Value Creation Infrastructure

Achieve Sustainability in a Circular Economy

  • 3. Good Health and Well-being
  • 6. Clean Water and Sanitation
  • 7. Affordable and Clean Energy
  • 9. Industry, Innovation and Infrastructure
  • 11. Sustainable Cities and Communities
  • 12. Responsible Consumption and Production
  • 13. Climate Action
  • 15. Life on Land
  • 17. Partnerships for the Goals

Message from Top Management

Motonori Okumura
Managing Executive Officer
General Administrative Manager, Production Planning Division

Climate change and global warming are greatly impacting society and are a serious problem for Epson too. To find a solution, Epson is working proactively to improve the environmental performance of our products and lower emissions of greenhouse gases (GHG) in the value chain. This is in keeping with Environmental Vision 2050 (a statement of what we hope to be in 2050) and the Epson 25 Corporate Vision Environmental Statement (a path to the year 2025 as an intermediate step). Epson’s efficient, compact, and precision technologies are the heart of this effort. In September 2018, we established long-term science-based targets for reducing GHG emissions. These targets were reviewed and approved by the Science Based Target initiative (SBTi). The global tide is moving toward decarbonization and a circular economy. Epson is responding by using more renewable energy and creating products and services that can contribute to our customers’ own efforts. This is how we use constant innovation to fulfill our responsibilities as a manufacturer.

Climate-Related Issues: Risks and Opportunities

The Task Force on Climate-related Financial Disclosures (TCFD) released its final report in June 2017. The TCFD encourages businesses to publicly disclose their medium- to long-term risks and opportunities related to climate change as financial information. Epson takes this as a call to develop resilient management and corporate health, able to adapt to all sorts of transitions in the face of climate change with impacts of a scope and scale we cannot predict.
The following table outlines Epson’s climate risks and opportunities as based on our understanding of the TCFD’s final report. This outline is the basis for our information disclosure.

Climate-Related Risks and Opportunities

Category Description
Opportunity Contribute to the expansion of business opportunities and to global sustainability through open innovation.
Expand sales opportunities by quickly complying with product regulatory and eco label requirements with low-carbon products and services.
Enhance the company’s reputation and secure human resources by ambitiously responding to climate change and through appropriate information disclosures and communications.
Transition risk Loss of sales opportunities due to delays in complying with product energy-efficiency regulations and eco label requirements.
Increased operating costs resulting from penalties imposed against energy consumption and greenhouse gas emissions.
Reputational damage if information disclosures and communications do not satisfy societal expectations.
Physical risk Impact on operations due to increasingly severe weather changes caused by climate change (disruption of factory operations or supply chains).

How Epson is Working for a Sustainable Society

Epson was founded in 1942 in a natural setting, in Suwa, Japan. Harmonious co-existence is our cornerstone. Even as we expanded globally, our culture of respect for the environment never wavered. In 1988 Epson became the world’s first enterprise to announce it would eliminate ozone-depleting chlorofluorocarbons (CFCs) from its operations. Past and present, Epson has always set high goals for its environmental initiatives. We revised Environmental Vision 2050 in 2018 in line with our aim of making Epson an indispensable company that is committed to sustainability, as stated in the Management Philosophy.
We remain engaged with the problems faced by our customers and communities as we work for a sustainable society, starting with meeting the SDGs by 2030. Through our business, we will keep creating uniquely Epson environmental value.

Environmental Vision 2050

Approach Leading up to 2050

To achieve the environmental vision by 2050, we have been setting milestone targets while working to bridge the gap needed to reach them. We seek to leverage our original efficient, compact and precision technologies to reach these milestones and reduce environmental impacts across the value chain, including through our business activities and improved product environmental performance. By offering products and services that enable new business processes, we aim to provide outstanding customer value in both economic and environmental terms.

Reducing the Environmental Impact of Business Activities

Material Balance (FY2018)

Epson consumes resources and, in the process of conducting business activities across the life cycles of its products and services, emits GHGs and other emissions to the air, land, and water. We are working to assess the environmental impacts of our business activities across the value chain in an effort to reduce our impacts. Although our water usage rose slightly over the previous year, we largely met our targets in FY2018. We will continue to provide energy- and resource-efficient products in our quest to achieve our business profit-based scope 3 emissions reduction target, which assumes growth and is linked to Epson 25 management indicators.

