Fuji Xerox (Hong Kong) Limited Sustainability Report 2017 · this Fuji Xerox (Hong Kong) Sustainability Report 2017. With hands connected, Fuji Xerox (Hong Kong) visions a brighter

Create, Change and Innovatefor a Sustainable Future

Sustainability Report 2017Fuji Xerox (Hong Kong) Limited

Cover Story

Contents

Top Commitment

P. 01

Company Profile

P. 12

Glossary

StrongCreating and Utilizing Knowledge for

Innovative Communication Workstyles

P. 23

KindSupporting Businesses Engaged in InnovativeInitiatives for Environmental Conservation

P. 31

InterestingReinforcing Corporate Strengths

for Diverse Workstyles

P. 38

Corporate GovernanceBuilding a Robust Management Foundation

for Compliance and Risk Management

P. 18

CSR Indicators

P. 45

GRI Content Index

P. 47

Verification

P. 53

Feedback

[email protected]

Report Scope and Approach

P. 05


Sustainability Report 2017

Upholding our commitment in achieving a sustainable future, three smiling children Suet Ching, Suet Lam and Suet Yau of our employee (Alex Hung) are featured in this Fuji Xerox (Hong Kong) Sustainability Report 2017.

With hands connected, Fuji Xerox (Hong Kong) visions a brighter future together with the provision of innovative and sustainable products, solutions and services that enhance business productivity and capabilities of our customers and other stakeholders. In addition, we hold the determination to address key sustainability issues as far as possible to “Create, Change and Innovate for a Sustainable Future”.



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Sustainability Report 2016 Sustainability Report 2017

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04

Top Comm

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Top CommitmentChapter 1Cover Story

Contents

Top Commitment

P. 01

Company Profile

P. 12

Glossary

StrongCreating and Utilizing Knowledge for

Innovative Communication Workstyles

P. 23


P. 31

InterestingReinforcing Corporate Strengths

for Diverse Workstyles

P. 38

Corporate GovernanceBuilding a Robust Management Foundation

for Compliance and Risk Management

P. 18

CSR Indicators

P. 45

GRI Content Index

P. 47

Verification

P. 53

Feedback

[email protected]


P. 05


Sustainability Report 2017

Upholding our commitment in achieving a sustainable future, three smiling children Suet Ching, Suet Lam and Suet Yau of our employee (Alex Hung) are featured in this Fuji Xerox (Hong Kong) Sustainability Report 2017.

With hands connected, Fuji Xerox (Hong Kong) visions a brighter future together with the provision of innovative and sustainable products, solutions and services that enhance business productivity and capabilities of our customers and other stakeholders. In addition, we hold the determination to address key sustainability issues as far as possible to “Create, Change and Innovate for a Sustainable Future”.

Our Top Priority Witnessing the Information Technology revolution from the past decade, a drastic increase in information volume and an added complexity to the channels and forms have affected the distribution of information. The change does not only lead to challenges for us, but also for our customers and other stakeholders. Being a trusted Information and Communications Technology (ICT) partner specializing in leading-edge document management consultancy, Fuji Xerox (Hong Kong) Limited is dedicated to bringing innovation to products, integrated solutions and services across different industries, so that companies can maximize business efficiency and achieve sustainability. Over these years, we have been successfully aiding companies towards managing and improving their document-intensive business processes, in turn enhancing their market competitiveness. We are especially delighted to have received recognitions from customers and having successfully maintained our leading market position throughout these years.

Being one of the 100 global GRI Standards pioneers and a committed corporate citizen in Hong Kong, Fuji Xerox (Hong Kong) not only led the adoption of

the Global Reporting Initiative (GRI) Standards in 2016, but also actively embraces the United Nation’s Sustainable Development Goals (SDGs), all the while pursuing our activities in line with the United Nation Global Compact principles. SDGs serve as an important guideline for us in reconsidering business opportunities and risks. Through incorporating key SDGs identified in our materiality assessment, we implement different initiatives in realizing sustainable development. Take the example related to the “SDG #8 Decent Work and Economic Growth”, with Fuji Xerox (Hong Kong) pioneering the first within Hong Kong and certainly within our industry’s Intelligent Environmental, Social and Governance (iESG) management tool, which simplifies sustainability data collection and reporting, keeping related audit trail logs in order to comply with the Environment, Social and Governance (ESG) requirements from the Stock Exchange of Hong Kong Limited. In addition, Fuji Xerox (Hong Kong) has been collaborating with the Hong Kong Polytechnic University and Knowledge Management and Innovation Research Center in launching the first ever Enterprise Innovative Efficiency Capability Index (EIECI). This will be the first market index in Hong Kong with the aim of helping enterprises in understanding


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their businesses through analyzing and benchmarking their efficiency capability levels with the industry average. With our professional advice, the index can help enterprises prepare for changes to maximize their achievements of business goals, hence forth developing strategies towards a more sustainable development.

Looking BackwardEach year, around 70,000 tonnes of waste electrical and electronic equipment (WEEE) is generated in Hong Kong. With an increasing concern for WEEE within the international community, Hong Kong government has tightened its control on establishments responsible for WEEE treatment and recycling facilities, introducing several strict initiatives on the promotion of recycling and proper disposal. Despite the recent government’s harsh and standardized implementation of recycling levy on all suppliers, sellers and recyclers within Hong Kong, Fuji Xerox (Hong Kong) values waste as a resource and strives to create a circular economy through active collection and recycling of our own used products for over a decade. With our unique 360° of Sustainability™ concept and its relations to the Fuji Xerox Integrated Recycling System established back in 2004, we have incorporated sustainability considerations into every stage of our product life cycle to minimize our impact on the environment. We are delighted to share that we have continued our “zero landfill” initiatives actively and have achieved over a 99.5% material recycling rate within the past years.

Being an industry leader ranked number one in the A3 multi-purpose printer market for 20 years in a row now, along with the determination to remain a trusted ICT partner to our customers and other stakeholders, Fuji Xerox (Hong Kong) strives to accelerate the growth of our customers and to continue to relentlessly provide state-of-the art solutions and services to the market. In 2016, we were proud to present the Smart Device 2.0, a new-generation mobile document management smart device consisting of hardware, software and cloud applications, designed to empower customers and boost business performance. Combined with a series of cloud services and solutions, we believe our customers will benefit from enhanced market competitiveness.


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In the fiscal year of 2016 (FY2016), we achieved a steady growth in our year-on-year “Triple Bottom Line” Corporate Social Responsibility (CSR) rating. Not only have we accelerated solution business with a revenue growth of 19% along with the initial breakthrough 50% of total revenue in the solution and service business, we have contributed to a 3.0% five-year compounded annual growth rate (CAGR) in revenue, a 4.5% reduction in carbon dioxide (CO2) emissions, and a 7.1% increase in the number of staff volunteering hours, reflecting how we have successfully built a committed volunteer network dedicated to contributing to the society.

Moving Forward Entering into the era of the Internet of Things (IoT), a report from the International Data Corporation (IDC) indicated that over 50% of enterprises surveyed considered IoT as their main strategy in enhancing their competitiveness. We are ready to empower enterprises through embracing IoT, increasing their competitive edge with a series of customized cloud services and solutions. The process of document management has become an integral part of work. According to the research, 61% of office workers identified the need to access company data on their mobile devices. Smart Device 2.0, a new-generation mobile document management smart device consisting of hardware, software and cloud applications, is designed specifically for enterprises that handle and manage excessive documents, such as those in the financial, banking, construction and legal industries. It also works perfectly for enterprises and small-to-medium businesses with staff who always need to access work on their mobile devices, as it enables the same working environment regardless of where they are. This smart device is becoming a workplace necessity that streamlines workflow; employees are no longer bounded by geographical restrictions and may stay connected with their office at all times. A survey indicates that office workers spend on average 20% of their time daily handling documents – in other words, one fifth of their potential manpower. Based on the median household income in Hong Kong, a 100 strong, small-to-medium business spends over HK$3 million per year on handling documents, a tedious amount for a straightforward procedure. Therefore, a document management solution can help enterprises save sufficient time and cost, allowing a better use of their resources.

In 2017, our business will focus on IoT. We will launch more cloud services and solutions, and concurrently strengthen IoT application across industries. As a market leader, Fuji Xerox (Hong Kong) offers consultancy services underpinned by three pillars: iWorkplace, Business Process Optimization (BPO) and Customer Communications Management (CCM). Smart Device 2.0 not only fully demonstrates these services, but also further automates business processes through the application of IoT. We will focus on the product services market, and encourage different enterprises to move towards a greener and business-friendly workflow by making good use of innovative technologies.

0 200 400 600 800 1000

Economic

Environmental

SocialVolunteering Hours

CAGR in Revenue

FY2014

FY2015

FY2016

FY2016

FY2016

0 1 2 3 4 5Percent

Tonnes CO2-e

Hours0 2000 3000 40001000

FY2014

FY2015

FY2014

FY2015

CO2 Emissions

3,839

4,007

4,293

5.0

2.9

992.6

891.6

851.9

3.0


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Responding to mounting demands for high level of cloud security, Fuji Xerox (Hong Kong) has offered a cloud risk assessment framework for cloud vendors. This framework integrates various stringent international standards, including the Federal Risk and Authorization Management Program (FedRAMP), Cloud Security Alliance (CSA) and more. Together with unique technology from Fuji Xerox (Hong Kong), the framework standardizes cloud security management and monitoring, so enterprises can further understand cloud vendors and users’ practice, achieving a higher level of security and prevent confidential data breach.

Business efficiency and security is not only crucial for enterprises to sustain its business, but it is also tactically essential in resolving any pressing concerns of environmental issues like global warming. As one of Fuji Xerox Co., Ltd.’s overseas sales subsidiaries, we will continue to collaborate with our customers and stakeholders in actively seeking out new measures like the implementation of the new ISO 20400 Sustainable Procurement - Guidance to achieve further sustainable reductions in Hong Kong operations. This is definitely one of our local initiatives contributing towards meeting our parent company Fuji Xerox Co., Ltd.’s target in reducing their whole lifecycle carbon dioxide (CO2) emissions of products by 30% from FY2005 level by FY2020. We anticipate many more sustainability initiatives to come, especially due to FUJIFILM Holdings Corporation’s (the shareholder holding 75% shares of Fuji Xerox) formal commitment towards the Science Based Targets initiative established on 23 June 2017. Collaborating with Carbon Disclosure Project, World Resources Institute, the World Wide Fund for Nature, the United Nations Global Compact and one of the We Mean Business Coalitions, this ambitious global initiative champions science-based targets and provides a clear pathway towards boosting companies’ competitive advantage whilst transitioning to a low-carbon economy along with the use of the GRI Business Activity Groups to classify businesses. In joining this initiative, companies will work together to keep global temperature increase below 2°C when measured against pre-industrial temperatures, which will contribute greatly in reducing the level of climate change.

2017 is a challenging year with many uncertainties within the business environment. Yet, my team and I will continue in striving to ensure that the corporate activities are “open, fair and clear” with contributions to solve the issues in the society. We are well prepared and confident in generating new value for our customers and other stakeholders, continuing in our contributions to the society. I would also like to take this opportunity to thank you for all your support and invite you to read this Sustainability Report. We look forward to receiving your comments or feedback through [email protected].

Herbert HuiManaging DirectorFuji Xerox (Hong Kong) Limited

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Sustainability Report 2016 Sustainability Report 2017 0504



Report Scope and ApproachChapter 2

Reporting Objectives Ideally amongst leading companies today, reporting on sustainability is integral in communicating every aspect of a company’s performance to stakeholders on a company’s execution of their objectives. Striving to adhere to the best international standards, Fuji Xerox (Hong Kong) is devoted to reporting our sustainability performance with greater transparency. As such, we have continued to adopt the stringent objectives of our “Plan-Do-Check-Act” (PDCA) improvement cycle, and by that very nature fully deployed our own Intelligent Environmental, Social and Governance (iESG) management tool to assist us so. Pioneered by Fuji Xerox (Hong Kong), the advanced innovative tool specializing in collecting sustainability data is applied towards the statistics of this report to ensure the precision and validity of all qualitative and quantitative information within the scope of this report. To facilitate a better understanding of our company, this report will also identify our business development plans and the latest company goals and initiatives. While responding to the sustainability issues which are of greatest importance to our stakeholders, we will share our business philosophy so as to exemplify how we embed CSR values into our management approach at every level.

This is our eighth sustainability report. These reports are published annually and follow the Japanese financial year which officially ends on 31 March. As such, the information contained in this report may be still in progress, may have been completed within the reporting period, or may be scheduled to roll out in the following fiscal year (FY).

Reporting Scope This report covers information on significant economic, environmental and social impacts that have ensued from our operations which took place between 1 April 2016 and 31 March 2017 (i.e. FY2016) in reference to the following locations:

• Hong Kong Island’s offices

• Tsuen Wan’s Recycling Center

• Kwai Hing’s Document Technology Center

• Macau office

Please note that due to the varying data collection systems implemented in certain offices, not all Macau office performance information has been included.

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Reporting PrinciplesThis Fuji Xerox (Hong Kong) Sustainability Report complies with:

• The internationally recognized Global Reporting Initiative (GRI) Standards issued in 2016, ISO 26000:2010 Guidance on Social Responsibility, United Nations (UN) Global Compact Initiatives, United Nations Sustainable Development Goals (SDGs), and Business Environment Council (BEC) Handbook of Understanding Materiality for Environmental, Social and Governance Report

• Stakeholder concerns

• The benchmarking against other industry players

External Assurance This report has been prepared in accordance with the GRI Standards: Core option with respect to the extent of coverage and the information provided. Our Senior Management Committee (SMC) has appointed Hong Kong Quality Assurance Agency (HKQAA) to conduct an independent verification of this report which is in accordance with the GRI Standards, ISO 26000:2010 Guidance on Social Responsibility and ESG Reporting Guide. For details of the assurance statement, please refer to the Verification section of this report.

CSR ManagementFollowing our parent company’s principle that “CSR is synonymous with corporate management”, Fuji Xerox (Hong Kong) consistently tries to perform to the expectations of our stakeholders in every aspect, strives to solve issues for our customers and shares values with our stakeholders by demonstrating Fuji Xerox’s “unity of words and deeds” principle - known as “Genko-Itchi” in Japanese - within all our business processes.

Fuji Xerox (Hong Kong) is eager to share our CSR management and performance figures with our stakeholders by reporting all ESG-related information through this sustainability report, despite not being a listed company and not obligated to publish this report. We believe that the publication of this report is a viable stakeholder

engagement method and an integral part of our healthy relationship with all stakeholders. Through this report’s active disclosure of topics about Fuji Xerox (Hong Kong), we hope to ensure the integrity of our decision-making processes, to enhance our CSR management and to comply with the international, local and industry requirements as outlined in the GRI. Ultimately, we hope to create a positive impact for our stakeholders by further advocating for local change and social issues, creating stronger bonds with the community. Our parent company Fuji Xerox first published the “Fuji Xerox Environmental Progress Report 1998” in 1999, followed by the “Environmental Report” for the years 2000 to 2002, and eventually its “Sustainability Report” from 2003 onwards. A copy of the Fuji Xerox Sustainability Report can be obtained through http://www.fujixerox.co.jp/eng/.

Material Aspects and Stakeholder EngagementTo address the interests and concerns of Fuji Xerox (Hong Kong)’s stakeholders, we reported the material matters identified in this sustainability report in accordance with the GRI Standards. We also further refer to other applicable guidelines and principles such as AccountAbility’s AA1000 Standards.

Beginning with the first Fuji Xerox (Hong Kong) Sustainability Report published in 2010, we have identified the report’s material aspects by reviewing the results and comments obtained from the Fuji Xerox Annual CSR Survey, which was developed based on international and Japanese standards and guidelines, including – but not limited to – the UN Global Compact’s 10 Principles and the Japan Association of Corporate Executives’ New Corporate Assessment Standards. This year, Fuji Xerox (Hong Kong) further incorporates the 17 Sustainable Development Goals (SDGs) established by the United Nations into our materiality assessment.

Through conducting this materiality assessment with consideration towards local benchmarking platforms, voices and opinions of both internal and external customers and feedback obtained during our unique “Green Tour” were included. First introduced in 2010, the “Green Tour” is an innovative two-

0704



way communication platform, created through inviting various stakeholders to visit our recycling and low-carbon operation. In FY2016 alone, 31 tours were organized, with Fuji Xerox (Hong Kong) welcoming over 370 visitors including customers from various industries and local communities (e.g. students and the Hong Kong government). We categorized the feedback to produce a materiality matrix based on the frequency in which a matter is referenced through the various stakeholder sources.

