Material Issues
Identification of Material Issues
Based on our corporate philosophy of kyosei, Canon has worked to grasp evolving social trends and maintain sound governance while developing its businesses by effectively leveraging a corporate DNA that consists of respect for humanity, emphasis on technology and an enterprising spirit, as well as resources including a robust financial base, a wealth of human capital, and sophisticated technologies.
In 2025, in line with changes to the business environment and in issues facing society, we identified eight material issues on sustainability to help realize kyosei, selecting from various business activities consistent with Canon's medium- to long-term business plans.
Material Issues Identified
- Climate change
- Chemical substance management
- Biodiversity and ecosystems
- Circular economy
- Own workforce
- Supplying trusted products to contribute to society
- Supply chain management
- Business conduct
Identification Process
-
STEP 1: Acknowledging issues
The major issues for Canon were identified after considering societal trends, laws, regulations and guidelines relating to sustainability, and with reference to the views of outside experts.
-
STEP 2: Evaluating issues
Issues identified were evaluated based on their likelihood and degree of importance, both now and in the future, taking account of the environmental and societal impact of our business activities as well as the financial impact on Canon of environmental and societal factors (risks/opportunities).
-
STEP 3: Evaluating appropriateness
From the issues evaluated, candidates for material issues were chosen by taking into consideration the views of stakeholders inside and outside the Group, such as institutional investors, NGOs, non-profits, experts, and our employees, on what will help to realize our corporate philosophy of kyosei.
-
STEP 4: Selecting material issues
The material issues identified in the previous step were discussed in the Sustainability Committee and finally selected by CEO approval.
Besides these identified material issues, we position sociocultural support activities as critical to capitalizing on the technology and expertise developed through our business activities to support the ongoing development of local communities—something that has always been and remains a key focus for the company.
Why the Material Issues Are Important
| Climate change | We recognize that climate change could have a significant negative effect on our business stemming from the risk of climate-related impacts, such as operational stoppages caused by natural disasters, higher regulatory compliance costs, reputational damage from non-compliance, or the loss of sales opportunities. At the same time, we believe responding to climate change is important because there are also opportunities to increase sales arising from higher demand for products that help customers adapt to climate change while reducing costs from improvements in energy efficiency, thereby supporting growth in profits. |
|---|---|
| Chemical substance management | Canon regards supplying customers with safe products as a fundamental part of our mission as a manufacturer. Our product development complies with in-house standards modeled on the most stringent regulations in the world. Moreover, to avoid the risk of significant harm to human health or the environment, we believe in the importance of ensuring that emissions of chemical substances from Group business sites stay within regulatory limits. |
| Biodiversity and ecosystems | We recognize the importance of addressing nature-related issues to help prevent the loss of economic activity or other negative consequences for the ongoing development of society and Canon. Mitigating the risk of water shortages and water pollution has become an issue of societal importance. We believe addressing water-related issues is critical to our business sustainability since significant water resources are required in manufacturing processes for Canon products. |
| Circular economy | In line with the Canon Group Environmental Charter, we pursue maximum efficiency in our use of resources to support the sustainable development of society. With fears of resource depletion fueling global interest in recycling, Canon recognizes the importance of working as a manufacturer to help make society more focused on recycling. Demand is growing for products and consumables that can contribute to the circular economy, in turn leading to the creation of business opportunities. Canon is pursuing strategies to promote the ongoing recycling of resources to maximize the value generated by resource efficiency. |
| Own workforce | "Respect for humanity" has been an element of Canon's DNA since its foundation. Based on this philosophy, we manage our human capital to maximize its value as the main source of our value creation. Ensuring that workplaces allow employees to play an active role with mutual respect for diversity is essential to generating innovation, which relies on employees being able to fulfil their potential by drawing on their individuality and skills, based on a range of perspectives and ideas. We also think ensuring the health and safety of employees is the foundation of a good business. Guided by this thinking, Canon respects the diversity of employees, including their culture, customs, language, and ethnicity. We pursue the fair recruitment of human resources based on merit, irrespective of age, gender, or ability, and strive to create safe, secure working environments for employees. |
| Supplying trusted products to contribute to society | Based on Canon's basic quality concept of "No Claims, No Trouble," we strive continually to ensure customers can use our products and services with Safety, Smartness, and Satisfaction, and we therefore recognize the selection of these quality indicators as extremely important. |
| Supply chain management | Canon purchases electronic parts, mechanical parts, units, and materials from suppliers around the world based on collaborative relationships. We recognize that we have a responsibility to promote sustainable procurement activities together with our suppliers. |
| Business conduct | We are convinced that conducting business appropriately grounded in fostering a transparent and sustainable corporate culture, as well as in developing internal frameworks and processes that support proper business operations is the foundation for earning the trust of all Canon's stakeholders. |
Materiality Metrics and Targets
The following table outlines metrics and targets related to the eight identified material issues.
