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Results of Major Efforts in 2011 and Future Plans

Global Environment

Action Plan for 2011 2011 Results Action Plan for 2012
Produce Raw Materials Reducing CO2 from raw materials/ procured goods Reduce waste in resource investment and energy in cooperation with suppliers
  • Executed pilot program with selected suppliers to reduce power use. Annual power consumption reduced approximately 20% compared with 2010.
 Reduce waste in resource investment and energy in cooperation with suppliers
Reduce environmental impact through the use of simulations during development
  • Executed evaluation simulation of degree of CO2 reduction target from the conceptual stage of product development.
 Reduce environmental impact through the use of simulations during development
Promoting environmentally conscious design Promote ultra-compact, lightweight, easy-to-use designs
  • Realized 63% weight reduction (6.2kg→2.3kg) for the CXDI-80C Wireless Digital Radiography System compared to previous wired models through the use of thinner housing (23mm→15mm). Use of a cassette 1/4 the size of previous models enables application for radiography in incubators.
 Promote ultra-compact, lightweight, easy-to-use designs
Use low-environmental-impact materials and promote designs with product lifecycles in mind
  • Added product labeling and recycling-conscious double-sided tape as categories for improved Recycling-Conscious Design Guidance.
  • Considered switch to low-environmental-impact materials for multifunction devices (MFDs), printers, cameras and toner cartridges in advance of regulation implementation.
 Use low-environmental-impact materials and promote designs with product lifecycles in mind
Reduce waste in accessories, packaging materials, etc.
  • Made change to CD-ROM format for manuals of compact digital cameras, digital SLRs, digital video camcorders, etc.; realized reduced paper use; achieved reductions in product weight and size.
  