Upon the finalization of the materiality assessment results, we then identified material matters in the “High-High” area of the materiality matrix diagram as essential to our report. Other matters indicated are touched upon in the reports, although to a lesser extent. Through evaluation and detailed assessment, we proceeded to share more granular details with our associated stakeholders through further, more tailored, communications.

The material matters identified in the “High-High” area of this Materiality Matrix Diagram will be discussed in the coming chapters, to which the covered matters will be highlighted in white at the beginning of each chapter.

Economic

Importance to Fuji Xerox (Hong Kong) LimitedMedium

Med

ium

Social

Environmental

Zero Hunger

No Poverty

Volunteering

Product Safety

Quality Education

Sustainable Citiesand Communities

Affordable and Clean Energy

Partnershipsfor the Goals

EmployeeSatisfaction

InformationSecurity

OccupationalHealth and Safety

Supply Chain Management

Manpower Development

Gender Equality Peace, Justice and Strong Institutions Reduced Inequalities

Clean Water and Sanitation

EnvironmentalEducation

Sustainable Procurement

CarbonManagement

Climate ActionManagement

Waste Management Energy Management

Life Below Water

Eco Product

BusinessContinuity Customer

Satisfaction

Governance andRisk Management

Industry, Innovationand Infrastructure Decent Work andEconomic Growth

Responsible Consumptionand Production

• Fuji Xerox (Hong Kong) Materiality Matrix

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Industry, Innovation and Infrastructure

Decent Work and Economic Growth

Value Treasured in Fuji Xerox (Hong Kong) Connection to SDGs

Governance

We view sustainability and risk management as top priorities for developing our business. With such, we adopt robust management systems, processes and mechanisms to facilitate our business operations and to give a greater voice to our stakeholders.

Economic

With developing innovative ICT technology, we provide the highest standards of solutions and services to assist our customers in achieving business efficiency, productivity, and sustainability.

Environment

Being a corporate citizen, we have always done our utmost to give greater value to the global environment through various sustainability initiatives.

Social

On top of actively engaging our employees, customers and suppliers, we share our experiences with business partners and the community through participation in various associations and voluntary services, in order to develop a sustainable society.

Decent Work andEconomic Growth

Industry, Innovation and Infrastructure

ResponsibleConsumptionand Production

Good Health and Well-Being

ReducedInequalities

Peace, Justice and Strong Institutions

Gender Equality

Climate Action

Core

Bus

ines

s Processes

Mid-range M

anagement Plans

Fuji Xerox(Hong Kong)

Value Provided

Two-wayCommunication

withStakeholders

Repo

rt to

management re

flecting survey results in mid-range strategy

Examination and progress management atFuji Xerox (Hong Kong) Sustainability Committee

Fuji Xerox(Hong Kong)CSR Review

Fuji XeroxCSR Survey

Fuji Xerox(Hong Kong)

SustainabilityReport

Check whether information is provided to and

received from stakeholders in an effective manner

Customers

LocalCommunities

Shareholders /Investors

GlobalEnvironment

Employees

Suppliers

Stakeholders• Mission Statement

• Shared Values

Check degree of meeting stakeholders’ requirements every year• Fuji Xerox (Hong Kong) CSR Improving Mechanism

• Our Value with Connection to SDGs

For detailed linkage between material topics and SDGs, please refer to GRI Content Index.

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Stakeholders Concerns Fuji Xerox (Hong Kong)’s Engagements

Customers • Quality of Products and Services• User-friendly Design• Cost Effectiveness of Services• Responsiveness of Services• Information Security • Safe Working Environment• Fair Working Conditions• Benefits and Welfare• Career Development• Employee Satisfaction • Economic Stability• CSR Performance Management• Business Ethics• Fair Trade

• Staff Communication Meetings• Managers’ Gathering Sessions• Newsletters• Employee Relation Activities

• Customer Satisfaction Survey• Website• Press Release• ISO 27001 Information Security Management System Audits

Employees

Suppliers

• Irregular Meetings• Letters• Code of Conduct

Global Environment

• Various Audits (ISO 14001 Environmental Management System, ISO 50001 Energy Management System, FSCTM Chain of Custody, 5S, etc.)• Ad-hoc Meetings and Visits

• Low Carbon Office• Eco Product Life Cycle• CSR Recognition• Sustainable Procurement

• Social Contribution• Employment Opportunities• Mentoring• Employing Vulnerable Individuals

Local Communities

• Charity Functions• Fund Raising Campaigns• Ad-hoc Meetings

Shareholders/ Investors

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

• ISO 22301 Business Continuity Management Systems Audits• Regular Meetings• Reports• Internal Audits• CSR Review

• Fuji Xerox (Hong Kong)’s Response to Stakeholders’ Needs

Management ApproachIn alignment with our parent company’s mission and responsibilities as a corporate citizen, Fuji Xerox (Hong Kong) has been at the forefront of efforts in creating value for our six defined stakeholder groups through our CSR management practices and processes. Below is a summary of management approaches through which Fuji Xerox (Hong Kong) has been building trust and engaging with our stakeholders, particularly during uncertain market situations.

Engagement with Customers

To facilitate and enhance our customers’ business efficiency and quality, Fuji Xerox (Hong Kong) strives to develop and deliver innovative products and services of the highest caliber. Backed by our parent company, Fuji Xerox Customer Co-creation Laboratory enables high-level collaboration with our customers and business partners and assists in identifying the challenges they face during their day-to-day operations. Locally, through active customer contact and care, Fuji Xerox (Hong Kong) has successfully identified and anticipated a number of customers’ management problems and thus helped to create new solutions which tackle these issues in advance. In pursuit of further support for our customers, we have upgraded our Intelligent Environmental, Social and Governance (iESG) platform to a new and ameliorated version 2.0. The new tool captures ESG data that fulfils both ESG guidelines and GRI Standards, allowing our customers to optimize their sustainability performance through an easy and effective approach. By thoroughly communicating with our customers and providing them with constructive holistic solutions, we aim to gain the satisfaction and trust of all valued customers.

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Engagement with Employees

Fuji Xerox (Hong Kong) considers human resources to be one of our most valuable assets. We believe that by creating an environment that welcomes inspiration and fosters innovative ideas from our talents and professionals, we can enhance our business and generate mutual benefits for both society and our company. To motivate and empower our employees, we have invested and engaged in a wide range of initiatives to improve employee satisfaction, increase their sense of belonging, raise diversity and provide personal learning and development in the hopes that all our employees can reach their full potential, grow to cope with different challenges, and achieve success in both their personal and professional lives.

Engagement with Suppliers

Fuji Xerox (Hong Kong) recognizes the importance of promoting sustainability, not only within our own operations but also across our entire supply chain. Beyond requiring that our suppliers comply with all laws and regulations concerning the environment, ethics, information security and other critical issues that concern us, Fuji Xerox (Hong Kong) further views our suppliers as business partners, hence aiming to grow consistently with them, adjusting hand in hand to the ever-changing needs of the market. With this guiding principle in mind, we frequently engage our suppliers and share our CSR philosophy and management approach with them. The result is that we have proudly cultivated a group of suppliers that adopt green and sustainable procurement strategies in tandem with us. We have built up strong relationships with our suppliers and will continue to nurture a green and competitive supply chain that facilitates mutual benefits for all parties.

Engagement with Global Environment

Fuji Xerox (Hong Kong) first established its Environmental Protection Policy in 1985 and upgraded to a Sustainability Policy in 2010. Ever since the adoption of ISO 14001 Environmental Management System since the second half of 2002, we have incorporated sustainability into our core business activities and promoted continuous improvements through the use of our PDCA improvement cycle. We firmly support the regional efforts of our parent company in embedding sustainability into all steps of the product lifecycle, namely the sourcing of parts and materials, assembly, processing, logistics and end-user power consumption, as well as product recycling and disposal. Fuji Xerox (Hong Kong) embraces every gesture we can in support of the regional 360o of SustainabilityTM

initiative, aimed at minimizing the negative impacts caused by our business operations in Hong Kong. To support the next generation, we have also regularly partnered with universities and academic institutes in organizing “Green Tours” for students. We believe that through face-to-face interaction, we can trigger their interests in integrating innovative ICT applications into their daily lives and ultimately aid them in creating a sustainable future environment for themselves and the generations that follow.

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Engagement with Local Communities

As a responsible corporate citizen in Hong Kong, we do our utmost to recognize and address local social issues. By utilizing our core competencies, we create a better society and cultivate a strong, loving and caring “Volunteer Network” that serves the communities, particularly those in need. We initiate and promote a number of volunteering programs, ranging from environmental conservation to child welfare and cultural preservation and much more. To further our involvement, we actively seek opportunities to collaborate with non-governmental organizations (NGOs) and institutions to foster synergistic effects. Although a great deal has been achieved, we understand that more action is still required to sustain positive changes in the community. Fuji Xerox (Hong Kong) will continue to make the best possible use of our resources, such as our professionals and ICT technology, to tackle prevailing social problems and contribute to society.

Engagement with Shareholders/Investors

Fuji Xerox (Hong Kong) is committed to embracing innovation, dynamism and vitality. We follow our parent company’s motivations in keeping pace with changes in the market and evolving to meet new challenges. Eager to deepen collaboration and bonding with our counterparts in China, we are committed to achieving our CSR targets in what has become a rapidly-changing and unfavorable economic environment. Striving for continual improvement, we benchmark ourselves with pioneers in the industry in order to cement Fuji Xerox (Hong Kong)’s status as a trusted ICT partner which provides leading document services and communication. Ultimately, we endeavor to remain a key revenue generating operating company, delivering exemplary results to our parent company Fuji Xerox Co., Ltd. and, naturally, to the shareholders/investors of FUJIFILM Holdings Corporation and Xerox Limited.

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Company ProfileChapter 3

Company Profile

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Company Profile

Xerox’s PhilosophyOur CSR concept followed by Fuji Xerox (Hong Kong) originates from our parent company, Fuji Xerox. The concept itself is derived from the original business philosophy of Joseph C. Wilson, founder of the Xerox Corporation.

“Our business goal is to achieve better understanding among men through better communications.”

Joseph C. Wilson

Established in 1964, Fuji Xerox (Hong Kong) Limited is considered as one of the leading companies specializing in document management consultancy, consistently delivering new core values and innovative ideas for a changing world. Formerly known as Rank Xerox (Hong Kong) Limited, we became a subsidiary of Fuji Xerox Co. Ltd. under a 75/25 joint venture between FUJIFILM Holdings Corporation and Xerox Limited in 2000. As a deeply entrusted ICT partner with well over 900 employees*, Fuji Xerox (Hong Kong) maintains a high standard in providing focal document services and communication to a broad range of customers, bringing these resources and amenities well within the reach of corporations.

Committed to providing cutting-edge information and communications technologies, Fuji Xerox (Hong Kong) offers document consultancy services and solutions to customers in every industry ranging from streamlined workflow software to enterprise print services, document supply chain management and business process services, covering the entire spectrum of our customers’ needs in both Hong Kong and Macau.

* Figure excludes certain external contractors performing logistical management tasks in our workshop and warehouse.

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Company ProfileChapter 3Com

pany Profile

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.

Mission StatementThe mission statement sets forth a common goal for Fuji Xerox and its affiliated companies. As one of its overseas sales subsidiaries, Fuji Xerox (Hong Kong) wholeheartedly and honorably pledges its commitment in actively following the outlined mission statements.

Shared Values Fuji Xerox (Hong Kong) encourages all employees to adhere to the ten “Shared Values” set out by our parent company Fuji Xerox within the scope of their work and business principles. The values outline the expected dedication and steadfast approach towards our responsibilities and emphasize our duty as members of society and as individuals to uphold them.

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

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The “Good Company” Concept The “Good Company” concept was incorporated into Fuji Xerox in 1992 as both a business philosophy and a cornerstone of Fuji Xerox’s management approach. Since being part of Fuji Xerox in 2000, Fuji Xerox (Hong Kong) has been committed to embracing this concept as a fundamental part of our way of doing business.

A “strong” company consistently maintains an impeccable standard of product delivery and services that satisfies customers, as well as continuously rewarding its shareholders. A “kind” company contributes to local and global communities in terms of environmental conservation, ethical behavior, and social contribution. An “interesting” company ensures our employees retain a fruitful social and work life. Like our parent company, Fuji Xerox (Hong Kong) operates as a responsible corporate citizen as we strive to encompass these three attributes.

Creating Value for Society Fuji Xerox (Hong Kong) plays a crucial role in providing innovative document consultancy solutions and services to a wide array of customers, ranging from small and medium enterprises to multinational organizations.

Our multi-function devices, printers and copiers help businesses work smarter and more efficiently with reduced printing costs, streamlined business processes and the automation of daily tasks.

• Office Multi-function Devices

• Production Printing Systems

• Production Workflow Software

• Office Printers

Solutions

Products

We provide customized solutions offering advanced technology, equipment and implementation services tailored to our customer’s demands. Our solutions help customers remain efficient and competitive in their workplace and to achieve notable cost reductions.

• Office Solutions: Streamline and centralize the document management process

• Digital Workflow Solutions: Boost productivity, reduce costs and enable new applications

• Industry Solutions: Focus on specific businesses to enhance competitiveness and create greener offices

• Enterprise Print Services:Make printing easy so that companies can concentrate on core operations

• Document Supply Chain Management:Integrate document management to increase the value of documents

• Business Process Services: Streamline business processes with fast, accurate and secure access to information

ServicesOur outsourcing services prioritizes the document and business procedures of customers committed to conducting global business activities. We manage and evaluate all document processes, from production and storage to output and usage, to achieve cost reductions and higher productivity and efficiency.

• Enterprise Print Services:Make printing easy so that companies can concentrate on core operations

• Document Supply Chain Management:Integrate document management to increase the value of documents

• Business Process Services: Streamline business processes with fast, accurate, and secure access to information

• Wide Format Printers and Copiers

• Paper and Supplies

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

“Good Company” Conceptsince 1992

“Good Company” Conceptsince 1992

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材調達

Global Environment

Supp l i e r s

Employees

Local CommunitiesGlobal Environ m ent

Local Communities

S u p p l i e r s

Employees

Use by Custom

ers

Reduce, Reuse,Recycle, Disposal

R&D, Manufacturing, Sales

Mat

eria

ls Pr

ocur

emen

t

Fuji Xerox BusinessActivities

Through initiatives based on “unity of words and deeds” – known as “Genko-Itchi” in Japanese – Fuji Xerox (Hong Kong) works hand in hand with all stakeholders with all our business ventures heeding to our 360o of SustainabilityTM value chain. Beyond the initial parts procurement and manufacturing operations performed within Fuji Xerox and other affiliates, Fuji Xerox (Hong Kong) further optimizes value across several local stages in the value chain: “sales”, “use by customers” and “reduce, reuse, recycle, disposal”.

Striving for ExcellenceStriving to achieve outstanding performance in all our work and services, we are grateful to have received over 30 accolades in FY2016 alone from a number of recognized institutions – both in the local industry and the global market. These recognitions underscore our company’s commitment to upholding high standards in all our processes, products, solutions and services.

Reg. No.登記號碼:

Multifunction Device(多功能辦公室設備)

M15-0048

ISO 50001 : 2011Certificate No.: CC 5473


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Company Profile

16

Fuji Xerox (Hong Kong) Sustainability Journey 1964 • Established operations as Rank Xerox (Hong Kong) Limited

1969 • Opened Macau operations depot

1985 • Announced Environmental Protection Policy • Conducted environmental safety assessment

1986 • Implemented two-sided copy best practice • Encouraged volunteering for socially meaningful activities

1990 • Started selling office equipment with recyclable parts and toner cartridges

2000 • Became part of Fuji Xerox Co., Ltd.

