C o n t e n t sContents....................................................................................................2
Editorial Policy..........................................................................................3
Corporate Overview.................................................................................5
Message from the President....................................................................6
Feature Story - "Class on Life" Designed to Empower Children to
Change the World.....................................................................................8
Feature Story - Casio’s Commitment to Human Rights......................12
Casio's Corporate Creed and Approach to CSR.................................14
Casio's CSR Management.....................................................................19
CSR Implementation System...............................................................20
Corporate Governance.........................................................................22
Compliance and Risk Management.....................................................25
Social Initiatives: Action Plans and Performance.................................31
Responsibilities to Stakeholders..........................................................36
Responsibilities to Customers..............................................................36
Responsibilities to Suppliers................................................................57
Responsibilities to Shareholders and Investors...................................61
Responsibilities to Employees.............................................................63
Responsibilities to Society...................................................................83
Environmental Initiatives.......................................................................92
Environmental Vision...........................................................................92
Casio Green Star Plan.........................................................................97
Climate Change Action.......................................................................101
Biodiversity.........................................................................................104
Green Star Products..........................................................................107
Environmental Action Plan (Targets and Performance)..................... 110
Fiscal 2013 Casio Environmental Action Plan Performance.............. 113
Material Balance................................................................................ 114
Environmental Performance............................................................... 115
Environmental Accounting..................................................................125
Printer Initiatives.................................................................................128
Packaging..........................................................................................130
Logistics.............................................................................................133
Design and Procurement...................................................................136
Green purchasing...............................................................................138
Production..........................................................................................139
Offices................................................................................................140
Environmental Management..............................................................143
Environmental Compliance................................................................145
External Evaluation............................................................................148
Environmental Communication..........................................................149
Independent Verification Report.........................................................153
Independent Opinion on the Sustainability Report 2013..................154
G3.1 GRI Content Index.......................................................................156

CASIO SUSTAINABILITY REPORT 20132

Casio discloses information to stakeholders about its corporate social responsibility (CSR) initiatives aimed atbuilding a more sustainable world. By constantly improving communication with stakeholders, Casio expects tofurther improve its CSR performance.
Casio provides three channels of CSR reporting to meet the needs of different readers: the Sustainability website, the Sustainability
Report, and the CSR Communication Book.
[Sustainability Website]
An easily searchable site that offers comprehensive information on Casio’s CSR initiatives.
[Sustainability Report 2013]
A report containing information from the Sustainability website that can be downloaded in PDF format. It may be printed in part or in its
entirety, for your convenience.
Click here to download the report[CSR Communication Book 2013: “Welcoming Challenge of Helping to Build a More Sustainable Global Society”]
Highlights of Casio's CSR initiatives are presented based on the Charter of Creativity for Casio. The content is presented in a way thatis easy to understand.
CSR Communication Book 2013: “Welcoming Challenge of Helping to Build a More Sustainable Global
Society”
Click here to download the report.

An independent opinion from an outside expert has been obtained and included as an objective assessment of the report overall.
Third-party verification of environmental performance data has also been obtained to ensure reliability.
This report provides the information that Casio believes stakeholders most want to know, as well as information that Casio especiallywants to convey. It focuses on content with a high level of importance to both society and Casio, and gives details on those initiatives.
[Importance for society]●Third party opinions concerning the 2012 report●Reader opinions and requests concerning the 2012 report●Items from questionnaires such as socially responsible investment (SRI) surveys●Items listed in the guidelines below[Importance for Casio]
Matters Casio regards as important based on its corporate creed, the Charter of Creativity for Casio, the Casio Common Commitment,
and the Casio Group Code of Conduct
Casio has created downloadable PDF files containing information from its Sustainability site. You can print the whole thing or just the partyou need.

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CASIO SUSTAINABILITY REPORT 2013

Scope of the report
PeriodThis report covers fiscal 2013 (April 1, 2012 to March 31, 2013),and also includes some information pertaining to years before and after
fiscal 2013.
IssuedDecember 2013 (Previous publication: December 2012, next publication planned: November 2014)
Boundary
Some information in this report applies only to the parent company, Casio Computer Co., Ltd., while other material refers to the entire
Casio Group. Further clarifi cation is provided in each case, as needed. The name “Casio” in this report indicates the Casio Group, while“Casio Computer Co., Ltd.,” refers specifically to the parent company.
The scope of the environmental accounting and impact data in this report includes 10 sites of Casio Computer,Co., Ltd., in Japan, 10group companies in Japan,and 22 group companies outside Japan.
Guidelines used as a reference● GRI (Global Reporting Initiative) Sustainability Reporting Guidelines Ver3.1 of the Global Reporting Initiative (GRI)● Environmental Reporting Guidelines (2007 Edition) issued by Japan’s Ministry of the Environment● Environmental Accounting Guidelines 2005 issued by Japan’s Ministry of the Environment● ISO 26000 Guidance on Social Responsibility(GRI Guidelines and ISO 26000 content indices are posted on the website.)
Inquiries
Casio Computer Co., Ltd.http://world.casio.com/
For inquiries on CSR in general: CSR Promotion Office
Address: 1-6-2 Honmachi, Shibuya-ku, Tokyo 151-8543
Tel.: +81-3-5334-4901 Fax: +81-3-5334-4547
csr-report@casio.co.jp
E-mailFor inquiries on environmental issues: Environment Center
Address: 3-2-1 Sakae-cho, Hamura-shi, Tokyo 205-8555
Tel.: +81-42-579-7256 Fax: +81-42-579-7718
E-maileco-report@casio.co.jp
Forecasts and forward-looking statements
The future forecasts and forward-looking statements published in this report for Casio Computer Co., Ltd.,and the Casio Group arebased on information available at the time of publication. These forecasts and statements include potential risk and uncertainty, and thereader should be aware that the actual results of business activities may diff er from these predictions.

CASIO SUSTAINABILITY REPORT 2013

4

Company data (as of March 31, 2013)
Name

Casio Computer Co., Ltd.

Headquarters

1-6-2, Hon-machi, Shibuya-ku, Tokyo, Japan, 151-8543

Established

June 1, 1957

President and CEO

Kazuo Kashio

Employees

2,676 (consolidated: 11,276)

Paid-in capital¥48,592 million

Net Sales¥297,763 million (consolidated)

Operating income¥20,053 million (consolidated)

Ordinary income¥19,702 million (consolidated)

Net income¥11,876 million (consolidated)

Major Products

Digital Cameras, Timepieces, Electronic Dictionaries, Electronic Musical Instruments,
Calculators, Label Printers, Cellular Phones*, Cash Registers, Projectors, Handheld Terminals,
Page Printers, Office Computers, Molds* Cellular phone business has been transferred to NEC CASIO Mobile Communications, Ltd.
since June 1, 2010.

Sales and operating income by reportable segment/ Sales by region

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CASIO SUSTAINABILITY REPORT 2013

The core of Casio’s CSR is ensuring that all of our employees embrace our founding spirit and work every day
to build a more sustainable global society.
Committed to Building a Sustainable Global Society
Casio Computer Co., Ltd., was founded in 1957 by my two older brothers, Tadao andToshio, me, and my younger brother, Yukio.
Tadao, the eldest, passed away in 1993, followed by Toshio in May 2012.
Toshio, one of the all-time great inventors, laid the foundation for our corporate creed of“Creativity and Contribution” with his various breakthrough inventions.
With Toshio in charge of development and me handling sales, we sometimes clashed atmeetings, but I always had a strong bond with this dependable brother of mine.
Although half of the original four Kashio brothers are now gone, our founding spirit
remains the unwavering force behind Casio.
This spirit is all about identifying unmet universal needs and developing entirely new
products by going from “0” to “1” to contribute to society.
In recent years, sustainability has become a global issue.
To name just a few challenges, we face the destruction of nature and serious water andfood shortages caused by extremely rapid population growth.
Economic activities that enrich people’s lives have also created huge distortions in the
global environment and our societies.
These include the depletion of natural resources, global warming, loss of biodiversity, and extreme disparity between rich and poor.
If we continue our economic activities in pursuit of only the benefit at hand, we could end up depriving succeeding generations of asustainable future. We must squarely face this critical situation and fulfill our responsibilities by taking the necessary steps to endow
upcoming generations with a sustainable global society.
Building on our heritage of going from “0” to “1,” Casio will continue to fulfill this mission.

CSR Issues for Casio
As a global enterprise whose products are sold in over 140 countries, the Casio group heeds common global principles. We declared our
support for the UN Global Compact, and our CSR management is based on it. Using the ISO 26000 international CSR guidelines issued in
November 2010, we have taken an inventory of the CSR issues facing all our group companies in and outside Japan. Based on this, weselected “respect for human rights” as our priority theme for fiscal 2014, and all Casio group companies are working to increase employee
sensitivity to this issue. In order to promote diversity and encourage the hiring and promotion of women, seniors, persons with disabilities,
and non-Japanese, we are moving forward with human resource system reform and other initiatives.
I am confident that this will invigorate Casio and drive further growth by fostering personal growth and success for individual employees.
As a good corporate citizen, Casio believes it is vital that our business activities themselves help to solve social issues, and we are striving
to provide support in unique ways that only Casio can. With products useful in the classroom, such as calculators, electronic dictionaries,
electronic musical instruments, and digital cameras, our social contribution priority is in the field of education.
In Japan, Casio continues to support education for orphans and other children affected by the Great East Japan Earthquake. We also givetalks at schools under our unique “Class on Life” initiative.
Outside Japan, Casio is contributing to the quality of education by helping to solve classroom issues through the provision of products that

CASIO SUSTAINABILITY REPORT 20136

meet the educational needs of each country.
We are also about to launch initiatives to support emerging-market countries faced with the challenge of providing universal primaryeducation.
Casio will continue to support education for the next generation as a central theme of its social contribution activities.
Based on the Casio Environmental Vision 2050, a long-term environmental policy to be achieved by that year, and the Casio Environmental
Declaration 2020, a medium-term action guideline, Casio will further strengthen its environmental management, aiming to become anenvironmentally advanced company.
This report presents the major CSR initiatives of the Casio group in fiscal 2013. We will continue to work hard to fulfill our social
responsibilities while staying in dialogue with all types of stakeholders. I look forward to hearing your frank opinions of our efforts.

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CASIO SUSTAINABILITY REPORT 2013

Casio’s unique “Class on Life” initiative started with the aspiration to eliminate bullying and suicide fromchildren’s world.
A cumulative total of over 15,000 children and their parents have already attended these classes, at over 200
schools.
Class on Life

The Power of Children Can Change the World of Adults“I wanted to help end the vicious cycle. Some 28,000 people kill themselves in Japaneach year, and approximately 580 of them are youth under 20. Children learn byobserving adults. In order to break this terrible cycle, I thought it was important to startby addressing our children’s world.” This is how Hisashi Wakao of the CSR Promotion
Office, Secretarial and External Affairs Department, explained the “Class on Life”
initiative.
The Class on Life was started by Casio Computer Co., Ltd., as a social contribution
activity in June 2007 to help build a more sustainable society. So far the classes havereached over 15,000 children and their parents, providing them with an opportunity toquestion the purpose and consider the value of life. Wakao is passionate about theclass: “After thoroughly pondering what I wanted to convey to children, the answer I
arrived at was 'life.' I certainly didn't want it to be a superficial effort, so I knew I had tobe really sincere with the kids. That's when I decided to teach them about the value oflife.”

Hisashi Wakao, CSR Promotion Office,Secretarial and External Affairs Department

The Key is Talking with Sincerity
At first, the topic was considered to be too serious for elementary and junior high school
students. When he first started visiting schools to give the class, teachers often cautioned himthat the students might not understand and said they would not like to give a class on this topic.
Wakao recalls, “In my class, I convey the value of life and its purpose. The message is thesame even when I teach a kindergarten class. At one elementary school, I gave the class tofirst-grade students. After the lesson, one little boy came up to me and announced that he now
understood the meaning of life. To my surprise, he said that the real purpose of life is to live life
earnestly. Actually, this topic is not something children don’t understand; they understand it
instinctively. As a result of our self-centered perspective, we adults tend to underestimate
children and limit their horizons. If you talk to children sincerely, they will definitely understandAt a session in the Class on Lifethe message.”
Sincerity is a word that Wakao uses often. “That is why there is no manual for my class. I make a point of trying to convey my own
humanity in the lesson. Each class is different, and the lesson evolves each time I deliver it. I learn something from the kids, and thenbuild on it for the next class. If I didn’t approach it this way, I wouldn’t be able to convey the message sincerely to the children.”

CASIO SUSTAINABILITY REPORT 20138

Empowering Children
The positive reaction to the Class on Life has grown so much that it has virtually become asocial phenomenon. As a result of the initiative, Nagatadai Elementary School in Yokohama
became the only elementary school to exhibit at Eco-Products, Japan's largest environmental
trade show. At the event, students from first to sixth grades eagerly presented their ideas toadults walking by. Wakao explains, “The learning does not finish at the end of the class. The
children that attend the class must go on to take action.”
The influence on the children does not end here. Many of the kids that learn about the value oflife in this class are changed dramatically. In fact, in letters that Wakao receives from students
after the class, there are often comments such as “I stopped having suicidal thoughts,” “I havelooked the other way when someone is bullied so far, but now I want to be brave and try to stop

Student booth at Eco-Products

it,” and “I'll stop bullying others.” Wakao says, “There are many children who tell me personal stories that they could not share with
their teachers. Nothing could be more rewarding for me than discouraging suicide and seeing these kids return to their energetic
selves.”Movement spreading throughout JapanThe actions of these children are having a ripple effect across Japan, mobilizing adults as well.
News of the class has gone viral, and requests for the class have been received from schools
all across Japan. Many adults, including educators, parents, and local residents, have also been
impressed by the actions of the children that attended the class. Wakao says, “It has also
increased opportunities for me to give presentations to adults. When I talk about the significanceof this class, and what I want to achieve through it, many people respond by saying that adults
need to change, too.”Collaboration with teachers is also evolving. Wakao often gives presentations about his class to
Presentation to educators
educators from around the world, as a model example of education for sustainable development(ESD), recommended by Japan's Ministry of Education, Culture, Sports, Science andTechnology. In his presentation, he talks about how children grow and change after attending the class. Many international
participants have responded to his presentation with comments such as, “This kind of serious ESD activity is new to me,” “I was very
impressed and want to introduce it in my country,” and “I was very moved by the student's message thanking her parents for giving
birth to her.”Continuing with the class, as a broader Casio initiative
What does the company think about Wakao's initiative? Noriaki Kimura, Manager of the CSR Promotion Office, said, “I think he has
had such amazing results because his words come straight from his heart to the children’s hearts; he doesn’t just talk in a formalmanner. The issue we now face is replicating what he has done, so that the Class on Life can grow further and the entire company
can get behind it. I would like him to train new instructors to do what he does, so we can develop it into a more structured activity thatshows what Casio stands for.”Wakao says he is very grateful the company understands his initiative and has supported it. “Through this initiative I hope to show a
lot of people that Casio does have such passionate people.” Using the Class on Life, Wakao wants to help ensure that as many
children as possible develop healthy minds and kind hearts. This is just one example of Casio's classroom initiatives, and it is sure tokeep growing in the future.

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CASIO SUSTAINABILITY REPORT 2013

Feedback on the Class on Life

About the Class on Life
The Class on Life conducted at our school is “life education” based on diverse knowledge and multiple perspectives, going beyond
the usual pre-packaged classroom experience and lesson. I feel that it is a revolutionary class from many different angles, teaching
students how to approach life, learn, and live. Mr. Wakao kindly incorporates the wishes of the teachers, and the thoughts of thechildren, into the content he conveys, making his classes always fresh and new. His efforts do not end when the class is over, as hecontinually shares ideas with us that we can implement. With his involvement throughout the year, I feel the class has become acompany-school partnership like no other. At our school, we have included the Class on Life in the curriculum for all grades, and wecarry out educational activities based on it throughout the year.
This class has steadily generated positive change in the children. The children and teachers are more aware than ever. Being
cognizant of the connections of life helps with awareness of interconnectedness when confronting today's increasingly complicatedissues. It also motivates people to solve problems.
In order to reduce our reliance on Mr. Wakao, we intend to create a school program that is able to take on the challenge of education
for sustainable development, centered on each teacher's own “Class on Life.”

Masaharu Sumita, Principal, Nagatadai Elementary School, Yokohama

Messages to the Class on Life
Teacher
The Class on Life has taught our students about connections between rice fields, the environment and Japanese tradition. Since Mr.
Wakao's class is based on his own personal experience, he is able to maintain the children's interest while increasing their
enthusiasm for Integrated Studies.
TeacherThis class allows the connections of life to be instilled in the children's hearts. It has made them aware of many things, and we areable to maintain their awareness of the importance of life throughout the year.
Teacher
The Class on Life is always a turning point for my students. It is an opportunity for them to start learning, it motivates them when theylose confidence in their learning abilities, and it helps them discover new perspectives. By listening to Mr. Wakao, someone who is nottheir usual teacher, and receiving his support, the children become more motivated to learn, which improves their confidence.
Junior High School Student
After the Class on Life, I became really aware of how valuable life is. Thinking of all the people who have lost their lives, I want to live
each day to the fullest. Now I am thankful I am able to live this way, and I want to live my life with no regrets. No matter how sad or
painful my life may become, I will always be grateful to be alive. Thank you so much for making me aware of this truth. I am reallygrateful.
Junior High School Student
We all have a precious life, and we are connected with bonds. The class made me realize that everyone has their own purpose in life.
Now I will confidently walk my own path, and live my life.
Junior High School Student
The Class on Life made me think about the importance of life, something that I don't normally do. Now I want to live my life moresincerely. Life is very important because you only get one. In order to help reduce the number of people that take their lives, I will try
to actively stop any bullying or discrimination I see. Next time, if I can, I would like to learn more about the value of life. I also want totell various other people about what I have learned.
Junior High School Student
In the Class of Life, we heard about a 13 year-old girl who battled with cancer. She tried to live her life positively and with courage,
even while fighting the disease. This gave hope to herself and the people around her. I'm short-tempered and sometimes get irritatedeasily. After learning about that girl, I want to try and improve myself. I found out that there are many people in the world with physicaldisabilities. In my case however, I can run, eat, talk, and feel things. When I think about people with disabilities, it feels strange to be
irritated with my own life. It is very unfortunate that the girl died, but I pray she will find eternal peace in heaven.

CASIO SUSTAINABILITY REPORT 201310

Elementary School Student
I think it is a miracle I am alive. The class made me realize no matter how insignificant my life may seem, I should value it since it is
the one and only life I have. I want to try my best not to forget this, and be someone who is caring and looks out for others. I willappreciate each day of my life, and not forget what I have learned.
Elementary School Student
The Class of Life made me realize the importance of life, the importance of connections, and the value of having friends. I intend toremember what I have learned in the Class on Life for my whole life—even when I'm a grandfather. I will try to remain thankful just forhaving family and friends.
Elementary School Student
After the Class on Life, I felt like changing the world. Whether people are important or unimportant, messy or neat, I want them to seethat everyone’s life is valuable. Mr. Wakao taught us something that will remain in my heart. I am thankful to have learned somethingthat will be a huge support to me throughout my life. I will live my life step by step, holding tight to this knowledge.
Elementary School Student
The Class on Life made me realize something about war. War originates in the minds of people. Therefore, it is important to have apeaceful mind, to accept others and get along with them. Since people can't change their minds so easily, I think that is why war
continues. So everyone should try to maintain peaceful minds and spread this way of thinking to others. We need to build a “fortress”
in our hearts. I intend to take this seriously and put it into action.
Elementary School Student
I learned a lot of important things in the two years since Mr. Wako first came to my class. At first, I couldn't understand everything, but
gradually I became interested in what he taught us: the value of life, the kindness of people, the greatest of nature, and the fun of
speaking sincerely. Now I think these are all very important. I find it really exciting to find the little moments of happiness all around
me. I hope that more and more people can discover these small joys.
ParentAfter attending a presentation about the Class on Life, I once again felt the desire to convey the value of and gratitude for life to myfamily and many other people. I'm so glad that I attended the presentation today. I hope I can become someone that gives support toothers.
ParentBy attending the Class on Life presentation, I was able to reflect again on the importance of life. It made me realize how importantseemingly ordinary things are in our daily lives. I am grateful for this experience, and I hope to live my life while appreciating how
important it is. Despite all the issues going on in the world, I would like to discover what I can do, and notice the things that make me
feel alive.

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CASIO SUSTAINABILITY REPORT 2013

As management globalizes, respect for human rights has become a vital issue for companies. Casio isdeveloping a unique approach to the issue and working proactively to create mechanisms to address it. This
Feature highlights the advice of Makoto Teranaka of Tokyo Keizai University, and outlines the steps Casio istaking.
Addressing Human Rights Issues the Right Way

Getting the Proper Perspective on Human Rights
Everyone probably has a different idea of what specifically should be done to ensure respect for human rights. Human rights concerns
arise in a wide range of contexts, including conflict and child labor, as well as discrimination in workplaces based on nationality, placeof birth, religion, gender, sexual orientation and so forth. Many of you may think these issues are far removed from your own
company. Nevertheless, every company invariably has some kind of human rights problem that must be addressed. There are many
more examples than the ones I just mentioned, and human rights awareness takes many forms, depending on the laws and culture ofeach country, as well as the differing views of individuals. In other words, it is very appropriate to say that human rights issues exist in
every organization.
Addressing human rights issues does not mean actually reducing them to zero. The important thing is to try and see things from theperspective of those victims whose human rights are abused. By considering why the people concerned are dissatisfied and what
methods should be used to address the issue, you will be able to see problems that you had not recognized before. Then, you willrealize that you can find more human rights issues that need to be addressed. Therefore, it is important for companies to try to identify
and address as many potential human rights issues as possible. When addressing human right issues, the process of uncovering theissues is the most challenging and important.

How Should Casio Address Human Rights?
Through my participation in Casio events such as the stakeholder dialogue, the Human
Rights Roundtable and a meeting of CSR Committee held in 2012, I have been able to hear
frank views from many Casio employees working on the frontlines. The results of thequestionnaire survey show that Casio sites around the world are responding decisively
based on their respective laws and cultures. However, employees still seem to have a veryvague overall notion of why Casio is addressing respect for human rights, including a vague
understanding of human rights itself.
I think that Casio employees are implementing “obligatory” initiatives including complianceefforts, with a very high level of awareness. However, if they try to tackle human right issues
in the same manner, they may get stuck on trying to reduce human rights issues to zero, as
I mentioned earlier. The important thing is to consider specific ways to incorporate respectfor human rights into management, based on an awareness of the importance of actually
protecting human rights. In other words, you must create strong Casio policies on humanrights, and implement them. It is now clear to me that Casio has more than enough ability topromote CSR initiatives from a management perspective. I hope you will continue toadvance your CSR efforts even further.

CASIO SUSTAINABILITY REPORT 2013

12

Makoto Teranaka, Visiting Professor,
Tokyo Keizai University

Process for Casio’s Human Rights Initiatives

Stakeholder Dialogue (June 22, 2012)
Makoto Teranaka gave a talk on corporate activities and human rights. He was then joinedby Kaori Kuroda, and they responded to questions and comments from the audience. The
dialogue event covered the following three themes: (1) how to address human rights issues;(2) criteria for determining such issues; and (3) human rights problems of employees
including hiring of foreign workers.
＊See here for more datails on the stakeholder dialogue.

Human Rights Questionnaire (February and March 2013)
A questionnaire on human rights and business practices was sent to 34 Casio group companies in and outside Japan. It contained 15
questions on human rights awareness, labor management, compliance, religious considerations, and employee hotlines. The
compiled survey results were shared with all the group companies.

Human Rights Roundtable (May 14, 2013)
Using the survey results, Teranaka spoke with employees that deal particularly directly withhuman right issues in their jobs (i.e., those in recruitment, labor relations, sales, supply
chain relations, and those working at Casio sites outside Japan). After sharing how humanrights are viewed at the main sites of the Casio group, and what efforts are being carriedout, Teranaka provided them with advice on future initiatives. In the second half of theroundtable, the participants also discussed the need for a shared human rights policy, andthe importance of having clear policies for the entire Casio group.

CSR Committee Meeting (May 28, 2013)
The results of the Human Rights Survey and Roundtable were reported to the CSR
Committee, and Teranaka was invited to attend. He reported on specific comments made in
the Roundtable, and offered his opinion on how Casio should approach human rights issues
in the future.

Next Steps
Based on the analysis results and content of the discussions, Casio recognizes it is important to globally improve governance structures forprotecting human rights. Accordingly, a Casio Human Rights Policy will be established in fiscal 2014. The group also aims to establish a
Casio Human Rights Investigation Tool, in order to clarify human rights infringement and the scope of responsibility.

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CASIO SUSTAINABILITY REPORT 2013

Making life richer and more convenient by creating innovative products—this was the aspiration of Casio’s
founders, and it is summed up in the corporate creed, “Creativity and Contribution.” Casio believes that part ofits social responsibility is to pass down this corporate creed to all of its employees without fail. Casio is
determined to ensure that its businesses, which make something from nothing, or go from “0” to “1,” continue
to make a consistent contribution to a more sustainable global society.
Welcoming the challenge of helping to build a more sustainable global society
In recent years, there has been widespread concern over the sustainability of human civilization in its current form. While economic activity
has enriched the lives of many people, it has also put great strain on the global environment and social systems. Cooperation is needed toovercome this global crisis and leave a sustainable global society to future generations. In order to achieve this, proactive initiatives need tobe taken by individuals, companies, governments, and international organizations. A company has a much larger impact on society than an
individual, and corporate activities are responsible for some of the current impact on the planet. This is why society now has much greater
expectations for companies to actively implement their own initiatives to help resolve sustainability issues, or in other words, to fulfill theircorporate social responsibility (CSR). Today, a company’s performance on social responsibility impacts its corporate value. Firms that fail tofulfill their corporate social responsibilities are no longer valued or allowed to survive by society.
Casio’s corporate creed of “Creativity and Contribution” contains the company’s founding idea of social contribution through the provision of
innovative products that have never existed before. Everyone working at Casio fully appreciates this corporate creed, and the company isalways striving to help build a more sustainable global society by pursuing business activities designed to make something from nothing, orgo from “0” to “1.” This is Casio’s CSR approach.
To ensure that it continues to deliver on the commitments of its corporate creed, Casio has established three key documents. The Charterof Creativity for Casio outlines the basic principles behind the mindset and conduct expected from everyone at Casio, while the Casio
Common Commitment provides specific conduct guidelines for implementing the Charter. The Casio Group Code of Conduct
establishes norms for ethical conduct and requires all Casio group executives and employees to comply with relevant laws and internal
rules. With recent changes in the external environment, in June 2013 Casio revised the Code of Conduct to reflect the higher expectationsof the international community with a focus on the areas of human rights, supply chain management, and anti-corruption measures.
Casio has established four specific keywords, shown below, to guide its efforts to address social and environmental issues that relate
directly and indirectly to its business operations. By addressing these issues the company aims to help build a more sustainable global
society.
The world today is faced with many complex economic, environmental and social problems of a very serious nature. Humanity as a wholeneeds to consider its own best future, and then find ways to move in that direction. If economic activities are to be maintained on this planetwith limited resources, every member of society must try to help achieve sustainability.
Casio is determined to do its part to find solutions for social and environmental issues while continuing to provide new value to society,based on its corporate creed of “Creativity and Contribution.” Casio will steadily pursue specific initiatives while always seeking to conceiveof ideal solutions for each issue.

CASIO SUSTAINABILITY REPORT 201314

Keywords for a sustainable world and Casio’s main initiatives■ Resource recyclability (social and economic activities on a planet with limited resources)
Reducing daytime power consumption through the use of geothermal electricity and the installation of power storage equipment,etc.
■ Biodiversity (respecting the uniqueness of all living organisms and recognizing their interdependence)
Establishing an Environmental Action Plan, and evaluating the entire impact of the business, etc.
■ Fairness across generations (the current generation properly appreciating the legacy of previous generations and passing
it on to future generations)
Setting medium and long-term CO2 reduction targets, and promoting next-generation development and education, etc.
■ Fairness across regions (fairly distributing wealth and assets across regions)Being a member of the UN Global Compact, and conducting CSR activities globally, etc.
Casio’s CSR Platform

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CASIO SUSTAINABILITY REPORT 2013

Charter of Creativity for Casio and Casio Common Commitment
In 2003, Casio adopted the Charter of Creativity for Casio and Casio Common Commitment, a promise from everyone working at Casio.
They are designed to ensure that Casio employees will be aware of the corporate creed at all times, and act upon it. These promises cover
the three key aspects of CSR—economy, environment, and society—as well as the company’s approach to compliance.

Charter of Creativity for Casio
First Chapter
We will value creativity, and ensure that our products meet universal needs*.
Second Chapter
We will strive to be of service to society, providing customers with delight, happiness, and pleasure.
Third Chapter
We will back up our words and actions with trustworthiness and integrity, and work as professionals.
* To create innovative products that everyone needs but no other company has ever produced. At Casio, this is the mission not only of productdevelopment, but of every other part of the business.

Charter of Creativity for Casio and Casio Common Commitment

Engaging employees in Casio’s unique CSR approach
To ensure thorough application of these principles, the directors and department heads sign the Charter of Creativity for Casio and Casio
Common Commitment every year, and together recite a pledge to abide by the Charter and Commitment and familiarize their subordinateswith it. All employees also sign a card printed with these promises, to carry with them at all times.
There is also a site on the company intranet entitled CASIO STYLE which includes messages about the corporate creed and the Charterand Commitment from the four brothers who founded the company, along with other simple, compelling stories presented once a month.
This helps all group employees to better understand and identify with Casio’s essential character.
> Every other year, Casio conducts a comprehensive questionnaire survey to learn what group employees in Japan think about the Charterof Creativity for Casio and Casio Common Commitment, the Casio Group Code of Conduct, and the Whistleblower Hotline. The results areanalyzed to determine how thoroughly employees have embraced the company’s approach to CSR. The next questionnaire will be
conducted in fiscal 2013.

CSR Implementation Framework
Casio joined the UN Global Compact in 2010. The company upholds the ten principles of the Global Compact, which concern human rights,
labour, the environment and anti-corruption, and it has also fully adopted the corporate commitments.
Casio has been working to enhance its CSR programs to meet the requirements of the international community. The company draws on the
ISO 26000 guidance standard on social responsibility in implementing CSR, and uses Global Reporting Initiative (GRI) Guidelines to selectsubjects for disclosure.

CASIO SUSTAINABILITY REPORT 201316

United Nations Global Compact
Casio products are made through cooperation not just within the Casio Group, but with many other parts andconsignment manufacturers. Through global distribution, over 100 million Casio products are sold each year in 140
countries around the word.
In order for consumers worldwide to purchase Casio products with confidence, the company believes that it must
support and adhere to common global principles for sustainable growth for the international community, beginningwith Casio’s global supply chain.
This is why, in December 2010, Casio joined the United Nations Global Compact, and made Casio Group employees thoroughly aware ofthis. While pursuing specific initiatives for the realization of the Global Compact principles, Casio is also appropriately disclosing progress.
Casio is also active at the local network level of the UN Global Compact, serving as a member of the Japanese Global Compact Local
Network (GC-JN).

10 Principles of the UN Global Compact
Human Rights
1.Businesses should support and respect the protection of internationally proclaimed human rights; and2.make sure that they are not complicit in human rights abuses.
Labor Standards
3.Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
4.the elimination of all forms of forced and compulsory labor;
5.the effective abolition of child labor; and6.the elimination of discrimination in respect of employment and occupation.
Environment
7.Businesses should support a precautionary approach to environmental challenges;
8.undertake initiatives to promote greater environmental responsibility; and9.encourage the development and diffusion of environmentally friendly technologies.
Anti-Corruption
10.Businesses should work against all forms of corruption, including extortion and bribery.

United Nations Global Compact

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CASIO SUSTAINABILITY REPORT 2013

Main stakeholders of the Casio GroupThrough ongoing dialogue with various stakeholder groups, Casio is helping to resolve social issues in various fields relating to its businessactivities.
Main Stakeholder
Group

Main Casio Group Responsibilities

Main Dialogue Opportunities / Information Disclosure

Customers

Providing appealing, safe, and reliable products
Ensuring stable product supply
Providing the proper information regarding products
Improving customer satisfaction
Providing fast and accurate support to customers
Properly managing customer information

Daily sales activities
Customer Support Center
Customer satisfaction surveys
Casio’s official website

Suppliers

Fair and equitable transactions
Requesting CSR implementation and providing
supportDaily procurement activities
Holding vendor conferences
CSR questionnaires

Shareholders andinvestors

Timely and appropriate information disclosure
Appropriate profit returns

General Meeting of Shareholders
Briefings for investors
Investor Relations website
Issuing financial reports (shareholder newsletter)
Responding to CSR questionnaires from socially
responsible investors

Employees

Respecting human rights
Promoting diversity and inclusion
Promoting balance of work and family life
Human resource recruitment and utilization
Fair evaluation and treatment
Industrial health and safety and employee healthpromotion

Casio intranet
Group Workers’ Labor-Management Conference
Occupational Safety and Health Committees
Career challenge system
Internal newsletter

Local communities

Respecting and preserving regional cultures
Activities that contribute to local communities
Preventing accidents and disasters at sites
Providing support to disaster-stricken regions wheresites are locatedFactory and workplace tours
School visit program
Internships
Employee participation in local community events

Global environment

Environmental consideration in product development
Environmentally responsible production activities
Complying with environmental laws
Protecting biodiversity

NPO/NGO

Protecting the environment, human rights, andbiodiversity
Support for local communities and cultural activities

CASIO SUSTAINABILITY REPORT 201318

Responding to questionnaires
Holding dialogues
Implementing social contribution programs together with
NGOs and NPOs

Casio is committed to earning the confidence of all of its stakeholders, including the broader society. In orderto further enhance the effectiveness of its CSR activities, the company is engaged in various initiatives suchas the improvement of corporate governance.

CSR Implementation System

Corporate GovernanceCasio communicates with stakeholders todetermine the issues that it should address

Through various initiatives, Casio is working
to strengthen the soundness andto meet the expectations of society.

transparency of its management.

Compliance and Risk Management

Social Initiatives: Action Plans and Performance

Casio is pursuing total compliance throughintegrated management of three foundationsof employee conduct: the Casio Group Codeof Conduct, risk management, and theWhistleblower Hotline.

Each fiscal year issues are identified, andpromotion plans are drafted andimplemented to ensure that CSR activities
are steadily carried out.

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CASIO SUSTAINABILITY REPORT 2013

Guided by the ISO 26000 international guidance standard on social responsibility, Casio determines the issues it
must address to meet social expectations by engaging in close communication with stakeholders and is
implementing management cycles designed to address these issues.
Steps in CSR Implementation
Since the establishment of its CSR Promotion Office in 2004, Casio has been implementing CSR activities while expanding the themes tobe undertaken and the scope of their impact. In the initial stage, there was an emphasis on protecting corporate value through complianceand risk management (preventative CSR). Starting in fiscal 2011, Casio began focusing on using CSR to improve corporate value(proactive CSR).
In fiscal 2012, Casio appointed managers and team leaders who have responsibility for implementing CSR in order to advance CSR
globally at group companies around the world. At the same time, Casio evaluated and analyzed the status of initiatives at each company
based on the core subjects under ISO 26000.
In fiscal 2013, Casio once again surveyed its group companies concerning CSR activities with a focus on respect for human rights, among
the priority issues identified in the previous year. Based on an evaluation and analysis of the survey results, the entire Casio group will
pursue improvement of sensitivity to human rights issues as a priority issue in fiscal 2014.
Implementing CSR initiatives

CSR Committee
A CSR Committee headed by the director responsible for CSR has been established under the board of directors. The committee is thecentral body for implementation of CSR.
The CSR Committee is composed of a Secretariat that administers the committee, as well as representatives of the CSR-related(administrative) departments of Casio Computer Co., Ltd., and all Casio group companies worldwide. The CSR-related departments andthe group companies appoint their own CSR chiefs and managers.
The committee meets once every six months, but its activities are carried out based on fiscal-year management cycles. At the start of the
fiscal year, the Secretariat checks progress made on various themes in the previous year. It then determines the most important CSR
themes for the current year, and draws up its action plan for the year. According to this action plan, ongoing themes are continued and newthemes are introduced.
Next, a stakeholder dialogue is held to ascertain the current situation and challenges, and new themes are established by a working group.
The CSR-related departments implement programs based on the established goals for the themes they are responsible for and the annual
plans to achieve the goals. At the end of the fiscal year, progress made on the themes is evaluated. Based on the results, issues are
identified, and then used to improve the plan for the next year.

