Management of Hazardous Substances and Legal Compliance
Reducing Emissions of Controlled Chemical Substances
Canon strives to eliminate or reduce hazardous chemical substances used in the manufacturing process. For substances difficult to eliminate or reduce, our policy is to minimize their release into the air or water.
Approximately 3,000 controlled chemical substances*1 that we handle are classified as A) for elimination of use, B) for reduction of use or C) for reduction of emission. We have attained positive results by applying different measures to these substances based on their classification.
We continued studying emissions controls on controlled chemical substances in 2010, which led to our use of water-based paint on compact digital cameras. Oita Canon began using water-based paint on the lens barrel portion (black) of the IXY series of compact digital cameras.
Emissions of controlled chemical substances in 2010 increased 25% year-on-year due to a recovery in the production volume and other factors, reaching 971 tons. Also, PRTR-listed substance*2 emissions increased 56% year-on-year, reaching 114 tons.
Canon will continue to implement effective countermeasures to reduce chemical substance emissions in 2011.
- *1Controlled chemical substances
These are chemical substances with some restriction on use and management. These substances include those hazardous to human health, inflammable substances and substances that are hazardous to the environment (such as those that contribute to global warming). - *2PRTR system
The Pollution Release and Transfer Register (PRTR) system requires the notification and public disclosure of the amount of designated chemical substances released into the environment and transferred as waste.

Emissions of Controlled Chemical Substances and Amount of Chemical Substances Designated by the PRTR System
| Substance Eliminated | Date Eliminated | |
|---|---|---|
| Ozone-Depleting Substances | Chlorofluorocarbons (CFCs), 15 types | December 1992 |
| 1,1,1-Trichloroethane | October 1993 | |
| Hydrochlorofluorocarbons (HCFCs), 34 types | October 1995 | |
| Greenhouse Gases*1 | Perfluorocarbons (PFCs) | December 1999 |
| Hydrofluorocarbons (HFCs) | December 1999 | |
| Soil Contaminants | Trichloroethylene | December 1996 |
| Tetrachloroethylene | December 1996 | |
| Dichloro methane (for cleaning) | December 1997 | |
| Dichloro methane (for thin film coating)*2 | October 2003 | |
- *1Excludes use in semiconductor production
- *2Discontinued use in Japan in December 2001
| Directive No. | Name | Atmospheric emissions amount | Public waterway emissions amount | Amount Transferred to sewage system | Amount of waste transferred | Amount of recovered substance transferred |
|---|---|---|---|---|---|---|
| 007 | N-butyl acrylate | 46 | 0 | 0 | 0 | 84,323 |
| 020 | 2-aminoethanol | 229 | 0 | 623 | 415 | 30,134 |
| 031 | Antimony and its compounds | 0 | 0 | 0 | 0 | 1,878 |
| 044 | Indium and its compounds | 0 | 0 | 0 | 0 | 0 |
| 053 | Ethylbenzene | 612 | 0 | 0 | 603 | 24,074 |
| 071 | Ferric chloride | 426 | 0 | 0 | 0 | 4,725 |
| 080 | Xylene | 10,654 | 0 | 0 | 3,492 | 104,901 |
| 082 | Silver and its water-soluble compounds | 0 | 1 | 0 | 13 | 481 |
| 125 | Monochlorobenzene | 33,167 | 0 | 0 | 4,165 | 418,381 |
| 127 | Chloroform | 58 | 0 | 0 | 0 | 1,880 |
| 128 | Methyl chloride | 0 | 0 | 0 | 0 | 2,431 |
| 150 | 1,4-dioxane | 881 | 0 | 0 | 0 | 1,157 |
| 181 | Dichlorobenzene | 0 | 0 | 0 | 0 | 18 |
| 202 | Divinylbenzene | 0 | 0 | 0 | 0 | 16 |
| 232 | N,N-dimethylformamide | 1,738 | 0 | 0 | 0 | 121,995 |
| 240 | Styrene | 3,679 | 0 | 0 | 0 | 116,463 |
| 296 | 1,2,4-trimethylbenzene | 15,290 | 0 | 0 | 0 | 50,298 |
| 298 | Tolylene diisocyanate | 0 | 0 | 0 | 0 | 5,688 |
| 300 | Toluene | 40,825 | 0 | 0 | 14,590 | 80,914 |
| 305 | Lead compounds | 0 | 0 | 0 | 0 | 1,163 |
| 306 | Hexamethylene diacrylate | 0 | 0 | 0 | 0 | 1,067 |
| 308 | Nickel | 0 | 0 | 0 | 0 | 745 |
| 309 | Nickel compounds | 0 | 0 | 25 | 0 | 6,981 |
| 343 | Pyrocatechol | 134 | 0 | 0 | 0 | 5,747 |
| 349 | Phenol | 14 | 0 | 0 | 11 | 122 |
| 374 | Hydrogen fluoride and its water-soluble salts | 424 | 23 | 2,289 | 113 | 9,518 |
| 384 | 1-bromopropane | 766 | 0 | 0 | 133 | 89 |
| 392 | N-hexane | 4,283 | 1 | 0 | 733 | 1,363 |
| 395 | Water-soluble salts of peroxodisulfuric acid | 0 | 0 | 0 | 0 | 15 |
| 408 | Poly (oxyethylene) octylphenyl ether | 0 | 0 | 0 | 1 | 3,151 |
| 412 | Manganese and its compounds | 0 | 0 | 0 | 0 | 179 |
| 448 | Methylenebis (4,1-cyclohexylene) diisocyanate | 0 | 0 | 0 | 0 | 24,048 |
- *49 Class 1 chemical substances used in amounts of 0.1 tons or greater; of those, the above data is for emissions or transfer related to use of such substances in amounts of 1 ton or more.