Epson’s Business Activities

Targets and Achievements*3

GHG emissions
-15%
Reduction of scopes 1, 2
Target: -19% by FY2025
compared to BM value
(BM: 592 thousand t-CO2e)
Water usage
+0.3%
Reduction of usage
Target: BM value or less
(BM: 8,324 thousand m³)
Waste emissions
-1.4%
Reduction of emissions
Target: BM value or less
(BM: 34.4 thousand t)
PRTR substance
emissions
-43%
Reduction of emissions
Target: BM value or less
(BM: 5.7 t)
VOC emissions
-8.8%
Reduction of emissions
Target: BM value or less
(BM: 184 t)
Scope 3
Per unit of
business profit*1
+6.5%
Reduction of per unit of
business profit
Target: -44% by FY2025
compared to BM value
(BM: 3.4)
  • *1 Scope 3 (categories 1 and 11) GHG emissions per unit of business profit (unit: thousand t-CO2e/100 million yen)
  • *2 Estimate of GHG emissions avoided by third parties: The emissions avoided by replacing laser printers with Epson inkjet printers are calculated based on electricity use (flow base approach). This is different from the actual reduction amount.
  • *3 Actual reductions and targets against FY2017 results are used as benchmarks. Figures in parentheses are benchmark values.

Third-Party Verification Report

We have the Japan Quality Assurance Organization (JQA) conduct a third-party verification of our calculations of GHG emissions to ensure their reliability. Our FY2018 GHG emissions (scopes 1, 2, and 3) and energy use data were verified as having been measured and calculated accurately, and a GHG verification report was obtained. (Scope 3 includes Categories 1 and 11.)

Greenhouse Gas Emissions Verification Report

Increasing Use of Renewable Energy

Epson has an SBTi-approved target of reducing scopes 1 and 2 GHG emissions by 19% by 2025. In FY2018, we achieved a 15% reduction in GHG emissions since the base year FY2017 through site energy-saving initiatives.
Some 70% of the reduction, or about 63,000 tons, came from long-term contracts to purchase low-carbon electricity, primarily hydroelectric power in Japan. This boosted our percentage of renewable energy to about 12%.
Outside Japan, we already use renewable energy for the electricity used in production sites in the United Kingdom and the United States (Portland) and head office buildings of sales companies in Europe (Germany, Italy, Spain, and the Netherlands). Besides those, a new factory in Thailand features a large array of solar panels and is preparing to start operating them.
Epson will keep using the best power for each region and taking steps like production innovation to lower GHG emissions.

Use of Renewable Energy Globally

Use of Renewable Energy Globally

* Onsite equipment, power purchase agreement, and/or certificate purchasing

Reducing Waste Ink

Epson Engineering (Shenzhen) Ltd., a printer production site in China, previously treated all waste ink from its printing inspection processes as industrial waste. The amount of waste and the high cost of treating it had become a challenge. The factory undertook to reduce waste ink by implementing a combined waste ink concentration system and microbial processor, a solution that was already in use in an Indonesian factory. As a result, about half the waste was restored to quality good enough it could be sent to the sewer and the other half could be recycled as concentrated liquid and sludge. That reduced waste ink by 481 tons per year and lowered yearly processing costs by about ¥30 million.
In addition, waste ink remaining after printing inspection is collected in a tank and gets a quality check (for foreign matter, viscosity, etc.), sent through filters, and reused.

Liquid waste
reduction (yearly)
Monetary value
of benefit (yearly)
Ink concentration 481 t ¥29,990,000
Reuse 56 t ¥17,750,000

Preserving Water Resources and Reducing Organic Waste

Jakarta, the capital of Indonesia, is struggling with land subsidence cause by flooding in the rainy season and groundwater shortages when it is dry. P.T. Indonesia Epson Industry (IEI), a large-scale printer production site, has introduced biopores, holes in the ground where rain can infiltrate. This solution has gained a lot of attention as something even households can do. In FY2018, IEI put biopores in 260 spots on its premises. These allow about 8,400 liters of rain to go into the ground every year. They also help prevent flooding and the pooling of water where mosquitoes breed. Additionally, fallen leaves and other organic waste can go into the biopores, which enabled IEI to reduce waste by 272 kg. The organic matter turns into compost, which enriches the soil.
IEI plans to continue installing biopores until it has them in 779 spots total, and to extend the initiative outside its premises.

Building Biopores

  1. A hole is dug and a special pipe (10 cm wide, 100 cm long) is inserted. It has many holes on its sides to allow water to pass.
  2. IEI pours organic waste (such as kitchen waste or fallen leaves) into the pipe.
  3. IEI checks biopore effectiveness.
    (soil enrichment, etc.)

IEI employee digs hole for a biopore; a biopore in the ground
IEI employee digs hole for a biopore; a biopore in the ground

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