sustainability report 2015 highlights - epsoncustomers with advice on improving their health or...

Highlights

Epson Group

Sustainability Report

2015April 2014 - March 2015 3-3-5 Owa, Suwa-shi, Nagano-ken 392-8502 Japan

TEL: +81-266-52-3131http://global.epson.com

Sustainability Report 2015 Highlights

Commitment toEnvironmental Conservation

Individuality andTeamwork

Trusted Throughoutthe World

CustomerCommitment

Prospering withthe Community

Note: “Epson” refers to the Epson Group, unless indicated otherwise.

C O N T E N T S

This report covers representative CSR activities in the

Epson Group during 2014. The structure is meant to portray

the direction we are headed, with articles arranged in

chapters that mirror Epson’s Management Philosophy.

Prepared for Epson’s worldwide stakeholders, this report is

brief and concise. Refer to Sustainability Report 2015 for

more detailed information.

This report includes forward-looking statements, estimates, and

plans. Projections herein are based on the best information

available at the time of publication. Actual results may vary from

those discussed.

Editorial Policy

Disclaimer

Epson conducts business activities with the aim of becoming an

indispensable company to customers and society. Our activities

are rooted in our Management Philosophy and the employee

mission underpinning the Exceed Your Vision tagline.

P.5

P.3

P.17

Leveraging Unique

Sensing Technologies

40th Anniversary of

the Epson Brand

Environmental Conservation Is

a Corporate Obligation

Integrated Environmental &

Business Strategy

Creating a Dynamic Workplace

Socially Responsible

Procurement

Corporate Citizenship in

the Community

P.9

P.13

P.11

40th Anniversary of the Epson Brand

Leveraging Unique Sensing Technologies

Integrated Environmental & Business Strategy

Environmental Conservation Is a Corporate Obligation

Creating a Dynamic Workplace

Socially Responsible Procurement

Corporate Citizenship in the Community

To Our Stakeholders

Business Vision

CSR Management

Epson Group Overview

3

5

9

11

13

15

17

19

21

23

24

P.15

1 2Epson Group Sustainability Report 2015 Highlights Epson Group Sustainability Report 2015 Highlights


Epson leverages its unique core technologies to alter the scope and nature of its businesses to meet the changing needs of

customers and society. We are developing original products and services in line with a vision of initiating positive change in the

four areas of printing, visual communications, quality of life, and manufacturing.

On June 12, 2015, the Epson brand marked its 40th anniversary.

This 40-year journey is defined by an ethos that we call “creativ-

ity and challenge.” Epson engineers have always filled technology

voids by finding creative solutions to challenges in order to realize

their dreams of creating the value they envision and the products

they want to present to the world. Since its founding as a watch

manufacturer in 1942, Epson has been renowned for generating

original products by continuously advancing its microfabrication

and ultra-high-precision processing technologies.

Today, printers are Epson’s largest business. The catalyst for ven-

turing into this business was the development of a printing timer, a

groundbreaking electronic recording system that could accurately

measure times at sporting events and immediately print out the

results. The printing mechanism used in this system served as the

platform for the EP-101, introduced in 1968 as the world’s first min-

iature digital printer. Commercialization of this printer laid the foun-

dation for later expansion into other businesses.

Filling the Technology Void Changing the World in Four Areas

PrintingVisual

communications Quality of life Manufacturing

Responding sincerelyto customers’opinions

High-precisionmanufacturing

Planning anddesigninginnovative products

Developingoriginal core devices

Sales

Manufacturing

Design

Planning

Core devices

SensingMicrodisplay

MicroPiezo

RoboticsNew Core

Technologies

Customer Commitment

40th Anniversary of the Epson Brand

EP + SON = “EPSON”

The EP-101, the world’s first miniature digital printer

Seiko Epson began in 1942 as Daiwa Kogyo

1963Printing TimerElectronic recording system

1963Seiko Crystal ChronometerQC-951World’s �rst portable, high-accuracy, battery-operatedquartz timer

1969Seiko Quartz Astron35SQThe quartz watchthat revolutionized horology

The origin of the “Epson” name

The Epson brand name comes from the EP-101, an electric printer that kicked off the company’s expansion into the infor-mation equipment business. The “Ep” stands for “electric printer” and the “son” represents our desire to follow the original electronic printer with many more worth-while products and services in a variety of fields.

Enduring Commitment to Creativity and ChallengeVertical integration is one of Epson’s strengths. We develop the core devices and core Micro Piezo printhead, microdisplay,

sensing, and robotics technologies that enable the products we manufacture and sell. Control over the manufacturing pro-

cess allows us to create value that exceeds customer expectations.

On the following pages, we report on products for two of the above areas that integrate sensing technology.


VOICEVoice of the customer

Epson is focused on maximizing sensing accuracy. Accurate sen-

sors acquire better data, and this data can, in turn, serve as the

basis for high-value products and services.

Our Pulsense activity monitors are equipped with sensors that

measure your pulse at the wrist and track your activity to provide

you with objective data that you can access at any time from a

PC or smartphone. You can see, for example, the time you spent

exercising in the fat-burning zone or your state of mind (relaxed or

excited) at any time of day. Pulsense helps you acquire habits that

will form the basis for good health throughout your life.

Improving Quality of Life with Sensors


Sensors for an IT revolution in batting

Swing analysis requires a small, lightweight, high-precision sensor. Epson’s sensors allow us

to measure and analyze eight important swing factors, enabling us to commercialize Swing

Tracer. We hope to keep Epson as a valued partner as we work to further develop this product

and offer scientific support for effective instruction and training.