Handling of hazardous substances in procured goods and legal compliance Expand green procurement; enhance environmental data management systems
  • Chemical Integrated Management System (for molded product chemical content) went online in January 2012.
  • Began operation of IT system for integrated management of regulatory and compliance status for new products launched after July 2011.
 Expand green procurement; enhance environmental data management systems
Instill confidence by strengthening compliance systems
  • Began audit trial practice with industry standards (JEITA Standardized Self-Audit Sheet) for efficient supplier management.
  • Installed new analysis device, improved analysis accuracy and expanded range of chemicals handled so as to strengthen Canon's system for analyzing chemical content in procured items.
 Instill confidence by strengthening compliance systems
Production Reducing CO2 at operational sites Reinforce energy-saving production technologies; promote installation of energy-saving equipment
  • Cut energy use on the production line by installing automated toner cartridge assembling equipment incorporating space- and energy-saving performance technology at Canon Precision.
  • Energy-conservation measures in place at all chemical product manufacturing sites in Japan to be enacted at sites outside of Japan (United states, China, France), beginning in 2012.
 Reinforce energy-saving production technologies; promote installation of energy-saving equipment
Raise efficiency by thoroughly managing energy use
  • Established Electric Power Countermeasure Project Team, began electric power-saving efforts in Japan, and launched the Canon Group Energy Management Committee to reinforce its activities in December.
  • Canon Marketing Japan received All Japan “Soumu”(General Affairs) Awards Superiority (cost savings, energy efficiency division) Award for energy efficiency efforts at the Shinagawa Headquarters (S Tower).
 Raise efficiency by thoroughly managing energy use
Use energy sources with less environmental impact
  • Improved volume of renewable electricity, purchased and generated by European sites, to 49% (sources: biomass, wind, water, solar, geothermal).
  • Switched from kerosene to LNG fuel for some boilers at Canon Precision, realizing CO2 emission reduction equivalent to 300 tons/year.
 Use energy sources with less environmental impact
Resource efficiency at operational sites Further reduce resource and energy waste through the introduction of Material Flow Cost Accounting (MFCA)
  • Participated in Japan's Ministry of Economy, Trade and Industry initiative toward MFCA international standardization (issued as “ISO14051 of Material Flow Cost Accounting— General Framework” in September 2011).
  • Reduced waste by 103 tons (equivalent to 120 million yen) using MFCA (Target: 100 tons, 100 million yen).
 Improving resource and energy waste reduction through MFCA, production innovations, etc.*
Improve the rate of transition to resource recycling and recycling technologies
  • Reduced toner waste by 11% in comparison to 2010 through improvements in toner manufacturing process.
  • Developed system for recycling fluorescent materials discarded in the manufacturing process for medical devices, resulting in 63% reduction of waste.
 Improve the rate of transition to resource recycling and recycling technologies
Management of hazardous substances and legal compliance Strengthen management systems for regulated chemical substances
  • Chemical Integrated Management System (for chemicals used at manufacturing sites) under construction.
 Strengthen management systems for regulated chemical substances
Employ preemptive development and use of substitute substances
  • Switched from chemical- to water-based solvents in cleaning process for digital radiography panels, reducing solvent use by about 250 kg.
  • Began installing VOC removal equipment at sites outside Japan (reducing VOC emissions at Canon Dalian by approximately 30%).
 Employ preemptive development and use of substitute substances
Logistics Reducing CO2 during distribution Shift to modes of transportation with less environmental impact (modal shift)
  • Promoted modal shift from air to ocean freight, mainly for overseas shipments of consumer goods. Reduced CO2 emissions attributable to air shipping by approximately 220,000 tons.
 Shift to modes of transportation with less environmental impact (modal shift)
Reduce waste in transport distances, loading methods and distribution processes
  • Began full-scale direct shipments to India from Asian points of origin, and concentrated distribution centers in port regions so as to reduce transport distances.
 Reduce waste in transport distances, loading methods and distribution processes
Improving
packaging
processes		 Simplify packaging through improved technologies and product strength
  • Reduced external packaging dimensions for new FINE cartridges by 30% compared to previous product, increasing packing capacity of shipping pallets by about 67% (number per pallet: 1,728→2,880).
 Simplify packaging through improved technologies and product strength
Eliminate waste from the packaging process and make it efficient
  • Reduced waste cardboard by approximately 140 tons through the use of returnable transport packaging for products shipped between manufacturing sites (China–Japan).
