ECO lifeWe Focus on the Lifecycle

21

As they grow, vegetables absorb CO2, a gas that causes global warming.

But what if we consider vegetables in terms of the entire lifecycle?

Even though we don’t usually notice it, energy and fuel are consumed and

CO2 is emitted at various stages, such as when cultivating the soil with tractors, transporting

vegetables to stores, and refrigerating them at home. This is not limited to vegetables. We can look at

the lifecycle of any item, examining how it is produced, used, and recycled to learn where

environmental burden occurs and seek out solutions. For example, in the case of vegetables,

we can imagine solutions such as energy-saving tractors and means of transport.

At Canon, we believe that’s showing real concern for the global environment.

Did you know that vegetables emit CO2?

Produce

Lifecycle

UseRecycleDisposal, incineration,etc. of food waste

Use of electricalappliances, etc.

Packaging materials

Use offarming

equipment

Means of transport

Lifecycle of Vegetables

CO2

CO2

CO2

CO2

CO2CO2

CO2CO2

Look closely at a vegetable across all stages of its “life” and you will see it is connected to CO2 emissions in various ways.

43

Canon has long been examining how product lifecycles impact the environment. For example,

we have been successful in developing compact cameras that efficiently utilize as few resources as

possible, copying machines that consume dramatically less energy, and programs for the collection and

recycling of used toner cartridges. At each stage of the lifecycle of Canon products—production, use, and

recycling—Canon assesses the amount of CO2 emitted and undertakes efforts to reduce it.

Focused firmly on the future, Canon is reducing CO2

emissions from the broad perspective of product lifecycles

Production atthe factory

Product usage

Means of transport

Product collectionand recycling

Productdevelopment

Procurement ofparts

Canon’s Product Lifecycle

Produce

Product lifecycle

UseRecycle

Canon’s Vision for 2010

Overriding Indicator: Factor 2Factor 2 = Effort to more than double

environmental efficiency compared with 2000

Environmental Efficiency =

Consolidated net sales

Lifecycle CO2 emissions*

*All lifecycle CO2 emissions for every product of the Canon Group

For example, even if demand for Canon products should expand to the point that net sales in 2010 double those of 2000, Canon will aim to limit the life-cycle CO2 emissions of its products to approximately 6 million tons, the same amount the company generated in 2000.

Canon’s target for 2010: Working to double the environmental efficiency of Canon’s product lifecycle.

IRecyclingRecycling of toner cartridgesRemanufacturingReutilization of materials

65

Energy-Saving TechnologiesCanon has a range of proprietaryenergy-saving technologies, suchas on-demand fixing technology.As a result, power consumptionhas been significantly reduced indigital copying machines, whichgenerate high levels of environ-mental burden during use.

In-House Development of KeyComponentsCanon digital cameras include suchCanon-developed key componentsas the DIGIC III imaging engine andthe CMOS sensor, the latter ofwhich is also manufactured in-house. These devices enable Canoncameras to deliver high-resolutionperformance as well as energy effi-ciency.

Collection of CartridgesCanon collects used toner car-tridges through collection boxes setup with the cooperation of salesoutlets.

RemanufacturingCollected digital copying machinesare disassembled, after which reusableparts are then separated andcleaned, and worn parts replaced.The remanufacturing process con-cludes with rigorous quality testing.

ICollectionCollection of cartridgesReverse logistics

IUseEnergy-saving technologiesIn-house development of key devicesResource conservation (compact design)

ISalesEnergy conserving vehicles

IShipping of productsModal shift

IProcurement of partsGreen procurementMilk runs

IProductionCell productionEnergy-saving factories

Comprehensive environmental activities at each and every stage of the product lifecycleCanon thoroughly analyzes the product lifecycle in terms of the produce,use, and recycle flow and engages in carefully designed environmentalactivities.

CO2

reduction

Produce

UseRecycle

Development Using 3D-CADDuring product development, Canonemploys computers throughout thedesign process. A product’s func-tions, operability, and quality canbe tested by running simulationsusing 3D graphics, resulting in areduction in the number of proto-types necessary and the eliminationof wasted materials.

Green ProcurementWhen procuring parts and materialsfrom its suppliers, Canon sets termsnot only for quality and price, butalso for environmental conscious-ness. The company also cooperateswith others in the industry in devel-oping environmentally conscious pro-duction technologies and materials.

Cell ProductionIn this production method, indi-vidual workers carry out multipleassembly processes. In addition toconserving energy through theelimination of conveyor belts, thisapproach enables Canon to avoidwasteful overproduction, since pro-duction volumes can be adjusted tomatch demand.

Modal ShiftRail and ship transport are proactivelyused to ship products. According tosome estimates, for a given amountof freight, transporting goods byship can reduce CO2 emissions toabout one-fourth of the emissionsgenerated by truck-based transport,while rail transport can reduce emis-sions to about one-eighth.

Produce Use Recycle

IPlanning and developmentDevelopment using 3D-CAD

IPackagingReduction of packaging materialsDevelopment of new packaging materials

Recycling of Toner CartridgesCanon pioneered the collection andrecycling of used toner cartridges in1990. The company has promotedand expanded the program aroundthe world and now achieves a 0%landfill ratio for collected cartridgesthrough parts reuse and materialrecovery.

