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Summary performance table

Through our materiality process we found that the following issues took precedence. We are currently undertaking work to develop targets and key performance indicators for every area of accountability. This table is a work in progress. It reflects that we are on a progressive journey to embed sustainability management, measurement and reporting across the organisation.

Business performance

Direction
To be the leader in providing the Australian market with integrated document services.

11/12 objectives How we did
16.8% growth in total revenue across Fuji Xerox Australia (includes acquisitions). $974m revenue, a 5.8% increase on 10/11 with acquisitions included. Global services revenue declined 1.7%, equipment
revenue increased 2.2%, document supplies revenue increased 2.5% and annuity revenue grew 7.6% including Upstream.

12/13 objectives
9.4% growth in total revenue across Fuji Xerox Australia over prior years.

Employee engagement

Direction
We aim to ensure that Fuji Xerox Australia has the people, culture and capability required to deliver our vision, mission and business objectives for 2015. This means that we are working on optimising the business model at the same time as we transform for the future.

11/12 objectives How we did
Target improvement in overall engagement to 62%. Overall engagement increased to 61%. An increase on the prior year’s result of 57%.
Focus groups will be conducted primarily by managers and with action plans prepared to address issues that arise. Ongoing.

12/13 objectives
  • Target improvement in overall engagement to 65%.
  • Develop objectives and key milestones for diversity and inclusivity steering committee.
  • Continue our focus on improving management capability through formal and informal interventions.
  • Refine and update employee value proposition to align internal and external brands.
  • Implement recruitment transformation objectives.
  • Review and improve the on-boarding process for new hires and internal appointments.

Health and safety

Direction
  • Embed a safety culture.
  • Implement benchmark systems, processes and tools so that health and safety risks and associated injuries are addressed.

11/12 objectives How we did
Implement the health and safety strategic plan. Consultation, communication and systems established.
Target LTIFR of eight with greater confidence in accurate data. LTIFR of 6 achieved.
Streamline injury management processes to reduce lost time injuries and claims timeframes to minimise personal impact of injuries
to employees.
Will remain an ongoing focus.
Deliver a health and safety management system that is in line with legislative requirements. Our system built to align with ASA/NZS 4801 standards was released nationally and training conducted to ensure implementation
by safety committees and management. With the harmonisation legislation released 1 January 2012, the safety team are revising
the system to meet this change.
Improve health and safety communications and access to resources through web developments. Improved communication and available resources. Will be an ongoing focus.
Increase reporting on all hazards, incidents, injuries and near misses to identify all risks and implement appropriate corrective actions
and further reduce risk.
Refreshed our health and safety intranet page. Monthly reports released with root causes, and appropriate corrective actions
identified and timeframes to close out monitoring. Data confirms a 65% increase in these reports in the period.
Continue safety training to management and safety committee members All states have participated in training, and we have ensured we captured a wider group of executives, senior and middle
management, health and safety committee members, our health and safety representative and employees.
Release a new employee safety induction program A health and safety induction handbook was released. The National Safety Team conducted 41 training sessions in the period,
with 345 employees attending.
Improve dashboard reports to executive and divisional management and employees. The monthly dashboard report provides a comprehensive breakdown of health and safety data and shows trends in incidents
and injuries related to workers failing to follow safe operating procedures and of a behavioural nature.

12/13 objectives
  • Improve safety culture through the encouragement of transparent reporting of hazards and near-miss incidents, increased site audits and functional risk profile reviews. In 12/13 we are targeting a 10% increase in reporting of hazards and incidents that could lead to injuries. Our LTIFR target is <6.0.
  • Support improved management reporting capabilities and return to work injury management program through investment in a new online case management system.
  • Implement all core elements of our health and safety system across our subsidiary company, Upstream.
  • Improve safe work practice outcomes for our employees working on customer sites and contractors working on our sites.
  • With the harmonisation legislation released 1 January 2012, the safety team are revising our health and safety management system to meet this change.

Community engagement

Direction
  • Contribute to positive outcomes for the communities in which we operate through education programs for disadvantaged youth.
  • Increase employee participation in Workplace Giving and the number of volunteer opportunities available to employees within working hours.
  • Improve internal communications and employee awareness of community programs.