CASIO SUSTAINABILITY REPORT 201320

CSR Committee System

Based on the results of the CSR survey at the end of the fiscal 2012, respect for human rights, a core objective of ISO 26000, wasestablished as the key policy initiative for fiscal 2013. In this year, a total of nine themes, including themes continued from the previous
year, were selected and promoted: one compliance-related theme and eight themes focusing on CSR issues. The following outlines the
progress made on these themes, along with the fiscal 2014 plan.
<Individual themes for fiscal 2013 and implementation status>
No.

Theme

Fiscal 2013 performance

StatusFiscal 2014 plan1

Implement CSR activities
across Casio group companies

Set themes by identifying
CSR issues

Completed―2

Improve environmental
performance

Surveyed industry trends

Ongoingtheme

Determine
categories formeasurement

3

Promote CSR procurementin supply chain

Implemented site inspections
at suppliers outside Japan

Ongoing
theme(Continue as part ofregular operations)

4

Advance promotion andactivity of female employees

Held discussion meetings
on work-life balance

Ongoing
theme(Integrate into No. 8)5Understand importance ofhuman rights

Revised the Casio Group Codeof Conduct

Ongoingtheme

Raise awareness of
the Code6

Create mechanisms toprotect human rights

Conducted a human rights
questionnaire

Ongoing
theme

Implement measures toaddress human rights
issues7

Increase employment of
person with disabilities

Surveyed status of system tokeep and follow-up on these
employees

Ongoing
theme(Integrate into No. 8)

8Increase and utilize
employee diversity

Established an overall theme
plan

Ongoingtheme

Promote diversity

9

Address compliance risk
measuresEstablished rules

Completed―

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CASIO SUSTAINABILITY REPORT 2013

To increase corporate value, Casio always strives to improve management integrity and transparency. True tothis commitment, Casio works to ensure that management decision-making is quick and that all operations are
executed properly and efficiently.
Corporate governance framework
Casio has implemented a broad range of initiatives to strengthen its corporate governance.
The board of directors is composed of thirteen directors, two of whom is an external director. The term of office for directors is one year soas to clearly delineate the responsibility that the board of directors has for management and to facilitate a quick response to changes in thebusiness environment (as of June 30, 2013)
The board of directors is tasked with making prompt, reasonable management decisions. Board meetings are attended by directors andcorporate auditors, who discuss and make decisions on important business issues.
Based on Japan’s Companies Act, Casio has also appointed three auditors (two of the three members are external auditors) andestablished a board of corporate auditors composed of these auditors. In accordance with audit policies set out by the board of corporate
auditors, the corporate auditors attend board of directors’ meetings, meetings of the corporate officers, and other important meetings andcommittees. In addition, they perform strict audits by interviewing and receiving reports from directors and others, and by reviewing
resolution documents relating to important decisions.
The external director and external auditors are independent officers registered with the Tokyo Stock Exchange in compliance withregulations. In addition, Casio has full-time staff that provide support for corporate auditors.
Accounting auditors perform external audits according to generally accepted Japanese auditing standards, and they also provide
recommendations for operational improvement.
The Internal Audit Department carries out audits to ensure that all Casio Group operations are being carried out in conformity with laws andregulations as well as internal standards.
An internal control reporting system has been required by Japan’s Financial Instruments and Exchange Act since April 2008. Accordingly,
Casio has established basic policies to ensure the accuracy and reliability of its financial reporting. It has also set up an Internal Control
Committee composed of members of the Accounting Department, Information System Department, CSR Promotion Office, and Internal
Audit Department to implement these policies.

CASIO SUSTAINABILITY REPORT 201322

Corporate Governance Framework

System of internal controls
The following explains the basic approach of Casio Computer Co., Ltd. to its internal control system, andprogress made on implementation.

Internal control system basic approach and implementation level
The Charter of Creativity for Casio, Casio Common Commitment and Casio Code of Conduct have been established based on
the corporate creed of “Creativity and Contribution.” The following systems have been implemented to ensure the proper
operation of the company.
1. System to ensure the actions of directors and employees comply with the articles of incorporation and relevantlaws and regulationsa) In order to comply with relevant laws and regulations regarding the performance of duties, specific documents such aspolicies and rules are prepared. After deliberation and consideration by various committees, such as the CSR Committee,
awareness of the rules is promoted throughout the company and each group company.
b) The validity and operational adequacy of the above-mentioned rules are improved through internal audits and continual
review, in order to prevent any misconduct.
2. System for saving and managing information relating to performance of duties by directors and employees
Based on the internal rules, each department saves and manages information relating to the performance of duties by the
directors and employees concerned.

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CASIO SUSTAINABILITY REPORT 2013

3. Risk management rules and other systemsa) The company has a system to manage risks that can have a significant impact on management. The system is promoted
in a unified way by the relevant departments and the Secretariat under the CSR Committee, based on the Risk Management
Rules. Fundamental Policies on Product Safety have been established with an understanding that maintaining customer
confidence in product safety is an important management issue.
b) A Whistleblower Hotline has been set up in addition to the regular reporting channels, to prevent the spread of risk.
4. System to ensure the efficient execution of duties by directors and employeesa) Attended by the directors and corporate auditors, meetings of the board of directors are held to discuss and decide
important management issues, at least once a month in principle, and perform prompt and reasonable decision making.
b) The corporate officers, directors, and corporate auditors attend meetings of the corporate officers to discuss and decide
important matters of business execution. They ensure company-wide coordination and smooth implementation of measures.
c) Detailed execution procedures are outlined in the Executive Decision Making Authority Rules.
5. System to ensure appropriate operations at the company and group companiesa) To ensure appropriate operations, the group companies have various rules based on the Charter of Creativity for Casio,
Casio Common Commitment, and Casio Code of Conduct.
b) Councils have been established based on a system whereby certain corporate officers are responsible for specific groupcompanies. The corporate officers and the relevant departments perform group company management through a systemthat requires reporting to and approval by the company, in accordance with the Group Company Decision Making Authority
Rules. They also perform monitoring as necessary.
c) Whenever a group company determines that a management action or guidance from the company may be in violation of
the law, or there is a compliance issue, the group company reports it to director or relevant department concerned.
d) The company and the group companies have built a system to ensure the adequacy and reliability of financial reporting.
After inspection of internal controls related to business flow and financial reporting, documentation, evaluation, andimprovement is carried out.
e) The company and group companies have absolutely no contact with organized criminal elements, which pose a threat tosocial order and public safety, and the entire organization is resolved to refuse any improper demands.
6. System for employees that assist corporate auditors in the execution of their duties, and the independence of
those employees from the directorsa) Employees are appointed to assist the corporate auditors in their duties.
b) Matters concerning the appointment, transfer, evaluation or discipline of employees that assist the corporate auditors
require the prior consent of the board of corporate auditors.
7. System for directors and employees to report to the corporate auditors, other systems for reporting to thecorporate auditors, and systems to ensure that audits by the corporate auditors are performed effectivelya) Whenever something is discovered that is likely to cause significant damage to the company, the directors must
immediately report it to the corporate auditors.
b) Whenever there is a violation of the law or the articles of incorporation, or whenever an illegal business operation is
performed, the director or the organizational head responsible must be immediately report it to the corporate auditors.
c) The corporate auditors can attend any important internal meeting.
d) Important approval documents are circulated to the corporate auditors after approval.

For more details on corporate governance, visit the following site. Corporate Governance Reports

Corporate Governance Reports(Tokyo Stock Exchange: Search for Corporate Governance Information)

CASIO SUSTAINABILITY REPORT 201324

Casio’s effort to achieve total compliance management is based on the Casio Group Code of Conduct, a risk
management system and whistleblower hotlines.
Casio Group Code of Conduct
The international ISO 26000 guidance standard on corporate social responsibility was issued in November 2010, and Casio joined the UN
Global Compact the following month. Given recent environmental changes and new international standards such as these, the global Casio
group is faced with growing expectations from the international community. Consequently, the Casio Group Code of Conduct was revisedfor the first time in five years. The code serves as compliance rules for everyone at Casio, and sets norms for executives and employees tofollow. Here are the main revisions to the Code of Conduct.
1) Points concerning issues of high concern to the international community such as human rights, supply chain management, andanti-corruption were revised2) The respective roles of executives and employees were clearly stipulated3) Content was improved to indicate common policies that apply to the worldwide group
The revised Code of Conduct was prepared in Japanese, English, and Chinese, and is translated into other employee languages asnecessary. Education on the new code will be carried out across the entire group, with the aim of further deepening understanding of its
content. Along with this education, a compliance questionnaire will be conducted once every two years. The results and identified issues
will then be shared group-wide to promote continued improvement.

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CASIO SUSTAINABILITY REPORT 2013

Provisions of the Casio Group Code of Conduct
Ι. General Provisions
1.Purpose
2.Scope3.ComplianceΙΙ. Code of Conduct
1.Enabling Value Creation
1-1. Provision of Products and Services Beneficial to Society
2.Fulfilling Our Corporate Social Responsibilities
2-1. Respect for Human Rights
2-2. Environmental Conservation
2-3. Sound Initiatives across the Entire Supply Chain
2-4. Harmony with Society
3.Building Customer Trust
3-1. Provision of Safety and Peace of Mind to Customers
4.Establishing Sound Workplaces4-1. Establishment of Employee-friendly Workplace Environments
5.Ensuring Correct Actions
5-1. Compliance with Laws
5-2. Prohibition of Bribery and Restrictions on Business Entertainment and Gift-giving
5-3. Fair Competition and Transactions
5-4. Prohibition of Insider Trading
5-5. Thorough Security Trade Control
5-6. Prohibition of Involvement with Anti-social Forces
5-7. Separation of Personal Affairs from Business
5-8. Information Protection
5-9. Protection and Utilization of Intellectual Properties
6.Building a Relationship of Trust with Society
6-1. Promotion of Communication with SocietyΙΙΙ. Maintenance
1. Establishment, Revision and Abolishment of this Code of Conduct
2. Reporting of Violations
3. Handling Violations

Casio Group Code of Conduct

CASIO SUSTAINABILITY REPORT 201326

Education and Awareness Raising
Casio conducts e-learning on corporate social responsibility (CSR) once a year at group sites worldwide. The e-learning program in fiscal
2013 provided training for better understanding these areas: the corporate creed “Creativity and Contribution,” the Charter of Creativity for
Casio, which is the action value criteria for implementing the creed, and the Casio Code of Conduct. In particular, the training covered theimportance and background of CSR, while seeking to foster better understanding of the UN Global Compact, as well as the international
ISO 26000 guidance standard on CSR. The e-learning also emphasized the topics of human rights and fair operating practices, including
compliance with anti-corruption and anti-monopoly laws. These areas are very important to both society and the Casio group. Casio willcontinue to improve the CSR literacy of employees while promoting the corporate creed, through group-wide education and awarenessraising activities.

Risk management
Based on its Basic Risk Management Policies, Casio has built a system to manage risks efficiently. The company established the Risk
Management Committee as the steering body to implement management programs with an emphasis on compliance risk.
In the committee’s first year, fiscal 2008, it identified 70 laws relating to Casio’s businesses, and listed measures being taken to comply witheach law. Regarding laws where Casio had deficiencies relating to management cycle operation and manual preparation, the committee
analyzed the importance of each risk based on the occurrence possibility and its impact on company management. Measures were thenprepared to deal first with the risks of higher importance.
Casio transferred the risk management function from the Risk Management Committee to the CSR Committee in fiscal 2011.
Under Casio’s risk management, departments with roles most closely associated with certain risks establish the necessary mechanisms toensure compliance and risk management. The Internal Audit Department then confirms these mechanisms through internal audits.
Accordingly, as of the end of fiscal 2011, the relevant departments have the necessary measures in place for management of all risks. Now,
however, Casio has changed its risk management implementation method. It is transitioning to a system whereby the Secretariat regularly
monitors the risks identified so far, and confirms whether there are any deficiencies in management cycle processes.
Risk management system

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CASIO SUSTAINABILITY REPORT 2013

Business Continuity Plan (BCP) initiatives
In order to respond to emergencies with the resources of the company organization, Casio has created a Crisis Management Manual for
securing the safety of all employees, executives, and their families, preserving corporate assets. Sequential updates of the manual keep
pace with changes in the business environment, and the company is taking practical initiatives at the same time. Specifically, the following
measures have already been undertaken:
Implementation of regular evacuation drills and general lifesaving classes for employees
Distribution of emergency assistance kits to employees and additional disaster stockpiling
Disaster prevention drill with the local community and provision of an open area for a temporary evacuation site
However, with the Great East Japan Earthquake, which struck in March 2011, circumstances were encountered that far exceeded previous
expectations. Casio was able to identify various points for improvement. These points were reflected in a revised Crisis Management
Manual based on the premise of responding to a major earthquake with Tokyo at its epicenter. Casio also produced the Disaster Handbook
for the families of its employees to deepen understanding of disaster countermeasures in the home and promote disaster readiness.
Together with the initiatives above, Casio is working to enhance its business continuity plan (BCP). In the event of an emergency thatinterrupts business operations, such as a major earthquake with an epicenter in the Tokyo area, the plan outlines measures for the rapid
confirmation of executive and employee whereabouts and well-being, as well as damage conditions, and the quick recovery andmaintenance of operations. This mechanism is focused on Casio’s global supply chain. For example, if the headquarters suffers a disaster,an emergency headquarters is set up at the appropriate key site, based on a priority determined in advance. Under the direction of theheadquarters, the aim is to minimize damage by continuing to provide products and services to customers worldwide based on limited
resources. Through rapid restoration of business operation, the confidence of business partners and customers is maintained.

Information system disaster response measures
With the risk of power interruptions following the Great East Japan Earthquake that struck in March 2011, disaster response
measures are more important than ever before. In addition to an internal data center, Casio utilizes a secure external data center thatfeatures seismic construction and self-contained power generation.
Casio has also lowered its disaster risk by actively utilizing public cloud computing infrastructure for some of its business content andservices. In October 2011, Casio also moved its e-mail system, an important means of communication for employees, to aprofessional external provider.
The company also performs disaster drills in conjunction with the group-wide business continuity plan.

Information security
Casio is aware of its important social responsibility to maintain the security of information that it collects from
customers and other stakeholders in relation to its business activities. Casio strives to maintain the highest level of
information security. With the full implementation of Japan’s Act on the Protection of Personal Information in 2005,
Casio launched the Protection of Personal Information Project and publicized the Privacy Policy on its web site.
Furthermore, as part of Casio’s drive to strengthen its system for safe and proper handling of personal information,
Casio Computer Co., Ltd., worked to qualify for the Privacy Mark* certification and received it in December 2005.
Since obtaining certification, Casio has been properly carrying out the plan-do-check-act (PDCA) cycle to maintain its personal information
protection management system. This includes the establishment of annual plans, having all employees undergo training and make apledge, regular checking of personal information, access management on information systems, consignee supervision, and internal audits.
Accordingly, Casio has been able to renew and maintain its certification.
In November 2007, Casio’s Information System Department received information security management system certification (ISO 27001).
The aim of applying for certification was to evaluate fulfillment of responsibility by the information system department, which has specializedskills and takes care of information assets for the entire company. Since then, Casio has further improved information security and its
effectiveness, and continues to implement PDCA cycles for risk reduction activities. A certification renewal audit is held every three years.
With the regular audit conducted in February 2013, the compatibility and effectiveness of Casio’s information security management system
was again evaluated.
* Privacy Mark: A program where the Japan Information Processing Development Corporation, a public-service foundation, evaluates the adequacy of corporate
protective measures related to the handling of personal data. Companies that are found to have adequate protective measures in place are certified and permitted
to display the Privacy Mark.

CASIO SUSTAINABILITY REPORT 2013

28

Whistleblower Hotline
As a way to help ensure compliance, Casio set up a Whistleblower Hotline in April 2006. The hotline has been functioning with neutrality
and fairness across all of its internal and external contact points.
Operating on a basis of impartiality, the hotline follows up on all whistleblower reports and consultations, and takes resolute measuresagainst any improper behavior discovered. Effort is put into preventing issues before they grow into real problems.
In fiscal 2013, the hotline received one call, down from seven the previous year thanks to the ongoing efforts of all those concerned. The
aim is to reduce the number to zero. The whistleblower was interviewed, details were investigated, and corrective measures were taken.
The issue was resolved to the whistleblower’s satisfaction. The company will continue to watch for any latent problems.
To ensure thorough hotline awareness, Casio will strive to further increase employee understanding in fiscal 2014, with an intranet site
dedicated to information on whistleblower protection.
＜Fiscal 2013 Report Details＞
1 ethics issue reported
Whistleblower Hotline

Export control
Export control, or security trade control, aims to maintain international peace and security. It involves regulations on the export of goods andtechnology that could be diverted for the development of weapons of mass destruction or other weaponry. The regulations are designed toprevent such goods and technology from reaching countries and regions of concern or terrorist organizations.
In 1987, the Export Control Security Program of Casio Computer Co., Ltd. (a compliance program) was established in order to make sureproper measures are taken to ensure the security of exports. The program has since been continually updated along with changes in theJapanese Export Control Regulation.
Casio has appointed employees responsible for export control in relevant departments as part of an internal system to ensure observanceof the program.
As the Exporter Compliance Standards took effect in April 2010, Casio has been striving to maintain and manage its system by conducting
voluntary annual audits while ensuring through legal compliance, in response to the revision of applicable laws and regulations. Efforts
include the strengthening of training activities at group companies in Japan.
Casio has also established a management system for complying not only with Japanese export laws but also with US Export Administration
Regulations. The company is working to improve global export management, including the implementation of export management training
in fiscal 2013, at group companies in the UK and Germany.

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CASIO SUSTAINABILITY REPORT 2013

Initiatives for compliance with fair trade and advertising laws
In order to promote proper transactions as well as fair, transparent and free competition, it is essential for sales employees to have a proper
understanding of Japan’s Act on Prohibition of Private Monopolization and Maintenance of Fair Trade and Act against Unjustifiable
Premiums and Misleading Representations. The sales offices of Casio Computer Co., Ltd., in Japan are strengthening their measures toensure compliance with these laws.
The domestic sales department of Casio Computer Co., Ltd. has distributed a Sales Compliance Card to all its domestic sales employees.
They must always carry the card to remind them about proper sales activities based on fair completion. In addition to the Charter ofCreativity for Casio and excerpts from the Casio Group Code of Conduct, the card contains an ethics and compliance test, as well as
contact information for a consultation service, and the number for the Whistleblower Hotline. Whenever a salesperson is in doubt over a
course of action during daily sales activities, he or she can perform a self assessment or consult with the relevant service.
Casio also strives to avoid mistakenly providing inappropriate product information that can be seen as false, exaggerated, or misleading,
based on relevant laws such as Japan’s Act against Unjustifiable Premiums and Misleading Representations and company rules.
Specialized staff regularly check materials containing product information.
All employees at the overseas sales department of Casio Computer Co., Ltd., receive training on competition law, which has been
mandatory since fiscal 2009.
Casio Sales Compliance Card

CASIO SUSTAINABILITY REPORT 201330

Evaluation: All targets met,

: Most targets met,

: Remaining issues outweigh results,: No progress madeManagement
FY2013 Targets & Plans

FY2013 Performance

Promote further improvement of internal
controls based on Japan’s Financial
Instruments and Exchange Act

Promoted stronger internal controls
through activities aiming to improve
management structure and the financial
strength of the group overall

Formulate and implement a new risk
monitoring mechanism, following theend of the previous risk management
and implementation cycle

Formulated and implemented a newrisk monitoring mechanism for risks
associated with important laws, amongindividual compliance risks for whichmeasures had already been taken andmechanisms created. Performed
evaluation by the CSR Committee
Secretariat

Shift the focus of CSR education in the
Casio Group from complianceeducation based on Japanese law to
CSR itself

Thoroughly raised complianceawareness in the Casio Group through
CSR education and a compliancequestionnaire

Carry out comprehensive security
management adapted to the changes insociety and the business environment

Conducted employee education
concerning the use of smart devices
and social media

Strengthen the linkage between risk
management and business themes(measures related to better productquality, improved IT services andsecurity)

Promoted stronger linkage with eachbusiness theme. Advanced theestablishment of an IT-BCP as part ofISMS activities, in conjunction with thegroup-wide business continuity plan

Improve operation processes and tools
using ITIL and establish PDCA cycles
for improvement of service quality

Promoted improvement measures for
operation processes and tools using
ITIL

31

Evaluation

FY2014 Targets & Plans
Promote further improvement of internal
controls based on Japan’s Financial
Instruments and Exchange Act
After considering changes in thegroup’s business environment, analyzerisks relating to compliance, confirm
mechanisms as indicators of riskmaterialization and implement
measures as necessary
Based on the revised Casio Group
Code of Conduct, implement CSR
education with the aim of thoroughly
raising CSR awareness across theentire Casio Group

Promote continuous application of
security management adapted tochanges in the business
Promote ongoing IT-BCP drills andeducation

CASIO SUSTAINABILITY REPORT 2013

Customers
FY2013 Targets & Plans

FY2013 Performance

Evaluation

FY2014 Targets & Plans

Establishing systems that conform tosafety laws and regulations

Strengthened safety inspections for
new models and critical components

Establishing systems that conform tosafety laws and regulations

Reduce quality problems by focusing on
new technology

Ensured thorough reoccurrence
prevention by sharing past problems

Reduce quality problems by focusing on
new technology

Prioritize management of productquality as an integral part of overseas
business expansion

Prepared overseas quality information

Prioritize management of productquality as an integral part of overseas
business expansion

Continue to improve customer
satisfaction based on implementation ofafter-sales customer satisfaction
surveysBegan an ongoing online customer
satisfaction questionnaire for customers
that used Casio’s repair service

Continue to improve customer
satisfaction based on the customer
satisfaction questionnaire

Update the pages about watches on thecustomer support website

Updated watch after-sales service
content on the customer support
websiteImprove watch content on the customer
support website

Strengthen feedback by improving andestablishing methods for analyzing
trends in the comments of dissatisfied
customers

Improved methods for analyzing trends
in the comments of dissatisfied
customers, and promoted ongoinginternal provision of customer feedback

Expand new plant in Thailand
Further diversify China concentration
risk by adding more products to thosefor which risk is already diversified

Started operation of the new plant inThailand, mostly according to plan
Completed the first stage of risk
diversification for flooding and China
concentration

Further clarify status of components
through restructuring of productionrelated systems and reorganization of
IPO functions

Promoted production management
reform project according to plan.
The systems at each site werestandardized, making production sitechanges and allocation changes easier,while also improving operation speed,
efficiency, and accuracy

CASIO SUSTAINABILITY REPORT 201332

Improve customer satisfaction throughsurveys on the quality of telephonemanners of Casio and other companies,
and results analysis

Promote further diversification of China
concentration risk, by starting thesecond phase of the new plant inThailand
Promote an overall approach for the
ASEAN regionSuppliers
FY2013 Targets & Plans

Continue to implement CSR
questionnaires in and outside Japan
Review the question categories forJapan to make the content easier for
suppliers to understand and respond toContinue to follow up BCP surveys

FY2013 Performance
Continued CSR questionnaires in andoutside Japan(responses from 260 companies inJapan, and 159 companies in
China)*Not conducted in Thailand dueto the flooding there, but plan to resume
in fiscal 2014
The questionnaire in Japan wasrevised. Overlapping questions were
eliminated, and questions on policies toavoid conflict minerals were added as a
new theme.

Evaluation

FY2014 Targets & Plans

Continue to implement CSR
questionnaires in and outside Japan,
including questions on policies to avoid
the use of conflict minerals

Companies were also asked about their
BCP preparations two years after theGreat East Japan Earthquake
Continue to implement inspections of
CSR measures for suppliers outsideJapan
In Thailand, recommence educationand inspections once operations at newplant stabilize

Share expertise through model initiative
presentations by suppliers that havereceived onsite inspections of CSR
measures

Conducted onsite inspection at 10
companies in China. Over three years,
43% of suppliers have been inspected,
based on transaction scale.
The CSR promotion project in Thailand
was reorganized and activities resumed
in the last half of the year.
Presented improvement cases tosupplier representatives at suppliermeetings in China. Shared expertisethrough the presentation of bestpractices confirmed through onsite
inspections the previous year

33

Ensure application of PDCA
management cycles for onsite
inspection of CSR performance at
suppliers outside Japan

Share various CSR performance issues
with suppliers at supplier meetings(e.g., avoidance of conflict minerals in
2013)

CASIO SUSTAINABILITY REPORT 2013

Employees
FY2013 Targets & Plans

FY2013 Performance

Evaluation

FY2014 Targets & Plans• Strengthen training system for
employees to be posted outside Japan(establish and implement executive
training)• Construct role standards for
employees posted outside Japan• Establish education for locally hired
executives at overseas groupcompanies• Improve nationality diversity byactively employing outstanding foreign
students studying in Japan

Employ and train global humanresources• Reconstructed the training system for
employees to be posted outside Japan(established and implemented overseas
site management skill training andcross-cultural management training)• Established a consolidated humanresources policy for overseas groupcompanies• 20% of new recruits in fiscal 2014 tobe foreign students studying in Japan

Continue activities for the advancementof female employees• Started a mentor system• Prepared a maternity and childcare
manual• Held a meeting to exchange views on
work-life balance (25 participants)• Held a role model introduction event• Improved awareness in and outside
the company

Take action to achieve the legally
mandated employment rate of persons
with disabilities at group companies inJapan• Raised the rate from 1.64% to 1.84%
for consolidated Casio Group
companies in Japan• Actively participated in joint interviews
sponsored by employment bureaus• Implemented an employee follow-up
system including group companies inJapanContinue to provide rehiring
opportunities to employees who havereached mandatory retirement age

Revised the Senior Programs at allgroup companies in Japan, following
the revision of the Act for Stabilizationof Employment of Older Persons
Continued to provide fair rehiring
opportunities to employees who havereached mandatory retirement age

Maintain percentage of eligible female
employees taking childcare leave
above 90%

Maintained percentage of eligible
employees taking childcare leave above
90%

Maintain percentage of eligible
employees taking childcare leave above
90%

Continue initiatives for reducing
overtime work

Strengthened overtime control for
management employees,
and required managers exceeding 80
overtime hours to see the industrial
physicianEstablish new measures and improve
activities with the aim of further
reducing overtime work

Ensure referral of those with high-risk
results in a regular health check to
medical institutions for proper medical
examinations

Thorough follow-up measures (70%
implementation rate) for those withhigh-risk results

Ensure thorough follow-up measures(target 80% implementation rate) for
those with high-risk results

Continue smoking-cessation support
programCreated a plan to strengthen thesmoking-cessation program

Promote the program at the Casio
headquarters in Hatsudai

CASIO SUSTAINABILITY REPORT 201334

Launch and promote a diversity project
Female employees• Strengthen the mentor system• Start women engineers meetings• Match the male-female ratio for
executive appointment with that foroutstanding general employees
Non-Japanese• Improve nationality diversity throughactive hiring of outstanding foreign
students studying in Japan
Persons with disabilities• Achieve the legally mandated
employment rate for consolidated groupcompanies in Japan• Maintain the employee follow-up
systemSeniors• Continue to provide rehiring
opportunities to employees who havereached mandatory retirement age• Start new initiatives to further promote
active roles for seniors

Local communities
FY2013 Targets & Plans

FY2013 Performance

Boost nationwide roll-out of activities bycontinuing to promote the programs foreducating the next generation

Expanded the activities to include
Miyagi, Yamanashi, Nara, and Fukuoka,
and provided learning opportunities to a
total of 3,666 people

Boost nationwide roll-out of activities bycontinuing to promote the programs foreducating the next generation

Continue to support cutting-edge
science and technology research

The Casio Science Promotion
Foundation provided 38 research grants
for a total of 50 million yen

Continue to support cutting-edge
science and technology researchContinue to provide assistance forvictims of the Great East Japan
Earthquake, with a focus on helping
children orphaned by the earthquakeand ensuring adequate emotional carefor children and school students
affected by the earthquake

Donated products to NPOs that provide
emotional care for children and school
students affected by the earthquake,and continued support for the Ashinaga
Scholarship Society

Continue to provide assistance forvictims of the Great East Japan
Earthquake, with a focus on helping
children orphaned by the earthquakeand ensuring adequate emotional carefor children and school students
affected by the earthquake.

35

Evaluation

FY2014 Targets & Plans

CASIO SUSTAINABILITY REPORT 2013

Casio is recognized by the market for its commitment to treating customers right. The company constantly
strives to ensure its business management is worthy of customer confidence.

Product Development and Design Initiatives

Intellectual Property Initiatives

Casio develops products with new value andhelps create new cultural phenomena.

Casio secures competitive advantage,
maintains operational freedom, andCasio's product development concept is
simple: going from "0" to "1."

improves profitability by adopting specificmechanisms to drive the creation of
intellectual property.

Activities to Improve Customer Satisfaction

Quality Assurance

Casio believes customer satisfaction canalways go up, and is strengthening its threemain customer satisfaction initiatives.

In order to maintain the confidence ofcustomers and ensure the reliability of its
products, Casio takes an integrity-based
approach to constant quality improvement.

Customer Support Center/Ensuring customer
satisfaction

Providing Support Information/Repair Service
To please customers and ensure their peaceof mind when using its products, Casio is
working to improve its system for providing
customer support information, while

Deeply valuing long-term relationships withcustomers, Casio strives to improve the skillsof support employees and uses customer

enhancing the service skills of its staff.

feedback in the development of products andservices.

Stable Supply of Products
Casio is working to strengthen its global
supply chain to meet rising product demand.

CASIO SUSTAINABILITY REPORT 201336

Casio's approach to product development is all about creating something from nothing, or going from “0” to“1.”Casio employs its creative product planning and design capabilities to conceive new ways to meet consumers’latent needs.
Casio’s advanced technologies are then put to work to deliver products that provide entirely new value.
Casio’s Ever - Advancing Core Technologies
Casio is constantly developing its five core technologies to make it possible to turn groundbreaking ideas into actual productCasio’s Ever -Advancing Core Technologies

Product Planning
Going Beyond Conventional Thinking— The “ 0” to “ 1” Approach to Meeting the Essenceof User Need
Casio focuses on the experience that people really want to have with its products. This ensuresthat the company’s product planning is always fresh, as developers even think outside the box of
Casio’s existing technologies. A good example of this was the development of a new digital
camera with a high-speed image processing engine that enables users to press the shutter button
at very short intervals. The idea for this new camera came from a frustrating experience that Casio
developer Nobuyoshi Nishizaka had one day.
He missed the initial moments of his child’s first solo bike ride, because his high-speed continuous
shooting camera was busy processing images taken an instant before and was not ready for the
shutter to be pressed again. He himself had been part of the team that developed the advanced
continuous shooting function, but Nishizaka realized the camera could not quite capture certain

Nobuyoshi Nishizaka,
QV Product Division

truly unexpected, now-or-never photo opportunities. Up to that point, the development approach
had been to create high-speed continuous shooting that could capture virtually anything. Clearly, it
was time to expand the concept. So he went back to the drawing board, aiming to create a camerathat anyone can easily use to capture the truly spontaneous, memorable moments of life. This
flexibility to think beyond even successful existing ideas—the freedom to consider what is reallyneeded—is the key to innovation at Casio.
The unpredictable, spontaneous,
fleeting smile of a child

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CASIO SUSTAINABILITY REPORT 2013

Technology
Creating New Amazement with Technology That Makes the Impossible Possible
Casio makes the most of its original digital technology to take on the challenge of making theimpossible possible—in more ways than one. One example is the Casio AiR Sound Source, which
digitally recreates the rich sound and tonal qualities of a grand piano. The harder the player hits
the keys, the brighter and more powerful the sound, while a soft touch enables gentle, delicate
expression. Not only that, the transitions between levels of hard and soft playing are virtually
seamless. AiR Sound Source delivers sound with natural depth by adding three-dimensionalsound morphing from the time the note starts until it dies away. This very closely mimics theunique sound of a grand piano, where the wooden case and strings resonate together.
High-speed arithmetic processing enables the instant-to-instant simulation of the complex
changes in tone that occur inside a grand piano. This would be impossible using a conventional
PCM sound system, which uses only pre-recorded samples for each note. Casio keeps pushing

AiR Sound Source generates naturalchanges in tones as they fade away

the frontiers of digital technology to do the impossible—and digital technology is just one of
Casio’s core technologies.

DesignProviding Plenty of Style Options— Something for Everyone
Casio uses a design approach called “CMF” for “color, material, and finish.” Perfect for
creating product variation, this process makes it efficient for Casio to offer a variety ofdifferent looks for each model. Designers can give a base model not only different colors, butalso a wide range of material textures and surface finishes. With G-SHOCK watches forexample, special printing or metallic treatment on the plastic base material gives each designa unique feel, which would be difficult with actual metal or natural leather. For watches, the
CMF approach is reflected not only in the hands and dial, but also in the watchband, toprovide each watch with its own strong personality. Customers love to express themselves bychoosing the Casio product that best fits who they want to be. This is yet another way that
Casio creates new value.

Recreating the texture of leather materials
with a special surface treatment

Going beyond universal design to human-centered design
Casio works to develop products using human-centered design (HCD) in conformity with ISO
13407 processes, with the objective of improving product ease of use as part of the product’s
overall quality. In the HCD process, Casio seeks optimal ease of use by determining important
issues from customer feedback and observation of product use in real-world situations.
Through repeated evaluation and verification, Casio works to develop highly desirable
products.
The V-T500 series of tablet terminals was developed to provide support in a variety ofbusiness environments. They feature a user-replaceable, high-capacity rechargeable battery
for long hours of operation, and a SAM slot to support a higher level of security. The tablets
can also withstand drops from one meter, are dust and splash-proof (IP54 compliant), and canoperate in temperatures ranging from -20°C to 50°C. The V-T500 series offers outstanding
grip-ability for comfortable operation even in the rain or other environments where objects
become slippery.
This performance is based on the testing and evaluation of multiple exterior designs, including
a raised frame around the screen and hand-gripping grooves on the back of the device.

CASIO SUSTAINABILITY REPORT 2013

38

Business support Tablet terminal V-T500

Digital design data shared on a network
Casio products are all designed in 3D using computer software, and are stored as digital data. Thesefiles are centrally managed along with circuit diagrams, component data, specifications, andproduction schedules, and are shared via network with production sites and logistics facilities. Thissystem was established to enable Casio to flexibly adapt to changing conditions, such as changes inuser needs and the economic environment.
By sharing this data throughout the company, Casio can ensure that circuits and parts that work thesame way, even if used in different product areas, are standardized, achieving lower procurement
costs and greater efficiency in assembly. If any problems arise in relation to quality or theenvironment, Casio can efficiently go through its past product lineup to determine if there is a need toreplace a certain part, or can work across departmental lines to examine the total environmental
impact, for instance, calculating the amount of designated chemical substances contained in
products.
Design data is also used in the creation of catalogs and instruction manuals. Since design data canbe used to create 3D diagrams and cross-section diagrams, there is no need to start drawing new
diagrams from scratch. This accelerates the production process and keeps costs down.

Platform design for flexible production
Casio's electronic dictionaries come in a variety of models and in a wide array of colors to meet the needs of today's diverse users. To
efficiently produce product lineups that span a wide range of configurations, Casio integrates all the common parts of each product tocreate a single "platform unit." This allows Casio to keep costs down by ordering parts in large quantities, and to improve manufacturing
efficiency by standardizing production processes.
Casio determines how many of each product to ship by looking at the market conditions immediately before shipment, inserting different
types of content into the platform units, assembling the exterior, and then packaging the products. This allows Casio to supply only the
number of models necessary in the shortest period of time.
Use of platform unit in electronic dictionary

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CASIO SUSTAINABILITY REPORT 2013

Casio is actively promoting intellectual property activities in line with its management strategy throughcooperation between its R&D and business divisions. Based on these activities, the company aims to protect
its businesses, and contribute to corporate profitability.
Policies for promotion of intellectual property activities
Casio takes a medium- to long-term perspective in order to increase its technology management ability, and is systematically promoting
research and development for the creation of future business. While recognizing R&D results as intellectual property, Casio is taking steps
to ensure that they are properly managed and utilized in order to secure profits. Casio places importance on intellectual property as animportant measure of corporate value. In order to effectively promote intellectual property activities, Casio has set the following goals forpromoting intellectual property activity, and implements them group-wide for effective utilization of intellectual property.

