To lower the environmental burden of its logistics processes, Canon is increasing transportation efficiency to reduce CO2 emission volumes and introducing packaging materials with a low environmental burden.
In 2002, Canon established the Environmental Logistics Working Group with the goal of reducing CO2 emissions per unit of sales in logistics processes 20% by 2006, compared with 2000 levels. The Working Group is continuously striving throughout Japan to promote modal shifts*, improve loading efficiency and implementing other measures through five subgroups. These measures cover parts procurement logistics, manufacturing site logistics, product artery logistics, customer sales logistics and packaging.
As a result of these activities, total CO2 emissions associated with domestic logistics were 34,900 tons in 2006, which represented a reduction of 29% against 2000’s results in emissions per unit of sales.
To reduce global CO2 emissions from logistics processes for the entire worldwide Canon Group, since 2003 we have carried out aggregate calculations of CO2 emissions from international transportation, such as between production and sales sites, and for transportation within overseas regions. Based on estimates of standard values for 2000 from relative production volumes, we are conducting activities to propel us toward our Mid-Term Environmental Goals (reducing global CO2 emissions per unit of sales by 20% by 2008, compared with figures for 2000).
During 2006, air shipments of international freight increased dramatically to meet demand for products overseas. As a result, CO2 emissions were up 12% compared with the previous year. Nevertheless, we achieved an 11% reduction compared to 2000 by promoting modal shifts, streamlining logistics and introducing individual environmental strategies in the countries where we operate.
Logistics-Related CO2 Emissions (Japan)
| 2003 | 2004 | 2005 | 2006 | ||
|---|---|---|---|---|---|
| Japan | Procurement and production | 15 | 15 | 16 | 17 |
| Sales | 16 | 18 | 17 | 18 | |
| Subtotal | 31 | 33 | 33 | 35 | |
| Outside Japan | Procurement and production | 11 | 14 | 18 | 23 |
| Sales | 38 | 42 | 45 | 49 | |
| Subtotal | 49 | 56 | 63 | 72 | |
| International Shipping | By air | 404 | 459 | 408 | 559 |
| By sea | 208 | 219 | 255 | 274 | |
| Subtotal | 612 | 678 | 663 | 833 | |
| Total | 692 | 767 | 759 | 940 | |
Environmental Activities in Logistics (example of distribution of products made in Japan)
Shortening Transportation Distances by Changing Logistics Sites and Distribution Routes
To lessen its environmental burdens by streamlining logistics, Canon is working to shorten transportation routes by reviewing locations of logistics sites.
In North America, previously we had one mid-continent logistics site to store consumer products, including some imports. From this base, products were delivered throughout the United States. However, we established a new logistics base on the West Coast in the second half of 2004, radically shortening the transportation distance to this major market.
In Japan, we are using regional ports to shorten the transportation distances for imported products. Formerly, we primarily distributed nationwide from one location in the Kanto (Tokyo) region, but from the second half of 2005 we began importing via a port in the Kinki region for products bound for the western part of Japan, thus shortening transportation distances.
We also reviewed delivery routes for large mirror projection aligners, which require specialized transportation with control of temperature, humidity, vibration and other parameters. These products were taken by special trucks from their production site in the Kanto region to a port in Kyushu for export by ferry to other parts of Asia. By coordinating with shipping companies, we implemented a system from the first half of 2006 that facilitated export by ferry from a port in Kanto instead, thus reducing the overland transportation distance.
Products manufactured in Aomori Prefecture in the far north of Japan used to be transported midway to Kanto by truck to Sendai, where they were picked up by a mother ship. They are now driven to Hachinohe, a local port in Aomori Prefecture, from where they are shipped to Kanto for transfer to the mother ship, thus shortening the overland transportation distance.
Promoting Modal Shifts
Canon strives to reduce total CO2 emissions through modal shifts in Japan and around the world.
Since 2002 in Japan, we have been using vessels and railroads as much as possible for parts logistics between Group manufacturing sites, and for product logistics to regional logistics centers. For logistics of used products collected for recycling as well, we use railroads for some of the transportation from collection sites to recycling sites. We have especially focused on using rail for a greater percentage of our transportation, working with logistics companies to develop specially made large containers for product artery logistics. As a result of these efforts, in 2005 Canon became one of the first companies in Japan to acquire corporate certification for the Eco Rail Mark* system, which is being promoted by Japan’s Ministry of Land, Infrastructure and Transport. In 2006, we were able to shift approximately 5,500 large truckloads worth of cargo to rail transport, thus reducing CO2 emissions by 3,280 tons.
Furthermore, we are promoting rail transportation in Europe to move products from the logistics center of our regional headquarters marketing affiliates in the Netherlands to warehouses in various countries. For some products imported to Europe, we bypass the logistics center and transport directly from the port of entry to the warehouses in each country by rail and feeder boats.
CO2 Reductions Due to Modal Shifts (Japan)
In April 2006, the Revision of the Rationalization in Energy Use Law was enacted in Japan, partially amending the law on the rationalization of energy use to include new measures for the transport industry. Under the revised law, in addition to transport companies all shippers above a specified size are obligated to implement and report energy-saving measures.
In 2005, Canon inaugurated a Group inter-responsive organization, established rules for reporting performance, created new guidelines and took other steps to prepare a system to comply with the Revision of the Rationalization in Energy Use Law. The smooth progression of this system was largely attributable to early efforts to determine the environmental burden of logistics under the Environmental Logistics Working Group formed in 2002.
While responding to the revised law, Canon will revise its estimates for CO2 emissions by using a new conversion coefficient for truck emissions designated in the revised law. (We previously used a truck CO2 emission conversion coefficient described in the Assessment Report on the Impact of Increased Use of Plastic Products on the Global Environment of 1993 by the Plastic Waste Management Institute.) Revised values will be used in our reporting of results from 2006.
| 2000 | 2006 (previous coefficient) |
2006 (new coefficient) |
|
|---|---|---|---|
| CO2 emissions (t-CO2) | 37,700 | 34,900 | 36,200 |
| Per unit of sales (%) | 100 | 71 | 76 |
