ESG Initiatives

Social initiatives:

safe, employee-friendly workplaces also include the provision

accidents, including that related to the risk of securityof extensive training aimed at preventing occupational

accidents in various situations.

Seeking to deliver safety and peace of mind for anyone and everyone
Core theme 2

SECOM’s Philosophy and the SECOM Group Code of Employee Conduct

Efforts to ensure the full penetration of SECOM’s Philosophy and encourage strict compliance with the SECOM
Group Code of Employee Conduct to bolster employee motivation and earn the trust of societyCore theme 1

Occupational health and safety

Preparation of manuals that draw on our accumulated know-how and promotion of training to ensure employee
safety and collaboration with the SECOM Health Insurance Union to manage employee health
We believe that our ability to provide safety and peace of mind
to our customers depends on first ensuring the health andvitality of our employees. Accordingly, we promote various
initiatives aimed at protecting and enhancing employee healthand creating safe, employee-friendly workplaces.
The Human Resources Department has established asystem to comprehensively manage occupational health incollaboration with the Health Promotion Office, which isstaffed with occupational health physicians (OHPs), and the
SECOM Health Insurance Union. To promote continuous
improvements in occupational health and safety, healthcommittees nationwide meet monthly to discuss key issues,
including employee working hours and efforts to improvehealth, enhance work environments, ensure safety, andprevent risks. We also actively care for employees’ mental
health, conducting stress checks, arranging meetings withpsychiatrists and specialized counselors, to make certain that
employees feel both physically and mentally supported.
To ensure occupational safety, the Operations Divisionverifies day-to-day security operations and works to reduce
identified occupational safety risks. Our operational andcontrol structure facilitates the efficient exchange of reports
and instructions between the front lines and senior
42

SECOM REPORT 2022

management, ensuring that the latter is fully apprised of
day-to-day operations across Japan and is able to provide
guidance for the improvements where necessary to enhanceoccupational safety. The division has developed procedures
and equipment designed to prevent accidents and promotes
initiatives to improve employee skills, including a programthat seeks to improve driving techniques. Efforts to ensureParticipants in Training Aimed at Preventing Occupational
Accidents(Number of people)

3,000

2,739
2,391

2,348
2,000

1,000

0

2020

2021

2022
(Years ended March 31)*Scope of reporting: SECOM CO., LTD., and certain SECOM Group companies

Encouraging awareness of SECOM’s Philosophy andadherence to the SECOM Group Code of Employee Conduct
are essential to maximizing the trust of stakeholders and our
corporate value. Handed down since our establishment,
SECOM’s Philosophy provides a spiritual anchor for Group
employees and the entire SECOM Group. The driving force
behind our growth and evolution, this philosophy emphasizes
a refusal to be content with the status quo and a commitment
to doing what is appropriate. The first element expresses ourdetermination to offer innovative services and systems bychallenging accepted norms, while the second calls for
judging the legitimacy of our actions by examining whether
they are just, fair, and beneficial not only to SECOM but also tosociety as a whole. The SECOM Group Code of Employee
Conduct sets forth ideals for the conduct of employees in bothpublic and private life and specific standards for the day-today performance of duties. We have published SECOM’s
Philosophy and the SECOM Group Code of Employee Conduct
Core theme 3

in the form of handbooks and pocket-sized guides, which are
distributed to employees in Japan and overseas.
Questions on SECOM’s Philosophy and the SECOM Group
Code of Employee Conduct are included in our e-learning
program, which is provided annually, and employees’compliance status is reflected in their semiannual
performance reviews. An employee who becomes aware of aviolation is obliged to submit a report to his or her superior. In
addition, we have established a whistle-blowing system. We
are currently using IT equipment and taking other steps topromote more strict observance.
Since 2018, we have promoted the Tri-ion initiative, whichseeks to ensure that SECOM’s Philosophy fully penetrates
every aspect of our operations and to bolster motivation andproductivity Groupwide. Through this initiative, we aim tonurture employees who embody SECOM’s Philosophy tofoster a stronger corporate culture, ensure a well-establishedbrand, and further earn the trust of society.

Securing and fostering talented human resources

Focus on securing and fostering talented human resources who have the ability to adapt to change and create
value and who seek to contribute to society
Our vibrant, diverse team of employees, who are critical to
our ability to provide services that deliver safety and peaceof mind, are our greatest asset and another driving force
behind our growth and evolution. Accordingly, we strive tosecure and foster talented human resources who have theability to adapt to change and create value and who seek tocontribute to society.
As a company that extends services across Japan andaround the world, we promote active recruiting efforts. We
also work to enhance employee welfare with the goal of
improving our ability to retain human resources and haveestablished a variety of programs designed to boost
motivation and productivity, as well as to create employeefriendly workplaces. One such program enables employees tochoose the geographic location to which they are assigned tosuit career phase or personal preference.
We provide extensive training to foster human resources
with high ethical standards and superior skills. In addition to
training for all new employees, we have developed department-

and job-specific curricula that reinforce practical capabilities ina manner that benefits employees on the front lines. We have
Participation in Training Programs(Hours)325,000(Number of people)
Hours spent in training (left scale)

18,000289,364
15,884250,000

Participants(right scale)

12,000201,640

215,764
8,229

175,000

6,000

6,190
100,000

0

2020

2021

2022
(Years ended March 31)

Notes: 1. Scope of reporting: SECOM’s four domestic human resources
development centers
2. Figures include participants in training to provide security services
for the Rugby World Cup Japan 2019 and the Olympic andParalympic Games Tokyo 2020.

