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      OPEN

      GRI Standards Implementation

      This report contains Standard Disclosures from the GRI Sustainability Reporting Standard.

      GRI 102: General Disclosures 2016

      Index Data Reason for Omission/Explanation
      1. Organizational profile
      102-1 Name of the organization  
      102-2
      Activities, brands, products, and services
       
      102-3
      Location of headquarters
       
      102-4
      Location of operations
       
      102-5
      Ownership and legal form
       
      102-6
      Markets served
       
      102-7
      Scale of the organization
       
      102-8
      Information on employees and other workers
       
      102-9
      Supply chain
       
      102-10
      Significant changes to the organization and its supply chain
      Business unit composition has changed since the 2017 report following addition of Canon Medical Systems to the Group.
      102-11
      Precautionary Principle or approach
       
      102-12
      External initiatives
       
      102-13
      Membership of associations
       
      2. Strategy
      102-14
      Statement from senior decision-maker
       
      102-15
      Key impacts, risks, and opportunities
       
      3. Ethics and integrity
      102-16
      Values, principles, standards, and norms of behavior
       
      102-17
      Mechanisms for advice and concerns about ethics
       
      4. Governance
      102-18
      Governance structure
       
      102-19
      Delegating authority
       
      102-20
      Executive-level responsibility for economic, environmental, and social topics
       
      102-21
      Consulting stakeholders on economic, environmental, and social topics
       
      102-22
      Composition of the highest governance body and its committees
       
      102-23
      Chair of the highest governance body
       
      102-24
      Nominating and selecting the highest governance body
       
      102-25
      Conflicts of interest
       
      102-26
      Role of highest governance body in setting purpose, values, and strategy
       
      102-27
      Collective knowledge of highest governance body
       
      102-28
      Evaluating the highest governance body's performance
       
      102-29
      Identifying and managing economic, environmental, and social impacts
       
      102-30
      Effectiveness of risk management processes
       
      102-31
      Review of economic, environmental, and social topics
       
      102-32
      Highest governance body's role in sustainability reporting
       
      102-33
      Communicating critical concerns
       
      102-34
      Nature and total number of critical concerns
      non-disclosure Confidentiality: disclosure of said information restricted due to confidentiality risks
      102-35
      Remuneration policies
       
      102-36
      Process for determining remuneration
       
      102-37
      Stakeholders' involvement in remuneration
       
      102-38
      Annual total compensation ratio
      non-disclosure Confidentiality: disclosure of said information restricted due to confidentiality risks
      102-39
      Percentage increase in annual total compensation ratio
      non-disclosure Confidentiality: disclosure of said information by Canon restricted at current time due to risks relating to confidentiality provisions in employment contracts
      5. Stakeholder engagement
      102-40
      List of stakeholder groups
       
      102-41
      Collective bargaining agreements
       
      102-42
      Identifying and selecting stakeholders
       
      102-43
      Approach to stakeholder engagement
       
      102-44
      Key topics and concerns raised
       
      6. Reporting practice
      102-45
      Entities included in the consolidated financial statements
       
      102-46
      Defining report content and topic Boundaries
       
      102-46
      6.1
      Defining report content and topic Boundaries
       
      102-47
      List of material topics
       
      102-48
      Restatements of information
       
      102-49
      Changes in reporting
       
      102-50
      Reporting period
       
      102-51
      Date of most recent report
       
      102-52
      Reporting cycle
       
      102-53
      Contact point for questions regarding the report
       
      102-54
      Claims of reporting in accordance with the GRI Standards
      Core  
      102-55
      GRI content index
       
      102-55
      6.3
      GRI content index
      102-56
      External assurance

      GRI 103: Management Approach

      Index Data Reason for Omission/Explanation
      103-1
      Explanation of the material topic and its Boundary
      103-2
      The management approach and its components
      103-3
      Evaluation of the management approach

      GRI 201: Economic Performance 2016

      Index Data Reason for Omission/Explanation
      2. Topic-specific disclosures    
      201-1
      Direct economic value generated and distributed
      Confidentiality: disclosure of tax amounts by country omitted for reasons of corporate confidentiality
      201-2
      Financial implications and other risks and opportunities due to climate change
       
      201-3
      Defined benefit plan obligations and other retirement plans
       
      201-4
      Financial assistance received from government
      non-disclosure Confidentiality: disclosure of said information restricted due to confidentiality risks relating to parts of content

      GRI 202: Market Presence 2016

      Index Data Reason for Omission/Explanation
      202-1
      Ratios of standard entry level wage by gender compared to local minimum wage
       
      202-2
      Proportion of senior management hired from the local community
      Providing a single definition of “local areas or communities” at the Group level is difficult because Canon's business development spans many different countries, regions and industrial sectors.

