The FUJIFILM Environmental Report/2001 Edition FUJIFILM Environmental Report/2001 Edition In order...

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The FUJIFILM Environmental Report/2001 Edition In order to protect and preserve the beauty of nature and her valuable resources so that they can be passed on to future generations, Fujifilm continually intensifies its earnest involvement in the resolution of environmental issues.

Transcript of The FUJIFILM Environmental Report/2001 Edition FUJIFILM Environmental Report/2001 Edition In order...

Page 1: The FUJIFILM Environmental Report/2001 Edition FUJIFILM Environmental Report/2001 Edition In order to protect and preserve the beauty of nature and her valuable resources so that they

The FUJIFILM Environmental Report/2001 Edition

In order to protect and preserve the beauty of nature and her valuable

resources so that they can be passed on to future generations,

Fujifilm continually intensifies its earnest involvement in the resolution

of environmental issues.

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CONCERNING THE DRAFTING OF THIS ENVIRONMENTAL REPORT

The purpose of this report is to identify the environmental impact of Fuji Photo Film Co., Ltd.

(Fujifilm)’s activities and products and to communicate the measures which it is taking to reduce

this impact. This report covers chiefly the Company’s activities between April 1, 2000 and

March 31, 2001. However, some earlier activity information is also provided as background,

along with our vision for the future and a range of consolidated information.

To align this report with global guidelines, it has been compiled with reference to the

Sustainability Reporting Guidelines published in June 2000 by the GRI (Global Reporting

Initiative).

Index

Opening Remarks ............................................................................................................... 1Corporate Overview ............................................................................................................ 2Outline of Environmental Activities...................................................................................... 3Fujifilm Responsible Care Activities and Achievements...................................................... 4Environmental Impact of Fujifilm’s Corporate Activities ...................................................... 5Current Status of Measures and Future Vision ................................................................... 6Responsible Care Policies, Organization, and Management .............................................. 7

What is Responsible Care?............................................................................................. 7Responsible Care and ISO 14001................................................................................... 7The Fujifilm Responsible Care Policy for Fiscal 2001 ..................................................... 8

Fujifilm Responsible Care Organizations and Management ............................................... 9Current Status of Acquisition of ISO 14001 Certification..................................................... 10Assessment of the Safety of Chemical Substances............................................................ 11Green Purchasing and Green Procurement........................................................................ 12Environment-Friendly Containers and Packaging ............................................................... 13Environment-Friendly Design and LCA ............................................................................... 14Environmental Education and Awareness-Raising Activities .............................................. 15Environmental Accounting for Fiscal 2000 .......................................................................... 16Reducing Environmental Impact ......................................................................................... 18

Reduction of VOC Emissions and Results of PRTR Survey ........................................... 18Zero Emissions................................................................................................................ 20Energy Saving and Curbing Global Warming.................................................................. 22

Environmental Monitoring.................................................................................................... 24On-the-Job Safety ............................................................................................................... 26Complaints .......................................................................................................................... 26Fujifilm Products and the Environment................................................................................ 27

Single-Use Cameras (Fujicolor QuickSnap).................................................................... 28Printing Systems ............................................................................................................. 30Imaging Systems............................................................................................................. 32Other Environment-Friendly Products ............................................................................. 33

Communication Activities .................................................................................................... 35Social Contribution Activities ............................................................................................... 37Environment-Related Awards.............................................................................................. 38Groupwide Environmental Efforts........................................................................................ 39Glossary .............................................................................................................................. 40Independent Review Report................................................................................................ 41

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OPENING REMARKS

As we enter the 21st century, the population of the world

continues to grow at an explosive rate. The current population of

more than 6 billion is expected to rise to 8 billion by 2020 and

exceed 10 billion by 2050. Population growth and lifestyle

changes spotlight the importance of the preservation and

protection of our natural resources, safely disposing of industrial

and household waste, and combating pollution caused by

chemical substances. As a global company, Fujifilm regards

resource preservation and protection to be the highest priority.

We believe it is essential to develop new energy- and resource-

saving technologies and to adopt progressive resource policies

at a global level. For Fujifilm, the biggest concerns of the 21st

century are, without a doubt, environmental awareness and

protection.

In the past, Fujifilm has centered its environmental policies on

three basic pillars: constantly giving due consideration to the

natural environment, ensuring safety with regard to chemicals,

and preventing the wasteful use of resources (source reduction).

To meet these obligations, Fujifilm follows a Responsible Care

program. Under Responsible Care, companies independently

set and pursue their own policies, targets, and standards for

environmental protection across the full spectrum of their

activities—from product development through manufacturing,

distribution, use, and waste disposal. Responsible Care is an

international protocol, and chemical companies across the world

have committed themselves to meeting its goals. Fujifilm

became a member of the Japan Responsible Care Council at

the time of the council’s establishment in 1995 and began to

publicize its Responsible Care activities. To support an

integrated environmental management system, Fujifilm began

obtaining ISO 14001 certification prior to Japan’s formal

adoption of the Environmental Management Standard in fiscal

1996. All of our main Japanese plants had obtained certification

before 1996.

Recently, Fujifilm has initiated additional action programs to

identify risks and hazards associated with chemicals, as part of

efforts to avoid or modify the use of chemicals identified in specific

classes. Risk management programs are regularly updated.

Our basic identification-awareness tool is our proprietary

Chemical and Environmental Safety Information Database.

Through our in-house network, such information is available to all

Company employees.

All our policies for reducing the environmental impact of our

activities are based on the following source-reduction measures:

◆ Designing products with low energy consumption,

◆ Reducing energy loss during product manufacturing,

◆ Reducing environmental impact arising from the use of

products, and

◆ Recovering parts for reuse and repair while creating waste-

free production cycles.

A very high level of technological expertise is needed to make

products environment-friendly while maintaining and improving

their quality and functionality. But Fujifilm is determined to meet

this challenge. A landmark achievement in this field is our

environment-friendly production process for the Fujicolor

QuickSnap single-use camera, which, in November 2000, won

the “Nikkei Superior Trendsetting Factories and Offices Awards

Millennium Award,” sponsored by the Nihon Keizai Shimbun

Company, and the “47th Okouchi Memorial Technology Prize,”

sponsored by the Okouchi Memorial Committee. We aim to

design all our products to make them as environment-friendly as

the Fujicolor QuickSnap, as we pursue source reduction.

Zero Emission initiatives also form part of our source-reduction

activities. Fujifilm already recycles all waste materials generated

in base-material processing at its four main Japanese plants,

and plans to achieve Zero Emissions for all waste products

generated by all domestic business bases, including the sales

division, by the end of fiscal 2002.

Under the resolute leadership of Fujifilm’s management, every

employee and organization within the Group is engaged in an

ongoing effort to make Fujifilm a company that works for the

environment and for product safety.

Minoru OhnishiChairman and Chief Executive Officer

Masayuki MuneyukiVice Chairman

Shigetaka KomoriPresident

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CORPORATE OVERVIEW

Name Fuji Photo Film Co., Ltd.

Establishment January 20, 1934

Head Office Nakanuma 210, Minami Ashigara-shi, Kanagawa Prefecture250-0190Tel: 0465-74-1111 (main switchboard)

Tokyo Head Office 2-26-30 Nishiazabu, Minato-ku, Tokyo 106-8620Tel: 03-3406-2111 (main switchboard)

Main Factories Ashigara Factory, Odawara Factory (both in KanagawaPrefecture)Fujinomiya Factory and Yoshida-Minami Factory (both inShizuoka Prefecture)

Capital ¥40,363 million (as of March 31, 2001)

Number of Employees 9,883 (parent only), 37,627 (Group) (as of March 31, 2001)*

Sales Volume ¥849.1 billion (parent only), ¥1,440.3 billion (Group)* (for fiscal year ended March 31, 2001)

Net Profit for Term Ended ¥63.1 billion (parent only), ¥102.7 billion (Group)*March 31, 2001

Subsidiaries and Consolidated subsidiaries: 98*Affiliates Non consolidated subsidiaries: 57*

Affiliates: 44*

* On March 30, 2001, Fuji Xerox became a consolidated subsidiary of Fujifilm, but is not included in fiscal 2000 financial statements.

Businesses

Imaging systems◆ Color printing paper◆ Motion picture film◆ Cameras◆ Digital cameras◆ Videotape, etc.

Photofinishing systems◆ Color printing paper◆ Pictro-printing paper◆ Developing chemicals◆ Machinery◆ Developing prints, etc.

Information systems◆ Platemaking film◆ PS plates◆ Printing machinery◆ X-ray film◆ Medical imaging machinery◆ Computer tape◆ Electronic display materials, etc.

40.5%

17.0%

42.5%

Overview of Fuj i f i lm’s Businesses in Fiscal 2001

Net sales in the period under review rose 3.9% from the previous

fiscal year, to ¥849.1 billion, reflecting launches of new products,

systems, services, and solutions, mainly in the digital imaging field,

including e-Picture products. Of that total, ¥513.5 billion was

generated by domestic sales, up 0.6%, and ¥335.6 billion was

generated by exports, up 9.4%. Exports accounted for 39.5% of

sales in the period under review. Recurring profit was ¥110.8

billion, up 7.5%, and net income was ¥63.1 billion, up 6.8%.

Performance per division was as follows.

Imaging systems

New product launches included the ZOOM MASTER 800 series

with 4th Color Layer Technology—a unique Fujifilm color film

technology—the SUPERIA 1600, and the FUJICHROME PROVIA

100F and 400F series of color reversal films with the finest grain in

the world.

New camera launches included the NEXIA 4100ix Z, the world’s

smallest and lightest APS camera with a 4x zoom lens, and the

FUJIFILM KLASSE, an easy-to-use 35-mm compact camera with

high image quality.

In instant camera products, the Instax mini 20 and other models

were added to the Cheki series.

In digital cameras, such new launches as the FinePix 40 i, which

can play MP3 audio, and the FinePix6800 Zoom, designed by The

Porsche Design Studio, were well received. Also, the FinePix

“Picture the Future” system, which links digital cameras with the

Internet, increased the fun and broadened the use of e-Pictures.

In commercial-use videotape, Fujifilm enhanced its lineup of

products with devices that are compatible with new digital formats.

Sales in this division rose 9.5%, to ¥344.0 billion.

Photofinishing systems

The Company enhanced its Frontier range of digital minilabs

incorporating a proprietary, solid-state laser system. Using the FDi

service, Fujifilm’s digital imaging service based on Frontier, the

Company is expanding the on-line usage of digital image prints,

enabling the creation of high-quality prints from digital film and digital

cameras and the transfer of photo images onto CDs (FUJICOLOR

CD). In this way, Fujifilm is facilitating the spread of e-Pictures.

Net sales in this division totaled ¥144.6 billion, up 14.9% year

on year.

Information systems

In equipment for printing and design systems, Fujifilm concentrated

on computer-to-plate (CTP) systems for the digitization of printing

processes. In diagnostic equipment, the Company launched its dry

imager for digitizing X-ray images as well as the medical imaging

network system SYNAPSE. In the mammography field, the

Company launched the FCR5000MA system, which makes possible

digital mammography image recording.

In information system products, Fujifilm launched the Kassai

series, which combines sophisticated thin-layer coating technology

with fine chemical technology.

In industrial materials, the Company enjoyed soaring sales of its

FUJITAC, WV FILM, and TRANSER LCD materials.

In data media, Fujifilm became the first company to launch

Ultrium-use tape for upgrading and expanding memory volume

based on Fujifilm’s proprietary Advanced Super-Thin-Layer and

High-Output Metal Media (ATOMM) technology. In this field,

Fujifilm has an industry-leading position. Net sales in the division

totaled ¥360.5 billion, down 4.4% from the previous fiscal year.

Sales breakdown (parent only) for the fiscal year ended March 31, 2001

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1975 • Entry into effect of London Convention for the prevention of ocean

pollution through the dumping of industrial and other waste

• Entry into effect of the Washington Convention governing international

trade in animals and plants considered to be in danger of extinction

• Entry into effect of the Ramsar Convention for the protection of

internationally important wetlands where waterfowl live

• Entry into effect of the World Heritage Convention for the protection of

cultural and natural heritage

1989 • Exxon Valdez incident

• Adoption of the Declaration of Helsinki (for the total abolition of

specified CFCs)

1992 • Entry into effect of Basel Convention restricting the removal and disposal

of hazardous waste products beyond national borders

• World Summit at Rio de Janeiro

• Amendment of Montreal Protocol

1993 • Entry into effect of the Conventional Biological Diversity Agreement

1994 • Entry into effect of the United Nations Convention to Combat

Desertification (UNCCD)

• Entry into effect of the Framework Convention on Climate Change

1995 • First meeting of signatories to the Framework Convention on Climate

Change (COP1) in Berlin, Germany

1996 • ISO international standards introduced

• Second meeting of signatories to the Framework Convention on Climate

Change (COP2) in Geneva, Switzerland

1997 • Third meeting of signatories to the Framework Convention on Climate

Change (COP3) in Kyoto, Japan

1998 • Fourth meeting of signatories to the Framework Convention on Climate

Change (COP4) in Buenos Aires, Argentina

1999 • Fifth meeting of signatories to the Framework Convention on Climate

Change (COP5) in Bonn, Germany

2000 • Sixth meeting of signatories to the Framework Convention on Climate

Change (COP6) in the Hague, Netherlands

• Adoption of protocols relating to preparations of Rio+10 at the 8th

meeting of the U.N. Commission on Sustainable Development (CSD8)

• Publication of Sustainable Reporting Guidelines by the GRI

2001 • Publication of evaluation report in the IPCC Third Assessment Report

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1970

1980

1990

2000

1970 • Creation of Environment and Safety divisions at factories

• Installation of activated sludge treatment facility at Ashigara Factory

1971 • Creation of Environmental Management Department at Head Office

1975 • Establishment of Fujifilm Material Safety Test Center

1983 • Establishment of Fujifilm Green Fund Public Trust

1986 • Launch of Fujicolor QuickSnap single-use camera

1989 • Establishment of the Environmental Safety Countermeasures Promotion

Committee

• Environmental Management Division renamed the Environment and

Safety Promotion Division

1990 • Establishment of the basic policy for environmental safety activities

• Introduction of cogeneration facilities at Ashigara Factory

• Fujicolor QuickSnap recycling center comes onstream (the establishment

of a system for recovery)