The United Nations Sustainable Development Goals (SDGs) relating to each Material Issue are also shown.
| Material issues (Relevant SDGs) |
Initiative | Metric | Target (deadline) | Change in metric/target |
Scope | Results/achievements | Status |
|---|---|---|---|---|---|---|---|
Climate change    |
Reduce Scope 1 & 2 emissions | SBT absolute emission reduction: Scope 1 & 2 emissions |
42% reduction compared to 2022 level (by 2030) | Ongoing | Canon | 6.3% reduction | Further improvements are needed to achieve the target. |
| Reduce Scope 3 emissions | SBT absolute emission reduction: Scope 3 emissions |
25% reduction compared to 2022 level (by 2030) | Ongoing | Canon | 19.4% reduction | On track to achieve the target | |
| Reduce Life Cycle CO2 emissions | Life Cycle CO2 emissions Index (average annual improvement per product unit) | Average annual improvement of 3% Cumulative 50% improvement over 2008 |
Ongoing | Canon | Average annual improvement of 3.59% (between 2008 to 2025) Cumulative 45.5% improvement over 2008 |
Average annual improvement: Achieved Cumulative improvement over 2008: On track to achieve the target |
|
Chemical substance management  |
Ensure environmental regulatory compliance by Group sites | Regulatory value for wastewater effluent applicable to each site | Keep wastewater effluent at 80% of regulatory value (annually) | New | Canon*1 | Implemented | Achieved |
| Assess, manage, and reduce use of controlled chemical substances in products, and related emissions | Cease the procurement of any items containing prohibited chemical substances | In principle, deliveries by suppliers of items containing prohibited chemical substances to cease 12 months prior to any regulatory ban (annually) | Ongoing | Canon | Implemented | Achieved | |
Biodiversity and ecosystems  |
Reduce use of water resources | Water usage per basic unit | Annual 1% improvement in per-unit usage | Ongoing | Canon*2 | 0.9% improvement | The target has not been achieved due to factors such as an increased production ratio of products with high water usage. We aim to achieve the target through thorough management of usage suitable for the processes. |
|
Circular economy |
Promote resource efficiency at every stage (Produce, Use, Recycle) | Resource recycling rate for Printing Business products*3 | 50% (by 2030) | Ongoing | Canon | 16.7% | Further promote resource circulation initiatives to achieve the target |
| Reduction of virgin resource usage in new toner cartridge products by recycling cartridges | Consistent use of recycled materials in toner cartridge products (annually) | New | Canon | Recycled materials used | Achieved | ||
| Waste emissions from medical business operations | 1% reduction in annual rate (annually) | New | Canon | 4.2% | Achieved | ||
| Proportion of interchangeable-lens digital cameras, interchangeable lenses, and digital compact cameras newly released in the year with packaging materials eliminating single-use plastics*4 | 100% (by 2030) | New | Canon | 90% | On track to achieve the target | ||
| Proportion of i-line and KrF lithography equipment shipped in 2001 or later still operational | 95% (by 2030) | New | Canon | 92.6% | On track to achieve the target | ||
Own workforce    |
Promote diversity | Ratio of female managers | 10% (by 2030) | Revised | Canon Inc. | 4.6% | Achieved 2025 target in 2024, ahead of schedule |
| Rate of men taking childcare leave | 100% (by 2030) | Revised | Canon Inc. | 86.3% | Achieved 2025 target in 2024, ahead of schedule | ||
| Promote internal recruitment | Number of people recruited internally | Ensure everyone serves as an operational asset by putting the right people in the right jobs and creating a framework to support self-directed career development by employees (annually) | New | Canon Inc. | 281 persons | Efforts ongoing | |
| Increase engagement | Engagement scores | Target continuous improvement in scores via measures to invigorate the workplace culture, such as training managers using feedback from employee surveys and providing support for young employees (once every two years) | New | Canon Inc. | 53% | Efforts ongoing | |
