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

ESG Initiatives

Encouraging awareness of SECOM’s Philosophy andin the form of handbooks and pocket-sized guides, which are

adherence to the SECOM Group Code of Employee Conduct

distributed to employees in Japan and overseas.

are essential to maximizing the trust of stakeholders and ourCode of Employee Conduct are included in our e-learning

SECOM’s Philosophy provides a spiritual anchor for Group

program, which is provided annually, and employees’

employees and the entire SECOM Group. The driving force

compliance status is reflected in their semiannual

behind our growth and evolution, this philosophy emphasizes

performance reviews. An employee who becomes aware of aa refusal to be content with the status quo and a commitment

violation is obliged to submit a report to his or her superior. In

to doing what is appropriate. The first element expresses our

addition, we have established a whistle-blowing system. We

determination to offer innovative services and systems byare currently using IT equipment and taking other steps to

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

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

challenging accepted norms, while the second calls forpromote more strict observance.

Securing and fostering talented
human resources

Focus on securing and fostering talented human resources who havethe ability to adapt to change and create value and who seek tocontribute to society

they are just, fair and beneficial not only to SECOM but also toseeks to ensure that SECOM’s Philosophy fully penetrates

society as a whole. The SECOM Group Code of Employee

every aspect of our operations and to bolster motivation andConduct sets forth ideals for the conduct of employees in bothproductivity Groupwide. Through this initiative, we aim to

Advancing diversity

Assignment of diversity and inclusion staff to the Human Resource
Department to promote the creation of positive work environments inwhich diverse employees can maximize their capabilities

public and private life and specific standards for the day-to-

nurture employees who embody SECOM’s Philosophy to

day performance of duties. We have published SECOM’s

foster a stronger corporate culture, ensure a well-established

Promoting work–life balance

Establishment of programs and promotion of ongoing efforts toenhance work–life balance and increase employee retention

Philosophy and the SECOM Group Code of Employee Conduct

brand and further earn the trust of society.

Dialogue with employees

Employee job satisfaction surveys and the exchange of opinions
between the SECOM Employee Union Federation and executives tofacilitate the creation of employee-friendly workplaces

Securing and fostering talented human resources

Social initiatives
Relevant SDGs

Central themes
Occupational health and safety

Summary
Preparation of manuals that draw on our accumulated know-how andpromotion of training to ensure employee safety and collaboration with
the SECOM Health Insurance Union to manage employee healthOccupational health and safety

judging the legitimacy of our actions by examining whether

Since 2018, we have promoted the Tri-ion initiative, which

Our vibrant, diverse team of employees, who are critical to

Employee performance reviews look to impartiallyour ability to provide services that deliver safety and peace

evaluate employees’ efforts and support self-realization.

of mind, are our greatest asset and another driving force

Evaluations are based on reports prepared by employees

We believe that our ability to provide safety and peace of mind

day-to-day operations across Japan and able to provide

behind our growth and evolution. Accordingly, we strive toassessing their execution of duties, achievements and areas

to our customers depends on first ensuring the health andguidance for the improvements where necessary to enhance

secure and foster talented human resources who have thein need of improvement, and rational assessment categories

vitality of our employees. Accordingly, we promote various

occupational safety. The division has developed procedures

ability to adapt to change and create value and who seek tooptimized for each particular job. We use an open, fair format

initiatives aimed at protecting and enhancing employee healthand equipment designed to prevent accidents and promotes

contribute to society.

whereby review results are disclosed to employees. In

and creating safe, employee-friendly workplaces.

initiatives to improve employee skills, including a program

As a company that extends services across Japan andaddition, we promote self-actualization through systems

The Human Resources Department has established athat seeks to improve driving techniques. Efforts to ensurearound the world, we promote active recruiting efforts. We

designed to assist with career development, including thesystem to comprehensively manage occupational health insafe, employee-friendly workplaces also include the provisionalso work to enhance employee welfare with the goal of

Self-Reporting System and Challenge Support System, whichcollaboration with the Health Promotion Office, which isof extensive training aimed at preventing occupational

improving our ability to retain human resources, and haveencourage employees to declare and assists their efforts tostaffed with occupational health physicians (OHPs), and theaccidents, including that related to the risk of security

established a variety of programs designed to boost

realize their own future goals and aspirations.