SECOM REPORT 2022

43

ESG Initiatives

employees achieve a balance between their careers andprivate lives and enhance employee retention.

also launched a variety of specialized training options, including
an overseas study program and a subsidy system for
employees to take correspondence courses. In the area of
training for security guards, we have introduced VR technology,
among others, to improve effectiveness and ensure employees
acquire excellent discernment and know-how.
Employee performance reviews look to impartiallyevaluate employees’ efforts and support self-realization.
Evaluations are based on reports prepared by employees
Core theme 4

assessing their execution of duties, achievements, and areas
in need of improvement, and rational assessment categories
optimized for each particular job. We use an open and fairformat whereby review results are disclosed to employees. In
addition, we promote self-actualization through systems
designed to assist with career development, including the
Self-Reporting System and Challenge Support System, which
encourage employees to declare and assists their efforts torealize their own future goals and aspirations.

Advancing diversity

Assignment of diversity and inclusion staff to the Human Resource Department to promote the creation of
positive work environments in which diverse employees can maximize their capabilities
Recognizing the importance of welcoming a broad spectrumof individuals with wide-ranging ideas to the creation of newvalue, we actively promote diversity in our labor force,
including by advancing career opportunities for female
employees. In 2017, we established the Declaration of
Promoting Diversity and Inclusions, and assigned diversity
and inclusion staff to the Human Resources Department. We
currently promote the creation of work environments thatmaximize the capabilities of all employees regardless ofgender, nationality, age, physical ability, sexual orientation, or
gender identity.
In April 2021, we formulated a new action plan foradvancing career opportunities for female employees. We
continue working to achieve the objectives of the plan by
actively fostering female leaders, expanding the scope ofjobs available to female employees, taking steps to prevent
harassment, and promoting work-life balance, thereby
creating positive working environments for women.
Labor Force by Gender

As of March 31, 2022

Male

FemaleExecutive management

89.6%

10.4%

Other

79.6%

20.4%

Total

82.8%

17.2%

Action Plan for Fostering Career Opportunities for
Female Employees
Period:April 1, 2021–March 31, 2026
Objectives:• Increase the number of female employees at manager
level*1 to at least 200 and at supervisor level*2 to atleast 400.
*1 Manager level: Corporate headquarters assistant manager or higher,
and regional headquarters and regional office manager or higher*2 Supervisor level: Regional headquarters and regional officesupervisor• Expand the scope of jobs available to women andincrease the number of female employees by morethan 500 from 2,396 in 2016 (the year the previous
management plan was formulated).
• To prevent harassment, provide online training for all
employees once annually and training for newly
appointed regional office general managers at leastonce.
• Extend the average length of service of female
employees by more than one year from 12.2 years in
the fiscal year ended March 31, 2020.
• Increase the percentage of annual paid vacation days
taken by employees by more than 10% from 53.2% in
the fiscal year ended March 31, 2020.

*Scope of reporting: SECOM CO., LTD.

Core theme 5

Promoting work–life balance

Establishment of programs and promotion of ongoing efforts to enhance work–life balance and increase
employee retention
We view work–life balance, including sufficient physical andmental rest and a fulfilling private life, as essential to theability to approach one’s work with energy and focus. In

44

SECOM REPORT 2022

Flex vacation: Enables employees to take 10 consecutive
vacation days annually, in theory at any time during the year
Refresh vacation: A two-week vacation available toemployees every 10 years
Maternity leave: Available for the six weeks prior to andeight weeks after giving birth. An additional two weeks isavailable to employees who wish to start their maternity
leave earlierChildcare leave: Can be taken by both female and male
employees up until the day before the child’s third birthday
Change in working hours/exemption (shorter working
hours) for childcare: Available within certain restrictions
on request to employees who are pregnant or havechildren who have not yet entered the third grade of

addition to actively encouraging employees to take annual
paid vacation days, we have established vacation and leavesystems in line with which we promote ongoing efforts to help

elementary school (exceeds legal requirement, which is
children under the age of three)Nursing care leave or change in working hours/
exemption (shorter working hours) for nursing care:
Full leave or adjusted working hours for up to six months(maximum of 186 days) for employees providing nursing
care to a family member wishing to return to work full-timeafter conclusion of nursing care provision
SECOM Life Support Program: Allows employees totemporarily change work style and/or location to which
they are assigned to provide childcare or nursing care or toaccompany a spouse who has been transferred overseas
and provides support for long-term career advancement
Job Return Program: Enables people who have left
employment at SECOM for unavoidable reasons such as
childbirth, childcare or nursing care to apply to return to work

Percentage of Annual Paid Vacation Days Taken by
Employees

Employees Taking Childcare Leave(%)(Number of people)(Number of people)

70

200

183

62.0
58.8

60

53.2

150
100

50
50

Total
(left scale)

40

31

154

30

127
Male
employees(right scale)

22
20

10

10

0

40

2020

2021

*Scope of reporting: SECOM CO., LTD.

Core theme 6

0

2022

2020

(Years ended March 31)*Scope of reporting: SECOM CO., LTD.

2021

2022
(Years ended March 31)

Dialogue with employees

Employee job satisfaction surveys and the exchange of opinions between the SECOM Employee Union
Federation and executives to facilitate the creation of employee-friendly workplaces
We seek to achieve sustainable growth as a strong, flexible
organization that is impervious to the impact of socialchange and the competitive environment. We are thus
working to create a virtuous circle, recognizing theimportance of enabling employees who share SECOM’s
Philosophy to demonstrate their full potential, which helps
raise the quality of the services and products we provide,
thereby enhancing customer satisfaction and earning thetrust of society, which in turn increases employees’ jobsatisfaction. Since 2016, we have conducted an annual
anonymous employee job satisfaction survey. In the fiscal
year ended March 31, 2022, the response rate for this survey
was 82.1%.
Reflecting our fundamental belief that the growth of ouremployees is inextricably linked to our prosperity, we signed
a union membership qualification agreement with SECOM
Lively Union (the SECOM Employee Union Federation), which

was established in 1964, and became a union shop, meaningthat in principle employees automatically become union
members when they are hired. As a consequence, our union
membership rate for eligible employees is 100%.
We place a priority on dialogue between labor andmanagement. With the aim of boosting employee morale,building a vibrant and healthy organizational culture andmaximizing organizational energy, the management
representatives, including the President and Representative
Director, meet monthly with SECOM Lively Union to exchange
views. Discussions are also held at SECOM Group companies
and branches across Japan to address issues such as
improving workplace environments and operating procedures
and ensuring occupational health and safety. SECOM Lively
Union also exchanges views with management throughmeetings with employees on organizational culture and the
SECOM Employee Central Council.

