Japan, the FinePix F401, a new product equipped with Super CCD Honeycom III, sold especially well. • Photo finishing equipment: Sales of the Frontier line, a digital minilab, increased. • Printpix digital printing system: Sales of the Princiao self-service imaging kiosk increased along with the launch of new models that enable the printing of photos taken by cell phones with built-in cameras. • An extensive promotional campaign called Rising Operation was conducted to stimulate demand for printing photos from digital cameras or the Internet. • Fujifilm acquired the shares of Jusphoto Co., Ltd., and established it as a consolidated subsidiary company.

29% ¥724.3
billion

0

Fiscal year ended March 31, 2001

Fiscal year ended March 31, 2002

Fiscal year ended March 31, 2003

Information Solutions
System components for use in printing, medical diagnosis, and information systems Materials for liquid-crystal displays Recording media, etc.

Performance Summary of Fiscal 2002
As of the end of March 2003, the Japanese economy remained sluggish with no prospect of recovering. Looking overseas, the U.S. market was quite stable in the first half of the year but deteriorated in the second half and ended with an even bleaker outlook. The European economy’s recovery slid in the second half of the year. In other Asian countries, the Chinese market remained stable while those of other countries were just beginning to show signs of recovery. With this background, Fujifilm strove to develop its business in imaging solutions, information solutions, and document solutions as well as total solutions that make use of digital networking technologies. Specific examples are as follows: • It launched digital cameras equipped with the latest technology. • It started supplying CCDs and lenses for cameras built into cell phones. • It extensively marketed Frontier, a digital minilab. • It implemented an all-out campaign to increase the printing demand for digital cameras. • It established an integrated manufacturing and marketing system for standard film cameras. Consolidated revenue volume for the year under review rose 4.4% from that in the previous fiscal year, to ¥2,505.7 billion, due to the increased sales of digital cameras and other products that use digital technology. Domestic revenue slipped 1.9%, to ¥1,330.1 billion, and overseas revenue increased 12.4%, to ¥1,175.6 billion. Operating profit for the year stood at ¥160.2 billion, down 5.0%, after subtracting a ¥23.1 billion loss due to
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Strengthening the Structure of Operations
To create a more efficient management that has direct access to the market, Fujifilm streamlined its corporate structure as follows: • It merged its marketing function with Fuji Photo Optical Co., Ltd., and established an integrated manufacturing/marketing system for standard film cameras. • It merged its marketing divisions with Process Shizai Co., Ltd., One of Japan’s largest distributors for the graphic arts industry, and formed a new consolidated subsidiary, FUJIFILM Graphic Systems Co., Ltd. • It consolidated Fujifilm Logistics Co., Ltd., and Fuji Xerox Distribution Co., Ltd., to strengthen and streamline its distribution system.

• Industrial materials: Materials used in manufacturing liquidcrystal displays, such as Wide View (WV) Film and FUJITAC, sold well. • Recording media: Sales of the LTO Ultrium 1, a high-density, high-capacity data cartridge, increased. The Super DLTtape™ I and LTO Ultrium 2 were launched.
Notes: 1. LTO and Ultrium are the registered trademarks of Hewlett-Packard Company, IBM Corporation, and Certance LLC in the United States and other countries. 2. Super DLTtape™ is a registered trademark of Quantum Corp. in the United States. 3. Image Intelligence™ is a registered trademark of Fuji Photo Film Co., Ltd.

Document Solutions Segment
• Copiers: Fujifilm’s line of multifunctional digital color copiers was reinforced with the launch of the DocuCentre Color 240CP and DocuCentre Color 400CP/320CP. • The Company launched the above products in the Asia-Pacific region and began exporting them to Europe and the United States. • The Company launched a service that offers the high-quality, secured printing of preregistered stored electronic documents, an industry first, making use of the network printing function of multifunctional digital color copiers installed at all 7-Eleven stores. • Information equipment: The DocuPrint 360/260, a compact, low-priced laser printer for A3-size paper, sold well. The DocuPrint C3530, which can print 35 sheets a minute in either black and white or color using a microtandem laser engine, was launched. • In fiscal 2001, Fujifilm acquired NEC Corporation’s laser printer business and began full-scale operations. In addition, the Company subsequently acquired Fujitsu Limited’s system printer business and launched the first ultrahigh-speed printer for continuous-form paper.
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Number of Employees
Parent only People 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 As of the end of March 2001 As of the end of March 2002 As of the end of March 2003 9,646 9,471 9,392 70,722 72,569 72,633 Group

Information Solutions Segment
• Printing systems: Establishing Enovation Graphic Systems, Inc., a U.S. sales company, as a consolidated subsidiary company the previous year increased revenue. • Information systems: The explosive popularity of digital cameras expanded the inkjet paper market. The Kassai line in particular was a big seller. • Fujifilm acquired additional shares of Process Shizai Co., Ltd., and established it as a consolidated subsidiary company under the name Fujifilm Graphic Systems Co., Ltd. • Medical diagnostic products: The FCR XG-1 compact digital X-ray image diagnostic system had impressive sales, as did the DRYPIX 7000 dry laser imager using Image Intelligence™ hyperquality digital image processing software and the SYNAPSE medical image information system.

Social Responsibility

Fujifilm’s Relationship with Society

Corporate Philosophy

We pursue superior technologies and strive to create an I&I-oriented culture.

Promoting Compliance* and Aiming to be a Company That Society Needs
Fujifilm encourages every one of its employees to have a higher standard of ethics and common wisdom. In line with this, the Company established the Corporate Ethics Committee in 1999 and created the Fujifilm Charter for Good Corporate Behavior and the Employee Code of Conduct. In June 2002, to deal with society’s growing demand for compliance, Fujifilm established the Compliance Office in its Legal Division to exclusively promote Companywide activities and renamed the Corporate Ethics Committee the Compliance Committee. The Compliance Office was created to uncover and solve the smaller problems of the Company and prevent misconduct. Fujifilm has manufactured and sold photo film for a long time. The Company is able to sell film only if it has the customer’s trust. Therefore, compliance must be in line with the public’s expectations in order to foster a culture that supports integral management. In April 2003, the Employee Code of Conduct was revised. (See right.) Clarifying the function of its Compliance Consultation Office so that employees (including temps) can use it at any time, Fujifilm strives to promote employee awareness of compliance throughout the Company. An area on the Company’s intranet was created to promote employee awareness of compliance and provide various information. Fujifilm continues its efforts to further improve its compliance system and gain a deeper trust from all stakeholders, especially customers.
■Organization
Corporate Vice President in Charge of Legal Compliance Promotion

Summary of the Employee Code of Conduct
1) Compliance with Employee Regulations Respect for and pursuit of basic business policy and basic policy for business sites, compliance with working regulation, development of a healthy work environment, preservation of confidentiality, coping with a sophisticated information society, appropriate expenses, fair and rational purchasing activities, document management, asset management, strict chemical control, compliance with approval procedures, prohibition of outside work, receipt of economic benefits from clients, rules concerning entertainment and gifts, deals that conflict with company interests 2) Fair Corporate Activities That Are Useful to Society Customer friendliness, environmental protection, product safety, appropriate relationship with clients, disclosing information to the public, fair and appropriate advertising and public relations activities, social contribution activities 3) Compliance with Laws Promotion of fair marketing activities, promotion of legal and fair purchasing activities, prohibition of insider trading, compliance with import- and export-related laws and ordinances, protection of intellectual property rights, protection of personal information, prohibition of making illegal profit for shareholders, etc., prohibition of giving illegal gifts (i.e., bribery) to civil servants, etc. 4) Ethics of a Corporate Citizen Respect of human rights and prohibition of sexual harassment, maintenance of corporate honor and trust, participation in political or religious activities in the Company

Fujifilm’s Relationship with Society

Green Trust
People buy our film, trusting that its quality will be as if it were delivered the day before. In a sense, they are buying trust when they buy our film. Fujifilm fulfills its social responsibility by keeping in mind that the customer’s trust in the Company’s name is part of the package.

Basic View of Corporate Governance*
As business develops worldwide, it becomes increasingly important to promote a more efficient, accurate, and timely management system of the Fujifilm Group. Fujifilm’s answer to this was the introduction of a corporate vice president system in 1998. At the top of the Company’s hierarchy is the Board of Directors, which makes decisions on the basic policy as well as monitors decisions concerning the basic managerial policy and strategies and business administration. Next in line are the corporate vice presidents, who are selected by the Board of Directors and assigned by the president and help support business administration. In 2002, to clarify the mission and responsibility of the directors, their term of office was reduced from two years to one. The Board of Corporate Auditors, which consists of four corporate auditors and three external auditors, was established as a monitoring body.
Board of Directors Board of Corporate Auditors

President Management Committee Corporate Vice Presidents

Charter for Good Corporate Behavior/ Employee Code of Conduct

*Compliance
“Compliance” generally refers to compliance with laws and regulations, but here it means the avoidance of any action that disrupts social order or is viewed by the general public as being in violation of corporate and management ethics.

We shall continue our efforts to reform our management structure in terms of corporate governance and clarify managerial strategies and streamline the business administration.

Compliance Committee
President (Committee Chairman) Vice Presidents
(1) Activities to introduce the Charter for Good Corporate Behavior and Employee Code of Conduct
The committee distributes brochures that explain the Charter of Conduct and Employee Code of Conduct. Also, the committee provides information and holds workshops on enhancing corporate ethics.

Compliance Office, Legal Division
General Manager Secretariat (General Manager of the Compliance Office, Legal Division)

(2) Follow-up publicity activities on the Employee Code of Conduct
After receiving a report on the level of understanding in each division on the Employee Code of Conduct, the committee follows up on areas that need improvement.

*Corporate Governance
Corporate governance aims at establishing a system that promotes efficient and sound business management.

Compliance Consultation Office Corporate Ethics Group Export Management Group

(3) Response to noncompliance with the Employee Code of Conduct
The committee conducts surveys and receives information on noncompliance and inappropriate conduct. It then makes recommendations on disciplinary action when serious incidences of noncompliance is uncovered.

Disclosing Information to the Public
The more corporate activities affect society, the more society becomes interested in corporate activities and the more it demands the company to disclose information better. Fujifilm discloses accurate information on its corporate activities in a timely fashion to all stakeholders through the media or other channels in addition to following information disclosure practices pursuant to laws and ordinances.

•Securities report

•Manual

•Fujifilm News

•Brochure

•Sustainability report

•Annual report

•Press release

•Green Letter, a publication issued by the Fujifilm Green Fund

•Web site home.fujifilm.com

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Vision

Fujifilm’s Environmental Vision

Fujifilm’s Pursuit of Trust
Since its foundation, Fujifilm has pursued customer satisfaction by improving product quality as a part of its corporate activities. Our raison d’etre is to establish customer trust that is earned by providing superior, reliable products, because photo film, our staple product, can never be used twice. Because the film manufacturing process depends on nature for such things as clean water and silver, which is rare, Fujifilm focuses on environmental conservation and protection, which is the basis of its corporate activities. Because it uses a large number of chemicals, Fujifilm became a member of the Japan Responsible Care Council (JRCC) when the council was founded in 1995. The establishment of JRCC was led by the Japan Chemical Industry Association (JCIA). Accordingly, Fujifilm voluntarily pays special attention to environmental protection, safety, and healthcare at all stages of the process, from chemical development, manufacturing, distribution, and use to final consumption and discharge. Furthermore, Fujifilm discloses the results of these activities and makes earnest efforts to follow responsible care by holding discussions and otherwise communicating with the public. Fujifilm would like to further fulfill its responsibility as a corporate citizen* based on the trust of its stakeholders. In fiscal 2002, we used these principles as a base to formulate the Fujifilm Group Green Policy as a part of our new medium-term environmental strategy. By taking effective, innovative measures to deal with environmental issues, the Fujifilm Group is able to provide high environmental quality in its corporate culture, products, and services and contribute to sustainable development. We provide the following environment-friendly aspects in all of our corporate activities: • Environment-friendly marketing activities • Environment-friendly research and development • Environment-friendly technological applications • Environment-friendly raw material procurement (Green Procurement**) • Environment-friendly design • Environment-friendly production lines • Launch of environmentfriendly products • Green Purchasing** and any other environmentfriendly efforts in all business fields

Pursuing New Social Responsibilities
Fujifilm’s Environmental Vision

Marketing Research and development

Fujifilm Group

Design/ Production line Market development

Environment Friendly
Workplace Technology Procurement of materials (Green Procurement)

Achievement of Environmental Product Quality
Global environment Society Economic activities

Fujifilm has pursued social responsibility, which the Company sees as responding to consumer trust, since its foundation. In an era of global environmental concerns, Fujifilm strives to improve its environmental quality by being more environment conscious. The Company discloses information on its environmental efforts to the public at any and all opportunities, earnestly fulfilling its accountability obligations. To deal with the needs of the times, corporate entities have to establish a management foundation that embodies sustainable economic activities. Fujifilm has grown much since its foundation and needs to start fulfilling its social responsibilities in other areas. To do this, the Company is continuing its earnest, innovative efforts that address environmental, economic, and social issues.

Toward a Sustainable Development

Fujifilm’s Sustainable Development
Fujifilm continues its efforts to earn the customer’s trust based on the following three principles for higher environmental quality. 1) Triple Bottom Line Comprehensively consider environmental (global environmental protection), economic (corporate growth and development), and social (social responsibility as a corporate entity) issues. 2) Eco-efficiency Eco-efficiency = Revenue Environmental impact value

Compliance

Trust
Disclosure

Corporate governance

Accountability

Improve eco-efficiency by increasing revenue while decreasing environmental impact. 3) Life Cycle Thinking Take environmental protection over a product’s entire life cycle into consideration.

*Corporate Citizen
A corporate citizen is a corporate entity that is regarded as a part of society and, in addition to conducting normal business activities, earnestly contributes to that society in a variety of areas, including local communities, environment, education, and culture.

**Green Purchasing/Green Procurement
When products and services are purchased and procured, priority is given to the reduction of impact on the environment to the lowest level possible in addition to such considerations as need, price, and quality. Green Purchasing encompasses office consumables, office materials, and products for everyday living while Green Procurement includes raw materials and items used in production.

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Green Policy

Green Policy

Efforts to Put Green Policy into Practice
We shall apply Design for Environment to all our new products in order to further improve environmental quality.
Nobuaki Miyasaka
Corporate Vice President for Environmental Protection & Products Safety

Green Policy

What does environmental quality mean to Fujifilm?
Environmental quality means the environmental quality of the Company and the environmental quality of its products taken as a whole. The environmental quality of a product is determined by how much of the Design for Environment is achieved. To improve this aspect of environmental quality, we need to pay careful attention to environmental concerns over the entire life cycle of a product, from development and final consumption to discharge.

The environmental quality of Fujifilm is determined by how the Company deals with environmental protection measures. To improve environmental quality, an environmental management system needs to function correctly. Furthermore, information on improvements that were made in environmental quality needs to be appropriately disclosed to stakeholders and communication with them promoted. The Fujifilm Group strives to achieve high environmental quality in its products, services, and corporate activities, providing customer satisfaction and contributing to sustainable development.

sored by Nihon Keizai Shimbun Inc. Fujifilm set environmental quality targets in the planning and development stages of many of its other products as well. Accordingly, the entire life cycle of each product is taken into consideration as is the possibility of making it reusable and/or recyclable before beginning production, which includes energysaving production. In April 2002, the basic rules for Design for Environment were created after reviewing the design framework commonly applied to all Fujifilm products.

atmosphere, the amount of container packaging material used, the amount of waste generated, and the amount of input in water. Fujifilm set its fiscal 2010 target by doubling fiscal 2000’s ecoefficiency. The Company hopes to reach this target by reducing all six kinds of environmental impact. Although this is a rather difficult goal to achieve, we have no doubt we will succeed.

How are you going about acquiring ISO 14001?
The Fujifilm Group’s ISO 14001-focused management is striving to acquire certification through Groupwide efforts to deal with environmental concerns. Administration, marketing, and manufacturing divisions are all encouraged to acquire ISO 14001. Therefore, the Group is establishing a comprehensive management system that covers product planning, manufacturing, and marketing. We are planning to acquire ISO 14001 at our Head Office and domestic Group companies by the end of fiscal 2003 and at overseas Group production companies by the end of fiscal 2004.

What distinctive features are used to promote the Green Policy?
At the end of fiscal 2002, the Fujifilm Group set ecoefficiency as an indicator to promote the Green Policy throughout the Group. Eco-efficiency is calculated by dividing consolidated revenue by environmental impact. There are six kinds of environmental impact: Greenhouse gas emissions, the amount of input in natural resources, VOC (Volatile organic compounds) emissions into the

What are environment-friendly products?
The most typical example is the Fujicolor QuickSnap single-use camera. The Fujicolor QuickSnap was designed to be recycled and reused. The recycled production system used for the product received a lot of recognition and, as one example, was given the Superior Trendsetting Factories and Offices Special Award spon-

The Fujifilm Group Green Policy
Instituted on April 1, 2002 Revised on April 1, 2003 FRC Committee

Priorities for Implementation and Targets
A) Improve Eco-Efficiency
For each of the six kinds of environmental impact listed under a) through f) below, we plan to double fiscal 2000's Eco-efficiency by fiscal 2010: Revenue Eco-efficiency = Environmental impact value a) Greenhouse gas emissions b) Amount of input in natural resources c) VOC (Volatile organic compounds) emissions into the atmosphere d) Amount of container packaging material used e) Amount of waste generated f) Amount of input in water

D) Reduce Environmental Loads and Prevent Pollution
CO2 Reduction
Compared to fiscal 1990, reduce more than 9% by the end of fiscal 2010. Domestic Fujifilm group's target is 6%. Different targets will be set for overseas sites.

For domestic subsidiaries, achieve 100% in the same product groups by the end of fiscal 2004.

Basic Policy
“Sustainable development” is the most significant challenge facing businesses and society as a whole in the 21st century. The worldwide Fujifilm group companies aim to lead the business world by taking firm and proactive measures to address all necessary environmental, economic, and social issues. By providing products, services, and corporate activities that embody high environmental quality, we enhance customer satisfaction and contribute to sustainable development worldwide.

Green Procurement
Continue to research vendors' environmental awareness and product friendliness in order to determine selection criteria. For DfE, research on "greenness" of procured materials. Also, develop methodologies to test greenness of procured materials.

to attain this certification. The group will tackle environmental issues as a whole, based on management conforming to ISO 14001.

I) Education of Employees
Establish an environmental education system using the network and educate all employees by the end of fiscal 2002. Domestic subsidiaries will implement this system by the end of fiscal 2004. Different targets will be set for overseas sites.

VOC Reduction
Compared to fiscal 2000, reduce by 50% by fiscal 2004. Different targets will be set for subsidiary companies.

Environmental Monitoring
Check soil, groundwater and VOC at a regular basis.

G) Information Disclosure
Improve the environmental report. Issue site reports at Asaka Technology Development Center and Miyanodai Technology Development Center in fiscal 2002 in addition to four domestic sites that have already started issuance. For domestic and overseas manufacturing subsidiaries, prepare to be able to start information disclosure by the end of fiscal 2004.

Action Guidelines
A) Promote reduction of environmental impact and ensure safety by: a) Implementation through corporate activities and operations; b) Implementation throughout life cycle of products; and, c) Consideration of economical and social effects. B) Enhance the quality of chemical substance control to lower the risks. C) Comply with laws and regulations as well as respective voluntary regulations, standards and requirements agreed upon by each group company. D) Strengthen partnerships with partner companies and cooperation with regulatory agencies and industrial organizations, and proactively participate in local community activities. E) Maintain good communication with outside parties such as local communities and regulatory agencies by proactively reporting the status and progress in achieving environmental goals. F) Strengthen the foundations of employee environmental awareness, through education, in order to address environmental challenges.

B) Design for Environment
Implement Design for Environment (DfE) by the end of fiscal 2002, and apply to all new products and product modification from fiscal 2003. Implement at both domestic and overseas subsidiaries progressively.

Leakage from Pipelines, Pits, and Tanks
Prioritize preventive measures such as putting them on the ground level, double-layer and early detection. Include such measures in the medium term plans for implementation.

Recycle
Waste products are not disposed of (neither incinerated nor taken to landfill sites) but are reused as resources. Material recycling involves reusing materials in their original form. Chemical recycling involves the return of plastics back to their original form through liquefaction, and thermal recycling involves using waste as fuels.

C) Reduce Waste Disposal toward Achievement of Zero Emissions
Waste Disposal
Compared to fiscal 2000, reduce by 1% by the end of fiscal 2004 and by 5% by the end of fiscal 2010. Different targets will be set for overseas sites.

E) Enhance the Quality of Chemical Substance Control
Comply with the European RoHS directive (Restriction of the use of certain Hazardous Substances in electrical and electronic equipment). Consider suspending the use of vinyl chloride. Control substances considered having endocrine effects. Expand the scope of chemical substance control system.

H) Establishment of ISO 14001 Management System and Continual Improvement
Business divisions, sales divisions, and other related divisions at Fuji Photo Film headquarters will attain ISO 14001 certification by the end of fiscal 2003. Other divisions will attain this certification by the end of fiscal 2004. All domestic group companies will attain ISO 14001 certification by the end of fiscal 2003. All overseas manufacturing group companies will attain this certification by the end of fiscal 2004. Other overseas group companies will proceed individually

Reuse
Through the reuse of materials, the generation of waste is reduced and the conservation of resources is achieved.

Endocrine
A term referring to secretions and hormones produced by an endocrine gland. Chemical substances that alter the endocrine system in a human or animal and lead to harmful effects in its body or in its offspring are called “endocrinedisrupting hormones” (or “environmental hormones”). It is suspected that some chemical substances have this effect, and these chemicals are referred to by Fujifilm as suspected endocrine-affecting substances.

Zero Emissions
Achieve by the end of fiscal 2002. For domestic subsidiaries, achieve by the end of fiscal 2003. Different targets will be set for overseas sites.

F) Green Purchasing and Procurement
Green Purchasing
Achieve 100% in 5 product groups by the end of fiscal 2003.

8

9

Stake Holder Meeting

Stakeholders’ Opinions
Stakeholders from various areas sent in their comments on Fujifilm Environmental Report 2002 Edition as well as their requests and proposals.

After the Meeting
As a part of its communication activities, Fujifilm met with its readers to ask them what they thought about Fujifilm Environmental Report 2002 Edition. By carrying out such activities, the Company will be able to improve mutual understanding through discussions, not only one-way information disclosure, and make use of the information gained for future business activities and reports.
Fujifilm gave readers an opportunity for the first time to comment on Fujifilm Environmental Report 2002 Edition. We were pleased to discover that the comments given pointed out things that were easy for us to overlook and that many gave us food for thought. Although our first priority has always been to create a report that is easy to understand, the comments that we received made us painfully aware of fact that further improvements are sorely needed. It may be difficult for us to clearly describe the technical aspects of what we do due to the limited amount of space with which we have to work. However, this problem should be eliminated with the use of more charts and illustrations as well as interviews with those in charge of research and development and other means of identifying those involved with products and technologies. Such improvements are reflected in this issue. Although information disclosure is important, we recognized the importance of communicating with our stakeholders. The timely response to questions and requests is the foundation of trust, and we hope our opportunities to do so continue. Comments on Last Year’s Report and Our Response
Comment Response
On each page in the “Design for Environment” section, those in charge of development are shown. In addition to the glossary at the end of the report, a definition of terms can be found on the same page the terms appear. A larger font is used in this year’s report than in last year’s. The evolution of the Fujicolor QuickSnap—the epitome of environmental friendliness—as well as the Fujicolor QuickSnap Inverse Manufacturing Factory are introduced. Stakeholders’ Opinions

What did you think about Fujifilm Environmental Report 2002 Edition ?
Ms. Sakai: As a whole, I would have liked to have seen more information on the people who took part in the projects.1 Readers would be more interested in what we had to say if they knew how hard the people in charge of design had to struggle before reaching their goals. Because the report is published annually, it would be better if it pointed out what improvements were made from the previous year. Mr. Kishikawa: (concerning the Design for Environment section) It would be easier to understand if comments on the environmental missions that Fujifilm needs to undertake and the foundation for development that was based on such missions were given before describing individual products. Mr. Nakamura: As I am not familiar with environmental reports, I found them difficult to read. It would be easier to understand if footnotes and sidebars were used instead of a glossary at the end of the report.2 Mr. Kanbe: The explanations given on the various technologies were too difficult to understand. I think a more reader-friendly style of writing would be better. Mr. Yago: I think a more visual-oriented design is recommended. It is a good report, so it does not deserve the criticism it received for having small fonts, which readers claimed made it hard to read.3 Mr. Sanada: It should be more necessary to take the view of consumers and general readers into consideration.

wants only a summary and the reader who wants more details. Mr. Kishikawa: You hear the word “accountability” a lot these days. However, it is more important to give the reader an honest message than to merely fulfill your accountability obligations. Even the numbers given in the report should convey some kind of message or have some sort of meaning. Eventually, through trial and error, the reader will come to understand how hard the Company has worked.

In addition to social concerns, what other important topics are to be covered in the future?
Mr. Yago: Because I deal with water resources, I am interested in the total amount of water consumed. I am particularly interested in the Ashigara Factory, which is a chemical facility, because it is important for the local community to understand the information given on the quality of the soil and water. I would like you to continue disclosing relevant information in the environmental report. Mr. Kanbe: I would like to continue disclosing information on the discharge of waste. For instance, the Ashigara Factory will switch to natural gas in the future, and we are very pleased with this decision. I would like to see the details regarding this as well as the factory’s relationship with the local community. Mr. Okawa: The Odawara Factory occupies most of Isaida District 1 in our community, and local residents are greatly interested in environmental issues related to Fujifilm’s business activities. I would like to see the details of the factory’s relationship with the local community as well as its environmental performance. Mr. Kishikawa: What I would like to know concerns cor-

porate ethics, compliance with laws, rules for employment, stress management, etc. As for risk management, it would be better to have a message about the future as well as chemical management.

