SECOM Sustainability
Accounting Standards Board
Disclosure
SECOM SASB Report
For the fiscal year ended March 31, 2020

The information in this report is as of March 31, 2020 or for the fiscal year ended March 31, 2020,
unless otherwise stated.

Table of contents
SASB Index
Report on Accounting Metrics

2
3

Data Security

3

Workforce Diversity & Engagement

7

Professional Integrity

12

SECOM CO., LTD. (“theCompany”) strives to create
services and systems that deliversafety and peace of mind, as wellas make life more comfortable andconvenient, whenever andwherever necessary, for anyone
and everyone. Accordingly, theCompany is pushing forward withefforts to realize its Social System
Industry vision, which describes aframework of distinctive,
integrated services and systems.
In line with fulfilling our
responsibility to society throughour business activities as set forthin the Constitutions of SECOM
Group, we are working towards
solving various social issues andenhancing corporate
sustainability, acknowledging theimportance of sustainability forourselves and for society.
We also strive to disclose
environmental, social andgovernance (ESG) information,and have communicated our
initiatives to stakeholders, mainly
through our Annual Report andon-line Sustainability Report. This
report was compiled inaccordance with the disclosure
standards of the Sustainability
Accounting Standards Board(SASB) with the aim of further
enhancing disclosures.
SECOM will continue to strive toprovide stakeholders with easy-tounderstand information onsustainability going forward.

1

SECOM’s SASB Index
This is a SASB report on SECOM CO., LTD., and the contents do not include information on its
consolidated subsidiaries, unless otherwise stated. SECOM delivers safety and peace of mind
through a variety of services, including on-line commercial and home security systems. SECOM
is aiming to realize its Social System Industry vision together with Group companies thatencompass security services, fire protection services, medical services, insurance services,
geospatial

information

services,business

process

outsourcing

andinformation

andcommunications technology (BPO and ICT) services, and real estate and other services. Itsconsolidated revenue for the fiscal year ended March 31, 2020 reached ¥1.06 trillion.

Professional & Commercial Services Sector Sustainability Indicators
TOPIC

CODE
SV-PS-230a.1

ACCOUNTING METRIC
Description of approach to identifying andaddressing data security risks

Description of policies and practices relating to
SV-PS-230a.2 collection, usage, and retention of customer
information
Data Security

Percentage of gender and racial/ethnic group
SV-PS-330a.1 representation for (1) executive management and(2) all other employees

Page 7

SV-PS-330a.3 Employee engagement as a percentage
Description of approach to ensuring professional
SV-PS-510a.1
integrity
Professional

ACTIVITYMETRIC

Page 4

Page 6

employees

TOPIC

Page 3(1) Number of data breaches, (2) percentage
involving customers' confidential business
SV-PS-230a.3
information or personally identifiable information, (3)number of customers affected

Workforce
Diversity &(1) Voluntary and (2) involuntary turnover rate forEngagement SV-PS-330a.2

Integrity

REFERENCE PAGE

Page 9Page 9Page 12

SV-PS-510a.2

Total amount of monetary losses as a result of legal
proceedings associated with professional integrity

Page 16CODE

ACTIVITY METRIC

DATA(1) Full-time employees:
14,506
Number of employees by: (1) full-time and part-time, (2) Temporary employees:
SV-PS-000.A(2) temporary, and (3) contract
1,390(3) Contract employees:
1,647

SV-PS-000.B Employee hours worked, percentage billable

Employee hours worked:
29,892,709
Percentage billable: N/A*

*Because billing for centralized monitoring services, our principal business, is basedon fixed monthly fees, not hourly fees, “percentage billable” is not applicable.

2

Data Security
SV-PS-230a.1
Description of approach to identifying and addressing data security risks■ Policy and system for promoting information security
With the rapid spread of IT, new value is being created in various fields. Yet at the sametime, information security risks have risen 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 for whatever reason, has the potential not only to seriously hinder our ability
to provide security services, but also to cause various damage or adversely impact thecustomer, and result in the forfeiture of our brand image and reputation for reliability. Together
with compliance, the SECOM Group views information security as a matter of utmost
importance, viewing them as fundamentals of our management. Accordingly, we havecreated and maintain a robust information security system.
The SECOM Group has established the SECOM Group Information Security Basic
Policy based on the confidentiality stipulated in the SECOM Group Code of Employee
Conduct (refer to SV-PS-510a.1), in order to guide our efforts to promote stringent information
security. When we outsource work, we also require subcontractors to adhere to the spirit of
the SECOM Group Information Security Basic Policy, enter into appropriate contracts andprovide guidance and supervision to them.
For the promotion and supervision of information security for the SECOM Group as awhole, we have put an executive officer in charge of information security for SECOM, who is
responsible to the President and Representative Director of SECOM. In addition, executive
officers in charge of each business area have been made responsible for information
security-related matters for their particular business area, as well as for collaborating with theexecutive officer in charge of information security to report on issues and presenting
proposals to the President and Representative Director of SECOM when necessary.

