Sustainability

Basic philosophy
Since our establishment, we have pursued a basic policy ofstriving to contribute to society through our businessactivities, acknowledging the importance of achieving
sustainability both for ourselves and for society.
We continue to promote a variety of initiatives aimed atrealizing sustainability guided by the SECOM Group Basic
Sustainability Policy, which was formulated following
deliberations by the Board of Directors. In October 2022, weformulated the SECOM Group Human Rights Policy tounderpin our efforts to address human rights issues, aThe SECOM Group Basic Sustainability Policy
SECOM’s Philosophy emphasizes contributing to society through ourbusiness activities. By providing services that help ensure people’ssafety and peace of mind, we continue working to address global social
imperatives and grow together with society.
1. Provide enduring peace of mind now and in the future
We continue to provide innovative services and systems that address
potential risks, thereby ensuring seamless, enduring peace of mind now
and in the future.
2. Together with business partners
We promote environmental conservation initiatives across the entire
supply chain with the aim of helping realize decarbonization and arecycling-oriented society. We also respect human rights, recognizing theinherent dignity of all people.
3. Earn the trust of society
We strive to ensure legal compliance and manage our operations in linewith a stringent code of conduct, and to maintain sound relationships withall stakeholders by conducting our business activities in a manner that istransparent, just, and fair.
4. Our key players are our employees
Responsibility for sustainability lies with each individual SECOM Group
employee. In addition to recognizing the importance of job satisfaction
and pride in one’s work, we continue to provide training and encourageawareness to ensure the achievement of our goals.
December 1, 2021
Ichiro Ozeki
President and Representative Director,
SECOM CO., LTD.

global-scale challenge, and revised the SECOM Group
Environmental Policy.

Framework for promotion
We have established the Sustainability Promotion Office,under the jurisdiction of the executive officer in charge ofsustainability, with the objective of integrating sustainability
initiatives into business strategies. The Sustainability
Promotion Office is charged with formulating sustainability
policies, disseminating information across the SECOM Group,
devising medium-to long-term greenhouse gas reduction
targets, addressing the recommendations of the Task Forceon Climate-related Financial Disclosures (TCFD) andproviding information to stakeholders. The status ofsustainability initiatives is reported to the President andRepresentative Director and to the Board of Directors asappropriate.
The Sustainability Promotion Office also stages theSECOM Group Sustainability Meeting, which is attended byrepresentatives of key Group companies. Participants
exchange information and hold discussions to advanceinitiatives related to domestic and global social imperatives,
the SDGs, and our response to TCFD recommendations.

Material Sustainability Issues

Process for Identifying Material Sustainability
Issues and Formulating KGIs and KPIs

MissionHelp realize a society free from concerns

Extract issues
Led by the Sustainability Promotion Office, weestablished a working group and extracted material
sustainability issues, that is, issues with the potential toaffect our ability to grow sustainably with society.

Customer-orientedservices

In May 2018, we became a signatory
to the United Nations Global Compact(UNGC) and pledged our support for
the Ten Principles of the UNGC, which
are classified into four categories:“Human rights,” “Labour,”“Environment” and “Anti-corruption.”

Leveraging
advanced
technologies andpartnerships

Coexistencewith local
communities
Creating
services neededby society

Enhancing ourability to adapt
to change andcreate value

Assess the materiality of extracted issues
We plot issues on a materiality matrix, grouping plottedissues to assess the materiality thereof based on trends
in social imperatives, among others.

Identify material sustainability issues

Our efforts to address ESG-related issues and disclose related information continue to earn high marks from third-party
assessment organizations around the world. Of note, we have been selected as a constituent of a number of key global ESG
investment indices. These include all six indices for Japanese equities used by Japan’s Government Pension Investment
Fund (GPIF).**The six indexes used by the GPIF are the FTSE Blossom Japan Index, the FTSE Blossom Japan Sector Relative Index, the MSCI Japan ESG Select Leaders Index,the MSCI Japan Empowering Women Index (WIN), the S&P/JPX Carbon Efficient Index and the Morningstar Japan ex-REIT Gender Diversity Tilt Index (GenDi J).
THE INCLUSION OF SECOM CO., LTD., IN
ANY MSCI INDEX, AND THE USE OF MSCILOGOS, TRADEMARKS, SERVICE MARKS ORINDEX NAMES HEREIN, DO NOT CONSTITUTEA SPONSORSHIP, ENDORSEMENT ORPROMOTION OF SECOM CO., LTD., BY MSCI OR
ANY OF ITS AFFILIATES. THE MSCI INDEXESARE THE EXCLUSIVE PROPERTY OF MSCI.
MSCI AND THE MSCI INDEX NAMES AND
LOGOS ARE TRADEMARKS OR SERVICE MARKSOF MSCI OR ITS AFFILIATES.

SECOM REPORT 2023

SECOM’s Philosophy calls for offering services that are
beneficial for society as a whole. “The Constitutions of theSECOM Group in Business and Management” sets forth ourcommitment to provide services and systems that deliverpeace of mind and contribute to the betterment of society.
In keeping with this fundamental commitment, we continue
striving to offer forward-looking services that anticipate
what is needed to ensure sustainable growth for society andtirelessly pursuing service innovation.
With the aim of ensuring we remain an organization thatis useful and indispensable to society, we have identified

six material sustainability issues, that is, issues of primary
importance to sustainable growth, based on a selfassessment conducted in accordance with ISO 26000, theInternational Organization for Standardization’s benchmark
for social responsibility, and the Global Reporting Initiative(GRI)’s GRI Standards (global standards for sustainabilityreporting), and with consideration given to feedback fromstakeholders. We have formulated KGIs and KPIs for each ofthese material issues to encourage deeper understanding
and promote their incorporation into individual businessstrategies Groupwide.

Support for the UNGC

Earning selection for inclusion in ESG investment indices28

Material sustainability issues and KPIs

Decarbonization
and a recyclingbased society

Solidifying
our operating
foundation ofsociety’s trust
Fair corporate
activities and respectfor human rights

Employee selfrealization anddiversity

On the basis of deliberations conducted by the working
group, material sustainability issues are identified. These
are reported to the Board of Directors by the director incharge to be approved.

Formulate KGIs and KPIs for each issue
The working group sets KGIs. KPIs designed to ensure
achievement thereof are considered by pertinent
departments and final proposals for KGIs and KPIs aredeveloped. These are reported to the Board of Directors
by the director in charge for discussion.

SECOM REPORT 2023

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