1. The report should focus more on people. 2. Glossary

What do you expect from Fujifilm in the future?
Ms. Sakai: Because I visited the factory today, I now know how Fujifilm pays sincere attention to stakeholders everyday. I expect Fujifilm to continue launching products that deserve the Company’s devotion to and history of environmental protection. Mr. Okawa: I am sure that we established a good relationship with Fujifilm in terms of mutual survival and prosperity. Because environmental protection requires money, I would like Fujifilm to grow even more as a corporate entity. Mr. Kishikawa: This is my second visit to the Ashigara Factory, and I am pleased to note that its overall appearance is cleaner than it was on my last visit two years ago. As a leading company in the industry, its efforts toward environmental protection is just as timely and careful as its efforts toward its business activities. I hope Fujifilm will continue such efforts.

3. Font size

4. Familiar products should be covered in more detail.

An actual page of this report, on which participants commented, is shown in midproduction. Turn to pages 26 and 27 to see the changes that were made.

What kind of environmental report would you want to read?
Mr. Nakamura: I would be interested in a report that had a special feature on products that are popular among general consumers.4 I think this would satisfy both the reader who

Tadahiko Izushi
Editor Environmental Protection & Products Safety Division

Koichiro Kishikawa
Executive, Institute of Enterity Director, Japan Environmental Managers and Auditors Society

Kayoko Sakai
Editor of Sompo Japan’s sustainability report, Environment & Social Relations Div. Sompo Japan Insurance Inc.

Sei Sanada
The Japan Federation of Printing Industries

Masao Yago
Environmental Water Resources Policy Division, Minamiashigara City Hall

Eiichi Kanbe
Environmental Conservation Division, Minamiashigara City Hall

Kazusige Okawa
Isaida 1 Residents’ Association, Odawara City

Yukihiro Nakamura
Faculty of Economics, Keio University (Participated as a consumer)

Date: April 23, 2003 Place: Meeting room at Ashigara Factory Fuji Photo Film Co., Ltd. Participants from Fujifilm: Kimitaka Kameoka, General Manager, Environmental Protection & Products Safety Division Kazuyoshi Yamate, Senior Operations Manager, Environmental Protection & Products Safety Division Tadahiko Izushi, Environmental Protection & Product Safety Division

10

11

Report Digest

Summary of Fujifilm’s Environmental Achievements in Fiscal 2002
The achievements of the Fujifilm Group are written in green and those of Fujifilm alone in blue. Refer to the pages indicated for details.

Self-rating:

Progress more than satisfactory Will make efforts in fiscal 2003

Progress satisfactory

Progress moderate

Will make more effort in fiscal 2003

Establishing an Eco-efficiency Indicator

Stricter Chemical Management

Energy Consumption

Waste
Summary of Fujifilm’s Environmental Achievements in Fiscal 2002

Planning to double fiscal 2000’s ecoefficiency by fiscal 2010 by reducing six kinds of environmental impact
Eco-efficiency is calculated by dividing sales by environmental impact, of which there are six kinds, including CO2 emissions and generated waste. Fujifilm has set a rather challenging target of doubling fiscal 2000’s eco-efficiency by fiscal 2010 by reducing all six kinds of environmental impact.

Strengthening the environmental and safety management system
A comprehensive Groupwide management system was established pursuant to the revised Basic Provisions for the Environmental and Safety Management of Chemical Substances at all stages, from the purchase of raw materials, research and development, and manufacturing to distribution, use, and discharge.

Up 4.8% from the previous year
Energy consumption increased from that in the previous year due to increased production and the manufacturing of more prototypes. In fiscal 2003, Fujifilm will strive to reduce its consumption by introducing a cogeneration* facility in the Odawara Factory.

Up 5.5% from the previous year
Fujifilm generated more waste this year than the previous year due to increased production and the manufacturing of more prototypes. In fiscal 2003, the Company will draw up and implement more effective measures through an earnest sharing of ideas among business sites.

(See page 35.)

(See page 40.)

(See page 8.)

(See page 23.)

CO2 Emissions Improved Communication

External Reputation

Opportunity to hear from and share views with readers of our report
Rather than merely send information on the Sustainable Report, Fujifilm took the opportunity to ask people outside the Company for their opinion on its report so that it may improve its corporate activities and the content of its reports.

Design for Environment

Up 3.8 % from the previous year
CO2 emissions increased from that in the previous year due to increased production and the manufacturing of more prototypes. The Company will reduce emissions by the end of fiscal 2003 by switching from heavy oil to natural gas at the Fujinomiya Factory and Odawara Factory, both of which began operations following large-scale capital investments.

Establishing Basic Rules for Design for Environment
Basic Rules for Design for Environment were established to stipulate how to implement and evaluate the Design for Environment to improve the environmental quality of products and services. As a result, we were the first to acquire Type III Eco-Label in Japan for digital cameras, among other achievements.

Chosen for socially responsible investment (SRI)**: Of 703 manufacturers, Fujifilm was ranked 10th in the 6th Corporate Environmental Management Survey (Manufacturers division).
The Company was recognized for its achievements in environmental, economic, and social issues and was incorporated in several SRI funds.

(See page 10.)

(See page 35.)

Establishing Sustainability Accounting

(See page 26.)

(See page 51.)

Calculating consolidated and nonconsolidated environmental accounting and social accounting
In addition to sustainability accounting and environmental accounting, costs involving the Company’s relationship with employees, customers, and local residents as well as social contributions to social accounting items were aggregated. Breakdown of Nonconsolidated Environmental Accounting: Environment-related expenses ¥35.9 billion (¥31.1 billion in the previous year) Capital investment ¥11.4 billion (¥10.8 billion in the previous year) Benefits to Fujifilm ¥31.3 billion (¥28.7 billion in the previous year)

VOC Emissions in Air Promoting Green Procurement

Cutting fiscal 1996 emissions 58%
Fujifilm has set its VOC emissions reduction target to 50% that in fiscal 1996. As a result of enthusiastic efforts, the Company significantly exceeded this target.

Promoting Information Disclosure

Achieving 94% Green Procurement
By conducting research on vendors’ environmental awareness and product friendliness in order to determine selection criteria, Fujifilm achieved 94% Green Procurement, exceeding its target of 90%. Another survey was conducted on products subject to Green Procurement.

(See page 36.)

Kankyo-goo TV covers Fujifilm’s efforts toward environmental protection.
Kankyo-goo TV, a part of Kankyo-goo, a portal site for environmental information, Webcast a story about the Fujifilm Greenery Fund and its efforts to prevent global warming.

(See page 34.)

(See pages 35 and 52.)

(See pages 14–17.)

Zero Emissions Promoting Green Purchasing

Additional Acquisition of ISO 14001

Certification acquired at 94 sites worldwide (24 more than in the previous year)
Earnest efforts are underway to acquire ISO 14001 at Fujifilm marketing divisions as well as overseas and domestic Group companies.

Achieving 99% for Green Purchasing
The Company achieved 99% Green Purchasing, exceeding its target of 90% by including Green Purchasing in its purpose and targets for ISO 14001 and making other enthusiastic efforts.

Achieving zero emissions at all Offices, Sales Offices, and the Head Office
After achieving zero emissions at all business sites by the end of fiscal 2001, the Company did the same at all Offices, Sales Offices, and the Head Office.

*Cogeneration
A cogeneration system produces two or more kinds of energy (e.g., electricity and heat) from a single energy source. A typical example of such efficient use of energy is the hot water and steam that is produced using the waste heat from power generation.

(See page 34.)

(See page 40.)

(See page 21.)

**SRI
SRI aims at obtaining stable profit by evaluating and choosing companies not only through conventional financial analysis but also in terms of such social and ethical aspects as environmental protection, compliance with laws, employment, human rights, customer relations, and contributions to society and local communities.

12

13

Environmental Data

Fujifilm Sustainability Accounting*
Fujifilm’s sustainability accounting involves making a report on the Company’s social activities in terms of monetary value as well as its environmental performance.
Monetary unit: Million yen

Environmental Accounting for Fiscal 2002
Fujifilm began aggregating its environmental accounting in fiscal 1998; this is the Company’s fifth accounting term. Fujifilm’s fiscal 2002 results are as follows. Expenses for environmental protection totaled ¥36 billion, up ¥4.9 billion, or 16%, from the previous year, and capital investments totaled ¥11.4 billion, up ¥0.7 billion, or 6%, from the previous year. The primary cause for the increase in expenses for environmental protection was a ¥2.7 billion increase in research and development cost incurred by research divisions for the development of eco-friendly products, which account for 21% of all research and development expenses. The increase in capital investments was, in turn, primarily caused by measures to reduce environmental impact and streamline production, accounting for 18% of all capital investments. The benefits of environmental protection are as follows. Benefits to Fujifilm increased ¥2.6 billion, or 9%, from the previous year, to ¥31.3 billion, and benefits to society decreased ¥0.7 billion, or 6%, from the previous year, to ¥11.7 billion. Benefits to customers totaled ¥20 billion, a fourfold increase, or ¥15 billion, from the previous term. Benefits to customers included a wider range of use of environment-friendly products than in the previous year.

Environmental Protection Costs Principal approach Amount invested Costs
(including depreciation)

2001
1. Area costs within business operations (1)Pollution prevention Compliance with laws Pollution prevention
(2)Protection of the earth’s environment
Maintenance and operation of facilities for treating wastewater and exhaust gas

2002 8,974 519 2,555 2,983 -

2001 12,921 1,944 4,479 1,060 -

2002 13,802 2,245 4,537 1,871 -

Benefits of Environmental Protection Benefits to Fujifilm Benefits outside Fujifilm Economic benefits Benefits to society Benefits to customers Value in monetary terms Value in monetary terms Value in monetary terms Activity Activity Activity (amount) (amount) 2001 2002 2001 2002 2002 2001 Reductions in charges for extra emissions

Fujifilm Sustainability Accounting

7,648 191 2,954 521 Improve production efficiency and use energy-saving designs to reduce energy losses during manufacturing Reduce VOC emissions Reduce the use of specified CFCs Reduce enegy consumption

5 261 –598 1) Reduced SOx emissions 2) Reduced VOC emissions Reduction of specified CFCs 3) Reduced CO2 emissions

9 267
@ (3.3 tons)

- Development of dry
X-ray film

678
538
(9,400 tons) (350,800 tons)

2,951
621
(10,800 tons) (405,300 tons)

26 311
@ (3.7 tons)

Reduced developer and fixer processing costs Reduced flushing water costs Reductions in developer and fixer costs Depreciation of new equipment

2 792 –451 -

140

162

Wastewater treatment reduction Reduced energy consumption

-

4,323 –2,155

–111 -

–182 -

(3)Resource recycling

Reduce**

3,196

2,503

2,662

3,841

Reductions in raw materials used per unit, reduced resource use
Recovery of silver Sales of sludge containing silver

Development of PS plates that do not use lith film

3,669
103
(1,800 tons)

6,135
173
(3,000 tons)

18,184

15,956

-

-

Reduced developer and fixer processing costs Reduced flushing water costs

27
(67,000 tons)

45.2
(112,900 tons)

2,271 800 2,404 748 3,842 -

2,367 1,073 2,445 863 3,472 19 -

Reduced amounts of silver ore mined Reduced amounts of crude oil extracted

@
(196.5 tons)

@
(185.6 tons)

Reuse/Recycle

Reuse and recycle Fujicolor QuickSnap single-use cameras, silver, containers, and base materials

Recovery of polymeric material

786

414

2,776

1,308

@
(14,400 kl)

@

1

Reductions in other costs (difference in film cost and reductions in labor cost and developer and fixer costs) Depreciation resulting from purchases of new equipment by customers

4,289 –750

7,302 –1,385

Recovery of aluminum
Recovery of the Fujicolor QuickSnap (polymeric materials, flashes, and batteries)

(1,000 kl)

Recovery of other resources

4) Reductions in waste materials through reuse and recycling

2

12,178 -

11,529 -

Development of the Dry Imaging System for newspaper production Reduced developer and fixer processing costs Reduced flushing water costs

42
33
(600 tons) (21,800 tons)

-

2. Upstream/ Downstream costs 3. Costs of management activities

Recover used products from the market
Environmental protection activities at production sites Disclosure of ISO 14001 certification information

252 20

84 20

464 2,607

1,531 2,874

9

Reductions in cost by LCD film Development of dry X-ray film
Development of environmentfriendly products

-

9,884
76 3,773 6,035

136

178

Making thinner polarizer protection film Reducing a sheet of polarizer protection film

4. Research and development costs

R&D for manufacturing facilities that improve production efficiency Materials safety testing

2,825

2,360

15,002

17,716

-

-

Skipping a pasting step in producing polarized filter

Rationalization of LCD-film manufacturing

-

Development of energysaving digital cameras

609
609
(8.115 million)

998
998
(13.077 million)

5,301

Reduction in the number of batteries used

Environmental Accounting Principles
■ Purpose of environmental accounting 1) Environmental accounting provides environmental information that is expressed in terms of quantitative values that assist in decision making by managers and facility supervisors. 2) Environmental accounting is used to provide accurate statistical and financial data to related internal and external stakeholders. ■ Basic policies of environmental accounting Environmental Reporting Guidelines (2002) of the Ministry of the Environment is used as reference. ■ Scope of application of aggregation Fuji Photo Film Co., Ltd. ■ Period covered by aggregation Fiscal 2002 (April 1, 2002, to March 31, 2003)
14
5. Community activity costs 6. Environmental damage costs Total
Support for environmental protection and reforestation activities Charges for extra emissions

5 10,750

8 11,446

31 99 31,124

9 48 35,980

28,728

31,342

12,343

- Development of energy11,684
saving color printers

4,998

15
15
(755,000 kWh)

19,983

■ Aggregation method 1) Calculations for depreciation are made using the straightline method over a three-year period. 2) Environmental costs contained in comprehensive costs* are aggregated by a proportional calculation as determined by the purpose of expenditures.
* Comprehensive costs incorporate capital investments and necessary expenses that are made for purposes other than environmental protection.

3) Environmental benefits are calculated as follows: a) Benefits to Fujifilm (Economic Effects) I) Benefits primarily from capital investment: Benefits are recorded for the depreciation period with aggregation being made over a three-year period following the installation of the facilities.

II) Benefits primarily from production and research practices: Benefits gained from daily production activities, such as materials reuse and recycling and streamlined manufacturing. b) Benefits outside Fujifilm I) Benefits to society: The benefits aggregated consist of reductions in environmental impact resulting from Fujifilm’s environmental protection activities and any corresponding social benefits expressed in monetary terms. II) Benefits to customers: The benefits aggregated consist of benefits to customers in terms of reduced environmental impact as a result of new products developed by Fujifilm and any corresponding economic benefits to customers.

Categories with @ do not list monetary values because there are no indicators enabling a conversion into monetary amounts. 1. Portion of reduction in heavy crude (–): 29,400 kl; Portion of reduction in plastic waste materials: 30,400 kl 2. Alumina waste materials: 66,400 tons; Plastic waste materials: 14,700 tons; Other waste materials: 34,100 tons The bases for converting reductions in the environmental burden into monetary values are as follows: 1) SOx reductions: ¥345,000/ton (Industrial Environmental Management Association Co., Ltd., from Fisical 1999 Report on Survey Research (Environmental Auditing), Including Development on Environmental Business.) 2) VOC reductions: ¥525,000/ton (Industrial Environmental Management Association Co., Ltd., from Fisical 1999 Report on Survey Research (Environmental Auditing), Including Development on Environmental Business.) 3) CO2 reductions: ¥6,370/ton (Report on CO2 Emission Trading System Proposal Project for 2002, disclosed by the Ministry of the Environment) 4) Landfill treatment costs for industrial waste: ¥100/kg

*Sustainability Accounting
Sustainability accounting is a system that measures and indicates the amount companies spend and invest to protect the environment and the effects thereof. Considerations to human resources, occupational safety, social contributions, and other social activities are included in sustainability accounting. Sustainability means the continuous provision of a better life not only for today’s society but also tomorrow’s.

**Reduce
The reduction to the minimum amount possible of the resources (materials) input into the manufacturing and the minimization of waste created

15

Environmental Data

Fujifilm Group Sustainability Accounting
Monetary unit: Million yen

Consolidated Environmental Accounting for Fiscal 2002
The Fujifilm Group started aggregations for consolidated environmental accounting for 21 of the leading Group companies. Accordingly, the domestic environmental efforts carried out by the Fujifilm Group can now be identified in monetary values. All 21 companies below implemented or is prepared to implement environmental management pursuant to ISO 14001. Fuji Photo Film Co., Ltd.; Fuji Xerox Co., Ltd.; Fuji Photo Optical Co., Ltd.; Fuji Magne-Disk Co., Ltd.; Fuji Photo Equipment Co., Ltd.; FUJIFILM ARCH Co., Ltd.; FUJIFILM Microdevices Co., Ltd.; FUJIFILM PHOTONIX Co., Ltd.; Fujicolor Trading Co., Ltd.; FUJIFILM Medical Co., Ltd.; Chiyoda Medical Co., Ltd.; FUJIFILM Business Supply Co., Ltd.; FUJIFILM AXIA Co., Ltd.; FUJIFILM Battery Co., Ltd.; Fujicolor Service Co., Ltd.; FUJIFILM Logistics Co., Ltd.; Fuji Technics Co., Ltd.; FUJIFILM TPX Co., Ltd.; F.F.M.A. Co., Ltd.; FUJIFILM Software Co., Ltd.; and FUJIFILM Human Resources Development Co., Ltd. The fiscal 2002 results for consolidated environmental accounting are as follows. Expenses for environmental protection increased ¥22.9 billion, or 1.6 times that for nonconsolidated environmental accounting, to ¥58.9 billion, and capital investments increased ¥1.8 billion, or 1.2 times that for nonconsolidated environmental accounting, to ¥13.2 billion. The benefits of environmental protection are as follows. Benefits to the Fujifilm Group totaled ¥42.5 billion, up ¥11.2 billion, 1.4 times that for nonconsolidated environmental accounting, and benefits to society totaled ¥12.2 billion, up ¥0.5 billion, or 1.04 times that for nonconsolidated environmental accounting. Benefits to customers increased ¥0.5 billion, or 1.03 times that for nonconsolidated environmental accounting, to ¥20.5 billion. The Fujifilm Group is planning to include overseas Group companies in the future.

Environmental Protection Costs Principal approach Amount invested Costs
(including depreciation)

Benefits of Environmental Protection
Fujifilm Group Sustainability Accounting

Fujifilm
1. Area costs within business operations (1)Pollution prevention Compliance with laws Pollution prevention
(2)Protection of the earth’s environment
Maintenance and operation of facilities for treating wastewater and exhaust gas

Group 10,551 565 2,899 3,241 3,432

Fujifilm 13,802 2,245 4,537 1,871 3,841

Group 18,623 2,629 5,224 2,268 7,194

Benefits to Fujifilm Group Economic benefits Value in monetary terms Activity Fujifilm Group Reductions in charges for extra emissions

Benefits outside Fujifilm Group Benefits to society Benefits to customers Value in monetary terms Value in monetary terms Activity Activity Fujifilm Group Fujifilm Group 26 311
@ (3.7 tons)

8,974 519 2,555 2,983 Improve production efficiency and use energy-saving designs to reduce energy losses during manufacturing

5 Reduced SOx emissions 261
Reduced VOC emissions Reduction of specified CFCs

26 311
@ (3.7 tons)

5 261 –598 -

Reduce VOC emissions Reduce the use of specified CFCs Reduce enegy consumption

Wastewater treatment reduction Reduced energy consumption

–217 Reduced CO2 emissions 16,053 2,367 Reduced amounts of silver 1,073 ore mined 2,445 Reduced amounts of crude 882 oil extracted 3,472 10,682 19 Reductions in waste materials through reuse and recycling

–182 @
(185.6 tons)

–182 @
(185.6 tons)

(3)Resource recycling Reduce

2,503

Reductions in raw materials used per unit, and resource use

15,956 2,367 1,073 2,445 863 3,472 19 -

Recovery of silver Sales of sludge containing silver

-

Reuse/Recycle

Reuse and recycle Fujicolor QuickSnap single-use cameras, silver, containers, and base materials

Recovery of polymeric material

414

414

1,308

1,308

@
(1,000 kl)

@
(1,000 kl)

Recovery of aluminum
Recovery of the Fujicolor QuickSnap (polymeric materials, flashes, and batteries) Recovery of parts from trade-in equipment

11,529 -

12,029 -

Recovery of other resources

2. Upstream/ Downstream costs 3. Costs of management activities

Recover used products from the market Environmental protection activities at production sites Disclosure of ISO 14001 certification information

84 20

163 36

1,531 2,874

11,972 5,727

Development of dry X-ray film
Development of environmentfriendly products

178

178

Development of resourcesaving products

18,970

18,970

4. Research and development costs

R&D for manufacturing facilities that improve production efficiency Materials safety testing

2,360

2,474

17,716

22,176
Rationalization of LCD-film manufacturing

5,301 5,301

-

Development of powersaving electronic devices Development of resourcesaving products 5. Community activity costs 6. Environmental damage costs Total
Support for environmental protection and reforestation activities Charges for extra emissions

1,013

1,513

31,342

1 42,522 11,684 12,184 19,983 20,483

8 11,446

9 13,233

9 48 35,980

251 113 58,862

Monetary unit: Million yen

Item

Major Activities
Creating an overall employee safety and health section, offering health checkups, and carrying out measures to keep employees mentally healthy Offering employees classes in academic fields and technology and helping them to gain expertise Offering barrier-free employment, maternity leave, childcare leave, nursingcare leave, reemployment, sexual harassment prevention measures, and leave-of-absence for volunteer activities and sending employees to take part in social contribution activities Ensuring against TV interference in neighborhoods and offering regional exchange programs

Fujifilm 509 908 160 13 251 335 2,176

Group Companies 134 402 361 30 205 692 1,824

Group Total 643 1,310 521 43 456 1,027 4,000

Social Accounting
The Fujifilm Group aggregated expenses for occupational safety and education as well as customer relationship and social contribution activities, including those related to culture, art, and international exchange. The fiscal 2002 results totaled ¥2.2 billion for Fujifilm alone and ¥4 billion for consolidated accounting. Data from the same 21 companies used in consolidated environmental accounting was collected for the social accounting. The Fujifilm Group continuously strives to improve its sustainability accounting by extensively covering social activity results as well as environmental aspects.

1. Occupational

safety and health

2. General education 3. Employment 4. Dialogues with
communities

5. 6.

Dealing with customers at the customer center, disclosing information, Customer relationship and providing customer education on product use Promoting culture, art, Promoting international exchange and art that uses visual equipment and international exchange

Total

16

17

Environmental Data

Fujifilm and Environmental Impact

The following diagrams show resource input as well as wastes and emissions generated through research and development, manufacturing, and distribution processes in fiscal 2002. Fujifilm promotes a variety of measures to reduce environmental impact, such as strengthening environmental management systems by formulating the Green Policy, and reducing CO2 emissions by switching from heavy oil to natural gas at factories.
*Polyethylene Terephthalate (PET)
PET is commonly used in making plastic bottles. It is also used as a substrate for X-ray film.

Energy Used Electricity purchased
(million kWh)

Water used (million tons) Silver (thousand tons) 281 176 79 5435 162 2 19 Gelatin (thousand tons) PET* (thousand tons) TAC** (thousand tons) Aluminum (thousand tons)

50.5 0.87 3.6 51.2 15.3 48.3

Container Packaging Materials Plastic film/sheets (thousand tons) Plastic moldings (thousand tons) Metal materials (thousand tons) Paper containers and paper materials (thousand tons) Cardboard (thousand tons) 0.66 4.86 2.40 5.12 9.38

Fujifilm and Environmental Impact

**Triacetylcellulose (TAC)
TAC is used as a substrate for photo film and movie film.

Heavy oil A (thousand kl) Heavy oil C (thousand kl) Utility gas (thousand m ) LPG (tons) Kerosene (thousand kl) Solar energy (thousand kWh)
3

***Particulate Matter (PM)
PMs are particles that are 10 micrometers or less in diameter. Airborne PMs are often called suspended particulate matters (SPMs). SPMs are found naturally in volcanic smoke as well as factory smoke and diesel vehicle exhaust gas. SPMs in the diesel exhaust may cause cancer.

Research/Development/Manufacturing Waste Environmental impact reduction measures Emissions Air
VOC emissions
(tons/year)

Customer
Propotion recycled

Waste materials (thousand tons/year)

30.5

100%
Distribution
(data supplied by Fujifilm Logistics)

Product

CO2 emissions (thousand tons of CO2/year)

699 396 760 22 150
NOx emissions (tons/year) CO2 emissions reduced due to improved transport efficiency
(compared with previous year) (tons of CO2/year)

SOx emissions (tons/year)

1,800 NOx emissions (tons/year)

Total CO2 emissions (thousand tons of CO2/year)

17.5

Water
Amount discharged
(million tons/year)

Particulate matter*** (soot) emissions (tons/year) COD emissions (tons/year)

209.2

45.5

137.5 10.5

Total nitrogen discharge (tons/year)
Amount of water recycled
(thousand tons/year)

285 5
PM emissions (tons/year)

Total phosphorus discharge (tons/year)

3.6

18

19

Manegement System

Environmental Management System

ISO 14001* and Responsible Care
Fujifilm’s environmental management system was developed based on ISO 14001 and the concept of Responsible Care (RC)*, for which the Company has worked tirelessly since 1995. Fujifilm plans to initiate the Green Policy and achieve its targets under this management system. The Company continues to improve the system through the PDCA cycle shown at right.
*RC is an effort to voluntarily ensure environmental protection, safety, and health—disclosing activity results to the public as well as communicating and holding discussions with them—over the entire life cycle of a product, from development, manufacturing, and distribution to use, final consumption, and discharge of chemicals.

