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Transcript of Page ref. - Fuji Xerox · Period covered: For Fuji Xerox itself, "Environmental Report 2001" covers...

Page 1: Page ref. - Fuji Xerox · Period covered: For Fuji Xerox itself, "Environmental Report 2001" covers FY 2000 (January 1, 2000 to December 31, 2000); some sections that describe ongoing
Page 2: Page ref. - Fuji Xerox · Period covered: For Fuji Xerox itself, "Environmental Report 2001" covers FY 2000 (January 1, 2000 to December 31, 2000); some sections that describe ongoing

Editorial Guidelines for Environmental Report

Basic Awareness: An environmental report is "a means of environmental communication." At the same time it is "an important tool to report and explain how we are trying to protect the environment, which is the common property of all people, in order to fulfill our social responsibility as a corporate citizen by minimizing the impact of our business operations." That is why, in addition to credibility and comprehensiveness, we have emphasized clarity in this report.

Period covered: For Fuji Xerox itself, "Environmental Report 2001" covers FY 2000 (January 1, 2000 to December 31, 2000); some sections that describe ongoing company and group efforts extend beyond January 1, 2001.In coming editions the information will be extended to cover companies of the Fuji Xerox Group.

Continuity and the period issued: This is the third issue in a continuing series of annual reports. The closing of books at the end of March 2001, however, means that our 42nd financial term is an irregular accounting period of three months. Consequently, from now on we plan to issue reports annually in August.

Guidelines: Continuing from last year, this report is based on GRI Guidelines* (June 2000) and the official Japanese Environmental Report Guidelines issued in November 2000 (draft proposals) by the former Environmental Agency. To maintain continuity, we have included information regarding environmentally motivated social activities.

Focus of interest: In the arrangement of the report, the majority of space has been devoted to the Company's efforts to create "green products" that respond to environmental concerns. Green products are designed with environmental considerations in mind, especially the role of systematic recycling and reuse. As such, they represent the company's continuing effort to remain a sustainable company in an environmentally aware society that realizes the necessity of the 3Rs: Reduce, Reuse, Recycle.

Auditing of reports: Beginning in FY 2000, the company reorganized into internal companies. At the same time we started submitting our environmental reports checked by auditors. The results of these audits are publicly available.

Points to note: More detailed information than is presented in this report is available from our Internet website. The additional information can be accessed via our homepage. Finally, in this report we have tried very hard to avoid using technical terms. But when a special term is necessary, we explain what it means.

May 2001

*Established in 1997, the GRI (Global Reporting Initiative) is an international organization that strives to achieve a common framework for reporting by means of "sustainability reporting guidelines" for companies.

Message from the President

Company Profile

Core of Eco-oriented Management

"Mission Statement" and "Shared Values"

Ecology and Safety (E&S) Vision and Basic Policy

Policy Deployment and Steering Committee�Principal Fiscal 2000 Results

Green Products

The Concept of Green Products

Planning and Development of Green Products

Environmental Technologies Development

Green Procurement

Packaging and Delivery�Resource Recycling System � Closed-Loop System

Inverse Manufacturing

Zero Emissions (Product-Related)

Support for Resource Recycling System: Information Systems

Reuse and Recycling of Toner Cartridges

Green Factory

Energy-Saving Activities

Zero Emissions Activities (at manufacturing sites)

Protecting Air, Water and Soil

Controlling of Hazardous Chemicals

Environmental Management� Environmental Audit and ISO14001

Creating the Eco-friendly Office

Environmental Accounting

Environmental Education and Awareness

Environmental Marketing

Promoting Social Harmony

Personnel System

Hygiene, Safety and Health

Ethical Management

Environmental Communications

Communicating with Customers

Social Contribution Activities

Social Awards and Litigation

Appendices

Auditors' Assessment of Environmental Report 2001

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2

4

7

8

18

26

32

38

40

59

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Symbols used in this report

Contents

Services or products that have received awards from outside in FY 2000.

The latest information about the company's environmental activities is available at the Fuji Xerox website.

An explanatory note is given immediately below the section.

Further explanation is given in the glossary at Appendices.

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Message from the President

With the publication of "Fuji Xerox Environmental Report 2001," I would like to take this opportunity to extend my heartfelt thanks to all of you for your continuing support. The 21st century is destined to become the Century of the Environment. For example, in order to steer society away from mass production, consumption and waste and on toward an economic system based on resource recycling, last year the six laws for establishing the recycling based-society were enacted in Japan. The widespread effort to achieve sustainability is rapidly gathering momentum. The Law on Promoting Green Purchase, for example, came into effect in April of this year as a means of encouraging the purchase of products that minimize environmental impact. The law has already boosted demand for "eco" products.

We have been fully committed to the green product concept since 1994 and, in response to customer needs, we have developed "Green products." Our work has received public recognition for excellence in power conservation: Owing to the superb energy efficiency of the DocuPrint C2220 color laser printer and the DocuColor 1250 Series of digital color copiers, we have won the National Energy Conservation Grand Prize for two consecutive years. Beginning in 1995 the company introduced a concept called the Resource Recycling System. This idea had a great influence on design, and even paid off in our operations: By FY 2000 we'd produced 54 models with reusable parts and were thus able to save the input of 1,700 t of new resources. Our Zero Waste policy has also been successful. In August 2000 we achieved 100% resource recycling on products collected from customers.

Although business operates on both the social and the economic fronts, we recognize that our mission--even amid the achievement of economic results--is to give the highest priority to the environment, a social factor. This has come to be the normal way we approach all our operations. I think we can regard FY 2000 as the year

in which our targets of "Eco-oriented Management" gradually began to show results. Facing the 21st century, and acting against global warming, we are more determined than ever to achieve reduced CO2 emission targets through energy-saving activities. For our production operations we have set the target of reducing CO2 emissions to half the 1990 level by 2010. Moreover, we're building environmental motivation into our general management structure. Consequently, ISO14001 certifications will be extended, by 2002, even to Group work sites that are not involved in production. Of course, we remain committed to achieving a yet more thorough "the resource recycling system" as part of our contribution to a recycling based-society.

"Environmental Report 2001" presents the results of our various efforts to protect the environment in FY 2000. Not only do we hope we succeed in communicating what we're trying to do and what we've actually achieved, we'd also like to encourage you to share your opinions about the Company's future plans.

May 2001

Masamoto SakamotoPresident and Representative Director

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Company Profile

Company name

Head office

Establishment

President

Paid-in capital

Shareholders

Fuji Xerox Co., Ltd.

Akasaka Twin Tower East17-22 Akasaka 2-chome, Minato-ku, Tokyo, Japan 107-0052

Telephone +81(3)3585-3211

February 20, 1962

Masamoto Sakamoto

JPY 20 billion (as of Dec. 31, 2000)

Fuji Photofilm Co., Ltd., 50%Xerox Ltd., 50% (as of Dec. 31, 2000)

Business Summary

Sales

0

200

'99'98

600

800

1,000

'00

Consolidated

Parent company

Consolidated

Parent company

(¥ billion)

(Year) '99'98 '00 (Year) '99'98 '00 (Year)

885.3 876.7905.6

662.7 645.0 651.1

Number of employees

0

10,000

20,000

30,000

40,000Consolidated

Parent company

(No. of people)

29,16530,350

33,520

15,383 15,335 14,837

Recurring profit

0

20

40

60

80(¥ billion)

41.1

14.1

40.8

15.8

37.7

10.9

The Fuji Xerox Group of enterprises does define that the

Document is not only information on sheets of paper but also

including electronic data, images, audio and other media,

everything given form to human thought. Documents are crucial

resources that support the conduct of business. We believe it's

important to ensure the sharing of documents and to enhance

the effective use of creativity.

To rapidly enhance office productivity, this awareness has set

us on a path of revolutionizing the process of providing

document services to clients.

The following table shows the major products in each field of

business:

Business category Main product

Others Education, etc.

Document services Office copiers

Workstations

Personal computers

Fax machines

CAD systems

Plotters

Printers

Paper

Electronic components

Copier services, etc

Summary composition of Fuji Xerox Group

Sales

Type of company

33

Subsidiarycompanies

2

14

1

16

1

6

75

2

8

Affiliated companies

4

1

14

1

Sales and service

Manufacturing

Sales

Asia Pacific holding company

Manufacturing and sales

Manufacturing

Others

Total(66)(Direct subsidiaries)(9) (14)(Core divisional companies)

JapanO

verseas

Sales per business sector (millions of yen; consolidated basis for FY 2000)

Summary sales data

Global sales by region (millions of yen; consolidated basis for FY 2000)

Document service business

Other business9,778 (1.1%)

614,051(67.8%)

281,803(31.1%)

905,633 905,633

Japan713,516(78.8%)

Asia and Oceania92,422 (10.2%)

North and South America75,335 (8.3%)

Others24,359 (2.7%)

Copiers

Information devices

Main domestic places of business

Head office

Manufacturing sites

Research site

Headquarters offices

Ebina factory

Iwatsuki factory

Takematsu factory

Nakai CorporateResearch Laboratory

: Minato-ku, Tokyo

: Ebina City, Kanagawa Prefecture

: Iwatsuki City, Saitama Prefecture

: Minami Ashigara City, Kanagawa Prefecture Research facilities

: Ashigara-kami-gun, Kanagawa Prefecture

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Summary of environmental impact data

History of Corporate Environmental Activity

Electricity

125.44 million kWh(+ 2.67 million kWh)

Water

2.54 million t(▲ 0.38 million t)

Research • Development • Manufacturing

4 work sites3,979 employees

Atmospheric emissions

CO2:20,762t-c (▲ 368t-c)NOx:8.3t (▲ 1.3t)SOx:1.7t (▲ 0.5t)

Waste

6,052t(▲ 175t)

Recycling rate:99.8%

Wastewater

2.48 million t(▲ 0.39 million t)

Fuel (crude-oil equivalent)

6,437 kL (+ 1,591 kL)

Electricity

38.02 million kWh(+ 1.37 million kWh)

Fuel (crude-oil equivalent)

2,848 kL

Head office • Sales offices • Others

Approximately 200 work sites10,858 employees

Atmospheric emissions

CO2 5,082t-c(+189t-c)

Waste(Used paper

only)459t

Recycling rate:99%

Pollution Prevention Committee established

Product Safety Committee established

Committees integrated into Environmental Safety Council

Environmental Safety Office established

CFC Countermeasure Committee established

Environmental Safety Promotion Department established

Basic Environmental Policy drafted

Midterm Environmental Plan drafted

Environmental Vision drafted

On-site factory recycling center launched

Green Product Concept drafted

ISO14001 certificate Acquisition Plan drafted

Basic Environmental Policy revised

Landmark achievement of the first factory with zero emissions

Declaration of "Mission Statement" and "Shared Values" of the company

"Corporate Ecology and Safety Promotion Department " established in the head office

The Group's "Ecology and Safety Vision" and "Basic Policy" drafted

Eco-Workshop for entire Fuji Xerox Group condacted

ISO14001 certificate acquisition plan for administrative sites drafted

19721972

19851985

198919901991

1993

19941995

19961997

19981999

2000

198919901991

1993

19941995

19961997

19981999

2000

Product recycling activityProduct recycling activity

Pollution preventionPollution prevention

Recycling of photoconductor drums and other consumables started

Recycling Production Plan drafted

Toner cartridge recycling Production line set up

Copier Production with Parts Reuse Started

Recycling Design Guidelines drafted

Product Recycling Department set up

Copier Production recycling line completed

Closed-loop recycling technology for plastic developed

Eco-oriented ManagementEco-oriented Management

Products used by customers

Atmospheric emissions

CO2 32,869t-c

Electricity

273.91 million kWh

Green procurement guidelines drafted

Resource-recycling product label introduced

100% resource recycling by collecting used copiers achieved

Environment Safety and ProtectionEnvironment Safety and Protection

(Total for copiers and multifunction products)

Figures in parentheses indicate changes against the previous year

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"Mission Statement" and "Shared Values"

Core of Eco-oriented Management(Corporate Philosophy and Policy)

In more than 39 years since its establishment in 1962, Fuji Xerox has had a history of achievement and sustained growth. As well as establishing domestic subsidiaries and setting up overseas companies, the company has come up with the New Work Way concept and has been awarded the prestigious Deming Prize for total quality control and management. The Cor-porate Philosophy and Policy, which were elaborated upon in 1979, played a great role in that success.In 1998, as we approached the threshold of a new century, we clarified our ultimate goal of the Fuji Xerox Group as a whole. Rather than pursue growth and profit for their own sake, we concluded that the objective of our actions was to make a contribution to the progress of global society. To guide and lead the attitude of each employee, we summarized our cor-porate goals in "Mission Statement" and "Shared Values."

Fuji Xerox GroupEcology & Safety Vision

Fuji Xerox GroupEcology & Safety Basic Policy

• Focus on "Customer is No. 1"

• Pursue the highest quality of products, services and processes

• Take the extra step to provide a timely and needed solution

Customer Satisfaction

• Cooperate, adapt and stimulate each other to achieve our goal

• Encourage open communication and open-mindedness

• Work collectively as a group

Team Spirit

• Have courage to take "The Road Not Taken"

• Encourage entrepreneurial spirit in business and personal life

Adventurous/Pioneer Spirit

• Enjoy the work-process as well as the outcome

• Value fulfillment at work as a source of inspiration

Joy and Fulfillment

• Foster good-will to promote comfortable and pleasant lives for each and everyone

• Promote mutual trust and sensitivity among Fuji Xerox group members

Trust and Consideration

• Respect individuals and different cultures

• Learn from our diversity

• Foster mutual trust and sensitivity to enrich society

Cultural Diversity

Environmental Consciousness

• Take responsibility for one's ethical and moral conduct in society

• Respect social ethics, honesty and integrity

High Ethical Standards

• Grasp facts correctly and solve problems through scientific thinking

• Use systematic approach to management

Scientific Thinking

• Pursue professional and personal development

• Pursue, recognize and reward excellence

• Pursue learning, originality and innovation

Professionalism

Mission StatementMission Statement

We, the Fuji Xerox Group, will strive to ;

• Build an environment for the creation and effective utilization of knowledge.• Contribute to the advancement of the global community by continuously fostering mutual trust and enriching diverse cultures.• Achieve growth and fulfillment in both our professional and personal lives.

Shared ValuesShared Values

• Promote consideration for the natural environment at every level of society

• Maintain balance between the natural environment and business activities

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Ecology and Safety (E&S) Vision and Basic Policy

Core of Eco-oriented Management(Environmental Vision and Environmental Policy)

Based on "Mission Statement" and "Shared Values," we released the Fuji Xerox Group's "E&S Vision" and "E&S Basic Pol-icy" in 1999 after reconsidering our previous environmental basic policy as drafted in 1991 and revised in 1996.

Fuji Xerox Group "Ecology and Safety Vision"The Fuji Xerox Group will introduce and develop into all aspects of its business world-class eco-conscious activities that emphasize utmost respect for the environment. Companies in the group will strive to offer customers products, services and related information that are safe and kind to the environment, and thereby contribute to the environmental preservation efforts of individuals and society.

Fuji Xerox Group "Ecology and Safety Basic Policy"Based on the recognition that environmental protection and safety preservation are fundamental parts of corporate existence, the Fuji Xerox Group will, through its entire workforce, strive to ensure that its business activities progressively reduce environmental impact. Companies in the group will work to protect the lives, physical well being and assets of their customers, employees and society at large, and will also do their utmosts to maintain and improve on such efforts.This policy shall apply to the entire operations of the Fuji Xerox Group, both in Japan and abroad.

<Progress Assessment Areass>Green Products

Recycling Systems

Environmental Management

Product Safety

Environmental Marketing

Social Contribution

Make high-quality eco-friendly products using revolutionary technology

Advance towards complete resource recycling and "Zero Waste"

Make our environmental management world-class, based on advanced environmental technology

Create safe and user-friendly products in which customers can have complete trust

Work with customers to understand their environmental needs and be their partner in developing better environmental management methods

As an eco-conscious corporate citizen, support and participate in environmental preservation activities

1. Complying with legislative and self-regulatory standardsAll business activities shall observe the legislative requirements and industry standards pertaining to safety and environmental preservation; in addition, all internal regulations and codes shall also be observed.

2. Saving energy and resourcesAll products and operations sites shall promote the saving, recycling and reuse of energy and resources, based on evaluations of their environmental impact.

3. Developing and introducing the latest technologyThe latest technological advances shall be developed and introduced to reduce environmental impact and increase product safety.

4. Improving management/supervisory systemsEnvironmental preservation and product safety management systems shall constantly be improved, in part through the performance of a variety of internal audits.

5. Creating a more harmonious relationship with societyThe company will participate in environmental preservation and product safety initiatives led by government, industry and the rest of society; it will also get involved in such activities as a corporate citizen, allowing employees to participate of their own volition.

6. Adopting an environmental marketing approachBy working to understand and share the environmental needs of customers, and by sharing knowledge gained through environmental preservation activities, the company will contribute to upgrading environmental management for the customers.

7. Enforcing information disclosureInformation regarding environmental preservation and product safety activities shall be disseminated widely inside and outside the company, and any feedback acted on appropriately.

8. Formulating contingency plansIn the event of some unforeseen event causing, or threatening to cause, damage to the local environment, or in the event of a product safety incident, the company shall respond appropriately and rapidly in good faith, and shall ensure that any repeat occurrence is prevented.

9. Raising awareness through educationThe company shall educate all employees on environmental preservation and product safety issues, and work to raise employee consciousness of these and related policies.

10. Cooperating with partnersThe company will work to gain the understanding of business partners and other firms with whom it is cooperating, so that both may work together on these common issues.

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Company-Wide Fuji Xerox Eco Workshop

Ecology and Safety Promotion Committee. Chaired by the President, the committee is an organ that places the highest priority on environmental issues.. 26 members, including those responsible for the individual functions. Meetings are convened five times each year.

Recycling Promotion meeting. Committee Chairman: DPC President (member in charge of manufacturing). Determines policy, planning, and targets etc. for resource recycling system

Green Products meeting

. Subcommittee Chairman : Head of DPC Environmental Product Safety Department. Determines planning and targets for manufacture of greener products

Environmental Management meeting. Subcommittee Chairman : Head of E&S Department. Determines planning and targets, as well as facilities budgets for environmental management at manufacturing and research sites

Environmental Marketing meeting. Subcommittee Chairman : Head of E&S Department. Determines policies in anticipation of changing market needs, etc.

Planning meeting. Subcommittee Chairman: Member in charge of environment. Determines company-wide environmental targets and actions, planning and promotion

Beginning in the year 2000, the president of Fuji Xerox, the heads of main divisions and the chiefs of all the Group companies began meeting regularly once a year. In the Eco Workshop they consider what the Fuji Xerox Group can do to preserve the environment. They discuss environmental policies and use case-study presentations to share what they have learned, in order that all might work to improve environmental business practices.

President Sakamoto presents the Group's environmental policy.

Core of Eco-oriented Management(Organization and Role)

Policy Deployment and Steering Committee

President Head Office Divisions

China Office

Research Division

(NBC) New Business Center

GMC (General Office Marketing Company)

ISC (Industry Solutions Company)

DPC (Document Product Company)

SBC (Supply Business Company)

CSSC (Customer Service and Support Company)

JSC (Jimu Service Company)

Japanese Subsidiaries

Asia Pacific Holding Company

Other overseas subsidiaries

Eco Workshop

- Ecology and Safety Promotion Committee members and people in charge of environmental preservation - People in charge of environmental preservation - Company-wide organization

- Promotional organization for environmental preservation

E&S Promotion Review meeting

E&S Promotion Review meeting

E&S Promotion Review meeting

E&S Promotion Review meeting

E&S Promotion Review meeting

E&S Promotion Review meeting

E&S Promotion Review meeting

E&S Promotion Review meeting

Individual overseas subsidiaries

E&S (Ecology and Safety) Promotion Department (mainly in charge of Environmental Activities)

Departments of Corporate Policy, Sales Management, Legal Affairs,Corporate Communications, and Management Quality Promotion

Other departments, including Personnel, Subsidiary Business Promotion, and Human Resources Development

Steering C

omm

ittee

Policy D

eployment

Internal Com

panies

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Main objective Goal Results in year 2000 Self-evalution

Pageref.

