Sustainable Products
& Factories

Sustainable manufacturing that crafts a new tomorrow

Responsible Manufacturing
for Now and the Future

The CITIZEN Group has sincerely been involved in manufacturing for over 100 years, based on its corporate philosophy, "Loved by citizens, working for citizens."

Human rights and compliance issues have become major social issues in recent times.
We believe that it is important to embody an approach that contributes not only to the environment but also to solving various social issues and creating sustainable corporate value.

Accordingly, in 2019 The CITIZEN Group launched a new initiative called the concept of "Sustainable Products and Sustainable Factories."

Through sustainable products and business processes, we aim to create an enriched environment and society and grow together.

Towards a new tomorrow,
we will work to realize the concept of "Sustainable Products and Factories" throughout the entire value chain, including our suppliers.

Sustainable Products
Products and services that contribute to business growth while helping solve social issues linked to The CITIZEN Group's materiality*
Target

Increase the ratio of "sustainable products" to the total group sales to 30% or more in FY2027.

  • Responding to climate change and contributing to a recycling-oriented society / Contributing to better quality of life / Providing solutions in the industrial sector
Sustainable Factories
A sustainable factory is The CITIZEN Group's sustainable production facility or office (or business process) that comprehensively considers human rights, the environment, the working environment, compliance, BCP,* and productivity improvement.
Target

Realize the "sustainable factory" concept by 2030.

  • BCP (Business Continuity Plan): A business continuity plan is formulated during normal times of operation to prepare for the possible effects of large-scale disasters on business activities. Such a plan stipulates the systems, functions, and procedures necessary to continue supplying products and services and to enable early recovery.

Sustainable Products Initiatives

Target

Increase the ratio of "sustainable products" to the total group sales to 30% or more in FY2027.

Sales ratio progress
FY2024:
24%
  • The ratio of "sustainable products" to total group sales
30% or more in FY2027

Sustainable Products Certification Criteria

The Sustainable Products Certification System is an in-house system common to The CITIZEN Group, under the supervision of external experts in the formulation of certification criteria and the appropriateness of the items to be evaluated.
Based on the corporate philosophy, we certify products and services that are consistent with our business strategy, including our past sustainable initiatives, and our materiality as sustainable products.
Out of the five material issues identified by The CITIZEN Group, the following three need to be addressed through its products and services: "Responding to Climate Change and Contributing to a Recycling-Oriented Society," "Contributing to Better Quality of Life," and "Providing Solutions in the Industrial Sector."
The Group has set its criteria for certification as an essential requirement for all Group companies to meet one or more of these material issues, taking into consideration the uniqueness and superiority of business strategies, products, and services in each business.

Corporate Philosophy:"Loved by citizens, working for citizens.

The certification criteria consist of contributing factors linked to materiality.
Specific certification criteria have been set for each business and are judged objectively.

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Materiality Classification Contributing factors (e.g.) Related SDGs
Responding to Climate Change and
Contributing to a Recycling-Oriented Society
Response to climate change
  • Energy saving and longer product life
  • Design and service systems that enable product disassembly and repair
  • Use of sustainable raw materials, etc.
  • 13 気候変動に具体的な対策を
  • 14 海の豊かさを守ろう
  • 15 緑の豊かさも守ろう
Contributing to a recycling-oriented society
Contributing to Better Quality of Life Contribution to diverse lifestyles
  • Products that are easy to use for all people, including those with disabilities
  • Support for health management, etc.
  • 3 全ての人に健康と福祉を
  • 4 質の高い教育をみんなに
  • 5 ジェンダー平等を実現しよう
Contribution to medical care and healthcare
Providing Solutions in the Industrial Sector Provision of labor-saving and automation solutions
  • Addressing labor shortages through labor-saving and automation solutions
  • Responding to the challenge of passing on skills through digitalization
  • Remote maintenance support, etc.
  • 8 働きがいも経済成長も
  • 9 産業と技術革新の基盤をつくろう
Contribution to mobility

The Sustainable Products Certification System and the certification criteria for each business were approved by the Group Management Committee in 2023 after discussions at the Sustainability Committee, based on the opinions of external experts.
In the future, the certification criteria will be reviewed as necessary in response to changes in social conditions, and any changes to the criteria shall be discussed and approved by the Sustainability Committee.

Introduction of Sustainable Products

CITIZEN L

Creating sustainable beauty
that goes beyond appearance

See the products development story.

Examples of Sustainable Products

  • Watches
    • Energy saving, Longer product life
    • Design and service systems that enable product disassembly and repair
    • Use of sustainable raw materials
  • Movements
    • Energy saving, Longer product life
    • Design and service systems that enable product disassembly and repair
  • Machine Tools
    • EcoBalance Machine
      (Ecobalance-certified machine equipped with technologies for reduced CO2 emissions, reduced operation time, and improved productivity)
    • Addressing labor shortages through labor-saving and automation solutions

Sustainable Factories Initiatives

Target

Realize the "sustainable factory" concept by 2030.

Roadmap for Realizing the "Sustainable Factory" Concept

The CITIZEN Group as a whole aims to realize the "sustainable factory" concept by 2030.

Specifically, we have formulated a roadmap and a vision of what we aim to achieve in 2030 in the areas of "response to climate change," "contribution to a recycling-oriented society," "enhancement of quality compliance," "respect for human rights and labor practices," and "promotion of sustainable procurement." We are working on this roadmap and vision across the entire Group, updating them as necessary. Please refer to the links for each category for the progress over the past years.