Current Status of Acquisition of ISO 14001 Certification
Environmental Management System

Fujifilm Group’s PDCA Cycle

Company President’s Oath Formulation of Green Policy

By January 1997, Fujifilm had acquired ISO 14001 certification, an international standard pertaining to environmental management systems, at all four factories in Japan. By March 1999, all of its production sites had also acquired the certification. Now, administration divisions and marketing divisions besides manufacturing divisions are encouraged to acquire ISO 14001 certification by establishing a management system that comprehensiveSix Certified Facilities and One Certified Office in Japan
Fujifilm maintains sound management in terms of the environment and safety

ly covers planning, manufacturing, and marketing divisions. With the Osaka Office acquiring certification in January 2003, the total number of business sites that are ISO 14001 certified is 74 in Japan and 20 abroad. Fujifilm is planning for the Head Office and Group companies in Japan to be certified by the end of fiscal 2003 and overseas production sites by the end of fiscal 2004.
Forty-eight Certified Sites in Japan (Fuji Xerox)
Fuji Xerox Co., Ltd. Takematsu Center .................March 1997 Suzuka Fuji Xerox Co., Ltd. .....................................May 1997 Fuji Xerox Co., Ltd. Ebina Plant ..............................June 1997 Fuji Xerox Co., Ltd. Iwatsuki Center...................October 1997 Niigata Fuji Xerox Manufacturing Co., Ltd. .......October 1997 Fuji Xerox Office Supply Co., Ltd. ........................March 1999 Fuji Xerox Distribution Co., Ltd. ....................November 2000 Kanagawa Xerox Co., Ltd. .............................December 2000 Miyagi Xerox Co., Ltd. .........................................March 2001 Fuji Xerox Co., Ltd. Nakai Laboratory ......................May 2001 Osaka Xerox Co., Ltd. ............................................June 2001 Hyogo Xerox Co., Ltd. ...........................................June 2001 Hiroshima Xerox Co., Ltd. .....................................June 2001 Ibaragi Xerox Co., Ltd. ...........................................June 2001 Gumma Xerox Co., Ltd. ..........................................July 2001 Saitama Xerox Co., Ltd. ..........................................July 2001 Niigata Xerox Co., Ltd. ............................................July 2001 Fuji Xerox System Services Co., Ltd. ...........November 2001 Tokyo Xerox Co., Ltd. ....................................December 2001 Hokkaido Xerox Co., Ltd. ..............................December 2001 Chiba Xerox Co., Ltd. ....................................December 2001 Tama Xerox Co., Ltd. ....................................December 2001 Nagano Xerox Co., Ltd. .................................December 2001

*ISO 14001
ISO 14001 is a global standard that was established in September 1996 by the International Standards Organization (ISO) and pertains to environmental management systems. A certifying organization, such as the Japan Accreditation Board for Conformity Assessment (JAB), is established in each country. Registration bodies accredited by the organization strive to constantly improve environmental management by registering and evaluating corporations according to their the degree of compliance with environmental management system standards. ISO 14001 stipulates requirements for such environmental management systems.

Repeat and improve continuously

RC audits and assessments Creation of reports, including RC annual reports

Establishment of Green Policy implementation plans Recognition of environmental concerns and chemical safety concerns

■ Fuji Photo Film Co., Ltd. Fujinomiya Factory (August 1996) Manufacture of the base paper for photographic prints, data recording paper (pressure-sensitive and thermo-sensitive paper), X-ray film, etc. ■ Fuji Photo Film Co., Ltd. Odawara Factory (October 1996) Manufacture of recording media, silver nitrate, photographic chemicals and film for LCDs ■ Fuji Photo Film Co., Ltd. (December 1996) Ashigara Factory Manufacture of photosensitized materials for photography, such as films and photographic paper, as well as industrial materials ■ Fuji Photo Film Co., Ltd. Yosahida-Minami Factory (January 1997) Reseach, development, and manufacture of the platemaking materials (PS plates) used in offset printing

■ Fuji Photo Film Co., Ltd. Miyanodai Technology Development Center (March 1998) Equipment R and D for medical imaging diagnosis, color photos, and printing systems ■ Fuji Photo Film Co., Ltd. Asaka Research Laboratories (March 1999) Research, development, and manufacture of clinical examination systems utilizing the medical diagnostic film format ■ Fuji Photo Film Co., Ltd. (January 2003) Osaka Office The manufacture of photo-related products, information-related materials and equipment, and electronic imaging products and sales of industrial materials and equipment

Company President

Execution and promotion of implementation plans Public announcement of results Dialogues with communities

FRC Committee

Committee-based organizations (nonhierarchical organizations) Members...........Concerned Executive Officers Secretariat........ Protection & Products Safety Div.
General Manager of the Environmental

Committee Chairman
Director in Charge of the Environment

Fujifilm Responsible Care Audit Committee Specific lssues Promotion Committees

Line organizations (hierarchical organizations)

Green Purchasing Promotion Committee Committee for the Promotion of the Green Procurement of Raw Materials Zero Emissions Promotion Committee Committee for the Promotion of Energy Conservation and CO2 Reduction

Nineteen Certified Group Companies in Japan

Twenty Certified Sites Overseas

Hokuriku Xerox Co., Ltd. ...............................December 2001 Gifu Xerox Co., Ltd. .......................................December 2001 Fukuoka Xerox Co., Ltd. ................................December 2001 Kyoto Xerox Co., Ltd. ....................................December 2001 Okayama Xerox Co., Ltd. ...............................December 2001 Shikoku Xerox Co., Ltd. .................................December 2001 Yamaguchi Xerox Co., Ltd. ...............................January 2001 KitaKyushu Xerox Co., Ltd. ...........................December 2001 Fuji Xerox Co., Ltd. General Office Marketing Company...................December 2001 Fuji Xerox Co., Ltd. Industry Solutions Company................................December 2001 Fuji Xerox Co., Ltd. Customer Service Support Company ..................December 2001 ● Fukushima Xerox Co., Ltd. ................................June 2002 ● Iwate Xerox Co., Ltd. .........................................June 2002 ● Tochigi Xerox Co., Ltd. ......................................June 2002 ● Aichi Xerox Co., Ltd. .........................................June 2002 ● Shizuoka Xerox Co., Ltd. ...................................June 2002 ● Aichi-Higashi Xerox Co., Ltd. ............................June 2002 ● Mie Xerox Co., Ltd. ...........................................June 2002 ● Nara Xerox Co., Ltd. ..........................................June 2002 ● Kumamoto Xerox Co., Ltd. ................................June 2002 ● Nagasaki Xerox Co., Ltd. ...................................June 2002 ● Kagoshima Xerox Co., Ltd. ................................June 2002 ● Fuji Xerox Co., Ltd. Headquarters ...................August 2002 ● Fuji Xerox Imaging Materials Co., Ltd. ......November 2002 ● Fuji Xerox Learning Institute Inc. Space Alpha KobeMarch 2003 ● Certification obtained in 2002

Director in Charge of the Environment
Environmental Protection & Products Safety Div. Material Safety Test Center

Marketing Division General Managers

Factory General Managers
Division Responsible for Environmental & Safety Issues

Office General Managers

Research Facility General Managers

Committee for the Promotion of Responsible Care in Packaging Committee for the Promotion of Design for Environment Promotion Committee for FRC Education

Fuji Photo Optical Co., Ltd. ...............................January 1998 Mito Fuji Koki Co., Ltd. .....................................January 1998 Okaya Fuji Koki Co., Ltd. .....................................March 1998 Sano Fuji Koki Co., Ltd. .......................................March 1998 Fuji Photo Equipment Co., Ltd. ...........................March 1998 FUJIFILM PHOTONIX Co., Ltd. ..............................April 1999 FUJIFILM ARCH Co., Ltd. ......................................June 1998 FUJIFILM Microdevices Co., Ltd. ........................March 2000 Fuji Technics Co., Ltd. ...........................................April 2000 Fuji Magne-Disk Co., Ltd. ......................................June 2001 ● FUJIFILM Medical Co., Ltd. ...............................April 2002 ● Fujicolor Trading Co., Ltd. ..................................May 2002 ● Fujicolor Service Co., Ltd. Tokyo Office...............May 2002 ● FUJIFILM Logistics Co., Ltd. ....................November 2002 ● FUJIFILM Business Supply Co., Ltd. ........November 2002 ● FUJIFILM AXIA Co., Ltd. ...........................November 2002 ● FUJIFILM Software Co., Ltd. .....................December 2002 ● FUJIFILM Battery Co., Ltd. ........................December 2002 ● F. I. T. Co., Ltd. .........................................December 2002

Fuji Hunt Photographic Chemicals, Inc. .......September 1997 Fuji Photo Film B.V. .......................................December 1997 Fuji Photo Film da Amazonia Ltda..................November 1998 Fuij Photo Film do Brasil Ltda ........................December 1998 Fuji Graphic Systems Canada, Inc. ................December 1998 Fuji Photo Film, Inc. ...............................................April 1999 Fuji Magnetics G.m.b.H. ...................................October 1999 Fuji Film Electronic Imaging Ltd. ..................September 2000 Fujifilm Imaging System (Suzhou) Co., Ltd. .....October 2000 Fuji Hunt Photographic Chemicals, Pte Ltd. ...............April 2001 Fuji Photo Film Canada Inc. ...................................June 2001 ● Fuji Hunt Photographic Chemicals, N.V. .......December 2002 ● Fuji Hunt do Brazil .......................................February 2003 Fuji Xerox Korea Co., Ltd. .............................December 1997 Fuji Xerox of Shanghai Ltd. .............................February 1998 Fuji Xerox Australia Pty. Ltd. Alexandria site .............August 1999 Fuji Xerox Australia Pty. Ltd. Zetland site.............August 2000 Fuji Xerox of Shenzhen Ltd. .........................November 2000 Taiwan Fuji Xerox Corp. Taoyuan Factory ..................July 2001 Fuji Xerox Korea Co., Ltd. Pupyeong Factory .........November 2001

Person(s) in Charge of Environmental Affairs

Environment & Safety Department

Person(s) in Charge of Environmental Affairs

Person(s) in Charge of Environmental Affairs

Committee for Promoting Environmental Accounting

Organizational Structure
In 1970, Fujifilm created Environment Protection and Security divisions in its factories. Subsequently, those in charge of environmental affairs and safety management were assigned to each of the sales offices and research and development divisions as part of the linear organization. In 1989, the Environment and Safety Committee (the present FRC Committee) was established as a Companywide organization. Together with the creation of the Fujifilm Group Green Policy in fiscal 2002, Groupwide efforts to promote environmental protection will be carried out led by the committee.

Risk Management System
Corporate entities have no choice but to face extremely diverse risks. Basically, risks are prevented or reduced in each relevant area, but there are some important incidents or themes that may influences the Company as a whole and are dealt with by the Comprehensive Risk Management Committee. In the area of environmental risk assessment, an environmentrelated risk task force was established to take management measures and deal with incidents that may involve risk. The Comprehensive Risk Management Committee comprises the following six task forces (subcommittees):
• Task Force on Environment-related Risk • Task Force on the Risk of Attacks on the Company • Task Force on the Risk to Safety Abroad • Task Force on the Risk to Export Control • Task Force on the Risk of Disaster • Task Force on the Risk of Serious Product Complaints

20

21

Management System

Environmental Management System

Environmental Education
Progress in educational curriculum The Fujifilm Group, led by the Fujifilm Responsible Care Curriculum Development Committee, prepares and promotes environmental curriculum according to employee position and type of work. The details of the 2002 curriculum are as follows: 1. Introductory course: Education for new employees, new managers, and new general managers 2. Manager course: Ordinary course 3. Specialist course: Industrial waste management, life cycle assessment (LCA), and Design for Environment In fiscal 2002, 950 employees from Fujifilm and Fujifilm Group companies attended class under this program, raising the total number of participants to 2,560 since the program started. In the past, these classes covered specific environmental and safety issues faced by each workplace, where tasks, such as production, research, are undertaken in accordance with ISO 14001. However, we are now expanding the scope of these courses to provide target students with a broader understanding of the issues involved. Fujifilm continues to expand and develop its environmental education programs as an effective way of improving environmental protection activities throughout the Fujifilm Group. The start of the e-Learning remote education system In April 2003, the e-Learning remote education system, which makes use of information technology (IT), was started. From the time of its launch to the time of its completion at the end of fiscal 2003, the e-Learning program will be for Fujifilm employees only. The Company is planning to introduce the program to other Fujifilm Group companies in Japan and abroad by the end of fiscal 2004. Thus, we are promoting the development of environment-friendly products and reduction in CO2 emissions by encouraging all 70,000-odd Group employees to learn about the Fujifilm Group Green Policy. Personal learning through the company LAN The e-Learning program was designed so that employees can learn about the three key phrases of the Fujifilm Group Green Policy, namely, sustainable development, environmental quality, and eco-efficiency. Employees can take lessons whenever they like by hooking up their PCs to the company LAN. At the beginning of the program, an employee number needs to be entered for identification. Following a greeting from the president and an explanation on the purpose of the program by the general manager of the Environmental Protection & Products Safety Division, the student takes a pretest to verify how much he/she has understood. Next, there is a one-hour program consisting of 40 steps and various illustrations and charts. The student takes a comprehension test at the end of the program and is required to repeat the program until he/she can get a perfect score. Once this has been achieved, a certificate of completion is shown on the screen. Although the program is basically for personal use of the Company LAN, in some cases, educational CD-ROMs will be distributed and group lessons given. In such cases, the lesson results will be sent to the Environmental Protection & Products Safety Division server for the progress management.

Chemical Management
Currently, risk management is becoming more important at all stages of a product’s life cycle, from the selection of chemicals to their discharge. Fujifilm optimizes its know-how, which has been efficiently refined over the years, for the benefit of the Fujifilm Group as a whole in its comprehensive chemical management throughout the entire life cycle of a product.

• Management of chemicals by classifying them into five categories, from “prohibited” to “general-managed” • Comprehensive management of raw materials, from purchase, research and development, and manufacturing to distribution, product use, and discharge • Safety rating and risk management by the Chemical and Environmental Safety Information Database

Environmental Management System

Management and communication based on the Basic Provisions for the Environmental Safety Management of Chemical Substances

Environmental impact reduction measures

Raw materials

Reseach/ Development/ Manufacturing

Distribution
Warning indicator Yellow card

Products Customers

Safety Testing at the Fujifilm Material Safety Test Center
Every one of the approximately 4,000 chemicals used by Fujifilm is tested for safety at the Fujifilm Material Safety Test Center at the time of purchase. Every aspect of the chemicals is checked, including the following: • adverse effect on the health of people • adverse effect on the ecosystem • risk of exploding Fujifilm then carries out a five-level safety standard ranking on the chemicals that ranges from “prohibited” to “general-managed.” If no information on a chemical indicates that it is toxic but there is some concern of risk or the possibility that the chemical will be subject to regulations in the future, the chemical is classified as a “special-controlled substance” (S substance) and will undergo basic research for substituting substances, where it will be monitored and studied. All information obtained in the study will be stored in the Chemical and Environmental Safety Information Database, where it can be accessed and used by the people concerned.

Waste

Emissions into
Environmental monitoring

Air

Water
Products (chemicals) — MSDS Products (film, photographic paper, etc.) — Article Information Sheet (AIS)*

Regeneration
Management according to chemical substance classification
Product management divided into five ranks, from “prohibited” to “general-managed”

Toxicity information/In-house testing/Third-party information

Group of students studying (Tokyo Head Office, Industrial Materials and Products Division)

Industrial Waste Management Seminar
In fiscal 2002, the Fujifilm Group held an industrial waste management seminar, which is a specialist course in the Group’s Responsible Care educational curriculum. This is in response to a recent increase in the number of cases concerning the illegal dumping of industrial waste and the corresponding need for business entities that discharge such waste to be held legally responsible. The curriculum was designed to help those in charge of industrial waste disposal to understand the relevant legal framework and be more knowledgeable in choosing the appropriate disposal contractor and correctly following the consignment procedure. The seminar was held three times in fiscal 2002 and attended by 98 participants from Fujifilm business sites and Group companies. The participants took active part in the sessions.

Legislative Regulations Database
Contains such information as Japanese and overseas legal provisions over 70,000 chemical substances

Management on a consolidated basis

Chemical and Environmental Safety Information Database
Database containing environmental and safety information on the approximately 3,800 chemical substamces developd, manufactured, and used by Fujifilm

FMSDS database
(page 45) In-house MSDS’s used in environmental safety management and employee safety for Fujifilm employees

Server
Company LAN

Pretest
Registration, queries, keyword searches

40 screens Review test Questionnaire

Three Databases and the Global Management System
Fujifilm developed three databases so that chemicals can be more efficiently managed. The databases are linked to one another, and if one is modified, the modification is automatically reflected in the other two. The combined operation of the Legislative Regulations Database and Chemical and Environmental

Information Database was also started.
*AIS
Photo-developing solutions and related products are referred to as “nonarticle products” while photographic film and related products are called “article products.” Article Information Sheets (AIS’s) provide the information necessary for the safe handling of article products and list the name and manufacturer of each product, its handing methods, and environmental safety information relating to such product characteristics as hazardousness and toxicity. AIS’s are provided to users by the supplier along with the product.

Issuing certificates of completion

22

23

Design for Environment

Special Feature: The Fujicolor QuickSnap and Inverse Manufacturing Factory
General lab Minilab photo store

Evolution of the Fujicolor QuickSnap
Fujicolor QuickSnap Recycling Center starts operations

First QuickSnap with a panoramic QuickSnap Panoramic Hi

From Fujicolor QuickSnap to Fujicolor QuickSnap
The Fujicolor QuickSnap was marketed in 1986 as the world’s first single-use camera and immediately recorded enormous sales. Although there was a system to recycle parts of the camera since the product’s launch, it could not keep up with the rapid growth of the market. In 1990, by establishing the Fujicolor QuickSnap Inverse Manufacturing Factory, a recycling center, Fujifilm started its reuse and recycling system in full scale. At this point, a major concern was how to streamline the recycling process. Products need to be collected and disassembled prior to recycling, but back in 1990 only the flash units of the Fujicolor QuickSnap Flash were unitized and, as a result, disassembling the camera was time consuming. In 1992, the Company developed the recyclable QuickSnap Flash Econoshot based on the idea that it is more efficient to design and develop recycling-oriented products. Incorporating unitization, a feature of the QuickSnap Flash, with new technologies used in recycling-oriented production and environmental product assessment methods, the Fujicolor QuickSnap continues to evolve in terms of recyclability. As a result, the QuickSnap Simple Eye 800 is 95% recycled in weight, compared to that of the QuickSnap Flash, which was 36% in 1990.

A Change in Thinking and Product Recovery Lead to Recycling-oriented Production
Fujifilm makes earnest efforts to develop recycling line technologies in addition to the products themselves. In November 1992, the Company started an automated reuse/recycling system for QuickSnap products. Research on this system began with the development of the Fujicolor QuickSnap Econoshot. In 1998, Fujifilm started operations at the Fujicolor QuickSnap Inverse Manufacturing Factory, which adopted a production system that consists of recovery, an innovative process that is different from previous ideas; disassembly and inspection; and reuse. Since recycling began in 1990, Fujifilm has been making steady progress in reducing environmental impact by unitizing product parts and improving reduction efforts and manufacturing processes. For parts that cannot be reused, e.g., the front cover panels of the Fujicolor QuickSnap, the Company has developed a pelletizing-less process that enables crushed ingredients to be directly molded into new plastic. This process significantly reduced the environmental impact of resin recycling.
Reduction in Environmental Impact Due to Plastic Recycling (CO2 Emissions)
(Index)

Protecting the Plentiful Supply of Clean Water and Air
The Fujifilm Ashigara Factory, where the QuickSnap Inverse Manufacturing Factory is located, can be found in Minami Ashigara, Kanagawa Prefecture, in the middle of luxuriant verdure. Since its foundation, Fujifilm has done its utmost to reduce environmental impact and protect the rich natural environment from discharged wastewater and polluted air. Minami Ashigara, where one of the nation’s top 100 cities for water quality is located, pays especially strict attention to wastewater disposal. The Inverse Manufacturing Factory opens up opportunities to communicate with local residents, customers, and other stakeholders. Study tours offer visitors a glimpse of the actual reuse and recycling process of the Fujicolor QuickSnap at the factory. In fiscal 2002, more than 10,000 people visited the factory due, in part, to it being chosen as a place for environmental study for elementary school students and a stop for school trips for junior high school students. Making use of the Fujicolor QuickSnap concept and environment-conscious technologies that it had cultivated, Fujifilm shall continue to be a part of a recycling-based society.
QuickSnap Econoshot

QuickSnap Waterproof

Photos can be taken in water up to 3 m deep.

Number of frames increased by three and number of reusable parts also increased

First to use highly sensitive ISO 800 film, and a flash that reaches as far as 4 m expands the scope of the shot Eight consecutive shots taken automatically are convenient for checking golf swings.

QuickSnap Super 800 Flash

Uses APS film, making the camera more compact

QuickSnap Golf QuickSnap Black & White QuickSnap 3 formats

QuickSnap Super Slim Flash Switching between standard, highvision, and panoramic shots is possible. Comes with an auto date function QuickSnap Date

Pictures of popular characters can be printed on the photo, increasing the joy of taking pictures. QuickSnap Super Eye 800 QuickSnap Print Collection

100

The Epitome of Environmental Friendliness
Plastic recycling efficiency is increased by a pelletizing-less process Unitization allows shutters, lenses, flashes, and related-parts to be reused.

64% reduction
50

90% reduction
QuickSnap Simple Eye 800

0 Raw materials Pelletized recycling materials Nonpelletized recycling materials

QuickSnap Excellent

Equipped with a large, easy-to-use viewfinder

Comparison of the environmental impact of manufacturing vs. recycling the same weight of plastic

Colorful carp swimming in a small reservoir at a wastewater treatment facility

Advanced technology provides high resolution, and a universal design makes it easy to use.

The QuickSnap Inverse Manufacturing Factory accepts tour requests from groups. Please use the following number to arrange tours. Recycling is improved by the use of uniform materials. 24 Lighter, more compact models have aided in reduction efforts. Tel.: +81-465-73-6040
Pelletized recycling materials Nonpelletized recycling materials

New!

QuickSnap Night & Day

The Fujicolor QuickSnap Inverse Manufacturing Factory, the first of its kind in the world, starts operations

Automatic reuse/recycle system implemented

Mass production, mass consumption, and mass disposal…. The consequences of providing comfortable, convenient, and fulfilling lives are environmental destruction, resource depletion, and other environmental issues. Because the construction and operation of waste disposal facilities and disposal methods are a growing concern, we need to end the production and consumption of disposable single-use products and switch to a recycling-oriented economic or social system. Hoping to follow such trends, Fujifilm is striving to help establish a recycling-based society. As a typical example, the Fujicolor QuickSnap Inverse Manufacturing Factory is given here.

Film-developing counter

Sorting

Disassembly

Resin recycling

Film used switched from 110 film (ISO 100) to 35mm film (ISO 400)
Original QuickSnap

Special Feature: The Fujicolor QuickSnap and Inverse Manufacturing Factory

Cleaning

First QuickSnap to come with a flash QuickSnap Hi QuickSnap Flash

Customer

Fujicolor QuickSnap Inverse Manufacturing Factory Fujicolor QuickSnap —shipment

Manufacturing

Inspection

Resin molding

Telephoto shots of 4 m or more possible

Macro shots of up to 40 cm possible QuickSnap Telephoto QuickSnap Close up

Camera store

25

Design for Environment

How Design for Environment Works

How Design for Environment Works
Fujifilm strives to improve environmental product quality based on the Fujifilm Group Green Policy. The Company formulated basic rules for Design for Environment after reviewing the Companywide framework so that efforts toward environmental protection, which used to be conducted by division, can now be carried out under integrated standards. The procedures to be followed at each stage up until the time the product hits the market are mentioned below. In April 2003, Fujifilm initiated this system for newly developed products, which was also initiated at other Fujifilm Group companies. In fiscal 2002, LCA* implementation rules were formulated to quantitatively and objectively evaluate environmental impact over a product’s entire life cycle. Thus, Fujifilm established a system to commercialize products only after deliberations and an evaluation of environmental product quality, including LCA, at each stage of the product’s life cycle. To improve procurement, Fujifilm formulated the Green Procurement standards for suppliers as well as procured materials and parts to be incorporated into the evaluation of environmental product quality.

Product planning

Research and development
Environmental product quality evaluation
Checking for conformance to the Fujifilm rules for products and the environment

Production and marketing

Use by the customer

Disposal

Environmental product quality target setting

LCA evaluation
Evaluation of such factors as the levels of CO2 and waste throughout the product life cycle

Creation of an environmental product quality sheet

Collection of environmental product quality data

Green Procurement
Assurance of the environmental product quality of materials and parts

Consideration for reduce, reuse, and recycle (3Rs)

Basic rules for Design for Environment
Explicit statement of environmental considerations relating to products April 2002 Start of implementation rules at Fujifilm April 2003 Full-scale implementation, starting with newly developed products April 2003 Start of implementation rules at Fujifilm Group companies

LCA standard method
Evaluation of environmental impact through the product life cycle May 2002 Creation of implementation rules

Green Procurement standard
Evaluation of the environmental friendliness of parts, materials, packaging, and products March 2001 Suppliers green standard August 2002 Procured goods green standard

*Life Cycle Assessment (LCA)
LCA is a comprehensive evaluation of a product’s environmental impact at all stages, from development, manufacturing, and use to discharge or reuse. Energy input, the amount of material used, CO2 emissions, and other values are used to identify and evaluate a product’s environmental impact throughout its lifetime.

