Sysmex

Sustainability Report

2014
Full Version

Sysmex Sustainability Report 2014

Full Version

Contents
Editorial Policy

2

Message from the Chairman and CEO

3

Sysmex at a Glance5

Corporate Philosophy

7

Highlight1

9Highlight2

11

Highlight3

13

Overview of CSR Initiatives

15

Global Topics

16

Management

25

Involvement with Customers

35

Involvement with Employees

42

Involvement with Business Partners

51

Involvement with Shareholders

54

Corporate Citizenship Activities

56

Promoting a Healthy Society

57

Cooperating with Local Communities

59

Environmental Conservation Activities

61

Environmental Management

62

Environmental Plans and Performance

64

Green Procurement

70

Environmental Data

72

External Evaluation

73

Guideline Comparative Table

78

Independent Opinion

89

1

Editorial Policy
Sysmex publishes the annual “Sysmex Sustainability Report” in the hopes of communicating its
approaches and activities concerning corporate social responsibility (CSR) to stakeholders andfacilitating dialog with them. This report is available as a full version and in digest form, as well ason the Company’s website.
Informational Content of Each Media

Sysmex Sustainability Report 2014 (Full Version), CSR Site: Comprehensive information
Sysmex Sustainability Report 2014 (Digest Version): Excerpts of key information only
Organizations covered
Sysmex Group (Sysmex Corporation and its subsidiaries both in Japan and abroad). In this report,“Sysmex” refers to the Sysmex Group as a whole. “Sysmex Corporation” refers to the Company ona stand-alone basis.
Period covered
Primarily fiscal 2013 (from April 1, 2013 to March 31, 2014). Some activities conducted outside
this period are also included.
Guidelines referenced

The Japanese Ministry of the Environment's Environmental Reporting Guidelines (2012ed.)
The Global Reporting Initiative (GRI)'s Sustainability Reporting Guidelines, Edition 3.1
Date of publication
August 2014(revised September 2014)
Previous version: September 2013
Inquiries about this report
CSR Promotion Department, Corporate Business Planning Division, Sysmex Corporation
1-5-1, Wakinohama-Kaigandori, Chuo-ku, Kobe, Hyogo, 651-0073, Japan
Tel +81-78-265-0500, Fax +81-78-265-0524

2

Message from the Chairman and CEO

We Aim to Help Resolve Global Healthcare Issues andBuild Trust and Confidence among Our Stakeholders.
We strive to contribute to society through businessactivities throughout the world.

prevention, early-stage detection and the determination oftreatment methods. We strive to swiftly address thesechanges in our environment and respond to people’s desire
to remain healthy.
In ﬁscal year 2013, we welcomed two new members into
the Group—Germany’s Inostics GmbH (currently, Sysmex
Inostics GmbH) and Partec GmbH—as part of our eﬀort tocontinue developing and growing in line with the changing
healthcare markets and contribute to the resolution ofvarious healthcare issues. Sysmex is working toward therealization of personalized medicine: providing healthcare
optimized for individual patients, by combining our own
diagnostic technologies and networks with Inostics’ highly
sensitive technology for detecting cancer genes in the blood,and the expertise and development capabilities of Partec,

Since our founding in 1968, we have created a wide spectrumof products and services in the in-vitro diagnostics ﬁeld
based on advanced technologies. Fiscal year 2013 marked
Sysmex’s 45th anniversary, and the Company’s products
are currently used in more than 170 countries around theworld. In recent years, the environment surrounding thehealthcare business has changed dramatically. In emerging
markets, healthcare needs are growing against a backdropof economic development and expanding populations.
Meanwhile, in developed countries birthrates are falling,
populations are aging and attitudes toward health are
growing more diverse. In this environment, every year
testing plays an increasingly important role in illness3

a pioneer in ﬂow cytometry* technology. Partec also has astrong presence in the area of testing for infectious diseases,
such as HIV and malaria. Going forward, Sysmex will leverage
its network to contribute to the advancement of healthcare
in emerging markets and developing countries. In addition,
Sysmex and Kawasaki Heavy Industries, Ltd., have jointly
established Medicaroid Corporation to conduct marketing
activities with a view to commercializing medical robots.
In accordance with our mission, “Shaping theadvancement of healthcare,” as stated in the Sysmex Way,
the corporate philosophy for the Sysmex Group, throughour business activities Sysmex will contribute to a healthy
life for people around the world.

forest land where the ecological balance had declined, aspart of our overall forest management activities we havebeen clearing away underbrush, thinning the trees andmaking trails. This is part of an ongoing initiative aimed atmaking it easy for local residents and others to come into
contact with wildlife. As a company involved in healthcare,
we also contribute to a healthy society through sports. We
have been special sponsor of the Kobe Marathon since its
inauguration. The marathon was held for the third time in
November 2013, and some 300 Group employees and theirfamily members provided support, volunteering andencouraging the 20,000 runners that participated in theevent. We will support the fourth Kobe Marathon in November
2014, invigorating the Kobe community.

* Flow cytometry: method involving the ﬂow dispersion of minute particles andthe use of laser light to optically analyze minute ﬂows. Used primarily to observe
individual cells.

We have launched a new Group Mid-Term
Management Plan, and are shoring up our
foundations for the future.

We are taking part in a host of activities designed tobuild trust and confidence among our stakeholders.

Sysmex launched the new Group Mid-Term Management
Plan in April 2013 with the goal of maintaining our highlevel of growth and further enhancing proﬁtability.
The plan is aimed at building a foundation for future
growth by reinforcing our business promotion structures
according to the business unit structure, continuously
investing in R&D and strengthening production capacity by
improving production bases. By transforming to a corporate
culture that emphasizes speed and execution, the Group
Mid-Term Management Plan aims to propel Sysmex forward
toward the next corporate stage.

The Sysmex Way emphasizes the importance we place onbuilding trust and conﬁdence among all our stakeholders.
In April 2013, Sysmex established the Mid-Term CSR Plan
based on the 10 principles of the United Nations Global
Compact, which the Company joined in 2011, and the ISO
26000 international standards for social responsibility.
Under this plan, we are making steady progress toward
fulﬁlling our corporate social responsibility.
In ﬁscal year 2013, we also took a signiﬁcant step
forward in improving our logistics process, which we had
been working on for some time. We reviewed our productpackaging materials, localized procurement of raw materials
for reagents, established a new warehouse, and are making
use of the local Port of Kobe. As well as boosting distribution
eﬃciency and reducing costs, these moves to reconﬁgure
our global logistics structure and achieve overall optimization
help to curtail CO2 emissions.
In addition to business-related initiatives, in the city ofOno, Hyogo Prefecture, where we operate a reagent factory,
we have created the new “Sysmex Forest.” To rejuvenate

Sysmex will continue working to achieve the sustainable
development of the Group and the global community. We
would like to ask our stakeholders for their continued
support and understanding of all our endeavors.
July 2014
Hisashi Ietsugu
Chairman and CEO

Note: In this report, “Sysmex” refers to the “Sysmex Group,” whereas “Sysmex Corporation” indicates the company on a non-consolidated basis.

4Sysmex at a Glance

Sysmex is a Global Provider of Diagnostics Products
and Services.
In-vitro diagnostic testing of patient blood and urine samples plays an important role in conﬁrming a patient’s state of health or determining acourse of treatment. Sysmex supports healthy lives worldwide by providing a variety of in-vitro diagnostic instruments and reagentsin more than 170 countries in an integrated system from research and development through production, sales and after-sales support.

Integrated System from R&D to Production, Sales and After-sales Support
R&D

Production

Sales

After-sales Support

Creating valuable healthcare
testing and diagnostic
technologies

Ensuring high quality
and a stable product supply

Providing products
and services to more than170 countries

Responding accurately
to each and every inquiry

Global Network Providing a Variety of Products and Services in More than 170 Countries
EMEA (Europe, the Middle East, Africa)
Subsidiaries: 32
Number of employees: 1,488

Americas

China

Subsidiaries: 6
Number of employees: 796

Subsidiaries: 4
Number of employees: 316

Japan
Sysmex Corporation
Subsidiaries: 6
Number of employees: 2,344

Asia Pacific
Subsidiaries: 12
Number of employees: 457(As of March 31, 2014)

5

Sales

R&D

Production

Regional
HeadquartersSysmex products are in use near you.
1 Hospitals
Our products are used inhematology and other fields
in outpatient/in-hospitalcheckups and complete
physical examinations todiscover changes orabnormalities in organs
and systems.

CS-5100
Automated Blood Coagulation Analyzer

RD-100i
Gene Ampliﬁcation Detector

HISCL-5000
Automated Immunoassay System

3

1
3
XN-Series XN-2000
Automated Hematology Analyzer

1
2
1

XN-Series Reagents

2 Animal

3 Sports Training

Hospitals

Our ASTRIM FIT is used fordaily training programs andnutritional maintenance toregularly check theestimated hemoglobin
levels of athletes in training
programs in gyms and school
sports teams.

Our products are used inhematological testing ofdogs, cats and other animals.

pocH-100iV Diﬀ
Automated Hematology Analyzer

6

ASTRIM FIT
Health Monitoring Analyzer

Corporate Philosophy

Corporate Philosophy

Core Behaviors
To our Customers
We deliver reassurance to our customers, through unmatched quality, advanced technologies, superior support,
and actions that consistently reflect the viewpoint of our customers. We constantly look out for our customers'true needs, and seek to generate new solutions to satisfy those needs.