■ Reducing information security risk
We have implemented powerful security measures to reduce risks associated withinformation leaks and cyber attacks. In addition, we have compiled a set of detailed rules that
employees must follow in their daily work, which serve as our information security rules. We
work to ensure that all employees of the SECOM Group comply fully with them, regardlessof employment format. The information security rules include rules governing the use of
personal computers and cellular telephones that must be protected for confidentiality reasons,the storage and carrying of information, as well as steps to be taken when an information
security-related incident arises or a violation of any information security rule is discovered.
3

Information system controls and audits are the responsibility of Secom Trust Systems
Co., Ltd., an information security subsidiary, and are conducted independently, fairly, andthoroughly, in accordance with policies formulated based on SECOM standards and Japan’s
Information Security Management System (ISMS) standards under the guidance of theexecutive director in charge of information security.
We conduct regular assessments of vulnerability to external cyber attack risks.
Furthermore, Secom Trust Systems monitors information systems around the clock to ensure
we are prepared to respond to risks, including those related to large-scale disasters andcyber attacks. We have also enhanced the cyber attack monitoring system with theintroduction of AI. Going forward, we will continue to promote, operate, and manage
information security more strictly.
Secom Trust Systems Co., Ltd. has obtained the following certifications:・ISO/IEC27001
ISMS (information security management system)
Certified on March 20, 2003, registration number [I373]

・JIP-ISMS517-1.0
ISMS (cloud security management system)(Based on ISO/IEC 27017:2015/JIS Q 27017:2016)
Certified on March 7, 2019, registration number [U010]

・ISO9001
QMS (quality management system)
Certified on February 25, 2000, registration number [5084]

・ISO22301
BCMS (business continuity management system)
Certified on January 9, 2015, registration number [B007]

SV-PS-230a.2
Description of policies and practices relating to collection, usage, and retention ofcustomer information
The SECOM Group Code of Employee Conduct (refer to SV-PS-510a.1) states that all
information obtained in the course of business is confidential and must not be leaked, astipulation with which all executives and employees must strictly comply. Furthermore, we
obtain, use, and provide personal information in an appropriate manner, taking into accountthe nature and scale of our business. We do not handle personal information beyond the4scope necessary to achieve the purposes of use, and we take measures to this end.
With respect to the handling of personal information held by SECOM, we comply withlaws and regulations as well as guidelines prescribed by the Japanese government and othernorms relating to the handling of personal information. We have established and comply with
our Privacy Policy, as well as the SECOM Group Information Security Basic Policy andinformation security rules as internal regulations, and are working to protect personal
information. We strive to prevent leakage, loss, and damage of the personal information we
handle, through employee training and efforts to promote awareness as well as by ensuring
stringent management, in addition to taking safety control measures such as implementing
necessary and appropriate security steps. If improvements are required, we promptly makecorrections and take preventive action. For example, all employees are required to participate
in e-learning programs and tests annually to confirm understanding of and adherence tobasic procedures and rules. The internal audit departments conduct periodic inspections of
the handling of personal information, data management, organization and access control ateach site. In addition, we have established a contact point for queries regarding the handlingof 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 been granted certification underJapan’s PrivacyMark by the Japan Information Processing and Development Center(JIPDEC). The PrivacyMark is granted to businesses that handle personal information
appropriately under a personal information protection management system that complies
with JIS Q 15001*. We will strive for continuous improvement going forward.
*JIS Q 15001 refers to the requirements for personal information protection management
systems.

The PrivacyMark certification of SECOM CO., LTD. is as follows:

・JIS Q 15001
PMS (personal information protection management system = PrivacyMark)
Certified on December 20, 2010, registration number [17000663 (05)]
The PrivacyMark certification of Secom Trust Systems Co., Ltd. is as follows:

・JIS Q 15001
PMS (personal information protection management system = PrivacyMark)
Certified on September 20, 2006, registration number [10821728 (07)]5

SV-PS-230a.3(1) Number of data breaches, (2) percentage involving customers’ confidential
business information (CBI) or personally identifiable information (PII), (3) number ofcustomers affected
There were no data breaches at the Company during the fiscal year ended March 31,
2020.

