Epson Group
Sustainability Report 3-3-5 Owa, Suwa-shi, Nagano-ken 392-8502 Japan TEL: +81-266-52-3131 http://global.epson.com
2015
Highlights
April 2014 - March 2015
Individuality and Teamwork Customer Commitment
Sustainability Report 2015 Highlights P.3
CONTENTS
40th Anniversary of the Epson Brand P.13
P.5
Leveraging Unique Sensing Technologies
Creating a Dynamic Workplace
Trusted Throughout the World
P.15
Socially Responsible Procurement
Epson conducts business activities with the aim of becoming an indispensable company to customers and society. Our activities
40th Anniversary of the Epson Brand
3
Leveraging Unique Sensing Technologies
5
Integrated Environmental & Business Strategy
9
Environmental Conservation Is a Corporate Obligation
11
Creating a Dynamic Workplace
13
Socially Responsible Procurement
15
Corporate Citizenship in the Community
17
To Our Stakeholders
19
Business Vision
21
CSR Management
23
Epson Group Overview
24
are rooted in our Management Philosophy and the employee mission underpinning the Exceed Your Vision tagline.
Prospering with the Community Editorial Policy This report covers representative CSR activities in the Epson Group during 2014. The structure is meant to portray the direction we are headed, with articles arranged in
Commitment to Environmental Conservation
chapters that mirror Epson’s Management Philosophy. Prepared for Epson’s worldwide stakeholders, this report is
P.17
brief and concise. Refer to Sustainability Report 2015 for
Corporate Citizenship in the Community
more detailed information.
Disclaimer P.11
Environmental Conservation Is a Corporate Obligation
This report includes forward-looking statements, estimates, and plans. Projections herein are based on the best information available at the time of publication. Actual results may vary from those discussed.
P.9
1
Epson Group Sustainability Report 2015 Highlights
Integrated Environmental & Business Strategy
Note: “Epson” refers to the Epson Group, unless indicated otherwise.
Epson Group Sustainability Report 2015 Highlights
2
Customer Commitment
EP + SON = “EPSON” The origin of the “Epson” name
40th Anniversary of the Epson Brand
The Epson brand name comes from the EP-101, an electric printer that kicked off the company’s expansion into the information equipment business. The “Ep” stands for “electric printer” and the “son” represents our desire to follow the original electronic printer with many more worthwhile products and services in a variety of fields.
The EP-101, the world’s first miniature digital printer
Filling the Technology Void
Changing the World in Four Areas
On June 12, 2015, the Epson brand marked its 40th anniversary.
Epson leverages its unique core technologies to alter the scope and nature of its businesses to meet the changing needs of
This 40-year journey is defined by an ethos that we call “creativ-
customers and society. We are developing original products and services in line with a vision of initiating positive change in the
ity and challenge.” Epson engineers have always filled technology
four areas of printing, visual communications, quality of life, and manufacturing.
voids by finding creative solutions to challenges in order to realize their dreams of creating the value they envision and the products they want to present to the world. Since its founding as a watch manufacturer in 1942, Epson has been renowned for generating
1963 Printing Timer Electronic recording system
original products by continuously advancing its microfabrication
Sales
and ultra-high-precision processing technologies.
Manufacturing
Today, printers are Epson’s largest business. The catalyst for venturing into this business was the development of a printing timer, a groundbreaking electronic recording system that could accurately measure times at sporting events and immediately print out the results. The printing mechanism used in this system served as the platform for the EP-101, introduced in 1968 as the world’s first miniature digital printer. Commercialization of this printer laid the foundation for later expansion into other businesses.
Printing
Visual communications
Quality of life
High-precision manufacturing
Manufacturing
1963 Seiko Crystal Chronometer QC-951 World’s first portable, high-accuracy, battery-operated quartz timer
Responding sincerely to customers’ opinions
Design Micro Piezo
Micro display
Sensing
Robotics New Core Technologies
Planning
Core devices
Planning and designing innovative products
Developing original core devices
Enduring Commitment to Creativity and Challenge
1969 Seiko Epson began in 1942 as Daiwa Kogyo
3
Epson Group Sustainability Report 2015 Highlights
Seiko Quartz Astron 35SQ The quartz watch that revolutionized horology
Vertical integration is one of Epson’s strengths. We develop the core devices and core Micro Piezo printhead, microdisplay, sensing, and robotics technologies that enable the products we manufacture and sell. Control over the manufacturing process allows us to create value that exceeds customer expectations. On the following pages, we report on products for two of the above areas that integrate sensing technology.
Epson Group Sustainability Report 2015 Highlights
4
Customer Commitment
Epson provides sports products that combine accurate data and professional knowledge
Change quality of life
for runners and golfers. We are enriching the lives of people with immaculately designed,
Leveraging Unique Sensing Technologies
comfortable wearable products that can acquire your location information using GPS.
Wearable products are a perfect fit for Epson thanks to our combination
Runsense GPS Sports Watches
of watch, semiconductor, and crystal device businesses.
SF-810V
WristableGPS for Trekking MZ-500B
Epson’s wearables can be paired with smart devices to provide customers with advice on improving their health or athletic performance based on data collected by precision sensors.
Improving Quality of Life with Sensors Epson is focused on maximizing sensing accuracy. Accurate sen-
Runsense GPS Sports Watch is equipped with a
Provides useful, accurate information for hiking based
pulse sensor as well as GPS. Perform heart
o n re a d i n g s f ro m a c o m b i n ati o n of s e n s o r s (G PS,
rate-based training without a chest strap.
geomagnetic, accelerance, temperature & barometric).
Thin (14.2 mm) and lightweight (52 g).
The product is only sold in Japan.
sors acquire better data, and this data can, in turn, serve as the
Mizuno Baseball Swing Analysis System Swing Tracer
basis for high-value products and services.