Hikaru OzawaHealth Fitness Programmer / Health & Exercise InstructorLively Health Diagnostic ProgramIkenotaira Hotel & Resorts Corporation

Takeshi NaruoChief ResearcherMechanical Engineering Ph.D.Research and Development DepartmentMizuno Corporation

Customer Commitment

Wearable products are a perfect fit for Epson thanks to our combination

of watch, semiconductor, and crystal device businesses.

Epson’s wearables can be paired with smart devices to provide

customers with advice on improving their health or athletic performance

based on data collected by precision sensors.

Epson provides sports products that combine accurate data and professional knowledge

for runners and golfers. We are enriching the lives of people with immaculately designed,

comfortable wearable products that can acquire your location information using GPS.

Using Pulsense in our Lively Health Diagnostic Program

We at Ikenotaira Hotel & Resort Corporation provide personal-

ized exercise and lifestyle advice to our clients based on body

type and measurements of their heart rate and exhalations dur-

ing exercise. During interval walking, where we alternate aero-

bic and anaerobic exercise, our clients need to be able to see

changes in their heart rates. We use Epson’s activity trackers to

accurately measure heart rate.

Pulsense heart rate monitors withactivity tracking

Mizuno Baseball SwingAnalysis SystemSwing Tracer

M-Tracer Golf SwingAnalyzerMT500G II

Provides useful, accurate information for hiking based

on read ings f rom a combinat ion of sensors (GPS,

geomagnetic, accelerance, temperature & barometric).

The product is only sold in Japan.

Runsense GPS Sports Watch is equipped with a

pulse sensor as well as GPS. Perform heart

rate-based training without a chest strap.

Thin (14.2 mm) and lightweight (52 g).

Attach the sensor to a club to accurately measure the

data needed to analyze a swing. Data is sent to your

smartphone so you can identify areas for improvement.

The sensor attaches to the base of a bat to trace and

analyze the swing path for baseball, fastpitch softball and

slowpitch softball.

The product is only sold in Japan.

(Product photo provided by Mizuno Corporation)

Runsense GPSSports WatchesSF-810V

WristableGPS for Trekking

MZ-500B

How heart rate is tracked

The light-absorbing property of he-

moglobin is used to track pulse.

LED light is shone on blood vessels

and pulse rate is counted based on

changes in the amount of reflected

light.

Change quality of life

Leveraging Unique Sensing Technologies



Case

1Case

2Leveraging Unique Sensing Technologies

Creating New Value With MoverioLeveraging Unique Sensing Technologies

Making Communities Safer

Boosting Work Efficiency

I am the leader of the Moverio Pro development project.

Smart glasses with see-through lenses are attracting atten-

tion because they allow you to work with both hands and

see your surroundings while also viewing visual content dis-

played in front of you. We have conducted numerous joint

real-world tests with Moverio in various fields. We developed

the BT-2000 based on the insights we gained into customer

needs.

The design of the BT-2000 was tweaked to further in-

crease operational efficiency. For example, the headset was

equipped with an Epson inertial measurement unit (IMU),

a motion sensor for accurate motion tracking and indoor po-

sitioning. Analyzing a motion log allows you to identity waste

and obtain insights that will lead to greater operational ef-

ficiency and productivity. Since it knows your position, the

headset can, for example, help you

quickly navigate to specific loca-

tions in a large warehouse where

outdoor GPS signals do not reach

by providing information overlaid

on your actual environment.

Contributing to Research on Building Safety

Tests were conducted in January 2015 at the “E-Defense”

Three-Dimensional Full-Scale Earthquake Testing Facility

in Hyogo, Japan, as part of a multi-year government-spon-

sored project to mitigate the seriousness of disasters arising

from urban vulnerabilities. An Epson sensing system based

on 158 inertial measurement units (IMU) was used to help

assess damage to the structure under test.

Epson Sensors in ICT & Urban Development

Epson’s sensing system technology was used in a govern-

ment-sponsored research project on ICT and urban devel-

opment in the city of Shiojiri, Japan. In April 2015, Shiojiri,

which is promoting the use of sensor networks to increase

community safety, installed Epson accelerometers on city

bridges and inclinometers on hillsides for field tests.

The IMU also provides

extremely accurate head

tracking, so augmented

reality content can be

displayed in the proper

location in your field of view, for complete comfort.

The BT-2000, the product of a total collective effort by mul-

tiple operations divisions, is allowing Epson to deliver new

value.

Our urban development partner

The city of Shiojiri is looking to create a safe, secure community, but we lack the wherewithal

to inspect and maintain all of the more than 500 bridges and hillsides equally. The data pro-

vided by Epson’s sensors should allow us to quickly see their state and take efficient action.

Epson offered superior technology and by far the most accurate accelerometers and inclinom-

eters. Epson has been the perfect partner, and we look forward to continuing our relationship.Haruo KanekoChief Technology OfficerInformation Policy Section ManagerPlanning & Policy DepartmentCity of Shiojiri

Customer Commitment

Epson is creating new value with the Moverio Pro BT-2000, a multi-sensor smart headset for business

applications that is based on the Moverio with Epson’s binocular, see-through, hands-free wearable

products.

Epson’s industrial sensing systems are used to monitor buildings, infrastructure, and potential disaster

sites to enable quick evaluations and decision-making.

Our goal is to make communities safer by helping to ensure that people are not exposed to risks

posed by deteriorating infrastructure or disasters.

Comfort a priority

The BT-2000 can be worn comfortably for long periods—a

necessity for business applications—thanks to a headset that

distributes the weight of the system.

What is an inertial measurement unit ?

An IMU is a sensor that measures object move-

ment in 3D with accelerometers, which sense

linear motion, and gyro-sensors, which sense

rotation.