1991 • Compilation of guidelines for environment-friendly product development

• Beginning of the mutual supply of recovered parts from single-use

cameras with other companies

• Introduction of cogeneration facilities at Fujinomiya Factory

1992 • Compilation of guidelines for safety, hygiene, and environmental

protection at Fujifilm factories

• Launch of “inverse manufacturing system” for Fujicolor QuickSnap cameras

• Establishment of standards used for products with restricted substances

1993 • Complete end of use of CFCs of any kind in manufacturing

• Compilation of environment action plan

1994 • Establishment of Fujifilm environmental management system standards

• Establishment of Basic Policies on the Environment

1995 • Entry into Japan Responsible Care Council

• Environmental Protection Committee renamed Fujifilm Responsible Care

Committee

• Reuse and recycling of Fujicolor QuickSnap cameras begun at U.S. and

European factories

1996 • Publication of Fujifilm’s first environmental report

1998 • Construction of “inverse manufacturing system” factory for Fujicolor

QuickSnap cameras

• Signing of “Environmental Preservation Compliance Agreement” between

Ashigara Factory and Minami-Ashigara City

1999 • Drafting of Fujifilm’s Responsible Care management manual

• Fujifilm wins the “Coexistence with the Community” prize in the

“Corporate Social Contribution Awards” sponsored by the Asahi

Shimbun Foundation

• Fujifilm wins the “Earth Environment Committee Award for Corporate

Excellence” and the 8th “Global Environment Award” sponsored by the

Japan Industrial Journal

• Fujifilm wins the 17th “Superior Trendsetting Factories and Offices

Special Award,” sponsored by the Nihon Keizai Shimbun Company, for its

“inverse manufacturing system” for Fujicolor QuickSnap cameras

2000 • Fujifilm receives the fiscal 2000 “Excellent Consumer-Oriented Company

Commendation” from the Minister of International Trade and Industry

• Introduction of cogeneration facilities at Yoshida-Minami Factory

• Regeneration and reuse of all waste products from raw material

processing at the Yoshida-Minami and Fujinomiya factories and the

Miyanodai Technology Development Center

• Fujifilm wins the “Nikkei Superior Trendsetting Factories and Offices

Awards Millennium Award” sponsored by the Nihon Keizai Shimbun

Company, for its “inverse manufacturing system” for Fujicolor QuickSnap

cameras

• Fujifilm wins the fiscal 2000 “Global Warming Prevention Activities

Ministerial Commendation” sponsored by the Environment

Protection Agency

2001 • The “inverse manufacturing system” for Fujicolor QuickSnap cameras

wins the 47th Okouchi Memorial Technology Prize sponsored by the

Okouchi Memorial Committee

• Achievement of Zero Emissions of all waste products at Yoshida-Minami

Factory and Asaka Research Laboratories

• Yoshida-Minami Factory wins the fiscal 2000 “Prefectural Governor’s

Award for Merit in Industrial Waste Disposal ”

1970 • Enactment of water pollution legislation

• Enactment of industrial waste processing and cleaning legislation

1971 • Establishment of Environment Agency

1990 • Action plan for combating global warming

1991 • Enactment of legislation to promote the regeneration of resources

• Inclusion of Keidanren Global Environmental Charter

1993 • Enactment of basic environmental legislation, abolition of basic

legislation on pollution control

• Approval of basic environmental plan

1995 • Enactment of Container and Packaging Recycling Law

1998 • Enactment of legislation for the reuse of specified domestic appliances

• Enactment of legislation for the promotion of measures to control global

warming

1999 • Enactment of special legislation for the control of dioxins

• Enactment of the Chemical Substance Emission Management Promotion

Law

2000 • Full enactment of the Container and Packaging Recycling Law

• Establishment of basic legislation to promote a recycling-oriented society

• Amendment of legislation relating to the disposal and cleansing of waste

products (waste processing law)

• Amendment of legislation relating to the promotion of the reuse of

resources (recycling law)

• Enactment of the law promoting the reuse of building materials

(construction recycling law)

• Enactment of the law to promote the reuse of waste food (waste food

reuse law)

• Enactment of law promoting environment-friendly procurement by public

bodies (Green Purchasing Law)

• Publication by the Environment Protection Agency of guidelines for the

establishment of environmental accounting systems

2001 • Environment Protection Agency becomes Ministry of the Environment in

an overhaul of Japan’s bureaucracy

• Enactment of domestic appliance recycling legislation

• Enactment of Green Purchasing Law

• Publication of environmental reporting guidelines (2000 edition) and

environmental performance benchmarks for businesses by the Ministry

of the Environment

Fujifilm Japan Overseas

◆ Outline of Environmental Activities

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FUJIFILM RESPONSIBLE CARE ACTIVITIES AND ACHIEVEMENTS

Main Responsible Care Priorities in

Fiscal 2000

Arranging and strengthening management

systems based on ISO 14001

Enhancing risk management systems for chemical

substances

Enhancing chemical management systems to comply

with the PRTR Law

Enhancing Green Purchasing and Green Procurement

systems

Establishing an environmental accounting system

Setting up a system for reducing the environmental

impact of packaging

Improvement of environmental and safety performance

Reducing use of chemicals of environmental concern,

reducing emissions, developing alternatives to pollutants

Reducing emissions of VOCs into the atmosphere

Reduction of waste volumes, reuse, and regeneration of

resources to attain Zero Emission goals

Promote energy conservation measures and carbon

dioxide emission reduction measures

Appropriate communication with the community

Setting up a system to provide necessary environmental

and safety information to customers through enhanced

MSDS disclosure, etc.

Publicizing Fujifilm’s Responsible Care activities

through a more detailed environmental report and on

Fujifilm’s Web site

Progress in Fiscal 2000

We linked overseas subsidiaries with our recently completed chemical safety database.

We amended in-house rules to clarify the management of environmental hormones and other chemical

substances with unclear legal and pollutant status but that are the object of growing social concern.

We included in this report information relating to certain chemicals not subject to the PRTR Law, and

which are not PRTR-designated substances, which we are treating specially on our own initiative.

We have rewritten all our Material Safety Data Sheets (MSDS), covering approximately 1,000 materials,

to make them easier to understand, and have amended the content to bring it into conformity with PRTR

and other legislation. Our MSDS can be seen on our home page: http://www.fujifilm.co.jp/msds

We are working to reach our goal of 100% Green Purchasing and Green Procurement during fiscal 2003

(in fiscal 2000, we achieved a Green Purchasing rate of 52% and a Green Procurement rate of 66%). We

have set up a database to handle information relating to Green Purchasing, and are now able to calculate

the Green Purchasing rate at seven business bases in Japan.

With regard to Green Purchasing, we ask our suppliers of important base materials and parts to fill in a

questionnaire, which we use as a basis for calculating Green Procurement rates.

We established a new system for environmental accounting, using aggregated accounting. We included

environmental accounting statistics for fiscal 2000 using this system in this report.

We revised our standards in this area to bring us into clearer conformity with “reduce, reuse, and

recycle” practices. In fiscal 2000, we reduced paper packaging in domestic sales 315 tons compared

with fiscal 1999 and reduced the use of plastic containers and packaging 139 tons compared with fiscal

1999 (based on Container and Packaging Recycling Law definition).

We are working to revise standards and reduce emissions of Volatile Organic Chemicals (VOCs) into the

atmosphere. Progress has also been made in reducing specified CFC use and liquid waste processing at

customer sites.

We are working toward a goal of reducing atmospheric emissions of VOCs by fiscal 2002 50%

compared with fiscal 1996 levels. Over the last three years, we have reduced VOC emissions into the

atmosphere 750 tons. Taking account of increases due to expanded production, we have brought

emissions down from 3,300 tons in fiscal 1997 to 3,100 tons in fiscal 2000.

Zero Emission targets have been reached for all waste products generated by the Yoshida-Minami

Factory and Asaka Research Laboratories in fiscal 2000.

Zero Emissions of waste products from industrial base materials have also been achieved at the

Fujinomiya Factory and Miyanodai Technology Development Center.

Full operation of cogeneration facilities at the Yoshida-Minami Factory from January 2000 has

contributed to both energy saving and CO2 emission reduction. In fiscal 2000, our four domestic plants

subject to grade one energy management guidelines of the Ministry of Economy, Trade and Industry

achieved 4.4% savings in energy cost units, far in excess of the Ministry’s recommended 1%.

We linked affiliated and overseas units to our proprietary MSDS database.

In response to the enactment of the PRTR Law, the amendment of labor safety and hygiene legislation,

and decrees on highly toxic chemicals, we redrafted all of the approximately 1,000 items in our MSDS to

make them clearer and brought their content more closely in line with the law.

The MSDS are listed on our home page at: http://www/fujifilm.co.jp/msds

In the Fujifilm Environmental Report (1999 Fiscal Year Data Sheet) published in September 2000, we

outlined our environmental protection achievements in fiscal 1999. More information on Fujifilm’s

environmental activities can be found at:

http://www.fujifilm.co.jp/kankyo/index.html

We also publish site reports for the Ashigara and Fujinomiya factories.

See Pages*Self-

Rating

11

18, 19, 35

12

16, 17

13

11, 17, 18

18, 19

20, 21

22, 23

18, 35

35, 36

* Self-rating: satisfactory progress, some progress, unsatisfactory progress

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ENVIRONMENTAL IMPACT OF FUJIFILM’S CORPORATE ACTIVITIES

Resources UsedSilver (thousand tons per year) .............................................. 1.1

Gelatin (thousand tons per year) ........................................... 4.3

TAC (thousand tons per year)................................................ 11.9

Aluminum (thousand tons per year)....................................... 47.5

Paper container and packaging materials (tons per year) .... 8,406

Plastic container and packaging materials (tons per year) ... 3,843

Production OperationsWaste materials for incinerators/landfill sites

(thousand tons per year)...................................................... 4.6

Recycling rate (%).................................................................. 92.8

Energy source unit index ....................................................... 84.0(fiscal 1993=100 under energy-saving law)

CO2 emissions (thousand tons per year) ............................... 639.1

SOx emissions (tons per year)................................................ 467

NOx emissions (tons per year) ............................................... 658

Soot emissions (tons per year ).............................................. 28

Chemical Oxygen Demand (COD) emissions

(tons per year)...................................................................... 213

Industrial-use water (million tons per year) ............................ 49

WasteDischarge

DistributionReductions in CO2 emissions in fiscal 1999 (tons)................. 208(based on data supplied by FUJIFILM Logistics Co., Ltd.)

ProductsImaging systems

Color printing paper, motion picture film, cameras, digital

cameras, videotape, etc.

Photofinishing systems

Color printing paper, Pictro-printing paper, developing chemicals,

machinery, developing prints, etc.

Information systems

Platemaking film, presensitized plates, printing machinery, X-ray

film, medical imaging machinery, computer tape, electronic

display materials, etc.

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CURRENT STATUS OF MEASURES AND FUTURE VISION

A key principle of “Our Common Future,” published in 1987 by

the United Nations’ World Commission on Environment and

Development, is that “states shall conserve and use the

environment and natural resources for the benefit of present and

future generations.” This concept of sustainable development

was evolved further in 1992, which saw the adoption of a global

action plan for achieving sustainable development in the 21st

century—Agenda 21—at the Earth Summit held in Rio de

Janeiro. In recent years, environmental initiatives around the

world have generally followed Agenda 21’s lead in emphasizing

sustainable development.

Fujifilm will continue to conduct its business in the interests of

global sustainable development, following its three-pronged

policy of constantly giving due consideration to the natural

environment, ensuring safety with regard to chemicals, and

preventing the wasteful use of resources (source reduction).

Another key concept of the 21st century will be eco-efficiency,

which can be calculated using a formula in which environmental

burden is expressed as a ratio of a product’s quality, function,

and the services it renders—in other words, environmental

burden as measured over the product’s full life cycle. If the

environmental burden is a certain fraction of the cost of product

development, manufacture, and marketing, cost-efficiency is

achieved. Continually raising cost-efficiency and eco-efficiency

can be said to be the foundation of Fujifilm’s environmental

activities in the 21st century.

Our goal is to reduce the environmental burden of Fujifilm

products and production activities and bring our operations in

line with reduce, reuse, and recycle practices to the greatest

possible extent. By continually raising the eco-efficiency of

products created as part of our basic Imaging & Information

philosophy, we believe we are contributing to the cause of

sustainable development in the global environment. Fujifilm will

continue to seek ways of raising eco-efficiency in all of its

production processes, from R&D to waste disposal.

Below are examples of measures taken to date to raise eco-

efficiency:

1) Reduction of the volume of silver used in photosensitized

materials for photography

Over approximately 20 years, Fujifilm has reduced the amount of

silver used in color negative film by more than half, and the

amount of silver used in color print paper by around two-thirds.

Naturally, we continued to enhance product performance even

as we reduced silver levels. Photosensitized materials for

photography are the product of a reaction of silver nitrate and

halogen compounds in a gelatin aqueous solution. However,

very small changes in the type of halogen compound, mix of the

aqueous solution, type of gelatin, or temperature can have a

major impact on the quality of the photo. Only by achieving a

very careful mix of these variables is it possible to create high-

performing photosensitized materials for photography with very

small amounts of silver.

2) Reduction of the amount of developer needed for color

paper print films

Over approximately 10 years, Fujifilm has reduced the volume of

developer needed for color negative prints by more than half,

and for color paper prints by four-fifths. This too is a result of a

general review and improvement of the mix of constituents of

photosensitized materials as well as of the capabilities of

developing equipment. These measures have enabled us to

greatly reduce the amount of liquid waste from developing

processes.

3) Energy-saving design for Fujicolor QuickSnap

Since the launch of the Fujicolor QuickSnap, single-use camera

bodies have become slimmer and smaller, and other continual

design improvements have been undertaken. Current models

are approximately half the weight of the first Fujicolor QuickSnap.

In addition to such resource reduction policies, Fujifilm aims

to create products with still higher eco-efficiency through

environment-friendly designs.

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RESPONSIBLE CARE POLICIES, ORGANIZATION, AND MANAGEMENT

What is Responsible Care?

Responsible Care and ISO 14001

Responsible Care is an effort to ensure “environmental

preservation, safety, and health” throughout the entire life cycle

of a product by means of voluntary management efforts by

business operators. In more concrete terms, Responsible Care is

an effort to which each country of the world is devoting itself and

whose main points are: a) the making of a pledge, in one’s

operational policy, to ensure environmental preservation and

safety throughout the total business process, from product

development through production, distribution, and use to waste

disposal; b) the implementation of countermeasures; and c) the

planning of improvements. The comprehensive effort, referred to

as Responsible Care, that comprises these main points is based

on a foundation of self-determination and self-responsibility on

the part of business operators.

The Japan Chemical Industry Association established the

Japan Responsible Care Council in 1995. Fujifilm immediately

took a Japan Responsible Care Council Responsible Care

Implementation Oath and became a member. In order to ensure

the preservation of the beauty of nature and her valuable

resources, we established a Fujifilm Responsible Care Policy

and are earnestly devoting ourselves to the efforts set forth in

that policy.

Fujifilm’s basic philosophy in its environmental stance is realizing

the goals of Responsible Care through the establishment of and

adherence to management norms that conform with ISO 14001

standards. Fujifilm has a policy of setting even tougher targets in

its voluntary environmental initiatives than those required by law.

We pursue continuous improvement by repeating the PDCA cycle

through the effective use of ISO 14001 standards as a

management tool.

◆ Implementation of Fujifilm Responsible Care Audits◆ Review of High-Priority Implementation Items by Fujifilm Responsible Care Committee◆ Taking Corrective Measures

◆ Establishment of Implementation Plans by Specified Issues Promotion Committees◆ Establishment of Responsible Care Measures by Each Organization

◆ Fujifilm Responsible Care Committee◆ Specified Issues Promotion Committees◆ Environment and Safety Divisions at Business Locations (under the Jurisdiction of the Fujifilm Responsible Care Committee)

◆ Execution of Implementation Plans by Specified Issues Promotion Committees◆ Promotion of Responsible Care Implementation Plans by Each Organization

◆ Distribution of the Environmental Report◆ Public Disclosure of Performance by Each Organization and Dialogues with Communities◆ Public Disclosure of Information via the Internet

◆ Creation of Responsible Care Annual Reports by Each Organization◆ Creation of Implementation Reports by the Specified Issues Promotion Committees

ACT

CHECK PLAN

DO

Company President’s Oath

Establishment of Policy

Audits and Assessments

Creation of Reports

Arrangement of Systems

Establishment of Implementation Plans

Implementation

Public Announcement of Results & Dialogues with

Communities

Fujifilm’s Responsible Care Procedures

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The Fuj i f i lm Responsible Care Pol icy for Fiscal 2001

1. Fundamental Policy

Through voluntary, continuous dedication to Responsible Care

efforts, each and every employee will strive to realize a “sound

Fujifilm committed to environmental protection and safety.”