2002 • Established CSR Committee • Became one of Hong Kong’s first ever batch of “Caring Companies”

2003 • Achieved ISO 14001 Environmental Management System accreditation

2004 • Established local recycling center in Tsuen Wan with green logistic workflow • Linked up with international resource recycling network in Thailand

2005 • Sold products in full compliance with the Restriction of Hazardous Substances Directive and the Waste Electrical and Electronic Equipment Directive

• Endorsed government-led Clean Air Charter • Received Wastewi$e Label - Class of Excellence

2006 • Conducted supplier’s survey to ensure compliance with Fuji Xerox’s Environmental Health and Safety Requirements for Paper Procurement

• Conducted survey confirming facilities are free of asbestos • Became Hong Kong Eco-Product Champion via public vote

2007 • Implemented ethical procurement • Passed FSC™ Chain of Custody Certification • Won HKQAA CSR Grand Award at the 19th Hong Kong Prints Award

2008 • Pledged to achieve an annual 1% absolute CO2 reduction target

• Won Hong Kong Award for Industries’ Environmental Performance

2009 • Implemented • Started “computer-off” checks by management

“earth hour” every day during lunch

• Became Green Partner in government-sponsored Carbon Audit program • Received Productwi$e Label - Class of Excellence

2010 • Upgraded Environmental Policy to Sustainability Policy • Established Sustainability Committee by combining its CSR and Environmental

committees as one • Published 1st local Sustainability Report • Implemented internal document management optimization project for reducing

environmental burden yet increasing productivity • Introduced complimentary Green Box to customers • Launched program to link compliments to donations • Became an advocate in the HKQAA-HSBC CSR Index • Won Hong Kong Outstanding Corporate Citizenship Award • Received the coveted Green Label

2012 • Achieved ISO 50001 Energy Management System accreditation • Launched 3C employee engagement framework • Introduced own Community Award to recognize volunteering • Became a “10 Years Consecutive Caring Company” • Won Social Capital Builders Award from government-sponsored Community

Investment and Inclusion Fund • Received Hong Kong Authorized Economic Operator (General Facilitation) - Tier 2

certification

2013 • Achieved ISO 22301 Business Continuity Management Systems accreditation • Became a qualified service provider with authorization to conduct carbon audits

by the CarbonSmart Program • Adopted a 24/7 cloud-based Energy Management System with instant alert • Served as a pilot company at Green Office Awards Labelling Scheme • Won Gold Label from the WWF Low-carbon Office Operation Program • Received Carbon“Less” 31% Certificate

2014 • Strengthened linkage across a wider range of Green solutions • Opened the first drop-off point for used printers at our warehouse • Launched Volunteering Leave to support volunteering • Honored with Elite Cultural Change Award and Elite Employee Engagement Award • Received Gold Award from Web Accessibility Recognition Scheme

2015 • Became the 1st company in Hong Kong to be certified with ISO14001:2015 Environmental Management Systems

• Conducted environmental assessments and practiced sustainable procurement on a larger scale during the relocation of our head office

• Registered as the Companion of HKQAA Hong Kong Registration - Recycling Services

2016 • Launched iESG management tool for ESG data capturing and reporting • Opened another drop-off point for used printers at head office • Became Hong Kong Green Organisation by the Environmental Campaign

Committee • Won Sustainable Business Award 2016 from World Green Organisation • Received CarbonCare® ESG Label for our Sustainability Report

2017

• Launched iESG 2.0 management tool (GRI version) • Verified in compliance with ISO 20400 Sustainable Procurement – Guidance • Became a “15 Years Consecutive Caring Company” • Won Hong Kong Sustainability Award 2016/17 from Hong Kong Management

Association • Became Sustainable Consumption Enterprise and Sustainable Product Supplier

by Business Environment Council

2011 • Enhanced Printing Policy with full use of recycled or FSC™ paper • Began utilizing energy efficient lighting equipment • Launched Volunteer Signage and Pins to encourage volunteering • Launched Green Tour to introduce recycling initiative • Won Gold Sectoral Award at the Hong Kong Awards for Environmental Excellence • Won Gold Award from Social Welfare Department’s Volunteer Movement • Won Family-Friendly Employers Award from the Family Council • Received Hong Kong Authorized Economic Operator (General Facilitation) - Tier 1

certification

04

R


Company Profile

17

Fuji Xerox (Hong Kong) Sustainability Journey 1964 • Established operations as Rank Xerox (Hong Kong) Limited

1969 • Opened Macau operations depot

1985 • Announced Environmental Protection Policy • Conducted environmental safety assessment

1986 • Implemented two-sided copy best practice • Encouraged volunteering for socially meaningful activities

1990 • Started selling office equipment with recyclable parts and toner cartridges

2000 • Became part of Fuji Xerox Co., Ltd.

2002 • Established CSR Committee • Became one of Hong Kong’s first ever batch of “Caring Companies”

2003 • Achieved ISO 14001 Environmental Management System accreditation

2004 • Established local recycling center in Tsuen Wan with green logistic workflow • Linked up with international resource recycling network in Thailand

2005 • Sold products in full compliance with the Restriction of Hazardous Substances Directive and the Waste Electrical and Electronic Equipment Directive

• Endorsed government-led Clean Air Charter • Received Wastewi$e Label - Class of Excellence

2006 • Conducted supplier’s survey to ensure compliance with Fuji Xerox’s Environmental Health and Safety Requirements for Paper Procurement

• Conducted survey confirming facilities are free of asbestos • Became Hong Kong Eco-Product Champion via public vote

2007 • Implemented ethical procurement • Passed FSC™ Chain of Custody Certification • Won HKQAA CSR Grand Award at the 19th Hong Kong Prints Award

2008 • Pledged to achieve an annual 1% absolute CO2 reduction target

• Won Hong Kong Award for Industries’ Environmental Performance

2009 • Implemented • Started “computer-off” checks by management

“earth hour” every day during lunch

• Became Green Partner in government-sponsored Carbon Audit program • Received Productwi$e Label - Class of Excellence

2010 • Upgraded Environmental Policy to Sustainability Policy • Established Sustainability Committee by combining its CSR and Environmental

committees as one • Published 1st local Sustainability Report • Implemented internal document management optimization project for reducing

environmental burden yet increasing productivity • Introduced complimentary Green Box to customers • Launched program to link compliments to donations • Became an advocate in the HKQAA-HSBC CSR Index • Won Hong Kong Outstanding Corporate Citizenship Award • Received the coveted Green Label

2012 • Achieved ISO 50001 Energy Management System accreditation • Launched 3C employee engagement framework • Introduced own Community Award to recognize volunteering • Became a “10 Years Consecutive Caring Company” • Won Social Capital Builders Award from government-sponsored Community

Investment and Inclusion Fund • Received Hong Kong Authorized Economic Operator (General Facilitation) - Tier 2

certification

2013 • Achieved ISO 22301 Business Continuity Management Systems accreditation • Became a qualified service provider with authorization to conduct carbon audits

by the CarbonSmart Program • Adopted a 24/7 cloud-based Energy Management System with instant alert • Served as a pilot company at Green Office Awards Labelling Scheme • Won Gold Label from the WWF Low-carbon Office Operation Program • Received Carbon“Less” 31% Certificate

2014 • Strengthened linkage across a wider range of Green solutions • Opened the first drop-off point for used printers at our warehouse • Launched Volunteering Leave to support volunteering • Honored with Elite Cultural Change Award and Elite Employee Engagement Award • Received Gold Award from Web Accessibility Recognition Scheme

2015 • Became the 1st company in Hong Kong to be certified with ISO14001:2015 Environmental Management Systems

• Conducted environmental assessments and practiced sustainable procurement on a larger scale during the relocation of our head office

• Registered as the Companion of HKQAA Hong Kong Registration - Recycling Services

2016 • Launched iESG management tool for ESG data capturing and reporting • Opened another drop-off point for used printers at head office • Became Hong Kong Green Organisation by the Environmental Campaign

Committee • Won Sustainable Business Award 2016 from World Green Organisation • Received CarbonCare® ESG Label for our Sustainability Report

2017

• Launched iESG 2.0 management tool (GRI version) • Verified in compliance with ISO 20400 Sustainable Procurement – Guidance • Became a “15 Years Consecutive Caring Company” • Won Hong Kong Sustainability Award 2016/17 from Hong Kong Management

Association • Became Sustainable Consumption Enterprise and Sustainable Product Supplier

by Business Environment Council

2011 • Enhanced Printing Policy with full use of recycled or FSC™ paper • Began utilizing energy efficient lighting equipment • Launched Volunteer Signage and Pins to encourage volunteering • Launched Green Tour to introduce recycling initiative • Won Gold Sectoral Award at the Hong Kong Awards for Environmental Excellence • Won Gold Award from Social Welfare Department’s Volunteer Movement • Won Family-Friendly Employers Award from the Family Council • Received Hong Kong Authorized Economic Operator (General Facilitation) - Tier 1

certification

04

Corporate Governance


Corporate GovernanceBuilding a Robust Management Foundation for Compliance and Risk Management

Chapter 4

18

Corporate governance broadly refers to “the mechanisms, processes and relations to which corporations are controlled and directed”*. At Fuji Xerox (Hong Kong), robust management systems, processes and mechanisms have been adopted to govern our business operations and give a greater voice to our stakeholders.

* Source: Wikipedia

Material Issues Addressed by Fuji Xerox (Hong Kong)

・Business Continuity・Customer Satisfaction・Decent Work and Economic Growth・Governance and Risk Management・Industry, Innovation and Infrastructure・Information Security

・Climate Action and Carbon Management・Eco Product・Environmental Education・Energy Management・Responsible Consumption and Production・Sustainable Procurement・Supply Chain Management・Waste Management

・Employee Satisfaction・Gender Equality・Manpower Development ・Occupational Health and Safety・Peace, Justice and Strong Institutions・Product Safety ・Reduced Inequalities ・Volunteering

Economic

Environmental

Social

Remarks: The material matters identified in the “High-High” area of the Materiality Matrix Diagram covered in this chapter are highlighted in the above table.

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overnance


Corporate GovernanceBuilding a Robust Management Foundation for Compliance and Risk Management

Chapter 4

19

Governance and OrganizationStrengthening corporate governance and enforcing transparency is fundamental to any successful organization.

Fuji Xerox (Hong Kong) has been operating in Hong Kong for 53 years. Our continuing success is due to our consistently high customer satisfaction and loyalty levels. By adopting an effective PDCA-oriented management approach to sustainable business growth, we have created continuous improvements and gained the respect of our stakeholders.

In accordance with operational guidelines, the Managing Director Office – chaired by Fuji Xerox (Hong Kong)’s Managing Director and supported by our Senior Management Committee (SMC) – develops strategic plans on a three-year medium range timeline which links operational planning, execution, feedback and improvements to create sustainable and repeatable business success for Fuji Xerox (Hong Kong).

These operating plans and objectives are shared via annual meetings to ensure that all employees understand the latest operational direction and are able to change to meet new challenges. At the same time, to ensure an agile operation responsive to dynamic market situations, the Managing Director and the SMC hold monthly meetings to discuss topics including customer opinions, policy deployment, business performance, key marketing campaigns, social responsibility, staff engagement and others. Comprehensive guidelines, policies and procedures have been formulated by the SMC as the Management Review Committee in support of the company governance framework such as ISO 14001 Environmental Management System, ISO 50001 Energy Management System, ISO 27001 Information Security Management System and ISO 22301 Business Continuity Management Systems, and is therefore inclined to periodically reviews to ensure the overall effectiveness of our system as well as facilitate amendments if required. At the department level, managers and staff will hold regular meetings on business performance progress, operational quality, environmental health and safety, human- and community-related matters.

China

Indonesia

Australia New Zealand

ThailandMyanmar

Laos

Malaysia

Singapore

Japan

South KoreaTaiwan

Cambodia

The PhilippinesVietnam

Hong Kong

FUJIFILM HoldingsCorporation

Fuji Xerox Co., Ltd.

Fuji Xerox China & East Asia Operations

Fuji Xerox (Hong Kong) Limited

75% 25%

Xerox Limited


Top Comm

itment

20

Mechanism

Planning (A) Basic Ideas and

Approaches

Monitoring (B) Setting Goals and Identifying

Results

Learning (C)

Evaluations and Areas for Improvement

Systems OperationsDirection and Driving Force Results

Activity Results [400]

Strategy Planning and Deployment [60]

Improving Employee and Organizational Capabilities [100]

Customer Value Creation Processes

[120]

Leadership of Senior Leaders [120]

Social Responsibility of Management [50]

Information Management [50]

Understanding and Responding to Customer and Market Needs [100]

Japan Quality Program A Plan-Do-Check-Act cycle for Higher Customer Values

Risk Management and Legal ComplianceFuji Xerox (Hong Kong) views sustainability and risk management as top priorities for developing its business. To ensure that all these concepts are incorporated into every aspect of our operations, the senior management team regularly holds meetings to identify, discuss and make decisions on high-priority risk management items.

As we strive to create continual process enhancements under the PDCA cycle, Fuji Xerox (Hong Kong) has embedded the Japan Quality Program into its management framework. The program consists of eight criteria, each of which is given a different weighted score in below diagram, with the total score being 1,000 points.

This not only helps us better assess our current situation from an organizational perspective, but also clarifies the effectiveness of our management objectives and identifies key areas for sustainable development. Currently, the Japan Quality Program functions with the Japanese Sarbanes Oxley (J-SOX) model, which has introduced strict rules for the internal control of financial reporting to protect investors by improving the accuracy and reliability of corporate disclosures, as well as other standards and guidelines which allow Fuji Xerox (Hong Kong) to excel in risk management.

Our general legal and financial policies lay down the ways in which compliance and internal controls should be maintained. We conduct self-assessments, external management systems audits and rigorously benchmark legal compliance to maintain the integrity of our general business processes annually. We also conduct an annual self-evaluation of our code of conduct for all employees to ensure that we achieve an even higher standard of ethics in accordance with our parent company, Fuji Xerox. This code covers respect for basic human rights as well as open, fair and clear corporate activities. Specific areas include, but are not limited to, human rights, the 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 the rejection of antisocial forces. In terms of financial control, we have deployed corresponding financial policies and guidelines with our professional teams to monitor the implementation status with regular review by SMC. On top of internal audit, we have appointed third party verifiers for conducting independent financial audit annually.


Corporate Governance

21

PDCA Based Japan Quality Program

A Sustainable and Risk Managed Operation

Environmental

Social Governance

5S FSCTM CoC ISO 14001ISO 14064ISO 20400ISO 50001

ISO 26000 AEO Internal Audit ISO 22301ISO 27001J-SOXPCI DSS

Managing Environmental Risks In 2015, we became the first company in Hong Kong to upgrade our ISO 14001 Environmental Management System. In addition to the original framework, which helps organizations set up an effective environmental management system that complies with environmental regulations; the newest edition requires a combination of approaches, as interrelated processes that function as a coherent system and thus delivering more consistent and predictable results can through a more effective and efficient combination. The new standard also emphasizes stronger management including risk-based thinking which places prevention at the heart of the management system and the PDCA cycle at all organizational levels.

Managing Business Risks In 2013, Fuji Xerox (Hong Kong) attained the ISO 22301 Business Continuity Management Systems certification. This certification specifies requirements to plan, establish, implement, operate, monitor, review, maintain and continually improve a documented management system to protect against, reduce the likelihood of occurrence, prepare for, respond to, and recover from disruptive incidents whenever they arise. The system helps us to minimize the risk to personnel, protect property and the company reputation, as well as swiftly implement all necessary recovery plans.

Within last year, we reassessed the required elements and added significant subjects in excess of those required by Fuji Xerox (Hong Kong)’s certified ISO systems and localized policies and procedures. We did this in order to extend the comprehensiveness of the coverage and create a high standard of ESG compliance aspects in spite of the fact that we are not a listed company in Hong Kong.

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Creating and Utilizing Knowledge for Innovative Communication Workstyles

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Chapter 5

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Sustainability Report 2016 Sustainability Report 2017Sustainability Report 2016 Sustainability Report 2017

Interesting

22

Managing Supply Chain Risks

In terms of the supply chain, Fuji Xerox (Hong Kong) participated in the Hong Kong Authorized Economic Operator scheme in 2010 under its pilot scheme and became the seventh company certified in Hong Kong. Aiming to secure and facilitate global trade, the system is in compliance with the requirements stipulated under the World Customs Organization SAFE Framework of Standards to Secure and Facilitate Global Trade and was developed with reference to ISO 9001 Quality Management System, ISO 27001 Information Security Management System and ISO 28001 Security Management System for Supply Chains. We successfully completed a tier-two compliance level, which entails all 12 processes in both general criteria (i.e. customs compliance, maintenance of commercial records, and financial soundness) and security & safety criteria (i.e. premises security and access control, personnel security, cargo security, conveyance security, business partner security, security education and training, information exchange, access and confidentiality, crisis management and incident recovery, and measurement, analysis and improvement).

Other than fulfilling the requirements of AEO, we further oversee our supply chain through the adopting of sustainable procurement in our operations. This year, the International Organization for Standardization launched the ISO 20400:2017 Sustainable Procurement - Guidance for organizations on integrating sustainability within procurement as detailed in ISO 26000 Guidance on Social Responsibility. Fuji Xerox (Hong Kong) took the initiative in verifying our performance against this guidance and streamlined the process of identifying and rectifying areas for improvement through a third-party assurance organization.

