CSR Indicators regarding Engagement with Suppliers

Items

Companies

Fiscal 2015 performance

Fiscal 2016 performance

Fiscal 2017 goal/performance

Fiscal 2018 goal

Descriptions

Ratio of production materials suppliers with compliance rate of 90% or higher on “very important” items (among those completing Ethical Procurement Self-checklist)Note1

Suppliers in Japan and overseas

83.1%

94.1%

100% / 95.6%

100%

Description 1

Ratio of production materials suppliers with compliance rate of 90% or higher on “important” items (among those completing Ethical Procurement Self-checklist)Note1

54.1%

56.9%

100% / 68.2%

90%

Ratio of product logistics partners with compliance rate of 90% or higher on “very important” items (among those completing Ethical Procurement Self-checklist)Note2

First-tier logistics partners and sites in Japan and overseas Note3

99.3%

99.2%

100% / 97.3%

100%

Description 2

Ratio of indirect-materials suppliers with compliance rate of 90% or higher on “very important” items on the Ethical Procurement Self-checklistNote4

Suppliers in Japan and overseas

81.6%

90.7%

95% / 91.4%

95%

Description 3

Ratio of suppliers worldwide in full compliance with requirements of Fuji Xerox for paper procurement

All companies supplying paper to Fuji Xerox and affiliates in Japan and overseas

100%

100%

100% / 100%

100%

Description 4

Ratio of suppliers submitting conflict minerals report

Suppliers of components of key Fuji Xerox products

97.3%

96.5%

95% / 100%

95%

Description 5

Local content ratio for raw materials and parts at overseas production sites (China)

Fuji Xerox of Shenzhen, Fuji Xerox of Shanghai

67.9%

73.4%Note5

─ / 73.0%

Description 6

Local content ratio for raw materials and parts at overseas production sites (Vietnam)

Fuji Xerox Hai Phong

34.5%

45.0%

─ / 47.0%

  • Note1 For existing suppliers, results include companies that achieved a compliance rate of 90% or higher by devising and implementing improvement plans for the items of noncompliance in the previous year.
  • Note2 The ethical procurement self-checklist for product logistics partners consists of relevant questions from the checklist for production materials suppliers supplemented with items specifically tailored to the logistics field.
  • Note3 In fiscal 2015, we targeted logistics companies that deliver products to our customers both in and outside of Japan. In fiscal 2016, we targeted logistics companies that deliver products to customers in Japan, and primary business partners and offices that ship out the products from our manufacturing sites outside of Japan.
  • Note4 The ethical procurement self-checklist for indirect-materials suppliers was developed by extracting items from the self-checklist for production materials suppliers.
  • Note5 The Sustainability Report 2017 reported a figure of 71.6%, but upon recalculation this figure is corrected to 73.4%.

Details

 

Description of fiscal 2017 performance

Goals/challenges

Description 1

In fiscal 2017, we tried to understand the suppliers' CSR risks through buyers' checks and, in particular, to strengthen the expert teams who conduct visits and checks at the suppliers of our manufacturing sites outside of Japan. The percentage of suppliers with a compliance rate of 90% or higher on “very important” items improved by 1.5 points to 95.6% compared to the previous year. Compliance with “important” items improved by 11.3 points from the previous year to 68.2%.

We will continue efforts to improve the compliance rate for “important” and "very important" items. We will visit the actual sites of our suppliers to strengthen improvement efforts in order to respond solidly throughout the entire supply chain to the annually growing demand for compliance with CSR matters.

Description 2

Up until fiscal 2015, we asked logistics companies in and outside of Japan that deliver products to our customers to conduct self-checks. From fiscal 2016, as part of our overseas activities, we made a shift toward ensuring ethical procurement at logistics companies that ship out products from our company’s manufacturing sites, and stopped requesting self-checks to overseas logistics companies that deliver the products to the customers. In fiscal 2017, we just missed reaching 100% for the ratio of companies achieving a compliance rate of 90% or higher.

Awareness of our efforts is spreading among many of our suppliers. However, we continue to have issues in acquiring the understanding of new suppliers and offices, and of suppliers and offices where the management team or the persons responsible have changed. In fiscal 2018, we will continue to direct our activities toward logistics companies that deliver products to our customers in Japan, and to logistics companies that ship out products from our overseas manufacturing sites.

Description 3

We promoted activities to acquire an understanding of the CSR risks at our suppliers and to make improvements. These activities were performed by working together with the production materials procurement teams to send experts for visits and checks to the suppliers, and to have buyers conduct basic visits to suppliers on an ongoing basis. As a result, in fiscal 2017, the percentage of companies that achieved a compliance rate of 90% or higher improved by 0.7 points from the previous year; however, we fell short of achieving our goal.

We will continue to tackle various issues in the broad area of indirect materials, while also developing win-win relationships with our suppliers by supporting their efforts in making improvements.

Description 4

In fiscal 2012, we revised our paper procurement regulation standards, and have been requiring our paper suppliers to operate in a manner that places importance on CSR in their business activities. We have been checking the level of compliance with these standards since 2012 by hosting meetings attended by persons responsible for paper procurement and sales both in and outside of Japan. In fiscal 2017, we were able to confirm a 100% compliance rate at this meeting.

We will continue to check the compliance situation with regard to our paper procurement regulation standards at our suppliers, and strive to achieve sustainable paper procurement.

Description 5

In fiscal 2017, the understanding that we share with our suppliers and their cooperation deepened even further. As a result, the response rate from our suppliers reached 100%. Furthermore, among the smelters that we have designated in our supply chain, the ratio of smelters that acquired the conflict-free certification under the Responsible Minerals Initiative (RMI) and others reached 46.2%, which was an increase of 6.2 points from the previous year.

In fiscal 2018, we will continue to answer the demands of our customers and aim to achieve a response rate of 95% or higher.

Description 6

Local procurement rate in China was 73.0%, which was a decrease of 0.4 points from the previous year. Local procurement rate in Vietnam was 47.0%, which was an increase of 2.0 points from the previous year.

We will continue to conduct appropriate procurement and production, with considerations given toward the proportion of local procurement, in order to contribute toward the regional development of the areas where we operate.