M-Tracer Golf Swing Analyzer MT500G II
Our Pulsense activity monitors are equipped with sensors that measure your pulse at the wrist and track your activity to provide you with objective data that you can access at any time from a PC or smartphone. You can see, for example, the time you spent exercising in the fat-burning zone or your state of mind (relaxed or excited) at any time of day. Pulsense helps you acquire habits that will form the basis for good health throughout your life.
Pulsense heart rate monitors with activity tracking
How heart rate is tracked The light-absorbing property of hemoglobin is used to track pulse. LED light is shone on blood vessels
The sensor attaches to the base of a bat to trace and
Attach the sensor to a club to accurately measure the
analyze the swing path for baseball, fastpitch softball and
data needed to analyze a swing. Data is sent to your
slowpitch softball.
smartphone so you can identify areas for improvement.
The product is only sold in Japan.
and pulse rate is counted based on
(Product photo provided by Mizuno Corporation)
changes in the amount of reflected light.
VOICE
Voice of the customer
VOICE
Using Pulsense in our Lively Health Diagnostic Program
Sensors for an IT revolution in batting Swing analysis requires a small, lightweight, high-precision sensor. Epson’s sensors allow us
We at Ikenotaira Hotel & Resort Corporation provide personal-
to measure and analyze eight important swing factors, enabling us to commercialize Swing
ized exercise and lifestyle advice to our clients based on body
Tracer. We hope to keep Epson as a valued partner as we work to further develop this product
type and measurements of their heart rate and exhalations dur-
and offer scientific support for effective instruction and training.
ing exercise. During interval walking, where we alternate aerobic and anaerobic exercise, our clients need to be able to see changes in their heart rates. We use Epson’s activity trackers to accurately measure heart rate.
5
Epson Group Sustainability Report 2015 Highlights
Voice of the customer
Hikaru Ozawa Health Fitness Programmer / Health & Exercise Instructor Lively Health Diagnostic Program Ikenotaira Hotel & Resorts Corporation
Takeshi Naruo Chief Researcher Mechanical Engineering Ph.D. Research and Development Department Mizuno Corporation
Epson Group Sustainability Report 2015 Highlights
6
Customer Commitment
Case
Case
1
2
Leveraging Unique Sensing Technologies
Leveraging Unique Sensing Technologies
Creating New Value With Moverio
Making Communities Safer
Epson is creating new value with the Moverio Pro BT-2000, a multi-sensor smart headset for business
Epson’s industrial sensing systems are used to monitor buildings, infrastructure, and potential disaster
applications that is based on the Moverio with Epson’s binocular, see-through, hands-free wearable
sites to enable quick evaluations and decision-making.
products.
Our goal is to make communities safer by helping to ensure that people are not exposed to risks posed by deteriorating infrastructure or disasters.
Comfort a priority
Contributing to Research on Building Safety
Epson Sensors in ICT & Urban Development
Tests were conducted in January 2015 at the “E-Defense”
Epson’s sensing system technology was used in a govern-
Three-Dimensional Full-Scale Earthquake Testing Facility
ment-sponsored research project on ICT and urban devel-
in Hyogo, Japan, as part of a multi-year government-spon-
opment in the city of Shiojiri, Japan. In April 2015, Shiojiri,
sored project to mitigate the seriousness of disasters arising
which is promoting the use of sensor networks to increase
from urban vulnerabilities. An Epson sensing system based
community safety, installed Epson accelerometers on city
on 158 inertial measurement units (IMU) was used to help
bridges and inclinometers on hillsides for field tests.
assess damage to the structure under test.
The BT-2000 can be worn comfortably for long periods—a necessity for business applications—thanks to a headset that distributes the weight of the system.
Boosting Work Efficiency I am the leader of the Moverio Pro development project. Smart glasses with see-through lenses are attracting attention because they allow you to work with both hands and What is an inertial measurement unit ?
see your surroundings while also viewing visual content displayed in front of you. We have conducted numerous joint
An IMU is a sensor that measures object move-
real-world tests with Moverio in various fields. We developed
ment in 3D with accelerometers, which sense
the BT-2000 based on the insights we gained into customer
linear motion, and gyro-sensors, which sense
needs.
rotation.
The IMU also provides
VOICE
The design of the BT-2000 was tweaked to further in-
extremely accurate head
Shinichi Kobayashi
crease operational efficiency. For example, the headset was
tracking, so augmented
HMD Business Management Department
equipped with an Epson inertial measurement unit (IMU),
reality content can be
a motion sensor for accurate motion tracking and indoor po-
displayed in the proper
Our urban development partner
sitioning. Analyzing a motion log allows you to identity waste
location in your field of view, for complete comfort.
The city of Shiojiri is looking to create a safe, secure community, but we lack the wherewithal
and obtain insights that will lead to greater operational ef-
to inspect and maintain all of the more than 500 bridges and hillsides equally. The data pro-
ficiency and productivity. Since it knows your position, the
The BT-2000, the product of a total collective effort by mul-
vided by Epson’s sensors should allow us to quickly see their state and take efficient action.
headset can, for example, help you
tiple operations divisions, is allowing Epson to deliver new
Epson offered superior technology and by far the most accurate accelerometers and inclinom-
quickly navigate to specific loca-
value.
tions in a large warehouse where outdoor GPS signals do not reach by providing information overlaid An inertial measurement unit
7
Voice of the customer
Haruo Kaneko
eters. Epson has been the perfect partner, and we look forward to continuing our relationship.
Chief Technology Officer Information Policy Section Manager Planning & Policy Department City of Shiojiri
on your actual environment.