2. Action Guidelines

(A) Consider environmental, economic, and social aspects and

devote ourselves to measures for ensuring sustainability.

(B) Comply with the law and all other agreed-upon requirements.

(C) Strive to reduce environmental impact and ensure safety by

taking into consideration every stage of the product life

cycle, including selection and procurement of raw materials,

manufacturing, distribution, product use, and product

disposal.

(D) Achieve Zero Emissions.

(E) Conduct operations with no accidents and no disasters.

(F) Actively provide information, maintain appropriate

communication, and strengthen partnerships with concerned

parties outside the Company.

3. Priority Implementation Items

(A) Organizing and Strengthening Management Systems

Based on ISO 14001 Standards

(a) Continuously improve our management of chemical

substances.

(b) Strengthen our “Green Purchasing” and “Green

Procurement” systems for raw materials, machines,

fixtures, supplies, etc.

(c) Construct environmental accounting systems.

(d) Establish a system for reducing environmental impact

related to containers and packaging.

(e) Establish a management system for environment-

conscious designing.

(f) Establish a management system for Responsible Care

education.

(B) Improvement of Environmental and Safety Performance

(a) Mitigate risk by reducing usage of chemical substances of

concern, reducing emissions, and developing alternative

substances, etc.

(b) Reduce the amount of volatile organic compounds emitted

into the air. *1

(c) Promote the reduction of waste disposal, reuse, and

recycling and achieve Zero Emissions. *2

(d) Promote energy conservation and measures for reducing

carbon dioxide emissions. *3

(e) Strengthen environmental monitoring at manufacturing sites.

Quantitative Performance Goals for Fuji Photo Film, Ltd.*1 Reduce the amount of volatile organic compounds emitted into the air 50%

by the fiscal year 2002 (compared with fiscal year 1996).*2 Reduce waste material incinerated or disposed of in landfills at each site to

zero by fiscal year 2002.*3 Implement measures to reduce carbon dioxide emissions by at least 51,000

C tons /year, by fiscal year 2010. (This reduction amount is equivalent to26% of the amount of carbon dioxide emitted in fiscal year 1998.)

(C) Ensuring Appropriate Communication and Strengthening

Partnerships with Concerned Parties outside the Company

(a) Establish systems for appropriately providing necessary

environmental and safety information to concerned parties

outside the Company, such as uti l izing MSDS for

information disclosure.

(b) Enrich contents of environmental reports, issue site

reports, utilize Fujifilm’s Web site to adequately and

actively communicate the Company’s Responsible Care

efforts to the public.

(c) Actively cooperate with governmental and industrial

activities as well as participate in community activities.

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As a manufacturer handling chemical products, Fujifilm has been

involved in environmental initiatives from an early stage. In 1970, it

set up environmental and safety management divisions in its

factories and in its headquarters in 1971. Currently, the Company

has environment and safety officers deployed in every business

and research facility who are responsible for key line organizations.

Furthermore, in 1989 an environment and safety committee

was established as a cross-organization executive-level body to

promote environmental and safety issues across the Group. In

1995, this committee became the Fujifilm Responsible Care

Committee when the Company joined the Japan Responsible

Care Council, and set clear Responsible Care goals for the

Company. Action teams have been set up under the Fujifilm

Responsible Care Committee to further Responsible Care

interests across the Company.

The Fuj i f i lm Responsible Care Promotion System

Linear Organization (Organization by Vertical Order)

Committee Organization (Organization by Horizontal Order)

Company President

Fujifilm Responsible Care CommitteeCommittee Chairman Director in Charge of the Environment (Senior Vice President)Members Concerned Executive OfficersSecretariat General Manager of the Environmental Protection & Products Safety Division

Specified Issues Promotion Committees

• Green Purchasing Promotion Committee• Committee for the Promotion of the Green Procurement of Raw Materials• Zero Emissions Promotion Committee• Energy-Saving and Carbonic Gas Reduction Promotion Committee• Packaging Responsible Care Promotion Committee• Promotion Committee for Setting Basic Principles for Environmental Accounting• Promotion Committee for Establishing Methods for Life Cycle Assessment (LCA) Standards• Fujifilm Responsible Care Educational Activities Committee• Promotion Committee for Establishing Environmental Accounting Systems

Fujifilm Responsible Care Audit Committee

Director in Charge of the Environment

Environmental Protection & Products Safety Division

Material Safety Test Center

General Manager of Each Marketing Division

Person(s) in Charge of Environmental Affairs

General Manager of Each Factory

Division in Charge of Environment & Safety

Environment & Safety Department

General Manager of Each Business Location

Person(s) in Charge of Environmental Affairs

General Manager of Each Research Laboratory

Person(s) in Charge of Environmental Affairs

◆ Fujifilm Responsible Care Organization and Management

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Fujifilm has long regarded acquisition of ISO 14001 certification

as a priority in its Responsible Care program and has been active

in this area from an early stage. The first facility was certified in

August 1996. By January 1997, all four factories in Japan had

been certif ied, and we are now working to acquire the

certification of domestic and overseas subsidiaries and affiliates.

In fiscal 2000, two more business locations acquired certification,

bringing the total number of certified sites to 23. ISO 14001

certification has also been acquired by Panac Industries, Inc., a

partner company that recovers and recycles film base materials

and silver, and by Nankai Co., Ltd., to which we consign recovery

and processing of used Fujicolor QuickSnap single-use cameras.

We are preparing to obtain certification for our marketing and

logistics companies, and in 2003, we plan to obtain ISO 14001

certification through a single environmental management system

(EMS) for the whole Group.

Current Status of Acquisi t ion of ISO 14001 Cert i f icat ion

■ Okaya Fuji Koki Co., Ltd. (March 1998)The assembly of photographic and printing equipment and the processing of precision plate metals

■ Fuji Photo Film Co., Ltd.Yoshida-Minami Factory (January 1997)The research, development, and manufacture of the platemaking materials (PS plates) used in offset printing

■ Fuji Photo Film Co., Ltd.Fujinomiya Factory (August 1996)The manufacture of the paper base for photographic prints, information recording paper (pressure-sensitive and thermo-sensitive paper), X-ray film, etc.

■ Fujifilm Arch Co., Ltd.Shizuoka Factory (June 1998)The manufacture and marketing of photoresists for semiconductors, color filter materials for LCDs, and other such photosensitized materials for the electronics industry

■ Sano Fuji Koki Co., Ltd. (March 1998)The machine processing and assembly of precision equipment as well as the design and special processing of metal molds for various optical parts

■ Fujifilm Microdevices Co., Ltd. (March 2000)The manufacture of such large-scale integration (LSI) products as charge-coupled devices (CCDs) for digital cameras and image signal processing ICs for the construction of digital imaging and multimedia systems

■ Fuji Photo Film Co., Ltd.Miyanodai Technology Development Center (March 1998)The R&D of equipment for medical imaging diagnosis, color photos, and printing systems

■ Fuji Photo Optical Co., Ltd. (January 1998)The production of cameras and photographic and printing equipment as well as the production and marketing of such optical equipment as lenses and medical equipment

■ Fuji Photo Film Co., Ltd.Asaka Research Laboratories (March 1999)The research, development, and manufacture of clinical examination systems utilizing the medical diagnostic film format

■ Fuji Photo Equipment Co., Ltd. (March 1998)The development of imaging systems for the medical, printing, and imaging fields as well as the manufacture of functional packaging materials for photography

■ Fuji Photo Film Co., Ltd.Ashigara Factory (December 1996)The manufacture of photosensitized materials for photography, such as films and print paper, as well as industrial materials

■ Fuji Photo Film Co., Ltd.Odawara Factory (October 1996)The manufacture of recording media, silver nitrate, photographic chemicals, and film for LCDs

■ Fujifilm Photonix Co., Ltd. (April 1999)The manufacture of such electronic imaging equipment as digital still cameras

■ Fuji Technics Co., Ltd. (April 2000)Processing of industrial-use light-sensitive materials, such as information processing pressure-sensitive and thermo-sensitive paper, printing-use markup film, and industrial-use X-ray film

■ Mito Fuji Koki Co., Ltd. (January 1998)The assembly of medium-sized cameras and the processing and assembly of lenses

The dates in parentheses show when certification was acquired.

Sites that acquired certification in fiscal 2000

■ Fuji Graphic Systems Canada, Inc. (Canada) (December, 1998)The marketing of PS plates used in printing

■ Fuji Photo Film da Amazonia, Ltda. (Brazil) (November 1998)The manufacture of photosensitized materials for photography

■ Fuji Photo Film do Brasil, Ltda. (Brazil) (December 1998)The manufacture of photosensitized materials for photography

■ Fuji Hunt Photographic Chemicals, Inc. (USA) (September 1997)The production and marketing of photoprocessing chemicals

■ Fuji Magnetics G.m.b.H. (Germany) (October 1999)The manufacture and marketing of recording media products

■ Fuji Photo Film B.V. (Holland) (November 1997)The manufacture of films and platemaking materials (PS plates)

■ Fujifilm Imaging Systems (Suzhou) Co., Ltd.(China) (October 2000)

■ Fuji Photo Film, Inc. (USA) (April 1999)The manufacture of films, PS plates used in offset printing, and videotape

◆ Certified sites in Japan: 15

◆ Certified sites overseas: 8

The following business locations acquired ISO 14001 certification in fiscal 2001 (as of June 30, 2001)

■ Fuji Hunt Photographic Chemicals Pte. Ltd. (Singapore) (April 2001)

The manufacture and marketing of chemicals for photosensitized materials used inphotography, etc.■ Fuji Photo Film Canada, Inc. (Canada) (June 2001)

The marketing of photosensitized materials for photography, etc.■ Fuji Magne-Disk Co., Ltd. (Chofu City, Tokyo) (June 2001)

The manufacture of floppy disks and CD-ROMs as well as computer-media userservices

The increase in the number of business sites reflects a broadening of thescope of certification compared with the Fujifilm Environmental Report 2000.

◆ Current Status of Acquisition of ISO 14001 Certification

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11

ASSESSMENT OF THE SAFETY OF CHEMICAL SUBSTANCES

Safety Test ing at the Fuj i f i lm Mater ia l Safety Test Center

Risk Management Based on Our Database

Biodegradation test

Chromosomal aberration test

Safety Tests

◆ Ames Test ◆ Skin Irritation Test◆ Chromosomal ◆ Skin Sensitization Test

Aberration Test ◆ Biodegradation Test◆ Micronucleus Test ◆ Bioaccumulation Test◆ Acute Toxicity Test ◆ Explosion Danger Test◆ Subacute Toxicity Test

Safety Testing Chemical and Environmental Safety Information Database

Examination of Hazards and Legal Aspects

Risk Assessment

Review

Risk Management

Risk Management Classification

We have established a four-level safety standard ranking for chemical substances.

Contents of the Chemical and Environmental Safety Information Database(1) Laws in Japan, the United States, and Europe, including ordinances in each state of the United States as well as Europe(2) Toxicity, ignitability, and other hazards(3) Physiochemical properties

Access

Database

Fujifilm has developed a proprietary database containinginformation on Japanese and overseas legal provisions for morethan 70,000 commonly found chemical substances. In fiscal2000, we completed our database for the safety classification ofchemical substances used by Fujifilm and linked overseassubsidiaries with it. Based on this database and other resources,we carried out a four-level safety standard ranking (C1-C4) of theroughly 3,600 chemical substances in use at Fujifilm, inaccordance with the “Basic Provisions for the Environmental andSafety Management of Chemical Substances” established byFujifilm. In fiscal 2000, we revised this principle so that it not onlycovers the hazards and legal aspects of chemical substancesbut also lays down management practices for chemicalsubstances of rising social concern, such as environmentalhormones. In the case of chemicals vital to our operations, wecarry out priority risk evaluations and make continual changes

and improvements to their management in line with ISO 14001standards. In f iscal 2001, we broadened the scope ofapplication of the “Basic Provisions for the Environmental andSafety Management of Chemical Substances” and beganintroducing a single unified standard for chemical substances forFujifilm Group bases in Japan and abroad as they develop theirbusiness globally.Fujifilm Chemical Substance Risk Classification

C1 C2 C3 C4

Special- Prohibited Use prohibited — — —managed

Restricted Subject to risk-avoidance direc- — —tives and/or special restrictions

Risk-managed Risk management according —to established procedure

General-managed Managed according tointernal-use MSDS

At our Material Safety Test Center, which was established in1975, diverse safety tests are carried out for all of the chemicalsubstances in use at Fujifilm. When new chemical substancesare produced, we report the appropriate safety test data, andthe substances are examined and registered by the Ministry ofEconomy, Trade and Industry and the Ministry of Health, Laborand Welfare in accordance with the “Law Concerning theExamination and Regulation of Manufacture, etc., of Chemicalsubstances” and by the Ministry of Health, Labor and Welfare inaccordance with the “Labor Safety and Health Law.” At ouroverseas business locations as well, chemical substancesundergo similar statutory examinations. Our Material Safety TestCenter has been certified as meeting the Good LaboratoryPractice (GLP) standards of the Ministry of Economy, Trade andIndustry and the Ministry of Health, Labor and Welfare.

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GREEN PURCHASING AND GREEN PROCUREMENT

In February 2000, the Fujifilm Group announced the launch of

Green Purchasing and Green Procurement activities. In

purchasing raw materials and items for everyday operation,

making the right choice of supplier and product type are

important factors in environmental preservation. Among the

economic activit ies of any company, purchasing and

procurement also have environmental aspects that have to be

taken into account. In light of this, we are vigorously pursuing

Green Purchasing and Green Procurement.

At Fujifilm, a Green Purchasing Promotion Committee and a

Committee for the Promotion of the Green Procurement of Raw

Materials have been set up under the Fujifilm Responsible Care

Committee as Specified Issues Promotion Committees. In fiscal

2000, the Committee for the Promotion of the Green Procurement

of Raw Materials researched ordered materials and parts

through a questionnaire sent to suppliers. The questionnaire was

sent to suppliers who, altogether, accounted for 70% of the total

value of all materials and parts purchased (including chemical

feedstock) and 80% of packaging materials purchased.

Suppliers were assessed according to 14 measurements,

including the observance of environmental safety legislation and

avoidance of use of specially classified chemical substances in

their raw materials. The Green Procurement Rate reflects the

proportion of suppliers who met these requirements; at the end

of fiscal 2000 it stood at 66%. The Committee for the Promotion

of the Green Procurement of Raw Materials is aiming for 100%

Green Procurement in parts and materials, including chemical

feedstock, and packaging materials by the end of fiscal 2003.

The Green Purchasing Promotion Committee applies its Green

Purchasing Rate to Fujifilm’s seven Japanese production and

research locations (Fujifilm Tokyo head office, four factories, and

two R&D laboratories). The rate, which is calculated by processing

database information, was 52% at the end of fiscal 2000. The

Committee aims to achieve a Green Purchasing rate of 100% by the

end of fiscal 2003. It is also encouraging the purchase of certain

substances not included in the calculation of the Green Purchasing

rate. Fujifilm plans to expand the Green Purchasing monitoring

program to marketing businesses and affiliates in Japan.

Green Procurement Rate

The proportion of Fujifilm suppliers meeting Green Procurement

standards set by the Committee for the Promotion of the Green

Procurement of Raw Materials is assessed based on the results

of a questionnaire. The questionnaire is sent out by Fujifilm, Fuji

Photo Equipment Co., Ltd., and Fuji Photo Optical Co., Ltd.

