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FUJI XEROX NEW ZEALAND SUSTAINABILITY REPORT 2018

TITIRO WHAKAMURI KIA HAERE WHAKAMUA

THE PAST INFORMS THE FUTURE

Cover photographer: Leon Sun, Kofax Practice Lead, AucklandAbove photographer: Duda Hawaii

governing Māori principle that is intended to encourage one to set ambitious goals and show resilience when facing what may seem like an impossible task.

Our company has gone through so much transition which we acknowledge, and now we are on a journey to be a business that once again New Zealand can be proud of.

The following pillars of our report are essential to help us strive towards being the greatest mountain that we can be:

As this report tells the story of Fuji Xerox New Zealand, we felt that it was important to recognise our Japanese heritage and New Zealand roots.

The chapters of this report are dedicated to a pillar of our Sustainability Framework and you’ll notice that we have used Japanese and Te Reo at the beginning of each section. The Japanese text is a direct translation of the chapter title and the Te Reo text is a Māori proverb that we believe aligns with the values of each of the Sustainability Framework pillars. The title of our report, The Past Informs the Future aligns with the above

WHĀIA TE ITI KAHURANGI, KI TE TUOHU KOE, ME HE MAUNGA TEITEI PURSUE THAT WHICH IS PRECIOUS AND DO NOT BE DETERRED BY ANYTHING LESS THAN A LOFTY MOUNTAIN

OUR PEOPLE:

EHARA TAKU TOA I TE TOA TAKITAHI, ENGARI HE TOA TAKITINI

Success isn’t achieved by an individual, it’s successfully achieved by a collective

OUR BUSINESS:

HE KŌTUKU RERENGA TAHIWhite heron of single flight, signifies how significant it is to sight a kōtuku. So too the recent development

of Fuji Xerox New Zealand’s turnaround plan and supporting vision for the future.

OUR COMMUNITY:

TOITŪ TE KUPU, TOITŪ TE MANA, TOITŪ TE WHENUA

Hold fast to our language, our authority and land. Take all the components from the report, adhere

and believe because without these things, the essence of Fuji Xerox New Zealand would

no longer exist.

OUR CUSTOMERS:

WAIHO MĀ TE TANGATA E MIHILet others (customers) praise and acknowledge your efforts. This is intended to suggest that our customer satisfaction will measure our success.

OUR FOOTPRINT:

E KORE TE PĀTIKI E HOKI ANŌ KI TŌNA PUEHUThe Flounder (fish) never returns to its own dust, it looks

for new opportunities – for Fuji Xerox New Zealand, these opportunities are improving the environmental

performance of our products, operations and pioneering the circular economy.

Fuji Xerox New Zealand Sustainability Report 2018

WELCOME TO A NEW FUJI XEROXSTATEMENT FROM PETER THOMAS – MANAGING DIRECTOR OF FUJI XEROX NEW ZEALAND LTD

Fuji Xerox New Zealand is proud to release its inaugural sustainability report in accordance with the GRI Sustainability Reporting Framework.The intention of this report is to provide all of our stakeholders with a transparent account of our business performance, in particular the changes that have been implemented over the past two years to strengthen all aspects of our operations. Our ambition is to continually enhance our culture, capabilities and performance to ensure we are a long-term sustainable organisation that can continue to deliver world-class document management solutions to New Zealand businesses, no matter how big or small.

The past two years have been a challenging time for us at Fuji Xerox New Zealand, especially in light of the inappropriate accounting activities that came to light publicly in early 2017. One thing is for sure — we can’t

change the past. But we can certainly learn from the past and ensure as a company we are doing all we can to establish and continually improve our business operations so that in the future, all stakeholders, be they staff, customers, suppliers or the communities of New Zealand, can be proud of their association with us.

We have been operating in New Zealand for over 50 years, and it is the vision of the Board, and Fuji Xerox New Zealand Management, to ensure we are building a long-term sustainable company that will be around for many years to come. We also hope that by being open and transparent about our challenges, and our progress to achieve our vision, that others can learn from our experiences and enhance the sustainability and capability of their organisations, which will ultimately make New Zealand a better place for everyone.

To inform this report, we undertook an in-depth exercise with both external and internal stakeholders to identify our top five topics of materiality towards achieving our company vision. The topics are: ethics, customer satisfaction, technology and innovation, product stewardship, and energy and carbon. While there are other important issues that this report touches on, these top five topics are the ones we are paying the most attention to in the short – medium term, while ensuring sound, ethical business practices in every aspect of our business are of critical importance.

In terms of our medium to longer-term goals, we are also committed to making an impact as best we can to several of the Global Goals (the Sustainable Development Goals, or SDGs, discussed on pages 12-13 and in relevant areas throughout this report).


The SDGs provide us with a framework on which to hinge some our longer-term hopes for our business, and in addition, they help to guide our sustainability strategy going forward.

In alignment with the FUJIFILM Sustainable Value Plan 2030, our material topics and the SDGs, Fuji Xerox New Zealand is committed to supporting New Zealand’s transition to a circular economy and meeting its 2050 carbon targets. The circular economy mega-trend will change the way industries and businesses design, procure, use and dispose of products as precious materials become more scarce and impose a greater negative impact not only on the environment but also on society and the bottom-line. Already, the products that we sell achieve a reuse and recycling rate of over 99.5%, and we are constantly looking for new and innovative ways to demonstrate stewardship and keep our materials circulating.

As one of the signatories of the Climate Change Coalition (see page 81), we are proud to stand alongside some of New Zealand’s most successful and inspirational organisations in declaring our commitment to being part of a low-carbon economy.

To ensure we are doing our bit, we aim to align our business behind the challenge of being net zero carbon by 2030. This will require establishing science-based targets consistent with keeping within 1.5°C of warming, publicly reporting on our greenhouse gas emissions and working with our customers and suppliers to help them reduce their greenhouse gas emissions.

Digitisation is another area that will change the way businesses operate. We are seeing an increasing number of our customers digitising their workplaces

to drive efficiencies and to meet their own sustainability targets. To ensure we align our business direction with that of the wider community, we are investing in the R & D of digital transformation technology, and, we are supporting businesses to digitise and improve the way they do business with some of the enterprise solutions that we sell.

To bring all of this together, and to ensure we can achieve our sustainability goals, I recognise that our most important asset is our people. Our employees – united by a passion for New Zealand and representing a kaleidoscope of cultures – come to work for Fuji Xerox every day and do their absolute best to serve our customers and complete their daily tasks to the highest possible standards. Recognising the importance of our people, and to help guide their behaviours, in 2016 we created a Team Charter; with a set of simple statements to characterise what we stand for in the new Fuji Xerox. Our Team Charter is discussed in more detail on page 21.

I invite you to have a look at our Commitments to Being a Better Business, overleaf. It outlines in numbers what we have done to strengthen and embed our sustainability strategy throughout our business. In addition, the 19 x 19 targets (page 10, which we will reference frequently throughout the report) outline a set of 19 targets we aim to achieve by FY19 (April 2019-March 2020). We will report on our progress in our FY20 Sustainability Report.

In October 2017, our shareholder appointed me as Managing Director of Fuji Xerox New Zealand.

I am incredibly proud to have the opportunity to lead our business here in New Zealand, and I’m excited to be part of the new Fuji Xerox team, who is rebuilding

our business from the bottom up. As you will see in this sustainability report, we have driven huge changes to establish appropriate foundations for the future and to achieve our vision. It is at this point in our trajectory as a business that we take the journey from the past forward, Titiro whakamuri, kia haere whakamua. We absolutely cannot change if we do not acknowledge the actions and behaviour of the recent past. We can only become stronger by doing so.

While we recognise there is always more to do, we have made much progress toward achieving our vision in the past two years. I hope you will find this report informative and thought-provoking, and above all, I hope our transparency in terms of where we have come from, and where we are going gives you food for thought for your own journey.

Sincerely,

Peter Thomas

1

FUJI XEROX NEW ZEALAND: OUR COMMITMENTS TO BEING A BETTER BUSINESS

19x1919 company-wide sustainability targets

to be achieved by FY19

285Sustainability KPIs that have been consolidated into over

40 internal KPIs for every branch and department to measure and improve our sustainability performance

99.5%Equipment recycled through our Product Stewardship Scheme

30Internal commitments to being a better business

5+55 Priority topics:

Ethics, Product Stewardship, Technology and Innovation, Carbon and Energy, Customer Satisfaction

+5 Pillars to our Sustainability Framework:

Our Business, Our People, Our Footprint, Our Customers, Our Communities

4Points in Our Team Charter:

We will treat and respect people as people.

We will be proud of who we are and passionate about what we do.

We will collaborate and embrace change positively.

We will do right by our customers and stakeholders.

3Partners in Project Alchemy, our circular economy initiative

(awarded a grant by the Ministry for the Environment)

2Years’ sustainability data reported in our first GRI sustainability report

1Product Stewardship Roadmap launched with

the Ministry for the Environment

ZEROTIME TO WASTE

BUSINESS

BEIN

G A BETTER


WE HAVE STRUCTURED THIS REPORT AROUND OUR SUSTAINABILITY FRAMEWORK AND THE FOLLOWING 5 PILLARS:

OUR BUSINESSThe last 18 months have been a difficult time for Fuji Xerox here in New Zealand and we continue to work hard every day to rebuild the trust of our customers and community in the Fuji Xerox brand. We have made extensive changes to ensure that today, the company is run in a principled way that adheres to the highest levels of corporate governance and ethical behaviour.

Our response to the Independent Investigation Committee (IIC) report has been comprehensive and far-reaching and we have implemented a series of measures, policies and processes to ensure we operate our business in an open, honest and transparent manner, all underpinned by the highest ethical standards.

Technology & Innovation - Fuji Xerox is one of the most recognised technology brands in the world with a commitment to innovation a key part of the DNA of the company. We have an extensive range of offerings from printers and office multifunction devices through to high volume colour production systems, document management solutions, robotic process automation and accounts payable solutions. Our global commitment to research and development ensures we continue to offer our customers here in New Zealand the best available technology.

For a business with a long history of producing technology that prints on paper, we understand the implications of digital disruption and we have a growing consulting practice dedicated to working with our clients on their digital transformation journeys.

Within our own business we are constantly looking for ways to innovate to make us operate more efficiently and effectively and we too are on a digital transformation journey using the expertise of our enterprise consulting practice to guide us.

We recognise that all our customers are looking to reduce their respective environmental footprint and we are proud to be able to provide them with industry leading energy efficient products, solutions to help them print less and an industry first Minister for the Environment Accredited take programme for all end of life Fuji Xerox machines and consumables.

OUR PEOPLEThe long term success of Fuji Xerox will be defined by our people and we recognise that the last 18 months have been a difficult period for all staff. Our people are our most important asset and we have worked hard to ensure that we have a clear people strategy that inspires, motivates and ensures that every employee works together in harmony to deliver our objectives. As part of building a long-term sustainable business, there has been a strong focus on ensuring we have the right structure in place to support our objectives and strategic direction going forward. To enable this, we have gone through an organisational redesign programme which has reshaped the face of the business and led to a 10% reduction in our headcount over the last two financial years.

The report also covers the work we have done redefining the culture of the organisation and the introduction of a Team Charter which is a set of simple statements to characterise what we stand for in the new Fuji Xerox.

This report also celebrates the success of our employees’ career progression and highlights our new training programmes, our new remuneration framework, and how we are focused on continuing to improve employee engagement and employee satisfaction.

3Fuji Xerox New Zealand Sustainability Report 2018

OUR COMMUNITYThe commitment to supporting the communities within which we operate remains a core pillar of how we do things in New Zealand and the report highlights the support we provided over the last two years. In total we invested approx. $1.6m into New Zealand Communities in a wide range of programmes. As well as providing financial support, our staff have been very active in their local communities and the report highlights some of the volunteering programmes that our staff have committed to.

OUR CUSTOMERSThe loyalty shown to us by our customers over the 18 months has been incredible and testament to the market leading products and services that we deliver day after day to our 10,000 customers. There is no question that we suffered some reputational damage over the last 18 months but the commitment to provide outstanding service to our customers has remained resolute. When we asked our people what is the most important topic for the future of the business, they rated customer satisfaction as the number one material topic. Our people are committed to our customers and the report highlights the new initiatives we have put in place at all steps of the customer journey to optimise the customer experience.

Over the reporting period we have taken on board many new clients and delivered a wide variety of world-class solutions in all areas of our business and the report gives a snapshot of some of the work we have completed and the positive impact it’s had on our customers’ businesses.

OUR FOOTPRINTGlobally Fuji Xerox has a commitment to reduce the environmental impacts of our business and we report on the progress we have made locally over the last two years and discuss the 19x19 short term business targets we have set to mitigate our operational impacts and reduce our carbon footprint.

We believe that product stewardship is the first step to a circular economy and the report celebrates the work we have done in this areas and the recognition we have received from the Minister for the Environment for or work locally. We believe that we set the standard locally for our industry in this area.

In addition to reporting on our own environmental progress, the report showcases innovative projects and partnerships that we are working on to support the respective sustainability journeys of our customers and New Zealand.

4 Fuji Xerox New Zealand Sustainability Report 2018

Photographer: Jeremy Matthews

We are proud to share with you our workforce and their talented photography skills. Throughout this report, you will notice that we have used mountains to start off each of our chapters, most of which have been taken by our employees and their families. The “people” photos are of our employees and even some their children who feature in our toner cartridge recycling film.


CONTENTSOUR FIRST SUSTAINABILITY REPORT . . . . . . . . . . . . . . . . . .6Our Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7Sustainability Framework FY16 – FY17 . . . . . . . . . . . . . . . . . . . . . .8

OUR BUSINESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22Risk and Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26The Building Blocks of Our Sustainability Strategy . . . . .29Ethics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31Technology and Innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46Reducing Our Customers’ Footprint . . . . . . . . . . . . . . . . . . . . . . . . .50Investing in New Technology for the Future . . . . . . . . . . . . .52Fortune Favours the Disruptive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53Our Own Technology and Innovation Journey . . . . . . . . . .55

OUR PEOPLE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .56Our People Are Key to Our Success . . . . . . . . . . . . . . . . . . . . . . . . . .58

OUR FOOTPRINT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .74Managing Our Impacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .76Energy and Carbon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .77Product Stewardship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .85

OUR CUSTOMERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .97Our Capabilities and Market Footprint . . . . . . . . . . . . . . . . . . . . .98The Customer Experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .99Customer Satisfaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100

OUR COMMUNITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .109Global, Yet Local . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110Commitment to Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112

Commitment to Sport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114Commitment to Charity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115

ABOUT THIS REPORT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .116Materiality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120

GRI Content index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .128

Out Next Sustainability Report: Being a Better Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .130


OUR FIRSTSUSTAINABILITY REPORT

Photographer: Juliet Xu


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At Fuji Xerox New Zealand, we are emerging from a significant period of transition, which has been challenging for our company. However, we are positive about the direction we are heading in and the journey that we hope will see us emerge as a leading company in technology and sustainability in New Zealand.

This is our first sustainability report that has been produced to meet our stakeholders’ information needs. This report has been prepared in accordance with the GRI Standards: Core Option*.

This report has been prepared to give our stakeholders the utmost level of transparency. While we are not obligated to produce a GRI sustainability report, we would like to provide our stakeholders with the utmost level of transparency into all aspects of our organisation, and our recent events.

This transition period started with the discovery of inappropriate accounting practices. We recognise how this incident has impacted on our credibility and fully understand the work required to rebuild the trust of our valued stakeholders. We believe that transparently communicating our environmental, social, governance and economic performance builds trust.

Trust underpins our relationships with our employees, customers and stakeholders throughout New Zealand. And we understand that these relationships are critical to our success.

More details on the inappropriate accounting issues, and how our business has dealt with them, can be found from pages 31-41 of this report and in our parent 2017 Fuji Xerox Sustainability Report (specifically pages 3-8), which can be downloaded from www.fujixerox.com/eng/company/csr

* For more information on the Global Reporting Initiative (GRI) and the GRI Sustainability Reporting Standards, please visit: www.globalreporting.org/standards

ABBIE REYNOLDSEXECUTIVE DIRECTOR, SUSTAINABLE BUSINESS COUNCIL

I want to congratulate Fuji Xerox New Zealand on publishing this, their first GRI report. It uses a wide array of information to show how Fuji Xerox New Zealand makes good on their commitment to be a better business. This is well supported by the strength of your process to identify material issues and establish your sustainability framework.

Your willingness to be brave and transparent about the challenges of the past two years is to be applauded. One of the things Fuji Xerox New Zealand can be most proud of is integrating sustainability through a set of 285 KPIs owned by people right across the business. This is something Fuji Xerox should celebrate and share more widely with the business community.

Photographer: Juliet Xu


ETHICSGood governance and ethical

business practices

TECHNOLOGY AND INNOVATION

Delivering innovative products and services as technology changes

DISRUPTIONChanging business context and

new business models

FINANCIAL PERFORMANCECreating economic value and

a return on capital

BUSINESS IMPROVEMENTContinual improvement of

business processes

RESILIENCEResilience to shocks that affect

business continuity

OUR BUSINESS

Fuji Xerox New Zealand Sustainability Framework

FY16 – FY17Between FY15 and FY17, we reviewed a long list of topics considered by our stakeholders

to be material to our business (see materiality process and the long list of topics on

pages 120-127). These were grouped into five categories, which represent the pillars of

our Sustainability Framework, and thus the structure of this report.

Our Business, Our People, Our Footprint, Our Customers and Our Community.

The 24 topics in our Sustainability Framework represent the key topics and concerns

raised by all the stakeholder groups we engaged with. From a “systems” perspective,

we appreciate that many of these topics are interrelated, and indeed overlap.

However, they have been grouped into this framework for ease of reference and clarity.

These five pillars together with the five priority (material) topics represent

our 5+5 commitments to Being a Better Business.

The FIVE MATERIAL TOPICS identified for the reporting period are

highlighted in the framework. We go into further detail of each topic in

the relevant section of the report.


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PORT

COMMUNITY RELATIONS

Community relations and social investments

MARKETING AND SPONSORSHIPMarketing messages and

sponsorship alignment

CULTURAL HERITAGEPreservation and conservation

of cultural heritage

OUR COMMUNITY

CUSTOMER SATISFACTION

Customer service and satisfaction

QUALITY AND SAFETYProduct quality and safety

INFORMATION SECURITYInformation security and customer privacy

OUR CUSTOMERS

ENERGY AND CARBONEnergy use and related carbon emissions from

Fuji Xerox New Zealand activity

PRODUCT STEWARDSHIPLifecycle product responsibility,

recycling and E-waste

TRANSPORTLogistics and travel

RESOURCE USENatural resource consumption within

Fuji Xerox New Zealand and related to customers’ use of Fuji Xerox New Zealand’s

products and services

PROCUREMENTSustainable procurement and supply

chain management

HAZARDOUS CHEMICALSHazardous substances used within Fuji Xerox New Zealand’s products

and services

OUR FOOTPRINT

EQUALITY AND DIVERSITYEquality and diversity within

Fuji Xerox New Zealand’s workforce

TRAININGEmployee learning and development

LEADERSHIPDevelopment of Senior Leadership Team

EMPLOYEE ENGAGEMENTEngagement and satisfaction of

Fuji Xerox New Zealand’s employees

REMUNERATIONRemuneration of Fuji Xerox New Zealand’s employees, living wage and income equity

HEALTH AND SAFETYHealth and safety of

Fuji Xerox New Zealand’s employees

OUR PEOPLE

For a breakdown of key topics and concerns raised by various stakeholder groups, please see page 126.


19 x 19: OUR 19 COMPANY-WIDE TARGETS TO BE ACHIEVED BY FY19

19 TARGETS19x19

To be achieved by FY19

Keep an eye out for this icon through out the report

Our 19 x 19 targets are a set of aims to improve our sustainability performance, particularly in areas of most importance to our stakeholders and are determined out of our most recent materiality assessment work (pages 120-127). We aim to achieve these targets by FY19 (financial year 1 April 2019 – 31 March 2020).

The 19 x 19 targets are a fundamental element to our Commitments to Being a Better Business (page 1), which is a depiction in numbers of how we

have embedded sustainability across the Fuji Xerox New Zealand business. The targets are also a part of our Sustainability Management System (SMS) (page 28), a core building block of our entire sustainability strategy.

Referred to as our “19 x 19 targets” throughout the report, we will be reporting on each of these in our 2020 Sustainability Report.

We have already achieved some of these targets and are well on track to achieving others. We will provide a brief progress update to our stakeholders in 2019.

Ethics

100% of all Fuji Xerox New Zealand employees to undertake compliance and ethics training p.a.

Embed ethical business practice into every aspect of our business

1

With the Institute of Business Ethics, develop and implement a business ethics programme for Senior Leadership Team and employees2

Ensure independent verification of our ethical performance Undertake a Institute of Business Ethics ‘Ethics at Work’ survey3

Product Stewardship

Maintain, improve and communicate our Product Stewardship MfE Accreditation

Launch 1 x Circular Economy/Product Stewardship Roadmap to our customers in a national campaign4

Zero waste to landfill (collected equipment)Maintain a recycling rate of 99.5% for the equipment we collect from our customers5

OBJECTIVE TARGETMATERIAL TOPIC

Technology and Innovation

Contribute to the emerging circular economy Undertake a technical trial of TonerPave™ in New Zealand with partners Downer and Close the Loop6

Demonstrate leadership in technology and innovationHost a sustainability technology and innovation event for our customers and stakeholders7

Internally, align with regional Fuji Xerox information technology systems, strengthen compliance and ensure robust governance is in place

Investment Committee to approve and support implementation of an alignment project8


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Energy and Carbon, Transport Transition to net zero carbon by 2030

Reduce our operational energy consumption by 3% based on FY17 benchmark9

Transition 30% of our light fleet to electric vehicles by end 201910

Reduce our FY18 air travel carbon footprint by 5% based on FY17 benchmark

Undertake a benchmark study to establish freight carbon footprint

11

12

Customer Satisfaction

Improve our customer service at every touchpoint Undertake a benchmark study on customer relationship management

Help customers to achieve their sustainability goals Develop a sustainability engagement plan to support our customers

13

14

Business Improvement Improve sustainability performance through our Sustainability Management System (SMS)

Roll out sustainability Key Performance Indicators for every branch and department15

Procurement Demonstrate leadership in sustainable procurement Implement phase 2 of our Sustainable Procurement Strategy19

Community Relations Work in partnership with NZ businesses, organisations and social enterprises

Launch a partnership project with defined community benefit and sustainability innovation outcomes18

Resource Use Zero waste to landfill (operational) Reduce our operational (branch and facility) waste by 5% based on FY17 benchmark16

Employee Engagement Engage, empower and train employees in sustainability Implement a Being a Better Business programme to engage, empower and train employees in our sustainability strategy17


The Sustainable Development Goals (SDGs), contained in the 2030 Agenda for Sustainable Development, were adopted by the United Nations General Assembly in September 2015.

The FUJIFILM Group’s CSR Plan “Sustainable Value Plan 2030 (SVP2030)” presented in 2017 defines long-term goals to be achieved by fiscal 2030 in six areas: the environment, health, daily life, work style, supply chain and governance.

Fuji Xerox plays an important role in helping FUJIFILM Group achieve it’s long-term goals especially in work style. Fuji Xerox supports the UN Global Compact and was nominated a UN Global Compact LEAD company in 2010. Spearheading activities towards the achievement of Sustainable Development Goals (SDGs) as a LEAD Company, we strive for a society where people can demonstrate creativity and engage in fulfilling work by helping to achieve the eighth goal, which calls for decent work and economic growth.

