Epson's CSR and SDGs

Key CSR Themes

FY2018 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. We have indicated our FY2018 action items for each of these, as well as our achievements and results.

Materiality Key CSR themes FY2018 action item categories Achievements & results in FY2018 Relevant SDGs
Advance the frontiers of industry Business operations aligned with global social trends
  • As the importance of smart technologies and the 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
  • Made Shinko Sellbic a wholly-owned subsidiary to acquire compact injection molding technology
  • Forged capital ties with AI venture company Cross Compass to acquire AI technology
  • Declared our commitment to SDGs
  • Rated Gold in two consecutive years in sustainability assessment by EcoVadis
  • Selected as a constituent of the FTSE4Good Index Series, a Socially Responsible Investment (SRI) Index, for the 14th consecutive year
Creating new products and services with leading technology
  • Connect cyberspace and the real world toward 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
  • Increased PrecisionCore printhead production capacity
  • Continued quantifying the environmental performance of PaperLab A-8000
  • Launched high-lumen laser projectors and new lighting products
  • Won awards in the Product Design category at the internationally acclaimed Red Dot Awards for 2018 (3 printers and 1 projector)
  • Sponsored the Epson TeamLab Borderless digital museum as a projection partner
Productivity improvement utilizing ICT
  • Maintain high-quality, high-efficiency productivity by leveraging Epson's unique IT, sensing, and automation technologies in manufacturing
  • Increase efficiency and saved manpower by using machine learning to automate the sensory evaluation of parts
  • Automated the collection and totaling of manufacturing and quality data through direct communications with production equipment, and continuously developed efficient manufacturing management
  • Advanced development of highly sophisticated automation using robots and sensing technologies
Products competitiveness
  • 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
  • Completed construction on a new factory for inkjet printheads at the Hirooka Office to triple inkjet print chip production capacity
  • Started constructing a new building at the Hirooka Office that will house a trial production and mass production facility for large commercial and industrial printing systems, as well as a test lab for textile printing to improve operation efficiency and personal productivity
Strategic marketing
  • Optimize regional sales organizations, improve planning quality with a market-driven (market-in) approach, and transform the brand image
  • Improved BtoB sales organizations and revamped sales functions
    • Developed channels for BtoB sales in Japan and Western Europe
    • Launched billing plans in Japan and Western Europe
    • Set up solution centers in Japan, US, Korea, and Taiwan
    • Invited BtoB channel partners from around the world to our Global Partner Days event and strengthened relationships with key accounts (twice a year)
Achieve sustainability in a circular economy Contributing to the environment through products and services
  • Carry out SBT-compliant actions to reduce CO2 emissions, and publish the results (set scope 3 emissions intensity targets and reduce emissions)
  • Set long-term GHG emission reduction targets
    • Established science-based Group-wide GHG reduction targets (scopes 1, 2 and 3) and obtained SBTi approval for the targets (Nov. 2018)
    • SBTi approval targets (FY2017 is the baseline year)
      • Reduce scopes 1 and 2 GHG emissions by 19% by FY2025
      • Reduce scope 3 (categories 1 and 11) GHG emissions as a percentage of business profit by 44% by FY2025
    • Results
      • Scopes 1 and 2 emissions: 500,000t-CO2e (15% reduction vs. FY17)
      • Scope 3 emissions: 3.6 thousand t-CO2e/100 mil. yen (6.5% increased vs. FY17)
      • Concluded long-term procurement contracts for renewable energies (e.g., hydroelectricity)
        Reduction of 63,000t-CO2 (FY18)
  • Disclosed GHG data
    • Disclosed data in the Integrated Report and Sustainability Report (all scopes)
    • Received third-party verification of results data and disclosed the verification results
  • Implemented a field survey to reduce the GHG emissions of the supply chain and created good practice scenarios
  • PaperLab A-8000: Won the Economy, Trade and Industry Minister's Prize in the 1st Eco Products Awards
  • High-speed linehead inkjet multifunction printers: Won the Director-General's Prize, The Agency for Natural Resources and Energy, of the FY2018 Grand Prize for Excellence in Energy Efficiency and Conservation
Effective use of energy and resources
  • Carry out SBT-compliant actions to reduce CO2 emissions, and publish the results (scopes 1, 2 and 3: Reduce total CO2 emissions)
  • Reduce CO2 emissions (Draft a plan for introducing renewable energy)
Climate change and global warming
  • Carry out SBT-compliant actions to reduce CO2 emissions, and publish the results (scopes 1, 2 and 3: Reduce total CO2 emissions)
  • Reduce CO2 emissions (Draft a plan for introducing renewable energy)
Improve the quality of products and services Product quality and communications
  • 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.