SECOM Health Insurance Union. To promote continuous

accidents in various situations.

motivation and productivity, as well as to create employeefriendly workplaces. One such program enables employees toimprovements 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 andParticipants in Training Aimed at Preventing Occupational
Accidents(Number of people)

2,739

2,610
2,348

health, conducting stress checks, arranging meetings withpsychiatrists and specialized counselors, to make certain that

325,000

250,000

1,000

an overseas study program and a subsidy system for(Number of people)
Hours spentin training(left scale)289,364

243,993

15,884

175,000

18,00012,00011,461also launched a variety of specialized training options, including

201,640

Participants(right scale)

6,000

6,190

employees to take correspondence courses. In the area of
training for security guards, we have introduced VR technology,

control structure facilitates the efficient exchange of reports

SECOM REPORT 2021

(Hours)a manner that benefits employees on the front lines. We haveidentified occupational safety risks. Our operational andmanagement, ensuring that the latter is fully apprised ofParticipation in Training Programswith high ethical standards and superior skills. In addition toand job-specific curricula that reinforce practical capabilities in

2,000

To ensure occupational safety, the Operations Divisionand instructions between the front lines and senior

suit career phase or personal preference.

training for all new employees, we have developed department-

employees feel both physically and mentally supported.
verifies day-to-day security operations and works to reducechoose the geographic location to which they are assigned to
We provide extensive training to foster human resources

3,000

prevent risks. We also actively care for employees’ mental

40

Questions on SECOM’s Philosophy and the SECOM Group

corporate value. Handed down since our establishment,0

2019*Scope of reporting: SECOM CO., LTD.

2020

2021
(Years ended March 31)

among others, to improve effectiveness and ensure employees
acquire excellent discernment and know-how.

100,000

0

2019

2020

*Scope of reporting: SECOM CO., LTD.

2021
(Years ended March 31)

SECOM REPORT 2021

41

ESG Initiatives

Advancing Diversity

value, 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 Resource Department. We
currently promote the creation of positive work environmentsthat maximize 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 create positive working environments
for women, including by actively fostering female leaders,
expanding the scope of jobs available to female employees,
taking steps to prevent harassment, and promoting work-lifebalance.
Labor Force by Gender

As of March 31, 2021

Male

FemaleExecutive management

90.3%

9.7%

Other

79.4%

20.6%

Total

82.9%

17.1%

SECOM Life Support Program: Allows employees toexemption (shorter working hours) for nursing care:

temporarily change work style and/or location to which

Full leave or adjusted working hours for up to six months

they are assigned to provide childcare or nursing care or to

Action Plan for Fostering Career Opportunities for
Female Employees(maximum of 186 days) for employees providing nursing

accompany a spouse who has been transferred overseas

care to a family member wishing to return to work full-timeand provides support for long-term career advancement

Period:April 1, 2021–March 31, 2026

after conclusion of nursing care provision

Job Return Program: Enables people who have left

Recognizing the importance of welcoming a broad spectrumof individuals with wide-ranging ideas to the creation of new

Nursing care leave or change in working hours/

employment at SECOM for unavoidable reasons such as

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, 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.

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)

70

200

58.8

60

53.3

53.2

150

100

50

(Number of people)

40

Total
(left scale)

154

138

30

127
22

Male
employees(right scale)

20

9

10

2021

2019

2020

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

50

10

0

40

2019
*Scope of reporting: SECOM CO., LTD.

2020

0

2021
(Years ended March 31)• 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.

Dialogue with employees*Scope of reporting: SECOM CO., LTD.

Promoting work–life balance

was established in 1964, and became a union shop, meaningorganization that is impervious to the impact of socialthat in principle employees automatically become unionchange and the competitive environment. We are thus

members when they are hired. As a consequence, our union

working to create a virtuous circle, recognizing themembership rate for eligible employees is 100%.

We view work–life balance, including sufficient physical andMaternity leave: Available for the six weeks prior to andimportance of enabling employees who share SECOM’s

We place a priority on dialogue between labor andmental rest and a fulfilling private life as essential to theeight weeks after giving birth; an additional two weeks is

Philosophy to demonstrate their full potential, which helps

management. With the aim of boosting employee morale,ability to approach one’s work with energy and focus. In

available to employees who wish to start their maternity

raise the quality of the services and products we provide,building a vibrant and healthy organizational culture andaddition to actively encouraging employees to take annual

leave earlier

thereby enhancing customer satisfaction and earning the

maximizing organizational energy, the management

paid vacation days, we have established vacation and leave

Childcare leave: Can be taken by both female and maletrust of society, which in turn increases employees’ job

representatives, including the President and Representative

systems in line with which we promote ongoing efforts to help

employees up until the day before the child’s third birthday

satisfaction. Since 2016, we have conducted an annual

Director, meet monthly with SECOM Lively Union to exchange

employees achieve a balance between their careers andChange in working hours/exemption (shorter working

anonymous employee job satisfaction survey. In the fiscal

views. Discussions are also held at SECOM Group companies

private lives and enhance employee retention.

hours) for childcare: Available within certain restrictions

year ended March 31, 2021, the response rate for this survey

and branches across Japan to address issues such as

on request to employees who are pregnant or have

was 77.9%.

improving workplace environments and operating procedures

Flex vacation: Enables employees to take 10 consecutive

children who have not yet entered the second grade ofReflecting our fundamental belief that the growth of ourvacation days annually, in theory at any time during the year

elementary school (exceeds legal requirement, which is

employees is inextricably linked to our prosperity, we signed

Union also exchanges views with management throughRefresh vacation: A two-week vacation available tochildren under the age of three)a union membership qualification agreement with SECOM

meetings with employees on organizational culture and theLively Union (the SECOM Employee Union Federation), which

