Environmental System

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 Executive Vice President of Canon Inc., we carry out environmental activities in a global system that unites product operations, production sites and marketing companies worldwide. The Group Executive for Sustainability Headquarters, a position occupied by an executive officer of Canon Inc., reports each month to the Executive Vice President on all environmental activities to gain approval. When an environmentrelated 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 Chairman & CEO and Executive Vice President and seeks approval for the direction in response to the associated risks and opportunities as well as related measures to be taken.

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.

Environmental System

Environmental Management System

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.

Environmental Management System

Monitoring of Progress toward Environmental Targets

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.

Product Environmental Assessments

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.

Confirming the Effectiveness of Environmental Management (Internal environmental audit)

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 Chairman & CEO and the Executive Vice President in management reviews. In 2021, 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.

Obtained ISO 14001 consolidated certification (External audit)

Manufacturing and marketing companies worldwide obtain ISO 14001 consolidated certification as an objective third-party evaluation of EMS effectiveness. As of 2021, ISO 14001 certification covers Canon Inc. as well as 123 Group companies (587 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 Chairman & CEO of Canon Inc. as well as the Executive Vice President.

* Details
1. 99.9% of Canon Inc. and consolidated manufacturing companies worldwide (100 or more employees) obtained ISO 14001 certification, based on CO2 emission volume
2. Certifications Obtained

Environmental Regulatory Compliance and Response to Complaints

As a result of implementing an environmental management system coordinated across the Group, Canon came through 2021 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.

Environmental Performance Evaluations Coordinated with Business Management

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.

Environmental Performance Evaluations Coordinated with Business Management