Epson Group Sustainability Report 2015 Highlights
Epson Group Sustainability Report 2015 Highlights
8
Commitment to Environmental Conservation
Integrated Environmental & Business Strategy
High-Capacity Replaceable Ink Pack System Print up to 75,000 A3 sheets without replacing the ink2. The ink pack system reduces CO2 emissions
We articulated our 2015 environmental goals in our environmental policy, and the environmental
by using fewer resources and facilitates consumables management. 2
this approach is to reduce end-user environmental impacts. 3
“New Perspective” Products and Services Products and services that are designed from a new per-
tomers by offering them innovative, eco-considerate Epson
spective make your work and life easier and sharply reduce
technologies, products, and services that will change the
your environmental impacts. As we continue to improve the
way they work.
CO2 emissions3 Approx.
programs we are pursuing are firmly linked to our business strategies. We are addressing environmental issues from a variety of angles, one of which we call “new perspective.” The goal of
Low global warming impact
95
uoted yields are extrapolated based on Epson original methodology Q from the print simulation of test patterns provided in ISO/IEC 24711 and ISO/IEC24712. Quoted yields will vary depending on the images that you are printing, the paper type that you are using, frequency of printing, environmental conditions, etc. igures calculated under Epson’s test conditions. Compared with the F Epson LP-M5300FZ Japan model, a color laser MFP with equivalent functions. We use a life cycle assessment to calculate the total global warming impacts of consumables across the product life cycle (material, material processing, distribution, disposal) as CO2 emissions. CO2 emissions will vary depending on customer printer use.
% reduction
(75,000 prints)
Four high-capacity ink packs
CO2 emissions
CO2 emissions
3.81
80.39
kg-CO2
kg-CO2
52 toner cartridges & 6 photoconductor units Volume of consumables used to print the same number of pages with the Epson LP-M5300FZ, a color laser MFP with equivalent functions
Epson RIPS technology printer
Supporting Energy-Efficient Offices with Inkjet Printers
environmental performance of our products, we are also helping to mitigate the environmental impacts of our cusEpson inkjet printers, which use slight changes in pressure to eject ink droplets instead of heat, con-
Reducing Eco Impacts with RIPS Technology
sume far less electricity than laser printers, which do use heat. 4
Epson printers with replaceable ink pack system1 (RIPS)
er. Epson is helping to reduce the environmental impacts of
technology are a “new perspective” product for the office.
our customers by supplanting laser printers, which have long
Equipped with high-capacity replaceable ink packs, these
dominated office printing, with inkjet printers.
business inkjets offer approximately 95% lower CO2 emis-
5
sions and use 88% less power than an equivalent laser print-
Low electricity consumption Electricity consumption Approx.
88
or the A3 all-in-one basic model, the A3 printer basic model, and the F A3 printer full set
% reduction
(TEC approach4)
ypical electricity consumption (TEC) is based on the ENERGY STAR® T program’s TEC test method criteria. Measured when making 288 prints per day. Compared with the Epson LP-M5300FZ Japan model, a color laser MFP with equivalent functions. The TEC value of the WorkForce Pro WF-R8590 series is 0.7 kWh.
Electricity consumption
0.6
5
kWh/week
Epson RIPS basic model
VOICE
Electricity consumption
5.2
kWh/week
LP-M5300FZ Equivalent Epson color laser MFP (sold only in Japan)
Voice of the customer
RIPS is a game changer We use the Epson RIPS technology printer as the main printer for our office. It is reassuring to know that for just 12,000 yen per month—the basic monthly fee for the full-set plan, which includes servicing—we can call field service to resolve any issues that arise. The replaceable ink packs are huge, so we never have to worry about running out of ink. Another advantage of Nobuhiko Yasuda 1
9
Epson Group Sustainability Report 2015 Highlights
In some geographies, printers with RIPS technology include a managed print service with a choice of printers as well as ink and maintenance for a fixed monthly fee.
Representative Sakura Chuo Tax Accountants’ Corporation
Epson’s inkjet solutions is that they consume far less power than laser printers, which helps us to keep our electrical bills down.
Epson Group Sustainability Report 2015 Highlights
10
Commitment to Environmental Conservation
Environmental Conservation Is a Corporate Obligation We at Epson are putting our environmental technologies and know-how to work in global environmental
Reducing CO 2 by Visualizing Air Conditioning At Epson Portland Inc. (EPI) in the US, more than 7 million
EPI reduce its annual
kWh are consumed each year, on average, for air condition-
CO2 emissions by more
ing and production support equipment. In 2011, the Facilities
than 100 tons.
team worked with the non-profit Energy Trust of Oregon to
initiatives.
introduce a new air conditioning monitoring system to re-
Since implementing this
Here, we present some examples of initiatives in the UK and USA.
duce EPI’s energy use and environmental impact.
cooling system in 2011, EPI has taken advantage
Sustainable Factories with Zero-Cost Recycling
of various other energy
cord the actual air temperatures in the ink cartridge produc-
conservation opportuni-
tion areas throughout the day. EPI used the data to modify
ties. These have result-
the air conditioning system so that, when outdoor tempera-
ed in cumulative CO2
tures are lower than those in the production areas, warm air
reductions of approximately 655 tons.
I’m Justin Pike, Supervisor of the Environmental Depart-
2006 ETL was earning
is automatically exhausted and outside air is used for cool-
ment of Epson Telford Ltd. (ETL) in the UK. Epson’s zero
enough money from sal-
ing, saving energy and money. These actions have helped
emissions program began with an effort to recycle 100% of
vaging the waste to break
process wastes. In FY2003 all Epson Group companies in
even on its recycling op-
Japan and all of our overseas production sites achieved this
eration.
Andy Pigg
recycling target. Epson is now shifting to activities that conserve resources in production processes.
