Epson's CSR and SDGs

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. We have indicated our FY2017 action items for each of these, as well as our achievements and results.

Principles of Corporate Behavior Key CSR Theme ESG FY2017 Action Item Categories Achievements & Results in FY2017
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-8000, a dry-process office papermaking system that mitigates environmental impacts and solves other social issues, was awarded the Japan Industrial Technology Prize in recognition of its originality.
  • High-speed linehead inkjet multifunction printers (EW-M670FT/ M571T) and the PaperLab A-8000 office papermaking system were recognized with a 2017 Good Design Award and were named to the Good Design Best 100, an honor bestowed on the products that are the best of the best.
  • High-speed linehead inkjet multifunction printers from Epson were recognized in 2018 with a prestigious iF Design Award by Hanover-based iF International Forum Design.
  • Epson released analog watches under the Trume brand. These watches combine design excellence with state-of-the-art functionality based on Epson's unique strengths and technology.
Business operations aligned with global social trends Main business 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
  • We shipped our 20 millionth high-capacity ink tank printer, products that provide value by allowing users to print with peace of mind.
  • The Satogaeri ink cartridge recycling project, a joint effort with Brother, Canon, Dell, Epson, and HP Japan, entered its 10th year.
  • Thomson Reuters selected Epson from more than 5,000 technology companies for its list of the world's top 100 technology companies. This honor recognizes Epson as one of the industry's most operationally sound and financially successful organizations.
  • Global information company Clarivate Analytics selected Epson for inclusion in the "Top 100 Global Innovators" list for the 7th consecutive year. This award recognizes companies that have contributed to the advancement of science and technology through ongoing intellectual property activities.
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 collecting and monitoring real-time data on things such as production equipment vibration using compact sensors developed by Epson.
  • We developed technology for high product quality and stable production.
  • We launched high-efficiency factory logistics by developing a site parts logistics management system that integrates production control information, warehouse control information, and manufacturing instructions information.
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 mass production factory for large commercial and industrial printers and a test lab for digital textile printing.
  • We began operation at a new factory in Aomori to increase production capacity of superfine alloy powders that are used for a wide variety of high-performance parts.
Strategic marketing Main business Optimize regional sales organizations, improve planning quality with a market-driven (market-in) approach, and transform the brand image
  • We accelerated the building of B2B business infrastructure and resources.
    • Improved the sales and service organization in sales companies.
    • Prepared a sales affiliate in Vietnam (established in 4/2018) to strengthen direct sales.
    • Strengthened collaboration with channels to expand sales of high-speed linehead inkjet printers.
    • Conducted a B2B brand campaign in Western Europe, North America, India, and Asia.
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.

    Printing Solutions Business: Example 1

    • We learned from customer visits that customers wanted improved usability in Epson's high-capacity EcoTank inkjet printers. So, we provided our new 2017 models with new tanks, new bottles, and a new ink system that make it easier to fill the ink tanks, see how much ink remains in the tanks, and fill tanks faster the first time.

    Printing Solutions Business: Example 2

    • We were told by customers when selling linehead inkjet printers that we would need to provide authenticated printing in a serverless environment, and we provided this functionality in about 6 months.

    Visual Communications Business: Example 1

    • Multiple projectors are needed for uses such as projection mapping, and users wanted us to provide an application for adjusting the projectors. So, we met with users to hear their needs and developed an application that we were able to release 5 months ahead of schedule to meet user needs.