Intellectual property goals“Making Casio a Company with Even Stronger Intellectual Property Capacity”
Casio is working to increase its intellectual property capacity using the following goals.
▪ Increase the intellectual property capacity of Casio▪ Protect technology and products globally with strong intellectual property capacity▪ Guarantee creative technology and product development through strong intellectual property capacity

Role of the Intellectual Property Department
Since its founding, Casio has worked to develop innovative new technologies and products that are completely original and have neverexisted before. The protection of these development results through the creation of intellectual property rights is vital to ensuring corporate
competitiveness. At the same time, protecting Casio brands and designs from counterfeiting by securing intellectual property rights is also
an important activity for the company.
The Intellectual Property Department aims to secure intellectual property rights on a global level. Its role is to utilize patent, design, andtrademark rights in order to help establish competitive advantage for corporate management.
The center also broadly manages intellectual property (rights) such as copyrights and trade secrets as well as general intangible properties,
while signing contracts with third parties and resolving disputes.

Intellectual property activities
Casio implements various intellectual property activities. Casio actively utilizes the intellectual property that it has accumulated over theyears, and carries out activities to protect its businesses. The company conducts ongoing R&D necessary for sustained growth, and has
put in place various systems for producing new intellectual property.

1. Patent application and rights acquisition activities
Casio constructs patent nets based on patent application and registration in priority fields (selection and concentration), and actively
promotes activities for the acquisition of effective patents based on quality improvement. The company carries out patent application andrights acquisition activities worldwide, including in the USA, China, South Korea, Taiwan, and other Asian countries.

CASIO SUSTAINABILITY REPORT 201340

Global patent portfolio

2. Intellectual property rights utilization
In addition to securing intellectual property rights for its inventions and other proprietary developments, Casio works to ensure freedom of
operations by preventing legal claims from other companies and earns profits by licensing its technologies to other companies (including
cross licensing). The company also uses intellectual property as a barrier to deter other companies from entering the same business, andcarries out activities to establish competitive advantage for corporate management. In particular, Casio takes stringent measures to combat
counterfeit products, and cooperates with government agencies to remove fakes from the marketplace.

3. Patent expert system
Casio initiated a patent expert system in 1994 in order to promote
the ongoing creation of outstanding intellectual property. With theaim of business strengthening through stronger intellectual
property, engineers with high-level understanding of technologies
and leadership skills have been assigned to each division as
patent experts. While cooperating with the Intellectual Property
Department from positions within their respective divisions, thesepatent experts work to strengthen the intellectual property abilitiesof their respective organizations.

Meeting for patent experts

Here are details of specific activities.
1. Patent activity planning based on ascertainment of technology and development trends at Casio and other companies, as well as
target management
2. Discovering and updating inventions
3. Evaluation of patent applications, determination of direction for patent creation according to business strategy, as well as evaluationof patent maintenance
4. Surveys of patents at other companies, patent infringement avoidance, and patent risk management
5. Creation of new businesses centered on intellectual property

4. Techno Power
Casio's in-house Techno Power technology exhibition began in
1992 and is held annually to stimulate engineers, and foster
sharing and cross-fertilization of technology. By creating a placefor engineers to present their results to top management, and an
opportunity for outstanding engineers and designers to receive
recognition (i.e., awards based on the suitability of intellectual
property results), the exhibition is a source of pride and motivationfor engineers and encourages them to take on the challenge ofdeveloping new technologies.

Techno Power exhibition

41

CASIO SUSTAINABILITY REPORT 2013

5. Invention award system
Since 1968, Casio has had an award system for those employees that contribute to inventions and designs. By increasing the incentive forinventors and designers, the system fosters the desire for in-house engineers to take on the challenge of discovering new technologies. In
accordance with Article 35 (Inventions by Employees) of Japan's revised Patent Act, which took effect in April 2005, Casio has revised its
environment for employee inventors. It updated its intellectual property rules and created a consultation process in which the employee
inventors can voice opinions in the revision of the rules. It also implemented a system for employee inventors to file an objection tomonetary reward amounts. Based on the demands of employee inventors, the rules were revised again in April 2006 and April 2011.

6. Intellectual property training system
In order to create a stronger awareness about the acquisition of intellectual property, Casio holds intellectual property seminars to deepen
employee understanding and interest in intellectual property. The company also distributes relevant information online (through intellectual
property website content), and uses outside educational organizations such as the Japan Intellectual Property Association and the Japan
Institute of Invention and Innovation. In this way, the company is promoting various intellectual property education activities.

7. Brand support activities
Protecting rights to the Casio brandIn order to promote smooth corporate operations on a global level, the company protects the Casio brand with 1,973 registered trademarks
in 193 countries around the world, most of which are product trademarks. In 2009, the Casio brand was recognized as a well-known
trademark by the Chinese authorities (see the related Highlight column).
In recent years there have been more trademark applications by other companies—mainly in emerging economies such as China andIndia—which try to mimic the well-known Casio brand. As a result Casio has been strengthening its monitoring activities and its efforts toprevent the trademarking of look-alike brands.
Trademarking of the Casio Brand Design rights acquisition (as of March 31, 2013)

Casio has registered the Casio brand for product trademarks in the countries indicated in blue. In the countries indicated in yellow,
trademark review has been delayed in one area, there is no trademark system, or applications are not being accepted due to the politician
situation.

CASIO SUSTAINABILITY REPORT 201342

Activities for minimizing risk entailed by new product naming and design, as well as rights acquisition
While avoiding the risk of infringing upon the design or trademark rights of other companies, Casio is actively promoting business support
activities based on the strengthening of Casio's own design and trademark rights.
Design rights acquisition (as of March 31, 2013)

Trademark rights acquisition (as of March 31, 2013)

Counterfeit product removal and consumer protection activities
Counterfeit versions of Casio watches and calculators can be found around the world, and they can have a large negative impact on sales.
In 2005, Casio began holding regular group-wide conferences combat fake products. At these meetings, employees discuss the damage
situation, priority of countermeasures, and the degree of importance. Business divisions and sales departments at headquarters arecommitted, and Casio is working to strengthen its counterfeiting countermeasures in China, Hong Kong, and other consumer countries. At
the same time, Casio has appointed an employee in charge of counterfeiting countermeasures at Casio Shanghai, and is strengthening
efforts to stop these products at Chinese factories and in customs inspections.

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CASIO SUSTAINABILITY REPORT 2013

Casio is striving to improve customer satisfaction through three major activities.
Activities to Improve Customer Satisfaction
Aiming to further improve customer satisfaction (CS), Casio has focused on strengthening the three major CS initiatives listed below since
fiscal 2009. Casio is working to incorporate the voice of the customer more than ever before in the creation of even better products.

Under these three major CS activities, Casio is investing in programs to improve product knowledge, repair technical skills, and customer
service skills. In fiscal 2013, Casio once again carried out Internet surveys using its own method, which it established in fiscal 2010 toensure continual assessment of customer satisfaction levels, particularly with regard to after-sales CS activities.
Casio is also working hard to ensure that customer feedback from in and outside Japan is always delivered directly to the right place within
the company, and to take unified improvement measures. Casio is also constantly working to improve product functions (functional CS).
Casio compiles and analyzes information on customer inquiries and product defects in and outside Japan. It focuses on early detection,
rapid response and prevention of recurrence of problems (quality CS).

CASIO SUSTAINABILITY REPORT 201344

In all of its business processes, Casio always takes the customer's perspective and bases its actions on the
Principle of the Five "Gens"—in Japanese, genba (on site), genbutsu (actual goods), genjitsu (reality), genri(theory) and gensoku (rule). Casio focuses on daily improvement in order to provide customers with reliability
and peace of mind, and to meet customer demands with speed and integrity.
"Casio Quality"—World-class Quality Assurance
In order to deliver products and services that offer reliability and peace of mind to customers, Casio is constantly working on improvements
to pursue the best solution for customers.

Quality assurance at Casio
Casio believes it is important not only to provide products and services that delightcustomers, but also to win acceptance from the whole of society and achieve mutual
prosperity. Toward this end, Casio Quality includes everything from the quality of
individual products, to environmental protection and recycling. The role of quality
assurance is to deliver quality that satisfies customers in every possible way.

Quality assurance system
In order to carefully maintain and improve Casio Quality, the company has created the quality assurance system shown in the diagram
below. Chaired by the Executive Vice President, the Promotion Committee for Group-wide Quality Enhancement meets twice a year. It
pursues activities such as making quality data accessible and easy to understand, and sharing quality information, while passing
resolutions on quality policy and measures. The results are used for quality assurance activities in each division.
Quality Assurance Framework

As the division in charge of group-wide quality management, the CS Department (within the Global Marketing Headquarters) has been
linked together with the Engineering Department (within the Production & Purchasing Division). By closely connecting the productdevelopment and sales teams, Casio is working hard to ensure quality, with the cooperation of all departments, while always pursuing thebest solution for customers.

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CASIO SUSTAINABILITY REPORT 2013

In order to create a common group-wide awareness of "Quality First" being the foundation all operations, strong leadership is essential fromtop management and those responsible for quality. The Promotion Committee for Group-wide Quality Enhancement implements training toensure employees understand and are widely aware of regulations and standards relating to quality and safety, and to learn technology
expertise. This includes holding presentations for the improvement of quality management skills.
Moreover, Casio is striving to raise the level of quality initiatives and improve the quality skills of employees, including the holding of
in-house seminars given by outside instructors.
Casio's production plants carry out plan-do-check-act (PDCA) cycles using the ISO 9001 Quality Management System. In order to deliver
reliability and peace of mind to customers that use Casio products, Casio employees focus on daily improvement.
List of ISO 9001 Certified Sites
Classification

Development, Production and Service
Sites in Japan

Production Sites outside Japan

Certified and Registered Sites

Initial Version Registration
Date

Product Solution Department, System Product Division, Casio
Computer Co., Ltd.

June 25, 1999

Casio Electronic Manufacturing Co., Ltd.

August 5, 1994

Yamagata Casio Co., Ltd.

December 16, 1994

Casio Techno Co., Ltd.

May 21, 2004

Casio Electronic (Shenzhen) Co., Ltd., Guandu Factory

March 22, 2002

Casio Electronic Technology (Zhongshan) Co., Ltd.

October 26, 2006

Casio (Thailand) Co., Ltd.

July 13, 2012

Pursuing top quality
Casio's efforts to achieve premium quality are guided by a clearly articulated Quality Concept and Quality Management Policies, which
provide indices for evaluating all quality initiatives.

Quality Concept
Casio maintains a strong quality assurance system, based on its belief in "Quality First." This system requires all employees tomake quality their first concern in every task they perform, enabling the company to offer products and services that pleaseand impress customers. The company's commitment to quality supports its corporate growth and makes social contributions
possible, while at the same time winning customers' trust and giving them peace of mind.

Quality Management Policies
To build a good corporate image, we offer products and services that please and impress our customers, gain their strong
trust, and ensure their peace of mind.
We respond to our customers' requests and inquiries with sincerity and speed, and reflect their valuable comments in our
products and services.
In all our business processes, we base our actions on the Principle of the Five "Gens"—in Japanese, genba (on site),
genbutsu (actual goods), genjitsu (reality), genri (theory) and gensoku (rule)—and adhere to the basics of business
operations.
We capture and analyze quality assurance activities quantitatively, using reliable data, and use the analysis to makecontinuous improvements. We also maintain a quality information system that enables the sharing of quality information andprevention of problems before they occur, and prevents recurrence of quality problems.

CASIO SUSTAINABILITY REPORT 201346

Offering Users Peace of Mind
Casio makes every effort to ensure product safety so that customers can always use Casio products with peace of mind. As shown in the
diagram below, Casio works to ensure product safety in each process from product planning, development, and design, to trial
manufacture, evaluation, production, and delivery. In order to maintain and enhance these efforts, the company performs safety audits andworks to prevent potential problems from occurring, or issues from reoccurring.
Product safety system

To comply with the legislative intent of Japan’s recently revised Consumer Product Safety Act, which went into force on May 14, 2007, theCasio board of directors has adopted the Fundamental Policies on Product Safety. Based on these policies, Casio has put in place theProduct Safety Voluntary Action Plan which specifies the details of the steps to be taken. The company has also reengineered its response
systems for handling those unusual situations when a product-related accident occurs, and has established procedures for managing suchsituations. These include the steady, timely collection and dissemination of accident information, the issuance of notifications and reports tocustomers and relevant administrative agencies, prompt, appropriate response measures, efforts to identify causes, and measures toprevent any future recurrence.

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CASIO SUSTAINABILITY REPORT 2013

Aiming to build enduring relationships of trust with customers, Casio values customer communication andincorporates the voice of the customer into its efforts to improve products and services.
Customer Support Center activities
In order to promote long-lasting relationships of trust withcustomers, the Customer Support Center strives to respond to

Breakdown of Customer Inquiries in Japan(Fiscal 2013, Consumer Products)

customer inquiries rapidly, exactly, politely and sincerely. The
Customer Support Center strives to resolve any issues
customers may have.
The center is also always working to enhance its education
programs to enable the appropriate provision of useful
information that customers want. For example, the curriculumfor newly hired or transferred personnel has beensystematized and rebuilt. The center is also providing training
to continually improve basic quality and presenting employee
achievements in numerical format for principal skills such asverbal communication and writing. Even in the area ofcustomer service quality, response procedures have been
documented to promote standardization, and a centralized
information database is being built.
Customer inquiries and complaints are welcomed as important customer feedback. After analyzing the content of this feedback, therelevant departments and the Customer Support Center work together to implement improvement measures, and these efforts help toimprove customer satisfaction for Casio products and services.
Casio is also working hard to develop a structure for building positive relationships with its customers around the world in partnership withcustomer support centers at local sales subsidiaries outside Japan.
Breakdown of Product Inquiries (Fiscal 2013, Overseas/Japan)
Item

Fiscal 2013
OverseasJapan

Timepieces

43.1％

29.4％

Digital Cameras

24.0％

17.0％

Calculators

7.3％

3.2％

Other Consumer Products

8.8％

27.0％

System Equipment

16.8％

23.4％

100.0％

100.0％

Total

CASIO SUSTAINABILITY REPORT 201348

Customer Support Center

How customer comments are utilized for products and services

49

CASIO SUSTAINABILITY REPORT 2013

Ensuring customer satisfaction
The voice of the customer is essential information for product improvement, and Casio regularly conducts customer satisfaction surveys.
While also referencing customer comments received by the Customer Support Center, Casio is striving to develop even better products andimprove the level of customer satisfaction.
Improvements to watches after customer feedback

CASIO SUSTAINABILITY REPORT 201350

Global Teachers Meeting Spurs Product Development
Nearly every year since 2007 Casio has held a Global Teachers Meeting, inviting teachers fromaround the world who are passionate about mathematics education and research to the Hamura R&D
Center and Casio headquarters in Hatsudai. The aim of the meeting is to contribute to thedevelopment of mathematics education in actual classrooms by using feedback from teachers todevelop products that meet real-world educational needs.
In 2012, the meetings focused on the use of high-performance graphing calculators in developed
countries, where IT has become an integral part of education in recent years. There were vigorous
discussions on the features and specifications that make graphing calculators easier to use, easier toteach with, and further enhance student understanding. Using this input, Casio developed andGlobal Teachers Meeting 2012

released the ClassPad II (fx-CP400) in March 2013. It offers switching between upright and horizontal
views, and was well received by teachers worldwide.

Graphing calculator (ClassPad II (fx-CP400))

One-touch switching between upright and horizontal view

51

CASIO SUSTAINABILITY REPORT 2013

Casio is improving its system for providing product support information, as well as the service skills of its
staff, to ensure customer satisfaction and peace of mind.
Online support sites
Casio has customer support websites for various regions around the world, offering customers convenient access to information 24 hours aday, 365 days a year. In order to ensure that customers can use Casio products with confidence and peace of mind, these websites provide
product operation, repair and other support information that customers may need in 17 languages.
In fiscal 2012, Casio analyzed the number of visits and duration of visits for each of the pages on its Japanese website and madeimprovements to make it easier for customers to reach the page they want with fewer clicks.
Casio continues to monitor and analyze the traffic at each of its websites. Casio is continually working to improve and expand its online
support sites so that customers can get the information they need before having to call the Customer Support Center.

Online support sites

Online support sites

CASIO SUSTAINABILITY REPORT 201352

Repair service in Japan
Casio's service departments, which are responsible for product repairs, strive to satisfy customers by providing after-sales service that
fulfills three commitments: reliable technology, prompt response, and reasonable service fees.
In September 2012, Casio began returning repaired products to customers with information directing them to customer feedback website.
Customers are invited to provide an immediate evaluation of the service they have received. The feedback helps Casio to further improve
its repair service.

Reliable technical skill
Casio is working to improve repair technical skills, product knowledge, and customer service skills (through training programs and in-housecompetitions, for example) in order to maintain customer confidence and realize the kind of service quality that customers expect.
As the company responsible for repairing Casio products, Casio Techno Co., Ltd. encourages its employees to obtain public certifications
and professional qualifications. By promoting the acquisition of a wide range of qualifications, the company is developing outstanding
employees with proficiency not only in repair skills, but also in customer service and product knowledge. Casio Techno is committed toproviding detailed high-quality service to customers. Every Casio Techno employee acquires a high degree of technical expertise,
motivated by a sincere desire to please customers and earn their confidence. By continuing to work tirelessly in this way, Casio Techno canpromise service that both reassures and delights customers.

Prompt response
Casio is taking steps to improve operations by focusing on parts procurement, the repair system, and repair technical skill, so as to shorten
repair time and return repaired products to customers as quickly as possible. As part of this effort, the company is reorganizing its repair
centers for consumer products and revising its logistics network for repaired products, in order to shorten the time it takes to get the
repaired product back in the customer's hands. Casio is also further improving its online service that allows customers to request pick-up ofdigital cameras, electronic dictionaries, and watches needing repair. The service is very handy for customers who do not have the time totake the product to a service center or retailer. Casio is actively promoting this new pick-up service to enhance customer convenience.

Reasonable service fees
Casio is striving to ensure reasonable repair fees by controlling costs through the improvement of methods for repair and partsprocurement.

53

CASIO SUSTAINABILITY REPORT 2013

Repair service of overseas
Outside Japan, a total of 728 companies, which include 8 local subsidiaries and 720 repair partner companies, carry out repairs of Casio
products worldwide.
Casio holds regular technical skill courses in each region in order to improve the acquisition of repair technical skill and to raise skill levels
to ensure that Casio customers around the world receive high-quality repair services. At the same time, Casio is working hard to continuallyassess and improve repair time, quality, and costs at each repair center.
Casio also holds regular regional conferences for service managers in each country in order to disseminate improvement activities under its
three major CS activities aimed at improving customer satisfaction worldwide. In fiscal 2013, conferences were held in Brazil, Venezuela,
Colombia, and Russia.

Latin America
Technical training course: January 2013

CASIO SUSTAINABILITY REPORT 2013

Casio Russia
Technical training course: March 2013

54

Casio's primary mission is to deliver the products desired by customers at the right time. The company isworking to strengthen its global supply chain, and to continue providing cutting-edge products without
interruption.
Approach to stable product supply
Delivering a stable supply of products to consumers is one of the most important responsibilities of a manufacturer, and is required toensure customer satisfaction and loyalty.
As part of Casio's mission to provide delight, happiness, and pleasure to customers through its innovative products, the company ispromoting the following policies.

Policies on Stable Product Supply
1. We strive to shorten production lead-time and improve planning and execution accuracy by using IT to streamline thesupply chain (procurement-production-logistics-sales-service).
2. We build good relationships with component suppliers to ensure stable procurement.
3. We maintain the flexibility needed to address various risks involved in manufacturing by:▪ building a production system with at least two production sites for each product;▪ producing multiple products at each Casio Group production site
▪ maintaining in-house production and inlining of key devices and components.

Supply network is highly responsive to changes in demand
Since sales for products such as electronic dictionaries for education (for schools, teachers and students) are concentrated in the early
spring when the Japanese school year starts, this makes accurate sales planning more difficult. On the other hand, the components at thecore of these products, such as semiconductors and display devices, have a procurement lead time that is determined by the market. Thismeans long-term planning is required.
Accordingly, Casio has taken various measures to minimize the loss of sales opportunities, and has worked to expand its market share.
One such measure is the operation of parallel supply chain management systems (SCM) at the headquarters procurement division and a
production site, in order to enhance capacity simulation speed.
Production sites carry out simulations based on sales plans provided by the sales department, and calculate the personnel and equipmentlevels needed for production, before making the necessary arrangements. The materials procurement department adjusts the procurement
quantities every week by looking at information on materials to be received and the models prioritized by the sales department. These
efforts help ensure timely production delivery.
In the case of electronic dictionaries, by using common platforms as base models, and performing primary assembly production, it ispossible to add individual model specifications, such as dictionary content, display panels, and keyboards, during secondary assembly justprior to delivery. This enables Casio to rapidly meet changes in customer demand.
In the past, all parts procurement was carried out three months in advance. However, through the use of model platforms, the lead time forfinal product specifications determination has been shortened to just two weeks in advance, which also helps minimize surplus production.
Casio responds to the competitive and rapidly changing market for digital cameras by using weekly supply chain management in alldivisions for sales, procurement and production.

55

CASIO SUSTAINABILITY REPORT 2013

Diversifying production risk and producing core components in-house
Casio maintains a stable supply of products by having each production site manufacture multiple product items, and by ensuring that two
different sites can produce any given Casio product.
The company is also increasing the internal production of components in order to protect newly created technologies and to reduce partsprocurement risk.
Production sites for individual products

Highlight
Casio's new plant in Nakhonratchasima, Thailand, is located on high ground, making it
less susceptible to floods. Casio has added the new plant to its existing major production
sites with a view to enhancing business continuity planning (BCP) and diversifying risk
through global manufacturing. Casio will continue to expand the plant’s production scale
and functions.

Casio Thailand

CASIO SUSTAINABILITY REPORT 2013

56

Casio procures various materials from a large number of suppliers in and outside Japan. In order to develop
long-term business relationships based on its Procurement Policies, Casio is working to strengthen CSR
activities across its entire supply chain, while improving measures for proper transactions.
Socially responsible procurement at Casio
Casio has established Procurement Policies in order to execute its social responsibility to conduct fair and equitable transactions
throughout the supply chain. The policies cover matters including legal compliance, respecting human rights, labor, safety, and health, aswell as environmental protection such as biodiversity preservation and risk control of chemical contents and information security. Casio
constantly improves its socially responsible procurement by obtaining the understanding and support of suppliers for the policies andbuilding strong partnerships.

Procurement Policies
Casio aims to fulfill its social responsibilities, including compliance with relevant laws and social norms, and protection of theenvironment, through fair and equitable transactions throughout the supply chain by strengthening partnership with suppliers.
1. Fair and equitable transactions
Casio carries out fair and equitable transactions by providing equal opportunities to all suppliers (and candidates) in andoutside Japan in accordance with its internally established procedures.
2. Compliance with laws and social norms
Casio's procurement activities comply with all relevant laws, social norms, standards and treaties worldwide, including theprotection of human rights, the prohibition of child labor, forced labor and discrimination, and avoiding the use of conflictminerals, and respect for freedom of association, the right to associate, and the right to collective bargaining, as well as
ensure that absolutely no contact is made with organized criminal elements. Therefore, Casio requires its suppliers to observe
the same legal and social requirements.
3. Environmental protection
Casio helps to protect the global environment through environmentally friendly procurement, which is based on the Casio
Environmental Vision and Casio's Environmental Declaration, in cooperation with suppliers.
4. Strengthening partnership with suppliers
Casio builds up relationship of trust with its suppliers through reciprocal efforts, such as merging and complementing mutualtechnological development abilities, supply chain cooperation, compliance with laws and social norms and protection of the
global environment, which will benefit both parties.
5. Policies on supplier selection and transaction continuation
Casio initiates and continues transactions with suppliers based on comprehensive evaluation criteria, which include
compliance with laws and social norms, environmental protection, proper information security, respect for intellectual property,
sound and stable corporate management, superior technological development ability, right price and quality, stable supply
capabilities and electronic transaction systems.

57

CASIO SUSTAINABILITY REPORT 2013

6. Securing right price and quality
Casio endeavors to secure right price and quality in order to provide its customers with stable supply of optimal products,
which ensures that Casio gains the full confidence of customers around the world.
7. Prohibition of personal-interest relationships
Casio does not allow any employees to have personal-interest relationships with any suppliers.

Fulfilling social responsibilities together with suppliers
In order to ensure compliance with the Procurement Policies together with its suppliers, Casio has established the Supplier Guidelines(available at link below). All of Casio's suppliers in Japan and elsewhere have agreed to these guidelines to help Casio fulfill its social
responsibilities.
Casio is also managing its supply chain more successfully by introducing a regular monitoring system that ensures that these guidelines
are properly fulfilled.

Supplier Guidelines

Disseminating supplier guidelines
Casio carries out the majority of its production outside Japan at Casio plants and manufacturing subcontractors (electronic manufacturingservices). Every year, Casio holds briefings on its Procurement Policies in Southern China.
In the past, these briefings simply involved Casio explaining its business policies to suppliers and asking them to undertake initiatives.
Starting in fiscal 2010 however, Casio is using these briefings as an opportunity for interaction, for instance, by having a selected supplierpresent its own exemplary CSR initiatives. Through joint efforts with suppliers, Casio is aiming for continued improvement in the level of
CSR performance.
Since fiscal 2011, Casio has been asking suppliers whose sites it had audited for CSR performance to present examples of their efforts toimprove CSR activities. It is proving highly effective to share case studies and know-how when addressing CSR issues.
In fiscal 2013, Casio conducted onsite inspections at nine suppliers to confirm their CSR performance in seven areas: (1) human rights andlabor conditions; (2) health and safety; (3) the environment; (4) fair transactions and ethics; (5) quality and consumer safety; (6) information
security; and (7) social contribution. Based on this, in fiscal 2013, Casio held a briefing where the best practice cases and the names of the
suppliers concerned for each of these seven areas were announced. Suppliers who made exemplary CSR improvements also madepresentations. Information about areas lagging behind in improvement measures were also announced, without singling out any particularsupplier.
In June 2009, Casio revised the Basic Business Agreement it signs with suppliers in Japan. Clauses were added to require measures suchas legal compliance, respect for human rights, and environmental protection. The new agreement is being rolled out steadily.

Briefing on Procurement Policies

Award ceremony at
the Procurement Policies briefing

Presentation of exemplary
CSR implementationand improvement by a supplier

CASIO SUSTAINABILITY REPORT 201358

Comprehensive management of CSR performance
In fiscal 2008, Casio started conducting a questionnaire survey* of principal suppliers in Japan on CSR performance in order to confirm thestatus of CSR procurement. In fiscal 2010, the survey was expanded to include suppliers in China and Thailand. Additionally, starting infiscal 2010, Casio has been evaluating suppliers in Japan based on a five-point scoring system for all 340 items in the Supply-Chain CSR
Deployment Guidebook published by the Japan Electronics and Information Technology Industries Association (JEITA), in an effort to gaina better grasp of and visualize the situation. In fiscal 2012, the yes/no format of the questionnaire for suppliers outside Japan was alsochanged to a five-point scoring system.
Based on the fiscal 2012 survey results and changes in society’s expectations, the questionnaire for suppliers in Japan was revised in fiscal
2013. Overlapping questions were eliminated and a new theme, policies for avoiding conflict minerals, was added.
The questionnaire survey is sent every year to principal suppliers in Japan and China. Responses were received from 260 out of 267
companies in Japan, and all 159 companies in China. Casio compiles and analyses the response data, and shares the results with
suppliers, along with Casio's approach to CSR procurement. The suppliers are given support to make improvements. Due to the flooding in
Thailand in 2011, the survey was temporarily suspended in that country, but will resume in fiscal 2014.
Since fiscal 2011, Casio has been conducting onsite audits of major suppliers in China and Thailand with local staff members of the CSR
promotion projects launched at sites in those countries. In fiscal 2012, the company started planning onsite inspections performed mainly
by local Casio staff, and the number of visits is increasing.
In fiscal 2013, Casio conducted onsite inspections at ten companies in China. In the second half of 2012, the CSR promotion project was
reorganized and resumed in Thailand, and one onsite inspection was performed.
In conjunction with the CSR questionnaire, in fiscal years 2012 and 2013, Casio surveyed its suppliers in Japan about their business
continuity planning (BCP) initiatives. The results revealed that many suppliers are investigating or have started taking BCP measures. This
includes preparing for a major earthquake centered in the Tokyo region, which is predicted as likely to take place sometime in the not too
distant future. Casio is working in partnership with its suppliers to secure the functioning of BCP across its entire supply chain to ensure thatthe company can meet its responsibilities in the procurement and supply of goods.
* The questionnaire was prepared in accordance with a Supplier Checklist for CSR Procurement based upon the Guidebook for Supply Chain Implementation of
CSR Procurement published by the Japan Electronics and Information Technology Industries Association (JEITA). It covered: (1) human rights and labor conditions;(2) health and safety; (3) the environment; (4) fair transactions and ethics; (5) quality and consumer safety; (6) information security; and (7) social contribution.

Fiscal 2013 Achievements

Supplier Message
All employees at CMK Corporation are continually promoting CSR activities, based on the CMKGroup’s CSR Charter.
The company supports Casio's Procurement Policies. While working to meet Casio's higher
CSR procurement standards, we are striving to become a company worthy of Casio's strong
support.
Mr. Yoshiaki Ishizaka, Deputy General Manager
East Region Sales Div.
CMK CORPORATION59

CASIO SUSTAINABILITY REPORT 2013

Avoiding any use of conflict minerals
Some minerals, such as tin, tantalum, tungsten, and gold, produced in the Democratic Republic of Congo (DRC) and neighboring Africancountries have become a source of funding for armed groups and anti-government forces carrying out atrocities. They are called conflictminerals because of their potential to promote conflict, human rights violations, and environmental destruction.
Wanting no part in human rights violations and environmental destruction, Casio’s stance is to completely avoid the use of conflict minerals.
The group will continue its efforts to avoid the use of such minerals by working closely with suppliers.
In January 2013, Casio revised its Procurement Policies and Supplier Guidelines, adding a ban on the use of conflict minerals. A question
about policies to avoid the use of conflict minerals was also added to the CSR questionnaire sent to suppliers in Japan.
Starting in fiscal 2014, Casio plans to survey its suppliers worldwide about the use of conflict minerals, utilizing the EICC & GeSI* Conflict
Minerals Reporting Template.
Casio's policy is to permit use of minerals legally mined in the DRC and neighboring countries, as long as they have no connection toconflict in the region.
* Global e-Sustainability Initiative (GeSI): An international strategic partnership to create and promote technologies and practices for economic, environmental andsocial sustainability, working with members from major information and communication technology (ICT) companies and organizations.

Subcontract Act compliance initiatives
Casio has established a Compliance Committee on Japan's Act against Delay in Payment of Subcontract Proceeds, Etc., to Subcontractors(Subcontract Act) which includes group companies, and is striving to ensure all transactions comply with the law.
In particular, employees that deal directly with suppliers and outsourcers are provided with the necessary knowledge through in-houseseminars and classes sponsored by the relevant government authorities.
In fiscal 2013, 3,429 Casio employees attended in-house seminars, and 60 people also participated in classes sponsored by the Japan Fair
Trade Commission and by the Small and Medium Enterprise Agency. This training helped to raise compliance awareness and provided
employees with the knowledge they need.
Various efforts were made to encourage understanding, such as conducting training sessions with original teaching materials prepared tosuit the unique transaction conditions of various group companies.
The Compliance Committee also obtains the latest information from government websites and email notification services, and sends theinformation directly to committee members. The news is also posted on the committee's website, and shared with the entire group.
In offices where subcontract transactions are handled, independent audits are carried out on an ongoing basis. Casio confirms that proper,
compliant transactions are executed, by inspecting the document record of the entire series of transactions from ordering to payment. The
goal is to ensure that no problems occur.
In fiscal 2011, group companies drew up their own action plans under the basic plan of the Subcontract Act Compliance Committee,
establishing courses of action for maintaining proper subcontracting transactions using the PDCA cycle. Since fiscal 2012, Casio has
encouraged the continuation of this process.
Casio will continue to promote understanding of the Subcontract Act among its employees, and work to strengthen its system for evenbetter compliance.

CASIO SUSTAINABILITY REPORT 2013

60

Casio discloses information promptly and fairly to shareholders and investors, and always strives to increase
shareholder returns.
Basic policy for shareholder returns
Casio considers the maintenance and expansion of returns for all of its shareholders an important management issue, and constantly
strives to improve its business performance and financial structure. The company's dividend policy calls for maintaining stable dividends,
and Casio determines the allocation of profit by taking into account all factors such as profit levels, financial position, the dividend payout
ratio, and future business development and forecasts.
Considering this policy, Casio paid dividends of ¥ 20 per share in fiscal 2013. This was an increase of ¥ 3 over the previous fiscal year.
Starting in fiscal 2014, Casio will also pay interim dividends, returning profits to shareholders more frequently than the year-end dividend
system used to date.

Inclusion in an SRI Index

Morningstar Socially Responsible Investment Index (MS-SRI)
Casio Computer Co., Ltd., is included in the Morningstar Socially Responsible Investment Index (MS-SRI).
Morningstar Japan selects 150 companies from among all listed companies in Japan based on their social
responsibility track records, and indexes their stock prices (April 2013).

Communication with shareholders and investors

IR events
Every quarter, Casio holds a financial results briefing for institutional investors and securities analysts on the same day that the company
announces its results. The president or the director responsible for investor relations is the main speaker at these briefings, and explains
the financial results and forecasts. Casio also holds meetings with institutional investors and analysts worldwide, while occasionallyproviding factory tours and small on-the-spot meetings for investors interested in specific business areas.

Improving IR publications
To provide IR information for shareholders and investors, the company issues an Annual Report, semiannual business reports (Japaneseonly), and quarterly Consolidated Financial Results. Casio's Investor Relations website also features these publications and other IR
information. Casio also updates its Investor Relations site in a timely fashion to reflect market changes and make the information moreaccessible and useful.

Investor Relations

61

CASIO SUSTAINABILITY REPORT 2013

Reaching out to individual shareholders and investors
Casio is carrying out various initiatives in order to deepen the understanding individual investors and shareholders have of its business. At
its General Meeting of Shareholders, the company described its main products and key businesses. On the Japanese Investor Relations
website, a section was added specifically for individual investors in an effort to make information disclosure clearer.

Breakdown of Shareholders

CASIO SUSTAINABILITY REPORT 201362

At Casio, the human resources mission is organized around two themes: contributing to the development of
the company through the growth of all employees based on their desire to always take on challenges andmake improvements; and achieving both corporate development and employee growth under optimal
conditions.
Human Rights (Respect for Human Rights, Prohibitionof Discrimination)

Global Human Resources
Casio has established a framework for thedevelopment of human resources who can

Casio's strong commitment to human rights
is spelled out in the Casio Group Code of
Conduct, which is being thoroughly
implemented throughout the group.

play a more active role than ever on theworld stage and has started putting in placevarious programs and systems toward thisend.

Building Workplaces for a Diverse Workforce

Creating Supportive Workplaces

Casio is committed to the creation ofenvironments in which all employees canwork enthusiastically and enjoy job
satisfaction, regardless of their gender,
nationality, age, or level of ability.

Casio creates work environments andsystems that enable all employees todemonstrate their full potential.

Effectively appointing and deploying employees

Promoting health and safety initiatives for employees

Casio works to maintain a healthy corporate
culture where fairness and impartiality are

Casio creates work environments andsystems that enable all employees tovalued in all promotion decisions. The
company uses a merit-driven system
combined with a performance-based

demonstrate their full potential.

approach to evaluate employees anddetermine compensation.