26

Design for Environment

Environment-friendly Products

One-time-use recycable camera

Fujicolor QuickSnap
Daisuke Okamura
LF Division, Ashigara Factory
Total Environmental Impact throughout a Product’s Life Cycle
(Index)

How Design for Environment Works/Environment-friendly Products

Resource conservation Reduction in resource consumption through more compact and lightweight designs, product unitization, and sharing of parts Environmental impact reduction Reuse of parts whenever possible and the use of recycled plastic in manufacturing other parts
Before recycling began

*Assumes a 100% recovery rate

After recycling began

100 80

41% reduction

53% reduction

60% reduction

63% reduction

All six products in the Fujicolor QuickSnap line has acquired Type III Eco-Label.
After acquiring Eco Mark in 2001, the Fujicolor QuickSnap acquired Type III Eco-Label, which requires the disclosure of environmental information based on LCA data. Thus, Fujifilm enthusiastically strives to improve its eco-efficiency. Although the specifications of the Fujicolor QuickSnap and an explanation on the Inverse Manufacturing Factory are given on other pages in this report, we would like to emphasize here that the reuse and recycling of the Fujicolor QuickSnap can contribute to reducing environmental impact because most of the camera’s environmental impact is caused by the energy consumed at its manufacturing stage. Current diverse customer needs call for an expansion of Fujifilm’s product lineup. It is, therefore, important to further pursue recycling efficiency by developing an

60 40 20 0

QuickSnap FL QuickSnap FL QuickSnap Ace 1990 1990 1995

QuickSnap Super Eye 2003

QuickSnap Simple Ace 2003

automated system that is able to produce a variety of products. Furthermore, the stronger demand for the use of resin in components spurs us to use the same color of resin in as many products as possible and to the furthest extent possible and to develop technologies that are capable of recycling such colored resin. The Fujicolor QuickSnap has established a social reputation as being a typical example of the principles of reduce, reuse, and recycle (3Rs). It will be more important for us in the future to establish a system that balances economy and recycling in pursuit of productivity.

Self-serve quick printing system

Princiao Q/Qn
print system. In 2001, the Princiao was installed in camera shops, mass merchandisers, sightseeing spots, and train/subway stations. In November 2002, the Princiao Q, which is dedicated to printing pictures taken with digital cameras, and the space-saving Princiao S, which separates the control unit and printer and can be put on store counters or desks, were launched. Princiao Qn, launched in April 2003, can print images taken by a cell phone’s built-in camera and sent by e-mail. The most environment-friendly benefit of the Princiao is its lack of need for ink ribbons and cartridges, which results in no plastic waste being generated.

Fujifilm launched its Princiao line, which is equipped with Printpix technology. This technology enables the high-quality, inkless color printing of pictures taken with a digital camera and helped Fujifilm drastically reduce the environmental impact of this product line. Environmental impact reduction No ink ribbons or cartridges are required and no plastic waste is generated. Energy conservation A roll-type paper cartridge makes cartridge exchanges and maintenance easier.

Princiao Qn

Development of the digital camera print business
Printpix technology prints color on Printpix SD paper using a thermal recording system, which is different from that use in ink jet printing and laser exposure. This technology helped develop new applications for digital camera prints thanks to the image correction, smooth gradation, and clear shades that the technology is capable of producing as well as the prints’ resistance to discoloration or fading. Special skills are not required to use this technology, and this has led to the creation of the Princiao integrated automatic digital

Toshio Nakajima
Engineering Group Printpix Products Division

27

Design for Environment

Environment-friendly Products

Digital camera

FinePix F410

Compact, high-speed advanced processing digital minilab
The Frontier digital minilab enables the development and printing of color photos in a short period of time right there in the store. The Frontier 340E, an upgraded version of the compact, reasonably priced Frontier 330, which was developed in 2001, succeeded in significantly reducing environmental impact. Energy conservation Processing time reduced 52% and processing capacity increased 38% compared to those of the Frontier 330 Resource conservation Significant reduction in the mother liquor used Environmental impact reduction The use of modified poly phenylene ether (PPE)* in processing tanks

Frontier 340E

Environment-friendly Products

Environmental impact reduction Smaller PCB and fewer parts Energy conservation More power savings and longer battery life Resource conservation Lighter packaging

Acquisition of Type III Eco-Label for digital cameras first in Japan
Since digital cameras first emerged in 1988, Fujifilm has been involved with Design for Environment, which makes use of such technologies as those used for power saving, and the basic aim to improve the functions and quality of its products. Taking responsibility as a pioneer, Fujifilm worked with the Japan Environmental Management Association for Industry (JEMAI) to create unified Type III Eco-Label standards for digital cameras. (See page 47.) Thus, in making the best use of its knowledge and holding many discussions with its competitors, who also participated in creating the standards, Fujifilm strives to set another set of standards for LCA to calculate (quantify) the environmental impact of digital cameras over their entire life cycles. The quantitative calculation of environmental impact based on the calculation standards established above resulted in the acquisition of Type III Eco-Label for the FinePix F410. The Company was the first in the industry to disclose information on the camera’s environmental impact through this system. Specifically, Fujifilm quantified its past products and adopted the Design for Environment to evaluate and verify how much they contributed to reducing environmental impact. Examples include quantitative confirmation of how lighter packaging contributes to reducing CO2 emissions.

Michihiro Miyake
Engineering & Designing Division, Electronic Imaging Products Division

Katsuhiko Tanaka
Miyanodai Technology Development Center

Compact Packaging Boxes

Dramatically faster with a higher capacity as past products but with the same dimensions
Processors develop, bleach, fix, wash, and dry photosensitive materials that are used to print pictures from film images that are read by CCD area sensors, transformed into digital signals, and exposed by laser. The Frontier 340E uses a new agent to speed up the process of developing, bleaching, and fixing and significantly improves the washing and drying of structures. By adopting the world’s first submerged blade system to convey and process two or more washing processes while keeping color paper dipped in the solution, the Frontier 340E drastically improves processing speed and capacity while remaining the same size as the Frontier 330. A significant reduction in the number of parts used, quantity of mother liquor used, and the length of the conveyance path prevents the processing solution from deteriorating and stabilizes the processing. As a result, Fujifilm reduced processing time 52% (from 3 minutes, 40 seconds, to 1 minute, 40 seconds) and increased processing capacity 38% (from 650 sheets per hour to 900 sheets per

hour) from those of the Frontier 330. Fujifilm also pays careful attention to reducing the environmental impact of the Frontier 340E. The Company changed the material used in its processing tanks from vinyl chloride to modified PPE, a kind of engineering plastic, to reduce the amount of lead contained and weight. The Frontier 340E has significantly less global warming impact over its life cycle than the Frontier 370, its larger predecessor.
Comparison of Minilab’s Life Cycle Global Warming Impact (CO2 equivalent)
(Index)

FinePix F401 CO2 equivalent: Approximately 295 g

FinePix F410 CO2 equivalent: Approximately 201 g

100 80 60 40 20 0 -20
Production (Raw Materials) Production (Product) Distribution

100 86.2
Frontier 370 Frontier 340E

63.3 51.7

Life Cycle Environmental Impact of FinePix F410 (Global warming impact, CO2 equivalent)
(kg)

8 6

7.17

10.0 8.5

10.5 8.5 0.3 0.3 0.3 0.3 -7.3 -6.0
Use Disposal Recycling Total

4.78
4 2 0

1.83 0.03
Production Production Distribution (Raw Materials) (Product)

0.20
Use

0.33
Disposal/ recycling Total

*Modified PPE
Modified PPE resin has a good balance of heat and fire resistance, size stability, and mechanical characteristics. It is mainly used in electric and electronic products as well as automobiles.

Automatic X-ray film imaging system

CEPROS Q system
How to reduce the environmental impact of medical practices
Fujifilm has worked toward environmental friendliness since 1991, when it started developing the CEPROS automatic X-ray film imaging system. The Company focuses on the working environment and aims for such qualities as user friendliness as well as a drastic reduction in the environmental impact of medical practices. Following the launch of the compact desktop CEPROS P system in 1996, which was designed for small hospitals and private practice medical professionals, the CEPROS Q system was launched in August 2002. The CEPROS Q system has more darkroom space because of its capability to significantly reduce the amount of gas emitted from the processing solution, which allowed the exhaust pipes to be removed. The CEPROS Q system has the same characteristics as the CEPROS P system, i.e., they both have automatically replenishing processing solution containers that are easy to set and does not require the solution to be exchanged for up to six months by applying a special processing agent, a roller washing system, and an automatic drainage system.

X-rays are indispensable to the medical profession in diagnosing illnesses. The compact desktop CEPROS Q system was designed to automatically develop X-rays while being more environment friendly and having less environmental impact at work. Environmental impact reduction The CEPROS Q system is equipped with a fresh mix system that reduces oxidation and fatigue of the processing solution and a rack structure that limits the solution’s exposure to the air in the tank. Thus, Fujifilm succeeded in drastically reducing the amount of processing solution used, the amount of solution waste generated, and the amount of gas emitted from the solution.
28

Reduction in the Amount of Developer Waste Fluid

l

500 400 300 200

423.6

82% reduction

Toru Haginoya
Technical Associate Medical System Division, Information Products Marketing Division

Eiichi Okutsu
Senior Staff Ashigara Research Laboratories

Conditions: PX film (25.4 cm x 30.5 cm), Operation of 10 sheets/day for 12 months

100 0

76.2

Conventional Fujifilm system

CEPROS Q

Reduction in the volume of gas emitted from developer
• Sulfur dioxide: 1/30 or less of sulfur dioxide emitted from conventional developer (Detection limit of sulfur dioxide detector tube = 1.25 ppm or less) • Ammonic and acetic acid odors: 0

29

Design for Environment

Environment-friendly Products

Fuji Medical dry imaging system

DRYPIX 7000/DI-HL

Environment-friendly CTP processor

LP-940HII/LP-1310HII

Environment-friendly Products

The DRYPIX 7000/DI-HL is a completely dry, environment-friendly medical imaging film used to develop medical diagnosis images. Environmental impact reduction Fujifilm’s proprietary aqueous-coating technology for thermally processed photosensitive materials contains no organic solvents. Resource conservation Efficient use of resources through the dispersed processing of silver halide Energy conservation Reduction in power consumption while in power saving mode
Shoji Nanami
Research Associate (in charge of medical equipment) Miyanodai Technology Development Center

It is the computer-to-plate (CTP) printing and a processing system that uses no photo film that contribute to reducing solid waste and developer waste. By focusing on environmental friendliness and resource conservation, Fujifilm has succeeded in drastically reducing developer waste and lengthening product life. Resource and energy conservation 45% reduction in life cycle environmental impact (global warming impact, CO2 equivalent)*
*Compared to DT-1 + LP-940 H/LP-1310H

Katsutoshi Yamane
Research Associate (in charge of photosensitive materials) Ashigara Research Laboratories

Yasuhiro Yoshioka
Senior Research Associate (in charge of photosensitive materials) Ashigara Research Laboratories

Optimization of hardware and a developer replenishing method
For product optimization, Fujifilm relentlessly pursued the principle of developer replenishment and conceived of a structure that is free from the influence of CO2 in the air. The Company succeeded in creating a significantly long product life for a price. In the future, it is of utmost importance to determine where we should be heading by verifying the market.
Environmental impact (Tons of CO2)

Focusing on LCA data already in product planning
From the beginning of the product planning stage, a processor was designed with Companywide attention to improving LCA. Commercialization was examined only after the LCA data was presented. For the processor, an advanced activity control (AAC) replenishment system was developed. The AAC system automatically fills up the developer. The life of the product was dramatically increased by adopting technologies that improve the stability of the developer and thoroughly prevent the developer from deteriorating due to exposure to the air. By applying complex technologies to improve the developer and hardware, developer waste was reduced by half, and running cost was reduced 40%. We would like to continue conducting thorough market surveys to draw Yasufumi Morimoto Technical Associate up product plans that respond to customer Graphic Systems Division, Information Products needs and lives up to our reputation. Marketing Division
*CTP System

Development driven by cooperation among those in charge of photosensitive materials and equipment
In environmental terms, mainstream medical imaging systems shifted from using wet types to dry types. In 1999, Fujifilm launched the FMDP L dry laser imager, which had the world’s highest processing capacity at the time. The Company’s proprietary aqueous-coating technology, which contained no organic solvents, received remarkable recognition for its environmental friendliness. The DRYPIX 7000, equipped with upgraded coating technology, enabled the high-speed processing of a large volume of film (180 356 mm x 432 mm sheets per hour), with the first sheet coming out within approximately 65 seconds. Through repeated trial and error, Fujifilm developed a aqueouscoating technology that boasts both a stability of images and improvement in processing speed. In technical terms, effort was made to efficiently use silver by uniformly dispersing the silver halide used in the process. The odor emitted by organic solvents was eliminated, creating a cleaner work environment. As for its operation, a conveyance method was developed that conducts exposure and thermal processing simultaneously. In developing this unique method, the people in charge of developing photosensitive material and equipment worked closely together. It is this kind of drive to develop an environmentfriendly product that competitors cannot duplicate.

Life Cycle Environmental Impact of Dry Imagers (Global warming impact, CO2 equivalent)
Environmental impact (Tons of CO2)

16
15.0

Tadayuki Makino
Graphic Systems Division, Information Products Marketing Division

14 12 10 8 6 4 2 0 -2

Wet system FM-DPL DRYPIX 7000

19.1 3.6 2.5

81% reduction 31% reduction

2.9 2.0 0.78 0.50 0.36 0.78 0.50 0.36 0.03 0.03 0.03

3.1

Comparison of Estimated Life Cycle Environmental Impact over a 7-Year Period of Use (Global warming impact, CO2 equivalent)
60.6

Comparison of Reductions in the Amount of Replenisher

0.03 0.03 -0.56 -0.36 -0.26

70 60 50 40
32.5

Developing replenisher Rinsing replenisher Finishing replenisher

100%

Production Production (Raw Materials) (Product)

Distribution

Use

Disposal

Recycling

Strong odor

2

30 20 10

50%

Odor level

1

0 0

LP-1310H
(DT-1)

LP-1310HII
(DT-2)

Application using organic solvents
0

LP-1310H LP-1310HII

Data
Fujifilm aqueous-coating application product

-1

The CTP system is a printing system that prepares steel printing plates directly from DTP data created on a PC. This system does not need films for plate making and is effective for reduction in developer waste and test printing paper.

Conventional printing system

Film plate making

Exposure PS plate

Development

Printing

Odor of Photosensitive Materials at Room Temperature
Measured by the FF-1 odor tester manufactured by Shimadzu Corporation

**Pre-sensitized (PS) Plate
A PS plate is photosensitive material made out of aluminum and is necessary in the preparation of steel printing plates.

CTP system
CTP processor LP-940II/LP-1310II

Data
Exposure PS plate

CTP processor Development

Printing

Processless CTP System
The i-Presso MA is a next-generation completely dry CTP system* that does not use a developer. It exposes printing data directly to the CTP plates of a printer. Resource and energy conservation Significant reduction in environmental impact due to the elimination of automatic developing equipment and relevant chemicals with completely dry plate-making systems that do not need a developer. It was developed for the market with the need for a small number of copies, and the market was growing. This system has less environmental impact and better quality and functions thanks to Fujifilm’s high-performance materials and PS plate** manufacturing technology. Although this technology is still developing, it is without a doubt that such environment-friendly developer-free system will become the mainstream in the future. Koji Aoshima We therefore continue to further technological Printing Materials Research Laboratories innovation to respond to expanding needs. Yoshida-Minami Factory
Processless CTP system (i-Presso) Data
Exposure Printing

A new system that will become the mainstream in the future
Processless CTP system is a totally innovative method to be used

The biggest challenge in design was making the developer-free method compatible with the printing function. Specifically, it was the need to develop high-performance materials to replace the existing PS plates and image formation method. This will need to be the focus for future evolution as well.

Norio Aoshima
Printing Materials Research Laboratories Yoshida-Minami Factory

The image formation method, quality assurance system, and market for the launch were all new to me, and I learned much from this experience. I would like to continue developing new technologies that respond to the market that has the need to make numerous copies.

Toshifumi Inno
Printing Materials Research Laboratories Yoshida-Minami Factory

30

31

Design for Environment

Environment-friendly Technologies

Green Chemistry in Reducing the Organic Material Cost for Color Negative Film
Fujifilm products use various chemicals for specific purposes. In product development and manufacturing, especially in processes that handle the chemicals, the Company focuses on following an approach called “green chemistry,” which avoids using chemicals that may produce waste and avoids producing waste as much as possible in the design, synthesis, and application stages.

In addition, reanalyzing the process using organic chemicals, the 20 employees worked to improve the reaction rate and minimize the impurity discharge. As a result, they succeeded in switching the synthesis process to a streamlined processing method that, for instance, uses a catalyst without producing unstable intermediates. They also developed a formula that eliminates the purification step, which used to follow the reaction process conducted in several stages. This alone contributed to a significant reduction in environmental impact. A number of reaction processes helped achieve streamlined processing and elimination of the purification step, resulting in remarkable environmental friendliness as well as cost reduction. Thus, cost reduction and environmental impact reduction should be considered at the same time.

Environmental Forum 2003: To Promote Environmental Awareness and Environmental Protection Activities throughout the Company
In March 2003, Fujifilm held the Environmental Forum 2003 at the Ashigara Factory to share cutting-edge environmental technologies and information among administrative divisions, laboratories, and production divisions as well as to promote environmental awareness throughout the Company. Having formulated the Fujifilm Group Green Policy as part of our new environmental strategy in 2002, the participants addressed their efforts from a broader point of view and earnestly gave their opinions on the presentations. By holding the forum annually and inviting all Fujifilm Group companies to the forum, the Company continues its earnest efforts to share information and technologies and promote environmental awareness throughout the Group, aiming to achieve the priorities for implementation stated in the Fujifilm Group Green Policy.

Oral presentations on cutting-edge environmental technologies Eight presentations were made on technological issues, including energy-saving efforts for digital cameras and the introduction of LCA for products to cope with the Design for Environment scheme, which was to be applied to all Fujifilm products from April 2003. Reports were given on future improvements as well.
1. 2. 3. 4. 5. 6. 7. 8. Solvent substitution technology for base manufacturing VOC reduction technology at the Fujinomiya Factory Solvent reduction technology at the Odawara Factory Fuel conversion at the Fujinomiya Factory Establishment of a packaging material database Green Procurement at the Miyanodai Technology Development Center Technology for the practical application of lead-free solder Design for Environment for digital cameras

Environment-friendly Technologies

Naoki Nishizawa
Technical Section, Chemical Products Manufacturing Division Odawara Factory

Relationship between Cost Reduction Measures and Environmental Impact in the Manufacturing of Organic Chemicals ( :Cost reduction)

Cost Reduction Resulting in Significant Environmental Impact Reduction
Color negative film consists of TAC film, on which numerous kinds of chemicals are applied in layers. In 1999, top management gave the strict order to significantly reduce the cost of 21 organic chemicals used in the coupler, which is mixed in an emulsion for silver halide, adjustor, additives, and sensitizing dye. From that moment on, 20 employees from the Procurement Division, Ashigara Factory, and Odawara Factory had the most difficult of tasks. They had to reconsider the influence these chemicals had on product cost in terms of efficiency and determine if they were needed, in which case they were kept, or if they were not, in which case they were eliminated. As a result, the 20 employees were able to achieve an approximately 20% cost reduction by the end of 2002 and received special recognition by the Company. Product cost comprises the cost of raw materials and other relevant expenses. Among raw materials, solvents and catalysts are often disposed of as waste after use. Therefore, their cost can be reduced by using them more efficiently and through recycling. From another standpoint, the efficient use of raw materials contributes to more resources being saved and less waste being produced while improved productivity results in the more efficient use of energy, i.e., energy conservation. In this way, efforts started by the 20 employees to reduce cost also worked toward environmental friendliness in the end.

Promoting GSC as a Basis for Research and Development
Green and Sustainable Chemistry (GSC), which refers to user- and environment-friendly chemical engineering, is attracting attention in the chemical industry. GSC aims at protecting people and the ecosystem by accelerating the development of innovative chemical technologies that minimize environmental impact throughout a product’s life cycle, from research and development to production, use, and disposal. Fujifilm uses GSC as the basis for its own research and development activities. In March 2003, GSC Tokyo 2003 was held with about 760 participants from 20 countries throughout the world. Ashigara Research Laboratories gave a presentation on its study called Development of the aqueouscoated photothermographic material. Fujifilm continues to enthusiastically promote GSC-oriented research and development activities, such as those for energy conservation and waste and environmental impact reduction.

Raw material
Main material Solvent ( waste) Catalyst ( waste) Increased collection rate Analysis of reaction mechanism
Reaction rate Impurities

Cost
Indirect cost Manufacturing cost Improved productivity

Change in synthesis route Analysis of reaction mechanism Streamlined processing and the elimination of the purification step Reduced waste and enhanced recycling Reduced power (energy conservation)

Poster sessions to explain environmental protection activities In the poster sessions, 43 exhibitors gave presentations accompanied by explanations from the person in charge. The presentations covered a broad range of environmental protection activities, including LCA examples of products and the introduction of the chemical information database.

Reduction in environmental impact

Hirohiko Tsuzuki, a Fujifilm employee, giving a lecture at the GSC Tokyo 2003

32

33

Environmental Performance

Green Procurement and Resource Conservation
Reinforcing Green Procurement
The Fujifilm Group formulated basic rules for Design for Environment and implemented them in fiscal 2002. To securely reduce the environmental impact of its products pursuant to these basic rules, the Group strives to reduce the environmental impact of the raw materials, parts, and packaging it procures as well as the impact caused by the suppliers of such raw materials, parts, and packaging.

Promoting Green Purchasing
Fujifilm wishes to acquire ISO 14001 certification as a means of promoting Green Purchasing. To this end, the Company, led by the Green Purchasing Promotion Committee, strives to seek out environment-friendly products and share information with its business sites. As a result, Fujifilm achieved a 99% Green Purchasing rate at the end of fiscal 2002, exceeding its target of 90%. The Company shall continue its efforts to achieve 100% by the end of fiscal 2003.
Green purchasing rate
This rate is the proportion of funds spent on environmentally friendly (green) products as a proportion of total purchasing expenditures. The green purchasing rate applied to products such Green purchasing search as office paper, printing paper, copiers, printers, fax page on the Ashigara Facmachines, PCs, stationery, office equipment, and tory Web site general supplies.

1. Environmental Impact Reduction at Procurement
In fiscal 2002, the following Green Procurement Standards were created for all Fujifilm Group companies.
All raw materials, parts, and packaging that are procured shall satisfy the following conditions for Fujifilm’s chemical management categories: 1) No raw material, part, or packaging shall contain chemicals classified as prohibited. 2) If a raw material, part, or packaging contains a chemical that should be reduced or monitored, the quantity of such chemical shall be identified and controlled.

Efficient Use of Resources
Fujifilm strives to reduce the amount of limited resources used through efficient and effective utilization. In fiscal 2002, primary resources used at Fujifilm manufacturing facilities are shown below. ■ Input of primary materials

Fujifilm joined the Green Procurement Survey Standardization Council, which was established by the Japan Electronics and Information Technology Industries Association (JEITA), to help standardize surveys concerning the 28 chemical groups established by the Council. In addition, the Company promotes activities that respond to the Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment (RoHS) Directive* that was put into effect by the European Union (EU) in February 2003.

(Data from Fujifilm’s 6 facilities in Japan)
Silver (thousand tons) Gelatin (thousand tons) PET (thousand tons) TAC (thousand tons) Aluminum (thousand tons) 0.87 (down 13.5%) 3.6 (down 7.1%) 51.2 (—) 15.3 (up 29.4%) 48.3 (down 0.4%)

2. Reduction in Environmental Impact Caused by Suppliers of Raw Materials, Parts, and Packaging
The Green Supplier Standards are as follows:
1) Suppliers shall be ISO 14001 certified or scheduled to be certified by an authorized certification organization. 2) If a supplier is not certified, it shall observe all environmentrelated laws and regulations and satisfy at least 70% of the 12 articles of requirement for environmental protection and chemical management provided by Fujifilm. Moreover, the supplier shall not deal in any chemicals specified by Fujifilm.

As an example of past efforts to conserve resources, the quantity of silver used in making photosensitive materials, one of our primary products, was cut by half in the manufacturing of color negative film and one-third for color paper over the last twenty years. ■ Primary packaging

(Data from Fujifilm’s 6 facilities in Japan)
The packaging database, which was put into full-scale operation in fiscal 2002, makes it easier to calculate the quantity of packaging materials used by product or product category. At present, a study is underway to determine a numerical target for environmental impact reduction in terms of the amount of packaging used, based on the figures obtained. In fiscal 2002, efforts were made to reduce the use of paper packaging and other paper materials. This was done mainly by switching from small paper packaging to soft, light-weight plastic.
Amount of Container Packaging Materials Discharged
(Thousands of tons)

In fiscal 2002, Fujifilm conducted a survey on 489 suppliers regarding their efforts to reduce environmental impact. According to the survey, 94% of respondents said they reduced their environmental impact, which is four percentage points higher than the original target of 90% and a 10% increase from that in the previous year. Fujifilm is aiming for 100% by the end of fiscal 2003.