To our Employees
We honor diversity, respect the individuality of each employee, and provide them with a workplace where they canrealize their full potential. We value the spirit of independence and challenge, provide employees with opportunities
for self-fulfillment and growth, and reward them for their accomplishments.

To our Business Partners
We deliver commitment to our client companies through broad-ranging partnerships. We strive to be a company
that can grow in step with our trade partners, through respect and mutual trust.

To our Shareholders
Our shareholders can rest assured that we will continue to improve the soundness and transparency of our management
policies, while promoting information disclosure and close communications. We commit ourselves to a consistent
yet innovative style of management, in order to achieve sustainable growth and increased shareholder value.

To Society
We carry out our business in strict compliance with laws and regulations, as well as in adherence to high ethicalstandards. As a responsible member of society, we play an active role in resolving environmental issues andother problems that impact our society today.

1

2

3

7

Holding Value Quest (VQ) Activities to Put the“Sysmex Way” into Practice throughout the GroupVQ45 provided a forum for devoting extensive
thought to this objective, strengthening ourpractice of the corporate philosophy.

Group employees around the world participatedearnestly and wisely.
In addition to Japan, Group employees from around the world
participated in VQ45 and propelled the activities forward.
Members of Sysmex Korea, which joined the Sysmex Group in
April 2013, participated enthusiastically. Employees fromvarious divisions gathered at business oﬃces throughout
Japan, taking this as an opportunity to meet and discuss freely.
This structure evolved into cross-functional proposals acrossdepartments, centering on young employees. An internalsocial networking service (SNS) was used to exchange opinions
across long distances and organizational boundaries.
The VQ45 presentations were held in October 2013 at
Technopark, our R&D center, to share individual teams’ ideas,
activities and results throughout the Group. Numerous
proposals were announced during the presentations, whichwere attended by some 600 employees, including those fromGroup companies overseas. In one proposal, employees of
Sysmex India suggested providing inexpensively priced products
for India that are tailored to local needs. The Regulatory Aﬀairs& Quality Assurance division proposed disseminating quality
information improvements throughout the Company. The Supply
Chain Management (SCM) division made a proposal to lower
costs and reduce worker hours by improving parts packaging.
Each of these proposals received an award. Based on one
proposal that had been made to promote social contribution
activities, we introduced the Social Contribution Point System
in April 2014.
Other events in addition to VQ45 were held tocommemorate the 45th anniversary of the Company’s
founding. These included Open Sysmex—tours for employees’
families—and Festa 45, a commemorative event. Goingforward, Sysmex plans to continue putting the “Sysmex Way”
into practice throughout the Group through VQ45 and bypromoting active communications that transcend regionaland organizational boundaries.

Sysmex inaugurated Value Quest (VQ) activities in 2008,
commemorating the Company’s 40th anniversary. These
activities are aimed at enhancing corporate value by putting
into action the “Sysmex Way,” the corporate philosophy of theSysmex Group. VQ provides an opportunity for employees tothink about independently, and discuss with each other, activities
that will help to put the “Sysmex Way” into practice. In response
to questions from the chairman and CEO, various ideas arereceived from employees around the world, who hold discussions
on these themes over the course of several months.
In ﬁscal 2013, the 45th anniversary of the Company’s
establishment, we promoted VQ45 activities that aimed atmaking every individual in the Group responsive to various
environmental changes and to thoroughly reviewing his or her
tasks and role in the Group and putting the resulting ideas into
practice. In Japan, VQ45 was themed on “redeﬁning operations,reviewing work.” The emphasis was on identifying work that
required redeﬁnition and review, and promoting action fromthe three perspectives of “knowing and making known,”“discarding” and “changing,” with the aim of providing maximum
value to our stakeholders.
Theme of VQ45 (Japan)

Redefining Operations, Reviewing Work
“Knowing and Making Known” Internal and External Changes
through the Sharing of Information, Exchanges of Opinions,and Deliberation“Discarding” Unnecessary Operations and Rules“Changing” to Exceed Stakeholder Expectations

Photo 1 2 3 4 : VQ45 presentations

4

Photo 5 : Open Sysmex

6

5

8

Photo 6 : Festa 45

Highlight

1 The Advancement of Healthcare

By Welcoming Two German Companies into the Group,
Sysmex Makes New Inroads into Personalized Medicine
and Contributes to Enhancing the Treatment of Infectious
Diseases in Emerging and Developing Countries
Contributing to the Resolution of
Global Healthcare Issues

its eﬀorts to meet increasingly diverse global healthcare needs.
Inostics (currently, Sysmex Inostics) possesses highly sensitivetechnologies for determining cancer genes in the blood, while
Partec is a pioneer in ﬂow cytometry*1 technology and boasts
a strong presence in research domains and in the market for
detecting infectious diseases such as HIV and malaria.

In recent years, the healthcare market has been characterized
by graying populations in advanced countries. Meanwhile, in
emerging markets populations are increasing, triggering a
growing prevalence of infectious disease. These countries arealso working to meet growing healthcare needs in line with
their economic development.
Progress in genetic analysis technology, which is used toanalyze the risk of disease incidence, facilitates the selectionof treatment methods and drug development to meet an
individual’s physical and genetic condition. This technology isused in “personalized medicine”—key words in the healthcareﬁeld. In emerging markets and developing countries, demandis growing for compact and inexpensive diagnostic instrumentsthat contribute to a broad-ranging provision of healthcare
services, as such instruments can help to address infectious
diseases and improve public health.
In line with its Group corporate philosophy of “Shaping
the Advancement of Healthcare,” in October 2013 Sysmex
welcomed two German companies into the Group as part of

Aiming to Optimize Treatment for Individual
Cancer Patients
Sysmex Inostics possesses BEAMing technology*2 for detecting
to a high degree of sensitivity abnormal expressions andmutations in genes that are the cause of cancer in blood.
Compared to the conventional method of testing surgicallyremoved specimens, this technology requires only blood. In
addition to reducing the impact on patients, this method has theadvantage of allowing multiple tests to be conducted for themonitoring of treatment methods. Conventional approaches alsopresented the problems of testing only a portion of the removed
specimen, as well as mistaken results due to diﬃculties inremoving some types of cancer specimens, but now highly
sensitive hematological testing can be used to determine theSysmex Inostics

Ultrahighly sensitive technology for thedetection of cancer genes
Promotion of the development ofcompanion diagnostic drugs for cancer
Company ProﬁleSysmex Inostics GmbH (Headquarters: Hamburg, Germany)
Established: 2008; Employees: Approximately 40 (As of December 31, 2013)

Contributions to Testing in a Growing Number of Fields
Currently
Confirmative
diagnosis

Screening

In the Future
Risk
Assessment

Screening

Helping to Selectthe Best Cancer Treatment Method
for Each Individual

Follow-up testing

As technology advances, ﬁelds of diagnosis growmore detailed and sophisticated

Risk
Monitoring

Risk diagnosis

Selection oftreatment method

Confirmative
diagnosis

Selection oftreatment method
according topatient and diseasecharacteristics

Monitoring forrecurrence andmalignanttransformation

Companion
diagnostics

Monitoring

Companion diagnostic drugs are expected to help in determining whether
a treatment drug will be eﬀective for a patient and whether the risk ofside eﬀects is high. This can help in selecting courses oftreatment or drugs that are appropriate for individual patients.

9

Stakeholder Comment
We are a non-proﬁt consortium serving more than 2,000 HIV+ patients. The miniPOC’s promise of portability and large volumeof patient service between calibrations is perfect for us to bring care closer to our patients, especially mothers and young
children in the villages. Our successful piloting of miniPOC has garnered great interest from health oﬃcials in Njombe as wellas in the region of Tanga. For the future, we would like to explore a number of possibilities with Partec.

Mr. Royal Orr, Highlands Hope

Working to Popularize Simple and Inexpensive
Testing for HIV/AIDS

monitoring of patients suﬀering from the world’s three leading
infectious diseases: HIV/AIDS, tuberculosis and malaria.
Compact and portable, its instruments can be used inenvironments where medical treatment facilities are lacking,and the reagents they use cost only a fraction of those oﬀered
by competitors. To provide easy access to testing, the company
is rolling out mobile laboratories in various regions. Particularly
in Africa, Partec accounts for a major share of the market intesting for HIV/AIDS.
Going forward, Sysmex will leverage its global network toincrease recognition and adoption of Partec’s products in Asia andCentral and South America as well as Africa. In this manner, we
are working to help improve healthcare environments in various
emerging markets and developing countries. Sysmex is taking on
the challenge of moving to a new stage of Group development
to contribute to a healthy life for people around the world.

Partec is a pioneer in the ﬂow cytometry (FCM) method, in1968 becoming the ﬁrst company in the world to commercialize
research equipment employing this method. Products that Partec
has developed for emerging markets and developing countries
using this technology have contributed to the treatment and*1 Flow cytometry: method involving the ﬂow dispersion of minute particles andthe use of laser light to optically analyze minute ﬂows. Used primarily toobserve individual cells.
*2 BEAMing technology: An acronym for “Bead, Emulsion, Ampliﬁcation, andMagnetics,” this gene analysis method combines digital PCR (ultrahighly
sensitive PCR) and ﬂow cytometry technologies for blood-based detectionof minute genetic mutations.

entire cancerous state. Inostics has used this technology todevelop a business centered on its OncoBEAM® lab assay service.
By working with leading pharmaceutical companies, Sysmex
plans to aggressively pursue the development of companion
diagnostic drugs, which are seen as the key to personalized
medicine for cancer. Tests employing these drugs analyze
target proteins and genes using specimens such as blood thatare derived from individual patients. As a result, companion
diagnostic drugs are expected to help in determining whether
a treatment drug will be eﬀective for a patient and whether
the risk of side eﬀects is high. By adding these technologies to
its own proprietary technologies, Sysmex aims to achieve
success in personalized medicine.

