Climate Change Data

Canon Marketing Japan Inc.

Climate Impact & Sustainability Data (2020, 2021, 2023)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:51,498 tCO2e/year (Scope 1 & 2); 415,299 tCO2e/year (Scope 3)
Scope 1 Emissions:5,765 tCO2e/year
Scope 2 Emissions:45,733 tCO2e/year
Scope 3 Emissions:415,299 tCO2e/year
Water Consumption:182,885 m3/year
Waste Generated:16,204 tons/year

ESG Focus Areas

  • Climate Change
  • Diversity & Inclusion
  • Corporate Governance
  • Resource Recycling
  • Employee Wellbeing

Environmental Achievements

  • Reduced GHG emissions per unit of production by 4.0% from fiscal 2019
  • Achieved zero CO2 emissions from electricity consumption in Canon S Tower and branches through J-Credit Scheme
  • Recycled 99.9% of 12,015 metric tons of collected used products
  • Offset emissions by 6,355 metric tons from MFPs sold

Social Achievements

  • Increased proportion of women in managerial posts by 0.4 percentage points to 3.5%
  • 146 employees took childcare leave, with a 95.6% return-to-work rate
  • Received Platinum Kurumin Certification for excellence in childcare support
  • Implemented IT Skills Improvement Program for all Group employees, with 3,791 employees obtaining IT passport certification

Governance Achievements

  • Implemented all principles of Japanese Corporate Governance Code
  • Established standards for independent outside directors
  • Set up Nomination and Remuneration Committee
  • Secured and maintained certification under the ISMS Conformity Assessment Scheme and PrivacyMark

Climate Goals & Targets

Long-term Goals:
  • Become a professional corporate group that resolves issues for society and customers by leveraging ICT and people by 2025
Medium-term Goals:
  • Net sales ¥650 billion (including ¥300 billion in IT solutions sales), operating profit ¥50 billion, and ROE 8.0% by 2025
Short-term Goals:
  • Net sales ¥600 billion (including ¥265 billion in IT solutions sales) and operating profit ¥40 billion by 2023

Environmental Challenges

  • COVID-19 pandemic impacting sales activities and demand
  • Decreased print volumes due to teleworking
  • Competition in office MFPs and maintenance services
  • Shrinking digital camera market
  • Fluctuating customer investment priorities
Mitigation Strategies
  • Focusing on high-value-added products and cost reduction
  • Expanding IT solutions business
  • Strengthening direct sales structure for quasi-major and upper medium-sized enterprises
  • Developing total solutions for small-to-medium-sized enterprises
  • Investing approximately ¥100 billion over three years in strategic business investments

Supply Chain Management

Responsible Procurement
  • Global Canon Green Procurement Standards
  • Responsible sourcing of minerals from conflict-affected areas

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Integrated Reporting Framework (IIRC), Ministry of Economy, Trade and Industry (METI) Guidance

Certifications: ISO 9001

Sustainable Products & Innovation

  • Energy-efficient office equipment
  • Refreshed series of office MFPs
  • FOREMAST demand forecasting solution
  • WebPerformer low-code development platform

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:57,752 t-CO2e/year (Scope 1 & 2); 420,555 t-CO2e/year (Scope 3)
Scope 1 Emissions:5,800 t-CO2e/year
Scope 2 Emissions:51,952 t-CO2e/year
Scope 3 Emissions:420,555 t-CO2e/year
Water Consumption:185,109 m3/year
Waste Generated:14,075 tons/year
Carbon Intensity:0.025 metric tons per million yen in 2021.

ESG Focus Areas

  • Environment
  • Society
  • Corporate Governance

Environmental Achievements

  • Reduced in-house CO2 emissions by improving work processes and work practices; achieved zero CO2 emissions from electricity consumption in showroom and customer service areas of Canon S Tower and branches through purchases under the J-Credit Scheme.
  • Improved recycling rate to 99.99%.