I’m Andy Pigg, Manag-
(1) L arry Halverson checking the operations of the air conditioning system on a monitor (2) Air conditioning system installed on the roof
er of the Environmental Department. In 2012, ETL received the first Zero Waste to
tivities at ETL, we have been work-
Landfill Award from Valpak, a leader in waste management
ing to achieve zero-cost recycling
and environmental compliance.
since January 2006. Toward that end, we strive to efficiently reuse
We display posters showing the results of our zero emis-
production waste materials to
sions activities as a way to raise employee awareness. We
make paper, plant materials,
also endeavor to produce as little waste as possible by re-
stationery and other every-
Manager Facilities
● Main Improvements to Reduce CO2 Since 2011
1
Manager Environmental Department
As part of our zero emissions ac-
Larry Halverson
The monitoring system allowed Facilities to observe and re-
Improvement
CO 2 Reduction
Production area temperature control with outside air (2011)
112 tons
Compressed air leak repair (2011)
67 tons
Reduced HVAC air volume (2012)
171 tons 66 tons
Reduced compressed air pressure (2012)
2
Installed variable frequency drives on six cleanroom fan motors (2014)
188 tons
ducing processing waste and unnecessary items.
day goods. By November Justin Pike Supervisor Environmental Department
VOICE
● Zero Emissions Activities at Epson
Cut electricity bill through efficiency Resource conservation
Recycling
Factory
Waste materials
Resource inputs
Closed-loop recycling
Non closed-loop recycling
11
Reduction of inputs Shift
Resource inputs
Product
Epson Group Sustainability Report 2015 Highlights
Recycled externally
Definition of recycling
Energy Trust of Oregon, a non-profit organization funded by customers of local utility companies,
• Recycling 100% of waste materials • Maximum of 50 g of burnable waste per
provides financial assistance to help businesses and homeowners save energy.
person per day
Closed-loop recycling Factory
Non closed-loop recycling
When Larry Halverson asked us about reducing energy in EPI’s cleanrooms, our energy professionDefinition of resource conservation Reduction of resource inputs • Reduction of wastes by using recycled resources •
Recycled in-house
Recycled in-house Recycled externally
A message from our partner
Product
als suggested ways to optimize indoor air pressure and increase energy efficiency. Energy Trust of Adam Bartini Senior Program Manager Energy Trust of Oregon
Oregon provided $21,000 in funding, and the improvements are expected to save EPI $30,000 or more a year.
Epson Group Sustainability Report 2015 Highlights
12
Individuality and Teamwork
Creating a Dynamic Workplace
A Small, Fun Printer Conceived by Women
Participation of Women in the Workplace
I have been serving as the leader of Project W (Women) for
whose members were in the same age group at target us-
a small, fun printer called the PF-70. Released in Japan in
ers, carried more weight with the engineers.
Epson actively engages women in the product design process to ensure that different perspectives
October 2014, the PF-70 mainly targeted females between
are reflected in products.
the ages of 10 and 40. You
Initially I did not know how to lead the team to generate use-
can use the printer to quick-
ful ideas or create proposals, but as a group we worked it
ly and easily print a variety
out. Ultimately, the ideas we proposed were used in product
of stickers for everyday use.
development, which gave us a huge confidence boost. This confidence and approach to challenges are something we
At the product development
want to remember for the future.
stage, one man on the PF-
Home Projectors That Appeal to Women
70 project suggested that
Recently, we created a new Project W with one new member
we needed to get young
to carry on this work and gather ideas from women that will
women involved in the idea
help shape future printers.
I am serving as the leader of the Women’s Working Group
that even idle chitchat
generation and evaluation
(WWG) for Home Projectors. The majority of home projec-
generated insights.
process if we were to meet the requirements of target-
tors are purchased by men. To entice more women to buy Mana Kamekawa
home projectors, we needed to take a different approach.
After exhaustive dis-
We needed more input from women. So, in October 2014,
cussions about prod-
we launched the WWG to collect information and ideas from
uct usability, size, and
made up of seven young
women that would help shape future products.
operability, the WWG
women from our printer de-
Project W leader Imaging Products Design Department
developed a broad As the leader of the WWG, I wanted a diverse group of 10
proposal for projec-
women that would represent different ages, family composi-
tors that would appeal
tions, and backgrounds.
to women. The next
ed users. This led to the creation of Project W, a group
sign and planning organizations. Tomomi Misawa Women’s Working Group Leader VP Planning & Design Department
step is to produce a Since this was a team effort, everyone was encouraged to
full-size mock-up and
contribute ideas and to tap into sensibilities as women.
pitch our proposal to the relevant departments. This WWG was made up exclusively of female employees in Japan, but
The WWG generated a large number of ideas in a fun and
we want to roll it out globally to engage women at our over-
free-thinking atmosphere. The participants found it easy to
seas operations to help develop projectors by women, for
participate and speak up in the WWG, whereas they may
women.
Most of our printer design engineers are men, and product specifications tend to reflect a male perspective. The PF-70 was different because the ideas proposed by Project W,
Offering more fun ways to print The PF-70 is a small, fun printer that is great not only for photos and documents but also for stickers, labels, photobooks and more.
have been more hesitant if men were present. We also found Easy and fun to use Easily print photos and create original stickers and labels for decorative and other uses.
Name stickers
13
Epson Group Sustainability Report 2015 Highlights
Address stickers
Multipurpose stickers
Decorative stickers
Epson Group Sustainability Report 2015 Highlights
14
Trusted Throughout the World
Socially Responsible Procurement
Efforts by ESL
Eliminating Conflict Minerals from the Supply Chain
Socially responsible procurement is a critical issue for Epson
suppliers understood the reporting requirements, so ESL
Engineering (Shenzhen) Ltd. (ESL), which manufactures and
engaged these suppliers to talk about the importance of ef-
Epson believes in building good supply chain partnerships based on mutual trust. This means working
ships Epson products around the globe. We want our cus-
forts to eliminate conflict minerals and to explain the survey
tomers to be happy with our products and to use them in
and reporting process.
with suppliers to ensure that we conduct our business activities in line with social ethics and norms.
good conscience, confident not only that our products meet
As part of this effort, we are working to address the problem of conflict minerals in the supply chain.
high standards for quality, reliability, value, and environmental
Ultimately, ESL received completed surveys from 135 suppli-
performance, but also that we as a company have remained
ers on more than 13,000 components. We continue to work
socially accountable and have not procured components or
with the one supplier that did not comply with our request to
materials produced using child labor or forced labor.
confirm its conflict-free status.
