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Global Sustainability Report 2020: Canon’s Philosophy of Kyosei

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Human prosperity is the result of economic development and technological innovation. In recent years, the twin forces of globalization and digitalization have elevated lifestyles to new levels of convenience and affluence. However, the flipside of this is the emergence of several global societal issues that grow in severity each year, including economic inequality, resource depletion and environmental issues. Innovation is needed to create solutions for these varied and complex societal issues.
The Canon Group has built its business over the years based on the philosophy of ‘kyosei’ and inherited corporate DNA comprising deep Respect for Humanity, an Emphasis on Technology, and Enterprising Spirit. Under its Excellent Global Corporation Plan, the group focuses on creating unique technology and ensuring business activities which are aligned with changing needs, while targeting faster progress in each business unit. The plan focuses especially on the three material themes of “Creating new value and solving social issues,” “Protecting and conserving the environment,” and “Responding to people and society as a good corporate citizen.”

1. Creating New Value and Solving Social Issues

Amid the various ongoing efforts being made globally to realize a more sustainable future, multiple challenges for companies remain. The march of technical innovation and globalization is generating various threats to the safety and security of homes and businesses due to societal issues, ranging from cyber-attacks or terrorist acts that target concentrated urban populations to aging demographics and novel infectious outbreaks. Delaying the response to rapid societal changes poses a risk for business. In contrast, actively mitigating such risks can be an opportunity for companies to generate additional growth by looking to address societal issues in ways that add original value to people’s lives. Canon group is addressing such issues with innovation.

1.1 Creating a Safe and Secure Society

A major issue in Japan has been development of a safe and secure infrastructure, both to support largescale sporting events such as the Rugby World Cup 2019 (TM) and the Olympic and Paralympic Games Tokyo 2020, and to respond to natural disasters associated with climate change. Amid social adoption of IoT technologies, Canon aims to promote development of social infrastructure by providing high-quality, high-performance network cameras, along with video content analytic software to analyze the vast amounts of videos from network cameras quickly and accurately.
Going forward, by strengthening collaboration and accelerating technical integration with other companies, Canon is aiming to develop network visual solutions for application in a variety of fields, including health, nursing care, education, transport, and urban infrastructure. It has put AI technology to practical use for detecting cracks in concrete structures as part of addressing the global issue of obsolete and aging infrastructure such as bridges and tunnels. Combining imaging and AI technologies to create accurate inspection data efficiently, Canon’s crack detection service significantly increases the efficiency of infrastructure inspections, contributing to the realization of a safe and secure society.

1.2 Scope in Medical Industry

Canon’s founder and first president, Takeshi Mitarai, who was also a doctor, was strongly committed to “contributing to society through medicine.” The company has reinforced medical operations as one of its new core businesses. It aims to supply solutions for patients and health professionals by combining AI with our proprietary image-processing technologies to support better medical diagnoses and improve patient outcomes.

2. Protecting and Conserving the Environment

Affluent consumer lifestyles contrast with the varied environmental problems that the planet now faces, including climate change, resource depletion, pollution and loss of biodiversity. Many countries are instituting policies to reduce CO2 emissions to address global warming, and there is a growing debate about the need for a circular economy to make effective use of resources. Recognizing these global developments and the business impact of environmental issues, companies believe it is vital to contribute to efforts to address these issues in partnership with national and local governments, experts and other stakeholders.
Along with continual analysis of related global trends based on information from specialist institutions and government agencies, Canon designates business risks and opportunities by field, based on various estimates about the social impacts of rising temperatures.

2.1 Materiality and Environmental Aspects

Canon works to protect and conserve the environment throughout the product lifecycle, with emphasis on four material areas: (1) contributing to a low-carbon society; (2) contributing to a circular economy; (3) eliminating hazardous substances and preventing pollution; and (4) contributing to a society in harmony with nature. To advance efficiently and effectively with initiatives in all areas, It takes regular action to monitor the characteristics of our business activities and their impact on the environment and to ensure that it remains up to date with social issues such as the Sustainable Development Goals (SDGs).