10

9.49

9.09 9.38

*RoHS Directive
This is the abbreviation of the Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment, the EU directive stipulating that from 1 July 2006 new electrical and electronic equipment must not contain hazardous substances, namely, lead, mercury, cadmium, hexavalent chromium, polybrominated biphenyls (PBB) or polybrominated diphenyl ethers (PBDE).

8 6 4
5.59 5.09 4.86 3.60 3.40 2.40

6.79

6.43 5.12

Booklet distributed to suppliers, asking for their cooperation in a survey regarding Green Procurement

2 0

0.69 0.77 0.66 Plastic film/ sheets Plastic moldings Metal materials Paper containers and paper materials Cardboard

Fiscal 2000 Fiscal 2001 Fiscal 2002

34

Energy Conservation and Reducing CO2 Emissions
Promoting Energy Conservation
In fiscal 2002, Fujifilm’s six facilities in Japan recorded a 4.8% increase in energy consumption from that in the previous year due to increased production, changes in the items produced, and an increase in the number of improved prototypes made. Despite an expected increase in production in fiscal 2003, Fujifilm continues its efforts to reduce energy consumption and energy cost units by streamlining the production process and improving production technologies. In fiscal 2002, the measures shown below were carried out by Fujifilm’s six facilities in Japan in an attempt to achieve an energy conservation equivalent to 29.1 thousand tons of CO2.
Trends in Energy Consumption in Terms of Crude Oil (Data from Fujifilm’s 6 facilities in Japan)
(Thousand kl)

Green Procurement and Resource Conservation/Energy Conservation and Reducing CO2 Emissions

400 300 200

Energy Consumption Energy source unit index (fiscal 1990 = 100) 102.3 100.0 98.5 98.8

(Index)

125 108.5 101.8 97.6 95.3 93.0 96.6 95.6 101.7 91.2 100

75 100 271.3 0 1990 272.7 1991 276.8 1992 274.6 1993 266.2 1994 283.5 1995 283.2 1996 293.5 1997 297.9 1998 310.5 1999 319.0 2000 326.9 342.7 50 (FY) 2001 2002 Consolidated data

Breakdown of Energy Used (Data from Fujifilm’s 6 facilities in Japan)
Unit Electricity purchased Heavy oil A Heavy oil C Utility gas LPG Kerosene Solar energy Million kWh Thousand kl Thousand kl Thousand m3 Tons Thousand kl Thousand kWh Fiscal 2000 Fiscal 2001 Fiscal 2002

■ Measures taken in fiscal 2002 (At Fujifilm’s 6 facilities in Japan)
• Energy-saving devices installed at key facilities or key facilities becoming more energy efficient • Fuel switched to natural gas or plastic waste (recycled as fuel) • Operating conditions of facilities modified • Energy used in lighting and air-conditioning used more efficiently • Transportation efficiency improved

253 163 82 51 175 2 19

247 178 75 26 210 2 20

281 176 79 5,435 162 2 19

Trends in CO2 Emissions (Data from Fujifilm’s 6 facilities in Japan)
(Thousand tons of CO2

In fiscal 2003, as part of its extensive capital investment, Fujifilm introduced cogeneration facilities that use natural gas to the Odawara Factory. The factory is planning to reduce energy consumption 8.6% in fiscal 2004, when the cogeneration facilities are in full-scale operation, from that in fiscal 2002. In line with its energy conservation measures, Fujifilm is striving to reduce CO2 emissions. In fiscal 2002, CO2 emissions increased 3.8% from that in the previous year for the same reasons energy consumption increased as mentioned above. In response, Fujifilm is, among other measures, proceeding with a project to switch the fuel used by the private power generation facilities at its factories from heavy oil to natural gas, which will significantly contribute to reducing CO2 emissions.

1,100 700 600 500 400 300 200 100 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
(FY

635.6 581.4 590.9 604.2 583.1 583.2 601.4 589.9 597.6 593.5

656.6

674.1

699.4

Note: The above figures were obtained by using the calculation method and emission coefficient announced in a bill to amend the Law Concerning the Promotion of Measures to Cope with Global Warming, which was promulgated in December 2002. CO2 emissions are calculated assuming that thermal power generation by power companies is reduced because of Fujifilm’s use of a cogeneration system. (CO2 coefficient = 0.602 kg/kWh)

Switching to Natural Gas
Fujinomiya Factory (Shizuoka Prefecture)
In February 2003, the Fujinomiya Factory switched from using heavy oil to natural gas at its private power generation facilities. Continuing with this switch, Fujifilm is planning to switch half of the fuel used by the factory to natural gas by the end of fiscal 2010. This effort was Webcast on Kankyo-goo TV (eco.goo.ne.jp /goo-tv/index.html: Japanese only).
Ceremony marking the completion of the Fujinomiya Factory’s fuel conversion to natural gas

Reducing Water Usage
The essence of Fujifilm’s environmental protection activities is to keep water and air clean. Careful attention is paid to the amount of water used in production activities. Despite an increase in production in fiscal 2002, water usage was successfully reduced, as shown below. Within the priorities for implementation and targets of the Fujifilm Group Green Policy, water usage is listed as an environmental impact that needs to be reduced to improve eco-efficiency. Therefore, Fujifilm further promotes efforts to accomplish this.
Water Input
(Data from Fujifilm’s 6 facilities in Japan)
(Millions of tons)

Water Recycled
(At the Fujifilm Miyanodai Technology Development Center)
(Thousands of tons)

80 60 40
Amount input Amount discharged

20

54.2

48.7

51.8 46.8

50.5

45.5 10 4.4 0 4.4 3.6 2002

Natural gas facilities at the Fujinomiya Factory
Odawara Factory (Kanagawa Prefecture) April 2003 Introduction of a natural gas system in cooperation with Odawara Gas January 2004 Full conversion to a natural gas system (scheduled) Ashigara Factory (Kanagawa Prefecture) May 2004 Fuel conversion to natural gas with the installation of a gas pipeline in cooperation with Tokyo Gas and Fuji Xerox, which has a factory in the same area Yoshida-Minami Factory (Shizuoka Prefecture) Preparation for fuel conversion underway

20 0 2000 2001 2002

2000

2001

35

Environmental Performance

Reducing Chemical Emissions

Reducing VOC Emissions
Fujifilm’s target was to reduce the Company’s fiscal 1996 level of manufacturing-related VOC emissions 50% by fiscal 2002. Through determination and hard work, Fujifilm reduced its VOC emissions approximately 60% in fiscal 2002, significantly surpassing its target. Of the 18 items that need to be reduced, eight are designated by the PRTR Law* and ten are subject to voluntary control by Fujifilm. In fiscal 2002, the target year, Fujifilm’s VOC emissions totaled 1,800 tons, a 58% reduction from the 4,300 tons in fiscal 1996. As for the items designated by the PRTR Law, Fujifilm achieved a 72% reduction from its fiscal 1996 level.
VOC Emissions That Were Significantly Reduced and Amount of Reduction
(Fiscal 2002 levels compared to fiscal 1996 levels) (Data from Fujifilm’s 6 facilities in Japan)

Volume of Atmospheric Volatile Organic Compound (VOC) Emissions into the Environment (Data from Fjifilm’s 6 facilities in Japan)
(Thousand tons)

Substances Designated by PRTR Law and Substances Subject to Voluntary Control (Fiscal 2002, data from Fujifilm’s 6 facilities in Japan)
VOC substance subject to measurement of total atmospheric emissions.
Government Ordinance No. Amount Emitted Amount Used Into the atmosphere (rel. to prev. year) Into public water Into soil
Amount Taken to Landfill
(Includes landfill not at factories)

(Unit: ton)
Amount Transferred Amount Amount Amount Outside Consumed1 Treated To ground- the facilities Recycled water (excluding groundwater)

Reducing Chemical Emissions

6 5

6.1

Volume of atmospheric emissions

Index

100
4.4 4.3 3.3

58% reduction
12
100
3.1 3.0 3.1 2.8

Substance

4 3 2 1 0 1994 1995 1996 1997 1998

Acetonitrile Aminoethanol n-Alkylbenzenesulfonic acid and its salts Antimony and its compounds Ethylene glycol Ethylenediamine Ethylenediamine tetra-acetic acid Xylene Silver and its compuounds (water-soluble) Glyoxal Glutaraldehyde Cresol Chloroform Vinyl acetate Dichloromethane N,N-Dimethylformamide Styrene Dioxins (unit: mg-TEQ)2 Terephthalic acid 1,3,5-trimethylbenzene Toluene Barium and its water-soluble compounds Hydrazine Hydroquinone Pyridine Di-n-butyl phthalate Poly (oxyethylene) alkyl ether Poly (oxyethylene) octylphenyl ether Poly (oxyethylene) nonylphenol ether Formaldehyde Maleic anhydride Methacrylic acid Methyl methacrylate Tris (dimethylphenyl) phosphate Butyl acrylate Acetone Butyl acetate Ethyl acetate Cyclohexane Tetrahydrofuran Triethylamine n-Hexane Butyl alcohol Propyl alcohol Methyl alcohol Methyl ethel ketone Methylenebis (phenyl isocyanate) Ammonia Nitric acid Sulfuric acid Hydrogen bromide N-Methyl pyrrolidone Hydrogen iodide Aluminium Sulfate Triethanolamine

261.6 5.3 2.8 10.4 1,4407.7 1.1 3.2 27.5 1,791.5 2.3 1.5 1.3 3.5 1.6 377.2 36.3 7.4 0.0 36,095.1 1.4 802.8 11.0 2.4 123.2 4.0 8.3 3.7 3.4 5.7 2.6 1.6 14.9 8.2 1.1 8.9 943.2 400.5 1,785.7 1.6 164.1 34.0 284.9 194.8 248.9 6,250.9 26.8 87.3 2,500.9 2,204.7 1.2 52.7 22.0 43.6 2.5

6.4 (-1.4) 0.0 (0) 0.0 (0) 0.0 (0) 1.4 (0.3) 0.0 (0) 0.0 (0) 2.2 (-23.4) 0.0 (0) 0.0 (-2.3) 0.0 (0) 0.0 (0) 0.6 (0.6) 0.0 (0) 285.1 (-3.0) 4.8 (2.1) 0.0 (0) 1.8 (1.8) 0.0 (0) 0.0 (0) 6.6 (-7.1) 0.0 (0) 0.0 (0) 0.0 (0) 0.0 (0) 0.0 (0) 0.0 (0) 0.0 (0) 0.0 (0) 0.0 (0) 0.0 (0) 0.0 (0) 0.0 (0) 0.0 (0) 0.0 (0) 120.6 (-9.3) 4.6 (2.7) 160.9 (-155.8) 0.0 (0) 0.0 (0) 2.6 (2.1) 7.4 (0.9) 15.4 (-24.2) 9.12 (-47.2) 88.9 (-73.5) 0.0 (0) 0.2 (-1.7) 0.3 (-0.1) 0.0 (0) 0.0 (0) 0.4 (0) 0.0 (0) 0.0 (0) 0.0 (0)

0.0 0.0 0.0 0.0 18.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.0 0.0 0.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.4 0.0 0.1 0.0 0.0 0.0 0.1 0.0 0.0 92.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

0.0 5.2 2.8 9.8 14,031.6 1.1 3.2 0.0 1,636.6 2.2 1.5 1.3 0.0 0.0 53.5 0.0 7.4 0.0 36,095.1 1.4 0.9 8.6 0.0 117.0 0.0 7.5 3.6 3.0 4.7 2.3 1.2 4.5 8.2 1.1 8.9 51.5 0.0 66.5 0.0 0.0 0.0 0.0 162.2 0.0 36.9 0.3 26.8 3.2 532.6 4.6 0.0 0.0 0.0 16.8 2.5

1.6 0.0 0.0 0.1 102.9 0.0 0.0 25.3 0.0 0.0 0.0 0.0 0.6 0.0 0.8 2.5 0.0 0.0 0.0 0.0 264.8 2.4 2.4 5.8 0.0 0.7 0.0 0.4 1.0 0.1 0.0 0.0 0.0 0.0 0.0 324.0 67.3 809.7 1.3 0.0 31.4 2.3 3.7 62.2 2,199.6 2,142.4 0.0 83.2 1,964.1 1,749.6 0.0 28.4 0.0 26.9 0.0

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.9 0.0 0.0 0.0 0.0 0.0

253.6 0.0 0.0 0.6 253.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2.2 1.6 23.8 29.0 0.0 0.0 0.0 0.0 215.3 0.0 0.0 0.0 4.0 0.0 0.0 0.0 0.1 0.2 0.4 10.4 0.0 0.0 0.0 437.8 168.8 748.5 0.3 164.1 0.0 275.1 13.4 177.5 1,218.9 714.7 0.0 0.7 3.9 65.8 1.2 23.9 22.0 0.0 0.0

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 154.9 0.0 0.0 0.0 0.0 0.0 14.0 0.0 0.0 0.0 0.0 0.0 315.1 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.0 0.0 7.8 159.9 0.0 0.0 0.0 0.0 0.0 0.1 0.0 373.3 3,304.7 0.0 0.0 0.0 383.8 0.0 0.0 0.0 0.0 0.0

16 24
42
1.8

50
Target value

25 43 46

1.5

1999 2000

2001

2002

2004 (FY)

47 63

PCB Management
According to the Law Concerning Special Measure against PCB Waste, which was enacted in 2001, national and prefectural governments are required to draw up plans for the treatment of polychlorinated biphenyls (PCBs) and establish an appropriate system that includes building and improving treatment facilities. Fujifilm carefully controls the PCBs it has in storage and will start treatment on the chemical compound as soon as an appropriate method is found. In the past, the Company used PCBs as a coupler solvent oil for previous pressure-sensing (noncarbon) paper but switched to PCB-free pressure-sensing paper in 1971. The Fujinomiya Factory stores and manages 10,400 m3 of sludge that contains approximately 1.5 tons of PCB. The PCB was the result of manufacturing pressure-sensing paper. Fujifilm works with Fujinomiya City authorities in conducting twice-yearly surveys to ascertain whether PCBs in observation wells have leaked into the groundwater or not. Fujifilm stores and manages equipment, etc., that contain PCBs, shown below.
Amount of Equipment, etc., Containing PCB That Is Stored and Controlled (Data from
Fujifilm’s head office and 6 facilities in Japan)
Category of equipment, etc., that contains PCB High-voltage transformers and capacitors Waste PCB oils, etc. Stabilizers for fluorescent lamps Low-voltage capacitors not used in fluorescent lamps Storage/ Control Status

64 65 66 67 95 102 145 172 177 179 205 224 227 243 253 254 259 270 307 308 309 310 313 314 320 353 — — — — — —

Category

Substance

Amount Reduced (tons)

Substances designated by PRTR Law Dichloromethane Substances subject to voluntary control by Fujifilm Methyl alcohol Ethyl acetate Methyl ethyl ketone Acetone

750 788 372 237 248

To reach its reduction target for VOC emissions, Fujifilm is promoting two key measures, as follows.
1. Reducing the Amount of VOCs Used (Formula Improvement)
Cooperation between laboratories and manufacturing divisions • Switching from organic solvents to aqueous solvents • Modifying formulas to reduce the proportion of organic solvents used • Maintaining product quality and examining eligibility for manufacturing

2. Reducing the Amount of VOC Emissions into the Air (Facility Optimization) Optimizing facilities that are able to cope with organic solvent disposal and process requirements
• Recovering organic solvents from the air discharged from the manufacturing process and reusing them • Utilizing exhaust as a heat source in boilers • Breaking down VOCs into water and CO2 using regenerative combustion equipment
Regenerative combustion equipment at Ashigara Factory

222 1.5 tons 7,245 199

— — —

PCB storage at the Asaka Reserch Laboratories

— — — — —

5,012.8 1,091.9 (-653.1)

Fujifilm is promoting various measures to reach a new target listed in the Fujifilm Green Policy, namely, reducing the amount of VOCs used to 50% of the fiscal 2000 level by fiscal 2004. Furthermore, the Company is planning to set a consolidated target on the amount of VOC emissions to be reduced by the end of fiscal 2003.
36

*PRTR Law
This refers to a law promulgated in July 1999 (the Pollutant Release and Transfer Register Law). The law is aimed at reducing the amount of dangerous chemicals released into the environment and helping assist efforts to eliminate threats to the environment through the improvement of selfmanagement by businesses that manufacture and use chemical substances. As of April 2001, it is mandatory for businesses that handle chemical substances to reduce the emission of applicable chemical substances. As of April 2002, the submission of activity reports to the government is mandatory.

— — — — — — —

Under the PRTR Law, substances of which 5 tons or more are used per year (initially per two years) at a given factory must be reported to the Ministry of the Environment. However, in this table, we have listed substances handled in an amount of at least one ton per year. The above figures are rounded off; therefore, the mass balance may not match. 1. “Amount consumed” refers to the amounts contained in or associated with products and the amounts decontaminated. 2. Refers to dioxins emitted by equipment used to incinerate sludge that contains silver. The measured amounts are well within the legally permitted range.

37

Environmental Performance

Less Emissions into the Air and Water

Environmental Monitoring
To control emissions into the environment, Fujifilm has set its own standards, which are stricter than those provided by laws and regulations, in its implementation of thorough selfmanagement. In addition, Fujifilm monitors the concentration of chemicals that must be included in reports for submission pursuant to the PRTR Law. The monitoring take place in the vicinity of the factories that use such chemicals. In addition to following the Environmental Reporting Guidelines of the Ministry of the Environment, a detailed survey on chemicals that have no record of being used is conducted to strengthen the monitoring of chemical concentrations in the soil.

Efforts Made by Factories to Reduce Emissions into the Air
Fujifilm, especially its six facilities in Japan, strives to reduce the amount of chemical emissions into the air by such means as switching to natural gas, which contains extremely little sulfur. The Company has had good results. Its recent efforts and future plans are as follows.
1995 Boiler fuel used at the Odawara Factory changed from A-type oil to Special A-type. Atmospheric emissions of SOx reduced. At the Ashigara Factory, we installed a high collection-efficiency dust collector in the chimney as a measure to prevent soot emissions. 1998 We installed a wet-type electrical dust collector in the exhaust gas desulfurizer at the Fujinomiya Factory. Atmospheric emissions of SOx redused. 2000 Solvent incinerator at the Odawara Factory closed down. Atmospheric emissions of SOx reduced. 2002 Introduction of natural gas at the Fujinomiya Factory as a way of reducing CO2 and SOx emissions 2003 Introduction of natural gas at the Odawara Factory as a way of reducing CO2 and SOx emissions 2004 Introduction of natural gas at the Ashigara Factory as a way of reducing CO2 and SOx emissions

Trends in Air Pollutant Emissions (Data from Fujifilm’s 6 facilities in Japan)
Trend in SOx Emissions
(Tons)

Plan

Result

Trend in NOx Emissions
(Tons)

Trend in Soot Emissions
(Tons)

Specified CFCs* Emitted into the Air
(Fiscal 2002) (Tons)

1,000

1,000

60

2.0

1.8

800

800 674 703

760 40

600 473 400 472 396

600 28 400 20 20 22 1.0

200

200 0.008

0 2000 2001 2002

(FY)

0 2000 2001 2002

(FY)

0 2000 2001 2002

(FY)

0 CFC-11 CFC-12

* Although specified CFCs are used as catalysts in some freezers for air conditioning, the amount used is gradually being reduced.

Trends in Water Contaminants Discharged (Data from Fujifilm’s 6 facilities in Japan)
Trend in COD** Discharged
(Tons)

Trend in Total Nitrogen Discharged
(Tons)

Trend in Total Phosphorus Discharged
(Tons)

400

400 356

10

300

300

275

285

7 6

204 200 160 150 200 5

5

100

100

0 2000 2001 2002

(FY)

0 2000 2001 2002

(FY)

0 2000 2001 2002

(FY)

**Chemical Oxygen Demand (COD)
COD is an indicator that helps determine water pollution levels. It is a measure of the amount of oxygen consumed by oxidants in wastewater.

38

Preventing Pollution

Surveys on the Pollution of Soil and Groundwater and Resultant Cleanup Efforts
Fujifilm conducts voluntary environmental surveys on the pollution of soil and groundwater. Chemicals that are used at production sites and subject to environmental limits are strictly controlled in terms of use, storage, and discharge into water. Periodical monitoring is carried out on groundwater quality so that a quick response can be given in times of emergency. The results of voluntary surveys conducted on Fujifilm Group companies, mainly at their production sites, are shown below. The concentration of some of the chemicals found in the soil at the Ashigara and Odawara factories exceeded environmental limits. Both factories immediately reported the finding to the administrative authorities and held public meetings to explain the situation to local residents. The factories then removed the contaminated soil and replaced it with uncontaminated soil. (Detailed data is given in Fujifilm Environmental Report 2002 Edition.) Fuji Xerox’s Iwatsuki Plant and Takematsu Center completed a similar cleanup. In October 2000, Fuji Photo Optical Co., Ltd., conducted
Business Site Fuji Photo Film Co., Ltd. Ashigara Factory Fujinomiya Factory Odawara Factory Yoshida-Minami Factory Miyanodai Technology Development Center Asaka Technology Development Center Fuji Xerox Co., Ltd. Ebina Center Iwatsuki Center Takematsu Center Nakai Research Center Facilities of affiliated companies (3 sites) Fuji Photo Optical Co., Ltd. Okaya Fuji Koki Co., Ltd. Mito Fuji Koki Co., Ltd. Sano Fuji Koki Co., Ltd. FUJIFILM ARCH Co., Ltd. Fuji Photo Equipment Co., Ltd. FUJIFILM PHOTONIX Co., Ltd. FUJIFILM Microdevices Co., Ltd. Fuji Technics Co., Ltd. Fujicolor Service Co., Ltd. Osaka laboratory Other offices (9 sites) F.I.T. Co., Ltd.
November 2002 November 2002 June 2001 Contaminated (soil) Not contaminated Not contaminated May 1998 March 1996 July 2000 August 1998 March 2002 April 2001 November 1998 November 1997 September 1999 November 2001 April 2002 October 2001 October 2001 March 2002 Not contaminated November 2001 March 2001 June 2001 March 2001 March 2001 December 2000 Contaminated (soil) Not contaminated Contaminated (soil) Not contaminated Not contaminated Not contaminated
Date Survey Completed

a voluntary survey of the groundwater under its premises and detected tetrachloroethylene and trichloroethylene in excess of the environmental limit. Since then, the company has conducted periodic cleanup activities, inspected the wells of residents living near the company, and kept the local community abreast of the situation. The background and progress of these measures can be found at Fuji Photo Optical’s Web site (www.fujinon.co.jp/jp/news/repo.htm: Japanese only). Fujicolor Service Co., Ltd., has conducted voluntary surveys since fiscal 2001. In one such survey, the company discovered that the total cyanide, total mercury, and lead concentration in the soil at its Osaka Plant, in Sakai, exceeded environmental limits. In January 2003, Fujicolor Service reported its findings to the municipal government, informed the local residents’ association of the situation, and immediately took appropriate measures to clean up the contamination. Although the Company has traced the source of the cyanide to a possible leakage that occurred in the past, its has not yet been able to trace those of the mercury and lead. The soil was replaced to eliminate further contamination by total cyanide and total mercury and paved or covered with turf to prevent the lead from spreading. These measures were completed by April 2003. No contamination of groundwater was found in the vicinity of the plant.
Kind of Contaminant
B B

Less Emissions into the Air and Water/Preventing Pollution

Contamination

Cleanup Method
Replacing contaminated soil Replacing contaminated soil

Progress of Cleanup
Completed March 2002 Completed January 2002

Contaminated (soil/groundwater) Contaminated (soil) Not contaminated Not contaminated Contaminated (groundwater) Not contaminated Not contaminated Not contaminated Not contaminated Not contaminated Not contaminated Not contaminated Not contaminated

A B A B

Soil Purification Pumping up contaminated water Replacing contaminated soil

Completed March 2002 Completed March 2002 Completed July 2001

A

Pumping up contaminated water

In progress

B

Replacing contaminated soil

Completed April 2003

A = VOCs B = Heavy metals

39

Environmental Performance

Waste Reduction and Zero Emissions

Maintaining Zero Emissions*
Aiming at establishing a recycling-based society, Fujifilm— led by its Zero Emissions Promotion Committee—promotes measures to achieve zero emissions. To this end, the Company strives for the 100% recycling of all waste materials generated by its business activities into reusable resources and the total elimination of landfill treatment sites. After achieving zero emissions at all production sites in fiscal 2001, Fujifilm went on to do the same at all Offices, Sales Offices, and the Head Office in fiscal 2002. The Company is planning to include all Group companies in Japan by the end of fiscal 2003. Despite the efforts of respective sites, there was a 5.5% increase in the amount of waste generated in fiscal 2002 due to increased production and a higher number of improved prototypes. In fiscal 2003, more effective measures will be drawn up and implemented through the open sharing of views among business sites.

Main Recycling Methods
Waste Product
Plastics (discrete) Plastics (mixed) magnetic tape Filters Aluminum hydroxide
Inorganic sludge/grinding fluid

Zero Emissions
Recycling Method

Category
Facility

Business Site
Yoshida-Minami Factory Asaka Research Laboratories

Pallets, tubing, clothing, thermal insulating material, etc.

