Environmental Policy and Strategy

Basic Approach and Policy

The Olympus Group's environmental initiatives are founded on its Corporate Philosophy, the Olympus Global Code of Conduct and the Environmental Health and Safety Policy. The Olympus Global Code of Conduct sets out our policy on the environment and the actions required. The objectives are described with clarity and detail in the Environmental Health and Safety Policy.

* In May 2015, we published the Olympus Group Environmental Policy. This was based on the Olympus Group Environmental Charter adopted in August 1992, to which we added aspects on both environmental protection and economic growth. This Environment Policy was then converted into the Environmental Health and Safety Policy in April 2021, by incorporating environmental health and safety policies to comprehensively manage our EHS activities.

Environmental Health and Safety Policy

Promotion Structure

In the Olympus Group, the CEO and the CAO are appointed as the top executive officers for the environment. Also, the Human Resources Head, who manages human resource development and general affairs including matters related to the environment, health and safety (EHS), serves as the top management for environmental affairs for the entire Group. Under the leadership of the Human Resources Head, the EHS division is responsible for developing Environmental Health and Safety Policy for the entire Group, as well as planning and promoting environmental measures. The division also monitors environmental initiatives across the entire Group, such as the progress of energy reduction targets and implementation status of environmental measures.
We have environmental management divisions for each business division and Group company. The EHS division is responsible for environmental management for the entire Group. Since FY2015, the EHS division has created an information platform for the entire Group to enable efficient gathering of information on environmental initiatives at various global sites that are essential to environmental management, as well as environment-related data and the status of these sites in complying with laws and regulations. In FY2021, the Olympus Group obtained ISO 14001 multi-site certification, which covers 12 group companies in Japan and Asia, including the EHS division, to reinforce the group's environmental governance and streamline the environmental management.
To address environmental issues promptly and appropriately, we aim to globally expand the scope of this ISO 14001 multi-site certification.

Environmental Management Structure

Environmental Management Structure / CEO/CAO (Highest Environmental Responsible Officer) / Human Resources Head (Environmental Management Officer) / EHS Management Division / Regional Headquarters (Japan, Americas, Europe/Middle East, Asia/Oceania) / Subsidiaries/Facilities

Status of Acquiring ISO14001 Certification in Olympus Group

(Name of sites and offices are as they were at time of the certification.)

Sites/Office Date of Certification
Japan Olympus*4 Headquarters (Shinjuku)*1 August 2020
Sasazuka Facility*2 August 2020
Technology Research Center (Ishikawa) March 2000
Technology Research Center (Utsugi) March 2000
Technology Research Center (Takakura) February 2018
Nagano Facility (Tatsuno) February 1998
Nagano Facility (Ina) May 2014
Shirakawa Facility October 1998
Olympus Medical Systems*4 Technology Research Center (Ishikawa) March 2000*3
Technology Research Center (Utsugi) March 2000*3
Hinode Plant July 1998
Nagano Olympus*4 February 1998
Aizu Olympus*4 October 1998
Shirakawa Olympus*4 October 1998
Aomori Olympus*4 November 1998
Olympus Terumo Biomaterials*4 Mishima Plant August 2020
R&D Center August 2020
Olympus Logitex*4 Distribution Center in Sagamihara November 2003
Olympus Medical Science Sales*4 March 2004
Americas Olympus Surgical Technologies America National Service Center December 2005
Olympus Scientific Solutions Americas Corp. July 2010
Olympus Scientific Solutions Technologies Inc. July 2010
Olympus NDT Canada Inc. July 2010
Olympus Corporation of the Americas
  • Center Valley Pennsylvania Regional Headquarters
  • Breinigsville Pennsylvania Distribution Center
September 2019
Olympus Surgical Technologies America
  • Bartlett Tennessee Manufacturing Facility
  • Brooklyn Park Minnesota Manufacturing Facility
  • Norwalk Ohio Manufacturing Facility
September 2019
Olympus Respiratory America
  • Redmond Washington Manufacturing Facility
September 2019
Europe/Middle East Olympus Winter & Ibe GmbH May 2001
KeyMed (Medical & Industrial Equipment) Ltd. March 2002
KeyMed (Ireland) Ltd. March 2002
Algram Group Ltd. January 2007
Medical Physics International Limited October 2012
Olympus Iberia S.A.U. September 2018
Asia Pacific Olympus (GuangZhou) Industrial Co., Ltd.*4 October 2004
Olympus Trading (Shanghai) Limited*4 February 2012
Olympus Vietnam Co.,Ltd.*4 April 2013
Olympus Australia Pty Ltd August 2017
Olympus New Zealand Limited August 2017

*1 The scope of certification includes the EHS division for Olympus Group and headquarters, and its medical business management functions.

