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CANON SUSTAINABILITY REPORT 2019 CANON SUSTAINABILITY REPORT 2019 REPORT CANON SUSTAINABILITY – An Integrated Report for a Better World – About this Report Editorial Policy Disclosed Data This year’s report, in addition to information relating to ESGs Disclosed data has been revised to reflect changes in (Environmental, Social and corporate Governance) provided calculation methods and the expanded scope of sites in previous editions, contains wide-ranging information covered. Accordingly, some data in this report differ from necessary for a more integrated report. Such information previously disclosed data. includes Canon’s 2018 corporate performance and financial status and such features as “Canon’s value creation process” Notation and “A History of Value Creation at Canon.” In doing so, “Canon” refers to all companies in the Canon Group we can provide both the financial and non-financial including Canon Inc. and its consolidated subsidiaries, information our various stakeholders need to form a fully while “Canon Inc.” indicates the non-consolidated parent integrated understanding of Canon’s initiatives. Furthermore, company. Employees refers to full-time employees and also this report is designed with consideration for the disclosure includes part-time workers. In addition, “Europe” refers to items recommended by the Financial Stability Board (FSB) the region including Europe, the Middle East, and Africa. Task Force on Climate-related Financial Disclosures (TCFD). Finally, this report is prepared in accordance with the GRI Third-Party Opinion and Third-Party Assurance Standards Core option. Canon received a third-party opinion (→P126) from Justus von Geibler (D.Phil.) of the Wuppertal Institute, which is Scope of the Report and Period Covered helping to improve ongoing CSR initiatives as part of the In principle, this report covers Canon’s economic, social and company’s stakeholder engagement activities. Furthermore, environmental activities within the scope of consolidated a third-party assurance (→P129) from Lloyd’s Register accounting for 2018 (January 1 to December 31, 2018). Quality Assurance Limited (LRQA) has been obtained for The scope of environmental reporting is not limited to GHG emissions, energy consumption and water consumption activities (development, production, and sales) at operational data for 2018. sites. Rather, it covers every stage of the product lifecycle, including raw materials and parts manufacturing by suppliers, Forward-Looking Statements as well as product use by customers. Supplemental This report contains not only past and present facts about information on important targets, indicators, and initiatives Canon, but also forward-looking statements based on plans, prior to and beyond 2017 is referenced in this report. prospects, management policies and strategies as of the Information specific to a region or organization is indicated publication date. These forward-looking statements are as such. assumptions or estimations based on information available at the time the report was prepared. Due to a range of Target of the Report variables, however, the results or circumstances of future Data from 379 companies (60 companies in Japan and 319 business activities may vary from the forecasts contained herein. overseas) that are consolidated companies of the Canon Group have been compiled and reported. Contact us TEL: 03-3758-2111 Date of Publication E-mail: [email protected] May 2019 (previous: August 2018, next planned: May 2020) Website: https://global.canon/en/csr/ Referenced Reporting Guidelines • GRI (Global Reporting Initiative) Sustainability Reporting On the cover: CANON Standards 2016 SUSTAINABILITY REPORT 2019 CANON SUSTAINABILITY REPORT 2019 REPORT CANON SUSTAINABILITY – An Integrated Report for a Better World – • RBA Code of Conduct 1 MRI System “Vantage Galan 3T” 2 A Japanese White-eye photographed • Ministry of the Environment, Japan “Environmental by the Canon Bird Branch Project Reporting Guidelines (2018 Edition)” 1 2 3 Mirrorless camera “EOS M50” • Ministry of the Environment, Japan “Environmental 4 Video management software that Accounting Guidelines (2005 Edition)” enables centralized management of multiple video feeds from 3 4 Comparative tables for the RBA Code of Conduct and GRI network cameras Standards can be found online at the following URLs. 5 Canon Europe is developing its Relevant GRI references are listed for each management Young People Programme 5 6 approach used in CSR activity reporting. 6 Office multifunction device “imageRUNNER ADVANCE C5560F lll” (Ref.) Comparative table for GRI Standards (2019 Edition) (to be published in June): https://global.canon/en/csr/search/gri.html (Ref.) Comparative table for RBA Code of Conduct (2019 Edition) (to be published in June): https://global.canon/en/csr/search/rba.html 01 Canon Sustainability Report 2019 Contents Under the corporate About this Report ...................... 