SECOM Employee Central Council.

employees every 10 years

42

We seek to achieve sustainable growth as a strong, flexible

SECOM REPORT 2021

and ensuring occupational health and safety. SECOM Lively

SECOM REPORT 2021

43

ESG Initiatives

Outline of corporate governance system

Governance initiatives
Relevant SDGs

Central themes

Summary
Independent oversight of management and ensure proper businessexecution while working to actively disclose information toshareholders and other stakeholders

Corporate governanceEfforts to improve compliance by promoting strict adherence to the
SECOM Group Code of Employee Conduct

Compliance

Information security/data security

Promotion of information security through establishment of the SECOM
Group Information Security Basic Policy and creating and operating arobust information security system

We are a company with an Audit & Supervisory Board. The

discharge of their duties. We believe that this enables us to

Board of Directors, which includes four outside members,

conduct independent oversight of management and ensure

determines overall management and business execution

appropriate business execution.

policies and supervises the execution of duties by directors.

The Nomination and Compensation Committee has been

Executive officers, led by the President and Representative

established as a discretionary committee of the Board of

Director, are responsible for business execution. Under our

Directors. This committee, which is responsible for presenting

corporate governance system, the Audit & Supervisory Board,candidates for the position of director to the Board of Directors

which includes three outside members, and the Board ofand for ensuring the appropriateness of remuneration for

Directors coordinate with the internal audit departments todirectors, comprises seven directors, four of whom areaudit and supervise directors’ and executive officers’

outside.

Corporate governance organization

Basic philosophy

General Meeting of Shareholders

With the aim of earning the continued support of our customers,

In line with Japan’s Corporate Governance Code and atshareholders, clients, employees, local communities and otherthe direction of top management, outside members of the

stakeholders as a company with value that is worthy of trust,

Board of Directors and Audit & Supervisory Board provide

we strive to maximize corporate and shareholder value overindependent oversight of the management team’s

the medium to long term and recognize the importance ofperformance in a manner that takes into account thefulfilling our responsibilities as a corporate citizen andinterest of stakeholders and ensures the appropriate

achieving sustainable growth and development.

execution of business activities. We also work actively todisclose information to shareholders and other stakeholders
and strengthen our compliance framework.

Establishment ofcorporate governancesystem
Separation of management
and execution
Number of directors designatedin the Articles of Incorporation

2000

2010

Reporting on important matters

Chairman and
Representative Director
Internal audit departments

Legal affairs departments
Coordination

Enhancement of compliance/internal auditing

Executive Officers
Deliberation

Organizational Culture
Committee

Audit by independent
public accountants
Accounting audit

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

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

SECOM REPORT 2021

Office of Audit & Supervisory Board:
Three employees(Operational, accounting andcompliance audits)

2004: Institutes an executive officer system

Up to 2010: 4 From 2011: 5

Number of outside
directors

44

Audit & Supervisory Board(Five members,
three of whom are outside)

2010: Establishes the SECOM Group Management Committee

Number of directors

Remuneration for/appointment of directors

Determination/submission ofdecisions regarding remuneration

Nomination
andCompensation
Committee

Selection/oversight2020

2006: Formulates basic rules of management for SECOM Group companies

Up to 2003: 2 years From 2004: 1 year

Number of outside
auditors

Authorization/consultation
regarding remuneration

1986: Creates SECOM’s Philosophy

Term of service of
directors

Number of auditors

Board of Directors(11 members,
four of whom areoutside directors)

Appointment/dismissal
Proposal of candidates forthe position of director

President andRepresentative Director

Initiatives to strengthen corporate governance1986

Appointment/dismissal

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 11
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 11 members are
responsible for business execution, withthe remaining five members (the founder
and the four 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 31 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.

SECOM REPORT 2021

45

ESG Initiatives

Nomination of candidates for appointment to the Board ofaudits of our overall business activities, as well as those of

the Office of Audit & Supervisory Board Members) thatindependent oversight of management performance in a

Directors and the Audit & Supervisory Board

subsidiaries and affiliates, in accordance with annual audit

operates independent of day-to-day operations and a processmanner that takes into account the interests of stakeholders.

In accordance with the policy for appointment set forth byplans.

(including periodic meetings between the President andWe appoint outside directors and outside Audit &Representative Director, among others, and the Audit &Supervisory Board members on the basis of pertinent

the Board of Directors, candidates for appointment to theBoard of Directors and the Audit & Supervisory Board are

Regular meetings between the President and Representative

Supervisory Board members). This ensures that Audit &requirements set forth in Japan’s Companies Act and thedecided through deliberation by the Board of Directors.