Global Number of People Infected with HIV/AIDS,
Number of AIDS Patients

PartecEastern Europe and Central Asia

Compact and portablebleeinstruments to test for
infectious diseases

1.4 million
Western and Central Europe

900,000
North Africa andthe Middle East

Deployment of mobilelaboratories in areas
lacking infrastructure

300,000

East Asia

North America
1.4 million

830,000
South and Southeast Asia
4.0 million
Oceania

Caribbean

230,000
South America
1.4 million

53,000Company ProﬁlePartec GmbH (Headquarters: Görlitz, Germany)
Established: 1967; Employees: Approximately 180 (as of December 31, 2013)

Sub-Saharan Africa
23.5 million

Source: UNAIDS 2012 Report on the Global AIDS Epidemic

Contributing to Expansion
in the Treatment of Infectious
Diseases in Emerging Markets
and Developing Countries
The prevalence of HIV/AIDS, tuberculosis and malaria
in emerging markets and developing countries is a global issue.
Making simple and inexpensive testing instruments more commonplace
will help to prevent and treat such infectious diseases.

10Highlight

2 Improving Business Processes

Launching a Project to Review Our Logistics Processes
and Systems from a Global Perspective, Promote Their
Efficiency and Reduce Their Environmental Impact

Promoting Gradual Improvements to Logistics
on a Global Level

departments, materials departments, and factories.
* Eco-Vision 2020: The Sysmex Group Environmental Action Plan. Sets targets to beachieved by ﬁscal 2020 in the areas of “environmental consciousness in productlife cycle processes” and “environmental consciousness at business oﬃces.”

The environment in which Sysmex operates is changing every
year, as healthcare investments rise in emerging markets andenvironmental problems become an increasingly serious issue
for society. Against this backdrop, Sysmex’s product areas andsales regions continue to expand, prompting the need toreview our logistics processes and systems in order to provide
increasingly diverse solutions.
In April 2012, we launched a project to shorten supply
chain lead times by reconﬁguring the global logistics structure
for overall optimization and introducing process reform. Since
then, we have gradually revised our logistics structure andmoved forward with packaging reforms, making progress inthe overall reconﬁguration of logistics.
Going beyond logistics reform, project initiatives are also
intended to reduce environmental impact and serve as aneﬀective means to achieve the objectives Sysmex has spelled
out in its Eco-Vision 2020.* Consequently, we are moving
ahead in a staged manner with comprehensive measures thatinvolve aﬃliated companies overseas, as well as logistics

Reconﬁguring Our Global Logistics Structure to
Lower CO2 Emissions
In the past, we used air freight when transporting somerefrigerated reagents overseas. By shifting to ship transport,
we have succeeded in substantially reducing CO2 emissions.
We have also decreased lead time signiﬁcantly through thelocal sourcing of some accessories for instruments. This movehas also lowered CO2 emissions by shortening transportdistances. In addition to accessories for equipment, in the future
we plan to develop local sourcing of reagent raw materials,
rendering CO2 reduction eﬀorts even more eﬀective.
Enhancing our loading simulations has enabled us to adjust
the timing of product shipments, increase our loading ratio inshipping containers and decrease the number of shipments.
Speciﬁcally, in ﬁscal 2013 we achieved a peak-time loading
ratio of 55%, up 6 percentage points from the 49% recorded

Activities Related to Curtailing CO2 Emissions

Shifting the mode of overseas transportof certain refrigerated reagents from air
to ship freight
Procuring locally some accessories for
instruments
By reinforcing loading simulations,adjusting product shipment timing andraising the shipping container loading ratio
Example of Impro
Improvements in the Loading Ratio
Fiscal 201249
4
9%Shipping containerloading ratio (at peak) up
11

Fiscal 201355%

6 percentage points

Stakeholder Comment
The logistics of product delivery can be likened to “distribution arteries.” Conversely, collection and disposal compare to “venous
distribution.” By switching transport modes and boosting the container loading ratio, we are working to make this arterial ﬂow
more eﬃcient. At the same time, we pay attention to the processes of collection and disposal following use by reviewing package
sizes and packaging materials. We plan to continue with eﬀorts to reduce our environmental impact from a global perspective.

Tomoe Katayama, Vice President, Logistics, Sysmex Corporation

In addition to improving logistics processes, we are moving
forward with the revision of package designs. We have alreadyintroduced steel packaging for some products to prevent
damage during shipment. For shipments in Japan, we have begun
employing reusable packaging, which we plan to graduallydeploy in response to speciﬁc market requirements.
Recognizing its growing responsibility to supply products
on a global scale, in the future Sysmex plans to continue
improving its logistics eﬃciency and minimizing its
environmental footprint.

in ﬁscal 2012.
A warehouse is part of i-Square, our new factory in the cityof Kakogawa, Hyogo Prefecture, scheduled to commence
operations in August 2014. Directly linking the factory andwarehouse will increase the eﬃciency of our logistics structure.
This approach will also create a structure for direct transport
to customers in Japan, and by proactively utilizing the Port ofKobe, we expect to enhance the eﬃciency of overseas transportroutes as well.
Going forward, we aim to continue raising our containerloading ratios. To this end, our headquarters logistics department
will manage global optimal inventory levels, including overseas
production bases, in pursuit of transportation that is planned
to minimize waste.

Revising Package Designs to Reduce Material
Requirements and Boost Recyclability
Optimized instrument package sizes lead to improvements instorage and loading ratios. Introducing package designs thatconsider the unique needs of export destinations also contributes
to resource savings and a higher recycling ratio.

Packaging Improvements

Boosting storage and loading eﬃciency
by optimizing instrument package sizes
Introducing package designs that take
into account the local characteristics ofexport destinations
Employing reusable packaging andsteel packaging thatments
protects instrumentsfrom damage

New warehouse (scheduled to commence operation in August 2014)
Main instrument andaccessories combined
into a single package

Example of Packaging Improvements
Exam
BeforeBefo

Accessories
Ac

After

Main
instrument
instruReusableeusablepa
aackagingckaging
packaging

21% reduction

Steel packaging

Achieved ain volume by combining
accessories and main instrument in a single package
12Highlight

3 Environmental Conservation Activities

Employee Volunteers Promote Forest Maintenance
Activities at “Sysmex Forest” to Preserve Regional Water
Resources and Biodiversity

Conducting Forest Maintenance Activities as an
Aspect of Corporate Social Responsibility

in the city of Ono, Hyogo Prefecture. We dubbed this portion
the “Sysmex Forest” and set about making the satoyama (ahuman-inﬂuenced natural environment) a place of tranquility
for people and wildlife.
In May 2013, we held a forest opening ceremony, attended
by guests and Sysmex volunteers. For the next several years,
we will perform forest activities such as thinning and clearing
away underbrush to protect the watershed. To preserve
biodiversity, we will erect birdhouses, preserve swamp areas,
cultivate indigenous species and conduct ground preparation*
activities. We will also prepare mountain paths and landscapefeatures, plant ﬂowers and perform other tasks to revitalize
the area and encourage interaction between people and nature.

Forests play an important role in watershed protection bystoring and purifying rainwater. Forest maintenance, therefore,
is essential to the maintenance of our water resources. Since
the Convention on Biological Diversity at the 10th Meeting of
the Conference of the Parties (COP 10), held in Nagoya in
October 2010, awareness of the importance of biodiversity inJapan has increased. This realization has encouraged a numberof companies to take part in the protection of forests, which
nurture diverse plant and animal species.
Sysmex, which uses water in its core reagent production
activities, recognizes that contributing to local watershed
protection is an important social responsibility. The Company
also aims to contribute to the preservation of biodiversity.
For these reasons, in ﬁscal 2013 we began taking part inforest maintenance activities based on the “Enlist theParticipation of All Citizens in Creating Woodland” project
being promoted by the Hyogo Prefectural Government. To
this end, we took responsibility for a two-hectare portion of
the 17-hecatre Kawai Kaiteki Forest near our reagent factory* Ground preparation: clearing away fallen leaves and twigs from the forest ﬂoor

Encouraging Employees and Their Families toParticipate in Volunteer Activities
During the ﬁrst year, ﬁscal 2013, we held regular activities
twice—including our opening ceremony—and ad-hoc
activities ﬁve times. A total of 147 employees and family members
took part.

Photo 1 : Sysmex Forest

2
Kawai Kaiteki
ForestSysmex Forest
Ono

Sysmex Ono Factory

Kakogawa

Harimanada

Kobe

Osaka
Bay

1

13

Photo 2 : Photo at the ceremony to commemorate the opening of the forest

Stakeholder Comment
Since the opening of the forest, I have taken part in forest maintenance activities as an employee volunteer. Our work has caused
a signiﬁcant and visible change in the amount of sunlight and water being let through the forest canopy. Surely this will aﬀect theforest’s ecology. Being in the middle of nature—which is so diﬀerent from their everyday activities—is an extremely valuable experiencefor children and a refreshing change for adults, too. I hope to continue participating in this enjoyable activity with other employees andtheir families, as well as members of the local community, as we work to create a place of tranquility for people and wildlife.