  • Switched to returnable from single-use outer boxes ones for copiers (Japan), and invested in their production at manufacturing sites in China from 2009. Achieved CO2 emissions reduction of 887 tons (9% improvement over 2010), waste reduction of 530 tons (19% improvement over 2010).
 Eliminate waste from the packaging process and make it efficient
Use Use Reducing CO2 during use Promote both energy efficiency and convenience through minimized energy consumption in standby mode, ultra-fast startup, etc.
  • Reduced power consumption of PIXMA MG6200 series inkjet printer during printing as well as when power is off or in sleep mode (daily power savings of about 41% compared to previous models).
  • Achieved 5W (for 100–120V equipment) power consumption during idling for imagePROGRAF iPF8300S large format inkjet printers through improvement of standby operation circuits.
  • Reduced throughput/power ratio approximately 30% in FPA-6300ES6a semiconductor lithography equipment by improving the linear motor efficiency and improving the liquid cooling system.
 Promote both energy efficiency and convenience through minimized energy consumption in standby mode, ultra-fast startup, etc.
Minimize energy loss during use through energy-saving technologies
  • Achieved TEC value (2.04kWh) for Satera MF9220Cdn laser printers.
  • Adopted high-efficiency linear motor in FPA-5510iV semiconductor lithography equipment, achieving annual energy consumption that is among best in the industry.
 Minimize energy loss during use through energy-saving technologies
Providing usage proposals Propose equipment settings and usage that balance convenience and environmental performance
  • Equipped four models of inkjet printer with the “ECO settings” function, enabling automatic two-sided printing and auto-power off that can easily be set using the LCD display.
 Propose equipment settings and usages that balance convenience and environmental performance
Strengthen the customer/product interface through Eco-Use support technologies, etc.
  • Commercialized the Ecology Information Plug-in, which is management utility software for visualization of CO2 emissions and reduction during use.
  • Received Eco-Products Awards Promotion Committee Special Award (Excellence Award for Energy Saving Service ) in the Eco-Services Category for the Ecology Information Plug-in and GREEN NAVI environmentally conscious action support website.
 Strengthen the customer/product interface through Eco-Use support technologies, etc.
Improving product value during use Promote disclosure of product environmental information
  • GREEN NAVI announced globally at CANON EXPO (2010–2011). Began looking into producing localized content.
  • Canon Marketing Japan won the Incentive Prize at Eco-Mark Awards 2010 for GREEN NAVI.
  • Added ECO settings information and environmental information, such as CO2 emissions, to inkjet product website.
 Promote disclosure of product environmental information
Promote both energy efficiency and improved imaging value
  • Achieved higher resolution (pixel pitch 160µm→125µm) and reduced power consumption (approximately 75% reduction compared to previous models) for the CXDI-80C Wireless Digital Radiography System.
 Promote both energy efficiency and improved imaging value
Recycle Recycling Strengthening recycling systems Expand “Collection and Recycle” systems for used products throughout the Canon Group
  • Ink cartridge collection and recycling expanded to 17 countries and regions (as of end April 2012).
  • Ink Cartridge Satogaeri (Homecoming) Project conducted by six inkjet printer manufacturers in Japan was awarded the Superiority Prize at the 13th Green Purchasing Network Awards.
  • In addition to major post offices, 151 local government offices, including Yokohama city government offices, were added to the sites where Ink Cartridge Satogaeri (Homecoming) Project collection boxes are placed, broadly expanding the total to approximately 1,900 sites (as of end April 2012).
 Expand “Collection and Recycle” systems for used products throughout the Canon Group
Improve efficiency by promoting remanufacturing (REM), component reuse, and recycling
  • Started the Centralisation Project to promote reuse of recovered products in Europe, increased reuse volume by 6% year-on-year.
  • Increased volume of recycled materials produced by Canon Virginia by approximately 30% year-on-year through improved yield.
  • Constructed the parts reuse structure for semiconductor lithography equipment, reused approximately 11 tons of parts.
 Encourage remanufacturing, parts reuse and recycling
Improving recycling processes Create advanced materials recycling technologies
  • Developed recycled plastic mixing technology that maintains uniformity even when a number of grades of collected plastic with different qualities are mixed, expanding recycling applications.
 Create advanced materials recycling technologies
Improve efficiency of disposal processes
  • Established foreign body (such as attached sponges and labels) removal technology for collected copiers.
  • Established new technology for cutting the case when breaking down ink cartridges, improving recycling efficiency. To be installed in 2012.
  • Installed automatic sorter for the ink cartridge sorting process that recognizes shapes, achieving efficiency in the sorting process.
 Improve efficiency of disposal processes
  • *Changed plan names so as to strengthen and expand efforts

