Corporate Social Responsibility Report
Based on its Management Philosophy, “TOPCON widely contributing to human
society through corporate activities,” TOPCON CORPORATION is making a
companywide effort to carry out CSR activities. In addition to the Management Philosophy, we
have already established our Corporate Management Policies and Business Conduct Guidelines to
encourage our employees to observe the laws and regulations and behave in accordance with
social ethics. The philosophy, policies, and guidelines are listed below.
Management TOPCON widely contributing to human society through corporate activities Philosophy
1. TOPCON aims to be a leading global company. 2. TOPCON earns profits through fair corporate activities and returns profits to its employees, shareholders and the society. Corporate 3. TOPCON strives to create an environment in which its employees can demonstrate their independent creativity to Management maximum. Policies 4. TOPCON pursues a policy of customer first and will continue to supply high-performance and high-quality products to its customers at appropriate prices. 5. TOPCON will achieve its growth as a good corporate citizen through solidarity with the regional society.
TOPCON will secure the profit through fair competition in order to reward the employees, the stockholders and the society and pursue to be a useful existence as a“ good corporate citizen”. For these purposes, TOPCON will establish hereby the following business conduct guidelines, observe all domestic and Business Conduct foreign laws, international rules and their fundamental principles and conduct sound social judgment. Guidelines
1．TOPCON will recognize that coping with environmental problem is an essential corporate activity for the society of human beings to harmonize and cooperate with earth and will strive to cope with it spontaneously and actively. 2．TOPCON will develop and provide the products and the services helpful to the society considering their safety and perform the quality control with full preparations. 3．TOPCON will set its ideals at the formation of fair, transparent and free competitive society, and will hold sound relation- ship with politics and administration. 4．TOPCON will positively confront the anti-social powers and groups that threat the public order and safety of civil society, and will have no relationship with them. 5．TOPCON will have communication widely with the society and disclose the correct corporate information appropriately. 6. TOPCON will realize the affluent life of Employees, secure the safe and worker-friendly workplace environment and respect the character and personality of each Employee. 7. TOPCON will respect, in its overseas business activity, the culture and customs of the country and perform the activity to contribute the development of the country. 8．Top executives of TOPCON will recognize that the realization of the fundamentals of business conduct guidelines is the role of their own, take leadership, promulgate the guidelines to the relevant persons, establish in-house system and cultivate the sense of ethics. 9．TOPCON will take appropriate preventive measures for and cope with all risks involved in business conduct and strive to prevent the loss of management resources.
1 Corporate Social Responsibility Report 2007 Table of Contents 〈Issuing Our CSR Report〉 The Mind of TOPCON CORPORATION Last year, TOPCON CORPORATION issued its CSR Report Management Philosophy; Management Policies; Business Conduct Guidelines 1
for the first time in order to better the communication with its Issuing Our CSR Report; Table of Contents 2
stakeholders. As part of the Special Topics pages in this issue, Message from Top Management 3
we have introduced some of the products intended to reduce Company Overview 4
environmental burdens and we would be happy if you would Concept Behind CSR 5 take a look at them. Scheme of Promoting CSR; Linkage of the Company's Committees 6
Corporate Governance Scheme; Risk Compliance 7 〈Target Period and Other Data〉 Target period: Special Topics From April 1, 2006 to March 31, 2007 "Introducing Products to Reduce Environmental Burdens 9 The content is mostly about our activities in FY 2006, although there is some information taken before and after the target period. Date of issuance: Sociality Report Social Contribution Activities August 2007 (the previous one was issued in September 2006) 12 Relationships with Shareholders and Customers, Improvement Scope of the target: in Customer Satisfaction Measurement, Universal Design 16 Quality Assurance; A Recognition of Our Reliability: As a general rule, the target of the report is social and environ- The "ISO 9001" Certification 17 Personnel System; Concept of Safety and Health mental activities at TOPCON CORPORATION and its affiliated 18 CSR Activities for Employees companies. 19 To gain information about other companies Guidelines used as reference: 20
- Sustainability Reporting Guidelines 2002 by Global Reporting Initiative (GRI) Environmental Report
- Environmental Accounting Guidelines 2002 (for FY 2003) Basic Activities and Plans 21
Note: GRI was established in the United States in 1997 for the purpose of creating Coping with Environment-Conscious Products (ECPs) 23 global standards for environmental reports. Coping with Burdens on the Environment 25 Coping with Environmental Audit and Environmental Education 27 Environmental Protection Activities 29
Third Parity Opinion 31
In Response to Third Parity Opinion 32 〈Introducing Our Website〉 Please visit TOPCON CORPORATION'S website and you can download PDF files containing the present and previous reports. When you see a ULR containing " http:// " in this report, you can move there to gain supplementary and detailed information.
http://www.topcon.co.jp/eng/csr/index.html TOPCON CORPORATION'S website for social and environmental activities (CSR)
Corporate Social Responsibility Report 2007 2 The Mind of TOPCON CORPORATION
Message from Top Management
Our wish is to become a company trusted by our customers and society as a whole and do what we can do to help create a better society for tomorrow.
Social Contribution Through Corporate Activities Based on Management Philosophy
Since its foundation in 1932, the TOPCON GROUP has been creating a variety of products by merging optical technology as the core with digital technology. Our products in such fields as the positioning business, eye care business, and fine-technology business have been highly evaluated for their usefulness and social contribution, and we are very pleased that we can be engaged in these businesses. The TOPCON GROUP is ready to continue to positively practice its Management Philosophy, "Contributing to the Human Society Through Corporate Activities," in its daily activities.
Implementing a Better Global Environmental Through Environmental Management
Under a slogan of handing down the "One Precious Earth" to our next generations while its environment is in sound state, the TOPCON GROUP is making efforts in both the products and production aspects. That is, while conducting activities focusing on resource and energy saving by developing environmentally conscious products, we are also doing our best to reduce the amount of total waste
generation, CO2 generation, and hazardous substances consumed. In the future as well, we will be maintaining the Zero Emission effort and promoting thorough environmental management based on the Environmental Voluntary Plan 2010.
Using Communication with Stakeholders as the Key to Sustainable Growth
In FY 2006, the amount of overseas sales accounted for more than 70% of the total of the TOPCON GROUP, which currently has 31 overseas sites in 17 countries. Each of these countries has its own culture, climate, history, and customs. I do believe that the key to sustainable growth is how we regard the ideal figure of business activities in these countries and their significance of existence with "sensitivity and sensibility" from a CSR viewpoint. For this reason, we will be placing further emphasis on bidirectional communication with our stakeholders, including our customers, shareholders, investors, employees, local communities, and procurement customers. The TOPCON GROUP is ready to fulfill its responsibility as a corporate group having a significance of existence and come up to your expectations. We would like you to provide us with your support and cooperation.
President
3 Corporate Social Responsibility Report 2007 Company Overview
■Corporate name : ■Breakdown of Consolidated Sales (for the term ending in March 2007) ■ Location of the head office : 75-1, Hasunuma-cho, Itabashi-ku, Tokyo (zip code: 174-8580) 【By business category】 ■Main switchboard : 03-3966-3141 (number-reference guide) Optical devices 70 ■Established : September 1, 1932 ■Capital : 10.297 billion yen (as of March 31, 2007) Industrial equipment 113 ■Representative : Takashi Yokokura, President 一 Measuring equipment ■Sales : Consolidated: 110.490 billion yen (Fiscal year ended March 2007) Medical equipment 536 384 Non-consolidated: 49.374 billion yen (Fiscal year ended March 2007) ■Workforce : Consolidated: 3,873 employees (as of March 31, 2007) Non-consolidated: 1,132 employees (as of March 31, 2007) 【By country】 (Unit: 100 million yen) ■Business : Positioning business (dealing with measuring equipment) Others 83 Eye care business (dealing with medical equipment) Asia and Oceania 81 Finetech business (dealing with industrial equipment and optical devices) Japan 299 China 78 ■ Overseas representative offices : China (Beijing and Shanghai) North America United Arab Emirates (Dubai) Europe 270 290 Republic of Lebanon (Beirut) ■TOPCON GROUP : Domestic: 10 companies (as of April 1, 2007) Overseas: 30 companies (as of April 1, 2007) (Unit: 100 million yen) ■Overseas sites : 31 locations in 17 countries in the world Note: Any value below 100 million yen is rounded off.
Sweden
The Netherl ands Germany Canada Great BritainPoland China France USA Spain Korea Lebanon Japan UAE
Thailand
Malaysia Singapore
Australia
http://www.topcon.co.jp/eng/corporate/index.html (Corporate Information)
http://www.topcon.co.jp/eng/indicators.html (Financial Indicators)
Corporate Social Responsibility Report 2007 4 The Mind of TOPCON CORPORATION
Concept Behind CSR
TOPCON CORPORATION will be advancing more customers, shareholders, and employees but also sophisti-cated CSR activities by placing emphasis on customers, local residents, investors, and administrative communication with stakeholders, including not only its agencies.
■ Relationship Between Stakeholders and the TOPCON GROUP
Consumers and customers
Shareholders Public information Providing products National and disclosure, dividend and services and distribution, local investors governance, etc administration
Observing laws TOPCON and regulations Environmental protection, plant tours, and linkage GROUP for local revitalization
Specifying material Local procurement policies and promoting SCM Customers community Skill development, fair evaluation, safety, health, etc.
