Canon works to protect and conserve the environment throughout the product lifecycle.
The Canon Group is carrying out environmental assurance activities to achieve our environmental targets and realize the environmental vision. Led by Sustainability Headquarters under the supervision of the CFO of Canon Inc., we carry out environmental activities within a global framework comprising business divisions and Group companies in Japan and overseas. The Group Executive for Sustainability Headquarters, a position occupied by an executive officer of Canon Inc., reports each month to the CFO on all environmental activities to gain approval. When an environment-related global issue arises, such as climate change, whose impact on the Canon Group businesses needs to be assessed, the Group Executive for Sustainability Headquarters reports it to the CEO and the CFO and seeks approval for the direction in response to the associated risks and opportunities as well as related measures to be taken.
The Canon Group has established an environmental management system (EMS) covering its operational sites worldwide as a mechanism for continually improving the environmental assurance activities according to ISO 14001.
The EMS promotes environmental assurance activities (Do), which are linked with activities of each division (products operations, operational sites, and Group companies). In turn, we set annual and medium-term environmental targets (Plan) and establish action plans and important measures to achieve those targets, which are reflected in our business activities. Moreover, we carry out Environmental audits to check the progress of initiatives as well as any issues to be addressed in each division, and Environmental performance evaluations, to assess our environmental performance (Check). We then work to continually improve and enhance our environmental assurance activities (Act). By implementing the PDCA cycle for environmental assurance activities of each division, we achieve continual improvement and reinforcement and advance the environmental assurance activities of the entire Canon Group.
Sustainability Headquarters ensures the smooth management of this system by gathering information on environment-related laws and regulations, establishing environmental policies and rules for the entire Group, and planning and managing evaluation methods for environmental assurance activities.
All Manufacturing and marketing companies worldwide obtain ISO 14001 consolidated certification as an objective third-party evaluation of EMS effectiveness. As of 2022, ISO 14001 certification covers Canon Inc. as well as 120 Group companies (564 operational sites) in 40 countries and regions. We received the positive evaluation from the accreditation body that “within the context of a business environment undergoing great change, the Canon Group as a whole has identified new risks and opportunities associated with prospective expansion into new business domains, and has incorporated these in its EMS.”
The acquisition of consolidated Group certification has supported strengthening of corporate governance and efficient environmental management. Sustainability Headquarters oversees Canon’s environmental assurance activities and reports on the progress of relevant activities for the approval of the CEO of Canon Inc. as well as the CFO.
Canon’s environmental initiatives are undertaken over the entire product lifecycle. Lifecycle assessment (LCA) methodology has been introduced in the product development stage to reduce environmental impacts throughout the product lifecycle. In 2022, we began collecting accurate data from suppliers on CO2 emissions generated by the raw materials used to manufacture parts. These data were incorporated in the LCA process, providing useful feedback for product development to reflect the real situation.
Canon is a member of the Green x Digital Consortium spearheaded by the Japan Electronics and Information Technology Industries Association (JEITA), and is taking part in a trial program that aims to visualize supply chain CO2 emissions. With the goal of achieving decarbonization and net zero throughout the supply chain, we are contributing to accurate measurement of CO2 emissions not only in each company’s own operations, but throughout its supply chain.
Canon conducts an environmental assessment during the commercialization process to check whether a product meets product environmental legal requirements and other requirements applicable for products and has achieved the necessary environmental performances.
We start the assessment by assigning an environmental performance target to the product at the product planning stage. Before the decision is made to commercialize the product and initiate mass production, Canon evaluates whether this target has been met, and ascertains whether the product also satisfies the applicable legal and other requirements.
Canon uses an internal environmental audit to confirm the effectiveness of its environmental management system. The audits are composed of headquarters environmental audits performed by Sustainability Headquarters, and operational site environmental audits and product environmental audits conducted by the audit divisions of operational sites and products operations. Mutual cross-site audits are carried out in certain locations.
Results of internal environmental audits are compiled by the Group audit management section of Sustainability Headquarters and reported to the CEO and the CFO of Canon Inc. in management reviews. In 2022, the audits found no major nonconformity or violations. From the perspective of continual improvement and prevention, we are taking steps to rectify even minor findings in operations management.
