Canon Sustainability Report 2018

CANON SUSTAINABILITY REPORT 2018 This pamphlet was printed using the Canon imagePRESS C10000VP on demand printer. CANON INC. 30-2, Shimomaruko 3-chome, Ohta-ku, Tokyo 146-8501, Japan global.canon ©Canon Inc. 2018 PUB.ECO014E 0818POD0.06 Printed in Japan About this Report Editorial Policy Disclosed Data Every year Canon publishes the Canon Sustainability Report to Disclosed data has been revised to reflect changes in calculation share information on the diverse initiatives it is undertaking to methods and the expanded scope of sites covered. Accordingly, contribute to the realization of a sustainable society. This year, the some data in this report differ from data presented in last Under the corporate philosophy “Kyosei,” report includes four “Highlights” articles about material topics year’s report. relating to Canon’s CSR. It also explains how Canon’s CSR we are stronger and deeper activities intersect with the Sustainable Development Goals (SDGs) Notation adopted by the United Nations in 2015. The report aims to be “Canon” refers to all companies in the Canon Group including with stakeholders comprehensive in nature, providing a range of CSR information in Canon Inc. and its consolidated subsidiaries, while “Canon Inc.” line with the global disclosure guidelines in the GRI Standards for indicates the non-consolidated parent company. Employees refers Following half a century of operations, Canon Employees Local sustainability reporting, and based on the specific nature of to full-time employees and also includes part-time workers. adopted kyosei as its corporate philosophy in 1988, Communities Canon’s operations. Chapter headings include “Creating New In addition, “Europe” refers to the region including Europe, expressing clearly the company’s firm commitment to Suppliers Value and Solving Social Issues Through Business Activities,” the Middle East, and Africa. Other working together with stakeholders around Companies “Environment,” “Human Rights and Labor,” “Social the world. Contribution,” “Product Responsibility,” and “Management Third-Party Opinion and Third-Party Assurance Corporate Philosophy Kyosei is the aspiration to create a society in which Structure.” The report has been prepared in accordance with Canon received a third-party opinion (→P141) from Justus von National/ all people, regardless of race, language or culture, Shareholders/ the Core option of the GRI Standards. Geibler (D.Phil.) of the Wuppertal Institute, which is helping to Investors Local harmoniously live and work together for Governments improve ongoing CSR initiatives as part of the company’s the common good into the future. Kyosei Scope of the Report and Period Covered stakeholder engagement activities. Furthermore, Canon Canon is pursuing the realization of a sustainable In principle, this report covers Canon’s economic, social and calculates direct greenhouse gas (GHG) emissions (Scope 1), Embassies/ global society based on the principle of kyosei. Customers environmental activities within the scope of consolidated indirect GHG emissions from energy sources (Scope 2), as well Foreign Governments accounting for 2017 (January 1 to December 31, 2017). as other indirect GHG emissions (Scope 3), and has received NGOs/ Educational/ The scope of environmental reporting is not limited to activities third-party assurance ( P144) from Lloyd’s Register Quality → NPOs Research (development, production, and sales) at operational sites. Rather, Assurance Limited (LRQA). Institutions it covers every stage of the product lifecycle, including raw mate- rials and parts manufacturing by suppliers, as well as product use Forward-Looking Statements by customers. Supplemental information on important targets, This report contains not only past and present facts about Canon, indicators, and initiatives prior to and beyond 2017 is referenced but also forward-looking statements based on plans, prospects, in this report. Information specific to a region or organization is management policies and strategies as of the publication date. indicated as such. These forward-looking statements are assumptions or estimations Contents based on information available at the time the report was Target of the Report prepared. Due to a range of variables, however, the results or About this Report ........................................................ 01 CSR Reporting Data from 376 companies (63 companies in Japan and 313 circumstances of future business activities may vary from the Message from Management ........................................ 03 Creating New Value and Solving Social Issues overseas) that are consolidated companies of the Canon Group forecasts contained herein. Canon Operations and Sustainability Through Business Activities ................................... 25 have been compiled and reported. Environment ............................................................ 33 Contact us Canon Group Business Operations ........................... 05 Human Rights and Labor .......................................... 73 Date of Publication TEL: 03-3758-2111 Canon’s Growth Strategy and Sustainability.............. 07 Social Contribution .................................................. 97 August 2018 (previous: August 2017, next planned: June 2019) E-mail: [email protected] Relationship with SDGs ............................................ 09 Website: https://global.canon/en/csr/ CSR Management ........................................................ 11 Product Responsibility............................................... 107 Referenced Reporting Guidelines Activity Highlights Management Structure • GRI (Global Reporting Initiative) Sustainability Reporting Corporate Governance ............................................. 120 Our Innovation Highlights 01 for Society .................. 15 On the cover: Standards 2016 Risk Management .................................................... 124 Our Innovation Highlights 02 for Society .................. 17 • RBA Code of Conduct ① MRI scanner (Canon Medical Supply Chain Management ...................................... 132 Our Innovation Highlights 03 for the Earth ............... 19 • Ministry of the Environment, Japan “Environmental Reporting Systems) Intellectual Property Management ............................ 136 Guidelines (2012 Edition)” ② Canon Automated Recycling Our Innovation Highlights 04 for the Earth ............... 21 System for Toner Cartridges Brand Management ................................................. 138 • Ministry of the Environment, Japan “Environmental Accounting ③ Training session by local trainer Guidelines (2005 Edition)” Stakeholder Engagement ......................................... 139 1 at Canon Hi-Tech (Thailand) Comparative tables for the RBA Code of Conduct and GRI Third-Party Opinion / Assurance Standards can be found online at the following URLs. Relevant Third-Party Opinion .................................................. 141 GRI references are listed for each management approach used 2 3 Third-Party Assurance ............................................... 144 in CSR activity reporting. Major Awards, Citations, (Ref.) Comparative table for GRI Standards (to be published in September): and Association Memberships .................................. 146 https://global.canon/en/csr/search/gri.html Canon Group Directory ................................................ 148 (Ref.) Comparative table for RBA Code of Conduct (to be published in September): https://global.canon/en/csr/search/rba.html 01 Canon Sustainability Report 2018 Canon Sustainability Report 2018 02 Message from Canon Operations Management Third-Party CSR Management Activity Highlights CSR Reporting Message from Management Management and Sustainability Structure Opinion / Assurance Pursuing a Grand Strategic Transformation to Help Realize a Better Society regions and the global environment. Creating new value Respect for People and Society and solving issues, protecting and conserving the global As the basis for promoting corporate sustainability and environment and responding to people and society as a maintaining the trust of our customers and business partners, good corporate citizen, which Canon adopted as material we have focused on strengthening not only our quality topics to pursue in order to realize a better society, were assurance, but also compliance, governance and risk identified based on our corporate philosophy of kyosei. management capabilities. As part of these efforts, Moreover, we believe that kyosei is consistent with the we have continued our commitment to human rights while principles of the SDGs and that we can help achieve these instituting workplace reforms that promote diversity and goals through our corporate activities. We consider it our a better work-life balance. We have also increased the responsibility to address these important issues in order focus on our entire supply chain in line with the public’s to realize a more prosperous society. Going forward, increasing expectations of businesses. Canon conducts Canon will continue to operate with consideration towards annual reviews of the thousands of firms in our supply the SDGs in order to create a better world. chain to confirm such obligations as the prohibition of child In 2017, we established the Canon Group CSR Basic and forced labor, and in 2018, we established newly revised Statement to lay the foundation for creating enduring trust supplier CSR guidelines. Moreover, we continue to be actively and reaffirming the Canon Group’s

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