Employees
■ Schematic of CSR Region
Activity and creation as a better Social and corporate citizen environmental roles Social contribution activities
Environmental protection, public information disclosure, personal information protection, pro-human right, law and regulation observation
Economic role Providing high-quality products and services; profits and dividends Partnership with customers (fair and clear relations), emphasis on employees, tax payment, employment opportunity Group's sustainable growth and higher competitiveness
5 Corporate Social Responsibility Report 2007 Scheme of Promoting CSR
CSR Promotion Committee President
Secretariat: Administration Dept.
Chairman of CSR Promotion Committee (by a person serving as both Director and Senior Managing Executive Officer)
Vice-Chairman of CSR Promotion Committee (by a person serving as both Director and Executive Officer)
Committee members (heads of each divisions)
Information Sales & Marketing Environmental Quality Assurance Personnel & Administration System Dept. Dept. (Law and Protection Dept. Promotion Dept. Employees Dept. Dept. (Observing laws regulation obser- (Local environ- (Quality (Human rights; (Social contri- and regulations) vation; customer ment conference) assurance) employee satis- bution) satisfaction) faction)
TOPCON CORPORATION'S CSR activities are conducted mainly by the companywide CSR Promotion Committee shown above. The committee, which was established in April 2006, has been engaged in companywide activities through linkage with those divisions closely related to CSR and all committees.
■ Linkage of the Company's Committees
Linkage
Observing Human rights and Quality Customer Social CSR laws and Environment employee assurance satisfaction contribution regulations satisfaction
CSR Risk Global Company- Employment Social Promotion management Environment wide QS CS activity of people with contribution Committee committee Conference committee disabilities activities
Information Environmental Gender- CSR public security Protection equal relations community Committee society
Personal Safety and information health protection committee committee
Export Welfare management committee programs
Corporate Social Responsibility Report 2007 6 The Mind of TOPCON CORPORATION
Corporate Governance Scheme
To appropriately respond to the rapidly changing the president's direct supervision. Besides establishing a management environment, TOPCON CORPORATION system that ensures lawful conduct of affairs in a has a system that separates the supervisory function manner that is appropriate and effective, the section performed by the board of directors from the operations- that asks certified public accountants to do accounting performing function performed by operating officers. audit and performs the above internal audit. The target Additionally, TOPCON CORPORATION has the is thorough audit through mutual linkage under an management audit office, an internal audit body under efficient audit system.
General Meeting of Shareholders
Appointment and Appointment and Appointment and termination termination termination
Board of directors Board of auditors Accounting auditor
President
Board of operating officers Management audit office (internal audit division) Operating officers Audit Internal audit
Staff members, operating divisions, group member companies
Risk Compliance
TOPCON CORPORATION increases its profitability and protection, quality management, and so forth. soundness by appropriately understanding and controlling For risk management, TOPCON CORPORATION has the influence from risks. As the first item of law and already established basic regulations about risk regulation observation, TOPCON CORPORATION has management and provides the position called Chief Risk its own Business Conduct Guidelines, which should be Management Officer (CRO). The result is a system observed by all of the officers and employees. Individually, capable of appropriately and individually responding to company regulations and management schemes are also all possible risks arising from the company itself and its put in place in terms of monopoly prohibition, export subsidiary companies on a timely basis. Its internal management, regulations on insider trading, protection reporting system enables early detection of problems and of personal and classified information, environmental appropriate handling on a timely basis.
President
Risk management
Personal Information Risk Export Quality Environmental information security CSR management management management management protection community Vice-president of Vice- Chief of Person Person Person Chairman of companywide president of the export responsible for responsible for responsible CSR personal companywide management promoting companywide for risk Promotion nformation information office environmental environmental management Committee protection protection protection Committee Committee Committee Management office Committee Committee Committee Compliance management
7 Corporate Social Responsibility Report 2007 Personal Information Protection and Information Security
The Basic Regulations about Personal Information itself and its subsidiary companies. In addition to Protection and the Basic Regulations about Information protecting information itself, these efforts enable timely, Security are put in place to fully protect personal appropriate handling of any risk regarding the risk. information and classified information in the company
Guidelines for Personal Information Protection Information Security Policy
(1)We will observe all the laws and regulations regarding (1)By recognizing the property value of information, personal information. TOPCON CORPORATION will value the information (2)When we gather personal information from our of other people and endeavor to prevent the leakage customers and if we do not explain the purpose and unfair use of corporate information and protect individually to them, we will use the personal infor- the property right to corporate information. mation for the purpose of providing or presenting (2)TOPCON CORPORATION will protect personal products or services to our customers from TOPCON information appropriately in its undertaking activities. CORPORATION, its group companies, and other companies and providing our customers with useful guidance. We also may provide such personal information to third parties for the purpose of analyzing and processing the information and feed it back to our customers. The handling of these will be done appropriately in accordance with the content and scale of TOPCON CORPORATION'S business. (3)We will take rational safety measures against risks regarding personal information, such as illegal access, leakage, loss, and falsification.
(4)We will establish an internal system for protecting personal information and continue to review and improve the system.
Export Management Programs
Basic Policy Specific Standards Of Behavior
TOPCON CORPORATION will not get involved in any (1)Our employees will not engage in any transaction of transaction likely to hinder the maintaining of international export or import of controlled substances by violating peace and security. We will fully understand and observe the laws and regulations regarding foreign trade the purport of the laws and regulations regarding foreign control in Japan or in a country where our business trade control in Japan and in countries where our business activities are done. activities are done, as well as the export trade law of the (2)Our employees will not engage in any export or re- United States. For this purpose, we have formulated the export of U.S. products or technical information by export control program for U.S. products and technical violating the export trade law of the United States or information and are striving to observe the program. related laws and regulations.
Corporate Social Responsibility Report 2007 8 Special Topics
Introducing Products to Reduce Environmental Burdens
TOPCON CORPORATION is producing environmentally provided by TOPCON CORPORATION, we have also conscious products (ECPs), which are detailed in page 23 what we call "environment-contributing products" ― of the TOPCON CSR Report 2007, by providing products products that can indirectly contribute to a reduction in that are lower in power consumption and smaller in environmental burdens, as exemplified by a reduction in design than previous products. Among the products the required process.
Positioning Business Unit
●Introducing the GPT-9000A Series Auto Tracking Pulse Total Station By eliminating the need for prisms, the GPT-9000A has efficiency and energy saving. An additional advantage is made it possible to independently measure the distance early recovery through secondary disaster prevention from the target (a maximum of 2,000 meters). The result and efficient measurement due to the ability of is a reduction in the trouble and time for prism placement, measurement in dangerous places such as disaster- leading to labor saving, as well as a rise in measuring stricken areas, from a safe location.
ＧＰＴ-9000Ａ
●Introducing the 3D-MC Machine Control System for Construction Practice Based on the positional information from the GPS, the well as air-pollution substance such as exhaust gas. 3D-MC controls and constructs civil engineering High-precision construction based on high-precision machinery, making it possible to reduce the construction positional information helps reduce environmental period significantly. The result is a reduction in fuel burdens in many ways, such as the reduction of extra (energy) required for operation of such machines, as materials and the suppression of waste generation.
9 Corporate Social Responsibility Report 2007 ●Introducing the X-20 Machine Control System for Precision Agriculture The idea is to equip agricultural machinery with the new method helps reduce the fuel (energy) due to the GPS function to control the automatic driving and efficient operation of agricultural machinery and reduce application of fertilizers and pesticides so that the air-pollution substance such as exhaust gas. Additional conventional way of agriculture based on experience advantages include the ability to eliminate the wasteful and hunch is replaced with precise management. In application of agricultural chemicals and fertilizers and addition to increasing the crop yield per unit area, the control traceability, thus contributing to food safety.
X-20 Machine control system for precision agriculture
Eye Care Business Unit
●Introducing the 3D OCT-1000 3D Retinal Imaging Device Previously, examination of the ocular fundus (eyegrounds) resulting from these processes. Through linkage with has been based on devices that express two-directional the IMAGEnet ophthalmological examination support laminagrams. By contrast, the 3D OCT-1000 has made it system, in addition, this product makes it possible to possible to photograph three-dimensional eyeground view, analyze, and trace-read eyeground images, images by responding to needs from physicians and photographed in the examination room, in the consultation other people engaged in medical care. As a result, it has room. The result is a contribution to labor saving and become possible to early detect retinopathia diabetic, paperless management in the form of uniform management glaucoma, and age-related macular degeneration, which through the use of electronic data (electronic medical are considered the three major causes of blindness. charts). Early treatment would reduce the burdens on patients. Having been highly evaluated for its planning ability, social The 3D OCT-1000 also helps raise the efficiency of nature, and functional quality, this product won the highest treatment of diseases and development of medical drugs, award in the 37th Machine Industry Design Award held by Nikkan Kogyo Shimbun, Ltd. and the award from the minister of thus making it possible to reduce the environmental burdens economy, trade and industry.