Through integrated systems of rules, practices and processes, Fuji Xerox (Hong Kong) has consistently achieved a high level of governance for compliance and risk management, bringing value to our stakeholders and helping to create a sustainable future for all of us.

Managing Information Security Risks

Fuji Xerox (Hong Kong) further manages our information security-related risks through the ISO 27001 Information Security Management System. This system utilizes a risk management approach to the security of sensitive company information, such as financial information, intellectual property, employee details and information entrusted to us by third parties. Our head office and Document Technology Center have been certified to ISO 27001:2013 standard in 2016 and we are planning to extend the certification scope to another site this year. This accreditation demonstrates our commitment to treasuring the intellectual property and private information of our customers.

Within the coming years, we have observed an increasing trend of cyber-attack targeting the banking, financial, and infrastructure industry. Understanding that security is the foundation to protect our partners and customers, we have developed our security framework in compliance with the Payment Card Industry Data Security Standard (PCI DSS). Complying with over 250 stringent controls regarding to management approaches and technical implementation, PCI DSS certified corporates protect the confidentiality and integrity of the customer data by preventing any leakage especially the credit card holder data. We are pleased to announce that, we achieved the PCI DSS Version 3.2 Service Providers Level 1, the highest certification standard in April 2017.

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Creating and Utilizing Knowledge for Innovative Communication Workstyles

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Chapter 5

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With the diversifying workstyles and ever-evolving business challenges, we are committed to providing the highest standards of solutions and services to assist our customers in achieving business efficiency, productivity, and sustainability.





Economic

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Social


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Accelerating the Growth of IoT - Empowering Enterprises with Increased Market Competitiveness We recognize that the Internet of Things (IoT) era is a leading trend of the information technology sector. International Data Corporation’s recent report shows that over 50%of enterprises surveyed consider IoT as the main strategy to enhance their competitiveness. In view of this, we strive to empower enterprises in embracing IoT and transforming challenges into business growth with a series of new products, customized cloud services and solutions in this year.

Smart Device 2.0 – Solving ICT Challenges

In November 2016, we launched a new flagship product, the Smart Device 2.0, which embodied three key components comprising IoT: cloud application, big data analytics and integrated business workflow, empowering enterprises with increased market competitiveness.

Acknowledging the information technology-related challenges faced by businesses, we provide the Smart Device 2.0 which is analytics enabled, cloud enabled and business process enabled – all without the need for server support. At the core of Smart Device 2.0 is an updated series of Fuji Xerox (Hong Kong)’s proprietary Xpress solutions, designed to increase business operational effectiveness, mobility and stability for clients.

1. Xpress Gateway - With Xpress Gateway, accessing files from multiple cloud storage spaces such as Box, One Drive, Dropbox, Evernote and Google Drive within a single interface. Save time and effort by using single sign-on to scan or print directly from the cloud.

2. Xpress Flow - Smart Device 2.0 features a simple, intuitive and easy-to-manage business process to facilitate a variety of workflows such as expense claims, purchase orders and even employee performance appraisals. From e-forms, workflow design, approval permissions to mobile device features, the entire process is highly flexible and customizable. Users only need to scan supporting documents to initiate the system’s automatic workflow process. We have incorporated a host of business apps specially designed to automate workflows, such as Xpress E-filing 2.0, Xpress Report and Xpress Follow-U-Print 2.0. With a user-friendly workflow, users will be able to manage documents on the apps anytime and anywhere.

3. Xpress Support - In the event of technical issues, users can be efficiently connected to an engineer simply through the mobile app. Users can place service calls directly from Smart Device, scan the QR Code displayed on the device to track the service’s progress, rate the engineer and provide feedback, elevating the standard of our customer service to a new height.

Smart Device 2.0 also offers a blend of cloud solutions and one-stop services, which poses as a platform to allow businesses to achieve smoother workflow as well as higher operational efficiency and productivity by 25%. Empowered by Smart Work Gateway and cloud network, Smart Device 2.0 and user’s personal mobile device are interconnected. Office employees are no longer bounded by geographical restrictions and can stay connected to their office all the time.

On top of enhancing efficiency, Smart Device 2.0 fully illustrates the concept of “RealGreen” and complies with the International ENERGY STAR® Program standards. The new Super EA-Eco Toner enables fusing temperatures of 10 to 15°C, lower than conventional toners and maintains superior print quality even when printing large quantities. Other green features include Energy-Saving Controller that reduces power consumption and CO2 emissions, and noise reduction design that creates a comfortable quietness suitable for the office.

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04Sustainability Report 2016 Sustainability Report 2017

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Securing Confidential Information with High Level of Cloud Security

Fuji Xerox (Hong Kong)’s Global Services Business recorded a 30% business growth last year, mainly from the insurance and banking industries, which is a sign of our competitive edge on outsourcing and consultancy services. Through our cloud-enabled print management outsourcing service, we understood from enterprise clients their challenges around cloud security and therefore actively offer Cloud Offering Risk Assessment (CORA) framework for cloud vendors. This framework integrates various stringent international standards, including Federal Risk and Authorization Management Program (FedRAMP), Cloud Security Alliance (CSA) and more. Together with the use of Lean Six Sigma approach and other technologies, the framework standardizes cloud security management and monitoring, so enterprises can further understand cloud vendors and users’ practice to achieve a high level of security and prevent confidential data breach.

As an enabler of industry development, we will continue to utilize innovative technologies and IoT’s advantages to develop comprehensive cloud services and solutions, and lead the industry towards the next significant milestone.

Supporting Corporates to Embrace New ChallengesIn today’s competitive business landscape, conglomerates and small businesses are inclined to maximize efficiency. Fuji Xerox (Hong Kong) strives to provide innovative solutions and services to aid companies in addressing information technology challenges in a comprehensive manner.

The Fuji Xerox (Hong Kong) Academy

Recognizing the ICT challenges corporates are facing day-to-day, Fuji Xerox has launched various kind of initiatives to equip corporates with key IT knowledge and skills. Established in 2015, the Fuji Xerox (Hong Kong) Academy aims to provide wide ranges of one-stop ICT training solutions for all industries. By partnering with different international accreditation bodies including Project Management Institute (PMI), AXELOS, Pearson VUE and being the only CompTIA Authorized Training Partner in Hong Kong, we provide

various interactive workshops and tailored classes with emphasis on business applications such as PMP, Cloud+, Network+ and Security+ etc. to enhance corporates’ competencies on Security, Networking, IT Governance and Service Management. Till June 2017, we have issued over 800 professional qualifications certificates for both internal and external participants.

▲ Apart from training courses, we organize complimentary seminars and workshops for corporates to explore their needs. On 2 March 2017, we organized “Be a New Gen IT Project Manager” seminar that aimed at discussing the project management challenges in contemporary contest and sharing the industry best practice accompanied with practical case studies.

Smart Business Conference and Seminars

Apart from offering ICT-related training courses, Fuji Xerox (Hong Kong) organizes conferences and seminars covering different aspects to further enhance the competitive edge of corporates.

On 12 July 2016, we organized the Smart Business Conference @ Smart City at Hong Kong Convention and Exhibition Center to introduce the development of the smart city to the industry, ensuring that corporates are keeping up with the times and embracing the digital age.

▲ Visitors are inspired by the innovative technology displayed in our exhibition zones.

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We brought together more than 300 participants with 12 industry leaders in the fields of the innovation and technology, such as Hong Kong Science and Technology Parks Corporation and Hong Kong Exchanges and Clearing Limited to share insights on current Smart City trends, Environmental, Social and Governance (ESG), Cyber Security, Digital Marketing knowledge on the hot topic of digital marketing, encouraging corporates to rethink the connection between social media and people and prompting the establishment of right marketing strategies with various digital marketing solutions.

On 19 August 2016, we presented in the “Seminar on Strategic Human Resource Management at Digital Age” where human resources experts were invited to share their insights into the current labor market and their valuable first-hand experience. Through this seminar, Fuji Xerox (Hong Kong) shared a wide range of Human Resources Management (HRM) systems and communication solutions to demonstrate how businesses could maximize HRM efficiency using big data and identify improvement opportunities so as to differentiate themselves in the market. New communication modes also mean that businesses can use smart devices to communicate with young employees and disseminate internal company news and updates for higher operational efficiency.

▲ The participants are enlightened by the HRM strategy shared by Ms. Eliza Ng (right), Director, Human Resources of Fuji Xerox (Hong Kong) Limited.

Supporting Small and Medium-sized Enterprises to Enhance CompetitivenessCurrently, there are about 320,000 small and medium enterprises (SMEs) in Hong Kong, constituting to over 98% of Hong Kong’s business establishments and employing around 46% of our workforce in the private

sector. To support the growth of SMEs and in turn the development of our economy, we have launched various initiatives to enhance their competitiveness.

Technology Voucher Program Consultation Service

In 2016, Innovation and Technology Commission launched an HK$500 million Technology Voucher Program (TVP) to help local SMEs make better use of technological services and solutions. TVP supports projects in the form of technological services and solutions could improve productivity, or upgrade and transform the business processes of the applicant enterprise.

To complement this program, Fuji Xerox (Hong Kong) provides consultation service to the Technology Voucher Program. Through encouraging the use of funding, we aim to accelerate SMEs’ upgrade and transformation, increase their competitive edge and help facilitate their entry into the IoT era.

Fuji Xerox (Hong Kong) Mobile Truck and seminars offer Support to SMEs

With the aim of helping SMEs further, the mobile truck of Fuji Xerox (Hong Kong) visited different commercial and industrial districts throughout the city in January 2017, demonstrating the latest Smart Device 2.0 and powerful SME solutions.

Members of the public were invited to experience the Smart Device and witness they could enhance backup efficiency at a surprisingly affordable cost. SME representatives also experienced a wide array of office optimization solutions with the help of our Smart Device – office multi-function devices and cloud document management system, gaining a better understanding of our one-stop IT management and support services.

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On 8 March 2017, Fuji Xerox (Hong Kong) and the Hong Kong General Chamber of Small and Medium Business jointly held the “How to Implement Operational Strategy with the Help of Technology Voucher” seminar. We invited experts to discuss the latest IT trends, share their entrepreneurial experience and explore various solutions for the TVP, including electronic document management, energy monitoring, intelligent office lighting control, human resources management, customers and membership management. With the help of information technology, SMEs could strengthen their competitiveness and stand out with streamlined operation process and higher efficiency.

Innovative Solutions to Embrace SustainabilityIt is our commitment to grow alongside with our customers through developing innovative solutions. We believe these solutions and services can generate new values while serving customers ahead of their needs.

Production Remote Services Boosting Productivity

A renowned digital printing company, Ma King Kee Diazo Printing & Co Ltd, was facing a challenge of providing stable services, in dire need of a comprehensive system to support their corporation. With traditional methods, once the machines broke down, Ma King Kee could only rely on the conventional telephone-based support for on-site repair services, which would stop production and disrupt the overall operation. Understanding “time is money”, Fuji Xerox (Hong Kong) provided the 24/7 Production Remote Services (PRS) for digital printing, with technical specialists providing timely support around the clock. The system connects customers’ devices online to our support center to monitor and diagnose data all year around. If problems are detected, our engineers can remotely solve the issues and arrange the service team to carry out on-site repair support immediately. By shortening the downtime, the machines’ performance can be fully optimized.

Mr. Alan Wong, Senior Director, Client Solutions Business (9th from left) and Mr. Jon Chung, Director, Marketing (8th from left) of Fuji Xerox (Hong Kong) Limited hold the kickoff ceremony for the mobile truck event.

▲

Near 100 participants gain a better understanding of the TVP from our sharing.

▲

vv

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PRS offers real-time updates, constant updates and improvements of engineering tools, optimizing supporting services and stabilizing the device. Prognostic analysis also allows us to fully understand customers’ printing environment and improve their production efficiency. With the assistance of PRS, Ma King Kee can now focused on developing its business.

Optimizing Efficiency with Advanced Electronic Document Management System

Fuji Xerox (Hong Kong) provides Electronic Document Management Solution (EDMS), making business process management and document processing easier than ever. This web-based open architecture platform allows users to manage documents through multi-function devices, and to create and save documents securely anytime, anywhere. The documents will be automatically archived and are accessible with one click.

Wo Lee Steel Co., Ltd., a supplier of steel products for the manufacturing and construction industries, faces a common challenge in the industry, i.e. how to handle a huge volume of documents efficiently. Wo Lee Steel has to store and manage various types of documents, and retrieve them quickly and accurately so as to meet the tight work schedules.

With the adoption of Fuji Xerox (Hong Kong)’s EDMS, the team’s efficiency has been enhanced significantly with simplified document flow. The same-day response service pledge also guarantees the availability of the system and ensures no disruption to the daily operation. After the deployment, every user at Wo Lee Steel is now satisfied with the accessible, fast and highly secure EDMS with accurate traceability, and is impressed by the comprehensive after-sales service.

“ This supporting solution avoids costly downtime and provides preventive maintenance when customers might not even notice it, which truly ensure customers to enjoy perfect peace of mind. As the device runs 24/7, printing performance is stable in order to enhance the production efficiency. ”

Mr. William Ho Manager

Ma King Kee Diazo Printing & Co Ltd

“ Fuji Xerox (Hong Kong) has been our reliable and trustworthy ICT partner for over 25 years, ever since the early years of providing photocopiers, to the current high-end corporate document management systems. They work with us patiently to find out our business needs, and their tailor-made EDMS enables us to manage documents much more efficiently.

Most importantly, their products and after-sales service are able to cope with our growth. We hope to further enhance our partnership and optimize our business development and operational efficiency. ”

Mr. Matthew Lai CEO

Wo Lee Steel Co., Ltd.

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Achieving Customer First and Safety FirstFuji Xerox (Hong Kong) treasures customers’ opinion and places a high priority on providing excellent customer service, combining high quality and safe products to achieve the Number One customer satisfaction ranking in our industry. With such, we pay thorough consideration to providing safe-designed products with the view for Safety First. Hereby, we will strive to sustain and gain higher reliance from customers.

Provision of High Quality and Safe Products

Fuji Xerox is doing its best to provide safe and high-quality products. We have established the Basic Policies on Quality Assurance and the Fuji Xerox Product Safety Key Principles to ensure that all products developed are safe to use. Throughout the lifecycles of our products, we only utilize materials that comply with our “Green Procurement Standards” and conduct quality assurance activities in line with international standards and by adopting advanced technologies, we have been successful in further eliminating product safety-related issues.

The Fuji Xerox products that successfully passed these stringent quality assurance assessments are delivered to various operating companies in Asia-Pacific. In Fuji Xerox (Hong Kong), we conduct further tight control processes upon receiving information about these products to ensure the products are safe and in high quality. We also provide on-the-job training and education regarding corporate regulatory compliance procedures, preventive measures against product safety incidents and continual product safety improvements for our employees. We strive to promote the culture of product safety among our colleagues and in turn raise customers’ awareness of safety issues.

Creating Values based on Customer Satisfaction

Fuji Xerox (Hong Kong) views customer satisfaction as the cornerstone of all our operation activities. Understanding customers’ needs and expectations are therefore crucial for us to provide suitable products, solutions and services and to building a long-term customer relationship.

To ensure our products and services are always satisfactory to our customers’ ever increasing demands, we have long been working towards a unique “3R+V” Customer First Strategy. In moving forward, we insist that all employees maintain a high-level of “Reliability” and “Responsiveness” and work on establishing “Relationships” when creating “Value” for customers. From pre-sales consultation to project implementation, the entire business execution process we run under our defined Service Pledge focuses on delivering outstanding satisfaction levels that ensures our customers will be able to accelerate their business development.

“Green” Procurement Standard covers the latest requirements of European Union’s Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) Regulation, the Restriction of Hazardous Substances (RoHS) Directive and other international standards that regulates the chemical substances contained in Fuji Xerox’s products and used in manufacturing process.

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Keeping our Service Pledge in mind, we are grateful to have remained in the first place in terms of customer loyalty* in the industry for seven consecutive years.