Green Purchasing Rate

This rate is the proportion of funds spent on environmentally

sound products compared with total purchasing expenditures.

Products covered by the Green Purchasing Ratio include office

equipment, printing paper, copiers, printers, fax machines, PCs,

stationery, office-use materials, and everyday products.

What are Green Purchasing and Green Procurement?

Market

Environmentally aware consumersContinuous improvement

Company with good environmental protection record

Quality/price/function/safety

+ Environment

• Products with low environmental burden

• Eco-design

Preferential purchase

Assessment of corporate environmen

t

Green Purchasing

Green Procurement

Putting priority on environment-friendliness when buying products or services

Procurement of materials and parts that have little environmental impact from suppliers who take care to respect the environment

12

The Fujifilm Group’s Green Purchasing andProcurement handbook

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0

2,000

4,000

6,000

8,000

10,000

1998 1999(Fiscal year)

Paper containers and packaging

2000

Volumes of containers and packaging used in Japan (Tons)

Plastic containers and packaging

8,701

4,283

8,721

3,982

8,406

3,843

ENVIRONMENT-FRIENDLY CONTAINERS AND PACKAGING

1. The Container and Packaging Recycling Law

On April 1, 2000, Japan’s Container and Packaging Recycling

Law came into full effect. This law is designed to reduce the

volume of container and packaging materials, which account for

some 60% by volume of all household garbage, and encourage

the recycling of garbage into reusable materials.

Fujifilm products use large amounts of paper and plastic

packaging of the type designated for compulsory recycling by

the law. Therefore, we have decided to assume the expenses of

calculating what volume of packaging needs to be recycled

under the law and of entrusting the recycling work to Japan

Container and Packaging Recycling Association.

2. Progress in Reducing Container and Packaging Garbage

The basic policy of reducing packaging waste consists of the

3Rs, reduce, reuse, and recycle. Fujifilm applies these principles

as effectively as possible according to the nature of the product;

however, it places priority on reduction, to keep the environmental

burden to a minimum.

◆ Example of reduction

Fujifilm has stopped using plastic cases for APS films and has

substituted them with aluminum steam-adhesive packaging to

reduce the environmental burden. The changeover was

completed in May 2001.

◆ Example of reuse

We reuse cartridges (developing and fixing solution containers)

for the CEPROS automatic developing system for medical-use

film, after recovering them from hospitals all over the country and

cleaning and inspecting them.

◆ Example of recycling

Plastic film cases are recovered from large laboratories,

shredded, and reused as base materials for other Fujifilm

products.

In fiscal 2000, we reduced the volume of paper containers and

packaging generated by domestic marketing activities by 315

tons and the volume of plastic containers and packaging by 139

tons (in both cases, compared with fiscal 1999, and based on the

definitions of the Container and Packaging Recycling Law).

3. Further Reducing Packaging

• Standards for the assessment of the environmental impact of

packaging

In 1995, Fujifilm established standards for assessing the

environmental burden of its packaging in semi-quantifiable

terms. In 2001, this standard was revised, making possible

clearer comparisons of old and new products and furthering the

cause of reducing the environmental burden.

• Container and packaging database

Before, container and packaging databases were operated

separately by each department, but now a single system serving

the whole Company is under development. This will make it

possible to integrate packaging material purchase management

systems and LCA inventory data, helping us create more

environment-friendly designs for containers and packaging. The

system is scheduled to come on stream in 2002.

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1. What is Environment-Friendly Design?

Since its foundation, Fujifilm has always stressed environment-

friendliness and safety in its own operations and with respect to

the product user. We have also made every effort to save

resources by following the 3R principle, as typified by our

Fujicolor QuickSnap single-use camera. In fiscal 2001, based on

our experiences, we made our basic environment-friendly design

principles and LCA practices still more thoroughgoing with

regard to environment-friendliness, as detailed below.

1) We are prioritizing and enhancing environmental quality to

create even higher-quality products.

2) We are working to introduce environment-friendly design

based on the 3Rs, risk assessment, and LCA at all stages of a

product’s life cycle, from the purchase of raw materials through

manufacture, distribution, use, discarding, and final disposal. We

are assessing the degree to which environment-friendly design

standards are met at every stage of product development.

3) We are establishing a unified LCA procedure for the whole

Company, for use in evaluation purposes at every stage of

product development, and whenever changes are made to

production methods.

14

ENVIRONMENT-FRIENDLY DESIGN AND LCA

2. Environment-Friendly Design over Full Life Cycle of a Product

Purchase Manufacture Packaging Distribution Use

Reuse/Recycle Transportation

Discarding Final Disposal

3. LCA Program (software currently under development)

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Fujifilm Responsible Care Educational Activities

The Fujifilm Organizing Committee for Responsible Care Education

Programs, a standing committee under the Fujifilm Responsible Care

Committee, plans and promotes environmental educational activities

throughout the Company. It carefully monitors societal attitudes

toward the environment and, each fiscal year, drafts educational

programs for the whole Company. These programs consist of an

introductory course for new employees, a course for management

staff, a course for EHS technical staff, and a course for regular

employees. Topics covered in the introductory course are the history

of Fujifilm’s Responsible Care activities and its stance toward current

and future environmental issues. In the managers’ course, topics

covered include overall trends inside and outside the Company

relating to Responsible Care matters as well as the enactment and

amendment of legislation. The course of EHS technical staff deals

with Fujifilm’s rules for managing chemical substances and database

operation as well as associated legal issues. In this way, Fujifilm is

working to raise environmental awareness throughout the Company.

These courses are conducted every fiscal year. The results are

reported to the Committee and are reflected in the programs for the

following fiscal year after due deliberation.

Fujifilm Responsible Care Policy Notices

To ensure all employees are aware of Fujifilm Responsible Care

Committee’s policies, posters displaying Responsible Care

information are compiled and hung up in every office. In fiscal

2001, these posters were also displayed at subsidiaries, in line

with the expansion of the scope of the Fujifilm Responsible Care

Committee’s policies.

Environmental Educational Activities in Factories

Fujifilm has developed its own educational program for raising

the awareness of environmental safety in factories, where

workers are confronted with many more environmental issues

than elsewhere in the Company. The Ashigara Factory compiles

an environmental handbook, organizes environmental protection

weeks to enhance education, and publishes a quarterly

newsletter, “EA Ashigara.” The Fujinomiya Factory regularly

publishes an environment manual and a newsletter, “Green

Fujinomiya,” and bases its environmental education activities on

these publications. It also organizes an environmental protection

month (June), in which priorities are established and the

environmental awareness of all employees is raised through

various activities.

15

ENVIRONMENTAL EDUCATION AND AWARENESS-RAISING ACTIVITIES

Fujifilm Responsible Care policy notices

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ENVIRONMENTAL ACCOUNTING FOR FISCAL 2000

Considering the balance between environmental protection and

economic feasibility is extremely important for ensuring the

sustainable development of society and companies. In the past,

however, environmental protection was not considered within the

framework of corporate accounting, as companies did not

quantify the relationship between it and economic feasibility.

Environmental accounting is a new type of calculation system

that transcends the limits of traditional corporate accounting,

under which companies were evaluated only from an economic

perspective. At present, environmental accounting aggregation

methods are still in the trial phase and remain incomplete. Fujifilm

commenced aggregations for environmental auditing in fiscal

1998 and organized the Committee for Establishing Environmental

Auditing to accurately assess the actual state of that auditing. We

are now progressing with Companywide activities in this area.

While adopting the fundamental principles embodied in

guidelines issued by the Ministry of the Environment, Fujifilm’s

environmental accounting for fiscal 2000, as shown below, has

been broken down into even more detailed categories and

incorporates the unique features of its own approach to

environmental protection. This includes 1) emphasizing

prevention measures rather than countermeasures for sewage

and 2) placing higher priority on reduction than on reuse and

recycling. As one trial measure implemented in fiscal 2000, to

promote an easy understanding of the effects of our

environmental protection measures, we converted into monetary

values the volume of reductions in environmental burden and

displayed these values.

1. Environmental accounting principles

■ Purpose of environmental accounting

1) Environmental accounting provides environmental information

that is expressed in terms of quantitative values that assist

decision making by managers.

2) Environmental accounting is used to provide accurate

information to related internal and external parties

(stakeholders).

■ Basic policies of environmental accounting

We refer to the Ministry of the Environment’s Toward the

Establishment of an Environmental Accounting System, Annual

Report 2000.

■ Scope of application of aggregation

Fuji Photo Film Co., Ltd.

■ Period covered by aggregation

Fiscal 2000: April 1, 2000 to March 31, 2001

■ Aggregation method

1) Calculations for depreciation are made using the straight-line

method over a three-year period.

2) The effects are recorded for the depreciation period, with

aggregation being made over the three-year period beginning

with the introduction of facilities.

3) Environmental costs contained in comprehensive costs* are

aggregated by a proportional calculation as determined by the

purpose of expenditures.

*Comprehensive costs incorporate capital investments and necessaryexpenses that are made for purposes other than environmental protection.

2. Considerations

A notable feature of the aggregated results is that 94% of

environmental expenses—excluding those made for adhering to

laws and regulations—were for preventive measures. This

highlights the Company’s strong emphasis on preventive

measures.

The ideal form of environmental accounting currently

envisioned by the Company is to evaluate all effects for all

environmental protection costs on a monetary basis. This will

allow us to ascertain and evaluate the balance between the

costs and effects of environmental protection outlays. At present,

however, the number of environment burden categories that can

be objectively evaluated on a monetary basis is limited. From

fiscal 2000, we began converting—on a trial basis—the

environmental burden into a monetary value to the greatest

extent that conversion values could be obtained.

Fujifilm will continue working to raise the accuracy of such

information to promote an easier understanding of its

environmental activities. Concurrently, we aim to provide reference

materials that will assist managers with their decision making.

As shown on the following page, Fujifilm’s expenses for

environmental protection in fiscal 2000 amounted to ¥30.3 billion,

and the economic effects of these expenditures totaled ¥29.9 bil-

lion. The environmental burden reduction effects that could be

converted into monetary values amounted to ¥14.0 billion.

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17

◆ Fiscal 2000 Environmental Accounting Tabulation Aggregation Chart

Value unit: ¥100 million

Total Environment Protection Costs Economic Effects Environment Protection Effects

Volume ofreduction in Converted

Amount environmental monetaryCategory Principal approach invested Cost Principal effects Amount Principal effects burden value

A. Area costs within businesses

1) Pollution preventiona) Adherence to laws Maintenance and operation of facilities 3.8 18.2 Reductions of fines for 0.1 SOx reductions 125.1 tons 0.4

for treating wastewater and exhaust gas (6.0%) pollutionb) Pollution prevention Reduce VOC emissions 36.9 33.0 Reduce the volume 2.4 Reduction of VOC emis- 750.2 tons 3.9

Reduce volume of wastewater (10.9%) of wastewater treated *1 sions into the environment2) Protection of the Progress with energy conservation 21.1 11.1 Conservation of energy *2 8.8 Reduction in the volume 51.4 tons 4.1

earth’s environment Reduce the number of devices that (3.7%) of CO2 emissions into 5.1 tons @use CFCs the environment

Reduction of the volume of CFCs used

3) Resource recyclinga) Reduce Use energy-saving designs for reducing 29.1 32.0 Reduce raw materials used 180.5 — — —

energy losses during manufacturing (10.6%) per unit and conserveand for raising production efficiency resources

b) Reuse/Recycle Reuse and recycle Fujicolor QuickSnap 6.0 42.4 Reduction of volume of waste 101.1 — — —single-use cameras, silver, containers, (14.0%) materials treated through 5.9and base materials reuse and recycling

B. Water and sewage costs Costs for recovery from market 0.4 4.7 — — Reduction in the volume @(1.6%) of crude oil extracted

Reduction in the volume 151.6 tons @of silver extractedReduction in the volume 127.2 thousandof waste for treatment at tonslandfill sites throughreuse and recyclingReduction in the volume of 208.4 thousand 0.8water used by customers tonsReduction in the volume of 5.8 thousandwaste liquids by customers tons

C. Costs of management Environmental protection activities 0.4 20.8 — — — — —activities at production sites (6.9%)

Costs for obtaining ISO 14001certificationCosts for publicizing information

D. Research and Development of environment- 18.9 140.2 — — — — —development costs friendly products (46.2%)

R&D of environment-friendly facilitiesthat reduce energy lossesTesting of material safety

E. Social-related activities Beautification and 0.1 0.2 — — — — —greenification activities (0.1%)

F. Environmental damage Fines for environmental pollution — 0.6 — — — — —costs (0.2%)

Total 116.7 303.2 298.8 139.7(100%)

Categories with @ do not list monetary values because there are no indicators enabling a conversion into monetary amounts. *1 Volume reduced: 1,218,000 tons*2 Portion of reduction of heavy crude: 26.7 thousand kl*3 Portion of reduction of heavy crude: 89.1 thousand kl

Portion of reduction of plastic waste materials: 24.0 thousand tons*4 Alumina waste materials: 47.5 thousand tons

Plastic waste materials: 11.9 thousand tonsOther waste materials: 61.9 thousand tonsVolume of reductions of waste material disposed of through incineration and landfill sites: 5.9 thousand tons

*5 Development liquids: 2.8 thousand tonsSticking agents: 3.0 thousand tons

The bases for converting reductions in the environmental burden into monetary values are as follows:1. SOx reductions: ¥345 thousand/ton (Industrial Environmental Management Association Co., Ltd., from Fiscal 1999 Report on Survey Research (Environmental Auditing), including on Development of

Environmental Business.)2. VOC reductions: ¥525 thousand/ton (Industrial Environmental Management Association Co., Ltd., from Fiscal 1999 Report on Survey Research (Environmental Auditing), including on Development of

Environmental Business.)3. CO2 reductions: ¥8,000/ton (Average cost for joint implementation (AIJ) Project based on the United Nations Framework Treaty for Climate Changes)4. Landfill treatment costs for industrial waste: ¥100/kg5. Water purifying treatment costs: ¥400/ton (Calculated based on drinking water costs and sewage costs for local government authorities) 6. Unit costs for the treatment of development agents: ¥65 thousand/ton

Unit costs for the treatment of fixing agents: ¥50,000/ton

127.2*4

3.3*5

113.1 thousand kl*3

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18

REDUCING ENVIRONMENTAL IMPACT

◆ Reduction of VOC Emissions and Results of PRTR Survey

In July 1999, The Chemical Substance Emission Management

Promotion Law (PRTR Law) was formulated in Japan. Under this

law, the total volume of emissions and movements of chemical

substances known to adversely influence human health and the

ecosystem that are released into the environment is calculated,

and reporting these amounts to the government is mandatory.

Over a one-year period beginning in April 2001, businesses

covered by the PRTR Law will ascertain the volumes and

movements of chemicals released into the environment and,

from April 2002, report these volumes to the national government

via local governments. In each subsequent year, businesses will

continue to ascertain these volumes and submit reports on these

substances released into the environment.

Since 1995, Fujifilm has participated in the PRTR self-

management activit ies of the Japan Chemical Industry

Association and has submitted the results of its PRTR surveys

annually. In addition, in line with the PRTR Law, Fujifilm has

made approximately 1,000 MSDS revisions and publicizes

related information via the Internet.

