canon emea sustainability report 2014

Canon Europe, Middle East & AfricaSustainability Report 2014

2 Canon EMEA Sustainability Report 2014

Contents2 Message from the President

& CEO, Canon Europe, Middle East & Africa

4 About Canon

7 Supporting our customers

10 Environment

14 Society

20 Business

Collaborative growthCanon’s core strengths in all aspects of imaging continue to inspire many audiences in both the consumer and professional field. This is enabling us to remain successful and profitable despite economic and political challenges in the EMEA market. We are striving to transform our business and diversify into new markets and these are exciting times; I look forward to reporting on our developing network visual solutions markets and our entrance to the 3D printing market in more detail next year.

Our ambition is for Canon to be part of everyone’s imaging journey in future, and live our vision of enriching lives and business through imaging solutions. Despite tough markets, we protected or grew market share in most of our key segments and I would like to thank all our employees for their commitment and engagement in making this happen.

Our business faces a number of opportunities, risks and challenges and sustainability is a key tool in managing these (see About Canon). We see sustainability as an integral part of adding value to our customers, who want us to support them to become more competitive, efficient and sustainable. In 2014, we were happy to announce a new partnership with Volkswagen AG, providing managed print services to their operations worldwide.

1 www.canon-europe.com/about_us/sustainability/sustainability_reports/

Our environmental focus and ability to offer products with advanced environmental performance was a contributing factor in winning the business, as well as our willingness to improve our performance further. Our customers recognise that our long-term focus on environmental performance in particular is one of our core strengths.

Small and medium-sized businesses also want to operate more efficiently and get help to grow their business; reducing energy and printing costs. Whether they work in production printing and graphic arts or offer printing services, reduction of costs, waste and energy are key to all. We take direction from our customers, innovating to meet their needs in the most efficient way. This includes offering remanufactured or refurbished devices and promoting the circular economy.

Canon EMEA signed up to the United Nations Global Compact (UNGC) in 2014 and I am pleased to reaffirm our commitment to the UNGC. You will find our

Communication on Progress on the 10 principles on our website1, outlining our progress so far.

Front cover photo: Oliver Fix – Canon EOS 550D

http://www.canon-europe.com/about_us/sustainability/sustainability_reports/

Canon EMEA Sustainability Report 2014 3

Business directionWe aim to grow our solutions and services organically and through acquisition. The Océ integration process is complete in EMEA and offers new business and cross-selling opportunities with our combined portfolio of products and services.

An area where we anticipate strong growth in future is in the network visual solutions (NVS) business. To take advantage of this opportunity, we completed the acquisition of Milestone Systems in 2014, a leading provider of open platform video management software. Together, we offer an extensive range of hardware and software network video surveillance solutions, to meet the needs of governments, airports, banks, universities, retail, transport and others. NVS supports society in areas such as traffic congestion management, personal safety and student learning opportunities as well as security applications. The acquisition will significantly advance our position in the NVS segment.

Our employees are also helping to grow and develop our business. Through our Pursuing Excellence programme we are asking our employees to collaborate more actively across

functions and teams, sharing knowledge and promoting engagement, to help drive the business forward. We will focus on improving this area during 2015 in response to our employee survey (see Society).

Awards and recognitionI am proud that Canon was recognised by several independent awards and rankings in 2014, which are outlined in About Canon. I was delighted to present the second Canon EMEA President’s award recognising outstanding performance for sustainability to Canon Middle East (CME). Under the ‘Adopt a School’ project CME employees raised money to build a new school in Senegal by auctioning old equipment. It is a great example of the inspiring initiatives that take place at Canon and shows how we use our resources to improve the communities that we serve. Employees, customers and the public have also been invited to donate books to create a library for the school.

Outlook Despite retaining the number one market share position in several segments, the economic situation in EMEA shows only patchy signs of improvement. We will continue to innovate and focus on profitable growth by capitalising on our recent acquisitions and developing our services and solutions. In October 2015, we will welcome 11 500 customers to our EXPO in Paris to show how we can support them now and in the future. And we will extend that reach virtually to customers via our digital channels, enabling those who are unable to attend to experience our future direction.

I welcome your suggestions on how we can continue to improve.

Rokus van IperenPresident & CEO, Canon Europe, Middle East & Africa

Rokus van Iperen

Our regional headquarters are split over four locations in the UK, Netherlands (x2) and Germany

Canon EMEA – selling to customers in 116 countries


About CanonCanon Europa N.V. is a wholly owned subsidiary of Canon Inc. of Japan. We are responsible for the sales and marketing of Canon’s products, services and solutions to customers in more than 116 countries in Europe, the Middle East and Africa (EMEA). We also research, develop and produce software and solutions through our subsidiaries. We employ around 17,000 people across 20 local country operations in the EMEA region. In 2014, Canon EMEA’s net sales contributed 29.3% (¥1,090 billion) to Canon’s global net sales.

sustainability adds value by helping them get better results and operate more efficiently and sustainably. Our business is moving to offer more solutions and services with significant opportunities to integrate sustainability. Through our outsourced print services, for example, we deliver a tailored service which meets the customer’s needs and increases efficiency.

In early 2015 we created a new EMEA sustainability programme to focus on three key areas: enabling young people to express their creativity; using technology to benefit society; and low carbon leadership. We will update our stakeholders on emerging outcomes both directly and in the next report.

Opportunities, risks and challengesEMEA offers a very varied market place with many opportunities for innovation, growth and diversification to meet the needs of our different markets. However, it also brings a wide range of legislation, regulations and standards as well as differing customer and other stakeholder expectations. We work with and support policymakers and authorities to ensure that emerging regulations are robust and workable. Other opportunities, risks and challenges include:

• Technology as an enabler, whether this is of 3D printing solutions, or of rapid access to information needed by business

• The rapid changes in the technology marketplace, including proliferation of videos and images which is increasing the need for better information management and storage

• Developing new business areas and solutions, such as network visual solutions and medical solutions, which provide access to information without compromising data security

• Managing value and supply chain risks in all areas of sustainability and sourcing.

We sell our products, services and solutions in a number of ways, including directly and indirectly, through intermediaries such as partners, resellers and retailers.

StrategyOur strategic vision in EMEA is to enrich lives and businesses through imaging solutions.

Kyosei – our philosophy of living and working together for the common good – is core to how we do business. Our approach to sustainability, which supports that of Canon Inc., is a key strand of our engagement with stakeholders, customers and employees, whose feedback enables us to understand material opportunities and issues and to further develop our approach.

Sustainability also connects us to wider society and helps us to manage risks to and in our business. Our customers tell us that

Products, services and solutions Our imaging solutions help individuals, small and medium-sized businesses, and large and global corporates to tell the story of the world around them and realise the benefits of image and information management in their lives and business. Our solutions, services and products include: managed print services, business process outsourcing and image storage solutions; network video cameras and solutions; cameras and solutions for amateurs and professionals including TV production and broadcast lenses; camcorders and projectors; printers, scanners and multifunction devices; large format printers, production printers and digital presses for professional printers; medical imaging equipment and solutions; and semiconductor manufacturing equipment.

