Canon Group CSR Management and Activities

Basic Approach to CSR Management

Societal expectations for corporations are increasingly diverse, encompassing product quality and safety, environmental responsibility, compliance, information security, employee human rights and labor practices, and supply chain management. Businesses are increasingly sought after by customers and business partners that demonstrate a commitment to environmental and social considerations. In response, Canon has established the "Canon Group CSR Basic Statement," approved by its Representative Director Chairman, to clearly communicate its fundamental and universal CSR stance to stakeholders. Furthermore, the "Canon Group CSR Activity Policy" articulates the company's commitment to fulfilling its role as a member of society at the group level, leveraging Canon's strengths to engage in CSR activities tailored to the needs of each country and region. Canon also implements a "Consolidated Performance Evaluation System" that assesses achievements in management policies alongside environmental and social contribution activities for each business unit, production company, and sales company. The results are shared at company-wide executive meetings twice a year to foster overall group-level improvement. CSR activities are communicated to stakeholders annually through this report.

For more details, please refer to the Canon Group CSR Basic Statement.

Canon Group CSR Basic Statement

1. Provision of safe and secure products and services.
2. Compliance with laws and regulations in each country and region, and fair and sincere business practices.
3. Practicing fair and free competition and ensuring transparency in transactions.
4. Contributing to the realization of a society where affluent living and the global environment coexist.
5. Minimizing environmental impact through efforts in energy conservation, resource conservation, elimination of hazardous substances, and biodiversity conservation.
6. Thorough information management and prevention of information leakage, and protection of personal information.
7. Prevention of infringement of intellectual property rights of others.
8. Thorough management of security export control.
9. Prevention of bribery and other corrupt practices.
10. Avoidance of complicity with armed forces or anti-social forces.
11. Disclosure of appropriate and accurate corporate information.
12. Respect for fundamental human rights and prohibition of discrimination based on race, nationality, gender, religion, creed, etc.
13. Promotion of diversity.
14. Prohibition of child labor and forced labor (including human trafficking).
15. Promotion of sincere dialogue between management and employees in accordance with local laws.
16. Payment of wages exceeding statutory minimums to employees.
17. Prevention of overwork and provision of appropriate holidays.
18. Ensuring occupational health and safety and preventing occupational accidents.
19. Requiring and verifying CSR initiatives related to environment, human rights, labor, and compliance within the supply chain.

Canon respects the following international norms and complies with the basic statement above:

• Universal Declaration of Human Rights
• UN Guiding Principles on Business and Human Rights
• ILO Declaration on Fundamental Principles and Rights at Work
• OECD Guidelines for Multinational Enterprises

Canon Group CSR Activity Policy

As a good corporate citizen, Canon Group contributes to the realization of a better society.

Canon Group recognizes that its corporate activities are supported by societal development. While pursuing its own growth, Canon Group aims to contribute to the realization of a better society as a good corporate citizen. To achieve this, Canon leverages its "advanced technology," "global business development," and "diverse and specialized human resources" to promote CSR activities within the international community and local societies.

Key Focus Areas:

• Contributing to the advancement of culture, arts, academia, and sports.
• Providing humanitarian aid to people and regions facing difficult circumstances.
• Contributing to the coexistence of affluent living and the global environment.
• Contributing to society through business activities.
• Contributing to the realization of a sound and fair society.

CSR Promotion System

Canon Inc.'s CSR Promotion Department oversees and drives CSR activities group-wide. For CSR issues requiring cross-departmental handling, the CSR Promotion Department collaborates with relevant departments such as Environment, Quality, Procurement, Human Resources, Facility Management, Legal Affairs, Investor Relations, and Public Relations. High-demand CSR areas like environmental conservation, compliance, and quality management are handled by their respective responsible departments. Key CSR matters are reported to and instructed by relevant executive officers (Vice Presidents) on a timely basis.

CSR Promotion Structure:

• Canon Inc.
  • Chairman
  • President
  • CSR Executive Officer (Vice President)
  • CSR Promotion Department
  • CSR-related Departments (Environment/Quality/Procurement/HR/Facility Management/Legal/IR/Public Relations, etc.)
• Each Headquarters/Business Unit
• Domestic Group Companies
• Overseas Group Companies

Joining the RBA

In December 2019, Canon joined the Responsible Business Alliance (RBA), a global alliance dedicated to promoting social responsibility within supply chains. Canon respects the RBA's vision and mission and is committed to advancing business activities that consider the environment, people, and society by adhering to its code of conduct. Canon has adopted the RBA Code of Conduct as its CSR Procurement Policy and requests suppliers to comply, verifying their compliance status.

Education and Awareness Activities

Canon disseminates its fundamental CSR philosophy, specific initiatives, and information on the UN's Sustainable Development Goals (SDGs) and ESG investment to headquarters departments, business units, and major group companies annually. Specialized departments conduct training on specific themes such as quality assurance, environmental protection, and information management. CSR representatives from domestic and overseas group companies hold regular information-sharing sessions. Furthermore, through internal communication channels like the company intranet and newsletters, Canon shares CSR activities and SDG initiatives to vitalize group-wide CSR efforts.