11/12 objectives How we did
Continue to support and participate in the development of the United Way community impact model. Senior leaders and middle management participate in United Way’s Regional Councils, Income Coalition, Community Impact
Round Table and mentoring programs to contribute expertise, knowledge and experience. Funds of $25k were contributed to
Phase 1 of United Way’s Community Impact work in Sydney in the reporting period.
Develop closer ties with nominated education charities through United Way and expand volunteering opportunities with an
education focus.
United Way, in partnership with the Beacon Foundation, identified a number of opportunities to harness our employees’ skills to
support youth transitioning from school to work to realise their potential. Pilot programs being conducted in 12/13.
Deploy United Way Workplace Giving campaigns across the business with a view to increasing participation rate to 10%. During the reporting period 154 employees contributed $35,498 through Workplace Giving, resulting in a total donation of $70,996
(including corporate matching). The average participation rate was 7.5% however donations increased 16% in total value over
prior year.
Continue to expand ABCN activity. Number of schools supported increased 70%. Number of mentors participating in programs increased 40%. Number of
volunteering hours increased by 80%.
Refresh the Community Service Awards program communications and promotion. $60.5k in grants and 53 additional days of volunteer leave were granted and distributed to 29 Fuji Xerox Australia employees
to enable them to provide greater support to their community organisation of choice. This was an increase in participants and
support over prior year where we granted $52.5k and 27 additional volunteering days to 18 employees.

12/13 objectives
  • Pilot shared value programs where the specific industry and business skills of our people can be of greatest benefit, including a service technician’s education program for year 10 students and a supply chain logistics program to develop skills, employment and mentoring opportunities for disadvantaged young people.
  • Pilot a sustainability education program in collaboration with the Australian Business and Community Network (ABCN) and the Australian Sustainable Schools Initiative (AuSSI).
  • Increase leadership and management engagement in our community programs and with our national partners, exploring links between capability development for our employees and social leadership programs.
  • Measure and increase economic benefit from our community engagement program.

Environmental strategy and management

Direction
  • Reinvigorate environmental targets and re-engage staff in environmental programs.
  • Run business operations with resource efficiency.

11/12 objectives How we did
Review how well we have engaged employees on environmental sustainability. While qualitative insights have been gathered informally we plan to conduct a broader sustainability survey in 12/13.
Develop strategies to engage parts of the business with high impact/opportunity and build their ownership and capability. We have undertaken lifecycle assessment of the Customer Support Organisation (CSO) in order to analyse carbon emission
changes from business optimisation strategies.
Update Sustainability on Site (SOS) training and revise our sustainability communications approach with employees. Transitioned the existing SOS online induction training to the new e-learning platform.
Sustainability committees created in appropriate locations. This project has been piloted with a ‘green team’ established in Melbourne.
Cascade SOS to nominated service centres on customer sites. We have initiated a pilot program with the corporate service centre at North Ryde. This will serve as a replicable model for
Fuji Xerox Global Service customer sites.

12/13 objectives
  • Undertake a comprehensive assessment of employee engagement in sustainability.
  • Review whether the green team approach is positively impacting employee engagement.
  • Work with Supply Chain operations to develop a carbon logistics strategy.
  • Work with Global Services division to embed sustainability in operational delivery framework for onsite customer service centres.
  • Develop a strategy to build capability across various business divisions’ with initial focus on the sales and marketing audiences.

Carbon management

Direction
  • Improve cost and carbon efficiency of business operations.
  • Work with key suppliers to provide low-carbon products and services.
  • Provide customers with low-carbon solutions and enable cost and carbon efficiency (see ‘Customers’).

11/12 objectives How we did
Review carbon reduction target across scopes 1, 2 and 3. This objective was not achieved due to challenges in collecting and retaining scope 3 data, however a new target was framed
for scope 1 and 2.
Develop a decision matrix to evaluate carbon reduction projects. Decision matrix developed and used to approve 11/12 carbon fund investments.
Embed carbon criteria in the decision making framework of our Project Management Office. This step has not been undertaken however the objective will be included in the carbon modelling and forecasting project.
Implement carbon reduction projects at our national warehouse and use Carbon Fund decision matrix to assess new carbon
reduction opportunities for implementation in 11/12.
We have implemented an office lighting upgrade at our national warehouse. We have used the decision matrix to assess and
approve other carbon reduction projects such as the building management and control system for the epicenter™.
Assess carbon risk in the supply chain and develop strategy to reduce carbon intensity in high-risk areas. Started development of emissions management model with large paper supplier.