*2 The scope of certification includes the administrative functions at Sasazuka Facility in Tokyo and the customer support for the medical products.

*3 It had been included in the scope of the ISO 14001 certification of Olympus Corporation until March 2020.

*4 It is included in the scope of the ISO 14001 multi-site certification of the Olympus Group.

Status of Acquiring ISO14001 Certification in Olympus Group

Mechanisms and Initiatives

Recognition of Environmental Issues

When establishing its Corporate Strategy and Business Plan, the Olympus Group identifies potential risks that could impact on our business operations. The high risks are then extracted, and their risk levels are assessed. Such high risks include business transition risks to keep up with changes in environmental regulations and technologies to adapt climate change, as well as physical risks associated with natural disasters.
Risk evaluation and prioritization are carried out in each organization assuming the impact on the business should the risk become reality, and the likelihood of such. According to the results of such evaluation and prioritization, business plans for the following year or multiple years are established to manage such risks. As for risks related to environmental regulations, the Quality Management function monitors the regulation trends concerning our products, and the EHS division of each company monitors the regulation trends concerning the business site. The state of compliance is regularly assessed while changes are implemented as required.
The management status of those risks posing a high impact on business operations are regularly monitored in each organization and monitoring results are reported to the Group Executive Committee and the Board of Directors. In response to the monitoring results, the CEO may revise the plan details if management efficacy is insufficient.

Compliance with Environmental Laws and Regulations (FY2021)

Olympus continuously develops and maintains internal rules and regulations adapted to statutory requirements, and trains environmental managers and related personnel, as well as monitoring and improving on-site management.
In FY2021, there were no violations or incidents related to environmental laws and regulations, excluding relatively minor issues. Also, there were no claims, penalties or fines.

Long-term targets and measures

The Olympus Group is fully aware that the recent climate change and ecosystem deterioration, brought about by excessive environmental impact and pollution, is the issue we need to address promptly. In May 2021, we added "carbon neutral society and circular economy" to the materiality items. The target of achieving carbon neutrality was set as reaching net zero CO2 emissions from our entire business operations by 2030. To achieve this target, we continue to improve production efficiency and implement further energy-saving measures, as well as gradually replacing the energy used in all of our business sites* with renewable energy sources by 2030. We also recognize the importance of environmental impact reduction across the supply chain and continue the transportation modal shift, logistical efficiency improvement, reduction in energy consumption and weight of products, and green procurement.

*Excluding rental properties, such as sales sites.

Major Environmental Activity Results in Fiscal 2021

Primary Policy Target Measures Achievements and Results in FY2021 FY2022 Target
Promotion of environmental management Enhancement of environmental governance system Improve effectiveness and efficiency of the Environmental Management System
  • Development of long-term environmental targets
  • Setting the goal of long-term net zero CO2 emissions by 2030
Development of the action plan toward carbon neutral
  • Maintenance of ISO 14001 certification
  • Maintenance of ISO 14001 certification for global major manufacturing sites (Europe, Americas, Australia)
  • Provided training for newly appointed environmental managers, and training to improve skills and compliance training for the Environmental Secretariat in Japanese sites (6 persons)
Ensure appropriate response to indicated points in internal environmental audit and ISO14001 certification external audit
  • Activities aimed at ISO 14001 multi-site certification
  • ISO 14001 multi-site certification external audit of 10 sites in Japan and three sites in Asia
Ensure appropriate response to indicated points in internal environmental audit, and ISO 14001 multi-site certification external audit
Environmental risk reduction activities Continue to improve the process to comply with environmental laws and regulations
  • Enhance inspection for compliance status with environmental laws and regulations
  • Education for environmental laws and regulations
  • Inspection on the waste management process and operational improvements at each site in Japan
  • Education on Waste Management and Public Cleansing Act by external experts in Japan (36 persons)
  • Education on waste and chemical substance management at Olympus Surgical Technologies America (101 persons)
  • Continue to improve the related internal rules for products and facilities
Expand target sites for the Environmental/health and safety risk assessment
Continue to improve the environmental regulatory compliance process for products and facilities
Environmental initiative throughout product life cycles Product-related initiatives Create Olympus Eco-Products
  • Create products that are environmentally conscious and tailored to business characteristics
  • Created new Eco-Products in all business units (9 new, bringing total to 664)
Continue to create products that are environmentally conscious and tailored to business characteristics
Facilities-related initiatives CO2 emission: reduce by 15% compared to FY2018
Energy consumption intensity: improve by 7.73% compared to FY2013
Renewable energy rate: more than 10%
Emission intensity: improve by 6% compared to FY2018
Water use intensity: improve by 6% compared to FY2018
  • Continue to implement improvements such as improving manufacturing processes, saving of energy and material resources and introduction of renewable energy, etc., in accordance to local characteristics
CO2 emission: reduce by 25.4%
Energy consumption intensity: improve by 12.3%
Renewable energy rate: 12.7%
Emission intensity: improve by 16.1%
Water use intensity: improve by 14.1%
CO2 emission: reduce by 21% compared to FY2018
Renewable energy rate: improve compared to FY2021
Emission intensity: improve by 7% compared to FY2018
Water use intensity: improve by 7% compared to FY2018