An inertial measurement unit

Shinichi KobayashiHMD Business Management Department


Products and services that are designed from a new per-

spective make your work and life easier and sharply reduce

your environmental impacts. As we continue to improve the

environmental performance of our products, we are also

helping to mitigate the environmental impacts of our cus-

Print up to 75,000 A3 sheets without replacing the

ink2. The ink pack system reduces CO2 emissions

by using fewer resources and facilitates consum-

ables management.

High-Capacity Replaceable Ink Pack System

“New Perspective” Products and Services

tomers by offering them innovative, eco-considerate Epson

technologies, products, and services that will change the

way they work.

Epson printers with replaceable ink pack system1 (RIPS)

technology are a “new perspective” product for the office.

Equipped with high-capacity replaceable ink packs, these

business inkjets offer approximately 95% lower CO2 emis-

sions and use 88% less power than an equivalent laser print-

Reducing Eco Impacts with RIPS Technology

er. Epson is helping to reduce the environmental impacts of

our customers by supplanting laser printers, which have long

dominated office printing, with inkjet printers.

Epson inkjet printers, which use slight changes in

pressure to eject ink droplets instead of heat, con-

sume far less electricity than laser printers, which

do use heat.

Supporting Energy-Efficient Offices with Inkjet Printers

52 toner cartridges &6 photoconductor unitsFour high-capacity

ink packsEpson RIPS technology printer

3.81kg-CO2

CO2

emissions

80.39kg-CO2

CO2

emissions

CO2 emissions3

Volume of consumables used to printthe same number of pages withthe Epson LP-M5300FZ, a color laserMFP with equivalent functions

Low globalwarming impact

Approx.

95% reduction (75,000 prints)

LP-M5300FZEpson RIPSbasic model Equivalent Epson color laser MFP

(sold only in Japan)

0.65

kWh/week

Electricityconsumption

5.2kWh/week

Electricityconsumption

Low electricityconsumption

Electricity consumptionApprox.

88% reduction (TEC approach4)

We articulated our 2015 environmental goals in our environmental policy, and the environmental

programs we are pursuing are firmly linked to our business strategies. We are addressing

environmental issues from a variety of angles, one of which we call “new perspective.” The goal of

this approach is to reduce end-user environmental impacts.


Nobuhiko YasudaRepresentativeSakura Chuo Tax Accoun-tants’ Corporation

RIPS is a game changer

We use the Epson RIPS technology printer as the main printer for our office. It is reassuring

to know that for just 12,000 yen per month—the basic monthly fee for the full-set plan, which

includes servicing—we can call field service to resolve any issues that arise. The replaceable

ink packs are huge, so we never have to worry about running out of ink. Another advantage of

Epson’s inkjet solutions is that they consume far less power than laser printers, which helps

us to keep our electrical bills down.

2 Quoted yields are extrapolated based on Epson original methodology from the print simulation of test patterns provided in ISO/IEC 24711 and ISO/IEC24712. Quoted yields will vary depending on the images that you are printing, the paper type that you are using, frequency of printing, environmental conditions, etc.

3 Figures calculated under Epson’s test conditions. Compared with the Epson LP-M5300FZ Japan model, a color laser MFP with equivalent functions. We use a life cycle assessment to calculate the total global warming impacts of consumables across the product life cycle (mate-rial, material processing, distribution, disposal) as CO2 emissions. CO2 emissions will vary depending on customer printer use.

4 Typical electricity consumption (TEC) is based on the ENERGY STAR® program’s TEC test method criteria. Measured when making 288 prints per day. Compared with the Epson LP-M5300FZ Japan model, a color laser MFP with equivalent functions. The TEC value of the WorkForce Pro WF-R8590 series is 0.7 kWh.

5 For the A3 all-in-one basic model, the A3 printer basic model, and the A3 printer full set

1 In some geographies, printers with RIPS technology include a managed print service with a choice of printers as well as ink and maintenance for a fixed monthly fee.

Commitment to Environmental Conservation

Integrated Environmental & Business Strategy


Commitment to Environmental Conservation

Environmental Conservation Is a Corporate Obligation

We at Epson are putting our environmental technologies and know-how to work in global environmental

initiatives.

Here, we present some examples of initiatives in the UK and USA.

I’m Justin Pike, Supervisor of the Environmental Depart-

ment of Epson Telford Ltd. (ETL) in the UK. Epson’s zero

emissions program began with an effort to recycle 100% of

process wastes. In FY2003 all Epson Group companies in

Japan and all of our overseas production sites achieved this

recycling target. Epson is now shifting to activities that con-

serve resources in production processes.

As part of our zero emissions ac-

tivities at ETL, we have been work-

ing to achieve zero-cost recycling

since January 2006. Toward that

end, we strive to efficiently reuse

production waste materials to

make paper, plant materials,

stationery and other every-

day goods. By November

Sustainable Factories with Zero-Cost Recycling

2006 ETL was earning

enough money from sal-

vaging the waste to break

even on its recycling op-

eration.

I’m Andy Pigg, Manag-

er of the Environmental

Department. In 2012, ETL received the first Zero Waste to

Landfill Award from Valpak, a leader in waste management

and environmental compliance.

We display posters showing the results of our zero emis-

sions activities as a way to raise employee awareness. We

also endeavor to produce as little waste as possible by re-

ducing processing waste and unnecessary items.

Definition of recycling • Recycling 100% of waste materials • Maximum of 50 g of burnable waste per person per day

Definition of resourceconservation• Reduction of resource inputs• Reduction of wastes by using recycled resources

Shift

Recycling

Recycled in-house

Recycled externally

Closed-looprecycling

Nonclosed-loop

recycling

Product

Waste m

aterials

Resource conservation

Recycled in-house

Recycled externally

Nonclosed-loop

recycling

Closed-looprecycling

Reduction ofinputs

Product

Factory FactoryResource

inputs

Resourceinputs

Justin PikeSupervisorEnvironmental Department

Andy PiggManagerEnvironmental Department

● Zero Emissions Activities at Epson

At Epson Portland Inc. (EPI) in the US, more than 7 million

kWh are consumed each year, on average, for air condition-

ing and production support equipment. In 2011, the Facilities

team worked with the non-profit Energy Trust of Oregon to

introduce a new air conditioning monitoring system to re-

duce EPI’s energy use and environmental impact.