Global net sales by region 2014

Americas27.81%

Europe29.26%

Asia & Oceania23.50%Japan

19.43%


Climate change: We recognise the need both for mitigation and adaptation to climate change and work hard to:

• develop services that have the potential to reduce CO2 emissions – for example using network visual cameras to reduce traffic congestion, and 3D printing to disrupt supply chains

• ensure our services help customers meet their own targets, are efficient and minimise waste – for example our production printing services enable printing on demand, resulting in less waste

• support the circular economy, including the remanufacture and reuse of office and production printing machines

• assess the life cycle impacts of our products, designing them to minimise their impact throughout their life

• improve the resilience of our business, for example reducing transport-related CO2 emissions by shifting from road and air transport to a combination of sea and rail; and we include sustainability in our approach to warehousing and distribution

• empower customers to highlight the social and environmental changes to our planet, through videos and still images

• use our track record and understanding of effective legislation to support standards development, for example in RoHS (Restriction of Hazardous Substances), Blue Angel and EU ENERGY STAR®.

GovernanceThe Canon Europe Operations Business Review (CEOBR) is Canon EMEA’s highest governing body. It is headed by EMEA’s President & CEO Rokus van Iperen and comprises finance and business unit heads. The CEOBR is responsible for setting our strategy, targets, performance criteria and governance structures, including risk management and principles of operation.

Overall accountability for sustainability lies with Rokus van Iperen, who is also a Senior Executive Officer of Canon Inc. Day-to-day, the EMEA sustainability function reports to the Chief of Legal, Intellectual Property and Sustainability, who sits on the Canon Europe Operating Committee (CEOC), which is also headed by EMEA’s President & CEO. The Sustainability Group promotes sustainability through a collaborative network of challenge and support which engages business units and functions at EMEA level and national and regional sales offices (NSOs and RSOs) across EMEA.

Stakeholder Method Stakeholder concerns

Corporate customers

Annual customer loyalty survey

Canon should have a clear understanding of customers’ business needs and requirements and should take account of their feedback in order to proactively suggest solutions to help them adapt, develop and grow in the changing business environment

Global corporates

Questionnaire to global customers

Canon should support their sustainability goals and help improve working practices e.g. outsourced services or solutions that improve efficiency; integrated solutions

Home office/Small business

Independent research

Sourcing products and solutions that help them save time, energy, paper and ink, so they can focus on running their business

Employees Employee survey Canon should keep them informed, listen and act on feedback and treat them fairly

Suppliers Supplier audits: creating shared value

A trusting relationship with transparent and fair operating practices

Materiality and stakeholder dialogueWe interact with many different stakeholders, from members of the public to authorities, from partners to retailers, and from public service providers to professionals in all spheres of imaging – a list of how we interact with them can be found here.2 During 2014 we asked several stakeholder groups what is important to them around sustainability and how Canon supports them. We asked stakeholders about their trust in Canon and the importance to them of Canon being a responsible company.

2 www.canon-europe.com/images/CEMEA%20Sustainability%20Report%202012%20-%20Stakeholders%20v4_tcm13-1059208.pdf

NGOs

Other companies

National and local governments

Employees

Local communities

Customers

Canon Inc.

Suppliers

Universities and research institutes

Shareholders and investors

STAKEHOLDERS

http://www.canon-europe.com/images/CEMEA%20Sustainability%20Report%202012%20-%20Stakeholders%20v4_tcm13-1059208.pdf




Sustainability objectives are incorporated in business unit and functional mid-term plans; specific target areas are agreed by the President and then cascaded to NSOs and RSOs. Our objectives framework allows some flexibility, with NSOs and RSOs given the freedom to address the opportunities and risks most relevant to them. Achievements against these objectives are monitored by the Sustainability Group.

We manage sustainability across the value chain through a small core team which partners with each part of the business. Last year, the range of activities included embedding sustainability criteria in our lease financing contracts, and talking to global customers about their own targets and how we could support them. Sustainability aspects were also incorporated in our new warehouse building and operations, so that we have an efficient solution that will serve the changing needs of our business for some time to come.

We reference external international standards in assessing our performance and target areas, including mapping our sustainability activities to ISO 26000 (see table below) and maintaining global ISO 14001 certification of our environmental management system, covering over 800 sites. To advance our commitments to sustainability and good corporate citizenship, we are also a signatory to the UN Global Compact (UNGC).

Awards and recognition During 2014 we were delighted to be recognised in the following ways:

• Canon ranked 37th in Interbrand’s Best Global Brands 2014 and rose four places to 26th in Interbrand’s Best Global Green Brands 2014

• Canon ranked 125th in the Newsweek Green Rankings 2014

• Canon was included in the Carbon Disclosure Leadership Index for the first time, scoring 98 A- (out of 100)

• Canon ranked 6th in the 2014 Global RepTrak top 100 companies most highly regarded in the world, and 13th in the 2014 CSR RepTrak ranking

• Canon was voted Reader’s Digest most trusted camera brand in Europe for the 14th consecutive year

• Canon was again named a ‘Leader’ in Gartner’s Managed Print and Content Services Magic Quadrant Report 2014 3

• Canon Spain won a Top Employer award

• Canon Middle East was again awarded the Dubai Chamber CSR Label.

ReportingThis is Canon EMEA’s sixth annual sustainability report. It covers the 2014 calendar year and is aimed at our customers and other interested stakeholders. It does not yet include information on our recent acquisition of Milestone, and excludes Océ Technologies and other group subsidiaries located in the EMEA region which report to Canon Inc. Previous reports can be found at www.canon-europe.com/About_Us/sustainability/sustainability_reports/.

We are reporting in line with Global Reporting Initiative’s (GRI) 3.1 guidelines, with an application level B. A full GRI table can be found at www.canon-europe.com/About_Us/sustainability/sustainability_reports/. We have not sought external accreditation.

This report also provides the basis for our first Communication on Progress, part of our commitment to the principles of the UN Global Compact. A table reporting our progress against the 10 UNGC principles can be found at www.canon-europe.com/About_Us/sustainability/sustainability_reports/.

Any comments or queries on this report or Canon EMEA’s sustainability activities should be directed to [email protected].

Reporting in line with the ISO 26000 core subjects

Organisational governance

About Canon and Business

p4, 20

Labour practicesBusiness

p20

Fair operating practicesBusiness

p20

Community involvement

& developmentSociety

p14

The environmentEnvironment

p10

Consumer issues

Supporting our customers

p7

3 Magic Quadrant for Managed Print Services Worldwide, Ken Weilerstein, Elizabeth Kim, Sharon McNee - November 2014







mailto:sustainability%40canon-europe.com?subject=


Supporting our customersOur customers are the inspiration for the innovation in our products and services. Our technologies enable our customers to operate more efficiently and sustainably and to reduce their costs and environmental impact. From small business to professional photographer; from global corporate to commercial printer; from hospital to university, we partner with many different customers to offer them the right solutions and services to support and grow their business. Our 2014 customer loyalty survey was sent to almost 300,000 customers across 25 countries, inviting feedback on how we can better serve them; results are followed up by national sales organisations and account managers.