Among the chemical substances for which reports must be

submitted under the PRTR Law are numerous VOCs. As a vital

implementation category under the Fujifilm Responsible Care

policy, Fujifilm is working to reduce VOC emissions and has

established a target of “achieving a 50% reduction in VOC

emissions into the environment by fiscal 2002 compared with

fiscal 1996 levels.” Fujifilm is also voluntarily reducing VOCs not

among the chemical substances for which reports must be

submitted under the PRTR Law. Over the last three years, we

have reduced VOC emissions into the atmosphere by 750 tons.

Taking account of increases due to expanded production, we

have brought emissions down from 3,300 tons in fiscal 1997 to

3,100 tons in fiscal 2000. Looking ahead, we remain committed to

achieving further reductions in VOC emissions through measures

that include modifying manufacturing facilities, raising VOC

recovery rates, and changing the solvents used for synthesis.

Data on Substances Covered by PRTR Law and Substances Covered by Self-Management Data (from 6 Fujifilm business locations)

0

1

2

3

4

5

0

20

40

60

80

100

1995 1996 1997 1998 1999 2000

100.0

4.4 4.3

3.33.1 3.0 3.1

2.1

75.9 73.2 70.9 72.1

50.0

2002

Volume of VOC emissions into the environment

Volume of emissions into the environment

Index (right scale)

(Fiscal year)

(Index)(thousands

of tons)

Target value

Ashigara Factory

Page 21: The FUJIFILM Environmental Report/2001 Edition FUJIFILM Environmental Report/2001 Edition In order to protect and preserve the beauty of nature and her valuable resources so that they

19

Data on Substances Covered by PRTR and Substances Covered by Voluntary Management (fiscal 2000, from 6 Fujifilm business locations)

Sub

stan

ces

sub

ject

toco

mp

ulso

ryre

gis

trat

ion

und

erth

eP

RTR

Law

Sub

stan

ces

cove

red

by

volu

ntar

ym

anag

emen

t

Government Substance Amount Amount emitted Amount Amount removed Amount trans- Amount Amountordinance no. handled consumed* by treatment ferred (Waste recycled taken to

materials taken landfillInto the away from

atmosphere Into water Into soil the plant)

12 Acetonitrile 155.7 7.2 0.0 0.0 0.0 1.3 2.9 144.3 0.0

24 n-Alkylbenzenesulfonic acid and its salt 25.9 0.0 0.0 0.0 25.6 0.1 0.1 0.0 0.0

25 Antimony and its compound 10.5 0.0 0.0 0.0 10.3 0.0 0.2 0.0 0.0

29 4,4-Isopropylidenediphenol 48.3 0.0 0.0 0.0 47.7 1.0 1.4 0.0 0.0

43 Ethylene glycol 14,843.9 0.7 0.1 0.0 14,671.6 2.2 4.5 164.8 0.0

46 Ethylene glycol 1.4 0.0 0.0 0.0 1.4 0.0 0.0 0.0 0.0

47 Ethylenediaminetetraacetic acid 11.6 0.0 0.0 0.0 11.6 0.0 0.0 0.0 0.0

63 Xylene 2.4 2.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0

64 Silver and its compound (water-soluble) 2,240.1 0.0 0.0 0.0 2,038.6 0.0 0.0 201.5 0.0

65 Glyoxal 1.8 0.0 0.0 0.0 1.7 0.1 0.0 0.0 0.0

66 Glutaraldehyde 3.1 0.0 0.0 0.0 3.1 0.0 0.0 0.0 0.0

95 Chloroform 6.5 0.0 0.0 0.0 0.0 0.0 6.5 0.0 0.0

102 Vinyl acetate 1.8 0.0 0.0 0.0 0.0 1.8 0.0 0.0 0.0

134 1,3-Dichloro-2-propanol 26.8 0.5 0.0 0.0 0.0 26.3 0.0 0.0 0.0

145 Dichloromethane 412.0 357.4 0.0 0.0 43.9 0.0 7.6 3.0 0.0

172 N,N-Dimethylformamide 49.0 2.5 0.0 0.0 0.0 45.0 1.4 0.0 0.0

177 Styrene 7.5 0.0 0.0 0.0 7.5 0.0 0.0 0.0 0.0

205 Terephthalic acid 37,118.5 0.0 0.0 0.0 36,958.0 54.9 0.0 105.6 0.0

227 Toluene 889.3 34.3 0.0 0.0 0.4 193.3 25.0 636.3 0.0

243 Barium and its water-soluble compound 12.2 0.0 0.0 0.0 8.9 2.9 0.0 0.0 0.4

254 Hydroquinone 175.4 0.0 0.0 0.0 170.2 5.0 0.2 0.0 0.0

259 Pyridine 5.1 0.0 0.0 0.0 0.0 0.0 0.0 5.1 0.0

266 Phenol 1.0 0.2 0.0 0.0 0.6 0.2 0.1 0.0 0.0

270 Di-n-butyl phthalate 70.5 0.0 0.0 0.0 67.4 2.9 0.1 0.0 0.0

304 Boron and its compound 2.2 0.0 0.0 0.0 2.2 0.0 0.0 0.0 0.0

309 Poly(oxyethylene) nonylphenol ether 3.0 0.0 0.0 0.0 2.6 0.5 0.0 0.0 0.0

310 Formaldehyde 1.6 0.0 0.0 0.0 1.4 0.2 0.1 0.0 0.0

313 Maleic anhydride 2.8 0.0 0.0 0.0 2.4 0.0 0.0 0.4 0.0

314 Methacrylic acid 11.8 0.0 0.0 0.0 5.6 6.2 0.0 0.0 0.0

320 Methyl methacrylate 5.4 0.0 0.0 0.0 5.4 0.0 0.0 0.0 0.0

353 Tris(dimethylphenyl) phosphate 2.3 0.0 0.0 0.0 2.1 0.1 0.0 0.0 0.0

Butyl acrylate 9.7 0.0 0.0 0.0 9.7 0.0 0.0 0.0 0.0

Acetone 1,007.7 128.7 0.0 0.0 48.3 386.6 275.1 169.1 0.0

Butyl acetate 323.4 6.0 0.0 0.0 0.0 221.0 2.3 94.1 0.0

Ethyl acetate 1,818.9 405.1 0.0 0.0 39.4 635.3 62.1 677.0 0.0

Cyclohexane 2.0 0.0 0.0 0.0 0.0 1.7 0.3 0.0 0.0

Tetrahydrofuran 39.7 0.0 0.0 0.0 0.0 0.0 0.0 39.7 0.0

Triethylamine 21.3 1.4 0.0 0.0 0.0 19.9 0.0 0.0 0.0

n-Hexane 268.1 1.0 0.0 0.0 0.0 1.3 14.5 251.3 0.0

Butyl alcohol 186.2 37.6 0.0 0.0 142.7 5.9 0.0 0.0 0.0

Propyl alcohol 352.1 150.8 0.0 0.0 0.0 64.6 15.9 120.8 0.0

Methyl alcohol 4,377.0 1756.1 0.0 0.0 0.6 1,440.7 155.0 1,024.6 0.0

Methyl butyl ketone 4.4 0.0 0.0 0.0 0.0 4.4 0.0 0.0 0.0

Methyl ethel ketone 6,112.6 206.4 0.0 0.0 0.1 2,996.4 105.6 2,804.1 0.0

Ammonia 136.6 1.4 0.0 0.0 3.4 131.1 0.6 0.0 0.0

Nitric acid 2,602.6 0.4 39.7 0.0 666.2 1,892.5 3.8 0.0 0.0

Sulfuric acid 1,761.3 0.0 2.2 0.0 5.3 1,693.7 0.0 60.0 0.0

Hydrogen bromide 1.4 0.0 0.0 0.0 0.0 1.4 0.0 0.0 0.0

N-Methyl pyrrolidone 31.3 0.2 0.0 0.0 0.0 19.8 11.3 0.0 0.0

Aluminum and its compound (water-soluble) 48.3 0.0 0.0 0.0 17.9 30.4 0.0 0.0 0.0

Triethanolamine 25.4 0.0 0.0 0.0 25.4 0.1 0.0 0.0 0.0

is a VOC substance subject to measurement of total amounts emitted into the atmosphere.Under the PRTR law, the handling of five tons or more of listed substances in two years at a given plant must be reported. However, in this table, we have listedsubstances handled in an amount of at least one ton.* "Amount consumed" is an amount contained in or associated with a product and an amount that has been treated to make it harmless.

(Unit: tons)

Page 22: The FUJIFILM Environmental Report/2001 Edition FUJIFILM Environmental Report/2001 Edition In order to protect and preserve the beauty of nature and her valuable resources so that they

Among today’s environmental issues, waste materials in

particular are creating a host of serious problems, including a

chronic shortage of landfill sites caused by the rising volume and

increasing diversification of waste material. To respond to this

situation, it will be necessary to minimize the emissions of waste

material and effectively recycle and reuse waste material as a

resource.

Fujifilm has established a target of Zero Emissions—the total

elimination of emissions of waste materials disposed of through

incineration and landfill sites—by the end of fiscal 2002. As part

of its vigorous approach to attain its Zero Emissions target,

Fujifilm established the Zero Emissions Promotion Committee

under the supervision of the Fujif i lm Responsible Care

Committee and is “aiming for 100% recycling of all waste

material generated by its business activities into reusable

resources and for the total elimination of waste materials

previously disposed of through incineration and landfill treatment

sites.” Four of Fujifilm’s six domestic production sites have

achieved 100% recycling rates for waste from raw materials

used in production. Two of these four production sites have

achieved 100% recycling rates not just for waste from raw

materials used in production but also for all other waste

materials. Specific measures being implemented include the

following:

1) Thoroughly separating and recovering waste materials,

including chemical products,

2) Selecting an appropriate recycling company for each type of

waste material, and

3) Selecting the optimal recycling method at each point in time

for the recycling of sludge, waste solvents, waste plastics, waste

oils, and wastepaper. This includes the recycling of waste into

alumina, solvents, and cement raw materials; the chemical

recycling of materials into agents for direct reduction furnaces;

and the thermal recycling of waste into refuse-derived fuels and

synergists.

In the future, we will also carry out recycling at gasification

melting furnaces. By the end of fiscal 2002, we intend to

complete our Zero Emission targets at all domestic sites,

including branch offices and marketing offices. We also intend

to expand these activities to subsidiaries and achieve our target

of Zero Emissions at all domestic subsidiaries by the end of

fiscal 2003.

20

◆ Zero Emissions

Product use

Product sales

Raw material

production

Product manufacturing

100% recycling of waste materials into resources

Creating resource-conserving designsEnabling recyclingExtending longevity (repair)

Conserving energyReducing energy loss

Reducing waste materialsConserving energyExtending longevity (repair)

Using recycled productsEmploying Green

Procurement

Zero Emissions with Recycling-Oriented Production Systems

Yoshida-Minami Factory

Page 23: The FUJIFILM Environmental Report/2001 Edition FUJIFILM Environmental Report/2001 Edition In order to protect and preserve the beauty of nature and her valuable resources so that they

21

* The recycling rate is calculated based on the amount of waste disposed of outside Company facilities.

0

2

4

6

8

10

12

14

16

1993 1994 1995 1996 1997 1998 1999 2000 200360

70

80

90

100

0

10

30

50

70

80

100

20

40

60

90

100.015.3

11.2 11.6

8.9

6.9 6.4

4.6

93.0

71.966.8

47.5

0.0

86.3

89.992.0 93.3

92.8

Change in Amounts of Waste Material Disposed Of in Incinerators and Landfills (Data from 6 Fujifilm facilities)

Recycling Rate (%)

79.7

67.863.6

(Fiscal Year)Amounts of Waste Materials Disposed Of in Incinerators and Landfills (left scale)

Index for Amounts of Waste Materials Disposed Of in Incinerators and Landfills (right scale)

Recycling Rate (right scale)

100.0(Thousands of tons/year)

Index

TargetValue

StandardFiscal Year

9.6

Yoshida-Minami Factory: Zero Emissions Act iv i t ies

The Yoshida-Minami Factory is the largest manufacturing factory in

the world for PS platemaking materials used in offset printing. This

facility produces approximately 20,000 tons of waste per year.

Starting in April 2000, it instituted the “Zero First Step” program in

order to achieve Zero Emissions (the 100% reuse of waste

materials as resources). Just six months into this program, the

goal—the reuse of approximately 19,000 tons of waste—was

reached. The Yoshida-Minami Factory’s slogan is “0-100,” meaning

that the goal is to not dispose of any waste in landfills or by

incineration, but reuse 100% of its waste. Through the application of

our “5R” philosophy (Reject, Reduce, Reuse, Repeat, Recycle), the

Factory has succeeded in drastically reducing the volume of

incinerated garbage. The 0-100 Committee has worked to increase

workers’ awareness regarding environmental issues, and the goal of

Zero Emissions was achieved in

March 2001. Our efforts at the

Yoshida-Minami Factory were

recognized, and we received the

“Prefectural Governor’s Award for

Merit in Industrial Waste Disposal.”

Factory Target Date for Reuse of 100% of Waste from Production Materials Target Date for Reuse of 100% of All Waste

Yoshida-Minami Factory September 2000 (achieved) March 2001 (achieved)

Fujinomiya Factory September 2000 (achieved) March 2002

Miyanodai Technology Development Center September 2000 (achieved) March 2003

Odawara Factory September 2001 March 2003

Asaka Research Laboratory March 2001 (achieved) March 2001 (achieved)

Ashigara Factory March 2002 March 2003

Zero Emissions at Recreat ional Faci l i t ies

At the Atami Koarashi-sou Recreational Facilities opened in May

2000, we are taking a wide variety of detailed measures to

protect the environment. Just as at our other facilities, we aim

for Zero Emissions here. A salad bar was installed and the

menu was modified in order to reduce organic waste. This

facility uses a waste disposal unit to break down organic waste

into carbonic acid gas and

water. The boiler room is

equipped with a hot spring

water circulation system that

contr ibutes to our Zero

Emission efforts.

Organic waste disposal unit

Page 24: The FUJIFILM Environmental Report/2001 Edition FUJIFILM Environmental Report/2001 Edition In order to protect and preserve the beauty of nature and her valuable resources so that they

22

◆ Energy Saving and Curbing Global Warming

Fujif i lm got an early start on the introduction of energy

conservation technology by installing cogeneration-type

generators at the Ashigara Factory in 1990 and the Fujinomiya

Factory in 1991. Consistently favorable results have been shown

through the thorough streamlining of the production process and

continual improvement of production technology.

The four Fujifilm facilities in Japan designated for Class 1

Energy Management far exceeded the guidelines of the Ministry

of Economy, Trade and Industry—a 1% improvement of energy

cost units—by reducing energy use by 4.4%.

With regard to the reduction of CO2 emissions, in addition to

the preceding factors, it was decided to use municipal natural

gas to fuel the boilers in the Ashigara and Fujinomiya factories.

Natural gas emits fewer dioxins and is highly regarded as a

clean energy source. The natural gas systems are scheduled to

go online in February 2003 at the Fujinomiya Factory and April

2004 at the Ashigara Factory. As a result of these measures,

from fiscal 1999 to fiscal 2010 a 32,000-ton reduction in the

output of CO2 emissions is expected to be achieved. In addition,

energy conservation measures are expected to achieve a

19,000-ton reduction in the output of CO2 emissions during the

same period, for a total reduction of 51,000 tons.

