Environmental and Social Material Topics

Identifying Material Topics

In 2022, based on the GRI Standards as revised in 2021, Canon used the four-step process outlined below to identify six material topics by considering the positive and negative, direct and indirect impacts of Group activities to the environmental and social areas.

Of the six topics identified, four were regarded as of greater importance: three themes (Climate Change; Resource Efficiency, Chemical Substances) due to being issues our society faces, while also affecting Canon’s operating sites and product competitiveness due to the trend towards stricter regulation worldwide; and the fourth topic (Human Rights and Labor) as being vital to underpin the mutual respect between individuals that helps create workplaces with innovative potential, thereby sustaining our business development. Although important, the fifth theme (Biodiversity) was regarded as having a lesser impact on our business, while the sixth topic (Sociocultural Support Activities) was deemed important based on the recognition that the development of society as a whole supports our corporate activities. Results from this analysis were discussed with outside experts to maintain objectivity, before approval by management.

Every year we review the sustainability trends in countries and regions worldwide and analyze related legislative and regulatory developments to help review our sustainability activities. There has been no change to the environmental and social material themes we established in 2022, including climate change, the recycling of resources, and human rights.

Internally, we continue to establish specialized projects and specific activities for addressing these issues.

Identification Process

The environmental and social material topics were identified via the following four-step process.

STEP1 Identify social issues: Define environmental/social impacts of Canon as reflected in business conditions, plus related societal demands, based on: social megatrends; GRI Standards and other international frameworks; ESG markers and findings of sustainability and stakeholder surveys; a comprehensive grasp of social demands and issues through direct dialogue

STEP2 Compare against Group business activities: Gauge the impact that Group business activities and actions taken in line with the mediumto long-term management plan have on the environment and society

STEP3 Assess importance: Evaluate the significance of the impacts for each of the issues identified in Step 2

STEP4 Validation and approval: Validate the selected activities and priorities via dialogue with outside sustainability experts on the results of the assessment , Identify material topics in environmental and social areas with management approval

