2.5 ｜ Supply Chain Management Percentage of Local Procurement in China, and Asia and Others China Asia and others 85% 67% The Fujifilm Group pursues optimization of production and procurement process in all businesses in order to manufacture ever better products and offer them at appropriate prices. We are promoting our procurement activities by continually improving the following three points from the viewpoint of supply chain sustainability. 　(1) Quality 　(2) Cost 　(3) Delivery The Fujifilm Group bears a variety of sustainability risks because we conduct business with various suppliers of different regional characteristics for our diversified businesses and products. Further, social demand for companies to pursue CSR is also increasing as a part of the ever-changing business environment. Taking account of such situations, we are working to maintain sustainability-conscious procurement by incorporating CSR-based assessments when choosing a supplier and in periodic evaluations. In general, labor disputes tend to occur relatively frequently in Asian countries other than Japan. For this reason, and due to the rapid tightening of environmental regulations propelled by society, factories in Asian countries have a higher risk of operational cessation. To avoid such risk, the Fujifilm Group focuses on sustainable procurement in Asia, including China. The Fujifilm Group’s pursuit of sustainable procurement is not only to avoid risks, but also for the positive benefits it brings. We believe that respecting the human rights of workers in the supply chain increases productivity and moral action, which in turn lead to the provision of better products and services, as well encouraging innovation. We aim to develop together with our suppliers by encouraging them to take initiatives in such activities to spread such positive effects. For more details on our concrete efforts of sustainable procurement, refer to 2.5.5 Efforts to Improve Sustainability in the Supply Chain (Sustainable Procurement Activities). 2.5.3 Procurement Policy and Structure 1. Procurement policy and rules The Fujifilm Group’s policy and rules concerning sustainable procurement are described below. Fujifilm Group Corporate Philosophy and Vision Fujifilm Group Charter for Corporate Behavior and Code of Conduct The Fujifilm Group’s Approach to CSR Human Rights Statement Procurement Policy Request to Suppliers Fujifilm Group’s stance toward (=Fujifilm Group Charter for Corporate Behavior and Code of Conduct) the issue of responsible minerals procurement Green Procurement Standards Sustainable Procurement Guidelines for Suppliers 56 FUJIFILM Holdings Corporation Sustainability Report 2023