| Create safe and secure working environments | Cancer screening attendance rate (40 years and above) | 70% (annually) | New | Canon Inc. and domestic Group companies | 52%*5 | Screening rates are increasing gradually, but target has not been reached. We continue to focus on increasing screening rates for colon cancer and cancers specific to women in particular |
|
| Number of machinery-related accidents | 0 (annually) | Ongoing | Canon Inc. and domestic Group companies | 4 cases | Group-wide simultaneous check of residual risk management status regarding machinery-related accidents | ||
| Number of accidents caused by highly hazardous chemical substances | 0 (annually) | Ongoing | Canon Inc. and domestic Group companies | 2 cases | Confirm management status during Chemical Substances Awareness Month and appropriately conduct risk assessments of chemical substances | ||
| Respecting human rights | Implementation rate of human rights due diligence | 100% (annually) | New | Canon*6 | 100% | Achieved | |
| Implementation rate of human rights-related education and awareness activities | 100% (by 2027*7) | New | Canon*8 | 80% | On track to achieve | ||
|
Supplying trusted products to contribute to society |
Ensure rigorous operation of Proprietary Quality Management System | Achievement level of Quality Standard in product realization process for Canonbranded products | 100% at product launch (annually) | New | Canon | 100% | Achieved |
| Ensure appropriate and thorough response to product security issues | Implement responses to vulnerabilities identified in Canon-branded products | 100% (annually) | New | Canon | 100% | Achieved | |
| Raising quality awareness | Implement basic quality training | 100% of newly hired employees and newly appointed divisional managers (annually) | New | Canon Inc. | Newly hired employees: 100% Newly appointed divisional managers: 100% |
Achieved | |
| Holding quality-related events | Holding continually, Quality Month events and the Quality Awards (annually) | New | Canon*9 | Implemented | Achieved | ||
|
Supply chain management |
Request suppliers to adhere to Canon sustainability policies | Completion rate of requests to major suppliers to comply with Canon Sustainability Supplier Guidelines | 100% (annually) | New | Canon*10 | 100% | Achieved |
| Undertake risk assessments on suppliers | Proportion of major suppliers completing SAQs (Self-Assessment Questionnaires) | At least 95% (annually) | New | Canon*10 | 99.5% | Achieved | |
|
Business conduct |
Promoting corporate ethics | Number of serious compliance violations | 0 (annually) | New | Canon | 0 results found | Achieved |
| Adoption of Canon Group Code of Conduct by Board of Directors or equivalent entity across all Canon Group companies | Every company in principle (annually) | New | Canon*11 | Adopted | Achieved | ||
| Institute internal whistleblowing system | Establishment of whistleblower hotline at all Canon Group companies | Every company in principle (annually) | New | Canon*11 | Established | Achieved |
- ※1 Sites covered by ISO 14001 certification
- ※2 Production/development sites within ISO 14001 certification
- ※3 Excluding OEM products
- ※4 This refers to petroleum-derived plastics, and excludes the raw materials used for labels, coatings, and adhesives
- ※5 Reporting period: FY2024 (April 2024–March 2025); FY2025 results due to be disclosed in the next report
- ※6 Group companies selected by the Human Rights Secretariat to implement human rights due diligence
- ※7 Three-year period from 2025 to 2027
- ※8 Group companies selected by the Human Rights Secretariat to implement human rights education and awareness activities
- ※9 Major worldwide development/production subsidiaries and regional sales headquarters
- ※10 Major production companies (domestic/overseas)
- ※11 Companies subject to assessment under financial reporting internal controls (refer to Annual Securities Report)
| Material Issues (P10-13) (336KB) |