Eri Doumoto, Manager, Production Division 2 (Ono Factory), Sysmex International Reagents Co., Ltd.

Taking Part in Corporate Citizenship Activities
Linked with Environmental Preservation atOverseas Group Companies

At the regular activity in November 2013, more than 30
employees and their family members volunteered for suchactivities as thinning, ground preparation and building steps
along mountain pathways.
Completing these tasks allowed the light to penetrate theforest cover more easily, encouraging seeds to sprout anddiverse plants to grow. Ad-hoc activities included initiatives
themed on the cyclical use of forest resources. For example,
the thinning of Quercus serrate trees yielded edible shiitake
mushrooms, and the branches and leaves that were gathered
during ground preparation were piled into mulch stacks tocreate a habitat for unicorn beetles and other insects.
Even small children are taking part in Sysmex Forest
activities. We hope that participating in forest maintenanceactivities will foster an awareness of the environment.
Going forward, we will cooperate with regional government
bodies, forestry cooperatives and local citizens with a long-term
perspective to make the Sysmex Forest a place of tranquility
for people and wildlife.

Since commencing its Sysmex Forest activities in ﬁscal 2013,
Sysmex has also undertaken a host of environmental preservation
initiatives in Japan and overseas. For instance, at Sysmex
America, our regional headquarters for the Americas, employee
volunteers have taken part in cleanup activities to protect
forests. Employees at Sysmex New Zealand conducted cleanups
along the coast, which is home to diverse species of wildlife.
Going forward, Sysmex will continue contributing toenvironmental preservation by promoting corporate citizenshipactivities that are closely rooted in the local community.

Photo 3 : Thinning the forest

4

Overview of “Sysmex Forest” Activities in Fiscal 2013
Thinning, clearing underbrushwatershed protection
Bioenvironmental survey by specialized institution,
ground preparation, gathering branches and leaves

preserving biodiversity
Planting cherry and other trees, preparing mountainpaths, making f lowerbeds

making satoyama (human-inﬂuenced natural environments)
3

5

14

Photo 4 : Preparing the groundPhoto 5 : Repairing mountain paths

Overview of CSR Initiatives

Setting of Mid-Term Objectives andPromotion of CSR Activities
To be more proactive in our CSR initiatives, in April 2013 we established the Mid-Term CSR Plan (ﬁscal 2013–2015) based on thehe
10 Principles of the United Nations Global Compact and the ISO 26000 international standards for social responsibility.
We are promoting CSR activities and working to resolve social issues based on this plan.

Category
Organizational
governance

CSR Mid-Term
Objectives

Status of Activities in Fiscal 2013
: According to plan

: Partly completed

Activities Planned for Fiscal 2014

( 1 ) Reinforcement of thecompliance system•Revised Readjusted groupcompliance system, and establishedCompliance Committee.
•Revised Global Compliance
Regulations and Global
Compliance Code.

•Deploy Global Compliance Regulations and the Global
Compliance Code throughout the Group.
•Strengthen coordination between Group companies onlegal management system.

(2) Improvement ofbusiness continuity
plan•Commenced working group activity
to build Business Continuity
Management System towardrevision of business continuity plan.

•Complete function-speciﬁc business continuity manual.
•Plan and implement proactive actions (such as seismic
reinforcement and disaster recovery)•Conduct assessments on additional risks related to humanrights of employees and in the supply chain, as well asclimate change.

Human rights /Labor practices(3) Promotion ofdiversity•Introduced system to support asmooth transition for people
returning from childcare or nursing
care leave.
•Enhanced facilities for people withdisabilities.

•Introduce leave compensation (beneﬁt) for people taking
nursing care leave.
•Conduct training to promote a proper understanding oflabor management (harassment, time management,
work-life balance).
•Promote global recruiting, and extend internship system
to people overseas.

Environment(4) Promotion ofenvironmental
activities to achieve
the long-term
environmental
objectives (Sysmex
Eco-Vision 2020)•Promoted environment-friendlinessof products (such as by responding
to the RoHS Directive*1).
•Fell short of ﬁscal 2013 targets for
reducing the environmental impactof our operations (electricity, water
consumption) due to operational
facility upgrades and changes in the
manufacturing composition.

•Make products more compact and lightweight, reduceenergy consumption, simplify product packaging.
•Switch to alternatives for animal-derived substances.
•Conduct activities in preparation for a declaration ofconformance with the RoHS Directive (July 2015).
•Promote remote product maintenance services.
•Foster a shift from air to ocean transport.
•Reduce energy use at business sites.
•Maintain waste recycling ratio at business sites.
•Reduce water use at reagent factories.

Fair operating
practices(5) Promotion offair trade•Veriﬁed compliance systems in
response to bribery laws andanti-monopoly acts and planned
countermeasures.
•Revised the Sysmex Promotion Code.

•Cultivate internal awareness of overseas anti-bribery
legislation and EU anti-monopoly laws.
•Obtain external evaluation of compliance system.
•Disclose information on the basis of sunshine laws*2.

(6) Promotion of
CSR procurement•Revised our procurement policy
from a CSR perspective.

•Ensure understanding of new procurement policy among
business partners and related departments within the
Company.
•Commit procurement-related initiatives concerning humanrights, ethics, occupational health and safety, and survey
the status of conformance among business partners.

(7) Enhancement of
information security•Focused on security risk
countermeasures on the business
operations. Addressed security risk on
the system by introducing a new CRM
system*3 and extended certiﬁcationof Information Security Management
System.

•Enhance the current security level, review theoperations of departmental systems, document procedures
and conduct training.

(8) Improvement ofcustomer satisfaction•Commenced VOC activities*4 via
new CRM system.

•Analyze new CRM system’s VOC information andcommunicate it to related departments.

(9) Promotion ofsocial contribution
activities•Performed community contribution•Commence operations of the social contribution point
activities (such as conducting forest
system, and plan and introduce related measures.
maintenance activities at the “Sysmex
Forest” and opening to the public a
historic building we have rented fromthe city of Kobe, the “Minato Ijinkan”).
•Introduced an employee volunteer
activity support system (a social
contribution point system).

Consumer issues

Community
involvement anddevelopment*1 RoHS Directive: A directive prohibiting the use of hazardous substances in electrical and electronic devices sold in the European Union. This directive calls for the cessationof use of heavy metals (lead, cadmium, mercury and hexavalent chromium) and speciﬁed bromine-containing ﬂame retardants (PBB and PBDE).
*2 Sunshine laws: A vernacular term for laws such as those that have been put into place in the United States, France and other countries that make it a legal obligation forpharmaceutical companies to disclose information about payments to doctors and research institutions.
*3 CRM system: A system that comprehensively manages a variety of data about each customer*4 VOC activities: Activities involving the collection and analysis of customer opinions, and feeding this information back into business operations.

15

Global Topics
Sysmex took part in a host of CSR activities around the world in ﬁscal 2013.
Some major activities are introduced below.

P15

Japan

XN-2000 Automated Hematology Analyzer
and XN Reagents Win German Design AwardASTRIM FIT Health Monitoring Analyzer
Receives Good Design Award
Focusing on the Development of Global Human Resources
Supporting Customers’ Daily Quality Control
Sponsoring the Kobe Marathon

P17

Americas

Selected for the Companies That Care Honor
Roll for the Sixth Consecutive Year for Our
Eﬀorts to Create a Motivating Workplace andCorporate Citizenship Activities
Proactively Supporting Employee Growth
Respecting Diversity, and Building a Motivating Working
Environment
Topping Customer Satisfaction Survey for the 14th Consecutive Year
Contributing to Children’s Lives and Healthcare in Brazil

P19

EMEA

(Europe, the Middle East
and Africa)

Creating a Motivating Workplace through theAggressive Rollout of Childrearing Supportand Health Promotion Measures
Developing Training Plans to Reﬂect Individual Employees’ Needs
Global Personnel Exchange Program
Contracting out Some Work to Organizations Supporting People
with Disabilities
Supporting Breast Cancer Awareness Events

P21

China

Collaborating with Universities to Cultivate
Engineers That Can Resolve the Issues Medical
Professionals Face
Focusing on Creation of a Safe and Comfortable Workplace
and Proactive Communications
Acquiring ISO 14001 Certiﬁcation at Our Reagent Factory
Educating Employees to Ensure Thorough Compliance with
Fair Trading

P22

Asia Pacif ic

More Than 500 People from 17 Countries Take Partin AP International Sysmex Scientiﬁc Seminars
Activities Aimed at Enhancing Employee Solidarity
Baddhi Factory in India Receives Award for Environmental
Protection Activities
Supporting Quality Control, Contributing to Standardizationin Emerging Markets
Providing Support for Events to Raise Awareness of Breast Cancer

16

Global Topics

Japan
XN-2000 Automated Hematology Analyzer and XN Reagents

Win German Design AwardIn December 2013, Sysmex’s XN-Series XN-2000 automatedhematology analyzer and XN reagents received the German
Design Award, sponsored by the German Design Council.
Nomination for the German Design Award is conditioned
upon prior receipt of another international design award, andis an honor in itself. The rigorous screening for this award has
led to it being referred to as an “award among awards.” The
XN-2000 and XN reagents were nominated for the German
Design Award based upon receipt of the iF Product DesignAward 2013, which is an independent German design award,
in November 2012.
In addition to improved functionality and performance,
the XN-2000 was evaluated highly for its appearance and theusability of the “Silent Design®” product concept, which
reduces the burden on clinical laboratory technologists. Suchhigh ratings led to the XN-2000 and XN reagents being ranked
among the top 100 of the 1,900 products nominated.