The Committee for the Promotion of Energy Conservation and

the Reduction of Dioxin Gas Emissions has been established

under the Fujifilm Responsible Care Committee to carry out work

related to these measures.Odawara Factory

Page 25: The FUJIFILM Environmental Report/2001 Edition FUJIFILM Environmental Report/2001 Edition In order to protect and preserve the beauty of nature and her valuable resources so that they

23

50

75

100

199519941993 1996 1997 1998 1999 2000

100.0 99.9

95.693.3

91.089.1 87.8

84.0

Change in Energy Cost Units (Data from Class 1 Energy Management of 4 Fujifilm facilities)

(Fiscal Year)

(1993 fiscal year=100)

Starting this fiscal year, figures for CO2 emission amounts (formerly recorded as carbon tons) are shown. Due toFujifilm’s introduction of cogeneration-type generators, the reduction in CO2 emissions from thermal powergeneration by power companies (CO2 emission energy cost unit 0.612 kg/kwh) is included in these calculations (asper the Ministry of the Environment’s “Index of Environmental Performance of Companies”).Note: 0.612 kg/kwh is the average receiving-end CO2 emission energy cost unit for Tokyo Electric Power Company’sthermal power generation at power plants (for fiscal 1995).

Cogeneration-Type Generators Installed at the Yoshida-Minami Factory

At Fujifilm’s Yoshida-Minami Factory, starting in January 2000 we have been using

cogeneration-type generators as a regular power source. These generators use

engine cooling water and heat from exhaust gas to produce steam, which is then

converted into thermal

energy. This has made

a great contribution to

energy conservation

and the reduction of CO2

emissions at the factory.

0

100

200

300

400

500

600

700

800

1990 1991 1992 1993 1994 1995

536.4 543.4 554.8551.3 540.5571.3 569.4 587.4 595.9

621.1 639.1

517.0

1996 1997 1998 1999 2000 2010

Changes in CO2 Emission Amounts (Data from Class 1 Energy Management of 4 Fujifilm facilities)

(Fiscal Year)

(Unit: 1,000 tons)

Target Value

Newly installed natural gas facilities at the FujinomiyaFactory

Page 26: The FUJIFILM Environmental Report/2001 Edition FUJIFILM Environmental Report/2001 Edition In order to protect and preserve the beauty of nature and her valuable resources so that they

24

ENVIRONMENTAL MONITORING

◆ Improving Environmental Monitoring

Fujifilm monitors wastewater quality, groundwater quality, and the

content of boiler exhaust gases. This is primarily to confirm whether

contaminants are present, but Fujifilm also conducts detailed soil

surveys to detect the presence of materials for which there is no

record of use in the area, as per Ministry of the Environment

guidelines for the improvement of environmental monitoring. It was

confirmed that there is no soil contamination at the Asaka Research

Laboratory, Miyanodai Technology Development Center,

Fujinomiya Factory, or Yoshida-Minami Factory. Testing is currently

in progress at the Odawara Factory and Ashigara Factory. We

have also conducted a complete reevaluation of our observation

wells and are adding wells that can be carefully monitored, as well

as retesting the quality of groundwater.

In addition, in areas surrounding factories dealing with

materials subject to PRTR reporting standards, monitoring of the

atmospheric density of PRTR chemicals has begun. These

measurements have shown results well within acceptable

environmental standards. Fujifilm will continue this monitoring of

the atmospheric density of pollutants.

Fujifilm is also improving the environmental monitoring carried out

by its affiliated companies. As a result of this monitoring, it was

discovered that levels of organochlorine solvents in the groundwater

on the site of Fuji Photo Optical Co., Ltd., had exceeded

environmental standards. In October 2000, we made a report to the

local authorities and explained the situation to the residents of the

area, and purification measures are currently being undertaken.

PrefecturalContaminant Unit Legal limit limit Factory value Fiscal 1998 Fiscal 1999 Fiscal 2000

Hydrogen-ion concentration (H index) — 5.8-8.6 5.8-8.6 5.9-8.5 7.6-7.7 7.7-7.7 7.8-8.2

Biochemical oxygen demand (BOD) mg/l 160 60 50 1 Less than 1 Less than 1

Chemical oxygen demand (COD) mg/l 160 60 50 1 Less than 1 Less than 1

Weight of suspended solids mg/l 200 90 75 1 Less than 1 Less than 1

Coliform bacteria Parts/l 3000 3000 300 10 or less 10 or less 10 or less

n-Hexane extracts content (mineral oil content) mg/l 5 5 4 Less than 1 Less than 1 Less than 1

Phenolic compounds content mg/l 5 0.5 0.2 Less than 0.05 Less than 0.05 Less than 0.05

Copper content mg/l 3 3 1 0.07 or less Less than 0.05 Less than 0.05

Zinc content mg/l 5 3 1 0.04 or less Less than 0.02 0.03 or less

Soluble iron content mg/l 10 10 5 Less than 0.05 Less than 0.05 Less than 0.05

Soluble manganese content mg/l 10 1 0.5 Less than 0.02 Less than 0.02 Less than 0.02

Chromium content mg/l 2 2 1 Less than 0.05 Less than 0.05 Less than 0.05

Nitrogen content mg/l 120 - - 1.4-2.7 1.3-2.3 1.3-2.8

Phosphorus content mg/l 16 - - 0.1-0.4 0.1-0.6 0.1-0.6

Chromium (VI) compounds mg/l 0.5 0.5 0.2 Less than 0.05 Less than 0.05 Less than 0.05

Dichloromethane mg/l 0.2 0.2 0.1 Less than 0.002 0.003 or less Less than 0.002

Cyanogen mg/l 1 1 0.8 Less than 0.05 Less than 0.05 Less than 0.05

Nickel content mg/l - 1 0.5 Less than 0.05 Less than 0.05 Less than 0.05

Results of Water Qual i ty Survey for Drainage Water (Odawara Factory)

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25

◆ Air and Water Quality-Related Results (Data from Fujifilm’s Six Facilities)

0

200

400

600

800

1,000

1991 1992 1993 1994 1995 1996 1997 1998 1999

753 746 752 726684

607 592

470 445 467 468

2000 2000Consolidated

SOx Emissions

(Fiscal year)

(Tons)

0

20

40

60

80

1991 1992 1993 1994 1995 1996 1997 1998 1999

2531 31

26 2823 24 25 25

28 30

2000 2000Consolidated

Soot Emissions

(Fiscal year)

(Tons)

0

200

400

600

2,000

1991 1992 1993 1994 1995 1996 1997 1998 1999

320285

219182

215 236189

80 84

213

1,441

2000 2000Consolidated

COD Emissions

(Fiscal year)

(Tons)

0

20

40

60

80

100

1991 1992 1993 1994 1995 1996 1997 1998 1999

5551 50 49 50 48 48 47 49 49 50

2000 2000Consolidated

Industrial Wastewater Usage

(Fiscal year)

(Millions of tons)

0

200

400

600

800

1,000

1991 1992 1993 1994 1995 1996 1997 1998 1999

576 570 585522 542 530 538 560 576

658719

2000Consolidated

2000

NOx Emissions

(Fiscal year)

(Tons)

Consolidated data include data for Fuji Photo Optical Co.,

Ltd., Fujifilm Celltec Co., Ltd., Fujifilm Microdevices Co., Ltd.,

Fuji Photo Equipment Co., Ltd., Fujifilm Photonix Co., Ltd.,

Fujicolor Service Co., Ltd., Fuji Photo Film B.V., Fuji Magnetics

GmbH, Fuji Hunt Photographic Chemicals Pte. Ltd., Fuji Hunt

Photographic Chemicals, Inc., Fujifilm Imaging Systems

(Suzhou), and Fujifilm Imaging Systems Devices (Suzhou) in

addition to data for the six Fujifilm facilities. Data for Fuji

Xerox is not included in consolidated data.

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26

ON-THE-JOB SAFETY (DATA FOR SIX FUJIFILM BUSINESS LOCATIONS)

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1996 1997 1998 1999 2000

1.18

1.10

1.00 1.02 1.02

0.420.40

0.34

0.20

0.46

0.33

0.480.43

0.26

0.34

Occupational Injury Frequency Rate

(Fiscal year)

0.0

0.1

0.2

0.3

0.4

0.5

0.6

1996 1997 1998 1999 2000

0.150.13

0.100.12 0.12

0.090.08

0.53

0.01

0.09

0.01

0.09

0.15

0.01 0.01

Occupational Injury Severity Rate

(Fiscal year)

On-the-job safety constitutes the foundation of Fujifilm’s

production activities. Despite our long-standing policy of making

safety our number one priority and our consistent efforts to

ensure the safety of employees at every Group business site

under that policy, we regret to report that an accidental death

occurred in fiscal 2000. We are investigating the cause of the

accident to ensure the creation of a system under which such an

accident will never happen again. Using this accident as a

lesson, we are also engaging in an extensive Groupwide

reassessment of our safety measures with the aim of stepping up

safety activities and eliminating on-the-job accidents.

In fiscal 2000, the Ashigara Factory received two complaints

regarding fumes, the Odawara Factory received two complaints

regarding noise, the Miyanodai Technology Development Center

received one complaint regarding noise, and the Asaka

Research Laboratories received one complaint regarding noise,

for a total of six complaints. We responded to all claims promptly

to earn the understanding of local residents, and we are

endeavoring to prevent the recurrence of such complaints by

carrying out thorough anticipatory management. There were no

environment-related violations or lawsuits for the Company in

fiscal 2001.

COMPLAINTS

*1 Safety Index (Labor Standards Bureau of the Ministry of Health,Labor and Welfare): Injury Frequency Rate by Industry

*2 Japan Chemical Industry Association survey on workplacehealth and safety

Occupational Injury Frequency Rate = Number of injuries fromdisasters and accidents/one million man-hours

Occupational Injury Severity Rate= Number of days of worklost/total number of hours worked (thousands of hours)

Manufacturing industry*1

Chemical industry*2

Fujifilm

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27

FUJIFILM PRODUCTS AND THE ENVIRONMENT

Fujifilm develops and markets a wide range of products, the core of which are such film

products as instant and digital cameras, while developing a variety of services that

employ network technology. To help create a better environment while providing our

customers with products and services of the highest quality, we are taking advantage of

our technological capabilities, not only in developing product and service functions but

also in the production process, to create environmentally sound products.

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28

◆ Single-Use Cameras (Fujicolor QuickSnap)

In 1986, Fujifilm introduced the world’s first single-use camera,

the Fujicolor QuickSnap, and it quickly took the market by storm.

In response to rapidly expanding demand, the Company

established a Fujicolor QuickSnap recycling center in 1990 and,

in 1992, developed the Fujicolor QuickSnap Econoshot, taking

recycling methods into consideration from the very first step of

product design. Since then, the cyclical production of the

Fujicolor QuickSnap has been based on the three concepts in the

accompanying graph, new product development has been

carried out with post-use recycling in mind, and the Company

has engaged in R&D focused on more comprehensive recycling

technology. Fujifilm led the world in the use of inverse

manufacturing in 1998, when it opened an automated factory for

the closed-loop production of the Fujicolor QuickSnap.

In the Fujicolor QuickSnap Super Eye 800 Flash, the newest

model in the range, which is produced at the Fujicolor

QuickSnap Inverse Manufacturing Factory, a new pelletizing-less

recycled plastic production technology has been adopted,

further advancing Fujifilm’s efforts to reduce its impact on the

environment.

* Inverse Manufacturing: In the past, the life cycle of a product was limited to production,use, and waste. To circulate resources and use them efficiently, it is necessary to createa production system that employs waste products to create a new cycle of recovery,disassembly and inspection, and reuse. If the first cycle can be considered an orderedprocess, then the second can be called an inverse process. Inverse manufacturing is aproduction system that takes into account the 3R concept and is based on an inverseprocess from the product design stage.

Inverse Manufacturing*

Since recycling of the Fujicolor QuickSnap began in 1990,

lighter and more compact models have aided in reduction

efforts, while the use of unitization and parts standardization as

well as uniform materials raised the level of reuse and

recycling, resulting in a true reduction in the environmental

impact of the product.

Reduction of the Fujicolor QuickSnap’s Environmental Impact

In the past, the plastic used in the Fujicolor QuickSnap was

crushed, melted, and formed into pellets. To reduce the

environmental impact of the melting process, Fujifilm developed a

“pelletizing-less” process whereby crushed plastic can be

directly molded into new plastic. The pelletizing-less method

makes it possible to use the crushed pieces as raw materials by

removing foreign substances and using an extremely effective

boiling method. Every step of the process, from disassembly and

plastic recycling to molding, is completed at the Inverse

Manufacturing Factory, greatly reducing the environmental

impact of the product.

Adoption of New Cyclical Production Technology(Efficient Plastic Recycling)

0

50

100(Index)

Before recycling began After recycling began

1990 1990 1995*Assuming a 100% recovery rate

2000

41% reduction 53% reduction 62% reduction

Standard Single-Use CameraEnvironmental Impact throughout Entire Life Cycle (Volume of CO2 emissions)

(Fiscal year)

0

50

100(Index)

Raw materials Materials used in pelletizing

recycling

Materials used in pelletizing-less

recycling

64% reduction 90% reduction

Plastic Recycling Effect on Reduction in Environmental Impact of Fujicolor QuickSnap (CO2 emissions)

The Three Concepts of Cyclical Production

◆ From Fujicolor QuickSnap to Fujicolor QuickSnap

Reuse, cyclical recycling

◆ Recycling from the Design Stage

Resource saving, unitization and standardization

of parts, uniform materials

◆ Automatic Recycling

High-quality, highly efficient recycling

Fujicolor QuickSnap Inverse Manufacturing Factory

The above data refer to the environmental impact of filmproduction but do not include the impact of developing or prints.

Compared with the environmental impact of the production or recycling of an equal volume of plastic

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29

Environmental Product Assessment

From the start of the design process for a new Fujicolor QuickSnap

product, an independent environmental product assessment is

carried out to ensure that environmental awareness, reuse, and

recycling are all part of the development process.

The first step in carrying out an environmental assessment of

a product is the creation of a cyclical production process

flowchart for the life cycle of each part and unit that makes up

the Fujicolor QuickSnap camera. This allows us to determine

the ease of disassembly as well as where the reuse of units

can be incorporated in the production process (see chart

below). Using the flow of this cyclical production process as a

base, we carry out an assessment based on seven evaluation

indexes and select design specifications.

Thanks to these environment-friendly designs, we are able to

reuse or recycle 99% of the components of the Fujicolor

QuickSnap Super Eye 800 Flash, by volume, within the

manufacturing cycle of this product. We achieve a 100%

recycling rate, including the recycling of the remainder into raw

materials for use outside the Fujicolor QuickSnap Super Eye

800 Flash manufacturing cycle.

Production stage Recycling stage Reuse Recycle Regenerate

Reuse(within system)

Reuse and recycling rate within system of 99%

Recycle(within system)

Regenerate(outside system)

Part A

Part B

Part C

Lens A

Main unit

Lens B

Flash unit

Camera unit

Camera form

Film is returned to

userPart F

Part G

Film

Label

Battery

Label

Part F

Part G

Recovered product

Disassembly

Lens B

Flash unit

Battery

Main unit

Cyclical Production Process Flowchart for Fujicolor QuickSnap Super Eye 800 Flash

Reuse and Recycling ProcessProduction Process

Weight

Usage rate of common parts

Number of claw hooks*

88.5g

80%

16 places

34

1

35

Number of parts

Amount of packaging

Total parts

How the QuickSnap Super Eye 800 Flash Is Made Evaluation Indices of Environmental Product Assessment

1. Compliance with laws and regulations

2. Reduction

3. Reuse

4. Recycling

5. Revised design (standardization of parts)

6. Proper life cycle process

7. LCA

*Index for evaluation of disassembly

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30

◆ Printing Systems—Environment-Friendly Printing-Related Products

INTEGRA Film Processing SystemThe INTEGRA film processing system achieved the world lowest replenishing rate requirements. Replenishing rates for 20 x 24 in INTEGRA

film are only 50 ml and 80 ml for developer replenisher, and fixer replenisher, respectively. This system has realized an approximate 35%

reduction in the volume of waste chemicals when compared with that of the previous system, the SuperGRANDEX. In addition to liquid

chemicals, a new lineup of granular chemicals has been rolled out, which is one-third the weight of liquid chemicals and features a new

bellows-type flexible container that can be compacted after use, resulting in waste that occupies one-half the space of the previous system.

