Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Outsourcing manufacturing and assembly work leading to potential quality control issues and risks of legal/intellectual property violations by suppliers.
• Japan's and the global economy impacting demand, especially consumer spending.
• Downward pressure on product prices due to intensifying competition.
• Inability to launch popular new products quickly or facing competition from similar products.
• Changes in major customer strategies, product specifications, order cancellations, or schedule changes.
• Rapid technological development and changes in market needs leading to product obsolescence.
• Risks associated with international developments and overseas operations, including unpredictable legal changes.
• Potential issues with intellectual property, including competitor development of similar technologies, patent denial, misuse/violation of intellectual property rights, inadequate legal protection, and potential violation of other companies' intellectual property rights.
• Risks related to alliances, mergers, and strategic investments due to changes in business partners' environments.
• Fluctuations in foreign exchange rates and interest rates impacting gross profit and operating costs.
• Risks from cyclical trends in the IT sector, procurement uncertainties, decline in securities value, changes in accounting standards for retirement benefits, and damage from natural disasters or accidents.
• Potential information leaks impacting business, financial position, and earnings performance.
• Potential product defects and lawsuits despite strict quality control.

Mitigation Strategies

• Internal regulations governing the use of personal and confidential business information and employee training programs to raise awareness of information control.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced overall Casio Group FY2018 CO2 emissions by 7.95% compared to FY2013 levels
• FSC© certified paper utilization rate of 65% and higher for our domestic product catalogs
• Operating site waste product recycling rate of 92% and higher
• Promoting mercury-free projectors to reduce environmental load

Social Achievements

• Promoting diversity to ensure all employees, including women, elderly persons, persons with disabilities, and foreign citizens, to greater maximize their potential
• Maintaining childcare leave utilization rate at 90% and higher
• Maintaining childcare leave return rate at 90% and higher
• Proactive hiring of persons with disabilities, achieving mandated hiring rates
• Providing dedicated human rights training for CSR leaders

Governance Achievements

• Strengthening corporate governance by expanding the role of outside directors and enhancing the executive officer system
• Separating governance and risk management functions from the General Affairs Department to create the Sustainability Promotion Department
• Establishing a Whistleblower Hotline
• Establishing a Risk Management Manual

Climate Goals & Targets

Environmental Challenges

• Market shrinkage for the compact camera market
• Low profits in latent growth markets (musical instruments/projectors)
• Digital camera market contraction
• Overseas compliance
• Risks related to international activities and overseas market engagement
• Fluctuations in currency rates
• Risks related to outsourcing
• Product defects/litigation problems
• Information management risks

Mitigation Strategies

• Withdrawal from the compact digital camera market
• Implementing business structure reforms in problem segments
• Shifting risk management focus on overseas compliance
• Reinforcing enhanced information management by outlining internal regulations against an information leak
• Strict product quality management
• Outsourcing certain manufacturing and assembly processes to external suppliers with thorough quality management
• Establishing a Whistleblower Hotline
• Establishing a Risk Management Manual
• Establishing redundancy between internal and external data centers for information system disaster response

Supply Chain Management

Responsible Procurement

• CSR procurement promotion

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines

Certifications: FSC©