XN-2000
automated hematology analyzer

XN reagents

ASTRIM FIT Health Monitoring Analyzer

Receives Good Design Award
In January 2014, Sysmex launched the ASTRIM FIT, whichmeasures estimated hemoglobin levels in peripheral blood
without the need for blood sampling. Highly rated for its
advanced functionality, as well as its compactness and theattractiveness of its exterior housing, the ASTRIM FIT received
the Good Design Award 2013, sponsored by the Japan Instituteof Design Promotion.
More compact than previous models and designed to beabout one-third their price, in addition to top athletes Sysmex
hopes to expand the instrument’s application to training
locations for the young athletes who will participate in the 2020
Tokyo Olympic Games.

ASTRIM FIT

17

Human Rights, Labor Practices

In ﬁscal 2013, the SNCS received
a Grand Prix at the IT Japan Award
2013, sponsored by Nikkei
Computer (published by Nikkei
Business Publications, Inc.), forexcellence in the application of
information technology. The system
was rated highly for “simultaneously
enhancing customer satisfaction
and boosting business eﬃciency.”

Focusing on the Development of
Global Human Resources
Sysmex focuses on developing global human resources, which
are core to its global business.
We introduced the Global Apprentice Program targeting
younger employees in ﬁscal 2011. We solicit participants internallyfor this program, which oﬀers employees the opportunity towork at overseas subsidiaries and is open to employees who
aim to develop global careers. The objective of the program is
to foster a core of global personnel within the Company. Upon
their return, some of the employees participate in debrieﬁng
meetings, where they report on their experience working inoverseas market environments. This approach helps to convey
information about overseas conditions to Sysmex in Japan. By
the end of ﬁscal 2013, a total of 13 employees had been
dispatched overseas through this program.
In ﬁscal 2012, we also began promoting exchanges ofJapanese and overseas personnel by instituting the Global
Personnel Exchange Program, aimed at strengthening ties
through deeper mutual understanding. (See page 20 for details.)

IT Japan Award 2013 GrandPrix plaqueCommunity Involvement and Development

Sponsoring the Kobe Marathon
The theme of the Kobe Marathon, “Thanks and Friendship,” ismeant to express the gratitude of the people in the Kobe area
to everyone who assisted in the reconstruction of the region
following the Great Hanshin-Awaji Earthquake. Sysmex
Corporation, which is headquartered in Kobe, shares this senseof gratitude and, as a company involved in healthcare thataims to contribute to a healthy society through sports, is proud
to have been a special sponsor of the event since its inception.
For the third marathon, held in November 2013, Sysmex
supplied bib numbers to around 20,000 participating runners.
Sysmex Group employees and their families also took part involunteer activities, providing broad-ranging support for the
event. Sysmex also exhibited at the Kobe Marathon EXPO, andoﬀered participants a chance to check their health condition
by using its product, the ASTRIM, to measure estimatedhemoglobin levels in peripheral blood without the need forblood sampling. Members of the Sysmex Women’s Track &Field Team also conducted a lecture on stretching andpresided over a talk show.
Sysmex plans to continue helping to invigorate the Kobe
region through sports by sponsoring the 4th Kobe Marathon,scheduled for November 2014.

Employees strengthening ties through the Global Apprentice Program

Consumer Issues

Supporting Customers’ Daily Quality Control
At hospitals and other healthcare facilities, instrument andreagent precision is controlled to maintain consistent testingdata reliability. In most cases, the condition of instruments
and reagents is checked by comparing on a daily basis themeasurement results of materials known as control samples,with reference values and results. Sysmex supports quality control
by providing these control materials. Customer instruments
are connected to the Customer Support Center via our online
Sysmex Network Communication Systems (SNCS). Measured
values of control samples sent via the SNCS from customer
instruments are received by the Customer Support Centerand compared with other counts by the same instrument todetect signs of abnormalities. Analysis results are then returnedto the customer. In ﬁscal 2013, on a trial basis we beganoﬀering a “smart maintenance” service for some products thatuse SNCS circuits to check instrument operating status remotely.

Volunteers providing water at the 3rd Kobe Marathon

18

Global Topics

Americas
Selected for the Companies That Care Honor Roll for the

Sixth Consecutive Year
for Our Eﬀorts to Create a Motivating Workplace and Corporate Citizenship Activities
Sysmex America does its best to make the workplace motivating
for employees, and is proactive in corporate citizenship activities.
As a company that has developed its business in the ﬁeldof healthcare over many years, Sysmex America believes infostering a better society from the standpoint of health.
Accordingly, the company consistently contributes to suchorganizations as the American Cancer Society, the American
Heart Association and the Leukemia & Lymphoma Society
through ongoing donations. In ﬁscal 2013, Sysmex America
donated a total of more than US$100,000 to such causes.
Company volunteers also participate actively in events sponsoredby these organizations.
In ﬁscal 2013, Sysmex America supported and more than
20 employees volunteered in eﬀorts to distribute food to theneedy through the Northern Illinois Food Bank, an NPO, bypacking foods and assisting in other tasks. The company takes
part in various other initiatives, as well, such as conserving
nearby forests.
Recognized for initiatives such as these, Sysmex America
was selected as a member of the Companies That Care Honor
Roll 2014, sponsored by a U.S. non-proﬁt organization. This was
the sixth year in a row that Sysmex America has received thisaward, which recognizes companies for corporate citizenshipactivities and proactive eﬀorts to create a motivating workplace.

Cleaning activity for forest conservation

Employee volunteers who participated in food
distribution initiative19

Human Rights, Labor Practices

Consumer Issues

Proactively Supporting Employee Growth

Topping Customer Satisfaction Survey for the 14th
Consecutive Year

Sysmex America conducts a 60-day orientation and training
program for new employees, and has e-learning programs in place
for all employees. The company has also introduced a scholarshipsystem that encourages employees to study independently atuniversities and other locations. Employee-students are
reimbursed according to performance, and Sysmex America
provides up to US$5,250 for university-level study and as muchas US$10,000 for study at the graduate level.
In ﬁscal 2013, Sysmex America conducted the Sysmex
Management Academy to bolster business management
expertise and enhance leadership skills. More than 30 managers
from the Americas took part in academy courses.

Sysmex established its U.S. subsidiary in 1979, and the company
commenced local direct sales and support activities in 2003.
Since that time, the company has worked to improvecustomer satisfaction. We help ensure that instruments
operate stably at customer locations via the Sysmex Network
Communication Systems (SNCS), an online network support
service. We also have in place a purpose-build studio, where
we provide real-time virtual training on instrument handlingfor customers. Such extensive support has earned us numerous
positive customer reviews.
As one indicator of its success in such initiatives, the company
has received the top ranking among manufacturers of hematology
analyzers in a survey of customer satisfaction* for 14 consecutive
years. In a separate questionnaire survey that we conductedby email and post in November 2013, we received 9.1 out of
10.0 possible marks for customer satisfaction.
* IMV Service Track US user survey

Community Involvement and Development

Contributing to Children’s Lives and Healthcare
in Brazil
In ﬁscal 2013, Sysmex Brazil supported a project called “The trailerof Mr. Manuel,” in which a trailer went through neighborhoods,
conducting shows and providing Christmas presents. This project
has contributed to the lives of more than 16,000 children andtheir families. The company also cooperates with São Roque,an organization that extends a helping hand to orphans andvulnerable children, hosting concerts by a children’s choral
group at its factory.
For the past ﬁve years, Sysmex Brazil has provided support
to the Little Prince Pediatric Hospital, which encourages the
spread of pediatric healthcare. In ﬁscal 2013, the company
cooperated with projects under the theme of Advances in Health
Treatment for the Right to Live, aimed at cultivating leading-edge
diagnostics research and the spread of knowledge about
pediatric healthcare.

Students of the Sysmex Management Academy

Respecting Diversity, and Building a Motivating
Working Environment
Sysmex America has designed and put in place an aﬃrmative
action program aimed at encouraging diversity. In line with its
focus of cultivating an environment that fosters diverse
working styles, Sysmex America oﬀers ﬂextime andteleworking systems. The company has also entered into anagreement with an outsourced service provider to provide
support if an employee’s family member suddenly falls ill.
Underscoring its commitment to health maintenance andimprovement, the company has an on-site ﬁtness gym.
As an indicator of how employees view these initiatives, Sysmex
America earns high marks in employee satisfaction
surveys that it conducts via an independent
organization. Evincing the strong connection
between the company and its employees, inﬁscal 2013 Sysmex America was one company
selected in the Top Workplaces survey ofregional organizations by the Chicago Tribune .

Concert by a children’s choral group20

Global Topics

EMEA(Europe, the Middle East and Africa)

Creating a Motivating Workplacethrough the Aggressive Rollout of Childrearing Support and
Health Promotion Measures
Sysmex Europe and Sysmex Deutschland have in place avariety of programs and facilities aimed at creating aworkplace that motivates employees. For example, thecompanies oﬀer a childcare support program that provides
employees with €50 per month for each child under the age offour, when both mother and father are working. Keen to
promote the physical and mental health of their employees,
the companies oﬀer counseling by dieticians andpsychotherapists and provide in-house ﬁtness areas.
In ﬁscal 2013, Sysmex participated for the second time in
the Great Place to Work competition, conducted by a survey
body. Sysmex was ranked 50th out of 100 Best German
Employers (compared with 64th place in ﬁscal 2011) with
50–500 employees. Going forward, we will conduct our own
employee satisfaction survey spanning the entire EMEA region.

