Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Management
• Human Rights and Diversity
• Corporate Governance
• Stakeholder Engagement
• Sustainable Development Goals (SDGs)

Environmental Achievements

• Reduced CO2 emissions to 3,243.8 t-CO2 in FY2020 (48.3% reduction from benchmark)
• Reduced VOC usage to 1,556 kg in FY2020 (91.7% reduction)
• Switched from solvent paint to water paint to reduce VOCs
• Automation technologies contributing to CO2 emission reduction in construction and agriculture (estimated 1.1 million t-CO2/year and 600 thousand t-CO2/year respectively)

Social Achievements

• Increased percentage of female employees to 27% in FY2020 (from 24% in FY2019)
• Increased percentage of female managers to 15% in FY2020 (from 13% in FY2019)
• Implemented various support programs for childbirth and childrearing (Maternity Work Exemption Program, spousal maternity leave, Childcare Break Program, Child Care Leave)
• Expanded programs for flexible work styles (Short-time, Short-day Work Program)
• Donations to charitable causes and community initiatives globally

Governance Achievements

• Established a robust corporate governance structure with Independent Outside Directors and Corporate Auditors
• Established an internal reporting system for risk and compliance issues
• Established a Compensation Advisory Committee to ensure objectivity and transparency in director compensation
• Strengthened global export control system

Climate Goals & Targets

Environmental Challenges

• Total emissions in FY2020 exceeded the target due to higher-than-planned waste disposal
• Wear durability of conventional water-based paints

Mitigation Strategies

• Thorough efforts to control emissions to achieve target values
• Developed water-based paints with wear durability equal to or better than solvent paints

Supply Chain Management

Responsible Procurement

• Green Procurement Guidelines

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UNGC, SDGs

Certifications: ISO 14001

UN Sustainable Development Goals

• Various SDGs related to healthcare, agriculture, and infrastructure

Topcon strives to contribute to the SDGs through its core businesses.

Sustainable Products & Innovation

• Automation technologies for construction and farming machinery

Environmental Metrics

ESG Focus Areas

• Environmental Management
• Human Rights
• Labor Standards
• Diversity & Inclusion
• Sustainable Development Goals (SDGs)
• Corporate Governance

Environmental Achievements

• Reduced CO2 emissions by 63.4% to 2,300.7 t-CO2 in FY2021 (compared to a benchmark of 4,710.0 t-CO2)
• Reduced total emissions to 198.1 tons in FY2021 (below the target of 230.0 tons)
• Reduced VOC emissions to 1,967 kg in FY2021 (89.5% reduction from FY2000 levels)
• Switched from solvent paint to water paint to reduce VOCs
• ISO14001 certification maintained

Social Achievements

• Established Sustainability Committee chaired by President & CEO
• Supports Work Style Reform with programs for childbirth, childrearing, and flexible work arrangements
• Provided 3D OCT to NGOs in Australia to aid in preventing blindness among Aboriginal people
• Donated surveying instruments to Bridges to Prosperity in the US
• Improved potato production in Ireland using Auto Steering System and growth sensors

Governance Achievements

• Established Sustainability Committee to advise the Board of Directors
• Adheres to UN Global Compact principles
• ISO9001 and ISO13485 certifications

Climate Goals & Targets

Environmental Challenges

• High water usage in lens and metal processing
• Water risk at one manufacturing site (although no water used in manufacturing process at that site)

Mitigation Strategies

• Strict control and treatment of wastewater
• Monitoring water risks at all business sites
• Promoting water conservation and reducing water consumption

Supply Chain Management

Responsible Procurement

• Green procurement guidelines
• Business Partners’ Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact (UNGC), Sustainable Development Goals (SDGs)

Certifications: ISO 14001, ISO 9001, ISO 13485

Environmental Metrics

ESG Focus Areas

• Reducing the Impact on the Global Environment
• Promoting and Accelerating DX Solutions
• Respecting Human Rights
• Coexisting with the Local Community
• Being an Organization that Respects Individuality and Creates Together
• Providing Creative Products through Technological Innovation

Environmental Achievements

• Reduced CO2 emissions by 600,000 tons/year (estimated) through IT Construction solutions.
• Reduced CO2 emissions by 500,000 tons/year (estimated) through auto-steering systems for agricultural machinery.
• Introduced "Yamagata Hydroelectric Premium," carbon-free electricity, at its Headquarters and Shirakawa factories.
• Installed new solar power generation systems in the U.S. and Spain.
• Reduced VOCs by switching from solvent paint to water paint.
• Achieved a 40% reduction in greenhouse gas emissions in Japan compared to FY2013 (target by end of FY2030).

Social Achievements

• Collaborated with the Healthy Athletes® Program (HAP) to promote the health of athletes with intellectual disabilities.
• Provided eye care equipment to a French NGO for eye health maintenance in developing countries.
• Supported eye screening, glasses prescriptions, and eye examinations in Cambodia.
• Supported remote diagnosis services for eye disease screening in Western Australia for Aboriginal people.
• Participated in Japanese government activities for electronic reference points development and utilization in Thailand.
• Achieved 26.4% female graduate recruits in FY2023 (target at least 30%).

Governance Achievements

• Established TOPCON Corporate Governance Guidelines.
• Established the Nomination and Compensation Advisory Committee.
• Established the Sustainability Committee.
• Conducts annual internal audits on export control.
• Receives an export control audit (external audit) every three years.
• Provides annual export control education for all officers and employees.

Climate Goals & Targets

Environmental Challenges

• Prolonged financial tightening in Europe and the U.S., resulting in stagnant housing construction market.
• Receding expectations of monetary easing in the U.S., Russia-Ukraine conflict, and geopolitical risk in the Middle East.
• Global labor shortages, aging population, disaster recovery, and infrastructure enhancement needs.
• Soaring cost of raw materials and labor due to inflation.
• Global shortage of ophthalmologists.

Mitigation Strategies

• Structural reforms in the Positioning Business to maximize organizational efficiency.
• Consolidated sales companies and logistics hubs in Europe, streamlined sales organizations in North America and Asia.
• Expanding the factory at Topcon Yamagata and the German factory.
• Strategic M&A to acquire technology (e.g., Satel Oy for radio communications technology).
• Investing in growth areas (R&D, M&A).

Supply Chain Management

Responsible Procurement

• Business Partners' Code of Conduct
• Green procurement

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity of extreme weather events
• Rising temperatures
• Changes in precipitation patterns

Transition Risks

• Introduction of carbon tax
• Tightening of decarbonization regulations
• Restrictions on the movement of people and goods
• Changes in reputation

Opportunities

• Increased demand for energy-saving products and services
• Advancement of next-generation technologies
• Increased demand for products and services that address climate change

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001, ISO 9001, ISO 13485

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• IT Construction solutions
• Auto-steering systems for agricultural machinery
• Environmentally conscious products

Awards & Recognition

• DX Grand Prix 2023
• DX Platinum Companies 2024-2026