The product manufacturing stage beginswith product development and encom-passes the procurement and shipping ofraw materials and parts along with pro-duction itself. Canon engages in thor-ough efforts not only to reduce CO2

emissions but also to eliminate sub-stances harmful to human health andthe environment.

During the product usage stage, prod-ucts manufactured in the factorychange hands, going to consumers whoput the items to actual use. Canonproducts reduce power consumptionthrough the inclusion of energy-savingtechnologies.

At the product recycling stage, productsthat have completed their full servicelife are put to effective use. After collec-tion, parts from retired products arecleaned and replaced and, followinginspection, are reused or recycled to thegreatest extent possible.

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Produce

UseRecycle

Compact and lightweight products use fewer resources. Canon digital cameras not only deliver high performance and ease of use, but also take the environment into consideration.

PowerShot G9Compact Digital Camera

Thinner and Lighter Camera Body ProduceAlthough it offers a 6x zoom lens and a largeLCD monitor, the PowerShot G9 is thinnerand lighter than earlier models due to its com-pact lens design and a compact battery madepossible as a result of its energy-saving features.

IApproximately 30 mm thinner and 22% lighterthan the PowerShot G6

ISmaller packaging

ICompliance with RoHS and other globalregulations on hazardous substances

IHigh performance despite low powerconsumption through the utilization of theCanon-developed DIGIC III imaging engine

ISupports collection and recycling promotion activities* forsmall secondary batteries after use

IPromotes recycling in compliance with the EuropeanUnion’s WEEE Directive

*Recycling memberships: Japan Portable Rechargeable Battery Recycling Center(JBRC), Rechargeable Battery Recycling Corporation (RBRC) in the United States

Smaller Packaging ProduceThe packaging for the PowerShot G9 wascompletely redesigned to achieve 35% lessvolume and 23% less weight than that of the PowerShot G6. This results in fewerresources consumed and less energy expendedin transport.

Features Canon’s unique DIGIC IIIImaging Engine UseThe Canon’s unique DIGIC III Imaging Enginereduces power consumption and achievesimage processing speeds several dozen timesfaster than comparable general-purpose CPUs.

\

The DIGIC III Imaging Engine

Packaging for PowerShot G6 (left)

Packaging for PowerShot G9 (right)

Reduced Battery SizeBattery for PowerShot G6 (left)

Battery for PowerShot G9 (right)

Produce

UseRecycle

MP610Inkjet MFP

Making possible high-speed and high-resolution performancewith low power consumption. What’s more, features a compactdesign that results in fewer resources used.

ICompact body design, resulting in fewerresources used

ICompliance with RoHS and other globalregulations on hazardous substances

ISupplies power only where and whenneeded, thereby reducing powerconsumption

ITwo-sided printing function reduces paper use

IUses recycled plastic

Magnified photograph ofa printheadMore than 6,000 nozzles arealigned within a space ofapproximately 20 mm × 16 mm

fApprox.9 mm

Nozzle

FINE Printhead Technology ProduceFacilitating high image quality and fast printspeeds, FINE printhead technology employssemiconductor production processes to achievehigh-precision, high-density nozzles, whilealso enabling reduced printhead sizes.

Compact Design ProduceThe MP610 delivers outstanding functionalitythrough such features as Quick Start, an Easy-Scroll Wheel and two-sided printing whilerealizing a body design that has 46% less vol-ume and 19% less mass than the previousmodel MP760. Approx. 86%

reduction in overallpower consumption*

300

200

100

0

(kWh)

Previous Model (MP760) MP610

*Conditions for calculation of overall power con-sumption: Daily consumption is based on 16 hoursin “power off” mode, with the remaining 8 hourscomprising operating time and time in “standby”mode. Operating time is equal to the amount oftime necessary to consecutively print 5 pages of colordocuments and 5 pages of monochrome documents.

Dramatic Power Savings UseWhen copying, printing, or scanning, powerconsumption is reduced dramatically throughon-demand operation technology by whichpower is supplied only where needed.

Two-sided printing function

10

In the same way that we can choose fresh but inexpensive produce at the supermarket, we now live in an age in which wecan select products that take the environment into consideration.

In this way, the small actions of each individual are linked to conservation of the global environment. Canon began developing its own environmental technologies early on and is still engaged in the creation of products that

take the global environment into consideration.In the years to come, Canon will continue to advance environmental consciousness as a partner to its customers in

response to increasing expectations.

Promoting environmental consciousness as a trusted business partner.

Canon develops energy-saving technologies for its copying machinesand laser beam printers, including on-demand fixing technology, whichrequires no heat during standby mode, and induction heating (IH) fixingtechnology, which dramatically reduces warm-up times. In the eight-year period between 1999 and 2006, these technologies contributed to a cumulative reduction in CO2 emissions of approximately 6.99 mil-lion tons.

