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SUSTAINABILITY REPORT 2019 C O N T E N T S C O N T E N T S

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SUSTAINABILITY REPORT 2019 C O N T E N T S C O N T E N T S CASIO SUSTAINABILITY REPORT 2019 C o n t e n t s C o n t e n t s .......................................................... 2 Editorial Policy ....................................................... 3 Corporate Overview ................................................. 5 Message from the President ...................................... 8 Pursuing an abundant environment that supports biodiversity ̶ The environmentalcontributions of PRO TREK watches .................11 Learning from Model CSR Companies: SDGs at the Heart of Hitachi’s Business Strategy .................................... 15 CSR Management ....................................................21 Casio’s Corporate Creed and Approach to CSR ..............22 Social Trends and CSR Progress .....................................33 CSR Implementation System ..........................................39 Material Issues for Casio ...............................................42 Stakeholder Engagement ...............................................52 Corporate Governance...................................................55 Corruption Prevention Initiatives / Compliance ............62 Risk Management ..........................................................71 External Evaluation .......................................................78 Social Report .........................................................83 Social Report ................................................................83 Quality Assurance .........................................................84 Activities to Improve Customer Satisfaction .................90 Intellectual Property Initiatives ....................................98 Supply Chain Management .......................................... 104 Making the Most of Human Resources and Maintaining Optimal Workplace Environments ................. 114 Human Resource Development .................................... 130 Occupational Safety and Health .................................. 140 Respect for Human Rights ........................................... 147 Social Contribution Activities ..................................... 151 Environmental Report ........................................... 170 Environmental Report ................................................. 170 Environmental Management ........................................ 171 Environmental Action Plan (Targets and Performance) 176 Realizing a Decarbonized Society ................................ 178 Building a Recycling Society ....................................... 187 Living in Harmony with Nature .................................... 197 Material Balance ......................................................... 223 CO2 Emissions Throughout the Entire Value Chain ...... 225 Environmental Performance Data ................................ 228 Third-party Verification Statement ............................. 239 Environmental Accounting .......................................... 240 Environmental Compliance .......................................... 243 GRI Content Index ................................................. 248 CASIO SUSTAINABILITY REPORT 2019 2 Editorial Policy Sustainability Website An easily searchable site that offers comprehensive information on Casio’s CSR initiatives. Sustainability Report 2019 A report containing information from the Sustainability website that can be downloaded in PDF format. It may be printed in part or in its entirety, for your reader convenience. An independent opinion independent opinion from an outside expert has been obtained and included as an objective assessment of the report overall. Third-party verification of environmental performance data has also been obtained to ensure reliability. Independent Opinion on the Sustainability Report Third-party Verification Certificate （PDF / 136KB） For details on Casio’s management and financial information, visit the Investor Relations site. Scope of the report • Period This report covers fiscal 2019 (April 1, 2018 to March 31, 2019), and also includes some information pertaining to years before and after fiscal 2020. • Issued December 2019 (Previous publication: December 2018, next publication planned: November 2020) • Boundary Some information in this report applies only to the parent company, Casio Computer Co., Ltd., while other material refers to the entire Casio Group. Further clarification is provided in each case, as needed. The name “Casio” in this report indicates the Casio Group, while “Casio Computer Co., Ltd.,” refers specifically to the parent company. CASIO SUSTAINABILITY REPORT 2019 3 Guidelines used as a reference • GRI Standards, Global Reporting Initiative • Environmental Reporting Guidelines (2007 Edition) issued by Japan’s Ministry of the Environment • Environmental Accounting Guidelines 2005 issued by Japan’s Ministry of the Environment • ISO 26000 Guidance on Social Responsibility (GRI Guidelines and ISO 26000 content indices are posted on the website.) Inquiries Casio Computer Co., Ltd. https://world.casio.com/ Environment & Social Planning Office Address: 1-6-2 Honmachi, Shibuya-ku, Tokyo 151-8543 Japan Tel.: +81-3-5334-4901 E-mail [email protected] Forecasts and forward-looking statements The future forecasts and forward-looking statements published in this report for Casio Computer Co., Ltd., and the Casio Group are based on information available at the time of publication. These forecasts and statements include potential risk and uncertainty, and the reader should be aware that the actual results of business activities may differ from these predictions. CASIO SUSTAINABILITY REPORT 2019 4 Corporate Overview Company data Name Casio Computer Co., Ltd. Headquarters 1-6-2, Hon-machi, Shibuya-ku, Tokyo, Japan, 151-8543 Established June 1, 1957 President and CEO Kazuhiro Kashio Employees * 2,842 (consolidated: 11,868) Paid-in capital * ¥48,592 million Net Sales * ¥298,161 million (consolidated) Operating income * ¥30,262 million (consolidated) Ordinary income * ¥29,894 million (consolidated) Net income * ¥22,135 million (consolidated) Timepieces, Electronic Dictionaries, Calculators, Label Printers, Electronic Major Products Musical Instruments, Handheld Terminals, Cash Registers, Management Support Systems, Data Projectors, Formed Parts, Molds * as of March 31, 2019 CASIO SUSTAINABILITY REPORT 2019 5 Group companies by region Sales by segment and region Sales by segment CASIO SUSTAINABILITY REPORT 2019 6 Sales by region CASIO SUSTAINABILITY REPORT 2019 7 Message from the President Providing New Value to Society by Realizing “Contribution for Creativity” as One Casio A New Kind of Creativity and Contribution for Today Over the six decades since its foundation, Casio Computer Co., Ltd. has been creating new markets and new cultural phenomena based on its corporate creed of “Creativity and Contribution.” Throughout our history, we have been contributing to society by making the most of our original technologies to produce innovative products never seen before. In recent years, Casio’s global market has changed significantly. Advanced functions are becoming increasingly common in various products, and globalization has enabled similar products with similar quality to be produced worldwide. If we manufacture products merely according to our convenience, we will not remain the choice of users, and so we must now shift from “contribution through creativity” to “creativity for contribution.” In order for Casio to keep growing, our goal now is to continuously create the most familiar and important things for people’s lifestyles. We want people to find themselves using our products during the course of their everyday activities, or realize that the product was made by Casio after buying it. In such a natural way, we want Casio to become a part of people's lives. What we need to create is not products designed to appeal to everyone, but devices or services that are very useful to specific persons. To be a unique company offering products that become more familiar to people’s lives, it is essential to move beyond conventional product manufacturing and provide new experiences to new and clearly defined customers. CASIO SUSTAINABILITY REPORT 2019 8 The Four Growth Strategies of the Medium-Term Management Plan When formulating our Medium-Term Management Plan, launched in fiscal 2020, we conducted a company-wide review of operations, with an emphasis on contributing to society, reflecting on the short-term perspective in each product segment/division in recent years. By working as One Casio to achieve overall optimization, with one development organization, one sales organization, and one head office, our aim is now to leverage the assets and strengths we have cultivated over the years and promote business activities that drive real growth. The four growth strategies outlined in the Medium-Term Management Plan are: (1) expand growth in timepiece business; (2) expand growth in educational scientific calculator business; (3) create new businesses; and (4) reform structure to support the growth strategy. In our growth-driving timepiece business, we will leverage the G-SHOCK brand to expand our metal watch lines while securing a solid position in the smartwatch market. In the educational scientific calculator business, which has the same significant growth potential, we will continue to help improve the academic abilities of students around the world through our GAKUHAN program activities. At the same time, Casio will support educational innovation in the new fields of electronic tests and textbooks.
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