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Sustainability Report 2015Fuji Xerox (Hong Kong) Limited

http://www.fujixerox.com.hk

Date of Issue: October 2015

© Fuji Xerox (Hong Kong) Limited 2015

Printed on Fuji Xerox DocuColor Production Printing System

Xerox, Xerox and Design, as well as Fuji Xerox and Design are registered trademarks or trademarks of Xerox Corporation in Japan and/or other countries.

Access electronic copies by taking a photo of the leaf using the SkyDesk Media Switch App.


Innovating for Tomorrow’s Hong Kong

Top Commitment 02

40

26

Corporate Profile and Governance 12

Report Scope and Approach 06

Lead Through Innovation : Interesting 34

18

42

46

GRI Content Index

CSR Indicators

Lead Through Innovation : Kind

Contents

Lead Through Innovation : Strong

Verification

1

Cover story

This year’s symbolic cover shot of an adorable little girl energetically reaching out to grasp her

future perfectly encapsulates our commitment to leveraging innovation to create a more

sustainable environment for future generations. As a responsible corporate citizen, Fuji Xerox

(Hong Kong) Limited admits that the world’s population is growing, global warming is on the

increase and precious natural resources are becoming increasingly scarce. As a result, we

continue doing our utmost to innovate solutions and services to redress each imbalance.

We welcome for any comments on our activities by e-mail:[email protected]

Lam Shin HengDaughter of Helen Tam,

Senior Sales Planning Executive,

Fuji Xerox (Hong Kong) Limited

TopCommitment

Top commitment from Herbert Hui, Managing Director of Fuji Xerox (Hong Kong) Limited

TopCommitment

3

Our Top Priority Transforming products and services through innovation and delivering on a firm commitment to stakeholders to uphold the values in which we believe are core to Fuji Xerox (Hong Kong) Limited’s drive to become an excellent company. Over the past half century, pioneering innovations such as Xerography, laser printing and the Ethernet integrated platform that connects, copies, prints and scans e-Documents to business operations have enabled us to transform our business from simply marketing and selling copiers to digital products and eventually setting the pace in color products, solutions and services. Having expanded exponentially with Hong Kong’s economy, we are now a partner of choice for many leading multinational and local enterprises. In order to further nurture mutual trust and enrich diverse global cultures, our teams are actively harnessing both products and human resources. In doing so, we are continuing to strive hard to contribute to local community developments in vital areas such as document services and communications.

As we move into a second successive half century of success, I and my management team firmly believe Corporate Social Responsibility (CSR) will remain an ongoing challenge in today’s rapidly evolving world. To this end, we are determined to innovate “Unity of Words and Deeds” (Genko-Itchi) initiatives that will help to create and maximize values for – and with – our stakeholders. Our over-riding objective is to sustain the strength of our value chain. As we move further into an era increasingly fuelled by digitalization and cloud technology, everyone at Fuji Xerox (Hong Kong) will continue to do all they can to provide customers with the best suitable solutions. Each one of them fully backed by a visionary management team which remains totally devoted to setting good corporate citizenship benchmarks while meeting the current and future needs of valued customers like yourself.

Looking BackwardThe undisputed highlight of this very fruitful year has undoubtedly been our celebration of our 50th anniversary here in Hong Kong. Our robust half century of growth has seen us become many diverse industries’

most trusted Information and Communications Technology (ICT) supplier. We attribute our longevity to our parent company, Fuji Xerox’s Good Company Concept of “strong”, “kind”, and “interesting”.

In endeavoring to be “strong”, we never stop trying to deliver environmental-friendly solutions and services that satisfy customers’ needs for enhanced productivity and profitability. We remain “kind” by providing solutions and services that make a positive and lasting contribution to society and the environment as a whole by significantly reducing our and our partners’ carbon footprints. As for being “interesting”, we do all we can to create a harmonious working environment where a happy staff ensures contented customers. I am delighted to report that our previous five annual sustainability reports show that more and more stakeholders are joining our unique value chain with every passing year as a result.

Since first opening our doors for business in Hong Kong in 1964, we have helped dozens of companies to save human resources and operating expenses worth many millions of dollars. Along the way, we have won more than 100 coveted local and international industry awards for our achievements in the areas of sustainability and CSR practices. Every year since 2002, we have also been granted the Hong Kong Council of Social Service’s Caring Company logo. This accolade not only underlines the depth of our care for our employees and community but also the success of our work on behalf of various Green causes. In 2012, we also became the first office-based organization in Hong Kong to achieve ISO 50001 Energy Management System accreditation. This was followed when we were selected as the industry only Qualified Service Provider in a Government-funded initiative devised to promote carbon audits and bring about a cleaner, greener Hong Kong.

Fuji Xerox (Hong Kong) has been striving to grow itself into an industry leader - not only within the ICT field, but also in the areas of sustainability and environmental consulting. This year alone we have achieved outstanding marks in the Hong Kong Quality Assurance Agency CSR Index Plus scheme in which we were benchmarked against over 600 participating companies in China and Hong Kong. Such a remarkable accomplishment marks the beginning of a new chapter

Top Commitment

54

during which we will do everything possible to further uplift CSR standards. As always, our core objective remains the attaining of ever-more impressive sustainability milestones for both ourselves and our stakeholders.

As detailed in previous sustainability reports, our business transformation remains on track and we continue to offer solutions and services whose sustainability values are helping to generate increasingly sizeable revenues. As we carry on enhancing our image as an all-round ICT consultancy organization, I am delighted to report that we have not only achieved steady growth but also continual expansion of our Year-On-Year (YOY) “Triple Bottom Line” CSR ratings. Specific examples of policies or practices that have contributed to this trend include a 6.4% five-year Compounded Annual Growth Rate (CAGR) increase in revenue turnover, a 1.6% reduction in Carbon Dioxide (CO2) emissions and a phenomenal 11.4% increase in Staff Volunteering Hours.

Moving ForwardThe key catalyst for organizations wishing to become more sustainable is a strong infrastructure capable of coping with non-stop changes and challenges. This year, we have re-established our working and business environment for all colleagues. The move resulted from our determination to advance both our business and our level of commitment for stakeholders. Another major development was our head office’s evolution into a zero carbon workplace embedded with state-of-the-art technologies that will eventually help create a cleaner, greener Hong Kong for all. Once we have begun rolling out our ultra-advanced real-time energy management tool, we will also be able to deepen our deployment in ISO 50001 Energy Management System. The move will leave us perfectly placed for upgrading to the next generation of the ISO 14001:2015 Environmental Management System when it comes online.

Moving forward, Fuji Xerox (Hong Kong) will continue to fully leverage its outstanding proven experience in green ICT and workplace management initiatives in order to drive its ever-expanding portfolio of solutions and services. To date, we have already successfully completed several major ICT projects and are now considering Environmental, Social and Governance (ESG) requirements for other corporations by using our parent company’s flagship Managed Print Services (MPS) and other innovated solutions and services. In taking the next step, we are determined to constantly keep evolving our deliverables in line with our tried and tested Plan-Do-Check-Act (PDCA) approach aimed at improving corporate governance. When Hong Kong’s inaugural “Document and Information Management Solution Index” was announced in November 2014 during our DocuWorld event, we once again underlined the importance of our continuing to innovate developments and applications in Cloud, Process Outsourcing Services as well as Customer Relations Management. Our primary reasoning for doing so is to outperform 2015’s global average. To ensure this happens, we have also reformed our unique proprietary Business Process Optimization (BPO) services, innovative SkyDesk series and corporate sustainability-enhancing Green Dashboard. All three solutions and services are geared to helping enterprises to establish Future Smart Offices where they can overcome challenges and create opportunities to measurably improve their performance.

Economic

Environmental

SocialVolunteering Hour (Hours)

*Includes electricity and gasoline consumption (i.e. item 10 and 16 at the section of “CSR Indicators” respectively) for all operations in Hong Kong.

CAGR (Ratio)

FY2012

FY2013

FY2014

FY2014

FY2014

0 1 2 3 4 5

900 1000 1100

0 2000 40001000 3000

FY2012

FY2013

FY2012

FY2013

CO2 Emission* (Tonnes CO2-e)

2,8552,855

3,4463,446

3,8393,839

4.74.7

3.73.7

55

1,0751,075

1,0091,009

993993

6.4%

1.6%

11.4%

Top Commitment

54

Together with my fellow managers and employees at Fuji Xerox (Hong Kong), I am a firm believer that sustainability is vital for continued business success. I also believe that we as a company must remain fully accountable for the impact of our products, solutions and services on our stakeholders and local community. In delivering on this goal, we are now embarking on a new journey of not only change and challenge, but also of hope and opportunity.

In closing, I would like to once again thank all of our stakeholders for supporting and sharing our values and vision for sustainable ICT offerings and for joining us in perfecting better competitive business models and work environments. I hope you will find this year’s sustainability report to be both informative and inspiring and eagerly look forward to hearing your feedback.

Yours sincerely,

Herbert HuiManaging DirectorFuji Xerox (Hong Kong) Limited

Report Scope and Approach

Committed to greater transparency andfully compliant with stringent international reporting standards


7

Reporting ObjectivesIn demonstrating its commitment to greater transparency and meeting international standards of reporting CSR performance, Fuji Xerox (Hong Kong) is trying to ensure the qualitative and quantitative information is up to the increasing requirements and deepened by our PDCA concept so as to give all stakeholders a better understanding. Moreover, we add our own philosophy in the report so as to reflect how we embed CSR into the management approach with the consideration of responding social issues along our value chain.

This is our sixth sustainability report and it is published annually based on the Japanese financial year ending 31 March. Some information is provided on events that have been in progress, completed within the reporting period as well as planned to happen in the following fiscal year (FY).

Reporting ScopeThis report contains information on significant economic, environmental and social impacts arising from our operations from 1 April 2014 to 31 March 2015 (i.e. FY2014).

• Hong Kong Island’s head office

• Tsuen Wan’s Recycling Center

• Kwai Hing’s Document Technology Center

• Macau office

Please note that not all Macau office performance information has been included because of different data collection systems.

Reporting PrinciplesOur FY2014 Report complies with:

• Internationally recognized Global Reporting Initiative (GRI) G4 Guidelines on Core Level, ISO 26000:2010 Guidance on Social Responsibility, United Nations Global Compact Initiatives, United

Nations Millennium Development Goals, and Business Environment Council (BEC) Handbook of Understanding Materiality for Environmental, Social and Governance Report

• Stakeholder concerns

• Benchmarking against other industry players

External Assurance This report has been compiled in accordance with the GRI G4 Guidelines on Core Level with respect to the extent of coverage and information provided and has been independently assured by the Hong Kong Quality Assurance Agency (HKQAA) in accordance with the GRI G4 Guidelines, and ISO 26000:2010 Guidance on Social Responsibility. The assurance statement can be found in the last chapter of this report.

CSR ManagementWith the development of ICT, the expansion of Socially Responsible Investment funds, and the integration of Environmental, Social, and Governance (ESG) issues into investment, stakeholders are more rigorously monitoring the activities of businesses. Companies are now expected to recognize that they are accountable for their entire value chain, including all upstream and downstream activities, and to pay careful attention to environmental and social factors in their operations.