Principal Initiatives for Promoting Physicaland Mental Health
Provision of yoga, pilates, badminton, boxing andother sports courses(free of charge if participating regularly)
Assistance for regular sporting activities for field
workers (€50/month)Counseling by a dietician (free of charge)
Counseling by a psychotherapist (free of charge)
Massage provision (company pays 50%)

21

Human Rights, Labor Practices

Community Involvement and Development

Developing Training Plans to Reflect Individual
Employees’ Needs

Contracting out Some Work to Organizations
Supporting People with Disabilities

The human resource development team at Sysmex Europe
develops and implements annual training plans, and then veriﬁes
their eﬀectiveness. Employee development plans reﬂect individual
employees’ training needs, determined through interviews with
their supervisors and with HR.
Based on this structure, Sysmex Europe conducts on-board
training, training for management skills development, and an
EMEA-wide international leadership training called the “Tsunagari
Program.” Additionally, HR promotes the Sysmex School,
whereby employees provide training and instruction to theirpeers. Programs such as these are conducted every year toencourage employee development.

Sysmex Europe’s reagent factory contracts out work such as
materials selection to organizations that support eﬀorts bypeople with disabilities to become more self-reliant. Suchorganizations also dispatch workers with disabilities to thefactory’s manufacturing lines.
Sysmex Europe also contracts out work to companies that
employ people with disabilities, assigning them such tasks asshredding conﬁdential documents.

Supporting Breast Cancer Awareness Events
Under the DigniLifeTM brand, Sysmex Europe has developed aproduct that reduces the hair loss associated with cancer
chemotherapy by cooling the scalp, thereby contributing topatient quality of life. In September 2013, through this brandSysmex Europe sponsored a Komen Race for the Cure running
event that took place in a municipal park in Hamburg, Germany.
A race aimed at raising awareness of breast cancer and lending
courage to patients and their families, fundraising activities
are conducted at the same time to support breast cancer related
educational projects. During the event, Sysmex Europe exhibitedat a DigniLifeTM booth. In addition to providing information
about scalp cooling and hair maintenance, booth activities
allowed participants to actually experience a reduction in
scalp temperature.
A “DigniLife” team of 27 employees also took part in the race
itself, constituting the seventh largest team among the 1,700
participants. Participants themselves appeared impressed by
the event, and some commented that they believed Sysmex’s
participation encouraged people with illnesses.

Tsunagari Program

Global Personnel Exchange Program
Sysmex introduced the Global Personnel Exchange Program inﬁscal 2012 to promote mutual exchange between employees
in Japan and at Group companies overseas. The program aims
to strengthen ties through deeper mutual understanding.
In November 2013, employees from Germany, Hungary andthe Czech Republic visited Japan, experiencing operations at
headquarters in Kobe and participating in discussion and forums.
They also visited customers’ research laboratories in Tokyo,
Nagoya and Osaka. In January 2014, Japanese employees
visited Sysmex Europe, our regional headquarters for EMEA,
where they likewise experienced work activities and visitedcustomers, thereby deepening communications.

DigniLife™ teammembers who
participatedin the race

The DigniLife™
booth

Experiencing work activities through interaction with employees

22Global Topics

China
Collaborating with Universities
to Cultivate Engineers
Who Can Resolve the Issues Medical Professionals Faceextensive operational expertise and skills possessed byengineers at Sysmex Shanghai. By doing so, we believe we canprovide eﬀective education and instruction to people withenthusiasm, developing excellent engineers who will addresssome of the issues China’s medical community faces.

In July 2013, Sysmex Shanghai and the Shanghai Medical
Instrumentation College (SMIC) opened a training center as acollaborative project to cultivate clinical testing instrument engineers.
This program seeks to combine the superb educational
experience of SMIC’s professors and researchers with the

Signing ceremony

SMIC

Human Rights, Labor Practices

Environment

Focusing on Creation of a Safe and Comfortable
Workplace and Proactive Communications

Acquiring ISO 14001 Certiﬁcation at Our
Reagent Factory

The Jinan Factory, one of Sysmex’s two reagent factories in
China, has put a special eﬀort toward creating a workplace that
employees ﬁnd safe and comfortable. In addition to thoroughattention to occupational health and safety, work spaces are
illuminated with natural lighting, which has a refreshing eﬀect,
to create bright and healthy-feeling spaces. We have expanded
our employee welfare facilities, such as the dining hall andrecreation areas, and made a biotope and walkways that
impart a refreshing natural feeling.
Another reagent factory in the country, the Wuxi Factory,
conducts employee satisfaction surveys; in our ﬁscal 2013 survey
we scored an overall satisfaction level of more than 70%.

Sysmex is working toward the acquisition of ISO 14001, theinternational standard for environmental management, for theGroup as a whole. Our Wuxi Factory in China acquired thiscertiﬁcation in June 2013.
Fair Operating Practices

Educating Employees to Ensure ThoroughCompliance with Fair Trading
Sysmex is mounting a full-ﬂedged eﬀort to prevent corruption
and promote fair transactions. To this end, the Company
distributes to employees a compliance handbook it has published,
as well as providing education on the topic.
For Group companies in China, in ﬁscal 2013 we conductedtraining on corruption prevention and antimonopoly law for
distributors, as well as new employees, members of the sales
and marketing department, accounting staﬀ and managers.

23

Global Topics

Asia Pacif ic
More Than 500 People from17 Countries
Take Part in AP International Sysmex Scientiﬁc Seminars
Themed “Adding New Dimensions to Diagnostics,” theevent featured meaningful talks by 12 instructors from sevencountries on topics such as applications to clinical diagnostics
and presentation of case studies.

The fourth AP International Sysmex Scientiﬁc Seminar took
place in Kuala Lumpur, Malaysia, on October 8 and 9, 2013.
Our largest seminar in Asia to date, the event attracted morethan 500 customers from 17 countries.

Fourth AP International Sysmex Scientiﬁc Seminar

The seminar’s opening

Human Rights, Labor Practices

Consumer Issues

Activities Aimed at Enhancing Employee Solidarity

Supporting Quality Control, Contributing toStandardization in Emerging Markets

During ﬁscal year 2013, we conducted activities aimed atboosting solidarity among employees at Group companies in
the Asia Paciﬁc region.
As well as conducting discussions and workshops, we
promoted leadership and fostered teamwork through activities
like forest trekking and sports.

Sysmex contributes to the standardization of testing in emerging
markets through such initiatives as working with local
governments and academic societies on and external quality
control*. In Mongolia, the Sysmex reference counter is used as
the standard instrument for external quality control purposes.
We also support various eﬀorts toward standardization in
Thailand, the Philippines and other countries.

Environment* External quality control: A process for conﬁrming the accuracy of measurement
data by comparing such data from the diagnostic instruments of speciﬁc
institutions with those of the reference counter (an instrument that provides
measurement data accepted as standard) and other institutions

Baddhi Factory in India Receives Award forEnvironmental Protection Activities
Sysmex India’s Baddhi Factory, along with eight other companies,
received an award from a local industry association as a“small-scale industrial business that focuses on environmental
protection activities.”
The Baddhi region is one of India’s largest industrial areas,
housing more than 3,000 companies.

Community Involvement and Development

Providing Support for Events to Raise Awarenessof Breast Cancer
Sysmex Malaysia sponsored The Pink Charity Run, held in
October 2013 at Stadium Padang Sultan Sulaiman. Participationin this charity event was one aspect of “Greener Sysmex,” CSR
activities being promoted by the company’s employees. Organized
by a local hospital group, the event promoted breast cancer
awareness and raised money for patient support organizations.
24Corporate Governance
Aiming to Enhance Management Robustness and Transparency and Increase Its Speedand Efficiency
Sysmex considers reinforcing corporate governance to be among its most important management
priorities. By enhancing management robustness and transparency and increasing its speed andefficiency, we aim to maximize corporate value throughout the Group.
The Company’s Managing Board comprises nine members, one of whom is an outside member.
This board makes important management decisions and supervises the execution of business.
Within the Managing Board, we have established the Nominating Committee and theCompensation Committee, which have the same roles as under a “companies with committees”
system. Furthermore, The Company has adopted the corporate auditor system, and the Board ofAuditors consists of four corporate auditors, two of whom are external auditors. The corporate
auditors supervise the members’ business conduct objectively from an independent position. In
April 2005, we adopted the executive officer system in order to increase the speed of decision
making in the conduct of business and respond quickly to changes in the business environment.
The company has 18 executive officers, seven of whom are also members of the Managing Board.
In addition, Sysmex has in place the Global Strategic Committee, which deliberates on the Group’s
management direction and important strategic issues, and the Steering Committee, which serves
as a consultative body to the chairman and CEO to deliberate on important matters concerning theGroup’s business.