63

CASIO SUSTAINABILITY REPORT 2013

In addition to participating in the UN Global Compact, Casio has revised the Casio Group Code of Conduct,
carefully reconsidering content related to respect for human rights. The revised Code is being communicatedand thoroughly implemented throughout the group.
Policy concerning respect for human rights and prohibition of discrimination / expanding awarenessWith the rapidly developing globalization of the economy and society in recent years, human rights problems have become more serious,
including child labor and forced labor discovered in the corporate supply chain, as well as discrimination and disparities. Given this context,
companies are urged to meet international human rights standards and fulfill their social responsibility in terms of human rights when
conducting business.
Casio long ago spelled out its strong commitment to human rights and respect for the diversity of individuals in the Casio Group Code of
Conduct and put that commitment into practice. It recently revised the Code of Conduct, explicitly stating a commitment to uphold andrespect international norms relating to human rights, such as the Universal Declaration of Human Rights. The Code of Conduct also
stipulates specifically that Casio will not engage in any acts of discrimination based on race, creed, gender, age, social status, lineage,
nationality, ethnicity, religion, disability, gender orientation, sexual orientation, or any other discriminator, will not use or permit any form ofchild or forced labor, and will not permit acts that impair personal dignity, such as discriminatory speech or behavior, acts of violence, sexual
harassment, power harassment, privacy infringement, or slander.
In December 2010, with the commitment of its president, Casio became a signatory to the UN Global Compact, endorsing its universal
principles, such as the protection of human rights and the elimination of all forms of forced and compulsory labor, and making continuous
efforts toward their achievement.
Casio provides internal education at Casio Computer Co., Ltd., as well as group companies in and outside Japan in order to expand
awareness about respecting human rights. In 2013, Casio conducted a human rights questionnaire survey of all group companies to
identify human rights issues. It then held a human rights round table with relevant persons from within the group based on the survey
results in an attempt to ascertain the actual conditions and increase awareness about respecting all human rights. Additionally, Casio
Computer Co., Ltd. provides human rights education at training sessions given to new hires and employees before and after promotion andappointment to managerial positions.
Casio also recognizes the importance of spreading the idea of respect for human rights outside its organization together with its entire
supply chain. All suppliers have been made aware of Casio’s Supplier Guidelines, which clearly mandates respect for human rights andprohibits discrimination. In addition to requesting compliance, Casio strives to verify implementation using questionnaires and other means.

Preventing sexual harassment and power harassment
Casio has stipulated in the Casio Group Code of Conduct that it will not engage in any acts that ignore individuality, and will notcountenance sexual harassment and power harassment. The company has issued Guidelines to Prevent Sexual Harassment andestablished a hotline. A full-time hotline officer is available to respond to issues raised by telephone, fax, e-mail and postal mail,demonstrating Casio’s determination to prevent harassment and quickly address any issues which arise. Moreover, in its employment
regulations, Casio has specified that persons who commit sexual harassment or power harassment will be subject to discipline.

Establishment of employee hotline
Casio has established a special hotline on the company’s intranet for employee concerns and inquiries on corporate culture, humanrelations, pay and working conditions.

CASIO SUSTAINABILITY REPORT 2013

64

Casio is reinforcing its global expansion in all business fields, including existing and new businesses. In orderto facilitate growth of its worldwide business, Casio has been developing a global human resources strategy
based on the following two objectives:(1) Establishment of a structure for developing employees in Japan who can play an active role on the worldstage; and(2) Strengthening its human resources system, including the human resources systems at group companies
outside Japan.
Establishment of a structure for developing employees in Japan who can play an active role on the world stage
Casio is committed to accelerating the globalization of employees in Japan in terms of recruitment, placement, and development.
In the previous fiscal year, it reorganized global-oriented trainings, which existed separately until now, into the following stage-based humanresources development system.
Positioning of stage-based education

Casio implements measures such as the following at each stage in order to achieve this kind of human resources development.
Provision of local information to persons going on assignment outside Japan and development of multicultural management
skills
Casio systematically provides grade-based training to persons going on assignment outside Japan according to their mission at the locationof assignment.
In fiscal 2014, it added Executive Training for top management, Site Management Skills Training for senior management, and Multicultural
Management Skills Training and Assignment Location Situation for all persons going on assignment outside Japan.

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CASIO SUSTAINABILITY REPORT 2013

Training system before assignment outside Japan

In the Multicultural Management Skills Training, members of completely different ages and assignment locations engaged in heated debate,
revealing their enthusiasm for going on assignment outside Japan.
Opinions of persons who took the Multicultural Management Skills Training

Improvement of global business skills in candidates for assignments outside Japan (registered candidates)
Casio is registering candidates for assignments outside Japan more systematically than ever before and will put into effect systematic
education, including global aptitude checks and acquisition of necessary skills, with a view to sending candidates on assignments a few
years later.
Encouraging all employees working in Japan to adopt a global mindset
Casio encourages a global mindset, so that employees working in Japan, in addition to those working at assignments outside Japan, willconduct business with global standards in mind.

CASIO SUSTAINABILITY REPORT 201366

Strengthening human resources systems at group companies outside JapanThe strengthening of human resources systems is becoming an increasingly important issue at group companies outside Japan, which are
increasing in number and growing in size rapidly around the world with the expansion of Casio’s business outside Japan. In thisenvironment, Casio is attempting to build an integrated approach to human resources systems worldwide that reflects the shared Casio
corporate creed but also allows compensation plans to be restructured to make them suitable to each local company and takes into
considerations each country’s characteristics, values, laws, etc. Casio is also looking at the potential to build a worldwide educational
system and personnel assignment strategy in the future.

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CASIO SUSTAINABILITY REPORT 2013

Casio carries out numerous initiatives to create environments where all employees can work enthusiasticallyand enjoy job satisfaction, regardless of gender, nationality, age, or level of ability.
In fiscal 2014, Casio will step up the promotion of diversity by launching the new Diversity Project with
employee participation.
Supporting advancement of female employees
The Working Group for Female Employee Advancement launched in 2008 actively and continuously carries out a variety of measures withthe aim of supporting all female employees so that they can fully demonstrate their abilities.
Casio actively promotes ambitious and talented employees, and the number of women in senior staff positions increased from four in fiscal
2010 to 16 in fiscal 2013.
In fiscal 2013, Casio carried out activities on the main theme of supporting the career development of female employees. It interviewed anumber of female employees playing active roles in various fields and introduced them as role models on the company intranet.
Casio also adopted a mentor program with the aim of easing anxiety and supporting career development by offering advice for balancing
work and family life and for career advancement. The company has heard back from female employees that these initiatives have eased
the anxiety that they had few role models and that it is difficult to sketch a career plan.
Additionally, Casio has produced a Childbirth and Parenting Manual for women and their supervisors to help women keep working
enthusiastically while having and raising children. The manual was prepared by female working group members of diverse ages from awoman’s perspective. It covers work-life balance programs and describes those things that women and their supervisors should do at eachstage from pregnancy through childbirth to childcare. The manual is over 50 pages and can be read by all employees on the company
intranet.
Example of a role model introduction

CASIO SUSTAINABILITY REPORT 201368

Female employees in senior staff positions (Casio Computer Co., Ltd.)(FY)FY2010

Number of female employees in senior staff positions(number of managers)
Percentage of female employees in senior staff
positions (percentage of managers)

FY2011FY2012FY2013

4(1)

4(3)

13(5)

16(8)

0.4%(0.3%)

0.4%(0.9%)

1.3%(1.5%)

1.7%(2.1%)* Casio regards senior staff as professional staff and classifies them as: managers, or professionals who control an organization; andspecialists, or professionals that belong to an organization.
* A manager means a person at the department manager level or higher.
Voices of mentor program participants (mentors and mentees)
Mentors“I think that learning the skill of listening and how to be a mentor will be useful in my management duties.”“Writing a life line chart and looking back at my past turned out to be a good opportunity to reflect on my own career.”Mentees“Receiving advice on common worries dispelled my gloomy feeling.”“I imagined that working while raising children would mean working hard 24 hours a day, but now I know that I can just be myself.”“It was a good opportunity to talk about my doubts and worries about my career, and it was informal.”Childbirth and Parenting Manual

Hiring non-Japanese employees
Aiming to stimulate and internationalize the company, Casio is actively hiring foreign students studying in Japan who wish to work at Casio.
In 2013, such hires comprised approximately 20% of new fixed-term employees.
During the selection process, Casio has been making careful efforts to prevent disadvantages at the time of selection resulting frominsufficient understanding of information due to differences in language, culture, and customs. One way it does this is by holding
orientations and consultations exclusively for foreign students. Casio also provides an environment where foreign nationals can feel secure
to work for a long time after joining the company, such as by providing business Japanese training, helping with procedures to acquire visa
status, and taking care of procedures to move into a bachelors’ dormitory or company housing. At present, Casio’s non-Japaneseemployees are playing active roles while displaying their individuality in many kinds of workplaces.

69

CASIO SUSTAINABILITY REPORT 2013

Working together with persons with disabilities
Casio hires people who display creativity and have the desire to work and take on challenges, regardless of any disabilities they may have.
The company is creating workplace environments that allow every individual to display their full abilities and aptitudes.
Upon request, it provides hands-on training in the workplace before hiring in an effort to dispel anxiety about actually working there and toeliminate gaps between expectations and reality.
Casio has also adopted and uses a follow-up system for persons with disabilities throughout the group. This system is intended toconstantly aim for the most suitable environment in light of the opinions of both the workplace and persons with disabilities by conducting
periodic interviews after a person with disabilities joins the company so they are not left alone to face any anxieties or problems. Theinterviews help to quickly resolve any problems, check aptitude for work duties based on actual performance of those duties, and facilitate
the provision of care if a disability has changed with the passage of time. This also helps to relieve the anxieties of the families and former
schools of employees with disabilities. These kinds of initiatives have been commended by public institutions and featured in a DVD
produced by the Tokyo Metropolitan Government introducing superior companies that it endorses. The system has led to the resolution ofmany problems, and employees with disabilities themselves have said it is comforting to have such a system in place. Casio also invites
sign language interpreters to company events to help convey information to the hearing impaired and makes active use of job-related
assistive tools from public institutions.
Further, Casio has launched a sub-working group of the Diversity Project to advance community development for persons with disabilities.
The company aims to create an environment in which all Casio employees can work enthusiastically and enjoy job satisfaction, regardlessof level of ability. In this way, Casio actively hires people who display creativity and have the desire to work and take on challenges, andgives them a stage on which to play an active role.
Percent of workforce with disabilities
As of April 1, 2011

As of April 1, 2012

As of April 1, 2013

Casio Computer Co., Ltd.

1.93%

1.91%

1.83%

Group companies in Japan

1.80%

1.32%

1.84%

Average for consolidated group companies in Japan

1.86%

1.64%

1.84%

Encouraging the hiring of seniors / supporting the lives and employment of seniors
Casio has a Senior Employee Program to provide retirement-age employees with employment opportunities, and to effectively utilize theskills and know-how that these individuals have accumulated over the course of their careers. It has now revised this program following
amendment of the Act for Stabilization of Employment of Older Persons. Under the post-revision program, Casio offers continued
employment with reasonable treatment according to past performance and the roles and responsibilities assumed after retirement age. The
system creates workplaces where seniors can continue using their career skills and expertise within the Casio group.
Each year, Casio holds Life Planning Seminars for employees who have just reached age 53 or age 58. The seminars cover topics such as
the pension system, as well as living costs, taxes, and health after retirement. This provides participants with an awareness of these issues
while they are still working, and helps them plan their post-retirement lives. Taught by an outside instructor, the seminars also provide
financial information including details on the costs required to sustain full retirement. These learning opportunities have been well received
by participants.

CASIO SUSTAINABILITY REPORT 201370

Prioritizing local hiring and promotion at subsidiaries outside Japan
Along with the globalization of its operations, Casio is actively pursuing local hiring at its sites outside Japan. The aim is to promotemanagement that is responsive to local conditions in each country, as a truly global company. This is being done not just in manufacturing,
but also in various other fields.
Number of Casio Group employees* This includes only regular employees

Initiatives in hiring
The Casio Group Code of Conduct states that "we will respect all fundamental human rights, and will not engage in any form of
discrimination." Casio provides equal employment opportunities to anyone with the desire to work.
Casio also endorses the Japan Business Federation’s charter of hiring ethics. The company strives to avoid early hiring of undergraduate
university students to minimize any impact on their studies. It also conducts voluntary explanation meetings at universities around thecountry and holds hiring events at different times during the day and week, splitting up selection periods into four or five different times. In
this way, Casio is striving to provide hiring opportunities to as many students as possible.

Human resources data
(As of end of March 2013)

Number of employees in Japan
Casio Computer Co., Ltd.

Group companies in Japan

Total

Male

2,317

1,461

3,778（85％）

Female359

291

650（15％）

Total

2,676

1,752

4,428

(April 1, 2013)

Number of employees hired in FY 2013 in Japan
Casio Computer Co., Ltd.

Group companies in Japan

Total

Male

34

11

45(68%)

Female16

420(32%)

Total

50

15

65

71

CASIO SUSTAINABILITY REPORT 2013

(As of end of March 2013)

Average years of service in Japan
Casio Computer Co., Ltd.

Group companies in Japan

Total

Male

20.2

16.0

18.5

Female

14.2

16.7

15.3

Total

19.4

16.2

18.0

(As of end of March 2013)

Average employee age in Japan
Casio Computer Co., Ltd.

Group companies in Japan

Total

Male

46.1

46.5

46.2

Female

39.3

42.2

40.6

Total

45.2

45.8

45.4

CASIO SUSTAINABILITY REPORT 201372

Casio regards it as crucial to create workplaces where employees can work enthusiastically with job
satisfaction and in a state of physical and mental health. It has prepared a number of support programs andstrives to foster a corporate culture that accepts diverse working styles. Recognizing its initiatives to date, in2009 the Japanese Ministry of Health, Labour and Welfare granted Casio the Kurumin mark for helping tofoster the next generation. This certification recognizes Casio as a company that actively supports employees’
efforts to balance work and family life.

Kurumin mark for helping to foster the next generation
Helping employees balance work and family life
Casio has introduced programs that enable employees under restrictions caused by childbirth, parenting, and family nursing care to feel atease and to demonstrate their full potential on the job. The company has developed programs that help employees balance work and family
life, such as a shorter working hours system for childcare and nursing care and an hourly paid leave system.
Discussion meeting on work-life balance
Casio held a discussion meeting on work-life balance to correctly understand work-life balance and to understand diverse working styles
and values. The lively discussion looked at how to achieve balance between work and parenting and what can be done to spend each day
more enthusiastically.
Results of a participant questionnaire

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CASIO SUSTAINABILITY REPORT 2013

Childcare and nursing care leave programs (Casio Computer Co., Ltd.)
Number of employees taking leave(figure in parentheses is men)

PeriodFY2011Childcare leave andreturn program

Until the day before the child turns 18 months old or until the end of
the first March after the child turns one year old

Nursing care leave
program

Up to one year per family member

Shorter working hours
system for childcare andnursing care

FY2012FY2013

30(0)

34(0)

28(0)

0

3(1)

4(1)

Childcare: Until the child finishes grade three of elementary school
Nursing care: Until the reason to provide nursing care to the family
member requiring such care disappears

61(3)

66(2)

75(3)

Child nursing care leave

Up to five days per year for an employee with a child that has not
yet completed grade three of elementary school

8(1)

5(1)

16(5)

Nursing care leave

Up to five days per year for an employee with a family member in astate requiring nursing care (as mandated by law)

0

2(1)

4(2)

Hourly paid leave system
In June 2010, Casio adopted a system that permits employees to take annual paid vacation in hourly increments. The system is available toall employees and can be combined with half-day leave so that it is used effectively and flexibly.
Employee Comments
Left an hour early for lunch to renew a drivers license“Previously, one had to take a half day off in order to attend to a personal matter during the work day. Now, one can take time off on anhourly basis, which is a more efficient way to use holiday time.”
Took hours off to take her two-year-old daughter for vaccinations and to meet with daycare staff"It is handy to take time off by the hour, since I also want to save my holiday time in case my daughter gets sick."
Wanted to leave a couple of hours early to catch a ball game"A great way to break up my work routine. I felt very energized when I returned to work the next day."Rate of taking paid vacation (Casio Computer Co., Ltd.)

Rate of taking paid vacation

FY2011FY2012FY2013（H22..1〜H22.12）（H23.1〜H23.12）（H24.1〜H24.12）

67.6％

68.3％

70.9％

Other vacation and leave programs
ProgramDescription

Vacation Day Accumulation

The annual paid vacation expires in two years. However, employees can accumulate a maximum of
30 unused vacation days to carry over up to four days per year. The leave days can be used if theemployee gets sick or injured, in order to care for a family member, safe motherhood measures, orvolunteering.

Refresh Leave

This program grants five days of leave at the 10-year, 20-year, and 30-year milestones of work.

CASIO SUSTAINABILITY REPORT 201374

Initiatives to improve productivity
Casio Computer Co., Ltd., is working to reduce annual work hours, and is carrying out the "Daily Improvement: Zero Overtime Movement"with an eye to changing work styles and improving productivity. This is part of a larger work-style reform initiative that aims to achieve zero
overtime with no decline in the quality of work. The aim is to comprehensively raise the quality of work, whicn in turn will drive improvementin Casio’s business performance. Managers and supervisors use a Web-based system that enables them to track and manage the working
hours of their subordinates.
Average monthly overtime work (Casio Computer Co., Ltd., and group companies in Japan)
FY2011
Overtime hours

FY201215.08

FY2013
14.76

15.09

Communication between labor and management
Through regular communication between management and the labor union, Casio hopes to raise the awareness of employees about their
participation in the management of the company. Casio values close communication between labor and management.
At the core of this labor-management communication is the Group Workers' Labor-Management Conference, which is held four times ayear (February, May, September, and November). At these conferences, management and labor, together representing the entire group,
exchange opinions about current conditions at the company. In addition, close communication is maintained at various other levels,
including the Central Labor-Management Meeting, the Division Labor-Management Meeting, and the Sales Chapter Labor-Management
Meeting. Casio operates on a union-shop basis; as a rule, all employees except for managers are members of the union.

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CASIO SUSTAINABILITY REPORT 2013

Casio works to maintain a healthy corporate culture where fairness and impartiality are valued in all promotion
decisions. The company uses a merit-driven system combined with a performance-based approach to evaluate
employees and determine compensation.
Policy for fair evaluation and compensation
Based firmly on a foundation of fairness, Casio aims to continuously improve its human resource system in light of changes in the social
environment. Within that system, the present basic human resources policy combines a role-based system that grades individual
employees based on the extent of their roles with a performance-based approach to evaluation and compensation based mainly on
outcomes of job performance within their roles.
Additionally, the company puts a premium on the following points of view:▪ Respect of will: Grant significance to the individual's will and intentions▪ Human resources development: Create opportunities for the acquisition of knowledge and skills needed in work
▪ Significance of abilities: Grant significance to abilities demonstrated through work
▪ Right person for the right job: Reflect individual wishes in job requests▪ Priority distribution: Distribute limited management resources as efficiently as possible▪ Stable employment: Strive to create workplaces where employees can work according to their abilities
In addition to the above policy, Casio will place a premium on these points of view as it pushes ahead with innovative personnel measures.
By taking this approach, Casio aims to strike the optimal balance between the growth and revitalization of society and the expansion andgrowth of the company.
Casio’s design and application of an impartial personnel system ensures fair rating, evaluation, and compensation according to the level of
duties, regardless of academic background, years of service, or gender.
Casio feels that goal management is important in its evaluation system and so it has supervisors and their subordinates share goal
information via the intranet. The company will further develop this in the future and plans to consider horizontal disclosure in order to sharegoals among colleagues and measure synergistic effects.
The company evaluates each employee at an interview twice a year. Casio uses evaluation sheets based on goal management to notify
employees about the results of evaluations, a mechanism designed to improve transparency and ensure that evaluation of employees ishighly credible.
Human resources system overview

CASIO SUSTAINABILITY REPORT 201376

Education for fair evaluation and compensation
Casio requires managers to take evaluator training in an effort to improve their evaluation, leadership, and interviewing skills, in order tooperate its human resources system fairly and appropriately.
Additionally, all managers are evaluated by their colleagues and subordinates about once every three years. The results are fed back to
managers during training sessions to encourage continual improvement. An overview of the evaluation and compensation system is postedon the company intranet to keep all employees thoroughly informed about this system.
The company not only works with evaluators, but has also cooperated with the labor union to produce a Goal Setting and Evaluation
Interview Handbook to help deepen understanding between supervisors and their subordinates and ensure fairness in operations.

Overview of human resource development
Casio has various human resource development programs designed to develop creative employees who are eager to take on challenges
and to train professionals with early tracking into specialized fields.
Casio aims to develop professionals in the form of strategic generalists who pass on the company's corporate culture, and technicalspecialists who pass on the company's unique technology and know-how. For this purpose, based on the convictions that people growthrough their work and that the source of growth is personal motivation, Casio helps employees improve their skills by providing
environments that enable them to overcome challenges through personal determination and effort.
Accordingly, the company emphasizes on-the-job (OJT) training to improve practical skills, complemented by off-the-job (off-JT) training toprovide theoretical knowledge. In recent years, the training system has been improved to ensure even more effective, efficient skill
development via a broader choice of training courses.
Training System

Casio conducts the necessary training for all the job grades in its in-house ranking system, and the company is working constantly to
upgrade and enhance its human resource development system. As part of this system, Casio offers measures to train existing workers tomake them professionals and training for specific job grades to all eligible employees. The human resource training page on the company’s
intranet explains each system of training as well as showing comments from employees who have used the system. Casio endeavors toencourage utilization of the system and support employee education by presenting success stories and good news.

77

CASIO SUSTAINABILITY REPORT 2013

Training participants

Annual average number of hours of training

Surveys and verification relating to utilization and development of human resources
In off-the-job training, questionnaires are given to employees every time they attend a training session, and their requests and opinions areused to help make improvements in the following fiscal year and beyond. In on-the-job training, when employees register for the Career
Challenge System (described below), they can register their opinions about the system itself. Furthermore, when the company establishes
new systems, it verifies the system through prior interviews and trial runs with the aim of achieving more effective operation.
Fiscal 2013 summary and future issues
In fiscal 2013, Casio focused on the succession of management philosophy, conceptual skills, technical skills, capacity-building ofmanagers outside Japan, and capacity-building of younger employees. It also established nine new training courses, which achieved asatisfaction rate of 90%. In fiscal 2014, Casio will improve and expand its conventional training content and strengthen foundational
education for developing global human resources, which is a company-wide theme.

Main human resource development programs

Career Challenge System
This system lets employees periodically register their careers, skills, and personal challenges with the company, and serves as animportant reference for assisting managers to determine policies on developing their subordinates and future placement planning.

Career Challenge: Advanced
This program preferentially places employees who have been in their current career position for a rather long time and hope to challengethemselves to pursue work environments and careers that require new skills, for the objective of self-improvement and making further
contributions to the company, in their desired divisions, if their desires meet the needs of the new department.
This program has been gradually extended to consolidated group companies and the number of employees wishing to take the challenge
doubled over the previous year. Casio will continue facilitate revitalization within the group through this system.

CASIO SUSTAINABILITY REPORT 201378

Job Posting System
This system seeks to satisfy both the company's business needs and employees' career paths, and is a program for priority placement ofsuitable people, based on selection of candidates for jobs which the company offers. It is operated jointly with other Casio groupcompanies.

New Employee Training, Follow-up Training, Career Development Training
Training for young employees becomes a place for learning the basics of being a Casio employee, and offers opportunities for employees
to consider their own career paths, with training for new entrants as well as one-year and three-year employees.

In-house specialist seminars
Casio holds in-house specialist seminars for young employees in engineering and marketing-related positions. At the seminars,
departmental managers pass on expertise and the aspirations of the company directly by introducing case studies from Casio itself. This
raises the levels of specialist skills in the respective areas of engineering or marketing while passing on Casio’s company culture.

Skill Selective Training
The training targets all regular employees, for the objective of effectively and efficiently acquiring diverse skills required for work operations,in a training program that allows employees to select from a large variety of training courses. It also functions as an opportunity for networkbuilding within the company, as employees from different occupational categories attend the same training.

Techno PowerThis is a technology exhibition held annually for the objective of stimulating engineers, and of sharing and accumulating technology, serving
as a place for recognizing technology superiority, patentability, completeness, and other in-house advanced technology.

Advanced Technology Seminars
These are in-house seminars mainly targeting engineers, using case studies of innovators at other companies who were able to develop
revolutionary new manufacturing methods and create new businesses, for the objective of understanding advanced technology trends andof fostering a development mindset and the will to take on challenges.

Language training
The purpose of this training program is to increase employees’ language skills. The company provides diverse language training suited to
employee needs.

Intrapreneurship Program
Casio established its Intrapreneurship Program to identify and foster talented human resources who can motivate employees and develop
businesses and to quickly launch new businesses by providing an opportunity for employees to make business proposals beyond
organizational boundaries. The program allows individual employees to make their own business proposals directly to top management.
Those employees whose proposals are approved as promising themes become the project leaders, and then work to realize the goals they
proposed. So far 96 proposals have been made, some of which led to business development. Casio intends to make use of this program as
an ongoing business proposal tool in the future.

Right person for the right job
The Career Challenge System, Career Challenge: Advanced System, and Job Posting System are offered every year, and the company
strives to place the right people in the right jobs by valuing employees' intentions. Additionally, career interviews are conducted with those
who desire one and support provided as appropriate when employees consider their career direction. Casio also makes its intranet anddatabase available to the managers of each department to allow them to conduct comprehensive assessment of the human resource
development information on their subordinates, which they then utilize for training within the department.

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CASIO SUSTAINABILITY REPORT 2013

Each and every employee must be able to work safely and in good health in order to perform at his or her fullpotential. Based on various laws and work regulations such as Japan’s Industrial Safety and Health Act, Casio
makes group-wide efforts to create workplace environments where all employees can work with peace of mind,
in order to maintain and enhance the health of employees and prevent occupational injuries or theirreoccurrence.Group companies outside Japan comply with their local laws and regulations and also
implement similar measures.
Occupational health and safety activities
Casio has established Occupational Safety and Health Committees in all of its business locations. The committees independently design
and implement policies tailored to each workplace, doing all they can to keep employees physically and mentally healthy and to ensure
occupational safety. Committee activities are reported to employees via the intranet. Casio also runs campaigns to raise employee
awareness about occupational safety and health.

Initiatives for managing and promoting employee health
Casio goes beyond employee health management. It also seeks, by taking active measures topromote better health, to improve employee motivation and raise productivity.
Regular health checks
Employees receive regular health checks that are more thorough than legally mandated, in order tomaintain and enhance their health and to help prevent lifestyle-related diseases. Nearly 100% of
employees come for the health checks every year.
Healthy menu
Initiatives to counter lifestyle-related diseases
In the effort to prevent lifestyle-related illnesses, Casio, together with the Casio Health Insurance Association, is promoting initiatives that
focus on exercise and healthy eating. From September to November and from March to May every year, Casio holds a Walking Campaign
at sites across Japan to encourage the habit of getting moderate exercise. In fiscal 2013, 3,477 people participated in the campaign.
Participants can check their progress and ranking on a special website. The employee cafeterias provide healthy menu choices featuring abalance of calories and nutrition. Wellness Fairs are also held at all Casio cafeterias.
Activities to raise employee awareness of healthAs a means of raising employee awareness of health, Casio held health classes on the themes of “hints for making healthy choices wheneating out” and “facts about sleep apnea syndrome” at 14 worksites, and 272 employees took part.
＜Did you understand the content of the seminar?＞

CASIO SUSTAINABILITY REPORT 201380

＜Voices of participants＞
Hints for making healthy choices when eating out“I learned something about food balance.”“My eating habits were focused on dieting, but now I want to reconsider them based on the food balance guide.”
Facts about sleep apnea syndrome“Now I know that there is snoring that could be dangerous and snoring that is harmless.”“I learned that there is a connection between sleep disorders and lifestyle-related diseases.”

Initiative to prevent working long hours
Casio is carrying out an initiative to prevent the damaging health effects to the brain or heart which can be caused by accumulated fatigue
due to long working hours. In order to ensure proper work schedules, all employees that work 80 hours or more of overtime in a monthmust be interviewed by an industrial physician. The physician then checks the employee's health condition, and provides the person withadvice and guidance. In this way, Casio is working to prevent health problems from overwork, and to ensure employees observe
appropriate working hours.

Mental health care initiatives
Casio has established a mental health education system to support the mental health of its employees.
As part of this system, Casio Computer Co., Ltd., has initiated an e-Learning Program, a Self-Checkup, and a Stress Test by Organization
for all its employees. A separate e-Learning Program and a Program for Managers have also been created for those in leadership
positions. All of these programs are designed to improve awareness of mental health issues.
In addition, Casio has an in-house mental health physician and an external Physical and Mental Health Hotline in place to offer counselingin and outside the company.
Casio has been steadily establishing the same kind of support system for group companies in Japan, in order to ensure that employees areable to work with vigor and satisfaction.

Quit smoking campaign
Smoking is prohibited on the premises of all group companies in Japan and also prohibited during working hours, whether in or outside thecompany. Since fiscal 2011, Casio and its Health Insurance Association have been cooperating in the implementation of a practical Quit
Smoking Encouragement Program that provides smoking-cessation aids. Smoking rates have dropped to 10% at sites where the program
has been implemented, helping making progress with smoking cessation throughout the Group.

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CASIO SUSTAINABILITY REPORT 2013

Preventing occupational accidents
Casio is committed to the goal of zero occupational injuries and operates regular safety
programs with the aim of maintaining an accident-free record at all Casio work sites. In
addition, each site and group company conducts fire and disaster prevention/evacuation drills.

Disaster prevention drill at the head office
Occupational injuries at Casio Computer Co., Ltd. (in the last five years)(FY)

Injury frequency rate*1

Injury severity rate*2

Casio

Manufacturers

Casio

Manufacturers

FY2009(Jan.−Dec. 2008)

0.51

1.12

0.005

0.100

FY2010(Jan.−Dec. 2009)

0.19

0.99

0.001

0.080

FY2011(Jan.−Dec. 2010)

0.20

0.98

0.001

0.090

FY2012(Jan.−Dec. 2011)

0.00

1.05

0.000

0.080

FY2013(Jan.−Dec. 2012)

0.00

1.00

0.001

0.100

*1 Number of deaths and injuries, per 1 million actual cumulative working hours, resulting from occupational accidents.
*2 Work days lost per 1,000 actual cumulative working hours; indicates accident severity* The term "occupational injuries" here includes injuries or illnesses (requiring at least 1 day off work) and deaths of workers in connection with the performance of
their jobs.

Initiatives for lifesaving activities by employees
Casio has placed automated external defibrillators (AEDs),
which are used in cardiopulmonary resuscitation (CPR)
during a cardiac arrest, in all its facilities nationwide.
Additionally, the company provides lifesaving classes andsupports initiatives for lifesaving activities by employees, inorder to be prepared for any eventuality.
So far, AEDs at Casio facilities have been used three times
to save the lives of people who had a heart attack, and ineach case the person fully recovered.

Example commendations

CASIO SUSTAINABILITY REPORT 201382

Striving to be a model corporate citizen, Casio makes the most of its unique know-how and management
resources to fulfill its various social responsibilities.
Philosophy on Social Contribution
Casio’s social contribution initiatives aim to help build a healthy, spiritually rich society. The
five priority areas are education of the next generation, study and research, environmental
conservation, community service, and culture and arts.
Casio takes a proactive approach to these initiatives, seeking to communicate with various
stakeholders in order to determine how it can be most helpful as a good corporate citizen. In
this process, Casio seeks to make innovative social contributions, leveraging its uniqueexpertise and management resources as well as the broad range of knowledge andexperience possessed by its employees.
Going forward, Casio will continue to provide assistance to people suffering in the aftermathof the Great East Japan Earthquake. Casio also plans to make sure that its social
contribution initiatives target global challenges.

Raising up the next generation

Factory tours, classes in the company, and school visits
Casio’s business itself provides a diverse array of products used in educational settings, such as calculators and electronic dictionaries. In
2007, hoping to make a broader and more profound contribution to education, Casio started an original educational program, primarily forelementary school students, which includes school visits and classes offered at the Hachioji R&D Center.
The school visit program is roughly divided into a three sections, on “connectedness, creativity andemotional growth,” “connection with life,” and “today’s world.” The first section seeks to make children
aware of the value of life by facilitating dialogue among them. The second section of the program, on
connection with life, seeks to give children opportunities to feel a connection with life and experienceliving through the senses, by using equipment to listen to the beating of the heart. The final segment,
on today’s world, provides a forum for children to share and discuss their ideas about the global
environment that supports human life and on the various problems children face around the world.
This helps to encourage awareness and action on such issues as life, peace, poverty, and theenvironment.

83

School visit

CASIO SUSTAINABILITY REPORT 2013

The classes offered at the Hachioji R&D Center, one of the Casio Group’s most advanced
eco-friendly business sites, focus mostly on environmental initiatives. The facilities tour at the Hachioji
R&D Center is designed to raise children’s awareness about protecting the global environment by
allowing them to experience familiar environmental efforts such as energy conservation and sorting of
garbage, but in a corporate setting, and also to learn about environmentally friendly producttechnology by taking apart and then reassembling a calculator.
* For more information on Casio school visits, see “Class on Life” in the Highlight section.

Thermal storage tank Less
expensive nighttime poweris used to chill waterin the tank, which is thenutilized to cool the officeduring the day

Rooftop garden

Participation in Science Fairs
Casio set up booths at several high school science fairs, enabling students to discover andexperience science, the mystery of natural phenomena, and the fun of product creation. On August
11, 2012, Casio exhibited at Science Square in Munakata, Fukuoka, followed by Science Square in
Urayasu, Chiba, on November 23. On December 1, Casio went to Dream Science in Shimizu,
Shizuoka. The Casio booth featured a corner where students could capture the moment a waterballoon breaks, using a digital camera with high-speed movie technology. The students’ eyes lit up
when they saw the image capturing the moment when the balloon’s rubber exterior retracted
revealing a balloon-shaped blob of water floating in mid-air.

Bursting water balloon captured
with the ZR1000 High Speed
Exilim digital camera

Educational Initiatives at Casio (Shanghai) Co., Ltd.
Teaming Up with China’s Teaching Materials Institute on an Experimental Education Program
Casio (Shanghai) Co., Ltd. signed a three-year partnership agreement with the Teaching Materials
Institute of China’s Ministry of Education, for an experimental education program. The company will
provide electronic dictionaries, graphing calculators, digital pianos, and projectors to 21 well-known
foreign-language schools in China, and carry out an experimental teaching program. The
educational effectiveness of these schools is expected to increase as a result.
Signing ceremony in Beijing

CASIO SUSTAINABILITY REPORT 201384

CASIO Education Scholarship Foundation
Casio (Shanghai) Co., Ltd., set up the CASIO Scholarship Foundation at Peking University, Shanghai
International Studies University, Fudan University, East China University of Politics and Law, Beijing
Foreign Studies University, Tianjin Foreign Studies University, and East China Normal University. The
foundation provides scholarships for outstanding students and teachers who have produced highquality research.
Through the establishment of the scholarship foundation, Casio aims to support the long-term
development of these universities, which have a key role as institutions for the development of humanresources.
Looking to the future, Casio will provide support for scholarship across a diverse array of subject areas including languages, international
finance and trade, international business administration, the mass media, law, and international education as it contributes to thedevelopment and revitalization of academic research.
Participation in Japanese Studies Master’s Thesis Contest in China
Since fiscal 2009, Casio (Shanghai) Co., Ltd., has been participating in China’s only JapaneseStudies master’s thesis contest, held jointly by the Japanese Language Subcommittee of the ForeignLanguage Guidance Committee of China’s Education College, the China Japanese Education
Association, and the Beijing Center for Japanese Studies.
The contest is held to promote interchange between Chinese universities, stimulate research in thefield of Japanese Studies in China, and help nurture outstanding scholars in the field of JapaneseStudies. As a manufacturer of electronic dictionaries, Casio gives active support to these efforts, andthe contest is held under the name of the “Casio Cup.”