12/13 objectives
  • Undertake a comprehensive assessment of employee engagement in sustainability.
  • Review whether the green team approach is positively impacting employee engagement.
  • Work with Supply Chain operations to develop a carbon logistics strategy.
  • Work with Global Services division to embed sustainability in operational delivery framework for onsite customer service centres.
  • Develop a strategy to build capability across various business divisions’ with initial focus on the sales and marketing audiences.

Waste management

Direction
  • Work towards zero waste to landfill from our manufacturing and business operations.
  • Continually identify problem waste streams and develop strategies to address these.

11/12 objectives How we did
Complete and roll out national waste contract. All recycling and refuse services have been consolidated to one national service provider.
Provide increased recycling facilities at all sites. As part of the national waste management contract roll out, we have provided paper and cardboard, and commingled recycling
as a minimum with some sites having access to organic recycling such as our Eco Manufacturing Centre.
Expand bi-annual waste audits to all shared tenancy sites. This has not occurred due to significant site relocations and the rollout of appropriate waste / recycling facilities as a priority
nationally.

12/13 objectives
  • Develop new waste management procedure encompassing relocations and site clean-ups.
  • Review waste audit frequency and focus at Supply Chain operations and Eco Manufacturing Centre and develop strategies to improve diversion areas.

Water use

Direction
Upgrade facilities where possible and improve water use estimate with real data.

11/12 objectives How we did
Meter water consumption at the Eco Manufacturing Centre. The water meter was not installed due to a project management oversight; however this will be rectified in July 2012.
Ensure all sites have basic water efficiency measures installed such as flow regulators in all bathroom fittings. Five large sites have undergone water efficiency upgrades carried out by site facilities or landlords.

12/13 objectives
  • Meter water consumption at the Eco Manufacturing Centre.
  • Ensure all sites have basic water efficiency measures installed such as flow regulators in all bathroom fittings.

Paper use

Direction
Reduce paper use and encourage the use of recycled and certified papers.

11/12 objectives How we did
Reduce internal paper use by 1% on 10/11 use. We achieved a 22% reduction in paper use.
Implement a device consolidation and upgrade at our corporate office to provide a better platform for print efficiency. The device consolidation has been rescheduled for completion during 12/13 as part of ‘Own Best Customer’ project.
Complete the review of paper use and share findings with employees responsible for paper purchase. This has been undertaken at large sites to date. All outstanding sites to follow in 12/13.
Eliminate the use of non-certified virgin papers. While use of non-certified virgin paper was not eliminated it was reduced from 16% to 8% of overall paper use.

12/13 objectives
  • ‘Own Best Customer’ initiative implemented at all sites over 12/13 and 13/14.
  • Achieve 15% reduction in paper use subsequent to MyPrints print functionality being implemented by 13/14.
  • Change paper use accounting in line with My Print technology.
  • Eliminate the use of non-certified virgin papers.

Responsible procurement

Direction
Ensure environmental, social and governance standards are applied through the corporate procurement framework.

11/12 objectives How we did
Recruit a national procurement manager who will develop a mentoring and coaching approach to procurement across the business. Recruitment of a national procurement manager held off for consideration within overall corporate structure.

12/13 objectives
  • Recruit a national procurement manager.
  • Integrate a wider assessment of procedural and sustainability risk assessment with suppliers in areas of quality, sustainability and workplace health and safety.

Responsible paper sourcing

Direction
  • Source both recycled and virgin paper from certified sources.
  • Assess paper suppliers’ sustainability credentials and establish a path for continuous improvement.
  • Develop resources and implement communication strategies so we can act as a trusted advisor to clients on responsible paper sourcing.