3D OCT-1000 3D Retinal Imaging Device
Corporate Social Responsibility Report 2007 10 Special Topics
Introducing Products to Reduce Environmental Burdens
Finetech Business Unit
●Introducing the Vi-3200 In-Tray Chip Defects Inspection System In the production of semiconductor wafers, recent years of energy saving regarding air-related environmental have seen a full-scale introduction of automatic inspection coordination resulting from the effort to reduce the devices in the final appearance inspection field. Without space for clean rooms and a reduction in raw materials having to remove IC chips from the tray, the Vi-3200 and waste due to an increase in the ratio of non- enables fully automatic contact-free appearance defective products. inspection, meaning a labor saving of roughly 15 inspectors. Other contributing factors include an effect
Pad needle Defective chip Contaminants Defective pattern Short pattern Examples of track defects detected misaligned
Floating dust
Abnormal needle track
Non-uniform protective film
Contaminants
Scratch
In-Tray chip Defects Inspection System Vi-3200
11 Corporate Social Responsibility Report 2007 Sociality Report
Social Contribution Activities
Here is a part of TOPCON CORPORATION'S social contribution through its business.
Examples of Philanthropy
When the "Special Olympics Japan National Games," a sport event for people with intellectual deficits was held, TOPCON CORPORATION supported the "Opening Eyes" program for providing eye examination by fully loaning vision testers and spectacle processing devices.
Similar support was also provided when the Special TOPCON CORPORATION provided support to the Olympics was held in Korea. ophthal-moscopic activity for disadvantaged children 【Affiliated company in Korea: Topcon Korea Corporation】 which was sponsored by Luxottica, a spectacles chain store. 【Affiliated company in the U.S.: Topcon Medical Systems, Inc.】
TOPCON CORPORATION provided support when Fuji Megane Co. Ltd., a spectacles chain store, sponsored an activity for donating spectacles to war- displaced people left behind in China by their Japanese relatives in their infancy.
Corporate Social Responsibility Report 2007 12 Sociality Report
Social Contribution Activities
TOPCON CORPORATION donated the OMS-800 TOPCON CORPORATION provided support to the OFFISS operating microscope to the Haiphong Eye activities of charge-free eyesight testing and Center in Vietnam. spectacles provision carried out at Masang university and Daegu insurance university, targeting solitary old people and orphan children, as well as people living rough in intermountain remote areas. 【Affiliated company in Korea: Topcon Korea Corporation】
TOPCON CORPORATION provided support to the "Day in the Park," a psychologically supporting camp When the Niigata-Chuetsu-Oki earthquake occurred for children with disabilities or heavy diseases. in July 2007, TOPCON CORPORATION donated 【Affiliated company in the U.S.: Topcon Positioning 6,000 liters of drinking water as an emergency Systems, Inc.】 assistance to the afflicted district.
In the United States, TOPCON CORPORATION also made donations to public service organizations for immigrants and low-income earners and protection service organizations for ill-treated children.
13 Corporate Social Responsibility Report 2007 Coping with Blood Donation Activities
Since 1972, blood donation activities have been regularly held by TOPCON CORPORATION'S health insurance association. So far, the company has received a large number of awards, including the one from the Minister for Health, Labour and Welfare and the one from the Japanese Red Cross Society.
State of implementation of blood donation
■ Number of Blood Donors by Year
Cumulative 1972 to 2004 2005 2006 2007 Average 2003 total
Number of Approximately 8,204 112 254 267 237 9,074 donors 250 per year
Participating in the "Team Minus 6%" Campaign
In response to the Kyoto Protocol Treaty coming into effect in 2005, TOPCON CORPORATION has been working as a group team member in accordance with the purpose of the "Team Minus 6%" campaign started as a national campaign in Japan. Among the efforts to
reduce global warming gas is introduction of the Cool Biz campaign, which encourages companies and other organizations to set the temperature of their air conditioners at 28｡C and have people wear thin clothes bearable at this temperature. Others include efforts of Leaflet for visiting customers to inform them of implementation of using power-saving lighting equipment, turning down the Cool Biz campaign. We present this in many places to help gain the lighting during recesses, and recycling waste as their understanding. much as possible.
Opening an Endowment Chair ○Name of the chair: Visual information control science (TOPCON CORPORATION) From the viewpoint of industry-university cooperation, ○Purpose of the chair: TOPCON CORPORATION donated a scholarship fund The chair is intended to conduct researches that deeply search to Osaka University, one of Japan's national universities. for theories and clinical requirements and encompass practical, advanced inspection and medical equipment through linkage Base on this donation, a chair has been opened. between medicine and engineering, thereby contributing to the growth of ophthalmology, especially the quality of eyesight. ○Period of opening: From May 2004 to March 2009 (for four years and 11 months)
Corporate Social Responsibility Report 2007 14 Sociality Report
Social Contribution Activities
Examples of Coexistence with the Local Community
Accepting students of neighboring elementary and junior high schools making plant tours and workplace studies
Accepting students of neighboring elementary schools making plant tours and students of junior high and high schools for internship 【OPTONEXUS Co., Ltd.】
Having a fire crew formed as part of the local disaster activity conduct water-discharge exercises against a large-scale disaster 【Affiliated company in China: Topcon (Beijing) Opto-Electronics Corporation】
Holding Christmas events Opening the illumination to Having volunteers in the Opening the premises to the company hold an exhibition of outside to help students of for local children the public chrysanthemum flowers at the neighboring elementary and nearest train station junior high schools carry out resource recovery activities 【Topcon Yamagata Co., Ltd.】
Holding the 5th Exhibition of Everything Environ mental (by the Environmental Conference in Itabashi-ku, Tokyo) The exhibition was held in the Eco Police Center (located in Maeno Town, Itabashi Ward) to help improve the awareness of Itabashi people toward the environment under a slogan of "The Earth is suffering from heat stroke! All of us should join forces to get rid of the disease." TOPCON CORPORATION formed the members of the preparatory committee, who planned the exhibition, made site preparations, managed the operation of the day, and compiled a report.
15 Corporate Social Responsibility Report 2007 Sociality Report
Relationships with Shareholders and Customers
Together with Shareholders and Investors ― IR Information TOPCON CORPORATION'S Business Conduct Guidelines state as follows: TOPCON will have communication widely with the society and disclose the correct corporate information appropriately. Besides disclosing information based on the related laws and regulations, the rules established by stock exchanges (Tokyo Stock Exchange and Osaka Securities Exchange), the company is also making efforts to disclose any information related to its stakeholders rapidly and fairly in order to enhance its transparency. Briefing session for the medium-range management plan for FY 2007 and a debriefing session for the http://www.topcon.co.jp/eng/invest/index.html financial statements for FY 2006 (Investor Relations)
Together with Our Customers ― Information about Material Procurement TOPCON CORPORATION has a basic policy for procurement activities as shown below. Besides observing the laws and regulations and striving to conduct open and fair transactions, the company is promoting green procurement, which pays attention to the environment, and coping with the RoHS directives and other legal regulations on the environment established in many countries. At regular intervals, the company also holds a briefing session for its business policy in order to have its customers have Briefing session for business policy for its customers a better understanding of, and a closer links with, TOPCON CORPORATION.
Procurement Policy (Basic Policy for Materials) Green Procurement
TOPCON CORPORATION is conducting procurement TOPCON CORPORATION is promoting environment- activities based on the following factors: fair procurement, friendly procurement: that is, procuring those products, co-existence and co-prosperity, law-abiding principle, and parts, materials, and raw materials having environ- information management and protection. mental burdens in the lifecycle from those customers promoting green procurement and environmental protection activities. In addition, the company is sequentially coping with the RoHS directives in the EU nations and other overseas legal regulations on the environment.
Improvement in Customer Satisfaction Measurement
TOPCON CORPORATION gathers the voices of its customers through its sales activities, exhibitions, and questionnaires regarding customer satisfaction measurement and feeds them back to the planning, design, production, sales, and maintenance stages. The company is thus advancing continuous improvement to give its customers real satisfaction.
Undertaking Universal Design
TOPCON CORPORATION is undertaking universal Thin body that enables physicians to read the facial expression of their design so that people-friendly products may be used patients Easily supporting patients who have safely and positively in the measuring, medicine, difficulty opening their eyelids industry, and many other fields. Here we are introducing universal design for the 3D Design that consists of soft curves OCT-1000, which is shown in page 10 of the TOPCON for the part directly touching the CSR Report 2007, from the ophthalmic examination field. faces of patients so that they can be stress-free Example of undertaking universal design for the 3D OCT-1000
We wish that our customers can feel relaxed and have Placing major switches around the confidence in the equipment and that physicians can control stick, enabling rapid, correct operations and minimizing the burden perform correct inspections rapidly. Attention was on patients Using a slightly larger display and a also paid to the communication between patients and handy lighting enabling operation in a physicians. semi-dark room
Corporate Social Responsibility Report 2007 16 Sociality Report
Quality Assurance
Based on the "Basic Policy for General Quality Assurance," TOPCON CORPORATION not only observes the related laws and regulations but also aims at creating products that can be enjoyed by customers and society.
Basic Policy for General Quality Assurance
By observing the related laws and regulations based on its management philosophy of contributing to the human society and implementing the "customer-oriented" and "quality first" concepts, TOPCON CORPORATION provides products and services that will satisfy its customers.