In addition, Fuji Xerox also contributes to SDG 3, 4, 5, 9, 10, 11, 12, 13, 15, 16 and 17 through our engagement with different stakeholders. Individual operating companies are urged to consider which SDGs are most relevant to their operations and where each company can have the greatest impact.

At Fuji Xerox New Zealand, it was important to align with our parent company’s directive to engage with the goals and determine those most relevant to our business. For us at Fuji Xerox New Zealand, the below SDGs are the most relevant to our business and are where we can make the greatest impact.

It has been well established internationally, and among leading businesses in New Zealand utilising the SDG framework, that not only do the global goals help inform company direction and strategy but they also create value for stakeholders as businesses and for communities.

This widely regarded international framework has provided us at Fuji Xerox New Zealand with a useful tool with which to assess our material topics and also

to determine which of the SDGs we can have the most positive impact on. We briefly touch on the relevant SDGs for each material topic discussed throughout this report.

While our assessment and utilisation of the framework is by no means comprehensive, it is a starting point. The SDGs give us a better understanding of the areas we can affect the most and will ultimately help to contribute to the advancement of each goal.

What we have found in this initial exploration of the SDGs is that they help to begin the conversation.

The SDGs provide an avenue for engaging with different audiences on the importance of companies working with communities, governments and nations towards a defined set of goals; these goals make undeniable sense and are undoubtedly desirable to achieve.

Each year, we will aim to report on our progress in each area and deepen our understanding and adoption of the SDGs most relevant to us at Fuji Xerox New Zealand and our local stakeholders in New Zealand.

THIS

REP

ORT

Please refer to page 131 for more detail on how we are tackling each goal.

14 Fuji Xerox New Zealand Sustainability Report 2018Photographer: Jonathan Chooi


OUR BUSINESS

HE KŌTUKU RERENGA TAHI


COMPANY HISTORYOur history began over 70 years ago when Chester Carlson, a patent attorney in the US, invented xerography. Since then, Xerox and Fuji Xerox have issued thousands of patents worldwide.

We continue this spirit of innovation by providing solutions and products that enable our customers to transform their print environment, embrace digital transformation, optimise business processes and work more effectively and sustainably.

ETHICAL BEHAVIOUR GUIDELINES: OUR 10 SHARED VALUES The Fuji Xerox Shared Values comprise 10 value statements, each emphasising and setting forth our responsibility as members of society, our approach to business as business people and, most importantly, our vision as individuals based on a fundamental respect for humanity. As well as expressing our values, they are a starting point for our actions as members of the Fuji Xerox family.

OVERVIEWABOUT FUJI XEROX

Fuji Xerox is a global brand synonymous with leadership in business and document services. We provide state-of-the-art digital printing technologies, enterprise document solutions and business processes, and outsourced services. We help our customers solve complex document-related issues and streamline their workflows and processes.

Established in 1962, Fuji Xerox Co., Ltd. is a joint venture between FUJIFILM Holdings Corporation (75%) and Xerox Limited (25%).

Fuji Xerox New Zealand forms part of a global enterprise group delivering market leading business and document management services. Our Asia-Pacific regional headquarters in Singapore coordinates the activities of 15 subsidiary companies and joint venture operations in Australia, Cambodia, China, Indonesia, Hong Kong, Laos, Korea, Malaysia, Myanmar, New Zealand, Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam.

The Fuji XeroxShared Values


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Customer SatisfactionThe basis of our business is to provide customers with valuable products and services, use the consideration generated from such activities as resources for further growth, and create higher value, gaining trust from our customers throughout the process.

For each member of the Group to realise the intent declared in our Mission Statement, it is necessary to start with Customer Satisfaction as the key precept.

Environmental ConsciousnessCustomers are not the only target of our activities. As a member of the global community, coexistence with nature and protection of the earth’s environment and natural resources - which are the foundation of global development - are required as fundamental social responsibilities. When making conscientious business decisions or in one’s daily life, Environmental Consciousness is essential. In addition, to foster a knowledge society and to enrich diverse cultures, we must promote a healthy environment

High Ethical StandardsTo fulfil our Mission Statement while serving our customers and protecting the environment, high moral standards and proper behaviour based on ethical excellence are important. As a matter of course, we must meet all obligations placed on us by society. However, considering the rapid changes in today’s societal structures, situations that cannot be measured by existing laws and rules are increasing. Therefore, the key factor is the decisions and behaviour of the individual. Furthermore, we should serve as a role model for society by maintaining High Ethical Standards that function as the underpinning for all other actions.

Scientific ThinkingScientific Thinking is the key to proceed our work. Of course, inspiration and sensitivity are important, but it is necessary to understand things correctly with practical facts. We must not depend on individual perceptions or on decisions made in the absence of facts. Once we combine High Ethical Standards with sound, fact-based Scientific Thinking, our accomplishments will know no bounds.

ProfessionalismIn addition to achieving the combination of values mentioned above, we must strive to improve ourselves by continually expanding our individual knowledge with the aim of reaching the top of our respective fields. This desire toward self-improvement, which enhances our character and generates excellence, constitutes the basis of the shared value known as Professionalism. Being responsible for your results and taking them to the next step are factors embodied in Professionalism.

Team SpiritIn order to link individual abilities to achieve significant results, Team Spirit is essential. Everyone’s work is related to many factors. Clearly, there is a limit to the good results that any one person can achieve. Therefore, it is vital to remove all barriers that isolate one’s self from fellow team members, and contribute to and continually foster open communication. Moreover, results will be achieved much quicker when work is done as a team instead of on an individual basis. It is also very important to make a contribution to the team while participating in group activities as a willing, supportive player. Team Spirit will act as a competitive edge multiplier.

To maintain Team Spirit, it is important not to force one’s own values onto others, but rather to respect the values of other people, organisations, companies, regions, and countries.

Cultural DiversityFuji Xerox Group’s range of activities has spread globally. Our customers and markets are diverse, and the people with whom we work reflect that diversity. Within the Group, in order to utilise everyone’s full potential, respect for Cultural Diversity is vital. We must learn about the cultures with which we interact and gain inspiration from each other. We sincerely wish to contribute to the progress of society through attainment of these ideals.

Trust and ConsiderationTo respect cultural diversity, we have to Consider other people in our daily behaviour. Selfish attitudes will only do harm. To build Trust among co-workers, it is imperative that we do our best to encourage others, and to make their workplace environment comfortable and supportive.

Trust will improve the speed and quality of work, and will serve as the basis for value-added activities. Mutual trust and respect will contribute to a positive work environment that will activate and stimulate everyone.

In addition, it is important to build Trust in society. We must recognise that in addition to looking after our own welfare, it is vital to see to the well-being of all people in the society in which we conduct business.

Joy and FulfilmentThese values will contribute to obtaining the aims and goals stated in the Mission Statement. However, we should not focus only on accomplishments. In the process of achieving our goal, we must pursue Joy and Fulfilment, which are clearly the sources of lasting power. Each of us must find our own Joy and Fulfilment in life. Further, we must have the courage to overcome obstacles that stand in the way of attaining both. These will surely bring you positive change and extraordinary results.

Adventurous/Pioneer SpiritWe have dared to choose “The Road Not Taken,” and we consider it most vital to foster an Adventurous/Pioneer Spirit and to decisively challenge the unknown. This is truly the spirit of the Fuji Xerox Group. We would like to apply the Fuji Xerox spirit in all our endeavours, and contribute greatly not only to customer satisfaction but also to the growth and development of the world, ultimately fulfilling our Mission Statement.


THE FOUNDATION OF OUR VALUES: THE FUJI XEROX CODE OF CONDUCTCompliance is more than simply obeying laws; it is having a code of ethics and responding to the sound common sense or demands of society. Self-initiated, honest conduct, where rules are not followed simply because they are rules, fosters our own growth and leads to the ability to gain trust from society. A corporation is a group of individuals. Our thinking and behaviour create our character and form the character of our corporation. Our Code of Conduct is a set of standards that help to guide our thinking and behaviour.

The first part of our Code of Conduct sets out ethical behaviour guidelines to assist in putting our Shared Values into practice. These are action guidelines and a platform for self-discipline that position our 10 Shared Values as principles governing behaviour (page 17). They will help us achieve the goals set out in our company’s Mission Statement.

THE FUJI XEROX MISSION STATEMENT• Build an environment for the creation and effective

utilisation of knowledge• Contribute to the advancement of the global

community by continuously fostering mutual trust and enriching diverse cultures

• Achieve growth and fulfilment in both our professional and personal lives

The three points in Fuji Xerox’s Mission Statement show the future that we at Fuji Xerox are aiming for and the way we believe things should be. The first point conveys our business domains as a method of achieving such a future, while the second and third points express the aims of Fuji Xerox and the reason for its existence.

OUR CODE OF CONDUCTOur Code of Conduct is applicable to the entire FUJIFILM Group and is mandatory for all employees to agree to on accepting employment, and annually thereafter. It is a 14-page document, which goes into some detail on each element, and is also delivered as a training module annually for each employee. It is founded on four fundamental elements:

• Respect for Basic Human Rights• Open, Fair and Clear Corporate Activities• Protection/Preservation of Corporate Assets

and Information• Environmental Conservation and Protection


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ABOUT FUJI XEROX NEW ZEALANDEstablished in 1964, Fuji Xerox New Zealand Ltd began its journey providing New Zealanders with document solutions and services. Fifty years on, we now consider ourselves a Kiwi business that supports other Kiwi businesses.

With approximately 600 employees located at 17 service and branch locations and a Head Office in Auckland, we service every town and city in New Zealand from Cape Reinga down to Bluff. We value long-term relationships with our people and communities. We are proud of our sustainability initiatives, which are core to the work that we do, and the contribution we make to positively support environmental, educational, sporting and cultural initiatives across the country.

Our experienced, local team are committed to providing innovative solutions helping New Zealand businesses maximise efficiency and drive down costs. By providing scalable, cost effective printing and document management solutions, Fuji Xerox New Zealand helps New Zealand businesses to grow and transform. We partner with senior executives and business owners throughout New Zealand to help them find innovative and low-risk document and digital-print solutions that drive greater agility, visibility, sustainability and overall efficiency. Our commitment to meeting our clients’ needs and helping them overcome business challenges has seen us emerge as a clear market leader.**Based on financial information sourced from www.companiesoffice.govt.nz

OUR SUSTAINABILITY VISIONFuji Xerox New Zealand is committed to becoming a leader in sustainability innovation in our sector. We aim to do this not only by helping our customers achieve their own sustainability targets through the product and services we offer, but also through meeting our own internal targets and championing the circular economy.

OUR DEFINITION OF SUSTAINABLITYWe consider sustainability to be a balanced, long-term approach to economic activity, environmental responsibility, and social progress, guided by sound corporate governance.

OUR MISSIONTo help people discover better ways to carry out great work – by constantly leading in document technologies, products and services that improve our customers’ work processes and business results.

AucklandAlbany

Newmarket (Head Office)Mangere

Whangarei

Tauranga

Rotorua

Hamilton

New PlymouthNapier

Palmerston North

WellingtonNelson

Christchurch

Timaru

Dunedin

Queenstown

Invercargill

OUR LOCATIONS ACROSS NEW ZEALAND

Our branch locations

WE SERVICE EVERY TOWN AND CITY IN NEW ZEALAND FROM

CAPE REINGA TO BLUFF


OUR PRIMARY PRODUCTS AND SERVICES• Multi-function printing technologies and software• Production printing technologies and software• Information management software• Workflow software• Business process outsourcing services

CUSTOMER TYPES / SECTORSWe are primarily a Business-to-Business (B2B) company, serving customers from all different sectors of the economy, including large, medium and small corporates; governmental institutions, including local councils, schools and tertiary institutions; small and medium sized enterprises (SMEs); and the Graphic Arts market.

CHANGES TO OUR ORGANISATIONOver the past two years, we have made significant changes to our branches. In FY16, we moved our Queenstown and Whangarei branches into new and improved facilities. Our Head Office and Auckland warehousing facility were divided into two sites. Our warehouse, workshops and technology showrooms were moved to a facility closer to the airport to improve logistics routes and our Head Office was moved to an open plan Green Star 4 building in Newmarket, Auckland.

In FY17 we moved our Tauranga branch to a new facility and merged our warehouses with Mainfreight, which is discussed in further detail on page 45.

Revenue

FY16$182m

FY17$188m

With each move, refurbishment or security review, we have also implemented security system upgrades to ensure each branch is brought up to Information Security Management System ISO 27001.

SCALE OF ORGANISATION AND FINANCIAL PERFORMANCEPlease head to the Our People section of this report for employee numbers and demographics. Financial information for Fuji Xerox New Zealand, including revenue and profit figures, are held on public record at the Companies Office and can be downloaded from www.companiesoffice.govt.nz

The transformation of the Fuji Xerox New Zealand business in the last two years is starting to translate into our financial results. We continue to have positive operating cashflow and strong shareholder support.

GRAHAM FORDCHIEF FINANCIAL OFFICER


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We will treat and respect people as people

We will be proud of who we are and passionate about what we do

We will collaborate and embrace change positively

We will do right by our customers and stakeholders

OUR VALUES: THE FUJI XEROX NEW ZEALAND TEAM CHARTER In October 2016, Peter Thomas (then in the role of Chief Operating Officer), brought together approximately 50 managers from across the business to create a new Team Charter. Facilitated by the Centre for Vision and Leadership, this internal stakeholder group considered the challenges and opportunities the company faced in order to improve. The group also developed a Team Charter, which delves deeper into our core values at Fuji Xerox New Zealand, to be adopted across the whole country.

The resulting Team Charter was shared at workshops to give participants the opportunity to understand and create the positive behaviours that sit behind every statement. All departments and branches across the country received a Team Charter, which they signed and displayed to demonstrate their commitment our new culture and to the four principles outlined below.

With the foundations of our new Team Charter having been implemented in 2016, we are well placed to delve deeper into each of the elements that form the core values, and therefore our code of ethics, at Fuji Xerox New Zealand.

It is one of our priorities over the next financial year to get our team across the country to give input into what each of the elements in our Team Charter stands for. Doing so will help us to further embed our ethical

values and build a stronger, more resilient and cohesive workforce. In addition, it will help build a sense of ownership among our colleagues for the Team Charter, as something that has been co-created by each of us. We want to ensure that our colleagues across the country are included in our business transformation and that their diversity of thought is captured in how we define ourselves as the new Fuji Xerox.

I believe we can not just hang a Team Charter on the wall and do nothing. Everyone is responsible for reminding other employees to change their behaviour, but this has to be supported and led by managers.”

ANONYMOUSFUJI XEROX NEW ZEALAND EMPLOYEE SATISFACTION SURVEY, 2017


Good governance is at the core of any successful business. It is important for any organisation to drive initiatives and ensure legal and ethical controls are in place.

CORPORATE GOVERNANCE AT FUJI XEROX NEW ZEALANDThe overall strategic direction of Fuji Xerox New Zealand is agreed in conjunction with Fuji Xerox Asia-Pacific Pte Ltd as part of a medium-term planning cycle. The day-to-day running of the business is determined by an annual operating plan that is based on Fuji Xerox Asia-Pacific Pte Ltd guidelines and agreed prior to the commencement of each financial year.

A constitution and a communication matrix between Fuji Xerox Asia-Pacific Pte Ltd and Fuji Xerox New Zealand govern the respective powers of the board of directors and management.

GOVERNANCE

Marketing

Sales

Customer Service

Brand and Communications

Enterprise Solutions, Services and Consulting

Finance

Legal and Human Resources

Sales Operations

Divisions

FUJIFILM Holdings Corporations (75%)

Xerox Limited(25%)

Fuji Xerox Co.

Fuji Xerox Asia- Pacific Operations

Fuji Xerox New Zealand Board

Fuji Xerox New Zealand Senior Leadership Team

Fuji Xerox Finance Ltd

Fuji Xerox New Zealand Divisions

Fuji Xerox Audit Committee (see pg 23)

Risk and Audit Committee (see pg 27)

Investment Committee (see pg 27)

Deal and Governance Committee (see pg 27)

Sustainability Committee (see pg 27)


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Fuji Xerox New Zealand Board of Directors from left to right: Graham Ford, Takaya Mogaki, Nobuhiko Koshimizu, Mutsuki Tomono, Peter Thomas and Katsumi Kizaki

FUJI XEROX NEW ZEALAND BOARD OF DIRECTORSThe key role of the Board of Directors is to develop strategy, review company performance and financial results and provide management and guidance on the strategic direction and associated risks to the Fuji Xerox New Zealand Senior Leadership Team.

As part of the Independent Investigation Committee (IIC) report, it was identified that board governance required strengthening and increased control. It was also identified that there was a requirement to enhance the supervision by the Board of Directors and auditing by corporate auditors and the Internal Audit and Analysis Department.

A formal governance programme has been implemented, and all operating companies have quarterly board meetings scheduled, with review of business operations, financial results and all major discussions escalated through the appropriate communications matrix.

In addition, a role of Chairman has been established within Fuji Xerox New Zealand providing direct representation from the parent company and a communication channel with Japan regarding governance and business operations. The changes to the board governance requirements results in greater transparency and visibility across all operating companies.

Our Board of Directors comprises the following six members with a wide range of skills, and experience:

• Nobuhiko Koshimizu, Chairman, Fuji Xerox Australia and Fuji Xerox New Zealand

• Peter Thomas, Managing Director, Fuji Xerox New Zealand

• Graham Ford, Chief Financial Officer, Fuji Xerox New Zealand

• Takaya Mogaki, Senior Manager, Internal Audit• Mutsuki Tomono, Asia Pacific Operations President,

Fuji Xerox Asia-Pacific• Katsumi Kizaki, Senior General Manager, Legal,

Fuji Xerox Asia-Pacific

FUJI XEROX AUDIT COMMITTEEIn response to the IIC recommendation that there was a requirement to enhance the supervision by the Board of Directors and auditing by corporate auditors, our Board of Directors established a shareholder-led Audit Committee, which meets at least twice yearly to assist the Board in discharging its responsibilities with respect to financial reporting and compliance practices.

An audit committee has been established with reporting line directly into Fuji Xerox New Zealand Limited shareholder. The role of the Risk and Audit Committee is to assist and advise the governing body in meeting its responsibility and ownership of governance, risk management and internal control.

The purpose of the Audit Committee is to strengthen surveillance and supervision by the Board of Directors. The Audit Committee reports to the Fuji Xerox New Zealand Board of Directors and to the President of Fuji Xerox, our parent company.


OUR SENIOR LEADERSHIP TEAM (SLT)Accountable to the Managing Director, our SLT meets weekly to set, action and review our business strategies, ensuring that we are fully aligned with Fuji Xerox Asia-Pacific and our parent company in Japan. The SLT oversees that the Fuji Xerox Shared Values (page 17) as well as our local Team Charter values (page 21) are embedded into business practice. They also act as role models for employees within the business and work with each of their departments to lead and inspire their teams.

Building an inclusive and dynamic workplace starts at the top with a diverse leadership team.

November 2017 resulted in considerable changes to the Fuji Xerox New Zealand leadership team reflecting our commitment to diversity and bringing a wider pool of experience and unique perspectives to our management meetings.

Peter Thomas – Managing Director

As Managing Director and Company Director, Peter has responsibility for the overall performance of Fuji Xerox New Zealand. Peter’s key focus is developing and maintaining relationships with all our key stakeholders, including our staff, our customers, our suppliers and our shareholder to ensure short and long-term deliverables are met.

There is a considerable focus on creating a future vision and strategy for the company, coupled with a sharp risk-management framework to ensure

Fuji Xerox New Zealand is a long-term sustainable organisation that can continue to deliver value-adding innovative document management solutions to businesses large and small right across New Zealand.

Graham Ford – Chief Financial Officer

Graham is responsible for Finance, Business Planning and Audit, Risk and Compliance. He also oversees the Business Support Group (BSG) and is a Director of the company.

Danielle Everett – GM of Legal and Human Resources

Danielle is responsible for Legal, HR, Facilities, Quality, Sustainability, Ethics and Risk and Compliance. Her comprehensive portfolio represents a range of high-value support functions within the business.

Danielle is responsible for ensuring company-wide governance and compliance to legislation and regulation, including compliance to the Fuji Xerox New Zealand Code of Business Ethics. In addition, she holds the position as Board Secretary for Fuji Xerox New Zealand.

Bevan McDonald – GM of Customer Service

Bevan is responsible for leading the company’s technical and logistics teams. His mandate is ensuring excellence in every aspect of customer service delivery.

Steve Caunce – GM of Brand and Communications

Steve is responsible for Corporate Reputation Management and all External and Internal Communications. He also works closely with the Managing Director to ensure stakeholder goals are met.

Cameron Mount – GM of Enterprise Consulting

Cameron is responsible for leading a nationwide team of strategic consultants and analysts that specialise in helping organisations identify the best path to take in their digital transformation journey and eliminate outdated work practices. They support organisations in implementing better processes and realise better business through the optimisation of their document and data processes. This improves employee productivity and process visibility and allows greater control of operational costs.

Cassandra Powell – GM of Marketing

Cassandra is responsible for leading the company’s marketing strategy and ensuring the profitability and growth targets for a broad range of product offerings are met.

Richard Baber – GM of Sales

Richard is responsible for the full sales organisation and managing client relationships across the company’s product, solution and service offerings.

Ruth Constantine – GM of Sales Operations

Ruth is responsible for delivering an effective start-to-end sales fulfilment process.


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Our Senior Leadership Team from left to right: Steve Caunce, Cassandra Powell, Cameron Mount, Ruth Constantine, Bevan McDonald, Danielle Everett, Richard Baber, Peter Thomas, Graham Ford.

Looking forward to seeing the new Senior Leadership Team in action and the change management activities they will implement to turn the company around. I already feel like the culture has had a positive shift.

ANONYMOUSFUJI XEROX NEW ZEALAND,EMPLOYEE SATISFACTION SURVEY, 2017


OUR APPROACH TO RISK MANAGEMENTFuji Xerox New Zealand assesses risk on many levels, using impact and likelihood to determine the level. Existing risk treatment and reassessment is implemented with final residual risk for management to

approve or reject. Risk management and governance is now, more than ever, absolutely critical to our business.

Risk is assessed on a company level from the perspective of a business, compliance, quality, business partner, information security, personal information, asset management, human resources, public relations,

accounting/finance, politics/economy, social, environment and natural disaster/accident/pandemic.

Risk assessment forms part of our ISO certified Health and Safety, Sustainability and Information Security management systems. Risk is also assessed as part of our project management framework.

RISK AND COMPLIANCE

* Japan’s Financial Instruments and Exchange Law, considered the Japanese version of Sarbanes-Oxley Act of 2002^ Anti-Money Laundering and Countering Financing of Terrorism Act 2009

Audit and Risk Areas of Focus

Risk Management and Compliance• Business continuity management• Product quality management• Sustainability management• Privacy management

Internal Audit and Assurance• Internal Audit plan• Charter, authority and resources• Outstanding items for Internal Audit• J-Sox* internal control activities• APO self-assessment audits• Co-ordination with external auditors

and parent company auditors

Regulatory Compliance• Fraud / legal risks• Health and safety• Environmental management • Privacy management• AML/CFT^

Governance and Ethical Matters• Regional policy compliance• Code of conduct and ethics• Crisis escalation• HR issues• Litigation reporting• Business risks extracts


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The Committee meets regularly to review sales transactions and is responsible for reviewing contracts to ensure they meet corporate, legal, social and ethical responsibilities. Deal governance remains an ongoing area of vigilance for us, and our goal is to do right by our customers and our stakeholders, as specified in our Team Charter (page 21).