All Manufacturing and marketing companies worldwide obtain ISO 14001 consolidated certification as an objective third-party evaluation of EMS effectiveness. As of 2022, ISO 14001 certification covers Canon Inc. as well as 120 Group companies (564 operational sites) in 40 countries and regions. We received the positive evaluation from the accreditation body that “within the context of a business environment undergoing great change, the Canon Group as a whole has identified new risks and opportunities associated with prospective expansion into new business domains, and has incorporated these in its EMS.”
The acquisition of consolidated Group certification has supported strengthening of corporate governance and efficient environmental management. Sustainability Headquarters oversees Canon’s environmental assurance activities and reports on the progress of relevant activities for the approval of the CEO of Canon Inc. as well as the CFO.
Through environmental performance evaluations, the outcomes of the environmental activities at individual Headquarters divisions, operational sites and marketing companies are evaluated and scored twice yearly. Since 2001, these scores have been incorporated alongside business performance in consolidated performance evaluations. Sustainability Headquarters sets the environmental evaluation criteria and carries out the evaluations, which account for approximately 10% of the overall consolidated performance evaluation. Criteria for environmental evaluation mostly cover compliance with laws and company rules, achievement of environmental targets, improvement in the environmental performance of products, and environmental communication. The evaluation results are announced within the Group on a half-yearly basis. The results are used in the evaluation of the executive officer in charge of a Headquarters division and the president of a Group manufacturing or marketing company. In this way, Canon incorporates the environment into its business performance evaluation.
Each operational site makes a monthly report to Sustainability Headquarters regarding its energy consumption (CO2 emissions volume), waste generation volume, chemical substance emissions volume, and water utilization volume. The GEC aggregates the data to monitor progress toward environmental targets and reports monthly to the Board of Directors, business department general managers, and the executive management of Group companies. Additionally, the evaluation and the risks identified are subject to the PDCA cycle for environmental assurance activity within the shared framework of the Group’s ISO 14001-based environmental management system.
To promote improved staff awareness and activities in relation to the environment, in 2003 Canon started holding an internal exhibition introducing good examples of environmental activities in Japan. The exhibition went global in 2008, when examples of overseas activities were also included. And in 2009, the exhibition developed into the environmental award system, in which top management awarded outstanding environmental activities. The exhibition and the award system have enabled management to identify outstanding examples of good environmental practice and promote their company-wide implementation while also serving as a valuable opportunity to raise the environmental awareness of employees. Started in 2013, the simultaneously held online exhibition on the Group intranet has allowed many Group employees to access the exhibition all year round, helping to hasten the horizontal implementation of good practices across the entire organization. In March 2022, we held the award ceremony face-to-face for the first time in three years, presenting a Grand Prize to four entrants.
During Environment Month in June, we expanded activities beyond the normal scope of the environment to include other social issues and worked to raise in-house awareness of sustainability. Our initiatives included publishing a weekly internal newsletter and broadcasting sustainability-related programs on our intranet channel with contributions from experts.
Canon’s environmental education programs provide basic environmental training to all employees, and specialized training for employees. engaged in specific types of work
The basic environmental training aims to equip employees with an awareness of the importance of environmental assurance activities and an understanding of related policies and targets, while the aim of the specialized training program is to enable employees involved in environmental assurance activities to acquire knowledge and expertise.
The specialized training program consists of product environment, operational site environment and environmental audit sections. Of these, product environment training enables those responsible for product environmental assessments and product surveys to acquire knowledge and expertise.
These educational programs are designed to enable employees to receive needed training at a time that suits their schedule and in the format. that best suits the purpose, whether e-learning, group discussion, group work, or other method
In particular, among the specialized environmental training programs, Canon is focusing attention on risk management education globally, and has been using training materials in English and Chinese since 2016. In 2022 also, we carried out training for employees involved in risk management-related work (total of approximately 8,000 participants).
Since 2017, we have also provided recycling training as part of the hands-on factory training for newly hired technicians and engineers. At Canon Ecology Industry, a recycling site, practical training in recycling is given, including instruction in how to disassemble multifunctional office equipment.
At Canon, all employees work toward a shared understanding of resolving environmental issues under the slogan of “Minimum Energy 360." By instilling in each and every employee the awareness to carry out, or make possible to carry out, all company activities with minimum energy, we will accelerate our efforts.
Canon has been vigilant in disclosing environmental information to a diverse range of stakeholders. Besides the publication of this report, Canon actively uses a range of media and platforms to inform stakeholders about its environmental activities, including its official environment website, various exhibitions, and other events. We are striving to undertake more and better activities based on suggestions and opinions received from stakeholders.