Study and Research

Support for the Casio Science Promotion Foundation
Casio is contributing to the development of science and technology by supporting the Casio Science Promotion Foundation.

About the Foundation
The Casio Science Promotion Foundation was established in 1982 by the four Kashio
brothers and the former chairman, Shigeru Kashio.
The Foundation provides research grants with the principle objective of fostering
pioneering and creative research in the early stages by young researchers who arepersevering with challenging research on limited funding. This is based on thephilosophy that advanced R&D should be promoted in various fields, in order to fulfill
the Foundation’s mission of helping Japan contribute to the world as a nation ofadvanced technology.

The 30th grant presentation ceremony (fiscal

The Foundation provides grants in a wide range of scientific fields−from electronic and2013)

mechanical engineering, to natural sciences related to health, to energy saving−as wellas in the cultural sciences including human resources development and humanbehavior.
Over the last 30 years, the Foundation has provided a total of about ¥1,431.14 million
in 1,129 grants.

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CASIO SUSTAINABILITY REPORT 2013

Grants in fiscal 2013
In addition to its 21 basic categories in 5 fields, in fiscal 2013 the Foundation established a new special topics considered to be important
based on recent social trends: New technology research that could form the core of the next industrial revolution.
After asking 178 universities to submit research topic proposals, 248 proposals were received from 97 universities. Based on a rigorous
selection process, a total of 50 million yen in grants was awarded to 38 different proposals.
Most of the grant recipients are in their thirties or forties, and many young researchers representing the promise of the next generation
attended the grant presentation ceremony held in December 2012.
Special topic

3 grants¥15 million

Group A (Electronics and Mechanical Engineering)Group B (Medicine and Physiology)
Group C (Humanities)

21 grants
8 grants
6 grants¥21 million¥8 million¥6 million

Grants from the Casio Science Promotion Foundation

Message from a grant recipient
I would like to express gratitude to the Casio Science Foundation for the grant I received. I
am thankful that my topic of a "next-generation transparent display based on squid biology"
was recognized, despite it being a very challenging research project in the early stages.
These days I am working hard studying the world’s smallest squid, "Himeika" (Idiosepius).
My aim is to create next-generation technology from biomimetics research, and produce thefirst original technology of its kind in Japan. I look forward to your guidance and support in
the future.

Assistant Professor Shingo Maegawa,
Biological and Cognitive
Processing, Intelligence Scienceand Technology Department,
Graduate School of Informatics,
Kyoto University

CASIO SUSTAINABILITY REPORT 201386

Environmental Conservation

Supporting the Dolphin & Whale Eco-Research Network
Since the Fourth International Dolphin and Whale Conference held in Japan in 1994, Casio has beenoffering special G-SHOCK and Baby-G models to support the protection of these wondrous animals.
Part of the proceeds from the sales of these watches is donated to the International Cetacean
Education Research Center (ICERC) of Japan*1. In this way, Casio has been supporting worldwide
education and research activities relating to dolphins and whales.
In fiscal 2013, during which the 18th International Dolphin and Whale Conference was held, Casio
released two new watch models, and donated part of the proceeds from the sales of these models to
ICERC of Japan.
*1 International Cetacean Education Research Center (ICERC) of JapanFounded in 1991, this non-profit organization undertakes activities to convey the wonder of dolphins, whales, andnature. Participants follow the three steps of learning, encountering, and caring, in order to help protect dolphins,
whales and the natural environment.

G-SHOCK and Baby-G watches
help support the International
Dolphin & Whale Eco-Research
Network project

Tree planting events
Casio Electronics (Shenzhen) Co., Ltd., has been participating in tree planting events for eight years
with the aim of mutual harmony and benefit between the global environment and the local
community.
In March 2013, 40 employees participated in the tree planting event, which was co-sponsored by theShenzhen Urban Management Bureau and the Shenzhen Green Foundation. The event helped thecompany build even better relationships with community residents and heightened solidarity among
employees.

Tree planting events

On the same day, eco-friendly reusable bags were distributed to local residents, in order to help
raise environmental awareness. Employees will continue to actively participate in these kinds ofevents in the future.

Handing out eco-friendly bags

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CASIO SUSTAINABILITY REPORT 2013

Local community initiatives

Establishment of Casio Technology Course and Acceptance of Trainees
Casio Electronic Technology (Zhongshan) Co., Ltd., which manufactures Casio electronic
dictionaries, musical instruments and watches, established a Casio Technology Course through anagreement with a manufacturing technical school in Hunan province in 2009 and a municipal
vocational school in Guangxi province in 2011. The purpose of the courses is to train engineers andtechnicians in a developing region of China’s interior, and to give students who wish to work at Casioan opportunity to join the company.
A three-month internship is provided to interested candidates. As of March 2012, 490 interns fromthe manufacturing technical school in Hunan, and as of September, 280 interns from the municipal

After the award ceremony

vocational school in Guangxi had been accepted. The technical level of the interns is increasing
each year, and awards are presented to the most outstanding interns.
Looking ahead, Casio hopes to further expand training of human resources utilizing the Casio
Technology Course.

Interns

Support for Cherry Marathon in Higashine City
Yamagata Casio has been supporting the Cherry Marathon in Higashine City since 2004. The
company’s intention is to become an enterprise that is appreciated by the local residents not only for
its corporate activities, but also for its contribution to the local community and Higashine City.
At the eleventh annual marathon held in 2012, Yamagata Casio provided prizes as a corporate
sponsor and set up a sales booth. About 75 Yamagata Casio employees also participated in theevent as runners, cheering squad members, and route volunteers.

Cherry Marathon in Higashine City

In order to forge even deeper relationships of cooperation and trust with local residents, thecompany will continue to actively promote this kind of community contribution activity.

Yamagata Casio cheering squad

Culture and the arts
By sponsoring symphony orchestras and cultural facilities, Casio provides people with opportunities to feel delight and deep emotion andpromotes the development of culture and the arts.
・Sponsorship of the NHK Symphony Orchestra
・Sponsorship of the Tokyo Philharmonic Orchestra
・Sponsorship of the Maison de la culture du Japon á Paris (Institute of Japanese Culture in Paris), and more

CASIO SUSTAINABILITY REPORT 201388

OtherProduct disassembly and separation work contracted to a welfare workspace
Aiming to be a company that is good for people and environmentally friendly, Casio Business
Service Co., Ltd., contracts disassembly and separation work of Casio products to a welfare
workspace operated by a social welfare corporation as part of its recycling initiatives in productdisposal. In recent years, the workspace has been mainly involved in the disassembly of label printercartridges.
At the welfare workspace, which enrolls persons with intellectual challenges and physical disabilities,
most of the work is light work such as making bags and presentation boxes and folding leaflets. The
workers have rated the work contracted by Casio, which handles a great variety of products, as
giving them a high sense of fulfillment.

Workspace operations

As part of its CSR initiatives, Casio Business Service will continue contracting out this work to help support the independence of workers.

Volunteering
Participating in the Ecocap Movement
Since fiscal 2009, Casio Techno Co., Ltd., Casio Information Systems Co., Ltd., and Casio Business Service Co., Ltd., have led the Casio
Group in its participation in the Ecocap Movement, which helps provide polio vaccinations to children in developing countries through thecollection and donation of PET bottle caps.Collection boxes are placed at principal locations and all employees are encouraged toparticipate.
This movement is operated by the Ecocap Movement NPO. Every 800 caps collected is turned into 20 yen, which covers the cost of one
polio vaccination.
Casio is determined to continue producing solid results through the full efforts of its employees.

Conducting volunteer community cleanups
The Casio Group conducts regular community cleanups around company facilities through the volunteer efforts of employees at businesssites and plants worldwide. The group will continue these cleanups in order to contribute to the local community.

Casio Computer Co., Ltd.

Casio Electronic

Hamura R&D Center

Manufacturing Co., Ltd.

Casio Electronics (Shenzhen) Co., Ltd.,89

CASIO SUSTAINABILITY REPORT 2013

Assistance for Disaster Victims
When a major natural disaster strikes, Casio provides relief to disaster victims, as well as support for rapid post-disaster reconstruction.
●Supporting Victims of the Great East Japan Earthquake
School Visits
Casio visited Iwakiri Junior High School in Sendai, Miyagi, and delivered a session of the “Class on Life” to the students. Afterwards, they
provided the following feedback: "I was reminded of the importance of life," "From now on I will be thankful for the bonds I have withothers, and live with a positive outlook," and "The Class on Life made me want to live my life while fully appreciating my mother, family,
friends, and teachers."

Disaster Zone Volunteers
As part of new employee training, on April 12, 2013, a total of 60 newly hired employees from
Casio Computer Co., Ltd. and Yamagata Casio participated in recovery support activities in thedevastated agricultural area of Wakabayashi-ku, Sendai. This area bordering the Pacific is mainly
farmland, and had about 800 homes before the earthquake. Most of the houses were washedaway by the tsunami, and much of the farmland is no longer usable. The volunteer employees
helped to remove rocks and other debris brought in by the tsunami. However, after sitting
untouched for two years, the soil was very hard, making it difficult to even put a spade into it.
Therefore, only a small part of this extensive farmland could be cleared, and the volunteers
became keenly aware of how many more people it will take to complete the recovery.

Removing rocks and debris fromfarmland

Better Security for Temporary Housing Residents
In cooperation with the Tsumugi Project, working to overcome challenges in the disaster region,
Casio Techno Co., Ltd. volunteered to improve security for temporary housing residents. The
company installed surveillance cameras with infrared night vision in the parking lot of the
Yamamagoe emergency housing area in Ofunato, Iwate.

Installation work
Special G-SHOCK Watch to Support Earthquake Reconstruction
Casio developed and released a special G-SHOCK in collaboration with the "Love" Power ofFashion* project, which uses fashion to support industry and employment in the region stricken by
the Great East Japan Earthquake.
Part of the proceeds from this G-SHOCK watch was donated to the project.
*"LOVE" POWER OF FASHION
This project involves 8 select shops and 20 well-known designers in and outside Japan who allshare the desire to promote reconstruction in Japan through fashion. Products which they design
or plan are manufactured at plants in the disaster region and sold at select shops across Japan,
thereby helping to generate employment and support industry in the devastated area.

DW-5600LP-1JR

CASIO SUSTAINABILITY REPORT 201390

Supporting the Ishinomaki Orthodox Church Rescue Project
Casio provided four projectors to the Ishinomaki Orthodox Church Rescue Project, sponsored by
the Project of Route 45 (PR45). The aim is to help restore cultural heritage buildings in Ishinomaki,
Miyagi, devastated by the Great East Japan Earthquake and Tsunami. Built in 1880, and locatedon the bank of the Kitakami River, which flows through the city, the Ishinomaki Saint John the
Apostle Orthodox Church is Japan’s oldest surviving wooden church, and is a designated culturalproperty of Ishinomaki. During a Light Projection Ceremony held from April 11 to May 11, 2012, thevoices of a church choir were digitally converted into a light show projected onto the building.

Light Projection Ceremony
Donation to Tsunami Orphans
In fiscal 2013, Casio made another donation (¥2 million) to the Ashinaga Great East Japan Earthquake & Tsunami Orphans FundraisingCampaign. Ashinaga is a charity that promotes educational and emotional support for orphans worldwide. Casio will continue to donate to
the campaign in the future.

●Support for Victims of the Sichuan Earthquake
On April 20, 2012, a major earthquake struck the Chinese province of Sichuan. Casio made a donation to the One Foundation for
500,000 yuan (about ¥800 million), which was used to assist victims and reconstruction in the disaster area.

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In April 2012, Casio established the Casio Environmental Vision 2050, a long-term environmental management
policy with a target year of 2050. At the same time, the company also issued the Casio Environmental
Declaration 2020, which is its medium-term action guideline. Casio’s determination to become a leading
environmental company is demonstrated by its commitment to visionary global initiatives to help build a moresustainable world.
Environmental Executive Message
Casio’s goal is to help build a more sustainable world while contributing to the creation of newmarkets and cultural phenomenon by developing compact, lightweight, slim, and energyefficient products.
Since March 2012, Casio has been pursuing its objectives for environmental management under the
Casio Environmental Vision 2050, which has a target year of 2050 as the title suggests.
Moreover, Casio has produced an action program with a target year of 2020 in the Casio
Environmental Declaration 2020, which was also launched in March 2012.
The three priorities for Casio environmental management reflected in the Casio Environmental Vision
2050 and the Casio Environmental Declaration 2020 are “realizing a low-carbon society,” “building a
recycling society,” and “living in harmony with nature and preserving biodiversity.”

Yukio Kashio
Executive Vice President

Realizing a low-carbon society
The December 2012 general elections for the House of Representatives in Japan resulted in a change of government from the Democratic
Party of Japan (DPJ) to the Liberal Democratic Party (LDP), and Japan’s Basic Energy Plan is now being drafted. As part of this, thecurrent government will start from scratch in its review, completely reconsidering what the DPJ administration had proposed, that 15% ofJapan’s energy come from nuclear power. Once the Basic Energy Plan is launched, the next step will be drafting Japan’s new targets for
reduction of greenhouse gas emissions ahead of COP19 at the end of the year.
Meanwhile, as part of an effort to reduce greenhouse gas emissions starting in 2013, Keidanren (Japan Business Federation) decided tolaunch its new Commitment to a Low Carbon Society , which goes a step beyond its Voluntary Action Plan on the Environment effective
through 2012 and includes penalties for failure to achieve targets (the target for the electrical and electronics industries is an annual
reduction in per-unit energy consumption of 1%). Yamagata Casio Co., Ltd., Casio Electronic Manufacturing Co., Ltd. and the Hamura R&D
Center of Casio Computer Co., Ltd. will participate in Keidanren’s plan. It will be necessary to reduce per-unit energy consumption by anannual average of 1% until 2020, and Casio is actively pursuing initiatives. Moreover, in terms of products that contribute to saving energy
during use, it has been decided to calculate the contribution from page printers as the applicable item for Casio. Casio is taking steps
towards the establishment and disclosure of calculation methods in line with trends. The companies are also taking measures to establish acalculation method and provide disclosure in these areas while staying in step with carbon footprint best practices.

CASIO SUSTAINABILITY REPORT 201392

Building a recycling society
Thus far, Casio has recycled personal computers and rechargeable batteries based on Japan’s Act on the Promotion of Effective Utilizationof Resources and made voluntary efforts to collect page printer toner and drum sets and NAME LAND cartridges. Moreover, the Small
Electronic Appliance Recycling Program became law this fiscal year, mandating that rare and precious metals be reclaimed. Manufacturers
are responsible for making products easier to disassemble and are expected to use recycled materials. Almost all of Casio’s consumer
products will be subject to the program as small appliances. In order to respond to the program, Casio conducted interviews previously witha number of recycling companies to compile requirements relating to the recycling process for small appliances ranging from disassembly
to reutilization, informed them about its efforts in the product development and design process and implemented improvement measures.
Full-scale collection by municipalities and stores will commence in fall 2013, and Casio plans to analyze data from these sources and makeefforts to upgrade its programs in order to increase reutilization rates.

Living in harmony with nature and preserving biodiversity
In March 2011, Casio issued the Casio Group Biodiversity Guidelines. As part of the guidelines, Casio has established a target for
implementing biodiversity impact assessments relating to its operations and the locations of its offices and plants. Based on this, Casio
commenced a pilot environmental impact study on “paper” last fiscal year. “Paper” uses wood as a raw material, which is not problematicwhen raw materials are sourced from wood from properly managed forest resources and recycled paper. Casio will contribute tobiodiversity by confirming that the instruction manuals for Casio products and catalogues as well as the various paper products used in
offices pose no problems for the preservation of biodiversity. Casio will continue to expand the scope of its studies and action themes in the
future.

Conclusion
The environmental trends that surround Casio are broad-reaching, and it is important for Casio to implement its own unique environmental
management strategy. We will strive to contribute to the environment while also strengthening the Casio brand by creating products that arecompact, lightweight, slim and energy efficient, and which help to realize a paperless society. Moreover, global-scale environmental
regulations are becoming increasingly stringent. This is obviously true for products, but it is also the case for regulations on recycling andenergy at offices, as well. Casio will continue to pursue the creation and strengthening of systems for compliance across its global
business.

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New Environmental Management Initiatives and Policies

Starting in fiscal 2014, Casio will implement environmental management with three main priorities, including the new goal of “building a
recycling society,”with an initial target year of fiscal 2016, based on the Casio Environmental Vision 2050 and the Casio Environmental
Declaration 2020.
Under the priority of “realizing a low-carbon society,” Casio will register targets with Keidanren’s Commitment to a Low Carbon Society andwith the electrical and electronics industries and take action to verify Scope 3 emissions (indirect CO2 emissions) and assess its total
carbon footprint in fiscal 2014. In fiscal 2015, it will steadily promote its plan for the Commitment to a Low Carbon Society as well as
expanding the range of its Scope 3 assessments. Then, in fiscal 2016 Casio will draft policies for its goal of becoming carbon neutral.
In the area of “building a recycling society,” Casio will implement programs to comply with Japan’s new Small Electronic Appliance
Recycling Act starting in fiscal 2014, while also seeking to expand its portfolio of paperless products beyond electronic dictionaries andprojectors. In fiscal 2015, Casio will introduce an offset index for contributions to reductions from products while in fiscal 2016 it will takeaction to address its water footprint and seek to establish further new environmental businesses.
In relation to “living in harmony with nature and preserving biodiversity,”Casio will conduct a pilot study of its impact on biodiversity in fiscal
2014 based on the Casio Group Biodiversity Guidelines, and it will draft measures for procurement in fiscal 2015. In fiscal 2016, based onprogress, Casio will consider and implement policies for reducing its impact on biodiversity, commencing with key measures. Through these
initiatives, Casio will actively seek to build a more sustainable world while strengthening its position as an environmentally advanced
company.

CASIO SUSTAINABILITY REPORT 201394

Casio’s fiscal 2014 environmental management policy for the realization of a sustainable society
Business endeavors and product contributions aimed at establishing Casio as an environmentally advanced company
1. Building a low-carbon society
Continue with thorough energy-saving measures in response to environmental changes after the Great East Japan
Earthquake
Register Casio Group targets for the Low-Carbon Society Action Plan of the electric and electronic industries
Continue considering adoption of renewable energy (solar panels) pilot
Establish and initiate policies for ascertaining Scope 3
Adopt carbon footprint labeling
2. Building a recycling-based society
Green Star product development: Strengthen technology for making products compact, lightweight, slim, and energy
efficient
Expand paperless product lineups beyond electronic dictionaries and projectors
Address the Small Home Appliance Recycling Law
3. Living in harmony with nature and preserving biodiversity
Initiate an impact study, and determine the direction of activities for preserving biodiversity, based on guidelines for
the Casio Group
4. Plan and promote strategy for improving environmental management and respond to society’s requests
Identify issues and plan and implement measures based on careful examination of DJSI/CDP/Nikkei Environmental
Management Ranking
Devise and implement measures to improve environmental reporting, environmental management promotion
system, and resource recycling

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CASIO SUSTAINABILITY REPORT 2013

Casio Environmental Vision 2050
With a target year of 2050, the Casio Group will create and implement its own visionary initiatives to promote the sustainable use ofenergy and resources and facilitate the healthy coexistence of all living things, the planet's greatest assets.
Casio’s aim is to become a leading environmental company that contributes not only to a sound and sustainable global environment
but also to the spiritual richness of people’s lives. Casio’s unique way of achieving this is by creating new value and lifestylepossibilities that give rise to markets and cultural phenomena never seen before.
To become a leading environmental company, Casio will apply its spirit of going from “0” to “1,” or creating “something” from“nothing,” to develop unique environmental initiatives and create products and services that make the most of its innovative ideas
and leading technologies, focusing in particular on the following areas:
・Realizing a low-carbon society
・Building a recycling society
・Living in harmony with nature

Casio Environmental Declaration 2020

*Action guidelines for 2020*
1. Realizing a low-carbon society
The Casio Group will provide products and services that make an even greater contribution to the reduction and absorption of CO2
emissions. In addition to expanding products and services that use energy sources that are friendly to people and the planet,
including solar, wind, and hydro power, Casio will incorporate these renewable energy sources into its own business operations.

2. Building a recycling society
The Casio Group intends to further enhance resource productivity through the efficient use of water and other precious resources ofthe planet, including the reuse of resources and the utilization of alternate materials.

3. Living in harmony with nature
The Casio Group is promoting awareness of the need to take care of the planet through biodiversity preservation activities, whileworking to achieve harmony between business activities and the cycles of nature.

CASIO SUSTAINABILITY REPORT 2013

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Positioning of the Casio Green Star Plan
The Casio Green Star Plan is the title of the Casio group’s environmental action
guidelines formulated based on the Casio Green Star concept under the Casio
Environmental Vision 2050 and the Casio Environmental Declaration 2020. The Casio
Environmental Action Plan sets numerical targets and implementation deadlines basedon the Casio Green Star Plan.

Environmental Action Plan (Targets and Performance)

Casio Green Star Concept
The Casio Green Star concept establishes high numerical targets for each stage of the product lifecycle including design, procurement,
manufacturing, packaging, logistics and recycling, to promote environmental action.
Moreover, Casio will continue to manage each of these stages across its circular platform for environmental management for the entire
lifecycle. New Green Star products will be created through these activities.
Image: The Casio Green Star Concept

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Objectives, Environmental Management Guidelines and Specific Details for Each Lifecycle Stage● Green Star Design
Area

Policies

Next-generation environmental
technology

1．Pursuing development ofenvironmental technology

1-1．Develop technology for next-generation, energy–saving
devices
1-2．Develop alternative materials technology for rare metals, etc.

Next-generation eco-products
and services

2．Planning and developing
next-generation Green Star
products

2-1．Plan and develop next-generation Green Star products
2-2．Be conscious of 100% reutilization in planning and developing
products with top class resource productivity and consciousness

New businesses

3．Creating environmental
businesses

3-1．Take initiatives in research and development of new energy(renewable energy)

Energy conservation

4．Developing products withlow power consumption

4-1．Develop products with best energy consumption efficiency
compared to competitors’ products in same category

Resource conservation

5．Creating compact, slim,
lightweight products withstandardized components anddurability

5-1．Promote development of the most compact, lightweight
products compared to competitors’ products in the same category
without compromising function and operability

Environmental labels

6．Promoting acquisition ofType I, II and III environmental
labels6-1．Work to develop Green Star products
6-2．Aim to expand acquisition of Type I and Type III
environmental labels

7．Increasing the usage rate ofplant-derived resources(non-fossil materials)

7-1．Increase the usage rate of green plastic (biodegradable
plastic)
7-2．Consider introduction of bioplastic

8．Promoting reduce, reuse,recycle design

8-1．Aim to formulate and adopt 3R design standards

Safety9．Prohibiting and reducing useof specified toxic substances inpurchased goods (finishedgoods, components, materials,
paint, ink)

9-1．Consider vinyl chloride-less and look into introducing
alternative materials

Product performance

10．Evaluating productperformance data and indirect
CO2 emissions volume (Scope3)

10-1．Expand scope of collection for product environmental
performance data

11．Improving environmental
compatibility

11-1．Carry out investigation aimed at group-wide adoption of
eco-efficiency assessment methods using life cycle assessment(LCA)
11-2．Make preparations toward introduction of carbon footprint
11-3．Expand carbon offsets with the aim of reducing
environmental impact of product lifecycle

12．Assessing environmental
impact on water

12-1．Make preparations with the aim of introducing water footprint

13．Disclosing environmental
specifications

13-1．Describe environmentally-friendly specifications in
catalogues, instruction manuals, packing boxes, etc.

Reduce,reuse,
recycleEco-design

Information disclosure

CASIO SUSTAINABILITY REPORT 201398

● Green Star Procurement
Area

Policies

SCM/Supplier Support

1．Supporting CSR provisions
at suppliers and business
partners, including
environmental policy

1-1．Provide personnel, technical and financial assistance when
suppliers and business partners carry out technical support andcapital investment connected to environmental conservation related
to goods delivered to and manufacturing for Casio

Green procurement

2．Promoting green
procurement

2-1．Promote procurement of green components from green
suppliers based on the Casio Group Green Procurement Standards
2-2．Conduct on-site surveys and inspections concerning theusage of toxic substances in accordance with Casio standards● Green Star Factory
Area

Preventing- Destruction of the ozone layer- Atmospheric pollution- Water contamination- Soil contamination- Climate change, etc.

Policies

1．Phase out use of alternative
CFCs, chlorine-based solventsand greenhouse gases

1-1．Reduce use of CO2, methane, dinitrogen monoxide, HFC,
PFC and SF6
1-2．Replace HFC-134a used in dust blowers, etc., with productsthat use chemicals with a lower global warming potential (GWP)
1-3．Take care with handling of volatile organic compounds(VOCs) to prevent dispersal into the atmosphere

2．Adopting renewable energy

2-1．Introduce renewable energy sources such as wind power andsolar power● Green Star Packaging
Area

Policies

Reduction in total mass of
packaging

1．Reducing total mass of
packaging and packing
materials in logistics process

1-1．Design packaging with consideration for shock resistance andreducing volume and weight of product packaging, taking into
account loading efficiency in logistics
1-2．Promote reduction in total mass of delivery packaging
materials for procured components and materials
1-3．Promote reduction in total mass of packaging materials fortransfer of materials and semi-finished goods between plants
1-4．Promote reduction in total volume of valuable materials suchas packaging as a proportion of total waste volume
1-5．Create cooperation framework for reducing mass of packing
and packaging in partnership with suppliers, etc.

Safety2．Safety of materials

2-1．Comply with regulation of toxic substances in packaging
materials based on Green Procurement Standards

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● Green Star Logistics
Area

Environmental impact
management in logistics

Policies

1．Managing environmental
impact in logistics, taking
measures against climatechange (CO2 reduction) andassess indirect CO2 emissions(Scope 3)

1-1．Promote management of environmental impact across theentire logistics process in and outside Japan (procured materials
logistics, production logistics, product logistics, sales logistics andcollection logistics)
1-2．Identify moving mass (ton-km) for each process in the Groupon a consolidated basis and aim to reduce total amount of CO2
emissions
1-3．Promote benchmark for measurement of CO2 emissions
volume and standardization of conversion values

2．Conserving energy inlogistics and measures toprevent climate change

2-1．Improve innovation in transport systems- Switch to transport by rail and shipping, which offer good transport
efficiency and low CO2 emissions- Improve innovation in loading methods and delivery routes toenhance transport efficiency
2-2．Introduce fuel-efficient company cars, commercial vehicles
and delivery vehicles

3．Increasing rate of modal shift* Rate of modal shift: ratio of
total transport volume
accounted for by rail andshipping

3-1．Increase the rate of modal shift in order to reduce
environmental impact of logistics taking product characteristics into
account● Green Star Recycling
Area
1．Promoting collection andrecycling of small appliances
Collection and recycling
2．Promoting the collection,
recycling and reuse of usedgoods and consumables

CASIO SUSTAINABILITY REPORT 2013

Policies
1-1．Pursue ease of dismantling and expand use of recycledmaterial aimed at introducing the collection and recycling system
for small appliances being promoted by the Ministry of theEnvironment and the Ministry of Economy, Trade and Industry
2-1．Promote collection and recycling of equipment for corporates
and expand the range of products covered by programs
2-2．Promote collection and recycling of consumables and expand
the range of products covered by programs100

In order to ensure that the next generation inherits this irreplaceable planet, Casio has established and is
implementing Climate Change Action with medium- and long-term targets to be achieved by fiscal 2051.
Approach to setting medium- and long-term targets
With the establishment of these medium- and long-term targets, Casio intends to reduce its greenhouse gas emissions significantly.
Moreover, the company is emphasizing its goal of becoming carbon neutral,*1 which means reducing Casio's net greenhouse gas
emissions to zero. Accordingly, Casio has adopted the following Environmental Management Policy.
Casio's goal is to become carbon neutral by leveraging its ability to develop compact, lightweight, slim, and energyefficient products to create new markets and cultural phenomenon.
*1. Casio defines "carbon neutral" as offsetting its direct CO2 emissions with CO2 emissions reduction and absorption through other methods.

Scope of emissions reduction targets
When Casio established its medium- and long-term emissions reduction targets, it also announced the target scope as greenhouse gas
emission from business activities at Casio's production sites and offices in Japan and around the world. Furthermore, Casio is aiming tobecome a carbon neutral company by offsetting its total volume of greenhouse gas emissions (including the CO2 emissions resulting fromlogistics, product usage, employee travel, and consignment production) with the reduction effects of Casio's eco-products such as data
projectors, electronic dictionaries and other products that promote paperless lifestyles.
In addition to the CO2 emissions reduction achieved by the efforts of the Casio group, the target CO2 emissions reduction also includes
reductions due to the availability of cleaner energy such as electricity, and due to carbon reduction in the entire social infrastructure (seediagram).
CO2 Emissions Reduction Targets

Switching to total-volume emission reduction targets
With the setting of global medium- and long-term targets, total-volume emissions reduction targets for greenhouse gases have been
established in Japan and around the world, including reduction targets and emission trading systems. Casio has now finished the move tototal-volume emissions reduction targets.
Casio had already set targets for the total volume of greenhouse gas reduction at its offices worldwide. However, with the establishment of
its recent medium- and long-term targets, Casio has now set worldwide targets for reductions in the total volume of CO2 emissions, which
is a change from previous targets for reduction per unit of production.
The base year for Casio's medium- and long-term targets is fiscal 2006, decided based on changes in Casio's business structure, as wellas the scope and accuracy of data acquisition.

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CASIO SUSTAINABILITY REPORT 2013

Medium- and long-term targets

Casio group's medium- and long-term targets for greenhouse gas emissions reduction
Medium-term target： To reduce the total volume of global greenhouse gas emissions from business activities by 30%
compared to fiscal 2006, by fiscal 2021
Long-term target： To reduce the total volume of global greenhouse gas emissions from business activities by 80%
compared to fiscal 2006, by fiscal 2051.
* Business activities: This indicates activities of production sites and offices in Japan and overseas, and does not include CO2 emissions fromlogistics, product usage, or employee travel.

Managing risks and opportunities
As a result of the March 2011 Great East Japan Earthquake and the ensuing accident at the Fukushima nuclear power station, virtually all
nuclear power stations across Japan have suspended operations. Japan is faced with such risks as rising electricity tariffs and power
shortages in summer and winter. Moreover, the greenhouse gas emission coefficient for electricity has risen as a result of the decline in theutilization of nuclear power generation, resulting in an increase in real CO2 emissions. This translates into greater risk of incurring
emissions trading costs under the Ordinance on Environmental Preservation to Secure the Health and Safety of the Tokyo Metropolitan
Area (Environmental Preservation Ordinance). Also in 2011, there was major flooding in Thailand, which may be partially attributable toglobal warming and upstream deforestation. Consequently, global risks have become apparent including threats to the value chain for
production and parts.
In order to avoid these risks, Casio plans to expand the introduction of renewable energy, and secure alternatives in the value chain.
On the other hand, the greenhouse gas reduction effect at time of product usage offered by Casio products which promote paperless
lifestyles, such as data projectors and electronic dictionaries, has been identified as a significant opportunity to address climate changeover the product life cycle. Casio will work to further expand its business in these products.
In order to minimize the various risks mentioned above, and expand opportunities, Casio must contribute to the sustainability of the planet
and its human societies. Casio recognizes that this is an extremely important issue for further strengthening its business foundation, andwill make even more strenuous efforts in the fight against climate change.

Measures for achieving medium- and long-term targets
Casio has set medium and long-term targets for achievement by 2020 and 2050. Among the three areas that the Casio Environmental
Declaration 2020 focuses on, Casio will put the highest priority on realizing a low-carbon society.
Realizing a low-carbon society
The Casio Group will provide products and services that make an even greater contribution to the reduction and absorption of CO2
emissions. In addition to expanding products and services that use energy sources that are friendly to people and the planet, including
solar, wind, and hydro power, Casio will incorporate these renewable energy sources into its own business operations.
Casio Europe has been operating geothermal cooling and heating in its office building since January 2009. In fiscal 2013, Casio will also
begin investigating initiatives for the use of renewable energy including solar.
Regarding other indirect CO2 emissions (GHG Protocol Scope 3 emissions), Casio will work to expand the scope of disclosure of otherindirect CO2 emissions generated during distribution and product usage, which it already discloses, based on the calculation guidelines
being considered currently by the electrical and electronics industry associations.

CASIO SUSTAINABILITY REPORT 2013102

Measures for 2020
Casio is studying the potential of the following initiatives to achieve the medium-term target for 2020. It will also strive to assess as quickly
as possible their potential to help meet the 2050 target.
1. Response to social environment changes after the Great East Japan Earthquake
・Responding to energy issues
・Introducing renewable energy sources
2. Environmental contribution through product usage
・Reducing the amount of electricity used by products
・Minimizing and optimizing the amount of product packaging
・Increasing the percentage of products that run on solar cells
3. Utilizing carbon offsets
・CO2 absorption effect based on the expansion of paperless products (reducing demand for logging, etc.)
・Purchasing carbon offsets for products
・Promoting tree planting and greening
・Emissions trading, Clean Development Mechanism (CDM), and Joint Implementation (JI)
4. Reduction of CO2 emissions in various business activity processes
・Materials procurement, product manufacturing, transport and distribution, product usage, recycling, and disposal
・Expansion of the scope of CO2 emission data gathering on logistics, transport efficiency improvement, and modal shift
・Making production facilities more energy efficient, and improving production processes
5. Increasing the percentage of non fossil-fuels used at sites
・Installation of LED lighting
・Installation of solar panels
・Installation of highly efficient air conditioning equipment

New Energy Conservation Targets for Fiscal 2014 (Power, Fuel, etc.)
Starting in fiscal 2014, Casio established the new energy conservation targets described below with a target year of fiscal 2016 in an
update of its energy conservation targets up to fiscal 2013.
By fiscal 2016, the Casio group overall will reduce energy usage (crude oil equivalent kL) by 13% per unit of total floor space comparedwith fiscal 2011. In setting the new target, Casio changed from establishing targets for production sites in Japan, offices in Japan,
production sites outside Japan and offices outside Japan, respectively, as it did in the past, to establishing an overall Group target.
Moreover, while the target for production sites was previously expressed per production, Casio has employed per unit of total floor space
for the new target, which is as close as possible to an absolute target.
Casio has established energy conservation targets as a crude oil equivalency (kL) for fuel and power usage, and this has made it possible
to evaluate actual energy conservation programs without relying on the CO2 emission coefficient for purchased power.

Fiscal 2013 Performance
The amount of CO2 emissions for the Casio group overall in fiscal 2013 rose 5.7% compared to fiscal 2012, which represented a 64.5%
decrease compared to fiscal 2006. In fiscal 2013, Casio Micronics was transferred, Kofu Casio was closed down, and energy-saving
activities were carried out by the entire Casio group. As a result, total energy use by the entire Casio group fell by 7.9% in crude oil
equivalency compared to fiscal 2012. However, the CO2 emission coefficient for the amount of power in Japan worsened by 36% comparedto the previous fiscal year, so the total amount of CO2 emissions increased.

For more information, see “Reducing CO2 emissions”, “Fiscal 2013 Casio Environmental Action Plan Performance”.