"Green Products" development

Progress "Resource Recycling System"

Building "Green Factories"

Constructing "Environmental Management" systems

Implementing "Environmental Marketing" activities

"Promoting socialharmony"

P10. Total Compliance with the International Energy Star program.

. Compliance for 56 new products in 2000 (the compliance rate to 97%).

. Acquire the "Eco Mark" Label for all copiers.

. New Products: 26 copiers acquired "Eco Mark", bringing the total to 61 models (as of Dec. 31, 2000).

P10

P18~21. Increase the number of production units with recycled parts.

. Total Production unit by 2000, reached 140,000 units.

P18~21. Reduce the use of new resources by reusing parts.

. New resource use saved 1,700 t.

P26. Reduce CO2 emissions to half the 1990 levels by 2010 at the time of production.

. Against the previous year improvement of 8% (0.094 t-c / million yen) in unit emissions, 96% of 1990 value.

P29. Reduce the use of water resources. . Against the previous year reduction of 13% (386 kt).

P32. Make a plan to gain ISO14001 certification for all administrative sites in Japan.

. Using the group inspection method, plan implemented to gain, by end of 2002, ISO14001 certification at 40 sites.

P35~36

. Systemize environmental accounting and improve cost-effectiveness.

. Web system for environmental accounting completed; total cost assessment extended to all major facilities; and great improvement in cost-effectiveness.

P30. Implement the toxic-substance control auditing at five sites.

. Introduced toxic-substance control auditing and implemented it at five sites.

P38. Encourage the spread of "Eco Mark" products.

. Eco Mark products came to account for 50% of units sold in the annual period.

P47~50

. Rethink the company's social contribution activities on environment.

. Putting emphasis on environmental education and preserving the natural environment, the company began supporting activities such as Kids ISO14000s.

P38. Develop and deliver excellent solutions. . Our program to show our intelligent assets: 4,500 people

from 1,500 companies visited our facilities.

P37. Carry out basic environmental education for all employees.

. Developed eco literacy education (class and Web instruction) courses.

P27

P27

. Keep the zero-emission.

. Cut the amount of waste by 3% against the previous year.

. Sustained commitment to zero-landfill policy.

. Annual waste cut by 2.8%.

P22~23Awarded the METI Prize in Commendation of Resource Recycling Technologies and Systems

. Achieve zero waste of used products. . By Aug. 2000, the zero-waste completed at all Japanese sites.

Awarded Environment for Tomorrow Prize

P44~45. Encourage disclosure of environmental information actively.

. Expanded the disclosure such as our environmental report and Home Page etc.

Awarded the Asahi Shimbun Foundation Grand Prize Enterprise Social Contribution Award

: Better than plan : On plan : Worse than plan

P11. Promote Energy-saving design. . Compared with 1995, the electricity consumption of copiers has

been reduced to 78% per copier and multifunction product.

DocuPrint C2220 awarded Energy-Conservation Prize

Based on our Medium-Term Strategy at Fuji Xerox we set concrete annual goals for action, and have improved. Below you can see how our major activities have made progress.

P26. Cut CO2 emissions by 1% (against the previous year).

. CO2 emissions cut by 1.8% (355 t-c).

Principal Fiscal 2000 Results

P51

P51

P51

P52

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Green ProductsGreen Products

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The Concept of Green ProductsHelping customers achieve more effective environment managementAt Fuji Xerox, "Green Products," which are designed to reduce environmental impact, have 17 environmental performance criteria such as energy and resource savings. We aim to help customers achieve more effective environmental management with green products.

Reduction of environmental impact throughout the product lifecycleWe try to reduce environmental impact at each stage of the product lifecycle such as product Planning/Development, Production, Use and Collection/Recycling.

Green Products

Environmental Performance Basic Function

. Low energy consumption

. Low resource consumption

. No release of harmful substances

. No effect on convenience of use

. Recycling of resources used to make products

. Clean, clear imaging

. Fast

. Extensive functions

. Easy to operate

. Superior design

. Free from breakdownsHelping customers achieve more effective environmental management

...

Product Planning &Development

Production

Material procurement

Packing & Shipping

Collection & Recycling

Use

Product Planning & Development "Planning and Development of Green Products" (p. 9) Development and Design System (p. 9) Policy Regarding Environmental Labels and Certification (p. 10) "Environmental Technologies Development" (p. 11) Energy Savings (p. 11) Saving Resources / Recycling Resources (p. 13) Reducing Harmful Chemicals (p. 14) Improving Products More Comfortable for the Office Environment (p. 14)

Material procurement "Green Procurement" (p. 15)

Production "Green Factory" section (from p. 26)

Packing & Shipping "Packaging and Delivery" (p. 16) Packaging Improvement (p. 16) Logistics Improvement (p. 17)

Use "Environmental Technologies Development" section (from p. 11)

Collection & Recycling "Resource Recycling System" section (from p. 18)

For more detailed information concerning each stage,see the pages listed below.

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Green Products

9

Planning and Development of Green ProductsFuji Xerox continually improves the environmental performance of products. To ensure that the green product concept is realized into the planning and development stage, we have strict internal standards. We continue to produce better green products by enforcing these standards and improving farther.

.Satisfy with requirements for all major environmental labels.

.Strengthen and continually improve systems for planning and development to make the excellent green products.

Goals

Results

Development and Design System

At Fuji Xerox the creation of highly efficient green products begins at the planning stage, wherein development targets are set. A new product is only released to the market after it has achieved these target specifications.Our products must, at the least, meet the minimum legal requirements. We also set our own standards of excellence, in consideration of the published standards for major environmental labels,* regulations and market trends. Not only do our products conform with our own stringent standards, the specifications are targeted for further improvement via midterm plans. Committed to complete lifecycle design, we also strongly emphasize the reusability of parts.We implement green design according to guidelines and data. In addition to evaluating the excellence of product design, we carry out stringent final checks to ensure that the environmental performance of our green products conforms to expectations.Our company information system supports the people involved in the development process. Using an intranet, authorized personnel have convenient access to all the standards, guidelines, information and data they need.To ensure that the latest intelligence and technology are shared and embodied in products under development, the Internal Standardization Committee regularly meets to review standards and guidelines.

* To enable consumers to make informed decisions, an environmental label is a mark awarded by a monitoring group on behalf of products demonstrating excellent environmental performance.

.Regulatory information

.Technology information

.Market information

.Internally accumulated data.Dealer feedback

.Categories of evaluation data

Internal company standards

Design standards . guidelines

Midterm product targets Evaluation criteriaChecking tools

Product planningConceptual design

Design . Prototype . Evaluation

Final appraisalDesign evaluation

Standards . Tools

Development stages

Information

Green Product Development Process

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10

Policy Regarding Environmental Labels and Certification

♦ Eco MarkThe Eco Mark*1 standards (No. 117) for copiers were released in November of 1999. These standards, which are very similar to those of the German Blue Angel mark,*2 take into account environmental impact from manufacturing to final disposal.In principle, all new models of Fuji Xerox copiers and multifunction copiers are designed to meet Eco Mark standards. As of the end of FY 2000, certification had been acquired for 61 models❇ from 10 product series.The DocuColor 1250 Series was the industry's first color copier/multifunction copier to receive the Eco Mark.

*1 The Eco Mark is an environmental labeling system that was introduced by the Japan Environment Association in 1989.

*2 The Blue Angel Mark is a system of environmental labeling instituted by the Federal Environment Agency of Germany.

Planning and Development of Green Products

❇ Models that qualify for the Eco Mark are shown on page 57.

❇ New products that acquired certification in FY 2000 are shown on page 57.

♦ International Energy Star ProgramThe Energy Star Program* rates the energy-efficiency of office equipment, especially copiers and printers. Standby-mode energy efficiency is particularly important, given that 70% of the overall energy consumed can be wasted when the devices are not actually in use.All applicable Fuji Xerox products conform to the low standby energy-consumption criteria specified by the International Energy Star program.In FY 2000, with 56❇ of our models conforming, for all the units sold that year, the rate of conformance was 97%.

* The International Energy Star Program, which awards environmental labels to energy-efficient products, is run with the participation of various national governments.

❇ Information about our Resource-Recycling Product Label Qualification Standards and Products Qualifying for the Resource-Recycling Product Label are shown on page 56.

♦ Fuji Xerox Resource-Recycling Product LabelTo ensure the effectiveness of the company's "Collection System," "Reusable Parts and Resources Program," "Production Process" and "Design for Recycling," applying 17 different categories of criteria, we have set our own stringent internal standards for the basic evaluation of products. Models that meet these standards are marked with a Resource-Recycling Product Label❇ , and detailed results of the evaluation are published. Fuji Xerox launched the system in 1999, and by FY 2000 a total of 37 models had received its Labels.

�(No. of models)

(No. of models)

0

5

10

15

20

25

30

'98

'96 '98 '99 '00'97

10

100 100 9097 97

17

75

56

11

'99 '00 (Year)

(Year)

'99 '00

27

37

(Year)

10

25 26

Annual number of models launched with the Eco Mark label

International Energy Star Program certification situation

Models compliant with Resource-Recycling Product Label standards (cumulative total)

No. of certified models Certification rate

No. of certified m

odels

Certification rate

In 1999 new standards were devised for multifunction copiers. That year there was a large increase in the number of certified models due to the bulk registration of applicable equipment.

100

80

60

40

20

0

40

20

30

10

0

100

80

60

40

20

0

(No. of models)

Note:

(%)

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Green Products

11

To create excellent green products, it's necessary to develop superior environmental technologies. Fuji Xerox has been actively pursuing the technological development of environmental characteristics, including energy savings. Our approach to the environment, along with our advanced knowledge and environmental expertise, is embodied in green products that bring lasting benefits to our customers.

.Launch the new products with the excellent energy-saving-technologies, which are newly developed.

.Reduce resource consumption and ensure a comfortable operating environment by developing technologies to make our products safe and easy to use.

.Cut the use of harmful chemical substances from our products such as lead, chrome and halogen-based fire retardants.

Energy Savings

♦ Downward Trend in Copier and Multifunction Copier Energy Consumption

The graph on the right, taking the value for 1995 as base 100, shows how we have managed to cut the energy consumed, on a per-unit basis, by the copiers and multifunction copiers we have sold and that are in actual use.

As well as increasing the number of products that incorporate our advanced energy-saving technology, we have also annually decreased the amount of energy consumed per unit. In FY 2000 energy consumption was just 78% of the FY 1995 level.

In FY 2000, owing to the successful effort to further improve our environmental technology, we released products that are even more energy-efficient. These products are effectively cutting the overall energy consumption of products used in the market.

The graph shows data for copiers and multifunction copiers. Because our digital copiers use the same print technology, however, the expertise we've developed is saving energy in both conventional and new equipment.On the next page you can get an idea of the technologies we're using to cut energy consumption.

Environmental Technologies Development

Goals

Results

Method for calculating total energy consumption

*1 Method for calculating energy-efficiency: E = (A + 7 × B) ÷ 8

E: value for energy-efficiency A: Energy used after switching on the device to make a fixed number of copies in an hour B: Energy used to make a fixed number of copies in an hour after the initial hour when measurements from "A" were taken

*2The Energy Conservation Law is a Japanese law concerned with rationalizing the use of energy.

Annual trend in energy consumption for copiers and multifunction copiers

Copiers and multifunction copiers sold after 1991Units included in calculation

'950

20

40

60

80

100

120

'98 '99 '00'97'96

100

84 8178

9094

(Year)

=∑ total energy consumption per product (Wh/year)/ ∑ number of units in operation per model (units)Total energy consumption per product (Wh/year) = per-unit amount of energy consumed by each product (Wh/year . unit) ✕ number of units in operation (units)Amount of energy consumed per unit (Wh/year) =energy-conservation efficiency*1 (Wh/h) ✕ 8 (h/day) ✕ 240 (days/year)Energy-conservation efficiency: Energy-consumption efficiency value based on the Energy Conservation Law(abbreviated title)*2

(For multifunction copiers the ordinary copier value is used.)

Total amount of electricity consumed (Wh/year . unit)

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12

Energy Savings

Environmental Technologies Development

<Saving Energy with the Fusing Mechanism>Fuji Xerox developed a free-belt nip-fusing method to fuse toner to paper drawn between the heat roll and an endless belt.Compared with conventional methods that use upper and lower rollers for fusing, a greater area of paper comes into contact with the heat roll during the process of printing. This makes heat-transfer much more efficient. In addition to raising the printing speed, it has also resulted in more compact equipment.Shrinking the warm-up period from 300 seconds to 45 seconds, this technology has enabled a time reduction of 85% (company data).

<Saving Energy with the Controller>We developed a CPU chip to control the printer. During energy-saving (sleep) mode the chip itself goes into low-consumption mode and keeps only the network functions active. Control circuitry on the chip ensures that all other circuits are switched off. Not only is the power used by the rest of the printer strictly controlled by the CPU, the amount of power needed in sleep mode by the CPU itself has been significantly reduced, down to less than 3 watts.Additionally, to cut waste during sleep mode, we've implemented energy-saving technology in the power-supply unit. Our new, highly energy-efficient power supply means that, at 5 watts, the total power requirement in sleep mode is one of the lowest in the world.The excellent technology we've developed has enabled us to achieve this standby power requirement of 5 watts, well below the 70-watt ceiling for sleep mode required by the revised Energy Star standards of November 11, 2000.

DocuPrint C2220

The nip section is formed because an endless belt is wrapped around the fuse roll.

. Lower-pressure contact loading

. Thinner roller

. Less heat

Achieves both instancy and high speed.

Free-belt nip-fusing method

Fusing roll

Pressure pad

Endless belt

Paper

Printer Controller

Energy-saving power supply: efficiency of electrical output

Conversion efficiency

Controller load

DocuPrint C1250DocuPrint C2220

CPU

ASIC Other circuitsPrint data

Wake-up signalPrint engine

Power-supply unit

Printer power-control circuit

0.50

10

20

30

40

50

60

70

80

1 1.5 2 2.5 3

(%)

(W)

♦ Energy-Saving Technology and ProductsFuji Xerox received the commendation for the DocuPrint C2220 from the chairman of the Energy-Conservation Center (Energy Conservation Prize) for the second consecutive year.Last year Fuji Xerox received The Energy Conservation Prize for the DocuColor 1250 series.The DocuPrint C2220 color laser printer, launched in December 2000, prints fast. But in addition to its blazing speed, it warms up in only 45 seconds and consumes only 5 watts in sleep mode. Below you can read about the main feature of the award-winning, energy-saving technology we developed in the fuser mechanism and controller.

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Green Products

13

Saving Resources / Recycling Resources

♦ Design for Reuse and RecyclingTo minimize the input of new resources, Fuji Xerox designs products with parts that can be reused and recycled in order for the used materials to circulate in the Closed-Loop System. You can read more about this concept in the next section, "Resource Recycling System."

Trend in toner particle size Relationship between toner particle size and toner consumption

Toner diameter (µ

m)

Toner consumption (m

g/cm2)

Conventional toner Newly developed toner

Toner particle diameter

Toner consumption

7µm 6µm

42.0 mg/cm2 37.5 mg/cm2

New toner

New toner

5'85 '90 '95 '00 '05

6

7

8

9

10

11

12

30

35

40

45

50

55

5791113Year of introduction

" C2r " is recycled paper for color or monochrome printing.

"Recycle Color Paper 100" is made entirely from recycled paper pulp.

Annual changes in the amount of recycled-paper pulp used in Fuji Xerox copier paper

Am

ount of recycled-paper pulpin copier papers

Proportion of recycled-paper pulp used in paper in printer and data sector (source: Fuji Xerox data)

26.0

33.038.3

44.747.2

'96 '97 '98 '99 '000

10

20

30

40

50

(Year)

♦ Reducing the consumption of tonerFuji Xerox has come out with a magnetic carrier and pigment toner with particles approximately six microns in diameter, the world's smallest. Using finer particles than are found in conventional toner (approx. 7µm) means that 10% less toner is needed.By using a novel polyester resin to engineer the right balance of granularity and adhesion, the company has also managed to achieve a fusion temperature that's 20°C lower than that of conventional toner. This development has allowed us to produce equipment that prints faster and reduces energy consumption.We are now studying the feasibility of using the new toner with a number of future products.

♦ Effective utilization of waste paper pulp~ Birth of recycled colored paper ~The Fuji Xerox Group has been working jointly with a paper manufacturer to advance the creation of products that are less detrimental to the environment. In particular, we've been actively promoting cutting the amount of waste generated by making more effective use of waste paper. To push things along, we've initiated a project to encourage the use of more recycled-paper pulp.Our activities have involved attempts to use recycled paper in the pulping mixtures used for every type of copier paper the Fuji Xerox Group handles, including paper cut to size for printing. When the project began in the fall of 1997, the overall proportion was 27%, but by December of 1999 that figure had increased to 44.7%. In the year 2000, as part of our continuing effort to increase the use of waste paper, we developed and marketed two types of copier paper: " C2r (Cee 2 R) " and "Recycle Color Paper 100." For color or monochrome printing and made from 70% recycled-paper pulp, " C2r " is a new form of environmental paper that is intended for recycling. Meanwhile, with "Recycle Color Paper 100" we have become the first in the world to market colored copier or printer paper made from 100% recycled-paper pulp.

Efforts such as this have helped increase the proportion of recycled-paper pulp used in Fuji Xerox copier and printer papers by a factor of 2.5 points from the 1999 figure, bringing the figure to 47.2% in December 2000.

❇ For more information, see "Reuse and Recycling Design" on page 20.

Toner diameter (µm)

(%)

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14

Reducing Harmful Chemicals

Reflecting our concern for the environment, during product development Fuji Xerox tries to reduce as less amount and number of potentially harmful chemicals as possible that are used in production. You can read more about how we do this in the next section, "Resource Recycling System."

Environmental Technologies Development

Improving Products More Comfortable for the Office Environment

To avoid harm to the customer's immediate environment, Fuji Xerox takes great care to minimize the generated of noise and ozone.

♦ Ozone emissionsWith the DocuPrint C2220 we introduced the ozone-free technology that has reduced ozone generation to almost zero.

♦ NoiseMoreover, by cutting the amount of electricity used and optimizing the thermal diffusion of heated parts, designs can also use cooling fans with lower output. This greatly reduces noise during standby mode. As a result we've held the DocuPrint C2220's noise output to a remarkably low level, making it noticeably quieter than units made by other companies.

Our DocuColor 1250 multifunction color copier not only prints faster (50 rather than 36 cpm at the monochrome copy speed) than the previous A Color 936 copier, we have also managed to keep noise levels from rising much above 3 dB. During operation the drive and paper-feed mechanisms also operate quietly. This and other features have earned the Eco Mark for the DocuColor 1250, making it the first color copier to do so.

We also carry out ongoing research to reduce noise and evaluate its causes. Continuing to work toward ever-quieter operation, we have an active program of research and development.

No. of full-color, A4 landscape printed pages per minute

Noise level (dB

A) [A

coustic power level*]

Noise levels in standby mode

Acoustic measurement chamber

Units made by other companies

*Acoustic power level: The values for the amount of acoustic energy emanating from equipment are calculated as 15 dB above the noise levels normally shown in catalogs and elsewhere. In other words, the acoustic power level = noise level + 15 dB.

DocuPrint C2220

0

10

20

30

40

50

60

70

5 10 15 20 25

❇ For more information, see "Reducing the use of toxic chemicals" on page 22.