Director and Audit & Supervisory Board members

Supervisory Board members’ objective and neutral opinions

standards concerning independence set forth by financial

Candidates for the Board of Directors are nominated from

Audit & Supervisory Board members hold regular (monthly)

are reflected promptly in operations. As a consequence, we

instruments exchanges.

among candidates determined through discussion by themeetings with the President and Representative Director,

believe that we fulfill our responsibility to conduct

Nomination and Compensation Committee, the majority ofduring which they exchange opinions on important

whom are outside directors. Candidates for the Audit &management-related issues, including the results of audits,

Supervisory Board are nominated with the agreement of theto ensure common understanding.

Outside directors and outside Audit & Supervisory Board members

Audit & Supervisory Board.
Meetings between Audit & Supervisory Board members
Internal audits and cooperation among board members

and accounting auditorsand offices

Audit & Supervisory Board members meet regularly (sixAudits by Audit & Supervisory Board members

times annually) with the accounting auditors, as well as

Audit & Supervisory Board members attend important

additional meetings as necessary, for the purpose of

meetings, including those of the Board of Directors, toexchanging opinions and information. Audit & Supervisoryexchange opinions on overall corporate management, asBoard members receive explanations and exchange opinions

well as to collect reports on the discharge of duties fromregarding annual audit plans and audit results. If necessary,

directors and other pertinent individuals and conduct audits

Audit & Supervisory Board members also act as witnesses

focused on the possible occurrence of violations of laws,

during audits conducted by the accounting auditors at

regulations, the Articles of Incorporation and/or shareholders’remote locations and during audit reviews (16 times in theinterests. The Audit & Supervisory Board also conducts

fiscal year ended March 31, 2021).

Principal Activities of Audit & Supervisory Board members

Collaboration with internal audit and other departmentsin the Fiscal Year Ended March 31, 2021

Audit & Supervisory Board members hold regular (monthly)

Participation in meetings of the Board of Directors

100%

Participation in meetings of the Audit &Supervisory Board

100%

Name

Principal activities

Takaharu
HiroseMr. Hirose offers advice and recommendations at meetings of the Board of
Directors based on experience and insights gained in the foundation andmanagement of multiple enterprises and industry organizations. In addition, heparticipates in deliberations of the Nomination and Compensation Committee as amember thereof. Through these activities, he performs his supervisory function
as an outside director adequately.

Hirobumi
KawanoMr. Kawano offers advice and recommendations at meetings of the Board of
Directors based on experience and insights gained through the holding ofimportant positions in government. In addition, he participates in deliberations of
the Nomination and Compensation Committee as a member thereof. Throughthese activities, he performs his supervisory function as an outside director
adequately.

HajimeWatanabe

Mr. Watanabe offers advice and recommendations at meetings of the Board of
Directors based on experience and insights gained through his many years ofexperience in corporate management. In addition, he participates in deliberationsof the Nomination and Compensation Committee as a member thereof. Throughthese activities, he performs his supervisory function as an outside director
adequately.

Miri
Hara

Ms. Hara offers advice and recommendations at meetings of the Board of
Directors based on experience and insights gained as a corporate officer and a
tax accountant. In addition, she participates in deliberations of the Nomination
and Compensation Committee as a member thereof. Through these activities, she
performs her supervisory function as an outside director adequately.

HidekiKato

Mr. Kato offers advice and recommendations at meetings of the Board of
Directors based on experience gained through the execution of national policies
and insights gained as a result of his accomplishments at a policy think tank. He
also asks questions and states opinions to clarify issues.

MakotoYasudaMr. Yasuda offers advice and recommendations at meetings of the Board of
Directors based on experience and insights gained in the management of a global
enterprise. He also asks questions and states opinions to clarify issues.

SetsuoTanakaMr. Tanaka offers advice and recommendations at meetings of the Board of
Directors based on experience and insights gained through the holding ofimportant positions in government. He also asks questions and states opinions toclarify issues.

Outsidedirectors

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

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

63 timesfrom and exchange opinions and information with the Group
Governance Department. If necessary, to ensure theefficiency of audits, Audit & Supervisory Board members ask

Audits conducted by Audit & Supervisory Board
members at remote locations

55 locations

the internal audit departments to conduct investigations.

Outside directors and outside Audit & Supervisory Board members
We appoint individuals who have extensive knowledge of46

We appoint Audit & Supervisory Board members who

corporate management to serve as outside directors, thereby

have a wealth of knowledge of corporate management, legal,

incorporating a broad range of external perspectives notfinancial and other matters (including three outside members,

constrained by the internal affairs. We thus have a structure

who are essentially independent of the management team).

that ensures the transparency and objectivity of management.

