Epson's CSR and SDGs

What Is Epson's CSR?

Epson has been helping to solve various social issues by delivering unique value through innovative and creative products and solutions. Our mission is to build stakeholder trust as we grow and prosper with communities and to help create a better world. We consider any action designed to realize Epson's Management Philosophy to be a CSR activity.

In addition to ensuring compliance, observing corporate ethics, and fulfilling our responsibilities at a level that exceeds what society requires, we will fully demonstrate our unique creativity in CSR by creating value through the products we develop and manufacture. In 2017, Epson developed a materiality matrix that identifies key CSR themes, such as environmental issues, respect for human rights, human resources development, and governance. We will use this matrix to guide and strengthen our CSR activities and to help make the world a better place as we seek to become an indispensable company.

Management Philosophy

Management Philosophy, Principles of Corporate Behavior, and Epson's CSR

Established in 2005 and applying to the entire Epson Group, Principles of Corporate Behavior spells out principles of conduct for realizing the goals of Epson's Management Philosophy. In 2017, we updated Principles of Corporate Behavior in response to the latest societal requirements.

Epson will fulfill its social responsibility by aspiring to live up to the principles below based on "trust-based management," a concept that underlies Epson's Management Philosophy.

Principles of Corporate Behaviour

Key CSR Themes (Materiality)

To reach the goals stated in our Management Philosophy and to become an indispensable company, we believe it is important to identify issues that should be addressed and to solve them through our business activities.

In 2017, Epson selected CSR themes, taking into account social issues defined by ISO 26000 and other sources. We evaluated them from both our perspective and a social perspective, and prioritized the key themes in the "Key CSR Themes (Materiality)" matrix.

To help ensure that our activities are effective, we specified action items and targets (KPI) for each key CSR theme. We will periodically revise the key CSR themes and action items based on feedback from stakeholders and will systematically drive continuous improvements.

Key CSR Theme Matrix: FY2017 Action Items, Achievements and Results

Epson has identified 29 key CSR themes. Below we have listed the 16 themes that we consider to be the most important for society and for Epson (the themes in the pink sections of the Key CSR Theme Matrix that appears above). We have indicated our action items for each of these, as well as our achievements and results as of October 2017.

Principles of Corporate Behavior Key CSR Theme ESG FY2017 Action Item Categories Achievements & Results in FY2017 (as of October)
Pursuing customer satisfaction Creating new products and services with leading technology Main business Connect cyberspace and the real world with the aim of creating a new connected age of people, things and information, and provide the value of our efficient, compact and precision technologies to the real world in every business
  • We released a blazingly fast yet energy- efficient office inkjet multifunction printer equipped with newly developed PrecisionCore lineheads.
  • The PaperLab, a dry-process office papermaking system that mitigates environmental impacts and helps solves other issues, was awarded the Japan Industrial Technology Prize in recognition of its originality.
Business operations aligned with global social trends Main business As the importance of smart technologies and environmental performance grow increasingly important, Epson, as a real world manufacturing company, will continue to create smart products that contribute to the environment and demonstrate unrivaled performance
  • We published an Integrated Report in response to the expectations of our stakeholders, primarily our shareholders and other investors.
  • We shipped our 20 millionth high-capacity ink tank printer, products that provide value by allowing users to print with peace of mind.
Productivity improvement utilizing ICT Main business Refine our efficient, compact, and precision technologies, advance our actuator, optical control, and sensor technologies, and bring in information and communications technology to continue to create new customer value
  • We began to take action that will enable us to detect and address problems before they arise. Epson's compact precision sensors were embedded in production equipment to collect and monitor data in real time about equipment operation and about quantities of items such as vibration and dust. The aim is to help maintain high product quality and stable production.
Products competitiveness Main business Continue to provide high-quality, cost-competitive products that other companies cannot easily imitate, and do so in a timely manner through improvements in operation efficiency and personal productivity
  • We began inkjet printer production at a new factory in the Philippines with highly efficient, state-of-the-art operations and improved space productivity.
  • We announced construction of a new building that will house a trial production and volume production factory for large commercial and industrial printers and a test lab for digital textile printing.
Strategic marketing Main business Optimize regional sales organizations, improve planning quality with a market-driven (market-in) approach, and transform the brand image
  • We began drafting mid-range plans for each region in line with Epson 25 objectives.
    Planned and executed investments and actions in B2B and other priority areas and priority regions.
    1. (1) Improve the sales and service organizations in Epson sales companies.
    2. (2) Build stronger relationships with influential channels and customers.
Product quality and communications Social Visiting customers directly to gather and analyze information about their wants and needs, closely examining customer wants by analyzing customer inquiries, using the findings to shape future products and services, and improving quality and customer satisfaction
  • Product planners and design engineers visited customers to learn their wants. They analyzed these wants and used the results to shape products and maintain and improve product quality.
  • We invited customers to Epson to exchange information and ideas about upcoming products.
Consumer health and safety Social Strengthening actions to prevent product safety issues by standardizing the use of product safety risk assessments using information about accidents involving the products of other companies
  • There was one serious product-related accident in the first half of FY2017.
    • The situation was handled by notifying customers and making non-invoiced repairs.
    • Action was taken in all Group companies to prevent accident recurrence.
  • Preventive actions were taken.
Preserving the natural environment Effective use of energy and resources Environmental Developing SBT-compliant mid-range targets for the Group and actions (for the effective use of energy and resources in Scopes 1, 2, and 3 of the GHG Protocol)
  • Develop SBT-compliant mid-range targets for the Group and develop actions

    SBT-compliant Group-wide mid-range targets

    • We submitted a commitment letter declaring our intent to set science-based emissions reduction targets, and we are preparing to submit our targets for validation.