2.2 Global Environmental Promotion System

Canon Group companies around the world are working as one in carrying out environmental assurance activities to achieve the environmental targets and realize the environmental vision. Led by the Global Environment Center (GEC) under the supervision of the Executive Vice President of Canon Inc., who serves as the director in charge of the environment, the company carries out environmental activities in a global system that unites product operations, manufacturing sites and marketing companies worldwide.

2.3 Environmental Management System

The Canon Group has established an environmental management system (EMS) covering its operational sites in Japan and outside Japan as a mechanism for continually improving the quality and efficiency of environmental assurance activities according to ISO 14001 standards. This EMS promotes environmental assurance activities (Do), which are linked with activities of each division (products operations, operational sites, and Group companies).
In turn, the company sets annual and medium-term environmental targets (Plan) and establish action plans and important measures to achieve those targets, which are reflected in its business activities. Moreover, it carries out “Environmental audit programs” to check the progress of initiatives as well as any issues to be addressed in each division, and “Environmental performance evaluations,” to assess the environmental performance.
The Global Environment Center 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.

2.4 Contributing to a Low-Carbon Society

Canon promotes initiatives that help customers reduce their CO2 emissions. To enable customers to select products with lower CO2 emissions, it strives to disclose relevant information and are also in the process of obtaining carbon footprint (CFP) certification under the Sustainable Management Promotion Organization (SuMPO)’s CFP communication program. Additionally, by utilizing the Carbon Offset Program making use of CFP promoted by the Ministry of Economy, Trade and Industry, it has been able to realize products with practically zero lifecycle CO2 emissions.

2.5 Contributing to a Circular Economy

Canon pursues product-to-product recycling—in other words, recycling used products into new ones. In particular, it has emphasized such initiatives as closed-loop recycling of toner cartridges and the remanufacturing of office multifunction devices— collecting them post-use and making them into products with good-as-new quality. Currently, Canon has five sites conducting recycling, in Japan, Europe (two sites), the United States, and China.

2.6 Group Initiatives to Conserve Biodiversity

Canon Bird Branch Project

Biodiversity refers to the way living things interact as they coexist on earth. Within this sphere, birds occupy the top position in a local ecosystem pyramid of plants, insects, and small animals, symbolizing the cycle of life. Canon promotes the Bird Branch Project as a symbol of the activities it conducts based on its Biodiversity Policy. With the collaboration of local branches of the Wild Bird Society of Japan, it carries out regular on-site bird surveys at our operating sites in Japan, set up nesting boxes and bird baths, and take other measures to create a conducive habitat for wild birds. It also engages in active sharing of information, for instance by operating a relevant website and leading wild birdwatching tours open to employees and nonemployees.
Similarly at its overseas operating sites, Canon carries out surveys of wild bird breeding activity and set up nesting boxes and winter-time bird feeders as part of a varied program of wild bird protection activities. Through these activities, the whole Group will continue to engage in initiatives that not only help in preserving biodiversity but at the same time send out a message about its importance.

Canon Canada Branch Out

Canon Canada’s Branch Out Program gives employees at all levels the opportunity to help create green spaces and sustainable environments in their local communities. Branch Out began as a tree-planting program in 2014, but has evolved to include a wide range of sustainability activities, including cleaning up parks, rivers and shorelines, removing invasive plant species, restoring habitats and constructing turtle shelters. All employees from Canon Canada’s 13 offices, from Toronto to Quebec City and Vancouver, are encouraged to participate, sparing a few hours from their work schedule to volunteer.
Since the start of the program, employees have volunteered more than 9,700 hours in 68 locations across the country. Their achievements so far include planting more than 36,000 trees and shrubs, removing 7,000 m3 of non-native vegetation and restoring shoreline. In 2019, Canon Canada was recognized as one of Canada’s Greenest Employers by Canada’s Top 100 Employers Project, a partnership with the Globe and Mail newspaper. Companies who receive this designation are recognized for leading the way in creating cultures of environmental awareness.