The monitoring system allowed Facilities to observe and re-

cord the actual air temperatures in the ink cartridge produc-

tion areas throughout the day. EPI used the data to modify

the air conditioning system so that, when outdoor tempera-

tures are lower than those in the production areas, warm air

is automatically exhausted and outside air is used for cool-

ing, saving energy and money. These actions have helped

Reducing CO2 by Visualizing Air Conditioning

EPI reduce its annual

CO2 emissions by more

than 100 tons.

Since implementing this

cooling system in 2011,

EPI has taken advantage

of various other energy

conservation opportuni-

ties. These have result-

ed in cumulative CO2

reductions of approximately 655 tons.

Improvement CO2 Reduction

Production area temperature control with outside air (2011)

Compressed air leak repair (2011)

Reduced HVAC air volume (2012)

Reduced compressed air pressure (2012)

Installed variable frequency drives on six cleanroom fan

motors (2014)

112 tons

67 tons

171tons

66 tons

188 tons

Adam BartiniSenior Program ManagerEnergy Trust of Oregon

VOICEA message from our partner

Cut electricity bill through efficiency

Energy Trust of Oregon, a non-profit organization funded by customers of local utility companies,

provides financial assistance to help businesses and homeowners save energy.

When Larry Halverson asked us about reducing energy in EPI’s cleanrooms, our energy profession-

als suggested ways to optimize indoor air pressure and increase energy efficiency. Energy Trust of

Oregon provided $21,000 in funding, and the improvements are expected to save EPI $30,000 or

more a year.

● Main Improvements to Reduce CO2 Since 2011

Larry HalversonManagerFacilities

1

2

(1) Larry Halverson checking the op-erations of the air conditioning system on a monitor

(2) Air conditioning system installed on the roof

13 14

Individuality and Teamwork

Creating a Dynamic WorkplaceParticipation of Women in the Workplace

Epson actively engages women in the product design process to ensure that different perspectives

are reflected in products.

Mana KamekawaProject W leaderImaging Products Design Department

that even idle chitchat

generated insights.

After exhaustive dis-

cussions about prod-

uct usability, size, and

operability, the WWG

developed a broad

proposal for projec-

tors that would appeal

to women. The next

step is to produce a

full-size mock-up and

pitch our proposal to the relevant departments. This WWG

was made up exclusively of female employees in Japan, but

we want to roll it out globally to engage women at our over-

seas operations to help develop projectors by women, for

women.

Home Projectors That Appeal to Women

I am serving as the leader of the Women’s Working Group

(WWG) for Home Projectors. The majority of home projec-

tors are purchased by men. To entice more women to buy

home projectors, we needed to take a different approach.

We needed more input from women. So, in October 2014,

we launched the WWG to collect information and ideas from

women that would help shape future products.

As the leader of the WWG, I wanted a diverse group of 10

women that would represent different ages, family composi-

tions, and backgrounds.

Since this was a team effort, everyone was encouraged to

contribute ideas and to tap into sensibilities as women.

The WWG generated a large number of ideas in a fun and

free-thinking atmosphere. The participants found it easy to

participate and speak up in the WWG, whereas they may

have been more hesitant if men were present. We also found

I have been serving as the leader of Project W (Women) for

a small, fun printer called the PF-70. Released in Japan in

October 2014, the PF-70 mainly targeted females between

the ages of 10 and 40. You

can use the printer to quick-

ly and easily print a variety

of stickers for everyday use.

At the product development

stage, one man on the PF-

70 project suggested that

we needed to get young

women involved in the idea

generation and evaluation

process if we were to meet

the requirements of target-

ed users. This led to the cre-

ation of Project W, a group

made up of seven young

women from our printer de-

sign and planning organizations.

Most of our printer design engineers are men, and product

specifications tend to reflect a male perspective. The PF-70

was different because the ideas proposed by Project W,

whose members were in the same age group at target us-

ers, carried more weight with the engineers.

Initially I did not know how to lead the team to generate use-

ful ideas or create proposals, but as a group we worked it

out. Ultimately, the ideas we proposed were used in product

development, which gave us a huge confidence boost. This

confidence and approach to challenges are something we

want to remember for the future.

Recently, we created a new Project W with one new member

to carry on this work and gather ideas from women that will

help shape future printers.

A Small, Fun Printer Conceived by Women

Offering more fun ways to print

Easy and fun to use

Easily print photos and create original stickers and labels for

decorative and other uses.

Name stickers Address stickers Multipurposestickers

Decorative stickers

The PF-70 is a small, fun printer that is great not only for photos and documents but also for stickers, labels, photobooks and

more.

Tomomi MisawaWomen’s Working Group LeaderVP Planning & Design Department

Epson Group Sustainability Report 2015 Highlights Epson Group Sustainability Report 2015 Highlights

15 16

Epson believes in building good supply chain partnerships based on mutual trust. This means working

with suppliers to ensure that we conduct our business activities in line with social ethics and norms.

As part of this effort, we are working to address the problem of conflict minerals in the supply chain.

Armed groups in the Democratic Republic of the Congo and

adjoining countries have been using forced labor to mine

minerals. Proceeds from the sale of these minerals are being

used to fund further armed conflict. To avoid contributing to

these groups either directly or indirectly, companies need to

procure tantalum, tin, tungsten, and gold from organizations

not related with the armed groups.