We have also established an auditing organization (including

SECOM REPORT 2021

OutsideAudit &
Supervisory
Board
members

Attendanceat Board of
Directors’
meetings

10
10

10
10

10
10

8
8

Attendanceat Audit &Supervisory
Board meetings

—

—

—

—

10

11

10

11

10

11

10

11

10

11

10

11

Notes: 1. Information on attendance at meetings of the Board of Directors and Audit & Supervisory Board is for the ﬁscal year ended March 31, 2021.
2. Miri Hara was elected and assumed the position of outside director at the ordinary general meeting of shareholders held on July 25, 2020. Accordingly, theﬁgures for her attendance are for meetings of the Board of Directors held on or after that date.

SECOM REPORT 2021

47

ESG Initiatives

Remuneration for directors and Audit & Supervisory Board members

Evaluation of the Board of Directors’ effectivenessRemuneration for directors consists of pecuniary remuneration

well as on job responsibilities and years of service. The

Evaluation process

matters is made to the Board of Directors subsequent to(fixed monthly salary and bonuses) and share-based

relative proportion of fixed monthly salary, bonuses, andThe effectiveness of the Board of Directors is evaluatedresolution. In 2021, both outside directors and outside

remuneration (shares with restrictions on transfer). Outside

shared-based remuneration paid to directors (excluding

annually. In the period under review, a survey was conductedAudit & Supervisory Board members actively madedirectors receive fixed salary only. The fixed monthly salaryoutside directors) is approximately 80:15:5.

in January 2021 and responses were collated by the Board’scomments and expressed the opinion that further

secretariat in early March. Findings were subsequently

improvements in the administration of the Board of Directors

discussed by the Board.

had been seen since the 2020 survey. Various opinions were

portion of pecuniary remuneration paid to directors and theRemuneration for Audit & Supervisory Board members,

share-based remuneration paid to directors (excludingwhich comprises pecuniary remuneration only, is determinedoutside directors) are determined comprehensively inthrough discussion involving Audit & Supervisory Board

consideration of job responsibilities and years of service, as

members in amounts commensurate with job responsibilities.

Summary of findings

created for free debate, thereby invigorating discussion, as

well as the performance of the Company. Bonuses paid to

Remuneration for Audit & Supervisory Board members is set

Composition of the Board of Directors

well as for further communication with outside directors.

directors (excluding outside directors) are determined based

within the maximum limit resolved at the Ordinary General

The opinion was expressed that the diversity of the Board of

on consolidated operating profit, a key management target, asMeeting of Shareholders.

Directors and the balance between execution and oversightOversight function of the Board of Directors

are suitable and that the Board is an appropriate size toMatters handled by the Board of Directors in 2020 wereensure active discussion and swift decision making. While it

selected appropriately, based on the Rules of the Board of

was acknowledged that the appointment of a female director

Directors, and the opinion was expressed that discussions

has improved gender diversity, and that the percentage ofon management policies and corporate philosophy wereoutside directors has increased, constructive views were

rigorous. In addition, constructive views were expressedalso expressed regarding further diversification of theregarding concrete discussions on preparations for a post–

Board’s composition in terms of gender and other

COVID-19 world, as well as the progress of discussions—considerations, including the need to promote female

currently being undertaken from a medium- to long-term

directors from within.

perspective—on changes in the operating environment andalso expressed, including that opportunities should beRemuneration for directors and Audit & Supervisory Board members (Fiscal year ended March 31, 2021)
Breakdown of total remuneration (Millions of yen)
Position

Total
remuneration(Millions of yen)Basicremuneration
Fixed salary

Directors (excluding outside
directors)

366

293

Performance-based
remuneration
Stock options—

Nonpecuniary
remuneration

Bonus
55

Number ofentitled
individuals

Restricted stock
17

7

Audit & Supervisory Board
members (excluding outside
members)

45

45

—

—

—

2

Outside directors

39

39

—

—

—

4

Outside Audit & Supervisory
Board members

25

25

—

—

—

3

Total

476

403

—

55

17

16

related risks arising from technological innovation and a
Administration of Board of Directors’ Meetings

declining labor force.

The Board of Directors meets once monthly in principle toenable swift discussion and resolution of critical matters. To

Future initiatives

ensure that directors and Audit & Supervisory Board

To further enhance corporate value and realize an evenmembers are able to make appropriate decisions, mattersmore effective Board of Directors, we will continue todeemed particularly critical are discussed by the Board ofpromote efforts to improve the Board’s functions based on

Note: The target for consolidated operating proﬁt for the ﬁscal year ended March 31, 2021, was ¥124,000 million, while the actual result was ¥136,925 million.
(Japanese GAAP)

Directors prior to resolution and a progress report on thoseevaluations and opinions expressed.

