Sustainability Report 2005
April 2004-March 2005
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Contents Epson’s Annual Reports
About This Report
Contents/Epson’s Annual Reports/About This Report
Corporate Profile ⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯ 1
Message from Management ⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯ 2
Management Philosophy/One Epson/Global Tagline ⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯ 3
Sustainability as Envisioned by Epson
Epson’s Efforts to “Exceed Your Vision” ⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯ 4
Epson’s Concept of CSR ⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯ 6
FY2004 CSR Activities ⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯ 8
Practicing Trustworthy Management ⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯ 10
[Feature Stories] Sustainability Activities Report
Preventing Global Warming ⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯ 12
Creating Eco-Friendly Products ⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯ 14
Customer-Centric Product Development ⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯ 16
Nurturing Employees for the Future ⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯ 17
Connecting Nagano and the World⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯ 18
Contributing to a Brighter Future ⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯20
● Environmental Management
Action 07―General Environmental Policy and FY2004 Results ⋯⋯⋯⋯⋯ 22
Promoting Environmental Management ⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯24
Environmental Education and Awareness Programs ⋯⋯⋯⋯⋯⋯⋯⋯⋯ 28
Environmental Accounting ⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯ 29
Development of Eco-Products ⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯ 32
Green Purchasing⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯ 36
Product Recycling ⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯ 38
● Green Factories
Preventing Global Warming ⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯ 40
Reducing the Environmental Burden of Transportation ⋯⋯⋯⋯⋯⋯⋯⋯ 42
Zero Emissions ⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯ 44
Integrated Management of Chemical Substances ⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯ 46
Office Locations and Factory Management ⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯ 47
Soil and Water Contamination Prevention Measures ⋯⋯⋯⋯⋯⋯⋯⋯⋯ 48
For Our Customers ⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯ 50
Information Security ⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯ 54
Together with Our Business Partners ⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯ 55
Together with Our Employees HR Policies and Working Conditions ⋯⋯ 56
HR Development and Education ⋯⋯⋯⋯ 59
Occupational Safety and Health ⋯⋯⋯⋯ 60
Corporate Citizenship ⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯ 62
Communications Activities ⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯ 66
FY2004 Activities and Results Environmental and Social Performance Topics ⋯ 70
Environmental Awards ⋯⋯⋯⋯⋯⋯⋯⋯⋯ 71
Independent Verification of Environmental Activities ⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯ 72
Corresponding Guidelines ⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯ 73
◆ This report has been compiled based on the following basic policies:
Our highest priority is to provide a reader-friendly report with informa-
tion that best meets the uncompromising standards of reliability that
our diverse stakeholders have come to expect. To do so, we followed
the Environmental Reporting Guidelines (2003) of the Japanese
Ministry of the Environment and the Sustainability Reporting
Guidelines (2002) of the Global Reporting Initiative (GRI) (see p.73).
◆ This report contains overviews of activities and data for Seiko Epson
● Environmental Performance – Seiko Epson Corporation, 20 Group
companies/affiliates in Japan, and 44 overseas companies that have
acquired ISO 14001 certification and in which Seiko Epson has
greater than 50% ownership.
• For Sanyo Epson Imaging Devices Corporation, only the data for the
Matsumoto Head Office (formerly Epson’s Toyoshina Plant) has been
included for FY2004.
• Shanghai Epson Magnetic Co., Ltd. is no longer included.
● Social Performance – Seiko Epson Corporation and stipulated Group
◆Because the environmental burden depends on the nature of the
activities of a given business organization, we have indicated the busi-
ness activity categories of each of our organizations
(manufacturing/non-manufacturing), along with the location (country).
◆ Although this report primarily covers activities from April 2004 through
March 2005, it includes some activities that took place after March 2005.
Past reports and next issue
Epson has issued the Environmental Report every August since 1999.
In 2003, we added social performance to the Environmental Report
and renamed it the Sustainability Report. Our next report is scheduled
for August 2006.
Each year, Epson publishes two reports that contain an overview of cor-
porate activities, the Annual Report (AR) and the Sustainability Report
(SR). They cover the following subjects:
• AR2005: Business vision, review of operations and financial state-
ments (published July 2005)
• SR2005: Report on environmental and social performance
Corporate governance, compliance and risk management are dis-
cussed in both reports.
For questions and inquiries on AR2005, please contact:
Investor Relations Department, Seiko Epson Corporation.
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1Seiko Epson Sustainability Report 2005
■ Name Seiko Epson Corporation
■ Established May 18, 1942
■ Head Office 3-3-5 Owa, Suwa-shi, Nagano-ken, 392-8502, Japan
■ Capitalization 53.204 billion yen (as of March 31, 2005)
■ No. of Employees Consolidated: 85,647; nonconsolidated: 11,811 (as of March
■ Business Activities ● IT equipment
Printers and consumables, color image scanners, LCD pro-
jectors, large LCD projection TVs, mini printers, POS system
products, personal computers
● Electronic devices
Medium and small LCD displays, high-temperature polysilicon
thin-film transistor LCD panels for LCD projectors, semicon-
ductors, quartz devices
● Precision instruments
Watches, plastic optical lenses, optical devices, factory
● Other Activities: R&D, manufacturing, marketing and
■ Sales/Ordinary In- Consolidated: 1,479.7 billion yen/85.3 billion yen
come (FY2004 actual) Nonconsolidated: 995.8 billion yen/39.8 billion yen
■ Sales Breakdown IT equipment 61%
(FY2004, consolidated) Electronic devices 31%
Precision instruments 5%
■ Group Companies 116 (39 in Japan, 77 overseas as of March 31, 2005)
■Membership in Japan Electronics and Information Technology Industries
Environmental Association, Japan Business Machine and Information
Organizations System Industries Association, Communications and
Information Network Association of Japan, Japan
Environmental Management Association for Industry,
Sustainable Management Forum of Japan, Nagano
Employers’ Association, Nagano Association for Conserving
Ordinary Income (consolidated)
Number of Employees
Suwa Minami Plant
Matsumoto Minami Plant
Shimauchi Plant Azusabashi
■Major Group Companies/Affiliates in Japan
Sanyo Epson Imaging Devices Corp.
Epson Sales Japan Corp.
Epson Direct Corp.
A. I. Soft, Inc.
Epson Service Corp.
Nagano Epson Systems Sales Corp.
Tohoku Epson Corp.
Epson Atmix Corp.
Yasu Semiconductor Corp.
Seiko Epson Contact Lens Corp.
Seiko Lens Service Center Co., Ltd.
Orient Watch Co., Ltd.
Epson Intelligence Corp.
Epson Logistics Corp.
Epson Mizube Corp.
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2 Seiko Epson Sustainability Report 2005
Epson employs 12,000 people in Japan and 85,000 people glob-
ally. If we consider the total number of all of employees’ family
members, Epson’s business affects the