Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Recycling
• Biodiversity
• Human Rights
• Supply Chain Management
• Employee Diversity and Wellbeing
• Governance

Environmental Achievements

• Reduced CO2 emissions by 6.0% compared to FY2014.
• Achieved a 65% usage rate of FSC® certified paper in Japanese product catalogs.
• Reduced water consumption at Japan production sites to 42,000 m3 and at overseas production sites to 371,000 m3.

Social Achievements

• Launched GAKUHAN program in Bangladesh partnering with e-Education to improve math skills using scientific calculators, resulting in significant changes in math education within a year.
• 100% of employees who took childcare leave returned to work.
• Company-wide employee turnover was 3.7%.
• Implemented various initiatives to support employee wellbeing, including stress checks and mental health resources.

Governance Achievements

• Revised CSR Committee structure, upgrading it to a body chaired by the president.
• Established a global compliance system and implemented measures to comply with the EU General Data Protection Regulation (GDPR).
• Strengthened internal control systems and risk management processes.

Climate Goals & Targets

Environmental Challenges

• Difficulty in changing from department-based environmental initiatives to a new committee system.
• Counterfeit products.
• Difficulties in achieving the envisioned performance in some areas of environmental initiatives.
• Ambiguity in progress management for recycling goals.
• Need to influence suppliers to adopt higher environmental standards.
• Maintaining compliance with export control regulations.

Mitigation Strategies

• Established three committees tied to material environmental goals to strengthen initiatives from a macro perspective.
• Developed high-precision scientific calculators that are difficult to copy.
• Implementing energy conservation diagnosis at major sites in Japan to clarify energy savings potential and create an energy reduction roadmap.
• Re-evaluating KPIs based on a proper understanding of the current condition.
• Two-way communication with suppliers at meetings to share issues and know-how.
• Conducting regular audits and strengthening training activities to ensure compliance with export laws.

Supply Chain Management

Supplier Audits: Onsite inspections conducted at 8 companies in China and 6 in Thailand.

Responsible Procurement

• Supplier Guidelines
• CSR questionnaires
• Onsite audits
• Ban on conflict minerals

Climate-Related Risks & Opportunities

Physical Risks

• Flooding (Thailand)

Transition Risks

• Rising electricity tariffs and power shortages in Japan.
• Increased emissions trading costs.

Opportunities

• Greenhouse gas reduction effect from Casio products promoting paperless lifestyles.

Reporting Standards

Frameworks Used: GRI Standards, ISO 26000

Certifications: ISO 14001, ISO 9001, Privacy Mark

Third-party Assurance: International Institute for Human, Organization and the Earth (IIHOE)

UN Sustainable Development Goals

• Goal 4 (Quality Education)
• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 14 (Life Below Water)
• Goal 15 (Life On Land)
• Goal 17 (Partnerships for the Goals)

Casio's initiatives align with several SDGs through its core business, social contribution activities, and environmental goals.

Sustainable Products & Innovation

• Casio Green Star and Super Green Star products
• 2.5D printing system

Awards & Recognition

• Inclusion in DJSI Asia Pacific indices
• Inclusion in FTSE4Good Index
• Inclusion in MSCI ACWI ESG Leaders Index
• Inclusion in Morningstar Socially Responsible Investment Index (MS-SRI)
• Inclusion in SNAM Sustainability Index
• Inclusion in FTSE Blossom Japan Index
• Inclusion in MSCI Japan ESG Select Leaders Index
• Inclusion in MSCI Japan Empowering Women Index
• Certified in Health & Productivity Outstanding Organizations 2018

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced annual carbon emissions for the Company in Japan by approximately 45% by switching five major domestic sites over to 100% renewable energy-derived electricity in July 2021.
• Introduced renewable energy at five major plants and offices in Japan

Social Achievements

• Introduced three systems to enable staff to work in a way that suits their individual lifestyle: working from home, flexible work hours, and free dress code.
• Established targets for the rate of employees taking childcare leave and returning to work afterwards, the ratio of women in recruitment, and statutory employment rate of people with disabilities.

