UNIVERSITY ……………………………………

ASSIGNMENT

SEMESTER …………

SUBJECT CODE : …….

SUBJECT TITLE : GREEN ACCOUNTING AND REPORTING

ASSIGNMENT TITLE : CANON GLOBAL

STUDENT’S NAME : …………..

STUDENT ID : ……….

PROGRAM : BACHELOR OF ACCOUNTANCY

LECTURER’S NAME : …………..

I hereby declare that this assignment is my original work and any other literature
referred to has been referenced accordingly. I also agree that if any of my work is
being done through plagiarism or intentional copying, ………………. reserves the
absolute right to take the necessary academic disciplinary action against me.
DATE : …………..
SIGNATURE :
Table of Contents

1. Introduction ........................................................................................................ 1

2. Green and Blue Infrastructure and Rural Resources ..................................... 2

3. Environment Cost .............................................................................................. 5

4. Economics Goals and Environmental Cost..................................................... 6

5. Conclusion ......................................................................................................... 7

6. References ......................................................................................................... 8

7. Attachment ......................................................................................................... 9
 1. Introduction

Canon Inc. and subsidiaries is one of the world’s leading manufacturers in such

fields as office products, imaging system products, medical system products and

industry and other products. Canon had been originally named Seikikōgaku

kenkyūsho (Jpn. 精機光学研究所, Precision Optical Industry Co. Ltd.) and founded by

Takeshi Mitarai, Goro Yoshida, Saburo Uchida and Takeo Maeda in 1937, in Japan.

Canon main nature of business is industry and Canon operates its business in four

segments. The segments are Office Business Unit, the Imaging System Business Unit,

the Medical System Business Unit, and the Industry and Others Business Unit, which

are based on the organizational structure and information reviewed by Canon’s

management to evaluate results and allocate resources. Based on the realignment of

Canon’s internal reporting and management structure, from the beginning of the third

quarter of 2018, Canon has reclassified certain businesses from Office Business Unit

to Industry and Others Business Unit. Canon newly established Medical System

Business Unit effective at the beginning of the second quarter of 2017, and certain

businesses included in Industry and Others Business Unit have been reclassified.

Sales that are made principally under the Canon brand name, almost entirely through

sales subsidiaries. These subsidiaries1 are responsible for marketing and distribution,

and primarily sell to retail dealers in their geographic area.

Canon’s manufacturing operations are conducted primarily at 30 plants in Japan

and 18 overseas plants which are located at countries or regions such as the United

1 Canon Global Annual Report 2018, page 95

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States, Germany, France, the Netherlands, Taiwan, China, Malaysia, Thailand,

Vietnam and Philippines.

2. Green and Blue Infrastructure and Rural Resources

Green and Blue Infrastructure is a network providing the “ingredients” for solving

urban and climatic challenges by building with nature. The main components of this

approach include stormwater management, climate adaptation, less heat stress, more

biodiversity, food production, better air quality, sustainable energy production, clean

water and healthy soils, as well as the more anthropocentric functions such as

increased quality of life through recreation and providing shade and shelter in and

around towns and cities. Green infrastructure can also mean "low-carbon

infrastructure" such as renewable energy infrastructure and public transportation

systems.2

Canon has committed to a wide range of environmental initiatives around the world.

One of the environmental activities that has been launch by Canon is Canon’s Bird

Branch Project. A wild bird habitat has been created at Canon Global Headquarters in

Tokyo, where birdlife is monitored with network cameras and regular bird census are

conducted. Canon Group plants at Toride, Susono and Oita and the Kawasaki Office

have also joined the Bird Branch Project and conduct bird census at their sites in

collaboration with the Wild Bird Society of Japan. Similarly, overseas sites in France,

the Netherlands and elsewhere are collaborating in activities with local partners.

Meanwhile, at the Canon Medical Systems Nasu Headquarters, which joined the Bird

Branch Project in 2018, we are working together with employees and members of the

local community on activities to protect biodiversity around the concept of building a

2 Definition by Hans-Peter Egler

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company that coexists with nature. Canon Canada celebrated the fifth anniversary of

Branch Out in 2018. The program gives employees at all levels the opportunity to help

create green spaces and sustainable environments in their local communities. Branch

Out began as a tree-planting program in 2014, has evolved to include a wide range of

sustainability activities, including cleaning up parks, rivers and shorelines, removing

invasive plant species, restoring habitats and constructing turtle shelters. All

employees from Canon Canada’s 13 offices, from Toronto to Quebec City and

Vancouver, are encouraged to participate. Canon Hi-Tech (Thailand) worked on a

project to protect the marine ecosystem by restoring coastal seaweed beds in the

Sattahip District of Chonburi Province with the collaboration of the Marine and Coastal

Resources Research and Development Centre and local communities.

Canon also helping to realize a low-carbon society by reducing CO2 emissions

through out the entire product lifecycle from the used of raw materials, operational site

activities, and distribution to product use, disposal, and recycling. Our energy-saving

technologies, such as induction heating and on-demand fixing for multifunction

devices and laser printers, help reduce energy consumption in the office around the

world.

On the other hand, to ensure the efficient use of limited resources, Canon has

implemented sophisticated product recycling programs that involved the collection and

recycling system in which Canon collect used toner cartridges, recycle the plastic

obtained from them, and create materials for new toner cartridges.

Canon also try to reduce hazardous substances and preventing pollution to lessen

environmental burden. To ensure the control of chemical substances in their product,

Canon requires their supplier to comply with the Green Procurement Standards and

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built a Group-wide environmental assurance system and established in-house

standards that are in line with the most stringent regulations in the world.