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This page introduces Casio's initiatives for preserving biodiversity.
Casio's approach to biodiversity preservation
The 10th Conference of Parties to the Convention on Biological Diversity (COP10) was held in Nagoya, Japan in October 2010. At thisimportant international conference for resolving issues related to preserving the abundance of life on this planet, the following measures
were adopted.
▪ New Strategic Biodiversity Plan (2020), and the Aichi Biodiversity Targets (2050)▪ Nagoya Protocol on Access and Benefit-sharing
In March 2011, Casio established Biodiversity Guidelines for the entire Casio Group, taking the first step on this issue in its Environmental
Action Plan. Casio is now carrying out activities based on this.
In FY2012, Casio began investigating a checklist for environmental impact evaluation, with the goal of assessing biodiversity impact. The
company also carried out e-learning for about 700 employees in relevant departments concerning basic biodiversity preservation
knowledge and Casio measures, in order to create a foundation for future impact assessment.
In fiscal 2013, Casio prepared a biodiversity impact survey sheet covering “paper” relating to products and sites in cooperation with external
NPOs and NGOs active in environmental protection and commenced a pilot study of suppliers.
Specifically, regarding instruction manuals, pamphlets and other materials in the area of products, and paper for copiers, drafting and otheruses in the area of sites, Casio conducted a study into the usage of waste paper and paper from certified forests evaluated by third-party
organizations and not products from manufacturers about which there are concerns over the legality of logging and environmental
destruction and other areas.
Casio will continue the program from fiscal 2014 aiming for the new Environmental Action Plan described below which it established infiscal 2013.
Biodiversity preservation target
Based on the Casio Group Biodiversity Guidelines, commence a biodiversity impact study for products and sites and examine andimplement measures, to reduce biodiversity impact by fiscal 2016, which will include procurement.
For Products
Consider details concerning design, procurement, manufacture, packaging, sales, logistics and recycling of products
For Sites
Consider details concerning location and operation of plants and offices
FY2014: Conduct a pilot study based on the impact survey sheet prepared in cooperation with NPOs/NGOs. Examine strategy anddirection for programs in light of the pilot study and its analysis and response to the Action Plan and Guidelines for the Electricaland Electronics Industries.
FY2015: Based on results in FY2014, make improvements to the impact study sheet and the structure of the study and expand the scopeof the impact study, taking priority level into consideration. Examine measures for biodiversity in procurement.
FY2016: Analyze the results up to FY2015, identify issues and establish and implement action themes to reduce biodiversity impact.

CASIO SUSTAINABILITY REPORT 2013104

Table: Worldwide trends in biodiversity preservation
Year

Global Trends

Trends in Japan

Trends in Japanese Industry

Convention on Biodiversity(1992)
Comprehensive treaty forbiodiversity preservation
adoptedUp to
COP9 (Bonn)
FY2009Major progress on ocean
conservation
Issued an interim report on
the economic value of
biodiversity

Basic Act on Biodiversity
Requiring local
governments to establish
plans for biodiversity
preservation, and forcompanies to takeresponsibility for promoting
self help and cooperatingwith local governments

FY2010AugustMinistry of theEnvironment's Guidelines
for Private Sector
Engagement in Biodiversity
March
National Strategy for theConservation andSustainable Use of
Biological Diversity 2010

FY2011

COP10 (Nagoya): October
Aichi Biodiversity Targets: Medium and long-term targets
relating to ecosystem services
Nagoya Protocol: Access to Genetic Resources and the Fair
and Equitable Sharing of Benefits Arising from their Utilization
to the Convention on Biological Diversity

FY2013

April (Nippon Keidanren)
Declaration of Biodiversity
by Nippon Keidanren,
Action Policies, and Guide
to Action Policies

Environmental Action Plan
relating to biodiversity
preservation established

OctoberJapan Business andBiodiversity Partnership
startedCasio Group Biodiversity
Guidelines established

Biodiversity working group
activities began in theelectrical and electronics
industry

FY2012

Casio Response

Casio started the education of
relevant divisions andchecklist surveys forbiodiversity preservation
impact assessment
Prepare a checklist forbiodiversity preservation forboth business sites andproducts, and begin a pilot
study

COP11 (Hyderabad, India): October

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CASIO SUSTAINABILITY REPORT 2013

Casio Group Biodiversity Guidelines

For more information on Casio's activities to preserve biodiversity, see the 「Environmental Communication」.

CASIO SUSTAINABILITY REPORT 2013

106

Casio's Green Star Products offer even greater environmental performance than Casio's conventional
products.
Green Star Product concept
In order to minimize the environmental impact of its products, Casio is promoting the development of environmentally friendly products inevery aspect of planning and design.
In 1993, Casio began product assessment in order to systematize and promote its development of eco products. New products had toundergo a preliminary assessment for their environmental impact and meet certain criteria in order to be certified as Casio Green Products.
Prior to FY2008, Casio worked towards an initial Green Product sales target of 80% of total sales, and in that year the company achieved
84%. Now the company promotes to continue target of 80%.
With the achievement of this target, Casio decided to create even stricter criteria and implement more specific, detailed assessments.
Qualifying products are certified as Green Star Products, representing the best of Casio Green Products. This ensures that Casio's
products continue to set the bar higher and drive the realization of a sustainable society.
For Green Star certified products, the environmental features are listed in catalogues and on the product packages.

Casio Green Star Products
See the product lineups that were certified as Casio Green Star Products by FY2013 (photos show product examples).
Calculator

Electronic dictionary

Digital camera

Data projector

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CASIO SUSTAINABILITY REPORT 2013

Electronic musical instrument

Watch

Page printerHandheld terminal

Label printerCASIO SUSTAINABILITY REPORT 2013108

Sales Ratio Achievement, Targets, and Setting Standards for Casio Green Star Products
In FY2010, Casio set a target of a 30% sales ratio of Casio Green Star Products to be achieved by FY2013. The result in FY2011 was 42%,hitting the target two years ahead of schedule.
In FY2012, Casio set a new Green Star Product sales ratio target of 50% to be achieved by FY2015. A ratio of 47% was secured in
FY2013.
The company is applying its Green Star Product Development Guidelines to reduce the environmental impact of these products.
Assessment categories

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CASIO SUSTAINABILITY REPORT 2013

Under its Environmental Vision 2050, Casio has established Environmental Action Plan targets from a global
perspective, and is carrying out environmental activities accordingly. Here are the targets and performance for
FY2013, along with the targets for FY2014 based on the current results.
Environmental Management Policy for Building a Low-Carbon Society
Casio approaches Environmental Management based on its Environmental Vision and Environmental Management Policy for Building asustainable Society. Please click the following link to see how Casio's efforts fit within the larger global context and to see the full text of theEnvironmental Vision and Environmental Management Policy.

Environmental Vision 2050

Fiscal 2014 Casio Environmental Action Plan
Product Targets
1. Development target for eco-products
Increase Casio Green Star product sales to 50 % of total sales by FY2015.
Maintain Green Product sales at 80 % of total sales.

Plant and Business-site Targets
1. Medium- and long-term targets for greenhouse gas emissions reduction
Medium-term target
To reduce the total volume of global greenhouse gas emissions from business activities by 30 % compared to FY2006,
by FY2021
Long-term target
To reduce the total volume of global greenhouse gas emissions from business activities by 80 % compared to FY2006,
by FY2051.
* Business activities: This indicates activities of production sites and offices in Japan and overseas, and does not include CO2 emissions fromlogistics, product usage, or employee travel.

2. Energy conservation targets (electrical power, fuel etc.)
Reduce energy usage (crude oil equivalent kL) by 13 % per unit of total floor space compared to FY2011, by FY2016.

CASIO SUSTAINABILITY REPORT 2013

110

3. Resource conservation targets (water, paper)
Japan production
sites
Reduce water usage by 5 % compared to FY2011, by FY2016
Production sites
outside Japan
Reduce water usage by 5 % compared to FY2011, by FY2016
Japan sites
Reduce volume of office paper used by 12 % compared to FY2011, by FY2016

4. Waste reduction targets
Japan sites
Reduce volume of waste by 4 % compared to FY2011, by FY2016
Production sites
outside Japan
Reduce volume of waste by 48 % compared to FY2011, by FY2016

5. Volatile organic compound (VOC) reduction target
Japan production
sites
Reduce emissions of VOCs by 45 % by FY2016 compared to FY2001.
* 20 types of VOCs are specified by the four main electrical and electronics industry associations in Japan. Among them, Casio uses 8 types.

6. Hazardous substance phase-out target
Detoxify PCB-containing equipment in storage at the Casio Group company in Chuo City, Yamanashi Prefecture.
(Registered consignment of detoxification with the Japan Environmental Safety Corporation – June 2006)
・Jurisdiction: Casio Computer Co., Ltd.
* Store stabilizers, including the low concentration capacitors kept at Hachioji R&D Center, until they can be accepted by JESCO.

7. Logistics target for the fight against climate change
Reduce CO2 emissions volume*

per unit of sales by 20 % compared to FY2011, by FY2016* Scope covers processes relating to product sales, not including processes relating to materials procurement and recycling

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CASIO SUSTAINABILITY REPORT 2013

Overall business activity targets
1. Biodiversity preservation target
Based on the Casio Group Biodiversity Guidelines, commence a biodiversity impact study for products and sites andexamine and implement measures, to reduce biodiversity impact by fiscal 2016, which will include procurement.
For Products
Consider details concerning design, procurement, manufacture, packaging, sales, logistics and recycling of products
For Sites
Consider details concerning location and operation of plants and offices
FY2014:

Conduct a pilot study based on the impact survey sheet prepared in cooperation with NPOs/NGOs. Examine
strategy and direction for programs in light of the pilot study and its analysis and response to the Action Plan

FY2015:and Guidelines for the Electrical and Electronics Industries.
Based on results in FY2014, make improvements to the impact study sheet and the structure of the study
and expand the scope of the impact study, taking priority level into consideration. Examine measures for

FY2016:

biodiversity in procurement.
Analyze the results up to FY2015, identify issues and establish and implement action themes to reduce
biodiversity impact.

CASIO SUSTAINABILITY REPORT 2013112

Fiscal 2013 Casio Environmental Action Plan performance
Progress assessment key①Target was achieved and a new, higher target was established.
②Target was achieved.
③Target not achieved, but steady improvement made over previous fiscal year.
④Making progress toward achieving target and expect results next fiscal year and beyond.
⑤Same as or worse than base value.

Fiscal 2013 Casio Environmental Action Plan Performance

Theme

Target

☆☆☆☆
☆☆☆
☆☆
☆
▲

Per-unit valueof base year,etc.

Per-unit valueof target year,
etc.

Actual performance of
per-unit value for
FY2013, etc.

Performanceby the end of
FY2013

-

50%

47%

6 percentage points
remaining to reach target-[80% or more][80%][Target was achieved.]

Progress
assessment

Product targets
１：Eco-products

Raise share of Green Star Productsales in total sales.

Increase Casio Green Star productsales to 50% of total sales by FY2015.
[Maintain Green Product sales at 80%
of total sales or more.]

Upper level: FY2013
Lower level: FY2012

Plant and business-site targets

１：Reduction ofgreenhouse gas
emissions overthe medium andlong term

Reduce greenhouse gas emissions
over the medium term.

Reduce greenhouse gas emissions
over the long term.

Reduce the total volume of global
greenhouse gas emissions frombusiness activities by 30% by
FY2021compared to FY2006.
Reduce the total volume of global
greenhouse gas emissions frombusiness activities by 80% by
FY2051compared to FY2006.

132,21392,54953,624 (*6)

Upper level: Compared with base year
Lower level: (Compared with previous

46,977

Reduced by 64.5%
Reduced by 12.4%

44,419(Increased by 5.7%)(Tons-CO2)(Tons-CO2)(Tons-CO2)

132,21326,443

46,977

Reduced by 64.5%
Reduced by 12.4%

44,419(Increased by 5.7%)

53,624 (*6)
(Tons-CO2)(Tons-CO2)

☆

(*7)
☆

(*7)
☆

(Tons-CO2)

Figures in blue show adjusted value (*6) of amount of emissions in the base year, taking into account contributions from changes in business structure (including transfers ofgroup companies, etc.), and actual value (*7) based on GHG Protocol

Reduce CO2 emissions(Japan production sites).

２：Energy conservation(electrical power,
fuel, etc.)

Reduce CO2 emissions(Japan office sites).

Reduce CO2 emissions(production sites outside Japan).

Reduce CO2 emissions(office sites outside Japan).

３：Reduction ofgreenhouse gase

４：Resource
conservation(water, paper)

Reduce emissions per unit ofproduction by 30% by FY2013
compared to FY2005.

Reduce water usage(Japan production sites).

Reduce usage per unit of actual
production by 25% by FY2013
compared to FY2001.

(Tons-CO2/¥million)(Tons-CO2/¥million)

11,492

10,458Reduce waste per unit of actual
production by 50% by FY2013
compared to FY2001.

５：Waste reduction
Reduce generation of waste(production sites outside Japan).

６：Reduction ofvolatile organic
compounds (VOCs)

Reduce emissions of VOCs to
atmosphere(Japan production site).

Detoxify PCB-containing equipment

Reduce waste per unit of production
by 30% by FY2013 compared to
FY2005.

Detoxify all PCBs stored at the Casio
Group company in Chuo City,
Yamanashi Prefecture by FY2015.

８：Output reduction of
PRTR substances

Reduce output per unit of actual
production by 40% by FY2013
compared to FY2004.

starts.

Reduce output of PRTR substances(Japan production sites).

☆☆☆

(Tons-CO2/¥million)

7,982 *1

Reduced by 30.5%

7,900 *2

(Increased by 1%)(Tons-CO2)(Tons-CO2)

0.235

0.165

0.212

Reduced by 9.8%

0.213

(Reduced by 0.2%)(Tons-CO2/¥million)(Tons-CO2/¥million)(Tons-CO2/¥million)

5,099

4,946

7,198

Increased by 41.2%

7,249(Reduced by 0.7%)(Tons-CO2)(Tons-CO2)

7,278

728

☆☆☆

0

Reduced by 100%

110.4

(Reduced by 100%)(Tons-CO2)(Tons-CO2)

0.00770.00580.0005

Reduced by 93.0%

0.0030(Reduced by 81.9%)(Thousand m3/¥million)(Thousand m3/¥million)(Thousand m3/¥million)

0.00390.00330.0036

Reduced by 8.7%

0.0041(Reduced by 12.6%)(Thousand m3/¥million)(Thousand m3/¥million)(Thousand m3/¥million)

0.000350.00032

0.00053

Increased by 51.8%

0.00048(Increased by 10.7%)(Tons/¥million)☆☆

▲(Tons-CO2)(Tons-CO2)

☆☆☆

☆☆☆

☆☆

▲

(Tons/¥million)

0.024

0.012

0.0129Reduced by 46.3%

0.014(Reduced by 11.0%)(Tons/¥million)(Tons/¥million)(Tons/¥million)

0.012

0.008

0.0062

Reduced by 48.0%

0.0031(Increased by 99.6%)

☆☆

☆☆☆

(Tons/¥million)(Tons/¥million)(Tons/¥million)

47

26

0.415

Reduced by 99.1%

3(Reduced by 83.7%)

☆☆☆

-

☆

Reduce emissions by 45% by FY2016
compared to FY2001.

７：Hazardous substance now in storage as Japan
Environmental Safety Corporation
phase-out(Reduced by 11.0%)(Tons-CO2)(Tons/¥million)

Reduce generation of waste(Japan sites).

Reduced by 52.7%

0.166 *2

8,313

Reduce usage per unit of production
by 15% by FY2013 compared to
FY2005.

Reduce usage per unit of sales by
10% by FY2013
compared to FY2008.

0.148 *1

0.074

Reduce total emissions by 3% by
FY2013 compared to FY2005.
Reduce total emissions ofgreenhouse gases other than CO2(CO2 equivalent) by 90 % by FY2013
compared to FY2001.

Reduce office paper
usage (Japan sites).

0.203

Reduce total emissions by 9%,
averaged over 5 years from FY2009
to 2013, compared with FY1991.

Reduce total emissions ofgreenhouse gases other than CO2(CO2 equivalent)

Reduce water usage(production sites outside Japan).

0.312

Reduce emissions per unit of actual
production by 35%, averaged over 5
years from FY2009 to 2013,
compared with FY1991.

(tons)(tons)(tons)--

Registered consignment of
detoxification and continued
to store the equipment until
it can be accepted by thedesignated waste
management agency.

0.000110.000070.00000

Reduced by 100%

0.00001(Reduced by 100%)☆☆☆

(Tons/¥million)(Tons/¥million)(Tons/¥million)-

FY2013: 100%

In Japan: 100%
Outside Japan:100%-☆☆☆

９：Green procurement

Improve the green procurement ratio.

Maintain 100%*5 green partsprocurement rate(all supplied parts
are green parts*4) of FY2011.
*4 Parts and materials that do notcontain prohibited substances as
designated by Casio*5 Excluding those substances thatare within legal limits, if customer
requests

10：Green purchasing

Raise green purchasing ratio of officesupplies and office equipment (Japansites).

Raise the ratio to 75% of totalpurchases by FY2012 (based on thenumber of purchases).

-

75%

74.3%

-

☆☆

11：Logistics-related
global warming
countermeasures

Reduce CO2 emissions *3(distribution in Japan).

Reduce emissions per unit of sales inJapan by 22% by FY2013 compared to
FY2006.

-

Reduced by 22.0%
compared to FY2013

49%
compared to FY2006

Reduced by 24.4%
compared to FY2006☆☆☆

Commence pilot studies on
biodiversity impact related to sites
and products by FY2013

-

-

-

Commenced a pilot study
on paper related to sites
and products.

☆☆☆

Overall business activity targets

１：Biodiversity
preservation target

Preserve biodiversity and ecosystemservices.

*1 Average value for FY2009 to FY2013.
*2 Average value for FY2009 to FY2012.
*3 The scope of target for logistics-related global warming countermeasures is distribution for product sales.

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CASIO SUSTAINABILITY REPORT 2013

This page provides an overall picture of the environmental impact of the Casio Group's business activities.
What is a material balance?
A material balance shows the amount of resources used and the amount of materials with environmental impact that are produced(outputs) in business activities from R&D to after-sales collection and recycling (inputs).

Fiscal 2013 performance
In fiscal 2013, business activity inputs and outputs at production sites in Japan fell, primarily as a result of the transfer of Casio Micronics
Co., Ltd., a group company. Since the Great East Japan Earthquake, which took place in March 2011, offices and production sites in Japan
have continued year-round energy saving activities, which include summer and winter.
However, although the amount of energy inputs declined compared to fiscal 2012, CO2 emissions volumes for outputs conversely
increased due to a substantial deterioration in the CO2 emissions coefficient for the amount of domestic power. Casio will continue making
efforts to improve production facilities and business processes as well as increasing the energy and resource efficiency of the products its
sells to promote a reduction of its environmental impact.
Material balance in business activities (FY2013)*1 Ozone depleting substances have been fully phased out.
*2 Parts and materials include consumables, such as toner cartridges.
*3 Recycled waste includes thermally recycled material.
*4 Product distribution is consigned to transportation companies.

CASIO SUSTAINABILITY REPORT 2013114

In order to comply with environmental laws and regulations, Casio’s main sites have acquired ISO14001 certification and operate anenvironmental management system. Under the environmental management system, Casio plans and executes environmental protection
activities based on a range of environmental legislation and the Casio Group Environmental Action Plan as well as various voluntary actionplans established by Keidanren and the industry association. Moreover, Casio applies and operates its own unique environmental
management system to relatively small office sites, which takes into account the extent of their environmental impact.

CO2
Reducing CO2 emissions⌈Production sites in Japan⌋
The target for production sites in Japan was a 35% reduction in CO2 emissions per unit of actual production compared to fiscal 1991 in the
average for fiscal 2009 to fiscal 2013 (simple average of evaluation results for each year). Due to the transfer of production subsidiaries inthe device business, including Kochi Casio and Casio Micronics, energy conservation activities, including power saving, the target wasachieved with a 52.7% reduction in CO2 emissions compared to fiscal 1991. The figure for CO2 emissions volume in fiscal 1991, the baseyear, uses the CO2 emissions volume for businesses at the time as is without any special adjustments of the base year. Going forward,
Casio will strive to achieve the new target to be established for the entire group starting in fiscal 2014.
⌈Office sites in Japan⌋
The target for office sites in Japan was a 9% reduction in the total amount of CO2 emissions compared to fiscal 1991 in the average forfiscal 2009 to fiscal 2013. The performance was a 30.5% reduction compared to fiscal 1991, achieving the target. Casio’s independent
efforts, which included the construction of energy-efficient buildings at the Hatsudai headquarters and Hachioji R&D Center, made a major
contribution to achieving the target. The decline in sales compared to fiscal 2008, when the target was established, also had an impact.
Going forward, Casio will strive to achieve the new target to be established for the entire group starting in fiscal 2014.
⌈Production sites outside Japan⌋
The target for production sites outside Japan was a 30% reduction in CO2 emissions per unit of production in fiscal 2013 compared to fiscal
2005. In fiscal 2013, emissions were 9.8% lower than in fiscal 2005, so the 30% reduction target was not achieved. Production sites outside
Japan underwent frequent relocation of sites and reorganizations and closures, making it difficult to address reductions consistently. Goingforward, Casio will strive to achieve the new target to be established for the entire group starting in fiscal 2014.
⌈Office sites outside Japan⌋
The target for office sites outside of Japan was a 3% reduction in the total amount of CO2 emissions in fiscal 2013 compared to fiscal 2005.
In fiscal 2013, emissions were 41.2% higher than in fiscal 2005. Since fiscal 2005, the number and size of office sites have increased inconjunction with the growth in the overseas market, resulting in a significant increase in total floor space. Although Casio has also
constructed some new energy efficient buildings, the increase in the amount of emissions has outpaced the reductions achieved by thesebuildings. Going forward, Casio will strive to achieve the new target to be established for the entire group starting in fiscal 2014.
⌈Logistics in Japan⌋
The target for CO2 emissions from logistics activities in Japan was a 22% reduction per unit of domestic sales in fiscal 2013 compared tofiscal 2006. In fiscal 2013, emissions were 51.0% lower than in fiscal 2006, achieving the target. In August 2011, the logistics center was
relocated from Suzuka City, Mie Prefecture to Toda City, Saitama Prefecture. In January 2012, the Eastern Distribution Center in Koto-ku,
Tokyo was amalgamated with the logistics center. Through this staged effort, Casio reduced the number of consumer distribution centers inJapan from five to four. This transition not only shortened transportation distances, but also facilitated a modal shift from truck to rail,
helping to further reduce CO2 emissions. In fiscal 2013, Casio began an initiative to send products manufactured overseas directly to theWestern Distribution Center in Osaka. This allows transport distances to be shortened significantly by cutting out transit through the Toda
Logistics Center.
⌈Logistics outside Japan⌋
No specific CO2 emissions reduction target has been set for logistics activities outside Japan. Cargo shipped from China to North America
used to be sent to a sales company warehouse in Chicago, before being forwarded to client logistics centers. Since 2009 however, thecargo has been shipped from China direct to the various central logistics centers of clients, which is helping to reduce CO2 emissions.
Going forward, Casio will continue striving to improve energy efficiency and production processes at all of its production sites in and outside
Japan. Moreover, Casio will promote energy efficiency, including for lighting and heating and cooling equipment, as it works to reduce theamount of CO2 emissions at its office sites in and outside Japan.

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CASIO SUSTAINABILITY REPORT 2013

CO2 emissions (production sites in Japan)*Trends in CO2 emissions from energy sources (electrical power, fuel, etc.) used at production sites in Japan.

CO2 emissions (office sites in Japan)*Trends in CO2 emissions from energy sources (electrical power, fuel, etc.) used at office sites in Japan.

CO2 emissions (production sites outside Japan)*Trends in CO2 emissions from energy sources (electrical power, fuel, etc.) used at production sites outside Japan.

CASIO SUSTAINABILITY REPORT 2013116

CO2 emissions (office sites outside Japan)*Trends in CO2 emissions from energy sources (electrical power, fuel, etc.) used at office sites outside Japan.

CO2 emissions and emissions per unit of sales for logistics in Japan

CO2 emissions and emissions per unit of sales for logistics outside Japan

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CASIO SUSTAINABILITY REPORT 2013

Greenhouse gases other than CO2
Reduction of greenhouse gases other than CO2
The target for reduction of greenhouse gas emissions other than CO2 is at least a 90% reduction compared to fiscal 2001 by fiscal 2013.
Usage of SF6 was reduced substantially due to the sale of the device business in which SF6 was used in the past. Casio has also beenpromoting a switch to alternative HFC-free spray products for the remaining HFCs (contained in dust blower sprays used in productrepairs), already achieving the target in fiscal 2012.
Consequently, starting in fiscal 2014 Casio will transition to maintenance management, which includes confirmation of amount of usage foreach specific period without setting a new target.
SF6 gas usage and emissions to atmosphere (Japan production sites)*Years shown in this graph are calendar years, to match industry action targets.
*The input and emissions of SF6 were zero in 2011.

HFC emissions*During fiscal 2013, changes were made to the amount of spray products used in fiscal 2012 at some office sites in Japan, and the amount of HFC emissions forfiscal 2012 has been revised.

CASIO SUSTAINABILITY REPORT 2013

118

WasteReducing waste⌈Sites in Japan⌋
The target for reducing waste from sites in Japan was a 50% reduction in waste per unit of actual production in fiscal 2013 compared tofiscal 2001. In fiscal 2013, waste was 46.3% lower than in fiscal 2001, which fell slightly short of the 50% target.
Starting in fiscal 2014, Casio will transition to management of total volume, which will not be affected by production volume.
⌈Production sites outside Japan⌋
The target for reducing waste from sites outside Japan was a 30% reduction in waste per unit of production compared to fiscal 2005. In
fiscal 2013, waste was 48.0% lower than in fiscal 2005, meeting the target.
Starting in fiscal 2014, Casio will transition to management of total volume, which will not be affected by production volume.
Generation of waste, volume of landfill disposal, and waste per unit of actual production (all sites in Japan)

Generation of waste, volume of landfill disposal, and waste per unit of production (production sites outside Japan)

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Water resources
Reducing input of water resources⌈Production sites in Japan⌋
The target for production sites in Japan was a 25% reduction in water resource input per unit of actual production in fiscal 2013 comparedto fiscal 2001. In fiscal 2013, water input per unit of actual production was 93.0% lower than in fiscal 2001, meeting the target. The reasonsfor this significant reduction were, as with the reduction in CO2 emissions at production sites in Japan, the sale of production subsidiaries inthe device business and liquidation of companies.
Starting in fiscal 2014, Casio will establish a new target for total usage.
⌈Production sites outside Japan⌋
The target for production sites outside of Japan was a 15% reduction in water resource input per unit of production in fiscal 2013 comparedto fiscal 2005.
The result was an 8.7% reduction compared to fiscal 2005, which did not meet the 15% target.
Starting in fiscal 2014, Casio will establish a new target for total usage and strive to make reductions through such means as reviewing
production processes.
Usage of water resources and recycled industrial water, and input per unit of actual production (Japan production sites)

Usage of water resources and recycled industrial water, and usage per unit of production (production sites outside Japan)

CASIO SUSTAINABILITY REPORT 2013120

Paper resources
Reducing usage of paper resources
The reduction target for the usage of office paper at sites in Japan was a 10% reduction compared to fiscal 2008 by fiscal 2013, per unit ofsales.
The result for fiscal 2013 was 51.8% higher than in fiscal 2008, failing to meet the target. The reasons for the increase were that reductions
in paper usage have plateaued and sales were sluggish. Starting in fiscal 2014, Casio will establish a new target for total usage, which will
not be affected by sales.
Office paper usage (all sites in Japan)

PRTR
Reducing PRTR substances
The target for reduction of usage and releases of substances specified by Japan’s PRTR Act was a 40% reduction per unit of actual
production compared to fiscal 2004, by fiscal 2013.
The result for fiscal 2013 was 100% lower than fiscal 2004, meeting the target.
The reason for achievement of the target was that the main sources of emissions no longer existed due to the liquidation of production
subsidiaries that used to release PRTR substances. Consequently, starting in fiscal 2014 Casio will transition to maintenance management,
which includes confirmation of amount of usage for each specific period without setting a new target.
PRTR substance usage, releases, and releases per unit of actual production (Japan production sites)

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VOC, NOx, SOx, dust
Reducing VOCs
The target for reducing atmospheric emissions of volatile organic compounds (VOCs) from production sites in Japan was a reduction of
45% compared to fiscal 2001, by fiscal 2016. The result for fiscal 2013 was 99.1% lower than in fiscal 2001, meeting the target. The reason
for achievement of the target was that the main sources of emissions no longer existed due to the liquidation of production subsidiaries thatused to release VOCs. Consequently, starting in fiscal 2014 Casio will transition to maintenance management, which includes confirmationof amount of usage for each specific period without setting a new target.
VOC usage and emissions to atmosphere (Japan production sites)

Reducing Nox, SOx, Dust
Casio’s atmospheric emissions of nitrogen oxides (NOx), sulfur oxides (SOx) and dust in the peak year of FY2006 were 138 tons, 37 tons,
and 2 tons, respectively. Emissions in FY2013 were dramatically lower, at 0.3 tons, 0.4 tons, and 0.0 tons, respectively. The reason forthese significant reductions was the transfer of a company out of the Casio Group, and its removal from the scope of computation, alongwith a decrease in production activities following a business closure. By adjusting settings and practicing indoor temperature management,
Casio also intends to continue reducing emissions of atmospheric pollution generated by air conditioning equipment such as hot and chilledwater generators.
NOx, SOx and dust emissions to atmosphere (Japan production sites)

CASIO SUSTAINABILITY REPORT 2013122

Scope of Data
Environmental performance data was compiled using results from the following Casio sites for FY2013 (April 1, 2012 to March 31, 2013).

Production sites in Japan

Office sites in Japan

Yamagata Casio Co., Ltd.

Casio Electronic Manufacturing Co., Ltd.

Yamagata Casio Co., Ltd. (Yamanashi)
Casio Computer Co., Ltd. (Headquarters)

Casio Computer Co., Ltd. (Hamura R&D Center)

Casio Computer Co., Ltd. (Hachioji R&D Center)

Casio Computer Co., Ltd. (Kudan sales office)Casio Computer Co., Ltd. (Osaka sales office)Casio Computer Co., Ltd. (Sendai sales office)Casio Computer Co., Ltd. (Saitama sales office)Casio Computer Co., Ltd. (Nagoya sales office)Casio Computer Co., Ltd. (Hiroshima sales office)Casio Computer Co., Ltd. (Fukuoka sales office)Casio Business Service Co., Ltd. (Headquarters)

Casio Business Service Co., Ltd. (Fuji)

Casio Business Service Co., Ltd. (Fujinomiya)Casio Business Service Co., Ltd. (Kofu)

Casio Information Systems Co., Ltd.
(Headquarters)

Casio Techno Co., Ltd. (Headquarters)

Casio Communication Brains, Inc.

Casio Human Systems Co., Ltd. (Headquarters)

CXD Next Co., Ltd.

Casio Marketing Advance Co., Ltd.

Casio Information Service Co., Ltd.
Production sites outside
Japan

Office sites outside Japan

Casio (Hong Kong) Ltd. (Panyu Factory)

Casio (Hong Kong) Ltd.

Casio Electronic Technology (Zhongshan) Co., Ltd. Casio (Thailand) Co., Ltd.
Casio Taiwan Co., Ltd.

Casio Electronics (Shenzhen) Co., Ltd.

Casio (Guangzhou) Co., Ltd.

Casio Soft (Shanghai) Co., Ltd.

Casio America, Inc.

Casio Canada Ltd.

Casio Europe GmbH

Casio Electronics Co., Ltd.

Casio France S.A.

Casio India Co., Pvt. Ltd.

Casio Singapore Pte., Ltd.

Casio Espana S.L.

Casio (Shanghai) Co., Ltd.

Casio Mexico Marketing, S. de R. L. de C.V.

Guangzhou Casio Techno Co., Ltd.

Casio Benelux B.V.

Casio Scandinavia AS

Casio Brasil Comercio De Produtos Eletronicos
Ltda.

Casio Italia S.r.l.

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CASIO SUSTAINABILITY REPORT 2013

Calculation Standards
1. Input
1. Energy input amount
Includes fuel (gasoline and diesel) for company vehicles
2. Crude oil equivalent
Calculated in accordance with the Law Concerning the Rational Use of Energy
3. Input of greenhouse gases other than SF6
Applicable gases are HFCs in sprays such as dust blowers and quenching agents, and the total spray quantities were usedas the gas input amounts.
4. VOC input amountApplicable VOCs are amounts from sites that use over 50 kg annually.
5. Paper usage amountApplies to paper used for page printers, fax machines, and copiers.
6. Plastic material usage amountApplies to re-input of material on plastic molding lines at group companies.
2. Outputs
1. CO2emissions
The CO2 conversion factors for electricity used to calculate output amounts are as follows.
For emissions in Japan, Casio used an emission coefficient of 0.00035 (t-CO2/kwh), as announced by the Federation ofElectric Power Companies to reflect an adjustment for depreciation credit. This coefficient was also adopted by the Japan
Business Federation in its voluntary action plan.
For emissions outside Japan, the “emissions factor adjusted for the CO2 emissions from CHP (combined heat and power)
generated electricity” was used. It is taken from the latest year value (2003 estimate) in the Japan Electrical Manufacturers’
Association (JEMA) estimate survey (June 2006).
2. Other greenhouse gas emissions
These were calculated in accordance with Japan’s Act on Promotion of Global Warming Countermeasures
3. Waste
Recycling amount is calculated as the amount of material consigned to consignees for intermediate processing plus theamount of material consigned to consignees for thermal recycling
Results related to waste for sales sites calculated by applying independent estimates with reference to manifest tickets, etc.
4. Base year values
The base year values are established by aggregating results for all business sites in existence at the time of the base year
without making revisions for sales of businesses and so on.
5. Method for calculating average values for amount of CO2 emissions
For production sites in Japan, the average value for amount of CO2 emissions is calculated as a simple average per unit ofactual production for each of the five years between fiscal 2009 and fiscal 2013. For office sites in Japan, the average amountof CO2 emissions is calculated as a simple average of the amount of emissions for each of the five years between fiscal 2009
and fiscal 2013.

CASIO SUSTAINABILITY REPORT 2013124

Overview of fiscal 2013 performance
In fiscal 2013, the Casio group’s environmental accounting saw a decrease in investments and expenses in environmental conservation
and a decrease in the economic benefits of environmental conservation compared to the previous fiscal year.
Casio’s investments in environmental conservation, including updating of systems, were valued at ¥33 million in FY2013.
The expenses of Casio’s environmental conservation activities, including recycling of products, parts and suppliers such as tonercartridges, were ¥1,283 million.
Meanwhile, there was a real economic benefit of ¥812 million, including business income from recycling activities and an estimatedeconomic benefit of ¥400 million from the reduction of distribution costs through environmental protection initiatives and environmental
impact reduction achieved by paperless products.
The fiscal year’s total economic benefits were ¥1,212 million.
Environmental conservation costs (April 2012 - March 2013)
Environmental Environmental
investment
expenses(¥ million)(¥ million)*1

Category by business activity
Main initiatives
Business area costs (costs arising in the main areas of business activity (manufacturing,processing, sales, distribution etc.))

29

221

(1) Pollution prevention cost

Preventing water pollution

629(2) Global environmental
conservation cost

Maintenance of energy-saving systems

23

134

(3) Resource circulation cost

Processing, reducing in volume, and recycling of generaland industrial waste-

58

Upstream/downstream cost*2

Collection and recycling of products, parts, supplies-

744

Administration cost

Secretariat operation costs, environmental information
disclosure-

258

R&D cost

R&D for reduction of environmental impact

447

Social activity cost

Participation in, donations to, and support forenvironmental conservation organizations

-

13

31

1,283

Total
*1 Depreciation costs are included in the expenses.

*2 Costs arising before and after the processes of the main business activities.

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CASIO SUSTAINABILITY REPORT 2013

Economic benefits of environmental conservation (April 2012 - March 2013)
Economic benefit
Type of benefit

Amount(¥ million)

Actual benefit (benefit that contributes to profits as a result of the promotion of environmental conservation measures)
Profits
Cost reduction

Estimated benefit *812

Business revenue from recycling of used products, etc.

786

Cost reduction through energy saving activities

13

Reduction of waste processing costs arising from resource saving or recycling

13

Reduction of distribution costs through environmental conservation initiatives
Reduction of power consumption during product use by customers, etc.

400

Total

1,212

*The estimated benefit is calculated as the CO2 reduction amount from business activities plus the reduction from power savings during

product use by customers.
It also includes the environmental benefit of paperless products such as electronic dictionaries, data projectors and non-mercury lightsource projectors, as well as distribution cost reductions achieved by a modal shift from air to sea transport.
Regarding the reduction of power consumption during product use by customers, the monetary value of the environmental impact reduction
effect is calculated as follows: Reduction of power consumption during product use by customers = (Annual power consumption of theprevious model – Annual power consumption of the new model) x Number of units sold in the year x Electric power unit price.
The following statistical sources are used to perform these calculations:
CO2 unit prices are the average full-year value for FY2013 based on the EU emissions trading price (¥697.7/t).
The electric power unit price is the results from the aggregation for FY2011 by the Ministry of Economy, Trade and Industry’s Expert
Committee on the Electricity Power Systems Reform (¥16.8/kWh).