Canon also promotes environmental education and awareness activities for the benefit of people in regional communities, providing environmental outreach classes for elementary school students and environmental programs run in cooperation with regional organizations. Canon began holding environmental outreach classes on toner cartridges in 2011. Extended to Canon Bretagne in 2022, this program has provided more than 240 classes to over 12,000 participants.
The Canon Eco Technology Park, which opened in February 2018, is not only a cutting-edge recycling plant but also serves as a focal point of the environmental activities of the Canon Group. The facility offers tours of Canon’s automated toner and ink cartridge recycling systems as well as a showroom introducing Canon’s wide variety of environmental activities, such as the Canon Bird Branch Project, through information panels, videos, and hands-on content. In 2022, the park reopened fully to the general public for tours and environmental classes. At the same time, it has adapted to Covid-related concerns by continuing with online classes and additionally revising the tour route and changing the layout of the exhibition area.
We are using online media to enhance the environmental education curriculum offered by the Canon Eco Technology Park. Based on the environmental education we have previously offered in face-to-face settings, we are now presenting online demonstrations of the waste sorting methods practiced at the facility. This interactive communication-style program enables children to enjoy learning and thinking about the importance of resource recycling as well as the SDGs and other environmental issues. In 2022, the program was offered to seven elementary schools in the locality of the Park, giving approximately 210 children the opportunity to learn about Canon initiatives and the importance of resource recycling.
Canon España appeared on a national Spanish radio program to explain Canon’s commitment and policy in the circular economy sector. Specifically, the Sustainability Manager explained the concept of remanufacturing and how the EQ80 imageRUNNER ADVANCE series of remanufacturing machines contributes to the SDGs by saving raw materials and reducing CO2 emissions compared to new products. The radio program covered economic and environmental news and was broadcast in primetime, so the audience was extremely large.
Working jointly with the cafeteria that serves the office building where its Beijing headquarters is located, Canon (China) organized an event designed to promote interest in global warming prevention by offering dishes made with meat substitutes, whose production generates lower levels of CO2 emissions than meat from livestock. A panel display in the cafeteria compared the CO2 emissions of 18 dishes made using meat substitutes with those of the livestock meat production process, encouraging diners to learn about global warming prevention while enjoying tasty meals. The participants, many of whom did not know that the meat production process generates large amounts of CO2, were heard to comment that the event had been a valuable learning experience. The cafeteria is used by employees and customers from outside Canon too, who were also able to benefit from the opportunity to think about global warming prevention.
As a result of implementing an environmental management system coordinated across the Group, Canon came through 2022 without a single legal violation or accident that seriously impacted the environment, including incidents relating to water quality or quantity permits.
Although there were some complaints about noise at our operational sites, all issues were resolved satisfactorily via appropriate measures.
Even as consumer lifestyles grow more affluent, various environmental problems are emerging, including climate change, resource depletion, pollution, and loss of biodiversity. In response to the issue, debate within the global community is increasing on how to achieve carbon neutrality and how to realize a circular economy. Recognizing the business impact of environmental issues, many companies see the importance of helping address these issues in partnership with national and local governments, experts and other stakeholders. Canon identifies business risks and opportunities by envisioning different ways in which society will change based on information received from specialized institutions and government agencies.