Socially responsible procurement is a critical issue for Epson

Engineering (Shenzhen) Ltd. (ESL), which manufactures and

ships Epson products around the globe. We want our cus-

tomers to be happy with our products and to use them in

good conscience, confident not only that our products meet

high standards for quality, reliability, value, and environmental

performance, but also that we as a company have remained

socially accountable and have not procured components or

materials produced using child labor or forced labor.

ESL conducted conflict min-

eral surveys in the 2013 fis-

cal year. We did so again in

fiscal 2014, surveying sup-

pliers from December 2014

through March 2015. Not all

suppliers understood the reporting requirements, so ESL

engaged these suppliers to talk about the importance of ef-

forts to eliminate conflict minerals and to explain the survey

and reporting process.

Ultimately, ESL received completed surveys from 135 suppli-

ers on more than 13,000 components. We continue to work

with the one supplier that did not comply with our request to

confirm its conflict-free status.

We realize that the cooperation of our suppliers is essential

to keep conflict minerals out of Epson products, and we will

continue to seek their understanding and cooperation to fa-

cilitate socially responsible procurement.

Eliminating Conflict Minerals

Efforts by ESL

Epson began addressing the problem of conflict minerals

in electronic devices in 2005, before the establishment of

industry guidelines. Verifying that the components and raw

materials we procure do not contain conflict minerals is a

complex challenge that requires tracing the minerals’ origins

back through the supply chain.

Epson’s Approach to Responsible Sourcing

Epson conducts supply chain surveys to identify smelters of

conflict minerals in products that we procure. Minerals ob-

tained from smelters certified by the Conflict-Free Smelter

Program1 are judged to be conflict-free.

1 The program created by the EICC/GeSI uses third parties to identify smelters that source only conflict-free minerals.

● Countries where conflict minerals are mined

The answers to many of the completed surveys from com-

ponents manufacturers indicated the difficulty of tracing

minerals back to a particular smelter. Some suppliers re-

ported the names of smelters that have not been certified as

conflict-free under the CFS Program. We were thus unable

to conclusively determine that components we procure are

Epson Group Conflict Minerals Survey Results

conflict-free (as of March 31, 2015).

However, we will continue to work with our suppliers to pro-

mote socially responsible procurement of conflict-free prod-

ucts.

● Supply Chain Overview and Epson’s Survey ● FY2014 Epson Group Survey

Companies sent surveys

942

Companiescompleting surveys

Companiesnot completing surveys

No. of componentscovered by surveys

905 37

Completion rate

96% 50,858

(current as of March 31, 2015)

Trusted Throughout the World

Socially Responsible ProcurementEliminating Conflict Minerals from the Supply Chain

Yang Li FangDivision managerTP Center Vendor Management Division(former general manager of TP Center Production Control Department)

Explaining the conflict mineral survey to suppliers

DemocraticRepublic ofthe Congo

Republic of the Congo

Republic of Angola

Republic of Zambia

United Republicof Tanzania

Republic of Uganda

Republic of BurundiRepublic of Rwanda

Republic of the Sudan

Central African Republic

Supply chain

What is identi�ed

Epson Componentsmanufacturers Metal traders Smelters

and refiners Mining companies

Determination of whetherminerals are con�ict-free

Determination of whetherproducts contain subjectminerals

Identi�cation of smelters/re�ners and mines


17 18

Prospering with the Community

Corporate Citizenship in the Community

Epson strives to be a good global corporate citizen. We contribute to the communities in which

we operate not only monetarily, through donations and sponsorships, but also physically, through

volunteer efforts and the use of Epson technology.

Global Initiatives

Recycling event (USA)Every April for the last 14 years, Epson Portland Inc. (EPI)

employees have held a recycling

event. In 2015, they joined forces

with nearby businesses to collect un-

needed electronics, batteries, used

paper, and other items.

Blood drive (Philippines)Epson Precision (Philippines), Inc. (EPPI), in partnership with

the Philippine Red Cross and EPPI employees, has par-

ticipated in Red Cross blood drives

since 2000. This year (FY2014) 1,241

employees donated blood.

Beautification project (Japan)Every year since 2007, Epson employees at the Shiojiri Plant

have helped to beautify the local community by cutting

weeds and picking up trash

along a river that runs by the

plant. As of August 2014, a

total of 3,168 volunteers had

participated in this project.

190 Days of Social Commitment(Germany)All employees of Epson Deutschland GmbH (EDG) take one

day off a year to serve the community in some capacity. This

program, which began in 2008, was named “190 Days of

Social Commitment” because EDG,

at the time, had 190 employees. As

of March 2015, EDG employees have

provided more than 1,100 days of

service.

Carbon Trading Model Forest Project (China)In 2010, Epson (China) Co., Ltd. (ECC) entered an agree-

ment with a government agency and launched the Epson

Carbon Trading Model Forest Project. ECC helps to maintain

a 37,000 m2 area in Beijing’s Bai Wang Shan Forest Park,

measure CO2 absorption, and educate the community about

CO2 reduction. As of March 2015, a total of 360 employees

and members of their families have participated in the proj-

ect.

In 2010, borrowing know-how from the Shinshu Energy Pa-

trol Team in Japan, we at Epson Taiwan Technology & Trad-

ing Ltd. (ETT), joined by other local companies and groups,

launched the Taiwan Energy Patrol Team. The team visits

local businesses to provide free assessments of their en-

ergy use and recommend improvements. There was a limit

to what ETT could do by itself, so we are grateful for the

help and cooperation of other companies and groups who

helped to make this program a success.

In the second year of the program, we, along with the Tai-

wan Business Council for Sustainable Development (BCSD),

formed the Taiwan Energy-Saving Patrol Association. This

has prompted even more corporate participation and al-

lowed us to expand activities to new regions, with teams

covering south Taiwan

in 2013 and central Tai-

wan in 2014. To assist

the various teams, we

have held trainings and

shared information with

other participants. As of

March 2015, we have

increased the number

of member companies

to 34 and have conducted 112 assessments.