CSR is Synonymous with Corporate Management: Contributing to Mutual Trust and Cultural Development around the World Through “Unity of Words and Deeds” (Genko-Itchi).

Abstracted from “Top Commitment” of Fuji Xerox Sustainability Report 2015


8

Following the direction from our parent company - Fuji Xerox Co., Ltd., we find our calling in document services and communications. Our primary objectives are to assist customers in creating value and to contribute to the progress of society by providing an environment for valuable communications. Our Mission Statement commits us to “Build an environment for the creation and effective utilization of knowledge,” “Contribute to the advancement of the global community by continuously fostering mutual trust and enriching diverse cultures,” and “Achieve growth and fulfillment in both our professional and personal lives.” These three points are our CSR objectives. For all Fuji Xerox, CSR is synonymous with corporate management and cannot be separated from our business pursuits. In general, CSR starts with insightful observation of social issues and extends to thoughtful reflection on how to deliver value to customers, how our actions impact stakeholders, and how to realize the Vision of Fuji Xerox including our organizational culture.

To firmly establish CSR in all areas, Fuji Xerox (Hong Kong) is committed to share CSR management and performance by all means and at the end to collect valuable comments from stakeholders for further improvements. The primary medium that we use to report our non-financial information is through this annual Sustainability Report while the general approach is that the affiliates in each country or region will prepare and issue separate sustainability reports where they are required to do so under local legislation or needs from the local market. Although Fuji Xerox and Fuji Xerox (Hong Kong) are not listed companies, we advance the disclosure of information to reflect the interests of stakeholders including investors given that we are a consolidated affiliate of FUJIFILM Holdings (listed on the First Section of the Tokyo Stock Exchange). Our practice of sustainability reporting is one of key PDCA exercises to continually engage with stakeholders for better CSR management. The report framework itself also follows same approach to enhance the credibility and comprehensiveness by adding compliance to international, local and industry requirements under the basis of GRI fulfillments. We ultimately hope to enhance our positive impact posed to our value chain for all by further increasing awareness of locally grounded issues and ideas by efficiently responding with stronger bonding to the society.

Material Aspects

This year our report is continued focusing on the material matters as identified through our materiality assessment and we have limited our report to be in accordance with GRI G4 Core requirements. Our GRI Content Index is shared on the respective section of this report.

The way we identify our material issues is based on the Global Reporting Initiative reporting with reference to other applicable guidelines and principles. This rigor standard helps us to systematically consider our stakeholders’ voices. We take materiality test into consideration, which seeks to identify and prioritize sustainability related issues. The sources of data are categorized as those related to our stakeholders’ voices and those related to Fuji Xerox (Hong Kong)’s voice. A materiality matrix is produced based on the frequency with which a matter is referenced within the various stakeholder sources.

Last year through the processes of risk assessment and stakeholder engagement involving around 900 colleagues as well as over 250 external stakeholders from 15 engagements through Green Tours in Fuji Xerox (Hong Kong), we added one additional step to incorporate insights gained from our work with stakeholders into the business. In October 2014, we engaged Hong Kong Chief Information Officers (CIO) or those in similar capacity to discover the challenges and frustrations organizations are facing in terms of document and information management. It enhances the company understanding of stakeholder concerns that could be a risk or opportunity to the business. As a result of the materiality process we have stated in the Sustainability Report this year on the material matters identified in the High-High area of the Materiality Matrix diagram listed on page 9 was essential to defining our report content. Other matters indicated are touched on lightly in this report and we are tailoring communications with associated stakeholders to share more granular detail.

Since 2008, Fuji Xerox (Hong Kong) regularly re-identified the material aspects through the process in managing all Fuji Xerox annual CSR Survey based on international and Japanese standards and guidelines including but not limited to United Nations Global Compact’s 10 Principles, and the Japan Association of Corporate Executives’ New Corporate Assessment Standards. In order to address the issues concerned by local stakeholders, we conduct materiality assessment with consideration of local benchmarking platforms whereas applicable.


9

Stakeholder Engagement

Carbonmanagement

End of life resources recovery

EnergymanagementEco product

Biodiversityconservation

Greenachievements

Businesscontinuity

Customersatisfaction Governance and

risk management

Communityinvestments

Cultureinclusion

Documenting cultures& precious information

Information security

Equalopportunities

Occupationalhealth and safety

Manpower development

Supply chainmanagement

Environmental education

Watermanagement

Environment

Social

Economic

Importance to Fuji Xerox (Hong Kong) Limited

Value chain

Vision, missionand values

Chemical risk

Climateleadership

Paper management Wastemanagement

Futuregenerations

education

Productsafety

Ethicalprocurement

Employee satisfaction

Volunteering

Medium

Med

ium

• Materiality Matrix

• CSR Improving Mechanism


10

Stakeholders Concerns Fuji Xerox (Hong Kong)’s Engagements

Quality of Products and Services; User-friendly Design; Cost Effectiveness of Services; Responsiveness of Services; Information Security

Safe Working Conditions; Fair Working Environment; Benefits & Welfare; Career Development; Employee Satisfaction

Staff Communication Meetings; Managers’ Gathering Sessions; Newsletters; Staff Club Activities

Economic Sustainability; Workforce Stability; Governance and Risk Management; Legal Compliance

Social Contribution; Employment Opportunities; Mentoring; Employing Vulnerable Individuals

Economic Stability; CSR Performance Management; Business Ethics; Fair Trade

Low Carbon Office; Eco Product Life Cycle;CSR Recognition; Green Procurement

Customer Satisfaction Survey; Website; Press Release; ISO 27001

ISO 14001/ISO 50001/ FSCTM Chain of Custody/5S Audits; Ad-hoc Meetings and Visits

Charity Functions; Fund Raising Campaigns; Ad-hoc Meetings

Irregular Meetings; Letters; Code of Conduct

ISO 22301 Audit; Regular Meetings; Annual Report; Internal Audit; CSR Review

Customers

Employees

Local Communities

Suppliers

Global Environment

Shareholder(Fuji Xerox)

Management Approach

CSR management at Fuji Xerox has its origins in the business philosophy of Joseph C. Wilson, founder of Xerox Corporation. Mr Wilson’s philosophy - “Our business goal is to achieve better understanding among men through better communications”, which anticipated today’s concept of corporate social responsibility, is the foundation on which Fuji Xerox built its Good Company Concept and Mission Statement. We have adopted a CSR Improving Mechanism and promoted 360° of SustainabilityTM to communicate how Fuji Xerox, including Fuji Xerox (Hong Kong) embeds sustainability into the value chain as a summary of our main CSR activities at all stages of business activities, from materials procurement all the way through to reuse, recycle and disposal. At the end, the created values are directly enjoyed by our well-defined six groups of stakeholders and below summarized management approach on how Fuji Xerox (Hong Kong) has been building trusts with them accordingly.

Engagement with Customers

Fuji Xerox (Hong Kong) provides values that exceed customer expectations and contribute to the sustainable development of customers and their companies. In this way, we promote mutual

understanding in the world that lies beyond customers to building a better society. We will improve the quality and productivity of customer communications by unifying paper and digital information and seamlessly integrating this with cloud services and mobile solutions. Through these initiatives based on “Unity of Words and Deeds” (Genko-Itchi), we support customers in solving their management problems and creating value for gaining the satisfaction and trust of customers by being a partner that can be consulted on all matters.

Engagement with Employees

Fuji Xerox creates a corporate culture that motivates and empowers individual employees to achieve their full potential with their individual traits and different backgrounds, to make maximum use of their expertise and ability and have the satisfaction of personal and professional growth. In Hong Kong, we are engaged in various initiatives to improve employee satisfaction, increase diversity, provide personnel learning and development, promote health, while seeking to lead each of our employees to rise to the challenges of growth and change and to think and act on their own.

• Responding to Stakeholders’ Needs


11

Engagement with Global Environment

Fuji Xerox (Hong Kong) does its utmost to harmonize its activities with the environment in every area of business, mobilizing all its capabilities to lead the industry in the creation of environmental value. Our environmental efforts, divided broadly in products, solutions and services as well as product or project lifecycle measures, have focused on the three key goals of curbing global warming, conserving and recycling resources, and reducing chemical risk. At Fuji Xerox, we acknowledge our responsibility to minimize our environmental impact at every stage of the product lifecycle, including sourcing of parts and materials, assembly, processing, logistics, and end-user power consumption, as well as product recycling and disposal. Meanwhile, cognizant of growing concerns in Asia, we have added a fourth goal, that of preserving ecosystems and biodiversity to establish an evergreen living environment for next generations.

Engagement with Local Communities

Fuji Xerox helps build better communities by using its core competencies to solve social problems and by encouraging employee involvement at the community level. In addition to providing excellent value to customers, Fuji Xerox (Hong Kong) and all Fuji Xerox affiliates are attuned to their communities’ expectations and motivated by high ideals, and are thus committed to supporting cultural development and helping create a better society through farsighted and groundbreaking initiatives from a long-term and wide-ranging perspective. Working together, we are pursuing activities which aim, through our core business, to help solve the social issues. In the future, our longstanding programs will be accompanied by still more actions in Fuji Xerox unique value chain, thus using our core competencies to help solve ongoing social problems by creating synergies between our social contributions and business operations.

Engagement with Suppliers

Fuji Xerox aims to engage solidly with our suppliers and develop a strong, competitive supply chain in a spirit of seeking mutual benefit. By concerning ourselves not only with financial and other business-related matters, but with CSR in such areas as environmental and social issues and corporate governance, we at Fuji Xerox (Hong Kong) contribute locally to the solution of

social issues including those concerning environment, human rights, labor, and corporate ethics. In particular, we view our suppliers as partners who share our philosophy and policies. By sharing CSR related values with the aim of minimizing related risks, we promote ethical procurement with the aim of building mutually beneficial relations with these partners and enhancing both their competitiveness and ours.

Engagement with Shareholder (Fuji Xerox)

Fuji Xerox targets to build and maintain a sound, transparent, and sustainable corporation. In Hong Kong, we devoted continual efforts to consolidating our capacity as one of the most important profit-generating enablers among all Fuji Xerox affiliates. With increasing collaboration and bonding to counterparts in China region, we committed to achieve the assigned CSR targets in the fast changing and unfavorable economic environment. Internally, we ensure the compliance, risk management while externally benchmarking ourselves to establish Fuji Xerox (Hong Kong) as a local and global trusted ICT partner in providing leading document and communication services.

Corporate Profile and Governance

Further raising the bar for corporate governance


13

Fuji Xerox Philosophy

CSR management at Fuji Xerox has its origins in the business philosophy of Joseph C. Wilson, founder of Xerox Corporation, which anticipated today’s concept of corporate social responsibility.

“Our business goal is to achieve better understanding among men through better communications.” – Joseph C. Wilson

Mission Statement

The Mission Statement sets forth a common goal for Fuji Xerox and all operating companies, including domestic and overseas affiliates and sales subsidiaries, as well as all employees.