11/12 objectives How we did
Participate in a regional review of our paper procurement policy, assessment of compliance procedures and supplier performance
management.
Our executive general manager, Supplies division has been actively involved in the review of our regional paper procurement
policy. New audit process and enhanced sustainable paper procurement guidelines implemented. Paper suppliers have been
audited, comply and have action plans in place. The last mill audit to be undertaken is scheduled for August 2012.
Training sessions will continue in 11/12 to maintain compliance with our FSC certification and provide updates for our sales teams
on environmental issues. It is likely there will be a strong focus on carbon.
Internal paper supplies training sessions have been held. We also held sessions for our sales people on our new carbon neutral
paper stock and the associated carbon offset programs. These were conducted by the Carbon Reduction Institute. Educational
material has been developed and now forms part of induction for new employees.
Continue to secure 100% paper supplier compliance with minimum standards and drive supplier improvements. All our paper suppliers’ mills are accredited to ISO 9001 and ISO 14001, and all 13 mills using non-recycled materials have FSC
or PEFC chain of custody certification as at March 2012. We request compliance data from all suppliers, in line with our standards.
All 14 mills supplying the Australian market meet or exceed our minimum standards.
Bring carbon neutral paper to market. Carbon neutral paper stock launched in January 2012.
Out of total paper sales 85% to be FSC / PEFC certified, recycled or carbon neutral stocks. We achieved 60%.

12/13 objectives
  • Target of 85% of paper supplies sold in 12/13 to be FSC / PEFC certified, recycled or carbon neutral stocks.
  • Review use of local and regional sourcing policy with paper suppliers.
  • Continue to secure 100% paper supplier compliance with minimum standards and drive supplier improvements.

Managing carbon with logistics suppliers

Direction
Create cost and carbon efficiencies in our logistics supply chain while delivering on customer expectations.

11/12 objectives How we did
Complete implementation of the environmental intelligence system for logistics. External consultant retained to drive process for implementation in 12/13.
Supply Chain Operations will review our national footprint, storage and transport requirements. National footprint and storage requirements reviewed and improvement plan defined for implementation in 12/13. Transport
requirements review ongoing from warehouse plan implementation.
Pursue efficiency through warehouse space utilisation project and container optimisation, and extend slip
sheeting for paper supplies to Brisbane, Adelaide and Perth.
Conducted warehouse space utilisation review and improvement plan defined for implementation in 12/13. Reviewed slip
sheeting and determined additional handling cost is prohibitive. Slip sheeting now restricted to customer-specific direct deliveries.
Reduce airfreight for our imports and domestic distribution where possible. Domestic airfreight volumes reduced by 20%. Import airfreight volumes increased significantly due to supply constraints at
origins (Japan earthquake, Thailand floods etc).
Re-engineer asset recovery process for equipment to decrease the storage of used equipment. Asset recovery volumes increased, with no overall reduction in storage of used equipment.

12/13 objectives
  • Complete implementation of the environmental intelligence system for logistics.
  • Implement national footprint and storage requirements plan, migrating to efficient facilities sized and located appropriately for our business.
  • Improve space utilisation through better data management.
  • Improve transport cost and emission outcomes through implementation of a domestic distribution requirements strategy.

Customer experience strategy

Direction
  • Gather stakeholder insights to identify issues and opportunities to take action and close the loop in a timely manner.
  • Improve systems and processes for measuring and managing the customer experience.

11/12 objectives How we did
Develop a customer experience strategy based on robust needs analysis across the organisation, with a view to making specific
recommendations for the consideration of the executive leadership team mid-year.
Consultants retained to assist a Lean Design project team in defining and implementing a company-wide customer experience
strategy.

12/13 objectives
  • Commission a consultant report on overall customer experience strategy.
  • Commence implementation through targeted prototyping within discrete markets.

Customer satisfaction

Direction
  • Formally listen and respond to the voice of customer in all segments.
  • Improve customer loyalty and advocacy in all market segments so that we become a partner of choice.

11/12 objectives How we did
Achieve overall Office customer satisfaction index of 95%, including 40% very satisfied. Achieved 95% overall satisfied, including 49% very satisfied.
Achieve overall Graphic Communications customer satisfaction index of 95%, including 40% very satisfied. Due to the focus on defining a new customer experience strategy, the annual Graphic Communications survey was not
conducted in 11/12
Achieve a 10% improvement in our competitive benchmarking score (CBS). Overall CBS loyalty index improved 22%, with a 14% increase in overall satisfaction.
Meet Office Services, Creative Services, Mail Services and Print Services targets. Office services achieved 94% overall satisfaction of which 36% were very satisfied.
  Print services achieved 99% overall satisfaction of which 74% were very satisfied.
  Mail services achieved 97% overall satisfaction of which 64% were very satisfied.
  Creative services achieved 89% overall satisfaction of which 30% were very satisfied.
Continue to monitor and improve net promoter score loyalty indicator for Office and Graphic Communications customers. Improved from 38% to 42% in 11/12 with our Office customers. There was no Graphic Communications survey.

