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.
Eco Logistics
CO2 Emission Reduction in Transportation
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 strives to promote modal shifts* and, improve loading efficiency through five categories of actions in Japan, specifically parts procurement, efforts at manufacturing sites, product arteries,
sales to customers, and packaging.
As a result of these endeavors, CO2 emissions associated with logistics in Japan were 39,000 tons in 2007, which
represented a reduction of 24% against 2000’s results in emissions per unit of net sales.
* Modal shifts
This phrase describes switching to transportation which places a lower burden on the environment.
The ratio of CO2 Emissions generated by truck, maritime, and rail transportation compared to air shipment emissions,
with air shipment emissions at 100
airplane : truck : ferry : railway = 100 : 15 : 4 : 2
(Rough guide to the environmental burden resulting from transporting one ton of freight over one kilometer in Japan)
Environmental Activities in Logistics (example of distribution of products made in Japan)

Shortening Transportation Distance by Changing Logistics Sites and Distribution Routes
To lessen its environmental burden by streamlining logistics, Canon is working to shorten transportation routes by
reviewing locations of logistics sites.
In North America, in addition to our previous mid-continent logistics site for inkjet printers, we established another
logistics base on the West Coast in the second half of 2004, radically shortening the transportation distance to this
market. For business machines, we are promoting direct delivery to outlets, bypassing marketing subsidiaries. For
Europe, shipments to Eastern and Northern Europe, the Middle East, South Africa, and other areas are dispatched
directly from Asian manufacturing sites.
In Japan, we are using regional ports to shorten the transportation distances for imports and exports. We have increased
our imports via Osaka port, adding to the importing we conduct through ports in the Kanto (Tokyo) region. We have
also further shortened transportation distances for the products we export. We now use the port of Hachinohe in Aomori
(in the far north of Japan) and have reorganized our warehousing in the Kinki (Osaka) region to be closer to the port of
Nagoya.
Promoting Modal Shifts
Canon strives to reduce CO2 emissions through modal shifts around the world.
Since 2002 in Japan, we have been using ships 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 ships and 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 *
promoted by Japan’s Ministry of Land, infrastructure and Transport. In 2007 we again fulfilled the recertification
criteria. We were able to shift approximately 8,450 large truckloads worth of cargo (including cargo transported by
ship) to rail transport, reducing CO2 emissions by 3,840 tons.

* Eco Rail Mark system
Companies acquiring the Eco Rail Mark are recognized for their efforts in using rail transport to contribute to curbing global warming.
For shipping goods between Japan and China, we have shifted from air to sea shipments between Hakata (Japan) and Shanghai (China). Once the products arrive in Shanghai, their transportation within China is now done through a new system that connects to a high-speed freight railroad heading to Beijing or Guangzhou. Canon developed this new transportation system jointly with an outside logistics company, enabling us to shift from truck-based transport to rail transportation.