01 Management Strategy philosophy “Kyosei,” Message from the CEO ................ 03 Basic Information we are stronger and deeper A History of Value Creation at Canon ..... 09 Canon Group Business Operations ....... 11 with stakeholders Financial and Non-financial Highlights ..... 13 Value Creation Following half a century of operations, Canon adopted kyosei Canon’s Value Creation Process .......... 15 as its corporate philosophy in 1988, expressing clearly the Relationship with SDGs ................ 17 company’s firm commitment to working together with stakeholders around the world. Business Strategy Kyosei is the aspiration to create a society in which all people, Business Overview. 19 regardless of race, language or culture, harmoniously live and Management Foundation work together for the common good into the future. Directors, Audit & Supervisory Canon is pursuing the realization of a sustainable global Board Members, and Executive Officers ... 25 society based on the philosophy of kyosei. Corporate Governance ................ 27 Risk Management .................... 32 Intellectual Property Management ........ 38 Brand Management .................. 40 CSR Management .................... 41 Employees Local Communities Supply Chain Management ............. 44 Stakeholder Engagement .............. 49 Suppliers Other Companies CSR Reporting Corporate Philosophy Creating New Value and Solving Social Issues .................. 53 National/ Shareholders/ Protecting and Conserving Local Investors the Global Environment ............... 61 Kyosei Governments Responding to People and Society as a Good Corporate Citizen ............ 93 Embassies/ Human Rights and Labor ............. 97 Customers Foreign Product Responsibility ............... 113 Governments Educational/ Social Contribution ................. 121 NGOs/ NPOs Research Institutions Third-Party Opinion / Assurance Third-Party Opinion ................... 126 Third-Party Assurance ................. 129 Major Awards, Citations, and Association Memberships ............. 131 Canon Group Directory .................. 134 Canon Sustainability Report 2019 02 Message from the CEO Seeking to become a constantly developing, truly excellent global corporation that is admired and respected around the world, Canon is accelerating its grand strategic transformation towards new growth while contributing to a sustainable society in this age of rapid change. Contributing to Global Society with kyosei as our corporate philosophy—the idea that we an Enterprising Spirit should seek to build a society in which all people, Canon started as a small laboratory that was home to regardless of culture, customs, language or race, a group of researchers with a common desire to “make harmoniously live and work together in happiness into the world’s best camera.” Ours has been a history of the future. challenge: the Enterprising Spirit that sought to create In 1996, in line with our philosophy of kyosei, we cameras by applying original knowledge and technology initiated a five-year scheme called the Excellent Global has been inherited as part of our corporate DNA. It has Corporation Plan to make Canon a globally admired and also found expression in Canon’s fundamental business respected company dedicated to contributing to society strategy of diversification and globalization. In constant through continuous technological innovation. Based on pursuit of innovation, we have been quick to diversify the Excellent Global Corporation, we are applying the and embrace transformational trends in such industries same Enterprising Spirit to various business reforms as copy machines, printers and semiconductor aimed at improving the management of consolidated lithography equipment, while also developing operations, prioritizing cash flow, and achieving total internationally in line with the growth of world markets. business optimization. The plan has been a financial Today, Canon is a global enterprise employing some success: compared with 1995, our sales are 90% higher 200,000 people worldwide. In 1988, on the 51st and net income attributable to Canon Inc. has increased anniversary of the company’s founding, we adopted by 360%. 03 Canon Sustainability Report 2019 Management Management Third-Party Basic Information Value Creation Business Strategy CSR Reporting Strategy Foundation Opinion / Assurance Further Progress on Phase V of the Excellent 4. Enhance R&D Capabilities Through Global Corporation Plan Open Innovation In 2016, we embarked on the Excellent Global Our R&D capabilities are the source of our competitiveness. Corporation Plan
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