12/13 objectives
  • Achieve overall Office customer satisfaction index of 95%, including 50% very satisfied.
  • Achieve 70% loyalty in competitive benchmarking survey.
  • Achieve 40% net promoter score in Office survey.
  • Implement a quality practice frame work to facilitate structured continuous improvement initiatives across Global Services, to deliver exceptional customer satisfaction and client retention greater than 97%.

Customer support

Direction
To lead operational excellence in service solutions and build a flexible, knowledgeable and adaptable organisation. This will enable us to deliver a streamlined experience for our customers while being an innovative partner of choice for support across Fuji Xerox.

11/12 objectives How we did
Decrease Office colour customer support maintenance hours per million prints to 19.8. Office colour actual 19.4.
Decrease Office mono customer support maintenance hours per million prints to 15.2. Office colour mono actual 15.5.
Decrease Graphic Communications colour customer support maintenance hours per million prints to 42.8. Graphic Communications colour actual 47.
Decrease Graphic Communications colour customer support maintenance hours per million prints to 12.7. Graphic communications mono actual 12.9.
Increase the proportion of customer issues resolved without a site visit to 57%. Proportion of issues resolved without a site visit 58%.
Conduct a lifecycle analysis to quantify the impacts of on-site vs remote support and identify opportunities for improvement. Achieved using the optimum hybrid analysis method.
Implement recruitment and capability development strategies to ensure a highly skilled workforce Twenty-five percent of the existing workforce is trained in Office Solutions Basic in order to perform end-to-end installation
activities and this is growing. We have introduced a traineeship in Certification 4 in IT. Thirty percent of the existing CSO
management team has completed a leadership course to enhance capability.
Continue to monitor and improve net promoter score loyalty indicator for Office and Graphic Communications customers. Improved from 38% to 42% in 11/12 with our Office customers. There was no Graphic Communications survey.

12/13 objectives
  • Increase remote resolutions to 59%.
  • Kilograms of carbon per on-site resolution not to exceed 54.0.
  • Kilograms of carbon per remote resolution not to exceed 8.4.
  • Implementation of a strategy to reduce toner wastage.

End-of-life resource recovery

Direction
Optimise business and environmental outcomes from end-of-life resource recovery.

11/12 objectives How we did
Continue working with our parent company as part of continuous improvement. We have been working with parent as an ongoing activity.
Complete transition to interim local recycling solution. Our end-of-life systems were reviewed and interim local recycling processes implemented.
Continue developing systems for recycling in Australia and to comply with forthcoming regulations. Worked with industry members to prepare the company for impending regulations. This is a work in progress and will continue
in 12/13.
Secure Green Star certification aiming for a 5 Star Green Star — Office Interior v1.1 rating and a 4 Star Green Star — Industrial
Design v1 rating.
Our Rosehill Eco Manufacturing facility is registered for Green Star certification aiming for a 5 Star Green Star — Office Interior
v1.1 rating and a 4 Star Green Star — Industrial Design v1 rating. We expect to achieve certification by September 2012.
201,750 parts remanufactured and 40 new remanufacture programs. 121,969 parts remanufactured and 22 new remanufacturing programs created.
$6.7m local benefit through costs saved. $4.1m cost benefit, and $2.2m net saving achieved. (In 12/13 and beyond, the Eco Manufacturing cost benefit will be measured
as a net saving).

12/13 objectives
  • Achieve net savings of $3.6m.
  • Planned remanufacture of 180,000 parts.
  • Continue developing the local recycling solution, taking account of the regulations commencing 1 July 2012 and the Product Stewardship Regulations.
  • Secure Green Star certification of 5 Star Green Star — Office Interior v1.1 rating and a 4 Star Green Star — Industrial Design v1 rating for our Rosehill Eco Manufacturing facility.

Posted in Appendices