Governance Achievements

• Revised executive ranking system to clearly define the role and skills required of specialists at each rank.
• Upgraded the overall job definition table and created a clear definition table for each separate job category to clarify the designation of specialist jobs.

Climate Goals & Targets

Environmental Challenges

• Tight supply situation in the semiconductor market.
• Increasingly complex product structure due to app compatibility and integration with other companies' products.

Mitigation Strategies

• Closely watching the impact of semiconductor shortages and taking measures to secure stable supplies.
• Establishing a dedicated repair line for high-priced timepieces to respond sensitively to different customer expectations.
• Creating a customer satisfaction improvement cycle through introduction of a new customer feedback analysis system.

Supply Chain Management

Supplier Audits: 155 out of 156 contacted suppliers in Japan and all 299 contacted suppliers overseas (China and Thailand) responded to an annual CSR questionnaire.

Responsible Procurement

• Established Procurement Policies that address human rights, occupational safety, environmental conservation, and related themes.
• Established Supplier Guidelines and introduced a system for regular monitoring.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD

UN Sustainable Development Goals

• 3
• 4
• 5
• 9
• 11
• 12
• 13
• 15
• 17

The report lists several SDGs and corresponding initiatives across various business units.

Sustainable Products & Innovation

• Casio Green Star Products and Casio Super Green Star Products.

Environmental Metrics

ESG Focus Areas

• Decarbonized society
• Recycling society
• Living in harmony with nature
• Corporate social responsibility (CSR) procurement
• Supportive workplace environment and promoting diversity
• Respecting human rights

Environmental Achievements

• Reduced annual carbon emissions for the Company in Japan by approximately 45% by switching five major domestic sites over to 100% renewable energy-derived electricity in July 2021.
• Green Star Product sales ratio of 76%
• Recycling rate across all Group business sites of 96%
• 70% certified forest material (domestic catalogs)

Social Achievements

• Introduced a revised specialist system for promoting exceptionally capable employees without necessarily giving them managerial responsibility
• Launched a new system for senior employees aged 60 to 65 years, and a system for recruiting employees of 65 years or above
• Implemented working from home and staggered work hour system
• Issued smartphone to all employees for increased convenience
• Partly introduced “hot-desking,” enhanced support for online meetings

Governance Achievements

• Enhanced the oversight, supervision, and audit functions of the Board of Directors and the Audit & Supervisory Committee
• Strengthened the role of the outside directors
• Introduced a system whereby the outside directors now attend as appropriate the Management Meeting, Internal Control Committee, and Sustainability Committee

Climate Goals & Targets

Environmental Challenges

• Impact of rapid changes in the business environment since the fourth quarter (lockdown in China, sluggish demand, soaring raw material and distribution costs)
• Delayed recovery in the System Equipment Business
• Launch of new businesses did not progress as planned
• Low ratios of female employees and female managers
• Insufficient system integration capabilities to propose total solutions

Mitigation Strategies

• Fundamental reforms that will dispel all concerns
• Accelerating the growth strategy
• Fundamental reform of the management platform
• Strengthening business operation management to maximize frontline capabilities (strengthen matrix management)
• Introducing a new system as a common global foundation and utilizing the data obtained through our own e-commerce site and directly managed stores
• Establishing a new Research + PDCA (RPDCA) system

Supply Chain Management

Supplier Audits: 148 out of 149 contacted suppliers in Japan and from all 285 contacted suppliers overseas (China and Thailand) responded to CSR questionnaire

Responsible Procurement

• Procurement Policies that address human rights, occupational safety, environmental conservation

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Integrated Thinking Principles and Integrated Reporting Framework of the Value Reporting Foundation (VRF), Guidance for Integrated Corporate Disclosure and Company–Investor Dialogue for Collaborative Value Creation of the Ministry of Economy, Trade and Industry

Sustainable Products & Innovation

• Products designed with recycling in mind; Casio Green Star Products or Casio Super Green Star Products

Environmental Metrics

ESG Focus Areas

• Decarbonized society
• Recycling society
• Harmony with nature
• CSR procurement
• Supportive workplace environments and promoting diversity & inclusion
• Respecting human rights
• Maximizing economic performance