      GRI 203:Indirect EconomicImpacts 2016

      GRI 204:ProcurementPractices 2016

      Index Data Reason for Omission/Explanation
      204-1
      Proportion of spending on local suppliers
      non-disclosure Confidentiality: disclosure of said information restricted due to confidentiality risks relating to parts of content

      GRI 205:Anti-corruption 2016

      Index Data Reason for Omission/Explanation
      205-1
      Operations assessed for risks related to corruption
      Confidentiality: disclosure of said information restricted from Canon's standpoint due to the confidentiality risks relating to some content. Prevention of bribery is consistent with the values expressed in the Canon Group Code of Conduct, and education on this topic is given periodically to Group employees.
      205-2
      Communication and training about anti-corruption policies and procedures
       
      205-3
      Confirmed incidents of corruption and actions taken
      non-disclosure Confidentiality: disclosure of said information restricted due to confidentiality risks relating to parts of content

      GRI 206:Anti-competitiveBehavior 2016

      Index Data Reason for Omission/Explanation
      206-1
      Legal actions for anti-competitive behavior, anti-trust, and monopoly practices
      non-disclosure Confidentiality: disclosure of said information restricted due to confidentiality risks relating to parts of content

      GRI 301: Materials 2016

      Index Data Reason for Omission/Explanation
      301-1
      Materials used by weight or volume
       
      301-2
      Recycled input materials used
      Weights disclosed refer to (1) materials used in the manufacture of product raw materials, and (2) re-used parts and recycled materials.
      301-3
      Reclaimed products and their packaging materials
      Weights disclosed refer to (1) materials used in the manufacture of product raw materials, and (2) re-used parts and recycled materials.

      GRI 302: Energy 2016

      GRI 303:Water 2016

      Index Data Reason for Omission/Explanation
      303-1
      Water withdrawal by source
       
      303-2
      Water sources significantly affected by withdrawal of water
       
      303-3
      Water recycled and reused
       

      GRI 304:Biodiversity 2016

      Index Data Reason for Omission/Explanation
      304-1
      Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas
      Local environmental impact assessments are made prior to constructing any operating sites to ensure there are no critical issues. Canon also promotes business activities that are in line with its biodiversity policy.
      304-2
      Significant impacts of activities, products, and services on biodiversity
      Based on its biodiversity policy, Canon has instituted a range of regulations to ensure the responsible procurement of timber and wood products; efforts are made to evaluate and minimize any direct or indirect environmental impacts due to Canon products and services.

      GRI 305:Emissions 2016

      GRI 306:Effluents and Waste 2016

      Index Data Reason for Omission/Explanation
      306-1
      Water discharge by quality and destination
      There were no incident accidents in 2018.
      306-2
      Waste by type and disposal method
       
      306-3
      Significant spills
      There were no accidents causing any serious environmental impact or related compliance violations in 2018.
      306-4
      Transport of hazardous waste
      Recycling of waste materials is outsourced to material recyclers properly in accordance with local regulations.
      306-5
      Water bodies affected by water discharges and/or runoff
      Local environmental impact assessments are made prior to constructing any operating sites to ensure there are no critical issues. Sites also operate strictly within any local limits on total water consumption.

      GRI 307:EnvironmentalCompliance 2016

      Index Data Reason for Omission/Explanation
      307-1
      Non-compliance with environmental laws and regulations
      There were no accidents causing any serious environmental impact or related compliance violations in 2018. Moreover, no related fines or penalties were levied on the Canon Group.

      GRI 308:Supplier EnvironmentalAssessment 2016

      Index Data Reason for Omission/Explanation
      308-1
      New suppliers that were screened using environmental criteria
      The Canon Green Procurement Standards define the standards relating to environmental performance with which Canon expects all its suppliers to comply.
      308-2
      Negative environmental impacts in the supply chain and actions taken
      The Canon Green Procurement Standards define the standards relating to environmental performance with which Canon expects all its suppliers to comply. In the event of a supplier causing any negative environmental impact, Canon expects that firm to undertake prompt remedial action and report on improvements. The number of suppliers that are subject to assessment or remedial action is not disclosed for reasons of corporate confidentiality.

      GRI 401:Employment 2016

      Index Data Reason for Omission/Explanation
      401-1
      New employee hires and employee turnover
       
      401-2
      Benefits provided to full-time employees that are not provided to temporary or part-time employees
       
      401-3
      Parental leave
       

      GRI 402:Labor/Management Relations 2016

      Index Data Reason for Omission/Explanation
      402-1
      Minimum notice periods regarding operational changes
       

      GRI 403:OccupationalHealth and Safety 2016

      Index Data Reason for Omission/Explanation
      403-1
      Workers representation in formal joint management–worker health and safety committees
       
      403-2
      Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities
       
      403-3
      Workers with high incidence or high risk of diseases related to their occupation
       
      403-4
      Health and safety topics covered in formal agreements with trade unions
       

      GRI 404:Training and Education 2016

      Index Data Reason for Omission/Explanation
      404-1 Average hours of training per year per employee  
      404-2
      Programs for upgrading employee skills and transition assistance programs
       
      404-3
      Percentage of employees receiving regular performance and career development reviews
       

      GRI 405:Diversity and Equal Opportunity 2016

      Index Data Reason for Omission/Explanation
      405-1
      Diversity of governance bodies and employees
       
      405-2
      Ratio of basic salary and remuneration of women to men
      Across the Group, remuneration is based on skills and performance, but is not defined by gender. Remuneration also varies according to factors such as age and qualifications.