| Risks and opportunities | Financial impact | Action | ||
|---|---|---|---|---|
| Risks | Transition risks: | Stricter energy-efficiency regulation and associated compliance costs (products/sites) | High |
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| Increased business costs from economic measures to reduce emissions (e.g., carbon tax) | Medium |
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| Physical risks | Negative impacts on operations caused by increasingly severe extreme weather events such as typhoons and floods | Medium |
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| Reputational risks | Negative external evaluation due to insufficient information disclosure | Low |
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| Opportunities | Products and services | Expanded opportunities for sales of energyefficient products with low lifecycle CO2 emissions | High |
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| Contribution to CO2 emissions reduction at societal level through sales of various innovative products and solutions (hardware/software) | High |
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| Energy efficiency | Reduction of energy costs by improving production and transportation efficiency | Medium |
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| Energy sources | Expanded opportunities for use of renewable energy through lower associated costs | Medium |
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| Others | Enhanced corporate image due to proactive climate-related disclosures | Low |
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| Risks | Opportunities | ||
|---|---|---|---|
| Resource efficiency | Transition risks | • Increased procurement costs of raw materials due to resource constraints • Stricter resource-efficiency regulation and associated compliance costs (products/services) • Increased costs for collection and recycling of used products in each region |
• Business cost reduction through improved resource efficiency • Enhanced competitiveness through 3R design and development of advanced technologies that promote a circular economy • Increased demand for products/consumables that contribute to a circular economy (e.g., remanufactured products) • Enhanced corporate image through publicity of our advanced approach to resource recycling • Offering the value of CO2 emissions reduction effect through efforts to recycle resources |
| Physical risks | • Impairment of stable water supply and impacted business operations due to extreme weather events | ||
| Reputational risks | • Damage to corporate image from slow transition to circular economy | ||
| Chemical Substances | • Increased chemical substance management costs due to strengthened and expanded regulations • Suspension of production or disruption to parts supply chain due to serious noncompliance by suppliers • Damage to corporate image due to poor regulatory compliance |
• Supplying safe products and maintaining competitiveness through more advanced chemical substance management • Cost reduction through increased management efficiency, including within the supply chain • Enhanced corporate image through contribution to international standardization |
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| Biodiversity | • Reduced supply and higher cost of printing paper due to declining forestry resources • Restraints on business activities due to disruption of local ecosystems |
• Application of our products and technologies to ecosystem conservation • Enhanced corporate image through contribution to local communities |
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We aim to achieve net-zero CO2 emissions for the whole product lifecycle (Scope 1-3)* by 2050.
* Scope 1: Direct GHG emissions (combustion of city gas, LPG, light oil, kerosene, non-energy derived GHG, etc.)
Scope 2: Indirect GHG emissions (consumption of electricity, steam, etc.)
Scope 3: Supply chain-related GHG emissions (production of purchased goods and services [Category 1], upstream transportation and distribution [Category 4], use of sold products [Category 11])
Canon aims to consistently achieving the environmental targets of an average annual 3% improvement, in the index of lifecycle CO2 emissions per product unit set in 2008, and realize a cumulative total 50% improvement by 2030.
In addition, we aim to reduce absolute scope 1 and 2 GHG emissions 42% and absolute scope 3 GHG emissions (category 1 and 11) 25% by 2030 from a 2022 base year in line with the SBTi’s criteria (The Science Based Targets initiative approves Canon's GHG emission reduction targets.).
*SBTi (Science Based Targets initiative ): The Science Based Targets initiative is a global body enabling businesses and financial institutions to set ambitious emissions reductions targets in line with climate science.
| 2022–2024 Medium-term Environmental Targets | 2022 Achievements*2 | |
|---|---|---|
| Overall (Lifecycle) | 3%-per-year average improvement in lifecycle CO2 emissions improvement index per product | Avg. improvement: 4.1 p.a. (2008–2022) |
| Products | 3%-per-year average improvement in raw materials and use CO2 emissions improvement index per product | Avg. improvement: 2.5% p.a. (2008–2022) |
| 2022 Environmental Targets*1 | 2022 Achievements*2 | |
| Operational Sites | Improve energy consumption per basic unit at operational sites by 1.2% | 5.8% improvement |
| Improve total waste generation per basic unit at operational sites by 1% | 0.7% improvement | |
| Improve water usage per basic unit in production by 1% | 1.6% improvement | |
| Improve emissions of controlled chemical substances per basic unit at operational sites by 1% | 7.1% improvement |
Against the target of a 3% average annual improvement in the index of lifecycle CO2 emissions per product unit, we realized an average annual improvement of 4.1% between 2008 and 2022 for a cumulative total improvement of 43%. In 2022, we progressed with our ongoing initiatives to realize improvement based on the entire product lifecycle. These included strengthening energy-saving activities at operational sites, designing more compact, more lightweight products, and improving energy efficiency.
We continued with initiatives, including efforts to make products more compact, lightweight, and energy efficient, and achieved an average annual improvement of 2.5% (2008–2022) in raw materials and use CO2 emissions per product, falling just short of our target of 3%.
To strengthen initiatives aimed at further decarbonization, we will raise the annual target for improvement in energy consumption per basic unit at operational sites from the previous 1.2% to 2.4%.
The 2023 environmental targets are unchanged from 2022 with the exception of the overall target, the product targets in the 2023-2025 Medium-term Environmental Targets, and the operational site energy targets.