  • Printing Solutions Business, Example 1
    In Asia and in emerging nations for office printer market Epson launched monochrome inkjet printers. Our monochrome inkjets are equipped with high-capacity ink tanks that are quick and easy to refill with ink from large ink bottles, so replacing ink reduces trouble and mess.
  • Printing Solutions Business, Example 2
    Large-format inkjet printers for commercial and industrial applications have a space-saving, lightweight design that enables their installation even where space is often limited, such as in architectural firms, construction sites, and school faculty rooms.
  • Visual Products Business, Example 1
    High-brightness projectors are often permanently installed in places such as shopping complexes and entertainment facilities, where ceilings and walls are predominantly white. Users expressed a desire for white replacement lenses and white ultra-short-throw zero-offset lenses for these projectors so that they would blend in with the surroundings, so Epson responded by commercializing white models.
  • Visual Products Business, Example 2
    ICT administrators and boards of education members wanted to quantitatively assess actual projector use and benefits in the classroom so that they could promote more effective use of classroom projectors. Epson quickly responded by developing and providing an online software tool for analyzing the use of permanently installed projectors.
  • Monitored Internet shopping sites and exposed counterfeit goods mainly in China and the Middle East, where infringements frequently occur, and educated the police and customs officials
Consumer health and safety
  • Continue strengthening our prevention activities
    • Standardize product safety risk assessments
    • Improve the product safety education curriculum
  • No serious product-related accidents in FY2018
  • Standardized the use of product safety risk assessments
    • Implemented risk assessments of nine novel key components in the product commercialization process
  • Enhanced the product safety training curriculum
    • Provided functional safety training on machine control 12 times
    • Introduced risk assessment elements to a product safety training curriculum for new employees and implemented the training 8 times
Strengthen supply chain management Supply chain management
  • Asking key suppliers to observe the Epson Supplier Code of Conduct
  • Supplier questionnaires and feedback on results
  • Supplier on-site verification and corrective action
  • Conflict minerals survey
  • Established a supply chain management strategy and disclosed it on the Web
  • Disclosed commitment of the person responsible for the supply chain management on the Integrated Report
  • Held supplier briefings and asked them to observe the procurement guidelines
    • Japan:447 suppliers, Overseas: 685 suppliers
  • Established and notified business partners about channels they can use to report issues and opinions
  • Surveyed all production materials suppliers with questionnaires and returned the results as feedback
  • Extended the scope of the questionnaire to non-tier 1 suppliers
  • Implemented supplier on-site verification and took corrective action
    • Completed improvements in 3 out of 6 suppliers found to be high risk based on questionnaire results
    • Developed supplier direct diagnosticians
  • Implemented a field survey to reduce the supply chain GHG emissions and created good practice scenarios
  • Implemented conflict minerals surveys (Send surveys to 910 companies and received responses from 838 companies, for a 92% return rate)
Respect human rights and promote diversity Respecting human rights
  • Communicating and enforcing "The Policies regarding Human Rights and Labor Standards"
    • Continue to communicate during training of CEOs of our overseas affiliates & training to prepare personnel for overseas assignments
    • Continue to provide anti-harassment training for personnel at each echelon
  • Continue responding to and monitoring personal data protection requirements
  • Follow up on self-check questionnaires
    • Explore means to control future global human rights risk based on questionnaire results
  • Communicated and enforced "The Policies regarding Human Rights and Labor Standards" at the meeting attended by HR managers from overseas affiliates
  • Completed GDPR compliance for employee personal data in Europe, and continued gathering information on other countries and regions
    • Strengthened security when gathering information
  • Implemented self assessments at overseas Group companies and confirmed that there were no material issues
Diversity
  • Measures to increase the number of women in management positions
    • Formally introduce a new promotion test system & telecommuting system
    • Execute new training plans for managers (Foster an internal culture)
    • Plan measures to promote the retention of women under 30
  • Execute plans to achieve the female hiring target
    • Expand support for women interested in pursuing careers in science and engineering
  • Maintaining and increasing employment of persons with disabilities
    • Develop new job opportunities in the Tokyo region, etc.