With even greater corporate involvement and government

participation, we hope to make this program sustainable.

Taiwan Energy Patrol Team Expands to New Regions

Tony MoTaiwan Business Council for Sustainable Develop-ment (BCSD)

VOICEA message from our partner

The patrol team helped us cut CO2 emissions

The BCSD’s mission is to realize the sustainable development of businesses through environmen-

tal preservation and efficient resource management. Most government-run energy conservation

programs focus on large corporations, so smaller companies and organizations have few op-

portunities to get help in increasing energy efficiency. This situation prompted ETT to propose the

Taiwan Energy Patrol Program, which was launched with the help of other like-minded organiza-

tions. The membership has been growing by the year. We want to urge more companies to get

involved and help reduce CO2 emissions.

1 2

3

Coco WangGeneral ManagerBR & Corporate Affairs Center

The history of Epson energy patrols

The catalyst for these patrols was a

pamphlet that Seiko Epson Head Office

distributed to local enterprises contain-

ing energy-saving tips. Reaction to the

pamphlet was positive, and Epson be-

gan receiving requests to assess energy

use. Epson responded by forming the

Suwa Regional Energy Patrol Team in

2000. In 2005 the name was changed to

the Shinshu Energy Patrol Team.

(1) Team member providing assessment feedback(2) (3) Teams on patrol


19 Epson Group Sustainability Report 2015 Highlights 20Epson Group Sustainability Report 2015 Highlights

In June 2015, the Epson brand marked its 40th anniversary. We at Epson would

like to take this opportunity to extend our sincere thanks and appreciation to the

countless loyal stakeholders whose loyalty and support have made this possible.

Epson has always sought to provide unique products and services that bring surprise

and delight to people around the world by leveraging the technologies that have

long been hallmarks: technologies that maximize energy savings, compactness,

and precision. Compact, energy-saving, and high-precision technologies are the

source of Epson's technological strength. At the same time, these technologies also

significantly help mitigate environmental impacts by, for example, reducing CO2

emissions and conserving resources. As stated in our Management Philosophy,

we are committed to environmental conservation, and we believe that the use of

products and services that feature our compact, energy-saving, and high-precision

technologies can help to keep greenhouse gas emissions in check.

As a member of society, Epson believes that corporate conduct is an essential

element in fulfilling our corporate social responsibility (CSR). It is this belief that guides

our initiatives to face and resolve social issues, whether they relate to corporate

ethics, compliance, respect for human rights, environmental issues, or respect for

employee diversity. A multinational corporation that conducts business around the

globe, Epson declared its support for the United Nations Global Compact in 2004,

and we continue to drive internal initiatives aligned with the ten principles of the GC

relating to human rights, labor, environment, and anti-corruption.

As a manufacturer, Epson aims to continue to be an indispensable company for its

customers and society by delivering products and services whose value exceeds

expectations. Through nonstop innovation and the delivery of peerless, unique value

to more people in a wider range of markets, we intend to remain an indispensable

company while at the same time fulfilling our social responsibility.

Minoru Usui

President

Seiko Epson Corporation

July 2015

To Our Stakeholders

Delivering Peerless, Unique Value

21 22

Business Vision

The SE15 Updated Mid-Range Business PlanThe SE15 Updated Mid-Range Business Plan, established in March 2013, is a three-year plan that

runs from FY2013 through FY2015.The plan reiterates the strategic direction of the SE15 Long-Range

Corporate Vision while emphasizing profit over revenue growth.

Under the next three-year plan, which starts in 2016, we aim to transform Epson into a company

that posts strong growth by creating and providing new information solutions and equipment for

businesses and professionals, as well as consumers. We are laying the foundation for achieving

this under the current plan by readjusting our product mixes and adopting new business models in

existing businesses while aggressively developing markets in new areas.

Epson's vision for targeted business areas

Looking back on fiscal 2014

Penetrate every corner of the printing marketwith Micro Piezo inkjet technology.

Change the way information is communicated using microdisplay technology.

Use precision sensing to helpimprove personal health and safety.

Innovate manufacturing by using robotics technology to further automate production.

Printing

Visualcommunications

Quality of life

Manufacturing

We are changing the way information is

communicated with a broad lineup of

projectors for the office, home, and

classroom. We are developing

professional applications for Moverio

eyewear and are transforming the way

work is done.

We are contributing to health, safety,

and security with products that

combine sensing and watch

technologies to offer advice for

improving health and sports

performance and with sensing systems

that monitor structural health.

Aiming to fill every printing need, we are

revolutionizing printing in the office and

improving work processes in the

professional printing and textile

industries by fully tapping into the power

of PrecisionCore to provide amazing

image quality at blazing speeds.

We are innovating manufacturing by

automating production in the

electronics, auto, and other industries.

By developing robots that virtually see,

feel, think, and act, we are also

automating tasks that have defied

automation in the past.

Working in line with the updated plan, Epson made

significant technological advances, launched new

products, and introduced new business models.

On the financial front, the weaker yen and actions

taken enabled us to grow both revenue and profit

while actively investing in future growth.

We will fuel strong growth by focusing

management resources on the four targeted areas

where we can leverage our core technologies,

spreading the scope of our operations, and

building strong new future businesses.

1,086.31,008.4

849.6

FY2012 FY2013 FY2014

200

400

600

800

1,000 100

1,200

0

(billions of yen)

20

40

60

80

120

0

101.290.0

36.5

Revenue Business profit

Revenue Up 7.7% Y/Y

Business profit

Up 12.4% Y/Y

Revenue & business profit trends

(billions of yen)

* Revenue conforms to International Financial Reporting Standards. Business profit, which is calculated by deducting the cost of sales and SGA expenses from

revenue, is essentially the same concept as operating income under J-GAAP.

