Canon is a Japanese multinational corporation (MNC) which mainly specialises in cameras, medical equipment and printers. It accounted for 46.5% of the global digital camera market last year.
“Being a responsible and sustainable business is in our DNA” -
Canon presents itself as a company which wholly aligns with environmental, social and governance (ESG) laws, with an aim of becoming circular to cut down on waste. Yet according to Impaakt, Canon has a poor rating of -1.24, its weakest Sustainable Development Goal (SDG) being ‘Responsible Consumption and Production’ (12). This is mostly related to the company’s e-waste and water waste, for example in 2021, Canon withdrew 8.6 million m^3 of water, with a recycling rate of 16.8%. However, the company has recently planned to improve its water-usage efficiency as part of its circular economy goal. It uses the AQUEDUCT water-risk mapping tool from the World Resources Institute to manage water intake in different regions.
Recently, Canon was called out by investors and the Japanese government for failing to present gender equality (SDG 5) within the company. It has just recently appointed its first female director after facing this scrutiny, while only 5% of executives are women. This lack of diversity was recognised by significant entities including Nomura Asset Management and Prime Minister Fumio Kishida, who aims for women to “make up at least 30% of executive positions by 2030.” Relative to other Japanese companies, Canon does not stand out for its poor gender diversity, as 40% of all companies listed on the Tokyo Stock Exchange have no female senior executives, according to Nikkei Asia. Its competitors such as Sony and Nikon have slightly better figures but have still had their fair share of controversies related to SDG 5. For example, Sony was accused of systemic sexism and disappointing gender pay gaps last year, while Nikon had less than 40% of female employees overall in 2022. But this doesn’t mean Canon should be freed of its responsibility to promote gender equality in the workplace, while the industry as a whole needs to improve its culture as more women enter STEM careers.
Canon was also criticized in an article from Digital Camera World for dropping its climate target from 50% reduction in CO2 levels to 30% before 2030, after failing to stay on track for its original goal. The article highlights the growing need for big tech MNCs like Canon and its competitors, to make sizable efforts towards climate action (SDG 13). Canon has much more to achieve with regards to its climate commitments. At this crucial stage, companies should be increasing efforts rather than reducing goals.
On a more positive note, Canon is working with Eskill Trading, its Zimbabwean distribution partner, to “ensure local availability of authentic products, cartridges, and service parts.” Canon is creating positive impact via efficiency and growth in Zimbabwe’s economy, with various sectors requiring Canon’s unique printers. It is also helping to reduce e-waste and paper waste in the region, an issue which tends to be overlooked.
Canon has also designed a highly accurate method to sort through black plastic pieces, since the conventional method was unable to identify them due to their inability to reflect light. With the company’s latest technology, they can reuse this plastic source instead of turning it into a combustible fuel, hence maximising plastic recycling for a circular production process.
Overall, Canon can be commended for its efforts in promoting a circular economy and helping regions around the world be more efficient and less wasteful. Yet this market leader has much more to prove to its stakeholders in relation to other pressing SDGs. It should not have to wait to be called out on its weaknesses before initiating a positive impact.
Author: Safeena Khan
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