    Visual Communications Business: Example 2

    • We conducted joint field tests with users of our BT300 smart glasses to identify issues and new needs for supporting users' equipment and existing PC environments. An improved model offers connectivity with existing equipment.
  • We launched a voice-of-the-customer portal site and provided customer feedback (from about 2 million VOC reports annually in Japan) to relevant departments. This feedback was analyzed and used to improve our products and services.
  • We continued to take action against counterfeit goods on online shopping sites around the world to reassure customers that they are purchasing genuine Epson brand products.
    • Monitored and exposed online shopping sites particularly closely in China and the Middle East, where counterfeit goods are rampant.
    • Provided training to polices and customs agents.
  • 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 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.
    • Revised and communicated Group-wide operations procedures.
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)
  • We set and executed measures to achieve SBT-compliant mid-range targets.
    • Drafted proposed Group-wide mid-range targets (Scopes 1-3) & applied for SBT approval.
  • We disclosed data for GHG Protocol Scopes 1-3.
    • Scopes 1 & 2 results: FY2016 results verified by third party and published in Epson's Integrated Report and Sustainability Report.
    • Scope 3 results: Prepared FY2017 results.
  • We had GHG data verified by a third party.
    • Scopes 1 & 2: Verified by third party.
    • Scope 3: Had a third party verify & assess FY2015 data, and prepared relevant guidelines.
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
  • We strengthened recruitment of women in science & engineering fields.
  • We revised the promotion system, and explored and implemented a telecommuting system on a trial basis.
  • Career design assistance for female employees was added to the manager and general manager training programs.
  • In addition to our existing targets (hiring and retaining female recruits [25%] and providing career design and childcare support), we set targets for women in management and leader positions.
    Management: 5% [40 women] in 2022
    Leader: 7% [350 women] in 2022
  • We established a Women's Advancement Project as an initiative to promote diversity. We implemented policies to support both career advancement and child-rearing/ caregiving. The Ministry of Economy, Trade, and Industry and the Tokyo Stock Exchange recognized Epson as a company that encourages women's success by selecting Epson as a "Nadeshiko Brand."
Measures to hire persons with disabilities
  • We strengthened our recruitment and hiring activities (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).
  • We a target for the employment of persons with disabilities [2020: 2.5%].
Human resources development, hiring, and retention Social Recruiting, hiring, and retaining talent in a shrinking labor pool
  • We hired 675 (Group consolidated) in Japan.
  • We rehired 434 retirees (as of 3/20/2018) (vs. 337 the previous year).
  • We provided lifetime career support training for 716 (out of 795) employees aged 40 & 50.
  • We interviewed all 148 employees in their third year.
  • We began exploring a training program for technologists/ engineers.
Training programs and assessing their results
  • We expanded and enriched training for executive management candidates.
  • We enhanced and enriched training from middle management (expanded eligibility for general manager training & explored training for assistance managers).
  • We held a new Global Executive Seminar for key personnel at our 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.
  • We communicated policies during training of CEOs of our overseas affiliates & training to prepare personnel for overseas assignments.
  • We provided anti-harassment training for personnel at each echelon.
  • We provided anger management & strategic criticism training to executive management.
  • Continued responding to and monitoring personal data protection requirements.
Questionnaire to assess human rights risks at overseas affiliates
  • Overseas affiliates completed a self-check 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 Asia-Pacific regions.
Whistleblowing systems in all Group companies
  • The use of whistleblowing systems was surveyed and the situation was reported at a Corporate Management Meeting to increase the effectiveness of these systems.
  • We established a whistleblower system for used by our business partners.
Education and training to still compliance awareness
  • We provided compliance training for each echelon and held Compliance Month (October of every year).
  • We provided risk management and compliance training for executive management (e.g., security export control, overseas crisis management, and legal training).
Ensuring the security of people, assets, and information Strengthening information security Governance Information security measures
  • Software and web service products were inspected for vulnerabilities based on quality standards.
  • Information security & personal data protection regulations were amended, and the Epson Group's information security programs were improved and strengthened.
  • Employees were reminded about the importance of information security in July during Information Security Awareness Month via training [online training for all personnel, managers (7 times), and information security promotion personnel (2 times)].
  • We completed preparations to comply with the requirements of the EU General Data Protection Regulation, which took effect in May 2018.
  • We checked the information security situation of business partners on a trial basis.
  • We began round-the-clock monitoring of cyber attacks in Asia.
  • We completed the Group-wide installation of measures to prevent mistakenly send email.
Providing information to customers
  • Information about information security was disclosed on the corporate website.
  • Information was provided about securing passwords on websites for customers.
  • We provided customers with information about product wireless LAN vulnerabilities.
Working with business partners for mutual benefit Supply chain management Social Asking key suppliers to observe the Epson Supplier Code of Conduct
  • Suppliers were briefed about the Epson Supplier Code of Conduct and asked to observe it. A total of 493 suppliers attended 11 briefing sessions in the major production sites of Japan, Indonesia, and China.
Supplier questionnaires and feedback on results
  • We analyzed the answers to self-assessment questionnaires (SAQ) from 220 suppliers in 2016 and provided them with feedback on our findings.
  • All indirect production materials suppliers (e.g., temporary staffing, logistics, and construction companies) returned a completed SAQ. (50 first-tier suppliers & 16 second-tier suppliers).
Supplier on-site verification and corrective action
  • We implemented on-site verification of suppliers and requested corrective action where needed.
    • We followed up with two suppliers in China that were audited by a third party in 2016 and verified that they had made the requested improvements.
    • Two suppliers in Indonesia and Japan were audited by a third party.
Conflict minerals survey
  • We conducted conflict minerals surveys.
    • We asked 411 suppliers to complete the survey and received completed surveys from 388 of them (94%).

FY2018 Action Items

Epson established action items for the 2018 fiscal year based on performance with respect to the 2017 action items for key CSR themes and the reception by the general public.

Principles of Corporate Behavior Key CSR Theme ESG FY2018 Action Item Categories
Pursuing customer satisfaction Creating new products and services with leading technology Main business 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
Business operations aligned with global social trends Main business 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
Productivity improvement utilizing ICT Main business Maintain high-quality, high-efficiency productivity by leveraging Epson's unique IT, sensing, and automation technologies in manufacturing
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
Strategic marketing Main business Optimize regional sales organizations, improve planning quality with a market-driven (market-in) approach, and transform the brand image
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
Consumer health and safety Social Continue strengthening our prevention activities
  • Standardize product safety risk assessments
  • Improve the product safety education curriculum
Preserving the natural environment Effective use of energy and resources Environmental Carry out SBT-compliant actions to reduce CO2 emissions, and publish the results (Scopes 1-3: Reduce total CO2 emissions)
Reduce CO2 emissions (Draft a plan for introducing renewable energy)
Climate change and global warming Environmental Carry out SBT-compliant actions to reduce CO2 emissions, and publish the results (Scopes 1-3: Reduce total CO2 emissions)
Reduce CO2 emissions (Draft a plan for introducing renewable energy)
Contributing to the environment through products and services Environmental Carry out SBT-compliant actions to reduce CO2 emissions, and publish the results (Set Scope 3 emissions intensity targets and reduce emissions)
Fostering diverse values and teamwork Promoting Diversity Social 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
Human resources development, hiring, and retention Social 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
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"
  • 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
Ensuring effective governance and compliance Compliance Governance 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
Ensuring the security of people, assets, and information Strengthening information security Governance 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
Working with business partners for mutual benefit Supply chain management Social 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