SECOM REPORT 2022

45

ESG Initiatives

Basic philosophy
With the aim of earning the continued support of ourcustomers, shareholders, business partners, employees,
local communities, and other stakeholders as a company
with value that is worthy of trust, we strive to maximize
corporate and shareholder value over the medium to longterm and recognize the importance of fulfilling our
responsibilities as a corporate citizen and achieving
sustainable growth and development.

Governance initiatives:
Working continuously to enhance and strengthen corporate governanceIn line with Japan’s Corporate Governance Code and at
the direction of top management, outside members of theBoard of Directors and Audit & Supervisory Board provide
independent oversight of the management team’s
performance in a manner that takes into account theinterest of stakeholders and ensures the appropriate
execution of business activities. We also work actively todisclose information to shareholders and other stakeholders
and strengthen our compliance framework.

Outline of corporate governance system
We are a company with an Audit & Supervisory Board. The
Board of Directors determines overall management andbusiness execution policies. Executive officers, led by the
President and Representative Director, are responsible forbusiness execution. The Audit & Supervisory Board, which
includes three outside members, and the Board of Directors
coordinate with the internal audit departments to audit andsupervise directors’ and executive officers’ discharge of theirduties. Under our corporate governance system, four outside
directors are also appointed to the Board of Directors toincorporate external perspectives in decision making andensure the legality and objectivity of management. We
believe that this enables us to conduct independent oversightof management and ensure appropriate business execution.
The Nomination and Compensation Committee has been
established as a discretionary committee of the Board of
Directors. This committee, which is responsible for presenting
candidates for the position of director to the Board of Directors
and for ensuring the appropriateness of remuneration for
directors, comprises six directors, four of whom are outside.

Corporate Governance Organization
General Meeting of Shareholders

Core theme 1

Corporate governanceIndependent oversight of management and ensure proper business execution while working to actively disclose
information to shareholders and other stakeholders

Appointment/
dismissal

Board of Directors(10 members, four of whom
are outside directors)

Initiatives to strengthen corporate governance1986
Establishment ofcorporate governancesystem
Separation of management
and execution
Number of directors designatedin the Articles of Incorporation

Selection/
oversight

2000

2010

1986: Creates SECOM’s Philosophy
2006: Formulates basic rules of management for SECOM Group companies

2004: Institutes an executive officer system

2000–2001: 28–29
From 2004: 10–13
2002–2003: 22–23

SECOM REPORT 2022

Audit & Supervisory Board(Five members, three ofwhom are outside)
Office of Audit & Supervisory Board:
Three employees(Operational, accounting and compliance audits)

Chairman and
Representative Director
President andRepresentative Director

Internal audit departments

Legal affairs departments
Coordination

Enhancement of compliance/internal auditing

Executive Officers

Organizational Culture
Committee

Audit by independent
public accountants
Accounting audit

Up to 2010: 4 From 2011: 5

Number of outside
directors

46

Nomination
andCompensation
Committee

Up to 2004: Maximum of 40 From 2005: Maximum of 20

Number of directors

Remuneration for/appointment of directors

Determination/submission ofdecisions regarding remuneration

Deliberation

Up to 2003: 2 years From 2004: 1 year

Number of outside
auditors

Authorization/consultation
regarding remuneration

Reporting on important matters

2010: Establishes the SECOM Group Management Committee

Term of service of
directors

Number of auditors

2020

Appointment/
dismissal

Proposal of candidates forthe position of director

2013–2015: 2
From 2020: 4
2016–2019: 3
Up to 2002: 2 From 2003: 3

2016: Establishes Nomination and Compensation Committee
2017: Adopts performance-linked remuneration system

Board of Directors

Executive Officers

Audit & Supervisory Board

The Board of Directors comprises 10
directors and in principle meets monthly,with five members of the Audit &Supervisory Board also in attendance. The
Board of Directors is responsible for
deciding overall management policies andbusiness execution policies, as well as formonitoring the performance of duties bydirectors, and strives to promote theactive exchange of opinions with the aimof ensuring effective and swift decision
making. Six of the 10 members are
responsible for business execution, withthe remaining four members (outside
directors) having no involvement.

We have adopted an executive officers
system, whereby the Board of Directors is
responsible for decision making and theexecutive officers are responsible forbusiness execution. This was done withthe aim of strengthening field divisions
and enhancing customer service systems
by clarifying responsibilities and authority
and expediting business execution. We
currently have 28 executive officers, six ofwhom are also directors.

The Audit & Supervisory Board comprises
five members, two of whom are full-timeand three of whom are outside. In
principle, the Audit & Supervisory Board
meets monthly. Individuals well-versed inour businesses and internal affairs, aswell as in finance and accounting, areappointed to serve as full-time members,
while individuals who are independent of
the management team, have extensive
knowledge of corporate management,
legal, financial and other matters and arecapable of providing effective oversightand monitoring of the management team,are appointed to serve as outside
members.

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ESG Initiatives

Nomination of candidates for appointment to the Board of
Directors and the Audit & Supervisory Board
In accordance with the policy for appointment set forth by
the Board of Directors, candidates for appointment to theBoard of Directors and the Audit & Supervisory Board are
decided through deliberation by the Board of Directors.

Candidates for the Board of Directors are nominated fromamong candidates determined through discussion by the
Nomination and Compensation Committee, the majority ofwhom are outside directors. Candidates for the Audit &Supervisory Board are nominated with the agreement of the
Audit & Supervisory Board.

