2.5 ｜ Supply Chain Management Further, the “information security survey (self-check)” also started in fiscal 2022 for critical suppliers. In response to reports that cyberattacks on supply chains were now affecting some other companies production activity and supplies, we conducted a survey on security risk countermeasures at suppliers. The number of responding suppliers was 722. For more details on the Information Security Survey, refer to 2.2.8-5 Measures for supply chain security. (3) Request/support for supplier’s improvement activities (I) Post-self-check feedback to suppliers For all suppliers that conducted self-checks and responded to the information security survey, we sent a feedback sheet that included a score compared to the overall average (conformance rate) or evaluation level, and advice on how to address and improve any identified issues. Further, for suppliers where non-conformance was identified for high priority items, we held follow-up interviews etc. with them to understand the actual situation, ask for improvements as nessesary and confirm the improvement status. (II) Onsite visit and check by expert teams Reviewing self-check results, efforts in regard to QCD, environment and so forth, we judged that we need to conduct risk assessment on 42 suppliers located in China and Vietnam. Expert teams from our production sites provided onsite visit and check to 24 suppliers out of 42. Since some of the planned onsite visits were canceled due to the pandemic of COVID-19, the achievement rate was lower than usual, as was the case last year. In onsite visits during fiscal 2022, as usual we visited suppliers' production sites and their employee dormitories. We also inspected their labor agreements and related documents. These assessments identified the following problems and confirmed that they had been rectified. ● Changes in labor laws and regulations were not reflected in the employee handbook provided by the company. The descriptions of holiday and leave-related rules did not match with actual implementation. ● Classification marks on storage containers of hazardous wastes did not match the classification marks indicated for the storage area. We confirmed that such critical issues were improved by the end of that fiscal year for all suppliers where onsite assessments had been conducted. (III) Training and capacity building In supplier briefings in Japan, we raised awareness of the importance of appropriate chemical management in the supply chain. We also provided concrete information on the latest trends concerning procurement-related laws and regulations, and promoted thorough communications on the regulated chemicals contained (or not contained) in the procured goods. We always opened the briefings with an explanation of the importance of sustainability and our efforts in sustainable procurement. We also fostered understanding of the Fujifilm Group Charter of Corporate Behavior and Code of Conduct and requested suppliers to submit their consent form. Following on from the previous year, the fiscal 2022 briefings were held twice as a webinar due to COVID-19 restrictions. A total of 141 companies attended the webinars. For more details on chemical management throughout the supply chain, refer to 3.6.5 Contribution to Sound Chemical Management Across the Supply Chain. (IV) Support for resolving issues through collaboration with suppliers The Fujifilm Group is proactively strengthening partnerships with suppliers in order to address climate change, one of the most important international issues, through united efforts across the supply chain. Concretely, we disseminate the Fujifilm Group’s climate change policy through the supplier briefings. We also support suppliers in resolving the CSR related issues they face, such as reducing GHG emissions and reducing energy consumption, utilizing the technologies and expertise owned by FUJIFILM Engineering Co., Ltd. (4) Others (Employee education) ESG Division and Procurement & Equipment Manufacturing Division of the FUJIFILM Holdings held individual meetings several times a year with the procurement and purchasing departments of the 14 major group companies that directly procure materials. The meetings provided explanations on social demands concerning sustainable procurement and the group’s sustainable procurement activities, as well as opportunities for dialogue on initiatives and issues. Also, we provided an educational program about supply chains and human rights issues for the Group companies upon request. The program covered the rising risks related to human rights infringements across the supply chain—such as forced labor, corporations’ responsibilities, and other related topics. 62 FUJIFILM Holdings Corporation Sustainability Report 2023