In this section, we showcase some of the ways we have worked with our customers across our sustainability focus areas of Environment, Society and Business to deliver innovative, flexible and sustainable solutions.

Océ ImageStream 3500

Financing for businessCanon signed a ‘Multi-Country Finance Programme Agreement’ with BNP Paribas Leasing Solutions, to deliver vendor financing solutions to Canon’s sales organisations in eight European countries. It’s a win/win for sustainability: Canon’s customers can access innovative financing options from BNP Paribas (leading finance provider in the European leasing market), supporting their business growth, while BNP Paribas will work to Canon’s preferred hierarchy of solutions for devices at end of lease, promoting recycling and avoiding waste.

Flexible cloud services Canon has put the infrastructure in place to offer software as a service (SaaS) to give customers looking for cloud services more options and flexibility. Cloud services like this mean customers do not need their own server, which increases efficiency, and can access all their systems through a self-service portal, making options simpler. It also allows for more flexibility – customers can choose a standard plan or Canon can tailor a plan to their needs. It is simple to change these services over time without buying or replacing expensive hardware. SaaS offers security too, addressing customers’ data protection concerns in all countries where it is offered. However, if a customer wants a private cloud, we offer this too.


Safeguarding heritageThe Colosseum in Rome is one of the most impressive surviving buildings of the Roman Empire, visited by millions of tourists every year. Keeping the magnificent building accessible while protecting it from damage is a constant challenge.

To improve security, Canon network cameras were installed as part of a bespoke solution, replacing the previous analogue system. The compact IP cameras were connected to the existing CCTV system to minimise the need for new installation work. They have pan/tilt/zoom functionality – with a 26x optical zoom and up to a full 360O horizontal field of view, with exceptional performance even in low light conditions. These cameras have significantly extended the Colosseum’s surveillance capability, enabling any suspicious movement across the site to be detected and investigated, while visitors can continue to enjoy this priceless piece of history.

Outsourcing to transform processes When one of the world’s largest industrial companies needed a partner to provide a standardised invoice generation process for the 18 million invoices it raises across the globe every year, it chose Canon.

Canon Business Services (CBS), our outsourcing business, will help the company to digitally and sustainably transform its invoicing processes across its varied business units. CBS brings together people, process and technology in order to help innovate and transform the way the company handles information. In addition to providing day-to-day invoicing services, over our five year contract, we will gradually move its businesses from traditional paper-based invoicing to a highly secured electronic services delivery. This will reduce costs, ensure invoices are sent and received efficiently, speed up payment time and thereby improve cash flow.

Adding to literary heritageThe book market has changed significantly over the years, from long print runs to single book print-on-demand today. With Canon’s help, two book printing companies have used these challenges as opportunities to grow their business.

1. Service Point Holmbergs’ desire to drive innovation in print has kept them at the forefront of the publishing market and, with ever-increasing demand for single copy print runs, Holmbergs invested in a Canon workflow solution. This enables automated job and dispatch handling, monitoring and tracking of a single book. The software enables jobs to be batched as they arrive and printed just once a day, providing profitability and efficiency. This automated ‘book of one’ production process is such a success that Holmbergs anticipates increasing its current 2,500 unique titles a day to 3,000 a day in 2015.

2. In the 1990s, the long-established TJ International recognised that the market was changing from high volume production to much smaller-scale book runs and chose Océ digital printing to meet this challenge at a realistic price. Now, three generations of Océ devices and software later, TJ International’s portfolio ranges from volume print runs using traditional offset printing through to digital re-prints and print-on-demand. The company attributes its success to being unafraid to invest in print products that help meet changing market needs. It has expanded its areas of specialism from academic, scientific and medical to include legal and poetry, and has seen turnover increase by 40% in 2013 vs 2012, and by 60% in 2014 vs 2013. It now manufactures seven million soft- and hard-cover books every year.


Three contact centres – Germany, Spain and The Netherlands

Online, by phone or by email depending on their preference

400 agents, 17 languages, customers in 22 countries

Over 2.4 million queries in 2014

Personal customers: • 79.8% rated the telephone service as good or excellent • 72.6% rated the email service

as good or excellent• 86% of calls were answered within 60 seconds

• 90% of all emails were answered within one working day

Business customers: • 85% of all calls were answered within 20 seconds • 93% of all emails were answered within one working hour• 87% of customers were satisfied with the process from

initial contact through to fix

Minimising resources To sell medicines in the Netherlands every packet needs Dutch-language labels and patient information leaflets. For Eureco-Pharma BV this labour-intensive and time-consuming process has been simplified by our Océ VarioPrint 6160 and Horizon folder. The printer is the only one which can print onto the required 45gsm paper; more significantly it has automated the process and cut printing-lead times from four weeks to 24 hours. The company now prints labels and leaflets when it needs them, from single leaflets to longer runs. Automating the process has enabled average annual savings of €5,000-€10,000 from waste reduction alone. It has opened up new business streams too, with the opportunity to print leaflets for other manufacturers. Eureco-Pharma expects to recoup its costs within five years.

Excellent post-sales support We believe that high quality post-sales support is as important as high quality products. We deliver this through our contact centres, which respond to customers’ queries (see box); Regional Competence Centres which deal with quick repairs, returns, complaints and queries; and through our service engineers’ visits. Queries are diverse: from how to set up drivers and software to whether the ink can be eaten (e.g. when printing on edible paper).

We have six Regional Competence Centres, five Broadcast Workshops and one Centralised Service Centre serving 34 countries in 23 languages. These centres are hubs of local knowledge and best practice covering products such as inkjet, camera and lens. With an average turnaround time of less than three days and a

satisfaction rating of 97%, these centres enable us to uphold the quick, high quality service our consumer and professional customers expect from us.

While we try to diagnose and fix faults remotely – resolving issues quicker for customers and saving carbon – sometimes we need to visit customers to solve problems. In 2014, almost 50,000 business customers in over 15 countries gave feedback on a service engineer’s visit. They were satisfied or very satisfied with the overall efficiency of the registration process by email (78%) and by phone (84%); with overall quality of the engineer’s work (a pleasing 92%); and that the response time met their needs (86%). Satisfaction with engineers’ environmental awareness and communication was rated at 84%.

Flexible printing servicesIn Germany, we are offering a new service - Print as a Service (PaaS) - combining the core competencies of our managed print service and our software expertise. Customers simply pay a service fee per user and we manage all print software and hardware. PaaS offers a high degree of flexibility, going well beyond the standard Managed Print Service, offering efficiency in resource use whilst ensuring that customers get the service they need. The service level agreement is tailored to the customer’s requirements such as print policy, number of IT users per output device and security needs. A quarterly review ensures the service continues to meet the customer’s changing business needs.


Pursuing environmental responsibility is a fundamental part of how Canon does business. Our environmental vision is for people to get better results whilst having a lower environmental impact. To help achieve this vision, we have an ISO 14001 accredited global environmental management system which covers all aspects of the product life cycle, as well as over 800 Canon sites globally.

Our aim is to support our customers’ own sustainability goals – to support the development of sustainable businesses. We offer solutions, software and services that enable business customers of all sizes to operate more efficiently, save resources, and take advantage of new opportunities.