Fuji Xerox (Hong Kong) is a leading ICT provider specializing in document consultancy. Established in 1964 and known formerly as Rank Xerox (Hong Kong) Limited, we are a subsidiary of Fuji Xerox Co., Ltd. which was founded in 1962 in Tokyo, Japan. Fuji Xerox (Hong Kong) became one of affiliate operations of Fuji Xerox in December 2000 and it now employs over 900 people. The company provides document consultancy solutions and services to customers in every industry, through a full range of knowledge from printers, multifunction devices, production printing systems, document management and workflow software to Enterprise Print Services and Business Process Services cover the entire spectrum of customers’ needs in Hong Kong*, and Macau.

* Excludes certain logistics management tasks which our Tsuen Wan Recycling Center is outsourced to external contractors.

Contribute to theadvancement of theglobal community by

continuously fosteringmutual trust andenriching diverse

cultures.

Build an environmentfor the creation andeffective utilization

of knowledge.

Achieve growth andfulfillment in both

our professional andpersonal lives.

Fuji Xerox will contribute to the development of a sustainable society by

fulfilling the Fuji Xerox Mission Statement. Operating at all times on the

principle that “CSR is synonymous with corporate management,” we aim to

help our customers create value by ensuring the unity of words and deeds and

to become a company trusted and cherished by all stakeholders.

Abstracted from “Purpose of Management at Fuji Xerox” of Fuji Xerox Sustainability Report 2015


1514

Shared Values Our Shared Values comprise 10 value statements that are commonly held by Fuji Xerox, our affiliates, and all of our employees to achieve the Fuji Xerox Mission Statement. Each of the 10 values emphasizes our responsibility and sets forth how we should approach business as members of society and as individuals based on a fundamental respect for humanity.

The Good Company Concept From its origins in the Xerox Philosophy, business philosophy of Fuji Xerox has evolved into the Good Company Concept and the Mission Statement. The concept unveiled in 1992 laid the foundation for this approach, with its emphasis on building a “strong”, “kind” and “interesting” corporation, and its shapes our CSR management system even today. In the Sustainability Report of Fuji Xerox (Hong Kong) since 2010, the concept is continually highlighted by the three stories telling how we engage stakeholders in creating shared values to the local and global community.

Shared Values

Customer Satisfaction

Team Spirit

Environmental Consciousness

High Ethical Standards

Scientific Thinking

Professionalism

Trust and Consideration

Joy and Fulfillment

Adventurous/Pioneer Spirit

Cultural Diversity

Contribution to customers and shareholders

Consideration for the environment

Contribution to local and globalcommunities

Workplaces that can demonstrate creativity

Employees who experience asense of growth

Strong

Kind Interesting


1514

Value Creation for Society At Fuji Xerox, we are pursuing ongoing CSR initiatives throughout the corporate value chain, assuming responsibility for all processes, from procurement of materials to 3R (Reduce, Reuse, Recycle) and disposal. Above all, we are striving to contribute to the sustainable development of society by offering customer solutions grounded in a better communication environment, in keeping with our corporate mission.

Remarks: Includes material matters identified in the High-High area of the Materiality Matrix diagram.

Stakeholders Engaged and Materiality Issues Addressed in Hong Kong

Fuji Xerox BusinessActivities

Use by Custom

ers

Reduce, Reuse,Recycle, Disposal

R&D, Manufacturing, Sales

Mat

eria

ls Pr

ocur

emen

tGlobal Environment

Su pp l i e r s

Employees

Local CommunitiesGlobal Environ m ent

Local Communities

S u p p l i e r s

Employees

Local Communities• Ethical Procurement

• Value Chain

• Volunteering

Employees • Manpower Development

• Employee Satisfaction

Customers• Customer Satisfaction

• Eco Product

• Information Security

Shareholder (Fuji Xerox) • Business Continuity

• Governance and Risk Management

Global Environment• Carbon Management

• Energy Management

• Environmental Education

• Waste Management

Suppliers• Supply Chain Management


1716

Governance As per market demands for higher corporate transparency and give greater voice to stakeholders, corporate governance becomes a key topic for all companies.

Fuji Xerox (Hong Kong) is an operating company which is managed under Fuji Xerox Greater China Operations (GCO) which is jointly owned by Fuji Xerox with a long heritage from the partnership between the Japanese company Fuji Photo Film (Now FUJIFILM Holdings Corporation) and the British company Rank Xerox (now Xerox Limited) and to supply xerographic equipment and supplies in 1962. Other than receiving operational guidelines direct from GCO, Fuji Xerox (Hong Kong) agrees its strategic plans within a three-year medium range forecast. Operational direction for the business is agreed within an annual operating plan developed in line with GCO guidelines before each fiscal year gets underway. Such control is subsequently carried out by a General Management Office (GMO) chaired by Fuji Xerox (Hong Kong)’s Managing Director and supported by Senior Management Committee (SMC) including nine different functional heads. Operating plans and objectives are then shared via annual meetings. Our Managing Director is committed to building a sustainable Fuji Xerox (Hong Kong) and the GMO recognizes that the company’s success is dependent upon engaged employees, loyal customers and how well we sustain trust built and support them every challenge in the value chain.

Voice of CustomersCompany Policy DeploymentBusiness Performance ReviewKey Marketing and Product-related CampaignsHighlighted Environmental, Social Engagement

Monthly Senior ManagementCommittee Meeting -Managing Director/Functional Heads

Regular Department Meetings -Managing Director/Functional Heads/Business Managers

Business Performance Update

Monthly/Quarterly Departmental Review

Operational Quality, Environmental Health & Safety, Human and Community-related Issues

Fuji Xerox (Hong Kong) Limited

Fuji Xerox Greater China Operations (China based)

Fuji Xerox Co., Ltd. (Japan based)

SalesOperations

SalesOperations

External Affairs& Operations

Support

External Affairs& Operations

Support

Services Operations

Services Operations

MarketingMarketing HumanResources

HumanResources

Finance& LegalFinance& Legal

FUJIFILM HoldingsCorporation (Japan based)75%Xerox Corporation(U.S.A. based)25%


1716

Risk Management At Fuji Xerox, we are serious about managing risk, not only through emergency preparedness but also through risk management operations aimed at managing ordinary risk, especially latent risks, in terms of likelihood of occurrence and anticipated severity of impact on business in case of occurrence. The SMC of Fuji Xerox (Hong Kong) regularly holds meetings to identify, discuss, and make decisions on high-priority risk management items. In striving to achieve continual process enhancement under the PDCA management cycle, Fuji Xerox (Hong Kong) embeds Japan Quality Program (JQP) into its management framework as the basic business planning structure. This not only serves to better assess our current situation from an organizational perspective but also in clarifying our management objectives’ effectiveness and identifying key areas for sustainable development. Currently JQP functions with the Japanese Sarbanes Oxley (J-SOX) as well as other 10 standards and guidelines to excel Fuji Xerox (Hong Kong) risk management in general.

In the past three years, we focused on enhancing our risk management through a deeper actualization of management systems focusing more on business continuity and supply chain. Mirroring the structure of current ISO 22301 Business Continuity Management System, we will upgrade our 4-cycle-completed ISO 14001 Environmental Management System to 2015 version and certify with ISO 27001 Information Security Management System in 2015-2016.

Meanwhile, our general legal and finance policies lay down how compliance and internal control must be maintained. At least once every year, we conduct self-assessment, external management systems audits and rigorously benchmark legal compliance and general business process integrity. An annual code of conduct self-evaluation covering all Fuji Xerox staff helps to ensure an even higher standard of ethics. The code of conduct covers respect for basic human rights as well as open, fair and clear corporate activities. Specific areas covered include, but are not limited to, human rights, prevention of discrimination and harassment, privacy, labor rights, forced and child labor, workplace health and safety, communication, information disclosure, fair competition, sales activities and procurement, prevention of corruption, and rejection of antisocial forces. With this regard, we reassessed the required elements and added significant subjects but not limited to those required by Fuji Xerox (Hong Kong) certified ISO systems and localized policies and procedures so as to extend the comprehensiveness of coverage. In FY2015, we will conduct a full scale Ethics and Governance check for the whole 900 taskforce in order to enhance their awareness and understanding on related subjects.

FinancialAudit

ISO22301

ISO50001

AEO

J-SOX

ISO14001

5S

ISO27001

FSCTM

CoCJQP

ISO26000

Sustainable andRisk Management

Lead Through Innovation :Strong

Gearing up for strong revenue growth

Lead Through Innovation :Strong

19


To be a “strong” company delivers excellent products, solutions and services that satisfy customers and is able to reward its shareholders continuously.


• Value Chain

• Volunteering




• Eco Product










Fuji Xerox (Hong Kong) will continue the transformation as per the market has evolved and our

customers’ needs have changed. This has resulted in consistent growth and maintenance of our

market-leading position. Today, our industry is facing some big challenges as a result of changing

market trends such as declining print volumes, commoditization, decreasing margins and the

megatrend of digitization under keen competition. Despite these challenges, we aim to improve our

cost effectiveness and create sustainable and profitable revenue growth for the long-term. We are

evolving to meet our customers’ rapidly changing needs by providing end-to-end solutions that will

help them reduce costs and allow them to focus on their customers. Our strategy follows Fuji Xerox’s

direction of providing value with services and volume with technology to our stakeholders while

internally transforming our business cost structure for the next stage of ICT innovation. Our critical

business drivers are to transform our sales organization into a services-led solutions business, identify

new lines of business to meet the emerging opportunities in the digital economy.


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The First “Document and Information Solution Index”

We remain committed to understanding our customers’ needs and delivering on our promise. In November 2014, Fuji Xerox (Hong Kong) announced the first “Document and Information Management Solution Index” of Hong Kong aiming to unveil insights into the document and information management trends, efficiencies and outcomes at work in enterprises in Hong Kong and around the globe. Our findings will ultimately help all interested parties to achieve breakthrough results in the aspects of efficiency, innovation and sustainability.

The survey involved some 75 chief information officers or senior executives and set out to better understand the challenges now facing companies of all sizes in document and information management. Index results harvested to date indicate that the nearly 50% of Hong Kong businesses who still manage their documents and information manually are beginning to realize the importance of Document & Communication Services. This is particularly true when it comes to addressing ways such services can help drive business efficiency, improve knowledge sharing, and reduce printing consumption. To assist enterprises in overcoming challenges brought by document and information management, Fuji Xerox (Hong Kong) has launched its unique 3-pillar offerings of iWorkplace, BPO, and CCM to help enterprises establish the Future Smart Office, where they could spin challenges into opportunities and improve business performance.

Drive Innovation,Enforce Governance

iWorkplace

BusinessProcessOptimizationBorn Digital, Stay Digital

Inspire Actions, Create Opportunities

CustomerCommunicationsManagement

Under the three-year implementation of accelerating “Genko-Itchi” initiatives, our united effort proves replication of the values generated for local operations and taskforce to external stakeholders are successful in helping both our CSR and business performance growth. In 2015, we translated our “Genko-Itchi” experiences into the innovative 3-pillar offerings.

• iWorkPlace is a well-designed space focused on green, governance and mobility. Technology is presented in all business activities with governance are being analyzed and monitored on dashboards.

• Business Process Optimization (BPO) is an approach helping organization to re-engineer their operations to achieve significant improvement in efficiency, productivity, quality and cost.

• Customer Communications Management (CCM) is a service and technology that enables multi-channels customer engagement effectively.