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Green Products

15

Our products are manufactured with parts procured from suppliers. Therefore, we cannot make our green products without

cooperation with them. We request our suppliers to introduce environmental management system, because we ask their parts and

manufacturing process to reduce environmental impact. In addition, we try to enforce the recycling procurement activity aiming at

reuse and recycling of parts.

Enhanced Environmental Management System Among Suppliers

To ensure that the materials and parts we procure have minimal environmental impact, we prefer to obtain supplies from facilities that have received ISO14001 certification. This policy has encouraged a growing proportion of the large-scale facilities that supply us to work toward and receive certification. Additionally, we continue to promote the more complete compliance of suppliers with our own advanced environmental management standards.

Provision of Guidelines

Green Procurement

Goals

Results

.Encourage our suppliers as one of our environmental management activities through our environmental assessment and support.

.Enforce all suppliers compliance with the 1999 Fuji Xerox "Green Procurement Guidelines" and "Recycling Procurement Guidelines."

Green Procurement GuidelinesOur "Green Procurement Guidelines" booklet informs suppliers as to how, according to our own standards for the control of harmful chemicals, we expect them to reduce harmful chemicals in both the parts we procure and the processes used to produce them.We ask suppliers to join us in going beyond domestic legal requirements by replacing harmful substances with substitute materials as they become available.

Guidelines for Recycling Procurement We have issued our "Recycling Procurement Guidelines" booklet to encourage suppliers to share our determination to recycle parts and materials. The publication is a recycling design manual that details each aspect of practical recycling that should be considered in the design of component parts.

ISO14001 certification trend among suppliers to Fuji Xerox

(Year)

Planning to apply No plans

Recycling Procurement Guidelines

Certified

'98

'99

'00

0 20 40 60 80 100 (%)

6 54 40

22 56 22

44 38 18

Green Procurement Guidelines

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16

We commit to promote 100% resource-recycling. Based on this commitment, we are also implementing 3Rs (reduce, reuse, recycle) in packaging and delivery.

.Improve the packaging and delivery of products with quantitative environmental evaluations.

.Implement low cost recycling of "EPS" (Expanded Polystyrene) use as one of packaging materials.

.Reduce the number of vehicles by improving the delivery systems.

Packaging Improvement

Lifecycle Assessment of Packaging MaterialsFor the major packaging materials the company uses, Fuji Xerox employs lifecycle assessment (LCA)* to quantify, in terms of unit emissions of CO2, NOx and SOx, the harm caused to the environment. LCA is helping us shift to package design and packaging materials having less environmental impact.

*LCA is a method for comprehensively analyzing and evaluating the overall environmental impact of materials used in a product throughout its lifecycle, from manufacturing to use and ultimate disposal.

Packaging and Delivery

Goals

Results

"Zero Carry" helping to cut the amount of packaging materialsTo cut down on the amount of materials used for large and midsize copiers during transportation between our major warehouses, beginning in 2000 we began using "Zero Carry" air-cushion shielding for our three main midsize products."Zero carry," by contrast with conventional materials, can be reused more than 50 times and still deliver a sufficient level of protection. Now we are considering to extend its use to deliver to the customer. We estimate that this new way of protecting products in transportation has cut by half the amount of packaging materials we use for our three main midsize products.

Environmental evaluation during packaging design

Consideration of packaging concepts

Environmental evaluation (LCA)

Choice from candidate materials

Selection of packaging

"Zero Carry" shielding

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Green Products

17

♦ Recycling Protective Materials for Toner CartridgesWe collect the EPS (expanded polystyrene) protective packaging material for toner cartridges and bring it back to the factory. We used to dissolve these materials and recycle them for use in different applications.Because beads made from recycled EPS were actually more expensive than new materials, we conducted technical research in order to achieve a further reduction in environmental impact. In the year 2000 we succeeded in establishing a disintegration/recombination technology that enables us to recycle EPS as a cost-effective packing material.Using this innovative method of disintegrating the EPS and recombining the beads, in FY 2001 we began shipping toner cartridges in protective packaging made from recycled EPS.

♦ Reusable Cartons Mean Less Shipping MaterialIn the past, when shipping spare parts we would use a cardboard carton for each part, which then had to be disposed of at the place of installation. But through the introduction of special collapsible plastic cartons in May 2000, we've saved 10 t of cardboard cartons.

Furthermore, for shipping consumables to convenience stores operating copiers, we designed and introduced a special box. Now, instead of receiving consumables in multiple regular deliveries, the store can get a full set in a single drop-off. This has saved 9.7 t of shipping cartons and, because separate deliveries of each kind of item are no longer needed, the number of trips has been cut to about one-fourth the old requirement.

Protective packaging for the toner cartridgeThe white material is disintegration/recombination EPS.The upper orange material is made from virgin beads.

Collapsible shipping cartons being transported in their unfolded state

Special box for shipping consumables

Logistics Improvement

♦ More Efficient Use of TransportationTo reduce the number of vehicles needed for the delivery of consumables, paper trays and other parts for copiers and printers, we reorganized shipping within the 23 wards comprising central Tokyo. By consolidating partial deliveries and special deliveries, we introduced a shipping system on consolidation optimized by area. Thus we succeeded in reducing the number of delivery vehicles by 12%.

Reduction in number of vehicles by consolidation

Before introduction

After introduction

0

25

50

75

100 100

88

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18

'96 '97 '99 '00'98Limited introduction of fresh resources Reducing landfill disposal of used products to zero

0

5

10

15

20(%)

'96 '97 '99'98 '00(Year) Year

Fuji Xerox Environmental Vision : Advance towards complete "Resource Recycling" and "Zero Waste."

. Restrict the input of fresh resources.Through the Closed-Loop System, we promote maximal reuse of components and restrict the input of fresh resources in making new products.

. Reduce landfill disposal of used products to zero.Aiming to achieve "Zero Waste," we are developing processes to recover the maximum amount of resources from those that cannot be reused.

Resource Recycling systemThe "Resource Recycling System" are one of the core elements of our environmental preservation activities. Based on Environmental Vision, the aim of the system is to conserve energy while introducing minimum fresh resources. The ultimate goal of such efforts is to achieve Zero Waste, defined as zero net production of materials as landfill waste.

Company operations are organized in a Closed-Loop System that makes thoroughly effective use of resources. The guiding principle being that "rather than treating products as waste at the end of their useful life, they should be valued as a source of reusable parts and materials."Two main concepts structure our approach to making the Closed-Loop System of circulating materials a practical reality. One, referred to as "inverse manufacturing," is the basic way we try to minimize environmental impact. This means producing parts that can be reused or, if they cannot be reused, designing them to facilitate the separation and reuse of the materials that comprise them. We also use materials that have minimal environmental impact, and this overlaps with the other concept of "zero emissions," the central intention of which is to completely cut waste.Running operations according to this system has enabled Fuji Xerox to achieve the target of "zero landfill waste."

Am

ount of material input savings

Proportion of w

aste sent to landfills

14.9 14.9 14.9

11.7

1.2

With the reuse of parts, we could reduce 2,750t-c in CO2 emissions generated at the manufacturing stage of new parts in FY 2000.

2,000

1,000

0

3,000 2,750 t-c

t-c

Awarded the Economy, Trade and Industry Minister's (METI) Prize in the Recycling Technology and Systems category❇ 1

Awarded the Environment for Tomorrow Prize❇ 2

Resource Recycling SystemResource Recycling System

Goals

400

800

1,200

1,400

1,700

0

500

1,000

1,500

2,000

Lifecycle planning

Closed-Loop System

Closed-Loop System

Reusable / Recycling designs

Environmental impact assessments

Closed-Loop System

Parts / Components reuse

Materials reuse

Separation of toxic substances

Materials recycling

Thermal recycling

Zero WasteZero Waste

Inverse Manufacturing

Zero Emissions

(t)

❇ 1, 2 For more information, see page 51.

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19

Recycling line at the Ebina facility: disassembly and screening

The basic concept behind the Closed-Loop System is to collect used products from the market, and then reuse or recycle all the various parts and components from these products in a closed loop, so that the input of fresh resources is restricted.Used products are collected from the customer, and then disassembled and cleaned at our plants. An integrated selection, repair and quality control inspection system is then used to supply those parts that meet strict QC standards to production lines so that they can be reused. In addition, as much as possible, we try to direct the materials generated from those parts that cannot be reused to the production of new components within the loop.The information gained from these processes provides feedback for our design teams to help them create more highly recyclable components, and thereby expand the use of such parts.By improving designs and developing more advanced technology, we aim to expand production volumes while simultaneously raising the recycling ratio.

http://www.fujixerox.co.jp/arm/index2.html

Toward a More Effective Collection SystemThe effectiveness of any recycling system depends on the collection of used items and transportation to processing centers. In FY 2000, we retrieved 97% of copiers sold on the Fuji Xerox direct sales route and 78% of those sold through agencies. Before we started recycling parts (1995), there was no need for a "reverse distribution system," so we had to develop new logistics in order to organize the movement of used equipment. We've been trying hard to optimize our efficiency while minimizing the environmental impact of trucking and other means of transportation. The first thing we did was to construct an information system to rationalize collection and transfer. Our UNICORN (Used-machine Nice Control Navigator) system divides Japan into ten control blocks. For each block it processes information about used equipment in stock and computes the shortest distance to pick up the amount of used equipment necessary to feed the production of reused parts.

We have tried to improve the rate of truck utilization and make the most efficient use of transportation by maximizing loads and other measures. In FY 2000 we managed to reduce truck journeys to 17% less than the previous year. Furthermore, to curtail the unnecessary consumption of new resources, when used equipment is collected we protect it with used packing materials.

Blast cleaning is used for larger items.

Collection of used equipment - reverse distribution

Automatic shower washer for small items

Closed-Loop System

Used at customer site

Collection

Disassemble and cleaned at the plant

Screeningthe component

inspection

RepairQuality Inspection and assurance

Processing of base materials

Decomposing to raw material

Integrated production line

Feedback to design for recycle

Completion and delivery

Fuji Xerox Closed-Loop

Recycling System

Resource Recycling System

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20

Our concept of inverse manufacturing is composed of 4 main elements: product life cycle planning using LCA methodology; the creation of reusable and recyclable designs; the use of environmental impact assessments; and the Closed-Loop System.The heart of our recycling system is the "Closed-Loop System" that, based on the idea of recycling parts within a closed system, gives priority to the reuse of parts. To realize it, from the planning stage parts are designed to be reusable. Moreover, using environmental impact assessment procedures, we aim to develop excellent green products.

Inverse Manufacturing

Lifecycle PlanningWhen new products are planned at Fuji Xerox, the reuse of parts is given the highest priority. By the time a copier reaches the end of its working life of three to five years, it is natural to expect that it will be replaced by a new, succeeding model. This means we have to look ahead to ensure that parts are suitable for use in succeeding models.In 1999 we launched the Able Series, in which we ensured that, over two generations, about 40% of parts could be reused. Since then we have improved on that figure. In the year 2000 about 75% of all new models had parts that were reusable in the next generation.For our main models we will try to increase the number of parts that can be used in the succeeding models and extend reusability beyond the next generation.

Reuse and Recycling DesignRecycling design at Fuji Xerox, which aims to make more highly recyclable parts and components, is carried out based on Recycling Design Guidelines originally formulated jointly by teams of Xerox Group engineers from Japan, the United States and Europe back in 1995.These guidelines specified 130 separate requirements for good recycling design, including ease-of-disassembly, the use of common components, and the choice of materials. In addition, to increase the number of reusable components, we try to design them so that they are strong, have a long usable life, and can easily be separated.These efforts are supplemented by case study manuals that have been assembled to show designers successful ways of raising recyclability. A database of related information has been compiled, and a system is working to allow designers to share information and reflect the latest technical developments in their designs.To strengthen our cooperation with parts and materials manufacturers, we have also formulated specific Recycling Procurement Guidelines. This initiative seeks to help our development partner firms by sharing information on component longevity and via the joint development of repair technologies to make components fit for reuse. We are also helping those firms to whom we outsource production to benefit from our recycling design expertise by assisting them in incorporating reused/recycled parts, components and materials into production. http://www.fujixerox.co.jp/arm/index3.html

Reuse/recycling design guidelines

Model for three-generation parts reusability

Results of production for reuse in the year 2000

Design items incorporated in the DocuColor 1250

Logo plate

Carriage pad

Control panel

Fan / Duct

PWBA

Aluminum electrolytic condenser

Electromagnetic clutch

Harness

FPC / FFC

Relay

Low-voltage power supply

High-voltage power supply

Motor assembly

Drive assembly

Cover assembly

Tray pad

TrayCasters

Rubber-covered roller

Developer housing

Electric discharge lamp

ROS

Interlock switch

Xenon lamp

Current fuse

Circuit breaker

PWBA . Lithium battery

Drawer connector

Outer cover

Main frame

Corotron

Fan

Labels / Stickers

Flat-spring gasket

Counterbalance

Ease-of-disassemblySeparabilityLongevity Redundancy Strength

No. of units

Time

Production volume:First-generation product

Recovery rate:First-generationproduct

Production volume:Second-generation product

Production volume:Third-generation product

(a)

(b)

Second-generation equipment

(b)

First-generation equipment(a)

75%

25%

Longevity

Separability

Strength

Ease-of-disassembly

Use of reusable materials

Standardization of parts

Design long-life parts that can be used again

Make it easy to separate short-life components

Ensure parts suffer minimal damage during use/collection/recycling

Make parts and materials easy to disassemble

Select materials that can be regeneratedvia recycling processes

Use components that are common to existing and future models

(No. of models)

(Year)

Number of models designed to parts reuse

0'98 '99 '00

5

10

15

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21

283kg

-30.6%

49195MJ

-16.1%

695kg-c

-18.3%

6.39kg

-25.1%

Resource Recycling System

Environmental Impact Assessment

♦ Resource-Recycling ProductsUsing stringent internal criteria, we evaluate the environmental impact of our products throughout the various stages — collection, reuse or raw material conversion of components, manufacturing, and recycling design — of the Closed-Loop System. We have designated those copiers and digital copiers to meet all these criteria as "Resource-Recycling Products," and mark them with the label pictured to the right. ❇

♦ Product Eco-Data We evaluate environmental impact over the entire lifecycle of a product, from the manufacturing process and use through to disposal after its useful life. For each product we have started making available, in an easily understandable form, product eco-data for each stage: "manufacture," "use," and "after use."By using stringent evaluation methods such as LCA at each stage in order to assess the use of material resources, amount of energy consumed, CO2 emission and use of environmentally detrimental substances, we can ascertain when these factors are more prevalent at the manufacturing stage of materials and parts. The analysis of all these items allows us to reduce environmental impact by designing for the reuse of parts in which these factors weigh heaviest during production.We carry out these investigations of environmental impact jointly with Mitsubishi Research Institute, Inc.

Resource-Recycling Product label

Product Eco-Data Booklet

0

20

Material resources consumed

Energy consumed

Environmentallydetrimental substances (included in part)

Greenhouse gas emissions

Units made with all new parts

Eco-data values for the DocuCentre 605

40

60

120(%)

100

80

Units made with reused parts

❇ Assessment criteria and a list of products that qualify are shown on page 56.

Results for the Year 2000

Number of models using recycled parts (cumulative totals)

0

10

'96 '97 '99'98 '00

20

30

60

50

40

(No. of models)

(year)

'96 '97 '99'98 '00 (year)

'96 '97 '99'98 '00 (year)Number of units manufactured using recycled parts (cumulative totals)

5

10

15

20

25(10 thousand units)

Rate of parts reuse (proportion of parts used)

(%)

0

0

10

20

30

60

50

40

http://www.fujixerox.co.jp/ecohttp://www.fujixerox.co.jp/arm/index7.htmlhttp://www.fujixerox.co.jp/arm/index8.html

14

2734

42

54

3035

40 4350

1.4

4.9

8.711.0

14.0

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22

It is "zero emissions" to achive zero waste. That is why, based on a concept of a "Closed-Loop System," we give a high priority to the reuse of parts. Used copiers after the end of their service life, are collected and broken down by hand into 44 different types of parts. To thoroughly recycle resources, parts that cannot be reused are ultimately processed into useful materials. We have even been recycling rubber and glass materials that, until recently, were poorly recycled. In addition, working with materials manufacturers, for the first time in the industry we've developed a way to recycle a particular type of plastic into material that is of equivalent quality to fresh plastic. Endeavoring to minimize the input of new resources, we use these materials in our resource recycling system.

Zero Emissions (Product-Related)

Reuse of MaterialsPlastics are typically difficult to recycle because the quality of their material has degraded. We have jointly developed with Ube Saikon, a Japanese plastics manufacturer, a system that is the first in the world to be able to recycle the ABS (acrylonitrile butadiene styrene) resin used to make the external covers of copiers.Used covers that have been collected from the market are separated and then pulverized and cleaned to produce fresh ABS raw material, which is then used to make new copier.Quality control tests have shown that the recycled ABS plastic is as good as newly manufactured raw material in terms of its moldability, physical properties and color tone. These results have been independently validated in tests conducted by Underwriters Laboratories Inc., a safety-testing corporation based in the United States.We now used recycled plastic to make external covers for copiers — one of the parts where the strictest standards for visual appearance apply. Currently, it is being supplied to the production lines for the various DocuCentre 705/605/505 and DocuColor 1250 models.

We also used to remove aluminum copier drums from the used copiers we collected, and they have been used for other aluminum products. However, we standardized the material used in drum cylinders so that no custom additions would be needed. Then, in May 2000, with the cooperation of a materials manufacturer we set up a system for closed-loop recycling of the aluminum used in drum cylinders.Today, with regard to new drums we recycle all the aluminum recovered from the drums in the used copiers we collected.

Reducing the Use of Toxic ChemicalsTo reduce the use of chemicals that are estimated to be harmful to the environment, we have taken the initiative and formulated our own internal “Green Procurement Guidelines.” This places us ahead of Japanese and international legislation on this matter, as well as domestic industry standards. We have distributed these guidelines to all our parts suppliers so that we can ensure that no harmful substances are used or incorporated in the production of parts and materials, starting at the purchasing stage. Our technical development teams are also working to create alternative parts and materials where required.

So far, since April of 2000, we have used chrome-free galvanized sheet steel in all our new products. We have been using lead-free wiring in some new products since May of 1999. We also introduced lead-free lenses to some of our new products in April 2000. Further, we're going ahead with other plans, such as the use of lead-free solder and halogen-free plastics in all our products.

Process using Ube Saikon-developed technology

Process using UbeSaikon/Fuji Xerox-developed technology

Copier in use Used copier disassembled at factory

Plastic cover separated

CrushingIntegrated production line

Molding/assembly

Removal of internal impurities

Cleaning

Repalletization

Graded, crushed ABS plastic

http://www.fujixerox.co.jp/arm/index6.html

Closed-Loop System forABS plastic recycling

(removal of surface impurities)

❇ For more information, see page 51.

This ABS recycling technology was awarded the TechnologyPrize in the 10th Nikkei BP Awards❇

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23

Resource Recycling System

100% Material RecyclingFormerly, when used copiers was collected for disposal, the main recycling materials were iron and other metals. But unrecyclable materials were landfilled for disposal. Now, Fuji Xerox is committed to an uncompromising "Zero Landfill Waste" policy. Beginning in the autumn of 1998, in cooperation with best 13 recycling companies all over Japan by using the latest technologies. After disassembling and sorting 18 t of parts from 100 used copiers collected at the end of their service life, we confirmed that it was possible to achieve zero waste.

Then, beginning in February 1999 at the Ebina Facility, as part of a systematic process encompassing collection to recycling, we made complete recycling a practical reality with a disassembly line in which parts that could not be reused were removed and dismantled for recycling.