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

• Availability of 7x24 iSupport Service reached at 99.9%

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

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

Remarks: * Information from Annual Competitive Benchmarking Survey chartered by Market Probe (2010-2014), TNS (2015) and B2B (2016)

** Customer offices along MTR city routes

*** Offer full confidence to our customer with most of our products

To capture customer experience, Fuji Xerox (Hong Kong) adopts various interactions, surveys, systems and processes. For years, we have implemented the Initial Customer Care Program to which our dedicated client consultant conducts follow-up calls or undertakes on-site service visits to customers on days 1, 7, 30, 60 and 90, continuing on a quarterly basis after installation. The customer’s voices are well managed under our unique Customer Feedback System to ensure instant responses until closure through follow up actions, analysis of customer feedback and anticipation of future customer requirements.

Customer compliments are another valuable sources of customer’s voice allowing us to strengthen and make further improvements. In FY2016, we were delighted to have received over 12,500 compliments from our customers. Not only were these compliments a great motivation towards achieving service excellence, these compliments also helped to conserve the environment directly. Under our “Visible Green Initiatives” program, Fuji Xerox (Hong Kong) purchases no less than 50 kg of carbon offsets for every compliment received in support of a hydro project which promotes water conservation. In total, Fuji Xerox (Hong Kong) has purchased 865 tonnes of carbon offsets by making a donations close to HK$70,000 under this program within FY2016 alone. We will continue this initiative in FY2017, as we strive to being a carbon neutral operation.

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Addressing environmental concerns is a pressing issue for the global community to act. As a corporate citizen, Fuji Xerox (Hong Kong) is committed to actualizing a sustainable society through innovating sustainability initiatives to create environmental value for our stakeholders while enhance business value.





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Riding on the core technology of smart devices of Fuji Xerox (Hong Kong), users of iESG can scan their utility bills via our smart devices to capture the data automatically without any manual input into the system. Users not only save their time from inputting data manually but also avoid human errors.

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Innovating “Sustainability” – from Internal Business Integration to External Value CreationSustainability has been a prominent global focus recently with increasing stakeholders’ awareness on the corporate performance on social responsibility. We firmly believe that “sustainability” is not an addition to costs, but an innovation driver to sustaining our competitive advantages. Following the launch of Environment, Social and Governance (ESG) reporting requirements by the Stock Exchange of Hong Kong Limited (SEHK), listed companies struggle with preparing and disclosing relevant ESG information to their stakeholders in order to enhance transparency. Inspired from our years of hands-on experience in sustainability reporting, we identified that the market lacked a tool for companies to collect ESG data systematically. Therefore, we formed a cross-departmental team with sustainability, product development and programming professionals, to develop a new powerful ICT software using our innovation and technologies to streamline and standardize the reporting process.

With concerted efforts, Fuji Xerox (Hong Kong) successfully launched the new Intelligent Environmental, Social and Governance (iESG) management tool for sustainability reporting in September 2016. iESG can consolidate all environmental and social data in a single platform. It helps to ease the burden of in-house sustainability professionals meeting strenuous internal and external reporting requirements.

What does the “i” stand for in iESG?

The “I” stands for “Internet”, “Inspiration” and “Intelligence”.

i The tool is an “internet”-based solution, which enables users from multi-locations to access it freely online.

i It “inspires” users by enabling them to visualize trends and perform data analysis in making informed decisions.

i It is “intelligent” as it helps clients transform raw data into meaningful reporting output.

It automatically aggregates ESG data from utility bills, smart meters, and document management system. It enables integration with other solutions of Fuji Xerox (Hong Kong) such as the real-time energy tracking system and paper management system. It increases the operational efficiency significantly by reducing manual inputs.

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Two external awards: PCM IT Solution Excellence and CarbonCare® ESG Label.

▲ Three internal awards: Fuji Xerox (Hong Kong), Asia Pacific and All-Fuji Xerox “Genko-Itchi”.

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iESG helps companies in the following areas of ESG reporting:

• Data Governance

iESG enhances data accuracy via a formal approval mechanism and keeps an audit trail for internal and external data assurance. System restricts users’ activities by granting access to only relevant data. These activities will be recorded in the system to enhance and maintain quality of data. Furthermore, it serves as a central depository for ESG-related source documents for review and audit.

• Data Consolidation

iESG aggregates all ESG raw data entries automatically, as well as re-engineering the entire data collection workflow across departments and regions. As a cloud-based platform, iESG allows users to access data anywhere and anytime with their smart devices. With system integration, data could be synchronized to minimize human input errors. To ensure that the platform is implemented effectively, we provide continuous professional consultancy and support services to our customers.

• Data Conversion

iESG has a built-in carbon emission and air emission factors library to convert all raw data automatically, such as electricity consumption and petrol consumption, to carbon and air emission figures. For companies with multi-locations, the emission factor library is extremely useful as the calculations is usually a headache issue.

Upon the launch of iESG, the tool has gone through a rigorous and comprehensive verification process conducted by an independent certification body to assure that it can fulfill all disclosed requirements from the SEHK ESG Guide. Furthermore, the tool has won an external award, the PCM IT Solution Excellence soon after it was introduced to the market. With full deployment of iESG in preparing our Sustainability Report, we have been accredited with CarbonCare® ESG Label that recognized our high standard of reporting and commitment in ESG. Internally, the development of the tool has gone through our “Genko-Itchi” improvement cycle by using our unique eight-step problem solving approach. We are pleased to see the project has won three awards in a row: Fuji Xerox (Hong Kong)’s Best “Genko-Itchi” Team, the Silver Award in Asia Pacific Operation/Greater China Operation “Genko-Itchi” Forum and the Excellent Award in All-Fuji Xerox “Genko-Itchi” Forum.

Cloud Offering Risk Assessment (CORA) is a Fuji Xerox (Hong Kong) designed company-wide program that provides a standardized approach to security assessment and ensures a system of continuous monitoring is implemented for cloud products and services. Our iESG has been evaluated under CORA standards and is guaranteed to maintain a high level of capacity, reliability and quality.

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This enhances the creditability of our solution. Other than SEHK’s ESG reporting requirements, some companies are required to fulfill various non-financial reporting requirements and surveys. iESG can be customized based on clients’ diverse ESG disclosure needs. With just a few clicks, users are able to generate different types of reports that fulfill a variety of reporting requirements.

Going forward, we will continue to upgrade the iESG management tool with reference to customer feedbacks. We are confident that the performance, features and functions of the tool can go far beyond that of the initial solution designed and will be more user-friendly, adaptable and powerful. Understanding that the operations of many listed companies are not only limited to Hong Kong, we launched iESG 2.0, an international version, in September 2017. It has brand-new features suited to various companies and fulfills the reporting requirements of international non-financial reporting guidelines, including the Global Reporting Initiative (GRI) Sustainability Reporting Standards.

In order to promote values and impacts of sustainability, we organized a series of events and activities in FY2017. For instance, Fuji Xerox (Hong Kong) hosted the launch event for the world’s first global standards for sustainability reporting, GRI Standards, in Hong Kong. The event created an interactive platform for companies to share best practices in a fostering sustainable business. To strengthen our collaboration with GRI, Fuji Xerox Operations in the Asia-Pacific has jointly become the first of the GRI GOLD Community members in the industry. Together with other Fuji Xerox (Hong Kong)’s events, we have successfully reached over 600 participants and drawn media attention to sustainability matters.

Officiating guest of the GRI launch event, Mr. Wong Kam-sing, GBS, JP, Secretary for the Environment, Hong Kong Special Administrative Region Government delivered a keynote speech to highlight the importance of the new GRI Standards to Hong Kong in November 2016.

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iESG Customer Experience Case Sharing

One of our customers from the sea freight forwarding business has over 15 operations in mainland China with a fleet of over 20 vessels. Aiming to simplify the ESG reporting process and to better utilize its resources, the function of iESG can be employed to monitor the mileage travelled and fuel efficiency for each vessel. The built-in dashboard can definitely help the customer visualize its overall performance for easy sustainability performance management. Furthermore, we can provide professional advice on improving environmental performance by comparing its paper usage with the industry’s norms. Through our recommendations, we are pleased to record that the customer managed to reduce its paper consumption by 20% i.e. saving 350 reams of paper and 420 kg of carbon emission annually.

On 7 July 2017, the “Genko-Itchi” team of Fuji Xerox (Hong Kong) won the Excellent Award from All-Fuji Xerox Genko-Itchi Forum in Tokyo.

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Ms. Debby Chan, Director of Strategic Enterprise Business (2nd from right) of Fuji Xerox (Hong Kong) Limited, shares our ESG reporting experiences by using technologies with the members of The Hong Kong Institute of Chartered Secretaries.

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Governing Sustainability Performance with International StandardsAt Fuji Xerox (Hong Kong), we have continuously enhanced our sustainability performance through benchmarking with our peers and against international standards. Since the establishment of Environmental Protection Policy in 1985, we have actively sought ways to improve through aspects of environmental, carbon and energy management.

Environmental Management

Carbon Management

Energy Management

ISO 14001Environmental Management System(EMS)

Becomes the 1st company in Hong Kong to be certified with the ISO14001:2015 EMS and accredited by two accreditation bodies – the Hong Kong Accreditation Service and the United Kingdom Accreditation Service.

ISO 20400 SustainableProcurement - Guidance

This year, we have verified our practices against the ISO 20400 guidance which demonstrated that we have successfully integrated sustainability into our procurement processes.

ISO 50001 EnergyManagement System(EnMS)

We became the 1st local office-based organization to obtain the ISO 50001 EnMS in 2012. The ISO 50001 standard is a globally accepted framework for managing energy usage.

Carbon NeutralOperations

Since FY2014, we have achieved carbon neutral operations through investing in carbon offsets in hydro projects in the Asia-Pacific region.

FSC™ Chain ofCustody

Our stringent management of the paper product value chain has been rewarded with the prestigious FSCTM Chain of Custody Certification since 2007.

Paper UsageManagement

Adopting our solution, ApeosWare My Document Portal PRO, we have successfully reduced the paper usage and hence drastically reduced carbon emission.

Annual Energy AuditWe conduct annual energy audit in identifying areas of improvement for enhancing energy efficiency in our head office.

5S

Originated from Japan, the 5S (Seiri, Seiton, Seiso, Seiketsu, and Shitsuke) practices including the principles of Sort, Straighten, Shine, Standardize and Sustain are used to improve a company’s quality and productivity. We have been successfully adopting such practices in our local warehouse operations since 2002.



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Sustainable Procurement

At Fuji Xerox (Hong Kong), we treasure the nature and the environment, believing that all resources are shared global assets that should be protected in perpetuity. To maximize resources usage efficiency, we have actively engaged suppliers in sharing our sustainable procurement concept whilst requesting their dedication and efforts in reducing environmental impacts throughout the holistic supply chain.

Under this concept, we incorporated sustainability into every stage throughout the supply chain, beginning from initial parts procurement, manufacturing process, customer usage till products’ end-of-life disposal.

To ensure suppliers fulfill our requirements, Fuji Xerox conducts regular CSR assessments on our suppliers, which includes self-checks by suppliers, basic on-site checks by our in-house auditing professionals and detailed on-site analysis by expert teams. With sharing our own environmental management approach and constant analysis of CSR performance of our suppliers, we have successfully cultivated a mindset with our suppliers of environmental consciousness.

Following the practices of our parent company, Fuji Xerox (Hong Kong) monitors our suppliers’ sustainability performance in compliance with the requirements in the ISO 14001 EMS and other management systems through conducting surveys before engaging them. We review their performance biennially to ensure these suppliers can fulfill our requirements consistently.

Beyond managing our suppliers’ performance, we have incorporated sustainable procurement within our operations. This year, the International Organization for Standardization has launched the ISO 20400:2017 Sustainable Procurement – Guidance which provides guidelines for organizations on integrating sustainability within procurement as described in the ISO 26000:2010 Guidance on Social Responsibility. Though this is not a certification, Fuji Xerox (Hong Kong) chose to act first by verifying its performance against this guidance to identify areas for improvement. In the verification conducted by Hong Kong Quality Assurance Agency (HKQAA) in July 2017, we received excellent comments on our sustainable procurement practices.

Contributing to “Zero” Environmental ImpactsCommitted to building sustainable solutions into every step of our value chain, Fuji Xerox (Hong Kong) strives to minimize its environmental footprint with our advanced technologies and dedicated colleagues.

Building a “Zero” Carbon Operation

Given the urgency of global sustainability issues, it is our responsibility to contribute through reducing our environmental impacts in business operations. With such, we grasp all opportunities in order to minimize our carbon emission through the adoption of various carbon reduction initiatives. In FY2016 alone, we have been successful in reducing 4.5% of carbon emissions in our operations.

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Apart from minimizing carbon emission, we have taken a step forward in achieving carbon neutral operations through purchasing carbon offsets from hydro projects in the Asia-Pacific region again. The project is made up of 95 small individual power plants which utilizes the flow of rivers to generate clean electricity. This not only results in a significant cut in greenhouse gases emissions in comparison with burning coal, we also hope to promote water conservation through extending this initiative to our customers. For every compliment that we have received, we purchased no less than 50 kg carbon offsets to express our gratitude for customers’ valuable opinions. Under this initiative, we have purchased 865 tonnes of carbon offsets in FY2016 alone.

Achieving “Zero Landfill”

In March 2016, the Hong Kong government enacted the Promotion of Recycling and Proper Disposal (Electrical Equipment and Electronic Equipment) (Amendment) Ordinance 2016 in governing the collection, recycling and disposal of regulated waste electrical and electronic equipment (WEEE). Far before the launch of this legal framework, Fuji Xerox (Hong Kong) has been proactively incorporated our end-of-life resource recovery program into operation with our unique initiative 360° of Sustainability™.

With the target of achieving “Zero Landfill”, we are delighted to share that we have attained over 99.5% of material recycling rate with our unique used product recovery program for the past few years. Our sustainability initiatives not only enable us to achieve over 100 local sustainability and CSR recognitions, we are pleased to report that Fuji Xerox Asia Pacific awarded its second consecutive Best Waste Management and Material Productivity at the Sustainable Business Awards Singapore in July 2017.

Ever since we modified our warehouse into a local recycling center in 2004, we deployed various initiatives to collect and recycle used equipment, spare parts and consumables from our customers. This year, we have extended our drop-in service from our local recycling center in Tsuen Wan to our head office in Taikoo Shing, which further facilitates customers in returning their used products and consumables back to us.

The collected multi-function devices (MFDs) will be separated into 15 categories locally and shipped together with collected printers and consumables to our remanufacturing factory in Thailand. These products are further separated into 90 categories and processed into raw materials for recycling. Although we are pleased to have achieved excellent results through the utilizing of internal resources to handle the used products that we produced, we will continue our efforts in improving our used product recovery system and to keep up with the government’s mandatory WEEE producer responsibility scheme.

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Fuji Xerox (Hong Kong)’s growth is powered by our corporate strengths on having an engaged workforce aspiring towards value creation and social contribution.





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Fuji Xerox (Hong Kong) prides ourselves in valuing equal opportunities, offering employment irrespective of gender, marital status, pregnancy, disability, race, color, religious belief, age, national origin or sexual orientation. We have been fully compliant with all employment-related legislations including freedom of association and the right to collective bargaining. We also strongly prohibit inhumane treatment, child and forced labor, discrimination, interference and other forms of abuse. In an effort to protect our employees, we have assembled detailed harassment communication policies along with an easy-to-understand complaint and grievance guideline to safeguard all staff. Health and Safety Guideline and chemical handling procedures are also in place to ensure occupational health and safety of our colleagues.

Over the past decades, we have been delighted to have received human resources-related awards, recognizing our efforts to enhance the workplace quality for our employees and contribute to the general community. Our ultimate goal is to be a “Good Company” that achieves balance in being “Strong”, “Kind” and “Interesting”. In 2016, we were honored to receive the “2015/16 Distinguished Family Friendly Employer Award” and the “HR Innovation Awards 2016” demonstrating our continuous support towards family-friendly employment policies and practices while simultaneously adopting innovative HR technologies.

Employee EngagementHuman capital is one of the most important assets in Fuji Xerox. We strive to foster a positive culture by 360° employee engagement initiatives to bring our staff an enjoyable working environment. Under the “3C” (Creativity, Champion, Caring) employee engagement framework, Fuji Xerox (Hong Kong) has adopted a wide range of family friendly employment practices to help our employees in fulfilling their work and family responsibilities simultaneously. Apart from Children’s Graduation Leave, a series of parenting workshops have been rolled out to off load the stress of the working parents. During the “Bring-Your-Kids-To-Work” campaign on 23 December 2016, one of our staff imitated as Santa Clause and distributed Christmas gifts to the kids that enhanced the joyful of the festival. Not only arranging the seasonal sweeties to our staff, we also arrange sweet surprise to cheer up the workforce occasionally.