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Real-time interactive energy tracking system by Fuji Xerox (Hong Kong)Designed and proven to help school save energy and effectively allocate resources

Energy Management Becomes an Education Tool for Young Generations

“Our objective is to let principal and teachers to set a good example, not only to influence the students but also to their parents in promoting environmental protection.”

Principal Ada Cheung St. Bonaventure Catholic Primary School

Fuji Xerox (Hong Kong) is regularly applauded for reducing the carbon footprint of both itself and its stakeholders’ daily operations. Having successfully implemented the ISO 14001 Environmental Management System in 2003 and ISO 50001 Energy Management System in 2010, we have gone on to initiate various innovative plug-in for continually improving energy performance and have been proactively promoting to some long-term partners shared. One of many successful partnerships is with St. Bonaventure Catholic Primary School - the first local school that has deployed the real-time interactive energy tracking system (En-trakTM) provided by us. The tracking system covers both the school’s old and new wings which include the server room and elevators. More detailed electricity consumption data has helped the school to pinpoint areas of previously unknown energy wastage.

Now, the school is leveraging this data to fine-tune its environmental protection policy and energy saving measures. At the same time, Fuji Xerox (Hong Kong) has organized a series of training activities and workshops that explain how teachers, students and related staff can use the system to save energy. In doing so, we are ensuring the school can deliver on the promise of educating the next generation by actively encouraging its students to get involved in protecting the environment.

Such detailed analysis is also enabling the school to fine-tune its operation to more effectively deploy resources. “Analysis of our school’s energy consumption patterns, showed that our elevators’ operation consumed close

to 7% of all energy used. After adjusting the elevators’ operating hours, we have successfully reduced power consumption,” said Principal Cheung. The scientific data gathered is also helping the school to more effectively fine-tune its environmental protection measures. The key benefit of this real-time interactive energy tracking system is that its ability to analyze comprehensive data is helping to create customized reports. The resultant data is providing the school administrators with extra insights into the energy performance they can then use to take action to optimize energy efficiency. Thanks to the sizeable savings the school is now making in its electricity bills, it is now able to free up funds for other more important educational activities.

Equally important is the fact that teachers here are now role models for their students in terms of environmental protection measures. In the beginning, teachers carried out analysis on their own, only later engaging students in active energy management. As a result, the school now hopes to include this as a subject in its General Studies curriculum. The school has now also established “Green” groups to evaluate the monthly data gathered by the real-time interactive energy tracking system and use their findings to generate recommendations aimed at enhancing energy saving measures. Suggestions to date include encouraging students to switch off lights when leaving classrooms, the replacement of air-conditioning by fans when not many people are inside rooms and the turning off of computers rather than leaving them in sleep mode after use. Ultimately, energy saving is not just about saving money but about students being more responsible to our planet and the future of mankind.


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RETRIEVESAVE

As our workplace is changing rapidly with the emergence of new technology through mobile, big data and cloud, it has further created challenges for businesses such as enhancing security, corporate governance, optimising and digitising of complicated workflows and printed documentation processes.

Fuji Xerox Next Generation Managed Print Services (MPS) goes beyond print services to provide optimisation of business processes and better integration with IT infrastracture to deliver secure, automated, efficient, mobile and sustainable print environment to our clients.

Next GenerationManaged Print Services (MPS)

Stage

2

USER

CostUsage

Power Consumption

CO2

Prin

t fo

r Le

ss. P

rint

Les

s

Access Card

Printing...00236113

Stage

3

Reduce Time& Cost

Stage

1

Insight

Automateand SimplifyAutomation of business process and work style transformation

Productivity

Stage 3

Secureand IntegrateSecurity reinforcement of document environment and integration of IT Infrastructure

Security Mobility

Stage 2

Assessand OptimizeOptimization of customer print environment

SustainabilitySavings

Stage 1

Next Generation Managed Print Services

Since the launch of Managed Print Services (MPS) in Japan and the Asia-Pacific region in 2007, Fuji Xerox has led the MPS market, holding 35.6% share worldwide (sales base as of 2013). In supporting customers who take control of information, we enable them to achieve continuous business growth through Next Generation MPS that offer services that go way beyond basic printer management. As the undisputed leader in Hong Kong’s MPS market, Fuji Xerox (Hong Kong) is re-launching MPS beyond optimization of printing environment to evolving services that support customers optimize document-related work processes with enhanced security in mobile and cloud environment. Its service roadmap segments the document-related processes in three stages as follows:

• Assess and optimize

• Secure and integrate

• Automate and simplify

The aim here is to enhance customer document-related workflows to ensure smoother communication and so pave the way for the continuous evolution of our Next Generation MPS.

As our workplace is changing rapidly with the emergence of new technology through mobile, big data and cloud, it has further created challenges for businesses such as enhancing security, corporate governance, optimizing and digitizing of complicated workflows and printed documentation processes. Fuji Xerox Next Generation Managed Print Services (MPS) goes beyond print services to provide optimization of business processes and better integration with IT infrastructure to deliver secure, automated, efficient, mobile and sustainable print environment to our clients.


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FY2014 also saw us launch a pioneering new digital printing cloud support system called Production Remote Services (PRS). Ensuring smoother operation without interruption, the new system marks the dawn of a new era of greater analytical and remote maintenance capabilities for relevant digital printing equipment. The new system also enables 360°, 24-hour service via a network connection linked to digital printing systems at production sites. The impressive end result has been described as “a harbinger of analytical services and remote desktop repair”. The former term applies to the way a data user device regularly transfers information to Fuji Xerox support team over the internet. Once equipped with this data, engineers can undertake one-on-one analysis in order to quickly analyze and prevent problems. Our teams can even be sent to customers’ premises when on-site maintenance is required in order to pre-empt problems from reoccurring, thus greatly improving customers’ productivity. Once our engineer team authorizes it, we can proceed to remote network diagnosis, support the trimming of workloads and even guide end-users to solve problems. It all adds up to significant reductions of expensive and unproductive unnecessary downtime.

This innovative service is provided by the Fuji Xerox Technical Support Service Center. Leveraging rigorous monitoring and assessment, the facility has already achieved internationally recognized Service Capability and Performance (SCP) Standards. As a result, customers are guaranteed a high standard of service at all times. Furthermore, as all network communications are encrypted Simple Object Access Protocol (SOAP) in HyperText Transfer Protocol (HTTP) Secure Sockets Layer (SSL) operation, all sensitive internal user information is 100% secure. Ultimately, PRS capabilities such as real-time updates and proactive diagnostics ensure our professional support team is always on hand at the service center to perform timely on-site maintenance when needed. In nipping potential problems in the bud, end-users can simply run their necessary processes via the installation, enjoying “zero operation, zero adaption” while they do so.

Service Capability and Performance (SCP) leverages the framework of over 100 internationally recognized benchmarks to determine the overall effectiveness of a service and support organization. Certification requires comprehensive audits and annual recertification to confirm that holders can continue to meet SCP requirements.

Customer First Strategy and New Services

To ensure our products, solutions and services always satisfy customers’ ever increasing demands, Fuji Xerox (Hong Kong) has long been working towards a unique “3R+V” Customer First Strategy. In moving forward, we insist that all of our employees maintain a high-level of “Reliability” and “Responsiveness” and work on establishing “Relationship” when creating “Value” for customers. Spanning everything from pre-sales consultation to project implementation, the entire business execution process covered by our defined Service Pledge is focused on delivering excellent service that enables our customers to accelerate their business development.

Service Pledge - FY2014 Achievements

5 consecutive years of being No.1 in “Customer Satisfaction” * in the industry.

• Service recovery in 4 hours reached at average 99.9% uptime assurance. **

• Availability of 7 x 24 iSupport Service reached at 99.9%.

• Fulfillment of backup center for handling customer urgent request reached at 99.9%.

• Exclusive Total Satisfaction Guarantee pledge reached at 100%. ***

Remarks :* Information from Market Probe’s Competitive Benchmarking Survey** Customer offices along MTR city routes*** Offer full confidence to our customer with our products


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We also work hard to encourage customers to use our various on-line enquiry settlement platforms in order to minimize unnecessary site visits and hence reduce unnecessary carbon footprint from travelling. Through our iSupport services, customers can improve machine uptime and enhance productivity and deliver business advantages. Total iSupport Resolution Ratio was 40.4% with the three key determinants of remote support services are:

• Customer accessible knowledge base or self help

• Access to real time system logs through Electronic Partnership Broadband (EP-BB) by Customer Support Center

• Fast diagnosis and resolution of technical issues through remote access tools by Technical Support Center

Capturing Customer Experience for Service Excellence

Fuji Xerox (Hong Kong) solicits feedback from customers through various interactions. We have a number of existing systems and processes for measuring customer experience including the use of various types of surveys. Basically, a dedicated Fuji Xerox (Hong Kong)’s Client Consultant is to ensure each customer satisfaction by undertaking regular on-site service visits under our Initial Customer Care Program (ICCP). Starting from the installation day, proactive follow-up calls or visits are conducted on days 1, 7, 30, 60 and 90, continuing on a quarterly basis thereafter. In the customer satisfaction surveys across different business areas, the collected Voices of Customer (VOC) are well managed by our customized Customer Feedback System. Our people can then proactively manage and analyze customer feedback, complaints and compliments as necessary.

Hong Kong-based Fingerprint Limited has now been using our PRS for six months, enjoying seamless business activities that have measurably improved effectiveness as a result. Says Fingerprint Managing Director, Mr. Ho Leong Tung: “Fuji Xerox has been our valued partner for over twenty years and we are very satisfied with the new PRS service since its launch. As the printing system remotely receives regular maintenance, our staff did not need to learn or adapt to any operation to ensure smoother production. As a result, we no longer have to worry about emergency repairs of equipment delaying deliveries and negatively impacting our promises to our customers.”

Standing in front of the Fuji Xerox Color 1000i Press, the first ever digital printing system with gold/silver dry ink technology, the Managing Director of Fingerprint enjoys the breakthroughs in productivity and cost-efficiency and a smoother operation through the use of our Production Remote Services.


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FY2015 saw us embark upon a policy of seamlessly integrating previous 360° Care Programs into Visible Green Initiatives. In moving forwards with this innovative approach, we are continuing to link customer compliments to measurably enhanced employee service levels and so contributing to the local community. Over the past five years, this Win-Win-Win approach has proven to be a great success, resulting in the donation of over HK$333,500 to various non-governmental organizations.

Customer compliments to our employees remain another valuable source of motivation for driving service excellence. Being “Customer Satisfaction No. 1” in the industry for fifth consecutive year, our flagship 360° Care Program, which aims to link customer compliments to enhanced employee service levels and so contributes to the local community, added nearly HK$70,000 company donation in FY2014 to the selected local non-governmental organization involved in caring for needy children. This neatly detailed with our sustainability focus on nurturing next generation of Hongkongers. While we integrate the program into “Visible Green Initiatives” in FY2015, we are now expressing our gratitude for customer’s invaluable backing by purchasing a carbon offset of at least 50 kg in support of a hydro project for every compliment received. Organized through the World Green Organisation for promoting water conservation, the hydro project is one of our key initiatives in striving to sustain long-term carbon neutral operations from 2014 onwards. As we become stronger, we can contribute more to the society of Hong Kong.