In addition, to facilitate research and the proving trials needed to raise the efficiency of disassembly and material separation, we built "Ecoland" at Ebina Facility. This allowed us to process copiers that had reached the end of their service life in the Tokyo, Kanagawa and Yamanashi areas.

We expanded this "Zero Landfill Waste" system to cover the whole country. We built a network with 23 recycling companies with the same type of technology, which had proved effective. In August 2000 our recycling system was complete and we achieved our goal of zero landfill waste by completely recycling, all the materials except for some process loss in the used copiers we had collected from customers.

Disassembly and separation at Ecoland

http://www.fujixerox.co.jp/arm/index5.html

Detailed results of the effort to achieve 100% resource recycling

Recycled item

Iron

Aluminum

Copper

Lead

Gold

Silver

Other metalsPlastic

Cork substitute

Material recovery rateFor slag For heat

Recycling rateIncinerationDust

Process loss

Total

Previous method(process up to 1999)

70.95

0.30

0.76

0.01

0

0

0

0

0

74.570.33

4.68

79.585.48

14.94

100%

1.67

Zero-waste processing(process in the year 2000)

72.46

1.18

2.29

0.02

Minute amount

Minute amount

0.37

3.23

5.83

87.002.12

10.85

99.970

0

0.03

100%

0

Glass

Rubber

0.88

0

1.31

0.31

100% Material RecyclingIron parts

Frame

Iron and non-ironcombination parts

Electronic boardsMotors

Covers and trays

Blast-furnace reducing agent

Covers/Trays

External plastic parts

Rubber

Glass parts

LensesPlatensHousing/Duct

GlassDrum

CRU• Toner

CRUDrum Toner

Blast-furnace reducing agent

Converter material

PS pellets

Plywood chips

Packing materials Toxic parts

Lamps Batteries

Rubber parts

Fe Cu

Ag

Al

Au Sn Pb

Glass

Mercury Cadmium

Other plasticparts

DADF belt Expanded polystyrene Pallets

Breaking

Melting

Breaking

Sorting

Melting

Refining

Breaking

Washing

Kneading

Repelletization

Breaking Breaking

Pulverizing

Removal of contamination

Removal of contamination

Breaking Breaking Breaking

Breaking

Breaking

Breaking

Refining

Refining

Batteries

Baking

Compacting

Melting

Dissolution

Aluminum Repelletization

Forming

Kneading

Washing

Cullet

Fuse consolidation

Removal of contamination Cullet

Achieving Zero Landfill Waste

Repelletization ➞ Quality assurance

Parts detached from used copiers➞ Quality assurance Use in new copier

Material recycling

MercuryGlassIron

AluminumCopper

Au Sn PtLead Zinc

Rubber

Energy recycling

Recycling efficiency

Reduced environm

ental impact

100% recycling

Sorted into 44 categories ➞ Latest recycling processes

Disassembly

Material reuse

Sorting of toxic parts

Material breakdown(Crushing)

Elemented breakdown

(detoxification)

Elemented breakdown

Material breakdown(Crushing)

Sorting of non-toxic

parts

(combustion improver, melting enhancer)

(landfill)

(material reuse)

Plastic(material)

(plastic)

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24

Support for Resource Recycling System: Information SystemsThe implementation of the Closed-Loop System to promote Zero Waste and resource recycling is dependent on the integration of various types of information. We have developed six major information systems to support our recycling efforts, which we are currently in the process of integrating fully.

Collection unit volume simulation system

Collectionlogistics control

system

Asset recovery streammanagement system

Recycling design database

Recycling-production mainframe system

• Collection unit volume simulation systemA special program uses past data to simulate estimated volumes of used and collected products, and their quality. This helps to make collection and recycling production activities planned and efficient.

• Collection logistics control systemProducts collected at all of our recycling centers in Japan are recorded in a database. This nationwide network helps raise the efficiency of sending collected products to factories, ensuring smooth logistics.

• Recycling-production mainframe systemBased on the results of the collection volume simulation and inventory data from the nationwide recycling network, this system determines and plans recycling production volumes several months in advance to help smooth out variations in collection rates.

• Recycled parts QC/QA systemBased on technical data on component quality control and longevity, this system, run as a database, sets strict selection criteria for reusable parts. It ensures that machines containing such are of equivalent quality to brand new machines.

• Recycling design databaseThis database, which is accessible via a company intranet, collates all the data and expertise on Resource-Recycling design. It allows all our designers to share information on the best methods in this field.

• Asset recovery stream management systemThis system manages the recovery of resources from used components that cannot be reused via the disassembly of collected machines on a unit basis. It manages material recycling volumes by category, thereby integrating the Resource-Recycling process to help achieve Zero Landfill Waste.

Recycled partsQC/QA system

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25

Reuse and Recycling of Toner Cartridges

Resource Recycling System

Goals

Results

.Ensure more collection of used toner cartridges and increase the number of reuse.

Closed-Loop System for Toner CartridgesAt an early stage we began recycling the photoconductor drums, cartridges and other exhausted consumables used in our main copiers and printers. In 1994 we established a Closed-Loop System for toner cartridges and built a recycling line to detach, disassemble, clean, inspect, process and rebuild cartridges. Recycled items are inspected and packed for reuse.Our efforts have paid off. By 1997, through the reuse of parts and recycling of materials from parts we were unable to use, nothing from our used toner cartridges was ending up in landfill environments. We had achieved zero emissions.Our designers have also been working to create cartridges from parts that can be recycled more effectively. Right from the planning stage, parts are developed for optimal reuse and recycling.In addition to technical efforts, we have implemented a distribution infrastructure created through our rental business. This has enabled us to achieve a high collection rate of 84% for toner cartridges. Moreover, 35% of the units we ship contain recycled parts.

Cartridge collection rate*

72

828084

Parts reuse rate (weight)

2934

3035

Closed-Loop System for Toner Cartridges

Conversion to incinerator ash

New component /new materials

Production / assembly line

Distribution / sale

Customer

Regional warehouse

Collection

Processing / assembly

Inspection

Cleaning

Disassembly

Disassembly Separation

Conversion to materials

Zero landfill

Conversion to materials

MaterialsseparationLandfill

Use of energy

Conversion to fuel

Component

Product

Sub-assemblycomponents

Recycled materials

Goods-in inspection

Collection rate

Reuse rate

*Cartridge collection rate: Expressed as a percentage, the number of units collected during the current year divided by the number of units shipped from the factory during the previous year.

'97 '98 '99 '00 (Year) '97 '98 '99 '00 (Year)0

20

40

60

80

100

0

20

40

60

80

100 (%) (%)

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26

Energy-Saving ActivitiesThe prevention of global warming is a critical issue on the earth. We are doing our best to save as much energy as we can at production.

.Achieve 1% reduction in CO2 emissions against the previous year.

.Cut CO2 emissions from energy use to half the 1990 figure by 2010.

Goals

Results

CO2 Emissions RecordIn FY 2000 we reduced CO2 emissions from our three manufacturing sites by 1.8% against the previous year. Total emissions, at 19,727 t, were down by 355 t. We also started implementing plans to reduce unit output by about 8%, improving from 0.102 to 0.094 t-c per ¥1 million. Year on year, this FY 2000 result was 96% of the figure for 1990.Most effective countermeasure to achieve these reductions is the switch from heavy fuel oil to kerosene. The rest are effective energy-saving measures, such as the energy-efficient air-conditioning pumps and the enagy-saving environmental rooms.

Operational Status of Solar Power Generation SystemBeginning in March 1999, we have been taking part in a jointly implemented solar-energy project under the auspices of NEDO (New Energy and Industrial Technology Development Organization). The monthly amount of electricity generated varies greatly, depending on solar radiation. Thus, during FY 2000, our solar-cell system generated 81,400 kWh.Compared with energy purchased from a power company, we could succeed in saving 10 t of CO2.

Ice Storage SystemIn our active effort to save energy, by the end of the year 2000 we had installed four sets of ice storage system at our three manufacturing sites.In 1995 the equipment we introduced at the Iwatsuki site was the first ice storage system installed by a private corporation. We followed up with new installations in 1998. In FY 2000, by using electricity generated late at night, we reduced 22 t of CO2 emissions.

We aim to minimize both waste and new use of limited resources on the earth, and carry out the Green factories.

Green FactoryGreen Factory

CO2 emissions: absolute value and relative to turnoverNotes:1.We used a standard factor for the electrical and electronics industry to calculate the amount

of CO2 emitted by the generation of electricity we consume. This value does not take into account improvements made by the power industry.

2.Beginning in 2000 we started using "t-c / ¥1 million" as the Production standard cost.

(1000 t-c) (t-c / ¥1 million)CO2 emissionsProduction standard cost

Am

ount emitted

Production

standard cost

0

5

10

15

20

25

0

0.1

0.2

'96 '97 '98 '99 '00 (Year)

19.9 20.3 21.0 20.1 19.7

0.105 0.110 0.1210.102

0.094

The solar-energy system was awarded the Year 2000 New Energy Foundation Director's Prize (New Energy Prize)❇

Changes in monthly amount of solar-electricity generation(month)

(1,000 kWh)

Total amount generated in 2000: 81,400 kWhTotal amount generated in 1999: 71,700 kWh

20001999

0

3

6

9

12

15

3.56

5.63 5.72

3.48

6.90

11.75

9.569.3110.11

8.51

6.03

8.23

11.22

14.52

8.09

4.735.33

3.71

5.31

3.23 3.44

7.65

1 2 3 4 5 6 7 8 9 10 11 12

Iwatsuki site: A storage tank, part of the first ice storage system installed by a private corporation

❇ For more information see page 51.

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27

Green Factory

Zero Emissions Activities (at manufacturing sites)We achieved our monthly target of zero landfill waste by the end of 1999, after we tried to reuse/recycle all the waste generated within manufacturing site. In FY 2000, we set the amount of the waste materials generated as an additional new target, which was to cut the amount of materials that required recycling.

.Continue 100% recycling of all waste materials (zero waste).

.Reduce the amounts of annual waste by 3% against the previous year.

Goals

Results

Achievement of Zero Waste

All three manufacturing sites attained 100% resource-recycling on a monthly basis by the end of FY 1999. In FY 2000, 100% resource-recycling was achieved for these sites throughout the year.

Stored PCB*

Fuji Xerox stringently manages the PCB that it stores. Every two months, at each manufacturing site the stored materials undergo inspection. At the Iwatsuki site, for example, we maintain 58 drums in which we store parts from old generators (condensers, transformers, etc.). There are also eight condensers from electrical installations and 874 ballasts from old fluorescent lighting installations.This year we're examining ways to safely dispose of this stored PCB, and we anticipate solving the problem during 2002.

* PCB is short for polychlorinated biphenyl. It was formerly widely used as an insulating oil in electrical equipment.

Reduction of the Amounts of Waste Generated

In terms of the new reduction target for the amounts of waste generated, 5,967 t of waste was generated in 2000, excluding facility/machinery disposal due to the moving of a manufacturing site, which was 2.8% reduction against the previous year. Unfortunately, we could not reach the target of 3.0% reduction. We will cope with the reduction of individual types of waste carefully to achieve the 3.0% target of reduction.

❇ Detailed data concerning waste materials at each facility is shown on pages 54-55.

Ratio of waste generated

Waste volumes and resouce-recycling ratio

0

2

4

6

8

10

0

20

40

60

80

100 (%)(1,000 t)

'96 '97 '98 '99 '00

Waste volumeRecycling ratio

(Year)

7.1 6.85.9 6.2 6.0

82

94 97 99 100

Note:

Waste paper 48%

Waste plastic 21%

Alkali waste 9%

Sludge 4%Non-ferrous waste 3%

Waste oil 3%Wood shavings 2%

Others 1%

Scrap iron 9%

Waste volum

es

Recycling ratio

The proportion of waste paper is relatively high because of the amount of paper used during the development of our main products--copiers and printers--and testing prior to shipment.

PCB storage at the Iwatsuki site

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28

Protecting Air, Water and SoilFuji Xerox carries out its own stringent measures to minimize environmental risk including air, water and soil pollution. If, for example, it were to become apparent that pollution has exceeded environmental standards, we would immediately inform the local authorities, publicly announce the situation, and take prompt actions to clean and restore, as best we could, the situation to its former state.

.Eliminate dichloromethane emissions completely, and reduce nitrogen oxides (NOx) and sulphur oxides (SOx) emissions.

.Save water resources.

Goals

Results

Use of Organochlorine Solvents Completely Eliminated

In 1997 we began phasing out organochlorine solvents (dichloromethane*). In February 2000, we completely replaced it in production processes with alternative cleaning methods.

With this, we have been able to eliminate the emissions of all the 13 major substances harmful to the atmosphere as regulated in the 1996 revision to the Air-Pollution Prevention Act.

* Also known as methylene chloride. Formerly we used it as a solvent and degreasing agent.

Cutting Emissions of NOx*1 and SOx*2

By measures such as switching boiler fuel from heavy oil to kerosene, we have been cutting the annual NOx emissions to 7.9 t, reducing by 1.2 t against the previous year.We also reduced SOx emissions by 0.5 t, holding the total down to 1.7 t. We could achieve substantial reductions for both NOx and SOx emissions.

*1 NOx is a general term referring to compounds of nitrogen and oxygen, a major factor in air pollution. Transportation is a mobile source, and stationary sources include power stations and factories.

*2 SOx is a general term referring to compounds of sulfur and oxygen. Major causes of acid rain, these gases are emitted during the combustion of substances containing sulfur.

Annual usage of dichloromethane

0

20

40

60

80

(t)

120

100

'96 '97 '98 '99 '00 (Year)

117.4

29.3 22.8

11.70.3

Am

ount used

❇ Actual data showing our results for NOx and SOx is shown on pages 54-55. Annual amount of NOx and SOx emissions

0

2

4

6

8

10

12 (t)

11.1

9.9 10.19.1

7.9

3.03.6

4.2

2.21.7

NOx SOx

Em

issions

'96 '97 '98 '99 '00 (Year)

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Voluntarily setting strict regulations for ourselves, Fuji Xerox established a policy for wastewater and water management under legal regulations. In FY 2000 we were able to meet our own standards of excellence.

To reuse water we continued to improve our water-processing facilities. This helped reduce annual water consumption by 386,000 t from 2.871 million t to 2.486 million t, a reduction of 13% against the previous year.

29

Green Factory

Efficient Use of Water Resources

In November 1998, following the results of a survey at the Iwatsuki Center, we started work to remove soil and remediate it. This work was completed, according to schedule, in June 2000.Presently we're still carrying out both air sparging* and pumping up ground water for cleaning and return. This is rapidly returning groundwater to an acceptable state, and work is planned to finish during FY 2001.

* In air sparging, compounds are volatilized and extracted by pumping compressed air through groundwater.

At the Takematsu center we voluntarily carried out a year-long soil survey beginning in November 1999. As a result, we discovered some highly localized concentrations of arsenic and selenium that exceeded environmental standard. To get opinions on the health risk posed by these concentrations, we sent the survey results to a specialist organization in America and asked outside experts to analyze the situation after making an on-the-spot inspection. The verdict was that there was no health risk to people working at the plant or living in its vicinity.By the summer of 2001 we plan to complete soil-replacement work in order to return the soil at these places to environmental parameters exceeding those set in the environmental standards.We reported the situation to the relevant authorities and issued news releases. For local residents we held meetings to explain the situation. We also used our website to disclose information and explain the corrective actions to be taken.

Soil Remediation

Annual water consumption

'96 '97 '98 '99 '00

(1000 t)

(Year)0

500

1,000

1,500

2,000

2,500

3,000

3,5003,172 3,054

4,0003,490

2,871

2.486

Am

ount of water used

❇ Data for water pollution and water consumption are shown on pages 54-55.

❇ Data about soil treatment is shown on pages 54-55.

Decision to extend remediation periodLate Sept. 2001

Air spargingMid Sept.

Early JuneEarly Sept.

Late Aug.Late Dec.Mid Nov. Drilling of extraction and return boreholes

F building ground survey

Iwatsuki soil-remediation schedule

Early Dec.

'98 '99 '00 '01 '02

Early June

Extended period of groundwater remediation

Soil removal and remediation

Corrective action study

A countermeasures

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30

Controlling of Hazardous ChemicalsDuring our operations we have to use certain hazardous chemicals. These still pose risks to the environment and have the potential to human health and cause disasters. To minimize risk, as well as implement our own stringent standards, Fuji Xerox is doing the disclosure progressively.

.Strengthen the control and minimize risks : cutting the use and emission of chemicals; increasing the use of yellow cards; and introducing the toxic substance auditing.

Goals

Results

Observing companywide regulations for the management of toxic substances established in 1999, an audit was implemented at the Corporate Research Center at Nakai, and Suzuka Fuji Xerox Co., Ltd. (manufacturing subsidiary) in addition to three manufacturing sites: Ebina, Iwatsuki and Takematsu. The audit results were reported to the Fuji Xerox Risk Management Committee*2.Though toxic substances were managed well, we will continually improve to realize higher level management system.

*1 Here, a toxic substance refers to a chemical substance specified by the Toxic Substances and Toxic Substances Handling Act.

*2 Chaired by the President, the Risk Management Committee decides countermeasures after analyzing and assessing the degree of risk. It meets twice annually.

Toxic Substance*1 Management Audit

Following the PRTR (Pollution Release and Transfer Register) regulations of the electrical and electronics industry, since 1995 Fuji Xerox has been annually reported the management status of substances covered by PRTR regulations to the Japan Business Machinery Association.In FY 1999 the company used a total of 73.40 t of only eight of the 174 substances covered by PRTR.Dichloromethane, a recognized air-pollution hazard, accounted for 11.59 t of the 1999 figure. In the year 2000, however, we replaced organochlorine solvents and completely stopped using dichloromethane. As result, we eliminated 13 air-polluting substances which covered by PRTR. ❇

Pollution Release and Transfer Register* (PRTR)

Signs to indicate a place where toxic substancesare stored or kept

* It is now legally stipulated in Japan that listed pollutants be tracked by recording transfers and releases in the PRTR.

PRTR monitoring results (Apr. 1, 1999 to Mar. 31, 2000)

Substance

XyleneDichloromethaneStyrene monomerSelenium or selenium compoundsTolueneHydrazineMonoethanolamineTetrahydrofuranTotal

Amount handled

13.2511.590.460.25

12.900.401.74

32.8173.40

Released to atmosphere

1.698.220.010.001.750.130.008.71

21.11

Released in water

Elimination processing

0.000.000.000.000.000.270.840.001.11

Released in water(shipped as part of product)

0.000.000.340.126.220.000.000.006.68

0.100.000.000.000.420.000.000.000.52

Transferred as waste

8.440.310.110.134.510.000.00

24.1037.60

Recycled

3.022.460.000.000.000.000.900.006.38

❇ Information about the switch to organochlorine alternatives is shown on page 28.

(units: t)

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Yellow cards are issued to accompany inflammable substances and other potentially hazardous cargoes. The cards explain what to do in an emergency, such as a traffic accident, spillage or fire. Drivers usually keep these cards with them, in case they have to know, or explain to emergency services, how to deal with an emergency and what equipment is required.In April 1999, Fuji Xerox began issuing yellow cards when toners and developers for copiers and printers were shipped in consignments of consumables.In October 2000, the system was extended to include the used copiers that we collect for recycling.In our effort to ensure safety, we plan to introduce yellow cards for all trips made via our transportation channels.

31

Green Factory

Extension of Yellow Card System to Collection Logistics Control System

Fuji Xerox believes that the open disclosure of the chemicals information used in products helps to reduce risk. In May 2000, based on the principles of information disclosure, for the toner and other consumables used in our printers and copiers, we posted MSDS (material safety data sheets) on our website.In the 6 months since the posting of that information the MSDS pages were accessed more than 6,000 times. This shows many users have found them useful.