Date Zero Emissions Achieved
March 2001 March 2001 December 2001 January 2002 March 2002 March 2002 March 2003 March 2003 March 2003 March 2003 March 2003 March 2003 March 2003

Blast furnace agents Blast furnace agents Blast furnace agents Alumina
Cement, paving material, construction material

Fujinomiya Factory
Miyanodai Technology Development Center

Ashigara Factory Odawara Factory Head office, Office, Sales office Tokyo Head Office Osaka Office Sapporo Sales Office Sendai Sales Office Nagoya Sales Office Hiroshima Sales Office Fukuoka Sales Office

Organic solvents Acids/Alkalis Mixed flammable waste Fluorescent lamps Batteries
Leftover food, fresh garbage, organic sludge

Paint thinners Neutralizers
Solid fuels, power generator/ water heater manufacturing

Glass wool, mercury Zinc, steel refining Fertilizers, fodder Recycled paper Metal refining

Documents, empty cartons
Scrap metal (steel, aluminum, copper, etc.)

Note: Due to the priority givein to safety by Fujifilm, some infectious waste and waste reagents used in research are excluded from the zero emissions targets.

Note: The dates givin are for when systems used to attain zero emissions were put in place.

Changes in the Amount of Waste Material Disposed of in Incinerators and Landfills (Data from Fujifilm’s 6 facilities in Japan)
(Thousand tons)

Breakdown of the Recycling Process (Fiscal 2002)
Recycling at Company facilities (0.1%)

80 70 60
51.7 58.4 53.5 53.9 93 92 90 86 86 27.3 28.9 100 98
Recycleing rate (%)

100

Recycling entrusted to outside companies Thermal recycling** (12.3%)

50 40 30 20 10 0
1996 1997 1998 9.6 8.9 6.9

Incinerator/ landfill waste disposal at zero

90
Recycling entrusted to outside companies Other than thermal recycling (87.6%)

30.5

80
6.4 4.5 0.6 1999 2000 2001
Zero emissions reached by all Fujifilm facilities in Japan by the end of fiscal 2001

Waste materials generated Amount of waste materials disposed of in incinerators and landfills Recycleing rate***(right axis)

0 2002
(FY)

70

*** Although valuable materials were included in waste in the data for fiscal 1999 and earlier, the data for fiscal 2000 and onward was aggregated only for valueless materials disposed outside Company facilities. This year, categories for waste at each facility were reviewed and standardized. Therefore, the figures shown above are slightly different from those of the previous year.

*Zero Emissions
To realize a society in which resources are conserved, organizations take various measures to eliminate the generation of waste. These measures include the use of waste products as new raw materials and the generation of energy from refuse. At Fujifilm, Zero Emissions is defined as the 100% recycling of waste generated from business operations as well as the elimination of the incineration or landfill disposal of waste.

**Thermal Recycling
Thermal recycling is the generating of heat by burning waste or the turning of waste into solid fuel or oil.

40

Environmental Impact Reduction in Distribution
Efforts by FUJIFILM Logistics Co., Ltd.
Reducing CO2 and Other Emissions by Improving Transportation Efficiency
FUJIFILM Logistics, which is in charge of distribution for the Fujifilm Group, strives to reduce the amount of exhaust produced in the transport business consigned to supporting companies and considers this to be an important environmental issue. In fiscal 2002, FUJIFILM Logistics acquired ISO 14001 certification and focused on further improving the reduction rate of its CO 2 emissions. With a total of 115 million tons/km being transported, FUJIFILM Logistics succeeded in reducing CO2 and other emissions by making the transportation of goods more efficient, as follows:
• Promoting two-level loading • Decreasing the number of vehicles in use by loading them more efficiently • Reconsidering the number of deliveries, etc.

Waste Reduction and Zero Emissions/Environmental Impact Reduction in Distribution

Reduction in Emissions of CO2, etc.
Fiscal 2001 Total CO2 emissions (tons of CO2/year) (A)
Reduction in CO2 emissions due to improved shipping efficiency (tons/year) (B)

Fiscal 2002 17,524 209.2 1.2% 137.5 10.5

19,841 115.7 0.6% 156.3 12.0

Rate of reduction in CO2 emissions (%) = B/(A+B)x100 NOx emissions (tons/year) PM emissions (tons/year)

Reduction due to improved shipping efficiency 115.7 tons

Reduction due to decreased shipping volume 2,108 tons Reduction due to improved shipping efficiency 209.2 tons

Total CO2 emissions 19,841 tons

Total CO2 emissions 17,524 tons

Fiscal 2001

Fiscal 2002

Recycle and Reuse of Packaging Materials for Export
Reuse of steel containers
In the past, packaging for X-ray film stock and LCD film stock (bulk rolls) were made of wood and paper, which made reuse impossible. The packaging was disposed of at the site where they were opened. The reuse of packaging was made possible by using foldingtype steel containers. After being used multiple times, the steel containers are recycled as metal materials.

Fujinomiya Factory Manufacturing

Packaging Center Packaging

Factories in Europe Processing

Reuse flow of steel containers

Folding type

Roll core

Reuse flow of cardboard boxes

Reusing cardboard boxes to return roll cores
Roll cores of X-ray film stock (bulk rolls) sent to factories in Europe are packed in cardboard boxes and returned to the Packaging Center to be reused at the Fujinomiya Factory. In the past, the cardboard boxes were recycled into paper, but now they are loaded into containers along with raw materials to be exported (provided there is room) and returned to factories in Europe to be reused.

Factory in the United States

Carrying efficiency increased 46%

Increased efficiency thanks to better loading system
To collect U.S. factory pallets used to carry color photo base paper, tall containers* are used and a better loading method is employed, resulting in a 46% increase in the carrying capacity of each container. This has led to the need for fewer containers, a reduction in CO 2 emissions, and more efficient transportation over land.

*Tall containers: Containers that are 30-cm taller than standard-size containers and used to carry tall, voluminous freight

41

Environmental Performance

Environmental Performance of the Fujifilm Group
Consolidated Data of Environmental Performance
Item
Amount of waste generated Amount of waste incinerated or used as landfill Total VOC emissions CO2 emissions Amount of water input Amount of water discharged Amount of water recycled SOx emissions NOx emissions Soot emissions Amount of COD discharged Total nitrogen discharged Total phosphorus discharged
Note: Data for 2001 are aggregates of the companies shown in blue in the chart below.

*Ice Thermal Storage System
An ice thermal storage system makes ice at night, when electricity consumption is less, and uses the ice for air-conditioning or other purposes during the day. The system reduces electricity consumption during peak hours, thus contributing to energy conservation. Moreover, the system helps save cost by using electricity at night, when electricity is cheaper.

Environmental Protection Activities by Group Companies
Unit
Thousands of tons Thousands of tons Thousands of tons Thousands of tons of CO2 Millions of tons Millions of tons Millions of tons Tons Tons Tons Tons Tons Tons

2001
— — — 1,017 56 — — 472 922 20 231 — —

2002
81.3 5.7 2.2 1,055 63 56 0.013 398 1,015 28 238 310 7

Fuji Xerox Co., Ltd.
Fuji Xerox started operating a fourth ice thermal storage system* in its laboratory in Kanagawa Prefecture as part of its efforts to reduce CO2 emissions. The amount of energy conservation this system can achieve is phenomenal. Under an agreement with Japan Natural Energy Company Limited, Fuji Xerox started using 1.7 million kWh of wind-generated electricity. The system’s wind turbines stands on Lake Towada, in Akita Prefecture. In addition, the eucalyptus forest that Fuji Xerox planted six years ago in New Zealand now covers approximately 10 thousand ha of land. The forest is expected to absorb at least 70 thousand tons of CO2. Fuji Xerox is planning to use eucalyptus trees to make pulp for copier paper and help preserve the natural forest.

PHOTONIX is developing activities to achieve the zero emissions of industrial and general wastes by the end of fiscal 2002. The company is making follow-up efforts at all of its plants after acquiring ISO 14001 certification, setting targets for the reduction of waste generated in the production process, the use of electricity and other forms of energy, and the use of dangerous chemicals.

Environmental Performance of the Fujifilm Group

FUJIFILM Imaging Systems (Suzhou) Co., Ltd.
In China, which is showing a big economic boom, is experiencing significant changes in its environmental efforts. Having acquired ISO 14001 certification and being the location of a number of companies that also acquired ISO 14001 certification, Suzhou dubbed itself the leading environment-friendly city in China. Following an environmental policy based on the Fujifilm Responsible Care policy, FUJIFILM Imaging Systems (Suzhou) started activities to acquire ISO 14001 certification and was certified in October 2000. The company is making follow-up efforts at all of its plants after acquiring ISO 14001 certification, setting targets for the reduction in the amount of waste generated during the production process, the use of electricity and other forms of energy, and the use of dangerous chemicals.

Fuji Photo Optical Co., Ltd.
Fuji Photo Optical strives to reduce VOC emissions into the air as a means of preventing global warming, ozone layer depletion, and health hazards. Fuji Photo Optical replaced VOCs with appropriate substitutes and started using automatic cleanup devices intensively. As a result, the company achieved the target set at the beginning of fiscal 2002, which was to reduce VOC emissions 20% from that in fiscal 2000. Fuji Photo Optical continues in its efforts while promoting energy conservation and zero emissions.

Companies Included in Consolidated Data

Japan
Fuji Xerox Co., Ltd. Production companies Fuji Photo Optical Co., Ltd. Fuji Photo Equipment Co., Ltd. FUJIFILM ARCH Co., Ltd. FUJIFILM PHOTONIX Co., Ltd. FUJIFILM Microdevices Co., Ltd. Fuji Micrographics Co., Ltd. Fujicolor Service Co., Ltd. Fujicolor Trading Co., Ltd. Non-production companies FUJIFILM Logistics Co., Ltd.1 Fuji Technics Co., Ltd. FUJIFILM AXIA Co., Ltd. FUJIFILM Medical Co., Ltd. Fuji Magne-Disk Co., Ltd.2 FUJIFILM Business Supply Co., Ltd. FUJIFILM Battery Co., Ltd. FUJIFILM Software Co., Ltd.
1. On April 1, 2003, FUJIFILM Logistics Co., Ltd., merged with Fuji Xerox Distribution Co., Ltd., and formed a new company, FUJIFILM Logistics Co., Ltd. The data of the former FUJIFILM Logistics Co., Ltd., is included in the aggregate data above for fiscal 2002. 2. On July 1, 2003, Fuji Magne-Disk Co., Ltd., was integrated with Fuji Service Co., Ltd., and the company changed its name to FUJIFLM Techno Service Co., Ltd. The data of Fuji Magne-Disk Co., Ltd., is included in the aggregate data above for fiscal 2002.

Overseas
U.S.A. Production companies Fuji Photo Film, Inc. Fuji Hunt Photographic Chemicals, Inc. FUJIFILM Microdisks U.S.A., Inc. Netherlands Germany U.K. Belgium Singapore China Non-production companies U.S.A. Fuji Photo Film B.V. Fuji Magnetics GmbH FUJIFILM Electronic Imaging Ltd. Fuji Hunt Photographic Chemicals, N.V. Fuji Hunt Photographic Chemicals Pte Ltd. FUJIFILM Imaging Systems (Suzhou) Co., Ltd. Fuji Photo Film U.S.A., Inc. FUJIFILM Medical Systems U.S.A., Inc. Canada Fuji Photo Film Canada Inc. Fuji Graphic Systems Canada Inc. Germany Brazil Fuji Photo Film (Europe) GmbH Fuji Photo Film do Brasil Ltda.

Fuji Photo Film, Inc. Fuji Photo Film B.V.
Fuji Photo Film, a Fujifilm production company in the Netherlands, continues to take measures to improve under ISO 14001, which the company acquired in December 1997. Improvements in seven specific areas include the management of chemicals called significant environmental aspects (SEAs), a reduction in the amount of waste generated, and energy conservation. Fuji Photo Film is looking towards the future and into sustainable measures, including updating and expanding the environmental management system into a more energy-efficient one and reviewing the payout time. The company is ultimately aiming at an annual average reduction of 0.8% in energy consumption and a total reduction of 10% in 2012. Fuji Photo Film, based in Greenwood, a city in the southeastern part of the United States, produces such products as color negative film, color paper, PS plates, graphic art film, VHS video tapes, computer backup tapes, the Fujicolor QuickSnap, and medical-use X-ray film. Fuji Photo Film acquired ISO 14001 certification in April 1999. Since then, the company has continued its efforts toward environmental protection by setting targets for the improvement of its recycling rate and waste reduction and compiled the results, along with the company’s Green Policy, in its environmental report. In the United States, the Environmental Protection Agency (EPA) leads the world in the managing and regulating of chemicals, and companies are encouraged to follow the EPA’s approach to using and managing such chemicals. Because some issues, such as the reduction in the concentration of silver in wastewater and the better removal of chemicals from exhaust, are quite technically challenging, earnest efforts are being made to introduce and develop new technologies that solve these issues. Fuji Photo Film also subsidized a study to preserve the water quality of the Saluda River and took part in a wildlife protection program called Wildlife and Industry Together (W.A.I.T.). The company’s acquisition of ISO 14001 certification was attributed to recognition of these efforts. Fuji Photo Film will continue to work closely with local communities to protect the richness of nature, which is considered a common asset.
43

FUJIFILM PHOTONIX Co., Ltd.
FUJIFILM PHOTONIX is engaged in environmental protection activities, aiming at the 100% reuse and recycling of industrial wastes. By the end of fiscal 2002, FUJIFILM PHOTONIX achieved this target through such efforts as creating new methods of recycling metal and plastic composites, which were used as landfill due to the difficulty of sorting them. Also, FUJIFILM

42

Social Performance

Relationship with Employees

Fujifilm believes that the well-being of its employees will improve and nurture the capacity of the Company. Recognizing that people with distinct and vibrant personalities make for a robust company structure, Fujifilm established educational programs and a personnel system that focuses on such features as the development of independent skills, a fair evaluation of and feedback to each employee, and the provision of a fulfilling workplace.

Providing a Fulfilling Workplace
Making use of a goal-oriented management system and self-notification system
To make the best use of employees’ skills, their enthusiasm needs to be directed toward their jobs. Fujifilm’s goal-oriented management system gives employees the opportunity to show their skills by having them meet with their superiors semiannually to review their evaluation and set job targets according to their wishes and willingness. The self-notification system is carried out every two years to support career development. The Company interviews employees who wishing to advance their careers. By identifying the employees’ strengths, aptitude, and skills, Fujifilm strives to prepare a suitable workplace for them in order to make the best use of their abilities.

ing to employees who are sexually harassed. All Fujifilm Group companies give out the same guidelines and make sexual harassment hotlines available. Thus, efforts in this area are made Groupwide. ■ Employing the physically challenged Fujifilm promotes the employment of the physically challenged with the viewpoint that it is necessary for them to find their place at work and engage in jobs in which they can show their aptitude, skills, and willingness to work. In March 2003, 1.7% of Fujifilm employees were physically challenged, which is a little lower than the 1.8% that is legally required. Nevertheless, led by the Committee to Promote the Employment of the Physically Challenged, Fujifilm continues in its efforts to let those employees find their place at work. Such efforts include creating employment opportunities by undertaking jobs that used to be assigned to subcontractors, shuffling and modifying the work flow, improving the work environment, and establishing a system to promote them to regular positions.
Percentage of Employees Who Are Physically Challenged (For the fiscal year ending in March)
(%) 2.0 1.59 1.5 1.41 1.68 1.70

Occupational health and safety—Providing a safe workplace
Relationship with Employees

Development of Independent Skills
Education and training
Fujifilm’s basic idea of personnel and skill development is the nurturing of employees who are responsible for the Company’s trust. Programs that focus on developing the independence of employees and job-related experiences are complemented by group programs by position.

Fujifilm believes that occupational safety is a foundation and premise of production activities. Based on a policy that places the highest priority on safety, Fujifilm makes Companywide efforts to secure the health and safety of its employees. For example, if there should be a serious accident, both labor and management will work together to ensure the safety of the workplace to prevent similar accidents from occurring and provide countermeasures throughout the Company.
Occupational Injury Frequency Rate
1.2 1.0 0.8 0.6
0.46 1.00 1.02 1.02 0.97 0.98

■ Training for Planning and Technical Groups
Training Course by Position
(Conceptual Skill/Human Skill)

Days off and leaves of absence
Despite their willingness to work, employees may be obliged to take leaves of absence for such personal reasons as childcare or nursing care. Fujifilm offers a variety of leaves. ■ Childcare leave and maternity leave Before and after giving birth, female employees are allowed to take maternity leave for seven weeks (one week longer than legally required) prior to giving birth and eight weeks (the same as legally required) after giving birth. Employees, whether male or female, are allowed to take childcare leave for a maximum of two years until the child(ren) turns three years old. The number of employees who went on childcare leave in fiscal 2002 was 54. ■ Nursing-care leave Employees are allowed to take nursing-care leave for a maximum of one year per person who needs nursing care. Expired special holidays given in appreciation of services can be used for a maximum of 15 consecutive days for nursing care. Taking the increased expenses of nursing care into consideration, Fujifilm established a nursing-care loan system for employees. The number of employees who went on nursing-care leave in fiscal 2002 was 4. ■ Volunteer leave Employees are allowed to take volunteer leave for a maximum of one year (a maximum of two years and six months for the Japan Overseas Cooperation Volunteers). Expired special holidays given in appreciation of services can be used for a maximum of 15 consecutive days for volunteering.

0.4 0.2 0.0
0.20

0.40 0.34

0.42 0.34

0.43 0.36 0.22 0.14 Manufacturing industry1 Chemical industry2 Fujifilm (6 facilities)

Technical Skill

Education for Internationalization

Personnel System

Management

Various courses to develop technical skill

Managerial program

1998 1999 2000 2001 2002 1. Safety Index (Labor Standards Bureau of the Ministry of Health, Labor and Welfare): Injury Frequency Rate by Industry 2. Occupational injury frequency rate according to the Japan Chemical Industry Association survey on workplace health and safety = Number of people injured in accidents outside working hours/number of extended working hours (per million hours)

Occupational Injury Severity Rate
0.6 0.5
0.53

Mid-level personnel

Study abroad program Foreign-language training

By taking these programs, employees are expected to learn more about themselves, how to enhance their influence, and develop their innate abilities.

Rotation

Innovator-ship Development Program Object Oriented job process Development Program Membership Development Program

Self-initiative system

1.0

0.5

0.4 0.3
0.08 0.08 0.08

0

Younger personnel

1999

2000

2001

2002

0.2 0.1 0.0
0.10 0.09 0.01 0.12 0.08 0.09 0.01 0.007 0.01 0.12 0.10 0.12 0.08 0.09 0.08

Entry-level program (Step 2) Entry-level program (Step 1)

Facilities and Devices That Enable the Physically Challenged to Work Safely
Example 1: Odawara Factory
• Barrier-free automatic doors • Signs in Braille (on stairway handrails and in elevators) • Elevators equipped with wheelchair ramps • Bathrooms equipped with automatic switches and handrails (Satisfying standards pursuant to regulations providing a sense of well-being in communities in Kanagawa Prefecture)

1998 1999 2000 2001 2002 Occupational injury severity rate = Number of workdays lost/number of extended working hours (per 1,000 hours)

■ Number of Employees Who Participated in Training Programs (Fiscal 2002)
Managerial program Innovator-ship Development Program Object Oriented job process Development Program Membership Development Program Entry-level program Total 80 140 5 138 178 541

Example 2: Asaka Technology Development Center
• Installation of wireless alarms and guide lights in case of emergency • Employment of sign-language interpreters at employee orientations • Holding sign-language seminars twice a month, mainly at workplaces where people with hearing disabilities work • Preparation of portable whiteboards (to converse in writing)
Sign language study meeting at Asaka Research Laboratories

To improve the employees’ health by focusing on health maintenance and the prevention and early detection of diseases, Fujifilm carries out measures to prevent lifestyle diseases and mental illness. The Company and corporate physicians organized the Company Committee for Physical and Mental Health to work toward the prevention and early detection of mental illness according to plan. Specifically, a mental health education program for managers was started. ■ FMSDS When handling chemicals, having information on relevant laws and regulations as well as the toxicity of the chemicals being handled is indispensable. In addition to the Material Safety Data Sheets (MSDS’s), Fujifilm established its own database called Fuji Material Safety Data Sheets (FMSDS’s) for the thorough management of occupational and environmental safety. FMSDS’s provide employees with information on environmental safety management that is needed when chemicals are handled in the manufacturing process. The database can be searched from the manufacturing site whenever necessary.
45

Fair Evaluation of and Feedback to Each Employee
Personnel system
To give employees a sense of fulfillment in their jobs, it is important to provide them with skill development opportunities, comfortable and worthwhile workplaces, and fair evaluation and compensation. Fujifilm provides employees with brochures so that they will be well-informed about the framework for qualifications, wages, and evaluations. Evaluation results are given directly to the employee at the interview.
44

Measures against discrimination
Fujifilm strives to develop a working environment that is free from discrimination and is comfortable for employees. ■ Preventing sexual Harassment Fujifilm is determined to prevent gender discrimination. Guidelines to prevent sexual harassment are given to all employees, and a sexual harassment hotline is available to offer counsel-

A variety of efforts are similarly made at the Fujinomiya Factory, Yoshida-Minami Factory, and Miyanodai Technology Development Center.

Social Performance

Relationship with Customers
Product Safety Management
According to the enactment of the Product Liability (PL) Law in 1995, Fujifilm shifted its organization-oriented efforts from product safety management to a Companywide approach. Fujifilm, therefore, strives to secure product safety by formulating a basic product safety policy and key safety obligations as follows. Basic Product Safety Policy (Formulated June 15, 1995)
Fujifilm acknowledges that it has a responsibility to the community to produce safe products and will make safety measures a part of every stage of the lives of its products, from development through manufacturing, marketing, use, servicing, and disposal.

Environmental Labeling Programs
Fujifilm is making a variety of efforts in the pursuit of environmental quality. These efforts include making use of environmental labeling programs and positive information disclosure. • FinePix F410 Since the launch of its first digital camera in 1988, Fujifilm has been working toward not only improving functions and product quality but creating the Design for Environment, which facilitates reductions in environmental impact through energy-saving technologies and resource saving by employing lighter packaging materials. In April 2003, FinePix F401, a new product equipped with a next-generation Super CCD Honeycomb IV HR for higher picture quality, was the first Fujifilm digital camera to acquire a Type III Eco-Label. • Fujicolor QuickSnap In September 2002, five QuickSnap products (the Fujicolor QuickSnap Simple Eye 800 Flash 15/27/39 and QuickSnap Simple Ace Flash 27/39) acquired a Type III Eco-Label. In 2001, the Fujicolor QuickSnap Simple Eye 800 Flash 27 and QuickSnap Super Eye 800 line were the first single-use cameras to acquire the Eco Mark under the product category of plastic products using recycled materials. Recognition was given to Fujifilm’s efforts toward environment-friendliness by improving the contents of recycled plastic obtained from used QuickSnap products to about 40%. The resin used in QuickSnap products used to be pelletized after heat-melting. Fujifilm developed an improved pelletizing-less process, in which crushed plastic is washed in hot water, dried, and used as mold material. This process is able to reduce the environmental impact of heat-melting while significantly increasing the consumption of recycled plastic. Fujifilm continues to disclose information pursuant to the Eco Leaf program to provide more environment-friendly products. Environmental information on products can be confirmed at Fujifilm’s Web site (www.fujifilm.co.jp/ecoleaf/: Japanese only). Product Environmental Information
Relationship with Customers

Key Safety Obligations
1. To comply with all laws and regulations relating to product safety 2. To promote product safety measures in every stage of a product’s life, including development, manufacturing, marketing, use, servicing, and disposal 3. To ensure that consumers are fully aware of the safety information relevant to product use and disposal 4. To set up a response system for emergencies, such as product defects 5. To continuously accumulate and establish methods for improving product safety 6. To implement comprehensive employee education and training regarding product safety

Promotion System The PL Committee was established in April 1995 to consider items relating to the promotion of measures and activities stipulated in Fujifilm’s Companywide guidelines for product safety management.
PL Committee
Committee chairman Director in charge of product safety and the environment

Three Systems Fujifilm has three product safety systems in place, as shown in the figure below. Each system is aimed at ensuring product safety.

Product safety is determined at the trial production stage based on product safety standards. Information, such as product-related complaints from customers, is collected, analyzed, and incorporated into product safety measures, thereby increasing product safety.

Product safety checking system

Monitoring

Secretariat General Manager of the Environmental Protection & Product Safety Div.

Internal product safety management system
PL-related Monitoring information processing system

General managers of related facilities and marketing divisions

What is Environmental Labeling? MSDS and AIS
MSDS’s provide information on safety for people and the ecosystem when handling chemicals in order to prevent accidents caused by such chemicals. In July 1997, Fujifilm began posting MSDS’s on developers on its Web site (www.fujifilm.co.jp/msds: Japanese only) to provide information. Also specified on the sheets are the chemicals subject to the PRTR Law and Industrial Safety and Health Law, if used. As of July 2003, more than 1,000 MSDS’s were prepared. Marketing divisions provide MSDS’s in printed form or on CD-ROMs. According to regulations for the Creation of Environmental and Safety Information Sheets for Article Products (formulated April 2003), Fujifilm provides information on tangible products, including film and photographic paper, which are not subject to issuance of MSDS’s, on Article Information Sheets (AIS) at its marketing divisions.
46

Environmental labeling aims at accurately providing consumers with information on the product environment through the products themselves, technical reports, and advertisements. The International Organization for Standardization (ISO) classifies the labeling into the following three categories:

AIS’s are prepared by the AIS preparation program, which is shared with overseas Group companies for operation and management purposes. More than 50 AIS’s have already been prepared in the Japanese, European, and U.S. versions.