Philosophy regarding the diversity and size of the Board of Directors

Status of strategic shareholdings

The Board of Directors consists of internal directors, who are

and the number of members is appropriate to facilitate

Policy on shareholdings

Verification of the rationality of shareholdings

familiar with SECOM’s businesses and have diverse

discussions and resolutions of substance. We will continue

The Company may, after comprehensive examination,

The Board of Directors assesses the benefits and risks arisingknowledge, and several outside directors with extensive

working to enhance the effectiveness of the Board ofacquire and/or hold listed shares for the purpose offrom each holding annually. In addition to confirming theinsight in corporate management and other areas. Diversity

Directors by promoting further diversity and ensuring thebusiness participation, collaboration, capital or businessgrowth potential and profitability of each investee company,in terms of gender and international experience is ensured

appropriate size of the Board.

tie-up, business incubation, or the maintenance orgiving consideration to status of transactions, financial

expansion of transactions involving the Company’s services

condition, and operating performance, we comprehensively

and products.

examine the appropriateness of the holding and determine
whether it should be maintained.

48

SECOM REPORT 2021

SECOM REPORT 2021

49

ESG Initiatives

Directors, Audit & Supervisory Board Members and Executive Officers

Compliance(As of July 31, 2021)

Directors

Basic philosophy
We provide security services, the objective of which is to protect

our basic policy has always been to promote systematicthe lives and assets of our customers from legal violations ormeasures to ensure unqualified compliance with the letter

malfeasance by third parties. As such, we recognize that it isand spirit of the law.

essential that we not only abide by the Constitution of Japan but

Makoto Iida

Yasuo Nakayama

Ichiro Ozeki

Founder

Chairman and
Representative Director

President andRepresentative Director

The SECOM Group Code of Employee Conduct prescribes

also operate in a manner that complies with the letter and thespecific standards for employee behavior and ethicalspirit of pertinent laws and regulations.

principles that must be observed by all executives andBecause they are in the position of regulating others,

employees in their relationships with stakeholders, including

employees must also conduct themselves in a disciplined

communities, customers and suppliers. The code, which ismanner, discharging their duties in good faith and inalso published in the form of a pocket-sized guide, thus

compliance with the letter and the spirit of the law, to earn

serves as a universal and timeless template for everyone in

the trust of customers, which is critical to the security

the SECOM family. Standards govern, among others,

services business. Since our establishment, we have viewed

deterring relations with antisocial elements, prohibiting ofcompliance as a matter of utmost importance. Accordingly,

corruption and bribery and complying with related laws.

System for promotion and administration
Yasuyuki Yoshida

Tatsuro Fuse

Tatsuya Izumida

Tatsushi Kurihara

Senior Executive
Director

Executive Director

Director

Director

Our approach to compliance is notable in that it does not

related departments. When such laws and regulations are

involve the establishment of a dedicated system overseen byrevised, executive officers are responsible for determining

a specific department or director, but rather positions eachappropriate responses, including examining the need toand every employee on the front line of promoting the SECOM

amend the SECOM Group Code of Employee Conduct and,Group Code of Employee Conduct, including standards

here again with cooperation of the Legal Department andgoverning compliance, and ensuring ethical behavior.

other related departments, presenting related proposals toCompliance is the foundation of each employee’s day-to-

Audit &
Supervisory
Board
Members

Takaharu Hirose

Hirobumi Kawano

Hajime Watanabe

Miri Hara

Outside Director

Outside Director

Outside Director

Outside Director

Takayuki Ito

Executive TeamThe duties of the internal audit departments, i.e., theregarding the SECOM Group Code of Employee Conduct andInternal Audit and Compliance Department and the Groupoverseeing the actions of employees to ensure compliance.

Governance Department, include inspecting each group,

Executive officers are responsible for providing control for

department and subsidiary, providing guidance on addressing

the department they supervise, while the President andmatters requiring corrective action, and reporting inspection

Representative Director provides control for the company as

results to the President and Representative Director, as wella whole. Each executive officer must also have a thoroughas to relevant executive officers.

Executive Officers

Koji Kato

Yasuo Nakayama

Kenichi Furukawa

Yoichi Sugimoto

Osamu Nagai

Hideki Kato*

Chairman and
Representative Director

Managing Executive
Officer

Executive Officer

Executive Officer

Makoto Yasuda*

Sumiyuki Fukumitsu

Atsushi Komatsu

Ichiro Ozeki

Masahiro Takeda

Executive Officer

Executive Officer

President andRepresentative Director

Managing Executive
Officer

department he or she supervises, for which he or she may

Setsuo Tanaka*

Kensuke Shindo

Kazuhiro Mitomo

Executive Officer

Executive Officer

seek the assistance of the Legal Department and other*Outside

Yasuyuki YoshidaToshiaki Mizuno

Senior Executive
Director

Managing Executive
Officer

Yasufumi Kuwahara

Takehiko Senda

Executive Officer

Executive Officer

Tatsuro Fuse

Shokichi Ishimura

Noriyuki Fukuoka

Takashi Nakada

Executive Director

Managing Executive
Officer

Executive Officer

Executive Officer

Takeshi Akagi

Michiyoshi Morita

Director

Keitaro Arai

Executive Officer

Executive Officer

Tatsushi Kurihara

Managing Executive
Officer

Sadahiro Sato

Makoto Inaba

Executive Officer

Executive Officer

Osamu Ueda

Seiya Nagao

Toshinori Sugimoto

Executive Officer

Executive Officer

Noriyuki Uematsu

Satoshi Araki

Executive Officer

Executive Officer

Director

Managing Executive
Officer

Yoshinori Yamanaka
Managing Executive
Officer

50

day work. Managers are responsible for providing guidanceDirectors

Tatsuya Izumida

SECOM REPORT 2021

the President and Representative Director.