Total product lifecycle CO2 emissions (Scope 1-3)* in 2022 were approximately 8.34 million tons. We made improvements over 2021, such as progress in creating more compact and lightweight products, energyefficient design, and switching from air to marine transportation. However, CO2 deriving from raw materials and product use and transportation increased due to greater shipment volume in the wake of worldwide recovery from the pandemic. The result was an increase of approximately 210,000 t-CO2 over the entire product lifecycle. The resources (input) that Canon used in its business activities and emissions (output) to the global environment over the entire product lifecycle are as shown in the following chart.
Also, volume totals in 2021 are greater compared to 2020 due to expansion of the scope of aggregation.
* Scope 1: Direct GHG emissions (combustion of city gas, LPG, light oil, kerosene, non-energy derived GHG, etc.)
Scope 2: Indirect GHG emissions (consumption of electricity, steam, etc.)
Scope 3: Supply chain-related GHG emissions (production of purchased goods and services [Category 1], upstream transportation and distribution [Category 4], use of sold products [Category 11]
| Category | Scope | 2022 (1,000 t-CO2e) | Calculation Method |
|---|---|---|---|
| 1 | Purchased goods and services | 3,519 | Calculated by multiplying the weight of each material input (including any inputs emitted as waste) by the emission factor for each material/process. |
| 2 | Capital goods | 487 | Calculated by multiplying the total amount of each asset category of purchased capital goods by the emission factor for each asset category. |
| 3 | Fuel- and energy-related activities not included in Scope 1 or Scope 2 | 179 | Calculated by finding the total for fuel and electricity usage at each operational site and then multiplying it by the emission factor from fuel extraction to burning and power generation. |
| 4 | Upstream transportation and distribution | 402 | Logistics from the supplier to Canon production sites is calculated by finding the average transport distance and transport volume and then multiplying it by the emission factor for transportation. Logistics from production site to customer’s warehouse is calculated by multiplying the emission factor of transportation by logistics performance data. |
| 5 | Waste generated in operations | 3 | The total weight of waste generated by material and disposal process at each operational site is derived and then multiplied by the end-of-life treatment emission factor. |
| 6 | Business travel | 37 | The emission factor for each transportation method is multiplied by the total payment amount for each transportation method. For business travel using a personal vehicle, the total payment amount is converted to fuel usage and then multiplied by the emission factor for fuel consumption. |
| 7 | Employee commuting | 159 | The emission factor for each transportation method is multiplied by the total payment amount for each transportation method. For commutes by private vehicle, total fuel usage is derived from amounts paid and then multiplied by the emission factor for fuel consumption. |
| 8 | Upstream leased assets | 0 | CO2 emissions from leased buildings and vehicles are applicable, but both are included in Scope 1 and Scope 2. |
| 9 | Downstream transport and distribution | 52 | Average transport distance and weight of transported products is calculated for each region and multiplied by the emission factor for transportation |
| 10 | Processing of sold products | 0 | Emissions from production by outsourcing partners of intermediate products used in sale of Canon-branded products are included in Category 1. |
| 11 | Use of sold products | 2,284 | Lifetime energy usage is calculated for each product and then multiplied by the average electricity emission factor. |
| 12 | End-of-life treatment of sold products | 198 | Sold products are categorized by material and then the emission factor of end-of-life treatment is multiplied by each based on the volume of materials used. |
| 13 | Downstream leased assets | 0 | Leased assets such as multifunction devices are included in Category 11 above together with sold products. |
| 14 | Franchises | 0 | Not applicable |
| 15 | Investments | 0 | Not applicable |
| Scope 3 | 7,320 |
Canon compiles data for greenhouse gas (GHG; energy-derived greenhouse gas CO2, and non-energy derived greenhouse gases PFCs, HFCs, SF6, N2O, methane, and NF3).
For CO2 emission factors for electricity, figures provided by individual electric supply companies are used, but publicly disclosed region-specific figures are used when figures are not provided by electric supply companies. As the latest CO2 conversion coefficients become public after compilation of CO2 data for the report, the data are adjusted retroactively in subsequent reports. For figures on customer use, electricity consumption of products shipped in a given year is calculated based on the average lifetime and printing volume, and converted to the CO2 equivalent using CO2 emission factors for electricity, which are calculated in the same way as the above methods. Past data may be revised due to improvements in the precision of data collection.
Third-party verification has been obtained for CO2 emissions data and basic unit of consolidated net sales appearing in “2022 Material Balance” and “Lifecycle GHG Emissions (CO2 Equivalent)” in 2021/2022 and for each figure in “Scope 3 GHG Emissions in 2022.”