    • Act to increase the percentage of employees with disabilities in subsidiaries (Develop job opportunities)
    • Build a system for gathering global information on the employment of persons with disabilities
  • Implemented measures for promoting the advancement of women
    • Attracted 22 participants in the rikochalle events, expanded internship seminars for women
    • Provided diversity management training for managers on a trial basis to further change the mind-set of management
    • Held discussions between management and female employees, and continued providing support by identifying and sharing worries and concerns
    • Expanded and enforced a support program related to dependent care (introduced a telecommuting system)
    • Conducted three seminars on how to balance work with caregiving responsibilities. The seminars were attended by approximately 400 employees in total
  • Created jobs for persons with disabilities by installing PaperLab A-8000 dry process office papermaking systems
Human resources development, hiring, and retention
  • Recruiting, hiring, and retaining talent in a shrinking labor pool
    • Continue large-scale hiring in Japan (approx. 550, Group consolidated)
    • Explore actions (training, etc.) to stimulate older employees
  • Build infrastructure for managing human resources information (a talent management system) and develop human resource appointment, placement and training policies through personnel reviews
  • Training programs and assessing their results
    • Continuously improve, expand, and enhance training for executive management candidates (e.g., transfer future leaders overseas and have candidates participate in exchanges with the Ministry of Economy, Trade and Industry and others outside our industry)
    • Begin assistance manager training
  • Review 360-degree surveys and employee motivation surveys, explore future actions, and establish a direction
  • Implemented hiring programs in Japan and hired 562 new employees Group-wide
  • Interviewed 256 workers who were new-hires from three years ago
  • Continued giving lifetime career support training for workers at the ages of 40 and 50
  • Built and began implementing a rotation program mainly for managers and young workers
  • Introduced an assistant manager system and started up assistant manager training
  • Continued implementing personnel reviews to list succession candidates
  • Studied the introduction of a talent management system
Strengthen governance Information security
  • Information security measures
    • Establish a global security monitoring and response system
    • Assess cyber security measures and formulate a response plan
    • Check the customer information security situation of new business partners
  • Strengthen product security
  • Took information security measures
    • Started global security monitoring
    • Assessed cyber security measures and identified items that need to be addressed
    • Checked the information security of new business partners
    • Responded to GDPR requirements for personal data protection
  • Strengthened product security
    • Implemented guidelines for deciding responses to vulnerability on a trial basis
Compliance
  • Begin Group compliance activities by introducing a compliance program
  • Explore a global whistleblower system
  • Compliance awareness program
    • Put in place a model system
    • Prepare a global employee code of conduct
  • Introduced a global compliance program to Epson Group companies
  • Prepared a global whistleblower system that is to be introduced in FY2019
  • Established the Epson Group Global Code of Conduct
  • Started sharing information about compliance violations within the Group

FY2019 Action Items

Epson established action items for the FY2019 based on performance with respect to the 2018 action items for key CSR themes and the reception by the general public.