Environmental Achievements

• Reduced market-based greenhouse gas emissions (Scopes 1 and 2) by 38% compared to FY2019
• Reduced waste generated by Casio Group (including valuable waste) by 34.3% compared to FY2020
• Reduced water usage for Casio Group by 23.9% compared to FY2020

Social Achievements

• Achieved birth and childcare leave usage rate for eligible male employees of 78.2%
• Achieved a 99.6% rate of regular health checkups among employees
• Implemented e-learning training for new employees and training for new managers to address mental health issues

Governance Achievements

• Transitioned to a new framework that further clarified the roles and responsibilities of those in executive and supervisory positions in April 2023
• Increased the number of outside directors on the Board of Directors

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic
• Rising costs related to the use of renewable energy
• Changes in the scale of the group's activities
• Maintaining a high recycling rate while transitioning to paper packaging
• Addressing human rights issues throughout the supply chain
• Insufficient mainstreaming of biodiversity

Mitigation Strategies

• Conducted supply chain surveys on GHG emissions reductions and collected information
• Switched to renewable energy-derived electricity at six major business sites in Japan and some overseas sites
• Introduced paper packaging for calculator products
• Implemented CSR education at Casio sites and at suppliers, and implemented onsite audits
• Established the Casio Group Basic Policy on Respect for Human Rights
• Implemented the WILD MIND GO! GO! initiative to raise awareness of biodiversity

Supply Chain Management

Supplier Audits: Onsite audits conducted at 8 suppliers in China and Thailand in 2023; CSR surveys conducted with 405 suppliers worldwide.

Responsible Procurement

• Supplier Guidelines
• CSR education for suppliers
• Onsite audits of suppliers
• Surveys on conflict minerals

Climate-Related Risks & Opportunities

Physical Risks

• Damage to business sites due to natural disasters
• Damage to business sites due to rising sea levels

Transition Risks

• Strict regulations to address climate change
• Increases in carbon tax and other burdens

Opportunities

• Provision of opportunities to develop environmental technologies

Reporting Standards

Frameworks Used: GRI Standards, TCFD Recommendations

Certifications: ISO 14001 (multiple sites), ISO 9001 (multiple sites)

Third-party Assurance: SGS Japan Co., Ltd.

UN Sustainable Development Goals

• Not disclosed

The report mentions Casio's alignment with the SDGs but does not explicitly list the specific goals.

Sustainable Products & Innovation

• Casio Green Star Products
• Products using biomass plastics
• Products with reduced packaging
• Solar-powered products

Awards & Recognition

• Eco Mark Award 2021 Best Product (Lateco)
• GIGA School Special Category Award (ClassPad.net)

Environmental Metrics

ESG Focus Areas

• Value creation through business
• Enhancement of management capital
• Strengthening of management foundation

Environmental Achievements

• Acquired Science Based Targets initiative (SBTi) certification
• Established greenhouse gas reduction targets (Scope 1+2: 38% reduction by FYE 3/2031 compared to FYE 3/2019; net zero emissions by FYE 3/2051; Scope 3: 30% reduction in Category 1 and Category 11 by FYE 3/2031 compared to FYE 3/2019)
• Joined the RE100 initiative

Social Achievements

• Launched Casio Basic Health Policy to improve physical and mental well-being
• Enhanced career support system, including career training, job challenge program, side-job/second job system, and second career system
• Initiatives to select and develop female manager candidates

Governance Achievements

• Ensuring transparency in compensation and nominations
• Improving effectiveness of the Board of Directors
• Ensuring diversity of directors
• Complying with competition laws
• Preventing corruption
• Engaging stakeholders in dialogue

Climate Goals & Targets

Environmental Challenges

• Global economic slowdown
• Soaring raw material and logistics costs
• Supply chain problems
• Stagnant market conditions
• Shrinking electronic dictionary market in Japan
• Intensifying competitive environment in EdTech due to accelerated spread of ICT
• Declining profitability in Sound Business due to soaring cost of raw materials and logistics and deceleration in demand
• Longstanding profitability issues in System Equipment Business