Corporate Governance Structure25

Internal Control System Improvements
Based on a Managing Board resolution on internal control systems reached in fiscal 2007, Sysmex
has put in place and promotes the steady operation of systems for compliance, information
retention and management, risk management, efficient execution of professional duties, Group
company management and auditing.
In fiscal 2008, Sysmex formulated Internal Control Regulations concerning Financial Statements
and established an Internal Control Committee concerning Financial Statements, a consultative
body to the chairman and CEO. To prevent internal control effectiveness from being lost against
the backdrop of a business environment undergoing rapid transformation, we focus on training
and awareness activities targeting employees in related departments and are working to sustain
improvements.

CompliancePursuing Open and Aboveboard Business Activities
Based on our Group philosophy, the “Sysmex Way,” we define our view of compliance as“conducting business activities not only in compliance with applicable laws and regulations, butalso based on fairness and the high ethical standards”
In accordance with this definition, we have established a Global Compliance Code, in which
particularly important conformance rules for all executives and employees to abide by arecompiled. We conduct training programs to ensure the thorough permeation of the code within theorganization. The code also applies to entire Group companies, constructing an integrated
compliance structure.
We revised the compliance structure in October 2013, establishing the Compliance Committee
independently from the Risk Management Committee. In addition, we are encouraging compliancein a manner that reinforces the relationship between the Group Compliance Officer and the officer
of group companies. In May 2014, we revised our global compliance code, adding text to describe
our thoughts on ethics in relation to research and development, prevention of bribery, adherence
to international guidelines such as the Universal Declaration on Human Rights, as well as researchand development. We also set forth a bylaw for revising this code once every two years, inprinciple, to respond to changes in our internal and external environments.

Compliance Structure26

Sysmex Global Compliance Code
1. To Ensure Safety of Our Products and Services to Customers
In all of our corporate activities, we will make it a matter of priority to provide ourcustomers with safety and security.
2. To Promote Fair Dealing and Free Competition
We will deal with our customers and business partners in a just and fair manner andwill conduct transactions under appropriate conditions. As regards our relations withother companies in the same line of business, we will not illegally, dishonestly or
unreasonably restrict their business, nor will we engage in the public defamation of
those companies.
3. Fair and Proper Information Disclosure and Exercise of Complete
Information Control
Our corporate information, such as our group’s financial conditions and businessactivities, will be disclosed in a fair, prompt, correct and clear manner in accordancewith applicable laws and regulations and we will exercise strict control overconfidential information collected through our business activities so as not to cause
any infringement to the rights of third parties.
4. . Implementation of Appropriate Research and Development Activities
When carrying out our research and development, we will protect the dignity andhuman rights of the trial subjects and their privacy in the research of genes andother matters, and will comply with applicable laws and regulations and carry out
our research activities in accordance with high ethical standards.
5. To Respect Intellectual Property
We respect both the rights of our own company’s intellectual properties and theintellectual properties of others. We will not unlawfully acquire or utilize any
confidential business information or the proprietary assets of others.
6. To Maintain International Peace and Safety
We will comply with export- and import-related laws and regulations, and will not
be engaged in any transaction likely to impede maintenance of international peaceand safety.
7. To Conduct Proper Accounting and Appropriate Tax Payments
We will always apply the appropriate accounting treatment and recognize tax
obligations set forth in applicable tax laws and accounting regulations andstandards.
8. To Respect Human Rights and to Improve Occupational Health and Safety
We will support the Universal Declaration of Human Rights and Core Labour
Standards, and respect the fundamental human rights of each person and will not
infringe thereon by such acts as discrimination, harassment, etc. We will also
comply with applicable laws and regulations, endeavor to improve occupational
health and safety, and will not force any unfair labor practice on the personnel ofthe company.
9. Distinction between Public and Private Matters and No Conflicts of Interest
We will not attempt to gain any personal profit in performance of our duties, andwill not make any unauthorized use of our group’s assets, goods and information,
nor will we perform such personal acts that may cause harm to our group’sbusiness activities or reputation.
10. To Maintain Sound Relationships with Society
We will comply with applicable laws and regulations related to anti-bribery statutes
and comply strictly with applicable laws when making political donations, if allowed
under local law. We will not be intimidated by antisocial activities, behavior andgroups, and will never maintain any relationship with them.
27

11. To Preserve the Global Environment
We will comply with environment-related laws and regulations, etc. and pay
attention to the environment throughout our business activities based oninternational standards, etc. for the environment in an endeavor to preserve andimprove the global environment.
Revised May 2014

Continuously Providing Education on Compliance
Compliance managers are in place at each Group company, and Sysmex provides complianceeducation for all employees.
We have produced a Compliance Handbook and distributed a copy to each Group company
employee in Japan to ensure that all employees are thoroughly compliance-aware.
Furthermore, in addition to regular compliance training Sysmex Corporation sets important themesfor each year, and training is conducted at each department according to relevant themes. In fiscal
2013, we conducted training on the themes of information management, appropriate relationships
with civil servants and ensuring transparency in relationships with medical institutions.
We also conduct compliance education at Group companies overseas, in accordance withconditions in individual countries.

Principal Compliance Training Conducted in Fiscal 2013
(1) Information management (protecting personal information and company secrets,
points to bear in mind concerning leaks)
Conducted training for all employees via e-learning
Conducted training for sales division employees at manager level or above(2) Appropriate relationships with civil servants
Held seminars for executive officers and members of the Managing Board
Conducted training for sales division employees at manager level or above(3) Ensuring transparency in relationships with medical institutions (dealing withoverseas “sunshine acts” requiring the disclosure of information about payment tomedical institutions, responding to Japanese transparency guidelines)
Conducted training for department heads
Used intranet to ensure thorough awareness at affiliated companies overseas (regarding
sunshine acts)(4) Pharmaceutical Affairs Act
Conducted training for sales, support, development and manufacturing departments(5) Security export control
Conducted training for personnel in charge of these activities, as well as for new hires(6) Accounting, tax affairs
Conducted training for newly appointed managers(7) Personnel administration, harassment
Conducted training for managers(8) Environment
Conducted basic training on the environmental management system for relevant
departments

28

Internal Reporting System
The “Campanula Lines,” an internal reporting system originally developed for Group companies inJapan, allows our employees to seek consultations and file reports via telephone, postal mail ore-mail through two lines (in-house and external).
Any information received is handled anonymously to protect those providing the nformation fromany adverse reactions. Also, such internal reporting systems are in place at overseas Group
companies.

“Campanula Lines” Internal Reporting System

Establishing a Security Export Control Structure
Sysmex strives to reinforce its security export control system based on the Security Export Control
Regulations, thoroughly verifying the destinations and purposes of its exports.
In fiscal 2013, we conducted a companywide e-learning program on security export control andexport administration regulations in the United States to ensure thorough awareness of controls.
We also conducted audits to raise the consciousness of managers and people responsible fordepartments. Furthermore, to strengthen the security export control system for the Group as awhole, we are introducing management systems that link with enterprise resource planning (ERP)systems at regional headquarters overseas in an effort to ensure management thoroughness andincrease efficiency.
To Respect Intellectual Property
Sysmex accords third-party intellectual property rights the same level of respect as it does its
own.
Each new product development project involves a patent review to decide what patents to apply
for to protect our own intellectual property and review third parties’ intellectual property
information. As a part of this review, a patent application study committee is convened, whereIntellectual Property members and R&D engineers draw up patent application policies and plans
for technologies under development. At the same time, the committee investigates the status of
third-party intellectual property rights, thereby minimizing any risks associated with intellectual
property.

29

Conducting Appropriate R&D Activities
Being involved in clinical research and development and human genome and genetic analysis
research, Sysmex has adopted the Ethics Regulations on Clinical Research and Development andHuman Genome and Genetic Analysis Research, whose basic policies include respect of humandignity and thorough protection of personal information. Sysmex has also established a Research
Ethics Examination Committee, which includes outside members such as legal and science
experts, in order to review research content. The list of committee members and examination
results are disclosed on our website, thus ensuring transparency.
In relation to animal testing and recombinant genetic testing, we have also set up the Testing
Control Committee to deliberate on whether testing plans satisfy related legislation.
Encouraging Fair Transactions in Accordance with Promotion Codes
Sysmex is striving to prevent corruption based on the 10th principle of the Global Compact, that“Businesses should work against corruption in all its forms, including extortion and bribery.”We have established the Sysmex Promotion Code (SPC), which stipulates the core behaviors forpreventing bribery and other inappropriate acts and maintaining fair trade. As an organization
under the Compliance Committee, we have created a task force to promote fair trading. This task
force conducts awareness activities to heighten employee consciousness about SPC compliance. In
fiscal 2013, we conducted training on appropriate relationships with civil servants and ensuringtransparency in relationships with medical institutions.

Principles for Transparency in Relationships with Medical
Institutions
Introduction
Sysmex, with its Group corporate mission of “Shaping the advancement of healthcare,” conducts
business activities with the aim of providing reassurance to its various stakeholders, including
customers. As part of this objective, at every stage of our operations—from research anddevelopment to manufacturing, sales and after-sales support—we are increasing the number ofopportunities for collaboration with medical institutions and medical professionals. We believe thatmaintaining a strong sense of ethics as we go about these activities is important in securing
broader society’s understanding of us as a company.
In 2012, the Japan Association of Clinical Reagents Industries formulated guidelines for ensuring
the transparency of relationships between corporate activities and medical institutions. Concurringwith the gist of these guidelines, we make public information about funding we provide to medical
institutions.
Disclosure Method
We disclose relevant information for the previous fiscal year on our website.
Disclosure Period
Information related to fiscal 2013 is disclosed in fiscal 2014.
Target of DisclosureThis information is based on the “Guidelines on Transparency of Relationships between Corporate
Activities and Medical Institutions” established by the Japan Association of Clinical ReagentsIndustries.