- *There was no discharge into the soil and no landfill at operational sites.
- *The data above is for the period from January 1 to December 31, 2010.
13th Ozone Layer Protection and Global Warming Prevention Awards
In September 2010, Oita Canon and Canon received the Excellence Award for their joint "Global Warming Countermeasure Through Recovery & Recycling of Fluorinated Solvents" at the 13th Ozone Layer Protection and Global Warming Prevention Awards.
These awards were established in 1998 by the Nikkan Kogyo Shimbun to promote ozone layer protection and global warming prevention measures. Businesses are commended for efforts to develop systems and technologies to prevent ozone layer depletion and stop global warming.
This year's award was received in recognition for thorough global warming countermeasures, such as switching to fluorinated solvent (HFE), which has a low global warming coefficient, in parts manufacturing for digital cameras and other equipment, and recovering and recycling upwards of 90% of the atmospheric release of that substance.

Acceptance of the award at the Tokai University Friendship Hall
Introducing VOC Removal Equipment at Canon's Photosensitive Drum Coating Line
The coating line for photosensitive drums mounted in copying and other machines employs VOCs.
Canon has long battled to cut emissions of VOCs and other controlled chemical substances. To bolster the effects of these endeavors, we have turned our focus to coating lines, with their high emissions record. In March 2008, we began installing VOC removal equipment at Company plants that house coating lines.
This apparatus thermally decomposes and purifies VOC gasses, facilitating continuous treatment, which leads to high removal efficiency. We had installed eight such units as of 2010.
At the plants equipped with VOC removal equipment, we have recorded a significant cutback in emissions of controlled chemical substances per production unit, largely attributable to implementation of such measures as hermetic sealing of equipment.

VOC removal equipment
PCB Waste Management
In accordance with relevant laws, Canon strictly manages polychlorinated biphenyl (PCB), which affects living organisms and the environment. As of December 2010, 19 operational sites were storing PCB waste. There are 170 capacitors and transformers (which also contain low concentrations of PCB waste) and 3,598 fluorescent ballasts in storage.
Canon has since 2004 contracted the processing of its PCB waste to the Japan Environmental Safety Corporation. We expect this company continue its orderly processing of PCB waste.
Effects on Atmosphere and Public Waterways
Canon alleviates the environmental burden of its operational sites by reducing emissions of NOx*1 and SOx*2, which are major causes of air pollution and acid rain; reducing discharges of phosphates and nitrogen compounds, which cause the eutrophication of water environments; and reducing BOD*3 and COD*4 indexes, which have an environmental burden on water environments.
Specifically, as measures to prevent atmospheric pollution we are switching fuel types from heavy oil to kerosene and introducing low-NOx boilers. Furthermore, we are reducing environmental burden by installing the latest wastewater treatment equipment and striving to reduce the environmental burden of substances such as phosphates and nitrogen.
We also regularly measure the environmental burden of emissions from operational sites under applicable laws and regulations for each region and also under Canon voluntary in-house rules.
- *1Nitrogen oxides (NOx)
A major cause of air pollution, acid rain and photochemical smog, NOx is generated when the nitrogen in fuels is oxidized or when nitrogen in the atmosphere is oxidized during high-temperature combustion. - *2Sulfur oxides (SOx)
A major cause of air pollution and acid rain, SOx is generated when fossil fuels such as oil and coal are burned. - *3Biochemical oxygen demand (BOD)
BOD is the amount of oxygen consumed when microorganisms degrade organic matter in water. - *4Chemical oxygen demand (COD)
COD is the amount of oxygen consumed when oxidizing agents oxidize organic matter in water.