Skills Matrix for SECOM Directors and Audit & Supervisory Board Members

Name and position

Corporate
management

Finance andaccounting

Legal affairs,
complianceand riskmanagement

Sustainability
and
ESG

Security
services
industry

Globalbusiness

ICT andtechnology

Yasuo Nakayama
Chairman and
Representative Director

Internal audits and cooperation among board members
and offices
Audits by Audit & Supervisory Board members
Audit & Supervisory Board members attend important
meetings, including those of the Board of Directors, toexchange opinions on overall corporate management, as
well as to collect reports on the discharge of duties fromdirectors and other pertinent individuals and conduct audits
focused on the possible occurrence of violations of laws,
regulations, the Articles of Incorporation and/or shareholders’interests. The Audit & Supervisory Board also conducts
audits of our overall business activities, as well as those of
subsidiaries and affiliates, in accordance with annual audit
plans.

Ichiro Ozeki
President andRepresentative Director

Yasuyuki YoshidaPrincipal Activities of Audit & Supervisory Board membersin the Fiscal Year Ended March 31, 2022

Senior Executive Director

Participation in meetings of the Board of Directors

100%

Tatsuro Fuse

Participation in meetings of the Audit &Supervisory Board

100%

Executive Director

Tatsuya Izumida
Director

Information sessions with directors and otherexecutives of the parent company, subsidiaries
and affiliated companies

76 times

Audits conducted by Audit & Supervisory Board
members at remote locations

76 locations

Tatsushi Kurihara
Director

Takaharu Hirose
Outside Director

Hirobumi Kawano
Outside Director

Hajime Watanabe

Regular meetings between the President and Representative
Director and Audit & Supervisory Board members
Audit & Supervisory Board members hold regular (monthly)
meetings with the President and Representative Director,
during which they exchange opinions on importantmanagement-related issues, including the results of audits,
to ensure common understanding.
Meetings between Audit & Supervisory Board members
and accounting auditors
Audit & Supervisory Board members meet regularly (sixtimes annually) with the accounting auditors, as well as
additional meetings as necessary, for the purpose of
exchanging opinions and information. Audit & Supervisory
Board members receive explanations and exchange opinions
regarding annual audit plans and audit results. If necessary,
Audit & Supervisory Board members also act as witnesses
during audits conducted by the accounting auditors at
remote locations and during audit reviews (22 times in thefiscal year ended March 31, 2022).
Collaboration with internal audit and other departments
Audit & Supervisory Board members hold regular (monthly)
meetings with the Internal Audit and ComplianceDepartment, during which they receive reports andexchange opinions on the results of internal audits and, as
appropriate, receive reports on inspections of subsidiaries
from and exchange opinions and information with the Group
Governance Department. If necessary, to ensure theefficiency of audits, Audit & Supervisory Board members ask
the internal audit departments to conduct investigations.

Outside Director

Outside directors and outside Audit & Supervisory Board members
Miri Hara
Outside Director

Takayuki Ito
Audit & Supervisory Board
MemberKoji Kato
Audit & Supervisory Board
Member

Hideki Kato
Outside Audit & Supervisory
Board Member

Makoto Yasuda
Outside Audit & Supervisory
Board Member

Setsuo Tanaka
Outside Audit & Supervisory
Board Member

We appoint individuals who have extensive knowledge ofcorporate management to serve as outside directors, thereby
incorporating a broad range of external perspectives notconstrained by the internal affairs. We thus have a structurethat ensures the transparency and objectivity of management.
We appoint Audit & Supervisory Board members who
have a wealth of knowledge of corporate management, legal,financial and other matters (including three outside members,
who are essentially independent of the management team).
We have also established an auditing organization (including
the Office of Audit & Supervisory Board Members) that
operates independent of day-to-day operations and a process(including periodic meetings between the President andRepresentative Director, among others, and the Audit &Supervisory Board members). This ensures that Audit &Supervisory Board members’ objective and neutral opinions
are reflected promptly in operations. As a consequence, we
believe that we fulfill our responsibility to conduct
independent oversight of management performance in amanner that takes into account the interests of stakeholders.
We appoint outside directors and outside Audit &Supervisory Board members on the basis of pertinent
requirements set forth in Japan’s Companies Act and thestandards concerning independence set forth by financial
instruments exchanges.

Notes: 1. A maximum of four areas of knowledge and experience are indicated for each Director and Audit & Supervisory Board member.
2. This skills matrix does not represent the entire breadth of knowledge and experience of each Director and Audit & Supervisory Board member.

48

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ESG Initiatives

Outside Directors and Outside Audit & Supervisory Board Members

Name

Principal activities

Takaharu Hirose

Mr. Hirose offers advice and recommendations at meetings ofthe Board of Directors based on experience and insights gainedin the foundation and management of multiple enterprises andindustry organizations. In addition, he participates indeliberations of the Nomination and Compensation Committee
as a member thereof. Through these activities, he performs his
supervisory function as an outside director adequately.

Hirobumi Kawano

Outsidedirectors

Attendanceat Board of
Directors’
meetings

Attendanceat Audit &Supervisory
Board meetings

13
—
13

13
—

Remuneration for directors consists of pecuniary remuneration(fixed monthly salary and bonuses) and share-based
remuneration (shares with restrictions on transfer). Outside
directors receive a fixed salary only. The fixed monthly salary
portion of pecuniary remuneration paid to directors and theshare-based remuneration paid to directors (excluding
outside directors) are determined comprehensively inconsideration of job responsibilities and years of service, as
well as the performance of the Company. Bonuses paid to
directors (excluding outside directors) are determined basedon consolidated operating profit, a key management target, as