* To help users handle chemical products more safely, a material safety data sheet displays information such as chemical name, chemical product name, type of hazard, reactivity, toxicity, environmental hazard, handling equipment, safe handling instructions, emergency countermeasures and legal obligations. This indispensable information is arranged as a set of "instructions for the handling of chemical products."

Material Safety Data Sheets* (MSDS) on Website

Yellow card for bulk toner

A material safety data sheet on our website

http://www.fujixerox.co.jp/eps/msds-ht-j-001.html

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1. Management vision and leadership Indicate a clear policy toward the environment and secure the active commitment of top management.

2. Understand customers and market Contribute to our customers' own environmental conservation efforts.

3. Devise and implement a strategy Make dealing with environmental issues an important part of our strategy.

4. Human resource development and training environment Educate employees about the environment and support conservation initiatives.

5. Process management Include environmental targets in our business process and review our progress toward achieving those targets.

6. Share and make use of information Provide and exchange information that supports environmental conservation activities.

7. Results of company activities

8. Customer satisfaction

4.2 Environmental policy

4.3 Plan

4.4 Execution and operation

4.5 Inspection and corrective action

4.6 Review by management

Step in ISO14001

Management quality category (FY 2000)

32

Activities to strengthen the management quality of the entire Fuji Xerox Group involve parallel "improvement of management quality" as well as "environmental management." By extending them to the entire Group, we aim to farther improve environmental management of the Fuji Xerox Group.

ISO14001 and Management Quality Improvement ProgramSince the year 2000, one of the basic policies of the management quality improvement program has been "environmental conservation and social responsibility." Specifically, we decided on measures concerning the "environment" in 6 categories of the program. By developing the measures, we can harmonize "environmental management activities" with "management quality improvement."

Environmental ManagementEnvironmental Management

Environmental Audit and ISO14001In 1997 each of our three manufacturing sites achieved ISO14001 certification. Now, considering ISO14001 certifications a tool to achieve environmental management, we aim to acquire ISO14001 at the internal companies, and sales subsidiaries.

.At administrative sites in Japan (Internal companies and Sales subsidiaries, etc.), based on own judgment, progress toward ISO14001 certification.

.Achieve the renewal of certification by independent audit and certification organizations for all of the five sites currently certified.

Goals

Results

To promote environmental management, we held an "Eco Workshop" that was attended by a total of 130 people from 52 companies including the heads of 12 Group companies, as well as the heads of all of the internal companies and sales subsidiaries.Masamoto Sakamoto, president Fuji Xerox, addressed the meeting, explaining the necessity for environmental management and the direction it is taking. Lively question-and-answer sessions then followed excellent presentations of environmental management cases studies from within the Group.40 domestic administrative sites plan to acquire ISO14001 certification by the end of FY2002 (as of Dec. 31, 2000).

Plan to Acquire ISO14001 at Administrative Sites

Eco Workshop participants listening attentively to an environmental management case study

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33

Environmental Management

At Fuji Xerox our commitment to environmental protection was assured by the acquisition of ISO14001 certification at all the manufacturing sites in 1997.To ensure continuous systematic improvement of environmental performance (with quantifiable results), we have implemented three methods to get accurate feedback on environmental performance at each site: internal audit at the site; mutual audit; and, to acquire ISO14001 certification, auditting by audit and certification organizations.

Environmental Audit

ISO14001 Certification Audit by Outside Organizations

After attending external courses to acquire qualifications, the staff at each site conduct internal environmental audit. It is carried out regularly, based on the annual schedule of each site. As part of the internal environmental management system, reports are made to the managements at the site.

Internal Audit

External assessors, who have no direct relationship with the site being examined, carry out audit with a strictly non-partisan attitude. In a manner compatible with the system, audit is conducted with regard to legality and efficiency. This year we also added the audit of toxic substances as a category for attention.Naturally, the audit are carried out objectively. At the same time, through the activities of the assessors, the excellent know-how and policies at each work site are discussed. This helps to ensure group-wide levels of excellence.

Acquisition of ISO14001 requires extensive audit:• Audit to acquire initial certification• Surveillance after the first and the second year• Audit for certification renewal in every three years

Mutual Audit ISO14001 Certification Auditby Outside Organizations

♦ ISO14001 Certification Audit During FY 2000 five more group companies acquired ISO14001 certification. These companies are an overseas manufacturing subsidiary in China and four group companies in Australia and Japan: Xerox High Technology Company of Shenzen, Fuji Xerox Australia (Zetland), Fuji Xerox Distribution, Kanagawa Xerox, and Miyagi Xerox (March 2001).

♦ Surveillance and Renewal of CertificationAll the five sites where renewal of ISO14001 certification was due in FY 2000 passed the audit.

At three other sites that were under surveillance after the first year of initial ISO14001 certification, the evaluation was "improved."

❇ More information about ISO14001 certification status is shown on page 58.

Fuji Xerox Australia (Zetland) Aug. 2000

Group Company / site Date of acquisition

Takematsu Center Mar. 1997

Mar. 1999

Aug. 1999

Apr. 2000

Ebina Center

Suzuka Fuji Xerox Co., Ltd.

May 1997 May 2000

May 1997 Jun. 2000

Oct. 1997

Dec. 1997

Nov. 2000

Dec. 2000

Iwatsuki Center

Fuji Xerox Korea Co., Ltd. (Inchon)

Fuji Xerox Office Supply Co., Ltd.

Fuji Xerox Australia (Alexandria)

Jun. 1998Fuji Xerox of Shanghai Improved

Group company / Manufacturing site

Date of certification Surveillance Date of

renewal

Improved

Improved

ISO14001 certification newly acquired in fiscal 2000

ISO14001 surveillance and renewal of certification

Xerox High Technology Company of Shenzen Ltd. Nov. 2000

Fuji Xerox Distribution Co., Ltd. Dec. 2000

Miyagi Xerox Co., Ltd. Mar. 2001

Kanagawa Xerox Co., Ltd. Dec. 2000

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34

Our commitment to the "green office" idea goes as far as consolidating and extending ISO14001 compliance to include administrative sites. Our activities consist of four concepts: collecting of office waste paper, reduction of waste, energy savings and green procurement.

.Aim to reduce the environmental impact during daily office work at administrative sites that have not been certified ISO14001.

Goals

Results

Fuji Xerox is one of the core members of GPN (Green Purchasing Network), a private organization that continuously promotes the provision and diffusion of products that are designed with consideration for the environment. Among the many GPN events which Fuji Xerox attended are: • March 2000 • October 2000

Compared with the previous year, although the amount of purchased procurement and the number of items bought increased in the year 2000, the proportion of items was about the same.

Creating the Eco-friendly Office

Definition of Green Office Green Office Program History

It is an office where every single employee works to reduce environmental impact by saving energy and conserving resources.

Green procurement

Phoenix Movement RE-X 1 • 2 • 3

Green Office Program

'91 '94 '97 '99

Green Purchasing Activities

According to recycling level, in our green-box system we sort waste copy paper into three categories.Copy paper accounts for the bulk of waste paper that is collected. For a number of years we've been trying to cut the amount of copy paper we use by printing on the reverse side of copies, duplex printing and using electronic documents, including e-mail for memos. As a result the proportion of waste copy paper in our green boxes has been falling. Whereas 84.5% of our waste paper in 1991 was copy paper, in the year 2000 that proportion dropped to 63.4%.

PHOENIX Program (paper collection)

GPN Green Purchasing FairCommemoration of 30th Anniversary of Expo Japan Environment 21 Festival

Proportion of copy paper collected from waste-paper green boxes

'96 '97 '98 '99 '00

77.274.3

69.3 70.663.4

0

20

40

60

100

80

(%)

(Year)

umber of green items procured

amount spent on green procurement

'98 '99 '000

10,000

20,000

30,000

50

100(¥ 1,000)

(Year) '98 '99 '00 (Year)0 0

1,000

2,000

3,000

6,000

4,000

5,000

(units) (%)Spending on green procurem

ent

Proportion of total procurem

ent

No. of green item

s bought

19,86917,651

22,409

2,6993,030

21.7 21.5

5,948

No. of itemsPercentage of total procurement

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.Improve the efficiency of spending and reduce environmental impact by analyzing the results of total-cost assessments.

.Develop a Web-based environmental accounting system and extend its coverage of applied organization.

Investment, Expenditure and Economic Benifit: More Effective Use of Expense

35

Environmental Management

Environmental accounting has two purposes. It provides a management tool with which to assess environmental cost-effectiveness, and also serves as a way to clearly explain to stakeholders the status of our environmental efforts.

Goals

Results

Of the total expense invested, a large proportion--62.4% in 2000 and 60.5% in 1999--has been spent on product recycling activities, including upstream and downstream costs. This has set Fuji Xerox apart from other companies. Furthermore, 96.8% of the economic benifit is generated through recycling activities.The solid success of our effort to increase the amount recycled is reflected by greatly improved indicator values, such as a reduction in the amount of resources used. Although in FY2000 we spent 9.8% (+ ¥ 9.64 billion) more on recycling than the previous year, because this investment reduced the amount spent on new parts and other items, economic benefit generated was ¥ 8.17 billion, increasing 29.7% against the previous year. In other words, the increased investment has also brought a greatly increased economic benefit.

Environmental Accounting

Environmental preservation cost category

1. Costs incurred in operational areas

(1) Pollution prevention costs

(2) Global environmental preservation costs

(3) Resource recycling costs

2. Upstream/downstream costsupstream/downstream costs of restricting impact of production/service activities

3. Management related costs

4. R & D costs

5. Social activity costs

6. Environmental damage costs

Environmental investment ratios

Total

Activities and effects Investment Cost Economic benefit Page ref.

Reduced environmental impact in sphere of production and service activities

Maintenance and improvement of measures to prevent air, water and soil pollution, as well as cost reduction

Prevention of global warming (incl. energy savings), protection of the ozone layer, and reduction of electricity and other costs

Greater energy savings, segregated collection of waste, recycling, etc.

The design of products that facilitate recycling and other economic benefits (reduced need for new material input, etc.)

Various environmental management activities

R&D to reduce environmental impact of product-manufacturing technologies

Environmental awareness, site greening, aid to environmental organizations, etc.

Cleaning contaminated soil

Environmental facilities investment (%)*1

Environmental R&D costs (%)*2

(%) (%) (%)

4.0 58.0

1.8 26.1

1.9 27.5

0.3 4.4

1.5 21.7

0.1 1.4

0.2 2.9

0.0 0.0

1.1 16.0

6.9

2.54.1

100.0

11.4 7.4

4.4 2.8

2.4 1.6

4.6 3.0

96.4 62.4

9.1 5.9

27.1 17.6

4.1 2.7

6.2 4.0

154.3 100.0 100.0

2.7 3.2

1.1 1.3

1.6 1.9

81.7 96.8

84.4

P28

P26

P27

P18

P32

P9

P47

P29

Summary of investment, cost and economic benefit (¥ 10 million)

The cost of investment--¥ 690 million--in environmental facilities accounted for 2.5% of the total cost of facilities investment.The cost of environmental R&D (¥ 2.71 billion) accounted for 4.1% of the R&D expenditure.

*1 Environmental facilities investment ratio (%): cost of environmental facilities investment / total cost of facilities investment in the same period (¥ 27.4 billion) ×100

*2 Environmental R&D costs (%): cost of environmental R&D / total cost of R&D in the same period (¥ 66.46 billion) ×100

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36

Comparing the same main sites assessed last year, environmental impact at the Ebina, Iwatsuki and Takematsu manufacturing sites, the Nakai laboratory, and the Headquarter was reduced this year. The table below shows how our results are better in all categories: CO2 and NOx emissions, amounts of waste generated and water usage.

Reducing Environmental Impact

Environmental Impact of Fuji Xerox Operations

Environmental Accounting

Impact factor

CO2 (t-c)

NOx ( t )

Waste (t)(recycling rate)

Water (1000 t)

Result in FY 2000

25,843.6

Environmental impact reduction ratio on a sales base*1

Emvironmentalimpact reductionefficiency ratio*2

179.3 0.7 0.066 1.6 1.16 0.10

Emvironmentalimpact profit

ratio*3

Amounts Reductions(YOY) Amount of substance / ¥ 10 million

Amount of substance / ¥ 10 million

¥ 10 million/ Amount of substance

8.3

6,051.599.8%

2,536.7

175.5 2.8 0.036 1.14

385.1 13.2 0.063 2.50

1.3 13.5 0.0002

3.7

13.9

13.3 0.0084

0.44

1.04

318.6

Reduction rate (%) Reduction ratio (%)

*1 This indicates the environmental impact reduction based on revenue (1999, ¥ 644.97 billion; 2000, ¥ 651.14 billion).Formula: (Current period's environmental impact value - previous period environmental impact value) ÷ previous period's environmental impact value ×100

*2 This indicates the impact reduction gained per unit of cost.Formula: Total reduction in environmental impact (ratio against previous year for each category) ÷ environmental expenditure ×100

*3 This indicates the efficiency of environmental preservation activities by correlating gross sales with environmental impact.Formula: gross profit (¥ 264.45 billion) ÷ total environmental impact (for each category) ×100

The table at right shows the environmental impact, of the operations of Fuji Xerox as an unconsolidated base in FY 2000.

Improving Our Environmental Accounting System

♦ New computer accounting system introducedTo facilitate total-cost assessment and management, in FY 2000 the company developed and implemented a new computer-based system with which to calculate the results of environmental accounting.In this issue of the report, in addition to calculating results for each site, we compute the result for each business unit.

♦ More inclusive and extensive total-cost assessmentIn FY 2000 we extended the scope of total-cost assessment. Comprising the operations at about 200 sales and service bases in Japan, the report was expanded to include results for all the sites of Fuji Xerox.

Note: Values for NOx and water usage are figures for research and manufacturing facilities.

CO2 emissions(t-c)

NOx emissions(t)

Waste generated(t)

Water used(1,000 t)

27,327.3 8.3 8,106.1 2,536.7

■ Calculation methodology

1. Period to which data apply: calendar 2000.2. Scope of data compilation: principal operating divisions of Fuji Xerox (parent company).3. System guidelines: "Guidelines for Introduction of Environmental Accounting Systems (2000 edition)," published by the Environment Agency of Japan in May 2000.4. Investment amounts: acquisition costs incurred during the year for all facilities, machinery, and other depreciable property purchased during the year.5. Calculation of depreciation costs:

① Costs include depreciation; methods used the same as in the rest of the company's accounting.② With installations constructed for regulatory compliance purposes that are within facilities designed to prevent pollution, all operating assets are counted.③ With facilities designed to save energy or conserve resources, the total of all operating assets acquired since fiscal 1995 is counted.

6. With costs incurred related to compound (environmental plus non-environmental) objectives, the costs of the environmental portion only are calculated, for example by a simple proportional assignment of costs.

7. The economic effects of environmental preservation activities (energy or resource conservation, recycling, etc.) are calculated as the savings plus any sums realized by sale of marketable items; presumed or estimated economic effects are not included in the analysis.

8. In the "environmental impact" column, reductions are counted as positive, while increases are bracketed and shown as negative.

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.Encourage personal initiative toward environmental issues with improved awareness by the provision of basic environmental education to all employees.

Ability Development System and Ecology & Safety Education

37

Environmental Management

As we improve our competency on environmental matters, we also aim to encourage employees to cultivate their own environmental awareness.

* Specialist knowledge or skills required to perform a job function.

Goals

Results

Environmental Education and Awareness

To establish a basic awareness of environmental issues and how the Company deals with them, the Fuji Xerox Group has begun providing Eco Literacy* education to all employees.

Fuji X

erox Ability D

evelopment S

ystem

Personnel Policy System Program Undergraduate / graduate Program

Basic education for new recruits

ISO14000 entry course (correspondence)

Technical education for recruits

ISO9000 • 14001 course

Introductory course in energy-saving design

Introductory course in safety design

Practical safety-design course

Sales education for new recruits

Education for recruits to service jobs

Environmental education for recruitsStandard employee education (Dept.)Education for middle managersEducation for managersTraining for qualificationsTraining for internal environmental assessors

Eco-literacy education

Environment volunteer leadership course

Self-Development Program

Technical Education Program

Sales Education Program

Sales Operations Education Program

Programs for each department

Management Quality Education

Ethics Education

Ecology and Safety Education

Service Education Program

Competency Levels (I-V)Common Competency Development Programs

Specialist Competency Development Programs

Company-Wide Promotion Programs

PrimaryMGPEOPVCSLCF

Common competency

Common

CommonOptions

Providing and Spreading Information to Raise Awareness

♦ Company IntranetAt the same time as providing real-time access to the latest information, the Company's intranet also stores a wealth of knowledge in its database. This valuable resource can be accessed by anyone in the Company.

♦ In-House PublicationsOur in-house journal, "Xerox Life," (30,000 copies per issue) has had a regular "Green Xerox" feature since 1994. Keeping the environment constantly in the spotlight and consolidating ecological awareness, this section discusses environmental trends and the Company's environmental activities.

* Eco-literacy refers to awareness and knowledge concerning environmental issues.

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38

Fuji Xerox aims to be the best partner for our customers trying to improve their environmental management. We are developing new business toward the new century.

Environmental MarketingEnvironmental Marketing

.Build better relationship with our customers by solving their problems.

Goals

Promoting Sales of Our Eco Mark Products

Fuji Xerox has pledged itself to conforming with and surpassing Eco Mark specifications: as of March 31, 2001 we had 63 products❇ entitled to the Eco Mark label. At the same time, in order to help our customers achieve green offices, we have sought to make people aware of the Eco Mark program, standards and products. Successfully conveying the benefits of environmentally friendly products, our nationwide PR activities helped sales of Eco Mark copiers to reach 50 % of the annual total of newly introduced products.

Collaborative Program

In this program, so that we can find quicker, more effective solutions for customers facing management challenges, we actively provide them with successful case studies, which are part of our knowledge resources.Responding to customer reguest, we endeavor to find clues with which to provide useful information, and eventual solutions, by sharing reports of case studies produced by our business experts and through dialogue regarding the themes they have chosen from the information disclosure menu.Some of the most popular menu items are "SFA (sales force automation)," "Document Information Sharing: Implementation and Use," "ISO14001 Certification Acquisition," and "New Personnel Management Based on Performance and Results."We have been receiving increasing numbers of visitors and participants in our corporate program. Among these, 40 % are senior manager. Moreover, 96.9% of the respondents to our questionnaire report that what they have learned is "useful to the improvement of business operations."

EMS Consulting Business

In response to requests from customers who are planning to apply for ISO14001 certification, during FY 2000 in Tokyo, Nagoya, Osaka and Kanagawa we continued the environmental seminars that we began in FY 1999. We were pleased to welcome the attendance of 500 people who participated in various ways. Furthermore, to meet the requests of customers, we are also conducting total consulting activities for ISO14001.

A PR display for Eco Mark products❇ A list of "Products Qualifying for the Eco Mark" is shown on page 57.

Growing participation in the collaborative program

0100

End '98 Start '99 End '99 Start '00 End '00

200300

800900

700600500400

(No. of companies)

0

1000

2000(No. of individuals)No. of

individuals

105

565

996

1,224

1,542

70

157

350422

511

• New personnel management

• Telework • Satellite

• Support for Japan management quality activities

• Assistance with establishing network security policy

• Office productivity

• Social contribution (additional menu choices)• Conversion of existing documents to electronic format (additional menu choices)

Management quality

SFA (sales force automation)

Customer Consultation Center

Document evolution - color -

Knowledge Management (additional menu choices)

• ISO14001 acquisition support

• Risk management

• Stronger sales-power management

• Outsourcing business

• Resource recycling system

• All types of training

Option m

enuS

tandard menu

■ Information disclosure program menu

No. ofcompanies

Seven steps in EMS consulting

Consultations

Construction

EMS manual creation

Implementation of EMS

Internal Audit

Simulated pre-examination Audit

Audit by certification body and ISO14001 recognition

Ongoing implementation

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http://www.fujixerox.co.jp/nbc/esradd/uv/

A portable ultraviolet meter

39

Environmental Marketing

Our high-quality Document Management system satisfies customer needs. Its construction requires only about half the labor input* of other methods. We achieve this by preparing the document management methods and the system models suitable for each type of industry.By our exclusive multivendor service we can not only arrange for the conversion of existing documents to electronic format using the customer's familiar file structure, we can also arrange for any kind of related task as well as integrated service maintenance.