Within our own operations, we minimise negative impacts through effective leadership, policy, standards and good practice. In 2014, for the first time, Canon was included in the Carbon Disclosure Leadership Index – CDP’s list of the world’s most transparent responders on their CO2 emissions. Canon scored 98 A- (out of 100) and is in the top 10% of respondents (almost 2,000 companies), demonstrating our commitment to low carbon leadership and ongoing focus in this area. Canon Inc.’s reduction target for lifecycle CO2 emissions per product in 2014 was 3% and an actual reduction of 5.2% was achieved. Canon also received a ‘striding’ score of 66 by ClimateCounts, showing we’re on the right track to help tackle climate change.

We have focused on the ‘circular economy’ for many years, recycling and reusing resources at every stage through a disciplined life cycle assessment of each product. Canon products are designed with end-of-life in mind, making it easier to recycle and reuse components in new and refurbished devices. Canon EMEA’s

Factory Produced New Model 4 (FPNM) programme was commended by the judges of the inaugural 2015 Circular Economy awards,

and also shortlisted as a finalist in the Environment and

Energy Awards 2015. The FPNM programme gives returned devices a second life, re-using up to 93% (by weight) of existing components.

Customer feedbackWe know customers are interested in and value our environmental commitment and activities. Results from our 2014 annual customer loyalty survey, sent to almost 300,000 customers in EMEA, show that, of those aware of Canon’s environmental commitment, 84% are satisfied with our efforts and 72% say this influences their buying decision. All employees have to undertake environmental awareness training with dedicated modules for service engineers to ensure they have a good knowledge of environmental information. This is reflected in the post-service survey in 2014: 84% of European customers expressed satisfaction with our service engineers’ awareness and communication of environmental information.

Flexible solutions We want our customers to benefit from our developments and use them to grow their own business or to enrich their lives. Want to design your own wallpaper? We can print it for you.

Henk Steenbergen – Canon EOS 7D

EnvironmentEnvironmentally responsible business

2010

130.1119.7 107.4 100 94.8

2011 2012 2013* 2014

Lifecycle CO2 emissions per product

4 www.canon-europe.com/about_us/sustainability/environment/recycle/#tcm:13-898349

*2013 results set as 100

http://www.canon-europe.com/about_us/sustainability/environment/recycle/#tcm:13-898349


This may be the future model – avoiding waste and long supply chains with associated distribution CO2 emissions. Need to print onto glass? We can do that too. Canon is also introducing 3D printing through partners, which offers even more options. And network visual solutions have many applications, for example they can help people avoid traffic congestion and increase personal security.

We are increasingly focusing on providing added value solutions – to help customers to get better results and operate more efficiently and sustainably. For example Canon Business Services provides outsourced services tailored to the customers’ needs – from targeted marketing services to a standardised invoice generation process. This leaves us free to provide the most suitable and efficient hardware to meet those needs, and motivates us to keep it running efficiently. Other services include:

• solutions using cloud services, which reduce the need for individual servers

• Managed Print Services, where an initial print audit identifies device and print savings for customers, reducing costs and impacts and increasing efficiency

• carbon neutral printing, where all CO2 emissions from printing and servicing are offset.

Many of these solutions minimise the number of devices required, help us and our customers

become more resource-efficient and provide motivation to extend the life of devices. More examples are shown in ‘Supporting our customers’.

Sustainable productsWe continue to offer products with improved energy efficiency and other environmental considerations to reduce CO2 emissions attributable to customer use. In 2014, we launched a number of products that use less energy than standard products on the market, including projectors, a wide format printer and the new MAXIFY range of business inkjet printers.

We regularly receive recognition for our efforts; for instance, the i-SENSYS MF6180dw laser multifunction printer was given an Outstanding Achievement award for energy efficiency by the independent Buyers Laboratory LLC (BLI) in its 2015 Winter Picks. BLI noted that this i-SENSYS exhibited a 47% lower than average energy consumption rate compared with similar machines. It also recovers faster than average from sleep mode, supporting productivity, and the display remains off when print jobs are sent to the device while in sleep mode, avoiding unnecessary energy consumption.

BLI Senior Editor Jamie Bsales explained, “Our Pick award winners don’t just have to be notable

Small businesses face a host of challenges just to run their business day-to-day. In 2014, Canon commissioned research with ICM who asked 1,250 small businesses across six European countries* about their attitudes to technology and print solutions, and their challenges.

While price and quality came out on top, 54% of businesses said that operating in an environmentally supportive and efficient way was also important for them. Concerns ranged from saving paper, to energy efficiency, to reduced ink/toner consumption and the ability to recycle print consumables. As well as wanting to operate in an environmentally efficient manner, 58% said they wanted to be as socially responsible as possible.

Externally, the single largest challenge identified by small businesses is the wider economic situation, but they also feel that paperwork and IT issues leave them less time than they would like to find and keep customers and grow their business. We continue to focus on providing products and services to help businesses use both time and resources efficiently and support their future growth.

* France, Germany, Italy, Russia, Spain, UK


performers in a given evaluation period, they have to be class-leading solutions among all their peers.”

We are also reducing packaging. For example, we introduced a new smaller carton for office product consumables, saving 165g cardboard per carton. This resulted in an overall reduction in 2014 of over 35 tonnes of cardboard purchased – roughly equivalent to ten adult African elephants – and a cost saving of almost €12,000.

Sustainable imaging equipment: Canon is a founding signatory to EuroVAprint, a voluntary agreement to improve the environmental performance of imaging equipment. During 2014 we contributed to the revision of the current agreement to tighten the criteria. From January 2015, 90% of new inkjet products placed on the market and 70% of laser products must qualify for EU ENERGY STAR® 2.0. Canon fully meets all applicable requirements set out in the revised voluntary agreement.

Extending resource lifeAs well as new products, services and solutions to help customers work efficiently, we offer remanufactured versions of our most popular multifunctional models. This extends the product life – with a warranty equivalent to a new product – and provides more affordable upgrade options for customers. Over 6,500 devices were remanufactured under our Factory Produced New Models programme in 2014, almost double those in 2013 and nearly four times those in 2012. These models re-use up to 93% components (by weight), with the rest recycled, and save around 80% CO2 emissions compared to a new device manufactured in Asia – an excellent illustration of our circular economy commitment. These devices are made to Canon factory standards and currently meet all the EU requirements for new products.

At our Giessen factory in Germany we also remanufacture field replacement units – parts which can be easily replaced on-site to repair a device; refurbish selected models, including a number of Océ-branded products; and

OperationsAs well as supporting our customers’ environmental responsibility, we also reduce environmental impacts across our own operations. We focus on the efficiency of both our sites and premises, and transport and car fleets. We build this approach into relevant business projects so that environmental efficiency is a natural part of these programmes (see ‘Warehouse operations’ below).

ISO 14001: Within EMEA, 188 sites in 25 countries come under our global ISO 14001 certification and are subject to a rolling audit programme. For the third year running, in 2014 there were no non-conformities within EMEA locations subject to audit – in fact there were no non-conformities across the whole Canon group, a significant achievement.