Trends in environmental expenses and economic benefits (FY2011 - FY2013)*Past year values for economic benefits have been revised based on the current fiscal year standards.

CASIO SUSTAINABILITY REPORT 2013126

Environmental conservation effectTypes of environmental conservation effects
Environmental conservation effect relating toresources used in business activities

Environmental
performance indicator
Water resources
CO2 emissions

Environmental conservation effect relating toenvironment impact and waste generated bybusiness activities

Unit
Thousand3mTons-CO2

FY2012FY2013

Environmental
conservation
effect *1

847

685

162

44,30946,978-2,669 *2Specially designatedchemical (PRTR)
emissions

Tons

1.5

0.0

1.5

Waste emissions

Tons

2,944

2,750

194

BOD

Tons

19

10

9

NOx emissions

Tons

1.4

0.6

0.8

SOx emissions

Tons

2.2

0.4

1.8

*1

Figures that have risen are shown as positive, while those that have fallen are shown as negative.
The environmental impact has decreased significantly due to the transfer of the WLP-related business.

*2

This is because the CO2 emissions coefficient for electric power in Japan worsened by 36% due to the suspension of operations at
nuclear power plants although energy consumption, which includes power and fuel, decreased.
Scope of data compilation for environmental accounting: Casio Computer Co., Ltd., and consolidated subsidiaries in and outside Japan.
Reference guideline: Environmental Accounting Guidelines 2005, Ministry of the Environment, Japan127

CASIO SUSTAINABILITY REPORT 2013

Carbon offset initiative
As an initiative to help combat climate change, Casio began selling toner cartridges featuring a carbon offset in July 2008. In general,carbon offset works like this: an organization purchases a credit equivalent to a reduction of emissions of certain gases thought tocontribute to climate change in order to “cancel out” its own emissions. Even though Casio’s products are compact and energy-efficient,which in itself reduces emissions, Casio’s toner initiative seeks to offset CO2 emissions equivalent to the amount generated to produce theelectric power the printer uses during the life of the toner cartridge.
In the initial fiscal year, Casio performed the offsets using carbon credits from Clean Development Mechanism (CDM) projects outside
Japan registered with the UN CDM Executive Board. In fiscal 2010, Casio also began using Japan Verified Emission Reduction (J-VER), a
newly created carbon credit system in Japan. In 2012, the final year of the first commitment period of the Kyoto Protocol, the 9,520
tons-CO2 that Casio offset with carbon credits from CDM projects outside Japan counted toward Japan’s contribution, helping with theachievement of Japan’s 6% reduction target.

Trends in Carbon offset amount

CASIO SUSTAINABILITY REPORT 2013128

Carbon offset report (fiscal 2013)
The following is a report on the carbon offsetting from the sale of Casio toner cartridges offering a carbon offset.
Period:April 1, 2012 to March 31, 2013

Product:

GE5000 Series Return Toner Cartridges
N3000 Series Return Toner Cartridges
N6000 Series Return Toner Cartridges
V2000 Series Return Toner Cartridges
B9000 Series Return Toner Cartridges

Allowance credit
ProjectType

Name

CreditType

ID number

CDM

Koblitz - Piratini Energia S. A - Biomass Power Plant - Small
Scale CDM Project （Brazil）（UN CDM Executive Board Registration No.0228）

CER

BR000-000-028-423-380〜424-486
BR000-000-028-424-493〜424-523

CDM

Wind Power Generation Project 88.8MW in Gujarat, India（UN CDM Executive Board Registration No.1856）

CER

IN000-000-142-331-723〜332-342

CDM

Wind Power Generation Project 29.7MW in Karnataka, India（UN CDM Executive Board Registration No.1949）

CER

IN000-000-142-825-613〜826-242

In
Japan

Kochi Prefecture Wood Resource Energy Utilization Project B（Certification Center on Climate Change, Japan, Registration
No. 0001004）

J-VER

JP200-000-000-095-618〜095-621

Invalidation
providerCarbontrade Inc.

Carbontrade Inc.

Kochi Prefecture

Offset amount in FY2013: 2,392 tons-CO2
Information on carbon offsetting (in Japanese only)http://casio.jp/ppr/green/

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CASIO SUSTAINABILITY REPORT 2013

This section describes Casio’s environmental protection initiatives in the area of general packaging.
Casio’s Special Committee on Packaging spearheads the company’s effort to revise and improve general packaging.
Specifically, the committee promotes efforts to improve transport efficiency, reduce CO2 emissions during transportation, and reduce theamount of material used in packaging by making packages more compact and lightweight for all products.
Here are three examples of these activities.
1. Watch packaging: Eliminated an extra step of distribution processing by standardizing packaging that had been different for eachcustomer, and further reduced the packaging size.
2. Electronic dictionary packaging: Realized more compact packaging with fewer package components by improving the shock resistanceof the products themselves.
3. Digital camera packaging: In consideration of actual customer usage, eliminated some included items (accessories) and revised
specifications of others, thereby reducing packaging weight.

Watch Packaging
Casio redesigned three different packaging formats (C ring stands) that had been used for North American customers. By standardizing the
packaging format, the packaging volume was reduced by about 17%. In addition, a step of distribution processing was eliminated.

CASIO SUSTAINABILITY REPORT 2013130

Electronic Dictionary Packaging
One of the packaging components, the product tray, was eliminated by improving the shock resistance of the products themselves. Also, byredesigning the box construction, a place for putting the included product accessories was created. In total, the box volume was reduced byabout 13%.

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CASIO SUSTAINABILITY REPORT 2013

Digital Camera Packaging
In consideration of actual customer usage, some included items (accessories) were eliminated and the specifications of others were revised
to reduce packaging weight. For instance:- Simplified user manual content, with further details provided online- Changed the manual from CD size to A7 size
- Eliminated the CD-ROM
Changes to Included Accessories
A7-size booklet

A7-size insert

CD-ROM

EliminatedEliminated

AV cable

EliminatedEliminatedUser manual

CD-size booklet

AC cordAC adapter (charger)

⇒

⇒

Strap
Rechargeable battery
USB cable

CASIO SUSTAINABILITY REPORT 2013132

EliminatedEliminatedCasio is working to ensure its logistical operations have as low an environmental impact as possible byimproving its inter-site parts-shipment routes and switching to more efficient modes of product transportation.
Logistics process initiatives
Casio is actively reducing its environmental impact by striving to reduce CO2 and waste emissions arising from logistics.
In order to reduce CO2 emissions in the logistics process, Casio is promoting the following three action plans.
Shortening transport distances： Promoting direct shipping to customers from logistics centers in and outside Japan
Promoting a modal shift： Actively using modes of transport with low environmental impact such as rail for transport between sites
Improving loading efficiency and reducing transport volume： Improving the packaging design of digital cameras, electronic
dictionaries, musical instruments electronic cash registers, and other products, and reducing the volume of packaging

Relocation and Consolidation of Logistics Centers in Japan
Casio’s logistics center in Mie Prefecture was moved to Saitama Prefecture, and then its distribution center in Tokyo was ultimately
consolidated with the logistics center, a transition that was achieved in stages.
In August 2011, the logistics center was moved from Suzuka City, Mie Prefecture, to Toda City, Saitama Prefecture. Then in January 2012,
the company’s Eastern Distribution Center in Koto-ku, Tokyo, was consolidated with the logistics center.
With this change, Casio reduced the number of consumer product distribution sites in Japan from five to four. This transition not only
shortened transport distances, but also promoted a significant shift from truck to rail shipment, and has contributed greatly to CO2emissions reduction.
Promoting Modal Shift and Reducing Intermediate Transport

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CASIO SUSTAINABILITY REPORT 2013

■Results of the Transfer and Consolidation
1. Elimination of intermediate transport
Shortened the distance from the logistics center to the Hokkaido Distribution Center in Sapporo
Intermediate transport no longer required from the logistics center to the Eastern Distribution Center in Tokyo
2. Promotion of modal shift
Partial shift to rail between the logistics center and the Western Distribution Center in Osaka
Switch to rail between the logistics center and the Kyushu Distribution Center in Fukuoka
3. Transport distance shortened
Shortened the transport distance in the Kanto (Tokyo) region which accounts for about 46% of direct shipments from the logistics
center (delivery direct to customers without going through a distribution center)* Based on the results described above, Casio reduced CO2 emissions by approximately 340 tons in fiscal 2013.
In fiscal 2013, Casio began an initiative to send products manufactured outside Japan directly to the Western Distribution Center inOsaka.
This allows transport distances to be shortened significantly by cutting out transit through the Toda Logistics Center.

Promoting direct delivery to North America
Casio is promoting direct delivery from logistics centers to corporate customers.
In the past, products shipped from China to North America were sent to a warehouse of Casio America, Inc. in Chicago, before being
delivered to the logistics centers of corporate customers. In 2009, however, Casio began shipping directly to the central logistics centers ofcustomers, thereby helping to reduce CO2 emissions. In fiscal 2011, about 1,800 tons of CO2 emitted by the Casio Group and its
customers were eliminated in this way.
In fiscal 2012, Casio will promote further direct delivery efforts, investigating direct shipment not just to the central logistics centers ofcustomers, but also to their regional centers.
Promoting direct delivery to North America

CASIO SUSTAINABILITY REPORT 2013134

Introduction of reusable shipping cartons in Asian distribution
To reduce packaging material, Casio is working to introduce the use of reusable
shipping cartons in its Asian distribution operations.
In an effort to switch to plastic reusable shipping cartons in its air freight shipments
between Japan, Hong Kong, and Thailand, Casio launched the use of new cartons in
September 2009.
These cartons can be used to ship parts made in Japan to Hong Kong for use at
Chinese production sites, and to ship timepiece parts from vendors in China, from
Hong Kong to Thailand. By then transporting finished timepieces or timepiece parts

A reusable shipping carton employed for distribution in Asia

from Thailand to Japan, the cartons never have to travel empty between the three countries.
Unlike traditional cardboard boxes, these cartons do not have to be discarded, and instead can be used many times over, thereby reducing
environmental impact.
Casio has now begun to introduce even larger shipping cartons. The large shipping cartons are mainly used for ocean transport. Packaging
damage can be avoided through the use of LCL shipping (freight from different companies in one ocean shipping container), which also
eliminates the need to use air transport when the shipping volume is small.
Starting in fiscal 2012, the reusable large shipping cartons are also being used to transport products.

Shipping carton receives Chairman of Japan External Trade Organization (JETRO) Award
On October 4, 2012, the large shipping carton shown here received the Chairman of Japan External Trade Organization (JETRO) Award at
the Japan Packaging Contest 2012, one of Japan’s biggest packaging competitions, which is organized by Japan Packaging Institute.

Four products obtain Eco Rail Mark certification
On February 28, 2013, Casio obtained Eco Rail Mark certification from the Railway Freight Association for four products: clocks, digital
pianos, electronic keyboards and electronic cash registers.
The Eco Rail Mark indicates that a product or company is proactively addressing global environmental issues by using rail freight transport.
Rail transport produces about one sixth of the CO2 emissions of commercial trucking, making it an environmentally friendly method oftransport with a low environmental impact.
The criteria for certification are utilization of rail for at least 30% of land freight transport for distances of 500km or more for a product, andutilization of rail for at least 15% of land freight transport for distances of 500km or more for a company.
Casio obtained Eco Rail Mark certification as a company in October 2009 and successfully obtained product certification as a result offurther expanding rail transport due to the relocation, amalgamation and closure of business sites.
Casio now actively uses rail for transport from its logistics center in Saitama Prefecture to distribution centers in Hokkaido, Osaka andFukuoka. Going forward, Casio will make active efforts to reduce environmental impact by pursuing environmentally friendly transport.

Eco Rail Mark

Promoting a modal shift to rail transport

Environmentally friendly rail containers

CO2 emissions for logistics (Environmental Data)135

CASIO SUSTAINABILITY REPORT 2013

In compliance with global laws and standards, Casio is striving to achieve environmentally compliant productdesign and green procurement.
Environmental laws and regulations relating to Casio products and green procurement
As a company with operations around the world, Casio must comply with the laws and standards of many different countries.
This is why Casio starts with the design and procurement stages to ensure that its products comply with restrictions on specified chemical
substances in parts and materials, while complying with obligations for labeling, information provision and energy-saving standards forfinished products.
In the procurement stage, Casio regularly updates its Green Procurement Standards to ensure compatibility with all the current laws andstandards in countries around the world. Thus, by procuring parts and materials that meet its own strict standards, Casio can be confident
that its product development meets legal requirements worldwide. Casio also ensures the compliance of its products by scientificallyverifying and analyzing the content of chemical substances in parts and materials used.
In the design stage, the company confirms that all parts and materials that will go into a completed Casio product meet the Casio Green
Procurement Standards. Products are approved for production only after confirmation using a database of the chemical substances
contained in procured materials.
Casio selects recyclable materials and provides symbol marks and the necessary information to ensure separate collection, complying withthe relevant laws and standards worldwide on product recovery and recycling as well as on chemical substances contained in products.
The company has also established internal standards to comply with laws for energy-saving design, such as Europe's Energy-related
Products (ErP) requirements.
The table below shows the principal environmental laws relating to the distribution of Casio products in countries around the world.
Major environmental laws and regulations related to Casio products
Product
Collection
andRecyclingEU

Hazardous
Substances
RoHS
REACH

WEEE

(as of May 2013)
Packaging

Energyconservation
EuP

Collection
andRecycling

Hazardous
Substances

Battery
Collection andRecycling

Hazardous
Substances

EU Directive on Packaging
and Packaging Waste

Batteries directive

Turkey packaging
regulations

Turkey batteries regulations

Chemical substanceregulations

NorwayTurkeyTurkey WEEE & RoHS

SerbiaSerbia WEEE & RoHS

UkraineUkraine RoHSUS

Each state's
TV/PC
recyclinglaws

Each state's
mercury regulations,
California
Proposition 65,
California SB50,
California
regulations onformaldehyde

CanadaEach state's
electric
appliance
recycling
regulations

CASIO SUSTAINABILITY REPORT 2013

Turkey ErP

Serbia batteries directive

US federal law,and external
power supply
efficiency
regulations ineach state

External power
energy efficiency
regulations

136

Each state's
packagingand heavymetalregulations

Each state's
packagingmaterialcollection
programs

Each state's
rechargeable
battery
recycling
regulations

ProductCollection
andRecycling

Hazardous
Substances

Energyconservation

Collection
andRecycling

Battery

Hazardous
Substances

Collection andRecycling

Hazardous
Substances

BrazilRecycling Law

Brazilbatteries
regulation

Energyconsumption
labeling
regulations

MexicoBrazil

PackagingBrazilRecycling
Law

BrazilRecycling
Law

Argentina

Argentina
batteries
regulation

Paraguay

Paraguay
batteries
regulations
Israelpackagingregulations

Israel

China

South
Korea

China WEEE

China RoHS

South Korea RoHS/WEEE/ELV

China RoHS

South Korea
EnergyConservation
Law

South Korea
Recycling
Law

TaiwanJapan

Globalconventions

South Korea
batteries
regulations

Battery
recycling
regulations

Dry-CellBattery
Mercury
Regulations

India's e-waste law

Viet Nam
Indonesia

South Korea
Recycling Law

External power
energy efficiency
regulations

Australia
India

Dry-CellBattery
Mercury
Regulations

Viet Nam RoHS
Householdwaste
regulations

Recycling
Law

Recycling Law(J-Moss)

Container
andPackaging
Recycling
Law

EnergyConservation
Law

Recycling Law

Convention on
Persistent Organic
Pollutants (POPs)

As an initiative to help prevent climate change in the procurement stage, Casio requests suppliers not to use greenhouse gases in the
manufacturing process, and also to ascertain and reduce their emissions of CO2. In the development and design stages, Casio promotes
product development by setting targets that surpass its competitors' products with the best energy consumption efficiency in the same
category.

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Casio is committed to green purchasing, or the proactive effort to purchase environmentally friendly indirect materials, which includes officesupplies and office equipment (excluding software). Casio pursued its goal of a 70% green purchasing rate*2 in fiscal 2010 at sites thathave adopted the CATS e-P System*1, a goal established in fiscal 2009. In fiscal 2010 the target was achieved with a rate of 70%. In fiscal
2011, Casio worked toward a green purchasing target rate of 75% by fiscal 2013. However, due to the major changes in economic
conditions since 2009, performance has slipped since fiscal 2010. Based on this analysis of results and the steps taken to further increase
the share of green products purchased, Casio achieved an improvement in the green purchasing rate to 74.3% in fiscal 2013, almost equal
to the 75% target for fiscal 2013. In the future, Casio will actively increase the share of green products purchased in order to keep its green
purchasing rate at a minimum of 70%.

■ Green purchasing rate (in terms of number of purchases)*1 Sites that have adopted the CATS e-P System:(As of March 31, 2007: 1 company)
Casio Computer Co., Ltd.: Headquarters, Hamura R&D Center, Hachioji R&D Center, Eastern Japan hub centers (Chiyoda, Sendai,
Saitama, Yokohama, Chiba, and Special Sales Office), and Western Japan hub centers (Nagoya, Osaka, Hiroshima, and Kyoto)(As of March 31, 2008: added 8 companies, reaching a total of 9)
Casio Information Service Co., Ltd.
Casio Communication Brains, Inc.
Casio Business Service Co., Ltd.
Casio Information Systems Co., Ltd.
Casio Electronic Manufacturing Co., Ltd.
Casio Human Systems Co., Ltd.
Casio Techno Co., Ltd.
Yamagata Casio Co., Ltd.
(As of October 1, 2011: added 1 company, reaching a total of 10)
Casio Marketing Advance Co., Ltd.
*2 Green purchasing rate(%):

CASIO SUSTAINABILITY REPORT 2013138

This section describes Casio’s environmental protection initiatives in the area of general production.
Saving resources by eliminating defects
At Yamagata Casio, which boasts the most advanced manufacturing technologies of any Casio
facility, a computer-simulated system is adopted for the design process in an effort to eliminate
the creation of defective products even before the trial production stage.
They calculate the flow of resin inside a mold, and try to predict and resolve any problems thatmight occur in the manufacturing process. This enables production to begin without a test
production phase, thereby minimizing the waste of resources.

Simulation display

In the mass production stage, the condition of the molds used to form components is analyzed
digitally using acoustic emission (AE) technologies that Yamagata Casio developed itself. This
technology detects even slight deformations or cracks that appear in the mold over the course of
manufacturing many tens of thousands of parts, sounding an alarm before such problems canhave an impact on product quality. This prevents the generation of defective products

Mold diagnostic system using AE

As an indication of the success of these initiatives, the factory is now using parts per million(PPM) rather than a percentage (%) as the index to manage its defective product production rate.

Environmental performance data at production sites (Environmental Data)

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All Casio office sites are engaged in efforts to reduce CO2 emissions and cut resource use by upgrading officeequipment and improving work processes.
Reducing power consumption through server integration
Casio has vastly reduced its energy consumption by integrating the servers that had once been disparately located across the group.

Server integration results
902 servers had been integrated by March 2013.

Effects of reducing power consumption through server integration
This server integration effort is resulted in a total reduction in power consumption of 1,350,000 kWh, yielding a reduction in CO2 emissionsof 491 tons.
Contributing to Green IT Through Server Integration
Through Mar.
2012
Number of servers integrated (machines)

Apr. 2012 Mar. 2013

Cumulative total

815

87

902

1,222,500

130,500

1,353,000

Annual CO2 reduction (tons-CO2)*2

443.8

47.3

491.1

Number of Japanese cedars needed to absorb this amount(trees)*3

31,7003,380

35,080

Annual power consumption reduction (kWh)*1*1: Calculated based on a 1,500 kWh reduction per server per year.
*2: Calculated based on CO2 emissions of 0.363 kg/kWh. From Japan's Ministry of Internal Affairs and Communications, "Report by the Study Group on ICT Policy
for Addressing Global Warming," April 2008.
*3: Based on a document published by the Forest Agency of Japan's Ministry of the Environment, "Absorption Source Countermeasures for Greenery to Prevent
Global Warming," indicating that a single Japanese cedar tree absorbs about 14 kg of CO2 annually.

Casio Europe's energy-efficient building
Casio's office sites have shifted from focusing on reducing CO2 per unit of production to cutting
the total volume of CO2 emitted across the entire Casio Group. In January 2009, Casio Europe
integrated its offices, distribution center, and service center, which had previously been separately
located around Germany, into a new energy-efficient building.

CASIO Europe

This building has an innovative air conditioning system that uses geothermal exchange equipment 130m below
ground to pump water through pipes embedded in the concrete ceiling and floor of the building. The system
pumps cool water in the summer and hot water in the winter to either cool or heat the building.
Energy consumption in the building is further reduced by controlling room temperatures using blinds that open
and close automatically according to the weather as well as proper ventilation.

Diagram showing the useof geothermal heat

CASIO SUSTAINABILITY REPORT 2013140

Hachioji R&D Center takes on the challenge of climate change and environmental preservation
The Hachioji R&D Center was designed and constructed to reduce CO2 emissions in order to contribute to thefight against climate change. The center continues to take on the challenge of environment protection. Some ofits innovations are highlighted below.
Ongoing power-saving activities
The Hachioji R&D Center completed in November 2003 is a research and development facility that incorporated environmentally friendly
equipment from the initial design stage. It has been running efficiently for approximately ten years since it opened, boasting energy-savingfeatures such as high-efficiency vertical thermal storage tanks, a natural ventilation system, automatic blinds, lighting control and equipment
control based on weather forecasting. With the participation of the construction company, the center holds ongoing meetings to consider
power-saving measures. Thus, instead of just relying on its hardware, the center has been enthusiastically pursuing other improvements
such as finely tuned temperature control adjustments, and the revision of operation methods based on actual daily data.
As a result of these efforts, in fiscal 2010, five years after the base year of fiscal 2005, the center was able to reduce CO2 emissions by
27.5%. Subsequently, the organization and the number of employees at the center underwent significant changes in fiscal 2011 and fiscal
2012 because some of its departments carried out business combinations with other companies, and substantial changes in singular values
were also observed in the amount of CO2 emissions. However, in fiscal 2013, CO2 emissions were less than half of what they were in thebase year of fiscal 2005.
Base year
emissions(FY2005)
Emissions (tons)
Reduction rate compared to thebase year

FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013

2,952

2,802

2,618

2,452

2,303

2,140

705

961

1,319

5％

11％

17％

22％

28％

76％

67％

55％

Figures reported up to fiscal 2010 differ due to a change in the CO2 emissions calculation method

Click here to see CO2 emissions from office sites (environmental data)

The Hachioji R&D Center – environmentally friendly since the design stage
The air-conditioning system at the Hachioji R&D Center features a large vertical
thermal storage tank that passed through all the floors of the building. It contains waterthat is cooled during the night when electricity is cheaper, and then used for climate
control during the day. Using a vertical thermal storage tank allows the system to makeuse of thermal stratification in the stored water to reduce the volume of cooled waterused and makes it easier to draw water up to the upper floors of the building. Although

Thermal storage tanks
The distinctive yellow tower is noticeable even from athe system can operate entirely on its own, it is actually run with human guidance for“semi-automatic” operation. In other words, by having human technicians make thefinely tuned adjustments that the system cannot make automatically, greater savings inenergy consumption and CO2 emissions are being achieved to protect theenvironment.

distance, and the storage tank has become an energysaving symbol for the entire Hachioji R&D Center. It holds
roughly the same volume of cooled water as a 25-meter
elementary school pool, and uses it for air conditioning.

Natural ventilation system maximizes use of outside weather conditions
No heating equipment is needed at the Hachioji R&D Center. This is because the building has comprehensive protection against cold
weather, which prevents interior heat from escaping and improves thermal efficiency.
Since room temperatures increase even in winter, due to body heat and heat from equipment such as computers, the interior is cooled byletting outside air in as needed through ducts on each floor. This provides ventilation through natural airflow using the chimney effect tolower room temperatures. Thus, the temperature is adjusted using hardly any electric power.

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Making the most of sunlight with automatic blinds
The opening and closing of the blinds is controlled automatically by calculating theposition of the sun and using sensors to detect its intensity at the same time. Thanks
to this technology, a comfortable interior environment is maintained.
In addition to this, the system reduces unnecessary usage of electricity by regulating
air conditioning to match the number of people in the center obtained by using building
entry data and automatically control interior lighting, switching it on and off andadjusting brightness with sensors that detect room brightness and human movement.
The building also has a green wall of vegetation to prevent it from heating up. The
center has developed educational tours for local elementary school students andothers to explain the use of its features.
Related materials: See the “Environmental Communication” section for information
about educational tours of the facility
http://world.casio.com/csr/env/communication/

Automatic blinds
The automatic blinds help to maintain optimal interiortemperatures and lighting through automatic control ofnatural light. They block the intense summer sun. In
addition, employees came up with the idea of saving more

Through these measures,the Hachioji R&D Center is contributing greatly to the
reduction of CO2 emissions, thereby helping in the fight against climate change andelectricity by opening the blinds at lunchtime to let light inand turning off the lights.

protecting the environment. While fully utilizing the environmentally friendly functionsof this energy-saving building, the center is implementing cycles of improvement,
operation, results,verification, and evaluation in order to achieve even more powersavings in the future.

A green wall
The center sports a green wall of bitter gourd plants. Whileit only covers part of the exterior, it shields the surface ofthe building and the interior from direct sunlight to prevent
increases in temperature.

CASIO SUSTAINABILITY REPORT 2013142

Casio's environmental management system is driven by the biannual Casio Environmental Conferences. The
company makes the most of this system to implement its environmental management strategy.
Implementation framework
The biannual Casio Environmental Conferences decide on the company's specific environmental plans, including its environmental policies
and action plan targets. Positioned within the conference are special committees that deal with environmental issues shared by all groupcompanies. Each business site and group company then implements the policies and plans.
An environmental management system based on environmental management tools such as ISO 14001 has been adopted at each site andgroup company, and since fiscal 2012, 100% of group company employees have been working at sites with ISO 14001 certification.
Structure of the Casio Environmental Conservation Committee(April 2013)

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List of ISO 14001 Certified Sites
Certifi ed and registered site

Date acquired

Yamagata Casio Co., Ltd.

November 1997

Casio Electronic Manufacturing Co., Ltd.

September 1999

Casio Business Service Co., Ltd.

January 2000

Hamura R&D Center, Casio Computer Co., Ltd.

October 2000

Hachioji R&D Center, Casio Computer Co., Ltd.

October 2000

Headquarters, Casio Computer Co., Ltd.
(including seven sales sites)

December 2000

Casio Human Systems Co., Ltd.

December 2001

Casio Techno Co., Ltd.

May 2002

Casio Computer (Hong Kong) Ltd., Panyu
Factory

September 1999

Casio Computer (Hong Kong) Ltd.

December 1999

Casio (Thailand) Co., Ltd.

July 2012

Casio Taiwan Co., Ltd.

December 2001

Casio Electronics (Shenzhen) Co., Ltd.

February 2002

Casio Electronics (Zhongshan) Co., Ltd.

April 2002

Compliance with Environmental Laws
In fiscal 2013, Casio was not subject to any legal violations, penalties, fines, or lawsuits relating to the environment.

CASIO SUSTAINABILITY REPORT 2013144

Worldwide, environmental regulations are being strengthened to preserve the beauty of the Earth. Whether
global or local, compliance with environmental regulations has become an integral part of the corporate
mission. Companies today recognize the need to address issues such as risk management and environmental
information disclosure, while complying with greenhouse gas emissions regulations, the prohibition of
products containing harmful chemical substances and ISO 14001 legal requirements. Here is an overview of
Casio’s environmental compliance initiatives.
Standards management and audits: Regular internal audits and third-party audits
There are 14 Casio sites which have obtained ISO 14001 certification.
Each of these sites regularly implements conditions management and improvement activities by measuring concentrations of dust, SOx,
and NOx in exhaust emissions, based on voluntary standards and standards established by national and local governments. They alsomeasure wastewater quality (water containing harmful substances). Moreover, the sites measure and report usage conditions for harmful
atmospheric pollutants, as well as handling quantities and atmospheric emissions of volatile organic compounds (VOCs).
Each site trains internal environmental auditors and environmental provisional auditors. In addition to carrying out internal audits, third-party
audits by external organizations are also regularly performed, and improvement activities are carried out.
Going forward, Casio will work to improve the environmental risk detection skills of its internal environmental auditors, as a way to improve
its overall environmental audit capability. Casio will also seek to improve auditors’ understanding of various environmental laws, andprovide training in worldwide laws relating to chemical substance control and information management. Casio intends these auditors to leadthe way in environment compliance, starting at the local site, by discovering issues and proposing ways to improve.

Compliance Audits in the Phases of Product Development, Design, and Manufacturing
In recent years, laws and regulations on the environmental performance of products have become stricter. In addition to stricter regulations
in EU nations and US states, stronger laws are also being discussed and enacted in the newly emerging economies of Asia and Latin
America, referencing those already established by developed countries. In some cases, the newer laws are based on the established ones,
but they often have small differences in the specific requirements. It is vital for Casio to interpret these regulations properly, and makewhatever product adjustments are needed.
Accordingly, Casio always obtains the latest news from each region and specialized information services, while also exchanging information
with other companies in the same industry. The information is used to check that Casio products meet legal requirements. The company
analyzes the text of laws including those under deliberation, and establishes specific product response policies immediately after new laws
are officially announced, ensuring that all Casio products are legally compliant.
Casio has established a Product Environment Law Study Working Group within its New Green Product Development Council. The working
group includes representatives from the environmental management, technology, development/design, and sales departments, andinvestigates measures for product compliance. The group members share information, establish reasonable response policies, and confirm
response progress, for efforts relating to both current and future laws. They also offer support to the development, design, manufacturing
and sales departments.
The working group performs the following.
1. Gathering and sharing legal information from and with sources such as industrial associations, sales companies in each region,
information services, and other companies in the same industry
2. Analyzing and interpreting legal information
3. Ensuring obligations are met by manufacturing, import, export, and sales entities
4. Creating development and design standards, and conducting inspections
5. Improving the usage efficiency for design support tools (database of chemical substances contained in products, etc.)

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With the enactment of some regulations carrying severe penalties, Casio also recognizes the need to keep strengthening risk management.
Furthermore, Casio conducts environmental audits before shipping new products in the development and design departments to check forenvironmental design that conforms not only to laws and regulations by also to the Casio Voluntary Plan for the Environment. The groupalso conducts audits of chemical substances to check whether products comply with laws and regulations on chemical substances invarious overseas markets. Products are cleared for shipment on confirmation that all parts and materials satisfy standards on chemical
substances.

Compliance Relating to Chemical Substances Contained in Products
Countries around the world have implemented new laws pertaining to chemical substances contained in electrical and electronics products,
while existing laws continue to be strengthened each year. Individual laws and regulations vary in terms of the applicable chemical
substances, regulated applications, exempt applications, threshold values, scope, and requirements (content restrictions, labeling, andinformation provision, etc.).
Casio has consolidated the requirements of various laws on chemical substances contained in products and has incorporated them into the
Casio Green Procurement Standards. The development and design departments are then able to comply with regulations worldwide bychecking a database to see whether a part or material to be included in a product meets the Casio Green Procurement Standards.

Compliance Relating to the Proper Collection, Recycling, and Disposal of Used Products
Countries around the world also have regulations for the collection and recycling of used electrical and electronics products, packaging
materials, and batteries. Companies must comply with the requirements of each law including product design to save resources andfacilitate recycling, labeling and information provision to promote user participation in the sorted collection of products for recycling, as wellas information provision for proper product disposal.
Through audits at the end of the product design process, Casio evaluates each product design in terms of resource savings, ease of
dismantling, recycling potential, and recycled material content. Confirmation is also made to see whether the recycling symbols anddisplayed information meet legal requirements worldwide.
Casio established a project involving professionals such as engineers, designers and others related to each product genre aimed atdeveloping products that are easy to reuse in accordance with Japan’s Small Electronic Appliance Recycling Act, which was enacted in
April 2013. Under the project, Casio conducted interviews on areas such as methods of disassembly with intermediate processors andmetal refiners who handle recycling of used small appliances. The company reflected the results of the interviews in its in-house design
manual to facilitate the development of products that are easy to reuse.

Compliance Relating to Power Consumption
There are also regulations on power consumption and efficiency for electrical and electronics products including external power supplies
and chargers, based on product categories and power source types. Companies must also meet various requirements relating to power
consumption and efficiency, including regulations that require the meeting of minimum standards and those that mandate the display of
power consumption information. Casio confirms the applicable regulations for each of its products, and carries out product development
and design to meet the requirements. Approval applications and reports are made to the relevant agencies as necessary.

Compliance Relating to Energy Saving and the Prevention of Global Warming
The following measures to comply with regulations on energy saving and the prevention of global warming are important efforts to achieve
Casio’s medium and long-term Environmental Vision and Environmental Declaration for the realization of a low-carbon society.

1. Act on the Rational Use of Energy
Casio Computer Co., Ltd., and certain group companies in Japan are working on the rationalization of energy use, as applicable business
entities under the Act on the Rational Use of Energy. In addition to the regular submission of reports and medium and long-term plans since
fiscal 2010, these Casio entities have set up management systems according to the determination standards relating to the rational use ofenergy.

CASIO SUSTAINABILITY REPORT 2013146

2. Act on the Promotion of Global Warming Countermeasures
Casio Computer Co., Ltd., and applicable group companies do not exceed the standards for emissions of greenhouse gases other than
CO2 arising from energy use set by Japan’s Act on the Promotion of Global Warming Countermeasures. They are complying withrequirements for the reporting of greenhouse gas emissions, by regularly submitting reports under the Act on the Rational Use of Energy.

3. Environmental Regulations in Tokyo
Since fiscal 2009, the Tokyo Cap-and-Trade Program for greenhouse gas emissions has been in effect for large business facilities (withenergy usage of more than 1,500 kl per year, crude oil equivalent) located in Tokyo. The system requires companies to reduce total
greenhouse gas emissions against standard emission amounts in each upcoming five-year reduction period.
A system for Reporting on Measures against Global Warming was also introduced in fiscal 2010, for all small and medium-size businessfacilities (with energy usage of less than 1,500 kl per year, crude oil equivalent) in Tokyo.
The applicable Casio Group sites understand the purpose of the program and are ascertaining current conditions, implementing measuresand preparing/submitting mandatory and voluntary reports based on the ISO 14001 management system.

Compliance relating to environmental information disclosure
There is a growing international movement calling for the creation of information disclosure standards for companies.
Along with the need for Japanese standards to coincide with the International Financial Reporting Standards (IFRS), there is a movement
calling for the provision of Management Commentaries (MC) as a form of disclosure of non-financial and corporate forecast information. In
other words, companies will need to disclose non-financial data which describes the connections between the company’s current situation,business strategy, risks, and financial performance, and other relevant information.
In order to provide its stakeholders with the proper environmental information in a way that it is easy to understand, Casio has the following
aims.
1. To adopt more accurate indices relating to environmental impact, and to provide comparable information
2. To provide non-financial information including environmental information that indicates the connections with corporate strategy
3. To explain the capability of environmental information to improve corporate performance
Along with working to disclose environmental information, Casio will promote international disclosure standards for non-financial
information, and work towards standardization.