Activity to Protect the Natural Environment in Partnership with Local Communities (Vietnam)

Canon Vietnam carries out activities to protect the natural environment in various regions of Vietnam. In 2019, around 80 employees took part in a treeplanting initiative in the Cuc Phuong National Park in Ninh Binh Province near Hanoi. With the support of the national park’s Turtle Conservation Center, they also built nests, cleaned up habitats, provided feed, and carried out other activities to help protect the rare turtles, which are threatened with extinction due to poaching, destruction of the natural environment, and other factors.

3. Responding to People and Society as a Good Corporate Citizen

3.1 Human Rights and Labor

With the global spread of economic activities, finding ways for individual employees of diverse backgrounds and values to utilize their individuality has become an important factor for sustainable development of corporations. In the international community, the United Nations “Guiding Principles on Business and Human Rights” and the International Labor Organization (ILO) “International Labor Standards” have been established, and the United Nations’ Sustainable Development Goals (SDGs) are encouraging companies to respect human rights as well.
Amid this situation, Canon is taking steps to create a workplace environment in which each employee’s rights are respected, and in which they feel highly motivated and are able to realize their full potential. The group believes that having each employee utilize their unique strengths and viewpoints will enable the company to realize sustained growth.
Based on its corporate philosophy of kyosei, the company has made concerted efforts to create a workplace environment that fosters mutual respect among the ethnically and culturally diverse workforce. In addition to working to ensure full compliance with laws and regulations in each country and region and to respect human rights as part of the development of global business activities, Canon has set the cultivation of globally competent human resources that think and act with a global mindset as one of its key strategies.

3.2 Diversity and Inclusion

Canon respects diversity of culture, customs, language, and ethnicity, and actively encourages the fair hiring and promotion of employees, regardless of gender, age or disability. Canon Inc. has in place Vital workforce and Value Innovation through Diversity (VIVID), a companywide, horizontally integrated organization to promote diversity.

3.3 Promoting the Active Participation of Women

Canon is committed to providing equal opportunities according to ability and fair treatment for all, irrespective of gender. Furthermore, it formulates action plans and disclose information as mandated by the Act on the Promotion of Female Participation and Career Advancement in the Workplace, while conducting initiatives that go beyond the minimum legal requirements.
At Canon Inc., a leadership training is organized for women as part of efforts to develop female candidates for managerial positions. Using the theme of developing a new business proposal, the training provides an opportunity to develop leadership skills. Since its launch in 2012, a total of 176 women have completed the training and are playing active roles in their workplaces, including at overseas locations. Partly as a result of these measures, the number of female managers had risen to 127 in 2019, compared with 58 in 2011. Furthermore, the group holds return-to-work seminars for employees returning from childcare leave and their supervisors, and provide mentoring by female managers. It also provides lectures and interviews with female executives, and share the experiences of female managers to create opportunities for raising awareness around working with purpose and balancing work with life events.

3.4 Encouraging Men to Participate in Childcare

Canon is promoting initiatives to encourage men to participate in childcare, with the goal of realizing a society where men and women participate equally as parents. At Canon Inc. and Group companies in Japan organize round-table talks by, and publish interviews with men who have used childcare leave-related systems, and hold seminars to introduce the childcare-related systems to employees who have newly become fathers.

3.5 LGBTQ+ Inclusion

The Canon Group Code of Conduct emphasizes respect for the individual and prohibits discrimination based on race, religion, nationality, gender, age, sexual orientation or gender identity. The company’s initiatives also cover sexual minorities, including lesbian, gay, bisexual and trans (LGBT) persons. With the goal of eliminating all forms of discrimination from the workplace, training for managers includes education on preventing discrimination. In addition, it makes use of various opportunities to educate employees, such as departmental staff meetings and compliance meetings.
With regard to provisions for employees who identify as a sexual minority, Canon provides such amenities as gender-neutral washrooms. It also has an internal hotline for employees wishing to speak with a specialist counselor.