* This labor-time figure is derived through comparison with the creation of similar

ISO14001 Document Management Solution

People are becoming more concerned about things such as the increasing incidence of skin cancer, faster aging of the skin and immune system abnormalities, all these being negative effects of higher levels of UV (ultraviolet) light due to the growing hole in the ozone layer. Thus, there has been strong demand for new methods of UV measurement, both from industrial users of UV technology and from people who seek protection from environmental UV light.Recently, crystal growth techniques have enabled the creation of a new material, GaN (gallium nitride) having excellent properties as a UV photodetector. Devices that use GaN can be set to detect only UV light, so there is no need for filtering or other means of eliminating visible light.Using an ultrathin photodetecting element that provides high precision in a device which can process and record data for long periods, it is now possible to directly measure UV light in places that used to pose a challenge.

For skincare and other applications, we have been developing products such as a handy UV monitor that can be carried around by people who suffer from skin reactions to UV.

Ultraviolet Meters

Fuji Xerox Distribution Co., Ltd., an affiliated company of the Group, has since 1999 been providing a service to dispose of our customers' used office equipment. From pickup to final disposal, this complete service provides a thorough process of waste management and disposal.One of our customers summed up the benefits of this system: "The Green Logistics Service has been a great help. We can give an order for countrywide services from one location. Not only does it handle all the complicated procedures for us, the service also reduces our cost."

Green Logistics Service

An example of model architecture for a basic system

Paper

Paper

OCR conversion

Access and use

e-document

Issue and distribution

file server

Browsing, retrieval, hard copy Only documents cleared for public

access are made available for automatic viewing on the Web.

Easy management with DocuWorks

Environmental management division

Users at work sites

http://www.fxdc.fujixerox.co.jp/green.html

Used office equipment

from customer

Manifest

Storage

CollectionDisassembly

Sorting

Intermediate processing Recycling

(about 90%)Final disposal (about 10%)

Full-featured service menu• Coordination of finalized contract agreements• Management of collection and processing contractors• Agent for issuing and controlling manifests• Operation and control of overall processing system • Completion and submission of official forms to authorities• Proper disposal of industrial waste

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Promoting Social HarmonyPromoting Social Harmony

40

Personnel SystemAt Fuji Xerox, we want to create a working environment that employees can feel their own value and growth as well as pleasure through their work. We seek to foster an environment that promotes knowledge creation and utilization, producing a corporate culture that encourages employees to challenge the development of their capabilities. Our personnel system plays a critical role in creating such an environment. Its aim is to develop our workforce so that we can adapt ourselves in the IT revolution and fast-changing markets.

Results

The Fuji Xerox personnel management system revolves around the roles employees assume, as dictated by business and operational strategy. Remuneration is based on the results people achieve in their designated roles, and is therefore a function of both position and performance. We seek to make this the basis for creating a new relationship between the company and individuals.

♦ Managing the development of employees’ skillsBusiness today has created more diverse work patterns and increased the need for specialist skills. We make it clear that there is a direct link between the results achieved and the ability of people to use their talents and translate them into quality actions.Our personnel development system is based on skill sets, or competencies, which we have compiled in a special handbook. We use this and other tools to help individuals develop their skills. We have also made the entire system more coherent and consistent by introducing skills surveys for employees so that we can assess how best to develop and assign people to jobs within the organization.

Human Resource Management Based on Job Role

Consistent growth through commitment tomarkets and customers

Human Resource Management

Hiring/human resourcedevelopment

Building marketresponsiveness

Personnel assignment The right person at

the right position

Personnelevaluation/remuneration

Trying to createsatisfaction

Sp

ecify expected

role clearly

based

on

busin

ess strategy

Em

ployee m

akes career com

mitm

ent

based

on

develo

pm

ent p

lan

Employee Satisfaction Survey

Since 1978, we have surveyed our employees on a regular basis to ascertain their morale and judge the effectiveness of different personnel system aspects. These surveys cover a wide variety of topics related to employees’ satisfaction with their work. As well as finding out what sort of challenge work constitutes and the good and bad points of the workplace, we ask questions about people’s superiors and the organization. The surveys also cover issues such as leisure-time activities, attitudes towards promotion and meritocratic remuneration systems, and the incidence of sexual harassment.

Employment of Disabled Persons

Fuji Xerox is committed to giving disabled people opportunities to work. As of March 31, 2001, the proportion of disabled workers had reached 1.76% of the workforce.We will continue to promote the hiring of disabled persons until this figure reaches the statutory value of 1.8%.

Proportion of disabled persons in workforce(data as of March 31 each year)

0

0.5

'96 '97 '98 '99 '00 '01 (year)

1.0

1.5

(%)2.0

1.69 1.711.62 1.61 1.68

1.76

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Promoting Social Harmony

41

Policies on Paid Vacation and Leave of Absence The combination of an aging population and low birth rates is forcing companies to adapt their personnel policies.Since they are composed of people and must function within society, companies have a responsibility to change to cope with the evolution of social issues. Accordingly, our personnel system aims to help all those who work at Fuji Xerox balance their work and family commitments.

Family care leave

Employees who need to care for family members afflicted by senile dementia or other serious diseases can take a company-supported leave of absence of up to two years.

Maternity/paternity leave

Employees with at least one year’s service who intend to return to continuous full-time work can take a leave of absence lasting for up to one year from the birth of a child. Employees may avail themselves of this system as many times as they wish, and it is also open to fathers.

Family care leave via shortenedworking hours

Employees who need to care for family members afflicted by senile dementia or other serious diseases on a daily basis, but who still want to work, can, for a certain period, be exempted from full-time work and have their working hours limited. Subject to a two-hour minimum, daily working time is then assessed on an hourly basis.

Maternity/paternity leave via shortenedworking hours

To enable employees to balance work and child-rearing commitments, a flexible working system is available to those who cannot work full time. This arrangement can last until a child reaches four years of age or enters primary school. Subject to a two-hour minimum, daily working time is then assessed on an hourly basis.

Other Personnel SystemsOur thinking is based on the concept that good employees must first be good members of society, and so a person’s life must be balanced between work and activities outside the company. To make such an equality into a reality, we have established a number of systems.

Additional contribution remuneration system

Based on the thinking that companies can only grow based on the humanity of their employees, we have a system that pays people additional bonuses based on an evaluation of their extracurricular interests and activities within the local community.

Half-day paid leave

We have a flexible working system that is not rigidly based on the rule that pay applies only to a full day of work.Employees are free to work out which way is most convenient for them, particularly with half-day activities such as hospital visits or attendances at school open house.

VBCP (Venture Business Challenge Program)

VBCP is an internal venture business system that began in 1987 with the objective of developing new businesses based on employee ideas so that individual creativity and talents could be maximized and new business opportunities could be found. The program has been widely publicized internally using the motto “You’re the President.” To date, VBCP has incubated and launched several firms, including a business software developer, a parts maker for prototypes, and a company that assembles electronic components.

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42

Based on the safety and hygiene corporate philosophy below, we work hard to maintain the health and safety of all our employees through to preserve a positive work environment.

Hygiene, Safety and Health

■ Safety shall be the first priority throughout all our operations.■ Our basic thinking on health is as follows:

1. Health is an employee’s most important asset to live a full and fulfilling life.2. The health of its employees is also a vital asset for a company, since it allows them to use their talents, and to contribute to both business and society.3. Health is for employees to protect and for the company to help them in doing so.

Promoting Health

♦ Health ChecksAll employees at the company receive an annual health checkup. At bases with large numbers of employees the scheme conveniently schedules this checkup during the month of the employee's birthday.Employees who are over 40 can choose to undergo a more extensive health examinations.

♦ Health Consultations with Insurance PersonnelTo make sure our employees fully understand the implications of their health-check results, they consult with state-registered health advisors. Since 1996 we have steadily expanded the scheme: 76.3% (10,742) of the employees received the benefit of this health advice in FY 2000. This scheme enhances the general work environment: It improves mental health by catching the symptoms of overwork and encourages individuals to prevent the effects of high blood pressure, diabetes, high cholesterol levels and other lifestyle diseases.

Activities at Manufacturing Sites

Safety & Hygiene Corporate Philosophy

Results

As well as carrying out safety policies tailored to the characteristics of each site, a company-wide Health and Safety Committee meets twice a year to decide overall policy and expand the excellent activities of a site to the rest of the company.In the year 2000 the Ebina Center received the Minister of Labor's Commendation for Excellence in Safety. The commendation said, "The safety and hygiene management that has been established at the Ebina Center, along with annual safety and hygiene management plans, includes other labor-hygiene management activities such as workplace comfort evaluation, the implementation of a chemical-safety assessment system, and MSDS (material safety data sheets) to actively make safe handling common knowledge to all workers.

Work-related Accidents

No serious accidents occurred during the year.The accident frequency ration in 2000 was far lower than the national average for Japan (0.55, compared with 1.80).

Furthermore, even while introducing spraying robots to prevent diseases caused by exposure to organic chemicals, to eliminate harmful organic solvents the company has been actively switching paint to water-based coatings."

Receiving the Minister of Labor's commendation.

Number of industrial injuries

010

'96 '97 '98 '99 '00 (Year)

2030

70(Incidents)

605040

5042 45

68

56

Num

ber of incidents

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Promoting Social Harmony

43

"The shared values" of the entire Fuji Xerox Group guides us high ethical standards as the most important. Our corporate culture encourages each of its employees to strive for high personal standards and follow the Company's ideal of proper business ethics.

Ethical Management

~1998 1999 2000 2001

Principles

Organization and Committees

Establishment and Revision of Standards and

Others

Follow-UpSystem

Training and Awareness

Activity

Written Pledge

1979: Corporate principles and behavior guidelines

1998: Employees Behavior Guidelines

1997: Behavior Standards for Employees

1997: Issuance of Casebook 80 Behavior Standards for Employees • Issuance of Casebook 100 Behavior Standards for Employees

• Behavior Standards for Employees

• Sales Navigator issued• Behavior Standards for Employees at each affiliate

• Information Management Regulations • E-mail and Internet Usage Guidelines• Issuance of Handbook for Dealing with Business Information

1998: "Mission Statement" "Shared Values"

1997: Behavior Standards Committee • Business Ethics Committee reorganized • Business Ethics Committee reorganized

1998: EM Committee/EM Promotion Committee • EM Promotion Committees at each company and center• EM Promotion Committees at each affiliate

1997: Committee for Exchange of Opinions with Auditors • Ethics survey carried out

1997: Sexual Harassment Prevention Hotline • Sexual Harassment Prevention Hotline for affiliated

1997: Ethics consulting service

1992 Human Rights Training • Ethics training (managers) • Ethics training (ordinary employees) • Information ethics training (all employees)1998 Ethical training (all levels)

1998: Directors and general managers • Directors and managers• Related companies (managers)

• Ethics training for managers at each affiliate

• Sexual-harassment awareness education• Sales Navigator training • Ordinary employee ethics training (Fuji Xerox Group) • Information ethics training (Fuji Xerox Group)

• Case studies presented in "Xerox Life"

• Ethics Web pages • Questionnaire survey concerning business ethics and sexual-harassment policies

History of Business Ethics Policy

.Conduct ethics training for all employees to ensure them understand business ethics and take proper actions.

Business Ethics Promotion Activities

Goals

Results

• In FY 1999 we carried out ethics training for senior management and managers.In FY 2000 we extended ethics training to about 12,000 general employees, nearly all of whom completed the training. • We conducted a survey of employee awareness concerning business ethics (results in table at right).From the survey it can be seen that employees who have had the training are aware of the need for proper conduct and sound judgment; also, that this conscious has spread to more people at more locations.

Informations for Our Awareness and Follow-up Activities

♦ Company intranetWe transmit information about things such as training and survey results on the "ethics" pages. Furthermore, we provide advice daily and follow up via the Ethics Consulting Service.

♦ Behavior Standards for EmployeesWe distribute a casebook that advises on standards of behavior for employees. The standards and 100 case studies are used when employees cannot about issues that arise make a judgement in their work.

Influence on individuals

■ The result of the questionnaire survey regarding Business Ethics Promoting Activity

Influence on the in-house environment (workplaces)

Efforts to improve business ethics• "Behavior Standards for Employees" distributed• Casebook 100 distributed• Sexual-harassment prevention activities• Ethics training developed and extended

throughout the Company• Ethics consulting service started, etc.

Influence outside the company

Understanding of business ethics activity

• Consideration of business ethics has positively influenced your judgment and business conduct.

66.4%• You bear in mind the need for

sound judgment and proper conduct that follows "Behavior Standards for Employees."

92.0%

• Your concern with business ethics conveys a positive image to the customers and companies you deal with.

59.5%

Since undergoing ethics training you have understood the business-ethics policies and measures taken by Fuji Xerox.

• Subjects: Fuji Xerox employees• Period: December 12-25, 2000• No. of respondents: 1,570 (respondent rate 45.8%)

*The percentage symbol (%) for each item shows the rate of affirmation (4,5) in graded (1,2,3,4,5) five-step options.

• You have sound judgment and your conduct follows "Behavior Standards for Employees." 77.6%• Efforts to deal with ethical issues have started to appear at your workplace. 47.4%

95.4%

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While we aggressively disclose the impact, improvement and activities on environment of our business, we aim to improve our society through better communications with our stakeholders.

.Improve the quality and quantity of disclosure about environmental activities.

Goals

Results

Top Management has made speeches on our Eco-oriented Management.

Eco-oriented Management Speeches

In 1999, we published our first environmental report, the "Fuji Xerox Environmental Progress Report 1998." The next year, in the year 2000, we published the second report and changed the title to the "Fuji Xerox Environmental Report 2000." In the 2000 Report, we aimed at improving the comprehensiveness and full disclosure of information.

♦ Environmental Report 2001 Reflects Opinions of Environmental Experts

Seeking expert opinions, we sent draft copies of Environmental Report 2001 to Yoshiki Midorikawa of the Green Consumer Research Group and Junko Edahiro, an environmental journalist. We revised the text in consideration of the more than 200 valuable comments they made.Not only did they help us improve the text, on the way to the final draft we also revised the graphs and figures.

Environmental Report

Our Web pages about the our environmental activities received more than 130,000 visits in a year. As well as bringing the Web pages into line with the content of the "Environmental Report," we have also revised the structure of the top page for easier navigation.We will continue to update the information and carry out major annual revisions to the content.

Using the Internet for Disclosure

44

Environmental Communications

President Masamoto Sakamoto gives the keynote speech at the Environmental Awareness Symposium, held in Gifu.

Asia-Pacific Environmental Ministers Conference Private Sector Symposium "Fuji Xerox Eco-oriented Management"

Environmental Awareness Symposium, in Gifu"New Enterprise Initiatives to Achieve a Recycling-based Society"

Nihon Keizai Shimbun World Economy Summit"Legal Infrastructure for the Formation of a Recycling-based Society"

Keizai Koho Center Economy Subscription Lectures"New Tide in Manufacturing: Achieving a Zero-Emissions Society"

Business Leaders' Interforum for Environment 21 (B-LIFE 21) Presentation "Fuji Xerox Eco-oriented Management"

September

October

November

December

December

Environmental Reports

Top page of the section "Dealing with the Environment"

http://www.fujixerox.co.jp/eco/

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From December 14 to 16, 2000 exhibition, Fuji Xerox took part in Eco Products 2000, which was held at the Tokyo Big Site and sponsored by the Nihon Keizai Shimbun and the Industrial Environmental Management Association for Industry. On the final day our booth was honored with a visit from Prime Minister Yoshiro Mori and Environmental Minister Yoriko Kawaguchi. Using images and displays, we were able to explain how, at each stage of the product lifecycle, the excellent way in which companies in the Fuji Xerox Group deal with issues such as "minimizing environmental impact" and "achieving zero waste."From responses to questionnaires by visitors to the booth we learned that the exhibition had let more people, who were not previously aware, know about our environmental efforts. We were also pleased to find that 93% of respondents expressed overall satisfaction with the display and explanation by the attendants. In addition to this event we exhibited at 11 other global environment fairs, including one at Shiga Prefecture Nagahama Environmental Business Messe.

Eco Products 2000 Exhibition

To enable local elementary and junior high school students to visit our facilities as part of their social-studies education, we organize annual environmental visits for schools. We welcome students to the production line to see recycling centers and solar energy in action, and to consider things such as energy-saving measures. At the Ebina, Iwatsuki, and Takematsu manufacturing sites, as well as the Nakai laboratories, we arranged 188 visits, including those by elementary and junior high school students, for a total of 2,368 people.In Japan the Basic Sustainable Society Act was recently passed. To raise public interest in the issue, on 71 occasions we arranged "open day seminars" that focused on materials recycling systems. Welcoming 1,409 people, our employees enjoyed a lively exchange of opinions with visitors.

Customer’s Visit to Our Manufacturing Sites

Fuji Xerox regularly runs advertising press campaigns in Japan promoting the use of recycled parts in production. The first campaign of this type, which ran in 1996, featured three separate executions of this theme. Good advertising of this sort not only publicizes our efforts, but also functions as an educational material in its own right. We therefore plan to continue using this media to deliver our message.

Advertisements to Deliver Environmental Messages

Promoting Social Harmony

45

Explaining an Eco Mark product to Prime Minister Yoshiro Mori

Viewers at the Fuji Xerox video presentation corner

Junior high school students observe the production line.

Environment /product recycling 4-part advertising press campaign

Awarded Gold and two Silver prizes in the Japan Industrial Journal Grand Prize for Industrial Advertising❇ 2

Awarded Japan Industrial Journal Advertising Award "Advertisement Grand Prize"❇ 1

❇ 1, 2 For more information on these awards, see page 51.

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In 1980, we established the Customer Information Center within the General Affairs Department. Since then it has become a major response center for all of customers.

For our customers, the Center tries to provide timely, correct and easy to understand responses to customer inquiries which are used to help each company and division to improve operations.Toll-free phone and fax lines are available, but customers can also contact the center via e-mail from our customer service home page, or by conventional mail.

.Aim to provide our customers with the response to satisfy their inquiries.

.Utilize customer feedback to improve the products, services and operations of the Company.

Goals

Results

In FY 2000 the Customer Service Center received 46,000 inquiries, 9,000 more than during the previous year.

Number of Inquiries

46

Communicating with Customers

♦ Thanks expressedThe percentage of customer inquiries where the customer vocalized gratitude or satisfaction as a result of our response, or was judged to have done so, is extremely high.

♦ Not kept waitingAs well as ensuring that customers are grateful for having contacted us, the speed of response is also important to us. We aim to be able to answer customer questions immediately without making people wait.

Our Response Status

Customer feedback has proved invaluable to the improvement of products and services, and for developing operations.

Improvements in Response to Customer Feedback

To encourage greater awareness of the customer response service offered by the Center, it has been organizing an increasing number of study visits. In FY 2000, the Center welcomed visits of parties from 42 companies.

Customer Service Center Visits

Specific question47%Request for

information 38%

Complaint 5%Service or product suggestion 1%Request for specifications or sales inquiry 5%

Other 4%Environmental safety 1%

87.5%

97.6%

Thanks expressed

Not kept waiting

Improvements made

0

5

10

15

20

30

25

(Instances)

'96 '97 '99 '00 (year)'98

911 10

18

30

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Promoting Social Harmony

47

Fuji Xerox provides support for outside researchers, as well as aid to NPOs and NGOs. For employees we have implemented the "Social Service Program" (voluntary leave), and supported the volanteer activities of the "Hasu Club*." We hope to improve the quality of human life in the society.* The Hasu Club is a volunteer organization comprising approximately 4,000 members from throughout the Fuji Xerox Group. Hasu means "fraction," referring to the

voluntary contributions that employees make of odd fractions when their salaries are calculated.