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Materiality Classification / Target in 2030 Key indicators for 2030
Responding to climate change and contributing to a recycling-oriented society Response to climate change
  • Reduce greenhouse gas emissions in the value chain.
  • CO2 emissions (Scopes 1, 2): 50.4% reduction (compared to FY2018).
  • CO2 emissions (Scope 3, Category 1 + Category 11): 30% reduction (compared to FY2018).
  • Water withdrawal: 35% reduction (compared to FY 2018) / Recycling rate (waste reuse rate): 90%
Contribution to a recycling-oriented society
  • Promote sustainable resource use.
Fulfilling social responsibility Enhancement of quality compliance
  • Comply with the Group Quality Code of Conduct.
  • Zero violations of the Group Quality Code of Conduct
Respect for human rights and labor practices
  • Comply with the Group Human Rights Policy.
  • Comply with laws related to work style reforms (Japan).
  • Entrench the Group Basic Health and Safety Policy.
  • Establishment of human rights due diligence
  • Zero work-related lost-time injuries
Promotion of sustainable procurement
  • 100% of the Group and 70% of major direct materials suppliers* comply with the CSR Procurement Guidelines.
  • Suppliers in the top 90% in terms of procurement volume and suppliers who handle important items that cannot be substituted
  • 100% of major suppliers respond to the Self-Assessment Questionnaire (SAQ)*.
  • UN Global Compact self-assessment survey. It asks whether there are policies, systems, initiatives, and corrections in place for a total of nine areas, including human rights, the environment, the working environment, and quality.

Progress of Sustainable Factories

Responding to climate change and contributing to a recycling-oriented society
Enhancement of Quality Compliance
Respect for Human Rights and Labor Practices
Promotion of Sustainable Procurement

Responding to climate change and contributing to a recycling-oriented society

Target FY2024

Hold lectures on renewable energy for managers, revise the renewable energy ratio target, and consider diversifying renewable energy procurement methods.

KPI FY2024
  • CO2 emissions
    (Scopes 1, 2): 25.2% reduction*
  • Renewable energy ratio:31.2%
Achievement status FY2024
  • CO2 emissions
    (Scopes 1, 2): 47.1% reduction*
    Achievement rate: Over 100%
  • Renewable energy ratio:26%
    Achievement rate: 84%
  • Compared to FY2018

Enhancement of Quality Compliance

Target FY2024

Conduct effective monitoring of compliance with the Quality Code of Conduct at all sites (risk identification to correction).

KPI FY2024
  • Implement a multilingual e-learning program.
  • Review the roadmap for FY2025 and beyond.
  • Conduct awareness activities for the Quality Code of Conduct.
Achievement status FY2024
  • Implement a multilingual e-learning program.
    Materials prepared (scheduled for implementation from next year onwards)
  • Review the roadmap for FY2025 and beyond.
    Implemented
  • Conduct awareness activities for the Quality Code of Conduct.
    Implemented

Respect for Human Rights and Labor Practices

Target FY2024

Establish human rights due diligence (ranging from identification of negatives to formulation of targets and plans), respond to and comply with labor-related laws and regulations, and promote the Basic Health and Safety Policy.

KPI FY2024
  • Comply with laws and regulations regarding overtime work and acquisition of annual paid leave.
  • Implement a human rights e-learning program (Japan).
  • Identify potential human rights risks.
Achievement status FY2024
  • Comply with laws and regulations regarding overtime work and acquisition of annual paid leave.
    Regular surveys, monitoring by committees, and exchange of opinions implemented
    *One non-conformity (corrected)
  • Implement a human rights e-learning program (Japan).
    Implemented (Japan)
  • Identify potential human rights risks.
    Identified

Promotion of Sustainable Procurement

Target FY2024

Strengthen responsible minerals procurement and promote digitalization of procurement survey.

KPI FY2024
  • Strengthen supplier engagement.
  • Prepare for digitalization for the Watch business (overseas) and Group companies.
Achievement status FY2024
  • Strengthen supplier engagement.
    Study sessions for practitioners by a leading company conducted / Feedback provided to suppliers reported to be unapproved smelters
  • Prepare for digitalization for the Watch business (overseas) and Group companies.
    Ready for deployment

Sustainable Factories Promotion Activities

Since the cooperation of our suppliers and the entire value chain is essential to realizing the "sustainable factory" concept, we are promoting activities to seek the understanding and cooperation of our stakeholders. We use the UN Global Compact Self-Assessment Questionnaire (SAQ) as a tool for awareness-raising activities and risk management. This SAQ asks whether there are policies, systems, initiatives, and corrections in place for a total of nine areas related to CSR, including corporate governance, human rights, the environment, the working environment, and quality. The basic content can be commonly used across all industries, and The CITIZEN Group conducts self-assessment surveys of all of its sites, including overseas offices, and of its major direct material suppliers.

Our Vision

The CITIZEN Group has set "Crafting a new tomorrow" as its long-term vision for 2030 and is promoting sustainable management.

"Sustainable factories" aim to create sustainable production facilities and offices that take into consideration not only environmental issues such as climate change but also social and economic issues such as human rights issues, labor practices, and productivity improvement. Meanwhile, "sustainable products" aim to increase the sales ratio of products and services that contribute to solving major social issues and to business growth. These are measures that will embody sustainable management and are core initiatives for realizing our long-term vision.

By promoting "sustainable products and factories," The CITIZEN Group aims to be a corporate group that delivers "peace of mind," "trust," and "impressive value," enriching not only the lives of people but also their hearts and passing that wealth on to the next generation.