INVESTMENT COMMITTEEFuji Xerox New Zealand’s Investment Committee is authorised by the Managing Director to approve investment decisions within the Managing Director’s delegated Financial Authority. The committee reviews investment decisions above its level of authority and recommends approval to the Asia-Pacific Operations President.

RISK AND AUDIT COMMITTEEAudit and Risk Committee is headed by the Managing Director and meets monthly to review and report on operational and strategic risks to the business.

The Risk and Audit committee agrees the schedule of all internal audits, and ensures that governance rules are adhered to across the organisation.

With a strong focus on risk and compliance, a new team has recently been created to manage risk and compliance to legislation and regulation relating to:

KEY COMMITTEESOur Code of Conduct, together with associated policies and procedures (including our Business Ethics Policy), provide guidance on how to apply our values in our work. Together, these promote a corporate culture based on high standards of ethical behaviour that allow us to prevent any inappropriate practice from happening again, particularly in relation to accounting issues. We all have a responsibility to uphold the company direction in regard to these matters, and it is up to each of us to ensure we act accordingly.Across Fuji Xerox New Zealand, several governance committees have been introduced to oversee internal controls and ensure the company direction is met.The following committees report to our Senior Leadership Team:• Deal Governance Committee• Investment Committee• Risk and Audit Committee• Sustainability Committee

DEAL GOVERNANCE COMMITTEEOver the past two years, tighter controls and more active governance over our deals have been established.

All sales contracts must now be approved by the Deal Governance Committee comprising the Chief Financial Officer, the Manager for Deal Governance, the GM of Sales, the GM of Customer Service, the National Credit Manager, GM Legal & HR (who oversees Ethics), and various other heads of departments.

• Financial reporting for Japanese Stock Exchange across the organisation.

• Information security and anti-money laundering• Health and safety• Sustainability, ethics and circular economy

This team reports to the General Manager of Legal & Human Resources.

SUSTAINABILITY COMMITTEE Our Sustainability Committee, comprised of operational Heads of Department, was convened in FY17 to oversee the implementation of our Sustainability Management System (SMS) including the roll-out of environmental, social, economic, governance and ethics key performance indicators across the business.

Our deal governance process ensures that when we propose solutions, they not only adhere to all the appropriate accounting and regulatory standards, but they provide the best products, solutions and support for our customers. The customers always remain the number one focus, and the process ensures our sales team engage in a fair, open and transparent way.

RICHARD BABER GM SALES FUJI XEROX NEW ZEALAND


SUSTAINABILITY RISK MANAGEMENTFuji Xerox New Zealand’s sustainability team works across the business to drive our sustainability strategy and to ensure compliance to our Sustainability Management System (SMS), as well as commitment to ethical business practices that will lead to an improved culture.

In FY17 we transitioned our ISO 14001:2004 Environmental Management System to

ISO 14001:2015 and simultaneously expanded its scope to a full SMS including social, environmental and governance issues.

Our SMS enables us to manage the risks and opportunities associated with our environmental impacts and also those of our economic, social and governance impacts. It also allows us to monitor and measure objectives and targets supported by our branch-level Sustainability Action Plans.

Our SMS meets the specifications of British Standard 8900:2013 for sustainable development and is aligned with International Standards ISO 31000:2018 for risk management, ISO 20400:2017 for Sustainable Procurement and the UK Government Flexible Framework for sustainable procurement.

The SMS also provides the management approach for material topics identified as part of our Sustainability Framework, including the five most highly rated material topics: Ethics, Product Stewardship, Carbon and Energy, Technology and Innovation, and Customer Satisfaction.

OUR SUSTAINABILITY STRATEGY Our sustainability strategy forms the building blocks of our SMS. Its purpose is to promote and implement sustainability within every aspect of our business. We achieve this through the following tools that make up our SMS, which promotes the education of sustainable development and contributes to the 4th United Nations Sustainable Development Goal (SDG), Quality Education.

The building blocks of our sustainability strategy (page 29) are the: Sustainability Policy, the Being A Better Business Document, the 19 x 19 Company-wide Objectives & Targets, the SMS Tool and Management Plans, that support the tool which are then translated through our Branch Sustainability Action Plans.

LikelihoodImpact

Establish Goals and Context

Identify Risks

Analyse Risks

Estimate Risk Level

Evaluate the Risks

Treat the Risks

STAKEHOLDER CONSULTATION/

COMMUNICATION

MONITOR / REVIEW

29

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ESSTHE BUILDING BLOCKS OF OUR SUSTAINABILITY STRATEGY

FROM “FOUNDATION” TO “EMBED AND ENGAGE”

Fuji Xerox New Zealand Sustainability Management System (SMS)

Fuji Xerox (Parent Company) Mission Statement To provide direction and inspiration Internal and External

Fuji Xerox (Parent Company) Shared Values To ensure all operating companies share FX values Primarily internal

Fuji Xerox New Zealand Team Charter To create a better company culture Primarily internal

Fuji Xerox and Fujifilm Ethics and Compliance Policies To embed ethical practices across all aspects of our business Internal

Sustainability PolicyOur corporate commitment to managing our social, environmental,

economic and governance risks and opportunities Our corporate commitment and basis for compliance Internal and External

Being A Better Business Document30 commitments based on our Sustainability Policy

and the business case for sustainability

Vision (to lead in sustainability innovation) and Sustainability Policy Statement Internal

19 x 19 Company-wide Objectives and Targets19 overarching targets to be achieved by FY19. Each target is owned

by a member of the Senior Leadership Team

To improve our sustainability performance, particularly in the areas of most importance to our stakeholders

Internal and External (GRI Reporting)

Management Plans (Ethics; Circular Economy; Sustainable Procurement; Carbon and Energy;

Green Travel; Resource Management; Comms, Engagement

To engage and empower owners of Key Performance IndicatorsTo ensure overarching objectives are met

To provide management approach for GRI alongside SMS ToolInternal

Sustainability Management System (SMS) Tool285 social, environmental, economic and governance

KPIs for individuals and every department

To measure and manage performance through KPIsTo ensure Management Plans are met

To provide management approach for GRI alongside Management PlansInternal

Sustainability Action Plans (SAPs)Sustainability KPIs for every branch owned by Branch Managers

and Sustainability Champions

To ensure our branch risks and opportunities are managed and our company-wide targets are met Internal

GRI Reporting Full report every two years, with annual updates on material topics and overarching objectives and targets Internal and External

IMPORTANCE TO FUJI XEROX NZ AUDIENCEELEMENT


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Ethical practice is important to any business, but for us at Fuji Xerox New Zealand, it’s simply vital. We know we have to work hard to rebuild our customers’ and the community’s trust in our company and brand. Our stakeholders have told us that ethics is a topic we need to address as our top priority. The Fuji Xerox Shared Values (page 17) together with our newly established Team Charter (page 21) help to guide ethical practice within our organisation.

We recognise that inadequate internal controls was the root-cause that enabled inappropriate accounting practices to take place prior to FY16. We accept full responsibility for the shortcomings that led to this and apologise unreservedly to all who were affected. We hope to demonstrate in this report that we have put in place steps that will ensure such inappropriate accounting will not happen again in the future.

ETHICSWith the support of our people, our customers and organisations such as the Institute of Business Ethics, we aim to be a business that New Zealand companies can be proud to be associated with.

We are proud of our 50 plus years of heritage in New Zealand and are absolutely committed to turning our business around, ethically and financially. The next few pages of this section focuses on what happened and the actions we have taken.

For more information on how this matter has been managed from a governance point of view. See our parent company Fuji Xerox 2017 Sustainability Report: Top Commitment pages 3-8. www.fujixerox.com/eng/company/csr/ sr2017/booklet.html

For us at Fuji Xerox New Zealand, ethics is linked to these United Nations Sustainable Development GoalsPlease refer to page 131 for more detail on how we are contributing to each goal.


ADDRESSING OUR RECENT PASTIt is important that we address head-on the events of the last two years for our stakeholders. Please see below a review of the inappropriate accounting practices and our response and subsequent remediation activities we have put in place.

Inappropriate Accounting Practices

In March 2017, an internal group investigation was initiated in relation to potentially inappropriate accounting practices within Fuji Xerox New Zealand. Immediately, a number of remediation activities regarding compliance, accounting and policies were introduced, including (in April 2017) the appointment of an Independent Investigation Committee (IIC) to carry out a thorough investigation using the resources of a global consultancy firm.

In June 2017, FUJIFILM Holdings published the investigation report from the IIC on the Tokyo Stock Exchange. The report identified the following:

(a) inappropriate accounting practices had occurred at Fuji Xerox New Zealand Limited and Fuji Xerox Australia;

(b) requirement for Fuji Xerox globally to put internal systems in place to correct the centralisation of operational reporting lines; and

(c) increased governance and additional transparency in business management practices was necessary.

Remediation Activities

Since early 2017, our shareholders and Fuji Xerox New Zealand have implemented a significant number of measures to prevent similar issues from recurring.

Some of these remediation activities include:

• Comprehensive audit and remediation of all financial accounting practices;

• Review of all incentives, remunerations and commissions structure to ensure the correct behaviours are managed;

• Global restructure of the finance leasing business, integration of Fuji Xerox’s management control units with those of FUJIFILM Holdings;

• Independent assurance review by Tenzing (an independent management and technology consultant company) of our sales process, including deal governance, internal controls, KPIs, targets and incentives;

• Appointment of a Chairman of the Board to strengthen governance and act as a close bridge between Fuji Xerox New Zealand and its parent company and shareholder;

• Complete review and refresh of the senior leadership to align with our operational changes;

• Establishment of a Risk and Audit Committee; and• A relaunch of our whistleblowing programmes to

ensure employees feel able to “speak up”.

For Fuji Xerox New Zealand, it has resulted in a complete rebuild of our organisation – ethics and Code of Conduct now forms a key pillar of our training portfolio. A core element of the new beginning at Fuji Xerox New Zealand (“the New Fuji Xerox”) was the co-creation of a Team Charter, which is a set of behaviours and guiding principles that outlines the type of company we want to be. It is now clear the behaviours expected from our employees,

and management encourages clear, transparent communication across the business.

This has been a challenging task but has been embraced by our resilient team of employees, who understand the road to recovery.

Civil Litigation

Fuji Xerox New Zealand and our shareholder commenced legal proceedings against three former senior executives of Fuji Xerox New Zealand Limited on 8 September 2017 in the High Court of New Zealand. The civil litigation is underway, with the defendants having filed their formal statements of defence in November 2017. Because of the complexity of the case, a number of steps need to be completed before a trial will be heard, including the disclosure of all relevant documents, contested procedural applications and preparation of witness statements.

DANIELLE EVERETTGM LEGAL AND HR FUJI XEROX NEW ZEALAND

A business can have innovative products, services and technology; however, with questionable ethics, this might not matter. It is important to lead by example. Good ethics in business starts with management.


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Recognising past issues and speaking openly about them is the first important step to drive change within an organisation. Fuji Xerox NZ has shown a strong commitment to improve its ethical performance and embed ethical business practices across the business. They demonstrate commitment to change their corporate culture and behaviour by taking practical measures that can help each employee to understand the importance of doing the right thing and living up to the organisation’s core values. Ethics training is a critical building block to achieve this. In collaboration with the IBE, training sessions and workshops have been developed and will be delivered in FY18.

Another important element is engaging with employees to understand whether the measures in place are effective. To help understand this, an employee survey will be carried out to evaluate Fuji Xerox NZ employees’ views of ethics in the workplace. To oversee this and other initiatives, Fuji Xerox NZ has created a specific position to look after ethics which has access to senior leadership, demonstrating that ethics is a priority at Fuji Xerox NZ. The IBE recommends that Fuji Xerox NZ maintains the momentum generated, using the GRI report to track the improvements in their ethical culture.

STATEMENT FROM THE INSTITUTE OF BUSINESS ETHICS APRIL 2018


April 2017 Independent Investigation Committee (IIC) established.

June 2017FUJIFILM Holdings Corporation published the Independent Investigation Committee (IIC) report that outlined findings and recommendations related to accounting irregularities across Fuji Xerox New Zealand and Fuji Xerox Australia.

• Serious Fraud Office (SFO) indicate they would undertake a review following the publication of the IIC report.

This report can be downloaded from: www.fujifilmholdings.com/en/pdf/investors/finance/materials/ff_irdata_investigation_001e.pdf

July 2017Fuji Xerox New Zealand initiated a voluntary suspension from all new sales and marketing activities associated with the provision of services to eligible New Zealand government agencies under Print Technology and Associated Services (PTAS), Print Devices and Print Device Management Services and Office Supplies contracts. This suspension was agreed by Fuji Xerox New Zealand to allow the Ministry of Business, Innovation, and Employment (MBIE) time to understand the implications of the final translated IIC report published by FUJIFILM Holdings.

September 2017

• Fuji Xerox New Zealand Ltd, Fuji Xerox Finance Ltd and their regional headquarters, Fuji Xerox Asia-Pacific Pte Ltd filed civil proceedings in the High Court at Auckland against former senior executives of Fuji Xerox New Zealand. The proceedings follow investigations into the financial position of Fuji Xerox New Zealand, which identified inappropriate accounting treatment of its revenue and net profit position over an extended period of time.

• Our Performance Management Framework was launched to ensure all employees had clarity in regards to the expectations of their roles, and an understanding of how their performance impacts their team and aligns with company objectives and success.

• FUJIFILM Holdings rolled out compliance training to all Senior Leadership Team members.

CHANGING OUR CULTURE: 2017 – A YEAR OF CHANGE

October 2017 • Peter Thomas named as Managing Director and Haruhiko Imai takes on new role of Chairman of Fuji Xerox

New Zealand (October 2017 - June 2018). In one of his first actions as Managing Director, Peter Thomas ensured that ethics training was rolled out for the newly established Senior Leadership Team, Board and all Fuji Xerox New Zealand staff.

• All Fuji Xerox New Zealand employees viewed FUJIFILM Holdings compliance training film, which included a statement on ethics and integrity by FUJIFILM Holdings President and Chief Operating Officer Kenji Sukeno.

• Compulsory Code of Conduct training was rolled out by Fuji Xerox to all affiliated companies, including Fuji Xerox New Zealand. All employees are trained.

• Fuji Xerox New Zealand established a roadmap of corporate changes to build internal capability, establish appropriate performance management, governance and risk management to eliminate issues identified and realign our internal culture.

• Fuji Xerox Co. Ltd. undertakes an audit of management and governance activities within Fuji Xerox New Zealand Limited.

• MBIE made the decision to formally suspend Fuji Xerox New Zealand from the Print Technology and Associated Service (PTAS) All-of-Government contract.

• SFO reopens an investigation relating to Fuji Xerox. Fuji Xerox New Zealand is cooperating fully with enquiries.


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November 2017• All sales staff asked to sign an ethics statement, positively assuring their understanding

and commitment to ethical behaviour, to our company Code of Conduct and to our Business Ethics Policies. This is now part of an ongoing programme for all staff and is managed by a dedicated Human Resources Business Partner, Learning and Development.

• Engaged external remuneration consultant to benchmark all company salaries against independent salary survey aligned with industry. Implemented regional job grading, remuneration policies and actively communicated remuneration strategy to all employees.

• An organisation wide employee satisfaction survey is conducted.

December 2017• Fuji Xerox New Zealand joined the Institute of Business Ethics (IBE) to help develop an ethics

programme. We envisage the IBE will support us on this journey by sharing best practices, which we aspire to achieve, and by helping us develop a comprehensive ethics programme.

• FUJIFILM Holdings conducts a mandatory company-wide compliance survey to ensure compliance awareness in each organisation.

• Fujifilm Holdings implements a confidential whistleblowing hotline for all employees.

AnnualReview of Fuji Xerox New Zealand Business Ethics Policy by all employees. Our Business Ethics Policy sets our expectation that all employees meet high standards of ethics, integrity and behaviour.

March 2018All Fuji Xerox New Zealand employees are benchmarked against an independent salary survey.

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CHANGING OUR CULTUREThe Institute of Business Ethics (IBE), which we joined in December 2017, believes that ethical leadership is not just about doing ethical things, it is about doing things ethically. This means applying our ethical values in our jobs every day, everywhere we operate.

We confirm our commitment to the Fuji Xerox policy for ethics and compliance, which provides guidance to all employees on how to apply our company’s ethical values. Supported by our Senior Leadership Team’s strong resolve, we have been working on enhancing this framework to ensure the policy is firmly reflected in the actions of each and every one of our officers and employees. This will ensure we:

• Are able to make good decisions when we face an ethical dilemma and we are not involved in any action that is questionable from an ethics and compliance perspective

• Speak up openly about any violations, deviation from the norm or errors with no fear of retaliation and promptly take preventive and corrective actions.

To achieve this, Fuji Xerox is committed to:

• Clearly define the roles, responsibilities, authorities and the information route within the organisation for ethics and compliance management

• Respond promptly and appropriately to any concerns raised about ethics, acting to address the issues

• Provide appropriate and continuous training to all executives and employees and carry out evaluations of the programme on a regular basis

• Carry out appropriate self-audits of the organisation annually based on the company’s management policy and guidelines

• Allocate adequate staff and budget to ensure that ethics and compliance-related activities are being carried out as a priority management issue

SPEAKING UPTo ensure that our values are embedded in practice, we all have the responsibility to raise concerns about inappropriate behaviour that we become aware of and ask questions when we are not sure of the right course of action to take.

The culture that the Senior Leadership Team is trying to build at Fuji Xerox New Zealand is one of openness and transparency. If any of us observes inappropriate behaviour, we are strongly encouraged to raise any issues through our management chain or Human Resources, or by utilising one of the speaking-up services offered by FUJIFILM or Deloitte, as detailed below.

“Speaking up” is available to all employees to raise their concerns about ethics. Globally FUJIFILM Holdings has implemented a confidential whistleblowing helpline for all employees to ensure there is a forum to speak up about issues that concern them. Everyone who works for the FUJIFILM group of companies can use this route to raise concerns about potentially unethical, unlawful or unsafe conduct or practices involving the company. This is a completely confidential service, and is managed directly and independently by FUJIFILM Holdings.

Fuji Xerox Asia-Pacific has a speaking up system, which enables any content to be automatically reported to the Human Resources General Manager however, the system is run independently at each subsidiary. At Fuji Xerox New Zealand, our local, confidential speaking-up service is maintained independently by Deloitte.

Both the Deloitte and FUJIFILM Holdings services respectively, allow for anonymous reporting and are actively promoted by Fuji Xerox New Zealand as part of our resolve to change the culture and encourage the practice of “Speaking Up” in our workplace.


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OBJECTIVE TARGET

Ethics

100% of all Fuji Xerox New Zealand employees to undertake compliance and ethics training p.a.

Embed ethical business practice into every aspect of our business

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With the Institute of Business Ethics, develop and implement a business a ethics programme for the Senior Leadership Team and employees2

Ensure independent verification of our ethical performance Undertake an Institute of Business Ethics “Ethics at Work” survey3

MATERIAL TOPIC

[An ethical culture] needs 100% focus so that we change for the better and place business ethics at the absolute forefront of every business decision we make.


19 TARGETS

19x19To be achieved

by FY19

REBUILDING AN ETHICAL CULTURECompliance is a key focus of our organisation. We have been working hard on rebuilding an improved ethical culture in our workplace, which has been supported by the reinforcement of our Business Ethics Policy, ethics training and endorsement from senior management. Our ethics training aligns with the Fuji Xerox Code of Conduct and direction from Fujifilm Corporation. We have established the three targets below to be completed by 2019 to support the rebuild of our new culture.


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ESSCOMMUNICATION AND TRAINING

ABOUT ANTI-CORRUPTION POLICIES AND PROCEDURESIn both FY16 and FY17, all of our governance body members (including our Senior Leadership Team) have reviewed our organisation’s anti-corruption (ethics) policies and procedures, and have completed relevant training on the following:

• Anti-fraud• Ethics and social media use • Code of Conduct• Business ethics• Fuji Xerox Code of Conduct• FUJIFILM compliance training• FUJIFILM ethics and integrity.

In addition, these policies have been communicated to all Fuji Xerox New Zealand staff in both years of the reporting period. In FY17, specific training modules were delivered to all staff, which were mandatory to complete, including:

• Code of Conduct training• Business ethics training• Anti-fraud training.

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Children of some of our employees at Fuji Xerox New Zealand with their pictures of a circular economy.

Photo credit from film: Recycling used equipment is a piece of cake! – www.youtube.com/watch?v=nkCadmiibjU


Over the last 12 months Fuji Xerox New Zealand has made significant change to their organisation structure, roles and responsibilities and staff numbers. Focus and investment has been spent on developing a new culture and capability across all of Fuji Xerox New Zealand through significant investment in internal training; revised performance management framework, the establishment of core values through signed charters in every office; and a significant re-branding exercise. There is zero tolerance for behaviour that does not align with the values or objectives. The combined effect of these initiatives has been to clarify performance expectations and expected behaviour and re-enforce this through fit for purpose reward structures and/or punitive behaviour.

As part of the rebuild of the organisation and of the remediation plan, Fuji Xerox New Zealand has undertaken the following initiatives:

• Organisation restructure and downsizing – in 2016, in response to the findings, Fuji Xerox New Zealand undertook a significant restructure of the wider organisation and in particular the sales function

• Internal training – Fuji Xerox New Zealand has leveraged the global group resources to develop and roll out a programme of internal training which focuses on compliance (Code of Conduct, Ethics and Social Media, Anti-Fraud, Health and Safety, Social Media) as well as Leadership development

• Team Charter – Every department and branch has committed, through a signed charter visible in all offices, to a set of behavioural values

• Rebranding: in late 2017• Addressing of non-performance

THE TENZING REPORTTo ensure ethical business practice as expressed in our Team Charter, Fuji Xerox New Zealand commissioned independent consultancy, Tenzing to undertake a sales assurance review of the sales function of our business. This review was undertaken by Tenzing during December 2017 – February 2018 to identify whether the working approach of the sales function is “open, transparent, ethical and honest”. The report was made available in March 2018.

While we acknowledge there is always a requirement for continuous improvement across an organisation, we were pleased with the findings of the report, which largely demonstrated a cultural shift in our workplace over the past few years. Please see redacted excerpts of the Tenzing report below.

Outcomes achieved

• 2017 employee satisfaction survey for FY17 showed a 10% increase on 2016 results in both Employee Engagement and Employee Enablement – both close to regional averages

• Average of 97% completion rate across all compliance training across all employees

• Leadership development programme delivered to over 10% of employees

• A positive but measured behaviour change across all sales staff interviewed due to the effort that has gone into changing the internal morale and culture


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Fuji Xerox New Zealand has placed significant emphasis on establishing sound practices and controls to ensure compliance with Government ‘PTAS’ (Print Technology and Associated Service Contract) requirements and to drive improved, sustainable profitability in all contract renewals and new deals. The limitations enforced on Fuji Xerox New Zealand due to the suspension from PTAS are well understood by all staff as are the new practices and associated governance. Key process controls have been built into Fuji Xerox New Zealand’s underlying systems to ensure compliance with policy. Importantly Fuji Xerox New Zealand’s own internal audit process is effective in assuring compliance to policies and identifying and driving process improvements – evidenced by all issues raised in the July 2017 report having been actioned.

Major initiatives:

• Augmentation of Deal Governance and associated internal policies

• Restructure of sales organisation, appointment of new sales leadership roles – including GM Sales and Public Sector lead

• Increased regional oversight, with the Fuji Xerox New Zealand Chief Financial Officer now reporting directly to regional Fuji Xerox chair

• Addressing of non-performance

Outcomes achieved

• All contracts have returned to sustainable profitability levels upon renewal with selected contracts/deals being declined due to their unsustainable profitability

• Rigorous control of relationships and sales/contract renewals to All of Government eligible agencies

• Customers’ “acceptable credit limits” are being enforced to ensure no significant exposure to any customers

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THE FUJI XEROX APPROACH TO PROCUREMENT – ENSURING RESPONSIBLE PARTNERSHIPSSince 2007, Fuji Xerox has been working with approximately 300 suppliers to address sustainability in their respective supply chains. This has involved developing a robust set of standards based on the United Nations Global Compact and the Responsible Business Alliance (RBA) Code of Conduct.