Eliminating Conflict Minerals Armed groups in the Democratic Republic of the Congo and
● Countries where conflict minerals are mined
adjoining countries have been using forced labor to mine minerals. Proceeds from the sale of these minerals are being
ESL conducted conflict min-
We realize that the cooperation of our suppliers is essential
eral surveys in the 2013 fis-
to keep conflict minerals out of Epson products, and we will
cal year. We did so again in
continue to seek their understanding and cooperation to fa-
fiscal 2014, surveying sup-
cilitate socially responsible procurement.
pliers from December 2014 Republic of the Sudan
used to fund further armed conflict. To avoid contributing to
through March 2015. Not all
Central African Republic
these groups either directly or indirectly, companies need to
Republic of Uganda
procure tantalum, tin, tungsten, and gold from organizations not related with the armed groups.
Republic of the Congo
Democratic Republic of the Congo
Republic of Angola
Republic of Rwanda Republic of Burundi
Yang Li Fang Division manager TP Center Vendor Management Division (former general manager of TP Center Production Control Department)
United Republic of Tanzania
Republic of Zambia
Explaining the conflict mineral survey to suppliers
Epson’s Approach to Responsible Sourcing
Epson Group Conflict Minerals Survey Results
Epson began addressing the problem of conflict minerals
Epson conducts supply chain surveys to identify smelters of
The answers to many of the completed surveys from com-
in electronic devices in 2005, before the establishment of
conflict minerals in products that we procure. Minerals ob-
ponents manufacturers indicated the difficulty of tracing
industry guidelines. Verifying that the components and raw
tained from smelters certified by the Conflict-Free Smelter
minerals back to a particular smelter. Some suppliers re-
However, we will continue to work with our suppliers to pro-
materials we procure do not contain conflict minerals is a
Program1 are judged to be conflict-free.
ported the names of smelters that have not been certified as
mote socially responsible procurement of conflict-free prod-
complex challenge that requires tracing the minerals’ origins
1
conflict-free under the CFS Program. We were thus unable
ucts.
back through the supply chain.
he program created by the EICC/GeSI uses third parties to identify smelters T that source only conflict-free minerals.
● Supply Chain Overview and Epson’s Survey Supply chain
What is identified
15
Epson
Components manufacturers
Determination of whether Determination of whether products contain subject minerals are conflict-free minerals
Epson Group Sustainability Report 2015 Highlights
conflict-free (as of March 31, 2015).
to conclusively determine that components we procure are ● FY2014 Epson Group Survey
Metal traders
Smelters and refiners
Identification of smelters/refiners and mines
(current as of March 31, 2015)
Mining companies
Companies sent surveys
Companies completing surveys
Companies not completing surveys
Completion rate
No. of components covered by surveys
942
905
37
96%
50,858
Epson Group Sustainability Report 2015 Highlights
16
Prospering with the Community
Corporate Citizenship in the Community Epson strives to be a good global corporate citizen. We contribute to the communities in which
Taiwan Energy Patrol Team Expands to New Regions In 2010, borrowing know-how from the Shinshu Energy Pa-
covering south Taiwan
trol Team in Japan, we at Epson Taiwan Technology & Trad-
in 2013 and central Tai-
ing Ltd. (ETT), joined by other local companies and groups,
wan in 2014. To assist
launched the Taiwan Energy Patrol Team. The team visits
the various teams, we
we operate not only monetarily, through donations and sponsorships, but also physically, through
local businesses to provide free assessments of their en-
have held trainings and
volunteer efforts and the use of Epson technology.
ergy use and recommend improvements. There was a limit
shared information with
to what ETT could do by itself, so we are grateful for the
other participants. As of
help and cooperation of other companies and groups who
March 2015, we have
helped to make this program a success.
increased the number
Coco Wang General Manager BR & Corporate Affairs Center
of member companies
Global Initiatives
In the second year of the program, we, along with the Tai-
to 34 and have conducted 112 assessments.
wan Business Council for Sustainable Development (BCSD),
Beautification project (Japan)
Recycling event (USA)
Every year since 2007, Epson employees at the Shiojiri Plant
Every April for the last 14 years, Epson Portland Inc. (EPI)
have helped to beautify the local community by cutting
employees have held a recycling
weeds and picking up trash
event. In 2015, they joined forces
along a river that runs by the
with nearby businesses to collect un-
plant. As of August 2014, a
needed electronics, batteries, used
total of 3,168 volunteers had
paper, and other items.
formed the Taiwan Energy-Saving Patrol Association. This
With even greater corporate involvement and government
has prompted even more corporate participation and al-
participation, we hope to make this program sustainable.
lowed us to expand activities to new regions, with teams
2
1
The history of Epson energy patrols The catalyst for these patrols was a pamphlet that Seiko Epson Head Office
participated in this project.
distributed to local enterprises containing energy-saving tips. Reaction to the pamphlet was positive, and Epson be-
3
Blood drive (Philippines) the Philippine Red Cross and EPPI employees, has par-
In 2010, Epson (China) Co., Ltd. (ECC) entered an agree-
since 2000. This year (FY2014) 1,241
ment with a government agency and launched the Epson
employees donated blood.
ticipated in Red Cross blood drives
use. Epson responded by forming the Suwa Regional Energy Patrol Team in
Epson Precision (Philippines), Inc. (EPPI), in partnership with
Carbon Trading Model Forest Project (China)
gan receiving requests to assess energy
2000. In 2005 the name was changed to the Shinshu Energy Patrol Team. (1) Team member providing assessment feedback (2) (3) Teams on patrol
Carbon Trading Model Forest Project. ECC helps to maintain a 37,000 m2 area in Beijing’s Bai Wang Shan Forest Park,
VOICE
measure CO2 absorption, and educate the community about
A message from our partner
CO2 reduction. As of March 2015, a total of 360 employees and members of their families have participated in the project.