Kids are having good time with Santa Claus in our head office.

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Celebrating the festive joy with colleagues, we provide treats such as mooncake, half-baked cheese cake and Christmas cookies to our employees for heightened festival spirit.

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The company always encourages work-life balance. Whilst providing sponsorships for our staff to enjoy cultural and sporting activities with their families and friends, we hired professional coaches to deliver regular trainings on football, basketball and dragon boat activities. In FY2016, we participated various internal and external competitions and were proud to be crowned the champions in the 2016 All-Fuji Xerox China Friendly Soccer Cup Game.

Employee SatisfactionOn top of various communication meetings, informal gathering sessions and performance reviews, we conduct an anonymous Employee Motivation and Satisfaction Survey to gauge our employee satisfaction every year.

In 2016, we collaborated with Hay Group in an effort to refine our survey, aiming to evaluate 12 dimensions within employee satisfaction in 70 questions, an attempt towards generating a more precise and comprehensive outlook and assessment for industry benchmarking. As per previous years, the survey has a high participation rate of reaching 99%. We are delighted to share that our satisfaction score was higher than the norm of the ICT industry. Among all areas, we performed best in “Quality and Customer Focus”, demonstrating our success in engaging as a “Strong” company in accordance with the “Good Company” concept. The survey result has provided us with guidelines towards where our strengths and area of improvements are. We are committed to devoting our time and resources in implementing effective initiatives to engage our employees, a token towards our efforts in promoting team spirit and a happy workplace.

Constant Learning and DevelopmentFuji Xerox (Hong Kong) considers human development as a critical success factor. Aiming to foster a learning culture, the company introduced the “Great Learner Campaign” in 2011. The campaign’s award scheme is divided into six levels where employees could obtain respective “Learning Mileages” in accumulative basis through diversified learning channels such as external training, in-house workshop, e-learning, book reading and exposure opportunities. To reward the

Mr. Herbert Hui, Managing Director (2nd from right, middle row) and Mr. Alan Wong, Senior Director of Client Consulting Business (3rd

from right, middle row) supported Fuji Xerox (Hong Kong) football team and shared the honor with our teammates on 4 September 2016.

▲In early 2017, we organized a Calligraphy Workshop teaching colleagues on the art of writing. We all had a wonderful time and benefitted from beautiful hand-writing afterwards.

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Ms. Eliza Ng, Director, Human Resources of Fuji Xerox (Hong Kong) Limited (2nd from left) led our young talents to the Japan Study Tour and in which they all learnt a lot from Fuji Xerox’s technological advancement and sustainability practices.

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studious workforce, colleagues that have reached certain reading level can redeem their accumulated “Learning Mileages” to air-ticket to Japan, Taiwan, Thailand or even Europe; ultimately they can even receive a 999 Gold Coin with a recognition letter from our regional President after reaching the level of Wisdom Master.

To accelerate our employees in forming their learning habits, the company provides a wide spectrum of resources in different forms. For instance, we introduced Lunch & Learn Series; launched an in-house library – Learning & Development (L&D)’s Open Library (“LOL”); offered full sponsorship of external professional ICT qualification certification courses; conducted seminars and training opportunities on topics such as office application, digital marketing, interpersonal communication through the Fuji Xerox (Hong Kong) Academy. Staff are also encouraged to participate and make good use of the resources within working hours. We have constructed a dynamic e-learning platform and an online real time portal dashboard for employees to enroll, monitor and review their learning journey in/outside the company. To this date, we have achieved over 36,000 training hours by FY2016 through this campaign. As a pioneer in the ICT industry, we are committed to cultivating the growth of the industry by investing heavily in our young talents. Through the introduction of a 24-month Management Trainee Program in Solutions Consulting, we offer passionate youngsters with valuable ICT training and work experience. Participating trainees will undergo a series of IT Management & Business Administration development courses involving practical on-job training and job rotation opportunities so as to facilitate their development in the ICT industry. We also provide full sponsorships for professional qualifications and memberships such as Six Sigma and ITIL to support our trainees breaking into the business and the global challenges.

Seeing is believing! To pursuit “One Company, One Team, One Goal” and facilitate our trainees to learn Fuji Xerox’s culture, we formed an “Overseas Buddy Taskforce” and visited Fuji Xerox Headquarter in Japan in October 2016. During the 4-day intensive study tour, the trainees had a fabulous experience in sharing, networking and developing friendship with Fuji Xerox Japan’s members. In addition, they benefited a lot from all the presentation by experienced speakers and have a far deeper understanding on the latest Fuji Xerox’s strategies and direction. Apart from Fuji Xerox Japan’s Headquarter in Tokyo, our trainees visited Yokohama R&D Square, Customer Creation Center and the Fuji Xerox Manufacturing Co., Ltd.’s Takematsu Center which is a recycling spot where the collection and recycling of material takes place. Through these precious exposure opportunities, they learnt how Fuji Xerox’s technology contributed in bettering people’s lives while maintaining “Zero Landfill” initiative via the Fuji Xerox’s unique recycling value chain.

A L&D’s Open Library located at the head office provides colleagues with over 200 books covering topics including management, strategy, marketing, business, spiritual, leisure and interest.

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“ The 2-year program was valuable to me as it gave me a solid foundation for my career path. It offered me diverse opportunities and exposures to acquire the skills and professional expertise I needed, fast-tracking many valuable opportunities on customer connection. ”

Mr. Hinson ChungSolutions Consulting Trainee


“ Happiness is not from getting more, but giving more! Volunteer is a great gift to community and a good lesson to learn “Give Back”. Together, let’s paint a complete and beautiful picture of our society and ourselves. ”

Mr. Xavier HuiAccount Consultant


During the tour, our trainees had to present their thoughts on “Smart Cities and Surfing the Green Waves”. Through intensive project discussion and knowledge exchange among Hong Kong and Japan’s talents, we facilitated collaboration across different countries.

To continue the synergy and maximize the joint effort, regular Newsletter had been issued by the overseas buddy taskforces as one of the communicators to share the latest news and trends in the territory after the tour.

Community EngagementAdhering to the “Good Company Concept” established in 1992, Fuji Xerox (Hong Kong) has committed to being kind to our society and considerate to the environment. We continue to contribute to the society through various community services and events, actively boost volunteering.

In recognition of our past 15 years’ untiring efforts on giving back to the Hong Kong community, Fuji Xerox (Hong Kong) was awarded with the 15 Years Plus Caring Company Logo by the Hong Kong Council of Social Service in March 2017. We are grateful for the accolade in recognition of our commitment towards caring for our employees, our environment and our community over the past years. We will continue to prosper as a sound business practice, creating value through services focused on the environment and advocating for social responsibility.

In recognition of volunteers who dedicated 10 or more hours of service in FY2016, we presented a specially designed Volunteer Appreciation Certificate to them in appreciation of their efforts and contributions in their professional and personal lives.

Fuji Xerox (Hong Kong) is one of the 115 local companies or organizations garnering the 15 Years Plus Caring Company Logo, i.e. the leading 3% companies participating in the Caring Company Scheme.

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Our top two priorities in CSR are to support the next generation and engage in environmental conservation, thus prompting us to regularly organize various volunteering activities.

On 13 August 2016, a team of 25 passionate and friendly volunteers visited the Charis Parent Integrated Service Center of the Tai Po Baptist Church Social Service which supports children with special educational needs. Guided by social workers, our volunteers witnessed the endearing qualities of these precious children and learnt the essentials of being open-minded and maintaining a positive attitude in order to get along with the children. Together, we visited the Lake Egret Nature Park to embrace the beauty of nature as well as making bread and creative handicrafts, reveling in an atmosphere of love and warmth.

On 4 December 2016, co-organized by the Caritas Community Center – Kowloon, a team of 15 volunteers provided tutorial classes to disadvantaged children living in To Kwa Wan. The primary school students came from the families lacking academic support in their studies, so our help on their school work was definitely a practical mean in supporting the children in an effort to improve their studies. Moving into the future, we will continue to support the children through tutorial classes as nurturing future generations is always our top priority, as stipulated in Fuji Xerox CSR policy.

In January 2017, we collaborated with the Friends of the Earth and the People’s Council Social Service Association for a food recycling event, aimed at raising colleagues’ awareness on food waste problem in Hong Kong. At the event, we collected over 100 kg of unsold yet edible fruits and vegetables remaining from the To Kwa Wan Wet Market and neighboring local green grocers, and transported them to the restaurant of Ming Gor in Shum Shui Po, a voluntary meal service for the less fortunate.

Volunteers from Fuji Xerox (Hong Kong) has a joyful time with the children of the Charis Parent Integrated Service Center.

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Our volunteers help the students prepare for dictations.

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“Shum Shui Po Ming Gor” shares his missions and stories of helping elderly and low-income families through meal cooking with volunteers.

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Besides, Fuji Xerox (Hong Kong) has continuously supported the Caritas Charity Bazaar in Kowloon with fund raising efforts, with the objective of helping the underprivileged since 2013. Themed with “Visible Green”, we hoped to bring the message to bazaar visitors on the importance of being more environmental friendly in our daily lives. In the bazaar of November 2016, we not only sold stationery, cutlery sets and eco-friendly washing products, but also set up an arts and crafts sub-booth on art-jamming on recycled bags. All finished products were custom-made by participants and were brought back home to encourage their use and to deepen their green behaviors.

Admitting that the next generation is the backbone of the development of Hong Kong in coming years and decades, it is importance to increase environmental awareness of the youth. Invited by the New World Development Company Limited, we have been one of the judges for the presentation of the student’s final group project on environmental protection topics in the HKU-New World Group Business Elite Students (BEST) Programme. The students investigated businesses that involved a large amount of waste producing activities and then proposed methods to reduce waste and promote environmental friendliness to foster corporate sustainability. As a judge, our representative evaluated their ideas carefully in accordance with the provided criteria such as innovation, practicality and feasibility and shared our insights.

In July 2017, we collaborated with our property management company – Swire Properties Limited to provide support for the less fortunate. Through the Clean Air Network, Fuji Xerox (Hong Kong) donated printers and monitors to the Concern for Grassroots Livelihood Alliance. The donated items were used for the construction of their computer center and distributed amongst disadvantaged families. This was in acknowledgement of the harsh reality that students nowadays require computers and printers to study and complete their assignment or project. We found this activity is worthwhile in order to enhance the learning among youngsters these days.

Mr. Joseph Tong, Manager, Sustainability Management (4th from right) of Fuji Xerox (Hong Kong) Limited, is one of the judges for the BEST Program.

▲ Some of our donated printers and monitors are placed in the computer center of the Concern for Grassroots Livelihood Alliance.

▲

“ At Swire Properties, we believe that sustainable development (SD) can only be achieved through close collaboration with our key stakeholders, especially our tenants. Our long-term partnership with Fuji Xerox (Hong Kong) – since 2010 – is a testament to how we are addressing environmental and social issues together, and making a difference in Hong Kong. We are delighted to have a partner whose values so closely match our own, and we look forward to doing even more great work with them via our SD 2030 Strategy. ”

Ms. May Lam-KobayashiGeneral Manager, Public Affairs

Swire Properties Limited



CSR Indicators


45

Environmental

Item Data Summary FY2014 FY2015 FY2016

1 Gasoline Consumption by Vehicle (Litres) 39,570 36,704 40,176

2 Energy Consumption Equivalent to Gasoline Consumption (GJ)*1 1,307 1,212 1,327

3 Electricity Consumption (kWh) 1,284,583 1,150,025 1,081,609

4 Energy Consumption Equivalent to Electricity Consumption (GJ)*1 4,624 4,140 3,894

5 Direct CO2 Emissions (Tonnes CO2-e) 93.4 86.6 94.8

6 Indirect CO2 Emissions (Tonnes CO2-e) 899.2 805.0 757.1

7 CO2 Emissions (Tonnes CO2-e) *2 992.6 891.6 851.9

8 A3 Paper Consumption (Sheets/No. of Staff) 3 143 146 152

9 A4 Paper Consumption (Sheets/No. of Staff) 3 2,458 2,328 1,577

10 Recycled Paper/ Environmental Paper Consumption (Sheets/No. of Staff) 2,605 2,480 1,731

11 Total Water Discharges (Tonnes) *4 2 2 2

12 Other Indirect CO2 Emissions (Tonnes CO2-e) *3,5 63 61 46

13 Paper Recycled (Tonnes) *6 26.02 31.43 28.96

14 Aluminum Recycled (Tonnes) *6 0.14 0.05 0.03

15 Plastic Recycled (Tonnes) *6 0.18 0.17 0.28

16 Waste to Landfill or Incineration (Tonnes) *6 48.92 44.92 45.97

17 Total Number of Spills 0 0 0

18 Total Volume of Spills (m3) 0 0 0

19 Chemical Waste Produced (Tonnes)*7 0 0.26 0.05

20 Waste Electrical and Electronic Equipment (WEEE) Recycled (Tonnes) 1,202 1,503 1,252

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

22 Major Non-conformance in Integrated Management System Audits 0 0 0

Remarks: *1 The conversion ratio is referred to GRI Sustainability Reporting Guidelines Version 3.0. *2 Includes both Electricity and Gasoline Consumption (i.e. scope 1 and scope 2 emissions only); excludes CO2 emissions from logistics management activities

carried out by on-site contractors. CO2 is the main Greenhouse Gas emission in Fuji Xerox (Hong Kong). The calculation was based on the “Guidelines to Account for and Report on Greenhouse Gas Emissions and Removals for Buildings (Commercial, Residential or Institutional Purposes) in Hong Kong” issued by the Environmental Protection Department and the Electrical and Mechanical Services Department in February 2010.

*3 The paper consumption is recorded within the scope of our document management system rather than in internal order. For item 10, the Recycled Paper/ Environmental Paper Consumption includes A3, A4 and A5 paper.

*4 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. *5 Includes CO2 emissions resulting from paper and water consumption. *6 Includes Macau office data from November 2013 onwards. The data was recorded directly by our colleagues or provided by our property management

company and/or recycler. *7 Chemical waste excludes amount generated by activities of off-site contractors. The increase in chemical waste in FY2015 was due to an increased staff

awareness as they brought batteries from their homes to our offices for disposal. Situation improved in FY2016 due to the availability of more battery collection points integrated within our society.

*

*

3*

As a non-listed private organization, Fuji Xerox (Hong Kong) endeavors to publish as much information as we can to increase the transparency of our “Triple Bottom Line” performance. Some of the data below has been reorganized and regrouped for easy understanding.


CSR Indicators

46

Social

Item Data Summary FY2014 FY2015 FY2016 1 Number of Staff *8 945 953 998

2 Male : Female 660 : 285 667 : 286 658 : 340

3 Local : Non-local *9 943 : 2 951 : 2 996 : 2

4 Manager (Male : Female) 67 : 26 72 : 27 79 : 28

5 Non-Manager (Male : Female) 593 : 259 595 : 259 579 : 312

6 Voluntary Staff Turnover 21.22% 23.50% 20.20%

7 Retention Rates After Parental Leave 100% 100% 100%

8 Staff Injuries 4 4 4

9 Staff Fatalities 0 0 0

10 Accident rate per 1,000 workers *10 4.23 4.20 4.01

11 Total Training Hours*11 39,893 40,240 37,324

12 Staff Training Cost Year-On-Year Growth*12 45% -24% -66%

13 Convicted Cases of Corruption 0 0 0

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

15 Volunteering Hours 3,839 4,007 4,293

16 Number of Volunteer 647 695 756

17 Monetary Value of Significant Fines and Total Number of Non-MonetarySanctions for Non-compliance with Laws and Regulations (HK$)

18 Human Rights Review *13 100% 100% 100%

19 Number of Grievances Related to Human Rights 0 0 0

Economic Item Data Summary FY2014 FY2015 FY2016

1 Compounded Annual Growth Rate (CAGR) Revenue in 5 Years *14 5.0% 2.9% 3.0%

2 Revenue/Selling General & Administrative Expense 4.89 5.34 5.33

3 Human Resources Productivity (Revenue/Total HR cost) 4.99 4.86 4.44

4 Debt to Equity Ratio 36% 38% 40%

5 Environmental Expenditure Year-On-Year Growth*15 4% -2% -9%

Remarks:*8 Includes all permanent and contract staff. *9 “Local” employees are those whose employment terms and conditions meet the labor requirements of the Hong Kong Special Administrative Region

(HKSAR) and Macao Special Administrative Region. *10 The calculation of accident rate per 1,000 workers is referenced to the definition of Labour Department of HKSAR. *11 From 2014 report onwards all relevant self-learning data are included. The drop of total training hours in FY2016 is due to the apply of new data capture

methodology with revamped e-learning platform.*12 The drop in staff training cost is due to increased training activities conducted by competent internal trainers and more e-learning is adopted.*13 All new staff members joining Fuji Xerox (Hong Kong) are required to complete the “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 annually. *14 The consolidated results in terms of Year-On-Year Growth Rate (%) from Fuji Xerox (Hong Kong)’s income statement includes relevant data for the

Printer Channel Operation. *15 Includes end-of-life management costs only. The drop in environmental expenditure in FY2016 was due to the increase in using refined refurbishing

processes instead of recycling processes to handle used products.