TOPCON CORPORATION'S Scheme for General Quality Assurance Providing high-quality, safe products and services TOPCON CORPORATION has a scheme of "general quality assurance," which builds in quality through
companywide efforts and conducts quality assurance Quality management system
through the entire of the lifecycle of products in all the Observing laws ISO900１ stages, including planning, design, production, sales, and and regulations ISO13485
after-sales service, to provide products that will be enjoyed "Customer-oriented" and "quality first" by customers. If an accident or trouble should occur, we Scheme for general quality assurance will conduct urgent processing to save the victim rapidly Higher customer Product safety and appropriately, look for the cause, and take a satisfaction preventative measure in order to minimize the influence on the victim and society. Social contribution through corporate activities
Scheme of Internal Quality Audits TOPCON CORPORATION has a scheme of internal if any, and improve the situation. Our approach to quality audits that enables us to see whether our activities international quality standards has been spiraling up for for general quality assurance have been properly more than 10 years since the first acquisition when we conducted according to the purpose and to correct a problem, started to conduct internal quality audits twice a year.
A Recognition of Our Reliability: The "ISO 9001" Certification
TOPCON's Positioning Business Division, Ophthalmic and We are also determined to keep improving the quality of Medical Instruments Division, Industrial Instruments everything we do and to fulfill our responsibilities as a Division and Optical Devices Division all received a global enterprise. covered ISO 9001:2000 Certification. This certification is given internationally by SGS United Kingdom Ltd Systems & Services Certification only to those manufacturers with the most stringent quality management system standards. JAB Certificate UKAS Certificate We feel flattered to have our commitment to excellence http://www.topcon.co.jp/eng/corporate/quality.html recognized. (Quality assurance activities)
17 Corporate Social Responsibility Report 2007 Sociality Report
Personnel System
"TOPCON CORPORATION will endeavor to build an is making constant efforts to build personnel measures for environment that allows its employees to voluntarily the treatment, nurturing, and utilization of its employees develop their originality to the fullest." This statement is not dependent of their nationality, age, or sex, but in actually a philosophy among the company's management accordance with their potential capabilities, actual policies. Based on this philosophy, TOPCON CORPORATION performances, and challenging wills.
System of Employee Treatment Coping with Employee Needs to "Work and Continue Working"
While doing away with the elements of promotion by Our activity of coping with employee needs to "work and seniority, we have built a pay-per-performance system, continue working" consists of building a variety of job which determines recruitment, salary increases, and support systems for employees engaged in child rearing annual bonus according to the functional skills, responsible and nursing care, as well as enhancing a reemployment roles, and achievement of our employees. Through a system for retired employees. We are also endeavoring to personnel evaluation system based on the voluntary evaluation achieve the goal of a legal employment rate for the of our employees, we are also implementing measures that employment of physically-handicapped people. allow our employees to recognize how they are treated.
Personnel Training and Utilization System
Our personnel training and utilization efforts include various programs. One specific example is education by hierarchy and occupational ability, targeting those from new employees to management employees. Another is an Training management level employees in-house staff recruitment system (covering both persons and companies), which encourages our employees to improve their career by themselves and supports them with their can-do spirit. A third is a self-return system. Training mid-career employees
Concept of Safety and Health
In order to help all of its workers live safe, pleasant social "hiyari/hatto incidents," eventually for the purpose of lives, the TOPCON GROUP is making efforts to eliminate helping enhance the morale of all employees. By industrial accidents. The target of management seminars positioning mental health measures as the top priority for this purpose is not only those in the direct divisions issue, we are holding seminars for all employees, including who are engaged in production, but also those in the sales, the division and section chiefs. Another such effort is the general affairs, and other indirect divisions. During safety prevention and early detection of mental diseases through weeks, safety and health exhibitions are held to reproduce linkage with external counseling organizations. actual industrial accidents, as well as what is known as
Human error seminar Mental health seminar (for mental health measures) (for eliminating hiyari/hatto incidents)
Corporate Social Responsibility Report 2007 18 Sociality Report
CSR Activities for Employees
Recognizing that its employees are also important stakeholders, TOPCON CORPORATION is conducting welfare and security activities.
(Seminar about safe driving) (Traffic safety campaign) A seminar was held by inviting a lecturer from Activities during the national traffic safety a nonlife insurance company. week
(Culture exhibition) (Table tennis tournament) A scene of the exhibition held by volunteers This is a scene from the final round.
(Softball tournament) (A variety of dining events) A team of new employees fights a good fight A variety of events, including a "sushi bar" every year. classroom, were held.
19 Corporate Social Responsibility Report 2007 Sociality Report
To Gain Information About Other Companies
http://www.topcon.co.jp/eng/invest/factbook.html (Fact Book)
http://www.topcon.co.jp/eng/invest/finance.html (Financial Results)
http://www.topcon.co.jp/eng/invest/profile.html (Corporate Profile)
Corporate Social Responsibility Report 2007 20 Environmental Report
Basic Activities and Plans
TOPCON GROUP'S Basic Policy for Environmental Policies of TOPCON CORPORATION Environmental Protection and Topcon Technohouse Corporation Recognizing that it is the basic responsibility of human Based on the TOPCON GROUP'S Basic Policy for Environ- beings at present to hand down our "One Precious mental Protection, as well as environmental impact Earth" to succeeding generations with its environment evaluation and related laws and regulations, TOPCON in sound state, the TOPCON GROUP wishes to promote CORPORATION and Topcon Technohouse Corporation environmental protection activities as far as technically have established environmental policies regarding activities and economically possible and has established its own for environmental protection, which are listed below. basic policy for environmental protection as follows. (1) By positioning activities for environmental protection as one of the most important management issues, we will build a system and structure of environmental management, which will be joined by everyone from top management to Topcon group's basic policy for ordinary employees, and define environmental objectives environmental protection and targets for continual improvement and pollution prevention. 1 Topcon Group pursues and promotes environmental (2) Besides observing the related laws and regulations, protection in accordance with its environmental municipal bylaws, guideline standards, agreements, and policy and considers environmental protection to those requirements accepted by us, we will establish be one of management's primary responsibilities. stricter voluntary standards and endeavor to control them so that they will be known to everyone. 2 Topcon Group, as part of its environmental manage- ment, complies with its own voluntary environmental (3) As priority items for reducing burdens on the environ- standard as well as laws and regulations related to ment, we will set the following targets for our activities: environmental protection. 1)To develop environmentally conscious products, which 3 Topcon Group assesses the environmental impact of take into account resource saving, energy saving, and its business activities, products and services. In doing material recycling. this, the Topcon Group specifies its objectives, 2)To reduce hazardous chemical substances and control targets to eliminate the negative impacts and to chemical substances more effectively. improve the positive environmental aspects, and 3)To make efforts to reduce waste generation and improve promotes its Environmental Report. the value of waste by using it repeatedly as a resource. 4 Topcon Group has set up an organization to promote 4)To promote energy-saving activities and reduce activities related to environmental protection. The carbon dioxide generation. activities include, development of Environmentally (4) In addition to beautifying our premises and their Conscious Products (ECPs), reduction of hazardous surroundings, we will be active in joining community chemical substances, reduction of waste, and activities to increase links and cooperation with our local increase in energy savings. communities. 5 Topcon Group contributes to society through its (5) We will raise the morale of our employees by improving Environmental Report by partnering with local our environmental education and public relations and communities. improve our activities for environmental protection by having all employees participate. 6 Topcon Group strives to enhance awareness of the environment through educational and PR activities (6) Aiming to raise the level of the entire Topcon Group, concerning environmental protection. we will provide our associated companies with planned and positive guidance and support. 7 Topcon operates globally, and accordingly, promotes environmental activities throughout the Topcon July 1, 2006 Group. Takashi Yokokura, President
ISO 14001 and JIS Q 14001 Registration State of Acquisition of ISO Certifications by TOPCON'S Affiliated Companies The following member companies of the TOPCON GROUP have already Registered organization: (Head offices of) TOPCON CORPORATION and acquired the ISO 14001 certification. Certification Approval Date organization Topcon Technohouse Corporation Address: 75-1, Hasunuma-cho, Itabashi-ku, Tokyo Topcon Yamagata Co., Ltd. March 20, 2000 TUV Scope of registration: The development, design, manufacture, and sales of Surveying instruments, Ophthalmic and medical Topcon Optical(Dongguan) Technology Ltd. May 17, 2001 SGS instruments, Industrial instruments and Other OPTONEXUS Co., Ltd. precision optical instruments in the above organization OPTONEXUS Co., Ltd.TAKINE FACTORY December 21, 2001 JQA EC97J1081 Topcon Technohouse Corporation March 9, 2005 JACO Registration number: Registration date: September 29, 1997 Expiration date: September 28, 2009 Topcon Service Co., Ltd January 20, 2006 JQA Certification organization: Japan Audit and Certification Organization for Environ-ment and Quality (JACO) ＊Topcon Service Co., Ltd certified by Eco-Action 21 on April 26, 2005
21 Corporate Social Responsibility Report 2007 Targets and Achievements of Environmental Plans for Environmental Protection Activities Protection Activities in FY 2006 in FY 2007
Criterion of Target Criterion of comparison Target Target comparison Target Achievement Result Reducing the total A decrease of A decrease of Reducing the total amount of waste Not amount of waste A decrease of 18.1% FY 2000 17% 15.7% FY 2000 generation achieved generationBasic unit of (1.04) Basic unit of sales (1.05) (1.07) sales (Total amount generated) (537 tons) (528 tons) Reducing hazardous chemical substances FY 2000 A decrease of 26% Reducing hazardous Reducing the amount of chemical substances Method of aggregate VOC generation Reducing the amount FY 2000 calculation established of VOC generation Already Amount of second class FY 2000 A decrease of 67% achieved organic solvent consumed Amount of second A decrease of A decrease of class organic solvent FY 2000 66.8% Energy saving consumed 62% FY 1990 A decrease of 16% Basic unit of sales Energy saving A decrease of A decrease of Not FY 1990 Basic unit of sales 16% 14.6% achieved (Amount of CO2 emission) (5,649 tons of CO2) Developing environmentally (Amount of CO2 emission) (5,185 tons of CO2) (5,089 tons of CO2) Ratio of all products sold conscious products(ECPs) by volume 35% Developing environmentally Ratio of ECPs to sales Ratio of all Already conscious products (ECPs) products sold 25% 31.40% achieved Ratio of previous models Ratio of ECPs to sales by volume Power consumption A decrease of 20% per function Ratio of previous A decrease of A decrease of Already Power consumption models per function 20% 26.6% achieved Compliance with legal regulations on the product Total ban on the 15 specified environment (RoHS directives) substances Guidance and support to affiliated Four companies Four companies Already companies Conducting environmental audits at affiliated companies (five sites) (five sites) achieved Guidance and support to affiliated companies Conducting environmental audits at affiliated companies Four companies (five sites) Controlling and auditing chemical Already substancescontained in procurements 55 companies 68 companies Controlling and auditing chemical substances achieved Major clients from major clients contained in procurements Education and publicity Company-wide implementation Already Conducting environmental education by hierarchy achieved Education and publicity Companywide implementation Conducting environmental education by hierarchy Public relations Issuing a CSR report Already achieved Public relations Issuing a CSR report Already Itabashi Ward Workshop of Joining various events Environmental Management achieved Itabashi Ward Workshop of Environmental Management Joining various events
Environmental Protection Scheme Voluntary Environmental Plan 2010
TOPCON'S President Voluntary Plan: Plan for the company's commitment to voluntary activities
Global Environment Conference Person responsible for companywide The TOPCON GROUP - mainly its associated companies engaged in (Members of the operating officer environmental protection conference) (Officer appointed by the company president) Japanese domestic production - has formulated and begun to ●Discussing and deciding on implement a Voluntary Plan covering the period from FY 2006 important issues Internal environmental auditor to the end of FY 2010.