The patrol team helped us cut CO2 emissions
190 Days of Social Commitment (Germany)
The BCSD’s mission is to realize the sustainable development of businesses through environmen-
All employees of Epson Deutschland GmbH (EDG) take one
tal preservation and efficient resource management. Most government-run energy conservation
day off a year to serve the community in some capacity. This
programs focus on large corporations, so smaller companies and organizations have few op-
program, which began in 2008, was named “190 Days of
portunities to get help in increasing energy efficiency. This situation prompted ETT to propose the
Social Commitment” because EDG, at the time, had 190 employees. As of March 2015, EDG employees have provided more than 1,100 days of
Tony Mo Taiwan Business Council for Sustainable Development (BCSD)
Taiwan Energy Patrol Program, which was launched with the help of other like-minded organizations. The membership has been growing by the year. We want to urge more companies to get involved and help reduce CO2 emissions.
service. 17
Epson Group Sustainability Report 2015 Highlights
Epson Group Sustainability Report 2015 Highlights
18
To Our Stakeholders
In June 2015, the Epson brand marked its 40th anniversary. We at Epson would like to take this opportunity to extend our sincere thanks and appreciation to the countless loyal stakeholders whose loyalty and support have made this possible. Epson has always sought to provide unique products and services that bring surprise and delight to people around the world by leveraging the technologies that have long been hallmarks: technologies that maximize energy savings, compactness, and precision. Compact, energy-saving, and high-precision technologies are the source of Epson's technological strength. At the same time, these technologies also significantly help mitigate environmental impacts by, for example, reducing CO2 emissions and conserving resources. As stated in our Management Philosophy, we are committed to environmental conservation, and we believe that the use of products and services that feature our compact, energy-saving, and high-precision technologies can help to keep greenhouse gas emissions in check. As a member of society, Epson believes that corporate conduct is an essential element in fulfilling our corporate social responsibility (CSR). It is this belief that guides our initiatives to face and resolve social issues, whether they relate to corporate ethics, compliance, respect for human rights, environmental issues, or respect for employee diversity. A multinational corporation that conducts business around the globe, Epson declared its support for the United Nations Global Compact in 2004, and we continue to drive internal initiatives aligned with the ten principles of the GC relating to human rights, labor, environment, and anti-corruption. As a manufacturer, Epson aims to continue to be an indispensable company for its customers and society by delivering products and services whose value exceeds expectations. Through nonstop innovation and the delivery of peerless, unique value to more people in a wider range of markets, we intend to remain an indispensable company while at the same time fulfilling our social responsibility.
Delivering Peerless, Unique Value Minoru Usui President Seiko Epson Corporation
July 2015
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Epson Group Sustainability Report 2015 Highlights
Epson Group Sustainability Report 2015 Highlights
20
Business Vision
The SE15 Updated Mid-Range Business Plan
Epson's vision for targeted business areas Penetrate every corner of the printing market with Micro Piezo inkjet technology.
The SE15 Updated Mid-Range Business Plan, established in March 2013, is a three-year plan that
Aiming to fill every printing need, we are revolutionizing printing in the office and improving work processes in the professional printing and textile industries by fully tapping into the power of PrecisionCore to provide amazing image quality at blazing speeds.
runs from FY2013 through FY2015.The plan reiterates the strategic direction of the SE15 Long-Range Corporate Vision while emphasizing profit over revenue growth. Under the next three-year plan, which starts in 2016, we aim to transform Epson into a company
Printing
that posts strong growth by creating and providing new information solutions and equipment for Change the way information is communicated using microdisplay technology.
businesses and professionals, as well as consumers. We are laying the foundation for achieving
We are changing the way information is communicated with a broad lineup of projectors for the office, home, and classroom. We are developing professional applications for Moverio eyewear and are transforming the way work is done.
this under the current plan by readjusting our product mixes and adopting new business models in existing businesses while aggressively developing markets in new areas. Visual communications Use precision sensing to help improve personal health and safety.
We are contributing to health, safety, and security with products that combine sensing and watch technologies to offer advice for improving health and sports performance and with sensing systems that monitor structural health.
The Updated SE15 Mid-Range Business Plan Direction under the SE15 Long-Range Corporate Vision
Basic Policy
Quality of life
Manage businesses so that they create steady income, and avoid the single-minded pursuit of net sales growth.
Innovate manufacturing by using robotics technology to further automate production.
We are innovating manufacturing by automating production in the electronics, auto, and other industries. By developing robots that virtually see, feel, think, and act, we are also automating tasks that have defied automation in the past.
Initiatives for achieving the SE15 Long-Range Corporate Vision
・Strengthen the financial structure with an emphasis on generating cash.
・Change the profit structure with an eye toward fresh growth.
Manufacturing
Corporate Vision FY18
Next mid-range business plan
A company that once again posts strong growth by creating and providing new information tools and equipment for businesses and professionals, as well as consumers. FY16
FY15
Updated Mid-Range Business Plan
Develop firm foundations
Transform existing business domains Develop new business domains
FY13
Epson today Primarily a consumer imaging product provider
Looking Looking Back back on on Fiscal fiscal 2014 The source of Epson’s competitive strengths is provided by core technologies (Micro Piezo inkjet printhead, microdisplays, sensing, and robotics) that help reduce the power usage of products, shrink their dimensions, and improve precision. We will actively expand our business domains by improving these core technologies and offering products and services that exceed customer expectations in printing, visual communications, quality of life improvement, and manufacturing innovation.
