Governance protected, and shall fully engage in dialogue with local communities whose rights might be seriously affected by their business activities. III. Corporate ethics: Suppliers shall protect the rights of their workers, conduct fair transactions as a matter of routine, and avoid any association with antisocial forces or organizations. Paper Procurement Efforts KPI FY2020 FY2021 FY2022 FY2023 Target Percentage of suppliers submitted signed pledges, check lists, and materials reports 100% 100% 100% 100% (FUJIFILM Business Innovation) 2.5.10 Sustainable Procurement Efforts in Logistics Japan’s logistics industry faces serious social issues, such as long working hours by courier drivers, death from overworking, and environmental and safety issues caused by poorly maintained vehicles. These problems are caused by the increasing trend of internet shopping and the surge in home delivery demand due to the COVID-19 pandemic since 2020. FUJIFILM Logistics Co., Ltd., which is in charge of logistics operations for the Fujifilm Group, has been requesting its logistics partners (direct suppliers) to cooperate in our sustainable procurement for logistics in Japan since fiscal 2009. Through such requests, logistics partners conduct sustainability self-checks and if their conformance rate is less than 90%, FUJIFILM Logistics visits the partner company to offer advice for correction. In fiscal 2022, we requested 111 suppliers to conduct self-checks and collected the results from all suppliers. The remaining COVID-19 impact limited our support and visits to partner companies that had less than a 90% conformance rate. However, we were able to confirm that the improvement on identified issues had been implemented in those companies we visited. Sustainable Procurement Effort KPI in Domestic Logistics in Japan FY2020 FY2021 FY2022 FY2023 Target Percentage of companies with 90% or more sustainability self- 97% 95% 97% 100% check conformance rate In fiscal 2022, FUJIFILM Logistics focused on improving logistics efficiency through cross-industrial collaboration. Collaboration enabled “long-distance relay trucking,” where multiple drivers change over after covering a set intermediate distance. Relay trucking reduced both the number of vehicles and working hours, as well as minimizing the long-hour working resulting from long-distance single driver transportation. FUJIFILM Logistics is strengthening cooperation not only with direct suppliers, but also with indirect suppliers— i.e. subcontractors. In fiscal 2022, as in the previous year, FUJIFILM Logistics shared the Fujifilm Group’s COVID-19 countermeasures with direct and indirect suppliers. Since fiscal 2020, FUJIFILM Logistics has been using the GoStop Management System, a logistics service provided by the Japan Weather Association, to support transportation safety in bad weather. We provide our partners with information gained from the system, such as bad weather forecasts and other data that helps determine whether it is necessary to cancel transportation. In fiscal 2022, there were no accidents caused by natural disasters. Further information, please refer to 2.5.6-3 Efforts in Logistics. 67 FUJIFILM Holdings Corporation Sustainability Report 2023