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Material Topics

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Overview of Sustainability Management

The Canon Marketing Japan Group (hereinafter, the "Canon MJ Group") defines material topics as "themes of high importance to the Canon MJ Group and its stakeholders that should be addressed intensively." We have established an end-to-end management framework that connects our corporate philosophy with our Purpose, Long-Term Management Objectives, material topics, and Medium-Term Management Plan, and we carry out actions to tackle the material topics in an effort to achieve our corporate philosophy and our Purpose.

Seven Material Topics

The Canon MJ Group has divided the value it created into two categories—maximization of positive impacts and minimization of negative impacts on society—and determined seven material topics from three perspectives, namely the two categories of value mentioned above and the management foundation that supports them.

Material Topics Value to create Management foundation (Source of value creation)
Maximization of positive impacts on society Minimization of negative impacts on society
Contribution to fulfilling life and work styles ●    
Realization of a safe and secure society ●    
Co-creation and collaboration with stakeholders ●    
Harmony with the global environment ● ●  
Respect for human rights   ●  
Improvement in employee engagement     ●
Implementation of sound governance     ●

Major Initiatives to Address Material Topics and Targets

Material Topics Major Initiatives Main indicators 2030 target
Value to create Contribution to fulfilling life and work styles Conduct initiatives to maximize positive impacts in the framework of the Medium-Term Management Plan.
  • IT Solutions Business
    Focus on the following areas to expand service-type businesses
    (1) Integration for value creation 
    (2) Business process services (BPS) 
    (3) Total security 
    (4) Comprehensive support for small and medium-sized companies
  • Canon Product Business
    Promotion of integrated solutions with the IT Solutions business
  • Specialist Fields and New Businesses
    Creation of new businesses driven by social issues
Creation and distribution of examples (Since it is the same as an initiative in the Medium-Term Management Plan, we will check the progress for main indicators and targets in the review of the Medium-Term Management Plan.)
Realization of a safe and secure society
Co-creation and collaboration with stakeholders
Harmony with the global environment
  • Contributing to customers’ CO2 reduction through our business
  • Realization of carbon neutrality（2030 Medium-Term Environmental Targets）
  • Contribution to the realization of a resource-recycling society（2030 Medium-Term Environmental Targets）
  • Rate of reduction in Scope 1 and 2 emissions
  • Rate of reduction in Scope 3 (categories 1 and 11) emissions
  • Achieve zero emissions from product waste (recycling rate of 99.9% or higher)
  • Reduce Scope 1 and Scope 2 emissions by 42% from 2022 levels by 2030
  • Reduce Scope 3 (Category 1, 11) emissions by 25% from 2022 levels by 2030
  • Recycling rate of 99.9% or higher
Respect for human rights
  • Implementation of action plans for priority human rights themes
Rate of implementation of annual action plans for priority human rights themes (for individual fiscal years) 100% implementation rate
Management foundation (Source of value creation) Improvement in employee engagement
  • Acquisition and development of competent personnel suited to the business portfolio
  • Encouragement of active participation of diverse personnel
  • Improvement in engagement for mutual development of the company and employees
  • Ratio of personnel sufficiency at positions necessary to implementation of business strategies
  • Percentage of female managers
  • Engagement score
  • 100％ sufficiency
  • 12％
  • Target to be set within 2026
Implementation of sound governance
  • Improvement in engagement with investors and analysis and incorporation of their opinions into management
  • Frequency of dialogues with shareholders and investors
  • Frequency of report meetings to directors and business heads, etc.
  • At least 200 times a year
  • At least 20 times a year
  • Strengthening of supervisory functions for realizing sustainable corporate value enhancement
  • Frequency of evaluation of effectiveness of the Board of Directors
  • Frequency of Nomination and Remuneration Committee meetings
  • Frequency of Special Committee meetings
  • At least once a year
  • At least 4 times a year
  • At least once a year
  • Enhancement of effective risk management structure and compliance structure
  • Ratio of determination of priority risks and implementation of measures (for individual fiscal years)
  • Frequency of compliance meetings (for individual fiscal years)
  • 100% implementation rate
  • 100% implementation rate

Process of Identifying and Approving Material Topics

The Canon MJ Group organizes the wishes of its various stakeholders and analyzes risks and opportunities related to its businesses to identify seven material topics through deliberations at the Sustainability Promotion Committee.

Selection of Expectations and Demands of Society

  • Canon MJ Group identifies the expectations and demands of society through reference to international standards and ESG evaluation bodies.

Identification of Material Topics

Identification of Material Topics
  • Societal expectations and needs items are plotted on a map with two axes—the level of importance to stakeholders and the level of priority to the Canon MJ Group.
  • The level of priority to the Canon MJ Group is weighted according to financial impacts in consideration of its Long-Term Management Objectives and after identification of opportunities and risks.
  • Material topics are identified after evaluation of appropriateness and discussions by outside directors, inside directors, outside experts and employees.

Incorporation into Strategies and Plans

  • For the material topics identified, main indicators and targets are determined. They are incorporated into medium-term management plans and others in separate business divisions.

Approval

  • The material topics, main indicators and targets are subject to examination and approval by the Sustainability Promotion Committee, which is chaired by the president & representative director and comprises directors, directors of business units and heads of related divisions. They are then subject to resolution of the Board of Directors.
  • The Sustainability Promotion Committee performs regular monitoring of the progress in initiatives related to the material topics.