Epson Group Sustainability Report 2015 Highlights
Revenue
Working updated plan, Epson made signifiWorkingininline linewith withthethe updated plan, Epson made cant technological advances, launched new products, and
significant technological advances, launched new
introduced new business models. On the financial front,
(billions of yen)
products, and introduced new business models.
1,200
On the financial weaker yen and actions revenue and profitfront, while the actively investing in future growth.
1,000
the weaker yen and actions taken enabled us to grow both
taken enabled us to grow both revenue and profit
800
We willactively fuel strong growth by focusing management rewhile investing in future growth.
600
sources on the four targeted areas where we can leverage
400
our core technologies, spreading the scope of our opera-
200
We will fuel strong growth by focusing
management resources on the four targeted areas
tions, and building strong new businesses.
where we can leverage our core technologies, spreading the scope of our operations, and building strong new future businesses.
21
Revenue & business profit trends
Revenue
Business profit
Up
Up
7.7% Y/Y
1,008.4 849.6 90.0
12.4% Y/Y 1,086.3
Business profit
(billions of yen) 120 100
101.2
80 60 40 20
36.5
0
0
FY2012
FY2013
FY2014
* Revenue conforms to International Financial Reporting Standards. Business profit, which is calculated by deducting the cost of sales and SGA expenses from revenue, is essentially the same concept as operating income under J-GAAP.
Epson Group Sustainability Report 2015 Highlights
22
CSR Management
Epson Group Overview
Epson’s CSR
Company Profile (As of March 31, 2015)
At Epson, our Management Philosophy is key to how we run our business. Our mission is to build
Name
Seiko Epson Corporation
Capital
stakeholder trust as we grow and prosper with communities and to help create a better world. We
Founded
May 18, 1942
Employees Consolidated: 69,878
seek to do this through business activities that comply with the law, adhere to the highest standards
Head Office
3-3-5 Owa, Suwa-shi, Nagano-ken, Japan 392-8502
of business ethics, and create value that exceeds the expectations of our customers.
¥53,204 million Parent Company: 11,810
94 (including Seiko Epson Corp.) Group (21 in Japan and 73 overseas) Companies
Seiko Epson Corporation Head Office
FY2014 Performance by Business Segment
CSR and Principles of Corporate Behavior By creating customer value as guided by our Management
Printing Solutions Principles of Corporate Behavior
Philosophy, we aim to win the trust of every stakeholder now
1 Acting ethically, building trust ●
and in the future and to keep contributing to the develop-
We will abide by the law and conduct all our business with high ethical standards.
ment of society. We consider any action designed to realize the Management Philosophy to be a CSR activity. To make sure this happens, we established our Principles of Corporate Behavior in 2005. This is a Group-wide statement on
2 Protecting people, assets, and information ●
We will maintain systems to provide the security of people and all corporate assets, and will be prudent in handling information.
¥730.8 billion
Segment Profit
¥111.4 billion
total % of revenue
67.5%
Home and office-use inkjet printers
3 Pursuing customer satisfaction ●
total % of revenue
Revenue
¥177.1 billion
stakeholders.
Segment Profit
¥19.4 billion
In 2006, we revised the Epson Code of Conduct, based on
4 Creating a safe, healthy, and fair workplace ●
Wearable & Industrial Products
respect to our customers, shareholders, investors, and other
the Principles of Corporate Behavior and spelling out how employees are to conduct themselves. We frequently update the Epson Code of Conduct (most recently in April 2015) in response to social, legal, regulatory, and other changes.
NGOs/NPOs
Local communities
Employees
5 Fostering diverse values and teamwork ●
We will draw strength from our diversity, creating a positive synergy between the individual and the company. 6 Co-creating with our business partners ●
Conduct to Realize the Management Philosophy
Segment Profit
¥10.3 billion
Segment Profit
We will actively contribute to the communities in which we operate, as wel as the international community, facilitating mutually beneficial relationships.
Preserving the natural environment
Prospering with the community
Initiating honest dialogue with our stakeholders
Co-creating with our business partners
Fostering diverse values and teamwork
Creating a safe, healthy and fair workplace
Pursuing customer satisfaction
Protecting people, assets, and information
Acting ethically, building trust
We will integrate environmental considerations into our corporate activities and actively strive to meet high conservation standards in fulfilling our responsibilities as a good corporate citizen.
Epson joined the UN Global Compact in 2004. We pledged
Management Philosophy
to uphold the ten principles of the GC in human rights, labor, environment, and anti-corruption.
16.0%
Robot systems
Other
¥3.4 billion -¥39.6 billion
Revenue Segment Profit
¥1.3 billion -¥0.3 billion
total % of revenue
0.1%
Microdevices, Other
1. Segment sales: revenue, including from inter-segment transactions. 2. Intra-segment sales: revenue, including from sales between businesses in the same segment. 3. Consolidated revenue: external revenue from which inter-segment sales have been canceled out. 4. Epson has been disclosing its financial results based on IFRS since the 2014 fiscal year. 5. Financial results have been recalculated based on new reporting segments introduced at the start of the 2015 fiscal year.
Consolidated Financial Results Trends Revenue
Business profit
(billions of yen) 1,200
1,000 800
Participation in the United Nations Global Compact
total % of revenue
Wearable products
7 Initiating honest dialogue with our stakeholders ●
Principles of Corporate Behavior
Epson Group Sustainability Report 2015 Highlights
¥173.4 billion
Corporate & Adjustments
9 Preserving the natural environment ●
Suppliers
Revenue
Revenue
16.4%
Projectors, smart eyewear, etc.