Social Achievements

  • Launched Work Practice Reform Promotion Project to enhance productivity; staggered work hours and broadened teleworking.
  • 11 Canon MJ Group companies recognized under the 2022 Certified Health & Productivity Management Outstanding Organizations Recognition Program.
  • Canon MJ and Canon IT Solutions acquired Platinum Kurumin Certification for excellence in offering childcare support.

Governance Achievements

  • Established Sustainability Promotion Committee; endorsed TCFD recommendations.
  • Increased number of outside directors to three.
  • Implemented Standard for outside directors and outside Audit & Supervisory Board members to clarify independence.

Climate Goals & Targets

Long-term Goals:
  • Realization of carbon neutrality by 2050.
Medium-term Goals:
  • Reduce in-house CO2 emissions by 38% (compared to 2021) by 2030.
  • Zero emissions of product waste (recycling rate of 99.9% or more) by 2030.
  • Achieve ¥50.0 billion in operating income by 2025.
  • Achieve ¥650.0 billion in net sales (of which ITS sales ¥300.0 billion) by 2025.

Environmental Challenges

  • Product supply constraints caused by semiconductor shortage and supply chain disruptions.
  • Rapid technological innovation and significant changes in trends in the consumer market.
  • Rising cybersecurity threats.
  • Shortage of in-house IT personnel among SMEs.
Mitigation Strategies
  • Rigorous selection and concentration of businesses; improvements in productivity achieved by modifications to business processes and reductions in SG&A expenses.
  • Strengthening points of contact in digital and real worlds; engaging in more meaningful communication with consumers.
  • Established Canon Marketing Japan Group Computer Security Incident Response Team (Canon MJ-CSIRT); promoting activities to minimize cybersecurity risks.
  • Providing value-added proposals that grasp the issues, needs and environmental changes of SMEs; maintaining close ties with customers to expand maintenance and operational services.

Supply Chain Management

Responsible Procurement
  • Canon Group Basic Policy on Responsible Minerals Sourcing; Global Canon Green Procurement Standards; conducting training regarding code of conduct and procurement laws and regulations for employees assigned to the Procurement Department.

Climate-Related Risks & Opportunities

Physical Risks
  • Large-scale wind and water damage, flood damage
Transition Risks
  • Increased costs due to obligations regarding carbon tax and emissions trading; impact on trading by not meeting business partner demands for climate change response; lowering of reputation from holding back on climate change response.
Opportunities
  • Increased demand for solutions to improve efficiency of distribution and transportation; increased demand for energy-saving solutions; increased demand for carbon neutral data centers; increased demand for network cameras, sensors, etc. as part of measures against large-scale disasters; increased demand for highly disaster resilient data centers.

Reporting Standards

Frameworks Used: International Integrated Reporting Framework of the IIRC, METI Guidance for Integrated Corporate Disclosure and Company-Investor Dialogues for Collaborative Value Creation

Certifications: ISO 14001

Sustainable Products & Innovation

  • Energy-efficient products

Awards & Recognition

  • FTSE4Good Index Series (18 consecutive years)
  • FTSE Blossom Japan Index (5 consecutive years)
  • SOMPO Sustainability Index (11 consecutive years)
  • MSCI Japan ESG Select Leaders Index (4 consecutive years)
  • Excellent rating in the Information Technology Federation of Japan Cyber Index Corporate Survey 2021
  • First place in Nikkei Computer’s Partner Satisfaction Survey 2021 and Customer Satisfaction Survey 2021-2022
  • DX-certified operator by Ministry of Economy, Trade and Industry
  • Silver medal in the Japan Patent Office’s first AI competition

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:47,211 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:5,664 tCO2e/year
Scope 2 Emissions:41,547 tCO2e/year (market-based)
Scope 3 Emissions:155,739 tCO2e/year

ESG Focus Areas

  • Climate Change
  • Diversity & Inclusion
  • Governance
  • Responsible Supply Chains
  • Human Rights

Environmental Achievements

  • Reduced GHG emissions (Scopes 1 and 2) by 8.4% from fiscal 2021.
  • Maintained a recycling rate of 99.9% or higher for seven consecutive years.
  • Achieved 100% renewable energy for electricity used at five business sites.