Response to Climate Change

The Olympus Group recognizes that climate change is a serious issue that threatens the global environment, as well as having grave implications for the group's business activities. Based on this awareness, we announced our endorsement of the Recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) in May 2021, as a part of our contribution to building a carbon neutral society-one of the materiality items in our Corporate Strategy. According to the TCFD's recommendations, the Olympus Group will disclose its climate-related financial information in a timely manner.

Governance

The Olympus Group endeavors to reduce the environmental impact from the entire value chain, including product development, procurement, manufacture, logistics, sales, and repair. Under the CEO and CAO, who are the highest environmental responsible officers, the Human Resources Head, who manages human resource development and general affairs, oversees matters related to the environment, health and safety (EHS) for the entire Group.
The EHS functional division creates an environmental action plan, including the reduction target of CO2 emissions, as well as monitoring the progress of action plan implementation across the entire Group. In response to the progress report, the highest environmental responsible officers (CEO and CAO) give instructions for any improvement required. The Board of Directors continues to monitor the status of the implemented climate change measures while receiving the related reports at least once a year. Also, to reinforce the commitment of management to the ESGs and climate change initiatives, 20% of the executive officers' performance-based stock remuneration, a part of our long-term incentive remuneration, is linked to the evaluation results of an external ESG evaluation organization.

Environmental Health and Safety Policy

Strategy

The Olympus Group identifies risks and opportunities related to climate change for the short-term, medium-term, and long-term periods by using scenario analysis. The influence of climate change on our business activities is analyzed based on the 2-degree scenario (holding the increase in the global average temperature to below 2℃ above pre-industrial levels) and the 4-degree scenario (where the increase is assumed to be up to 4℃ above pre-industrial levels), both of which were presented by the International Energy Agency (IEA). We identified that the major risks within the short-term period (one to five years) would be the suspension of factory operations or breakdown of the supply chain due to natural disasters; and the risks within the medium- to long-term period (10 to 20 years) would be an increase in business costs due to the introduction of carbon taxes and further tightening of CO2 emissions regulations.
Although such climate change risks could affect our corporate strategy and financial plan, we assume that the scope of influence would be limited. For example, the geographical location of our factories in terms of natural disasters, such as typhoons, can be classed as a physical risk. We confirmed that our factories are at low-risk locations and a business continuation plan for each site was created in case of emergency. As a supply chain risk, we have experienced closures of sales sites due to typhoons and flooding across the world. Still, the influence was limited. We also expect an increase in operational costs due to carbon taxes etc. as a transition risk. However, the percentage of energy costs in the factories among overall business costs is small, and, therefore, the impact on our business will be limited.
As a climate change opportunity, we will continue development of environmentally conscious products with energy-saving functions, taking the rising requirement for such products-which contribute to CO2 emissions reduction-as a business opportunity. However, we estimate the impact from this opportunity on our business will not be so large because the majority of our products are already small with low energy consumption, and the nature of our products and services are relatively independent from any impact from climate change.

Environmental Changes Risks Opportunities Measures
2℃ scenario Stronger regulatory action for a low carbon society

<Transition risks>

  • Increase in business costs due to carbon tax, carbon emissions trading and stronger regulatory action on CO2 emission by various countries
  • Reduction of business costs by energy-saving measures
  • Improvements in market competitiveness by development of environmentally conscious products
  • Improvements in evaluation by stakeholders
  • Improvements in energy efficiency
  • Wider use of renewable energy
  • Diversification of suppliers
  • Environmentally conscious design in the product/service design & development stage
  • Development and provision of products/services that contribute to resolving environmental issues in society
4℃ scenario Rise in temperature & increased extreme weather events

<Physical risks>

  • Supply chain disruption caused by growing scale of natural disasters, such as typhoons, floods, etc.