In order to further nurture lasting trusting relationships with our customers, we are now devoting considerable effort into various information security measures related to our products, solutions and services. In becoming an excellent company, we are also planning the implementation of various innovations such as comprehensive reviews of our operation processes, plus the adoption of new work style practices and communication methodologies. With cloud computing nearing its first full bloom, greater information security measures are becoming more and more indispensable at each step we take towards innovation. Following our office relocation in May 2015, we target to complete the ISO 27001 Information Security Management System certification by the end of this fiscal year. In doing so, we will leverage a proven track record of implementing information security management systems dating back many years.

全方位關懷計劃

360º Care Program

Further to our success for third consecutive year of being No.1 in “Customer Satisfaction”* in the industry, Fuji Xerox (Hong Kong) will continue to launch the “360º Care Program”, to provide superior customer services, motivate for our continuous improvement and serving as a responsible corporate citizen. To express our gratitude for your invaluable opinions, we will donate HK$5** for every compliment received for supporting “Hong Kong Society for the Protection of Children” to provide and promote the care, education and social development of children and families.

富士施樂(香港)連續第三年在業界榮獲「顧客滿意」第一*的

殊榮。為繼往開來，我們將繼續推出「全方位關懷計劃」。我

們希望藉聆聽客戶的意見以建立更卓越的客戶服務、讓我們持

續改善及貫徹履行企業公民責任。為感謝客戶的寶貴意見，我

們每獲一次讚揚，將捐出港幣5元**予「香港保護兒童會」以

致力攜手向兒童及其家庭提供照顧、關懷及教育服務，促進兒

童身心健康發展。

* Information from Market Probe’s Competitive Benchmarking Survey. 有關資料來自拓索市場諮詢有限公司。** For the donation amount, please read our Sustainability Report. 有關捐助金額，請參閱我們的可持續發展報告。

360º Care Program全方位關懷計劃

Being “Customer Satisfaction No.1”* in the industry

for fourth consecutive year, Fuji Xerox (Hong Kong)

will continue the “360° Care Program”, to listen your

voice for driving our continuous improvement and

delivering the great experience for you. To express

our gratitude for your invaluable opinion, we will

donate HK$5** from each compliment received to

the service of “Children’s Heart Foundation” on

supporting the children suffering from congenital

heart disease.

富士施樂（香港）連續第四年在業界榮獲「顧客

滿意」第一 *的殊榮。我們將繼續推行「全方位

關懷計劃」,讓我們聆聽客戶的意見以持續改善及

建立卓越的客戶體驗。為感謝客戶的每一個讚揚

及寶貴意見，我們將捐出港幣 5 元 **予「兒童

心臟基金會」以致力向患有先天性心臟病童提供

支援及服務。

* Information from Market Probe’s Competitive Benchmarking Survey. 有關資料來自拓索市場諮詢有限公司。** For the donation amount, please read our Sustainability Report. 有關捐助金額，請參閱我們的可持續發展報告。

Embracing “Customer Satisfaction” as no. 1 priority and being environmental friendly, Fuji Xerox

(Hong Kong) Limited combines the “360° Care Program” into the “Visible Green Initiatives”. For

every compliment we received, we will purchase carbon offset* of no less than 50kg in support of a

hydro project through World Green Organisation for promoting water conservation. This will help

to create a Greener living planet and sustainable environment for next generations.

富士施樂（香港）有限公司以「顧客滿意」為首要任務及貫徹執行環保責任，我們把「全方位關懷

計劃」合併在「看得見的環保」計劃內，並將透過「世界綠色組織」為每一個讚揚購買有關水利

工程方面不少於 50公斤的碳補償數額*，以協助推廣珍惜「水」資源，為下一代創造更美好的

環境和可持續發展的未來。

Visible Green Initiatives看得見的環保

* For the total carbon offset and donation amount, please refer to Fuji Xerox (Hong Kong) Sustainability Report. 有關碳補償數額及捐助金額，請參閱富士施樂（香港）可持續發展報告。

Lead Through Innovation :Kind

Innovative assembling of used products’ parts to send “kind” message to stakeholders

Lead Through Innovation :Kind

27


• Value Chain

• Volunteering




• Eco Product











Striving to be a “kind” company contributes to local and global communities in terms of environmental conservation, ethical behavior, and social contribution.

Sustainable Value Chain

All Fuji Xerox environmental initiatives focus on three areas: the prevention of global warming, the conservation of natural resources, and the reduction of risks posed by chemical substances. Cooperating with FUJIFILM, which implements advanced chemical management initiatives such as establishing its own safety standards and assigning teams to monitor legislative trends globally, Fuji Xerox strives to contribute to the development of a more sustainable society by securing the safety of its products and employees and giving full consideration to the environment.

Zero Carbon Operation

As a responsible corporate citizen and under the governance of an integrated management standard of ISO 14001 Environmental Management System, ISO 50001 Energy Management System, FSC Chain-of-Custody, and 5S, Fuji Xerox (Hong Kong) is determined to continue enhancing its knowledge of climate change related risks and opportunities. In doing so, we are striving to be actively involved in various consultation groups and provide respective Green solutions and services to customers. In motivating ourselves and other affiliates worldwide, we also do our utmost to achieve Fuji Xerox’s challenging target of reducing our products’ whole-life-cycle CO2 emissions by 30% of their FY2005 levels by FY2020.


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Through various Genko-Itchi initiatives since 2012, our Hong Kong operations are making encouraging progress and have already achieved absolute 1% YOY carbon reductions. In FY2014, we managed to establish carbon-neural operations at our new head office in Cityplaza 4 by investing carbon offsets on hydro projects in Asia-Pacific region while still maintaining a pleasant and environmental friendly working environment for employees.

Ethical Procurement

Fuji Xerox launched ethical procurement of production materials in 2007 by integrating the required Quality, Cost, and Delivery and CSR. In the following years, the initiative was expanded to cover logistics and general products as well. A pro forma pledge to ethical procurement can lead to potential risks. To avoid such problems, it is important to develop a common awareness of the purpose and challenges of ethical procurement with suppliers’ top executives so that they will take the initiative in undertaking necessary improvements. Fuji Xerox and its suppliers form partnerships for joint study and empowerment aimed at achieving ethical procurement. Based on this partnership, the business processes of suppliers are reviewed in order to minimize CSR risks in such areas as the environment, human rights, labor, and corporate ethics. This approach allows Fuji Xerox to respond to the requirements of society while at the same time reducing procurement risks.

Being a sales and marketing office, Fuji Xerox (Hong Kong) follows this direction and share the Fuji Xerox CSR philosophy and carries out CSR assessments aimed at encouraging individual suppliers to start any necessary improvements. CSR assessments consist of self-checks by suppliers, basic on-site checks by our in-house auditing personnel plus on-site checks by expert teams if necessary.

Fuji Xerox (Hong Kong)’s journey towards zero carbon operations began with the implementation of the ISO 14001 Environmental Management System in 2003. This was followed by the launch of a series of Genko-Itchi initiatives including RealGreen Program and Carbon Audit, and the adaption of our products, solutions and services to minimize our carbon footprint despite the growth of our business and workforce. We eventually achieved carbon-neutrality by investing in carbon offsets from hydro projects across Asia.

2003ISO 14001 certification

2009Energy Audit

2010RealGreen Program

2012ISO 50001 Certification

2013Carbon Audit 2015

ISO 14001Version Upgrade2014

Carbon Offsetting

Our employees explain how CSR values were embedded in our day-to-day work during a visit by procurement practitioners from the Chartered Institute of Procurement and Supply (CIPS) Hong Kong on 19 June 2015.


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Eco Product Design

At Fuji Xerox, we are committed to reducing the impact of human activity on the environment by providing products and services that offer new value thereby minimizing our products’ impact on global warming. The basic principle guiding our development of new products and services is the RealGreen concept, which seeks to maximize energy efficiency without compromising user convenience. By integrating and optimizing a wide array of ecofriendly technologies, we are striving to offer a new kind of value that combines energy efficiency with ease of use. We call it “Comfortable Eco”. As we pioneer the shift to new timesaving, space-saving, and transportation-saving work styles, we are applying the lessons learned from these efforts to develop innovative solutions for our customers, working with them to minimize our combined impact on the global environment.

Last year saw Versant™ 2100 Press, the color on-demand publishing system, Fuji Xerox developed was crowned the Minister’s Prize, the Ministry of Economy, Trade and Industry of the Eco-Products category at the 11th Eco-Products Awards. Organized by the Eco-Products Awards Steering Committee in Japan, this is the second time for our product to win this top honor of the Eco-Products category. Accredited for CO2 emission reductions by downsizing its body and for reducing paper waste, Versant™ 2100 Press is also featured with the newly compact belt roll fuser. By converting the reduction in product weight to the reduction of CO2 emissions, the outcome is equivalent to reducing 3,738 kg-CO2 emissions per unit during the manufacturing and transporting of parts while developing a product.

The application of RealGreen concept into Fuji Xerox eco product design is intended to maximize energy efficiency without compromising user convenience.

RealGreen Concept

Smart WelcomEyes

Smart Power Saving

High speed recovery from

the sleep mode

RealGreen(Real energy efficiency)

Stress-free operation

(no waiting)

High environmental performance

(TEC*)

Automatic recovery

Become operable

immediately

Output function

becomes ready during operation

Virtually zero waiting time between sleep mode and copy/scan mode minimizes user stress.

Eco-friendly technology* Typical Electricity Consumption (TEC) : The amount of power consumed by office equipment, such as printers and copiers over a conceptual week (five days of operation and repeated sleep/power-off mode, plus two days of sleep/power-off mode).

VersantTM 2100 Press - Do more. With more.


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ApeosPort-V C3320 a compact A4 multifunction device enhanced user-friendly features in addressing special needs. The innovative tilt 7-inch touch panel can be adjusted for various visible angles to fit people in different height or even in wheelchair so as to manage the control panel.

Responsible Paper Supply

At Fuji Xerox, we believe that forests are a shared global asset to be protected in perpetuity, not only because their resources support our ongoing business activity but also because of their environmental and cultural value. With this in mind, we have adopted rules for sourcing paper exclusively from suppliers that practice sustainable forest management and operate in a socially responsible manner. The Committee for Socially Responsible Paper Procurement, chaired by the corporate officer for environmental affairs, conducts regular reviews to verify compliance.

Locally, Fuji Xerox (Hong Kong) has been certified with FSC Chain of Custody since 2007 and we provide papers with Forest Stewardship Council® certified, the Program for the Endorsement of Forest Certification (PEFC) certified, and FSC 100% Recycled paper.

Paper Procurement Regulation Standards

Regulation Standards on Trading Criteria for Suppliers1. The environment must be protected.

2. The rights of local residents must not be violated.

3. Corporate ethics must be observed.

Regulation Standards on Requirements for Procured Paper1. Paper must be sourced from forests under sustainable management.