.We are supported by our customers, local communities and countries in the world. To make the society better, we aim to continue our unique social contribution activities consistently which support all aspects in the society.

Results

The social contributions made by Fuji Xerox and its employees have been progressing on a broad front. Wide-ranging activities include technical and educational aid; support for social welfare, culture and art; volunteer activities and involvement with environmental preservation and protection; and local community development.In this publication we have chosen to focus on results that came from some of our main social-contribution activities during FY 2000, especially the Kids ISO14000s Program, the development of easy-to-use, universal design equipment, and environmental conservation activities.

Information about the company's efforts to make a social contribution is presented in the "Bridge Between Society and Employee, Company and Society," section of our website.

"Bridge Between Society and Employee, Company and Society"

Social Contribution Activities

Fuji Xerox participates in "Kids ISO14000s." Through effective education this project aims to ease the transition toward a lifestyle that's more in keeping with environmental imperatives.A program sponsored by ArTech, an international NPO of artists and technicians, "Kids ISO14000s" is intended to make children aware of environmental management and enable them to carry it out. In a trial conducted at three elementary schools in Tokorozawa City, using a workbook 101 children carried out environmental management activities during their school winter vacation. Consequently, they were able to see for themselves how much electricity, gas and water were used, and how much garbage was generated over a fixed period. Their work also contributed very useful data to the ISO14001 surveillance of Tokorozawa City.

Kids ISO14000s Program

Goals

"Bridge Between Society and Employee, Company and Society," a key page on the Fuji Xerox website.

Kids ISO14000s entry-level workbook

Bridge Between Society and Employee, Company and Society http://www.fujixerox.co.jp/company/social/

http://www.artech.or.jp/japanese/kids/index.html

Awarded Grand Prize for Enterprise Social Contribution❇

❇ For more information, see on page 51.

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Social Contribution Activities

48

To promote the employment of physically disabled people and boost the participation of senior citizens, society is increasingly demanding that products be designed so that they can be used by anybody. With the help of developers who had a passionate belief in the ability of their technology to help society in this way, we produced just such a version of the Able copier with universal utility specifications. This model received the Mellon Grand Prize in 1999 for its user-friendly design. A universal utility option, which can be ordered when a product is shipped, was also made available on the 28 models in the DocuCentre 400/350/250 series from November 1999.

In October 2000 we submitted a universal design specification prototype of the DocuColor to CEATEC Japan*2 as a reference exhibit. It was well received.To extend universal design features to other Fuji Xerox products, the Universal Club was launched. Sharing their knowledge of universal design and increasing their mutual understanding, many employees of Fuji Xerox participate in these club activities.

*1 Universal options are added to equipment prior to shipment from the factory.

*2 CEATEC (Combined Exhibition of Advanced Technology), sponsored by the Communications Industries Association of Japan, the Japan Electronics and Information Technology Industry Association, and the Japan Personal Computer Software Association, is the largest IT-related trade fair in Japan.

Providing Universal Design Products

The Hasu Club organizes a number of activities for employees to lend a hand in protecting our precious natural environment. The group donates funds to environmental non-governmental (NGO), non-profit (NPO) and other volunteer organizations. It also organizes a number of regular events jointly with such groups.

♦ Nature field tripsSince 1993, the Hasu Club has been sponsoring field trips to allow company employees and their families and friends to sample the joys of nature in their local areas. The field trips undertaken in 2000 are listed below.

May:

August:

September:

October:

Nagano Prefecture, 16 membersField trip to see the natural environment of Hakuba

Kanagawa Prefecture, 20 membersEighth observation of red-clawed crabs at Koajiro Forest

Miyagi Prefecture, 21 membersTrip to virgin beech forest on Mt. Funagata

Kanagawa Prefecture, 24 membersFifth trip to Hakone and Mt. Kintoki

Nature & Environmental Preservation Acitivities

At CEATEC Japan: A universal-design specification prototype of the DocuColor, displayed as a reference exhibit

Universal Club logo

Nature field trip to Hakone and Mt. Kintoki

■ Field trips during the year 2000

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Promoting Social Harmony

49

♦ Deepening ties with environmental groupsTo forge closer ties with members of NGOs and NPOs around Japan, who work on the front line of nature conservancy efforts, the Hasu Club organizes a number of forums for the exchange of information.

♦ Support for Oze Alpine Wetland Conservation Alliance • Nature Conservation Society of Japan 50th Anniversary Pre-Symposium

Fuji Xerox and the Hasu Club supported the Nature Conservation Society of Japan pre-symposium on the theme

"What will become of nature in 21st century Japan? Seeking the ideal image of a national park." Volunteers from the company also helped with the practical running of the meeting and designed and made color copies of conference materials.

♦ Volunteer clean-up activitiesSince 1993, volunteers from all the major Fuji Xerox sites have been participating in clean-up activities in the vicinity of local stations and other areas.

Nature & Environmental Preservation Activities

June:

June:

June:

September:

September:

November:

December:

Shirouma Nature Club(Nagano Prefecture)

The Sea Loves Forests: Tree-Planting Festival(Miyagi/Iwate Prefecture)

National Convention: All-Japan Mixed Woodland Conference(Yamaguchi Prefecture)

National Forum of the Forestry-Road Issue Network(Iwate Prefecture)

Mt. Funagata Conservation Group(Miyagi Prefecture)

All-Japan Forest and Nature Conservation Meeting(Niigata Prefecture)

Let's Meet at the Nagara River(Tokyo)

Ebina

Iwatsuki

Takematsu

Suzuka Xerox

- Area around local station: monthly, about 20 volunteers.

- Area around facilities: twice a year, 50-70 volunteers.

- Area around local stations and facilities: annually, about 150 volunteers.

- Area around facilities: annually, about 50 volunteers.

♦ Support for environmental organizationsFuji Xerox makes regular donations to a number of nature conser-vancy groups that do valuable work to protect the environment. The following list includes some of the main beneficiaries of this.

From 1982 Wild Bird Society of Japan

From 1983 World Wildlife Fund

From 1993 Keidanren Nature Conservation Fund

From 1997 Global Environment Human Forum

From 2000 Earth Day 2000 Tokyo and Earth Day 2000 Harajuku.

Panel discussion at the Nature Conservation Society of Japan Symposium

Cleaning volunteers from the Ebina site

Earth Day 2000: A procession of cycles through the metropolis

Field trip with Shirouma Nature Club

■ Regular cleaning schedule

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Social Contribution Activities

50

♦ Matching Funds* for Hasu Club Donations: 35 Recipients in the Year 2000Fuji Xerox has pledged to match any donations made by the Hasu Club to bodies directly concerned with environmental action, groups carrying out grass-roots activities, organizations connected with Hasu Club activities, and other worthy causes.During FY 2000 the Hasu Club made 156 donations totaling ¥13.15 million. Along with matching contributions made by the Company, the total value was ¥26.30 million.

* Matching Fund means that the company donates an amount equal to that provided by the Hasu Club, thus doubling the benefit to the recipients selected by the Hasu Club.

Nature & Environmental Protection Activities

Taisetsu and Isshikari Nature Protection Group (Hokkaido - 1997)

Shirakami NGO (Aomori/Akita - 1994)

Hachimantai Tsutakonda Beech Forest Protection Group (Iwate - 1994)

Hayama Nature Protection Group (Yamagata - 1994)

7th National Forum of the Forestry-Road Issue Network (Yamagata - 1999)

Funagatayama Beech Protection Group (Miyagi - 1994)

Koajiro Forest Protection Group (Kanagawa - 1995)

Kanagawa Forest and Nature Protection Group (Kanagawa - 1996)

Izumigawa Clearwater Appreciation Group (Kanagawa - 1997)

Sea Regeneration Group (Kanagawa - 1998)

7th All-Japan Mixed Woodland Conference (Kanagawa - 1998) Shirouma Nature Club (Nagano - 1994)

National Association for the Protection of the Forests and Nature of Japan (Nagano - 1994)

Seto Nature Club (Aichi - 1997)

Fujimae Tidelands Protection Group (Aichi - 1998)

Shirayama Nature Club (Ishikawa - 1998)

Okinawa Coral Network (Okinawa/Kyoto - 1998)

Yoshinogawa Symposium Steering Committee (Tokushima - 1997)

Friends of the Kuroshio Experience Center (Kochi - 1999)

Osaka Natural Environment Preservation Society (Osaka - 1995)

Green Earth Network (Osaka - 1995)

Wajiro Tidelands Protection Group (Fukuoka - 2000)

Isahaya Bay Tidelands Research Group (Nagasaki - 1997)

Nagatahama Sea Turtle (Kagoshima - 1996)

LOVE Dugong Network (Okinawa - 1999)

Sanbanze Petition Campaign Network (Chiba - 1997)

Naruyama Nature Protection Group (Chiba - 1998)

Green Angels (Chiba - 1998)

Nature Conservation Society of Japan (Tokyo - 1993)

Nishi Tama Nature Forum (Tokyo - 1993)

Japan Tropical Forest Action Network (Tokyo - 1994)

Friends of the Earth, Japan (Tokyo - 1996)

Green Sahel (Tokyo - 1999)

Mt. Takao Nature Preservation Steering Committee (Tokyo - 1999)

Forest Regeneration Group (Tokyo - 2000)

Matching fund recipients by region (prefecture - dates)

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Promoting Social Harmony

51

♦ Environment in General

• April 2001. "Earth Environment Committee Award for Corporate Excellence" at the "10th Global Environment Conference," sponsored by the Japan Industrial Journal. Given in recognition of zero-waste recycling system and deployment of national used-equipment collection network, as well as excellent results obtained by wide-ranging environmental preservation activities.

♦ Green Products

• January 2000. "FY 1999 Natural Resources and Energy Agency Chairman’s Commendation for Energy-Saving Equipment and Systems for the 21st Century" (energy-conservation prize) awarded to the seven digital color copier/printer models in the DocuColor 1250 Series.

♦ Resource Recycling System

• March 2000. "10th Nikkei BP Awards Technology Prize" for the resource recycling system for plastics used in copiers, developed jointly by Fuji Xerox and Ube Saikon.

♦ Green Factory

• January 2000. "FY 1999 New Energy Foundation Director's Prize" (New Energy Prize) awarded as "Energy-Saving Devices and Systems Commendation for the 21st Century" and presented to the Ebina Center for its solar-electricity generating system.

♦ Environmental Advertising

• November 2000. "Advertisement Grand Prize" in the "35th Japan Industrial Advertising Awards" sponsored by the Nikkan Kogyo Shimbun and presented to Fuji Xerox as the best from 13 categories. Prizes also received in three newspaper categories and one journal category.

• November 2000. "Gold Prize" in Large Series Class, "Silver Prize" in Wide Advertisement Class, and "Silver Prize" in Nikko Forum Class Japan in the 39th Japan Industrial Journal Grand Prize for Industrial Advertising, awarded to the campaign for resource-saving color printers for effectively drawing attention to the coming "Century of the Environment."

• March 2001. "Economy, Trade and Industry Minister's (METI) Prize," sponsored by the Clean Japan Center (supported by METI), awarded in the "Recycling Technology and Systems" category for our promotion of the closed-loop recycling system, which is based on the reuse of parts in the manufacturing process.

• April 2001. The second Asahi Newspaper "Environment for Tomorrow Prize" awarded for highly evaluated 100% resource-recycling system, Japan's first such system to be established on a national scale.

• February 2001. "FY 2000 Energy-Conservation Center Chairman's Commendation for Energy-Saving Equipment and Systems for the 21st Century" (energy-conservation prize) awarded to the DocuPrint C2220 color laser printer. It is the first time that any company has won this prize for two consecutive years.

Environmental Awards

Social Awards and Litigation

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Social Awards and Litigation

52

General Awards for the Company

Promoting Social Harmony

• February 2001. First place to Fuji Xerox in the year 2000 MAKE (Most Admired Knowledge Enterprise) poll of Japanese companies commissioned by Knowledge Management Society of Japan.

• December 2000. CMM Level 3 Certification. After rapidly passing CMM Level 2 in April 1999, the company improved to the next level. Designed to raise the quality of software, CMM (capability maturity mode) is an internationally recognized standard that provides a model for assessing the maturity

of software development.

Product Awards• January 2001. "Top Ten New Products of 2000" placement by Nikkan Kogyo Shimbun (43rd annual ranking) for the ColorDocuTech 60 in recognition of the way it meets the demand for the shift to just-in-time printing and the trend toward one-to-one marketing.

• March 2001. Number 1 in J.D. Power's Asia Pacific Customer Satisfaction Survey 2000 for Office-Use Laser Printers. This is the second consecutive year that Fuji Xerox has captured the top spot for both color and laser printers in this respected customer-satisfaction survey.

Social Contribution Awards• May 2001. Asahi Shimbun Foundation's grand-prize "Enterprise Social Contribution Award" received in recognition of miscellaneous efforts including the introduction of a social-welfare system and the creation of large-print texts for use by the visually impaired.

• October 2000. "Year 2000 Award of Honor" from the Northern California Japan Society presented at a gala 2000 dinner to Chairman Yotaro Kobayashi for his tireless efforts to promote relations between the U.S. and Japan.

Labor Safety Awards• October 2000. Minister of Labor's "Award of Excellence" given to the Ebina site for its remarkable record of results in industrial health. The Ministry of Labor gives awards for excellence, effort, group performance and distinguished service. In the field of industrial health, the Award of Excellence is the highest form of commendation.

LitigationNone

• November 2000. "FY 2000 Cooperate Leadership Award" from the Aspen Institute (U.S.) presented to Chairman Yotaro Kobayashi.

• June 2000. "45th Japan Advertising Grand Prix" awarded to Chairman Yotaro Kobayashi by the Japan Advertising Club.

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53

Appendices

Environmental Performance Results (by work site)Resource-Recycling Product LabelEco Label ProductsISO14001 CertificationNumbers of Personnel with Environment-Related Qualifications

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54

Ebina Site

Iwatsuki Site

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noitpmusnoclioleufyvaeH Lk 762 232 102 071 071noitpmusnocenesoreK Lk 0.0 3.0 4.0 3.0 3.0

noitpmusnocGPL m000,1 3 4.01 6.9 5.8 9.8 2.11noitpmusnocsagenatuB m000,1 3 0 0 0 0 0

noitpmusnocsagnwoT m000,1 3 0 0 0 0 0OC 2 snoissime c-t 0.679,2 0.446,2 0.055,2 0.132,2 7.552,2

retaWsecruoser

)A()maertspu(egasuretaW t000,1+retawdnuorg(egasuretaW )B()depmup t000,1 2.33 4.82 0.62 3.22

)B+A(egasuretawlatoT t000,1

noitullopriA

snoissimexON t 76.1 95.0 45.0 46.0 22.0snoissimexOS t 72.0 51.0 90.0 90.0 70.0

setalucitraP t 60.0 70.0 40.0 40.0 10.0

retaWnoitullop

)dnamednegyxolacimehcoib(DOB t 32.61 90.61 73.31 84.11 95.01)dnamednegyxolacimehc(DOC t 27.7 31.8 53.6 68.6 02.6

lioSnoitullop

noitartnecnocenelyhteorolhcirT L/gm 720.0 550.0 730.0 580.0 )ssergorpninoitarotserlioS(

noitartnecnocenelyhteorolhcarteT L/gm 070.2 072.2 021.1 021.1 )ssergorpninoitarotserlioS(

noitartnecnocenahteorolhcirt-1,1,1 L/gm 827.0 002.1 004.1 005.0 )ssergorpninoitarotserlioS(

RTRP

eneuloT:deldnah.tmA gk 0 0 0 0 0enelyX:deldnah.tmA gk 0 0 0 0 0

remonomenerytS:deldnah.tmA gk 0 0 0 0 0FHT:deldnah.tmA gk 0 0 0 0 0

enizardyH:deldnah.tmA gk 0 0 0 0 0enahtemorolhciD:deldnah.tmA gk 0 0 0 0 0

sdnuopmocdnamuineleS:deldnah.tmA gk 0 0 0 0 0enelyhteorolhcirT:deldnah.tmA gk 0 0 0 0 0

FY 1997FY 1996 FY 1998 FY 1999 FY 2000

Location: 2274 Hongo, Ebina City, Kanagawa Prefecture

Location: 3-7-1 Funai, Iwatsuki City, Saitama Prefecture

metI rotacidnI tinU FY 1997FY 1996 FY 1998 FY 1999 FY 2000

etsaWslairetam

tnuomalatoT t 255,3 945,3 650,3 913,3 682,3)A(gnilcycerslairetam.tmA t 328,2 740,3 822,2 794,2 554,2

)B(gnilcycerlamreht.tmA t 66 184 527 908 138)B+A(gnilcycerecruoser.tmA t 989,2 825,3 359,2 603,3 682,3

)A()llifdnal(.tmadessecorplaniF t 47 49 93 31 0)B()rotarenicni(.tmadessecorplaniF t 99 63 46 0 0

)B+A(.tmadessecorplatoT t 37 031 301 31 0oitargnilcyceR % %1.48 %4.99 %6.69 %6.99 %0.001

ygrenEOC 2

noitpmusnocrewopcirtcelE hWk000,1 207,93 101,24 327,04 546,93 140,93detarenegrewoP hWk000,1 0 0 0 27 18

noitpmusnoclioleufyvaeH Lk 813,1 034,1 263,1 782,1 443,1noitpmusnocenesoreK Lk 0 0 0 0 101

noitpmusnocGPL m000,1 3 2.12 5.81 3.02 8.61 7.51noitpmusnocsagenatuB m000,1 3 2.06 7.54 9.16 8.75 8.45

noitpmusnocsagnwoT m000,1 3 0 0 0 0OC 2 snoissime c-t 2.206,7 3.349,7 8.458,7 0.457,7 3.267,7

retaWsecruoser

)A()maertspu(egasuretaW t000,1 9.95 5.37 8.07 6.47 6.28)B()depmup+retawdnuorg(egasuretaW t000,1 1.281 1.161 8.831 2.951 0.861

)B+A(egasuretawlatoT t000,1 0.242 6.432 6.902 8.332 6.052

noitullopriA

snoissimexON t 1.4 5.4 7.4 0.4 4.4snoissimexOS t 1.1 3.1 0.1 2.1 4.1

setalucitraP t 40.0 70.0 70.0 30.0 80.0

retaWnoitullop

)dnamednegyxolacimehcoib(DOB t 60.1 81.1 00.1 22.1 45.1)dnamednegyxolacimehc(DOC t 15.1 21.1 23.1 86.1 09.1

lioSnoitullop

noitartnecnocenelyhteorolhcirT L/gm 200.0 - 300.0 300.0 300.0noitartnecnocenelyhteorolhcarteT L/gm 200.0 - 100.0 100.0 100.0noitartnecnocenahteorolhcirt-1,1,1 L/gm 001.0 - 001.0 001.0 200.0

RTRP

eneuloT:deldnah.tmA gk 420,61 114,4 412,4 465,1 955,1enelyX:deldnah.tmA gk 542,22 347,5 491,9 931,5 006,3

remonomenerytS:deldnah.tmA gk 0 0 0 0 0FHT:deldnah.tmA gk 0 0 0 0 0

enizardyH:deldnah.tmA gk 0 0 0 0 0enahtemorolhciD:deldnah.tmA gk 0 0 0 0 0

sdnuopmocdnamuineleS:deldnah.tmA gk 0 0 0 0 0enelyhteorolhcirT:deldnah.tmA gk 0 0 0 0 0

Materials from used products collected from customers are not included in the waste data.