Miri Hara

Hideki Kato

Makoto Yasuda

Setsuo Tanaka

Mr. Watanabe offers advice and recommendations at meetingsof the Board of Directors based on experience and insights
gained through his many years of experience in corporate
management. In addition, he participates in deliberations of theNomination and Compensation Committee as a member thereof.
Through these activities, he performs his supervisory function
as an outside director adequately.
Ms. Hara offers advice and recommendations at meetings of theBoard of Directors based on experience and insights gained as acorporate officer and a tax accountant. In addition, sheparticipates in deliberations of the Nomination andCompensation Committee as a member thereof. Through these
activities, she performs her supervisory function as an outside
director adequately.
Mr. Kato offers advice and recommendations at meetings of theBoard of Directors, among others, based on experience gained
through the execution of national policies and insights gained asa result of his accomplishments at a policy think tank. He alsoasks questions and states opinions to clarify issues.
Mr. Yasuda offers advice and recommendations at meetings ofthe Board of Directors, among others, based on experience andinsights gained in the management of a global enterprise. He
also asks questions and states opinions to clarify issues.
Mr. Tanaka offers advice and recommendations at meetings ofthe Board of Directors, among others, based on experience andinsights gained through the holding of important positions ingovernment. He also asks questions and states opinions toclarify issues.

well as on job responsibilities and years of service. The
relative proportion of fixed monthly salary, bonuses, andshared-based remuneration paid to directors (excluding
outside directors) is approximately 80:15:5.
Remuneration for Audit & Supervisory Board members,
which comprises pecuniary remuneration only, is determinedthrough discussion involving Audit & Supervisory Board
members in amounts commensurate with job responsibilities.
Remuneration for Audit & Supervisory Board members is set
within the maximum limit resolved at the Ordinary General
Meeting of Shareholders.

Remuneration for Directors and Audit & Supervisory Board Members in the Fiscal Year Ended March 31, 2022

13

Breakdown of total remuneration (Millions of yen)
PositionHajime Watanabe

OutsideAudit &
Supervisory
Board
members

Mr. Kawano offers advice and recommendations at meetings ofthe Board of Directors based on experience and insights gained
through the holding of important positions in government. In
addition, he participates in deliberations of the Nomination andCompensation Committee as a member thereof. Through these
activities, he performs his supervisory function as an outside
director adequately.

Remuneration for directors and Audit & Supervisory Board members

Total
remuneration(Millions of yen)Basicremuneration
Fixed salary

Performance-based
remuneration
Stock options

Nonpecuniary
remuneration

Bonus

Number ofentitled
individuals

Restricted stock

13
—
13

13
—
13

13

12

13

12

Directors(excluding outside directors)

374

298

—

57

18

7

Audit & Supervisory
Board members(excluding outside members)

45

45

—

—

—

2

Outside directors

40

40

—

—

—

4

Outside Audit & Supervisory
Board members

25

25

—

—

—

3

Total

485

409

—

57

18

16

Note: The target for consolidated operating proﬁt for the ﬁscal year ended March 31, 2022, was ¥139,500 million, while the actual result was ¥143,499 million.
(Japanese GAAP)

Philosophy regarding the diversity and size of the Board of Directors

13

12

13

12

13

12

13

12

The Board of Directors consists of internal directors, who arefamiliar with SECOM’s businesses and have diverse
knowledge, and several outside directors with extensive
insight in corporate management and other areas. Diversity
in terms of gender and international experience is ensured

and the number of members is appropriate to facilitate
discussions and resolutions of substance. We will continue
working to enhance the effectiveness of the Board of
Directors by promoting further diversity and ensuring theappropriate size of the Board.

Note: Information on attendance at meetings of the Board of Directors and Audit & Supervisory Board is for the ﬁscal year ended March 31, 2022.

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ESG Initiatives

Directors, Audit & Supervisory Board Members and Executive Officers(As of July 31, 2022)

Evaluation of the Board of Directors’ effectivenessEvaluation process
The effectiveness of the Board of Directors is evaluatedannually. In the period under review, a survey was conductedin January 2022 and responses were collated by the Board’s
secretariat in early March. Findings were subsequently
discussed by the Board.
Summary of findings
Composition of the Board of Directors
The opinion was expressed that the diversity of the Board of
Directors and the balance between execution and oversightare suitable and that the Board is an appropriate size toensure active discussion and swift decision making. While it
was acknowledged that the appointment of a female director
in 2020 has improved gender diversity, and that thepercentage of outside directors has increased, constructive
views were also expressed regarding further diversificationof the Board’s composition in terms of gender and otherconsiderations, including the need to promote female
directors from within.
Administration of Board of Directors’ Meetings
The Board of Directors meets once monthly in principle toenable swift discussion and resolution of critical matters. To
ensure that directors and Audit & Supervisory Board
members are able to make appropriate decisions, mattersdeemed particularly critical are discussed by the Board of
Directors prior to resolution and a progress report on thosematters is made to the Board of Directors subsequent to

Directors
resolution. Both outside directors and outside Audit &Supervisory Board members actively made comments andexpressed the opinion that the atmosphere was conducive tofree and open discussion. The view was also expressed that
improvements in the process for advance discussion andreporting on ongoing progress had been seen since theprevious survey. Various opinions were also expressed,
including that opportunities should be created for freedebate, thereby invigorating discussion, as well as forfurther communication with outside directors.
Oversight function of the Board of Directors
Matters handled by the Board of Directors were selected
appropriately, based on the Rules of the Board of Directors,
and the opinion was expressed that discussions on
management policies and corporate philosophy wereadequate. In addition, constructive views were expressed
regarding concrete discussions on the progress of
discussions, currently being undertaken from a mediumto long-term perspective, on the general direction ofmanagement strategies and changes in the operating
environment and related risks arising from technologicalinnovation and a declining labor force.

Ichiro Ozeki

Yasuyuki Yoshida

Tatsuro Fuse

Chairman and
Representative Director

President andRepresentative Director

Senior Executive
Director

Executive Director

Tatsuya Izumida

Tatsushi Kurihara

Takaharu Hirose

Hirobumi Kawano Hajime Watanabe

Miri Hara

Director

Director

Outside Director

Outside Director

Outside Director

Outside Director

Audit & Supervisory Board Members

Future initiatives
To further enhance corporate value and realize an evenmore effective Board of Directors, we will continue topromote efforts to improve the Board’s functions based on
evaluations and opinions expressed.