Mitigation Strategies

• Structural reforms to improve profitability and internal operational efficiency
• Rigorous screening of investments in new businesses
• Streamlining sales activities
• Developing DX infrastructure
• Reorganizing some business domains
• Shifting business model in EdTech from hardware-oriented to ICT education solutions
• Global expansion of ICT education solutions in EdTech
• Establishing a unique market position in Sound Business based on lifestyle proposals
• Fundamental reform of business structure in System Equipment Business through selection and concentration of business, shifting from hardware to software and pay-per-product to recurring service model

Supply Chain Management

Responsible Procurement

• CSR procurement
• Addressing conflict mineral issues

Climate-Related Risks & Opportunities

Physical Risks

• Damage to business bases due to natural disasters
• Damage to business bases due to rising sea levels

Transition Risks

• Increase in carbon tax and other burdens causing sharp rise in energy and material prices

Opportunities

• Provision of opportunities to develop environmental technologies
• Provision of service value utilizing the internet
• Support for reduction in customer energy consumption
• Expansion of customer contact by strengthening e-commerce
• Provision of educational opportunities to emerging countries

Reporting Standards

Frameworks Used: GRI

Certifications: SBTi

Sustainable Products & Innovation

• Products with longer service life, low power consumption, and multiple functions
• Products using biomass materials

Environmental Metrics

ESG Focus Areas

• Decarbonization
• Resource Circulation
• Living in harmony with nature
• Respecting Human Rights

Environmental Achievements

• Switched to 100% renewable energy for Yamagata Casio (domestic manufacturing site), resulting in 89% renewable energy share in domestic operations.
• Partial use of renewable energy at Zhongshan factory in China via power purchase agreement.
• 38% reduction in Scope 1 and 2 emissions (market-based) and 34% reduction in Scope 3 emissions (medium-term targets).
• Reduction in landfill waste ratio and water intake.

Social Achievements

• Launched Purpose project to drive innovation and re-establish a culture of challenge.
• Regular dialogues between management and frontline employees.
• Incorporated “respecting human rights” into annual sustainability learning program.
• External expert training for Sustainability Leaders on business and human rights.
• Harassment prevention training for executives and all employees.

Governance Achievements

• Transitioned to a company with an Audit & Supervisory Committee structure.
• Increased the number of outside directors to strengthen oversight.
• Regular Board of Directors meetings to discuss important management matters.
• Established Nomination and Compensation committees.
• Introduced a system of non-monetary compensation (restricted stock compensation).

Climate Goals & Targets

Environmental Challenges

• Current business stagnation due to external factors (rapidly changing business environment) and internal factors (weakening resilience).
• Lack of clarified medium- to long-term business vision.
• Departmental division of operations hindering achievement of plan targets.
• Insufficient utilization of Casio’s strengths in team power and spirit of challenge.
• Geopolitical risks, information security risks.

Mitigation Strategies

• Launched Purpose project to define corporate purpose and values.
• Strengthened Board of Directors’ oversight functions.
• Increased number of outside directors.
• Established Digital Innovation Headquarters.
• Implemented countermeasures for geopolitical risks (supply chain measures, employee safety).
• Established Computer Security Incident Response Team (CSIRT).
• Developed business continuity plan (BCP).

Supply Chain Management

Responsible Procurement

• Communication with suppliers on decarbonization management

Climate-Related Risks & Opportunities

Physical Risks

• Damage to business bases due to natural disasters
• Damage to business bases due to rising sea levels

Transition Risks

• Strict regulations to address climate change
• Increase in carbon tax and other burdens

Opportunities

• Provision of opportunities to develop environmental technologies
• Expansion of products with longer service life, low power consumption, and multiple functions

Reporting Standards

Frameworks Used: SBTi, RE100, TCFD

Certifications: ISMS

Sustainable Products & Innovation

• G-SHOCK collaboration model made from plastic waste

Awards & Recognition

• 16th globally in the Consumer Goods category of Newsweek’s 2023 list of the World’s Most Trusted Companies