Environmental and Social Material Issues

│Approach

As a company with a global reach, it is extremely important for Casio to pursue initiatives that meet the expectations of the international community. The worldwide movement to build more sustainable societies continues to evolve, year by year. Companies today are expected to carry out strategic initiatives as part of their core business activities. Casio is no exception. Even more so, as a company known for “creating something from nothing,” Casio must strategically implement social contribution measures that are integrated with its business activities. Responding to these trends, Casio has specified the issues with the greatest significance (materiality) to its practice of social responsibility, in accordance with the G4 Sustainability Reporting Guidelines issued by GRI in May 2013. Going forward, the company will take action on each of the specified issues, and will apply the plan-do-check-act (PDCA) cycle to these efforts to ensure the highest level of socially responsible management.

KPI and Performance (Items marked ★ are environmental action targets as well)

Evaluation　◎: All targets met, ○ : Most targets met, △ : Remaining issues outweigh results, × : No progress made

* Performance was not evaluated due to revision of the criteria for calculation during the fiscal year

Materiality specification process

Step 1: Specification of issues with significance to the company
In fiscal 2015, Casio made a detailed list of CSR issues with reference to its business areas, and prioritized them based on relevance to its own activities.

Step 2: Specification of issues with significance to stakeholders
In fiscal 2016, Casio sent a questionnaire to its stakeholders and conducted interviews in order to organize the issues by their significance to stakeholders.

Step 3: Summarization and finalization
Based on the results of the processes in steps 1 and 2, in fiscal 2016 Casio formally specified its material issues with the approval of the director in charge of CSR.

Step 4: KPI formulation and implementation
Casio formulated key performance indicators (KPI) with reference to the specified material issues, thereby enabling each responsible department to evaluate its CSR initiatives quantitatively. In fiscal 2017, Casio is implementing related activities using the plan-do-check-act (PDCA) cycle.

│Step 1: Specification of issues with significance to the company

Regarding the 46 “aspects” indicated in the G4 Sustainability Reporting Guidelines from GRI, Casio analyzed the risks to the company for each aspect and the degree of impact that they would have on Casio. The aspects were used to evaluate matters at various levels, including business segments, value chains for each segment, and regions of operation. This shaped the identification of the most significant aspects. The departments charged with CSR responsibilities also examined the identified aspects, and finalized them for use in their own processes.

│Step 2: Specification of issues with significance to stakeholders

Based on the G4 Sustainability Reporting Guidelines, the 46 aspects were divided into six areas: economic, environment, labor practices, human rights, society, and product responsibility. The importance of each area was then identified through dialogue with stakeholders closely related to Casio. Questionnaires were also given to customers and employees, and aspects with high significance to stakeholders were identified. In addition, questionnaires and interviews with experts were carried out on the respective topics. These processes enabled Casio to identify society’s expectations, resulting in a list of issues with significance to Casio stakeholders.

Economic

Takeshi Mizuguchi, Professor
Takasaki City University of Economics

More detail

Environment

Sadayoshi Tobai
Conservation Director, WWF Japan

More detail

Labor Practices

Hiroki Sato, Professor
Chuo Graduate School of Strategic Management

More detail

Human Rights

Makoto Teranaka, Visiting Professor
Tokyo Keizai University

More detail

Society

Kaori Kuroda, Executive Director
CSO Network Japan

More detail

Product Responsibility

Kikuko Tatsumi, Executive Advisor
Nippon Association of Consumer Specialists

More detail

│Step 3: Summarization and finalization

By mapping the aspects identified in steps 1 and 2, Casio specified eight material issues, with a focus on aspects given a high priority. Finally, with the approval of the director in charge of CSR, the issues with medium-term materiality to the Casio Group were defined.

Material Issues for Casio

Material Issues for Casio	Material Aspects	Boundary
Material Issues for Casio	Material Aspects	Internal	External
Building a recycling society	Products and services	●	●
Realizing a low-carbon society	Energy	●	●
Realizing a low-carbon society	Emissions	●	●
Living in harmony with nature	Biodiversity	●	●
Promoting CSR procurement	Supplier environmental assessment	●	●
	Supplier assessment for labor practices	●	●
	Supplier human rights assessment	●	●
	Supplier assessment for impacts on society	●	●
Providing supportive workplace environments and promoting diversity	Employment	●
	Diversity and equal opportunity	●
Respecting human rights	Investment	●	●
	Non-discrimination	●	●
	Freedom of association and collective bargaining	●	●
	Child labor	●	●
	Forced or compulsory labor	●	●
	Human rights assessment	●	●
	Human rights grievance mechanism	●	●
Preventing corruption	Anti-corruption	●	●
Maximizing economic performance	Economic performance	●	●

│Step 4: KPI formulation and implementation

KPI Formulation

Casio investigated key performance indicators (KPI) with reference to the specified material issues, in order to enable the responsible departments to evaluate their initiatives quantitatively. With the approval of the CSR Officer, the KPI were finalized, and efforts are underway in fiscal 2017 to ensure high performance.

* For more information on KPI, see "KPI and Performance" above.

Materiality Review

Casio continually worked to improve its efforts to address conventional material issues up through fiscal 2021. Likewise, in fiscal 2021, the company plans to continue addressing its current material issues, as well as reviewing the overall approach it takes to material issues, taking into consideration the shifts occurring in the way materiality is viewed in today’s social context.

