Fuji Xerox is taking a number of measures to limit CO₂ emissions generated during logistics processes. In Japan, these efforts include reducing the number of delivery and improving load efficiencies through combined logistics, and safekeeping products in two warehouses, and we are also reducing the rate of air transport used for exports and imports.

We set a goal of 1.50 for CO₂ emission eco-efficiency (consolidated revenue divided by CO₂ emissions) for FY2007, but we achieved a rate of only 1.01, rather lower than the target. Our target for the rate of air transportation emission is below 30%, while the actual result is 43%.

Also, in FY2007, we introduced returnable delivery packaging and a round-trip delivery system, resulting in a substantial reduction in the volume of cardboard boxes used for shipping. We also continued to introduce cardboard palettes and achieved and eco-efficiency for new resource input of 1.59 in FY2007, reaching our goal.
We will continue making modal shifts in Japan while limiting the use of air transport and expanding the use of the round-trip delivery system overseas.

The conventional logistic system of Fuji Xerox was that the products shipped from foreign countries would be unloaded to the safekeeping warehouse in Tokyo and then be delivered to the whole country from Tokyo. Therefore, it was very difficult to reduce CO₂ emissions due to long transportation distances. In order to resolve this problem, Fuji Xerox established a new warehouse as a foothold in Osaka in May 2007 and introduced a new logistic system to carry the products for Western Japan area into Osaka warehouse and then deliver them to each location of Western Japan from Osaka. The CO₂ emissions limited by the establishment of two central warehouses was 2,106t in FY2007.

Furthermore, we achieved overall reduction of CO₂ emissions by 2,799t through initiatives, such as improvement in optimization and effectiveness of logistic networks, review of transportation routes, improvement of loading efficiency, reduction of delivery number and introduction of ecological car with lower CO₂ emissions. As a result, we achieved 4.0% of the CO₂ reductions, which is over the goal largely by 1.5%.

About 86% of CO₂ emissions generated from Fuji Xerox's logistics processes are the result of overseas logistics, including imports and exports. Especially the use of aircraft generates 37 times the CO₂ emissions of ships. We set a goal for ₂ emissions from aircraft of less than 50% of the total for FY2007 and finally achieved the goal by 43%. However, since the total transportation increased in FY2007 and the denominator of the calculation became larger than the original plan, we realized that it is necessary to set the goal of less than 30%, instead of 50%, which resulted in our failure to reach the goal.

In FY2006, Fuji Xerox introduced a round-trip delivery system that is developed jointly with Starway Co., Ltd. In delivering repair parts to service locations nationwide, reusable containers have been used in place of the cardboard boxes that previously were used only once and discarded. The containers are then collected and reused.
The returnable containers that are used for the system were designed specifically for Fuji Xerox and have the following characters.

• Can be folded so that nine containers fit into one pack, reducing the number of collections need.
• Feature a traceability system using RFID^* tags so that the location of individual containers can be confirmed and precise and rapid collection carried out.

Our original plan was set up premised on the possibility to collect 68% of the products to be delivered with these returnable containers. However, since there was only one size of the container, when we packed the product that does not fit the container size, unnecessary space was left. We have been suffered from such kind of transportation loss. Therefore, in September 2007, we added another two kinds of containers with different size. With the additional two size of returnable container, the coverage reaches 72%, which is more than the original plan of 68%.As a result, in FY2007, we reduced new resource input by 144.0t and cut CO₂ emissions by 124.7t.
Though it is not easy to change the packing material into returnable containers in China due to legal problems, we will promote the use of the system overseas in the future.

*RFID: (Radio frequency identification): Technology to exchange information through short-distance wireless communications via tags with embedded ID information using electromagnetic fields of radio waves.

We plan to manage CO₂ emissions in absolute terms as initiatives for reduction of CO₂ emissions. From viewpoint of reduction of CO₂ emissions generated during logistics processes, we plan to cooperate with production departments to minimize delay in production process while reducing the use of aircraft.
Since we managed to achieve 72% of coverage which is over our original plan by creating another two different size of returnable containers as initiatives for reducing packing material, we will continue to make efforts to maintain this coverage.