• Type I: Third-Party Certification (ISO 14024)
Product categories and labeling standards are established and managed by independent certification organizations. In Japan, Eco Mark falls under this category. Eco Mark screens applicants before allowing them to use Eco Mark. The Eco Mark can be attached to certified products to encourage environment-conscious consumers to purchase them. The Eco Mark is attached to environment-friendly products certified by the Japan Environment Association as being environment-friendly throughout the product’s entire life cycle. Certification standards are set by product category. Eco Mark is the sole Type I environmental label pursuant to the ISO criteria. The official Web site of the Japan Environment Association can be found at www.jeas.or.jp/english/index.html.

•Type III: Environmental Declaration (ISO TR 14025)
This declaration quantitatively displays the resources and energy consumed over the product’s entire life cycle (from development of raw materials, manufacturing, distribution, use, recycling, and final consumption to final disposal) as well as the environmental impact generated from said product’s life cycle. Disclosing the information on the Internet or other media is useful for the Green Purchasing and Green Procurement of customers while also being useful for further motivating companies to identify the quantitative data by themselves for environmental impact reduction. ISO issues technical reports (TRs) and is considering the establishment of an international standardization for this environmental label in the future. Type III Eco-Label of the Eco-Leaf program, which is organized by the Japan Environmental Management Association for Industry (JEMAI), falls under this category. JEMAI’s official Web site can be found at www.jemai.or.jp/english/ecoleaf_e/default.htm.

•Type II: Self-declared Environmental Claims (ISO 14021)
Business entities make environmental claims on their products to attract the attention of the market without the requirement of a third-party judgment.

11/ MSDS

47

Social Performance

Relationship with Customers
Organizational Structure and Systems for Customer Support
Customer’s Communication Center (CCC) and Technology Support Center (SC) The Customer’s Communication Center (CCC), established in 1990, is Fujifilm’s comprehensive information center. At present, 31 experts with advanced technical skills directly handle more than 60,000 inquiries annually. To deal with digital technologies that are becoming highly developed day by day, Fujifilm established the Technical Support Centers (SCs). SCs employ approximately 350 technician, and each center deals with a different product group. Fujifilm handles about 600,000 inquiries from customers and information on repair for customers, including inquiries made at CCC, SCs, and its official Web site each year, and information is provided by service centers from all over the country. The official Web site employs up-to-date information on new products and FAQs. There are approximately 150 million visitors who visit the Web site a month, in other words, about 10 million pages are viewed a month.
Support Center Di Support Center FDi Support Center AVC Support Center Printpix Support Center D-File Support Center Customer Communication Center Products and Services Covered Digital cameras, etc. FDi services DVDs, CDs, AV equipment Printpix printers D-Files All products
Telephone Letters Visits Information from customers
Questions, quality-related information, and complaints collected at the customer center

Universal Design
improvement, and countermeasures. • Databank: The QuickFeedback databank consists of CCnet, a database comprising 430,000 entries; MINDS, a database for information on technologies and product quality; and the SC database. CCnet and MINDS share information to enable mutual reference and analysis. • Feedback system: Information extracted from the databank can be studied in more detail by a variety of surveys on consumers, group interviews, and dealers. Extracted information, along with technical aspects, is brought to study meetings to give feedback to customers (market) for commercialization, product improvement, and countermeasures. The concept of a universal design was created by Ronald L. Mace of North Carolina State University in 1990. The concept calls for the design to be friendly to and usable by all people to the greatest extent possible, regardless of nationality, race, age, gender, and abilities. The Fujifilm Design Center started universal designs five years ago and has promoted usability evaluation* activities since 2002. Universal design is expanding business opportunities because of the increase in lot numbers at reasonable prices for unrestricted markets. Here are examples of Fujifilm products that adopt a universal design. • Fujicolor QuickSnap: When the Fujicolor QuickSnap was developed in 1986, there was no concept of a universal design. However, this product, developed so that anyone can take good photos anytime and anywhere, must be a pioneer in the area of universal designs. • QuickSnap Excellent: Fully adopting the use of a universal design, the QuickSnap Excellent pursues better photo quality and user-friendliness. • The Silvi F2.8 compact camera: The Silvi F2.8 was developed for middle-aged or elder women who are free from child raising and now have the time and money for traveling. It features user-friendliness by adopting a large LCD. Designed to stand out in a display window, Silvi F2.8 actually attracts public attention. Promoting further efforts for universal design, Fujifilm continues its efforts to create user-friendly and worthwhile products that can be used by all people. *Usability evaluations objectively evaluate the user-friendliness of products using data or other means and give feedback to be incorporated in future designs.
Relationship with Customers

Customer Corresponding System

Features of Products with a Universal Design
QuickFeedback customer information system (information analysis and the planning and implementation of corrective measures)

Features of the QuickSnap Excellent
Indicator light pops up when the camera’s flash is ready. Large, easyto-view finder Large, easy-to-use shutter button Easy-to-read instructions in different colors Comfortable ergonomic grip Easy-to-use flash switch

Positioning and roles of internal organizations CCC gives kind, accurate, and prompt answers to inquiries and comments from the customers. CCC sorts customer inquiries—separating special comments, information on product quality and product launch, and proposals and requests for examination—and gives the feedback to the top management and relevant divisions. Thus, CCC contributes to product development and service improvement throughout the Company. A product search database called New QuickSearch system was established to appropriately and promptly answer customer inquiries. The database is used by Fujifilm divisions and other relevant divisions when dealing with customer relations in affiliated companies. Customer information system—QuickFeedback • Functions: Customer opinions are gathered and placed in the database, from which necessary information is extracted to be used as feedback to customers (market) through study committees (meetings) for commercialization, product
48

Internet

Information collected at our Web site

Information analysis/planning of corrective measures

Launch of new products

Surveys

Customer comments

Data from various surveys •Surveys on buying behavior •Surveys on customers who bought Fujifilm cameras •Mass information gathering •Surveys at film-processing shops or other points-of-sales

Customer center: CCNet*

Launch of improved products

Photography sessions Photography classes

Questions, quality-related information, and complaints collected at marketing divisions Questions, quality-related information, and complaints collected at film-processing shops and other points-of-sales Questions, quality-related information, and complaints collected at support centers

Product group marketing divisions: Information from support centers* Information from service centers*

Improvements in labeling and instructions

Filmprocessing shops Telephone Fax

Technical Division: MINDS*

Marketing liaison meetings Commercialization meetings

Consumer education activities

* Database

Factories Quality Assurance Committee Quality Assurance Division

Provision of information

Repair-related information collected at service centers

Provision of opportunities to experience new things

Photography seminars Photography classes Photo contests Fuji Photo Salon (photo gallery) Photo contribution Web site

Introduction of recycling-oriented production (Fujicolor QuickSnap single-use cameras)

Industrywide recycling campaigns Inverse Manufacturing Factory tours

Provision of information through the Internet and other media

Product information (catalogs, the Internet, etc.) Product safety data/Sustainability Report

Silvi F2.8 Settings can be adjusted and colors checked on a large LCD screen, and twin shutter buttons accommodate both right- and left-handed users.

Cheki Two shutter buttons make it easy to switch between vertical and horizontal shots without moving the camera.

DVD-R and Video Tapes The clear-wrap packaging was changed to make it easier to open thanks to a new tear tape and other design features.

Slim Audio Cassette Cases An audio cassette can be placed in the case with the tape-side facing forward or backward.

FCR VELOCITY Large indicator lights are placed near the top of the column, making the operation status of the system easy to check from a distance.

49

Social Performance

Relationship with Suppliers

Basic Idea of Purchasing
Fujifilm is a member of the international community, and as such would like to contribute to social development by continuously providing customers with better products and services. In 1990, Fujifilm formulated regulations for purchasing and managing materials needed for its products and services. 1. Rational Selection Standards Suppliers are chosen based on rational and clear standards for product quality, price, stability in supply, and corporate trust. 2. Open and Fair Opportunities for Suppliers Business opportunities are widely and fairly open to all suppliers, both in Japan and overseas. Fujifilm earnestly considers businesses with new suppliers, other than those with whom we are already doing businesses. 3. Legal Compliance, Resource Conservation, and Environmental Protection Fujifilm, as a good citizen contributing to society, complies with all relevant laws and regulations related to purchasing and pays careful attention to resource conservation and environmental protection.

Purchasing Procedures
After a potential supplier submits an application and Fujifilm makes inquiries into the said supplier, the following procedures should be taken. When all conditions have been met, an official agreement shall be entered into.
Fujifilm Various aspects of purchasing are examined

Purchasing Section
Requests Inquiries

Screening of suppliers:
Technical and quality control standards, environmental protection, etc.

Samples

Suppliers

Examination of suppliers’ products and services:
Quality, specifications, price, delivery time, safety, patents, etc.

Evaluation of samples
Various tests

Final negotiation:
Specifications (including safety data), price, delivery time, and other specifics are negotiated.

Purchasing Policies
To applying the basic idea of purchasing to actual purchasing, Fujifilm formulated purchasing policies to encourage fair purchasing. The policies are as follows: • Fujifilm’s decision to deal with new suppliers or accept offers are based on rational and clear standards for product quality, price, corporate trust, stability in supply, and environmental protection. • In principle, we invite competitive estimates from two or more suppliers for constantly appropriate competitions and fair decision on choice of suppliers. • Preventing excessive dependence on a certain supplier, we strive to do business with as many suppliers as possible by setting an appropriate limit to the amount purchased per supplier. • We periodically review ongoing deals to earnestly provide opportunities for new suppliers to join in the deals.

Formal agreement and contract

Placement of order

Education of the Person in Charge of Purchasing
For constant appropriate purchasing, those in charge of purchasing participate in internal training sessions and outside seminars. The employees assigned to the position of buyer are given basic knowledge and learn about legal affairs and practical skills at seminars for newly assigned buyers. Meanwhile, newly assigned managers learn about legal risks at the practical seminar for risk management in purchasing. Thus, Fujifilm promotes the establishment of more appropriate and better relationships with suppliers.

Disclosure of Purchasing Policies
The policies for suppliers are available at Fujifilm’s Web site (www.fujifilm.co.jp/purchasing/index-j.html: Japanese only).

50

Communication

Communication Activities

External Evaluation
Fujifilm has obtained evaluations from surveyors outside the Company, including those shown below:
Evaluation
6th Environmental Management Survey 4th Eco Brand Survey

Surveyor Nihon Keizai Shimbun Nikkei BP

Fujifilm’s Rating 10 out of 703 manufacturing companies 19 out of 560 companies (rated by consumers and business people) Score: 96 Rank A

2002 Environmental Management Ratings Environmental rating

Sustainable Management Rating Institute Tohmatsu Evaluation and Certification Organization

As for socially responsible investment (SRI), Fujifilm is incorporated in the schemes shown below: • Nikko Eco Fund • Sompo Japan Green Open (a.k.a., Buna-NO-Mori) • Dow Jones Sustainability Index (DJSI) • FTSE4Good Global Index

Participation in Ecoproducts 2002
In December 2002, Ecoproducts 2002 was held at Tokyo Big Sight with the participation of 370 companies and organizations, including Fujifilm and its booth exhibition. This event provides exhibitors, environmental NGOs and NPOs, local governments, and general consumers with the opportunity to communicate with one another on environmental issues. In the Fujifilm booth, a seminar was held for elementary and junior high school students, giving an easy-to-understand explanation on the reuse and recycling of QuickSnap. Picture-taking and printing services using the FinePix digital camera and Printpix digital printing system obtained favorable reputation.

Association with the participation of relevant companies, universities, and local governments, including the Tokyo metropolitan government. The Eco-Stage system has a variety of characteristics, which include (1) a system that is able to respond to the needs of companies that are having difficulties acquiring ISO 14001 certification due to their lack of environmental management know-how and that would like to upgrade their own environmental management systems; (2) participants are able to freely join the system at any stage, taking into consideration their current status; and (3) participants are able to establish and run environmental management systems equivalent to ISO 14001 with less expenses. In the eco stage system, the Third-Party Evaluation Committee, consisting of NPOs and academic experts, evaluates the efforts of the companies, including how they established and made use of environmental management systems in five grades. Even after certifications are given, environmental audit specialists visit the companies for an annual evaluation to promote improvements in several stages. Aiming at leading the eco stage system, Fujifilm continuously strives to further upgrade Group companies after they acquire ISO 14001 certification as well as incorporate the eco stage system into the Green Procurement Standards for its suppliers.
Environmental Management Level by Eco-stage
Eco-stage 5 Eco-stage 4 Eco-stage 3 Eco-stage 2 Eco-stage 1 Prime cost improvement and information disclosure Performance improvement System improvement ISO 14001 or equivalent Only essential elements of ISO 14001

Relationship with Suppliers/Communication Activities

Dealing with Complaints
In fiscal 2002, Fujifilm received the five complaints shown below: Noise: Complaints were made concerning a buzz caused by defects in the procedures for water pump repairs and the noise produced by heavy machinery doing groundwork for the building construction. To placate local residents, they were told that procedures were being reviewed and countermeasures taken to prevent it from happening again. Complaints were also made concerning electromagnetic interference and garbage left in a parking lot. In both cases, measures were quickly taken to obtain the acceptance of local residents. Fujifilm shall do its utmost to ensure such problems will not happen again.
Facility Ashigara Factory Odawara Factory Fujinomiya Factory Asaka Research Laboratories Type of Complaint Noise Appearance Noise Electromagnetic wave interference No. of Complaints 2 1 1 1

Compliance with Environment-related Laws and Regulations (Fiscal 2002)
• No infringement on relevant laws and regulations or related accidents occurred over the last five years. • No environment-related case was filed.

Supporting the Eco-Stage
To promote and disseminate the Environmental Management Evaluation and Supporting System (Eco-Stage), which expansively supports the enhancement of environmental management, Fujifilm supports the Eco-Stage Research

51

Social Performance

Social Contribution Activities

Promotional Activities of the Fujifilm Greenery Fund
In 1983, to commemorate the 50th anniversary of its establishment, Fujifilm contributed ¥1 billion to establish the Fujifilm Greenery Fund (FGF). This organization is the first public trust established by a private company in Japan to have the preservation of nature as its theme. Every year, the fund contributes to various activities pertaining to the preservation and improvement of the environment. The fund had contributed to a total of 75 projects by the end of fiscal 2002.

Activities in Local Communities
■ Ashigara Factory In May 2002, working with the Miyanodai Technology Development Center, the Ashigara Factory implemented a volunteer project called Green Aid Strategy in Ashigara and Miyanodai to clean up the communities. In October 2002, factory employees mowed grass and sowed seeds in the area, from the Ohizumi Kawara Bridge to the Kanzaki Bridge along the Kari River. ■ Odawara Factory One hundred fifteen factory employees helped clean up the Sakawa River in May 2002, and 36 employees did the same for the Sanno River and Kuno River in June of that year. Also, 11 leaders of the local residents’ association were invited to be briefed on the recent progress made at the factory and to make requests on behalf of the association. ■ Fujinomiya Factory Approximately 500 employees participated in cleaning up the Urui River and roads running along the river in June 2002, and about 200 employees participated in the Green Aid Strategy at Lake Tanuki in September of that year. ■ Yoshida-Minami Factory In November 2002, roughly 250 factory employees and their families participated in a 6.5-km walk rally and garbage collecting along the rally course. ■ Miyanodai Technology Development Center In May 2002, approximately 300 employees participated in a walking event and garbage collection in Kuno, Odawara. The employees also participated in cleaning up the Miyanodai area and beautifying Kaisei-machi. ■ Asaka Technology Development Center In May 2002, as a part of the Green Aid Strategy, employees collected garbage around the Asaka Technology Development Center and the company-owned housing. In addition, the chairperson of the local residents’ association and representatives of Asaka City were invited to share their views on environmental management activities.

Being a Partner in the Protection of Water Conservation Forests in Kanagawa
Kanagawa Prefecture promotes the protection of water conservation forests to preserve the rich forests at riverheads for future generations and secure a stable supply of clean water. In 1998, Kanagawa established a partnership for water conservation forests to solicit donations from corporate entities located in the prefecture as well as from its citizens. For this project, Fujifilm has given donations since 2000, and the employees of the Ashigara Factory volunteer for forest protection activities every year.

Social Contribution Activities

FGF results in fiscal 2002
■ Preparation of the benthos database in the Ariake Inland Sea and Shimabara Bay
(Center for Marine Environmental Studies, Kumamoto University, Kumamoto Prefecture)

■ Construction of an observation route for the field observation of the strata of the Tama River midstream bed and the establishment of an assistance system for observation
(Faculty of Education, Tokyo Gakugei University, Tokyo)

The environment of the Ariake Inland Sea and Shimabara Bay is changing due to social factors, including the reclamation of tidal flats, development of heavy industries, and construction of dams in rivers running into the area. For measures to appropriately protect the environment of tidal flats and shoals, it is required to conduct regular surveys over an extended period of time on the quality of the water and seabed from the beach to offshore to find out how the environment deteriorated. However, fewer organizations have expensive equipment needed for marine research. It is therefore necessary to establish environmental evaluation standards so that local residents, who are most sensitive to environmental changes, can use such equipment. In this project, the standards were made after analyzing the relationship between environmental factors and the distribution of benthic foraminifera, ostracoda, and micro shellfish, which have different habitats in the sea and seabed. The data of distribution as well as images were compiled in the database so that the standards can be used by the local residents and governmental authorities for joint research.

The Tama River midstream bed is a very valuable place in the Tokyo metropolitan area for stratum observation and fossil collection. Especially in the area next to the green park in Tachikawa, Tokyo, stratum from approximately 1.3 million years ago is exposed, and the footprints of elephants and deer as well as the fossils of plants and shellfish can be found there. Here, geographical changes, from the shoals to the land, can be seen. Observation of nature, including strata around the schools, was stipulated as a requisite in the new course of study enacted in 2002. Therefore, the Tama River midstream is the best field observation point for strata. Under this project, results of the observation were compiled in a textbook to be used to teach about Tokyo’s environment in the past, and curricula based on the textbook were devised. Based on this, an observation route was established and assistance system for the field stratum observation was created.

Dispatching Speakers
Fujifilm earnestly dispatches employees to speak or teach about environmental protection at seminars and training sessions. Teaching recycling at an elementary school In November 2002, two speakers were dispatched to a recycling experience seminar held at Kamiitabashi Daini Elementary School, Itabashiku, Tokyo. At the seminar, the speakers talked about the recycling-oriented production of QuickSnap single-use cameras. The students learned about the workflow of product disassembly using models and visited the Fujicolor QuikSnap inverse manufacturing factory to see how the QuickSnap is produced and recycled. A lecture being given to 60 third-grade elementary students on recycling systems RC education in Thailand In February, Fujifilm dispatched instructors from its Environmental Protection & Product Safety Division to the Chemical Industry Association of Thailand for two weeks for a responsible care (RC) seminar upon the request of the Japan Responsible Care Council (JRCC). Representatives from Thai companies, governmental authorities, and schools went to the seminar to learn about the Trainees in a group discussion idea of and efforts for RC. In addition to the opportunities stated above, Fujifilm employees served as instructors at special seminars at the Faculty of Business Administration in Kanagawa University and the Faculty of Business & Commerce in Keio University and at seminars organized by the Chemical Society of Japan for the benefit of the general public.

Tree Planting
While bottom sampling is conducted at the stern, water quality is checked by depth on the starboard side.

Mud sediments being collected with a core sampler.

Sediments in plastic bags are poured into petri dishes to be dye-tested for living benthic foraminifera.

Disclosing FGF efforts at Kankyo-goo, a portal site* of environmental information
In October 2002, Kankyo-goo TV, a part of Kankyo-goo, a portal site for environmental information managed by NTT-X, began posting Fujifilm’s efforts toward environmental protection. The first and second issues focused on FGF efforts for social contribution, and the purpose and activities of FGF was Webcast. The Web site for Kankyo-goo TV can be found at eco.goo.ne.jp/gootv/index.html (Japanese only).
*Portal Site
“Portal” means “porch” or “entrance.” goo and Yahoo! are representatives of portal sites, which mean that their URLs are the first that Web surfers go to when accessing information. Left, Kimitaka Kameoka, general manager of Fujifilm’s Environmental Protection & Products Safety Division, being interviewed on Kankyo-goo TV. Right, Masaki Matsukawa, assistant professor of Tokyo Gakugei University, also being interviewed.

As a part of the Company’s environment-related social contribution activities, Fujifilm labor unions established the Green Smile Fund to promote and support a variety of activities. To this end, the employees participate in an annual tree planting activities in China organized by the Green Cooperation Group, an NGO aiming to restore forests. In fiscal 2002, 13 employees were dispatched to Horqin Desert, a new destination for the Group, for eight days, from April to May 2002, as volunteers to plant poplar saplings and other activities.

Planting seedlings in the Horqin Desert

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53

INDEPENDENT VERIFICATION REPORT ON “THE FUJIFILM SUSTAINABILITY REPORT/2003”

Independent Assurance Report on Fujifilm Sustainability Report 2003
(English Translation)
July 18, 2003 To. Shigetaka Komori President Fuji Photo Film Co., Ltd. At the sites we visited • Interviews with management in charge of environmental matters and representatives from each operational unit who are responsible for information control, collection and reporting; and • Inspection and comparison of information obtained with related documents.

1. Scope and Objectives of Assurance
We have been asked to review the “Fujifilm Environmental Report 2003 Edition” (“the Report”) of Fuji Photo Film Co., Ltd. (“the Company”). The preparation of the Report is the responsibility of the Company. The objective of this assurance is to express our independent opinion on: 1. The reliability of processes used to identify, collect and report significant environmental information included in the Report; 2. The consistency of information included in the Report with supporting documents obtained during our review process on a sampling basis; and 3. The accuracy of information on PRTR substances and wastes at the sites visited excluding the Headquarters. This independent assurance report, however, does not provide any assurance on the completeness of the information contained in the Report.

3. Opinion
On the basis of the above work, we have reached the following opinion: 1. The processes used to identify, collect and report significant environmental information included in the Report were appropriate and reliable. 2. The information included in the Report is consistent with the supporting documents obtained on a sample basis during our review process. No significant errors that should have been corrected were identified as a result of our test. 3. The information included in the Report on PRTR substances and wastes subject to our review process is accurate.
Site Name Fuji Photo Film Co., Ltd. Headquarters Fuji Photo Film Co., Ltd. Domestic site Fujinomiya Site (including Fujinomiya Research Center) Site Classification Business Lines and Major Products Headquarter functions Imaging and information solutions (development and manufacturing of OA paper including impact and thermal paper, manufacturing of medical and industrial films, printing materials and films, manufacturing support for photographic paper, etc.) Imaging and information solutions (development, manufacturing, and sales of compact cameras, professional use cameras, development and manufacturing of photo systems for color laboratories, printing equipment etc.) Imaging and information solutions (manufacturing of digital cameras and printers)

(3) Strategic Use of Environmental and Social Information As the leader of the group companies following the “Fujifilm Group Green Policy”, the Company collects environmental and some social information of the group. When revising part of “Fujifilm Group Green Policy” at the end of FY 2002, it set environmental efficiency as one of its performance parameters, which is calculated on revenue, so as to decrease the 6 environmental impacts incurring from its operations. The target for FY 2010 is to achieve twice the level of 2002. In order to accomplish this target, more detailed and accurate data will need to be collected. Feedback on analyzed results should be sent back to the group companies as well as utilizing the information strategically for corporate management. The company also prepares and discloses environmental accounting and social accounting as “sustainable accounting”, and thereby attempts to use the analyzed results for the Company and group management. The next step would be to develop environmental and social accounting to suit the current status of the Company. We hope that in the future environmental accounting will be expanded to overseas group companies, that more social items and the calculation of effects be considered as well as costs in social accounting.
Independent verification

technology, the Site can only adopt a control approach towards this issue. But it is hoped that the required measures can be taken as soon as the technical and legal issues are cleared. We hope that the entire Fujinomiya Site including the Research Center and group companies, may strengthen their environmental management system to a higher level.

Independent Assurance Report on Fujifilm Sustainability Report 2003 (English Translation)

3.Fuji Photo Optical Co., Ltd.
Fuji Photo Optical controls its environmental activities on a quarterly basis and actively communicates with the surrounding community the contamination risks of soil and underground water by frequently explaining the cleansing process of soil and underground water contamination. It has also implemented DfE to some products including packaging and is actively providing environmental information of the products to its customers. From 2003, it has dynamically implemented DfE to all of the products. However, part of the data collection process has not been documented and that process is not shared among the organization. Such an issue can be easily resolved to achieve advanced management and communication. Fuji Photo Optical is a member of the Fujifilm group and functions as the headquarters and R&D center to Fuji Photo Optical’s affiliate companies, and therefore, holds the responsibility to control environmental and social aspects of the companies. It is important to provide education and motivation to the affiliate companies and take lead in identifying performance information on environmental and social activities of the companies. In addition to identifying the targets and progress of disaster prevention and environmental activities, Fuji Photo Optical is expected to take leadership in improving management of such environmental and social aspects in general.

2. Basis of Opinion
Currently, there are no generally accepted environmental reporting and assurance standards. Therefore, we have referred to emerging practices and guidance. To reach our opinion, we conducted the following procedures at the Headquarters, Fujinomiya Site, Fuji Photo Optical Co., Ltd. and Fujifilm Photonix Co., Ltd. At the Headquarters • Interviews with management and persons responsible for processes to control, collect and compile information reported from sites in Japan and abroad; and • Inspection and comparison of information obtained with related documents.

Fuji Photo Optical Co., Ltd.

Group company

Fujifilm Photonix Co., Ltd.