The names of the companies ○TOPCON CORPORATION Environmental Protection Person responsible for implement- ○Topcon Technohouse Corporation Committee Chairman ing environmental protection targeting the Voluntary ○Topcon Yamagata Co., Ltd. (person responsible for imple- (Corresponding to the management represen- Plan are listed here. menting environmental protection) tative defined in ISO 14001) ○OPTONEXUS Co., Ltd., ●Promoting environmental pro- ●Implementing and managing company- ○Topcon Service Co., Ltd. tection activities in general wide environmental protection Activity item Indicator Criterion Target of comparison Ratio of ECPs Total number Person responsible for promoting Creating more ECPs sold by volume of units sold 60％ Offering environmental protection by objective Ratio of reduction environment- Reducing power Previous ECP promotion, management of chemical in power consumption 20％ ally consumption model substances, material recycling measures, conscious per function energy saving, environmental measures by products The 15 specified Newly affiliated companies, response to legal (ECPs) Reducing hazardous regulations on the product environment. substances con- developed Total ban substances tained in products product Environmental protection tasks in general: Environmental Protection Group Preventing Reducing the amount Reducing the amount greenhouse of CO2 emission FY 1990 25％ of CO2 emission warming per basic unit of sales All expert committees Reducing the total Reducing the total amount Branch-level management divisions amount of waste of waste generation FY 2000 20％ ■ ECP promotion Making (including Topcon Technohouse Corporation) effective generation per basic unit of sales ■ Management of chemical substances use of Reducing the amount Achieving the target Persons responsible for company- ■ Material recycling measures Voluntary All sites resources of waste from final t of zero waste wide environmental protection at ■ Energy saving targeted reatment emission criterion branch-level management divisions ■ Environmental measures by affili- ated companies ●Implementing and promoting en- Managing Reducing the amount ■ Response to legal regulations on the Total amount of vironmental protection activities at chemical of volatile organic FY 2000 30％ product environment VOC emission branch-level management divisions substances compounds generated Organization for supporting the activity of persons responsible for Persons responsible for implementing promoting environmental protection environmental protection by objective
Decision-related line Ladder-related line Support-related line
Corporate Social Responsibility Report 2007 22 Environmental Report
Environmentally Conscious Products (ECPs)
Developing Environmentally Conscious Products (ECPs)
When it comes to the development of environmentally (ECPs) and qualify them for being labeled with the conscious products, TOPCON CORPORATION has been "Toshiba Group Global Environment Mark." In the focusing on resource- and energy-saving activities. In future, we will strive to reduce burdens on the order to develop products having lower burdens on the environment by developing products that also have the environment, however, we will be paying attention to "environment-contributing products" aspect explained in the environment in the entire lifecycle of the product. the Special Features pages of our Social Report. As part of this effort, we have already formulated a set of "voluntary environmental standards for TOPCON products," which is intended to authorize any products having met our voluntary environmental standards at a Note: The "Toshiba Group Global Environment Mark" is specified level as "Environmentally Conscious Products" a self-declaration mark based on ISO 14021.
Introducing Environmentally Conscious Products (ECPs)
●ＦＣ- 200 ●GPT-9000A The purpose of the FC-200 data collector is to control measuring The GPT-9000A, which is also introduced on page 9 of the equipment and collect and manage measurement data. Its TOPCON CSR Report 2007, is a motor-driven, non-prism total outstanding features include an improvement in basic station having automatic guiding for one-operator measurement. performance due to the installation of a high-speed CPU and As compared with previous models, the GPT-9000A provides large-capacity memory, as well as a color display with excellent much higher basic performance and has SS visibility and a new operating system with high extensibility. wireless, Bluetooth, and many other built-in Installation of Bluetooth and an optional functions, and yet is small and lightweight SS wireless device has made it possible in design. Additionally, major components of to drastically increase the efficiency of the device are common to those used in one-operator measurement in a total other models, approximately halving its station. Improvement of these capabilities power consumption per function. has resulted in energy saving. As compared with previous models, power consump- a 52% decrease in power consumption Energy saving effect tion for this device has achieved a 22% (as compared with previous models) reduction. ●CL-200 a 22% decrease in power consumption Energy saving effect (as compared with previous models) This is a lensmeter that measures the power of spectacle lenses and contact lenses. Besides automatically recognizing the ●SP-3000P quality of lens alignment and the presence of progressive focus The specular microscope is intended to photograph endothelial lenses, this device displays frequency distributions in color, thus cells located in the innermost part of the cornea. From such enabling positive, rapid measurement and thorough labor images, it is possible to calculate the cellular density and other saving. Unlike the black-and-white screen for previous models, parameters. Endothelial cells of the cornea are diagnosed using the CL-200 uses a color screen but it is still these parameters and photographic images. As compared with capable of reducing power consumption previous models, the time for analysis has significantly. What's more, it has achieved been reduced by approximately 30%. a reduction of 42% in weight while retaining Power consumption per function has also its original volume. The CL-200 is housed been reduced. Due to a change in material, completely in a corrugated cardboard package, the volume of packaging materials has which is unlikely to adversely affect the been reduced by 34%. environment.
a 15% decrease in power consumption a 40% decrease in power consumption Energy saving effect Energy saving effect (as compared with previous models) (as compared with previous models)
23 Corporate Social Responsibility Report 2007 ●Vi-3200 The Vi-3200, which is also introduced on page 11 of the achieves a value of close to 100%. The example of an LCD TOPCON CSR Report 2007, is an in-tray chip defects driver inspection shows that a single inspector can inspection system that is capable of checking the appearance perform an inspection which would otherwise require 15 of semiconductor chips housed in a tray on a non-contact people to perform a visual inspection. and fully-automatic basis. The appearance checker The result is a reduction in greenroom corrects the shift in rotation or position of chips, which space and an improvement in move in the tray pocket, so that it corrects the change in inspection quality.
