Environmentally Conscious Management
Promotion System
Global Environmental Promotion System
Led by the Sustainability Headquarters under the supervision of the CFO of Canon Inc., Canon is conducting environmental activities with the aim of achieving the Group’s environmental targets and realizing our environmental vision. We use a global framework comprising the Canon products operations and Canon 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 Sustainability Committee deliberates on response measures and the Group Executive for Sustainability Headquarters reports to the CEO and the CFO and seeks approval for the direction of the response to the associated risks and opportunities.
Environmental Management System
Canon has instituted a common environmental management system (EMS) in line with the ISO 14001 standard covering Group operational sites worldwide. 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 and CSR 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. The 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. Reflecting the need for independent, third-party evaluation of EMS effectiveness, all Canon Group operating sites with manufacturing or marketing functions are ISO 14001-certified. In 2023, Canon Inc. as well as Group companies operating in 40 countries and regions (in total, 120 companies/553 operational sites) had gained ISO 14001 certification. The acquisition of consolidated Group certification has supported stronger corporate governance and more efficient environmental management. EMS certification status is one element of the management review used to monitor this area, which includes relevant reporting to and approval of both the CEO and CFO of Canon Inc.
Canon’s Environmental Management System
Confirming the Effectiveness of Environmental Management
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. The results from internal environmental audits are collated by Sustainability Headquarters and reported to the CEO and the CFO of Canon Inc. via 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.
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 Evaluation Process
Monitoring of Progress toward Environmental Targets
Operational sites report monthly to Sustainability Headquarters on energy consumption, volume of waste generation, chemical substance emission volumes, and water usage. Monthly aggregates are tracked against targets to monitor progress, and are also reported monthly to executives, the general managers of business divisions, and senior managers at major Canon 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.