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 3. Environment Cost

Environmental costs are incurred because of poor quality controls. Therefore, they

advocate the use of a periodical environmental cost report that is produced in the

format of a cost of quality report, with each category of cost being expressed as a

percentage of sales revenues or operating costs so that comparisons can be made

between different periods and/or organisations. The category of the environment cost

are environmental prevention costs which are the costs of activities undertaken to

prevent the production of waste. Next is environmental detection costs. It is the costs

incurred to ensure that the organisation complies with regulations and voluntary

standards. Third category is environmental internal failure costs which are costs

incurred from performing activities that have produced contaminants and waste that

have not been discharged into the environment. The last category are environmental

external failure costs which are costs incurred on activities performed after discharging

waste into the environment.

According to Canon policy3, liabilities for environmental remediation and other

environmental costs are accrued when environmental assessments or remedial efforts

are probable and the costs can be reasonably estimated. Such liabilities are adjusted

as further information develops or circumstances change.

Environmental Conservation cost for Canon Global are 19.61 billion yen. But

Canon also get some economic benefit that are associated with Environmental

Conservation Activities such as cost reduction in conserving energy or revenue gain

from recycling. The Environmental Conservation Benefit that Canon gain are

amounted 5.78 billion yen.4

3 Canon Global Annual Report 2018, page 56

4 Canon Global Sustainability Report 2019, page 91

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 4. Economics Goals and Environmental Cost

Economic goals are a central concern for communities and governments.

Economic goals are likely to be found in policies and plans aimed at driving economic

and jobs growth, economic prosperity and industry diversity and competitiveness.

Canon general economic goals are aims to aggressively expand into new business

fields in the future5. In 2001 until 2005, Canon aim to become No. 1 in all major

business areas by focusing on strengthening product competitiveness along with the

changing times stepping up efforts to digitalize its products.6 In 2011 until 2015, Canon

change its economic goals due to weakness in the global economy by aiming to further

strengthening its financial structure.7

Environmental goals can cover a very wide range of issues from the protection and

sustainable use of natural assets through to increasing the resilience of infrastructure

to natural disasters such as floods and fires. Environmental goals can also focus on

intergenerational equity such as aiming to secure the wellbeing of future generations

by protecting the quality and diversity of the natural and cultural environment. High-

level environmental goals may appear in policies and strategies covering areas such

as climate change, energy and water, biodiversity and land use planning.

Canon environmental goals are “achieving an average improvement of 3% per year

in the lifecycle CO2 emissions improvement index per product”. To achieve this goal,

Canon has been working for these improvement activities from 2008 to 2018, achieved

an average annual improvement of 5%. The overall improvement for 2018 was 37.7%,

compared to 2008.

5 Canon Global Fundamental Policy, Canon Global Annual Report 2018, page 21
6 Canon Global Corporate plan 1996 Canon Global Annual Report 2018, page 4
7 Canon Global Corporate plan 1996 Canon Global Annual Report 2018, page 4

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 5. Conclusion

As a conclusion, Canon clearly cared for the environment and done their best to

help the environment while at the same time not jeopardized their business. Canon

takes account of environmental impacts at each stage of the product lifecycle and

works to reduce them. Based on Canon corporate philosophy of kyosei which are to

conveys Canon dedication to seeing all people, regardless of culture, customs,

language or race, harmoniously living and working together in happiness into the

future, Canon’s approach to environmental assurance centres on maximizing resource

efficiency to harmonize our environmental and economic activities. Canon strives to

resolve imbalances in the world and to contribute to global prosperity and the well-

being of mankind, which will lead to continuing growth and bring the world closer to

achieving kyosei. Canon also know that a truly global companies must foster good

relations with customers and communities, as well as with governments, regions and

the environment as part of their fulfilment of social responsibilities. Canon’s

Environmental Management System also can show how well plan Canon is towards

environment well-being.

There are not much I can recommend since Canon is a well-established

international company in the world. The only recommendation I can give to canon is

to also help reducing the problem of cutting down trees to make papers because

Canon also famous with their printer and maybe they can also sell more eco friendly

paper either recycle or a paper that used little natural resources to further help

preserves the nature.

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6. References

1. Canon. (2018/2019). The Canon Story. Retrieved from Canon Global:

https://global.canon/en/corporate/pdf/pdf/canon-story-2018-2019-e.pdf

2. Canon Global. (31 December, 2018). Canon Global. Retrieved from Canon

Global: https://global.canon/en/ir/annual/2018/canon-annual-report-2018.pdf

3. Canon Global. (May, 2019). Canon Sustainability Report 2019. Retrieved from

Canon Global: https://global.canon/en/csr/report/pdf/canon-sus-2019-e.pdf

4. Defining goals, objectives and targets. (22 June, 2018). Retrieved from atap:

https://www.atap.gov.au/framework/goals-objectives-targets/2-defining-goals-

objectives-targets.aspx

5. Environment Statistics, Studies in Methods. (1997). New York: United Nation.

6. Hans-Peter Egler. (12 February, 2016). Bridges Africa. Retrieved from ictsd:

http://www.ictsd.org/bridges-news/bridges-africa/news/sustainable-trade-

infrastructure-in-africa-a-key-element-for-growth

7. Member of the Performance Examining Team. (n.d.). Environmental

management accounting. Retrieved from ACCA:

https://www.accaglobal.com/in/en/student/exam-support-

resources/fundamentals-exams-study-resources/f5/technical-articles/Env-

MA.html

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8. Attachment

1. Environmental cost for Canon Global from Canon Global Sustainability Report

2019, page 91.

2. Environmental Benefits for Canon Global from Canon Global Sustainability

Report 2019, page 91

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3. Canon Philosophy from Canon Global main website

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