focus resulting from a deformed tray to implement highly a 15% decrease in power consumption Energy saving effect reliable inspection. Its consistency with visual inspection (as compared with previous models)
Globally Increasing Legal Regulations on Environmentally Conscious Products (ECPs) the Product Environment
Generally, products contain a variety of chemical substances. Life cycle The Voluntary Environmental Standards When handled improperly or disposed of, some of these could -Implementation of Green procurement adversely affect the human body or the environment. -Prohibition of hazardous substances including Let us use the term "legal regulations on the product Procurement of polychlorinated biphenyl (PCB), asbestos, chlorofluorocarbon, polybrominated biphenyl(PBB) environment" to mean those legal regulations regarding chemical components and polybrominated biphenyl ethers(PBDE) substances contained in products. One typical example is the -Prohibition of batteries containing mercury and of nickel-cadmium batteries European RoHS directives, which came into force in July 2006. -Prohibition of Ozone Disaster Substances (ODSs) These directives placed a ban on the inclusion of lead, mercury, Manufacturing such as chlorofluorocarbon, trichloroethane and cadmium, and other chemical substances in products. In hydrochlorofluorocarbons (HCFCs) process -Understanding of the quantity of consumed lead response, many other countries in the world came to establish and hexavalent chromium their own legal regulations on the product environment. For dry -Prohibition of shrink packages for packing material batteries used in products as well, laws placing a ban on the Product -Use of recycled papers for packing cardboard distribution -Prohibition of materials containing polyvinyl chloride inclusion of mercury and cadmium were established in many (PVC) for buffer material and protection packages European countries and the United States. -Promotion of energy saving functions In an effort to deal with the globalization of such legal regulations Usage by -Providing information about energy saving in customers instruction manuals on the product environment, TOPCON CORPORATION also (product specification) -Reduction of electricity consumed per product determined management rules regarding chemical substances function compared with previous models contained in products in its own committee, called the -Identifying those products which contain greater "Committee for Compliance with Legal Regulations on the than 25g plastics in accordance with ISO10430(JIS K6899) and ISO11468(JIS K6999) Product Environment." The management rules require that -Application of over 80% of plastics to be chemical substances contained in products must be managed in Recycling of used appropriate for material recycling, including products polypropylene(PP), polystyrene(PS), all processes, including design, development, procurement, polyethylene(PE), polycarbonate(PC), acrylonitrile- production, and sales. styrene resin(AS), and acrylonitrile-butadiene- styrene resin (ABS) -Providing users with information for properly Procedure for Managing Chemical Substances Contained in Products discarding products Head office of TOPCON CORPORATION -Providing general information concerning environmental issues through Web pages, Committee for Compliance with Legal Regulations (Collecting and providing instruction manuals, and catalogues on the Product Environment information) Other -Understanding the amount of CO2 release from the view point of life cycle assessment (LCA) and Internal auditors (Implementing internal environmental audits) providing the data through instruction manuals and considering catalogues Design and Material Production Shipment issues -Providing instruction manuals which consist of development procurement greater than 70 % used paper or recycled paper, division division division division certified as eco-label ●Design BOM ●Surveying ●Acceptance ●Checking RoHS- -Assessing each new product to examine if it is management hazardous management compatible products improved over its previous model ●Drawing corrections substances ●Process manage- ●Handling against the ●Fluorescent X-ray ●Auditing clients ment occurrence of analysis ●Managing the party non-acceptable receiving consign- products ■ List of ECPs (Product Lineup Announced By FY 2005) ment of production and repair ●Deodorant unit DU-2 ●Data collector FC-100 ●Auto chart projector ACP-8 ●Wafer surface inspector WM-5000 ●Filter system FS-100D ●Wafer surface inspector WM-7 Clients Topcon Yamagata Co., Ltd. Party receiving ●Autorefractometer RM-8800 ●Pulse total station GPT-7000HiPer TEP handling OPTONEXUS Co., Ltd. consignment of TEM ●Autokeratorefractometer KR-8800 ●Rotating laser RL-H3CL materials Topcon Service Co., Ltd. production and repair ●Computer lensmeter CL-2800 ●Level sensor LS-B10 ●Lens checker EZ-200 ●Lensmeter LM-8 ●Digital theodolite DT-200 ●Slit lamp SL-D2,D4,D4Z With the addition of the five product lines shown on pages 23 and 24 and three more product lines, ●Rotating laser RL-VH3D ●Wafer surface inspector WM-10 FY 2006 saw the total reach 27 product lines, accounting ●Total station GPT-8200A Total of 19 product lines for 30% of the sales volume.
Corporate Social Responsibility Report 2007 24 Environmental Report
Reducing Environmental Burdens
TOPCON GROUP'S Actions to Reduce Environmental Burdens
OPTONEXUS Co., Ltd. Achieves Zero Emissions (see Note)
goal of achieving zero emissions at its head-office plant in January 2006 and at its Takine plant in May 2007. With this effort, the company was able to achieve one of the items in the TOPCON GROUP Voluntary Environ- mental Plan 2010 and also receive the outstanding performance award in the Zero Emissions Contest held by Fukushima Prefecture. In the future as well, the company will continue to expand its activities by focusing on the activity items listed in the "TOPCON
Commendation Ceremony for the Winners of the Zero Emissions Contest Voluntary Environmental Plan." Held by Fukushima Prefecture Note: The term "zero emissions" here refers to an OPTONEXUS Co., Ltd., which is the TOPCON GROUP'S attempt to bring the amount of final landfill disposal to a domestic production company headquartered in value as close to zero as possible by reviewing the Fukushima Prefecture, has achieved the goal of zero processes ranging from the procurement of products to waste emissions . The company, promoting environmental the final disposal of waste, promoting the effort of protection activities in accordance with the conduct recycling materials into valuable resources, and guidelines of the TOPCON GROUP, acquired the ISO reducing the total amount of waste generation through 14001 certification in December 2001, started full-scale reducing its volume and weight. The effort has allowed zero emission activities in FY 2004, and declared the the company to achieve a 20% reduction in disposal cost.
Winner of the Itabashi Ward Environment Protection Award
In June 2006, TOPCON CORPORATION received the brisk, as exemplified by cooperation with the Eco Police Environment Protection Award (Environment Protection Center through the Itabashi Environmental Conference Managers category) from Itabashi Ward (see Note below). and our approach to local people through the Itabashi This follows our 1999 award in the Management Environmental Exhibition. The recent award is a reflection category. The award is presented to those managers of of the high evaluation of these activities. merit in the environment management divisions of In FY 2006, TOPCON CORPORATION announced the companies. The 2006 award went to the person TOPCON GROUP Voluntary Environmental Plan 2010. responsible for environmental protection, who con- We are ready to expand environmental protection currently serves as a chief of our environmental activities that can contribute to the local community by protection division. making groupwide efforts to achieve zero emissions, Itabashi Ward has been highly acclaiming TOPCON reduce waste generation, reduce carbon dioxide, and CORPORATION as the first company in the local community market environmentally conscious products. to acquire the ISO 14001 certification. Under the slogan of "Contribution to Hasunuma Town of Itabashi Ward," Note: The purpose of the Environment Protection Award is to make a public recognition of organizations and individuals having contributed where TOPCON CORPORATION is headquartered, to environmental protection and announce them during what is called with the efforts of all our environmental protection "Environment Month," which is organized in June of each year. Every year, three companies are selected in the Environmental Manage- managers, we have been cooperating in many ways with ment category and three individuals are selected in the Environment the environmental protection section in the Itabashi Protection Managers category. Others include the Environmental Beautification category (individuals and organizations) and the community. Our local cooperation activities have been Environmental Volunteers category (individuals and organizations).