Environmental Performance Results (by work site)

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55

Appendices

metI rotacidnI tinU

etsaWslairetam

tnuomalatoT t 679,1 229,1 826,1 507,1 676,1)A(gnilcycerslairetam.tmA t 464,1 065,1 143,1 854,1 094,1

)B(gnilcycerlamreht.tmA t 015 263 782 742 681)B+A(gnilcycerecruoser.tmA t 679,1 229,1 826,1 507,1 676,1

)A()llifdnal(.tmadessecorplaniF t 2 0 0 0 0)B()rotarenicni(.tmadessecorplaniF t 0 0 0 0 0

)B+A(.tmadessecorplatoT t 2 0 0 0 0oitargnilcyceR % %9.99 %0.001 %0.001 %0.001 %0.001

ygrenEOC 2

noitpmusnocrewopcirtcelE hWk000,1 060,15 085,15 002,95 020,16 147,46detarenegrewoP hWk000,1 0 0 0 0 0

noitpmusnoclioleufyvaeH Lk 226,2 265,2 708,2 895,1 901noitpmusnocenesoreK Lk 0.0 0.0 0.0 0.048 2.832,2

noitpmusnocGPL m000,1 3 2.31 3.31 0.41 1.21 6.21noitpmusnocsagenatuB m000,1 3 0.0 0.0 0.0 0.0 0.0

noitpmusnocsagnwoT m000,1 3 0.0 0.0 0.0 0.0 0.0OC 2 snoissime c-t 0.853,9 0.696,9 0.817,01 0.790,01 4.907,9

retaWsecruoser

)A()maertspu(egasuretaW t000,1 0.0 2.4 9.71 8.61 6.71)B()depmup+retawdnuorg(egasuretaW t000,1 0.078,2 0.757,2 0.402,3 0.075,2 6.541,2

)B+A(egasuretawlatoT t000,1 0.078,2 2.167,2 9.122,3 8.685,2 2.361,2

noitullopriA

snoissimexON t 3.5 8.4 9.4 5.4 3.3snoissimexOS t 6.1 1.2 1.3 9.0 2.0

setalucitraP t 7.0 8.0 4.0 4.0 2.0

retaWnoitullop

)dnamednegyxolacimehcoib(DOB t 00.4 09.3 05.4 06.3 07.2)dnamednegyxolacimehc(DOC t 00.4 09.3 05.4 06.3 02.2

lioSnoitullop

noitartnecnocenelyhteorolhcirT L/gm - - - 000.0 000.0noitartnecnocenelyhteorolhcarteT L/gm - - - 000.0 000.0noitartnecnocenahteorolhcirt-1,1,1 L/gm - - - 000.0 000.0

RTRP

eneuloT:deldnah.tmA gk 091,1 050,4 027,01 053,11 696,4enelyX:deldnah.tmA gk 052,1 059,2 003,4 046,9 214,8

remonomenerytS:deldnah.tmA gk - - 094 754 096,4FHT:deldnah.tmA gk 008,01 026,91 047,91 597,23 107,93

enizardyH:deldnah.tmA gk - - 015 093 341enahtemorolhciD:deldnah.tmA gk 034,711 072,92 079,22 795,11 103

sdnuopmocdnamuineleS:deldnah.tmA gk 084,61 061 042 052 84enelyhteorolhcirT:deldnah.tmA gk 0 0 0 0 0

FY 1997FY 1996 FY 1998 FY 1999 FY 2000

Takematsu Site

Nakai Corporate Research LaboratorymetI rotacidnI tinU

etsaWslairetam

tnuomalatoT t 09 601 57 76 58)A(gnilcycerslairetam.tmA t 24 25 93 83 86

)B(gnilcycerlamreht.tmA t 0 0 0 0 7)B+A(gnilcycerecruoser.tmA t 24 25 93 83 57

)A()llifdnal(.tmadessecorplaniF t 84 45 63 92 01)B()rotarenicni(.tmadessecorplaniF t 0 0 0 0 0

)B+A(.tmadessecorplatoT t 84 45 63 92 01oitargnilcyceR % %8.64 %9.84 %7.15 %5.65 %2.88

ygrenEOC 2

noitpmusnocrewopcirtcelE hWk000,1 667,5 300,6 833,5 545,4 815,4detarenegrewoP hWk000,1 0 0 0 0 0

noitpmusnoclioleufyvaeH Lk 0 0 0 0 0noitpmusnocenesoreK Lk 0 0 0 0 0

noitpmusnocGPL m000,1 3 0 0 0 0 0noitpmusnocsagenatuB m000,1 3 0 0 0 0 0

noitpmusnocsagnwoT m000,1 3 4.276 9.047 9.475 2.535 9.725OC 2 snoissime c-t 8.992,1 2.293,1 1.791,1 9.740,1 1.530,1

retaWsecruoser

)A()maertspu(egasuretaW t000,1 8.44 6.06 7.95 4.05 9.05)B()depmup+retawdnuorg(egasuretaW t000,1 0 0 0 0 0

)B+A(egasuretawlatoT t000,1 8.44 6.06 7.95 4.05 9.05

noitullopriA

snoissimexON t 6.0 7.0 5.0 5.0 4.0snoissimexOS t - - - - -

setalucitraP t 400.0 100.0 800.0 900.0 700.0

retaWnoitullop

)dnamednegyxolacimehcoib(DOB t 43.0 17.0 86.0 99.0 1.2)dnamednegyxolacimehc(DOC t 74.0 66.0 46.0 48.0 3.1

lioSnoitullop

noitartnecnocenelyhteorolhcirT L/gm - - 000.0 - -noitartnecnocenelyhteorolhcarteT L/gm - - 000.0 - -noitartnecnocenahteorolhcirt-1,1,1 L/gm - - 000.0 - -

RTRP

eneuloT:deldnah.tmA gk 0 0 0 0 0enelyX:deldnah.tmA gk 0 0 0 0 0

remonomenerytS:deldnah.tmA gk 0 0 0 0 0FHT:deldnah.tmA gk 0 0 0 0 0

enizardyH:deldnah.tmA gk 0 0 0 0 0enahtemorolhciD:deldnah.tmA gk 0 0 0 0 0

sdnuopmocdnamuineleS:deldnah.tmA gk 0 0 0 0 0enelyhteorolhcirT:deldnah.tmA gk 0 0 0 0 0

FY 1997FY 1996 FY 1998 FY 1999 FY 2000

Location: 430 Greentech Nakai, Sakai, Nakai-cho,Ashigara-kami-gun, Kanagawa Prefecture

Location: 1600 Takematsu, Minami Ashigara City, Kanagawa Prefecture

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56

Resource-Recycling Product Label

yrogetaC emantcudorP sledomfo.oN

reipoC

121ecaviV032ecaviV033ecaviV633ecaviV

054ecaviV554ecaviV055ecaviV555ecaviV

C676/676ecaviV027ecaviV

V808ecaviV11

reipocnoitcnufitluM

052ertneCucoD152ertneCucoD053ertneCucoD153ertneCucoD004ertneCucoD104ertneCucoD054ertneCucoD

505ertneCucoD605ertneCucoD055ertneCucoD006ertneCucoD506ertneCucoD606ertneCucoD056ertneCucoD

507ertneCucoD607ertneCucoD

0101ertneCucoD0811elbA1213elbA0813elbA

02

retnirp/reipocroloC126rolocA139rolocA

639rolocAPC0521/0521roloCucoD

5521roloCucoD0404roloCucoD

6

etubirttalaitnessE

.strapfo)ssamyb(5%4nahteromfoytilibasueR.)ssamyb(5%4nahteromsietarytilibasuerstrapehtdnadennalpsiesuerstrap,dehcnualeraselasnehw,rO

.)ssamyb(5%9nahteromsitnempiuqeehtgnisirpmocstrapehtfonoitroporpelbalcycerehT

.strapelbasuerfolavomerehtrofdedeeneraslootelbaliavaylnommocylnO

etubirttaderreferP

.tekramehtmorfdetcellocneebevahtahtstinuedam-ynapmoCmorfderevocercitsalpdelcycerfoesuekamtnempiuqeehtfostraproiretxEehtybderutcafunamstcudorpwenrofstraproiretxeekamotdesuebniaganactcudorpehtfostraproiretxeehtgnisirpmoccitsalpdelcycereht,rO

.ynapmoC

.tekramehtmorfdetcellocneebevahtahtstinuedam-ynapmoCmorfderevocercitsalpdelcycerfoesuekamtcudorpehtfostraproiretnIybderutcafunamstcudorpwenrofstraproiretniekamotdesuebniaganactcudorpehtfostraproiretxe/roiretniehtgnisirpmoccitsalpdelcycereht,rO

.ynapmoCeht

.slairetamdelcycermorfedamesohtrostrapdesuerfotsisnocstcudorps’ynapmoCekamotdesustrapehtfo)ssamyb(0%5nahteroM

.dennalpsirotuodeirracgniebydaerlasignilcyceregdirtraC

5%.9nahteromsislairetamelbasuotniedamerrodesuerebnactahtslairetamgnigakcapfo)ssamyb(noitroporpehT

.seunevrehtohguorhtroetisbewehtno,golatactcudorpehtnidezicilbuperastcudorptnaveleR

2. Reuse and recycling of collected products

Resource-Recycling Product Label Qualification Standards

Products Qualifying for the Resource-Recycling Product Label (as of Feb. 8, 2001)

1. Establishment of collection systemetubirttalaitnessE ssenevitceffestidevorpsahtahtmetsysnoitcellocdehsilbatsenA:tinuniamroF

etubirttaderreferP ssenevitceffestidevorpsahtahtmetsysnoitcellocdehsilbatsenA:egdirtracroF

3. Manufacturing through a process that fully integrates recycling

etubirttalaitnessEelgnisanistnemelesadeganamerassecorpylbmessa-tcudorpehtotssecorpgnilcycerehthguorhtstcudorpdetcellocfoylbmessasidehtmorfspetSylbmessafoemitehtotdeviecererastcudorpdesutahtemitehtmorfgnilcycersetargetniylluftahtssecorpaaivderutcafunamerastcudorP.metsys

.strapdelcycerdnawengnisu

etubirttaderreferP.noitcudorpesuoh-nignirudynapmoCehtybdesutonerasnoitalugerlanretniyblufmrahsadenifedsecnatsbuS

.dlrowedistuoehtotdesolcsidsissecorpgnirutcafunamehT

4. Design for next-generation recycling and reuse

setubirttalaitnessE

,noitazidradnats,strapdezinommocedulcniserutaefngiseD-ediwdlrowpuorGxoreXehtotnommoceratahtngisedgnilcycerrofsenilediugnodesabngiseDdnagninaelcfoesae,strapelgnisfoegnahcxe,noitacifidomtuohtiwstrapfoesuereht,ylbmessaerdnaylbmessasidfoesae,slairetamelbalcycerfoesueht

.egnahcxefoesae

).secnatsbuseerhtrofedamllitserasnoitpecxE(.strapnidesusi,snoitalugerynapmoCotgnidrocca,secnatsbuslufmrahdetangisedneveleehtfoenoN

etubirttaderreferP waLnoitavresnoC-ygrenEehthtiwecnailpmoC

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57

Appendices

yrogetaC emantcudorP sledomfo.oN

retnirP082tnirPucoD012tnirPucoD

104tnirPucoD081tnirPucoD

0502ediWucoD5

reipoclatigiD

507ertneCucoD506ertneCucoD505ertneCucoD

K505ertneCucoDK507ertneCucoD

S0101ertneCucoD

DD-ledoM152ertneCucoDDD-ledoM153ertneCucoDDD-ledoM104ertneCucoD

607ertneCucoD606ertneCucoD605ertneCucoD

K506ertneCucoD0101ertneCucoD

152ertneCucoD153ertneCucoD104ertneCucoD

71

reipocnoitcnufitluM

FM0502ediWucoDJ0511ertneCkroWPC605ertneCucoDPC606ertneCucoDPC607ertneCucoDFC152ertneCucoD

FC153ertneCucoDFC104ertneCucoDSF153ertneCucoDCE0502ediWucoDPC505ertneCucoDPC506ertneCucoD

PC507ertneCucoDJ0512ertneCkroW

DD-ledoMFC152ertneCucoDDD-ledoMFC153ertneCucoD

SF152ertneCucoDDD-ledoMSF104ertneCucoD

81

retnirp/reipocroloC

214tnirPucoDSP526CtnirPucoD

126CtnirPucoD453CediWucoD

04EdniWteJN07BdniWteJ

0222CtnirPucoDDledom0222CtnirPucoD

026CtnirPucoDSledom026CertneCucoD

633CediWucoDC016dniWteJ

07BdniWteJ06hceTucoDroloC

Tledom0222CtnirPucoDDTledom0222CtnirPucoD

61

seirestcudorP emantcudorP sledomfo.oN

0521roloCucoD0521roloCucoD

DD0521roloCucoDADPC0521roloCucoD

UD0521roloCucoDPC0521roloCucoD 5

0101ertneCucoD 0101ertneCucoD S0101ertneCucoD 2

ertneCucoD 507/506/505

505ertneCucoDPC505ertneCucoD

506ertneCucoDPC506ertneCucoD

507ertneCucoDPC507ertneCucoD

K505ertneCucoDK506ertneCucoD

605ertneCucoDPC605ertneCucoD

606ertneCucoDPC606ertneCucoD

607ertneCucoDPC607ertneCucoD

K507ertneCucoD

51

056ertneCucoD 056ertneCucoD 1

006/055/054ertneCucoD

E-ledom054ertneCucoDDE-ledom054ertneCucoD

DE-ledomPC054ertneCucoDE-ledom055ertneCucoD

E-ledomPC055ertneCucoD006ertneCucoD

PC006ertneCucoDH-ledom006ertneCucoD

H-ledomPC006ertneCucoD

E-ledom154ertneCucoDDE-ledom154ertneCucoD

DE-ledomPC154ertneCucoDE-ledom155ertneCucoD

E-ledomPC155ertneCucoD106ertneCucoD

PC106ertneCucoDH-ledom106ertneCucoD

H-ledomPC106ertneCucoD

81

004/053ertneCucoD

053ertneCucoDFC053ertneCucoDSF053ertneCucoD

DD-ledom004ertneCucoDDD-ledomSF004ertneCucoD

DD-ledom053ertneCucoDDD-ledomFC053ertneCucoD

004ertneCucoDFC004ertneCucoD

9

104/153ertneCucoD

153ertneCucoDFC153ertneCucoDSF153ertneCucoD

DD-ledom104ertneCucoDDD-ledomSF104ertneCucoD

DD-ledom153ertneCucoDDD-ledomFC153ertneCucoD

104ertneCucoDFC104ertneCucoD

9

V808ecaviV V808ecaviV 027ecaviV 20502ediWucoD CE0502ediWucoD FM0502ediWucoD 2

Eco Label ProductsCopiers Qualifying for the Eco Mark (as of Mar. 31, 2001)

Products Qualifying for International Energy Star in FY 2000 (Mar. 31, to Dec. 31, 2000)

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58

ISO14001 Certification

Numbers of Personnel with Environment-Related Qualifications

Work Sites with ISO14001 Certifications

Appendices

etisfoemaN .onenohP LRUetisbewcilbuPfoetaD

noitacifitrec.onetacifitreC ydobgniyfitreC

etiSustamekaT 1113-47-5640 30.7991 7901J69CEnoitacifitreCdnatiduAnapaJ

)OCAJ(noitazinagrO

SanibE 1113-832-640 50.7991 8201J79CEnoitacifitreCdnatiduAnapaJ

)OCAJ(noitazinagrO

.dtL,.oCxoreXijuFakuzuS 8888-17-3950 /pj.oc.xfakuzus.www//:ptth 50.7991 9101J79CEnoitacifitreCdnatiduAnapaJ

)OCAJ(noitazinagrO

SikustawI 1115-897-840 01.7991 9901J79CEnoitacifitreCdnatiduAnapaJ

)OCAJ(noitazinagrO

)nohcnI(.dtL,.oCaeroKxoreXijuF 4116-013-2-28 /rk.oc.xorexaerok.www//:ptth 21.7991 66800-CAEnoitaicossAdradnatSnaeroK)AQ-ASK(ecnarussAytilauQ

iahgnahSfoxoreXijuF 0840-0346-12-68 60.8991 9000dnanoitacifitreCMRE

secivreSnoitacifireVdetimiL

.dtL,.oCylppuSeciffOxoreXijuF 1836-5923-30 /pj.oc.soxf.www//:ptth 30.9991 2121J89CEnoitacifitreCdnatiduAnapaJ

)OCAJ(noitazinagrO

)airdnaxelA(ailartsuAxoreXijuF 0086-0079-2-16 /ua.moc.xorexijuf.www//:ptth 80.9991 1/49001CytPsecivreSesnarussAytilauQ

.dtL

)dnalteZ(ailartsuAxoreXijuF 0282-5438-2-16 /ua.moc.xorexijuf.www//:ptth 80.0002 2/49001CytPsecivreSesnarussAytilauQ

.dtL

foynapmoCygolonhceThgiHxoreX.dtLneznehS

114208-557-68 11.0002 030-0002-50

NEHZNEHSLATNEMNORIVNE

TNEMEGANAMNOITACIFITRECMETSYS

RETNEC

.dtL,.oCnoitubirtsiDxoreXijuF 0060-5825-30pj.oc.xorexijuf.cdxf.www//:ptth

lmth.xedni/21.0002 A9405000-EQN )AQKKKN(iakietnekiJiaknohiN

.dtL,.oCxoreXawaganaK 1011-186-540 /pj.oc.xorexnk.www//:ptth 21.0002 6610J00CEnoitacifitreCdnatiduAnapaJ

)OCAJ(noitazinagrO

.dtL,.oCxoreXigayiM 1312-122-220 /pj.oc.xorexigayim.www//:ptth 30.1002 4820J00CEnoitacifitreCdnatiduAnapaJ

)OCAJ(noitazinagrO

eti

eti

noitacifilauQ No. of personnel noitacifilauQ

ytefaSnaicinhcetyar-X 53

suodrazaHsecnatsbus

ssalctsrifreldnahecnatsbus-suodrazaH 951

reldnahecnatsbuscixoT 41dnocesreldnahecnatsbus-suodrazaH

ssalc764

relioB

naicinhcetreliobtrepxE 2

noitneverpnoitulloP

ria:naicinhcetnoitneverp-noitulloP 92

ssalctsrifnaicinhcetrelioB 81 retaw:naicinhcetnoitneverp-noitulloPytilauq

34ssalcdnocesnaicinhcetrelioB 121

esion:naicinhcetnoitneverp-noitulloP 81naicinhcetenibrutdnarelioB 3

rosivrepusnoitneverp-noitulloP 3

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ssalctsrifreenignelacirtcelE 4rosivrepusnoitneverpnoitullop-nabrU

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81

No. of personnel

Page 61: Page ref. - Fuji Xerox · Period covered: For Fuji Xerox itself, "Environmental Report 2001" covers FY 2000 (January 1, 2000 to December 31, 2000); some sections that describe ongoing

59

Examination of environmental report by auditorsThe results of company's business operations are disclosed to the public through our annual environmental

report. Needless to say, it is essential that items stated in the report are pertinent and reliable.

Since the Annual Report of the company is audited, we believe it is also important to audit our environmental

activities. Taking this viewpoint into consideration, we audited our Environmental Report 2001.

In terms of the validity and authenticity of the contents of the reports, we based our judgement on the audit

results of the previous year's report. In addition, we referred to the E&S committees' documents and reports,

and information gathered by participating in various environmental activities.

In our opinion, the Environmental Report 2001 accurately represents the environmental activities in the Fuji

Xerox Group.

Auditors' Assessment of Environmental Report 2001