The European Union’s RoHS Directive, which went into effect in July2006, restricts the use of six hazardous substance groups (lead, mercury,cadmium, hexavalent chromium, PBB, and PBDE) in products. Canon ledthe industry with the launch of RoHS-compliant products in 2004. Sincethen, the company has engaged proactively in product development, andall new Canon products are in compliance with the Directive. In thefuture, Canon will work to achieve swift and thorough compliance withall applicable laws and regulations around the world.

�Reduced Environmental Burden Through Energy-Saving Technologies

�Benefit based on cumulative unit sales7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

(1,000t-CO2)

1999 2000 2001 2002 2003 2004 2005 2006

Contributing to CO2 Reduction throughTechnology

A Step Ahead: Early Compliance withEnvironmental Laws and Regulations

*Assumes that copying machines and laser beam printers sold in previous yearsremain in use for eight years.

Produce

UseRecycle

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iR C3380/C3380i (Color imageRUNNER C3380/C3380i

in some areas)Color MFPs

Digital MFPs place a high burden on the environment duringthe usage stage. Canon has succeeded in reducing power consumption in ourcolor digital MFPs by 80%.

ICompact body design, resulting in fewer resourcesused

ICompliance with RoHS and other global regulationson hazardous substances

IDramatically reduced power consumptionthrough on-demand fixing technology

IExterior plastic casings are recycledfor use

Reduction in the Number of DeliveryTrucks ProduceWhile the delivery of parts traditionally wasconducted individually by each supplier,Canon now uses a “milk run” system, sendingits own trucks out on rounds to pick parts upfrom suppliers, thus reducing the number oftrucks needed for parts transport.

Reduction in Power Consumption DuringStandard Operation UseBy applying on-demand fixing technology (seep. 10) to color printers/MFPs for the first time,Canon has succeeded in reducing power con-sumption in sleep mode to 3W, resulting in areduction of approximately 80% in powerconsumption during standard operation.

Reuse of Exterior Plastic Casings RecycleThe exterior plastic casings of retired copyingmachines are recycled into new plastic partsfor copying machines.

80% reduction inamount of power

consumed per hour200

150

100

50

0

(Wh/h)

Previous model iR C3380/C3380i*Calculated using the energy consumption efficiencymeasurement method for monochrome copyingmachines (power consumption per hour in a stan-dard operating environment) as stipulated by Japan’sLaw Concerning The Rational Use of Energy.

Photograph: Tsuyoshi Takeda, The Asahi Shimbun

PUB. ECOP06E 0711T3.2 Printed in Japan

Canon’s Efforts for the EnvironmentCanon undertakes a wide range of compliance, environmental, and other activities to realize its goal of con-tributing to the sustainable development of society. Canon communicates these measures to a broad range ofstakeholders through its website, which can be viewed at the following address.www.canon.com/environment

Supporting Global Environmental Projects Around the World

Eyes on Yellowstone is a Canon-sup-ported education and research pro-gram in partnership with YellowstoneNational Park in the United States.Canon provides imaging equipmentto record video and other images ofrare wildlife, making possible “virtualfield trips” through Yellowstone’sWindows Into Wonderland website.Children from all over the world visitthe site to experience nature andlearn about the global environment.

In 1998, Canon Europe became thefirst company to be named a WWF(World Wide Fund for Nature) Con-servation Partner. Over the more thaneight-year relationship, Canon hassupported WWF’s activities throughsuch means as digitizing the organiza-tion’s valuable photo archive andsponsoring projects on the ground suchas polar bear tracking in the Arctic.

In various locations around Asia,Canon is engaged in tree plantingactivities and other environmentalconservation initiatives. In Malaysia,at an elementary school near CanonOpto (Malaysia) Sdn. Bhd., the com-pany planted trees to enhance thechildren’s awareness of the environ-ment, while in the city of Zhuhai,China, company employees and theirfamilies planted trees in a public park.

Canon U.S.A. and Canon Canada sup-port the Canon Envirothon, whichranks among North America’s largesthigh school environmental educationcompetitions. In this event, high schoolteams compete based on their knowl-edge of the environment. The CanonEnvirothon is held annually and drawsover 500,000 students and volunteersfrom the United States and Canada.

© WWF-Canon/Michel TERRETTAZ

At Canon, being an Excellent Global Corporation in accordance with our philosophy of kyosei—living and working together for the common good—means fulfillingour social responsibility through the support of social and cultural activities around the world. We also assist in numerous environmental conservation projects.

WWF Conservation PartnerEyes on Yellowstone

Tree-Planting Activities around Asia Canon Envirothon

Web-based class in New York, U.S.A.

Planting trees in Zhuhai, China Winning team at the 2006 Canon Envirothon

CANON INC.30-2, Shimomaruko 3-chome, Ohta-ku, Tokyo 146-8501, JapanTEL: +81-3-3758-2111 E-mail: eco@web.canon.co.jp

This digest is printed with ink that includes no mineral oil and is characterized bysuperior decomposability and de-inking qualities. The 100% recycled paper on whichthis report is printed was processed with no VOCs (Volatile Organic Compounds).

Photograph: Tsuyoshi Takeda, The Asahi Shimbun