25 Corporate Social Responsibility Report 2007 Reducing the Total of Waste Production Reducing Hazardous Chemical Substances
In FY 2006, we also started to measure and count Besides observing laws and regulations, TOPCON metallic chips and other valuable resources as part of CORPORATION is working actively under its group waste and aimed to cut the total amount of waste. voluntary plan calling for a reduction in hazardous Additionally, to make a relative reduction with respect chemical substances. Eight substances were reported in to an expansion in sales, we introduced the concept of connection with the Tokyo ordinance regarding "basic unit of sales" (Note 1). For the initial year, environmental protection. (Refer to page 30 of the however, there was a major increase in waste TOPCON CSR Report 2007.) Ten years ago, TOPCON generation (528 tons, which is an increase of 32 tons CORPORATION became active conducting reduction against FY 2006) and the initial plan for amount of sales activities after anticipating that it would be a global failed to be achieved (49.5 billion yen, which is 1.7 billion responsibility to reduce volatile organic compounds yen lower than the budget); therefore, the planned basic (VOCs) in the near future. unit of sales failed to be achieved (Note 2: 1.05 planned VOCs are chemical substances, which when released to versus 1.07 achieved). the air, will become photochemical oxidant and other The reasons for this failure include an expansion in sources of air pollution. First, we attempted to make production activity, an increase in waste generation paints containing a plenty of VOCs water-based. Water- related to the depreciation of facility assets, and active based paints thus came to be used for all the exterior of trade-in of products. In FY 2007, we would like to measuring and medical equipment, resulting in a reduce waste generation by achieving the target goals significant VOC reduction. The group voluntary plan while continuing to use the concept of "basic unit of called for a further VOC reduction in or before FY 2010. sales" and paying attention to fluctuations in amount of We will continue to be active under the goal of a 30% sales. reduction in all VOCs (as compared with FY 2000). In FY 2006, we established a method of aggregate Note 1: Indicates the environmental burden per unit sales. The value calculation, including how to calculate the amount of all is calculated by dividing the total amount of emissions by the amount of sales (in the unit of 100,000 yen). VOCs generated. Note 2: Classified as "not achieved" because the result of the Our activity of reducing environmental burdens targets calculation (528 tons divided by 49.4 billion yen) is approximately 1.07, which is greater than 1.05. not only VOCs but also chlorofluorocarbons (CFCs), as exemplified by the attempt to introduce the CFC-free type instead of aerosol dust removers previously used in Reducing the Amount of CO2 Emission the assembly line. At present, TOPCON CORPORATION is working under the "Group Voluntary Plan" that calls for achieving a 25% Achievements and Targets reduction in the basic unit of sales during the period from (Basic unit 1990 till 2010. of sales) (Reducing the basic unit with waste generation) Achievement Plan 1.40 The initial goal for the basic unit of sales in FY 2006 was 1.305 1.30 1.274
10.15, but the actual result was 10.31, meaning that the goal 1.201 1.20 1.172 1.176 has not been achieved. Among the major reasons for this 1.10 1.070 1.060 1.051 1.043 failure is brisker production activity due to an increase in 1.034 1.026 1.020 sales, leading to a 4% increase in power consumption as 1.00 compared with the previous year. 0.90
0.80 In FY 2007 as well, we will be active making alternatives to 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 (FY)
(Basic unit energy-saving facilities and pay attention to energy-saving of sales) (Reducing the basic unit with CO2 generation) Achievement Plan 12.50 management for lighting, room control, and PCs and promote 12.08 12.00 11.47 11.51 light work clothes campaigns during the summertime. Our 11.50 10.92 11.00 10.79 objective is to reduce CO2 emissions in order to achieve our goal. 10.50 10.31 10.15 9.91 10.00 9.66 9.50 9.43 9.04 9.00
8.50
8.00 1990 2001 2002 2003 2004 2006 2007 2008 2009 2010 (FY)
Corporate Social Responsibility Report 2007 26 Environmental Report
Environmental Audits and Environmental Education
ISO 14001 Surveillance Environmental Action at Affiliated Companies
In 2006, the third round of surveillance was conducted In order to improve its groupwide activities for environ- over three days from August 7 to 9, with the result that mental protection, TOPCON CORPORATION conducts nothing unacceptable was found. We thus received an regular internal audits (once every year) for guidance evaluation saying, "The environmental management and support, by targeting those affiliated companies system is functioning effectively and updating it for engaged in the production and services areas which are registration is possible." There were three major usually considered to impose environmental burdens domes- findings: (1) Food residue from the cafeterias is not tically and overseas. As with the previous year, the target handled as the target of environmental assessment; (2) of audits was a total of five sites at the following four com- There is need to conduct environmental education in panies: Topcon Yamagata Co., Ltd., OPTONEXUS Co., Ltd. accordance with the needs of work sites in the (its head-office and Takine plants), Topcon Service Co., Ltd., technology and sales divisions; (3) In some work sites and Topcon Optical (Dongguan) Technology in China. where a specific goal failed to be achieved for three TOPCON CORPORATION'S environmental audit means months in a row, no corrective action has been taken. In an evaluation of the environmental management system response, we corrected these findings before April 2007. in general, focusing on the state of management of those facilities and equipment whose environmental burdens are heavy and could lead to environmental accidents. The recent audit has partly revealed a reduction in the level of facility management and a shortage in the number of qualified persons. In FY 2007 as well, we would like to continue environmental audits for the four companies, increase the number of overseas companies to be surveyed in line with the globalization of environmental protection activities, and consider introducing a method suitable for affiliated companies engaged mainly in white-collar work.
Internal Environmental Audit
In response to the ISO 14001 surveillance, we reviewed our rules regarding internal environmental audits and decided to be active in implementing proposals for continued improvement through an evaluation of three Auditing and Controlling Chemical Substances Contained in Procurements stages: "recommendations for correction," "guidance on improvement," and "room for improvement." In FY 2006, In order to respond to the European RoHS directives we increased the number of internal auditors before and other rules regarding hazardous chemical conducting a regular internal audit with a total of 20 substances contained in products, we established new divisions and six committees in November. The result standards for client audits and started the management has shown a reduction to one item in recommendations and audit of chemical substances contained in for correction, eight items in guidance on improvement, procurements in 2006. Since then, we have conducted and 11 items in room for improvement. audits on 68 major clients and 27 plating businesses.
27 Corporate Social Responsibility Report 2007 Field-Checking Industrial Waste Environmental Education Disposal Businesses By conducting education by hierarchy and occupational At present, TOPCON CORPORATION has contracts on ability, TOPCON CORPORATION is going ahead to consigned treatment with a total of 29 companies, maintain, and continuously improve, the environmental consisting of 14 collecting and transportation businesses protection activates based on the environmental policies. and 15 treatment businesses, handling both industrial ■Training for New Employees and nonindustrial waste. We regularly visit these The topics of the training cover TOPCON CORPORATION'S consigned businesses for industrial waste to check their environmental protection activities in general, including the treatment for compatibility. We also visit some of the global environmental issue, domestic and overseas legal consigned businesses regulations, and ISO 14001. New employees also receive for nonindustrial waste on-the-job training regarding segregation at our for check. In FY 2006, recycling centers. we visited six such companies for check. ■General Education General education, the target of which is all employees classified by hierarchy (such as ordinary employees and management-level employees). The education, is intended to improve the environmental awareness of Training for Emergency employees and raise the level of environmental protection activities. In FY 2006, general education was In order to minimize the influence on the environment joined by a total of 1,064 ordinary employees and a total in the event of an emergency, we conduct regular of 247 management-level employees. emergency training every year. In FY 2006, we conducted emergency-oriented training at six work ■Professional Education sites. Those items of improvement pointed out by the TOPCON CORPORATION tells its employees to receive result of implementation have been reflected in our in-house and outside seminars on professional education emergency handling manuals, as required. to help improve their levels and become qualified. ■Technical Education All employees as new graduates from engineering-based In-house Environmental Exhibition schools and colleges receive education for environmental technology, focusing on environmentally conscious On December 20, 2006, we held an exhibition regarding products. Forepersons and higher-level engineers also waste segregation sponsored by the Material Recycling receive seminars held by outside educational organiza- Committee. On March 12, 2007, we also held a poster tions to improve their level in environmental technology. exhibition embodying the concept of "environment- contributing products." ■Education for Internal Environmental Auditors At TOPCON CORPORATION, any employee who has received and completed a seminar held by an outside educational organization to cultivate internal environmental auditors is qualified as an internal environmental assistant auditor. Such assistant auditors must gain in-house experience before they are registered as internal environmental auditors. FY 2006 saw the registration of two new internal environmental auditors, making a total of 14. In-house education also is offered to existing auditors to help improve their skills.
Corporate Social Responsibility Report 2007 28 Environmental Report
Environmental Protection Activities
Background of Environmental Protection Globally Growing Activities for Environ- Activities mental Protection Under the basic environmental policy for its group, the 1989 Establishes the environmental pollution management group. TOPCON GROUP is conducting global activities for 1992 Establishes the basic regulations about pollution control. environmental protection by joining forces with its Totally abolishes chlorofluorocarbons (CFCs) as ozone- depleting substances. affiliated companies, both domestic and overseas. Aiming 1993 Receives the award for excellent managers for pollution at building a more solid scheme for global environmental prevention from Itabashi Ward. Renames the environmental management group to protection, we plan to carry out the following activities inaugurate the global environment conference. Inaugurates the environmental management commit- by the end of FY 2009. tee and establishes the basic regulations about environmental management. 1995 Draws up the Voluntary Plan. Receives the bureau manager award from the Kanto Group's Basic Policy for Environmental Protection Regional Bureau of International Trade and Industry (for energy saving in air conditioners). Domestic affiliated Overseas affiliated companies companies Formulates a manual for internal environmental audits. Based on the Group's Basic Policy Based on the Group's Basic Policy 1996 Establishes the basic regulations about environmental for Environmental Protection, all for Environmental Protection, all member companies will establish and member companies will establish and protection. implement their own regulations. implement their own regulations. 1997 Acquires the ISO 14001 certification from the Japan Audit and Certification Organization for Environment Environmental Policies of and Quality (JACO). TOPCON CORPORATION 1998 Receives the director-general award from the Natural and Topcon Technohouse Corporation Resources and Energy Agency (for energy saving in air To establish and implement the Basic Regulations about Environmental Protection, as well as regula- conditioners). tions belonging to the basic regulations. Receives the award for excellent managers for pollution prevention from Itabashi Ward. 1999 Receives the Itabashi Ward Environment Protection Award. Conducts product assessment under the theme of total development. FY 2007 FY 2008 FY 2009 2000 Removes the incinerators. 2001 Draws up the New Voluntary Plan(with the target for 2005) Formulates the voluntary environmental standards Continuing environmental audits for affiliated companies regarding environmentally conscious products. Achieves the target of zero emission and issues the Topcon Yamagata Co., Ltd., OPTONEXUS Co., Ltd., Topcon Service Co., Ltd., first edition of Environmental Report. Topcon Optical (Dongguan) Technology Completes the replacement of dichloromethane and conducts green procurement.
2002 Establishes the TOPCON GROUP'S Basic Policy for Visit for Environmental Protection. observing Enlarging the scope of environmental environmental audits 2003 Fully revises the basic regulations about environmental conditions protection and announces environment accounting for One production Conducting environmental audits the first time. company in the One production company in the United Starts using lead-free solder. United States States One production One production company in China 2004 Establishes the method of indirect consequence company in China assessment for jobs. Joins forces with Topcon Technohouse Corporation to integrate environmental protection activities. Auditing and controlling chemical substances Acquires a greater scope of the ISO 14001 contained in procurements from major clients certification from the Japan Audit and Certification 50 companies 30 companies 20 companies Organization for Environment and Quality (JACO). 2005 Completes migration to the ISO 14001:2004 version. Implements measures against legal regulations on the product environment and RoHS-targeted products. Guidance and support to all affiliated companies 2006 Receives the Itabashi Ward Environment Protection Award in the Environment Protection Managers category. Completes implementing measures against RoHS- Formulating environmental policies targeted products. for affiliated companies
Draws up the TOPCON Voluntary Plan(with the target for 2010) 15 companies 20 companies Issues the CSR Report (something that encompasses the Environmental Report).
