Brand CasesCanon Expands Compliance Verifications to Derivative Supply Chains

Publication Date:2018-02-19

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 on our suppliers, and in our dealings with suppliers, we assess 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 Derivative Supply Chains

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 us realize that we needed to deal with derivative contractors who carry out outsourced operations such as wastewater processing, in addition to direct supply chains that deliver parts to Canon. We decided to expand the scope of our risk management beyond our suppliers to include contractors hired by suppliers. We took this decision as a measure to prevent environmental pollution in our supply chains.

We believe 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.

Our Approach to Tougher Risk Management of High-Risk Processes in China