Complementing these standards is a detailed checklist our suppliers need to complete that includes around 300 items across environmental, human rights, labour and business ethics areas. The results are incorporated into a plan-do-check-act framework to ensure continuous improvement to promote appropriate and transparent business management in these following areas.

Our programme extends from our manufacturing supply chain to our logistics providers.

Examples of what this has meant in real terms include:

• Supporting the United Nations Global Compact: Fuji Xerox became a signatory to the Compact in 2002. We view the 10 principles of the Compact as fundamental to our own CSR values, and we applied these principles to our company’s Employee Code of Conduct in 2007. We also present the principles to our suppliers as a key requirement for ethical procurement.

• Improving sustainable outcomes with suppliers: The key focus of Fuji Xerox’s ethical procurement programme is on helping our business partners and suppliers adopt better management disciplines by offering practical advice around improving human resource practices and minimising environmental impacts.

• Ethical sourcing of raw materials: We have a global policy to avoid, directly or indirectly, being involved with conflict or abuse of human rights across our entire supply chain. Since 2012, we have been working to establish our position on conflict minerals in our procurement policy. All upstream suppliers are required to report on raw materials sourcing to abide by our stipulations for these to be obtained from conflict-free zones. This is in accordance with the Responsible Business Alliance (RBA).

• Carbon reporting and mitigation: At Fuji Xerox New Zealand, we will be undertaking a benchmark study with our suppliers to establish a carbon footprint of the activities related to the transportation of our products. Once established, we are committed to working with them to find ways together to reduce their footprint.

For more information about Fuji Xerox procurement practices please go to: www.fujixerox.com/eng/company/csr/sr2018/suppliers/theme.html#anc01

THE FUJI XEROX SUPPLY CHAIN


THE FUJI XEROX NEW ZEALAND SUPPLY CHAINFuji Xerox New Zealand organises its supply chain around equipment, consumables and spare parts. The international component varies by product and whether freight is the responsibility of the sender or Fuji Xerox New Zealand.

Fuji Xerox New Zealand’s domestic warehouses are in Auckland, Wellington and Christchurch with on-forwarding to provincial branches. We spend approximately $15m per year on our local supply chain, depending on volumes. Staff working in our logistics team are inventory and logistics planners. Our manual handling and transport operations are managed by our lead logistics provider, Mainfreight. The supply chain in New Zealand has a moderate labour content compared with other operating companies in the Asia-Pacific region, especially as most equipment requires two-person deliveries. The international component has a low labour content with containerisation.

In FY17 we undertook a complete supply chain review to ensure compliance and governance with both local law and regional Fuji Xerox policy. In doing so, we further improved our inventory and strict controls around the ordering and management of our inventories, segregation of duties and transparency of profit and loss. As a result, we reduced our inventory due to the clear-out of excess second-hand inventory. We now also hold less excess stock because of improved forecasting and planning, equating to a 26% reduction in inventory.

Changing our Supply Chain: Direct from Manufacturer

In FY17, our shipping routes were revised to ensure all products were shipped directly to New Zealand for assembly and subsequent delivery to our customers. Previously, all products were imported from Fuji Xerox factories in China and Japan, and routed to Australia for assembly; however, this adjustment to our supply chain has resulted in reduced costs, shipping times and increased employment and skills opportunities within our local workshops.

Overall this transition has meant a cost savings of close to $500,000 in the FY17 year.

Bringing the machine assembly operation to New Zealand has been of great benefit on many fronts. It has reduced our costs, created employment opportunities in our Workshop Cadetship Programme, reduced the lead time to our customers, and likely reduced our carbon footprint.

DAVID WILLIAMS SUPPLY CHAIN MANAGER, FUJI XEROX NEW ZEALAND


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ESSPARTNERING TO DRIVE EFFICIENCIES

IN OUR SUPPLY CHAINIn 2016, we undertook a tender process to reduce our number of logistics partners from eight to one. Mainfreight Group was appointed as our lead logistics provider for warehousing, local delivery and international freight. Mainfreight were selected based on the technological advancements they could contribute to our supply chain, the financial savings and their alignment with our values.

Mainfreight is a global supply chain provider with branches throughout New Zealand, Australia, Asia, the Americas and Europe. As a result of Mainfreight group’s integrated systems across different logistics streams (warehousing, local delivery and international freight), we have gained efficiencies across our supply chain as we now have a sole supplier managing our end-to-end logistics process.

Mainfreight also manage our warehouses across New Zealand, this includes the Fuji Xerox New Zealand leased building in Mangere, Auckland.In Wellington, we have exited two leased buildings which have now been consolidated into a Mainfreight operated facility; we have also exited our site in Christchurch and are now operating out of a Mainfreight warehouse there. As a result, integrating our operations with Mainfreight has led to efficiencies and a reduction in our footprint.

Overall the transition has been a learning experience for both Mainfreight and Fuji Xerox New Zealand with particular regard to the local equipment deliveries due to the weight, size and service expectations of Fuji Xerox New Zealand. This has been a unique service model that the Group have had to accommodate. We are continually focused on working with Mainfreight to drive improvements in this area to ensure improved efficiencies and customer satisfaction.

When we are moving forward together, then success takes care of itself. With Fuji Xerox and Mainfreight, success and determination are partners.

SHAILESH BHUTHADIAMAINFREIGHT NEW ZEALAND, LTD.


Fuji Xerox New Zealand is part of Fuji Xerox, with the Xerox Corporation representing the world’s largest document management technology and services group, developing and marketing innovative technologies, products and solutions that organisations can depend on.

We have an extensive range of offerings – from printers and office multifunction devices through to high volume colour production systems, document management solutions, robotics process automation solutions, accounts payable automation, intelligent forms and more.

We support our customers every step of the way whether they want to transform their print environment, embrace digital transformation, optimise their business processes or just work more effectivelyand sustainably.

TECHNOLOGY AND INNOVATION

For a snapshot into some of our offerings, please go to the following:

Fuji Xerox New Zealand local success stories www.fujixerox.co.nz/en/Company/Success-Stories

Fuji Xerox: Innovating communications https://youtu.be/gfPQltuMMmc

Fuji Xerox Enterprise Consulting Better Business Thought Leadership blog www.betterbusiness.fujixerox.co.nz

For us at Fuji Xerox New Zealand, technology and innovation is linked to these United Nations Sustainable Development Goals:Please refer to page 131 for more detail on how we are contributing to each goal.

Fuji Xerox is the world’s longest running joint venture between a Japanese and an American company, and one of our inventions includes the world’s first multifunction printer/copier launched in 1987. Innovation is in our corporate DNA. Our focus remains on bringing the best technologies and services to change and improve the way our customers communicate.

CASSANDRA POWELLGM MARKETING, FUJI XEROX NEW ZEALAND


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OUR TECHNOLOGIES

Office Products Solutions

- Office efficiency software- Multifunction Devices (MFDs)

- Cost-tracking solutions- Mobile document and e-forms solutions

- Cloud connectors to document management solutions

- Mobile print service

Production Services and Graphic Arts

Providing workflow solutions in the commercial printing segment focusing on graphic communications

– from creating content to processing and delivery

- Digital production presses and printers- Label printers

- Pre-press workflow automation solutions and services- Colour management solutions and services- Document workflow automation solutions

and services- 1:1 marketing solutions

Office PrintersNetwork desktop printers (Mono / Colour)

Multifunction desktop printers


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OUR SOLUTIONS AND SERVICESIn addition to our industry-leading multifunction devices (MFDs)

and production print (graphic arts), our innovative technology solutions enable us to work in partnership with our customers on

their digital transformation journeys.

Managed Services Our Managed Services division provides the people on the

ground to run customers, onsite facilities – mailroom, digital print-room and support functions. Fuji Xerox can provide

print procurement and support the creative graphic design functions for an enterprise and ultimately deliver to a

customer’s multi-channel communication strategy.

Enterprise SolutionsThrough a dedicated team of consultants and analysts,

we identify the best path to take in transforming outdated work practices to improve employee

productivity, achieve process visibility compliance and consequently reduce operational costs.

Our team are experienced in: content management, electronic workflow automation, robotic process

automation, cloud technologies.

We provide secure processing facilities for clients who wish to outsource their administrative functions:

high-volume back/forward scanning, mail processing, claim processing.

50

Like us, we know that our customers have environmental targets that they are working hard to achieve. As technology advances, so do our products and services. This pertains to what our offerings can do but also to their impact on the environment and bottom line.

Fuji Xerox technology has significantly improved over the years and our products are more energy efficient than ever; we have digital solutions to help our customers print less, packaging solutions that can be recycled and the ability to provide our customers with environmental reports on their resource.

Our Minister for the Environment-accredited Product Stewardship Scheme ensures that our customers are able to recycle their Fuji Xerox used toner cartridges and end-of-life machines through our free take-back programme.

We also work with our customers to ensure that the number of Fuji Xerox machines they have is optimised so they have the correct number of machines onsite for the work they do.

For information on how we are designing our products and customers CO2, please see the Fuji Xerox Global Sustainability Report at this link:

www.fujixerox.com/eng/company/csr

ENERGY SAVINGS OF OUR NEW DEVICESOur current range uses 85% less power than the equivalent device did in 2004. The graph below shows this energy saving over time as the models have evolved.

With annual running costs calculated at 26 cents per kWh on the New Zealand government’s Energywise website, it works out at a $5.82 saving per machine

per week on our newer devices compared with the 2004 (DC706) model.

Taking an example of running 20 older model machines, the annual running cost is $6,760*. Comparatively our newer model would total $940 running cost per year. So upgrading the fleet to the new models would result in a $5,820 saving in energy spend annually.*Rates obtained from www.energywise.govt.nz/tools/running-costs-calculator

Device Energy Usage Evolution and Running Cost

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Model Release Date

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2000 2005 2010 2015 2020

$8.00

$7.00

$6.00

$5.00

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$3.00

$2.00

$1.00

$0.00

REDUCING OUR CUSTOMERS’ FOOTPRINT

Reductionin energy

consumption

85%


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ESSCOLLABORATING AND INNOVATING WITH

LIKE MINDED BUSINESSESStrategic collaboration is key to circular economy innovation. We are working closely with our partners Downer New Zealand and Close the Loop on Project Alchemy. This project has been awarded a grant from the Ministry for the Environment’s Waste Minimisation Fund and involves a number of technical trials to test the feasibility of putting TonerPave™ into roads here in New Zealand.

TonerPave™ has been used in over 1,000 kilometres of road in Australia. It helps to extend the durability of the road so less maintenance is required, as well as reducing the carbon footprint of the road itself.

See Our Product Stewardship section for more details.

KEEPING INFORMATION SECUREAt Fuji Xerox New Zealand, we prioritise information security: Keeping our customers’ data secure is absolutely key.

We have developed, and maintain, a robust Information Security Management System (ISMS) which is certified to ISO27001:2013. This system is managed at both a local New Zealand level and a regional Asia-Pacific level and means that we have an ongoing challenge to balance the need for agility and operational efficiency with security. The main function of our ISMS is to reduce risk to information security by maintaining a thorough approach to the risk assessment process and ensure our ISMS is not limited to only information technology security. Protecting our customers’ and our own sensitive/confidential information from leakage, both accidental and malicious, is the top priority for the ISMS across all of Fuji Xerox.


DELIVERING INNOVATIVE PRODUCTS AND SERVICES AS TECHNOLOGY CHANGESEvery year, Fuji Xerox and Xerox invest more than US$1 billion in the research and development of leading-edge document processing technology and products. The innovative award-winning products and solutions we develop are designed to transform how our customers do business.

Innovation, the cornerstone of our business

Fuji Xerox builds on innovation. We convert opportunities into strengths for our clients. We look at the technology in the market and the way our

INVESTING IN NEW TECHNOLOGY FOR THE FUTURE

customers and their customers behaviour evolves and, we transform the findings into very real business gains. With over 50 years of innovation and experience behind us, our future- facing commitment to our clients is to maintain the same level of technological momentum we are already renowned for.

A future focussed on change

True innovation reflects not only improving how people can work now, but anticipates and prepares for the impact of future market trends. We can’t say it enough – innovation underwrites business transformation. From changing how we perceive and manage office printing to enabling production print businesses to maintain relevance in a digital world.

From understanding the new paradigm of personalised marketing to optimising the flow of information through your business. We are already thinking years ahead.

We’re committed to developing the technology solutions businesses need to thrive, compete, grow and transform.

Technology and Innovation

Contribute to the emerging circular economy Undertake a technical trial of TonerPave™ in New Zealand with partners Downer and Close the Loop6

Demonstrate leadership in technology and innovationHost a sustainability technology and innovation event for our customers and stakeholders7

Internally, align with regional Fuji Xerox information technology systems, strengthen compliance and ensure robust governance is in place

Investment Committee to approve and support implementation of an alignment project8


19 TARGETS

19x19To be achieved

by FY19


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For a business with a long history of printing on paper and patented xerography photocopying, at Fuji Xerox we understand the implications of digital disruption better than most. We are facing this challenge head on and are proud of our evolution to become a leading provider of digital document solutions and services.

We understand that, as an enterprise’s knowledge capital grows – in both paper and electronic form – the challenge of unlocking it increases exponentially.

Multi-channel communication

PrintManagement Services

Digital Print Room Services

Physical and Digital Mail Services

Scanning Services

Information Capture

Business Analytics

Information Delivery

Enterprise Content Management

Dynamic Web-based Forms

Business Process Management

Enterprise Mobile Solutions

Creative Services

Next Generation ManagedPrint Services

Managing Your Document and Communication

Processes

Digital Print Room Services

Managing Your Information

Lifecycle

FORTUNE FAVOURS THE DISRUPTIVE

CAMERON MOUNTGM ENTERPRISE SOLUTIONS

Automating and simplifying business processes means customer service becomes highly efficient, consistent, and competitive. A businesses capability to do more and grow is pretty much guaranteed when they move from the limitations of a paper-based platform to a streamlined digital platform. Simply put, better processes means better business.

DRIVING CHANGEFuji Xerox is a leader in business transformation; we embrace, invest and innovate change. Our future lies in the services we provide to improve our customers’ processes. So they, in turn, can do better, more sustainable business.

Fuji Xerox New Zealand Consulting forms part of a global enterprise group across the Asia-Pacific region.

Locally, more than 150 Fuji Xerox New Zealand staff specialise in consulting, document solutions and managed services.

By utilising a technology, solutions and services suite, extending from information capture, workflow and Robotic Process Automation (RPA) to business process outsourcing, we make it easier for our customers to streamline processes and automate tasks.

Fuji Xerox identifies the best path to take in transforming outdated work practices.

Learn about how we help our customers reinvent and redesign business processes to enable successful digital transformation at: www.betterbusiness.fujixerox.co.nz


Aon New Zealand is a leading provider of insurance broking, risk management and HR consulting services. They work with a diverse range of customers at the local, regional and national level.

One of their services is the sprinkler and fire alarm inspection services for commercial and public access buildings. Aon dominates the New Zealand market in providing these fire inspection services. Their ISO17020 accredited services verify that a premise’s sprinklers, alarms and other equipment comply with the Building Act, certifying that they’re eligible for new or renewed insurance cover. Certification is issued for a two-year period, and Aon’s 10 inspectors visit over 2,500 buildings a year throughout New Zealand.

Case Study: A True Technology PartnershipThe amount of detail required on Aon’s previous paper- based fire inspection form made it cumbersome. Inspectors made extensive hand-written notes as they moved from room to room and floor to floor, recording issues or faults. The inspectors usually visit a series of sites on their trips, and the entire process of inspection, preparing the report and producing invoices for services could take up to four weeks.

Aon and Fuji Xerox New Zealand worked together to develop a tablet-based mobility solution for the fire inspection service. The solution includes smart-form questionnaires. The inspectors can also attach digital photographs, and official findings are sent back to the office once the inspection is finished.

Left: An Aon IT staff member testing the solution. Centre: Jim Dixon (Fuji Xerox) and Jonathan Cook (Aon) viewing the tablet-based mobility solution. Right: An Aon fire inspector at work (using the new tablet-based mobility solution)

The new mobility solution on Intelledox Smart Forms platform delivered the following outcomes to Aon:• 15% immediate increase in fire sprinkler inspectors’

productivity• Wait time for fire inspection reports slashed from four

weeks to two days.

“We had high expectations of a partner who could be flexible and dynamic and an extension of our team. I’m pleased to say that Fuji Xerox exceeded our expectations and were a pleasure to work with every step of our journey.” – Jonathan Cook, Information Technology Managed for Aon


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Like most businesses, we too are on a journey to digital transformation. Internally, we seek to implement our world-class digital solutions to make us a more efficient and resilient business, so of course we understand the change-management challenges our customers face and the immense benefits our solutions bring.

OUR OWN TECHNOLOGY AND INNOVATION JOURNEY

CREATING A CULTURE OF INNOVATIONWhile major product and service breakthroughs are directed from our regional parent company, locally Fuji Xerox New Zealand has also focused on creating a culture of consistent innovation driven by our employees to enable sustained growth.

With strong leadership, support and commitment, our local project management office facilitates forums that encourage employees to identify new ideas that further the company’s purpose and vision.

The project management office assists with employee collaboration and helps build these ideas across the needs of customers and other stakeholder groups, then supports the employee to implement these ideas quickly and efficiently.

Our current focus on implementing regional standard platforms and steady local incremental innovations every day to improve our business efficiency and effectiveness to add value to our customers is critical to ensuring sustained growth.

SALES PROPOSAL GENERATORWe have recently developed a sales proposal generator solution developed on the XMPie platform. XMPie is a Xerox company and is a world-leading provider of multi-channel communications solutions. After launching the sales proposal generator, more than 500 proposals had been generated in two months via the platform by the Fuji Xerox sales team. The solution has helped save time and allow the account managers to generate quality business proposals while promoting our own solutions.

To view the case study, visit www.fujixerox.co.nz/en/Company/ Success-Stories/XMPie

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56 Fuji Xerox New Zealand Sustainability Report 2018Photographer: Leon Sun


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OUR PEOPLE

EHARA TAKU TOA I TE TOA TAKITAHI, ENGARI HE TOA TAKITINI


Fuji Xerox New Zealand has been operating for over 50 years, and throughout that time, the business has been fortunate to attract a diverse range of passionate and talented people. Our people are key to our success and the turnaround strategy for our business.

In response to the findings of the IIC report and the financial losses associated with inappropriate accounting practices, there has been a strong focus on ensuring we have the right team in place to support our objectives and strategic direction.

To support our business needs and focus on returning to profitability, an organisational redesign programme

was implemented during this reporting period which has resulted in a 10% reduction in our headcount over the last two financial years.

Following 18 months of transition and a comprehensive review of our organization, we are now poised to enter the next stages of our evolution with confidence in our operations, increased efficiency and a renewed focus on delivering excellent customer service.

Our people have been key to the success of our turnaround plan - we have a strong, supportive team of resilient people who are committed to our customers and organisation.

OUR PEOPLE ARE KEY TO OUR SUCCESS

Throughout our internal engagement process for this report, our employees raised the following issues as being significant: remuneration, training, employee engagement, leadership, equality and diversity.

Although these topics did not feature in our top five, it is important that we discuss them and report against them in this section.

Please note: Our new HR system went live in December 2016 and historical information was not uploaded. Our legacy system doesn’t have the capability to get the reports in the same format as our current HR system, which is why FY17 reports are more comprehensive compared with FY16 reports in the Our People section of the report.

Where possible, data have been provided for both financial years in this section, but more comprehensive data is provided for the year ended 31 March 2018.

For us at Fuji Xerox New Zealand, the following United Nations Sustainable Development Goals relate to the topics in Our People section:Please refer to page 131 for more detail on how we are contributing to each goal.

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It doesn’t matter what business, industry or sector you work in, or how big or small your company is, your success will be defined by your people. They are the most important asset you have, and to ensure a long-term sustainable future, you must have a clear people strategy that inspires, motivates and ensures that all people, no matter what their role is, work together in harmony to deliver the company’s objectives.”PETER THOMASMANAGING DIRECTOR, FUJI XEROX NEW ZEALAND


THE PEOPLE BEHIND FUJI XEROX NEW ZEALANDThe past two years have been challenging for our workforce, and we have undergone significant change resulting in a number of restructures in response to a directive from both Fuji Xerox, our parent company, and FUJIFILM Holdings, our majority shareholder, to ensure our business is future proof.

The restructures were required to mitigate loss and return to profitability – and resulted in a significant decrease in the number of staff working at Fuji Xerox New Zealand.

The implementation of this organisational redesign programme also provided us with the ability to evaluate our entire operating model, and efficiencies have been identified leaving us better placed to deliver on our operational objectives and shareholder directives.

• 10.6% DECREASE IN OUR WORKFORCE BETWEEN FY16 AND FY17 •

FY16

Permanent

357

151

Contract

85

95

Temporary

2

TOTAL NUMBER OF EMPLOYEES BY EMPLOYMENT CONTRACT (PERMANENT AND TEMPORARY) BY GENDER

Permanent

336

Contract

44

60

Temporary

2

6

FY17

169

690 EMPLOYEES TOTAL – FY16

Males = 452

Females = 238

34.5%

Females

65.5%

Males

617 EMPLOYEES TOTAL – FY17

Males = 386

Females = 231

37.5%

Females

62.5%

Males

0

Female Female Female

Male Male Male Male

Female

Male

Female

Male

Female

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I’m a Senior Marketing Analyst, and one of the aspects of my role that I love has to be the people I work with. They are dedicated, exceptionally hardworking and always willing to help. I feel privileged to be a part of the Fuji Xerox family and to play my part in our success story.

FAITH BABENDRASENIOR MARKETING ANALYST, MARKETING AND BUSINESS DEVELOPMENT DEPARTMENT

I have worked at Fuji Xerox New Zealand for over 12 years and through this time, with support from the business, my career has grown and progressed. As an Inventory Planning Manager, I have the opportunity to work with my team on supply-chain logistics and cost-reduction initiatives that not only help the business meet its objectives but also drive customer satisfaction. Working in with my team and building a good environment to allow effective work to be done, is where I find I have achieved a successful balance and satisfaction within my role.

BRADLEY FREEMANINVENTORY PLANNING MANAGER


EQUALITY AND DIVERSITYAs a Japanese-born, Kiwi-raised company with a culturally diverse workforce, we are a truly multicultural business. We have employees from many different countries and backgrounds, and whilst cultural differences can sometimes be difficult to navigate, we expect all of our employees to treat and respect people as people. Our management training programmes promote awareness for managers to help them understand the cultural differences of individuals within their teams. This training is to ensure participation is encouraged and that everyone is provided the opportunity to fulfil their potential.

We are a male-dominated technology sales and service organisation. This is quite common within our industry. According to the 2018 MYOB Women in Tech report “today, just one quarter of the global tech workforce are female, and in New Zealand it’s slightly less – just 23 per cent of the sector.” *

We do however feel that this trend is starting to shift and is evident in the increase in females we have working in our business between FY16 and FY17.*MYOB Women in Tech Report 2018

We pride ourselves on our diversity and being an equal opportunity employer. Our recruitment does not discriminate against gender, race, cultural or sexual orientation, age, religion, pregnancy or disability. We do however believe in employing the right person for the right job.