Materiality Key CSR themes FY2019 action item categories Relevant SDGs
Advance the frontiers of industry Business operations aligned with global social trends
  • Strengthen global operations under Head Office control
  • Enhance public disclosures, including about SDGs and other non-financial information, and strengthen dialogue
Creating new products and services with leading technology
  • Accelerate growth by engaging in collaboration and open innovation
  • Strengthen the solution selling business
  • Rapidly strengthen product lineups, including through collaboration
  • Strengthen external sales businesses using core devices, and actively encourage open innovation
  • Invest management resources in robotics to accelerate its growth into a core business
Productivity improvement utilizing ICT
  • Continuously improve productivity to achieve high quality and high efficiency using sensing and automation technologies that are grounded on Epson's unique manufacturing and IT infrastructures and brought about by the efficient, compact, and precision technologies
Products competitiveness
  • Further improve sites to increase production competitiveness, including by completing construction of a new building at the Hirooka Office
Strategic marketing
  • Strengthen the global sales strategy and management functions to build BtoB sales organizations
    • Use high-capacity ink tank printers to accelerate office market penetration
    • Share knowledge about business printer sales acquired in Japan and Western Europe to North America and other areas
    • Improve sales sites in the Middle East, Africa, etc.
Achieve sustainability in a circular economy Contributing to the environment through products and services
  • Establish a reduction scenario for achieving a science-based target and implement concrete reduction measures
    • SBTi approved target (FY2017 is the baseline year)
      • Reduce scope 3 (categories 1 and 11) GHG emissions as a percentage of business profit by 44% by FY2025
  • Disclose GHG data
    • Disclose data in the Integrated Report and Sustainability Report (all scopes)
    • Receive third-party verification of results data and disclose the verification results
  • Calculate and disclose the contribution to the reduction by product
    • First introduce to inkjet printers.
  • Implement a field survey and improvement initiatives to reduce the GHG emissions of the supply chain.
Effective use of energy and resources
  • Establish a reduction scenario for achieving a science-based target and implement concrete reduction measures
    • SBTi approved target (FY2017 is the baseline year)
      • Reduce scopes 1 and 2 GHG emissions by 19% by FY2025
  • Disclose GHG data
    • Disclose data in the Integrated Report and Sustainability Report (all scopes)
    • Receive third-party verification of results data and disclose the verification results
Climate change and global warming
Improve the quality of products and services Product quality and communications
  • 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
  • Continue to combat counterfeiting globally and on Internet shopping sites to help reassure customers that they can buy genuine Epson brand products
Consumer health and safety
  • Further enhance the product safety training curriculum
    • Conduct industrial machinery risk assessment training
Strengthen supply chain management Supply chain management
  • Ask key suppliers to observe the procurement guidelines
  • Survey suppliers using questionnaires
  • Implement supplier on-site verification and take corrective action
    • A field survey to reduce supply chain GHG emissions and improvement activities, etc.
  • Conduct conflict minerals surveys
  • Establish supplier reporting channels (overseas)
Respect human rights and promote diversity Respecting human rights
  • Check and address any issues concerning freely chosen employment of foreign workers
  • Plan and start human rights due diligence related to labor suppliers
Diversity
  • Promote the advancement of women
    • Implement programs in line with the Act on Promotion of Women's Participation and Advancement in the Workplace and the Act on Advancement of Measures to Support Raising Next-Generation Children
  • Promote the advancement of non-Japanese employees
    • Further visualize overseas affiliate talent and promote their development
  • Promote the participation of the elderly
    • Review and shape a hiring policy by focusing on the extension of the retirement age
  • Promote hiring of persons with disabilities by further introducing PaperLab A-8000 dry process office papermaking systems
Human resources development, hiring, and retention
  • Continue building the talent management system
    • Monitor the operation of the rotation system
  • Provide career support to young workers
    • Study lifetime career support training for workers at the age of 30
  • Continue implementing employee motivation surveys and 360-degree surveys
    • Study a system for using the survey results for HR measures
Strengthen governance Information security
  • Implement information security measures
    • Establish a system for globally responding to security incidents
    • Establish a response plan for cyber security measures and implement the measures
    • Expand the scope of checking business partners' information security
  • Strengthen product security
Compliance
  • Introduce a compliance program to operations divisions and divisions
  • Start operating a global whistleblower system
  • Implement education and training to instill compliance awareness
    • Improve the code system
    • Start using the Epson Group Global Code of Conduct