5 www.canon.com/environment/cartridge-sp/

13,664

10,8881,754

3,530

Factory produced new models

6,557

2012 2013 2014

repair over 150 camera models which are sold as B-stock.

Parts from Océ-branded products are also remanufactured and refurbished at the Océ factories in Venlo and Poing and reused. Credits are paid for parts and machines returned for refurbishment, which are repaired and tested before being reused.

2015 marks the 25th anniversary 5 of Canon’s global toner cartridge recycling programme. By the end of 2014 we had collected 344,000 tonnes of cartridges, which are 100% re-used or recycled into new cartridges using a closed loop system which sends no waste to landfill. This has saved around 232,000 tonnes of new raw materials and 502,000 tonnes of CO2. The programme operates in 24 countries, including 18 within Europe. Some additional countries run local schemes. We also have an inkjet cartridge recycling scheme in 15 countries in Europe.

Material saved ( Internal estimate)

( Internal estimate)

Cartridges collected

CO2 avoided

– 2014

– 2012

– 2010

– 200

8

– 200

6

– 200

4

– 200

2

– 200

0

– 199

8

– 199

6

– 199

4

– 199

2

– 199

0

500 –

450 –

400 –

350 –

300 –

250 –

200 –

150 –

100 –

50 –

0 –

(Year)

(Tonnes ‘000) Global toner cartridge recycling 1990-2014

http://www.canon.com/environment/cartridge-sp/


Warehouse operationsWe continued to consolidate our European warehouse operations in the Netherlands to improve efficiency. Our logistics partner, Nippon Express, has completed the new 70,000m2 warehouse in Rotterdam – big enough to fit in up to 16 football pitches – which began operation in early 2015 and has gained a BREEAM*** Very Good rating. Sustainability has been embedded throughout this project from design and construction, to the operation of the warehouse which will include packaging innovation and waste recycling. The warehouse has high levels of natural light and also uses low power LED lighting, while heat pumps and good insulation provide efficient heating and cooling. It is located in direct vicinity of five large container terminals which will increase the efficiency of distribution and logistics. Together with our existing warehouse, this campus is now the largest Canon distribution centre worldwide at 114,000m2, handling around 50% of products shipped to customers in the EMEA region.

Similar operational sustainability criteria have been incorporated into our contract with our logistics partner Syncreon for our existing warehouse in Hungary, which will act as a distribution hub for our operations in Eastern Europe.

Other• Under our company car policy, the maximum

CO2 emissions rate is 120g/km. This rate now applies equally to Canon Russia for all but service cars where a compliant option is not available. The policy will be reviewed again next year.

• Upgrades to improve the efficiency of our data centres – including replacing hardware, virtualising systems and reduced cooling requirements – have led to a saving of 632,020 kWh (22% reduction), equivalent to approximately 1.26 tonnes CO2 (based on the office’s renewable energy tariff) and €92,000, compared to 2013.

• Canon EMEA offices meet around a third of their energy needs from renewable sources.

AREA OBJECTIVE TARGET 2014 PROGRESSCanon EMEA carbon footprint

Reduce by 1.5% per annum vs turnover (compared to 2010)

-15% by 2020* Not met

Resource efficiency

Increase waste recycling at all EMEA offices

52% by 2014* Not met (51%)**

Increase waste recycling at Canon warehouses including outsourced warehouses

85% by 2014*Met – 85% of warehouse waste was recycled

New target: 90% by 2017

Sustainable products

Grow volume of certified and recycled paper grades

75% of paper turnover by 2014*

Met – 92.8% of paper was certified or recycled

New target: 80% of paper turnover by 2017

Achievements against targetsWe have achieved two of our 2014 targets and set new targets, to demonstrate our continued commitment to stretching ourselves and improving our performance in these areas.

*** BREEAM is the world’s leading design and assessment method for sustainable buildings

* Measured against the consolidated combined 2010 performance baseline of both Canon and Océ.** Some previous year figures had to be re-stated due to errors, so the target was missed.


Canon touches lives every day through imaging. Our technology enriches society in many different ways, enabling creativity, providing life and work opportunities, and supporting wider economic growth. The lives we touch range from our 17,000 EMEA employees, to young people increasing their life skills; from health professionals using our digital radiology solutions to remotely diagnose TB in Africa, to students going about their day-to-day lives safely on their university campus.

Our products, solutions and services have a positive impact on lives and businesses, from people sharing images with friends to professional photographers documenting stories and issues of global importance. Of the 10 billion images uploaded to Flickr in 2014, Canon was the top camera brand used – a stunning 1.34 billion+ images.

To support this proliferation of photos, we’ve launched irista - our advanced cloud-based image platform. This allows users to access, manage and store their entire image library in one place, whether taken on camera or smartphone, and is compatible with iOS and Android tablets. Images can be published directly from irista to Facebook®, Flickr and Google+.

Our people We want our passion for imaging to drive our employees’ passion for their career and to help develop our business. Employees of almost 90 different nationalities (at end 2014) help us understand our markets and opportunities in 116 countries. This includes our former Océ colleagues, with all Océ and Canon operations now integrated across EMEA.

We want to be recognised as the employer of choice in our sector, attracting and retaining talented individuals and, in 2014, launched a new careers site 6 which gives prospective employees, including graduates and interns, a taste of the opportunities at Canon. We worked with over 50 interns, students and trainees in 2014, across our 20 main country offices, and this number will continue to increase as we see mutual value from the experience.

To gain employees’ views, we again conducted an EMEA-wide employee survey, ‘Your Voice’ (see p17) and we exchange views with employees in other ways, including an employee commitment group in our London HQ, Works Councils, and more informal ways.

All employees operate under the Canon Group Code of Conduct 7, which supports our ethical approach to business. The behaviours expected of employees are communicated in various ways, including at inductions, in employee handbooks and via a compliance card. These expectations are outlined in mandatory EMEA-wide policies for topics such as anti-bribery and corruption and are covered in mandatory training (see Business). This is backed up by national policies and training when local regulations take precedence, for example for health and safety.

Christophe Vannier – Canon EOS 7D

SocietyEnriching society

13,664

10,888

2012

13,664 16,72117,935

2013 2014

Employees

6 www.canon-europe.com/about_us/careers/picture_yourself_at_canon/ 7 www.sec.gov/Archives/edgar/data/16988/000119312513130515/d473536dex111.htm

http://www.canon-europe.com/about_us/careers/picture_yourself_at_canon/

www.sec.gov/Archives/edgar/data/16988/000119312513130515/d473536dex111.htm



Leadership and management To support our transforming business, we continued our Pursuing Excellence programme during 2014, led by Rokus van Iperen. This three-year behavioural change programme aims to engage employees more directly in developing our business to make it more successful. By the end of 2014, the top 40 executives and all directors in EMEA – around 400 in total – had taken part in the leadership programme. The programme encourages leaders to adopt a new mindset, manage differently and model different behaviours. During 2015, these directors will develop their management teams (around 2,500 people) supported by HR colleagues and using online learning modules and face-to-face, locally-focussed learning sessions.

Directors and managers will increase staff engagement and motivation by fostering collaboration and building on employees’ expertise and creativity. Leaders and managers will be measured on their success as part of the performance management process.