6

Workforce Diversity & Engagement
SV-PS-330a.1
Percentage of gender and racial/ethnic group representation for (1) executive
management and (2) all other employees■ Diversity policies and initiatives
Recognizing the importance of welcoming a broad spectrum of individuals with wideranging ideas, for the creation of new value, we actively promote diversity in our labor force,
including by promoting active participation by female employees, led by the Human Resource
Division under the director in charge of human resources.
[Initiatives up until now]
April 2013:

Announced the Declaration for Women’s Active Participation in the
Workplace to raise awareness among all employees, regardless of gender

June 2013:

Launched the Council on Promoting Women’s Participation in the
Workplace, a dedicated section for considering and promoting systems
and measures necessary for active participation of women

March 2016:

Formulated the Action Plan on Women’s Active Participation with the main
goals of creating positive working environments conducive to active
participation by female employees and increasing the number of female
managers

October 2017: Established the Declaration of Promoting Diversity and Inclusions (seebelow), and assigned diversity and inclusion staff to the Human Resource
Department. Promotes the creation of positive working environments that
respect each and every diverse employee to maximize the capabilities ofall employees regardless of gender, nationality, age, physical ability, sexual
orientation or gender identity.
Declaration of Promoting Diversity and Inclusions
・Guided by a disciplined corporate culture rooted in SECOM’s Philosophy, we respectdifferences and prioritize diversity in our human resources.
・We aim to be an organization in which all employees can work with drive, vitality,
confidence and pride.
・We consistently pursue the creation of innovative value by supporting employee
growth and enhancing synergies among the various strengths of individual employees.
With the aim of actively fostering female leaders, we are a member of the nonprofit
organization Japan Women’s Innovative Network (J-Win). We also dispatch two female
7employees to participate in J-Win programs, which are aimed at cultivating skills and helping
female employees build networks.
Furthermore, we have the following systems for childbirth, childcare and nursing care
to provide support for employees that corresponds with their circumstances.

・ Maternity leave: Available for the six weeks prior to and eight weeks after giving
birth; an additional two weeks is available to employees who wish to start theirmaternity leave earlier
・ Childcare 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 have children
who have not yet entered the second grade of 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 and wish to return
to work full-time after conclusion of nursing care provision

・ SECOM Life Support Program: Allows employees to temporarily 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 forunavoidable reasons such as childbirth, childcare or nursing care to apply to return to
work

Percentage of labor force by gender at the Company as of March 31, 2020 is as follows:

Male

FemaleExecutive management

91.2%

8.8%

Other

76.0%

24.0%

Total

81.5%

18.5%

8

SV-PS-330a.2(1) Voluntary and (2) involuntary turnover rate for employees
The turnover rate for employees at the Company during the fiscal year ended March 31,
2020 is as follows:Year ended March 31, 2020
Voluntary turnover

5.2%

Involuntary turnover

0.0%

Total

5.2%

SV-PS-330a.3
Employee engagement as a percentage■ Employee satisfaction survey
We seek to achieve sustainable growth as a strong, flexible organization that isimpervious to the impact of changes in society and the competitive environment. We are thus
working to create a virtuous circle, recognizing the importance of enabling employees whoshare SECOM’s Philosophy to demonstrate their potential in a high dimension, which helps
improve the services we provide, thereby enhancing customer satisfaction and earning thetrust of society, which in turn increases employees’ job satisfaction.
In order to realize this virtuous circle, the project team for increasing employee
satisfaction, which was launched in 2016, cooperates with other departments to foster avibrant and healthy corporate culture and to improve employee satisfaction through dialogue.
In addition, SECOM has conducted an employee satisfaction survey since 2016. It is ananonymous survey with multiple-choice questions in seven categories. This year, theresponse rate increased compared to that of last year, showing the growing interests of
employees.

Results of employee satisfaction survey (SECOM CO., LTD.)

