Brand CasesCanon Expands Compliance Verification to Upstream Supply Chain

Publication Date:2021-04-12

Canon’s Green Procurement Initiative

Canon’s Green Procurement Standards, first established in 1997, are based on the idea that you are not qualified to manufacture if you cannot guarantee your environmental performance. The Standards set out environmental requirements for Canon’s suppliers. In Canon’s dealings with suppliers, Canon assesses suppliers’ compliance with the Standards as a mandatory condition bound by contract.

The Standard’s specific requirements consist of the four frameworks below. Of these, the Business Activity Performance framework stipulates performance requirements including compliance with laws and regulations related to the environment.

Expansion of Risk Management to Raw Materials and Derivatives Supply Chain

Canon had been assessing environmental legal compliance as described above, until last year when a secondary Canon supplier was forced to relocate suddenly. The hasty relocation was precipitated by the supplier’s wastewater-processing contractor that shut down its operations due to multiple violations of wastewater pollution standards. 

This event made Canon realize that it needed to deal with raw materials and derivatives contractors who carry out outsourced operations such as wastewater processing, in addition to direct supply chain suppliers that deliver parts to Canon. Canon decided to expand the scope of its risk management beyond its suppliers to include contractors hired by suppliers. The company took this decision as a measure to prevent environmental pollution in its supply chain. 

Canon believes that stronger management of contractors that pose risks, in addition to direct suppliers, such as part manufacturers, will become even more important, both in terms of environmental conservation and business continuity.

Canon’s Approach to Tougher Risk Management of High-Risk Processes in China