3.6 Proactive Support for the Participation of People with Disabilities in Society

Respecting the ideal of normalization advocated by the United Nations, Canon proactively employs persons with disabilities at Canon Inc. and Canon Group companies in Japan. Canon Inc. has been doing their best to make workplaces more comfortable and accessible for people with disabilities by improving facilities, including providing greater barrier-free access. Additionally, it is working to expand the range and nature of jobs for people with disabilities, while also ensuring that they are settling into and becoming active members of their assigned workplaces.
Canon’s measures to prevent discrimination against people with disabilities and ensure reasonable consideration at each site include providing individual consultations and personalized assistance or instruction during evacuation training drills and disaster preparedness training. In 2019, Canon Inc. established a dedicated internal unit and took other measures to bolster support for helping employees with disabilities to settle into their workplaces.

3.7 Social Contribution Activities

Young People Programme Harnesses the Power of Positive Visual Storytelling As part of helping to realize a sustainable society, Canon Europe is developing the Young People Programme (YPP) to provide workshops that equip young people with the skills and tools to harness the power of positive visual storytelling, focusing on themes related to SDGs. In 2019, the YPP was held in 14 countries, including the UK, Belgium, South Africa, Germany and Lebanon. Since the programme was launched in 2015, it has supported more than 4,250 young people. The images created by the participants have been exhibited at the Visa pour l’Image International Festival of Photojournalism in France and the UN-sponsored Global Festival of Action in Germany.

3.8 The 4E’s Project in India

Canon India carries out the 4E’s Project in cooperation with local NGO Humana People to People India. The project provides various forms of assistance in the fields of eye care, education, environment, and empowerment to impoverished villages in the vicinity of the Canon India office. As a manufacturer of ophthalmic equipment, Canon is dedicated to making advancements in the field of eye care to assist people with vision impairment.
In India, where cataracts are a major cause of visual impairment, it is thought that 80% of such cases are preventable or treatable. Canon India opens vision centers in selected villages to give eye examinations and provide treatment using equipment manufactured by Canon. A total of 2,978 people visited these centers in 2019, with 374 receiving free eyeglasses. A further 165 patients were referred for treatment in hospital, with 20 receiving cataract surgery.
Meanwhile, in the fields of education and support for self-reliance, Canon India employees used printed booklets and role play to teach children about health and hygiene based on knowledge the employees had acquired in lectures organized by the United Nations World Food Programme. These activities won an award in the CSR Excellence category of the Mahatma Award, which recognizes individuals and organizations who have created an outstanding legacy in various areas of social contribution.

3.9 Support for Education in Asia

Canon is helping to support the education of the next generation across Asia. Targeting schools in regions with lagging infrastructure development, the Canon Group in Vietnam is involved in constructing classrooms and donating items such as desks, chairs and books. Employees regularly visit recipient schools to assist in the renovation of toilets, hand washing stations and other facilities, and to present donations of school supplies. Canon also collaborates with local universities to organize technology competitions and engages in other activities that contribute to improving Vietnam’s technology infrastructure.
Meanwhile, the Canon Group in Thailand continues with its program of using photography as a tool for voluntary activities at elementary schools. For 2019, more than 70 employees visited elementary schools to organize a wide range of activities, including classes in printing and photography, making photographic identity cards for students and school employees, and talks on nutritional science and recycling.
Elsewhere, Canon employees can make donations under a matching gift program. For example, since 1997 Canon Inc. has organized a Charity Book Fair to allow employees of the Canon Group in Japan to donate unwanted books, CDs and DVDs for sale at an in-house bazaar. The company matches the proceeds generated by the sale, and these funds are donated to organizations supporting education and medical services in Asia.
Disclaimer: The contents of this report are largely excerpts of the Canon 2020 Corporate Social Responsibility Report.