We also have a truly dedicated team of employees ranging between the ages of 20 through to 80.

Some employees have been with the company for over 40 years, offering a solid knowledge base and invaluable support system. As you can see in the graphs, the age range is between 30 through to 60. We recognise that we have an ageing workforce, and to ensure we future proof our business and retain the knowledge and skills of our employees, we have been busy establishing succession plans.

Some team members from our Workshop Cadet programme in Auckland, including from L-R: Tom Patil, Ryan Muller, Anthony Watson, Celia Servo, Vai Joshi and Senior Workshop Technician John Augustowicz.

Some of our account managers from Auckland, Christchurch and Wellington on a Sales Skills Development course, including clockwise from front: Sarah Williams, Paul Roukchan, Reuben Turner, Patrick Crosby, Clark McIntosh, Greg O’Shanassy, Thomas Kwok, Zac Harvey and Ryan Stevens.

While we are currently focusing on our environmental footprint, in the coming years we will address the “handprint” of our corporate cultural responsibility. This means we will have a greater focus on cultural diversity and helping to conserve Māori cultural heritage. We will engage with our multicultural colleagues, customers and neighbours while ensuring we retain our Japanese values and Kiwi roots.

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TOTAL NUMBER OF EMPLOYEES BY EMPLOYMENT TYPE (FULL-TIME AND PART-TIME), BY GENDER (FY17)

Full-time

Part-time

Females

Males

15%

85%

<20 30

20–29 5441

30–39 9468

40–49 8449

50–59 10856

60–69 3513

70-80 121

Not specified 7

2

OUR WORKFORCE BY AGE BRACKET AS AT 31 MARCH 2018

<5 49%63%

5–10 20%20%

11–15 13%10%

16–20 4%4%

21–25 7%2%

26–30 2%0%

31–35 3%2%

2%0%36–40

0%0%41–45

0%0%>56

0%0%No data

STAFF TENURE AS AT 31 MARCH 2018

4%

96%

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Even though there are topics within the organisation that are commercially sensitive, and we are sometimes restricted on what information we can release, we are working to ensure we are being as open and transparent as possible.

Communication has been key to encouraging a more inclusive and driven organisation. On a regular basis, our Managing Director, Peter Thomas, meets with customers around the country and hosts Q&A sessions

EMPLOYEE ENGAGEMENTOur focus as a business, is to be a great place to work for all our employees. Fuji Xerox has numerous branch locations across New Zealand, and as part of developing a new culture, we are working hard to ensure there is cohesion and inclusion between all sites.

We have worked hard on employee engagement over the past couple of years especially during the changes. As Kiwis, we like to talk and be informed.

I am exceptionally pleased with the direction that Fuji Xerox New Zealand is now taking. There is still more work to be done and perceptions to be changed by some long-serving employees but of the staff that I work with, there are positive mindsets and a sense of unification across most areas of the business. Customers are also accepting that the actions of a few greedy people do not reflect the actions of the wider employee base. It is refreshing to see a great new leader of our company and a leader that is happy to get out and about and meet our large workforce. It gives each employee a sense of being valued and listened to.


with our branches. He also sends out monthly video updates (or more regularly as required) talking about recent events, business performance and what might be on the horizon. The Sustainability Team also visit each branch annually to ensure they are maintaining their performance against the Sustainability Management System but also to understand how the team can work with branch employees on their local initiatives within their regions.


EMPLOYEE SATISFACTIONAt Fuji Xerox New Zealand, the actions we are undertaking to train our people in ethical business practices are of course important, but equally critical is improving our culture and values.

Our annual employee satisfaction survey is an invaluable resource to help measure and understand employees’ attitude, feedback, motivation, and satisfaction. It is also used to understand the current dynamics of the workplace and identify training requirements or learning activities.

The internal employee-engagement process identifies the issues that are important to our staff and provides us with the ability to implement corrective actions and implement changes for the future.

From the results, we are able to analyse the data to determine the strongest drivers of employee engagement. Each year, we are committed to addressing the three main themes (focus areas for improvement) with the aim of adding value back into the organisation.

The top three focus areas for improvement as per the survey results for the reporting period were the following:

Each year, following the analysis of the survey results, feedback is provided to employees on the actions to be taken on the top issues raised. At the time of writing, a range of initiatives were in the process of being

FY17• Strategy and direction• Remuneration• Change management

FY16• Remuneration • Communication

and leadership• Training

Clear and promising direction

Confidence in leaders

Change management

The figures above show an improvement in the scores from

FY16 in our FY17 Employee Satisfaction Survey...

27%

24%

28%

Strategy and direction

Remuneration

Change management

…and these are the top three focus areas for improvement our employees want the business to

focus on from our FY17 Employee Satisfaction Survey.

AREAS WE’VE IMPROVED SINCE FY16

AREAS FOR IMPROVEMENT FOR FY17

developed to address the top issues raised in the FY17 employee satisfaction survey. These will be reported on in the FY18 – FY19 Sustainability Report.

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EMPLOYEE BENEFITS We are proud that Fuji Xerox New Zealand provides industry-leading benefits to our employees, taking into consideration health and well-being and continuous development of our company. We want to be one of the best places in New Zealand to work.

Fuji Xerox New Zealand is strongly committed to supporting the wider community. We offer paid volunteer time each year for those who want to

make a difference in their communities

Permanent employees

of Fuji Xerox New Zealand are

eligible for:Fully-funded Southern Cross Health

Insurance including partner and any dependents under 21 years of age

Access to an Employee Assistance Programme (EAP): a confidential

support, guidance and counselling service available 24/7, 365 days a year

Health Club Subsidy towards a gym membership or sports

facility or event of their choice

Free flu vaccinations are offered for all

employees once a year

On completion of 90 days’ service, employees are invited to join the Company Superannuation Plan.

This plan includes life and permanent disability cover. Only 4% of companies in our sector in

New Zealand offer a superannuation plan.

A range of great discounts through our business partners, including banking and vehicle discounts

Financial support and time off for external study to help employees

reach their potential

A generous sick leave policy of 10 days per annum for full-time employees. Our employees

are eligible to take their sick leave on commencement of employment. Most companies

in New Zealand offer only 5 days of sick leave after 6 months of employment.

Regardless of all of the changes we have gone through over the last two years, we have ensured that we have maintained the following benefits for our people. We are proud that many of these benefits are above legal standards and that they are leading in our sector.

Flexible working arrangements at Fuji Xerox New Zealand are commonplace and cater not only for working Mums and Dads but also for those who care for elderly parents, participate in sports or hobbies and those who live a long distance from the location they work in.

PAULINE HARTWELLHEAD OF HUMAN RESOURCES

Healthy Food Guide Subscription

Generous long service awards


OUR NEW REMUNERATION STRATEGYWe recognise that it is critical to ensure a consistent and fair approach to remuneration for all of our employees. We are therefore putting a robust and renewed Remuneration Strategy in place.

In 2017, we carried out a comprehensive review of our remuneration strategy in conjunction with an external, independent remuneration consultant, to ensure we are able to provide transparency and structure to the way our employees are remunerated. The framework has been deliberately aligned to the market, which will allow us to attract the right talent to Fuji Xerox New Zealand and retain the talent we already have. A job banding and salary benchmarking exercise has been completed for all positions against market data in our industry and direct competitors in New Zealand.

The Fuji Xerox New Zealand remuneration framework has been designed to align and support:

• Our business strategies and goals• Our values and principles• Our human resource strategies• Our management processes• The regional direction from our shareholder

The framework and related programmes will provide Fuji Xerox New Zealand business leaders with:

• The clear accountability for managing performance and the resulting reward and recognition of their employees

• The ability to differentiate reward and recognition based on performance to ensure Fuji Xerox motivate superior performance and strengthen the connection between rewards and results

• The tools to encourage regular conversations about performance and development, ensuring that Fuji Xerox’s people know what it takes to achieve success in Fuji Xerox

The framework and related programmes will provide Fuji Xerox New Zealand employees with:

• The information required to know what is expected of them in Fuji Xerox, and to manage their performance against this

• The ability to co-manage their career development and aspirations

• Fair and flexible reward, and recognition based on their performance and in the context of the external labour market

With the remuneration framework in place and all roles benchmarked, the key focus is now to ensure consistency and transparency for all employees.

In line with all Fuji Xerox Asia-Pacific operations, formal reviews and evaluations of goals will be conducted with all employees twice a year with performance ratings entered into our Regional Human Resource Integrated System. These ratings feed into an annual salary review that takes place in July each year.

Participation in the salary surveys within our industry sector provides us with up-to-date market information enabling us to ensure our remuneration is competitive and current.

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RATIO OF BASIC SALARY AND REMUNERATION OF WOMEN TO MENWith a remuneration framework in place, we ensure that males and females performing to the standard in the same roles are paid equally and receive the same benefits; however, the gender discrepancy relates to the fact that sales and engineering are predominantly male dominated. At Fuji Xerox New Zealand, salaries are determined irrespective of gender according to our Remuneration Framework. We will provide a more detailed breakdown according to role type in future reports.

AVERAGE COST TO COMPANY including bonuses and benefits

Average CTC across company

$90,547

$101,210$72,868

AVERAGE ANNUALISED BASE SALARY

Average Base across company

$60,757

$63,372$56,421 the average salary in New Zealand

$49,475

StatsNZ, 2017*

COLLECTIVE BARGAININGPercentage of total employees covered by collective bargaining agreements

52 employees were on collective bargaining agreements in FY16

8.4%FY16

40 employees were on collective bargaining agreements in FY17

5.8%FY17

*www.stats.govt.nz/information-releases/household-income-and-housing-cost-statistics-year-ended-june-2017


HEALTH AND SAFETYProviding a safe and healthy working environment is of paramount importance to us at Fuji Xerox New Zealand.

The changes to the Health and Safety at Work Act in 2015 presented the opportunity for us to review our current processes to ensure all parties are meeting their obligations – everyone has a role to play regardless of seniority, function or position in the organisation.

To address ongoing requests from our vendor community and customers, and to ensure we are doing everything we can to provide a safe and healthy workplace, we operate a Health and Safety Management System that is certified to AS/NZS 4801 and BS OHSAS 18001.

In FY16, we had 36 incidents mostly of minor impact and one notifiable incident, these incidents resulted in 82 lost days. In FY17 we had 28 notifiable incidents which resulted in 19 lost days.

Ensuring a healthy, safe and incident-free environment is a constant focus and a responsibility we take seriously. As you can see in the lost time injury statistics below, we have significantly reduced the number of lost days and had a reduction in incidents in FY17 compared with FY16. We are proud to see this reduction and hope to report on a further reduction in 2020.

LOST TIME INJURY STATISTICS

Incidents Lost days Incidents Lost days

FY16

36 82

FY17

28 19

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TRAINING AND DEVELOPMENTTechnology within our industry is constantly evolving at a rapid pace. In order to provide our customers with the right solutions and services to meet their business needs, we are working to ensure that our people have the training they need to be at the forefront of emerging technologies and solutions we sell.

Fuji Xerox prides itself on providing all its employees with opportunities for learning and development. There are a variety of offerings to suit all individuals including online learning, extramural studies, classroom teachings, bite-size training programmes, lunch and learn sessions to name a few. Our stakeholders also require mandatory training modules on topics like Code of Conduct, Product Safety, Information Security, Corporate Sustainability and Business Ethics. Our Regional Learning Management System rolls out these training modules, records all training, allows employees to enrol for courses and uploads certificates and qualifications achieved so talent profiles can be maintained.

Where Fuji Xerox invests in learning and development, training bonds are put in place to ensure that there is good return on investment.

Being part of a multinational corporate, there are also opportunities for employees to be nominated to take part in leadership development programmes overseas with peers from other operating companies. There are also overseas training programmes where employees and their families are seconded to another operating

company for a two-year period. This provides an opportunity to understand the wider business and assist with their development while completing assignments for the host country.

This year Fuji Xerox New Zealand launched a workshop cadetship programme, which develops school leavers into Customer Service Engineers over a two-year period. Each level of the programme contains learning modules, which need to be achieved and approved, and on completion of each stage, remuneration increases to reflect their trained state. This also complements the partnership programmes we have in place with Auckland schools, which are valued clients of Fuji Xerox.

To ensure a consistent approach to training across the business, we have a dedicated Human Resources

Business Partner – Learning and Development. She manages everything from running the employee induction programme to designing and rolling out tailored training modules addressing the ever-changing needs of the business.

Learning and Development is a lifelong experience, which is the driver behind the great programmes we offer at Fuji Xerox.

We are proud of the various opportunities we provide. Everything from our workshop cadetship, which enables school leavers to start a career with us, to our comprehensive leadership programmes that encourage new and potential managers to realise their ambitions and leads to effective management of our teams, which is critical to business success.

I am passionate about working with our team members to grow and develop their skills to enable them to reach their goals.

SHONA ALLOTTHR BUSINESS PARTNER, LEARNING AND DEVELOPMENT

TRAINING HOURS FY17

Average training hours per employee:

18.89

Average training hours per female

employee:

17.91

Employee Engagement Engage, empower and train employees in sustainability Implement a Being a Better Business programme to engage, empower and train employees in our sustainability strategy17


CAREER PROGRESSION AT FUJI XEROX NEW ZEALAND

Ruth Constantine is the youngest member on our Senior Leadership Team and is currently completing the final year of her MBA, fully funded by Fuji Xerox New Zealand.

The MBA has provided a powerful learning experience for Ruth and has motivated her to explore beyond her current skill set to be an influence in the organisation.

Not only has the course provided new challenges that I ever thought I could complete, but it has helped me develop and build the management capability to help drive the required performance for my team.

Ruth is extremely thankful for the support and the opportunity Fuji Xerox has provided her to complete this course and realise her professional potential.

RUTH CONSTANTINE GENERAL MANAGER, SALES OPERATIONS

In 2012, I started in the Christchurch workshop learning the fundamentals of xerography and refurbishing machines, then moved out into the field in Timaru taking on more responsibility and learning customer communication skills.

With my passion for IT, I upskilled on the new systems and solutions our machines have and was recognised by the company and offered an engineer/analyst role in Queenstown. I continued to upskill and had great support from the company with training courses and peer mentoring with others in similar roles.

Recently I applied for the Nelson Customer Service Coordinator positon and was successful. This will be the next chapter in my career progression within the company and I am looking forward to getting some management experience.

The company has supported me in every way possible, and I feel that Fuji Xerox offers great career opportunities and development for young people.

JONTY LINDSAY CUSTOMER SERVICE ENGINEER/ANALYST

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In late 2017, I was requested to oversee the Fuji Xerox New Zealand Contact Centre transition from New Zealand to the Fuji Xerox Shared Service Centre in Kuala Lumpur, Malaysia. This has been a huge benefit to see systems and setups that other Fuji Xerox operating companies employ to help improve our own processes and systems.

The internal training I am receiving to further my advancement and knowledge in the business has been fantastic to say the least. The resources available to us and the willingness to impart wisdoms accordingly, is something that we should all make the most of as I don’t think this level of assistance and tools are common practice in many other work environments.

SIMON LINNELL SENIOR CUSTOMER SERVICE REPRESENTATIVE, FUJI XEROX MALAYSIA (ON SECONDMENT FROM FUJI XEROX NEW ZEALAND)

My role as an HR Business Partner brings a new challenge and learning opportunity every day. The diversity of employees I interact with in the business is what makes my role enjoyable, and knowing that I am contributing to their future career success within Fuji Xerox is one of the most rewarding aspects.

RACHEL KNIGHT HR BUSINESS PARTNER

My career at FX began in 2003 as an Area Sales Representative transitioning into the Graphic Arts Sales and then to Wellington Sales and Operations Manager late 2017.

I had a three-year gap working for one of FX’s Premier Partners, which gave me a fantastic opportunity to understand from the customer point of view the realities of running a printing company and how important the engineering and analyst teams are to our customers.

I have been lucky to attend many fantastic training courses over the years and am looking forward to the reinvestment Fuji Xerox is making in its staff with training and development.

RYAN STEVENS WELLINGTON SALES AND OPERATIONS MANAGER

74 Fuji Xerox New Zealand Sustainability Report 2018Photographer: Mylene Bauista


OUR FOOTPRINT

E KORE TE PĀTIKI E HOKI ANŌ KI TŌNA PUEHU


MANAGING OUR IMPACTSGlobally, Fuji Xerox has a commitment to reducing the environmental impacts of our business by maintaining world-class environmental management. Aligning with this global commitment, in FY17, Fuji Xerox New Zealand transitioned our Environmental Management System (EMS) from ISO14001:2004to ISO14001:2015. In doing so, we took the opportunity to align our Management System with British Standards BS 8900:2013 (Guidance for managing sustainable development) to incorporate socio-economic and governance factors of our business in a more comprehensive Sustainability Management System (SMS).

Through the process of migrating from an EMS to the more comprehensive SMS, we have established 19 short-term business targets to achieve by 2019

(our “19x19” – please refer to page 10-11). A number of these targets are related to our long-term goal of being net zero1 carbon by 2030.

Our 19 x 19 targets ensure we are focusing on mitigating our operational impacts and reducing our carbon footprint, but also honouring our commitment to the 2017 Climate Change Statement, which Fuji Xerox New Zealand and a number of other businesses have since signed. For more information on our commitment, please see page 81 and if you want to learn more about the Climate Change Statement and an up-to-date list of signatories, please go to: www.climateleaderscoalition.org.nz

As an onseller, our biggest environmental impacts are associated with the products we are selling, how we are getting our products from A to B, our internal operations and what happens to our products at the end of their life.

All these areas contribute to our footprint. However, in this section, we will be focusing on the material topics of Energy and Carbon and Product Stewardship as they were two of our top five material topics based on our internal and external materiality assessment.

1 Net-zero means emissions may continue but must be balanced by negative emissions technologies. These range from tree-planting through to technological solutions that draw carbon from the air or bio-energy with carbon capture and storage. If the world reached net-zero carbon emissions, it would be carbon neutral. At net-zero greenhouse gas emissions, it would be climate neutral.

For us at Fuji Xerox New Zealand, the following United Nations Sustainable Development Goals relate to the topics in Our Footprint section:Please refer to page 131 for more detail on how we are contributing to each goal.

Really proud to work for a company that places enormous emphasis on respecting all people, and is highly committed to working towards ensuring the environmental future of this planet is healthy for future generations.

ANONYMOUS FUJI XEROX NEW ZEALAND EMPLOYEE SATISFACTION SURVEY, 2017


ENERGY AND CARBONFor the purposes of this report our environmental benchmark data is FY16 (1 April 2016 – 31 March 2017) and we have reviewed our FY17 (1 April 2017 – 31 March 2018) data to reflect how we are tracking and have set targets against this data. The graphs over the next few pages look at our relevant Scope 1, 2 and 3 emissions in regards to our internal operations at Fuji Xerox New Zealand.

We have omitted our export and import emissions and diesel generator data in our footprint as not all of the data was available at the time of publishing, thus a true representation of our “external” footprint in regard to import, export and land freight could not accurately be represented.

This year (FY18) we have set a target to work with our logistics suppliers on gathering our footprint data for import, export and land freight which we will publish in our 2020 GRI Sustainability Report.

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CAR

BON

tCO2e

FY16

2,167.8tCO2e

FY17

2,234.93.1%

Scope 1: This covers our vehicle fleet emissions and unsurprisingly is our largest source of emissions. Due to the nature of our business, and that many of our team are based on the road, we expected this to be the case. However, we saw a reduction in emissions by 8%, which is largely credited to a transition of diesel vehicles to petrol vehicles.

Over the next two years, we hope to see a decrease, as we have committed alongside 29 other businesses, to transition 30% of our fleet vehicles to electric by the end of 2019.

This does not come without its challenges as there are currently no electric vehicles (EVs) in New Zealand that meet the needs of our service staff, so our focus is on transitioning our sales and support teams in the first instance. As at end of FY17, we transitioned 3.5% of our fleet to electric and installed EV chargers at three of our branches to support the transition.

Scope 2: This covers our emissions from our leased sites energy use and is our lowest emissions source. Data for some of our sites has been extrapolated as it was not available at the time of writing due to the nature of our leases. We are looking into how we can obtain the data for some of our sites going forward but unfortunately not all data can be made available for our 2020 report.

In FY17, we saw a slight increase in emissions as we moved into larger facilities in Queenstown, Tauranga and Auckland. However, we moved out of some of our warehouses and less efficient buildings, hence we only saw a 1% increase in emissions. We are expecting to report a decrease in our Scope 2 emissions in our next report due to the merging of our Value Innovation Centres and Print Rooms.

We have also established a company-wide target to reduce our operational energy consumption by 3% based on our FY17 benchmark. This will be a focus in FY18 and FY19.

Scope 3: This covers our emissions from business travel, electricity–transmission and distribution losses and waste.

We saw an increase of emissions by 7%, which was mostly due to an increase in long-haul flights. Given the inappropriate accounting issues and the resulting meetings with our parent operations in Japan and Singapore, some of our senior employees were travelling long haul at least once a month. As we are now starting to move on from these past issues, we expect this number to significantly decrease.

To support the decrease in our Scope 3 emissions, we have established the following targets:

• Reduce our FY18 air travel carbon footprint by 5% based on FY17.

• Reduce our operational (branch and facility) waste by 5% based on FY17.


Energy and Carbon, Transport Transition to net zero carbon by 2030

Reduce our operational energy consumption by 3% based on FY17 benchmark9

Transition 30% of our light fleet to electric vehicles by end 201910

Reduce our FY18 air travel carbon footprint by 5% based on FY17 benchmark

Undertake a benchmark study to establish freight carbon footprint

11

12

Resource Use Zero waste to landfill (operational) Reduce our operational (branch and facility) waste by 5% based on FY17 benchmark16


19 TARGETS

19x19To be achieved

by FY19

Photographer: Bernice Duncan


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FY16 Carbon Footprint by Scope

Scope 3 – Indirect other (business travel, electricity T and D losses and waste)

Scope 2 – Electricity indirect emissions

Scope 1 – Direct transport fuel emissions

11%

63%

21%

12%4%

FY16 Carbon Footprint by Type

63%

26%

Waste

Energy

Business travel

Vehicle fleet

240.8 tCO2e

557.04 tCO2e

1,369.9 tCO2e

80 Fuji Xerox New Zealand Sustainability Report 2018Fuji Xerox New Zealand Sustainability Report 201880

FY17 Carbon Footprint by Scope

Waste

Energy

Business travel

Vehicle fleet

12%

55%29%

3%

13%

FY17 Carbon Footprint by Type

55%

33%

Scope 3 – Indirect other (business travel, electricity T and D losses and waste)

Scope 2 – Electricity indirect emissions

Scope 1 – Direct transport fuel emissions

261.7 tCO2e

741.5 tCO2e

1,232.2 tCO2e


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In December 2017, Fuji Xerox New Zealand officially signed up to the Climate Leaders Coalition Climate Change statement spearheaded by Mike Bennetts, CEO of Z Energy. At the time of publication, more than 60 signatory businesses, making up almost 50% of New Zealand’s gross emissions, had signed up too.

The goal of the new group – which includes the leaders of Z, Westpac, Ngai Tahu Holdings, Vector, Air New Zealand, Spark, The Warehouse Group and NZ Post (among many others) – is to help New Zealand transition to a low-emissions economy and, in doing so, create a positive future for New Zealanders, business, and the economy.

This report, and the disclosure of our carbon footprint in accordance with the GRI Standards, is demonstrating our commitment to the goals of the Climate Leaders Coalition.

Please go to www.climateleaderscoalition.org.nz to learn more about the commitment, to join the Coalition or to see the most up-to-date list of signatories.