0 0 0

GRI Content IndexChapter 9

04

R


GRI Content Index

GRI Content IndexChapter 9

47

GRI 103: Management Approach 2016

103-1, 103-2, 103-3

Report Scope and Approach; Corporate Governance

GRI 419: Socio-economic Compliance 2016

419-1

Non-compliance with laws and regulations in the social and economic area

No fines and/or non-monetary sanctions for non-compliance with laws and regulations were recorded in FY2016.

B1, B2, B4, B6, B7

Customer Satisfaction GRI 103: Management Approach 2016

103-1, 103-2, 103-3

Report Scope and Approach; Strong

N/A N/A

Percentage of service recovery in 4 hours

Strong - Creating Values based on Customer Satisfaction

Percentage of availability of 7x24 iSupport Service


Percentage of fulfilment of backup center for handling customer urgent request


Total Satisfaction Guarantee pledge


Business Continuity GRI 103: Management Approach 2016

103-1, 103-2, 103-3


Environmental Education GRI 103: Management Approach 2016

103-1, 103-2, 103-3


N/A N/A Number of Green Tour organized Report Scope and Approach

Employee Satisfaction GRI 103: Management Approach 2016

103-1, 103-2, 103-3

Report Scope and Approach; Interesting

N/A N/A Employee Engagement Survey Participation Rate

Interesting - Employee Satisfaction

Information Security GRI 103: Management Approach 2016

103-1, 103-2, 103-3


Volunteering GRI 103: Management Approach 2016

103-1, 103-2, 103-3

Report Scope and Approach; Interesting B8

N/A N/A Number of Volunteering Hours Contributed CSR Indicators

*The main Greenhouse Gas emitted by Fuji Xerox (Hong Kong) is carbon dioxide (CO2). In this context, "Greenhouse Gas" refers to CO2.

GRI 307: Environmental Compliance 2016

307-1 Non-compliance with environmental laws and regulations

A1

Supplier Environmental Assessment GRI 103: Management Approach 2016

103-1, 103-2, 103-3

Report Scope and Approach; Kind

B5, KPI B5.2

GRI 308: Supplier Environmental Assessment 2016

308-1 New suppliers that were screened using environmental criteria

We included environmental criteria in all supplier preferred vendors’ assessments.

KPI B5.2

Employment GRI 103: Management Approach 2016

103-1, 103-2, 103-3

Interesting

401-1 New employee hires and employee turnover KPI B1.2

Occupational Health and Safety GRI 103: Management Approach 2016

103-1, 103-2, 103-3

Report Scope and Approach; Corporate Governance; Interesting

B2, KPI B2.3

GRI 403: Occupational Health and Safety 2016

403-2

Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities

KPI B2.1

Training and Education GRI 103: Management Approach 2016

103-1, 103-2, 103-3


GRI 404: Training and Education 2016

404-1 Average hours of training per year per employee KPI B3.2

Marketing and Labeling GRI 103: Management Approach 2016

103-1, 103-2, 103-3


GRI 417: Marketing and Labeling 2016

417-2

Incidents of non-compliance concerning product and service information and labeling

There is no incident of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes.

B6

Customer Privacy GRI 103: Management Approach 2016

103-1, 103-2, 103-3

Report Scope and Approach; Corporate Governance; Kind

B6, KPI B6.5

GRI 418: Customer Privacy 2016

418-1

Substantiated complaints concerning breaches of customer privacy and losses of customer data

No complaints regarding breaches of customer privacy and losses of customer data were recorded in FY2016.

B6, KPI B6.2

Code of Conduct; Interesting

KPI B7.2

GRI 205: Anti-corruption 2016

205-3 Confirmed incidents of corruption and actions taken

CSR Indicators- Social

B7, KPI B7.1

Materials

Report Scope and Approach;

Kind A3,

KPI A3.1

GRI 301: Materials 2016

301-2 Recycled input materials used

We provide FSC recycled 100% paper (i.e. Green Wrap Recycled) and paper made from 100% post-consumer waste (i.e. Recycled Supreme+).

Energy GRI 103: Management Approach 2016

103-1, 103-2, 103-3

Top Commitment; Report Scope and Approach; Kind

A2 KPI A2.3

GRI 302: Energy 2016

302-1 Energy consumption within the organization KPI A2.1

Emissions


103-1, 103-2, 103-3

Top Commitment; Report Scope and Approach; Strong; Kind

A1, KPI A1.5

GRI 305: Emissions 2016

305-1 Direct (Scope 1) GHG* emissions KPI A1.1,

KPI A1.2

305-2 Energy indirect (Scope 2) GHG* emissions KPI A1.1,

KPI A1.2

305-3 Other indirect (Scope 3) GHG* emissions KPI A1.1,

KPI A1.2

305-5 Reduction of GHG* emissions

KPI A1.5

Effluents and Waste GRI 103: Management Approach 2016

103-1, 103-2, 103-3


A1, KPI A1.6

GRI 306: Effluents and Waste 2016

306-2 Waste by type and disposal method KPI A1.3,

KPI A1.4

306-3 Significant spills CSR Indicators- Environmental KPI A3.1

Environmental Compliance GRI 103: Management Approach 2016

103-1, 103-2, 103-3


102-55 GRI content index GRI Content Index

102-56 External assurance Report Scope and Approach - External Assurance; Verification Statement

Material Topics Cross-reference SEHK ESG

Guide Reference

Global Goal(s) Page

Indirect Economic Impacts


Strong

GRI 203: Indirect Economic Impacts 2016

203-2 Significant indirect economic impacts

With organizing community investment programs, some of partners are indeed our customers and our business relationship has been deepened through working together. Take Caritas Hong Kong as an example, we have worked with them for several programs since 2009. Alone in 2016, we supported Caritas for paying visits to underprivileged families and ethnic minorities, being tutors for underprivileged students, holding a booth in Caritas Bazaar, and selling Caritas raffle tickets. Another example is working with the Salesian School for its anniversary event in January 2016. Our volunteers guided students to draw patterns on used glass bottles collected from our colleagues and our property management company. We did not only spread messages about the importance of recycling and protecting the environment in a fun and interactive way but also built a closer relationship with the school and indeed our future potential customers. Whereas for workforce engagement, we seek to cultivate a number of community-minded characteristics in our employees, including influencing their friends and families to give back to society, develop charitable hearts and learn to respect different cultures. We generally observed that the participated staff show higher employee satisfaction and more engaged with the company. The change can be easily spotted out among winners from Fuji Xerox (Hong Kong) Community Award. In addition, it is easier for our HR colleagues to recruit new talents from good CSR imaged organization.

Anti-corruption

102-14 Statement from senior decision-maker Top Commitment

Ethics and Integrity

102-16 Values, principles, standards, and norms of behavior Company Profile

Governance

102-18 Governance structure Corporate Governance - Governance and Organization

Stakeholder Engagement

102-40 List of stakeholder groups

Generally, our defined stakeholders include our customers, employees, suppliers, global environment, local communities, and shareholders/investors.

102-41 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.

102-42 Identifying and selecting stakeholders

The identification and selection of stakeholder is based on the value chain approach of Fuji Xerox trademarked 360o of SustainabilityTM developed and reported since 2010.

102-43 Approach to stakeholder engagement

Report Scope and Approach; All the identified stakeholder types have been included in the materiality assessment in compiling this report.

102-44 Key topics and concerns raised Report Scope and Approach

Reporting Practice

102-45 Entities included in the consolidated financial statements

Top Commitment; Report Scope and Approach

102-46 Defining report content and topic boundaries

Report Scope and Approach - Reporting Scope - Reporting Principles

102-47 List of material topics Report Scope and Approach - Material Aspects and Stakeholder

Engagement

102-48 Restatements of information There is no re-statement of information provided in earlier reports, and the reasons for such re-statement.

102-49 Changes in reporting There is no significant change from previous reporting periods in the scope and boundary.

102-50 Reporting period Report Scope and Approach - Reporting Scope

102-51 Date of most recent report

Report Scope and Approach - Reporting Objectives; The latest sustainability report was published in November 2016 covering the data period of FY2015

102-52 Reporting cycle

Report Scope and Approach - Reporting Objectives; The sustainability report is prepared annually.

102-53 Contact point for questions regarding the report

Email: [email protected]; Feedback Form

102-54 Claims of reporting in accordance with the GRI Standards GRI Content Index

GRI 102: General Disclosures 2016 Cross-reference SEHK ESG

Guide Reference

Global Goal(s) Page

Organizational Profile 102-1 Name of the organization Company Profile

102-2 Activities, brands, products, and services

Company Profile; There are no brands, products, and services that are banned in any markets.

102-3 Location of headquarters Company Profile

102-4 Location of operations Report Scope and Approach - Reporting Scope

102-5 Ownership and legal form Corporate Governance - Governance and Organization

102-6 Markets served Company Profile

102-7 Scale of the organization Report Scope and Approach - Reporting Scope; Company Profile

102-8 Information on employees and other workers

CSR Indicators; Our business activities are mainly performed by our employees with limited assistance from external vendors (e.g. solutions development, logistics arrangement, survey); There’s no significant variations in the numbers reported in Disclosures 102-8-a, 102-8-b, and 102-8-c.

KPI B1.1

102-9 Supply chain

Kind - Sustainable Procurement; All our suppliers (including multi-function devices, printers, paper, solutions, etc) are engaged.

KPI B5.2

102-10 Significant changes to the organization and its supply chain

There is no significant change during the reporting period regarding size, structure, ownership or organization's supply chain.

102-11 Precautionary principle or approach

Corporate Governance- Risk Management and Legal Compliance

102-12 External initiatives No such initiatives are subscribed or endorsed by Fuji Xerox (Hong Kong).

102-13 Membership of associations

- The Aberdeen Marina Club

- The Chinese Manufacturers' Association of Hong Kong

- The Community Chest of Hong Kong's

Greening for the Chest Organizing Committee

- The Green Earth Limited - The Hong Kong Japanese Club - The Hong Kong Printers Association - World Trade Centre Club Hong Kong

- American Chamber of Commerce in Hong Kong

- American Club - Business Environment Council - Century 21 Club -

- Hong Kong Golf Club - Hong Kong Management Association - Institute of Print Media Professional - Macau American Chamber of Commerce- Japanese Chamber of Commerce - Jiji Press Ltd Japan HK Branch

Hong Kong General Chamber of Commerce

- The Clearwater Bay Golf & Country Club

- World Green Organisation

Socio-economic Compliance

Topic Specific Disclosures

General Disclosures

Strategy

12

12

12

46

36

19

20 - 22

01 - 04

01 - 04,

12 - 15

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

46

N/A

45

45

45

45

45

45

45

N/A

05 - 11

05 - 11

05 - 11

05 - 11,23 - 30

05 - 11,38 - 44

05 - 11,31 - 37

01 - 04, 05 - 11,31 - 37

01 - 04, 05 - 11, 23 - 30,31 - 37

05 - 11, 18 - 22,31 - 37

05 - 11, 18 - 22,38 - 44

05 - 11, 18 - 22,

05 - 11,18 - 22

05 - 11,23 - 30

05 - 11,

05 - 11

06 - 07

40

46

18 - 22

05 - 11,18 - 22

05 - 11,38 - 44

05 - 11,38 - 44

29 - 30

29 - 30

29 - 30

29 - 30

31 - 37

05 - 11,38 - 44

05 - 11,31 - 37

05 - 11,31 - 37

05 - 11,31 - 37

38 - 44

46

46

46

N/A

N/A

N/A

01 - 04,45

05 - 06

05

05

05

47

47 - 52

06, 53

06 - 09

05

05, 12

19

12 - 17

GRI 103: Management Approach 2016(103-1, 103-2, 103-3)



















Report Scope and Approach; B7,

CSR Indicators- Environmental




Top Commitment;CSR Indicators- Environmental



CSR Indicators- SocialCSR Indicators- Social401-3 Parental leave 46

GRI 401: Employment2016




This report has been prepared in accordance with the GRI Standards: Core option. The GRI Disclosures are presented below with either linkage to the reported section(s) or direct answer.

