Responsible Procurement

The Canon Marketing Japan Group (hereinafter the "Canon MJ Group") values compliance with laws and regulations, the protection of the environment, and human rights, and we implement responsible procurement activities in line with our Procurement Basic Policy, which we established to ensure stable purchases at appropriate prices.
To improve the effectiveness of this policy, we have established a dedicated department controlling the procurement divisions of the Canon MJ Group as a whole in a cross-sectoral manner. We endeavor to ensure our procurement activities are sound and transparent by providing employees with training regarding laws, regulations, and internal rules, monitoring legal compliance and other efforts.

We have summarized specific initiatives based on the Procurement Basic Policy and published them as our Requests to Suppliers to help establish sustainable society by promoting sustainable procurement activities throughout the entire supply chain. We request that our suppliers understand the Canon MJ Group's ideas regarding sustainable procurement, implement the initiatives listed in the Requests to Suppliers, cooperate with us in relevant survey and audit and address any risks which have been identified.
The Canon MJ Group addresses social issues together with our suppliers through responsible procurement activities. By doing this, we will help facilitate a more prosperous and sustainable future.

The Canon MJ Group has established the Canon MJ Group Procurement Regulations as an initiative to ensure that transactions are appropriate and fair. In these regulations, equal and fair trade, compliance with procurement-related laws and regulations, the protection of the environment, and human rights are fundamental principles. All employees involved in procurement activities must uphold these principles. Based on the regulations, we provide employees of procurement divisions with buyer training so that they can respond appropriately to social issues in their operations, including issues related to the environment and human rights, beyond complying with laws and regulations and practicing corporate ethics. The training is provided to all employees who have been newly assigned to procurement divisions. It is also provided to existing members of the divisions on an ongoing basis, with the aim of developing human resources who are capable of implementing responsible procurement activities.
Before starting business with a new supplier, we conduct risk assessment and request that they sign a Basic Business Agreement. At the same time, we ask that they confirm the details of the Requests to Suppliers and comply with them with the goal of sharing knowledge about the ideas and key points of responsible procurement with suppliers to increase our mutual understanding. Even after starting business, we conduct regular surveys to examine the supplier's initiatives and provide feedback regarding our evaluation results to the supplier in line with the contents of the survey. If we confirm that any stipulations of the Basic Business Agreement have been violated or the Requests to Suppliers have not been complied with, we ask the supplier to take remedial actions and provide them with support as necessary. When we have determined that the situation would be difficult to remedy, we consider terminating transactions with the supplier.

The Canon MJ Group is working to eliminate hazardous chemical substances in accordance with the Global Canon Green Procurement Standards^*, which were formulated by the Canon Group.
To new business partners, we give explanations about the Global Canon Green Procurement Standards and confirm that they have established product chemical management systems in accordance with the above Standards. We also conduct surveys of raw materials, parts, and secondary materials of products manufactured under contract to check for environmentally hazardous substances, thus confirming that the Global Canon Green Procurement Standards are observed.
When we revise the Global Canon Green Procurement Standards, we inform suppliers of the contents of the revision. Every other year, we confirm that product chemical management systems established by our suppliers are operated appropriately and that they comply with the Global Canon Green Procurement Standards on an ongoing basis by appropriately conducting surveys of raw materials, parts, and secondary materials of products manufactured under contract.
To ensure that the Global Canon Green Procurement Standards are understood and observed, we hold study sessions for procurement divisions of the Canon MJ Group and remind them of the Standards via our internal intranet.

At the Canon MJ Group, we conduct mineral surveys (address the issue of conflict minerals)^* responsibly under the basic policy adopted by the Canon Group.
Business enterprises are required to avoid use of materials supplied by business operators with high human rights and environmental risks from conflict regions because the non-use of such materials is regarded as part of corporate social responsibility. We request our suppliers to cooperate with us in tracking the sources of minerals used in products and avoiding the use of conflict minerals, so that customers can use Canon products with peace of mind.