Performance management and trainingA new performance management portal was launched in 2014 and rolled out to most

countries. It is available to all EMEA staff with a workstation (and a temporary solution is being arranged for those staff who work on customers’ sites). The portal allows employees to assess their own performance and connect their objectives to their manager’s priorities, to ensure individual objectives are linked to the overall business priorities set by the senior management in Canon EMEA. It is our policy that every employee should have regular interaction with their line manager including a review every six months and an annual formal appraisal. The appraisal enables a constructive conversation to review employees’ performance against objectives, assess their skills and agree a development plan and training needs. Managers completed and uploaded reviews for 82% of eligible employees in 2014, while 87% of employees completed a self-review.

Learning and developmentPersonal development plans (PDP) and training needs are uploaded to the performance management portal which enables HR to identify gaps in the learning curricula and develop new and relevant training. The same portal offers over 2,500 courses and learning materials in several languages, including online and classroom courses, virtual training and a book summary library. Some of the most popular courses in 2014 included Core Selling Behaviours, Foundation in Digital Marketing, Presentation Skills, Time Management and the Engineer Certification Programme.

Two questions in the employee survey related to whether employees felt they were provided with the opportunity for learning and development (54% agreed) and whether training was provided for them to do their job effectively (57% agreed). The expansion of the Pursuing Excellence programme outlined above should help to improve these results in 2015. We continue to expand our learning offering, in line with country, business unit and function needs and individual PDPs. We blend different learning formats, both formal and informal, to create an ongoing learning experience, aiming to make learning available at point of need to support on-the-job requirements. Formats include online learning, videos, virtual and face-to-face classroom sessions, coaching and reading.

Employee surveyOur employee survey – Your Voice – was carried out by a different provider in 2014, so the responses to a number of questions were not directly comparable to previous results. A more strongly worded scale was used, which can lead to a decrease in favourable responses but


allows more meaningful differentiation between engaged and disengaged employees. Nearly 12,000 employees – 71% – responded and, not surprisingly, people managers and those who have already gone through the leadership programme were more engaged. A snapshot of responses is shown below. Senior management and business leaders look closely at the results to formulate plans to take action where needed. In some areas there is an increase in ‘neutral’ scores, representing an opportunity for improvement in future. Results are shared across national sales organisations and across departments and functions.

In response to the 2014 survey, substantial work is being carried out to communicate the company’s objectives to all employees and link them to their personal objectives (see

Performance management). In addition, senior leadership have visited several regional and national sales organisations, speaking to all employees to increase engagement, while other initiatives include improving communication within departments to increase collaboration.

Community programmesOur employees support, promote and take part in many activities in their communities. We have guidelines for volunteering focus areas and, in some countries, employees are allowed to use a working day to volunteer for a community-focused project.

In 2014, 280 activities (2013: 249) were carried out by 23 national and regional sales organisations and two headquarters offices – an increase of 12% on 2013. We estimate these activities reached around 8.5 million people directly or indirectly within our local and business communities, and included the following:

77% are proud to say they work for Canon

39% are satisfied with career

development opportunities at

Canon

74% trust their manager 88% say their manager treats them with respect

31% feel they are rewarded

according to their job performance

25% feel their pay is competitive

compared to similar jobs in

other companies

31% feel knowledge is shared across departments although 80% agree the people they work with cooperate

78% understand

Canon’s values

63% believe Canon acts in a socially responsible manner

42% feel Canon’s senior leadership has taken action based on last year’s survey feedback

2014 2,595

2014 1,539

2013 1,475

2013 1,631

Hours volunteered by employees in working hours:

Hours volunteered by employees in their own time:

2014 €180,276

2014 €102,662

2013 €146,000

2013 €66,500

Cash donations:

In-kind support (e.g. product donations):

In 2014, we reviewed our EMEA-wide sustainability programmes and agreed to focus on three key areas which use our core strengths and expertise in imaging to support society’s needs. These areas are:

• Supporting young people to develop their creativity

• Using technology to support society

• Developing low carbon leadership

We will report on these further in our next report. Our activities from 2014 are outlined below, including some in-country examples from around EMEA.


Supporting emerging talentTalented East African photographers, mainly aged under 30, were given the chance to hone their skills and learn from world renowned photojournalist and Canon Master Gary Knight. Gary held a free week-long professional photography workshop in Nairobi, Kenya for ten photographers – eight from Kenya and one each from Uganda and Ethiopia. Participation was by a competitive process including external nomination and a formal review process.

Each photographer chose a story to work on, guided by Gary before and during the week. Guest lecturers included local and internationally-renowned photographers – such as Canon Ambassadors Jonathan and Angela Scott. As well as organising the workshop, Canon lent cameras and lenses

Workforce of the futureCanon UK’s partnership with East Lothian Council (ELC) in Scotland started in 2009. We supply Managed Print Solutions that save the Council £95,000 per year and, since 2012, we are also partners in a joint Employability Skills programme, now running in three East Lothian schools: Knox Academy, Ross High School and Dunbar Grammar School. Strongly backed by both the Chief Executive of ELC and the Managing Director of Canon UK, the programme supports two of the Scottish Government’s key initiatives – Developing Scotland’s Young Workforce, and Community Benefits and Economic Growth. The Employability Skills programme helps the students build skills essential to prepare them for future employment, such as confidence and motivation, CV preparation, presentation and communication skills, mock interviews, and management; and also how to identify their transferable skills and maximise them.

© Paul Kariuki Munene – Canon EOS 5D

Mirno MoreSince 1994, the Mirno More Peace Fleet has taken disadvantaged children on an annual sailing trip around the Dalmatian islands, teaching them new skills and teamwork, building their confidence, and helping them overcome ethnic and cultural barriers. The children live in residential homes and schools and have difficult backgrounds, with many being displaced, or war orphans, from the Balkans. Canon Central & Eastern Europe’s (CCEE) sponsorship enabled six children and two carers from the ‘Project Kinderhaus’ children’s home in Austria to join one of the 100+ boats taking part in the trip. A CCEE employee also volunteered on the trip as co-skipper of another boat and acted as an official photographer of the event.

Supporting young peopleWe support a variety of youth projects through 16 Red Cross/Canon Europe partnerships. These include supporting disadvantaged young people; helping children and young adult carers learn new skills; providing holidays for children growing up in impoverished families; promoting social integration and a sense of well-being; setting up family support groups to strengthen family relationships; and teaching first aid skills to children, parents and teachers.


Developing low carbon leadershipWe are proud of the long-lasting partnership we have enjoyed with WWF since 1998. Following a review of our sustainability approach and sponsorships however, we agreed not to renew the partnership at the end of 2014. Information on our final project with WWF is below and we will be developing a new programme in this area during 2015.

to participants and borrowed printers from the local Canon partner (OTL). At the end of the week, an exhibition of participants’ work was mounted, with friends, family, press and general public invited.

Feedback from the participants was positive, indicating that they had learnt a lot, built their confidence, and particularly been able to try new aspects of photography in their career. Similar workshops are planned for 2015.