Status of strategic shareholdings
Policy on shareholdings
We may, after comprehensive examination, acquire and/or
hold listed shares for the purpose of business participation,
collaboration, capital or business tie-up, business incubation,or the maintenance or expansion of transactions involving
our services and products.

Yasuo Nakayama

Verification of the rationality of shareholdings
The Board of Directors assesses the benefits and risks arisingfrom each holding annually. In addition to confirming thestatus of transactions with, as well as the growth potential
and profitability of, each investee company, based on financial
condition and operating performance, we comprehensively
examine the appropriateness of the holding and determine
whether it should be maintained.

Takayuki Ito

Koji Kato

Hideki Kato

Makoto Yasuda

Setsuo Tanaka

Audit & Supervisory
Board Member

Audit & Supervisory
Board Member

OutsideAudit & Supervisory
Board Member

OutsideAudit & Supervisory
Board Member

OutsideAudit & Supervisory
Board Member

Executive Team
Directors

Executive Officers

Yasuo Nakayama

Kenichi Furukawa

Kensuke Shindo

Noriyuki Uematsu

Toshinori Sugimoto

Chairman and
Representative Director

Managing Executive Officer

Executive Officer

Executive Officer

Executive Officer

Osamu Ueda

Yasufumi Kuwahara

Atsushi Komatsu

Satoshi Araki

Ichiro Ozeki

Managing Executive Officer

Executive Officer

Executive Officer

Executive Officer

President andRepresentative Director

Yoshinori Yamanaka

Noriyuki Fukuoka

Takehiko Senda

Satoshi Takizawa

Managing Executive Officer

Executive Officer

Executive Officer

Executive Officer

Yoichi SugimotoTakeshi Akagi

Takashi Nakada

Izumi Sawamoto

Managing Executive Officer

Executive Officer

Executive Officer

Executive Officer

Sumiyuki Fukumitsu

Sadahiro Sato

Michiyoshi Morita

Managing Executive Officer

Executive Officer

Executive Officer

Osamu Nagai

Seiya Nagao

Makoto Inaba

Managing Executive Officer

Executive Officer

Executive Officer

Yasuyuki Yoshida
Senior Executive Director

Tatsuro Fuse
Executive Director

Tatsuya Izumida
Director

Tatsushi Kurihara
Director

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ESG Initiatives

Messages from Outside Officers

Takaharu Hirose

Miri Hara

Outside Director

Outside Director

Important position concurrently
held in another organization

Important positions concurrently
held in other organizations

Chairman and Representative Director,
Monitas, Inc.

Representative Certified Public Tax
Accountant, Tax Corporation Yokohama
Benten Accounting, Inc.
Outside Director, Nippon Sanso Holdings
Corporation

SECOM’s Board of Directors meetings are very lively and theupbeat atmosphere ensures participants are able to discuss
things in a free and open manner. When deliberating andvoting on important proposals, we receive easy-tounderstand explanations, based on relevant material, in
advance, enabling us to engage in active, informed
discussions. Ever since taking up this position in 2013, theinside directors, including the Board’s chairperson, havetaken a positive view of incorporating the views of outside
directors and outside members of the Audit & Supervisory
Board into management strategy. When I was first
appointed, though, my impression was that the Company
was rather conservative, which seemed fitting for a security
services company. I am proud that by providing objective,
sometimes opposing, opinions, I and the other outside
directors have been able to play a role in galvanizing theBoard of Directors to be more proactive in taking onchallenges. The Company’s 10 directors currently include
four outside directors. We come from a variety ofbackgrounds and bring a wealth of knowledge, so I believe
this is an appropriate composition.
Since my student days, I have been involved in the
launch of start-ups and the establishment and managementof industry associations. Based on my experience, I
have spoken at Board of Directors meetings about theneed to be open to incorporating new technologies fromother companies, rather than insisting on only using theCompany’s own technologies, given the dizzying pace oftechnological change today. This is one factor that has
encouraged SECOM to promote open innovation. Looking
ahead, I would like to help create a system for fostering
the ambitious young employees that will be responsiblefor driving the SECOM Group forward and ensuresustainable growth.
With society continuing to evolve dramatically, I see oneof my roles as outside director as being to encourage theBoard of Directors to further advance discussion from a
medium- to long-term perspective regarding, among others,
the general direction of management strategies andassociated risks in an era of uncertainty.

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Two years have passed since I was appointed to the positionof outside director at SECOM. The Board’s chairperson
actively encourages all directors to speak at meetings, so
discussions are always spirited. If I have any questions, I
can ask them frankly and without trepidation and therelevant inside director will respond and provide a detailed
explanation. One time, I asked if it was possible to create a
simpler monitoring system for seniors. This was just about
the time we announced the SECOM Monitoring Service for
Seniors, which allows family members to monitor seniors
from a smartphone. Listening to the meticulous explanation
given by the director, I was reminded once again of the firm
grasp SECOM has on the needs of a diverse range ofcustomers.
I recognize that expressing opinions from theperspective of a woman with experiences that have real
relevance to the daily lives of ordinary people is also
something expected of me as an outside director. I am
concerned about the fact that SECOM has only one woman
on its Board of Directors. In April 2021, the Company
formulated an action plan for fostering career opportunities
for female employees and works to support women’s
efforts to achieve a balance between their careers andprivate lives. If feasible, I would like to have the opportunity
to meet with female employees to discuss measures tofurther bolster their professional motivation.
In recent years, companies’ efforts to address ESGrelated issues are attracting considerable attention. To
my mind, SECOM’s greatest strength on this front is thatit has always conducted its operations in accordancewith a corporate philosophy and code of conduct thatemphasize social contribution and the fair assessment ofvalue. SECOM has taken its first steps toward becoming a
global organization. I look forward to the SECOM Group’s
people around the world remaining true to its corporate
philosophy as they seek to respond to the universal desire
for ANSHIN, peace of mind, earn the trust of customers andexpand the Group’s presence in overseas markets.