      GRI 406:Non-discrimination 2016

      Index Data Reason for Omission/Explanation
      406-1
      Incidents of discrimination and corrective actions taken
       

      GRI 407:Freedom of Association and Collective Bargaining 2016

      Index Data Reason for Omission/Explanation
      407-1
      Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk
      Confidentiality: disclosure of said information restricted from Canon's standpoint due to the confidentiality risks relating to some content. Suppliers are given and expected to comply with the Canon Supplier CSR Guidelines, and a dedicated hotline exists to provide people with related information.

      GRI 408:Child Labor 2016

      Index Data Reason for Omission/Explanation
      408-1
      Operations and suppliers at significant risk for incidents of child labor
      Confidentiality: disclosure of said information restricted from Canon's standpoint due to the confidentiality risks relating to some content. Suppliers are given and expected to comply with the Canon Supplier CSR Guidelines.

      GRI 409:Forced or Compulsory Labor 2016

      Index Data Reason for Omission/Explanation
      409-1
      Operations and suppliers at significant risk for incidents of forced or compulsory labor
      Confidentiality: disclosure of said information restricted from Canon's standpoint due to the confidentiality risks relating to some content. Suppliers are given and expected to comply with the Canon Supplier CSR Guidelines.

      GRI 410:Security Practices 2016

      Index Data Reason for Omission/Explanation
      410-1
      Security personnel trained in human rights policies or procedures
      Not applicable

      GRI 411:Rights of Indigenous Peoples 2016

      Index Data Reason for Omission/Explanation
      411-1
      Incidents of violations involving rights of indigenous peoples
      Not applicable

      GRI 412:Human Rights Assessment 2016

      Index Data Reason for Omission/Explanation
      412-1
      Operations that have been subject to human rights reviews or impact assessments
       
      412-2
      Employee training on human rights policies or procedures
       
      412-3
      Significant investment agreements and contracts that include human rights clauses or that underwent human rights screening
       

      GRI 413:Local Communities 2016

      Index Data Reason for Omission/Explanation
      413-1
      Operations with local community engagement, impact assessments, and development programs
      Local environmental impact assessments are made prior to constructing any operating sites to ensure there are no critical issues. All sites operate with proper consideration for the local environment and community.
      413-2
      Operations with significant actual and potential negative impacts on local communities
      See above

      GRI 414:Supplier Social Assessment 2016

      Index Data Reason for Omission/Explanation
      414-1
      New suppliers that were screened using social criteria
      Prior to entering any business relationship with a new supplier, Canon conducts checks to see if the company meets Canon standards in areas such as finances, management set-up, business ethics, and environmental protection. Only firms meeting the criteria are registered on Canon's official Supplier List.
      414-2
      Negative social impacts in the supply chain and actions taken
      non-disclosure Confidentiality: disclosure of said information restricted due to confidentiality risks relating to parts of content

      GRI 415: Public Policy 2016

      Index Data Reason for Omission/Explanation
      415-1
      Political contributions
      non-disclosure Confidentiality: disclosure of said information restricted due to confidentiality risks relating to parts of content

      GRI 416: Customer Health and Safety 2016

      Index Data Reason for Omission/Explanation
      416-1
      Assessment of the health and safety impacts of product and service categories
      Confidentiality: disclosure of said information restricted due to confidential information. Please refer to "Ensuring Product Safety" for specific initiatives, standards and goals.
      416-2
      Incidents of non-compliance concerning the health and safety impacts of products and services
       

      GRI 417: Marketing and Labeling 2016

      Index Data Reason for Omission/Explanation
      417-1
      Requirements for product and service information and labeling
      Data unavailable: said information is not collected currently
      417-2
      Incidents of non-compliance concerning product and service information and labeling
       
      417-3
      Incidents of non-compliance concerning marketing communications
      non-disclosure Confidentiality: any compliance violations resulting in penalties, fines or punishments are disclosed appropriately in the reports filed with relevant government entities

      GRI 418: Customer Privacy 2016

      Index Data Reason for Omission/Explanation
      418-1
      Substantiated complaints concerning breaches of customer privacy and losses of customer data
       

      GRI 419: Socioeconomic Compliance 2016

      Index Data Reason for Omission/Explanation
      419-1
      Non-compliance with laws and regulations in the social and economic area
      Regarding tax payment no related major fines, penalties or sanctions were levied on the Canon Group in 2018.
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