Epson today

Primarily a consumer imaging product provider

Updated Mid-Range Business Plan

Transform existing business domains

Develop new business domains

Next mid-range business plan

A company that once again posts strong growth by creatingand providing new information tools and equipment forbusinesses and professionals, as well as consumers.

FY16

FY18

FY13

Manage businesses so that they create steady income,

and avoid the single-minded pursuit of net sales growth.

Initiatives for achieving the SE15 Long-Range Corporate Vision

・Strengthen the financial structure with an emphasis on generating cash.

・Change the profit structure with an eye toward fresh growth.

FY15

The Updated SE15 Mid-Range Business Plan

Basic Policy

Corporate Vision

Develop

�rmfound

ations

Direction under the SE15 Long-RangeCorporate Vision

The source of Epson’s competitive strengths

is provided by core technologies (Micro Piezo

inkjet printhead, microdisplays, sensing, and

robotics) that help reduce the power usage of

products, shrink their dimensions, and

improve precision. We will actively expand

our business domains by improving these

core technologies and offering products and

services that exceed customer expectations

in printing, visual communications, quality of

life improvement, and manufacturing

innovation.

Looking Back on Fiscal 2014Working in line with the updated plan, Epson made signifi-

cant technological advances, launched new products, and

introduced new business models. On the financial front,

the weaker yen and actions taken enabled us to grow both

revenue and profit while actively investing in future growth.

We will fuel strong growth by focusing management re-

sources on the four targeted areas where we can leverage

our core technologies, spreading the scope of our opera-

tions, and building strong new businesses.


23 24

CSR and Principles of Corporate BehaviorBy creating customer value as guided by our Management

Philosophy, we aim to win the trust of every stakeholder now

and in the future and to keep contributing to the develop-

ment of society. We consider any action designed to realize

the Management Philosophy to be a CSR activity. To make

sure this happens, we established our Principles of Corpo-

rate Behavior in 2005. This is a Group-wide statement on

how we are to behave and what values we are to uphold in

respect to our customers, shareholders, investors, and other

stakeholders.

In 2006, we revised the Epson Code of Conduct, based on

the Principles of Corporate Behavior and spelling out how

employees are to conduct themselves. We frequently update

the Epson Code of Conduct (most recently in April 2015) in

response to social, legal, regulatory, and other changes.

Participation in the United Nations Global Compact

Epson joined the UN Global Compact in 2004. We pledged

to uphold the ten principles of the GC in human rights, labor,

environment, and anti-corruption.

CSR Management

Epson’s CSRAt Epson, our Management Philosophy is key to how we run our business. Our mission is to build

stakeholder trust as we grow and prosper with communities and to help create a better world. We

seek to do this through business activities that comply with the law, adhere to the highest standards

of business ethics, and create value that exceeds the expectations of our customers.


Printing Solutions

Visual Communications

Wearable & Industrial Products

Commercial and industrial inkjet printers

Robot systems Microdevices, Other

total% of revenue

67.5%

total% of revenue

16.0%

total% of revenue

16.4%

1. Segment sales: revenue, including from inter-segment transactions.

2. Intra-segment sales: revenue, including from sales between businesses in the same segment.

3. Consolidated revenue: external revenue from which inter-segment sales have been canceled out.

4. Epson has been disclosing its financial results based on IFRS since the 2014 fiscal year.

5. Financial results have been recalculated based on new reporting segments introduced at the start of the 2015 fiscal year.

Wearable products

Home and office-use inkjet printers

Projectors, smart eyewear, etc.

(billions of yen) (billions of yen)

1,086.3

2014

849.6

2012

1,008.4

2013

200

400

600

800

1,000

1,200

0

Revenue

(FY)

131.3

2014

29.2

2012

79.5

2013

25

50

75

100

125

150

0

Profit from operating activities

(FY)

(billions of yen)

101.2

2014

36.5

2012

90.0

2013

20

40

60

80

100

120

0

Business profit

(FY)

1. Effective from the start of the 2014 fiscal year, Epson has prepared its consolidated financial statements in compliance with International Financial Reporting Standards (IFRS). For reference purposes, the financial figures for the 2012 and 2013 fiscal years have also been recalculated in conformance with IFRS.

2. Business profit, which is calculated by deducting the cost of sales and SGA expenses from revenue, is essentially the same concept as operating income under J-GAAP. Although it is not a defined indicator in the consolidated statement of comprehensive income, Epson discloses business profit because we believe this information is useful for evaluating Epson's financial performance.

Company Profile (As of March 31, 2015)

FY2014 Performance by Business Segment

Consolidated Financial Results Trends

Name Capital

Employees

Seiko Epson CorporationHead Office

GroupCompanies

94 (including Seiko Epson Corp.) (21 in Japan and 73 overseas)

Consolidated: 69,878Parent Company: 11,810

Founded

Head Office

Seiko Epson Corporation ¥53,204 million

May 18, 1942

3-3-5 Owa, Suwa-shi, Nagano-ken, Japan 392-8502

Revenue ¥730.8 billion

Segment ¥111.4 billion Profit



Corporate & Adjustments


Segment -¥39.6 billion Profit

Othertotal

% of revenue

0.1%Revenue ¥1.3 billion

Segment -¥0.3 billion Profit



Principles of Corporate Behavior

Management Philosophy

Conduct to Realize the Management Philosophy

Prosp

ering with the

comm

unity

Creating a safe, healthy

and fair w

orkplace

Protecting p

eople,

assets, and inform

ation

Preserving the natural

environment

Co-creating w

ith ourb

usiness partners

Initiating honest dialogue

with our stakehold

ers

Acting ethically,

build

ing trust

Fostering diverse values

and team

work

Pursuing custom

ersatisfaction

Global environment

Local communities

Shareholders/investors

Customers

NGOs/NPOsGovernment

SuppliersEmployees Preserving the natural environmentWe will integrate environmental considerations into our corporate activitiesand actively strive to meet high conservation standards in fulfilling ourresponsibilities as a good corporate citizen.