Employee
response rate

Year ended
March 31, 2017

Year ended
March 31, 2018Year ended
March 31, 2019Year ended
March 31, 2020

81.4%

83.5%

84.2%

85.5%

9

Categories for the employee satisfaction survey
Whether the employee finds his/her work fulfilling
Whether there is any problem which interferes with performing one’s work
Whether the employee is able to work with a positive attitude
Whether the employee receives positive feedback from work partners
Whether there is any problem regarding the amount of work
Whether there is any problem with the salary or welfare benefits at the company
Overall satisfaction■ Dialogue with employees through SECOM Lively Union
Reflecting our fundamental belief that the growth of our employees is inextricably linked
to our prosperity, SECOM Lively Union (the SECOM Employee Union Federation) was
founded in 1964, two years after the founding of the company, by employees seeking toensure sound growth of the SECOM Group. We signed a union membership qualificationagreement with SECOM Lively Union, and became a union shop, meaning that in principle
employees automatically become union members when they are hired. As a consequence,
our union membership rate for eligible employees is 100%, excluding section managers or
higher who are not eligible.
We place a priority on dialogue between labor and management. With the aim ofboosting employee morale, building a vibrant and healthy organizational culture imbued with
the SECOM spirit and maximizing 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 operatingprocedures and ensuring occupational health and safety. SECOM Lively Union also
exchanges views with management through meetings with employees on organizational
culture and the SECOM Employee Central Council.

・ Meetings with employees on organizational culture: This meeting is held every
month in regions throughout Japan. Company executives and directors of the
SECOM Lively Union, who are employee representatives, engage in frank andunrestrained discussion aimed at improving daily work and the workplaceenvironment in each region. This contributes to the creation of a soundorganizational culture.

10・ SECOM Employee Central Council: Council meetings are held every month and arealways attended by the President and Representative Director, executives anddirectors in charge of human resources and operations as well as members of theCentral Council from the SECOM Lively Union. Opinions are exchanged onnationwide issues which cannot be resolved at meetings with employees on
corporate culture held in each region.

11

Professional Integrity
SV-PS-510a.1
Description of approach to ensuring professional integrity■ Basic philosophy on compliance at the SECOM GroupSECOM was established in 1962 as the first security services company in Japan. We
provide security services, the objective of which is to protect the lives and assets of ourcustomers from legal violations or malfeasance by third parties. As such, we recognize that
it is essential that we not only abide by the Constitution of Japan and the letter but also
operate in a manner that complies with the spirit of pertinent laws and regulations.
Because each and every employee who provides security services are in the position ofregulating others, they must also conduct themselves in a disciplined manner as a matter ofcourse, 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.
Therefore, since our establishment, we have viewed compliance as a matter of utmost
importance. Accordingly, our basic policy has always been to promote systematic measures
to ensure unqualified compliance with the letter and spirit of the law.

■ SECOM Group Code of Employee Conduct
The appropriate attitude and behavioral criteria as a SECOM employee, including The
SECOM’s (Ten) Principles and The Constitutions of SECOM’s Business and Operation, were
formulated in accordance with the basic philosophy defined at the time of SECOM’s founding.
The content of the criteria is universal and appropriate for any era from the perspective ofcompliance.
Subsequently, with the expansion of our business and the implementation of new laws,
in the need of clear understanding among all positions and all employees within the Group,
we changed the title of the above in December 2006 to establish the SECOM Group Codeof Employee Conduct. The attitude as SECOM Group employees and ways of thinking withregards to compliance, as the base of our business, are indicated in the SECOM Group Codeof Employee Conduct. It is included in the pocket-sized guide, together with the appropriate
attitude and rules as a SECOM employee.
The SECOM Group Code of Employee Conduct clearly defines specific behavioral
criteria and corporate ethics which must be followed by executives and employees during
relationships with stakeholders such as the community, customers, or suppliers. We havealso defined a code of conduct related to cutting off relationships with anti-social forces,prohibiting corruption and bribery, and complying with related laws. For example, our codeof conduct includes: “employees must not engage in personal transactions or money lending
12with customers or business partners,” “employees must not accept personal gifts from
customers or business partners,” “employees must constantly maintain healthy andtransparent relationships with government agencies or political organizations, and mustnever engage in any behavior which may generate misunderstanding in regards to bribery,”and “employees must maintain moderation and dignity when providing gifts to customers,
and must keep gifts within the appropriate scope to prevent any unnecessary
understandings.”
In the training for all new employees, training on the SECOM Group Code of Employee
Conduct as well as SECOM’s Philosophy is conducted to ensure that each and every
employee has a clear understanding of the code of conduct. Subsequently, a variety of
training programs and internal newsletters, among other means, are used to ensure that
SECOM’s Philosophy and the code of conduct are thoroughly filtered through and rooted.
Specifically, for staff such as emergency response personnel and static guards who take up
the field of security, events such as daily roll calls are used for ethical education. We also
provide guidance to employees so they comply with operational rules at work, and instructmanagers on early detection of signs of inappropriate acts. Whether or not employees
comply with the SECOM Group Code of Employee Conduct and perform their duties
appropriately is included in the criteria for assessments made by superiors every six months.
In order to be promoted to higher positions in the annual qualification examination,
employees are required to pass an examination whose contents include our corporate
philosophy and the rules of the code of conduct. As such, we are making efforts to improve
compliance by promoting strict adherence to the SECOM Group Code of Employee Conduct.
Moreover, we are considering the introduction of new measures that utilize IT devices toconfirm that emergency response personnel conducting internal inspections at on-line
security system subscribers are performing duties appropriately.