Using technology to support societyAs part of being official supplier of imaging solutions to The 2014 Ryder Cup, we offered spectators a new experience, by taking stunning panorama shots where fans could zoom in to find themselves, tag and share via social media. We will offer Rugby World Cup 2015 fans similar experiences under our official sponsorship as well as supporting organisers and photographers with imaging solutions and expertise.

Helping athletes get back on trackInjury can put an end to the competition hopes of the finest athletes after years of preparation. Four Dutch Olympians at the winter games in Sochi had the benefit of remote diagnosis facilities through a Canon tele-radiology solution. This meant that images of their injuries could be immediately reviewed and analysed by Dutch doctors in The Netherlands to decide if treatment was required or if the athlete could safely continue to compete.

Supporting Arctic monitoring Our final Arctic project with WWF was to Svalbard, the island archipelago near Norway. Professional photographer Brutus Östling documented the WWF-Canon & Norwegian Polar Institute’s expedition, which aimed to collect critical data about Europe’s most westerly polar bear population and how the locations of their dens for giving birth are changing due to climate change. Just three of the 29 adult females encountered by the research team had a cub born that year, possibly due to disappearing sea ice affecting the bears’ reproductive success.

For the first time, samples collected by the project research team have allowed DNA specialists to isolate polar bear DNA from a footprint left in the snow. If DNA captured this way can tell researchers about the animal that left the tracks, this new technique could dramatically cut the investment required to capture such information, and enable easier monitoring of animal populations in future.

The expedition we supported in 2013 to the Taimyr Peninsula in the Laptev Sea, near Siberia, Russia, aimed to determine if there are genetically-distinct Laptev populations of walrus, or whether they are related to adjacent populations. Scientists needed to answer this question in order to develop effective status monitoring systems for both species and to determine the actions needed for their protection in an area of increased commercial shipping. The results from the first lab tests showed that Laptev’s walruses show enough differences from neighbouring Pacific and Atlantic walrus populations to be considered a distinct population.

© Daniel Irungu – Canon EOS-1D Mark IV


In today’s competitive environment, it is important that our customers get the best support from us. We need to understand our business customers’ markets and challenges as well as they do, and see the opportunities so we can support them to grow their business and get better results. Through our products and services, professional customers can offer new, value added services and consumers can use technology to develop their creativity.

The way people use imaging is changing. It is only by working collaboratively and flexibly that we can use our expertise, supported by our technology, to meet their needs. Examples of collaborative working are shown in the ‘Supporting our customers’ section.

We operate responsibly in our own business and work in partnership both up and down our value chain to support business development and create wider economic growth. We communicate our values and ask suppliers to respect these. Of course, we ourselves are subject to a variety of laws, regulations and standards across the EMEA region and we strive to anticipate, help shape and comply with these.

Anticipating requirements We anticipate and contribute to emerging policy developments by participating in stakeholder processes, maintaining membership of over 80 industry associations across EMEA.

Quality People trust the Canon brand because of our continuing commitment to maintain and improve quality. Offering the highest level of quality and service is one of Canon’s corporate objectives and the message behind Canon product quality is to provide “safety, smartness, and satisfaction” to customers. The basic quality policy 8 is to achieve “no trouble, no claims”.

Our commitment to quality covers the whole product lifecycle – from product development and production to post-sales support – for all new products, including software. Our focus on quality starts with considering performance, safety and ergonomics in product design and extends to post-sale satisfaction with Canon products (see Supporting our customers).

Canon Inc.’s Quality Management Headquarters works across the group to ensure quality and implement quality assurance systems tailored to each business, while the Quality Improvement Committee drives efforts to the next level in quality. Canon has established a quality management system, which combines the requirements of ISO 9001 with features unique to Canon.

Alexandra Dias Fernandes – Canon DIGITAL IXUS 870 IS

BusinessBusinesses fit for the future

Within Canon EMEA, the compliance assessment group at regional headquarters acts as a hub to ensure we catch emerging legal requirements, so our products and services can continue to be sold. We also prepare for forthcoming EU legislation, such as the revised directives on electrical safety, electromagnetic compatibility and radio equipment that come into force in 2016, and contribute to standards development, e.g. working with the relevant bodies to convert Restriction of Hazardous Substances (RoHS) EN standard into an international standard.

8 www.canon.com/corporate/special/quality.html

http://www.canon.com/corporate/special/quality.html

http://www.canon.com/corporate/special/quality.html


Energy EfficiencyStricter criteria for energy efficiency of imaging equipment were introduced with EU ENERGY STAR® 2.0 in 2014. We started registering products and almost 100% of Canon devices in scope qualify under the revised criteria. Under EuroVAprint, to which Canon is a signatory, 70% of TEC (typical energy consumption) and 90% of OM (operational mode) products placed on the market after 1 January 2015 must qualify for EU ENERGY STAR® 2.0.

Internal standards The Canon Group Code of Conduct 9 sets out the conduct Canon expects of all employees, including respecting human rights, ensuring safe and fair labour conditions, and the strict prohibition of bribery and corruption. We operate a Whistleblower scheme available to all employees, allowing them to raise concerns anonymously about suspected wrongdoing. Further information on employee welfare and legal compliance policies is available on our website 10.

We make the health and safety of employees a priority and provide a safe working environment

through policy and procedures, providing information on health risks associated with employees’ work and access to appropriate safety equipment. We do not have an overall health and safety policy for EMEA, instead respecting the varying individual laws in each country where we operate and taking local decisions. Canon Spain, for example, has obtained OHSAS 18001 certification, demonstrating legal compliance and ability to manage health and safety risks.

We submit regular performance updates to Canon Inc. including biannually on environmental targets and company performance, and monthly on financials. Canon Europe fully complied with internal compliance standards in 2014 and reported no negative responses in the annual global Canon Financial Statement letter of fiscal year 2014 and in the internal controls questionnaire, completed by almost all Canon Group entities. The questionnaire checks compliance with internal standards and policies, including, for example, ethical business conduct by managers and in relations with external partners, the implementation of the Code of Conduct, and preparedness for natural disasters.

Our management of sustainability and sustainability reporting helps us monitor our internal standards and practices. For example we benchmark our sustainability reporting against competitors and best practice and have benchmarked our approach to lifelong employability. As part of this we conducted an internal UNGC baseline assessment which showed that we are in the top 50% of current members in many areas.

As we grow our business, particularly by acquisition, we seek to ensure new parts of the business meet Canon group internal controls, standards and policies. However we also want our new business areas to retain their innovation and need to balance these sometimes conflicting needs.

Compliance trainingEmployees undertake mandatory compliance training in seven subjects (see graph), and several were translated into additional languages in 2014 to assist completion. Further subject-specific training was provided by our in-house legal department to new teams or those working in potentially higher risk areas – for example on competition law, contract law and compliance risks relating to customer incentives. Environmental awareness and health and safety training is provided as part of face-to-face induction courses and on demand in several parts of the business.