Group company

(4) Environmental Quality of Products Starting from 2003, “Design for Environment (DfE)” was implemented in the whole group to decrease impact on the environment through product-life-cycle. It promotes green purchasing throughout the group and is expected to improve the environmental quality of the products. It is hoped that such data collected through this process will be used to provide more reliable environmental information to the customers. Such approach would certainly expand the market of environment conscious products. (5) Communication with the Stakeholders Discussions with the readers on “The FUJIFILM Environmental Report 2002 Edition” were held in April this year. The Company listened to the opinions of the stakeholders who attended the discussions, and some opinions were reflected in this year’s Report. We hope that the reader’s opinions can be reflected more widely in the Report to enrich and improve its contents, so that the Report becomes more useful to the users and “the efforts and results towards sustainable development” are better understood. To gain such results, an organized information process needs to be constructed to meet the different needs of various groups of stakeholders.

4. FUJIFILM PHOTONIX Co., Ltd.
In April 2002, Fujifilm Photonix merged with Fujifilm Celltec and is actively working to improve its environmental management by controlling workplace safety, waste reduction activities, and related data (such as energy data control for improvement). Fujifilm Photonix is situtated next to Fujifilm Microdevices Co., Ltd. Using this advantage, the two companies are exchanging information to some extent and have implemented measures on workplace safety and environment protection activities (energy and wastes). In 2001, the three companies (Fujifilm Photonix, Fujifilm Celltec and Fujifilm Microdevices) conducted a soil and underground water contamination study together. At our site visit, we confirmed that there is no soil or underground water contamination at the measured area according to the measurement certificate included in a study report prepared by a third party organization. We hope that Fujifilm Photonix and Fujifilm Microdevices will continue to identify and exchange information on environmental management in general, and that not only their performance but also their environmental management and corporate management can be upgraded to a higher degree.

* The sustainability assurance services provided by ChuoAoyama PwC Sustainability Research Institute Corporation have been transferred to Chuo Aoyama Sustainability Certification Organization Corporation as of July 1, 2003.

Comments
This year we expanded our scope of review as requested by the Company, and have visited the Headquarters, 1 site, and 2 group companies in Japan. We also plan to visit and conduct review procedures at the Headquarters and sites of Fuji Xerox Co., Ltd., a significant group company, in August this year. Social items as well as environmental items were subjects for our assurance this year (refer to the chart at the bottom of page 55). In addition to the opinion expressed above, we made a number of comments and suggestions to improve environmental management of the Company. The summary of our comments is as follows: the range of disclosure so that more detailed information on female employment, labor safety issues and group companies is also included in the Report. We suggest the Company further strengthen cooperation between divisions responsible for compilation of the Report and social matters in the future so that identification of focal social activities to be reported will be easily done. We hope the progress of such activities will be reported in the subsequent reports.

2.Fujinomiya Site
We visited Fujinomiya Site for the second consecutive year. From last year, Fujinomiya Research Center has strengthened their chemical substance control system and has documented the rules for calculating usage, disposal, and transportation of PRTR substances at the entire plant, based on the current situation of the production divisions and research center. The next step would be post-evaluation of the environmental measures implemented. Especially in the case of Fujinomiya Site, postevaluation of measures such as installing VOC treatment equipment to reduce VOC emissions could be conducted using environmental accounting methods. In that way, the costs and benefits of environmental protection can be identified and used for site management. The Fujinomiya Site has sludge that includes PCB. In respect to this matter, we confirmed that the underground water is not contaminated by PCB in the measured area, based on the report to the local regulator and measurement certificate. While it develops soil cleanup

1. General (1) Disclosure of Social Information
The company has included the following social information in the Report: corporate ethics, personnel system, and partner relationships such as purchasing transactions and customer relationships as well as environmental information. Especially, the Company clearly reported its commitment to corporate social responsibility including its corporate governance system, corporate ethics embedded in its corporate policy and employees’ code of conduct, promotion system, and how such information is disclosed. Next year’s step would be to expand

(2) Cooperation with Group Companies The company has established “The Comprehensive Risk Management Committee” for preventing and responding to various risks, and shows the risk management system in the Report. In respect to the environment, an “Task Force on Environment-related Risk” has been established in addition to the “FRC Committee”, which is the companywide organization for environmental and safety management, so that the management itself can prevent risks from occurring and promote risk management. In order to broaden the scope of social responsibility to a groupwide level, we hope that the risk management system is expanded to the whole group and cooperation among the group companies with the Headquarters in the center is strengthened even more.

• Review Item
Classification of Information Social Information Environmental Information Items Reviewed Corporate ethics, human resources, purchasing, customer/ partner relationships, social contributions, social accounting Green policy, environmental management systems, chemical substances, wastes, energy consumption and greenhouse gas emissions, water, effluents, emissions to air, noise, vibration, soil and underground water contamination study, environmental education, environment conscious design, green purchasing, environmental accounting

54

55

Executive Summary

History of Fujifilm’s Business Activities

January 1934

Establishment of Fuji Photo Film Co., Ltd., through the acquisition of a photo film division of Dainippon Celluloid Co., Ltd., (currently Daicel Chemical Industries, Ltd.) based on plans to manufacture photo film domestically with a capital of ¥3 million Start of operations at the Ashigara Factory; start of photographic film, printing paper, dryplate, and other photographic sensitive material manufacturing Construction of the Odawara Factory; strengthening of the advanced chemical products area, in which such photographic sensitive materials as caustic silver, dyes, and other chemicals are handled, and the precision optic equipment and material area, in which optical glass and photographic equipment are handled Acquisition of Enomoto Kogaku Seiki Manufacturing Co., Ltd.; company renamed Fuji Photo Optical Co., Ltd. (currently a consolidated subsidiary) Establishment of Natural Color Photography Co., Ltd. (currently Fujicolor Service Co., Ltd., a consolidated subsidiary) Establishment of Fuji Xerox Co., Ltd., (currently a consolidated subsidiary) in a joint venture with Rank Xerox Ltd. Construction of Fujinomiya Factory (manufacturer of baryta for printing paper and baryta paper) Establishment of Fujicolor Trading Co., Ltd., (currently a consolidated subsidiary) a spin off from Fujicolor Service Co., Ltd. Establishment of Fuji Photo Film U.S.A., Inc., in New York, U.S.A. (currently a consolidated subsidiary) Establishment of Fuji Photo Film (Europe) GmbH in Germany (currently a consolidated subsidiary) Construction of the Yoshida-Minami Factory (manufacturer of such offset printing materials as PS aluminum plates) Establishment of Fuji Photo Film B.V. in Holland. (currently a consolidated subsidiary) Establishment of Fuji Magnetics GmbH in Germany (currently a consolidated subsidiary) Establishment of Fuji Photo Film, Inc., in South Carolina, U.S.A. (currently a consolidated subsidiary) Establishment of FUJIFILM Microdevices Co., Ltd. (currently a consolidated subsidiary) Establishment of FUJIX Co., Ltd. (currently FUJIFILM PHOTONIX Co., Ltd., a consolidated subsidiary) Purchase of 51% of all issued stocks of Chiyoda Medical Co., Ltd., (currently a consolidated subsidiary) by Fujifilm Establishment of Fujifilm Imaging Systems (Suzhou) Co., Ltd., in Jiangsu, P.R.C. (currently a consolidated subsidiary) Establishment of Hong Kong Fuji Photo Logistics Limited in Hong Kong (currently a consolidated subsidiary) Establishment of FUJIFILM Electronic Imaging Ltd. in the U.K. (currently a consolidated subsidiary) Acquisition of Eurocolor Photofinishing GmbH & Co. KG in Germany (currently a consolidated company) Purchase of an additional 25% of all issued stocks of Fuji Xerox Co., Ltd., (currently a consolidated subsidiary with 75% of its stocks held by the parent company) by Fujifilm Establishment of Enovation Graphic Systems, Inc. in the United States (currently a consolidated subsidiary) Purchase of stocks of Jusphoto Co., Ltd., by Fujifilm in a takeover bid (currently a consolidated subsidiary) Purchase of additional stocks of Process Shizai Co., Ltd., (renamed Fujifilm Graphic Systems Co., Ltd., and currently a consolidated subsidiary) by Fujifilm

February 1934 June 1938

March 1944 April 1946 February 1962 October 1963 April 1965 December 1965 June 1966 September 1973 August 1982 March 1987 July 1988 March 1990 December 1990 October 1993 October 1995 June 1996 November 1996 December 1997 March 2001 October 2001 September 2002 April 2003

Environmental Organizations to which Fujifilm Belongs
Japan Chemical Industry Association, Japan Responsible Care Council, Photo-sensitized Materials Manufacturers’ Association, Japan Chemical Industry Ecology-Toxicology & Information Center, Japan Environmental Management Association for Industry, Japan Electronics and Information Technology Industries Association, The Japan Containers and Packaging Recycling Association, United Nations University Zero Emissions Forum, Green Purchasing Network, Network for Environmental Reporting, Union of EcoDesigners, Camera & Imaging Products Association, and Eco-stage Study Group

56

Executive Summary

History of Fujifilm’s Environmental Activities
Fujifilm
1970 1971 1975 1983 1986 1989 1990 1991 1992 1993 1994 1995 1996 1997
Compilation of guidelines for safety, hygiene, and environmental protection at Fujifilm factories Launch of inverse manufacturing system for Fujicolor QuickSnap cameras Compilation of environment action plan Complete end to the use of CFCs of any kind in manufacturing Establishment of Fujifilm environmental policy Entry into Japan Responsible Care Council Start of reuse and recycling of Fujicolor QuickSnap cameras at U.S. and European factories Fujinomiya, Odawara, and Ashigara factories awarded ISO 14001 certification Publication of Fujifilm’s first environmental report Yoshida-Minami Factory awarded ISO 14001 certification Publication of ISO 14001 standard Adoption of the Kyoto Protocol at the Third Conference of Parties to the U.N. Framework Convention on Climate Change (COP3) in Kyoto, Japan Creation of Environment and Safety divisions at factories Creation of Environmental Management Department at Head Office Establishment of Fujifilm Material Safety Test Center Establishment of Fujifilm Green Fund Public Test Launch of Fujicolor QuickSnap single-use camera Environmental Management Division renamed the Environment and Safety Promotion Division Introduction of cogeneration facilities at Ashigara Factory Fujicolor QuickSnap recycling center comes on-stream Adoption of the Declaration of Helsinki (total abolition of specified CFCs) Action plan for combating global warming Enforcement of the Law for the Promotion of Utilization of Recycled Resources World Summit, Rio de Janeiro Enactment of the Basic Environment Law Entry into effect of the Framework Convention on Climate Change Establishment of Environment Agency United Nations Conference on the Human Environment, Stockholm History of Fujifilm’s Business Activities/History of Fujifilm’s Environmental Activities

Japan and Overseas*

1998 1999

Construction of Fujicolor QuickSnap Inverse Manufacturing Factory Drafting of Fujifilm’s Responsible Care management manual; replacement of basic environmental guidelines with the Fujifilm Responsible Care Program Fujifilm wins the Earth Environment Committee Award for Corporate Excellence at the 8th Global Environment Award sponsored by the Japan Industrial Journal. Fujifilm wins the 17th Superior Trendsetting Factories and Offices Special Award, sponsored by the Nihon Keizai Shimbun Inc., for its inverse manufacturing system for Fujicolor QuickSnap cameras. First official announcement regarding environmental accounting

2000

Regeneration and reuse of all waste from raw material processing at the Yoshida-Minami and Fujinomiya factories and the Miyanodai Technology Development Center Drafting of Green Purchasing and Procurement Handbook Fujifilm wins the Nikkei Superior Trendsetting Factories and Offices Awards Millennium Award, sponsored by the Nihon Keizai Shimbun Inc., for its inverse manufacturing system for Fujifilm QuickSnap cameras. Fujifilm wins the fiscal 2000 Global Warming Prevention Activities Ministerial Commendation sponsored by the Environment Agency.

Publication of the Environment Agency’s guidelines on the establishment of environmental accounting systems Enforcement of the Basic Law for Establishing the Recycling-based Society Enforcement of the PRTR Law Full enforcement of the Container and Packaging Recycling Law Publication of the GRI’s Sustainable Reporting Guidelines Enforcement of the Green Purchasing Law Publication of the Ministry of the Environment’s environmental reporting guidelines (2000 edition) and environmental performance benchmarks for businesses Full enforcement of the Law for Promotion of Effective Utilization of Resources (Revised Recycling Law) Enforcement of the Law Concerning Special Measure against PCB Waste Agreement on Kyoto Protocol’s operational rules at the Seventh Conference of Parties to the U.N. Framework Convention on Climate Change (COP7) Ratification of the Kyoto Protocol by the Japanese government Publication of the Ministry of the Environment’s Environmental Accounting Guidebook (2002 edition) Finalization of Guidelines for Measures to Prevent Global Warming by the Global Warming Prevention Headquarters Start of Type III eco-labeling program by Japan Environmental Management Association for Industry (JEMAI) Johannesburg Summit Publication of the GRI’s Sustainable Reporting Guidelines 2002 Ratification of Stockholm Convention on Persistent Organic Pollutants by the Japanese government Enforcement of the Soil Contamination Countermeasures Law Revision of the Law Concerning Examination and Regulation of Manufacture and Handling of Chemical Substances

2001

Fujifilm wins the 47th Okouchi Memorial Technology Prize, sponsored by the Okouchi Memorial Committee, for its development of the inverse manufacturing system for Fujicolor QuickSnap cameras. Achievement of zero emissions of all waste (zero waste-to-landfill) at Yoshida-Minami and Fujinomiya factories and Asaka Research Laboratories Reuse of all waste from raw material processing at the Odawara factory Yoshida-Minami Factory wins the fiscal 2000 Prefectural Governor’s Award for Merit in Industrial Waste Disposal.

2002

Establishment of the Fujifilm Group Green Policy to replace the Fujifilm Responsible Care Program Environment Forum (held annually since 2002) Achievement of zero emissions of all waste (zero waste-to-landfill) at the Miyanodai Technology Development Center and Ashigara and Odawara factories Fujifilm’s water-based solvent coated photothermographic film wins Green and Sustainable Chemistry Award sponsored by the Green and Sustainable Chemistry Network (GSCN). Issuance of site reports by the Miyanodai Technology Development Center and Asaka Research Laboratories Fujifilm wins the 20th Superior Trendsetting Factories and Offices Special Award, sponsored by the Nihon Keizai Shimbun Inc., for its wide-view film for LCDs.

2003

Start of Fujifilm’s environmental e-Learning Start of using natural gas as fuel for electric generators at Fujinomiya and Odawara factories Attainment of JEMAI’s Type III Eco-label for digital cameras; the first company in Japan to do so Ashigara Factory’s Environmental Report 2002 wins Prize for Site Report at the 6th Green Reporting Award sponsored by Toyo Keizai Inc. and the Green Reporting Forum.

* Black text denotes activities in Japan while green text indicates major overseas events.

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Glossary

Glossary

Eco mark
A mark awarded to products by the Japan Environment Association in recognition of the fact that the products play a role in protecting the environment through measures, such as reducing the impact on the environment of everyday life.

Reduce
The reduction to the minimum amount possible of resources (materials) input into the manufacturing process and the minimization of waste created.

Reuse
Through the reuse of materials, the generation of waste is reduced and the conservation of resources is achieved.

Endocrine
A term referring to secretions and hormones produced by an endocrine gland. Chemical substances that alter the endocrine system in a human or animal and lead to harmful effects in its body or in its offspring are called endocrine-disrupting hormones (or environmental hormones). It is suspected that some chemical substances have this effect, and these chemicals are referred to by Fujifilm as suspected endocrine-affecting substances.

Article Information Sheet (AIS)
Photo-developing solutions and related products are referred to as nonarticle products, while photographic film and related products are called article products. AIS’s provide the information necessary for the safe handling of article products, giving the name and manufacturer of each product, its handing methods, and environmental safety information relating to product characteristics, such as hazardousness and toxicity. These information sheets are provided with the product to users by the supplier.

Green Purchasing/Green Procurement
When products and services are purchased and procured, priority is given to the reduction of impact on the environment to the lowest level possible in addition to such considerations as need, price, and quality. Green Purchasing encompasses office consumables, office materials, and products for everyday living, while Green Procurement includes raw materials and items used in production.

Chemical Oxygen Demand (COD)
COD is an indicator that helps determine water pollution levels. It is a measure of the amount of oxygen consumed by oxidants in wastewater.

Global Reporting Initiative (GRI) Guidelines Corporate Governance
Corporate governance aims at establishing a system that enables efficient and sound business management. GRI Guidelines are global standards used in compiling sustainability reports and encompasses the areas of the economy, society, and the environment. Reports are evaluated by the GRI under the auspices of the United Nations Environmental Project (UNEP) in accordance with performance indicators released in June 2000.

Compliance
“Compliance” generally refers to compliance with laws and regulations, but here it means the avoidance of any action that disrupts social order or is viewed by the general public as being in violation of corporate and management ethics.

ISO 14001
This is an international standard for environmental management systems that was established in September 1996 by the International Standards Organization (ISO). Certifying organizations (Japan’s organization is the Japan Accreditation Board for Conformity Assessment (JAB)) strive for constant improvement by registering and evaluating corporations on the degree of their compliance with environmental management system standards. ISO14001 stipulates requirements for such environmental management systems.

Sustainability Accounting
Sustainability accounting is a system that measures and indicates the amount companies spend and invest to protect the environment and the effects thereof. The then Environment Agency announced draft guidelines for environmental accounting in March 1999 and Environmental Reporting Guidelines (2000) in May 2000.

Life Cycle Assessment (LCA) Zero Emissions
To realize a society in which resources are conserved, organizations take various measures to eliminate the generation of waste. These measures include the use of waste products as new raw materials and the generation of energy from refuse. At Fujifilm, Zero Emissions is defined as the 100% recycling of waste generated from business operations as well as the elimination of the incineration or landfill disposal of waste. LCA is a comprehensive evaluation of a product’s environmental impact at all stages, from development, manufacturing, and use to disposal or reuse. Energy input, the amount of materials used, CO2 emissions, and other values are used to identify and evaluate a product’s environmental impact throughout its lifetime.

Material Safety Data Sheets (MSDS)
MSDS’s refer to the safety instructions for nonarticles, such as processing chemicals, that are distributed for each product to all parties, from suppliers to end users, to prevent accidents involving the handling of chemical substances.

Independent Verification Report
To ensure the reliability of environmental reports, an independent verification statement is attached to the documentation. An independent verifier assesses the reasonableness of the methods used to collect and aggregate information to compile the report as well as the accuracy of the information included in the report. An independent verifier expresses the result of the assessment in the independent verification statement.

PRTR Law
This refers to a law promulgated in July 1999 (the Pollutant Release and Transfer Register Law). The law is aimed at reducing the amount of dangerous chemicals released into the environment and helping assist efforts to eliminate threats to the environment through the improvement of self-management by businesses that manufacture and use chemical substances. As of April 2001, it is mandatory for businesses that handle chemical substances to reduce the emission of applicable chemical substances. As of April 2002, the submission of activity reports to the government is mandatory.

Recycle
Waste products are not disposed of (neither incinerated nor taken to landfill sites) but are reused as resources. Material recycling involves reusing materials in their original form. Chemical recycling involves the return of plastics back to their original form through liquefaction, and thermal recycling involves using waste as fuel.

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Site Data

Site Data

Major External Recognition
F3 Plant won the 2002 Superior Trendsetting Factories and Offices Special Award
The Superior Trendsetting Factories and Offices Special Award, sponsored by the Nihon Keizai Shimbun Inc., is given to factories or offices that make significant social contribution through improvements in productivity, environmental protection measures, and reform of the workplace environment. The F3 Plant of the Electronic Display Materials Manufacturing Division at the Odawara Factory received this award for its wide-view (WV) film for LCDs. WV film, which is indispensable for PCs, is one of Fujifilm’s staple products. The production line of the F3 Plant dominates the WV film market, accounting for 80% of the market share. High-quality film, which can be used for even 50-inch displays, is manufactured at a strictly controlled clean room. The exhaust gas generated in the manufacturing process is transformed into energy in a thermal-storage combustion system for zero emissions. Such environment-friendly efforts were recognized and a factor in winning the award.

Site Reports Issued by Fujifilm’s Six Facilities in Japan
Glossary/Site Data

The Ashigara Factory, Odawara Factory, Yoshida-Minami Factory, Fujinomiya Factory, Miyanodai Technology Development Center, and Asaka Technology Development Center issue site reports to facilitate the understanding of local communities and residents in Fujifilm’s efforts toward environmental protection. The reports contain key issues and achievements in environmental measures, efforts to promote zero emissions and reductions in environmental impact, environmental accounting, and other information.

Site reports are available at www.fujifilm.co.jp/kankyoreport/index.html (Japanese only).

Good Design Award won
The Good Design Award, sponsored by the Japan Industrial Design Promotion Organization (JIDPO), is given to products that have a good balance between superior quality and design and user-friendliness. In fiscal 2002, eight products were awarded, including the FinePix F401 in the product design category and the QuickSnap package design in the communication design category. • Winning products Product design Digital still cameras: FinePix F401, FinePix S602, FinePix 30i, FinePix 2800Z, BIGJOB DS-270HD Compact APS camera: nexia Q-1 Single-use camera: QuickSnap Excellent Instant camera: Fuji Instax Mini 7 Communication design Package design: QuickSnap package

Supporting the “goo Slow Life”
Fujifilm supports the goo Slow Life Web site, which focuses on living the slow life in harmony with the environment (nature) so that people can enjoy their lives by truly experiencing the changes of all four seasons while reconsidering their busy lives in pursuit of efficiency and speed, adding the environment-oriented point of view to their daily lives, and choosing appropriate things (i.e., environment-friendly products) for the next generation. slowlife.goo.ne.jp/photo/ (Japanese only)

From the Editors
• In this edition, we have included the opinions of those in charge of product development in the Design for Environment Section. Although we could not include all opinions due to space limitation, we would be satisfied if it helped illustrate the fact that Fujifilm is making steady results in improving environmental quality. • We changed the name of the report from Environmental Report to Sustainable Report and added more social information. To form closer ties with all stakeholders, we shall henceforth keep you abreast of Fujifilm’s vision and attitude instead of merely providing information on our systems and achievements. Also, we would like to improve the content so that both Fujifilm and it readers, i.e., stakeholders, are satisfied. Fujifilm Sustainability Report 2003 Issued by: Kimitaka Kameoka General Manager Environmental Protection & Products Safety Division Issued November 2003 (annually)

Technology Award won in 1st Manufacturing Awards
The Technology Award in the 1st Manufacturing Awards was given to Fujifilm for its development, operation, and management of the Fujicolor QuickSnap Inverse Manufacturing Factory. The Manufacturing Awards was established in 2002 to be given to organizations or individuals that show creativity in their manufacturing, spirit, and efforts as well as future development.

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Please direct any comments or questions regarding the content of this sustainability report or any area of Fujifilm’s environmental protection activities to the address below. The content of this sustainability report is available at following Fujifilm Web site. home.fujifilm.com/info/topenv/index.html For any inquiries regarding the content of this booklet, please contact us at the following addresses. Environmental Protection & Products Safety Division, Tokyo Head Office, Fuji Photo Film Co., Ltd. 26-30, 2-chome Nishiazabu, Minato-ku, Tokyo 106-8620 Fax: +81-3-3406-2131 Environmental Protection & Security Division, Ashigara Factory Nakanuma 210, Minami Ashigara-shi, Kanagawa Prefecture 250-0193 Fax: +81-465-73-6909 The QuickSnap inverse manufacturing factory accepts tour requests from groups. Please use the following number to arrange tours. Fax: +81-465-73-6901 (tour coordinator, General Affairs Division, Ashigara Factory) Environmental Protection & Security Section, General Affairs Division, Odawara Factory 2-12-1 Ogi-cho, Odawara-shi, Kanagawa Prefecture 250-0001 Fax: +81-465-32-2180 Environmental Protection Section, General Affairs Division, Fujinomiya Factory Onakazato 200, Fujinomiya-shi, Shizuoka Prefecture 418-8666 Fax: +81-544-26-7176 Environmental Protection & Security Section, General Affairs Division, Yoshida-Minami Factory 4000 Kawajiri, Yoshida-cho, Haibara-gun, Shizuoka Prefecture 421-0396 Fax: +81-548-32-7126 HC (section in charge of the environment and safety), Miyanodai Technology Development Center Miyanodai 798, Kaiseimachi, Ashigarakami-gun, Kanagawa Prefecture 258-8538 Fax: +81-465-85-2105 Environmental Protection & Security Section, General Affairs Division, Asaka Research Laboratories, Asaka Technology Development Center 11-46, Senzui 3-chome, Asaka-shi, Saitama Prefecture, 351-8585 Fax: +81-48-468-2307 Factory in U.S.A. Fuji Photo Film, Inc. Environmental Health and Safety Department 211 Pucketts Ferry Road, Greenwood, SC 29649 Fax: +1-864-388-1934 Factory in Europe Fuji Photo Film, B.V. S-PEA-ESH Environmental Health and Safety Department Oudenstaart 1, P.O. Box 90156, 5000 LJ Tilburg, The Netherlands Fax: +31-13-579-1586 Factory in China FUJIFILM Imaging Systems (Suzhou) Co., Ltd. 138 Chang Jiang Road, New District, Suzhou, 215011, Jiansu, P.R.C. Fax: +86-512-6825-7122

This booklet is made using a mixture of 100% recycled paper.

We promot green purchasing for printing services.

This booklet is printed using soybean-oil ink certified as environmentally friendly by the American Soybean Association.

This report is printed and bound in accordance with GPN-GL14 Purchasing Guidelines for Offset Printing Service. • Paper: 100% recycled paper is used. • Ink: Soybean-oil ink is used. (For the front cover, a vegetable-oil OP varnish containing no aromatic components is used.) • Binding: Notch binding using EVA hot-melt glue, the nonsegmenting ability of which has been improved.

Issued: November 2003 Next edition: October 2004 (scheduled)


				
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