Casio’s Sustainability Concept

Corporate Creed and Sustainability Management

Medium-Term Priority Strategies for Sustainability

Environmental and Social Material Issues

Information Disclosure Based on TCFD Recommendations

Material Issues for Casio	FY2021 Targets and KPI	FY2021 Performance	Evaluation	FY2022 Targets and KPI
Realizing a low-carbon society	Reduce the greenhouse gas emissions (Scopes 1 and 2) of group companies by 6.3% compared to FY2019, based on a market-based standard	Reduced 20.3% compared to FY2019	〇	Reduce the greenhouse gas emissions (Scopes 1 and 2) of Casio Group by 9.5% compared to FY2019, based on a market-based standard
Building a recycling society	Maintain the Casio Green Star product sales ratio at 76% or more	Casio Green Star Product sales ratio: 78%	◎	Maintain the Casio Green Star product sales ratio at 80% or more
	Reduce the amount of waste generated by entire Casio Group by at least 1% compared to the previous fiscal year Achieve a recycling rate for Casio Group site waste of at least 95%	Reduced waste generated by Casio Group by 13.7% compared to the previous fiscal year Recycling rate for Casio Group: 87.1%	△	Reduce the amount of waste generated by entire Casio Group by at least 1% compared to FY2020 Achieve a recycling rate for Casio Group site waste of at least 95%
	Reduce water usage for Casio Group by at least 1% compared to FY2019	Reduced water usage for Casio Group by 16.7%	◎	Reduce water usage for Casio Group by at least 2% compared to FY2020
Living in harmony with nature	Ensure that 80% of product catalog paper used in Japan is paper from certified forests	74%	△	Ensure that 80% of product catalog paper used in Japan is paper from certified forests
Living in harmony with nature	Re-examine medium and long-term targets, including the definition of sustainable paper	Collected and analyzed world trends	△	Continue to re-examine medium and long-term targets, including the definition of sustainable paper
Promoting CSR procurement	(1) Implement CSR education at Casio sites and at suppliers, and implement onsite audits in China	Implemented CSR education at Casio sites and at suppliers, and implemented onsite audits at 8 suppliers in China	〇	(1) Implement CSR education at Casio sites and at suppliers, and implement onsite audits at a total of 10 suppliers in China and Thailand
Promoting CSR procurement	(2) Conduct CSR surveys	Conducted CSR surveys of 455 suppliers worldwide Surveys collected from 454 of 455 companies	〇	(2) Conduct CSR surveys Conduct CSR surveys of all suppliers, and collect surveys from all of them
Providing supportive workplace environments and promoting diversity	Maintain childcare leave usage rate for eligible employees of 90% or more Maintain a rate of employee return after childcare leave of 90% or more (including contract employees)	Achieved childcare leave usage rate for eligible employees of 100% Achieved a rate of employee return after childcare leave of 100% (including contract employees)	◎	Maintain childcare leave usage rate for eligible employees of 90% or more Maintain a rate of employee return after childcare leave of 90% or more (including contract employees)
	Achieve a female employee recruitment rate of 25% or more	5 of the 30 employees who joined the company in April 2021 were women (16.7%)	△	Achieve a female employee recruitment rate of 25% or more
	Maintain legally mandated employment rate of people with disabilities at 2.3% or more	Employment rate of people with disabilities: 2.29% (as of April 1, 2021)	〇	Maintain legally mandated employment rate of people with disabilities at 2.3% or more
	Follow-up measure implementation rate for annual checkups: 80% or more	・Follow-up measure implementation rate: 74.3% Reason 1 The implementation of follow-up measures was delayed due to COVID-19-influenced delays to regular checkup visits Reason 2 There were employees who rejected the offer of visits to medical institutions for follow-up measures due to COVID-19 pandemic	△	Follow-up measure implementation rate for annual checkups: 80% or more
	Ascertain the actual mental illness rate Implement e-learning training for new employees Implement training for new managers Implement skill improvement training by job type for young employees	Mental illness rate on a consolidated basis (fiscal year end): 0.5% Implement e-learning training for new employees (October) Implement training for new managers（September, January） Implement skill improvement training by job type for young employees (November)	〇	Ascertain the actual mental illness rate Implement e-learning training for new employees Implement training for new managers Implement skill improvement training by job type for young employees
	Ascertain the rate of employees with high stress (February) Consultations provide by industrial physicians to interested employees (February to April) Ascertain health risk rates by department (April) Implement workplace analysis and feedback (May)	Ascertained the rate of employees with high stress (February) Consultations provided by industrial physicians to interested employees (February to March) Ascertained health risk rates by department (March) Implemented workplace analysis and feedback (March)	〇	Ascertained the rate of employees with high stress (February) Consultations provided by industrial physicians to interested employees (February to March) Ascertained health risk rates by department (March) Implemented workplace analysis and feedback (March)
Respecting human rights	(1) Check human rights issue and implement feedback: All sales group companies (100%)	Implemented survey for 27 sales sites in and outside Japan in June 2020, and responses received from all. Feedback given as well. (100%)	〇	(1) Review checks for human rights issues implemented in the past and formulate a promotion policy for fiscal 2023 and beyond.
	(2) Implement human rights education for Sustainability leaders:	Implementation postponed due to major internal organizational reform and the impact of COVID-19.	×	(2) Implement human rights education for Sustainability leaders:
	(3) Develop a grievance mechanism; establish the mechanism and put into full operation	Re-examined the move to an operational structure capable of a more suitable response.		ー

Environmental and Social Material Issues