knowledge of the laws and regulations pertinent to the

SECOM REPORT 2021

51

ESG Initiatives

Information and Data Security

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

Policy and system for promoting information security
With the rapid spread of IT, information security risks haveinformation security. When we outsource work, we enter into

employees to report to their superior should they discoverreports are kept confidential. As long as a report has been

Whistle-blower’s names and the content of whistle-blower

risen significantly, as can be seen from the increasing

appropriate contracts and provide guidance and supervisionthat an employee, executive or other individual affiliated withmade in good faith, whistle-blowers are protected from any

sophistication of cyber attacks. Any leaks of personal or

to subcontractors. We have put an executive officer in charge

a subcontractor has engaged in or appears likely to engage inadverse impacts even if the report is not borne out by theconfidential information entrusted to us by a customer hasof information security for the Group as a whole. In addition,an action that violates the code. In the event that no corrective

subsequent investigation. Pertinent executive officers are

the potential to seriously hinder our ability to provide security

executive officers in charge of each business have been mademeasures are taken after a report has been made, or if

obliged to swiftly assess the results of investigations and takeservices, damage or adversely impact the customer, andresponsible for information security–related matters for theircircumstances make reporting to a supervisor difficult,appropriate corrective measures to resolve the situation.

result in the forfeiture of our brand image and reputation forparticular business, as well as for collaborating with theemployees may report directly to the Internal Audit andWhistle-blowers are notified confidentially of the nature andreliability. Accordingly, we have created and maintain a robust

executive officer in charge of information security to report on

Compliance Department via the Hot Helpline. Executives andoutcome of investigations.

information security system.

issues and presenting proposals to the President andemployees of subsidiaries may report violations via the Group
Head Office Helpline directly to the Group Governance

We have also established the SECOM Group Information
Security Basic Policy, to guide our efforts to promote stringent

Whistle-Blower Reports Received

Department.

Representative Director.

Year ended
Year ended
Year ended
March 31, 2019 March 31, 2020 March 31, 2021

Number ofreports

48

56

74

Organizational Culture Committee

Reducing information security risk
We have implemented powerful security measures to reduce

Information system controls and audits are therisks associated with information leaks and cyber attacks. We

responsibility of subsidiary Secom Trust Systems and arealso work to ensure that all employees of the SECOM Group,

conducted in accordance with Japan’s Information Security

The Organizational Culture Committee is a standing

been reported to the President and Representative Director

regardless of employment format, comply fully with ourManagement System (ISMS) standards under the guidance ofcommittee chaired by the President and Representativeby the Internal Audit and Compliance Department or the

information security rules, which include rules governing thethe executive officer in charge of information security. As well

Director that meets periodically or as necessary at theexecutive officer in charge. If necessary, the committee

use of personal computers and cellular telephones that must

as conducting regular assessments of vulnerability todirection of the President and Representative Director, andexamines proposals for modifying the system forbe protected for confidentiality reasons, the storage andexternal cyber attack risks, we monitor information systems

examines important organizational culture-related issues andadministering compliance or amending the SECOM Group

carrying of information, and steps to be taken when an

around the clock to ensure we are prepared to respond to

determines important official commendations andCode of Employee Conduct. All such proposals must be

information security–related incident arises or a violation ofrisks, including those related to large-scale disasters andpunishments.

deliberated by the Organizational Culture Committee,

any other information security rule is discovered.

cyber attacks.

The Organizational Culture Committee also deliberates onmatters related to compliance with and the administration ofreviewed by Audit & Supervisory Board members andapproved by the Board of Directors.

Protecting personal information

the SECOM Group Code of Employee Conduct that have

Global compliance training

The SECOM Group Code of Employee Conduct states that all

information and for complaints and consultations regarding

information obtained in the course of business is confidential

our system for managing and protecting personal information,and must not be leaked, a stipulation with which all executives

facilitating swift and appropriate responses. The parent

We have translated SECOM’s Philosophy and the SECOM

across the global SECOM Group. We also provide training toand employees must strictly comply. We strive to prevent

company and Secom Trust Systems have earned certification

Group Code of Employee Conduct, which outlines the basic

the senior management of overseas Group companies on key

leakage, loss and damage through employee training andunder Japan’s Privacy Mark, which is granted to organizations

concept and specific standards for employee behavior, into

aspects of compliance, including observance of laws andefforts to promote awareness regarding the treatment ofthat take appropriate measures to protect personal information.