CLIMATE LEADERS COALITION BRAND BOOK JUNE 2018

CLIMATE CHANGE STATEMENTFor the generations after us, for the country we love, for the viability of our businesses, we are ambitious for action on climate change. If we act now we can forge a path to create a future that is low-emission, positive for our businesses and economy, and inclusive for all New Zealanders. We are committed to playing our part to make that future real. If we don’t, our competitiveness is at risk.

We take climate change seriously in our business:

• We measure our greenhouse gas emissions and publicly report on them

• We set a public emissions reduction target consistent with keeping within 2° of warming

• We work with our suppliers to reduce their greenhouse gas emissions

We believe the transition to a low emissions economy is an opportunity to improve New Zealand’s prosperity:

• We support the Paris Agreement and New Zealand’s commitment to it

• We support the introduction of a climate commission and carbon budgets enshrined in law


In FY17, we set a long-term business target to be net-zero carbon by 2030. As a first step to achieving this target, we committed alongside 29 other businesses in 2016 to transition 30% of our fleet to electric by 2019. In FY16 and FY17, our fleet was the largest contributor to our footprint and we hope that by transitioning our fleet, we will see significant reductions in our carbon footprint.

New Zealand has a long-term target to being zero-carbon by 2050. To demonstrate Fuji Xerox New Zealand’s commitment to this target and leadership in the electric vehicle movement for New Zealand, we have spent some time getting out and about in our electric vehicles to share the message.

Energy and Carbon, Transport Transition to net-zero carbon by 2030 Transition 30% of our light fleet to electric vehicles by end 201910


Transitioning [the New Zealand] fossil-fuelled transport fleet to run on clean, renewable electricity is one of the most effective ways for New Zealand to reduce greenhouse gas emissions and meet our climate change commitments.*

ANDREW CASELEYCHIEF EXECUTIVE OF THE ENERGY EFFICIENCY AND CONSERVATION AUTHORITY (EECA)

*New Zealand joins global Electric Vehicle Initiative: www.eeca.govt.nz/news-and-events/media-releases/new-zealand-joins-global-electric-vehicle-initiative/


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Jeremy Matthews, Fuji Xerox New Zealand (right) with James Williams, Fleet Manager for Hyundai New Zealand at the Leading the Charge event in Palmerston North, March 2018.

CASE STUDY: FUJI XEROX’S FUTURE FLEET IS ELECTRIC*Five thousand, seven hundred kilometres down, the Fuji Xerox New Zealand sustainability team’s electric vehicle road trip has reached the end of the road.

Over four weeks, Juhi Shareef and Emma Harding drove from Whangarei to Bluff in a BMW electric vehicle. The purpose of their trip: to highlight the company’s new sustainability strategy that will see 30% of their vehicle fleet electric by 2019.

They offered staff at each branch a test drive – a fun way to engage regional teams in the company’s *Story extracted from the Sustainable Business Council’s Insights Blog,

28 June 2017: http://www.sbc.org.nz/insights/2017/fuji-xerox-nzs-nation-wide-ev-road-trip

sustainability aims. The trip was also an opportunity to meet with colleagues to find out how an EV fleet would best work for Fuji Xerox. The EVs would have to handle over 40,000 kilometres a year driving while carrying heavy engineers’ kits. So, road-testing electric vehicle endurance and the national charging infrastructure was crucial.

The trip wasn’t without its challenges – the car did run out of charge during a large detour to avoid the Kaikoura road closures, and there’s still some thinking to be done about charging facilities near each branch. But Juhi and Emma said the trip confirmed that there’d be many benefits from having electric vehicles in the fleet – not least the lower carbon footprint.

CASE STUDY: FUJI XEROX NEW ZEALAND – LEADING THE CHARGEJeremy Matthews, one of our EV champions, represented Fuji Xerox at the Palmerston North Leading the Charge event in March 2018.

At the Leading the Charge event, the public could test drive a number of EVs, including Jeremy’s Hyundai Ioniq, the “people’s Tesla.”

A busy Customer Training Analyst who supports Fuji Xerox customers in Manawatu, Taranaki and Hawke’s Bay – an area of over 43,500 square kilometres – Jeremy was well placed to respond to concerns about range anxiety. “If I can make it from Palmerston North to Gisborne in an Ioniq, anyone can!”

The Ioniq has a range of up to 200 kilometres and Jeremy works primarily in metro areas so he rarely needs to charge up during the day. On longer journeys, good

health and safety practice means that Jeremy takes a break from driving every two hours. Charging is a great reason to take a break and meet other EV drivers at a charging station, such as those provided by ChargeNet.

The big question of the day was how to change company and driver culture to make EV driving the new norm. When Fuji Xerox New Zealand joined the 2016 initiative by Air New Zealand, Mercury and Westpac to transition 30% of fleet vehicles to electric, our Sustainability Team drove a BMW i3 (see below) to every Fuji Xerox branch across the country to talk about our sustainability strategy and give our colleagues a chance to try out an EV.

Many of our colleagues are now excited to use an EV, but our big challenge is to source a vehicle that meets the needs of our diverse workforce. Some travel up to 60,000 kilometres per year, and our service technicians require 500 litres of boot space for equipment and use their vehicles as family cars at weekends.

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Jeremy Mathews, Fuji Xerox New Zealand (right) with James Williams, Fleet Manager for Hyundai New Zealand at the Leading the Charge event in Palmerston North, March 2018.


Ziptrek Ecotours is an Eco-Adventure tourism business with tree-based aerial platforms connected by ziplines through the forest on Bobs Peak, high above Queenstown, New Zealand. We aim to educate our guests on sustainable practices whilst having fun on our exhilarating ziplines.

At Ziptrek Ecotours we take sustainability very seriously. It is central to our business, so it is great to work with suppliers who are also making sustainability a core part of their business ethos. When Fuji Xerox New Zealand proposed what they could offer us, we were blown away by their commitment to sustainability.

It made it a no-brainer to work with them and we couldn’t recommend Fuji Xerox highly enough as a supplier of choice.

STU CORDELLEGENERAL MANAGER, ZIPTREK ECOTOURS, QUEENSTOWN, NEW ZEALAND


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PRODUCT STEWARDSHIPAt Fuji Xerox New Zealand, we believe that product stewardship is the first step to a circular economy.

It provides a framework to move us from a “take, make, waste” linear economy to an economy where valuable resources keep circulating.

Fuji Xerox has a strong commitment to environmental stewardship and aims to send zero waste to landfill. Fuji Xerox New Zealand was the first in our sector to have our voluntary product stewardship scheme formally accredited by the Minister for the Environment in 2015, and in 2017, we were the first in our sector to improve our scheme.

We are very proud of our Minister for the Environment- accredited Product Stewardship Scheme, which validates our reuse and recycling rate of 99.5% for the equipment we take back.

We offer all our customers a free take-back service for our machines, used printer cartridges, drums, fusers and developer (a substance used in our ‘production’ machines) to ensure they are reused and responsibly recycled rather than sent to landfill.

Our stakeholders, particularly our external stakeholders, believe Product Stewardship is material to the long- term success of our business.

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product recycling weight

FY16

572tonnes

product recycling weight

FY17

1,052tonnes

A comprehensive analysis of inventory within our warehouses resulted in a significant increase in weights of product recycled in 2017. This review resulted in a reduced warehousing footprint and provides Fuji Xerox New Zealand with increased visibility and data in regards to our current inventory. We are now in a favourable position regarding effective inventory management and will continue to look at ways to enhance our product stewardship responsibilities and extend our material’s lifecycle before sending products to be recycled.

86 Fuji Xerox New Zealand Sustainability Report 2018Fuji Xerox New Zealand Sustainability Report 201886

As a business we are proud of our Minister for the Environment accredited Product Stewardship Scheme. A lot of work has been put in to our take-back programme to ensure the scheme meets the needs of our customers and can help support their sustainability targets.

Whilst our scheme has a positive impact, it is one that will never be perfect as we are focused on continuous improvement to ensure the quality of the materials our products use are maximised in other circular solutions.

EMMA HARDING RISK AND COMPLIANCE MANAGER, SUSTAINABILITY AND CIRCULAR ECONOMY


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Natural resources

like bauxite, ore and oil are manufactured into

raw materials

Raw materials like steel, plastic, glass and rubber

are manufactured from natural

resources

Supply chain equipment is

manufactured from raw materials

Products contain new and

remanufactured parts and are designed for

disassembly

Sorting and disassembly

of equipment and cartridges for recovery

and recycling to minimise landfill

Fuji Xerox equipment

disassembled into up to 44 classifications of recyclable materials,

sold on for use in other products

Waste developer from our production

machines is extracted and sold as a metal commodity

to be used in products such as cars

TONERPAVE™ waste toner is

recovered from cartridges, mixed with waste engine

oil and other waste products to create TonerPave that reduces a road’s carbon footprint by up to 23%

over its life

Remanufacturing, recovery and reuse

of parts at our workshop

Collection of end-of-life

equipment and cartridges from the

customer

Recycling

99.5% of collected end-of-life equipment

and cartridges by third party suppliers

Customers can make use of a free collection and cartridge recycling

programme

Disposal to landfill (energy

recovery where possible). Landfill is minimised through resource recovery

Test paper from our workshop

is given a second life as notebooks

THE FUJI XEROX NEW ZEALAND PRODUCT STEWARDSHIP SCHEME:

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OUR PRODUCT STEWARDSHIP SCHEME Equipment

Our scheme means we take back, free of charge, all our equipment for reuse and recycling. We are known for our cutting-edge multi-function devices (MFDs) that print, photocopy and scan.

Our parent company in Japan designs our machines for easy disassembly. They also contain components made of recycled plastic.

We have a circular leasing model where we lease our MFDs to customers then collect them using our logistics partner, Mainfreight.

Where possible, our skilled technicians harvest components for reuse through remanufacturing. In this way, used MFDs are given a second life as “eco machines”. This makes sense for the planet, and our bottom-line.

MFDs and used parts that are at the end of their life are recycled by our recycling partner of several years – Sims Recycling Solutions and their associates. Materials are sorted into a maximum of 44 different classifications and sold as commodities through Sims’ downstream supply chain.

Toner Cartridges

Photocopiers still use the xerography process developed by Chester Carlson of Haloid Company, now better known as Xerox Corporation, in 1938. Xerography is used to duplicate a document by combining static electricity with a dry plastic chemical powder called “toner”.

Fuji Xerox New Zealand has recently partnered with Close the Loop, a fellow champion of the circular economy. Our toner cartridges (also known as ‘consumables’) are collected free of charge and sent to Close the Loop. The plastic is shredded and sold on the commodities market.

The waste toner is extracted, mixed with waste engine oil and other materials to create a low-carbon asphalt called TonerPave™.

TonerPave was developed by Close the Loop and Downer Australia. Australian studies show that by using TonerPave alongside recycling the reclaimed asphalt pavement (road surface), the carbon footprint of the road can be reduced by up to 23% over its life!

Are you a customer who would like to register for our toner cartridge collection scheme?

Learn more about the scheme here: www.fujixerox.co.nz/en/Sustainability/ MFE-Product-Stewardship-Scheme

To register, call 0800 FX LOOP or visit: fujixerox.closetheloop.co.nz/

Waste Developer

Our production-scale equipment uses developer, which has a high metal content, meaning that it is a great material that can be reused in other products.

Each machine contains a waste collection container, which captures up to 15 kilograms of waste developer.

Once full, the containers are sent to one of our recycling partners, NZ Toner, a small, highly innovative business in Christchurch.

NZ Toner empty the waste developer from the collection container. Once cleaned, the container is returned to our warehouse to be reused up to four times.

Meanwhile the developer is sold on to be used in other products such as the metal framing of a car.

Do you want to learn more about our product stewardship scheme and our commitment to the circular economy, or do you have any ideas on how we can further improve?

Get in touch, we’d love to hear from you: [email protected]

from landfill every year, through our take back

programme

divert on average

700tonnes

refurbishing our machines with reusable

spare parts, meaning

$700ksavings of over

Fuji Xeroxtoner used in

TonerPave, a low carbon asphalt

developed by our partners Close the Loop with

Downer Australia

Collaborating with our recycling

partners to achieve a recycling rate of over

99.5%of what we get back

Andhelping

our customers reach their internal

environmental targets


Standardisation We have various

components that are common to existing and

future models so they can be reused.

Strength We continuously

increase the use of high-rigidity materials to reduce damage during transport,

handling and use of equipment.

Durability We build components

designed for longer life to facilitate reuse.

Disassembly We design products for easier separation and

disassembly of short-life components.

Recyclability We select

materials that can be recycled easily. All plastic

components are marked to signify their composition, therefore making them

easier to recycle/ remanufacture.

WHAT CAN BE REMANUFACTURED IN AN OFFICE DEVICE?Fuji Xerox devices contain either recyclable or reusable parts. This diagram shows some of the parts, sub-assemblies and consumables that are typically remanufactured from a Fuji Xerox office device:

Fuser roll assembly

Monitor

Hole punch assembly

Stapler assembly

Circuit board

Book maker

Toner bottle

Circuit boardTransfer belt

Waste toner bottle

Paper feeder assemblies

Second bias transfer roller assembly

Paper transfer assembly

Optical imaging system

PRODUCT DESIGNWe ensure that sustainable practices are maintained across our supply chain and throughout the provision of any services to our customers. Our customers can be confident when choosing from our range of multi-function devices (MFDs) that they are designed with sustainability in mind.

The design stage of product development enable Fuji Xerox and our customers to meet environmental targets by incorporating technologies that:

• Eliminate the need to use hazardous materials• Enable low-energy consumption during the use of

the machines – all our office products exceed the ENERGY STAR® requirements

• Utilise innovative and energy-efficient toner and ink specifications.

Emulsion aggregation (EA) toner is used in Fuji Xerox devices and was developed after eight years of research. The toner is manufactured from liquids using 35% less power to produce than conventional toner and is engineered to generate over 50% less waste when used.

EA toner also displays image-fixing capabilities at low temperatures, requiring even less energy for printing. Besides saving energy and reducing waste, the EA toner offers high-quality printing, producing sharper images regardless of the smoothness of the paper’s surface.

Fuji Xerox adopts design standards that later facilitate the remanufacture and recycling of used machines and parts, as outlined to the right.

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THE TRANSITIONAlthough Fuji Xerox New Zealand have had a take back scheme in place for several years, the process was not as efficient as it could be. Over 4,000 contacts on the existing programme needed to be transitioned to the Close the Loop programme which involved a structured rollout and customer engagement and education.

NERIDA MORTLOCK GENERAL MANAGER, CLOSE THE LOOP, AUSTRALIA

Case Study: Partnering to Close the Loop

This is a story of collaboration; of how companies can work together utilising their individual strengths and capabilities, partnering to recover valuable resources destined for landfill to deliver social, environmental and economic value to our community.

Our collaboration with Fuji Xerox New Zealand has been mutually beneficial, providing significant improvements to Fuji Xerox’s printer cartridge collection programme as well as expanding Close the Loop’s business in New Zealand.

Together, Fuji Xerox and Close the Loop are focused on providing a great customer experience, being at the forefront of technology innovation in resource recovery and showcase circular solutions.

Beginning with Fuji Xerox’s largest customers, managing the transition to Close the Loop’s services and systems was a well-organised joint activity with the communications being central to ensuring that the migration was a seamless exercise for Fuji Xerox’s customers.

Close the Loop is the world’s leading resource recovery and sustainability solutions provider in imaging consumables. They are a certified Zero Waste to Landfill business and the founders behind TonerPave™, a low carbon asphalt.

PETER TAMBLYN BUSINESS DEVELOPMENT MANAGER, CLOSE THE LOOP, AUSTRALIA


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OUR COMMITMENT TO A CIRCULAR ECONOMY Fuji Xerox New Zealand aims to be a leader in the emerging circular economy. For us, a circular economy means an economy in which resources, including natural resources, materials and energy, are kept circulating without loss of quality. This is in contrast to the linear “take, make, waste” economy, which is disastrous for the planet.

To make this a reality, organisations must work together in new, strategic partnerships and be agile, adaptive and innovative. This is why we are proud to support and be a foundation partner of the Sustainable Business Network’s Circular Economy Accelerator.

Learn more at www.circulareconomy.org.nz

The Sustainable Business Network is delighted to be working with our long-standing member Fuji Xerox New Zealand. In late 2017 Fuji Xerox New Zealand became the first foundation partner of the Circular Economy Accelerator. This is a platform we established to accelerate the circular economy in New Zealand.

Foundation partners were selected based on their alignment to the CEA vision to make New Zealand an exemplar Circular Economy Nation. We have long been admirers of Fuji Xerox’s commitment to the circular economy, which can be seen in New Zealand by their Minister for the Environment accredited Product Stewardship Scheme.

We look forward to continuing our work together over the years to come as we look to accelerate the circular economy in New Zealand.

JAMES GRIFFIN GENERAL MANAGER, PROJECTS AND ADVISORY, SUSTAINABLE BUSINESS NETWORK

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SHARING GOOD PRACTICEIn early 2018 we created a Product Stewardship Roadmap with input from managers of other Accredited product stewardship schemes, the Ministry for the Environment, and the Sustainable Business Network.

We have made this roadmap open source so our customers and stakeholders can get started on the journey and make the roadmap their own.

To learn more about the Product Stewardship Roadmap, or to download a copy please go to www.fujixerox.co.nz/en/Sustainability/ Product-Stewardship-Roadmap

Peter Thomas, Managing Director of Fuji Xerox New Zealand at the Product Stewardship Roadmap Launch earlier in 2018; Peter highlighting a recent report* that revealed that Auckland alone could unlock up to $8.8 billion of growth by 2030 if it were to transition to a circular economy.

6 stepsto product

stewardship

Product StewardshipRoadmap

* Read the report The circular economy opportunity for Auckland www.circulareconomy.org.nz/aucklands-circular-economy-opportunity


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A ROADMAP TO PRODUCT STEWARDSHIP

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Understandthe impacts –

Review yourproduct's lifecycle

Measure yourprogress for continuousimprovement

Build a business caseand a team

Celebrate your success –Drive participation

6 stepsto product

stewardshipThese can be

done at any stageof a product’s life,by anyone in the

value chain.

Make the change and communicate – Integrate this work into yourbusiness and industry

Where can youmake a difference?

Start building solutions


SUSTAINABLE PROCUREMENTAt Fuji Xerox New Zealand, we believe sustainable procurement can drive sustainability innovation in the marketplace. Our Sustainable Procurement Strategy, which includes our Supplier Code of Conduct, allows us to manage our environmental, ethical and social risks; protect our business reputation; and make our resources go further. Ensuring sustainability is a key part of our tenders, and contracts encourage our suppliers to produce more sustainable goods and services. We take a partnership approach to working with our suppliers through engagement, training and ongoing support so we can improve and innovate together.

The Sustainable Procurement Strategy forms part of our Sustainability Management System. It is aligned

with the international standard for sustainable procurement ISO 20400 and the UK Government- developed Flexible Framework.

It uses the following approach:

• Embed sustainability into existing procurement processes as and when opportunities arise

• Emphasis rapid implementation, flexibility and a pragmatic approach

• Prioritise high risk / big wins: opportunities for sustainable procurement will diminish through the procurement cycle

Our Sustainable Procurement Strategy was developed in FY16 and the first phase implemented in FY17 when

Procurement Demonstrate leadership in sustainable procurement Implement Phase 2 of our Sustainable Procurement Strategy19

we were part of the Sustainable Business Network (SBN) Smart Procurement Leaders Group (we will be implementing Phase 2 in FY18). We were delighted to help SBN deliver training and materials, including a suite of sustainable procurement resources, for all New Zealand businesses including:

• SBN Procurement Process Guide – Key sustainability themes and entry-points throughout the procurement process

• SBN Briefing note – Diagnosing barriers and opportunities for sustainable procurement within New Zealand businesses

• SBN Hot topics – Social procurement.www.smartprocurement.org.nz/resources/

To learn more about our global procurement strategy visit: www.fujixerox.com/eng/company/csr/sr2018/suppliers/theme.html#anc01


19 TARGETS

19x19To be achieved

by FY19


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CASE STUDY: FUJI XEROX, OUR CORPORATE COMMITMENT TO SUSTAINABLE PAPER SOURCING Fuji Xerox seeks to demonstrate and promote compliance with government-recognised social and environmental standards and to identify and control the sources of the raw materials used in the manufacture of our paper products. In fact, in FY17 the company pledged our support for the Vancouver Declaration*, in partnership with the Forest Stewardship Council (FSC).

As a company positioned in the middle of the paper-use supply chain, Fuji Xerox has a corporate responsibility and influence over its suppliers and customers in paper use.

In 2004, Fuji Xerox established a paper procurement standard, setting key requirements for suppliers, including the traceability of raw materials and the environmental management of manufacturing plants.

The requirements were raised in 2012 to a comprehensive suppliers’ assessment against three key Corporate Social Responsibility (CSR) aspects: environmental conservation, rights of local residents and corporate ethics (including human rights). Suppliers are suspended if problems are found from the perspective of social or environmental sustainability.

The Fuji Xerox Paper Procurement Standard Assessment of Compliance: • ISO Management Standards • Fibre Sourcing • Carbon • Other Emissions to Air • Bleaching • Water Use • Emissions to Water • Waste to Landfill • Social Issues Management • Transparency

Forest Paper Reseller Printer/Broker/Retailer

End-user

Pulp

The Chain of Custody is the path taken by the raw materials harvested from a certified forest all the way through processing, production, distribution and printing until it is a final product to be sold to an end-user.

THE FUJI XEROX PAPER CHAIN OF CUSTODY

* To learn more about the Vancouver Declaration and our commitment to sustainable paper sourcing, please go to: www.fujixerox.co.nz/en/Company/Newsroom/News/2017/11/Fuji-Xerox-Steps-Up-to-Lead-in-Ethical-Paper

96 Fuji Xerox New Zealand Sustainability Report 2018Photographer: Teresa Wilkinson


OUR CUSTOMERS

WAIHO MĀ TE TANGATA E MIHI


OUR CAPABILITIES AND MARKET FOOTPRINT

We are the market leader in New Zealand in providing document services and digital print solutions.

Fuji Xerox provides state-of-the-art digital printing technologies, enterprise document solutions, business process outsourced services and supplies.

We help our customers solve their most complex document-related issues, streamline workflow and processes, improve employee productivity and consequently reduce operational costs for them.

For us at Fuji Xerox New Zealand, the following United Nations Sustainable Development Goals relate to the topics related to Our Customers: Please refer to page 131 for more detail on how we are contributing to each goal.

Our experience and market footprint include:

Serving 5 out of the top 11 Education organisations*

Partnering with >50% of New Zealand’s top organisations*

Servicing 3 out of the top 5 Energy organisations*

Serving 4 out of the top 6 Telecommunications organisations*

*Source: CIO 100 2017 RANKING (New Zealand)

Serving 13 out of the top 23 Government organisations*


Understanding our customer needs: This is our initial priority with all clients. Our sales team support the customer by understanding their business requirements and work with them to find a suitable print and/or digital solution that drives efficiencies and improve the customers’ work processes and business results. The sales team effectively become the client’s account manager and provide ongoing and dedicated support

Providing a solution: We work with each client to find an affordable solution for them. We provide flexibility and work to reduce our clients expenses while ensuring that they have the best solution that improves their business operations.

Sales fulfilment: An implementation specialist gets in contact with the customer to organise delivery instructions and confirms customer requirements and expectations regarding delivery, for example, network. Once the machines are shipped, a technician is sent onsite to ensure the machines are appropriately installed and running and we provide training.

Billing: Our EPBB management suite for multifunctional devices provides automated meter reading for effortless and accurate billing. Proactive incident alerts let us know about any potential issues we need to troubleshoot – before they impact users.