    Creation of environmentally-conscious products

    • We launched linehead inkjet multifunction and single-function printers that print at high speed yet are energy efficient (the LX-10000F & LX-7000F series)
  • Third-party validation of results data
    • Our greenhouse gas emissions (scope 1 & 2) data were verified by a third party and the results were released to the public.
Third-party verification of GHG emissions data (Scopes 1, 2, and 3)
Climate change and global warming Environmental Developing SBT-compliant mid-range targets for the Group and actions (for all categories in Scopes 1, 2, and 3 of the GHG Protocol)
Third-party verification of GHG emissions data (Scopes 1, 2 and 3)
Contributing to the environment through products and services Environmental Developing SBT-compliant mid-range targets for the Group and actions (for goods and services in Scope 3 of the GHG Protocol)
Third-party verification of GHG emissions data (Scope 3)
Fostering diverse values and teamwork Promoting Diversity Social Measures to increase the number of women in management positions
  • In Japan we increased the number of women hired right out of school (from 57 in April 2017 to 72 in April 2018).
  • Career design assistance for female employees in Japan was added to the manager and general manager training programs.
Measures to hire persons with disabilities
  • We strengthened our recruitment and hiring activities in Japan (strengthened cooperation with government and with special-needs schools, etc.)
  • We led factory tours for 202 people from assistance agencies and special-needs schools (compared to 80 in 2016).
Human resources development, hiring, and retention Social Recruiting, hiring, and retaining talent in a shrinking labor pool
  • We strengthened hiring of new graduates in Japan (from 293 in April 2017 to 366 in April 2018).
  • We interviewed all remaining new-hires from three years ago.
    • All 125 of the 132 people who were hired in 2014 and were still with the company in April 2017 were interviewed. Action is now being taken to address issues.
Training programs and assessing their results
  • General manager training in Japan was expanded to include all general managers instead of first-timers.
  • Career training was begun.
  • Created and held the first global executive seminar for key personnel at overseas affiliates.
  • The development of future executive management candidates was reviewed by the HR development strategy council (a meeting body made up of directors and executive officers).
Creating a safe, healthy, and fair work environment in which human rights are respected Respecting human rights Social Communicating and enforcing "The Policies regarding Human Rights and Labor Standards"
  • At the global HR meeting in November (attended by personnel managers from overseas affiliates), managers were instructed to communicate and enforce the policy at their respective companies.
Questionnaire to assess human rights risks at overseas affiliates
  • We made preparations for conducting the questionnaire.
Ensuring effective governance and compliance Compliance Governance Improvements to and use of the global compliance system
  • The Epson Group's Chief Compliance Officer (CCO) held a Regional Chief Compliance Officer (R-CCO) Meeting that was attended by the R-CCOs of the Americas, Europe, China, and the SE Asia regions.
Whistleblowing systems in all Group companies
  • We surveyed the use of whistleblowing systems and reported the situation at a Corporate Management Meeting with the aim of increasing the effectiveness of these systems.
Education and training to still compliance awareness
  • Epson named October as "Compliance Month" at Epson, and took actions to raise compliance awareness groupwide.
Ensuring the security of people, assets, and information Strengthening information security Governance Information security measures
  • We inspected software and web service products for vulnerabilities based on quality standards.
  • We amended information security & personal data protection regulations, and improved and strengthened the Epson Group's information security programs.
  • Senior Information Security Managers from Epson Group companies around the world regularly met to discuss and take actions to ensure tight information security at all companies.
  • We reminded employees about the importance of information security in July during Information Security Awareness Month.
  • The Japan head office and Epson's regional head office in Europe worked together on preparations for the General Data Protection Regulation (GDPR), which will go into effect in May 2018.
Providing information to customers
  • We provided information about information security online to the public.
  • We provided information about securing passwords on websites for customers (user registration).
Working with business partners for mutual benefit Supply chain management Social Asking key suppliers to observe the Epson Supplier Code of Conduct
  • We held supplier briefings in October to explain the code of conduct to representatives from 240 companies and to ask suppliers for their cooperation.
Supplier questionnaires and feedback on results
  • We analyzed the answers to self-assessment questions (SAQ) from 220 suppliers in 2016 and provided them with feedback on our findings.
  • We interviewed suppliers who needed to improve in the second half and verified the improvements on-site.
Supplier on-site verification and corrective action
  • We asked two Chinese suppliers that were audited by a third-party in 2016 to take corrective action, and they did so based on a corrective action plan.
Conflict minerals survey
  • We asked suppliers to cooperate in improving the accuracy of their answers on the survey at a supplier briefing in October.
  • We began the 2017 conflict minerals survey in November.

CSR Organization

Epson's CSR Management Office has a direct reporting line to the company president. The director of the office is a member of Seiko Epson's board of directors. He has overall responsibility and authority for the Epson Group's CSR activities.

The mission of the CSR Management Office is to promote CSR activities throughout the Epson Group and to help make Epson an indispensable company by executing a CSR strategy that builds stakeholder trust through business operations that meet the expectations of society.

Epson's CSR Executive Council, which is made up of board members, serves as an advisory body to the president and steers the CSR activities of the global Epson Group. The council also reviews our CSR activities and deliberates action plans for the most important challenges.

The CSR Executive Council has set up a CSR Management Committee to discuss and study CSR-specific issues. The CSR Management Committee, which is made up of general managers from functional supervisory departments, reports its findings to the CSR Executive Council.