multiple different languages and work to advance awarenessregulations, the prevention of bribery and internal controls.

personal information, as well as by ensuring stringent
management.
All employees are required to participate in e-learning

Thorough information security(Year ended March 31, 2021)

Annual e-learning and testing to confirm understanding andprograms and tests annually to confirm understanding of andadherence (participation: 100% of employees)

adherence to basic procedures and rules. The internal audit

Voluntary audits (implementation:

departments conduct periodic inspections of the handling of

100% of sites)

personal information, data management and access control at

No leaks of informationeach SECOM Group site. In addition, we have established a*Scope of reporting: SECOM CO., LTD.

contact point for queries regarding the handling of personal

52

SECOM REPORT 2021

SECOM REPORT 2021

53

ESG Initiatives

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

Base year

180,000

188,324

4.1% reduction
183,920

180,608
45% reduction by
the ﬁscal year
ending March 31,
2031

160,000

Environmental Initiatives

140,000
120,000

Relevant SDGs

Central themes

Prevention of global warming

Summary
Evaluation and management of the progress of environmental
conservation initiatives against environmental key management
indicators

100,000

103,578

80,000

2019

2020

2021

2031

2045

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

Reduction of environmental impact
across the supply chain

Efforts to grasp and reduce greenhouse gas emissions (Scopes 1, 2 and
3) and promote environment-friendly design

Response to the recommendationsof the TCFD

Evaluation of risks and opportunities based on climate change scenario
analysis and promotion of disclosure

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

Reduction of environmental impact across the supply chain
We continue working to reduce greenhouse gases acrossour supply chain.
Efforts to identify and reduce greenhouse gas emission(Scopes 1, 2 and 3)
We request suppliers to calculate and report greenhouse gas
emissions and water usage, among others, for products andservices supplied to the SECOM Group.

Prevention of global warming
We have established an environmental philosophy and basic
environmental policy, in line with which we incorporate
initiatives aimed at resolving environmental issues with theaim of achieving sustainable development. We evaluate andmanage the SECOM Group’s progress in promoting these

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

Efforts to promote environment-friendly design

Example of a System with a Reduced
Environmental Impact
HANKS IIIs Security System for Financial Institutions
Consumption ofelectric power: –57%
Volume:

–55%

Mass:

–66%

We have distributed green engineering guidelines to suppliers
and work to eliminate harmful chemical substances, reduce
consumption of electric power, conserve resources, extend theuseful life of products and promote recycling.

initiatives over the long term against seven major
environmental management indicators.

Environmental management key performanceindicators
1. Greenhouse gas emissions (Scopes 1 and 2)
2. Greenhouse gas emissions across the supply chain(Scope 3)
3. Reduction of greenhouse gas emissions asagainst base 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
7. Industrial waste and resources with market value
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 consumptionof purchased electric power, cold and hot water, andsteam)
Scope 3: Other indirect emissions (those not covered in Scope 1 or
2, from the activities of other companies up and down the
supply chain

54

SECOM REPORT 2021

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

Response to the recommendations of the TCFD
In July 2019, we declared our support for the Task Force on

We recognize that the price of fuel consumed by vehicles

Climate-related Financial Disclosures (TCFD), pledging toused in our security services business and climate change–

Scope 3:40% reduction in greenhouse gas emissions from the fiscal year
ended March 31, 2019, by the fiscal year ending March 31, 2031

proactively disclose information on the financial impacts ofrelated risks affecting our nonlife insurance and data center

risks and opportunities associated with climate change onservices businesses will increase, but we also understandour future business activities in line with TCFD recommendations.

that shifting customer needs will yield opportunities to

In businesses such as security services, data center

expand demand for new services. Accordingly, we will

The above emissions reduction targets, formulated in May

services and medical services, the ability to provide stablepromote strategies that seek to capitalize on opportunities

2021, have been certified under the Science Based Targets

and uninterrupted services is critical. To maintain services

while remaining mindful of the potential impact of risks on

initiative (SBTi), which seeks to drive climate action in theand systems at an acceptable level, we have established aour operations.

private sector. We have also joined the RE100 (forRisk Committee and assess risks from multiple“Renewable Electricity 100%”), a global initiative, with theperspectives, including scope of impact, scale, anticipatedobjective of transitioning fully to electricity generated using

monetary cost of damage, urgency and frequency of

renewable energy by 2045.

occurrence, based on the results of Companywide risk
analysis. For example, we are using a scenario that assumes
we suffer damage due to a natural disaster to explore
measures to minimize destruction and have created a

Note: The TCFD was established in 2015 under the auspices of the Financial
Stability Board (FSB) with the goal of developing basic disclosure
recommendations to provide information on the potential impact ofclimate change on their proﬁtability and cash ﬂows.

management system whereby a report is made to the Boardof Directors if the seriousness of damage warrants it.

SECOM REPORT 2021

55