9 www.sec.gov/Archives/edgar/data/16988/000119312513130515/d473536dex111.htm10 www.canon-europe.com/about_us/sustainability/society/workplace/


http://www.canon-europe.com/about_us/sustainability/society/workplace/


Data securityWith more and more connected devices and services, the internet is ever more closely linked to how we live our lives and do business. While this offers new opportunities, it also raises new questions around privacy and data security. To meet these needs, our IT and data security teams are fully involved in the setup and auditing of new services, so changes can be made if required before they are offered to customers. In 2014, these included our irista photo-sharing application, Canon cloud services, and third-party software solutions.

To prevent risks from phishing and malicious emails, we regularly test employee awareness and offer hints and tips about the risks of phishing emails and clicking on attachments. Employees at headquarters offices in London and Amstelveen were invited to lunchtime sessions covering IT security at home - e.g. avoidance of phishing emails, strong password setting and safe online shopping.

Suppliers and PartnersIn order to deliver the high-quality services expected by customers, Canon cooperates with suppliers and partners across EMEA. Our strong commitment to doing business responsibly underpins these relationships.

Canon as a supplier: Canon strives to be seen as a responsible supplier and partner.

• We hold a gold rating on the Ecovadis sustainable supplier platform, which positions us among the top 5% performers in their system. This rating shows our customers that we meet high standards on environment,

labour practices, fair business practices, and sustainable procurement.

• Canon Europa NV holds Authorised Economic Operator certification. This relates to customs and logistics and demonstrates to business partners and national/international authorities that Canon is a trustworthy partner, with benefits including fewer physical customs inspections of shipments and transactions; and priority inspections. The rigorous certification proves that Canon is a reliable and efficient partner in financial terms, resulting in longer terms of payment or lower insurance premiums.

Information on other standards that we meet, such as our global ISO 14001 certification and ISO 9001 quality certifications, can be found on our website 11.

Supplier Code of Conduct: We continued the roll-out of Canon’s Supplier Code of Conduct in 2014. It is used in negotiations with new suppliers, in tenders and contract renewals, specifying the ethical principles we ask our suppliers to respect. To help suppliers better understand and comply with the code, it has been translated into more than 15 languages. Our EMEA procurement is in line with Canon Inc.’s procurement policy 12, which expects suppliers to comply with both social and environmental laws and regulations – e.g. human rights and labour.

Green procurement: Our ongoing assessment programme confirms the compliance of suppliers of specified items, such as Canon-branded merchandise or electrical items. The most important suppliers, based on spend, are prioritised for additional audits. 77 suppliers have been approved as compliant with Canon’s green procurement standards. At the end of 2014, 32 of these had been audited, prioritised by spend, with further audits scheduled for early 2015.

Partners: Canon’s indirect partner channel is made up of resellers and distributors. We are developing our approach with partners to embed our ethical principles through a code of conduct or similar within contracts. Further details will be in next year’s report. Our most successful partners - Premier Partners - are invited to an annual European Premier Partner conference. In 2014, IT@Spectrum, based in north-east England and focussing on the education sector, received the Premier Partner ‘CSR award’. Their nomination covered a broad range of CSR activities including: supporting young people through apprenticeships, work

IT Security76%

75%

77%

79%

77%

79%

85%

ICT Security Monitoring

You Can Keep It

Canon Environmental Awareness

IT Code of Conduct

Competition Law

Anti-Corruption and Bribery

Compliance training – 2014 completion rates

11 www.canon-europe.com/about_us/sustainability12 www.canon.com/procurement/social.html

http://www.canon-europe.com/about_us/sustainability/

www.canon.com/procurement/social.html


placements, and increasing young people’s entrepreneurial ability; and investing in community projects to help revitalise their region economically and socially.

Protecting our brandWe safeguard our brand, reputation and business by patenting our innovations and new technologies and enforcing our patents and trade marks.

Patenting innovationProtecting our intellectual property (IP) is an integral part of our business expansion. The IP team was part of the due diligence process during the acquisition of Milestone and is now working with Milestone colleagues to align Canon Group’s IP processes and practices, to safeguard new developments and manage IP risk. In 2015, around 1 500 EMEA employees involved with product and service development will be assigned a new online course covering patent awareness, so that this important area is better understood and taken into consideration earlier.

IP employee exchanges continued between Canon Europe and Canon Inc., increasing understanding and collaboration on the IP challenges faced by both companies. In particular, in EMEA, we are preparing for the forthcoming rollout of the EU Unitary Patent, affecting how Canon lodges patents in future and challenges patent infringements. Currently 25 EU countries are participating in the unitary patent.

Anti-counterfeitCounterfeit products pose a significant threat to our business and may harm the consumer so we monitor and take action against those trading in counterfeit products, whether using physical premises or websites and auction sites. In 2014, we conducted 80 investigations, received 289 customs notifications and seized

148,000 counterfeit goods with an estimated commercial value of €9 million. We also carried out 48 training sessions for customs and police across EMEA.

In addition, we work with consumer protection organisations and take legal action as required to reduce the importation of Canon products that, although genuine, are not intended for sale in EMEA. Products artificially localised for the EMEA market, perhaps by fitting an electrical power adaptor, may be dangerous and can damage the consumer’s experience and enjoyment of the product, potentially harming our brand and reputation.

Human rights and labourCanon EMEA takes its responsibilities to protect human rights and labour standards seriously and has renewed its commitment to the United Nations Global Compact. Our first Communication on Progress (COP) can be viewed on our website 13. As part of joining the UNGC, we reviewed our own performance against the core principles, and as a result, have benchmarked a number of areas of our own performance, including lifelong employability and sustainability reporting.

The Canon Group Code of Conduct 14 includes human rights criteria such as prevention of harassment and discrimination and our parent company, Canon Inc.’s website 15 includes a statement on eliminating child and forced labour. Information on Canon’s approach to conflict minerals can be found on our website 16.

Our EMEA employees are free to associate with labour organisations, which may vary from works councils to trades unions. Canon’s European Works Council is made up of employee and management representatives, who meet regularly to exchange information and views on the current status and future progress of Canon Europe’s business.

13 www.canon-europe.com/about_us/sustainability/sustainability_reports/14 www.sec.gov/Archives/edgar/data/16988/000119312513130515/d473536dex111.htm15 www.canon.com/csr/human_rights/concern.html16 www.canon.com/csr/conflict/policy.html

Patrizia Poletti – Canon EOS 5D Mark II


http://www.canon.com/procurement/social.html

www.canon.com/csr/human_rights/concern.html

http://www.canon.com/csr/conflict/policy.html

Canon Europe Ltd3 The SquareStockley ParkUxbridgeMiddlesexUB11 1ETUnited Kingdom+44 (0)20 8588 [email protected]

Canon Inc.canon.com Canon Europecanon-europe.com

© Canon Europa N.V., 2015

Please recycle this report after use

Photos on pages 1, 10-11, 14-15, 16, 18, 20-21 and 23 were taken by Canon employees working in Canon Central & Eastern Europe, Canon Europa, Canon Europe, Canon Middle East, France, Germany, Italy and Switzerland

Find more information on Canon Europe and sustainability at www.canon-europe.com/About_Us/sustainability

Please send any feedback or queries relating to this report, or to Canon EMEA’s sustainability activities, to: [email protected]

http://www.canon-europe.com/about_us/sustainability/

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canon emea sustainability report 2014

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