●9

Prospering with the communityWe will actively contribute to the communities in which we operate, as wel as the international community, facilitating mutually beneficial relationships.

●8

Initiating honest dialogue with our stakeholdersWe will maintain open lines of communication with our stakeholders,thoughtfully considering their views and suggestions.

●7

Co-creating with our business partnersWe will expect our business partners to live up to the same ethical standardswe observe and aim to work together to our mutual benefit while respectingapplicable laws and our mutually independent business strategies and stances.

●6

Fostering diverse values and teamworkWe will draw strength from our diversity, creating a positive synergybetween the individual and the company.

●5

Creating a safe, healthy, and fair workplaceWe will respect fundamental human rights and facilitate a fair, safe, healthyand pleasant work environment.

●4

Pursuing customer satisfactionWe will keep the customer in mind at all times and make the quality of ourproducts and services our highest priority. From the quality assurance efforts of each employee to the quality of ourcompany as a whole, we will devote ourselves to creating products andservices that please our customers and earn their trust.

●3

Protecting people, assets, and informationWe will maintain systems to provide the security of people and all corporateassets, and will be prudent in handling information.

●2

Acting ethically, building trustWe will abide by the law and conduct all our business with high ethicalstandards.

●1

Principles of Corporate Behavior


CO2 emissions

163 t578K t-CO2 6.5 t

Water use

Used product collection

Used cartridgecollection

14.3K t

2.4K t

+2% YoY

+16% YoY

Global CO2 emissionsfrom transport

+45% YoY 3

+63% YoY

-7% YoY +3% YoY

-36% YoY

Vs. FY 2006

-10% YoY

Corporate citizenshipexpressed asa monetary value ¥370 million

Vs. FY 2006 Vs. FY 2006

Vs. FY 2006Vs. FY 2006

30,270 t 7,577K m3

PRTR1 emissions VOC2 emissions

Reduced by

39%

Waste emissions

Reduced by

29%

Reduced by

55%

Reduced by

56%

Reduced by

58%

227K t-CO2

The following targets are compared to FY2006 results.

　● CO2 emissions 34% reduction (629K t-CO2)

　● PRTR emissions FY06 level (14.4 t)

　● VOC emissions FY06 level (387 t)

　● Waste emissions FY06 level (42,425 t)

　● Water use 50% reduction (8,660K m3)

　　 Indicates the target was achieved.

Social Performance IndicatorTargets

1 Pollutant Release and Transfer Register database2 Volatile Organic Compounds

3 The increase in CO2 emissions in FY2014 resulting from a need to transport freight by air instead of ocean containers to avoid long delays caused by port bottlenecks in the Philippines and U.S. West Coast port labor issues.

Environmental Indicators


Epson is a multinational company headquartered in Japan and with four regional head offices around the world.

Epson (China) Co., Ltd.Est. 1998

Seiko Epson Corp. Head OfficeEst. 1942

Epson America, Inc.Est. 1975

Epson Europe B. V.Est. 1990

Epson SingaporePte. Ltd.Est. 1982

Consolidated revenue: ¥1,086.3 billion Employees: 69,878

Japan

25.4%

Europe 21.3%

Asia &Oceania

25.3%

Americas 28.0%

Percentageof revenueby region(April 2014 toMarch 2015)

Japan

26.6%

Americas 4.2%

Asia &Oceania

66.2%

Europe 3.0%

Percentageof employees

by region(as of March 31,

2015)

CSR History

Global Network Environmental & Social Performance Indicators

1980s 1990s 2000 to 2015

2001

Published the Epson Code of Conduct and a booklet to explain the company’s expectations regarding conduct

2005

Formed a Shinshu Energy Patrol Team with other companies to provide free consulting for conserving energy

2007

Acquired the “Kurumin” next-generation accreditation mark as a company that supports child-rearing

1999

Issued an environmental report to provide information to the public on the results of our environmental programs

1992

Received a Stratospheric Ozone Protection Award from the U.S. Environmental Protection Agency for CFC-elimination

1983 Established the Mizube Of�ce (now Epson Mizube Corp.) (to promote employment of persons with disabilities)

1983 Eliminated the gender pay gap

1988 Issued CFC-free declaration

1989 Founded the Epson Information Science Vocational School (to promote the development of local IT talent)

1989 Established the Epson Management Philosophy

1990 Seiko Epson Corp. introduced a caregiver leave program

1991 Seiko Epson Corp. introduced a childcare leave program

1992 Became CFC-free

1994 Established a Basic Procurement Policy

1994 Established an Environmental Policy

1996 Established a Human Resource Development Policy

1999 Published an environmental report (later expanded and renamed the “Sustainability Report”)

2001 Established a Basic NESP Policy (an original program based on the three pillars of safety,

health, fire and disaster prevention)

2001 Established an Epson Code of Conduct

2004 Established a Corporate Citizenship Policy

2004 Joined the UN Global Compact

2004 Established the Personal Data Protection Policy

2005 Formed the Shinshu Energy Patrol Team

2005 Established a Human Rights and Labor Standards Policy

2005 Established Principles of Corporate Behavior

2007 Established a Basic Information Security Policy

2007 Acquired the “Kurumin” next-generation accreditation mark

2008 Established Environmental Vision 2050

2012 Hired outsiders to serve on the board of directors


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