29 Corporate Social Responsibility Report 2007 Coping with Environment Accounting environmentally conscious products by users is used to calculate the effect of reducing CO2 and electricity ○Target of aggregate calculation: TOPCON CORPORATION expenses, which is eventually the "effect of clients." ○Period of aggregate calculation: from April 1, 2006 to March 31, 2007 ○Method of aggregate calculation: Using the Environmental Chemical Substances Targeted by the Tokyo Ordi-nance Accounting Guidelines for FY 2005 (compiled by the and the Amount of Chemical Substances Handled as Ministry of the Environment) to assess the costs of Specified by the PRTR Law (kg/year) environ-mental protection and the company's own standards Name of substance Amount of Amount of Amount of to assess the effect of environmental protection handling emission movement
Costs of Environmental Protection (Unit: 1,000 yen) Xylene 148 148 0 Amount of Amount of Change of the Category amount of expenses investment expenses against FY 2005 Toluene 191 191 0
Costs in business areas 43,727 160,192 8,979 Lead and its compounds 215 0 0 (Cost of pollution prevention) （8, 400） （36,613） （-423） [A] Acetone 857 857 0 (Cost of global environ- （35,327） （48,040） （10,161） mental protection) Sulfuric acid 376 0 0 (Cost of resource circulation) （0） （75,539） （-759） Methanol 446 446 0 Cost of upstream and 0 140,470 30,238 downstream processes Nitric acid 230 0 0 Cost of management activity 790 79,380 4,692 Hydrochloric acid 176 0 0 Cost of research and 0 188,965 9,325 development Ethylbenzene 7 7 0
Cost of social activity 0 1,351 140 [A] = Chemical substances targeted by the Tokyo ordinance regarding environmental protection (already reported) Cost of environmental injury 0 0 -76 Data about Environmental Burdens for FY 2006 Total 44,517 570,358 53,298 ●Amount of energy consumed Effect of Environmental Protection (Unit: 1,000 yen) Electricity: 12,390,000 (11,910,000) kWh; utility gas: 104,000 (111,000) m3; gasoline: 49 (40) kL Reduction in Effect of investment Item environmental burdens ●Amount of water consumed Effect as a reduction 3 Effect of in environmental Clean water: 35,005 (35,570) m ; clients burdens at the 379ｔ- ＣＯ 2 19,790 industrial water: 20,774 (20,463) m3; application stage sewage water: 54,201 (53,384) m3 ●Amount of materials consumed As used in this Report, the "cost of environmental Iron-based: 10,040 (7,014) kg; copper-based: 2,344 (2,563) kg; aluminum-based: 1,825 (2,093) kg protection" refers to the expenses spent for environmental Note: The data about materials refers to only the materials used protection activities and the "effect of environmental for in-house treatment. ●Amount of environmental pollutant generation protection" refers to the effect as a reduction due to Nitrogen oxides: 66 (104) kg; BOD: 3,403 (4,282) kg; such activities. Regarding plant investment, our active SS: 3,351 (3,607) kg Note: The data for FY 2005 is shown in parentheses. replacements of energy-saving equipment have resulted in an increase in the cost of global environmental protection. Other Environmental Information (as of March 31, 2007)
In order to cope with the RoHS directives of the EU and Names of use distracts defined by the City Place of business: light-industrial district other legal regulations on the product environment, we Planning Law Adjoining land: light-industrial district built a system for managing target substances and have been Lot area 23,499m2 operating it in the entire of the TOPCON GROUP. In Regulations on specified plants None (Tokyo ordinance regarding environmental protection) particular, FY 2006 required a plenty of labor to respond Where to discharge drainage Sewage water to what is called the Chinese version of RoHS. These activities ISO 14001 acquisition September 29, 1997 against legal regulations on the product environment (Name of certification Japan Audit and Certification Organization caused a reduction in environmental burdens in the form organization) for Environment and Quality (JACO) Production and environmental group, Lead office and division names of recycling and appropriate treatment of produced products, environmental protection group with the result that there has been a significant increase Person entirely responsible for implementing environmental Full-time position: four people in the cost of upstream and down-stream processes. protection In the "effect of environmental protection" category, theeffect of energy saving applied in the stage of using
Corporate Social Responsibility Report 2007 30 Third Parity Opinion
will often invite harsh criticism from its readers. This Report is probably an outcome of the hard work of your production staff. Unfortunately, however, you seem to have "fallen victim to the second edition" already in a number of aspects, including the attachment to sentences used in the previous edition. Tamio Yamaguchi, This kind of report is a tool that plays a role of representative Junkangata Shakai Kenkyukai accountability to provide stakeholders with information (specified non-profit organization) useful for their decision making, as well as accelerating environmental communication. Worded differently, the Along with changes in social conditions, the demand from Report can display its original function when and if you stakeholders for reports in general is surely increasing conduct management in accordance with the company's every year. The trend, in turn, is requesting companies to philosophy and policies and accordingly announce the improve their reports. Actually, this Report has advanced outcome and assessment of its result. A look at the recent a step in quality from the report compiled in the previous trend among such reports reveals that there is a clear year. One of such advancements is the section, called transition from reporting of policies and schemes to "Introducing Products to Reduce Environmental Burdens," reporting of the outcome from schemes, and further to appearing as part the Special Topics pages. This special reporting of processes. That's why your readers are so topic is, in fact, a good example of demonstrating Japan's clearly informed of your activity that they want to read CSR trend that most companies are attempting to solve the subsequent edition of your Report. We do hope that social problems through their primary business. In the you will pay attention to this trend and make efforts when future as well, we would like you to create Special Topics writing articles for any subsequent edition of your Report. from this particular angle to impress your readers with a It is also important to make your writing as specific and large number of aspects in your CSR. Secondly, the Report quantitative as possible, rather than being abstract and contains a large number of cases introducing social qualitative. contribution activities taking place overseas by directly facing the fact that 73% of your sales is accounted for by The need for referring to Sociality Report in more detail is overseas markets. We believe that your stance of also pointed out in the Environmental Accounting reporting this way based on reality is extremely important. Guidelines for FY 2007, compiled by the Ministry of the Additionally, the following efforts can be highly evaluated: Environment. When it comes to labor practice, in (a) guidance to the supplementary and detailed information particular, stakeholders, both domestic and overseas, are in your website, (b) identification of reasons for the failure requesting the Report to carry detailed articles, mainly to achieve environmental targets, (c) start of reporting because Japanese labor practice is quite different from any environmental accounting, and (d) disclosure of negative other advanced nation. The fact is that the effort to open information (such as findings in surveillance). As doors to the disclosure of such information is gradually exemplified by the inclusion of this Third Party Opinion, increasing each year. Actually, this Report carries an your effort to make effective use of the assessment by a extremely small number of articles about labor practice. third party in order to improve subsequent reports will We would like you to discuss this issue in-house by all surely be an important step forward because emphasis is means and reflect the result of your discussion in a Report placed on the engagement of stakeholders at present. for FY 2008.
This Report is the second edition of your CSR Report, and This Third Party Opinion has thus placed high hopes on existing readers are expected to place exaggerated hopes the Report of the next and following editions. We believe on the edition to come, while you, as the producer of the that you have the ability to come up to these expectations Report, must be prepared to have a lot of difficulty in not because TOPCON CORPORATION, which has a history of being attached to the framework of the first edition. In more than 75 years, has continued to create a great reality, therefore, the producer is likely to "fall victim to number of products capable of contributing to society is the second edition," with the result that the resultant edition currently engaged in global expansion.
Junkangata Shakai Kenkyukai: This is a civic group whose main purpose is to (1) discuss, from a global point of view, the ideal figure of a circulation- based society, which is to have harmony with the natural ecosystem that should be handed down to our next generations, and (2) research, support, and implement any efforts to form a circulation-based society by local citizens, businesses, and public administrations. URL : http://www.nord-ise.com/junkan/
31 Corporate Social Responsibility Report 2007 In Response to Third Parity Opinion
The second edition of our CSR Report was published and has been reviewed outside the company for the first time. From Mr. Yamaguchi, we received an objective statement, entitled, "Third Parity Opinion." Two among those articles highly evaluated are (1) Introducing Products to Reduce Environmental Burdens and (2) Cases Introducing Social Contribution Activities Taking Place Overseas. We would like to expand these favored comments further in the future until their content becomes much better. Meanwhile, we have also been notified of problems to be solved in the future. Two such examples are (1) the presence of an extremely small number of sociality-related articles and (2) the need to place emphasis on processes in reporting. With these non-favored comments serving as a source for business activity in the future, we would like to reflect the outcome in the next edition of our CSR Report in an easy-to-understand way.
Corporate Social Responsibility Report 2007 32 Corporate Social Responsibility Report