Respecting Human Rights

Category Results in 2011 Future Plans
Concern for Human Rights Problems
  • Conducted Harassment Prevention Training for Managers; 246 participants in 2011, for a total of 3,707 in the program so far.
  • Have all managers take the Harassment Prevention Training course
Respect for Diversity
  • Career development and workplace environment improvement for female employees (Female managers: 59; Percentage of female managers: 1.4%) .
  • Continue with career development and workplace environment improvement for female employees

  • Promotion of re-employment after retirement
    （171 persons re-employed, total of 540 registered）.
  • Continue promoting re-employment after retirement
  • Conducted interviews with disabled employees and their superiors (Employment rate of disabled persons in 2011: 2%).
  • Oita Canon and the Gyoun Welfare Association held the Disabled Employee Support Forum.
  • Expand employment opportunities for the disabled and increase the fields of employment for which they are eligible
  • Held Cross Cultural Awareness Workshops in Europe (25 times at four sites; approx.500 participants).
  • Continue with the workshops and increase the number of sites where they are held

Establishing a Proper Workplace Environment

Category Results in 2011 Future Plans
Promoting Good Work-Life Balance
  • Implemented No Overtime Days and the Summertime System to reduce overtime (Total actual annual working hours per employee in 2011: 1,768, representing year-on-year reduction of 31 hours).
  • Maintain total actual annual working hours per employee of 1,800 or less
Supporting Personal Growth and Skill Development　
  • Held the Tokyo Seminar for management-level employees of Group companies outside Japan (2011 participation: 25 participants in the international version for a cumulative total of 1,028; 21 in the China version).
  • Continue to hold the seminars
  • Expanded the Overseas Training System for young employees (2011 participation: 11 participants in the Technicians Overseas Study Program; 10 in the Asia Trainee System).
  • Continue with the training systems, and increase the number of employees who can work effectively worldwide.
  • Conducted technical and skills training, foreperson training, and trainer development programs at production subsidiaries in Southeast Asia and China. Total number of participants: 986.
  • Continue conducting training programs
Occupational Health and Safety
  • Implemented training of new employees, transferees, and mid-level employees. Decreased from 50 to 41 the number of workplace accidents involving employees who have worked less than one year.
  • Continue with safety education
  • Executed risk assessments, including of irregular tasks. Number of incidents of equipment pinching or entanglement: reduced from 16 to 10.
  • Continue with risk assessments of irregular tasks, as well as chemical risk assessments, with the goal of eliminating serious machinery accidents
  • Introduced and received certification for Occupational Safety and Health Management Systems (OSHMS) at domestic sites (certification newly received by two worksites, bringing to 16 the total number of sites OSHMS certified to JISHA standards as of the end of 2011).
  • Introduce OSHMS and receive certification for all production sites in Japan by 2012
  • Verified safety education plans and structures through safety patrols conducted at 17 domestic sites.
  • Conduct safety patrols that include support for introduction of OSHMS at sites that have yet to introduce it
Health Management
  • Introduced a new health management system as a measure for prevention of metabolic syndrome.
  • Draw up medium- to long-term vision for employee health management

Fair Operating Practices

Category Results in 2011 Future Plans
Compliance
  • Established the Global Legal Affairs Coordination Meeting for strengthening Canon's handling of laws and regulations in Japan and overseas.
  • Proceed with committee efforts, such as improving and strengthening the trade secrets management system and establishing/revising policies concerning security trade control and international transaction taxation
  • Held Global Legal Affairs Seminars (four times).
  • Hold seminars concerning trade secrets management and Guidelines for Uniform Labeling in Measurement Units
  • Held explanatory meetings concerning security trade control (18 meetings with a total of approx.1,300 participants), and provided advice and support to 46 Group companies.
  • No violatons occurred among our Group companies.
  • Expand the range and strength of support, especially that provided to overseas Group companies
  • Maintain no-violation record among Group companies
  • Held Compliance Week (participation by more than 40,000 employees).
  • Continue to hold Compliance Week
Fair Trade
  • Formed project team within Canon Inc. to establish a structure for responding to laws and international guidelines concerning conflict minerals.
  • Continue to make efforts to determine the origin of minerals used in our products and prevent the use of conflict minerals
  • Continuously implemented open procurement in accordance with Canon's own supplier evaluation standards (81 applications made, of which two are being considered for adoption) .
  • Continue to implement open procurement
  • Held business trend briefings and procurement policy briefings for suppliers at 15 sites.
  • Continue to hold regular business trend briefings and procurement policy briefings
Intellectual Property
  • Canon prevailed in a patent infringement lawsuit concerning laser printer toner cartridges and photosensitive drums.
  • Strengthen customs border measures and Internet trade surveillance concerning counterfeit goods
  • Canon held approx. 86,000 patents and utility models worldwide as of the end of 2011.
  • Ranked third in granted US patent.
  • Continuously acquire useful patent rights
  • Strengthen patent filing in China