Social Achievements

  • Launched the Empowerment Program for female chiefs.
  • Improved employee engagement scores for two consecutive years.
  • Implemented DX certification and DX business certification exams for employees.

Governance Achievements

  • Appointed one female outside director.
  • Established a Special Committee composed of independent outside directors.
  • Appointed a majority of outside directors to the Nomination and Remuneration Committee.

Climate Goals & Targets

Long-term Goals:
  • Realize carbon neutrality (Environmental Vision 2050).
Medium-term Goals:
  • Achieve ¥650.0 billion in net sales (¥300.0 billion from IT solutions) by 2025.
  • Achieve ROE of 9.0% by 2025.
  • Reduce Scope 1 and 2 emissions by 42% from 2022 levels by 2030.
  • Reduce Scope 3 (Category 1, 11) emissions by 25% from 2022 levels by 2030.
Short-term Goals:
  • Increase sales and profits for consecutive fiscal years (varies by segment).

Environmental Challenges

  • Shrinking digital interchangeable lens camera market.
  • Reductions in print volume due to changes in printing environment.
  • Lack of talent and intensifying competition for securing highly skilled professionals in the IT market.
  • Business succession risks due to aging and declining labor population.
  • Climate change risks (physical and transition risks).
Mitigation Strategies
  • Promoting one-to-one marketing and creating customer value.
  • Expanding sales channels in the SOHO and e-commerce markets.
  • Accelerating the creation of new businesses.
  • Actively conducting mid-career recruitment.
  • Developing skilled personnel through training and job rotation.
  • Updating 2030 Medium-Term Environmental Targets in line with SBTi standards.
  • Implementing measures to reduce Scope 3 emissions.
  • Strengthening engagement with suppliers to address human rights issues.

Supply Chain Management

Responsible Procurement
  • Canon Green Procurement Standards
  • Canon Group Basic Policy on Responsible Minerals Sourcing
  • Regular training on procurement regulations.

Climate-Related Risks & Opportunities

Physical Risks
  • Damage to product storage facilities due to flooding.
  • Inability of employees to commute due to extreme weather.
  • Increased air conditioning costs due to higher temperatures.
Transition Risks
  • Changes in printing environment (reduced paper use, digitalization).
  • Implementation of carbon taxes.
  • Cost of renewable energy facilities and energy-saving equipment.
Opportunities
  • Reduction of energy costs from renewable energy.
  • Increased opportunities for systems integration, data center, and printer businesses.
  • Development of energy-efficient products.

Reporting Standards

Frameworks Used: IFRS Foundation's Integrated Reporting Framework, METI's Guidance for Integrated Corporate Disclosure and Company-Investor Dialogues

Third-party Assurance: LRQA Limited (for GHG emissions data)

Sustainable Products & Innovation

  • PowerShot V10 vlog camera
  • Privacy Talk wearable noise reduction device

Awards & Recognition

  • Corporate Excellence Award and Excellence Award (for individuals) in the IFSJ Innovation Awards
  • No. 1 in Nikkei Computer Customer Satisfaction Survey for 11 consecutive years
  • Selected for FTSE4Good Index Series and FTSE Blossom Japan Index
  • Included in SOMPO Sustainability Index and MSCI Japan ESG Select Leaders Index
  • Selected for JPX-Nikkei Index 400
  • Selected as one of “Greatest IR Improvement Premium Companies” and “Best Continual IR Efforts Premium Companies” by JIRA
  • Two-star rating in the Information Technology Federation of Japan’s Cyber Index Corporate Survey 2023
  • Selected under the 2024 KENKO Investment for Health Stock Selection
  • 4.5-star rating in the 7th Nikkei Smart Work Management Survey