2. Used paper that is raw material of recycled pulp must have its origin of supply clarified.

3. The safety of the chemical substances used must be ensured.

4. Paper must be manufactured with a chlorine free process.

5. Paper manufacturing plant must have an environmental management system.


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Fuji Xerox (Hong Kong)’s sustainability and “Zero Landfill” goals are reflected in the pioneering green label attached to its multifunction devices. Each sticker also involves our free SkyDesk Media Switch mobile application. To download the app from Apple or Google Play, all end-users have to do is search for Fuji Xerox Event. Once they have scanned their stickers, they will be linked to a video that explains our complete recycling process. Perfectly integrating traditional documents with multi-media content, this highly sophisticated yet incredibly easy to use technology enables the viewing of multi-media information via mobile phone or tablet by simply scanning designated images that do not disrupt said documents’ artistic aesthetics. A QR Code is also printed on each sticker as an alternative route to the video, which may also be viewed at http://youtu.be/LNK1HBzu-Kc.

A Pioneering Supplier in the Management of Used Materials

Fuji Xerox (Hong Kong) has been proactively echoing the Government initiatives in an effort to drive for a Greener Hong Kong. Though there are currently no enacted legal requirements on Waste Electrical and Electronic Equipment (WEEE), we piloted to be the first-of-its-kind Drop-in Service and Recycling Center in Tsuen Wan in 2014. The recycling center aims to provide domestic users with a more efficient channel to recycle their unwanted Fuji Xerox family printers in the pursuit of minimizing electronic waste and raising public awareness for its goals of “Zero Landfill”, “No Pollution” and “No Illegal Disposal”. Our innovative approach to recycling makes it easy for users to bring their unwanted printers and cartridges to the Drop-in Service and Recycling Center and complete a simple registration process. This efficient procedure allows users to contribute to join us in protecting the environment. To further encourage participation, the senders will receive a free HK$50 cash voucher for future purchase of any Fuji Xerox products via Fuji Xerox (Hong Kong)’s on-line store at www.fujixeroxprinters.com.hk. The collected used products will be separated into 15 categories locally. Then, they will be sub-divided into 88 categories including steel, aluminum, lenses, glass and copper for further recycling processes once they are delivered to Fuji Xerox Eco-Manufacturing Center in Thailand.

In addition to the opening of the new Drop-in Service and Recycling Center, 2014 also saw us create an innovative green label sticker aimed at reminding users about product recycling methods. A “Zero Landfill” symbol highlighting the implementation of Fuji Xerox (Hong Kong)’s 3R (Reduce, Reuse, and Recycle) ideology was subsequently printed on each sticker. Our rationale for doing so was to encourage business and family users, to work together to achieve the goal of sustainable development.

Apply Professionalism Serving Community

Fuji Xerox (Hong Kong) is committed to strengthening social contributions that harness its parent company’s unique qualities in the area of enhanced communications. In line with our Mission Statement which commits us to “contribute to the advancement of the global community by continuously fostering mutual trust and enriching diverse cultures,” we have embedded “education for future generations” in our green ICT technology as a social contribution focus. In addition to traditional donations in kind and financial support for Non-governmental Organizations (NGOs) and the education sector, we are also implementing initiatives that contribute to help solve local issues through utilizing our core competencies.


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Beginning in 2011, Green Tours have been a key stakeholder engagement platform in Fuji Xerox (Hong Kong) discussion of CSR issues while visiting our Green and/or recycling facilities. Over half of all tour participants to date have been students and this platform continues to be a highly effective way for youngsters to equip themselves with more environmental knowledge. Most importantly of all, the tours help attendees to better understand how an organization like ours can operate a more sustainable approach outside the constraints of a traditional classroom setting. In future, we will devote even more effort in diversifying the values espoused during our Green Tours to secondary and tertiary students. As always in this area, our intention is to further trigger participants’ interest in integrating innovative ICT applications into their daily lives both at school and at home.

In addition to creating skill-based volunteering opportunities developed via our sustainable ICT professionalism, we have been running a Volunteering Leave Scheme since April 2014. Our intention in doing so is to recognize our team members’ contributions in sacrificing personal and professional time to serve others less fortunate than themselves.

Over the years, all participants in Fuji Xerox (Hong Kong)’s community engagement activities have been motivated to organize and participate in community and/or Green project. Last year, we further enhanced the initiative’s effectiveness by engaging over 649 staff to generously give up 3,851 volunteering hours to successfully complete 53 activities.

Social Impact Assessment – School Waste Reduction Campaign

Fuji Xerox (Hong Kong) has long been committed to raising people’s awareness of environmental protection via its solutions and social activities. Educating the next generation of Hongkongers is an integral part of this process. Ultimately, enabling people to better understand green behavior and practices is easily the most effective way of changing our world for the better. In the period covered by this year’s Sustainability Report, we fully delivered on this element of our CSR commitment by giving speeches and organizing training sessions. We also agreed to serve as sole sponsor of the School Waste Reduction Campaign organized by the Hong Kong Productivity Council. In all, some 25 schools joined the campaign with fully 100 students and teachers becoming Waste Management Ambassadors. Participants in the campaign subsequently learned more creative ways to explore waste reduction and develop greener habits via initiatives such as the recycling of Lai See packets and CD-ROMs as well as the purchasing of more environmentally-friendly procurement materials.

Engaging the next generation of Hongkongers is a major focus of Fuji Xerox (Hong Kong)’s CSR platform. In addition to scholarships, ways we are moving closer to this target include direct dialogue, mentorships, partnership program, classroom training and tour visits. The over-riding goal is to encourage, motivate and coach participants to embed environmental diligence into their mindsets each time they are asked to make or execute a decision.

284participants

(31 hours)

580 students

(34.5 hours)27 activities

(951.5 hours)HK$125,186

Green Tour PartnershipDonation inMoney and Kind

Mentorshipand Lecturing


3332

1. Understanding waste management

Students joined a series of waste management training sessions to learn about major school waste issues and solutions. To further enhance students’ waste management knowledge, we subsequently shared details of our green technologies and best practices. The average score raised from 3.2 to 4.2.

2. Importance of waste management in schools

This module of the campaign taught Student Waste Management Ambassadors how to gain a better understanding of the importance of waste management. Participants also learned how to reduce waste in different areas of their home and school life. The overall score subsequently jumped from 3.3 to 4.3.

3. Relationship between waste management and sustainable development

Stressing the importance of the relationship between waste management and sustainable development was another major aim of the campaign. The final score was 4.4 – the highest result of all six criteria.

To assess participating schools’ waste management performance during and after the campaign, a social impact assessment survey was organized. Key findings are itemized in the below diagram. Participants rated their change of attitude across six criteria using a five-point scale (1 = No change, 2 = Minor change, 3 = Medium change, 4 = Significant change, 5 = Major change) before, mid-term and after the campaign.

In conclusion, Fuji Xerox (Hong Kong) saw the positive impact on building the Green and socially responsible mindset and behaviors among the next generation of Hongkongers.

4. Behavioral changes aimed at enhancing environmental conservation efforts

Participants learnt and subsequently committed to being greener in their everyday lives. In addition to recycling paper, plastics and bottles, students were also encouraged to recycle materials such as rechargeable batteries and glass products in order to meet environment conservation targets. The average final score increased from 3.3 to 4.1.

5. Enhancing project management skills

Throughout the campaign, Student Waste Management Ambassadors and teachers set out waste management goals for their schools. The objective here was for each school to achieve related environmental recognition. With skills including the process of target setting, progress monitoring, data collection subsequently measurably enhanced as a result, the score jumped from 2.7 to 4.1 before and after the campaign.

6. Enhancing communication skills

Students were encouraged to disseminate sound waste management practices amongst their classmates. They were also asked to persuade them to be more environmentally friendly by making more effort to reduce waste and promote more effective document creation and management skills. Participating students’ scores rose steadily from 2.9 to 4.1 following the campaign.

Behavioral changes aimedat enhancing environmental

conservation efforts

Relationship betweenwaste managementand sustainabledevelopment

Importance of wastemanagement in schools

Enhancingcommunicationskills

Enhancing projectmanagement skills

Understanding waste management

5.0

4.0

3.0

2.0

1.0

Before campaign review

Completed campaign review

Mid review

Lead Through Innovation :Interesting

Blessing energetic next generation from employee working in our interesting workplace

Lead Through Innovation :Interesting

35


• Value Chain

• Volunteering




• Eco Product











Employee satisfaction is the wellspring of innovation and the starting point of every company’s ability to rise to new challenges.

At Fuji Xerox (Hong Kong), we believe that creating a workplace where employees can fully utilize their capabilities is vital for our sustained success. To this end, our Senior Management Committee regularly discusses ways to improve employee satisfaction and has now identified a series of companywide challenges for achieving this objective. Going forward, we will deepen our proven PDCA approach to further enhance employee satisfaction. We will also actively promote remote working and other forms of ICT based flexible working styles. In doing so, we will nurture an organizational culture that supports a satisfying and stimulating workplace which inspires employees at every level to become professionals whom customers can trust and rely on. As always, our ultimate aim is to ensure that our human resources are fully capable of using their initiative and taking ownership of the challenge of creating changes that will result in both personal and business excellence.

Lead Through Innovation : InterestingLead Through Innovation : Interesting

3736

A newly-design Innovation Center at our head office, a carbon neutral operation from 2014, allows us to have activities with around 150 people. We have organized different stakeholder engagement events such as our internal Manager Gathering Sessions in a more intelligent workplace outlook for encouraging interaction.

Interesting Workplace

At Fuji Xerox (Hong Kong), we offer employment irrespective of gender, marital status, pregnancy, disability, race, color, religious belief, age, national origin and/or sexual orientation. In doing so, we comply fully with all employment related legislation including freedom of association and the right to collective bargaining. We also prohibit inhumane treatment, child and forced labor, discrimination, interference and other forms of abuse. In protecting our employees, we have established detailed harassment communication policies plus easy-to-understand complaint and grievance guidelines.

Our primary aim is an environment that allows employees to achieve harmony in both their personal and professional lives. We deliver on this promise by adopting a flexible approach to work arrangements and offering programs that support our staff’s health and emotional and physical wellbeing. In May 2015, our local head office was relocated to an innovative and more stylish working environment with additional leisure space. The impressive end result was a better working environment that increased employee engagement while they conducted business activities. We are also firm believers that work and fun should go hand-in-hand. To this end, we regularly organize companywide activities that encourage friendship, bond teams and boost business at the same time. Well received examples of such activities held at Fuji Xerox (Hong Kong) during FY2014 include the introduction of flexible working hours on the day after the 2014 World Cup Final.

In delivering on our commitment to keeping staff happy, we also collect employee insights by conducting an annual Employee Motivation and Satisfaction (EM&S) survey. In FY2014, the survey attracted a high participation rate of 99% with the module of “Direction/Communication” being rated as the highest score for 10 consecutive years. As a result of the survey, we also continue to prioritize “Training & Career Development” and “Recognition”. The overall results confirm that while we continue to evolve into an excellent company there is always room for improvement. Our senior management remain determined to devote time, money and resources to the innovating of more effective and appropriate initiatives. Our intention in doing so is to ensure that employees understand that they remain our company’s most important asset. We also want to communicate how well our company is encouraging colleagues to grow together by tackling challenges as a team.


3736

Nearly 1,500 employees and their families and friends shared a wonderful day out at a leading Hong Kong theme park on 28 September 2014. Other popular staff bonding activities during FY2014 included large-scale communications cum engagement activities and different sport games.

