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Canon Sustainability Report 2005 for a Prosperous World and Sustainable Society

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Canon Sustainability Report 2005 for a Prosperous World and Sustainable Society Canon Sustainability Report 2005 For a prosperous world and sustainable society To Our Readers The Canon Sustainability Report 2005 is published to ensure accountability to •Reporting Scope Canon stakeholders by informing them of the ways in which our global business In principle, this report covers Canon’s economic, social, and environmental activ- activities are helping to achieve a sustainable society. The Sustainability Report ities within the consolidated accounting scope for the 2004 fiscal year (January 1, also promotes constructive two-way communication with stakeholders, which 2004 to December 31, 2004). The scope, however, of environmental assurance directly leads to improvements in the various activities outlined within this report. activities is not limited just to Canon’s development, production and sales opera- We endeavor to expand the contents of this report each year to reflect the needs tions, but covers business activities at every stage of the life cycle, including man- of a broad range of stakeholders, and outline Canon’s diverse activities in a sys- ufacturing by suppliers and product usage by customers (sP. 13). Please see P. tematic and clear manner. 65 for a list of operational sites covered by this report. Also, please note that sup- Throughout the report “(sP. 00)” indicates pages with additional reference plemental information on important targets and initiatives prior to 2003 and material. beyond fiscal 2005 are also referenced in the report, and any information limited to certain regions or organizations is indicated as such. This report is available in Japanese and English. •Third-Party Opinions URL: canon.com/environment Since 2002, Canon has asked SustainAbility Ltd. to consult on and assist with arrangements for third-party opinions to improve the objectivity of our •Features of the Canon Sustainability Report 2005 Sustainability Report. Included in this year’s report are unedited views received The contents of the 2005 report have been improved and expanded in the fol- from two environment and social science experts, each with a different perspec- lowing areas. tive, so that readers may develop an opinion of Canon and its activities based on Editorial Policy: a comprehensive compilation of information (sP. 67–68). WAreas covered by the “Social Management” and “Environmentally Conscious •Reference Guidelines Management” sections have been clarified. WGRI Sustainability Reporting Guidelines (2002) WManagement and performance data sections, previously reported separately, WEnvironmental Reporting Guidelines (2003 version) from Japan’s Ministry of are now reported together. the Environment Social Activities: WEnvironmental Accounting Guidelines (2005 version) from Japan’s Ministry of WCorporate governance and compliance information (sP. 23–28). the Environment WInformation on social contributions of products (sP. 7–8, 31–34), etc. •Feedback from Readers Environmental Activities: We welcome feedback from readers. The suggestions and views of readers serve WVision for 2010: Factor 2 progress report (sP. 14). as valuable guidance to enhance future sustainability initiatives. WGlobal warming countermeasures (sP. 17–18, 53), etc. Please feel free to e-mail your comments or send us a fax using the question- naire at the end of the report. (Fax: +81-3-3758-8225, E-mail: [email protected]) *The product names used in this report are the names used in the United States and Europe/Asia. The product name is written only once if the same name is used in the United States and Europe/Asia. For products not sold in the United States or Europe/Asia, the product names are those used in Japan. 1 Canon Sustainability Report 2005 Contents Message from the President ........................................3 Social Management Vision & Strategy Highlights 2004–2005 Social Management Corporate Governance .......................................... 25 Vision & Strategy Compliance ....................................................... 27 Relationship between Business Activities and Society ...........5 Cooperation with Society and Communication with ...................................................... Contributions to Society through Products and Services ........7 Stakeholders 29 ................... Concept behind the Excellent Global Corporation Plan .........9 Quality Assurance of Products and Services 31 ...................... Vision for Environmentally Conscious Management ...........11 Providing Superior Products and Services 33 Environmental Burden and Factor 2 ............................13 Communication among Employees and Human Resources Development ......................................... 35 Employee Safety and Well-Being ............................... 37 Highlights 2004–2005 Social Contributions ............................................. 39 Mid-Term Environmental Strategy and Environmentally ......................................... Conscious Management in 2004...............................15 Relations with Suppliers 41 2004 levels of achievement in meeting the Vision for 2010 (Factor 2) and Topics Mid-Term Environmental Goals Distributing Canon Compliance Cards ..........................28 Conference Held for Individual Investors........................30 Global Warming Countermeasures at Canon..................17 Improving Design Quality with Differing Electrical Global warming countermeasures implemented prior Requirements in Mind ..........................................32 to Kyoto Protocol and future initiatives Pursuing Sound and Image Pleasing to Customers..............33 Human Relations Center Established............................37 ..................... Environmental Consciousness of Products 19 Canon Group Procurement Code of Conduct ..................41 Determination of environmental burden of main products using LCA method and measures for global warming prevention and energy conservation, resource conservation, and the elimination of hazardous substances Environmentally Conscious Management Environmentally Conscious Management System ..............43 Enhancing Corporate Governance and Compliance ...........23 Environmental Information Management and Reinforcement of governance and compliance activities with the forming of Evaluation System..................................................45 new committees Environmental Education and Environmental Business .........47 Topics Environmental Consciousness of Products (1): Receiving the ENERGY STAR® Program Partner of the Year— Goal Management and Energy Efficiency .......................49 Product Manufacturer Award ..................................15 Environmental Consciousness of Products (2): Resource Promoting Global Warming Countermeasures in Efficiency and Elimination of Hazardous Substances ...........51 Conscious Management .............................. Logistics Suitable for Each Region 17 Environmentally Environmental Activities at Operational Sites (1): Reducing Usage of Designated Hazardous Substances Energy Conservation and Resource Conservation ..............53 through Early RoHS Compliance ................................20 Environmental Activities at Operational Sites (2): Elimination of Next-Generation SED Displays: Environmentally Conscious and Hazardous Substances and Eco Logistics Activities .............55 Superior in Performance ....................................... 22 Environmental Communication...................................57 High Marks in External Evaluations .............................23 Topics Material Flow Cost Accounting at Canon Chemicals............46 Conserving Energy with NAS Batteries..........................53 Nine Operational Sites Outside Japan Realize Zero Landfill Waste .............................................54 Third-Party Opinion Performance Data/ Modal Shift Promotion Leads to Eco Rail Mark Certification.....56 Performance Data/Third-Party Opinion Economic and Social Data ......................................59 Environmentally Conscious Management Data ................60 Environmental Performance Data ..............................62 Overview of Canon Inc. Operational Sites Covered in the Environmental Section ......65 Company Name: Canon Inc. ............................................. Establishment: August 10, 1937 Third-Party Opinion 66 Headquarters: 30-2, Shimomaruko 3-chome, Ohta-ku, Tokyo, Japan GRI Guideline Implementation .................................69 President and CEO: Fujio Mitarai Index ............................................................70 Capital: ¥173,864 million Group Companies: 184 consolidated subsidiaries 17 companies accounted for under the equity method (as of December 31, 2004) Canon Sustainability Report 2005 2 Message from the President On Becoming a Truly Excellent Global Corporation in Support of a Sustainable Society Based on the Kyosei Philosophy employees to follow the principle of putting public The Kyosei Philosophy and Sustainability order and morals ahead of profit. Recognizing how important it is to increase trans- Global change continues at a rapid pace, driven by parency and reinforce monitoring functions for economic globalization and disparate social values. management, we have instituted a variety of mea- Amid the dramatic changes in society, a company sures to enhance our corporate governance system. must be adept at forecasting transitions from one In the past two years alone, three new regulatory era to the next, think ahead, and promote business committees, which I oversee as chairman, have been on the basis of well-founded
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