Highlight: Participating in the Wal-Mart Sustainability Index Project
Sustainability is becoming a key word for manufacturers, retailers and suppliers. Recently,
retailers are aggressive about achieving their sustainability goals. Manufacturers and suppliers
need to respond and be actively involved in retailers’ initiatives. For example, Wal-Mart isactively engaged in sustainability initiatives. One of its initiatives is a Sustainability Index.
Wal-Mart conducted a Supplier Sustainability Assessment which is a brief survey to evaluate
supplier’s sustainability in 2009, and Casio responded to the survey.
Global Milestone Meeting hosted by
Wal-Mart in July 2009, in Arkansas(Photo courtesy of Wal-Mart)

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CASIO SUSTAINABILITY REPORT 2013

Shipping carton receives Chairman of Japan External Trade Organization (JETRO) Award

The Waterproof WACOPON shipping carton designed by Casio Computer Co., Ltd., for use in logistics received the Chairman of Japan
External Trade Organization (JETRO) Award at the Japan Packaging Contest 2012, one of Japan’s biggest packaging competitions, which
is organized by Japan Packaging Institute. The shipping carton used for transporting small products and components received a high rating
because it is collapsible, which allows it to be sent back folded when there is no cargo, and because it is waterproof, which means it isrobust enough to be used in the rain or outdoors.

Four products obtain Eco Rail Mark certification
On February 28, 2013, Casio Computer Co., Ltd., obtained the Eco Rail Mark certification which is awarded by the Ministry of Land,
Infrastructure, Transport and Tourism (MLIT) and the Railway Freight Association for four products: clocks, digital pianos, electronic
keyboards and electronic cash registers.

The company has positioned the reduction of CO2 emissions in its business activities as an important environmental initiative, and it isendeavoring to use rail transport as part of this. Rail transport produces about one sixth of the CO2 emissions of transport by truck, making
it an environmentally friendly method of transport with a low environmental impact. The Eco Rail Mark is awarded by the Eco Rail MarkManagement and Audit Committee whose members are selected by MLIT. It is awarded to a product when it uses rail for at least 30% of its
land freight transport for distances of 500km or more. Casio had already obtained the eco Rail Mark as a company* in October 2009, andhas now obtained additional certification for four products: clocks, digital pianos, electronic keyboards and electronic cash registers, whichmeet the above criteria. Casio Computer Co., Ltd. is the first company that has obtained the certification for these product categories.
* A company is eligible for the Eco Rail Mark when it uses rail for at least 15% of its land freight transport for distances of 500km or more
Proportion of rail transport used by certified products (ton-km performance for 500km or more)clocks60.1%

digital pianos

55.1%

electronic keyboards

49.7%

electronic cash registers

35.0%

CASIO SUSTAINABILITY REPORT 2013

148

Casio understands the importance of communicating with all of its stakeholders about environmental issues.
Elementary school students visit the Hachioji R&D Center
The Hachioji R&D Center at Casio Computer Co., Ltd., has developed an educational program forelementary school students in Japan. In August 2007, it began to offer learning opportunities that
include site tours and school visit programs. In addition to three schools in Hokkaido, the program
has so far provided learning opportunities to students at 17 schools in Tokyo.
The Hachioji R&D Center, the home of the program, is one of the most advanced environmentallyfriendly buildings in the Casio Group. Visitors can see the actual facilities the company is using
and understand methods used to reduce environmental impact.
The students not only learn about Casio, but also the fun of product creation, including the historyof the calculator. They even get a chance to take apart and reassemble calculators.

Touring the facilities at the Hachioji R&D
CenterCalculator disassembly and reassembly
activity

Adopting tulips and Ohga lotus plants
Hamura City, located in Tokyo, is promoting tulip cultivation as an effort to preserve fallow rice
fields and to make effective use of rice fields after their crops have been harvested. Casio has
been a foster-sponsor of these tulips since 2004. Every year, many tourists visit these tulip fields,
the largest in the Kanto region. Since 2006, Casio has also been a foster-sponsor involved in thepreservation and cultivation of Ohga lotus plants, an ancient form of lotus flower excavated fromruins dating back to ancient times (c. 400 BC~300 AD).

Colorful tulips in bloom

A full view of the tulip fields

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CASIO SUSTAINABILITY REPORT 2013

Exhibiting at Eco-Products 2012
Every year Casio exhibits at Eco-Products, the largest environmental trade show in Japan. Held at Tokyo Big Sight from December 13 to
15, 2012, Eco-Products 2012 marked its 14th year with more than 180,000 visitors in attendance and over 700 companies andorganizations setting up exhibits to display their environmentally friendly products and services.
Casio has been an exhibitor at the event since its inception, and this year’s exhibit featured initiatives aimed at realizing a low-carbon
society, building a recycling society and living in harmony with nature under the theme of “Protecting the Miracle that is Planet Earth.” Casio
showcased its Green Star Products and diverse environmental programs using “The Gift of the Sun and the Story of the Sea, the Sky andthe Earth” as its topic. On the stage, a cute alien character named Professor Lunar comically and enthusiastically presented the wonder
and importance of “the Miracle that is Planet Earth,” engaging active audience participation. In the Casio booth, the company featured
which parts of its products are environmentally friendly in a way that is more easily understood, using memorable slogans and stamp rallyinspired quizzes. Many children and students also visited the booth for the calculator assembly class, which is popular every year.
Casio’s stage featured an interactive quiz for visitors and a witty performance by a stand-up comedian describing everyday examples ofsaving energy and caring for the natural environment. The exhibition space provided accessible explanations of the environmentally friendly
aspects of Casio’s products through catchy slogans and a quiz in the form of a “stamp rally,” by which visitors collect stamps to win prizes.
In addition, Casio’s popular calculator assembly classes, held every year at the event, attracted a large number of children, teens, andstudents.
By continuing to exhibit at Eco-Products in the future, Casio will keep informing people about its wide range of environmental efforts andwork to promote new concepts and policies for approaching the environment.

“Protecting the Miracle that is Planet

An interactive stage for visitors“Calculator assembly class,” always

A panel using Casio’s digital painting

well-attended

technology to show nature conservation

Earth”

activities

Participation in CES
Casio exhibits every year at the Consumer Electronics Show (CES), one of the world’s largest events of its kind. In fiscal 2013, the show
was held in Las Vegas from January 8 to 11,2013. With a vast turnout of over 150,000 visitors, CES 2013 provided an excellent opportunity
for Casio to promote its innovative new products.
Casio exhibited Green Star Products (timepieces, musical instruments, scientific calculators and projectors) in an “environment” corner tocommunicate the company’s environmental initiatives under the concept of technology and ecology in harmony. Selling points were
provided on panels in terms of environmental specifications.
The projector exhibit space featured LED and laser hybrid light source LampFree projectors (LampFree is a Casio trademark for its
mercury-free projector lamps).

Presenting environmental initiatives

A presentation on the stage(Casio Signage)

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150

A LampFree™ projector

Supporting activities of the ICERCEver since the International Dolphin and Whale Conference was held in Japan in 1994, Casio’s
G-Shock and Baby-G brands have been working with the International Cetacean Education
Research Center (ICERC) Japan*1 in supporting education and research activities involving
dolphins and whales in Japan and around the world.
To convey the natural wonder and beauty of dolphins and whales to as many people as possible,
Casio has produced watches imprinted with the "All as One" slogan and logo, and supports theactivities of ICERC Japan.
*1: ICERC Japan (International Cetacean Education Research Center)
Go to website

Supporting the ICERC Ocean Environmental Classroom Project
Casio supports the ICERC Ocean Environmental Classroom Project. Support is provided for environmental lessons on dolphins, whales,
and the sea, where people of all ages, children to adults, can have fun learning by seeing, touching, and creating things. Casio will continue
to work to realize the sustainable coexistence of people, the ocean, and its dolphin and whale population.

Photo provided by ICERC Japan

Activities Receiving Ongoing Support

WWF Japan
Casio endorses the mission and action principles of the World Wide Fund for Nature Japan (WWF Japan), which is striving to build afuture where people and nature can live in harmony. Casio also supports the organization as a corporate member.

The Beautiful Tama River ForumIn fiscal 2012, Casio began providing support for the Beautiful Tama River 100-Year Plan, which aims to make the Tama River
beautiful through three main types of projects promoting the economy, environment, and cultural education.

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Initiative to Save Otoguro Cherry Trees
Otoguro cherry trees (scientific name: Cerasus serrulata, or "Komatsunagi") are a type of wild
cherry that comes into full bloom in mid April. They have white blossoms measuring 5 to 6 cm, andthe leaves emerge at the same time as the blooms.
In the late 19th century and early 20th century, this cherry tree variety was growing along the banksof the Fuefuki River, which flows through present-day Chuo City in Yamanashi Prefecture. The
Otoguro cherry gets its name from the Otoguro Embankment in the Otoguro District, where thetrees used to bloom. This variety of cherry tree has long been a favorite of the people in that
region.
However, with the improvement of the Fuefuki River in 1932, the Otoguro cherry trees were cut
down. Mr. Matsuhiko Tanaka of Otoguro District grew grafted seedlings from a few remaining
descendent trees, in order to bring back the historic Otoguro cherry. His activities eventually cameto fruition, and a volunteer group for saving the Otoguro cherry was established in 2002. The
Tamaho-cho (now Chuo City) Board of Education lifelong learning center led the whole communityin efforts to save and cultivate Otoguro cherry trees. This was achieved through cutting and grafting

Otoguro cherry trees on the grounds

methods using a few remaining descendents of the original trees.
As part of Kofu Casio’s environmental activities, the company offered to participate in the cultivating of this endangered type of cherry tree,
for the purpose of preserving the variety and beautifying the landscape around the plant. Kofu Casio received a donation of trees from
Tamaho-cho (now Chuo City) in 2004, and over the three subsequent years, the company planted more than 30 Otoguro cherry trees. All
the transplanted trees took root, and every spring they provide a beautiful display of blossoms for people to enjoy on the grounds of the
Kofu plant.
The Otoguro cherry serves as a symbol of the connection between Casio and the people of Chuo City. The company is proud of its earlyparticipation in helping to preserve the tree variety, as part of its biodiversity protection efforts on the local level. This is just one example of
Casio’s vision of harmony among people, businesses, and living things.
In fiscal 2013, the Kofu Office of Casio Business Service Co., Ltd., took over Kofu Casio’s effort.

CASIO SUSTAINABILITY REPORT 2013152

Independent Verification Report
28 June 2013
CASIO COMPUTER CO., LTD.
K.K. Satisfactory International
3-12-8 Hacchobori Chuo-ku Tokyo, Japan
Representative Director

Komatsu Takeshi

Objective of Verification
Casio Computer Co., Ltd (Casio) has commissioned K.K. Satisfactory International (KKSI) to conduct verification of
Casio’s environmental performance data of the financial year of 2012 (1 April 2012 – 31 March 2013) for inclusion in the
Casio Sustainability Report 2013(Report).
The aim of this verification is to consider the accuracy of environmental performance data detailed in the Report and toprovide a verification opinion based on objective evidence.

Scope
The scope of the verification work covers the activities including;
1) Scope1: Energy (fuels) consumption, CO2 emission, SF6 and Other GHGs consumption, GHG emission.
2) Scope2: Energy (Electricity) consumption, CO2 emission.
3) Scope3: CO2 emissions from Logistics, Sales and products use.
4) Others: Water consumption, VOC, PRTR substances, rainwater and waste water use, Air Pollutants (NOx, SOx,
Dust), VOC emissions, Waste water, BOD, waste generated, Landfill Disposal, Recycle waste.
The total number of 42 business sites is covered, which comprises of 3 production sites and 16 offices in Japan and 4
production sites and 19 offices overseas.

Methodology
KKSI has conducted its verification activities by document reviews, four site visits, and enquiries to person in charge
and verification of the documents to determine the following.
The reliability and adequacy of data collection and aggregation systems and related processes.



The relevance of the scope of data selected for inclusion in the report.



The reliability of measured and collected data and accuracy of aggregated data.

The validity of conclusions drawn from and reported against aggregated data.

The verification is based on the following standards;


Scope 1, 2 and 3: ISO14064-3.



Others: KKSI’s own standard.

Verification Opinion


There is no material error found in the reported data.

All errors in reported data identified during the verification process have been duly corrected.

The data measurement, collection and aggregation systems are credible and appropriately operated.

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CASIO SUSTAINABILITY REPORT 2013

The opinion presented here was written based on the content of this report (website version) and interviews with
Casio personnel responsible for environmental, procurement, human resources, and CSR initiatives. Casio is
now at a stage where the plan-do-check-act (PDCA) management cycle, with a focus on reducing the company’senvironmental impact, should be used to expand CSR initiatives group-wide.
Commendable efforts by Casio
With respect to its medium- to long-term environmental management policy, Casio has set greenhouse gas targets for fiscal 2021 and
2051 and has expanded the reduction of environmental impact to include packaging and distribution. This is in line with its commitment to“realizing a low-carbon society,” “building a recycling society,” and “living in harmony with nature and preserving biodiversity.” It isespecially commendable that Casio started surveys to verify that the paper used in its user manuals, pamphlets, and other publications ismade from recycled paper, certified timber, and legally logged timber. In addition to efforts within the group and supply chain, I havestrong expectations that Casio will develop initiatives that cover the entire product lifecycle including the customer stage—such asproviding instructions on optimal product usage and improving the recycling rate at the time of disposal—and also disclose information on
the progress of those initiatives.
As an initiative to improve supplier CSR, Casio conducted a questionnaire using a five-point scale on issues such as reducing
environmental impact and protecting the human rights of employees, and responses were received from 159 suppliers in China. By
providing feedback on the results, making audit visits to some suppliers, and providing case studies at meetings, Casio continued to seek
to ascertain and quantify the situation of CSR at its suppliers. In the future, I recommend that Casio ask suppliers to provide data andother verifiable proof in their self-assessment of initiatives, and work towards making the specific measures and issues even more readily
visible. I also hope that Casio will further advance its system for sharing effective measures, giving awards to outstanding suppliers, andfostering communication to solve problems.

Points for improvement while commending progress to dateWith respect to the CSR implementation system, it is admirable that Casio conducted a survey of 32 group companies in and outside
Japan in order to advance initiatives focused on human rights and fair operating practices, two of the ISO 26000 core subjects. However,I continue to have strong expectations that Casio will, the same as with its environmental management policy, verify issues and put
measures into practice based on the establishment of medium-term targets and indicators, taking into account the future global economy
and the trends at competitors.
Regarding the fostering of a CSR culture throughout the group, it is commendable that Casio maintains a CSR series in its in-housemagazine, Casio. In the future, I hope that team leaders who have responsibility for implementing CSR globally will be appointed to eachsite and department. Again, I strongly urge Casio to convey messages from senior management, translated into multiple languages, toCasio sites around the world and to increase opportunities for ensuring that employees on the frontlines, at headquarters, and at sitesaround the world get a rapid and detailed understanding of the company’s initiatives.
Regarding efforts to create more supportive workplaces for employees, it is commendable that 4.72% of employees at Casio Computer
Co., Ltd., made use of the company’s leave and reduced working hours programs for childcare and nursing care. With an expected
increase in employees that continue to work while caring for a family member at home or face other challenges outside of work, thecompany needs to provide more opportunities for its employees to hear from users of these care support programs and ask questions
about any topic.
In the area of employing persons with disabilities, it is commendable that Casio’s average consolidated performance in Japan is once
again above the legally mandated rate of employment. I strongly urge the company to promote community creation efforts based on
disability and job types and to continue making workplaces more supportive.

CASIO SUSTAINABILITY REPORT 2013154

Points for improvement
Concerning the utilization and improvement of human resources diversity throughout the group, looking at the entire group in the near
future, there should be a portfolio of global human resources that can move across divisional and company boundaries. A system needs
to be developed for overseeing and promoting employee hiring, training, and exchange. Human resources databases should also be
improved and expanded for a comprehensive picture of staff in each country. Using efforts such as these, I strongly recommend that
Casio move forward with the creation of systems and strategies for the active utilization of human resources diversity, as a truly global
company.
Regarding the environmental impact reduction data in this report, it is commendable that details are provided on the principal sites in andoutside Japan including group companies. My hope, however, would be that Casio will continue to increase the level of accuracy of groupreporting, not only for environmental data, but also for personnel and procurement initiatives and data.

Hideto Kawakita, Chief Executive Officer
International Institute for Human, Organization and the Earth (IIHOE)Profile of IIHOE: International Institute for Human, Organization and the Earth (IIHOE) is a
nonprofit organization (NPO) that has been supporting NPO management and CSR capacity
building since 1994.
http://blog.canpan.info/iihoe/(in Japanese)

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CASIO SUSTAINABILITY REPORT 2013

By self-declaration, Casio’s CSR information disclosure corresponds to GRI Application Level B.

G3.1
Disclosure
1
1.1

1.2

2

Description

Related Page

Strategy and Analysis
Statement from the most senior decisionmaker of the organization (e.g.,CEO, chair, or equivalent senior position) about the relevance ofsustainability to the organization and its strategy.

Message from the President
Environmental Executive Message

Description of key impacts, risks, and opportunities.

Message from the President
Risk management
Social Initiatives: Action Plans andPerformance
Environmental Executive Message
New environmental management
initiatives
Casio’s fiscal 2014 environmental
management policy for therealization of a sustainable society
Casio Environmental Vision 2050
and Casio Environmental
Declaration 2020
Casio Green Star Plan
Climate Change Action
Green Star Products
Environmental Action Plan (Targets
and Performance)

Organizational Profile

2.1

Name of the organization.

Business Overview

2.2

Primary brands, products, and/or services.

Business Overview
Corporate Report

2.3

Operational structure of the organization, including main divisions,operating companies, subsidiaries, and joint ventures.

Business Overview

2.4

Location of organization’s headquarters.

Business Overview

2.5

Number of countries where the organization operates, and names ofcountries with either major operations or that are specifically relevant to thesustainability issues covered in the report.

Business Overview

2.6

Nature of ownership and legal form.

Business Overview

2.7

Markets served (including geographic breakdown, sectors served, andtypes of customers/beneficiaries).

Business Overview

2.8

Scale of the reporting organization, including:• Number of employees;• Number of operations;• Net sales (for private sector organizations) or net revenues (for public
sector organizations);• Total capitalization broken down in terms of debt and equity (for private
sector organizations); and• Quantity of products or services provided.

Business Overview
Prioritizing local hiring andpromotion at subsidiaries outsideJapan

CASIO SUSTAINABILITY REPORT 2013

156

2.9

Significant changes during the reporting period regarding size, structure, orownership including:• The location of, or changes in operations, including facility openings,
closings, and expansions; and• Changes in the share capital structure and other capital formation,
maintenance, and alteration operations (for private sector organizations).

None

2.10

Awards received in the reporting period.

External Evaluation

3.1

Reporting period (e.g., fiscal/calendar year) for information provided.

Scope of the report

3.2

Date of most recent previous report (if any).

Scope of the report

3.3

Reporting cycle (annual, biennial, etc.)

Scope of the report

3.4

Contact point for questions regarding the report or its contents.

Inquiries

3

Report Parameters

Report Profile

Report Scope and Boundary

3.5

Process for defining report content, including:• Determining materiality;• Prioritizing topics within the report; and• Identifying stakeholders the organization expects to use the report.

Editorial Policy

3.6

Boundary of the report (e.g., countries, divisions, subsidiaries, leased
facilities, joint ventures, suppliers).

Scope of the report

3.7

State any specific limitations on the scope or boundary of the report.

Scope of the report
Material Balance

3.8

Basis for reporting on joint ventures, subsidiaries, leased facilities,
outsourced operations, and other entities that can significantly affectcomparability from period to period and/or between organizations.

None

3.9

Data measurement techniques and the bases of calculations, including
assumptions and techniques underlying estimations applied to thecompilation of the Indicators and other information in the report.

Promoting health and safety
initiatives for employees
Climate Change Action
Environmental Data
Environmental Accounting

3.10

Explanation of the effect of any re-statements of information provided inearlier reports, and the reasons for such re-statement (e.g., mergers/
acquisitions, change of base years/periods, nature of business,measurement methods).

Environmental Performance

3.11

Significant changes from previous reporting periods in the scope, boundary,Noneor measurement methods applied in the report.

GRI content index
3.12

Table identifying the location of the Standard Disclosures in the report.

G3.1 GRI Content Index

Policy and current practice with regard to seeking external assurance forthe report. If not included in the assurance report accompanying thesustainability report, explain the scope and basis of any external assurance
provided. Also explain the relationship between the reporting organizationand the assurance provider(s).

Third-party verification

Assurance

3.13

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CASIO SUSTAINABILITY REPORT 2013

４ Governance, Commitments, and Engagement
Governance
4.1

Governance structure of the organization, including committees under thehighest governance body responsible for specific tasks, such as setting
strategy or organizational oversight.

Corporate Governance

4.2

Indicate whether the Chair of the highest governance body is also an
executive officer (and, if so, their function within the organization’s
management and the reasons for this arrangement).

Corporate Governance

4.3

For organizations that have a unitary board structure, state the number andgender of members of the highest governance body that are independent
and/or non-executive members.

Corporate Governance

4.4

Mechanisms for shareholders and employees to provide recommendations
or direction to the highest governance body.

Corporate Governance

4.5

Linkage between compensation for members of the highest governancebody, senior managers, and executives (including departurearrangements), and the organization’s performance (including social andenvironmental performance).

Annual Securities Report
Corporate Governance Report※

Processes in place for the highest governance body to ensure conflicts ofinterest are avoided.

In the event that a Casio director
engages in a conflict-of-interest
transaction, measures are to betaken based on the law, including
measures requiring a resolution of
the board of directors.

4.7

Process for determining the composition, qualifications, and expertise of
the members of the highest governance body and its committees, including
any consideration of gender and other indicators of diversity.

As part of its efforts to appoint thebest people to corporate officer
positions, Casio ascertains whether
an individual has the qualities
required, selecting from a list of
candidates who have demonstrated
outstanding performance andcharacter. Furthermore, humanresources with officer candidate
potential are developed through theright work experience, including
management of affiliated companies
and management in different fields.

4.8

Casio’s Corporate Creed andApproach to CSR
Environmental VisionInternally developed statements of mission or values, codes of conduct,
and principles relevant to economic, environmental, and social performance Casio Green Star Plan
Green Star Products
and the status of their implementation.
Biodiversity
Casio Group Code of Conduct

4.9

Procedures of the highest governance body for overseeing theorganization’s identification and management of economic, environmental,
and social performance, including relevant risks and opportunities, andadherence or compliance with internationally agreed standards, codes ofconduct, and principles.

CSR Implementation System
Corporate Governance
Environmental Management

4.10

Processes for evaluating the highest governance body’s own performance,
particularly with respect to economic, environmental, and social
performance.

CSR Implementation System

4.6

CASIO SUSTAINABILITY REPORT 2013158

Commitments to External Initiatives
4.11

Explanation of whether and how the precautionary approach or principle isaddressed by the organization.

Compliance and Risk Management
Environmental Compliance

4.12

Externally developed economic, environmental, and social charters,
principles, or other initiatives to which the organization subscribes orendorses.

United Nations Global Compact

4.13

Memberships in associations (such as industry associations) and/or
national/international advocacy organizations in which the organization:• Has positions in governance bodies;• Participates in projects or committees;• Provides substantive funding beyond routine membership dues; or• Views membership as strategic.

United Nations Global Compact

Stakeholder Engagement
List of stakeholder groups engaged by the organization.

Main stakeholders of the Casio
Group

Basis for identification and selection of stakeholders with whom to engage.

Working to build a more sustainableworld
Main stakeholders of the Casio
Group

4.16

Approaches to stakeholder engagement, including frequency ofengagement by type and by stakeholder group.

Feature Story Casio’s Commitment
to Human Rights
Ensuring customer satisfaction
Responsibilities to Suppliers
Responsibilities to Society
Environmental Communication

4.17

Key topics and concerns that have been raised through stakeholder
engagement, and how the organization has responded to those key topics
and concerns, including through its reporting.

Feature Story Casio’s Commitment
to Human Rights
Ensuring customer satisfaction

4.14

4.15

5 Management Approach and Performance Indicators
Economic
Investor Relations

Disclosure on Management Approach
aspect: Economic Performance

EC1

CORE

Direct economic value generated and distributed, including revenues,
operating costs, employee compensation, donations and other community
investments, retained earnings, and payments to capital providers andgovernments.

EC2

CORE

Financial implications and other risks and opportunities for theorganization’s activities due to climate change.

EC3

CORE

Coverage of the organization’s defined benefit plan obligations.

EC4

CORE

Significant financial assistance received from government.

Annual Securities Report

Climate Change Action

Annual Securities Report

aspect: Market Presence
EC5

ADD

Range of ratios of standard entry level wage by gender compared to local
minimum wage at significant locations of operation.

EC6

CORE

Policy, practices, and proportion of spending on locally-based suppliers at
significant locations of operation.

EC7

CORE

Procedures for local hiring and proportion of senior management hired fromthe local community at locations of significant operation.

159

Responsibilities to Suppliers

CASIO SUSTAINABILITY REPORT 2013

aspect: Indirect Economic Impacts
EC8

CORE

Development and impact of infrastructure investments and services
provided primarily for public benefit through commercial, in-kind, or pro
bono engagement.

EC9

ADD

Understanding and describing significant indirect economic impacts,
including the extent of impacts.

Responsibilities to Society

Environmental

Disclosure on Management Approach

Environmental Vision
Casio Green Star Plan
Climate Change Action
Environmental Action Plan (Targets
and Performance)

aspect: Materials
EN1

CORE

Materials used by weight or volume.

Material Balance

EN2

CORE

Percentage of materials used that are recycled input materials.

Material Balance

aspect: Energy
EN3

CORE

Direct energy consumption by primary energy source.

Material Balance

EN4

CORE

Indirect energy consumption by primary source.

Business Processes
Material Balance

EN5

ADD

Energy saved due to conservation and efficiency improvements.

Business Processes

EN6

ADD

Initiatives to provide energy-efficient or renewable energy based products
and services, and reductions in energy requirements as a result of these
initiatives.

Climate Change Action

EN7

ADD

Initiatives to reduce indirect energy consumption and reductions achieved.

Business Processes

Material Balance
Environmental Performance

aspect: Water
EN8

CORE

Total water withdrawal by source.

EN9

ADD

Water sources significantly affected by withdrawal of water.

EN10

ADD

Percentage and total volume of water recycled and reused.

Environmental Performance

aspect: Biodiversity
EN11

CORE

Location and size of land owned, leased, managed in, or adjacent to,protected areas and areas of high biodiversity value outside protectedareas.

EN12

CORE

Description of significant impacts of activities, products, and services on
biodiversity in protected areas and areas of high biodiversity value outside
protected areas.

EN13

ADD

Habitats protected or restored.

Environmental Communication

EN14

ADD

Strategies, current actions, and future plans for managing impacts on
biodiversity.

Biodiversity

EN15

ADD

Number of IUCN Red List species and national conservation list species
with habitats in areas affected by operations, by level of extinction risk.

CASIO SUSTAINABILITY REPORT 2013160

aspect: Emissions, Effluents, and Waste
EN16

CORE

Total direct and indirect greenhouse gas emissions by weight.

Climate Change Action
Material Balance
Environmental Performance

EN17

CORE

Other relevant indirect greenhouse gas emissions by weight.

Climate Change Action
Material Balance
Environmental Performance
Environmental Vision
Casio Green Star Plan
Climate Change Action
Business Processes

EN18

ADD

Initiatives to reduce greenhouse gas emissions and reductions achieved.

EN19

CORE

Emissions of ozone-depleting substances by weight.

EN20

CORE

NO, SO, and other significant air emissions by type and weight.

Material Balance
Environmental Performance

EN21

CORE

Total water discharge by quality and destination.

Material Balance

EN22

CORE

Total weight of waste by type and disposal method.

Material Balance
Environmental Performance

EN23

CORE

Total number and volume of significant spills.

EN24

ADD

Weight of transported, imported, exported, or treated waste deemedhazardous under the terms of the Basel Convention Annex I, II, III, and VIII,
and percentage of transported waste shipped internationally.

EN25

ADD

Identity, size, protected status, and biodiversity value of water bodies andrelated habitats significantly affected by the reporting organization’sdischarges of water and runoff.

aspect: Products and Services
Casio Green Star Plan
Climate Change Action
Material Balance
Products

EN26

CORE

Initiatives to mitigate environmental impacts of products and services, andextent of impact mitigation.

EN27

CORE

Percentage of products sold and their packaging materials that arereclaimed by category.

Material Balance

Monetary value of significant fines and total number of non-monetary
sanctions for noncompliance with environmental laws and regulations.

Environmental Management

Significant environmental impacts of transporting products and other goods
and materials used for the organization’s operations, and transporting
members of the workforce.

Material Balance

Total environmental protection expenditures and investments by type.

Environmental Accounting

aspect: Compliance
EN28

ADD

aspect: Transport
EN29

ADD

aspect: Overall
EN30

ADD

161

CASIO SUSTAINABILITY REPORT 2013

Labor Practices and Decent Work

Disclosure on Management Approach

Charter of Creativity for Casio andCasio Common Commiment
Effectively appointing and deploying
employees
Occupational health and safety
activities
Casio Group Code of Conduct
Social Initiatives: Action Plans andPerformance

Prioritizing local hiring andpromotion at subsidiaries outsideJapan

aspect: Employment
LA1

CORE

Total workforce by employment type, employment contract, and region,broken down by gender.

LA2

CORE

Total number and rate of new employee hires and employee turnover by
age group, gender, and region.

LA3

ADD

Benefits provided to full-time employees that are not provided to temporary
or part-time employees, by significant locations of operation.

LA15

CORE

Return to work and retention rates after parental leave, by gender.

Building Workplaces for a Diverse
Workforce
Building Workplaces for a Diverse
Workforce

aspect: Labor/Management Relations
LA4

CORE

Percentage of employees covered by collective bargaining agreements.

LA5

CORE

Minimum notice period(s) regarding operational changes, including whether
it is specified in collective agreements.

Annual Securities Report

aspect: Occupational Health and Safety
LA6

ADD

Percentage of total workforce represented in formal joint management–
worker health and safety committees that help monitor and advise on
occupational health and safety programs.

LA7

CORE

Rates of injury, occupational diseases, lost days, and absenteeism, andnumber of work-related fatalities, by region and by gender.

Promoting health and safety
initiatives for employees

LA8

CORE

Education, training, counseling, prevention, and risk-control programs inplace to assist workforce members, their families, or community members
regarding serious diseases.

Promoting health and safety
initiatives for employees

LA9

ADD

Health and safety topics covered in formal agreements with trade unions.

Promoting health and safety
initiatives for employees

aspect: Training and Education
LA10

CORE

Average hours of training per year per employee by gender, and by
employee category.

Effectively appointing and deploying
employees

LA11

ADD

Programs for skills management and lifelong learning that support thecontinued employability of employees and assist them in managing career
endings.

Effectively appointing and deploying
employees

LA12

ADD

Percentage of employees receiving regular performance and careerdevelopment reviews, by gender.

aspect: Diversity and Equal Opportunity
LA13

CORE

Composition of governance bodies and breakdown of employees per
employee category according to gender, age group, minority groupmembership, and other indicators of diversity.

CASIO SUSTAINABILITY REPORT 2013162

Building Workplaces for a Diverse
Workforceaspect: Equal Remuneration for Women and Men
LA14

CORE

Ratio of basic salary and remuneration of women to men by employee
category, by significant locations of operation.

Effectively appointing and deploying
employees

Disclosure on Management Approach

Feature Story Casio’s Commitment
to Human Rights
Socially responsible procurement at
Casio
Human Rights (Respect for Human
Rights, Prohibition of Discrimination)
Casio Group Code of Conduct

Human Rights

aspect: Investment and Procurement Practices
HR1

CORE

Percentage and total number of significant investment agreements andcontracts that include clauses incorporating human rights concerns, or thathave undergone human rights screening.

HR2

CORE

Percentage of significant suppliers, contractors, and other business
partners that have undergone human rights screening, and actions taken.

HR3

CORE

Total hours of employee training on policies and procedures concerning
aspects of human rights that are relevant to operations, including thepercentage of employees trained.

Responsibilities to Suppliers

aspect: Non-Discrimination
HR4

CORE

Total number of incidents of discrimination and corrective actions taken.

aspect: Freedom of Association and Collective Bargaining
HR5

CORE

Operations and significant suppliers identified in which the right to exercise
freedom of association and collective bargaining may be violated or atsignificant risk, and actions taken to support these rights.

aspect: Child Labor
HR6

CORE

Operations and significant suppliers identified as having significant risk forincidents of child labor, and measures taken to contribute to the effective
abolition of child labor.

Responsibilities to Suppliers
Human Rights (Respect for Human
Rights, Prohibition of Discrimination)

aspect: Forced and Compulsory Labor
HR7

CORE

Operations and significant suppliers identified as having significant risk forincidents of forced or compulsory labor, and measures to contribute to theelimination of all forms of forced or compulsory labor.

Responsibilities to Suppliers
Human Rights (Respect for Human
Rights, Prohibition of Discrimination)

aspect: Security Practices
HR8

ADD

Percentage of security personnel trained in the organization’s policies orprocedures concerning aspects of human rights that are relevant tooperations.

aspect: Indigenous Rights
HR9

ADD

Total number of incidents of violations involving rights of indigenous people
and actions taken.

aspect: Assessment
HR10

CORE

Percentage and total number of operations that have been subject tohuman rights reviews and/or impact assessments.

aspect: Remediation
HR11

CORE

Number of grievances related to human rights filed, addressed andresolved through formal grievance mechanisms.

163

CASIO SUSTAINABILITY REPORT 2013

Society
Philosophy on Social Contribution
Casio Group Code of Conduct
Social Initiatives: Action Plans andPerformance

Disclosure on Management Approach

aspect: Local Communities
SO1

CORE

Percentage of operations with implemented local community engagement,
impact assessments, and development programs.

SO9

CORE

Operations with significant potential or actual negative impacts on local
communities.

SO10

CORE

Prevention and mitigation measures implemented in operations withsignificant potential or actual negative impacts on local communities.

aspect: Corruption
SO2

CORE

Percentage and total number of business units analyzed for risks related tocorruption.

Compliance and Risk Management

SO3

CORE

Percentage of employees trained in organization’s anti-corruption policies
and procedures.

Casio Group Code of Conduct

SO4

CORE

Actions taken in response to incidents of corruption.

aspect: Public Policy
SO5

CORE

Public policy positions and participation in public policy development andlobbying.

SO6

ADD

Total value of financial and in-kind contributions to political parties,
politicians, and related institutions by country.

aspect: Anti-Competitive Behavior
SO7

ADD

Total number of legal actions for anticompetitive behavior, anti-trust, andmonopoly practices and their outcomes.

aspect: Compliance
SO8

CORE

Monetary value of significant fines and total number of non-monetary
sanctions for noncompliance with laws and regulations.

Product Responsibility
Quality Assurance
Casio Group Code of Conduct
Social Initiatives: Action Plans andPerformance

Disclosure on Management Approach

aspect: Customer Health and Safety
PR1

CORE

Life cycle stages in which health and safety impacts of products andservices are assessed for improvement, and percentage of significant
products and services categories subject to such procedures.

Offering Users Peace of Mind

PR2

ADD

Total number of incidents of non-compliance with regulations and voluntary
codes concerning health and safety impacts of products and services
during their life cycle, by type of outcomes.

Offering Users Peace of Mind

CASIO SUSTAINABILITY REPORT 2013164

aspect: Customer Health and Safety
PR3

CORE

Type of product and service information required by procedures, andpercentage of significant products and services subject to such information
requirements.

PR4

ADD

Total number of incidents of non-compliance with regulations and voluntary
codes concerning product and service information and labeling, by type ofoutcomes.

ADD

Practices related to customer satisfaction, including results of surveys
measuring customer satisfaction.

PR5

Green Star Products

Activities to Improve Customer
Satisfaction
Customer Support Center/ Ensuring
customer satisfaction

aspect: Marketing Communications
PR6

CORE

Programs for adherence to laws, standards, and voluntary codes related tomarketing communications, including advertising, promotion, andsponsorship.

PR7

ADD

Total number of incidents of non-compliance with regulations and voluntary
codes concerning marketing communications, including advertising,promotion, and sponsorship by type of outcomes.

Initiatives for compliance with fairtrade and advertising laws

aspect: Customer Privacy
PR8

ADD

Total number of substantiated complaints regarding breaches of customer
privacy and losses of customer data.

aspect: Compliance
PR9

CORE

Monetary value of significant fines for noncompliance with laws andregulations concerning the provision and use of products and services.

※For Casio’s Corporate Governance Report, visit the Tokyo Stock Exchange website (in Japanese only)

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CASIO SUSTAINABILITY REPORT 2013