Customer Care

Category Results in 2011 Future Plans
Ensuring Product Safety
  • Held Substantial Safety Training courses for young employees (six sessions) and conducted e-learning for full awareness of the Voluntary Action Plan for Product Safety.
  • Provided information to suppliers concerning product safety.
  • Continue with employee training
  • Provide information to suppliers concerning product safety
  • Conducted safety evaluations of product chemical emissions.
  • Reflect changes to the German Blue Angel environmental labeling standards in our evaluations
Pursuing Universal Design
  • Launched our official Web site introducing Canon's universal design approach and efforts.
  • Continue to provide universal design information
  • Revised user manuals for compact digital cameras, making them easier to understand and more readable.
  • Continue to make such user manual improvements as online manuals and providing equipment operational support information accessible on the devices themselves
Strengthening Customer Support
  • Continued working to improve the level of service in Chinese markets. Conducted online customer survey.
  • Examine the support structure in China based on the results of the survey
  • Held a technical skills competition for customer engineers (CEs) in charge of　office network multifunction device (MFD) after-sales service.
  • Continue CE competition
  • Enhanced service centers in Southeast Asia and South Asia, as well as increased the number of cities served (Service expanded to cover 1,403 cities in India).
  • Enhance and expand the number of service centers (renovate and improve service centers in Malaysia and Thailand)

Regional and Community Contributions

Category Results in 2011 Future Plans
Support for Disaster Areas
  • Contributed a Group total of ¥400 million for Great East Japan Earthquake recovery efforts, and engaged in a variety of other support activities.
  • Continue to provide recovery support tailored to local needs in areas stricken by the Great East Japan Earthquake
Regional Contribution
  • Conducted 39 nature restoration efforts at 15 locations as part of the Furusato Project—Linking Our Dream to the Future, with the participation of 729 volunteers. Contributed ¥22.31 million to environmental NPOs and NPOs/NGOs providing restoration support following the Great East Japan Earthquake.
  • Continue with efforts by linking up with NPOs
  • Donation to the Satoyama Initiative made through the Ink Cartridge Satogaeri (Homecoming) Project, with an initial donation of ¥800,000.
  • Continue to make donations in support of restoration of satoyama and satoumi areas in regions affected by the Great East Japan Earthquake
Support for Technical Research and Academia
  • Completed and contributed to Kyoto's Kenninji Temple reproductions of 20 of 50 Hojo wall paintings, which are considered important cultural assets, through the Tsuzuri Project.
  • Develop a variety of activities using "folding screen featuring cherry blossoms" and "folding screen featuring cranes" at the Tokyo Metropolitan Art Museum
  • 17 items from the Research Cultivation Program selected for Canon Foundation grants.
  • Continue with the Research Cultivation Program

Organizational Governance

Category Results in 2011 Future Plans
Corporate Governance
  • Strengthened internal audits by expanding scope and content (1,800 improvement recommendations based on 128 themes).
  • Strengthen and expand internal auditing system
Security
  • Conducted self-inspections by each Group company and field inspections by regional marketing headquarters. Confirmed that each company is generally in good shape.
  • Continue to conduct inspections and make improvements based upon previous results
  • Revised the Outsourcing Selection Standards for personal information, and established management methods corresponding to the importance of the information.
  • Revise the management methods and implement employee training, including intensive training to necessary employees
  • Improved the Information Security Training Program. Approximately 26,000 participants.
  • Continue to improve the awareness of employees by using the information infrastructure
  • Inspected trade secrets management situation at 45 Japanese and overseas Group companies.
  • Continue to inspect the trade secrets management situation once a year
  • Began work toward centralized control of Group company room entry and exit logs at Canon headquarters. Introduced the Integrated Entry and Exit Management System at Hita Canon Materials.
  • Construct system for centralized control of room entry and exit logs at Group companies by Canon headquarters
Business Continuity Plans for Disaster Response
  • Issued the Earthquake Measure Guideline and carried out disaster drills for response to a high-magnitude earthquake.
  • Strengthen the first-response system for disasters, such as by strengthening the means for communication and redeveloping the communications network
  • Strengthened quake resistance at production facilities. Revised parts and materials procurement routes.
  • Revise the supply chain that encompasses procurement, distribution, production, etc.
Appropriate Information Disclosure and Returns to Shareholders
  • Held a corporate strategy conference, financial report conferences, and a briefing for individual investors.
  • Continue to conduct various such briefings and conferences
  • Maintained high dividend (¥120 per share annually).
  • Continue to provide stable returns and actively distribute profits to shareholders

CSR Activities

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