Service: Our service team of over 150 customer-facing staff, including engineers and analysts, is the largest in the country. Our comprehensive 24/7 support model means that 50% of all issues are resolved remotely. We provide online self-help support, tele-support, remote technical support and onsite service. When customers call our people, they get to talk to a technical specialist immediately. There’s no call back or wait time.

Ongoing relationship: As the contract comes up renewal, the Account Manager reviews the customer’s contract and services to ensure the customer is provided with best solution to further support their business needs. We have a take-back policy which offers our customer the opportunity to take advantage of our free printer/copier, cartridge, and parts collection service. This contributes to our zero-waste-to-landfill commitment to diverting 99.7% of our product waste to re-use and recycling. Our friendly Support Team work with the customer throughout the life of the contract should they have any questions. To ensure continuous improvement of customer satisfaction, we conduct annual surveys to capture the voice of our customers. 1.

2.

3. 4.

5.

6.

THE CUSTOMER EXPERIENCE

CUSTOMER SATISFACTIONAt Fuji Xerox New Zealand, we are focused on customer satisfaction.

This could not have been demonstrated more clearly than when our colleagues across the country told us so during the stakeholder materiality assessment that helped us determine our stakeholders’ key topics and concerns. (Please refer to the Materiality section of this report pages 120–127 for more details on how these topics were identified).

Customer satisfaction was the most highly rated topic of key importance to our employees and considered of utmost importance to the future of our business.

It was rated more highly among our team than remuneration, employee engagement, and training. This is no doubt because each and every employee at Fuji Xerox New Zealand understands that it is customer satisfaction that drives business success.

In a recent customer survey, we were heartened to see that, despite some residual negative association with our brand a result of the historic inappropriate accounting issues (discussed in detail in the Ethics section of this report on pages 31–41), our customers remain very satisfied with our service and technologies. We are confident that, as we work hard to rebuild trust in our brand, this will continue to improve.

Our customer service team is the engine that drives customer satisfaction, managing over 6,500 service requests each month. More than 30% are resolved remotely through our team in the Technical Support Centre, while 70% require onsite support from our mobile technicians. Our team of highly skilled technicians, each with an average of 13 years of service are currently achieving an average onsite response time of just over 3 hours. Our number one priority is to minimise downtime, and maximise customer satisfaction.

BEVAN MCDONALDGM CUSTOMER SERVICE

Sales support team members are an integral part of the Fuji Xerox sales order process. Our team collaborates with multiple departments to review, process and follow-up any sales orders or queries. Efficiency, accuracy and communication are key qualities we pride ourselves on as we work towards increasing satisfaction for both our internal and external Fuji Xerox New Zealand customer experience.

RUTH CONSTANTINEGM SALES OPERATIONS

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19 TARGETS

19x19To be achieved

by FY19


Improve our customer service at every touchpoint Undertake a benchmark study on customer relationship management

Help customers to achieve their sustainability goals Develop a sustainability engagement plan to support our customers

13

14

The market that which we operate in is very competitive, so ensuring high levels of customer satisfaction is a key priority for us. Our regional head office in Singapore conduct annual surveys across the Asia-Pacific region to measure customer satisfaction levels for Fuji Xerox and also our main competitors.

The survey is run by a leading market research agency and looks at the key components of customer satisfaction, for example product quality,

One of our customer service objectives for FY18 is to undertake a Voice of Customer benchmark study into customer relationship management. Later in 2018, we will be inviting a cross section of customers to take part in the study to provide feedback on their customer experience to help us identify areas that we can continue to improve.

FY16

81.6%

FY17

81.2%

service capability, online information and remote service support and calculates an overall satisfaction rating. In FY17 we recorded an overall satisfaction rating of 81.2%.

Although there was significant adverse media attention and organisational restructures faced by Fuji Xerox New Zealand during FY17, there was only a marginal decline in customer satisfaction from the FY16 benchmark of 81.6% to 81.2%.



It is our goal to help build the new Fuji Xerox with passionate service while championing our Team Charter. We achieve this by fulfilling sales orders to the customer through planning, organising, collaboration and teamwork between all departments and parties. To fulfil every order in a professional, timely manner and take every opportunity with the customer to improve and enhance their ongoing experience with Fuji Xerox New Zealand are our primary goals.

STEVE LUSHSTRATEGIC PROJECT FULFILMENT MANAGER


WHAT WE ARE DOING TO IMPROVE OUR CUSTOMER SATISFACTION While customer satisfaction is the responsibility of all our employees, we have a dedicated customer service team headed by our General Manager of Customer Service who sits on our Senior Leadership Team. In addition, a brand new role of Customer Care Manager was created in FY16 to ensure support to our customers at any point in their relationship with Fuji Xerox

New Zealand. Customer satisfaction is an absolute priority for our business. Our Customer Care Manager reports on our customer service directly to the Senior Leadership Team on a monthly basis.

In addition, we offer the following support to our customers:

• 24-hour support from our contact centre based in Kuala Lumpur, Malaysia. This includes a dedicated New Zealand team who work New Zealand office hours. We have sent New Zealand champions to Kuala Lumpur, where they are now based, to train the contact centre team in our local processes.

• As part of this service, we offer an on-call “triage” service to resolve customer issues over the phone. This is proving very successful: as at the end of FY17, an average of 82% of software calls were resolved in this manner, with the remaining calls requiring a technician visit.

• We have new cadets who undertake ongoing customer service training.

• Our service technicians have a mobile app that is centrally managed and key performance indicators (KPIs) to ensure improved response times.

• Auto-ordering of consumables and automated meter readings to provide more convenience for our customers.

• GPS in our service technicians’ cars, installed in FY16 after significant debate, have helped to see how far technicians are from customer sites, enabling more accurate estimated times of arrival, improved response times and therefore a better service for our customers. Improved efficiency in journey planning has a positive effect on our travel carbon footprint, as well as helping to reduce driver fatigue.

• Our device management solution (EP-BB) provides our customers with automated meter readings and consumables management. Benefits include greater accuracy and consistency of monthly billing, and automated replenishment of consumables reduces customer involvement. As an added benefit, the EP-BB system will shortly be providing intelligent feedback to assist our Remote Technical Support Team to proactively diagnose faults, which can either be resolved remotely or a technician dispatched to resolve onsite often before the machine stops operating.

• We recently updated our service catalogue and published it online. Our customers now have easy access to a comprehensive overview of the services that are available to them under their service agreement or additional services they wish to purchase.

Having recently taken on the role of Customer Service Performance Manager, working with my colleagues to launch the Customer Service Performance Management Framework, is something I am very passionate about. The opportunities with the launch of the framework for continued improvements and increased levels of efficiency with clear objectives that align directly withFuji Xerox New Zealand’s core objectives and goals is a welcome change. Working with various teams and individuals across the business on our goals and KPIs is an exciting and challenging experience, and ultimately helps to improve the customer experience overall.

KIERON PHILLIPSCUSTOMER SERVICE PERFORMANCE MANAGER


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DELIVERING EXCEPTIONAL CUSTOMER SUPPORT

Customer service operations continues to look for ways to improve efficiency and productivity. Our focus is to improve response and resolution times for service requests, therefore improving the customer experience overall.

Remote Device Management for Proactive Resolution

Electronic Partnership Broadband (EP-BB) Production Remote Services (PRS)

Proactive monitoring of faults and consumables to minimise downtime of machines. Provides usage and eco reports.

Track, monitor and forecast the health of digital production printers so that likely problems can be solved before they become incidents.

e-Support Services for Rapid Service Request Resolution

Online Service and Support

Technical Support Centre (TSC)

• 24/7 access to Online Support Centre (OSC)

• Tele-support via Customer Support Centre (CSC)

Solution Support Centre (SSC)

• Web-based remote support for real-time resolution

• Engineers to provide onsite support

• Premium service that tailors the support services to meet customers’ solutions and business process needs

Remote Device Management for Proactive Resolution

Fuji Xerox is the only company of its kind with the internationally recognised Service Capability and Performance Certification, which allows our customer support operation to be benchmarked against worldwide best practice within the technical support industry.

The availability of remote support helps to achieve this, as well as reducing the demand for field-based technicians. Ultimately, the combination of remote and field-based support ensures that the customer’s service request is resolved in a timely fashion.

The case studies at the end of this section highlight the different kinds of products and services that we provide our diverse cross section of customers.

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Released in December 2017, the Fuji Xerox Iridesse digital print press took the local print market by surprise with innovations such as its six toner stations and its ability to print metallic.

Fuzed, one of the country’s most innovative and award-winning printers has stepped up to install the first Iridesse in Australasia, and general manager Matt Mills says the company sees the new printer fitting well with Fuzed’s strategy.

He says, “We have a number of strong reasons for installing the Iridesse relating to its technology but the main point I want to make is that it adds extra strings to our bow.”

The company’s bow already has considerable strength. It produces a diverse range of award-winning print products. However, Mills could see obvious benefits in bringing the Iridesse on board such as the metallic colours, which bring a greater number of design applications. The Iridesse offers metallic colours, including metallic blue, metallic green, blue gold and red-gold, by placing CMYK on underlying silver or gold dry ink.

Case Study: Fuzed expands print options with IridesseMills add, “But that is not all. We can now run it in one pass. That saves us time and money; one click as opposed to two clicks.”

He sees another feature, the white toner, as a winner. “The white will bring benefits. We have good reasons to place the white. The white gives us greater capacity – the opacity in a single pass and on a greater range of stocks. The Iridesse also offers the longer sheets (for banner printing, it offers one-sided printing up to 1,200 mm and two-sided up to 729 mm), which our competitors have and we didn’t until now. This gives us a greater product range as well.”

Digital expansion: Fuji Xerox says its new printer seriously expands the boundaries for digital print production.

Strong bow: Matt Mills general manager at Fuzed says the Fuji Xerox Iridesse adds another string to the company’s bow.

Hit for six: The Iridesse will print six colours at 120 pages per minute on stock rated from 52 to 400gsm.

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Capital Environmental Services (CES) started as a government testing laboratory in the 1970s, but was privatised in late 1996. CES is an IANZ-accredited laboratory offering asbestos analytical and environmental consulting. It provides professional and recognised best practice services to homeowners, commercial property owners, businesses and corporations. It is 100% Kiwi owned and operated and is located in the Callaghan Institute Science Campus in Gracefield, Lower Hutt.

The company has 15 staff including a two-person office administration team, and is growing. All CES business documentation is stored in Dropbox (a leading cloud- based collaboration and storage platform).

Case Study: Fuji Xerox passes the CES efficiency test with Smart Work GatewayThe busy admin team manages the accounts payable and receivable processing, as well as helping to generate 150 to 200 customer-commissioned reports every week from the information in CES’s Microsoft Access database. The report generation process was time-intensive and tedious.

Some smart thinking by the Fuji Xerox business consultant meant CES saved some serious admin time and effort on their document handling.

The previously time-consuming reports are turned into CES branded PDFs, straight from the Access database. The solution implemented by Fuji Xerox allows the reports (or any documents for that matter) to be printed directly to PDF format. This cut out several steps for the

admin team. Electronic signatures are also incorporated and this solution has saved the CES admin team up to 30 hours a week in administration time, freeing up more time to spend on other tasks including accounts.

The other solution implemented by Fuji Xerox is the scanning and saving of documents directly from Fuji Xerox ApeosPort VI to Dropbox. The eighth generation Fuji Xerox ApeosPort VI utilises the Smart Work Gateway (SWG) concept. SWG saves time by scanning directly from users’ devices to any of the world’s most popular cloud storage providers. With a quick tutorial from Fuji Xerox, the CES team learned to search for documents from the multi-function printer and print directly from Dropbox.

Fuji Xerox team demonstrating how scan-to-cloud function works. From left: A happy partnership - Mark Jacobson (Fuji Xerox), Monica Singe (CES) and Ross Wilkinson (Fuji Xerox)


About Trustpower

Trustpower Limited is a New Zealand stock-exchange- listed utilities company, that operates in electricity generation, retail and as an internet service provider. Trustpower is New Zealand’s fifth largest electricity generator and the fourth largest electricity retailer, with around 280,000 electricity customer connections, 33,000 gas customer connections and 90,000 telecommunications customer connections.

Situation

Alice Thomson (Head of Delivery at Trustpower) played a central role in modernising work practices at the company by initiating a Paper Intelligence project to reduce dependence on printed materials as part of the business’s shift to activity-based working when they relocated the Tauranga head office.

Trustpower’s approach is process efficiency. “Whenever you have consistent, repetitive, mind-numbing tasks where people are doing little more than copying and pasting from one application to another or doing data transfers without doing anything with the data, you just know things could be done better and faster, using technology,” she says.

Traditional fixes for tasks of this kind is to bring in and train up another person to help. “That generally means you now have two or more people incredibly bored with the work they’re doing,” says Thomson.

Case Study: Meet Trustpower’s robot workforceSolution

Trustpower and Fuji Xerox New Zealand have worked together on multiple business-process-automation initiatives for many years.

One of the recent steps Trustpower has taken towards the space age ways of working is the introduction of Robotics Process Automation (RPA), which easily automates repetitive, time-consuming tasks and substantially accelerates the pace of business. Fuji Xerox and Trustpower worked together to implement this solution.

“Once we’d seen RPA in action, we realised it can have a huge impact on business today,” says Thomson.

“With the growth in customer numbers in our internet service provider business, there’s just no way we would have kept up without RPA. And when you have this key process automated, your team’s work gets more efficient; people are no longer sitting around doing work that adds no value.”

Alice Thomson (Head of Delivery at Trustpower)

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The last 18 months have been the most difficult period in the company’s history and we must do all we can to make sure what happened is never repeated. From a brand point of view, our reputation took a hit, but world-class brands endure the good times and the bad. The essence of Fuji Xerox’s brand with world-class products and services, a talented and committed workforce coupled with unbelievable loyalty from our customers provides a great platform for Fuji Xerox New Zealand to look forward with optimism to the future.

STEVEN CAUNCEGM BRAND & COMMUNICATIONS

Photographer: Simon Piper

Photographer: Simon Piper

OUR COMMUNITY

TOITŪ TE KUPU, TOITŪ TE MANA, TOITŪ TE WHENUA


GLOBAL, YET LOCALHere in New Zealand, we believe our business should be good for society at large, and supporting the communities where we operate is a core pillar of how we do things. We support a diverse range of charitable, education and sporting organisations that are the fabric of New Zealand society.

As a global organization, we have a deep level of commitment to contributing to a better society. Locally, this translates into being supportive through supplying technology to help reduce the demands on hard-won funding and financial support when needed. But in true Kiwi style, we also like to participate with direct hands-on assistance. Our attitude is what makes the difference. Money always helps, but investing time and knowledge and taking “ownership” in the future of our community is, in our eyes, just as important.

For us at Fuji Xerox New Zealand, the following United Nations Sustainable Development Goals relate to the topics around Our Community:Please refer to page 131 for more detail on how we are contributing to each goal.

We have always proudly contributed to and supported a wide range of local activities and organisations and will continue to do so. We don’t just make funding available; as a company we take an active part in initiating change.

VOLUNTEERING IN OUR LOCAL COMMUNITIESOur staff around the country take an active role in giving back to the community by taking advantage of their annual paid volunteer day.

Employees are free to choose activities that their local community needs help with, and they head out as a team to get stuck in. Activities that staff have engaged in include tree planting, beach clean-ups, contributing to projects restoring native wildlife, preparing school lunches for children in need or providing volunteer support at local charities.

REPORTED V OLU N T EER H

OURS

**

FY17*

447

^including educational programmes, sponsorships, and in-kind donations

* Data not previously recorded in payroll system prior to Dec 2016

** Please note: not all hours have been recorded so we expect this number to be significantly higher in 2020 given that all employees are allocated a day a

year to volunteer.

PER ANNUM INVESTED IN THE COMMUNITY ACROSS NEW ZEALAND^

$1.6mApprox.

Community Relations Work in partnership with NZ businesses, organisations and social enterprises

Launch a partnership project with defined community benefit and sustainability innovation outcomes18

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VOLUNTEERING & TEAM BUILDING GOES HAND IN HANDOur Managed Services team in Auckland who volunteered on Rotoroa Island during the 2017 New Zealand Conservation Week.

“Managed Services had a fantastic day on Rotoroa Island! We all had our dedicated teams, colours and mascots, and the day was full of laughs, team building and helping out our native wildlife.” Managed Services team member

The team received a lovely message from Kevin, the Rotoroa Island Caregiver, the following week:

“Thanks for coming out. Ladies Bay looks great, and it was fantastic to get the nikau palms in the ground... Your team did make a difference... one of the Dotterel nest eggs hatched yesterday. We can see at least two chicks scurrying about, so thank you all for making such a great impact!”

WELLINGTON TEAM HELPS PLANT 1,600 NATIVE TREESTeam members from our Wellington branch went on a corporate tree planting drive in September 2017, where they helped to plant 1,600 native trees for the Greater Wellington Regional Council.

“We had a great day out planting native trees at Queen Elizabeth Park in Paekakariki. Seventeen staff from a variety of departments in Wellington (including Enterprise Consulting, Managed Services, Sales and Engineering) spent most of the day assisting the Greater Wellington Regional Council rangers and the permanent QE Park volunteers with their tree planting. We were joined by about ten people from the Ministry of Primary Industries and in total, 1,600 trees were planted. The QE park volunteers were grateful for the assistance as they had recently had several corporates not turn up for planting days, so they needed to get a large number of plants into the ground before it got too dry.” Simon Piper from the Fuji Xerox New Zealand Enterprise Consulting team


Our degree of involvement with New Zealand schools is wide and varied, but purposeful. We are proud to have connected with teachers, students and the communities they live in to make a measurable difference. To make this happen, Fuji Xerox

New Zealand commits around $500,000 a year to generating opportunities for the young people of New Zealand. This money goes towards supporting school programmes that focus specifically on helping and inspiring our young people to reach their potential and find productive ways to realise their dreams.

We support a diverse range of educational-focused organisations, such as the Springboard Trust, the Association of Boys Schools Network, The Independent Schools of New Zealand, Teach First NZ, Association of Cambridge Schools in NZ, Auckland Primary Principals’ Association and IB Schools of New Zealand.

We have also created our own programmes, and the one we are most proud of is the Next Generation Leaders (NGL) Programme, which we ran over four years from 2012–2016.

We partnered with a select number of schools around the country to deliver a bespoke programme aimed at the next generation of Kiwi leaders. Endorsed by the Sir Peter Blake Trust, the programme took an intake of 30 students each year, aged 16–17.

COMMITMENT TO EDUCATIONEach student was nominated by their school in recognition of their leadership qualities.

During three one-day events spread throughout the year, the programme delivered inspiration, motivation and career path guidance for the young attendees. The intent of our NGL programme was for all 30 students to come away with a sense of their own leadership potential and a passion for developing it.

Just wanted to send a short message to say THANK YOU! to everyone involved in our Fuji Xerox experience. We are so lucky to have been asked to pilot your programme, and our students returned to school absolutely buzzing! The day was so well-organised and targeted well to students.

It’s a great programme run by passionate people, which will make a difference in how young people understand what it means to “leave the planet better than we found it,” and what they can do to contribute to this. I know it has stuck with our kids. They are already asking when we can create our own notebooks and recycle our paper at school!

SHEA KELLY SENIOR ASSOCIATE PRINCIPAL, MANUREWA WEST PRIMARY SCHOOL

COLLABORATING FOR A CIRCULAR ECONOMY: FUJI XEROX NEW ZEALAND, MANUREWA WEST PRIMARY SCHOOL & AUCKLAND COUNCIL’S SUSTAINABLE SCHOOLS INITIATIVE The Sustainability Team engaged with Auckland Council as part of the council’s effort to find corporate partners to help support their environmental education outreach for schools as part of the Auckland Council’s Sustainable Schools Initiative.

We were tasked with running a pilot session at our workshop facility in Mangere, Auckland, to teach children how business can contribute to the circular economy. To demonstrate how we take back and refurbish our machines before recycling them (rather than throwing valuable resources into landfill), we invited a group of senior students from Manurewa West Primary School to take part in our pilot day.

The 35 students, aged 10–11, from their school leadership group was given a tour of our showrooms, and they made their own notebooks out of the waste paper generated from the test runs of our new and second-hand machines. A highlight was the opportunity for the students to grab a screwdriver and take apart end-of-life machines – a great way to inspire future engineers! The girls particularly enjoyed getting involved. The most engaged students were given printed T-shirts, and the school was presented with a wooden plaque, cut and printed on some of the technology we sell.

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We like to take a well-rounded approach to everything we do, and that includes a healthy interest in a range of sports at both local and international levels.

As official suppliers to Emirates Team New Zealand, the next America’s Cup can’t come round soon enough for us. Supporting an event that is so near and dear to the hearts of many Kiwis makes it even more exciting.

We have also been the document partner for Tennis Auckland for more than 10 years, including sponsorship of the ASB Classic tournament. Around the country, we have partnerships in place with The Chiefs and The Highlanders rugby franchises and also support Bay of Plenty and Tasman rugby. In Auckland, we collaborate with the New Zealand Breakers professional basketball team and the Northern Mystics netball team, who both share our passion for community development.

COMMITMENT TO SPORTPARTNERING WITH SCHOOLS WITH SPORTS HEROESAnnually, we have the opportunity to partner with Netball North Harbour and the Northern Mystics netball team to give high school netball teams the opportunity to meet their sporting heroes and participate in a fun-filled day of activity. This partnership is a fantastic way for us to engage with local schools to help inspire the next generation and future sporting heroes. Over 50 students from five schools are invited to participate in the event each year.

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We are proud to have a long-standing community sponsorship of the Westpac Rescue Helicopters service. The service aims to rescue and deliver people to hospital within the magical “golden hour”, a timeframe that can double a patients’ chances of survival.

Fundraising and Marketing General Manager for Westpac Rescue Helicopters, John Hooper, says “Fuji Xerox has been providing the Trust with state-of-the-art office equipment for 20 years, allowing us to effectively communicate with our vital supporters. Over this time, we have seen Fuji Xerox’s staff become fully engaged with the trust to the point where many individual staff members are now those vital supporters themselves.”

With our assistance, this charitable Wellington Life Flight Trust operates the Life Flight Air Ambulance Service and the Wellington-based Westpac Rescue Helicopter. These services help many people in the community, from premature babies who require specialist hospital treatment through to accident victims who have been injured in remote locations.

Variety New Zealand is another of the organisations we support. Known as The Children’s Charity, Variety hosts a number of annual events designed to put the “fun” in fundraising. These events raise millions of dollars to help sick and disadvantaged children.

COMMITMENT TO CHARITYSome of the team from Auckland helping out the Child Cancer Foundation and wrapping Christmas presents donated to the foundation.

Through bake sales, good old Kiwi raffles and lunch time sausage sizzles in the warmer months, we raise funds for charities that are close to the heart of those who work at Fuji Xerox New Zealand.


ABOUT THIS REPORTPhotographer: Terry Duffield


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OUR REPORT This report covers two annual periods: • the financial year ending 31 March 2017 (FY16)• the financial year ending 31 March 2018 (FY17)

The two-year reporting window reflects the transition period that we are emerging from as a business and allows us to document relevant areas of performance across our organisation.

Short-term objectives and targets have been set for the financial year starting 1 April 2018 (FY18) and ending 31 March 2020 (FY19).

These objectives and targets can be viewed on page 10-11, and are referred to as our “19 x 19 targets” throughout this report. As this is our inaugural sustainability report, there are no significant changes in material topics or restatements from previous reporting periods.

We intend to release a sustainability report in accordance with the GRI Standards every two years, with full reporting on the preceding 24-month period. Interim addendum reports will report on performance against our material topics and our corporate targets (and will be part of Fuji Xerox’s global sustainability report).

