Corporate Governance

Governance

Members of the Risk Management Committee deliberate on the risks and opportunities presented by climate change and report to the SMC. Their climate-related responsibilities include:

• Developing climate-related strategy
• Considering climate-related issues when developing business strategy and risk management policies
• Approval of climate-related disclosures

The General Manager, Internal Audit and Sustainability is responsible for overseeing our sustainability and climate-related governance and coordinating our environmental initiatives. Plans and communications related to climate-related issues are reported regularly to the SMC and the regional headquarters.

Strategy

Risks and opportunities brought by climate change are identified over the short-term (0 to 5 years), medium-term (5 to 10 years) and long-term (10 years and beyond) horizons.

Physical Risks:

Our operations could be directly impacted by frequent short-term business disruptions caused by severe weather or natural disasters, such as flooding and typhoons in locations where we operate. These events could undermine our ability to provide effective support services to customers, to control the operating costs, and to meet the revenue and market share targets.

As our products, spare parts and consumables are supplied by overseas manufacturing plants, our supply chain may be disrupted by severe weather events and other unexpected events, such as COVID-19.

Transitional Risks:

Climate-related regulations and standards, either mandatory or voluntary, addressing energy use and greenhouse gas (GHG) emissions reduction are expected to be tightened in the short-term. If we fail to comply with regulations on product energy efficiency, it will lead to an increase in operating cost.

We enjoy unique competitive advantages with our document management expertise, innovative technologies and service excellence. However, such advantages could be affected by climate-related customer behavioral changes, such as printing less and going paperless. The awareness of environmental protection and climate change has been on the rise globally, creating a higher demand for low or zero carbon products. Consumers and other stakeholders also expect businesses to minimize their carbon footprint and to help their partners reduce adverse environmental impact throughout the product lifecycle. If we fail to recognize this expectation, our reputation could be undermined, leading to deteriorated brand value, and eventually the loss of sales and market share.

Opportunities:

In light of the tighter regulations and standards on energy efficiency and pollution management, the higher consumer awareness created an opportunity for the Fujifilm Group to launch the “Green Value Products”, a certification program to certify its group-wide products and services, ensuring that they meet the stringent criteria on environmental consciousness. As a benchmark in the industry, this program allows us to showcase our sustainable offerings that adhere to the rigorous standards from manufacturing to end-of-life disposal as well as our leadership as an industry pioneer. It also helps us attract more environmentally conscious customers and subsequently increases our revenue.

One of the most important components of our business strategy is to create value for our customers and other stakeholders by enhancing the sustainability benefits of our solutions and services through innovation. We offer more sustainable and energy-saving digital printing and document management solutions to improve our customers’ environmental performance and mitigate climate change. Also, more efficient and effective business processes have helped us achieve the emissions reduction targets internally and along the supply chain, and consequently cut down the electricity consumption and costs.

One of our long-term strategies is to create shared value for our customers and other stakeholders through our printers and services. As such, we capture the strategic growth opportunities through innovations that simplify, automate, and optimize business processes using cloud and AI technology.

Climate Scenario Planning:

Led by the Fujifilm Group, this scenario analysis assesses the potential long-term business implications of direct and indirect transition and physical climate-related risks and opportunities. This active response to anticipated risks and opportunities has been integrated into our business strategy and enterprise risk management processes to ensure our business resilience. The analysis also covers our key locations and operations in Hong Kong, focusing on a range of potential climate-related and long-term physical risks and transition risks.

Since Hong Kong and Macau are more vulnerable to flooding caused by typhoons and heavy rain, our service delivery and support may be disrupted. Therefore, the analysis assessed our asset-level risk exposure to flooding and extreme weather, and resilience measures such as a contingency supply chain plan managed under the ISO 22301 Business Continuity Management System were implemented accordingly.

Risk Management

Our risk management framework with long-term targets covers various climate-related risks, supporting Fujifilm Group’s SVP2030.

In accordance with the ISO 14001 Environmental Management System, we assess the impact of our business activities from two perspectives: “compliance with laws and regulations” and “impact on the environment”. As the first company in Hong Kong to receive the newly launched ISO 14001:2015 Environmental Management System certification in 2015, we also obtained the latest ISO 50001:2018 Energy Management System certification in 2019. Guided by the ISO 20400 Sustainable Procurement - Guidance published in 2017, we manage our supply chain and actively integrate sustainability into the procurement process. The adoption of these management systems has enabled us to manage our day-to-day climate-related risks.

Metrics and Targets

Committed to the Science Based Targets Initiative, the Fujifilm Group aims to reduce its CO₂ emissions by 50% (compared to FY2019 levels) across the entire product lifecycle by FY2030. Besides, adhering to the RE100 initiative, the Fujifilm Group strives to convert 100% of its purchased electric power to renewable energy, achieving zero CO₂ emissions by FY2040.

Keeping up with the SVP2030, FUJIFILM Business Innovation Hong Kong has been adopting and advocating various sustainability initiatives to address environmental issues, such as implementing the daily “earth hour” during lunch break, zoning lighting devices and adopting our self-developed ESG data management tool. In FY2021, we reduced our CO₂ emissions by 11.1% annually and reaffirmed our commitment to being a carbon neutral operation by purchasing 636 tonnes of carbon offsets and supporting renewable energy projects in Southeast Asia.