* The calculated financial influence was approx. 600 million yen/year based on the carbon tax figures in the World Energy Outlook 2020 by the IEA (2020).

Risk Management

The Olympus Group identifies, assesses, and manages climate change and other environmental risks within the group-wide risk management system that covers all the risks that could affect our business. For more details, see Recognition of Environmental Issues.

Recognition of Environmental Issues

Indexes and Targets

The Olympus Group set two targets in 2021. One is net zero CO2 emissions from its business activities by 2030, and the other is switching electricity procurement for all of its business activities to renewable energy sources also by 2030.
The results in FY2021 were a 25.4% reduction in CO2 emissions (compared to FY2019) and the percentage of renewable energy usage reached 12.7%. We continue our production efficiency improvements, energy-saving activities, and introduction of renewable energy in business sites across the world. We also pursue the development of environmentally conscious products, green procurement, and improvement of logistical efficiency in order to reduce CO2 emissions across the life cycles of our products.

Response to Water Risk

Regarding our water risk management, an issue in which the world is taking a great interest, we confirmed that none of our major development and production sites are located in areas where the water risk is extremely high. For this analysis, we used a water risk assessment tool created by the World Resources Institute (WRI)-the Aqueduct Water Risk Atlas, which covers various aspects such as physical water stress and regulatory risk. Although the influence of water risks on our business is low, we are adopting various measures, such as choosing low water risk locations for business sites, reducing water usage in our business activities, appointing drainage system managers, and regular inspections of drainage water.

Number of Major Sites in Different Risk Levels as Defined by the Aqueduct Water Risk Atlas
Low Low - Medium Medium - High High Extremely High
2 16 2 1 0
Total Water Usage by the Result of Water Risk Evaluation

Graph : Total Water Usage by the Result of Water Risk Evaluation

Biodiversity Conservation

There is a concern that the loss of biodiversity will have a serious impact on the global environment and our lives.
The Olympus Group is working to conserve biodiversity, including the management of water use and wastewater and the maintenance of green spaces, through cleanup and forest conservation activities in areas surrounding its facilities.

Green Procurement

Olympus published the "Olympus Group Green Procurement Standard" in 2001.
The Green Procurement Standard, which is also posted on our website, explains the Olympus Group's approach to its environmental activities to all suppliers.
In addition, in our corporate survey that we conduct once a year targeting major suppliers around the world with whom we have ongoing business, we verify whether the suppliers have acquired ISO 14001 certification, reduced CO2 emissions, water use and waste, and what measures they have taken against chemical substances.
In this way, we are working to raise the level of our environmental activities with suppliers.

Olympus Group Green Procurement Standard

Environmental Education and Awareness Activities

The Olympus Group recognizes the importance of greater environmental awareness by each and every employee and full participation in environmental activities under the Environmental Health and Safety Policy. We are running more environmental awareness activities such as the Olympus Environment Month, a global group-wide event. In FY2021, an environmental e-learning program was conducted involving all Group employees, to promote group-wide awareness of important environmental issues, such as climate change and marine plastic pollution, and the state of environmental activities throughout the Group. We held events adapted to regional characteristics to promote environmental awareness in our major sites with COVID-19 countermeasures implemented.
We have also introduced special training programs to improve our environmental management system and implement it effectively. These include programs on compliance with environmental laws and regulations, and ISO 14001 internal audits at facilities around the world.

Major Environmental Education Programs
(Olympus and its Japan subsidiaries/FY2021)

Target Purpose/Description Number of Participants
Environmental managers Understanding the responsibilities and roles of environmental managers (key points in compliance with environmental laws and regulations, and development of an effective EMS) 5
Environmental Secretariat staff at facilities Training to improve skills for environmental officers (Understanding new developments in environmental laws and regulations, and practical application of the Revised Energy Conservation Act) 1
Waste management officers Training on the Waste Management and Public Cleansing Act (Understanding of the Act and practical application of waste management) 36
New employees Environmental education for new employees (Understanding environmental issues and corporate responsibility, as well as the environmental initiatives by Olympus Group) 58