Remediation of Soil and Groundwater by the Canon Group
Since the 1980s, Canon has focused on soil and groundwater protection by carrying out regular voluntary surveys of soil and groundwater, using records of past hazardous substances as reference.
Since 1994, we have made it obligatory to carry out continuous surveillance of pollution using monitoring wells. If amounts of pollutants in groundwater are found to exceed legal standards, we respond by pumping water to prevent the spread of contaminants, excavating and removing the pollutants themselves, and implementing other appropriate measures.
We also carry out soil surveys and apply pollution prevention measures whenever we acquire new land. Canon's basic policy is to clean up the soil and take other steps as needs dictate to ensure complete cleanup prior to proceeding with the purchase.
Further, Japan's Soil Contamination Countermeasures Law, enacted in 2003, stipulates the monitoring of specified areas for two years following cleanup work with subsequent confirmation of cleanup. We carry out our own monitoring to check for the presence of soil and groundwater pollution at all our sites in Japan.
Moreover, in step with enactment of Japan's Soil Contamination Countermeasures Law, we formulated the Canon Group's Basic Policy on Soil and Groundwater Pollution in July 2006. Thereafter, Canon has relentlessly implemented countermeasures based on this policy.

| Operational Site | Substance | Situation as of May 2011 | Measure |
|---|---|---|---|
| Shimomaruko | trichloroethylene, etc. | Cleanup in progress | In-situ cleanup, Excavation and elimination, Water quality measurement |
| Meguro (Training Center) | tetrachloroethylene, etc. | Cleanup in progress | In-situ cleanup, |
| Meguro (Dormitory) | tetrachloroethylene, etc. | Cleanup in progress | In-situ cleanup, |
| Tamagawa | tetrachloroethylene, etc. lead and its compounds, etc. |
Cleanup in progress | In-situ cleanup, Excavation and elimination, Covering, Water quality measurement |
| Utsunomiya Parking lot I | fluorine and its compounds, etc. | Cleanup in progress | Pumping, Excavation and elimination, Water quality measurement |
| Kanuma | tetrachloroethylene, etc. lead and its compounds, etc. |
Cleanup in progress | Pumping, In-situ cleanup, |
| Hiratsuka Plant No. 1 | fluorine and its compounds, etc. | Cleanup in progress | Pumping, Covering, Water quality measurement |
| Toride | trichloroethylene, etc. hexavalent chromium and its compounds |
Cleanup in progress | Pumping, In-situ cleanup, Excavation and elimination, Water quality measurement |
| Kosugi | tetrachloroethylene, etc. | Cleanup in progress | In-situ cleanup, Excavation and elimination, Water quality measurement |
| Canon Electronics, Yokoze | trichloroethylene, etc. | Under adjustment | Water quality measurement |
| Canon Electronics, Yamada | trichloroethylene, etc. | Under adjustment | Water quality measurement |
| Canon Semiconductor Equipment | 1,1-dichloroethylene, etc. lead and its compounds, etc. |
Cleanup in progress | Pumping, Excavation and elimination, Covering, Water quality measurement |
| Nagahama Canon | hexavalent chromium and its compounds | Cleanup in progress | Covering |
- *Reports are made to the authorities concerning sites where cleanups are in progress.
- *Beginning with this 2011 report we have revised the "Status of Soil and Groundwater Cleanup Activities" table above to make it more easily understandable.
2010 Review
Our regular groundwater monitoring revealed one new case in which standard values had been exceeded. In this case, water in a Canon Hiratsuka monitoring well was found to contain fluorine in excess of standard values. We consulted with the authorities about cleanup measures, and as a result we plan to pump out the monitoring well.
We completed the cleanup work at the former Fuchu Headquarters of Canon ANELVA in March 2010, and the monitoring period set by the authorities also ended in July 2010. We found that revisions of the Soil Contamination Countermeasures Act in April 2010 were applicable to the relocation plans for the Kanuma Annex. Therefore, we are in the process of conducting a soil examination in accordance with the law.
Future Cleanup Efforts
As of 2011, there are outstanding pollution issues at 13 of Canon's Japanese operational sites. (Please refer to the chart above concerning soil and groundwater remediation status.) Canon is currently implementing legally-mandated pollutant removal measures for completing the cleanup in line with our basic policies at these sites.
We are also assessing chemical substances in use at all operational sites outside Japan and assessing national and regional standards for each in developing appropriate risk countermeasures.
Moreover, we provide countries and regions where such standards do not exist with Japanese standard values for strict compliance and guideline figures to serve as targets. For example, Malaysia is deploying the same standard values as Japan to ascertain the status of groundwater contamination.