■ System for promotion of compliance at the SECOM Group
Our approach to compliance is notable in that it does not involve the establishment of a
dedicated system overseen by a specific department or director, but rather positions eachand every employee on the front line of promoting the SECOM Group Code of Employee
Conduct, including standards governing compliance, and ensuring ethical behavior.
Compliance is the foundation of each employee’s day-to-day work, and all Group
employees perform their work based on the SECOM Group Code of Employee Conduct.
Every organization in the SECOM Group follows the structure in which each responsible
individual ensures the operation and implementation of the Code of Conduct. Managers are
responsible for providing guidance regarding the SECOM Group Code of Employee Conduct
13

and overseeing the actions of employees to ensure compliance. Executive officers are
responsible for providing control for the department they supervise, while the President andRepresentative Director provides control for the company as a whole.
Each executive officer must also have a thorough knowledge of the laws and regulations
pertinent to the department he or she supervises, for which he or she may seek theassistance of the Legal Department and other related departments. When such laws andregulations are revised, executive officers are responsible for determining appropriate
responses, including examining the need to amend the SECOM Group Code of Employee
Conduct and, here again with cooperation of the Legal Department and other related
departments, presenting related proposals to the President and Representative Director.
The duties of the internal audit departments, i.e., the Internal Audit and ComplianceDepartment and the Group Governance Department, include inspecting each group,
department and subsidiary, recommending compliance with the laws and SECOM Group
Code of Employee Conduct to improve morale, and providing guidance on addressing
matters requiring corrective action. The results of inspection are reported to the President
and Representative Director, as well as to relevant executive officers.

■ Whistle-blowing system
The SECOM Group Code of Employee Conduct requires SECOM Group employees inJapan and overseas to report to their superior should they discover that an employee,
executive, or other individual affiliated with a subcontractor is attempting to engage or has
engaged in an action that violates the code. In the event that no corrective measures aretaken after a report has been made, or if circumstances make reporting to a supervisordifficult, employees may report directly to the Internal Audit and Compliance Department via
the Hot Helpline. Executives and employees of subsidiaries may report violations via theGroup Head Office Helpline directly to the Group Governance Department.
Whistle-blower’s names and the content of whistle-blower reports are kept confidential.
As long as a report has been made in good faith, whistle-blowers are protected from any
adverse impacts even if the report is not borne out by the subsequent investigation.
Pertinent executive officers are obliged to swiftly take appropriate corrective measures
to resolve the situation based on the results of the investigation. Whistle-blowers are notified
confidentially of the nature and outcome of investigations without exception.

14

Whistle-blower reports received (Total number of reports to the Hot Helpline and Group Head
Office Helpline)
Year ended
March 31, 2017

Year ended
March 31, 2018Year ended
March 31, 2019Year ended
March 31, 2020

60

60

48

56

Number of reports■ 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 the direction of the
President and Representative Director, and examines important organizational culturerelated issues and determines important official commendations and punishments.
The Organizational Culture Committee also deliberates on matters related to compliancewith and the administration of the SECOM Group Code of Employee Conduct that have beenreported to the President and Representative Director by the Internal Audit and ComplianceDepartment or the executive officer in charge. If necessary, the committee examines
proposals for modifying the system for administering compliance or amending the SECOM
Group Code of Employee Conduct.
All such proposals must be deliberated by the Organizational Culture Committee,
reviewed by the Audit & Supervisory Board members and approved by the Board of Directors.

■ Global compliance training
To ensure our ability to provide globally the same sublime level of service as we do inJapan, it is important for each employee not only to perform business in accordance withmanuals and rules, but also to work based on an understanding of the reasons for such rules.
Accordingly, we have translated SECOM’s Philosophy, which defines employee attitude andbehavioral criteria, and the SECOM Group Code of Employee Conduct, which outlines thebasic concept and specific standards for employee behavior, into multiple different languages
and work to advance awareness 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 and regulations, the prevention ofbribery and internal controls.

15

SV-PS-510a.2
Total amount of monetary losses as a result of legal proceedings associated withprofessional integrity
There were no such monetary losses at the Company during the fiscal year ended March
31, 2020.

16