Environmental and Social Material Topics

★: Target met, good ☆: Target partially met

	Identified material topics	Significance	Goals	Targets	Results, achievements in 2023 (KPIs)	Status
Environmental domain	Climate change	Very important	Achieve net zero CO₂ emissions over entire product lifecycles by 2050	In line with SBTi criteria, reduce Scope 1 & 2* GHG emissions by 42% and Scope 3* (category 1, 11) emissions by 25% by 2030 compared to 2022	Reduced Scope 1 & 2 emissions by 10.2% and Scope 3 (category 1, 11) emissions by 18.5% compared to 2022(→P18)	★
				Lifecycle CO₂ emissions improvement index per product in 2023-2025: 3%-per-year average improvement, 50% improvement in 2030 compared to 2008	Lifecycle CO2 improvement index per product: Annual average of 3.95% (2008-2023) (→P18)	★
				Raw materials and use CO₂ emissions improvement index per product in 2023-2025: 3%-per-year average improvement	Raw materials and use CO2 emissions improvement index per product: Annual average of 2.37% (2008-2023) (→P18)	Although we are making steady improvements, the target has not been met due to slow progress
				Improvement in energy consumption per basic unit in 2023: 2.4%	Improvement in energy consumption per basic unit: 4.5% improvement (→P18)	★
	Resource efficiency	Very important	Contain new resource input and use recycled materials Completely eliminate single-use plastics in packaging materials	Improvement in total waste generation per basic unit in 2023: 1%	Improvement in total waste generation per basic unit: 1.4% deterioration (→P18)	Not met due to increased waste stemming from production adjustments, etc.
				Improvement in water usage per basic unit in 2023: 1%	Improvement in water usage per basic unit: 0.8% deterioration (→P18)	Not met due to increased water usage stemming from equipment maintenance, etc.
				Reduce single-use plastics in packaging materials	“PowerShot V10” awarded for initiatives to eliminate plastic from packaging materials at 2023 Japan Packaging Contest in the category for packaging of electronic goods and appliances (→P31)	★
				Resource recycling rate for printing products in 2025: 20%. In 2030: 50%	Resource recycling rate for printing products in 2023: approx. 17% (→P29)	★
	Chemical substances	Very important	Careful management of chemical substances in products and in manufacturing	Emissions of controlled chemical substances per basic unit in 2023: 1% improvement	Emissions of controlled chemical substances per basic unit: 0.2% deterioration (→P18)	Not met due to greater use of chemical substances stemming from increased parts cleaning, etc.
	Chemical substances	Very important		Prohibit inclusion of designated chemical substances in products one year before ban	No prohibited substances in products (→P34)	★
	Biodiversity	Important	Conserve biodiversity from a global perspective while considering diverse local characteristics Reduce impact on biodiversity of all business activities and promote social contribution activities that help conserve biodiversity	“Consideration for biodiversity centered on operational sites”: Ascertain impact of business activities on biodiversity, conserve animal and plant habitats around operational sites	Fostered biological species at operational sites (→P37) Expanded Bird Branch activities Created on-site environments conducive to wild bird life, such as developing biotopes and installing and cleaning bird baths and nesting boxes, took measures to protect against bird strikes; and took part in seasonal wildlife monitoring (→P37) Shimomaruko Woodland certified as a “Nature Symbiosis Site” by the Japanese Ministry of the Environment, contributing to achievement of the Global 30by30 Target committed to at the G7 Summit (→P38) Maintained factory green spaces (→P38)	★
				“Contribution to the realization of a community rich in biodiversity”: Promote biodiversity conservation activities and educational activities in collaboration with local communities	With expert help, created environments conducive to wild bird life (→P37) Held on-site environmental classes and career education for elementary and junior high school students (→P38)	★
				Purchase paper products with a view to forest resource conservation	Adopted office paper made under forest certification schemes or using environmentally conscious raw materials(→P37)	★
Social domain	Human rights and labor	Very important	Respect the human rights of all stakeholders involved in Canon’s business activities	Mitigate risks by conducting human rights due diligence	Identified salient human rights risks in business activities including the supply chain (→P43) Self-audits by sites in Japan and overseas using RBA tools: 59 sites (→P46)	★
			Highly motivational workplace environments for employees	Proper management and reduction of working hours in compliance with the laws of each country and region	Total work hours at Canon Inc.: 1,734 hours (65 hours less than 1,799 hours in 2010) (→P48)	★
			Highly motivational workplace environments for employees	Encourage employees to take paid leave	Annual average paid leave taken at Canon Inc.: 17.7 days (→P48)	★
			Environments that maximize the individuality and potential of employees, ensure mutual respect for diversity, and empower employees	Canon Inc.: Increase ratio of female managers by 3x by end-2025 from 2011 level	The ratio of female managers at Canon Inc.: Achieve 93% of the target by the end of 2025 (→P51) Based on the Vital workforce and Value Innovation through Diversity (VIVID) activities policy, besides roundtable discussions between female employees and presidents and awareness surveys, actions included networking events with female leadership candidates inside and outside the company, training related to career advancement, female leadership, and returning from childcare leave (→P51)	☆
				Canon Inc.: Increase ratio of male employees taking childcare leave to at least 50% by end-2025	Ratio of males taking childcare leave at Canon Inc.: 65.8% (increase of 63.9ppt from 1.9% in 2011) (→P52)	★
				Active recruitment of people with disabilities	Employment ratio for people with disabilities at Canon Inc.: 2.55% (statutory minimum 2.3%) (→P53)	★
			Safe, secure workplace environments for employees	Canon Inc. and Group companies in Japan: Eliminate all types of machinery-related accidents (0 cases)	Canon Inc. and Group companies in Japan: All types of machinery-related accidents (1 case) (→P55)	Not met due to occurrence of an accident
				Canon Inc. and Group companies in Japan: Eliminate accidents caused by highly hazardous chemical substances (0 cases)	Canon Inc. and Group companies in Japan: Accidents caused by highly hazardous chemical substances(0 cases) (→P55)	★
				Promotion of health management	Canon Inc.: Awarded Health & Productivity Stock Selection for fifth consecutive year from 2019 to 2023 (→P56)	★
			Environments where each employee can build a career and play an active role	Develop rank-based training programs for personnel, conduct courses and implement other initiatives	Technical trainees across Canon Inc. and Group companies in Japan: 6,638, based on 273 courses (→P58) The Canon Institute of Software Technology, a training facility for software engineers, offers programs ranging from education to hone the skills of engineers in charge of product software development to training for new employees and employees aiming to change jobs (→P58)	★
				Implement career development support measures	Canon Inc.: 304 employees transferred jobs via internal career matching system (→P59)	★
	Sociocultural support activities	Important	Contributing to the realization of a better society as a good corporate citizen	Promote sociocultural support activities in global and local communities by leveraging the Group’s advanced technological capabilities, global business development expertise, and diverse, specialized human resources	Showcased Canon Young People Programme to foster creativity and expressiveness in young people at two United Nations events (→P62) Participants in Miraisha Programme aiming to increase employment opportunities and technical skills in Africa: About 300 (→P61) Beneficiaries in 4E’s Project providing multi-faceted assistance in India: 20,081 (→P63) Visitors to Tsuzuri Project special exhibition preserving ancient Japanese cultural assets for the future: About 40,000 (→P64)	★

* Scope 1: Direct emissions (city gas, LPG, light oil, kerosene, non-energy-related greenhouse gases, etc.)
Scope 2: Indirect emissions (from use of electricity, steam, etc.)
Scope 3: Supply chain-related emissions (emissions from purchased goods and services, upstream transportation and distribution, and utilization of sold products).

Environmental and Social Material Topics (PP11-12) (1.0MB)