04

R


GRI Content Index

48


103-1, 103-2, 103-3



419-1



B1, B2, B4, B6, B7


103-1, 103-2, 103-3


N/A N/A










103-1, 103-2, 103-3



103-1, 103-2, 103-3




103-1, 103-2, 103-3





103-1, 103-2, 103-3



103-1, 103-2, 103-3






A1


103-1, 103-2, 103-3


B5, KPI B5.2




KPI B5.2


103-1, 103-2, 103-3

Interesting



103-1, 103-2, 103-3


B2, KPI B2.3


403-2


KPI B2.1


103-1, 103-2, 103-3





103-1, 103-2, 103-3



417-2



B6


103-1, 103-2, 103-3


B6, KPI B6.5


418-1



B6, KPI B6.2


KPI B7.2




B7, KPI B7.1

Materials


Kind A3,

KPI A3.1





103-1, 103-2, 103-3


A2 KPI A2.3



Emissions


103-1, 103-2, 103-3


A1, KPI A1.5



KPI A1.2


KPI A1.2


KPI A1.2


KPI A1.5


103-1, 103-2, 103-3


A1, KPI A1.6



KPI A1.4



103-1, 103-2, 103-3





Guide Reference

Global Goal(s) Page



Strong




Anti-corruption




Governance












Reporting Practice






Engagement












Guide Reference

Global Goal(s) Page











KPI B1.1

102-9 Supply chain


KPI B5.2




















General Disclosures

Strategy

12

12

12

46

36

19

20 - 22

01 - 04

01 - 04,

12 - 15

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

46

N/A

45

45

45

45

45

45

45

N/A

05 - 11

05 - 11

05 - 11

05 - 11,23 - 30

05 - 11,38 - 44

05 - 11,31 - 37

01 - 04, 05 - 11,31 - 37

01 - 04, 05 - 11, 23 - 30,31 - 37

05 - 11, 18 - 22,31 - 37

05 - 11, 18 - 22,38 - 44

05 - 11, 18 - 22,

05 - 11,18 - 22

05 - 11,23 - 30

05 - 11,

05 - 11

06 - 07

40

46

18 - 22

05 - 11,18 - 22

05 - 11,38 - 44

05 - 11,38 - 44

29 - 30

29 - 30

29 - 30

29 - 30

31 - 37

05 - 11,38 - 44

05 - 11,31 - 37

05 - 11,31 - 37

05 - 11,31 - 37

38 - 44

46

46

46

N/A

N/A

N/A

01 - 04,45

05 - 06

05

05

05

47

47 - 52

06, 53

06 - 09

05

05, 12

19

12 - 17

































04

R


GRI Content Index

49


103-1, 103-2, 103-3



419-1



B1, B2, B4, B6, B7


103-1, 103-2, 103-3


N/A N/A










103-1, 103-2, 103-3



103-1, 103-2, 103-3




103-1, 103-2, 103-3





103-1, 103-2, 103-3



103-1, 103-2, 103-3






A1


103-1, 103-2, 103-3


B5, KPI B5.2




KPI B5.2


103-1, 103-2, 103-3

Interesting



103-1, 103-2, 103-3


B2, KPI B2.3


403-2


KPI B2.1


103-1, 103-2, 103-3





103-1, 103-2, 103-3



417-2



B6


103-1, 103-2, 103-3


B6, KPI B6.5


418-1



B6, KPI B6.2


KPI B7.2




B7, KPI B7.1

Materials


Kind A3,

KPI A3.1





103-1, 103-2, 103-3


A2 KPI A2.3



Emissions


103-1, 103-2, 103-3


A1, KPI A1.5



KPI A1.2


KPI A1.2


KPI A1.2


KPI A1.5


103-1, 103-2, 103-3


A1, KPI A1.6



KPI A1.4



103-1, 103-2, 103-3





Guide Reference

Global Goal(s) Page



Strong




Anti-corruption




Governance












Reporting Practice






Engagement












Guide Reference

Global Goal(s) Page











KPI B1.1

102-9 Supply chain


KPI B5.2




















General Disclosures

Strategy

12

12

12

46

36

19

20 - 22

01 - 04

01 - 04,

12 - 15

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

46

N/A

45

45

45

45

45

45

45

N/A

05 - 11

05 - 11

05 - 11

05 - 11,23 - 30

05 - 11,38 - 44

05 - 11,31 - 37

01 - 04, 05 - 11,31 - 37

01 - 04, 05 - 11, 23 - 30,31 - 37

05 - 11, 18 - 22,31 - 37

05 - 11, 18 - 22,38 - 44

05 - 11, 18 - 22,

05 - 11,18 - 22

05 - 11,23 - 30

05 - 11,

05 - 11

06 - 07

40

46

18 - 22

05 - 11,18 - 22

05 - 11,38 - 44

05 - 11,38 - 44

29 - 30

29 - 30

29 - 30

29 - 30

31 - 37

05 - 11,38 - 44

05 - 11,31 - 37

05 - 11,31 - 37

05 - 11,31 - 37

38 - 44

46

46

46

N/A

N/A

N/A

01 - 04,45

05 - 06

05

05

05

47

47 - 52

06, 53

06 - 09

05

05, 12

19

12 - 17


































103-1, 103-2, 103-3



419-1



B1, B2, B4, B6, B7


103-1, 103-2, 103-3


N/A N/A










103-1, 103-2, 103-3



103-1, 103-2, 103-3




103-1, 103-2, 103-3





103-1, 103-2, 103-3



103-1, 103-2, 103-3






A1


103-1, 103-2, 103-3


B5, KPI B5.2




KPI B5.2


103-1, 103-2, 103-3

Interesting



103-1, 103-2, 103-3


B2, KPI B2.3


403-2


KPI B2.1


103-1, 103-2, 103-3





103-1, 103-2, 103-3



417-2



B6


103-1, 103-2, 103-3


B6, KPI B6.5


418-1



B6, KPI B6.2


KPI B7.2




B7, KPI B7.1

Materials


Kind A3,

KPI A3.1





103-1, 103-2, 103-3


A2 KPI A2.3



Emissions


103-1, 103-2, 103-3


A1, KPI A1.5



KPI A1.2


KPI A1.2


KPI A1.2


KPI A1.5


103-1, 103-2, 103-3


A1, KPI A1.6



KPI A1.4



103-1, 103-2, 103-3





Guide Reference

Global Goal(s) Page



Strong




Anti-corruption




Governance












Reporting Practice






Engagement












Guide Reference

Global Goal(s) Page











KPI B1.1

102-9 Supply chain


KPI B5.2




















General Disclosures

Strategy

12

12

12

46

36

19

20 - 22

01 - 04

01 - 04,

12 - 15

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

46

N/A

45

45

45

45

45

45

45

N/A

05 - 11

05 - 11

05 - 11

05 - 11,23 - 30

05 - 11,38 - 44

05 - 11,31 - 37

01 - 04, 05 - 11,31 - 37

01 - 04, 05 - 11, 23 - 30,31 - 37

05 - 11, 18 - 22,31 - 37

05 - 11, 18 - 22,38 - 44

05 - 11, 18 - 22,

05 - 11,18 - 22

05 - 11,23 - 30

05 - 11,

05 - 11

06 - 07

40

46

18 - 22

05 - 11,18 - 22

05 - 11,38 - 44

05 - 11,38 - 44

29 - 30

29 - 30

29 - 30

29 - 30

31 - 37

05 - 11,38 - 44

05 - 11,31 - 37

05 - 11,31 - 37

05 - 11,31 - 37

38 - 44

46

46

46

N/A

N/A

N/A

01 - 04,45

05 - 06

05

05

05

47

47 - 52

06, 53

06 - 09

05

05, 12

19

12 - 17

































04

R


GRI Content Index

50


103-1, 103-2, 103-3



419-1



B1, B2, B4, B6, B7


103-1, 103-2, 103-3


N/A N/A










103-1, 103-2, 103-3



103-1, 103-2, 103-3




103-1, 103-2, 103-3





103-1, 103-2, 103-3



103-1, 103-2, 103-3






A1


103-1, 103-2, 103-3


B5, KPI B5.2




KPI B5.2


103-1, 103-2, 103-3

Interesting



103-1, 103-2, 103-3


B2, KPI B2.3


403-2


KPI B2.1


103-1, 103-2, 103-3





103-1, 103-2, 103-3



417-2



B6


103-1, 103-2, 103-3


B6, KPI B6.5


418-1



B6, KPI B6.2


KPI B7.2




B7, KPI B7.1

Materials


Kind A3,

KPI A3.1





103-1, 103-2, 103-3


A2 KPI A2.3



Emissions


103-1, 103-2, 103-3


A1, KPI A1.5



KPI A1.2


KPI A1.2


KPI A1.2


KPI A1.5


103-1, 103-2, 103-3


A1, KPI A1.6



KPI A1.4



103-1, 103-2, 103-3





Guide Reference

Global Goal(s) Page



Strong




Anti-corruption




Governance












Reporting Practice






Engagement












Guide Reference

Global Goal(s) Page











KPI B1.1

102-9 Supply chain


KPI B5.2




















General Disclosures

Strategy

12

12

12

46

36

19

20 - 22

01 - 04

01 - 04,

12 - 15

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

46

N/A

45

45

45

45

45

45

45

N/A

05 - 11

05 - 11

05 - 11

05 - 11,23 - 30

05 - 11,38 - 44

05 - 11,31 - 37

01 - 04, 05 - 11,31 - 37

01 - 04, 05 - 11, 23 - 30,31 - 37

05 - 11, 18 - 22,31 - 37

05 - 11, 18 - 22,38 - 44

05 - 11, 18 - 22,

05 - 11,18 - 22

05 - 11,23 - 30

05 - 11,

05 - 11

06 - 07

40

46

18 - 22

05 - 11,18 - 22

05 - 11,38 - 44

05 - 11,38 - 44

29 - 30

29 - 30

29 - 30

29 - 30

31 - 37

05 - 11,38 - 44

05 - 11,31 - 37

05 - 11,31 - 37

05 - 11,31 - 37

38 - 44

46

46

46

N/A

N/A

N/A

01 - 04,45

05 - 06

05

05

05

47

47 - 52

06, 53

06 - 09

05

05, 12

19

12 - 17

































04

R


GRI Content Index

51


103-1, 103-2, 103-3



419-1



B1, B2, B4, B6, B7


103-1, 103-2, 103-3


N/A N/A










103-1, 103-2, 103-3



103-1, 103-2, 103-3




103-1, 103-2, 103-3





103-1, 103-2, 103-3



103-1, 103-2, 103-3






A1


103-1, 103-2, 103-3


B5, KPI B5.2




KPI B5.2


103-1, 103-2, 103-3

Interesting



103-1, 103-2, 103-3


B2, KPI B2.3


403-2


KPI B2.1


103-1, 103-2, 103-3





103-1, 103-2, 103-3



417-2



B6


103-1, 103-2, 103-3


B6, KPI B6.5


418-1



B6, KPI B6.2


KPI B7.2




B7, KPI B7.1

Materials


Kind A3,

KPI A3.1





103-1, 103-2, 103-3


A2 KPI A2.3



Emissions


103-1, 103-2, 103-3


A1, KPI A1.5



KPI A1.2


KPI A1.2


KPI A1.2


KPI A1.5


103-1, 103-2, 103-3


A1, KPI A1.6



KPI A1.4



103-1, 103-2, 103-3





Guide Reference

Global Goal(s) Page



Strong




Anti-corruption




Governance












Reporting Practice






Engagement












Guide Reference

Global Goal(s) Page











KPI B1.1

102-9 Supply chain


KPI B5.2




















General Disclosures

Strategy

12

12

12

46

36

19

20 - 22

01 - 04

01 - 04,

12 - 15

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

46

N/A

45

45

45

45

45

45

45

N/A

05 - 11

05 - 11

05 - 11

05 - 11,23 - 30

05 - 11,38 - 44

05 - 11,31 - 37

01 - 04, 05 - 11,31 - 37

01 - 04, 05 - 11, 23 - 30,31 - 37

05 - 11, 18 - 22,31 - 37

05 - 11, 18 - 22,38 - 44

05 - 11, 18 - 22,

05 - 11,18 - 22

05 - 11,23 - 30

05 - 11,

05 - 11

06 - 07

40

46

18 - 22

05 - 11,18 - 22

05 - 11,38 - 44

05 - 11,38 - 44

29 - 30

29 - 30

29 - 30

29 - 30

31 - 37

05 - 11,38 - 44

05 - 11,31 - 37

05 - 11,31 - 37

05 - 11,31 - 37

38 - 44

46

46

46

N/A

N/A

N/A

01 - 04,45

05 - 06

05

05

05

47

47 - 52

06, 53

06 - 09

05

05, 12

19

12 - 17

































04

R


GRI Content Index

52


103-1, 103-2, 103-3



419-1



B1, B2, B4, B6, B7


103-1, 103-2, 103-3


N/A N/A










103-1, 103-2, 103-3



103-1, 103-2, 103-3




103-1, 103-2, 103-3





103-1, 103-2, 103-3



103-1, 103-2, 103-3






A1


103-1, 103-2, 103-3


B5, KPI B5.2




KPI B5.2


103-1, 103-2, 103-3

Interesting



103-1, 103-2, 103-3


B2, KPI B2.3


403-2


KPI B2.1


103-1, 103-2, 103-3





103-1, 103-2, 103-3



417-2



B6


103-1, 103-2, 103-3


B6, KPI B6.5


418-1



B6, KPI B6.2


KPI B7.2




B7, KPI B7.1

Materials


Kind A3,

KPI A3.1





103-1, 103-2, 103-3


A2 KPI A2.3



Emissions


103-1, 103-2, 103-3


A1, KPI A1.5



KPI A1.2


KPI A1.2


KPI A1.2


KPI A1.5


103-1, 103-2, 103-3


A1, KPI A1.6



KPI A1.4



103-1, 103-2, 103-3





Guide Reference

Global Goal(s) Page



Strong




Anti-corruption




Governance












Reporting Practice






Engagement












Guide Reference

Global Goal(s) Page











KPI B1.1

102-9 Supply chain


KPI B5.2




















General Disclosures

Strategy

12

12

12

46

36

19

20 - 22

01 - 04

01 - 04,

12 - 15

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

46

N/A

45

45

45

45

45

45

45

N/A

05 - 11

05 - 11

05 - 11

05 - 11,23 - 30

05 - 11,38 - 44

05 - 11,31 - 37

01 - 04, 05 - 11,31 - 37

01 - 04, 05 - 11, 23 - 30,31 - 37

05 - 11, 18 - 22,31 - 37

05 - 11, 18 - 22,38 - 44

05 - 11, 18 - 22,

05 - 11,18 - 22

05 - 11,23 - 30

05 - 11,

05 - 11

06 - 07

40

46

18 - 22

05 - 11,18 - 22

05 - 11,38 - 44

05 - 11,38 - 44

29 - 30

29 - 30

29 - 30

29 - 30

31 - 37

05 - 11,38 - 44

05 - 11,31 - 37

05 - 11,31 - 37

05 - 11,31 - 37

38 - 44

46

46

46

N/A

N/A

N/A

01 - 04,45

05 - 06

05

05

05

47

47 - 52

06, 53

06 - 09

05

05, 12

19

12 - 17

































VerificationChapter 10


Verification

Scope of Verification

Hong Kong Quality Assurance Agency (“HKQAA”) has been engaged by Fuji Xerox (Hong Kong) Limited (“Fuji Xerox (Hong Kong)”) to undertake an independent verification for its Sustainability Report 2017 (Refer to as “The Report”). The scope of HKQAA’s verification covers the data and information associating to the sustainability performance of Fuji Xerox (Hong Kong)’s for the period 1st April 2016 to 31st March 2017. This is the 8th Report that Fuji Xerox (Hong Kong) published to communicate its commitments, efforts and progress of performance towards sustainability.

Level of Assurance and Methodology

The process applied in this verification was based on the International Standard on Assurance Engagement 3000 (Revised) – “Assurance Engagement Other Than Audits or Reviews of Historical Financial Information” issued by the International Auditing and Assurance Standards Board (“ISAE 3000”). Our evidence gathering process was designed to obtain a reasonable level of assurance as set out in ISAE 3000 for the purpose of devising the verification conclusion and the extent of this verification process undertaken was provided for the “core aspects” of the Global Reporting Initiative’s Sustainability Reporting Standards (“GRI Standards”), as well as the Environmental, Social and Governance (“ESG”) Reporting Guide of the Stock Exchange of Hong Kong Limited (“SEHK”) and ISO 26000 – Guidance on Social Responsibility.

In order to understand the process that Fuji Xerox (Hong Kong) adopted to ascertain the key sustainability issues and impacts, the Report compilation process was discussed including stakeholder engagement and materiality assessment processes. Also, system and process for collecting, collating and reporting sustainability performance data were verified. Our verification procedure performed covered reviewing of relevant documentation, interviewing responsible personnel with accountability for preparing the reporting contents and verifying the selected representative sample of data and information. Raw data and supporting evidence of the selected samples were also thoroughly examined during the verification process.

Independence

Fuji Xerox (Hong Kong) is responsible for the collection and presentation of the information presented. HKQAA does not involve in calculating, compiling, or in the development of the Report. Our verification activities are independent from Fuji Xerox (Hong Kong).

Conclusion

Based on the outcome of the verification process, it is confirmed that the Report has been prepared “in accordance” with the “Core Option” of the GRI Standards and covered the Key Performance Indicators of the SEHK’s 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 included factual statements and the data contained within the Report was accurate and reliable. It was 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 Division25 October 2017

Signed on behalf of Hong Kong Quality Assurance Agency

Feedback

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3. Sustainability performance

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Top CommitmentStrongGRI Content Index

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Fuji Xerox (Hong Kong) Limited – Sustainability Report 2017

Top CommitmentStrongGRI Content Index

Report Scope and ApproachKindOther, please specify:

Company ProfileInteresting

Corporate GovernanceCSR Indicators

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3C Creativity, Champion and Caring

3R+V Reliability, Responsiveness, Relationship and Value

5S Seiri, Seiton, Seiso, Seiketsu and Shitsuke

AEO Authorized Economic Operator

BEC Business Environment Council

BPO Business Process Optimization

CAGR Compounded Annual Growth Rate

CCM Customer Communications Management

CEO Chief Executive Officer

CO2 Carbon Dioxide

CORA Cloud Offering Risk Assessment

CoC Chain of Custody

CSA Cloud Security Alliance

CSR Corporate Social Responsibility

EDMS Electronic Document Management Solution

EIECI Enterprise Innovative Efficiency Capability Index

EMS Environmental Management System

EnMS Energy Management System

ESG Environmental, Social and Governance

FedRAMP Federal Risk and Authorization Management Program

FSC™ Forest Stewardship Council ®

Fuji Xerox Fuji Xerox Co., Ltd.

FY Fiscal Year

GRI Global Reporting Initiative

HKQAA Hong Kong Quality Assurance Agency

HR Human Resources

HRM Human Resource Management

HKSAR Hong Kong Special Administrative Region

iESG Intelligent Environmental, Social and Governance

ICT Information and Communications Technology

IDC International Data Corporation

IoT Internet of Things

ISAE International Standard on Assurance Engagement

ISO International Organization for Standardization

IT Information Technology

J-SOX Japanese Sarbanes-Oxley

L&D Learning & Development

MFDs Multi-function Devices

NGOs Non-governmental Organizations

PCI DSS Payment Card Industry Data Security Standard

PDCA Plan-Do-Check-Act

PMI Project Management Institute

PMP Project Management Professional

PRS Production Remote Services

R&D Research and Development

REACH

RoHS Restriction of Hazardous Substances

SDGs Sustainable Development Goals

SEHK Stock Exchange of Hong Kong Limited

SMC Senior Management Committee

SMEs Small and Medium-sized Enterprises

SMS Sustainability Management Services

TVP Technology Voucher Program

UN United Nations

WEEE Waste Electrical and Electronic Equipment

Glossary

Registration, Evaluation, Authorisation and Restriction of Chemicals


http://www.fujixerox.com.hk

Date of Issue: October 2017

© Fuji Xerox (Hong Kong) Limited 2017

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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Fuji Xerox (Hong Kong) Limited Sustainability Report 2017 · this Fuji Xerox (Hong Kong) Sustainability Report 2017. With hands connected, Fuji Xerox (Hong Kong) visions a brighter