REXER Dry Imaging System for Newspaper ProductionThe REXER is a completely dry processing system for newspaper plotter film and requires no processing chemicals. REXER utilizes

silver-halide technology for its photosensitive agent and has superior speed and image quality compared with conventional wet

processing film systems. REXER makes chemical control and waste treatment unnecessary.

■ Processing volume and corresponding waste volume ■ Comparison of waste solution by weight

(r )1,000

(%)250

200

150

100

50

0

500

250 500 1,0000

Company B

Company A

INTEGRA Company A Company BVolume of processed film (m2)

Volu

me

of w

aste

sol

utio

n

INTEGRA

Heater

Film

Developer Fixer Wash Dry

Exposure

Heater

<Processing unit>Processed film

■ REXER dry plotter system

Exposure <Film processor>

Processed film

■ Conventional FAX film system

INTEGRA auto replenisher supply unit

REXER processing unit

INTEGRA

Company A

Company B

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ECOSTABLON Presensitized (PS) Plate Processing System for Offset PrintingThe STABLON system reduces waste chemicals by 50% compared with conventional PS plate processing systems. Furthermore,

Fujifilm has built on this achievement by further reducing waste to one-third that of STABLON systems. This has been accomplished by

developing a new plate, a new developer, and a new plate processor, resulting in a significant reduction in the environmental burden

of the prepress process.

IPA-Free PS Plate Dampening Solution (IF Series)Isopropyl alcohol (IPA), which is regulated by health and safety laws, is an additive in the dampening solution used in offset printing

presses. IF series dampening solution additives eliminate the use of IPA in dampening water while retaining superior press

performance. The product lineup includes single-solution and dual-solution products compatible with different types of press

dampening systems and printing inks.

■ Comparison of chemical waste amountChemical waste amount (r /month)

Processed plate volume (m2/month)

1,000

500

1,000 2,000 3,000 4,000 5,0000

STABLON

ECOSTABLON

31

ECOSTABLON PS processor

IPA-free PS plate-dampening solution (IF Series)

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32

◆ Imaging Systems—Environmental-Friendly Imaging Products

Color Negative FilmFujicolor NexiaPlastic cases for advanced photo system (APS) film have

been discontinued and, by May 2001, totally replaced by

aluminum packages, which are more environmental-friendly.

This product, which is ultrasmall and extremely convenient,

features reduced packaging, sharply reducing the use of

aluminum. (It was awarded the Japan Packaging Content

Machinery Packaging

Award, a 2000 Good

Design Prize.)

Recycling1. Used containers of processing chemicals for minilabs are collected for recycling as pellets for processing solutions or for

deoxidization in blast furnaces at ironworks.

2. Plastic film cases are collected from large processing labs, chipped, and recycled by the Company into machine parts and raw

material. (In accordance with the Container and Packaging Recycling Law of Japan, trash separated by consumers and collected by

local governments is recycled by the manufacturers at their own expense.)

3. Fujifilm QuickSnap single-use cameras are collected from processing labs by the Company, and the components are reused as

parts and recycled into raw material.

4. After collection, equipment is divided and classified by material, with metals reused as raw material, polyethylene recycled, and

resins reduced to their constituent components in blast furnaces.

Color Processing Chemicals (CN-16S,CP-48S)The “Simple & Clean” System, which automatically mixes

solutions and rinses the film after the cartridge is inserted,

offers the following advantages:

1. Low weight and compactness (half the size of other

products*)

2. Approximate 40% reduction in energy consumed and

carbon gas emitted in manufacturing, use, and recycling*

3. Environmental-friendly containers made of thin-layer, high-

density polyethylene for

improved conservation of

resources and recycling

* Compared with Fujifilm’s previousproducts

Fully Digital MinilabFrontier 350/370/390The Frontier lineup of products, which delivers ultrahigh

quality through the use of solid-state lasers, is environmental-

friendly.

1. Efficient Use of Electricity

Efficiency and accuracy is enhanced by the use of a CPU,

which controls the temperature of the processing solution and

the dryer, which has a large capacity.

2. Reduction of Processing Solution Loss

Direct contact between the processing solution and the air

has been reduced as much as possible, thereby reducing

evaporation and oxidation.

3. ISO Mark Indication Materials

A breakdown of the components is listed on each product,

facilitating separation at the time of recycling.

4. Reduced Use of Polyvinyl Resin

The processing solution tank uses NORYL resin molding.

Color paper(silver halide)

Film ProcessorFP363SC (AL)PC563SC (AL)

Scanner SP1500SP2000

Printer LP1500SCLP2000SC

Frontier 350/370

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Environment-Friendly Digital CameraDesignTo achieve an environment-friendly digital camera design, an

assessment sheet (consisting of nine basic items and 25

sections) was used to incorporate low levels of energy use,

weight reduction, and recyclability. The resulting digital

camera was highly evaluated from the

design stage. According to the

evaluation, the new FinePix6800Z,

when compared to the FinePix4700Z,

uses 20% fewer parts while using

electricity more eff iciently,

consuming 10% less.

Thermo Autochrome (TA) PaperThermo Autochrome (TA) Paper, used in the Aladdin Ace digital printer for

photofinishing stores, is a heat-sensitive paper on which images can be produced in

a full range of colors. Microcapsules in the paper generate different colors

depending on the stage of the heating process, starting with yellow, which emerges

at low temperatures. Photograph-like quality is achieved through the graduating of

tonal density at the individual pixel level, making possible superior reproduction of

half-tones in the manner of traditional photographic prints. TA Paper generates colors

without the need for such accessories as ink cassettes, ribbons, or toner ink, and no

plastic waste is produced. This makes it an extremely environment-friendly product.

Fuji Medical Dry Imager FM-DP LThe Fuji FM-DP L medical imager is a dry laser printer used for printing the imaging data from

computerized tomography (CT), magnetic resonance (MR), and other imaging diagnostic devices. After

converting the images into a size suitable for medical diagnosis, the images are recorded onto dry film

having the same image quality as wet film. The FM-DP L is a totally dry processing system with no need for

the disposal of waste fluid. All operations are carried out in normal lighting conditions. Darkrooms, water

supply, and fluid removal are unnecessary.

Compact Camera/Instant CameraA certain amount of recycled plastic material is used for parts

in the Instax 200 camera, and efforts are being made to

reduce the number of parts. The Instax 200 uses 20% fewer

parts and 5% less electricity, because of its increased

efficiency, than the earlier Instax 10 model.

33

◆ Other Environment-Friendly Products

Fujitac, WV Film—Film for LCDsBy using its proprietary film technology, the Company has reduced by half

the thickness of its Fujitac polarizing board protective film for polarizing

plates, from 80 microns to 40 microns. This enables the reduced use of

resources and a lower impact on the environment at the manufacturing

stage. WV Film, which offers expanded applications in the LCD field,

combines with the Fujitac protective film for polarizing plates on the

polarizing light board’s protective film, thereby reducing by one the number

of sheets of Fujitac film and conserving resources.

LCD LCD

Conventional Type Direct Adhesion Type

TACPVAAdhesive

TACPVATAC

Adhesive

Polarizing plate

Polarizing plate

WV

AdhesivePVATAC

AdhesiveTACPVATAC

WV

The components of WV Film

Fujitac LCD-use film Use of WV Film increases the angle of vision

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Instant Color Film FP-100C Peel-Apart FilmThe Instant Color Film FP-100C, a peel-apart, high-resolution, regular-sized film, uses a

plastic pack that does not require separation at the time of disposal. The film has a wide

range of commercial uses, including at photo studios, for identification photographs, at

camera shops, companies, and in the medical profession. The film’s quality and

resolution are very high, while the metallic part of the film package has been eliminated

and replaced by plastic. According to assessment

using the life-cycle assessment (LCA) method,

because plastic is used, there is a posit ive

environmental effect, with carbon dioxide emissions

reduced by 41% per pack compared with previous

products. Furthermore, after separation or when the

interior aluminum bag is opened, the workability and

safety afforded by the product are enhanced.

34

AXIA MD SlimCaseBecause of the increase in the number of Mini Disc (MD) users and in the number of

discs owned by these users, single-disc MD holders are now not enough. The AXIA MD

SlimCase, which holds five MDs, is specifically designed for both portable MD users who

typically carry with them three to five discs and for users who need to store large

quantities of discs at home. Compared with our original MD 5-pack, the new SlimCase is

34% lighter in overall mass. Furthermore, it uses 66% less material for packaging and

takes up 19% less space. These dramatic reductions in material and spatial consumption

make this item environment-friendly in every way, from manufacturing to distribution.

Fujifilm Pressure-Sensitive Paper: Ecolocare100 (Uses100% Recycled Paper)To contribute to the preservation of forests and the global environment, we have

developed the pressure-sensitive paper Ecolocare100, which uses 100% recycled

paper. The use of proprietary homogeneous coating technology prevents any loss in

coloring characteristics and enables stable production. The product has been awarded

the Green Mark designation by the Recycled Paper Recovery Center for being useful in

protecting the environment.

Five one-disk cases The SlimCase holds five disks

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35

COMMUNICATION ACTIVITIES

As part of its Responsible Care program, Fujifilm communicates with its clients and customers

through a wide range of activities. Through these communication programs, the Company aims

to consider environmental problems together with all its partners and, in so doing, contribute to

a better environment.

MSDS (Material Safety Data Sheet) IssuedMSDS are issued to prevent accidents involving products and ensure safety in handling chemical substances for both

people and the environment. The Company formulates this MSDS information in compliance with the directives of the

Japan Chemical Industry Association. With the revision of the Labor Safety and Hygiene Law in 2000 and the updating

of the provisions in the Chemical Susbtances Management Promotion Law (PRTR Law) in 2001, the provision of MSDS

information for chemical substances and products became mandatory. Further,

to ensure timely and accurate access to MSDS and MSDS revisions, the

Company launched an MSDS database system in 2000, which is available at

Fujifilm and related companies in Japan and overseas.

MSDS information can be accessed on the Company’s Web site at

http://www.fujifilm.co.jp/msds.

Further, Fujifilm issues AIS (Article Information Sheets) to provide environmental

and safety information for solid products that are not covered by MSDS.

Ashigara and Fujinomiya Factories Issue Site ReportsThe Ashigara and Fujinomiya factories, both of which are key film production facilities for the Company,

have compiled their own environmental reports. Both factories acquired ISO 14001 certification in 1996.

Through data and illustrations, the reports cover environmental policies and the actions that have been

taken to advance them as well as trends in environmental impact. The reports are distributed to central

government organizations, local governments, clients, and others. In addition to advancing

communication with regional and local communities on all aspects of environmental preservation, the

reports also serve as useful educational tools regarding Zero Emission activities in the Company’s factories.

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36

Observation of Fujicolor QuickSnap Manufacturing FactoryThe Fujicolor QuickSnap manufacturing facility, opened in 1998 at our

Ashigara Factory, is the world’s first inverse manufacturing factory. This

facility has a program for observers from the general public in which

the Fujicolor QuickSnap process is introduced and analyzed. Visitors

have commented that Fujicolor QuickSnap is a “wonderful recycling

machine” and that “this process has made me aware of the importance

of environmental protection and conservation.” The program has

served as a means for environmental study by primary school children

and as a stop on school tours by junior high school students. An

average of 1,000 people a month visit the facility, both from Japan and

overseas.

Symposium at Keio University on Corporate Response to Environmental Problems The Keizai Koho Center (Japan Institute of Social and Economic Affairs) has sponsored a series of lectures, with

speakers contributed by universities, to enhance understanding of the social and international roles of companies. In

November 2000, at Keio University’s Department of Commerce, the Company’s manager responsible for the

environment and product safety promotion gave such a lecture. Under the theme of “Corporate Response to

Environmental Problems,” an outline of Fujifilm’s efforts on an international scale for environmental preservation,

Fujicolor QuickSnap manufacturing, and other specific measures were introduced.

101 Cherry Trees Planted in Minami-AshigaraTo commemorate the achievements of Kiyoshi Haruki, an Honorary Citizen of Minami-

Ashigara and an advisor to the Company who died at the age of 101 in 2000, the City of

Minami-Ashigara and the Company planted 101 “Ashigarazakura” cherry trees on the

banks of the Karigawa River, facing the Ashigara Factory. The late Mr. Haruki was

appointed head of the Ashigara Factory upon its opening in 1934 and thereafter made

substantial efforts to preserve the natural environment and water resources. This tree

planting represents the largest number of cherry trees to be planted simultaneously in

Japan, and, as a result, the riverbank has been named Haruki Michi (Haruki’s Way). This

tree planting represents a milestone in the Company’s efforts to preserve the environment.

Mr. Suzuki, the mayor of Minami-Ashigara (right), and Mr.Onishi, Fujifilm’s representative director, plant cherry treesaplings.

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37

SOCIAL CONTRIBUTION ACTIVITIES

In 1983, to commemorate the 50th anniversary of its establishment, the Company contributed

¥1 billion to establish the Fujifilm Greenery Fund (FGF). This organization is the first public trust

established by a private company in Japan to have the preservation of nature as its theme.

Every year, the fund contributes to various activities pertaining to the preservation

and improvement of the environment. The fund had contributed to a total of 70 projects by

fiscal 2000.

To Leave Greenery to Future Generations (Miyahara-Machi DongorosuGreenery Club)The Dongorosu Greenery Club was established to cultivate greenery and further tradition and

knowledge pertaining to greenery. The club’s current project is being applied to bamboo

groves inside the Kumamoto Prefecture Nature Park, including the Tatsugami Gorge. In 1997,

the facility was designated as a center for environmental studies by the Environmental

Agency and, in this capacity, conducts greenery management operations and related

activities. To further expand the scope of operations, an ecological field survey will be

conducted and the results compiled in a map.

Observation of Marine Life through Snorkeling (Minami-Izu Oceanic Biological Club)The Minami-Izu Oceanic Biology Club has held two snorkeling outings per year since 1989 at

Nakagi, Tatsugahama, Nabegahama, and other places in Minami-Izu. These outings give

participants an opportunity to see aquatic forests, thereby enhancing understanding of the

importance of sea plants and raising awareness of the need for preservation of the

environment. In recent years, the pollution of seawater and rising salinity levels have

damaged aquatic vegetation, and the snorkeling group is developing its preservation and

restoration activities to address such issues.

Restoration of Aquatic Plants in Lake Nojiri and Environmental Education(Lake Nojiri Aquatic Plant Restoration Committee)

In 1978, when aquatic plant life became overgrown in Lake Nojiri, herbicides were

distributed in the lake, totally destroying all plant life and creating red tides. To restore Lake

Nojiri, Nagano Prefecture and Shinanomachi City designated a 0.5 m2 restoration zone in

1995. In 1996, researchers from other parts of Japan joined these activities and formed a

research group, then designated measures to encourage the regrowth of hoshitsurimo

(nitellopsis obtusa) algae as a symbol of continuing plant life regeneration efforts.