Core theme 2Compliance

Efforts to improve compliance by promoting strict adherence to the SECOM Group Code of Employee Conduct
Basic philosophy
We provide security services, the objective of which is toprotect the lives and assets of our customers from legal
violations or malfeasance by third parties. As such, we
recognize that it is essential that we conduct our duties ingood faith and in a manner deserving of the trust of ourcustomers and society. A key feature of the security services
business is that the employees who provide services are in aposition of regulating others. Because they are in thisposition of regulating others, employees must also conduct
themselves in a disciplined manner, discharging their duties
in good faith and in compliance with the letter and the spiritof the law, to earn the trust of customers, which is critical to
the security services business. Since our establishment, wehave viewed compliance as a matter of utmost importance.
Accordingly, our basic policy has always been to promote

systematic measures to ensure all employees’ unqualifiedcompliance with the letter and spirit of the law. This has
earned us the trust of a wide range of customers andsupported steady growth.
The SECOM Group Code of Employee Conduct prescribes
specific standards for employee behavior and ethicalprinciples that must be observed by all executives andemployees in their relationships with stakeholders, including
communities, customers, and business partners. The code,
which is also published in the form of a pocket-sized guide,
thus serves as a universal and timeless template foreveryone in the SECOM family. Standards govern, among
others, deterring relations with antisocial elements,
prohibiting of corruption and bribery, and complying withrelated laws.

System for promotion and administration
We recognize compliance as not only the observance of laws
and regulations, and of SECOM’s Articles of Incorporation,
but also the foundation of the stringent management of our
day-to-day operations. Individual employees are responsible
for promoting adherence to the SECOM Group Code of
Employee Conduct. Managers are charged with providing
guidance regarding the SECOM Group Code of Employee
Conduct, including standards governing compliance, andsupervising the actions of employees to ensure compliance.
Executive officers are responsible for overseeing thedepartments they supervise, while the President andRepresentative Director provides control for the Company
as a whole.

Once annually, executive officers analyze and evaluatebusiness and malfeasance risks in the business for which
they are responsible and report their findings to the
President and Representative Director and the members of
the Audit & Supervisory Board, as well as review establishedinternal rules and various manuals and make revisions asnecessary.
The duties of the internal audit departments, i.e., theInternal Audit and Compliance Department and the Group
Governance Department, include inspecting each group,
department, and subsidiary, providing guidance on addressing
matters requiring corrective action, and reporting inspection
results to the President and Representative Director, as wellas to relevant executive officers.

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ESG Initiatives

Whistle-blowing system
The SECOM Group Code of Employee Conduct requires

Core theme 3
Whistle-blower’s names and the content of whistle-blower

employees to report to their superior should they discoverreports are kept confidential. As long as a report has beenthat an employee, executive, or individual affiliated with amade in good faith, whistle-blowers are protected from any

subcontractor has engaged in or appears likely to engage

adverse impacts even if the report is not borne out by thein an action that violates the code or could damage thesubsequent investigation. Pertinent executive officers are

credibility of the Company. In the event that no corrective

obliged to swiftly assess the results of investigations and takemeasures are taken after a report has been made, or if

appropriate corrective measures to resolve the situation.

circumstances make reporting to a supervisor difficult,

Whistle-blowers are notified confidentially of the nature andemployees may report directly to the Internal Audit andoutcome of investigations.
Whistle-Blower Reports Received

Compliance Department via the Harassment Help Desk.

Year ended
Year ended
Year ended
March 31, 2020 March 31, 2021 March 31, 2022

Executives and employees of subsidiaries may reportviolations via the Group Head Office Helpline directly to
the Group Governance Department.

Number ofreports

56

74

92

Note: Numbers represent the actual number of reports received across the
SECOM Group. Beginning in the fiscal year ended March 31, 2022, thisincludes reports received through the Hot Helpline, the Group Head
Office Helpline and the Harassment Help Desk.

Organizational Culture Committee
The Organizational Culture Committee is a standing
committee chaired by the President and Representative
Director that meets periodically or as necessary at thedirection of the President and Representative Director andexamines important organizational culture-related issues anddetermines important official commendations andpunishments.
The Organizational Culture Committee also deliberates onmatters related to compliance with and the administration of
the SECOM Group Code of Employee Conduct that havebeen reported to the President and Representative Director
by the Internal Audit and Compliance Department or the
executive officer in charge. If necessary, the committee
examines proposals for modifying the system foradministering compliance or amending the SECOM Group
Code of Employee Conduct. All such proposals must be
deliberated by the Organizational Culture Committee,
reviewed by Audit & Supervisory Board members andapproved by the Board of Directors.

Global compliance training
We have translated SECOM’s Philosophy and the SECOM
Group Code of Employee Conduct, which outlines the basic
concept and specific standards for employee behavior, into
multiple different languages and work to advance awareness

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SECOM REPORT 2022

Promotion of information security through the establishment of the SECOM Group Information Security Basic
Policy and creating and operating a robust information security system
Policy and system for promoting information security

Compliance Department via the Hot Helpline, or to the
Human Resources Department and Internal Audit andInformation and data security

across the global SECOM Group. We also provide training to
the senior management of overseas Group companies on key
aspects of compliance, including observance of laws andregulations, the prevention of bribery, and internal controls.

With the rapid spread of IT, information security risks haverisen significantly, as can be seen from the increasing
sophistication of cyber attacks. Any leaks of personal or
confidential information entrusted to us by a customer has
the potential to seriously hinder our ability to provide security
services, damage or adversely impact the customer, andresult in the forfeiture of our brand image and reputation for
reliability. Accordingly, we have created and maintain a robust
information security system.
We have also established the SECOM Group Information
Security Basic Policy, to guide our efforts to promote stringent

information security. When we outsource work, we enter into
appropriate contracts and provide guidance and supervision
to subcontractors. We have put an executive officer in chargeof information security for the Group as a whole. In addition,
executive officers in charge of each business have been maderesponsible for information security–related matters for their
particular business, as well as for collaborating with theexecutive officer in charge of information security to report on
issues and presenting proposals to the President andRepresentative Director.