Creating Values through Genko-Itchi Initiatives

We see the establishment of a Genko-Itchi Team as being a critical platform in enhancing our staff’s capabilities when it comes to achieving quality improvements by resolving problems through scientific thinking. The team utilizes quality tools to analyze each problem in detail so as to identify its root causes and more importantly improve overall productivity by cost saving and revenue generation. Genko-Itchi activities are also key to our strengthening of quality management and so actualize the last statement of our Quality Policy - “Quality improvement is the job of every Fuji Xerox (Hong Kong) employee”. Our ultimate goal is to ensure Genko-Itchi activities become regular exercises in which all employees are encouraged to strive to achieve “Customer First” and “Quality First” and so sustain our company’s success.

In FY2014, some 68 Genko-Itchi teams made up of over 620 colleagues participated in various activities aimed at enhancing our company’s productivity, customer satisfaction and service excellence, etc. It was estimated that the teams have generated some HK$15.2 million tangible benefits for our business.


3938

New Paperless Recruitment Process

In the previous Sustainability Report, we mentioned that our Human Resources Department had begun managing all interviews by Fuji Xerox (Hong Kong) Quickaform solution. To further accelerate our move to fully paperless operations, we have now added another data management system called ParaDM to this digitalized form filling platform. Its major benefits to date are summarized below:

Talented Human Capital

Recent years have seen Fuji Xerox (Hong Kong) sharpens its focus on human capital management as a key engine of our business transformation. Attracting and retaining talented individuals is vital for our operational continuity and the creation of a sustained competitive advantage. To ensure timely delivery of our business strategies in today’s fiercely competitive talent market, we have been leveraging “pull” strategies to build and maintain a top quality talent pool.

Today’s business world is evolving faster than ever before. Constant technological advances, the ready availability of vast amounts of information, the need for increased connectivity and the rise of new industries and changing consumer demands are all forcing companies to adapt more rapidly. The end result is a measurable increase in demand for new and changing employee capabilities. We acknowledge that if we are to be as agile and responsive as the market demands, we must transform our business into a services-led solutions entity. If we are to succeed in doing so, it is vital that we not only acquire new talent but also optimize the capabilities of our existing workforce. Today’s constantly shifting business horizon also calls for a clearer focus on our leadership team and will require our people managers to be more effective change agents. The key aim here is to not only support our people, but also engage them in the ambitious organizational change our operations are currently undergoing.

Target Actual

Paper Wastage: 35% Paper Wastage: 100%

Go GreenPaper Usage: 2,628 pages

Carbon Footprint: 13kg/year

Paper Usage: 10,680 pages

Carbon Footprint: 53kg/year

Process Duration: 20% Process Duration: 39%

Brand BuildingSolution Awareness: 200 people

Brand Awareness: 500 people

Customer Satisfaction: 80%

Solution Awareness: 250 people

Brand Awareness: 1,148 people

Customer Satisfaction: 86%

ProductivityEnhancement

Interview FormWastage


3938

Building employee capabilities has been one of the priorities of our Human Resources Department since FY2013’s conveying of the ICT transformation to all business units. Key programs implemented have extensively covered manager and engineer development and the enhancement of sales competency and employee professionalism. By the end of FY2014, our employees had acquired over 520 ICT related certifications in their journey to becoming better all-round ICT professionals. Additionally, we had conducted a comprehensive review of our existing curriculum to better align all course materials and business imperatives. As a result, we have now upgraded many existing programs and introduced some new learning and development modules. In the coming year, a series of innovative 3-pillar workshops covering iWorkplace, Business Process Optimization (BPO) and Customer Communications Management (CCM) will be organized for all managers, sales, marketing-related staff and other relevant employees. The ultimate aim is to ensure that, as a company, we are able to surf the ICT wave and become more effective in communicating the values and benefits of our solutions and services to different stakeholders.

In addition to the sustainability and green consulting service offerings, we have now inserted into our ICT partnership with customers. We have now also started leveraging various in-house learning and development programs. Our successful transformation over the years has equipped us with competencies such as the conducting of stakeholder training. This makes our expertise a major asset for customers who increasingly need to enhance their own in-house ICT professionalism.

The happy moment of our colleagues getting ICT certifications.

CSR Indicators

Comprehensive CSR indicators that echo our commitment to the community

CSR Indicators

41

Categories Item Data Summary FY2012 FY2013 FY2014

Econ

omic

(tot

al: 5

in

dica

tors

)

1 Compounded Annual Growth Rate (CAGR) Revenue in 5 Years *1 3.70% 4.70% 5.00%

2 Revenue/Selling General and Administrative Expense 4.90 4.98 4.89

3 Human Resources Productivity (Revenue/Total HR cost) 4.73 4.87 4.99

4 Debt to Equity Ratio 37% 31% 36%

5 Environmental Expenditure Year-On-Year Growth *2 -7% 1% 4%

Envi

ronm

enta

l(t

otal

: 26

indi

cato

rs)

6 Energy Saved due to Energy-saving Products Sold (kWh) 575,535 729,834 844,281

7 CO2 Emissions Equivalent to Energy Saved at Customer Sites (Tonnes CO2-e) *3 2,514 3,029 3,401

8 Gasoline Consumption by Vehicle (Litres) 42,621 40,951 39,570

9 Electricity Consumption (kWh) 1,392,102 1,303,331 1,284,583

10 CO2 Emissions Equivalent to Electricity Consumption (Tonnes CO2-e) *4 974.00 912.30 899.20

11 Energy Consumption Equivalent to Electricity Consumption (GJ) 5,012 4,692 4,624

12 A3 Paper Consumption (Sheets/No. of Staff) *5 N/A 139 143

13 A4 Paper Consumption (Sheets/No. of Staff) *5 N/A 2,469 2,458

14 Other Relevant Indirect Greenhouse Gas Emissions by Weight (Tonnes CO2-e) *5,6 97 61 63

15 Recycled Paper/ Environmental Paper Consumption (Sheets/No. of Staff) *5 4,018 2,608 2,605

16 Greenhouse Gas Emissions Equivalent to Gasoline Consumption (Tonnes CO2-e) 101.00 96.60 93.40

17 Energy Consumption Equivalent to Gasoline Consumption (GJ) 1,408 1,352 1,307

18 Energy Saved Due to Energy-efficient Installations (kWh) 56,810 8,930 37,350

19 CO2 Emissions Equivalent to Energy Saved (Tonnes CO2-e) 40 6 26

20 Total Water Discharges (Tonnes) *7 2 2 2

21 Toner Consumption (Pcs) *8 654 406 425

22 Paper Recycled (Tonnes) *8 32.25 26.46 26.02

23 Aluminum Recycled (Tonnes) *8 0.25 0.24 0.14

24 Plastic Recycled (Tonnes) *8 0.29 0.26 0.18

25 Waste to Landfill or Incineration (Tonnes) *8 51.66 49.43 48.92

26 Total No. of Spills 0 0 0

27 Total Volume of Spills (m3) 0 0 0

28 Chemical Waste Produced (Tonnes) *9 0.03 0.09 0

29 Waste Electrical and Electronic Equipment (WEEE) Recycled (Tonnes) 1,237 1,163 1,202

30 Environmental Convictions Per 100,000 Man-hours 0 0 0

31 Non-conformance in Integrated Management System Audits 0 0 0

Soci

al

(tot

al: 1

9 in

dica

tors

)

32 No. of Staff *10 864 904 945

33 Male : Female 603:261 628:276 660:285

34 Local : Non-local *11 861:3 901:3 943:2

35 Voluntary Staff Turnover 19.20% 19.80% 21.22%

36 Retention Rates After Parental Leave 100% 100% 100%

37 Staff Injuries 0 2 4

38 Staff Fatalities 0 0 0

39 Total Training Hours*12 28,507 39,820 39,893

40 No. of Training Hours Per Staff Member Per Year 33 44 42

41 Manager (Male : Female) 62:19 61:25 67:26

42 Non-Manager (Male : Female) 537:239 567:251 593:259

43 Cost of Staff Training Year-On-Year Growth*1 -54% 55% 45%

44 Convicted Cases of Corruption 0 0 0

45 Code of Conduct e-Learning Participation Rate 100% 100% 100%

46 Volunteering Hours 2,855 3,446 3,839

47 Number of Volunteer 636 653 647

48 Monetary Value of Significant Fines and Total Number of Non-Monetary Sanctions for Non-compliance with Laws and Regulations (HK$) 0 0 0

49 Human Rights Review *13 100% 100% 100%

50 Number of Grievances Related to Human Rights 0 0 0

Remarks:*1 The consolidated results in terms of Year-On-Year Growth Rate (%) from Fuji Xerox (Hong Kong)’s income

statement include relevant data for the Fuji Xerox Printer Channel. *2 Includes end-of-life management costs only.*3 CO2 emissions saved at customer sites. (Tonnes CO2-e) *4 Excludes CO2 emissions from logistics management activities carried out by on-site contractors.*5 Paper consumption is recorded in terms of document management system rather than internal order. *6 Includes Greenhouse Gas emissions resulting from paper and water consumption.*7 Consumption in our main Hong Kong Island office is only an estimate as the amount of water consumed is

included in the building management fee.

*8 Includes Macau office data from November 2013 onwards.*9 Chemical waste excludes amount generated by activities of off-site contractors.*10 Includes all permanent and contract staff.*11 “Local” employees are those whose employment terms and conditions meet HKSAR labor requirements.*12 From this report onwards all relevant self-learning data will be included.*13 All new staff joining Fuji Xerox (Hong Kong) are required to complete “Code of Conduct” learning three months after

initially starting work. In the case of current staff, regular reviews will be carried out via the e-learning portal and per review of scope and content. A learning of “Ethics and Governance” was successfully completed in April 2014 as a combined review for years 2013 and 2014.

GRI Content Index

GRI-benchmarked mapping disclosure of this report’s contents

GRI Content Index

43

This report was prepared in accordance with the Core requirements of Global Reporting Initiative (GRI) G4 Guidelines. The General Standard Disclosures and material Specific Standard Disclosures are presented below with either linkage to the reported section(s) or direct answer.

General Standard Disclosures Cross-referenceHKEx ESG Guide Reference

Page

Strategy and Analysis

G4-1 Statement from the most senior decision maker of the organization Top Commitment 3-5

Organizational Profile

G4-3 Name of the organization Corporate Profile and Governance 13

G4-4 Primary brands, products and services Corporate Profile and Governance 13

G4-5 Location headquarters of organization's Corporate Profile and Governance 13

G4-6 Number of countries where the organization operates Report Scope and Approach - Reporting Scope 7

G4-7 Nature of ownership and legal form Corporate Profile and Governance 13

G4-8 Markets served Corporate Profile and Governance 13

G4-9 Scale of the organization Corporate Profile and Governance 13

G4-10 Number of Employees CSR Indicators KPI A1.1 41

G4-11 Percentage of employees covered collective bargaining agreements

While none of our employees are covered by collective bargaining agreements, our “Managing Director’s Mailbox” serves as a direct channel offering formal opportunities for two-way communications between senior management and regular employees.