Promotional Activities of the Fujifilm Greenery Fund in Fiscal 2000

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38

ENVIRONMENT-RELATED AWARDS

The ongoing Companywide efforts to advance Responsible Care have resulted in heightened

awareness among all Company employees and many other positive results. These efforts have

been highly evaluated and brought the awards described below during the year under review.

Nikkei Superior Trendsetting Factories and Offices Awards Millennium AwardThe “Superior Trendsetting Factories and Offices Awards Millennium Award,” sponsored

by the Nihon Keizai Shimbun Company, is awarded to a facility in Japan or overseas for

enhanced productivity, reform of the work environment, or contribution to society. The

Company was awarded this prize in 2000 and was again honored in 2000 with the

Millennium Commemorative Prize in recognition of the Ashigara Factory’s automated

inverse manufacturing factory. This prize reflected the Company’s continuous efforts to

advance Responsible Care and the high evaluation of the environment-friendly inverse

manufacturing factory.

2000 Minister’s Prize for Efforts to Prevent Global WarmingThe Company’s Ashigara Factory was awarded the Environmental Agency Minister’s Prize

for efforts to prevent global warming. The prize was awarded for the sale of single-use

cameras, the commonization of parts, the common use of parts and materials, and—

through the design and modification of environment-friendly systems—the increase to 90%

of the reuse of parts. Furthermore, the Company’s efforts to achieve Zero Emissions at its

plants through the reuse of raw materials have been highly evaluated.

The 47th Okouchi Memorial Technology PrizeThe Company was awarded the “47th Okouchi Memorial Technology Prize,” sponsored by

the Okouchi Memorial Committee for its automated inverse manufacturing system. Since the

Company became the world’s pioneer in developing and selling single-use cameras in 1986,

the convenience of the system has increased the size of the market, and research has

continued into developing single-use cameras that are environmentally and economically

effective. In 1998, the world’s first environment-friendly automated manufacturing plant,

combining manufacturing, processing, recycling, and product development functions, was

launched at the Ashigara Factory. As a result, 220 million units were recovered in Japan in

2000, a total of 3.2 billion parts were reused, and a total of 18,000 tons of materials were

recycled.

Award of the 2000 “Excellent Consumer-Oriented Company Commendation”Fujifilm was awarded the “Excellent Consumer-Oriented Company Commendation” from

the Minister of International Trade and Industry for 2000. This prize is awarded to

companies for accurate and rapid responses to consumer needs by corporate

management as well as having a consumer-oriented structure that has achieved

outstanding results. This prize was the result of the high evaluation of the Company’s

environmental protection measures; high-quality products, developed from state-of-the-art

technologies; customer support structure, centered on the Customer Communication

Center; and the industry-leading Fujifilm Responsible Care Committee.

President Komori receives the “Superior TrendsettingFactories and Offices Awards Millennium Award.”

Mr. Uchida, the general manager of the Ashigara Factory,receives the Environmental Agency Minister’s Prize.

Company representatives receive the “47th OkouchiMemorial Technology Prize.”

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39

GROUPWIDE ENVIRONMENTAL EFFORTS

Zero Emissions Achieved at Fujifilm ArchZero Emissions operations were launched at the Fujifilm Arch in April 2000. This was achieved

through a waste management program that strictly applied the separation rules promulgated in April

2000, an environmental symposium to raise employee awareness, and the publication of

environmental news. Measures taken included the introduction of drying machines for abrasive

plastics, a water-removal machine for processing surplus sludge, and a waste-collection facility.

Fuji Technics Awarded Certificate of Merit by Kanagawa Prefecture’sMonitoring Committee for the Self-Administration of Waste DisposalOn February 6, 2001, Fuji Technics was awarded a Certificate of Merit by the Kanagawa Prefecture

Monitoring Committee for the Self-Administration of Waste Disposal (comprising members from

Kanagawa Prefecture, the City of Yokohama, the City of Kawasaki, the City of Yokosuka, and

Sagamihara City). Based on the effectiveness of its waste management system, reduction of waste

emissions, and conservation of resources and materials, the Company was judged the best among

809 eligible companies and was thus awarded the Certificate of Merit.

Fuji Photo Equipment Exhibits at Minami-Ashigara’s Environmental FairFuji Photo Equipment exhibited at the environmental fair held by the the City of Minami-Ashigara from

June 21–24, 2000. The company’s exhibits included a panel display on environmental protection

measures. Fuji Photo Equipment and five other companies, including Fujifilm (Ashigara Factory), Fuji

Xerox (Takematsu Office), Panac Industries, Inc., Nankai Co., Ltd., and Nakaya Shokai have signed

an environmental protection agreement with the Minami-Ashigara City government.

Fuji Hunt Photographic Chemicals Contributes to NPOFuji Hunt Photographic Chemicals Pte. Ltd. (Singapore) planned a Green Day to raise environmental

awareness among employees. Money raised by the Paper Trash Weight Quiz, a total of 500 Singapore dollars,

was donated to an NPO, the Singapore Environmental Council, to educate youth on the environment.

Fuji Photo Film, Inc., Beautification ActivitiesAs part of their contribution to the protection of the local environment, Fuji Photo Film, Inc., employees cleaned

highways within 10 kilometers of their offices.

Fujifilm Group Companies in the United States Help Transport Giant Pandas to the National ZooTo celebrate Fujifilm’s 35th anniversary of doing business in the United States, U.S. Fujifilm Group companies

contributed $7.8 million to bring giant pandas to the Smithsonian’s National Zoological Park in Washington, DC.

Fujifilm’s contribution will help fund three key areas: (1) make it possible to bring the pandas to the National Zoo,

(2) support the construction of a new state-of-the art research and habitat facility, and (3) support the

development of a conservation education program designed to increase the awareness of the need for habitat

protection and diversity.

Equipment for processing and removing waterfrom excess sludge

Fuji Photo Equipment exhibit

Mr. Watanabe, the president ofFuji Photo Film, Inc., engages inhighway cleaning.

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40

GLOSSARY

■ ISO 14001This is the global standard, established in 1996 by the International

Standards Organization (ISO), pertaining to environmental

management systems. Certifying organizations [Japan’s organization

is the Japan Accreditation Board for Conformity Assessment (JAB)]

strive for constant improvement by registering and evaluating

corporations on the degree of their compliance with environmental

management system standards.

■ AIS Photo-developing solutions and related products are referred to as

non-article products, while photographic film and related products

are called article products. Article Information Sheets (AISs) provide

the information necessary for the safe handling of article products

and indicate the presence of hazardous substances as well as

proper disposal options. These sheets are distributed upon request.

■ MSDSMaterial Safety Data Sheets (MSDS) refer to the safety instructions

for non-articles, such as processing chemicals, which are distributed

for each product to all parties, from suppliers to end users, to

prevent accidents involving the handling of chemical substances.

■ LCA The Life Cycle Assessment (LCA) system provides a consolidated

assessment of the necessary energy level, analysis and forecast of

emissions, and impact on the environment during product life cycles,

from the acquisition of raw materials to manufacturing, use, and

disposal.

■ Environmental AccountingEnvironmental accounting is a system that measures and indicates

the investment and expenditures made by companies and other

organizations to protect the environment as well as the effect of

these contributions. The Environmental Agency released its

environmental accounting guidelines in March 1999 and issued its

environmental accounting guidelines for 2000 in May 2000.

■ Green Purchasing/Green ProcurementWhen products and services are purchased and procured, priority is

given to the reduction of impact on the environment to the lowest

level possible, in addition to such considerations as need, price, and

quality. Green Purchasing encompasses office consumables, office

materials, and products for everyday l iving, while Green

Procurement includes raw materials and items used for production.

■ COD (Chemical Oxygen Demand)COD is an indicator that helps determine water pollution levels. It is

the measure of the amount of oxygen consumed by oxidants in

wastewater.

■ GRI (Global Reporting Initiative) GuidelinesThe GRI Guidelines are the global standards used for compiling

sustainability reports encompassing the areas of the economy,

society, and the environment. Reports are evaluated by the GRI

under the auspices of the UNEP (United Nations Environmental

Project), in accordance with performance indicators released in

June 2000.

■ Zero EmissionsTo realize a society in which resources are conserved, organizations

take various measures to eliminate the generation of waste. These

measures include the use of waste products as new raw materials

and the generation of energy from refuse. At Fujifilm, Zero Emissions

is defined as the 100% recycling of waste generated from business

operations as well as the elimination of the incineration or landfill

disposal of waste.

■ Source ReductionSource reduction is defined as the measures taken to reduce the

generation of waste by reducing the amount of raw materials used.

At the Company, this has included the reduction of silver used

through the use of new photosensitive materials, the reduction of the

amount of developing solution necessary for color prints, and the

employment of Fujicolor QuickSnap resource conservation measures.

■ Inspection Report by Third PartiesTo maintain the trustworthiness of environmental reports, reports by

third parties are attached to the documentation. Third parties

conduct inspections to evaluate the degree of information collected

as well as the objectivity and accuracy of the contents.

■ BOD (Biological Oxygen Demand)BOD is used as an indicator of the degree of pollution in water as

measured by the degree of oxygen consumed by microbes, mostly

through the consumption or breakdown of organic substances.

■ PRTR LawThis refers to a law promulgated in July 1997 (the Pollutant Release

and Transfer Register Law). The law is aimed at reducing the amount

of dangerous chemicals released into the environment and helping

to assist efforts to eliminate the endangerment of the environment

through the improvement of self-management by businesses that

manufacture and use chemical substances. From April 2001, it

became mandatory for businesses that handle chemical substances

to reduce the emission of applicable chemical substances. Starting

in April 2002, it will become compulsory to submit activity reports to

the government.

■ The Container and Packaging Recycling LawThe full title of this law is the “Law Concerning the Separated

Collection of Containers and Packaging and the Promotion of

Reuse.” The law was promulgated in April 1997 to promote the

recycling of container and packaging waste. The law encompasses

recycling by consumers, local governments, and businesses. In April

2000, the range of applicable materials covered by the law was

expanded to include paper containers and plastic products.

■ ReuseThrough the reuse of materials, the generation of waste is reduced

and the conservation of resources is achieved.

■ RecycleWaste products are not disposed of (neither incinerated nor taken to

landfill sites) but are reused as resources. Material recycling involves

reusing materials in their original form. Chemical recycling involves

the return of plastics back to their original form through liquefaction,

and thermal recycling involves reuse as fuels.

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41

INDEPENDENT REVIEW REPORT ON “THE FUJIFILM ENVIRONMENTAL REPORT/2001 EDITION” (ENGLISH TRANSLATION)

To the Board of Directors of Fuji Photo Film Co., Ltd.

Chuo Sustainability Research Institute Corporation

1. Scope and Objectives of Review

We have reviewed “The Fujifilm Environmental Report 2001 Edition”

(“the Report”) of Fuji Photo Film Co., Ltd. (“the Company”), which the

Company has prepared on its own responsibility.

The scope of this review covers all information stated in the Report.

The objective of this review is to express our independent view, to the

extent that we perform review procedures, on the reliability of

environmental information collection and reporting processes used to

compile the Report and the accuracy of the information included in

the Report. The review, however, does not guarantee the

completeness of the information included in the Report.

2. Basis of Opinion

There are no generally accepted standards for reporting or verifying

environmental information. Therefore, we have adopted a verification

approach that reflects emerging practices and guidance.

To reach our opinion we conducted the following verification

procedures at headquarters, the Ashigara, Fujinomiya and Yoshida-

Minami factories.

• At the corporate level

(1) Examination of various internal rules and documents related to

processes to manage, collect and compile information reported from

each site, and

(2) Interview with the management and people responsible for

environmental management.

* At the site level

(3) Examination of various internal rules and documents related to

processes to manage, collect, compile and report data obtained

from each division, and

(4) Interview with people responsible for environmental management

and each operation leader.

3. Opinion

We have reached the fol lowing opinion as a result of our

comprehensive evaluation of the information obtained through our

verification.

(1) The Company established and used reasonable data collection

and reporting processes to compile the Report.

(2) The information included in the Report is consistent with the

supporting documents that have been obtained during our review

process. We did not find any significant matters to be addressed.

(Comments)

During the verif ication process, we made a number of

recommendations and observations about the Company’s

environmental management. This year, we were asked by the

Company to conduct detailed verification for the reliability of information

related to Zero-Emission and PRTR at selected sites. Our main

observations and the results of the detailed verification were as follows.

1. Integration of Environmental Information System

with Existing Systems

The corporate environmental information system used to compile the

Report provides a mechanism by which each site reports necessary

data to the headquarters under the common understandings. At the

site level, each site has established and operated an environmental

management system (“EMS“) based on ISO 14001 and has made

progress in environmental management.

We recommend that the Company incorporate the environmental

information system used to compile the Report into the EMS, in order

to achieve more efficient environmental management.

2. Progress in Environmental Accounting

The environmental accounting information has been prepared

basically in accordance with the guideline issued by the Ministry of

the Environment of Japan. This year, the Company has disclosed the

information of reduction in environmental loads, which was converted

into monetary amount, as part of the information of the environmental

conservation effects. We recognize that the Company, with this effort,

represents the information of the environmental conservation effects

to its stakeholders in a more understandable way. We recommend

that the Company expand the scope of the environmental loads to be

converted into monetary amount and strengthen the basis of

conversion in coming years. If the Company succeeds in doing so,

the quality of the data will improve significantly.

3. Reliability of Information Related to Zero-Emission

At the Yoshida-Minami factory, we performed our verification

focussing on the reliability of the information related to Zero-Emission

and the processes used to evaluate the information. All related

activities at the site were included in the presented data and the

data gathering process was appropriately conducted in accordance

with the Company’s standardized form and reporting period, to the

extent we have tested at a sampling basis.

During our verification, we found some minor errors in the data.

However, we confirmed that the site has achieved the Zero-Emission

based on the corporate definition and the related data was reliable.

We look forward to see more progress in standardization and

computerization of the information system related to waste

management.

4. Reliability of Information Related to PRTR

At the Ashigara and Fujinomiya factory, we performed our

verification focussing on the reliability of the information related to

PRTR and the processes to evaluate the information. The two sites

have a process to identify PRTR substances and calculate the

amounts of each substance in a most appropriate manner

considering characteristics of each substance. The supporting data

was presented and we found no inconsistency between the

supporting data and the calculation, to the extent we have tested at

a sampling basis.

Therefore, we confirmed that the information collection processes

related to PRTR at both sites and the data presented by the sites were

reliable. We suggest that the Company will computerize the data

collection processes to achieve more efficient management in future.

June 19, 2001

Page 44: The FUJIFILM Environmental Report/2001 Edition FUJIFILM Environmental Report/2001 Edition In order to protect and preserve the beauty of nature and her valuable resources so that they

* This report is printed on 100% recycled paper.

* This report is printed with soybean ink certified as being

environment-friendly by the American Soybean Association.Released in September 2001

Next edition: expected in September 2002

Fuji Photo Film Co., Ltd.

26-30, Nishiazabu 2-chome, Minato-ku, Tokyo 106-8620, Japan

Please direct any comments or questions regarding the content of this environmental report

or any area of Fujifilm’s environmental protection activities to the facsimile number below.

Environment and Product Safety Promotion Division:

Fax: +81-3-3406-2131

The contents of this report can also be read on our Web site.

URL: http://home.fujifilm.com/info/env/indexe.html

http://www.fujifilm.co.jp/kankyoreport/index.html

The Fujicolor QuickSnap Manufacturing factory accepts tour requests from groups.

Please use the following number to arrange tours.

Fax: +81-465-73-6901

Please ask for the Tour Coordinator in the Factory Administration Section of the Ashigara Factory.