REPORT SCOPE The scope of this report includes the Fuji Xerox New Zealand operating company and includes:

• Fuji Xerox New Zealand Ltd • Our branches and service locations across

New Zealand• Fuji Xerox New Zealand has no joint ventures• Fuji Xerox Finance Ltd

The scope of this report excludes Fuji Xerox Document Management Solutions Ltd, which at the time of writing were separate Fuji Xerox Asia-Pacific Pte. Ltd. entities.

Consolidated financial statements of Fuji Xerox New Zealand are held in public record at the Companies Office and can be downloaded online at www.companiesoffice.govt.nz

Photographer: Terry Duffield


The scope of this report excludes the environmental footprint of our product logistics, diesel generator use and the managed services we provide at some customer sites. We recognise that the outsourcing of business processes such as print, design, mail and office services has a footprint and we have an obligation to manage processes responsibly. We are addressing this by adhering to our sustainability policy, our Supplier Code of Conduct, and customer-facing environmental and health and safety procedures.

While the scope of this report is focused on our operations in New Zealand, we also touch on global mega-trends such as declining print and our broader global impacts. These impacts extend through an international supply chain, which includes the manufacture of our products in Japan, China, Korea, Singapore, Vietnam, Europe and North America; the sourcing of our paper products from various global suppliers; and the international logistics associated with our product transport.

Our parent company, Fuji Xerox Co., Ltd, also produces a sustainability report that incorporates the sustainability performance of all Fuji Xerox affiliates.

See www.fujixerox.com/eng/company/csr for or more information, and to download the latest Fuji Xerox sustainability reports.

SUSTAINABILITY ASSURANCEGiven this is our first GRI-accordance sustainability report, we did not seek external assurance. However, we have consulted five independent third party businesses who offer services in sustainability report writing. In addition, BraveGen and Proxima in New Zealand, together with, the Institute of Business Ethics, the Sustainable Business Council and an international consultancy firm, provided feedback, which we incorporated, during the draft review process.

This report was submitted to the GRI in Netherlands to undertake their disclosure review service, where we received feedback from GRI’s Services Team on a selection of disclosures focused on our approach towards stakeholder engagement and materiality assessment. The intention of the review was to implement the feedback to the highest extent possible in the current reporting cycle. Where not feasible to implement in the current cycle, we have considered the feedback for future reporting cycles.

As signatories of the Climate Leaders Coalition (page 81), we want to ensure that we are producing robust data around our carbon footprint that guides our long term environmental targets. BraveGen supported us to establish our baseline footprint data which can be reviewed in the Our Footprint section.

We have reported data to the best of our knowledge, in good faith and in accordance with agreed procedures, through our company’s sustainability reporting approval process. This has involved the report being reviewed by our regional Fuji Xerox Asia-Pacific Operations (APO) office in Singapore, as well as, our corporate headquarters, Fuji Xerox Co. Ltd. in Tokyo, Japan, (referred to as our parent company or Fuji Xerox throughout this report).

YOUR FEEDBACK We would appreciate your feedback and invite our readers to share any queries, comments, suggestions and thoughts on this report by contacting us at [email protected]

For the Disclosure Review Service, GRI reviewed the following 10 disclosures from GRI 102: General Disclosures 2016 (102-15, 102-40, 102-41, 102-42, 102-43, 102-44, 102-46, 102-47, 102-54, 102-55). The service was performed on the English version of the report.


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Photographer: Faith Babendra


MATERIALITYDefining our material issues, topic boundaries and report content was a rigorous process that was undertaken between August 2015 and October 2017.

Please see the diagram on pages 122-123 for the timeline of stakeholder engagement activities to determine our material topics.

Our materiality determination process involved desktop research of industry trends, mega-trends and the review of industry and best practice sustainability reports.We also hosted internal and external stakeholder engagement workshops, conducted in-depth interviews with over 10% of our workforce and carried out qualitative surveys of internal and external stakeholders.In defining our report content, we followed the GRI Standard’s (GRI 101) principles of sustainability context,

stakeholder inclusiveness, materiality and completeness. In practical terms, this means we considered our operations and impacts as a document management technology and services provider within national, regional and global contexts. We made extensive efforts to identify, include and engage with our stakeholders in determining what to report. We followed a rigorous and robust process to assess which topics are material for reporting and to ensure we provided a complete picture of our impacts and responses to those topics.

Topics refined into sustainability framework

Topics ranked through workshops and

confidential interviews

Material topics identified

Topics sense-checked against survey results

Elasticity test to validate data and ensure representation

The Fuji Xerox New Zealand Materiality Assessment Methodology

Stakeholder map developed

Key stakeholder topics and concerns determined


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IDENTIFYING & SELECTING STAKEHOLDERS The materiality assessment process undertaken by Fuji Xerox New Zealand was our first and involved extensive stakeholder engagement. The starting point was a comprehensive stakeholder map that was formed off the basis of the stakeholder salience process*.The map enabled us to reflect the diverse range of relationships Fuji Xerox New Zealand has with:

• Academia• Certifying bodies• Customers• Employees• Industry experts• Iwi• Local communities• Government • Media• Non-governmental

organisations

• Peer organisations• Regulatory bodies• Shareholders• Sponsor recipients• Suppliers• Sustainability experts /

membership groups• Unions• Young People

(Generations Y and Z)

*Stakeholder Salience: Mapping of stakeholders based on their degree of power, legitimacy and urgency

IDENTIFYING KEY SUSTAINABILITY TOPICS In 2015, a comprehensive review was conducted of our operations and key documentation to understand the context in which Fuji Xerox New Zealand operates.

The following documentation was reviewed: • Global mega-trends as defined by the Cambridge

Institute for Sustainability Leadership (CISL) and Ernst and Young

• The United Nations Sustainable Development Goals (SDGs)

• External benchmarking and reporting databases such as the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB) and the Dow Jones Sustainability Indices (DJSI)

• FY15 and FY16 Fuji Xerox sustainability report and other Fuji Xerox regional reports

• Peer and competitor sustainability reports • Previous sustainability materiality interviews with

management conducted by the Sustainability Team

Following this review and engagement with employees, it was possible to establish a “long list” of 23 key concerns and topics that were identified as material across the organisation (see page 125).

This long list of topics was ultimately informed by the initial engagement with employees at the beginning of the materiality assessment process to determine their key topics and concerns.

Following the determination of the long list of topics, the Sustainability Team then undertook a range of stakeholder engagement activities to determine and refine their key topics and concerns raised into a sustainability framework. These are detailed on pages 8 & 9 of this report. This process ultimately informed our topic boundaries for our report and assisted with identifying our key material topics. The top five material topics determined out of this process were:

• Ethics• Product Stewardship• Technology & Innovation• Customer Satisfaction• Energy & Carbon

The materiality process was invaluable to help us better understand the priorities of our internal and external stakeholders. The final list of priority material topics resonated well with the Senior Leadership Team, and were supported by the Sustainability Team.


STAKEHOLDER ENGAGEMENT ACTIVITY TO DETERMINE AND REFINE KEY MATERIAL TOPICS...

August 2015Materiality Workshop with Proxima Consulting & Fuji Xerox New Zealand Sustainability Team

• Stakeholder mapping: Identifying Fuji Xerox New Zealand stakeholders and their interests, issues and relationships with Fuji Xerox New Zealand

• Identifying existing sustainability issues of importance to Fuji Xerox New Zealand in its current context

October 2015 – February 2016Sustainability team begins internal engagements (materiality interviews) with management to determine key topics and concerns

• This, together with the mega-trends desktop research conducted later helps to establish the long-list of topics which later gets refined into our Sustainability Framework

Early 2016Sustainability team begins intensive desktop research on global mega-trends, benchmarking and reporting databases, the UN SDGs, and key documentation (including Fuji Xerox global and local sustainability reports and supporting collateral)

• This, together with the initial materiality interviews with management, helps to establish the long list of topics which later gets refined into our sustainability framework

November 2016 & November 2017Employee satisfaction survey of all Fuji Xerox New Zealand employees

• Results & verbatim comments analysed to help ensure employees’ voices were part of the materiality process

2016 – 2017Identification of key topics and concerns raised by media & other interested parties


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May 2017External stakeholder workshop independently facilitated by Proxima Consulting

• Attendees: individuals representing various external stakeholder groups, including customers, suppliers, peer organisations, sustainability membership organisations, NGOs, government and iwi

April – May 2017Internal Corporate Social Responsibility (CSR) stakeholder survey conducted by Fuji Xerox Asia-Pacific Operations

• Employees of Fuji Xerox New Zealand

April – June 2017External CSR stakeholder survey conducted by Fuji Xerox Asia Pacific Operations

• Customers and external stakeholders including industry bodies

May - October 2017Sustainability Review Interviews with staff

Internal interviews conducted by Sustainability Team with over 10% of Fuji Xerox New Zealand’s workforce; a sample representing staff at all levels across the business, at every branch across New Zealand and all departments

November 2017 – February 2018Consolidation of all stakeholder engagement findings to determine key topics and concerns raised by different stakeholder groups and identify material topics for 2018 Sustainability Report

April 2017Internal stakeholder workshop independently facilitated by Proxima Consulting

• Attendees: employees from different departments and varying levels of seniority and ages. They included a 50% representation of females and representatives of staff from non-European descent


STAKEHOLDER ENGAGEMENT At workshops and confidential employee interviews, attendees were asked to rank the sustainability framework topics twice. Given that Fuji Xerox New Zealand was established in New Zealand over 50 years ago, and we look forward to being a successful New Zealand business over the next 50 years, participants and interviewees were first asked what was the most important (material) topic to them as individuals, that is, their current priorities. They were then asked to identify which topics the business should be focusing on in the next 3–5 years in order to be a successful, trusted business over the next 50 years.

Interviewees were, in addition, asked to score the business’s current performance for each topic out of 5, with 5 being excellent and 1 being poor. The scores were collated, with all employees given equal weighting.

IDENTIFYING AND VALIDATING MATERIAL TOPICS The internal and external stakeholder workshops and interviews formed the basis of our materiality assessment and sustainability framework. Responses were collated and reviewed by Fuji Xerox New Zealand’s Sustainability Team to further assess the materiality of each topic.

The survey results were primarily used to sense-check the heavily qualitative data, to ensure that all material topics were identified and captured. The scores from the stakeholder workshops and interviews were aggregated and normalised and formed the basis of our materiality matrix. An elasticity test was then performed on data from specific business units to validate the data and ensure that all views were fairly represented. Overall, this analysis further supported the results of our materiality assessment.

We recognise that all topics in our sustainability framework are important to our business. We have therefore defined our material topics taking into consideration the significance of our business’ economic, environmental and social impacts and how each topic might substantively influence the assessments and decisions of our stakeholders.

This report focuses on our top five material topics and details our management approach, boundaries, objectives and targets for each of these five topics. However, the report also explores our approach to many of the remaining topics in our sustainability framework.

Photos taken at our external stakeholder engagement workshop held in May 2017 to help refine the long list of topics initially identified into our sustainability framework.


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TOPICS AND CONCERNS RAISED BY STAKEHOLDERS...

Marketing and labelling

Changing business context

Financial performance

Info security / customer

privacy

Sustainable procurement

Skills & training

Community relations

Transport(logistics & travel)

Hazardous chemicals

Material sourcing

Health and safety

Customer satisfaction

Changing technology

Leadership development

Comms: internal and

externalEquality

and diversityEthical

business practices(anti-bribery & corruption)

Energy and carbon

Supply chain management

Employee learning and development

Product stewardship

and recycling

Business continuity

Improving business

processes

OUR ‘LONG LIST’ OF TOPICS*

*The 23 topics in the long list, don’t marry up exactly to the topics in our sustainability framework. During the refining process, we found that some topics could be merged together, while others needed to be elaborated on or new ones added. For example, Skills & Training was merged with Employee Learning & Development, while Remuneration, Employee Engagement and Quality & Safety were topics that needed to be added once further stakeholder engagement was undertaken.


KEY TOPICS AND CONCERNS RAISED BY VARIOUS STAKEHOLDER GROUPS

RESPONDING TO KEY TOPICS AND CONCERNS RAISED

Documenting the key topics and concerns raised by our key stakeholder groups simply represents the commencement of our journey. Initiatives have been developed to address these concerns, and we will continue to engage with all stakeholders, and provide timely reporting in regards to our progress against the 19 x 19 targets initiatives. It is also critical to ensure these topics are still material and relevant to our stakeholders and to identify whether there has been any shift of focus leading up to the 2020 Sustainability Report.

As mentioned at the outset, this report is a transparent account of our last two years’ performance, as well as an attempt to share our improvements and rebuild trust with our stakeholders. We naturally welcome our stakeholders’ feedback on this report and our approach to stakeholder engagement.

OUR PEOPLECustomer Satisfaction, Ethics, Technology

& Innovation, Financial Performance, Training Employee Engagement

OUR SHAREHOLDER AND PARENT COMPANY

Ethics, Financial, Performance, Technology & Innovation, Resilience,

Customer Satisfaction, Health & Safety, Information Security

GOVT AND REGULATORSProduct Stewardship, Resource Use, Leadership, Energy & Carbon, Ethics

CUSTOMERSProduct Stewardship, Ethics, Disruption,

Technology & Innovation, Resource Use, Information Security, Procurement, Energy & Carbon, Financial Performance

SUSTAINABILITY EXPERTS, MEMBERSHIP GROUPS,

CERTIFYING BODIESEthics, Product Stewardship, Procurement,

Disruption, Financial Performance

SUPPLIERSProduct Stewardship, Ethics,

Energy & Carbon, Resource Use, Equality & Diversity

INDUSTRY BODIESTechnology & Innovation, Disruption,

Product Stewardship, Training

IWICultural Heritage, Product Stewardship,

Ethics, Technology & Innovation, Disruption

COMMUNITY GROUPS AND NGOS

Technology & Innovation, Energy & Carbon, Product Stewardship,

Equality & Diversity, Ethics

127

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This graph shows the relative importance of each topic to stakeholder groups from the sustainability framework.

Importance to internal stakeholders

Mos

t im

port

ant

Most important

Cultural Heritage

Community Relations

Marketing & Sponsorship

Product Stewardship

Health & Safety

Training

Employee Engagement

LeadershipRemuneration

Equality & Diversity

Ethics

Disruption

Financial Performance

Business Improvement

Technology & Innovation

Information SecurityCustomer Satisfaction

Procurement

Hazardous Chemicals

Transport

Energy & Carbon

Resource Use

Quality& Safety

Resilience

Impo

rtan

ce to

ext

erna

l sta

keho

lder

s

MATERIAL TOPICS ACCORDING TO FUJI XEROX NEW ZEALAND’S INTERNAL AND EXTERNAL

STAKEHOLDERS FROM DATA COLLECTED IN FY17

To determine the material topics for reporting, we considered how much each topic influences stakeholders’ assessment and decisions and the impacts the topic has on the environment, society and economy, as shown in the matrix above. Topics with high significance and influence are material.

Influ

ence

on

stak

ehol

der a

sses

smen

ts a

nd d

ecisi

ons

Significance of economic, environmental and social impactsH

igh

Influ

ence

High significance

Cultural Heritage

Information Security

Community Relations

Marketing & Sponsorship

Quality & Safety

Health & Safety

Employee Engagement LeadershipTraining

Remuneration

Product Stewardship

Equality & Diversity

Financial Performance

Business Improvement

Technology & Innovation


Hazardous ChemicalsResilience Transport

Energy & Carbon

ProcurementDisruption

Resource Use

Ethics

OVERALL MATERIAL TOPICS AT FUJI XEROX NEW ZEALAND

BASED ON INFLUENCE AND SIGNIFICANCE


GRI Standard Disclosure Page number(s) and/or URL(s)

GRI 101: Foundation 2016General Disclosures

Organizational profile102-1 Name of the organization 16, 19

102-2 Activities, brands, products, and services 16, 19, 20, 48, 49

102-3 Location of headquarters 16, 19

102-4 Location of operations 16, 19

102-5 Ownership and legal form 16, 22

102-6 Markets served 19, 20, 98

102-7 Scale of the organization 20, 58, 60

102-8 Information on employees and other workers 58, 60, 63

102-9 Supply chain 43, 44, 88

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

20, 44, 45, 90

102-11 Precautionary Principle or approach 26 ,28

102-12 External initiatives 12, 13, 34, 81, 82, 85, 128, 131

102-13 Membership of associations 7, 36, 91

Strategy102-14 Statement from senior decision-maker 3,4

102-15 Key impacts, risks, and opportunities 8 ,9, 10,11, 125

Ethics and integrity102-16 Values, principles, standards, and norms of behavior

16,17,18, 19, 21,

102-17 Mechanisms for advice and concerns about ethics

23, 24, 32, 34, 35, 36, 38, 39

Governance102-18 Governance structure 22

102-19 Delegating authority 22, 23, 24, 26, 27, 28

102-20 Executive-level responsibility for economic, environmental, and social topics

22, 23, 24

Stakeholder engagement102-40 List of stakeholder groups 121, 126

102-41 Collective bargaining agreements 69

102-42 Identifying and selecting stakeholders 121

102-43 Approach to stakeholder engagement 120, 121, 122, 123, 124

102-44 Key topics and concerns raised 8,9, 66, 101, 124, 126,

GRI 102: General Disclosures 2016

Reporting practice102-45 Entities included in the consolidated financial statements

20, 117

102-46 Defining report content and topic Boundaries 8, 9 ,117, 118, 120, 121, 124, 125, 126, 127

102-47 List of material topics 8, 9, 125

102-48 Restatements of information 58, 77, 117

102-49 Changes in reporting 117

102-50 Reporting period 117

102-51 Date of most recent report 117

102-52 Reporting cycle 117

102-53 Contact point for questions regarding the report 118, 132

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

7, 118

102-55 GRI content index 128, 129

102-56 External assurance 118

GRI 200 Economic Standard SeriesMaterial Topics

Anti-corruption

GRI 103: Management Approach 2016

103-1 Explanation of the material topic and its Boundary 31

103-2 The management approach and its components 10, 38, 39

103-3 Evaluation of the management approach 40

GRI 205: Anti-corruption 2016

205-2 Communication and training about anti-corruption policies and procedures

39

205-3 Confirmed incidents of corruption and actions taken

32, 34, 35

GRI 300 Environmental Standards SeriesMaterials



103-2 The management approach and its components 10, 88


GRI 301: Materials 2016

301-3 Reclaimed products and their packaging materials 85

Part Omitted – Data provided is on weight, not on percentage of units sold and reclaimed.Reason – Confidentiality Constraints.Explanation – Due to the nature of our data, we are only able to report on total weight of product recycled. Given the competitive nature of our industry, providing the number of products sold is commercially sensitive. Thus we have only providing total weights of overall product and associated packaging recycled for FY16 and FY17. This has been provided by our recycling partners.

GRI CONTENT INDEX


IND

EX

Energy




103-3 Evaluation of the management approach 76, 77

GRI 302: Energy 2016

302-1 Energy consumption within the organization 79, 80

Part Omitted – Data for some of our leased sites has been extrapolated.Reason – Information unavailable.Explanation – Due to the nature of some of our leases being at shared sites, energy data for all of our leased sites cannot be obtained. To ensure we have a full picture of our scope 2 emissions, data has been extrapolated on the area and type of site for those where data is unattainable e.g. branch, print hub or warehouse.

Emissions




103-3 Evaluation of the management approach 76, 77,

GRI 305: Emissions 2016

305-1 Direct (Scope 1) GHG emissions 77, 79, 80

305-2 Energy indirect (Scope 2) GHG emissions 77, 79, 80

305-3 Other indirect (Scope 3) GHG emissions 77, 79, 80

Part Omitted – Emissions for transporting products.Reason – Information unavailable.Explanation – Our emissions from transporting our products from our 3rd party logistic partners is omitted as it was unavailable at time of reporting. We have established a 19x19 target to undertake a benchmark study to establish a freight carbon footprint with our suppliers before the end of 2019. We will report on the outcome in our 2020 report.

GRI 400 Social Standards SeriesEmployment



103-2 The management approach and its components 67


GRI 401: Employment 2016

401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees

67

Training and Education



103-2 The management approach and its components 71


GRI 404: Training and Education 2016 404-1 Average hours of training per year per employee 71

Diversity and Equal Opportunity


103-1 Explanation of the material topic and its Boundary 62, 68, 69


103-3 Evaluation of the management approach 62, 68, 69

GRI 405: Diversity and Equal Opportunity 2016

405-2 Ratio of basic salary and remuneration of women to men 69


OUR NEXT SUSTAINABILITY REPORT: BEING A BETTER BUSINESS

Thank you for reading our Sustainability Report. The next two years will be a busy period for us as we continue to grow and change, working towards Being a Better Business.

Over the next two years we will continue engaging with our stakeholders, working towards achieving our 19 x 19 targets and focusing on supporting the following United Nations Sustainable Development Goals that guide our medium to long-term sustainability goals. You will have seen these peppered throughout the report.

We look forward to updating our stakeholders on our progress in our 2020 report.

We aim to support the education of sustainable development to all of our stakeholders through

sharing our knowledge and working with others to provide material, products and solutions that will assist this. In addition, through ongoing internal

learning and development programmes that support sustainable development.

We aim to support gender equality through giving all our employees the opportunity to thrive in their careers at Fuji Xerox and help transition the

technology industry away from being male dominated and make it more

appealing to all genders.

We aim to contribute to sustainable economic growth and meaningful work through continuing to provide industry-leading technology and solutions, and

doing right by our stakeholders.

We aim to be leaders in the circular economy by not only providing products that are designed for reuse and recycling, but also through collaborating with like minded

businesses to ensure the materials from our products continue circulating. We will also continue providing our customers with products and solutions that evolve as

technology evolves and supports them to meet their own targets.

We aim to support reduced inequalities and hire the right person for the right job and encourage

a diverse and inclusive workforce.

We aim to be leaders in the circular economy by not only providing products that are designed for reuse and recycling, but also through collaborating with like-minded businesses to ensure the materials from our products continue circulating.

We will also continue providing our customers with products and solutions that evolve as technology evolves and support them

to meet their own targets.

We aim to be net zero carbon by 2030, measure and publicly report on our

greenhouse gas emissions and work with our customers and suppliers to help them reduce

their own greenhouse gas emissions.

Given the new direction of our business, it is vital that we align with this SDG. We will

promote and embed strong governance and ethical practices into every aspect of our

business through transparency.

We aim to get all our employees home safe to their families every day after work

by maintaining an effective health and safety management system

In order to support all of the SDGs that we have chosen to align with, we understand that

these cannot be done alone and will require collaboration and partnerships with external

stakeholders to make a significant impact.

Fuji Xerox New Zealandwww.fujixerox.co.nz

www.betterbusiness.fujixerox.co.nz

Head Office Physical Address: 79 Carlton Gore Road, Newmarket, Auckland 1023

Postal Address: P O Box 5948, Wellesley Street, Auckland 1141

+64 9 356 4200

Fuji Xerox New Zealand 2018 Sustainability Report: The past informs the future.

Primary authors: Sian Flynn-Coleman and Emma Harding, Fuji Xerox New Zealand. With thanks to all those who kindly contributed to, and reviewed this document,

and to Juhi Shareef for her considerable contribution.

Design: Tineke Tatt, Fuji Xerox New Zealand Design Team.

Print: Printed by Fuji Xerox New Zealand on Fuji Xerox Iridesse. Colour eXpressions Silk 350gsm.

Xerox, Xerox and Design, as well as Fuji Xerox and Design are registered trademarks or trademarks of Xerox Corporation in Japan and/or other countries.

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