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Environmental and Social Material Issues

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

Material Issues for Casio FY2022 Targets and KPI FY2022 Performance Evaluation FY2023 Targets and KPI
Realizing a low-carbon society★ Reduce the greenhouse gas emissions (Scopes 1 and 2) of group companies by 9.5% compared to FY2019, based on a market-based standard Reduced 26.4% compared to FY2019 〇 Reduce the greenhouse gas emissions (Scopes 1 and 2) of Casio Group by 12.7% compared to FY2019, based on a market-based standard
Scope 3: Start survey of supply chain outside Japan and move further forward with survey of supply chain in Japan Conducted supply chain survey with carefully examined content. Started survey of supply chain outside Japan as part of this 〇 Move forward with survey of supply chain
Building a Recycling Society★ Maintain the Casio Green Star product sales ratio at 80% or more Casio Green Star Product sales ratio: 76% ◎ Raise the Casio Green Star product sales ratio at 80% or more

Reduce the amount of waste generated by entire Casio Group (including valuable waste) by at least 2% compared to FY2020

Achieve a recycling rate for Casio Group site waste of at least 95%

Reduced waste generated by Casio Group (including valuable waste) by 28% compared to FY2020

Recycling rate for Casio Group:  96%

 △

Reduce the amount of waste generated by entire Casio Group (including valuable waste) by at least 3% compared to FY2020

Achieve a recycling rate for Casio Group site waste of at least 96%
Reduce water usage for Casio Group by at least 2% compared to FY2020 Reduced water usage for Casio Group by 43% compared to FY2020 〇 Reduce water usage for Casio Group by at least 3% compared to FY2020
Living in harmony with nature Ensure that 80% of product catalog paper used in Japan is paper from certified forests 70.4% △ Examine re-setting of medium and long-term targets
Continue to re-examine medium and long-term targets, including the definition of sustainable paper Collected and analyzed world trends  △
Promoting CSR procurement (1) Implement CSR education at Casio sites and at suppliers, and implement onsite audits at a total of 10 suppliers in China and Thailand Implemented CSR education at Casio sites and at suppliers
Did not implement onsite audits in China and Thailand due to COVID-19 pandemic		 〇 (1) Implement CSR education at Casio sites and at suppliers, and implement onsite audits at a total of 12 suppliers in China and Thailand
(2) Conduct CSR surveys
Conduct CSR surveys of all suppliers, and collect surveys from all of them		 Conducted CSR surveys of 434 suppliers worldwideSurveys collected from 433 of 434 companies 〇 (2) Conduct CSR surveysConduct CSR surveys of all suppliers, and collect surveys from all of them
Providing supportive workplace environments and promoting diversity & inclusion 
Women
  • 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)
Women
  • Achieved childcare leave usage rate for eligible employees of 100%
  • Achieved a rate of employee return after childcare leave of 100%
    (including contract employees)
 ◎
Achieve birth and childcare leave usage rate for eligible male employees of 50% (36% at present)
Achieve a female employee recruitment rate of 25% or more 11 of the 44 employees who joined the company in April 2022 were women (25.0%) △ Achieve a female employee recruitment rate of 25% or more
Achieve legally mandated employment rate of people with disabilities at 2.3% or more Employment rate of people with disabilities: 2.33% (as of April 1, 2022) 〇 Achieve legally mandated employment rate of people with disabilities at 2.3% or more
Follow-up measure implementation rate for annual checkups: 80% or more
  • Rate of regular heath checkups: 99.9%
  • Follow-up measure implementation rate: 76.9%
Reason 1
The implementation of follow-up measures was delayed due to the longer period for regular checkups because of the COVID-19 pandemic
Reason 2
There were some employees who were reluctant to visit medical institutions due to the COVID-19 pandemic
 		 △

Raise awareness of health

  • Rate of regular heath checkups: 100%

Follow-up measure implementation rate for annual checkups: 80% or more
  • Ascertain the actual mental illness rate
  • Implement e-learning training for new employees and managers
  • Implement training for new managers
  • Implement skill improvement training by job type for young employees
  • Ascertained the mental illness rate (on a consolidated basis)
  • Illness rate 1.1%
  • Leave rate: 0.6%
  • Mental illness rate on a consolidated basis (fiscal year end): 0.5%
  • e-learning for new employees (November)
  • Provided training to new managers (August, January)
  • Provided follow-up training for second-year employees (December, January)
  • Provided e-learning training for all managers (February)
 ◎
Measures to support employees with mental health issues
  • Ascertain the actual mental illness rate
  • Implement e-learning training for new employees and managers
  • Implement training for new managers
  • Provide follow-up training for second-year employees
  • Provide e-learning training for all managers
  • Ascertain the rate of employees with high stress (February)
  • Consultations provide by industrial physicians to interested employees (February to March)
  • Ascertain health risk rates by department (March)

Implement workplace analysis and feedback (March)
  • Stress check participation rate: 92.2%
  • 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)

Held consultations for departments in need of improvement (from July)

 ◎
  • Ascertain the rate of employees with high stress (February)
  • Consultations provide by industrial physicians to interested employees (February to March)
  • Ascertain health risk rates by department (March)
  • Implement workplace analysis and feedback (March)

Hold consultations for departments in need of improvement (from July)
Respecting human rights (1) Summarize human rights checkups implemented in the past and formulate policy for implementing such checks for fiscal 2023 and beyond Reviewed the results of human rights checkups implemented from 2016 onward as well as the human rights check tool 〇 Implement human rights checkups and feedback at all production group companies
(2) Implement human rights education for Sustainability Leaders Shared information on Casio’s human rights initiatives including a lecture on the topic of Business and Human Rights provided by non-profit organization ACE at the meeting for Sustainability Leaders in August 2021 〇 (2) Implement human rights education for Sustainability Leaders
* 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

Environment

Sadayoshi Tobai
Conservation Director, WWF Japan

Labor Practices

Hiroki Sato, Professor
Chuo Graduate School of Strategic Management

Human Rights

Makoto Teranaka, Visiting Professor
Tokyo Keizai University

Society

Kaori Kuroda, Executive Director
CSO Network Japan

Product Responsibility

Kikuko Tatsumi, Executive Advisor
Nippon Association of Consumer Specialists

│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
Internal External
Building a recycling society Products and services ● ●
Realizing a low-carbon society Energy ● ●
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 2022. Continuing in fiscal 2023, the company is addressing and reviewing its current material issues while re-confirming its vision for fiscal 2030, its recognition of medium- and long-term environmental impacts, and the strategic direction for each business and function.

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