NA

G4-12 Organization's supply chain Lead Through Innovation : Kind - Ethical Procurement KPI C1.2 28

G4-13 Significant changes during the reporting period regarding size, structure, ownership or organization's supply chain Corporate Profile and Governance 13-17

G4-14 Explanation of whether and how the precautionary approach or principle is addressed by the organization Corporate Profile and Governance 16-17

G4-15 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses

No such initiatives are subscribed or endorsed by Fuji Xerox (Hong Kong) NA

G4-16 Memberships in associations and/or national/international advocacy organizations

- American Chamber of Commerce in Hong Kong- American Club - Business Environment Council- Caring Company's Patron Club- Hong Kong General Chamber of Commerce- Green Manufacturing Network- Hong Kong Management Association- Institute of Print Media Professional - Macau American Chamber of Commerce- Japanese Chamber Of Commerce- The Chinese Manufacturers' Association of Hong Kong- The Community Chest of Hong Kong's Greening for the Chest

Organizing Committee- The Hong Kong Japanese Club- The Hong Kong Printers Association

NA

G4-17 Entities included in the organization's consolidated financial statements or equivalent documents Top Commitment 3-5

G4-18 Process for defining report content and the aspect boundaries Report Scope and Approach - Reporting Scope & Reporting Principles 7

G4-19 Material aspects identified in the process for defining report content Report Scope and Approach - Material Aspects 8-10

G4-20 Aspect boundary within the organization for each material aspect Report Scope and Approach - Material Aspects 8-10

G4-21 Aspect boundary outside the organization for each material aspect Report Scope and Approach - Reporting Scope & Reporting Principles 7

G4-22 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement

Report Scope and Approach - Reporting Scope & Reporting Principles 7

G4-23 Significant changes from previous reporting periods in the scope and boundary

Report Scope and Approach - Reporting Scope & Reporting Principles 7

General Standard Disclosures

GRI Content Index

4544

General Standard Disclosures Cross-referenceHKEx ESG Guide Reference

Page

Stakeholder Engagement

G4-24 List of stakeholder groups engaged by the organizationGenerally, our defined stakeholders include our customers, employees, global environment, local communities, business partners, and shareholder.

10

G4-25 Basis for identification and selection of stakeholders with whom to engage

The identification and selection of stakeholders is based on Fuji Xerox’s value chain approach as trademarked, developed and reported as 360º of Sustainability™ since 2010

NA

G4-26 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group Report Scope and Approach 7-11

G4-27 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting

Report Scope and Approach 7-11

Report Profile

G4-28 Reporting period Report Scope and Approach - Reporting Scope 7

G4-29 Date of most recent previous report Report Scope and Approach 7-11

G4-30 Reporting cycle Report Scope and Approach 7-11

G4-31 Contact point for questions regarding the report or its contents Email: [email protected]; Feedback Form

G4-32 GRI Content Index, the "in accordance" option the organization has chosen and the reference to the External Assurance Report if any GRI Content Index 43-45

G4-33 Policy and current practice with regard to seeking external assurance for the report Report Scope and Approach; Verification 7, 47

G4-34 Governance structure of the organization Corporate Profile and Governance 16

G4-56 Organization's values, principles, standards and norms of behavior Corporate Profile and Governance 13-14 v

Material Aspects DMA and Indicators Cross-reference

HKEx ESG Guide Reference

Page

Energy Disclosure Management Approach (DMA) Top Commitment - Looking Backward Lead Through Innovation : Kind

GD B2 KPI B2.3

3-5,27-33

Energy G4-EN3 Energy consumption within the organization CSR Indicators KPI B2.1 41

Energy G4-EN6 Reduction of energy consumption CSR Indicators 41

Energy G4-EN7 Reductions in energy requirements of products and services CSR Indicators 41

Emissions DMA Top Commitment - Looking Backward Lead Through Innovation : Kind

GD B1 KPI B1.1KPI B1.6

3-5, 27-33

Emissions G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1) CSR Indicators KPI B1.2 41

Emissions G4-EN16 Energy indirect GHG emissions (Scope 2) CSR Indicators KPI B1.2 41

Emissions G4-EN17 Other indirect GHG emissions (Scope 3) CSR Indicators KPI B1.2 41

Emissions G4-EN19 Reduction of GHG emissions CSR Indicators 41

Effluents and Waste DMA

Lead Through Innovation : Kind - Eco Product DesignLead Through Innovation : Kind - A Pioneering Supplier in the Management of Used Materials

GD B1 29-30, 31

Effluents and Waste G4-EN23 Total weight of waste by type and disposal method CSR Indicators KPI B1.4 41

Effluents and Waste G4-EN24 Total number and volume of significant spills CSR Indicators 41

Compliance DMA Corporate Governance 16-17

ComplianceG4-EN29 Monetary value of significant fines and total number

of non-monetary sanctions for non-compliance with laws and regulations

CSR Indicators 41

Employment DMA Lead Through Innovation : Interesting - Interesting Workplace GD A1 36-37

Employment G4-LA1 Total number and rates of new employee hires and employee turnover by age group, gender and region CSR Indicators KPI A1.1

KPI A1.2 41

Employment G4-LA3 Return to work and retention rates after parental leave, by gender CSR Indicators 41

Specific Standard Disclosures

GRI Content Index

4544

Material Aspects DMA and Indicators Cross-reference

HKEx ESG Guide Reference

Page

Occupational Health and Safety

DMA Corporate Profile and Governance - Risk Management GD A2 17

Occupational Health and Safety

G4-LA6 Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender

CSR Indicators KPI A2.1 41

Training and Education

DMA Lead Through Innovation: Interesting - Talented Human Capital

GD A3 KPI D1 38-39

Training and Education

G4-LA9 Average hours of training per year per employee by gender, and by employee category CSR Indicators KPI A3.1

KPI A3.2 41

Investment

G4-HR2 Total hours of employee training on human rights policies or procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained

CSR Indicators 41

Local Communities

G4-SO1 Percentage of operations with implemented local community engagement, impact assessments, and development programs

Lead Through Innovation: Kind - Apply Professionalism Serving Community; Social Impact Assessment - School Waste Reduction Campaign

KPI D1.1 KPI D1.2 31-33

Anti-corruption DMA Code of Conduct GD C3 NA

Anti-corruption G4-SO5 Confirmed incidents of corruption and actions taken CSR Indicators KPI C3.1 41

Compliance DMA Corporate Profile and Governance 13-17

ComplianceG4-SO8 Monetary value of significant fines and total number

of non-monetary sanctions for non-compliance with laws and regulations

No fines and/or non-monetary sanctions for non-compliance with laws and regulations were recorded in FY2014. NA

Product and Service Labelling

DMACorporate Profile and GovernanceLead Through Innovation : Kind - A Pioneering Supplier in the Management of Used Materials

13-17, 31


G4-EN27 Extent of impact mitigation of environmental impacts of products and services Lead Through Innovation : Kind - Zero Carbon Operation 27-28


G4-PR5 Results of surveys measuring customer satisfaction Lead Through Innovation : Strong - Customer First Strategy and New Services KPI C2.4 23-24

Customer Privacy DMA Corporate Profile and Governance 13-17

Customer Privacy

G4-PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data

No complaints regarding breaches of customer privacy and losses of customer data were recorded in FY2014. KPI C2.2 NA

Verification

Verification carried out by an independent third party

Verification

47

Scope and Objective

Hong Kong Quality Assurance Agency (HKQAA) has been commissioned by Fuji Xerox (Hong Kong) Limited to conduct an independent verification of its Sustainability Report 2015 (herein referred to as “the Report”). The Report stated Fuji Xerox (Hong Kong)’s sustainability performance and efforts towards sustainable development for the period from 1 April 2014 to 31 March 2015 .

The aim of this verification was to provide assurance on the completeness and accuracy of the information stated in the Report. The Report covers the standard disclosures defined in the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines Version 4 (G4) with “Core” option and the Key Performance Indicators that defined in the Environmental , Social, and Governance (ESG) Reporting Guide of the Hong Kong Exchanges and Clearing Limited (HKEx).

Methodology

The process used in this verification was based on current best practices . The Report was reviewed against the following criteria:

• The principles of completeness, accuracy, neutrality, comparability and responsiveness ;

• The Global Reporting Initiative (GRI) G4 Guidelines;

• ISO 26000:2010 Guidance on Social Responsibility; and

• ESG Reporting Guide published by HKEx

The verification procedure included reviewing relevant documentation, interviewing responsible personnel with accountability for preparing the Report and verifying the selected representative sample of data and information consolidated in the Report. Raw data and supporting evidence of the selected samples were thoroughly examined.

Conclusion

Based on the outcome of the verification process, it is opined that the Report is in accordance with the GRI G4 Guidelines - Core option and covers the Key Performance Indicators of the ESG Reporting Guide.

The information presented in the Report provided a structured, balanced and consistent representation of Fuji Xerox (Hong Kong)’s sustainability performance in the context of sustainable development. We are satisfied that the Report includes factual statements and the data contained within the Report is accurate and reliable. It is a fair and honest representation of Fuji Xerox (Hong Kong)’s initiatives, targets, progress and performance on its sustainable development achievements.

Bryan PengAssistant Director, Manufacturing & Service Business Division6 October 2015

Signed on behalf of Hong Kong Quality Assurance Agency

5S Seiri, Seiton, Seiso, Seiketsu, Shitsuke

AEO Authorized Economic Operator

BCP Business Continuity Plan

BEC Business Environment Council

BPO Business Process Optimization

CAGR Compounded Annual Growth Rate

CCM Customer Communications Management

CO2 Carbon Dioxide

CoC Chain of Custody

CSR Corporate Social Responsibility

DMA Disclosure Management Approach

EM&S Employee Motivation and Satisfaction

EP-BB Electronic Partnership Broadband

ESG Environmental, Social and Governance

FSC™ Forest Stewardship Council®

Fuji Xerox Fuji Xerox Co., Ltd.

FY Fiscal Year

GCO Greater China Operations

GDP Gross Domestic Product

GHG Greenhouse gas

GMO General Management Office

GRI Global Reporting Initiative

HKEx Hong Kong Exchanges and Clearing Limited

HKQAA Hong Kong Quality Assurance Agency

HR Human Resources

ICCP Initial Customer Care Program

ICT Information and Communications Technology

ISO International Organization for Standardization

IT Information Technology

JQP Japan Quality Program

J-SOX Japanese Sarbanes-Oxley Act

KPI Key Performing Indicator

MPS Managed Print Services

NGOs Non-governmental Organizations

OGA Office Green Assessment

PDCA Plan-Do-Check-Act

PRS Production Remote Services

R&D Research and Development

SCP Service Capability and Performance

SDO Services Delivery Operations

SMEs Small- to Medium-sized Enterprises

TEC Typical Electricity Consumption

TSG Total Satisfaction Guarantee

UN United Nations

VOC Voice of Customer

WEEE Waste Electrical and Electronic Equipment

XOS Xerox Office Solution

YOY Year-On-Year

Glossary


http://www.fujixerox.com.hk

Date of Issue: October 2015

© Fuji Xerox (Hong Kong) Limited 2015

Printed on Fuji Xerox DocuColor Production Printing System

Xerox, Xerox and Design, as well as Fuji Xerox and Design are registered trademarks or trademarks of Xerox Corporation in Japan and/or other countries.

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