Reducing information security risk
We have implemented powerful security measures to reducerisks associated with information leaks and cyber attacks. We
also work to ensure that all employees of the SECOM Group,
regardless of employment format, comply fully with our
information security rules, which include rules governing theuse of personal computers and cellular telephones that must
be protected for confidentiality reasons, the storage andcarrying of information, and steps to be taken when an
information security–related incident arises, or a violation of
any other information security rule is discovered. Information

system controls and audits are the responsibility of subsidiary
Secom Trust Systems and are conducted in accordance withJapan’s Information Security Management System (ISMS)
standards under the guidance of the executive officer incharge of information security. As well as conducting regularassessments of vulnerability to external cyber attack risks, wemonitor information systems around the clock to ensure weare prepared to respond to risks, including those related tolarge-scale disasters and cyber attacks.

Protecting personal information
The SECOM Group Code of Employee Conduct states that all
information obtained in the course of business is confidential
and must not be leaked, a stipulation with which all executives
and employees must strictly comply. We strive to prevent
leakage, loss, and damage through employee training andefforts to promote awareness regarding the treatment of
personal information, as well as by ensuring stringent
management.
All employees are required to participate in e-learning
programs and tests annually to confirm understanding of andadherence to basic procedures and rules. The internal audit
departments conduct periodic inspections of the handling of
personal information, data management, and access control
at each SECOM Group site. In addition, we have established acontact point for queries regarding the handling of personal

information and for complaints and consultations regarding
our system for managing and protecting personal information,
facilitating swift and appropriate responses. The parent
company and Secom Trust Systems have earned certification
under Japan’s Privacy Mark, which is granted to organizations
that take appropriate measures to protect personal information.
Thorough information security(Year ended March 31, 2022)

Annual e-learning and testing to confirm understanding andadherence (participation: 100% of employees)
Voluntary audits (implementation:
100% of sites)
No leaks of information*Scope of reporting: SECOM CO., LTD.

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Core theme 2

Environmental initiatives:
Creating a foundation for delivering safe and comfortable lifestyles

Prevention of global warming

Setting a medium- to long-term target for achieving carbon neutrality by 2045
In response to the accelerating global move toward
decarbonization, in May 2021 we set new greenhouse gas
emissions reduction targets. These targets have beencertified under the SBTi, which seeks to drive climate actionin the private sector. We have also joined RE100, a global
initiative, with the objective of transitioning fully to electricity
generated using renewable energy for our operations
by 2045.

Long-term targets
Scope 1 and 2:
Reduction of greenhouse gas emissions to zero by 2045
Scope 3:
Reduction of greenhouse gas emissions to zero by 2050
Medium-term targets
Scope 1 and 2:
45% reduction in greenhouse gas emissions from the fiscal year
ended March 31, 2019, by the fiscal year ending March 31, 2031
Scope 3:40% reduction in greenhouse gas emissions from the fiscal year
ended March 31, 2019, by the fiscal year ending March 31, 2031

Core theme 1

Environmental management

Evaluation and management of the progress of environmental conservation initiatives against environmental
key management indicators and response to the recommendations of the TCFD
We have established a common Group environmental
philosophy and basic environmental policy, in line with which
we conduct our operations in a manner that takes
environmental conservation into account. We evaluate andmanage the SECOM Group’s progress in promoting these
initiatives against seven major environmental management
indicators.
Environmental management key performance indicators
1. Greenhouse gas emissions (Scopes 1 and 2)
2. Greenhouse gas emissions across the supply chain(Scope 3)
3. Reduction of greenhouse gas emissions as againstbase year (%)
4. CO2 emissions per unit of production (emissions
intensity)
5. Electricity used and percent accounted for by thatgenerated using renewable energy
6. Consumption of fuel by vehicles and percentage ofvehicles replaced by electric models
7. Resources with market value/recycled resources andindustrial waste
Scope 1: Direct emissions (including those from the combustion ofgasoline by vehicles, use of diesel and use of kerosene)
Scope 2: Indirect emissions (including those from the consumption ofpurchased electric power, cold and hot water, and steam)
Scope 3: Other indirect emissions (those not covered in Scope 1 or 2, fromthe activities of other companies up and down the supply chain

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SECOM REPORT 2022

Response to the recommendations of the TCFD
In July 2019, we declared our support for the TCFD. To
maintain services and systems in our security services andother businesses, we have established a Risk Committee andassess risks from multiple perspectives, including scope of
impact, scale, anticipated monetary cost of damage, urgency,
and frequency of occurrence, based on the results ofCompanywide risk analysis.
We recognize a variety of risks and opportunities related
to climate change. We acknowledge that risks pertaining tofluctuations in the price of fuel consumed by vehicles usedin our security services business and the introduction of acarbon tax, as well as to the impact of climate change on our
nonlife insurance and data center services businesses, will
increase. At the same time, we also understand that shifting
customer needs will yield opportunities to expand demand
for new services. Accordingly, we will promote strategies
that seek to capitalize on opportunities while remaining
mindful of the potential impact of risks on our operations.

Greenhouse Gas Emissions: Actual Results and Medium- to Long-term Targets(t-CO2)200,000

Base year

180,000

188,435

5.9% reduction
184,031

178,668

177,292

160,000
140,000

45% reduction by
the ﬁscal year
ending March 31,
2031

120,000
100,000

103,639

Target for 2045:
080,000

2019

2020

2021

2022

2031

2045

(Actual)(Actual)(Actual)(Actual)(Target)(Target)Note: The market-based method used to calculate emissions.

(Fiscal years ended/ending March 31, except for 2045)

Decarbonization initiatives by At Tokyo
Data center services company At Tokyo promotes a variety of active measures to help address global warming. In
October 2022, the company plans to introduce a green power optional service, which will provide the environmental
value originating from using renewable energy sources to power its data centers to its customers. At Tokyo will continue
to accelerate its efforts to advance decarbonization in the years ahead.

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