We will expect our business partners to live up to the same ethical standards we observe and aim to work together to our mutual benefit while respecting applicable laws and our mutually independent business strategies and stances.
8 Prospering with the community ●
Shareholders/investors
Government
We will respect fundamental human rights and facilitate a fair, safe, healthy and pleasant work environment.
We will maintain open lines of communication with our stakeholders, thoughtfully considering their views and suggestions.
Customers Global environment
Commercial and industrial inkjet printers
Visual Communications
We will keep the customer in mind at all times and make the quality of our products and services our highest priority. From the quality assurance efforts of each employee to the quality of our company as a whole, we will devote ourselves to creating products and services that please our customers and earn their trust.
how we are to behave and what values we are to uphold in
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Revenue
1,008.4
Profit from operating activities
(billions of yen) 120
1,086.3
(billions of yen) 150
100
849.6
90.0
101.2
80
100
600
60
75
400
40
200
20
0
36.5
2013
2014
(FY)
79.5
50 25
0
2012
131.3
125
29.2
0
2012
2013
2014
(FY)
2012
2013
2014
(FY)
1. Effective from the start of the 2014 fiscal year, Epson has prepared its consolidated financial statements in compliance with International Financial Reporting Standards (IFRS). For reference purposes, the financial figures for the 2012 and 2013 fiscal years have also been recalculated in conformance with IFRS. 2. Business profit, which is calculated by deducting the cost of sales and SGA expenses from revenue, is essentially the same concept as operating income under J-GAAP. Although it is not a defined indicator in the consolidated statement of comprehensive income, Epson discloses business profit because we believe this information is useful for evaluating Epson's financial performance.
Epson Group Sustainability Report 2015 Highlights
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Epson Group Overview
Global Network
Environmental & Social Performance Indicators
Epson is a multinational company headquartered in Japan and with four regional head offices around the world. Epson Europe B.V. Est. 1990
Epson (China) Co., Ltd. Est. 1998
Environmental Indicators
Epson America, Inc. Est. 1975
CO2 emissions
PRTR1 emissions
578K t-CO
6.5 t
2
Reduced by
39%
Epson Singapore Pte. Ltd. Est. 1982
Water use
30,270 t
7,577K m
Reduced by
56%
Vs. FY 2006
2
Japan
25.3%
Percentage of revenue by region (April 2014 to March 2015)
Europe
21.3%
25.4%
Percentage of employees by region
66.2%
(as of March 31, 2015)
Americas
227K t-CO
Vs. FY 2006
+3% YoY
Consolidated revenue: ¥
1,086.3 billion
2.4K t
2
+45% YoY 3 3
-7% YoY
The increase in CO2 emissions in FY2014 resulting from a need to transport freight by air instead of ocean containers to avoid long delays caused by port bottlenecks in the Philippines and U.S. West Coast port labor issues.
The following targets are compared to FY2006 results. Targets ●
CO2 emissions
4.2%
●
PRTR emissions FY06 level (14.4 t)
Europe
●
VOC emissions
●
Waste emissions FY06 level (42,425 t)
Americas
3.0%
28.0%
Used cartridge collection
3
Pollutant Release and Transfer Register database Volatile Organic Compounds
26.6%
Asia & Oceania
+63% YoY
Global CO2 emissions from transport
Japan
Asia & Oceania
14.3K t
Vs. FY 2006
-10% YoY
Reduced by
+16% YoY 1
58%
Vs. FY 2006
-36% YoY
Waste emissions
29%
Reduced by
55%
Vs. FY 2006
Used product collection
163 t
Reduced by
+2% YoY Seiko Epson Corp. Head Office Est. 1942
VOC2 emissions
Employees:
69,878
34% reduction (629K t-CO2)
Social Performance Indicator
FY06 level (387 t)
●
Water use
Indicates the target was achieved.
Corporate citizenship expressed as a monetary value
¥
370
million
50% reduction (8,660K m3)
CSR History
1980s Established the Mizube Office (now Epson Mizube Corp.) (to promote employment of persons with disabilities)
1990
Seiko Epson Corp. introduced a caregiver leave program
1991
Seiko Epson Corp. introduced a childcare leave program
1983
Eliminated the gender pay gap
1992
Became CFC-free
1988
Issued CFC-free declaration
1994
Established a Basic Procurement Policy
1989
Founded the Epson Information Science Vocational School (to promote the development of local IT talent)
1994
Established an Environmental Policy
1996
Established a Human Resource Development Policy
1989
Established the Epson Management Philosophy
1999
Published an environmental report (later expanded and renamed the “Sustainability Report”)
1983
25
1990s
2000 to 2015 Established a Basic NESP Policy (an original program based on the three pillars of safety, health, fire and disaster prevention)
2005
Established a Human Rights and Labor Standards Policy
2005
Established Principles of Corporate Behavior
Established an Epson Code of Conduct
2007
Established a Basic Information Security Policy
2004
Established a Corporate Citizenship Policy
2007
Acquired the “Kurumin” next-generation accreditation mark
2004
Joined the UN Global Compact
2008
Established Environmental Vision 2050
2004
Established the Personal Data Protection Policy
2012
Hired outsiders to serve on the board of directors
2005
Formed the Shinshu Energy Patrol Team
2001
2001
1992
1999
2001
2005
2007
Received a Stratospheric Ozone Protection Award from the U.S. Environmental Protection Agency for CFC-elimination
Issued an environmental report to provide information to the public on the results of our environmental programs
Published the Epson Code of Conduct and a booklet to explain the company’s expectations regarding conduct
Formed a Shinshu Energy Patrol Team with other companies to provide free consulting for conserving energy
Acquired the “Kurumin” next-generation accreditation mark as a company that supports child-rearing
Epson Group Sustainability Report 2015 Highlights
Epson Group Sustainability Report 2015 Highlights
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