30

Risk Management
Promoting Risk Management by Establishing a Dedicated Committee
To control groupwide risk management activities, Sysmex established a Risk Management
Committee, which is chaired by a Risk Management Officer, the Group’s chief executive in chargeof risk management. The Risk Management Committee identifies major risks having the potential
to significantly impact the Group’s business and consistently observes the results of risk response
and monitoring by individual divisions and affiliated companies.
In fiscal 2013, we revamped our overall risk management structure, including the Risk
Management Committee, to ensure a swifter and more decisive risk response. For example, under
the new structure committees, committees rather than the Risk Management Committee as well
as departments and affiliated companies as part of normal risk management respond to businessrisks themselves. The Risk Management Committee, meanwhile, clarifies roles and responsibilities
for responding to major risks to the Group. This arrangement has increased the decisiveness of
our response to everyday risks. We have also revised our structure for responding more quickly
when risks materialize.

Risk Management Structure31

Focusing on Disaster Response
Of all its risk management activities, Sysmex focuses in particular on disaster response and isputting in place systems to ensure its rapid response during emergencies. In fiscal 2013, werevised our Disaster Countermeasure Standards, setting in place emergency response standards
that can be deployed across the Group. In addition, we introduced at affiliated companies in Japanthe safety confirmation tools that Sysmex Corporation employs as a means of emergency
communication. This system will allow us to quickly determine the safety of members across theGroup. We also conduct disaster drills periodically to instill an awareness of activities that need tobe performed in the event of a disaster.
The groupwide backbone IT system that Sysmex Corporation operates is located at external,
disaster-resistant data centers. In addition, in fiscal 2013 we created a backup structure so that
we can quickly switch to a backup system in the event that disaster renders our regular system
inoperable.
Information Security
Sysmex handles data about its customers, as well as on the entities with which it collaborates on
R&D and other testing. We recognize the importance of upholding information such as this, as well
as of other important corporate secrets, and view the leak of such corporate secrets as animportant risk for the Group. Accordingly, we have in place structures to prevent this risk frommaterializing.
For this reason, Sysmex Corporation and its affiliated companies in Japan conducts ongoingtraining for all employees at the divisional manager level and below to impress upon them theimportance of and increase awareness of information management and entrench our rules on
managing corporate secrecy.

CSR Management
Sysmex CSR Builds Trust and Confidence through Practice of the Sysmex Way
Sysmex CSR builds trust and confidence to all our stakeholders
through the practice of the Sysmex Way, the corporate
philosophy of the Sysmex Group. The Sysmex Way indicates theway the most basic corporate activities ought to be conducted,
consisting of three elements necessary for continued growth:
Mission, Value and Mind. The mission expresses the expansion of
our business from activities centered on the field of
diagnostics—a focus since our establishment—to the broader
healthcare domain with its even closer connection to humanhealth. In this manner, the mission asserts our aim ofcontributing toward the realization of a society filled with
abundance, health and joy.
The Core Behaviors clarify provision of specific value tocustomers, employees, business partners, shareholders, society
and all our stakeholders. For example, to provide reassurance toall members of society we carry out our business in strict
compliance with laws and regulations, as well as in adherence tohigh ethical standards. We also consider it important to play anactive role in resolving environmental issues and other problems
that impact our society today.
To become more proactive in our CSR initiatives, Sysmex joined
the United Nations Global Compact in February 2011. Wepractice the 10 principles related to human rights, labor, theenvironment and anti-corruption.

32

The UN Global Compact’s Ten Principles
Human Rights

Principle 1: Businesses should support and respect the protection ofinternationally proclaimed human rights; andPrinciple 2: make sure that they are not complicit in human rights abuses.

LabourPrinciple 3: Businesses should uphold the freedom of association and theeffective recognition of the right to collective bargaining;
Principle 4: the elimination of all forms of forced and compulsory labour;
Principle 5: the effective abolition of child labour; andPrinciple 6: the elimination of discrimination in respect of employment andoccupation.

Environment

Principle 7: Businesses should support a precautionary approach toenvironmental challenges;
Principle 8: undertake initiatives to promote greater environmental
responsibility; andPrinciple 9: encourage the development and diffusion of environmentallyfriendly technologies.

Anti-Corruption Principle 10: Businesses should work against corruption in all its forms,
including extortion and bribery.

33

Promoting Direct Dialogue with Various Stakeholders
Sysmex values opportunities for direct dialogue with stakeholders. We incorporate opinions andrequests received into our business activities.

Main Dialogue Achievements in Fiscal 2013
Customers
Conducted survey on degree of customer satisfaction in each region (Sysmex Corporation andoverseas Group companies in each region)
Held scientific seminars in each region (Sysmex Corporation and overseas Group companies ineach region)
Ongoing customer training program incorporating customer feedback in each region (Sysmex
Corporation and overseas Group companies in each region)
Employees
Investigated desire concerning career design, including interest in working overseas orchanging jobs through a voluntary reporting given to all employees, with results made use of
in HR rotation (Sysmex Corporation)
Conducted collective bargaining with the labor union and held labor–management meetings on
topics such as workplace environment improvement (Sysmex Corporation)
Business Partners
Held the 45th Anniversary Sysmex Suppliers Conference, communicating our appreciation to
suppliers for their ongoing assistance, and took this as an opportunity to share our thoughts
on business continuity plans (BCPs) (Sysmex Corporation)
Shareholders and Investors
Conducted IR tours in France and Russia targeting institutional investors and analysts (Sysmex
Corporation)
Held the 11th Technology Presentation for institutional investors and analysts (Sysmex
Corporation)
Held informational meetings for individual investors (Sysmex Corporation)
Conducted tour for shareholders (Sysmex Corporation)
Communities
Held event for local community interaction at R&D core Technopark (Sysmex Corporation)
Participated in math and science education-focused “6th Science Fair in Hyogo” event for highschool students (Sysmex Corporation)
Participated in the “Aim High Urban Mentoring Initiative” conducted by a U.S. NPO and advised
local high school students (Sysmex America)

34

We deliver reassurance to our customers,
through unmatched quality, advanced
technologies, superior support, and actions thatconsistently reflect the viewpoint of ourcustomers. We constantly look out for ourcustomers' true needs, and seek to generate
new solutions to satisfy those needs.

Quality Assurance

Quality Policy
By shaping the advancement of healthcare, our global business activities contribute to thecreation of a fulfilling and healthy society.

Core behavior
1. We understand our customer’s needs, and provide products and solutions that meetor exceed their expectations.
2. We act based on our customer’s viewpoints by realizing that “Quality is customer
satisfaction”.
3. We seek to reassure our customers by establishing the highest quality assurance
standards and using them to enhance the quality of all aspects of our business.
4. We continually create innovative value for our stakeholders by developing andapplying new and unique technologies and knowledge.
5. We comply with all relevant national or regional regulations and standards toprovide safe products.
6. We maintain and continually improve the effectiveness of our quality management
system.
7. We establish quality objectives consistent with this quality policy, and measure our
performance against them.
Revised in May 200735

Building a Global Quality Management System
Sysmex has constructed a system to ensure compliance withlaws and regulations around the world based on “Quality Policy”
and “Sysmex Corporation Quality Compliance Policy,” and we act
accordingly.
With regard to our quality management system, nearly all Group
companies handling development or manufacturing functions
have constructed management systems in line with and obtained*1certification under the ISO 9001 or ISO 13485 international
standards. Of our 56 Group companies, 37 have received ISO
9001 certification and 18 have obtained ISO 13485 certification.
Sysmex also conducts management reviews and audits of quality
activities at its principal Group companies to confirm that the
management system is operating properly.

Global RAQA Meeting in session

In addition to quality policy training for all employees, we
conduct specialized quality education targeting specificdepartments and job types. In fiscal 2013, we conductededucation related to U.S. Food and Drug Administration andCanadian medical device regulations.
To share quality-related information throughout the Group andreinforce our systems, once a year we hold the Global RAQA
(regulatory affairs/quality assurance) Meeting, at which Quality
Assurance Department managers from Sysmex Corporation, the*2regional headquarters in the Americas, EMEA
Asia Pacific region, and affiliates gather.

, China and the*1 ISO 13485: Quality management system for the design
and manufacture of medical devices*2 EMEA: Europe, the Middle East, Africa

Ensuring Product Quality
Used in clinical testing, Sysmex’s products play a vital role in protecting people’s lives and good
health. Being fully aware of this responsibility, Sysmex is making constant efforts to maintain andimprove product quality by building various systems, not to mention complying with safety
standards around the world at the design and development stages.
In the product development stage, we verify product quality by setting five “quality gates” in theprocess leading up to market launch. Also, when we market products that are manufactured byothers, we verify their quality by conducting periodic audits of the manufacturers and meticulously
inspecting the products.
The Sysmex global quality complaint processing system, which was implemented in April 2011,
allows us to gather quality information in a timely way from markets around the world. When we
receive information about a bug or malfunction, we immediately look into the cause and cease
distribution of the product. To enhance this system, in fiscal 2013 we constructed an electronicsystem for the global sharing of information about malfunctions, corrective actions and preventive
actions.

36

Safety and Quality Information
Sharing Customer Feedback on Product Quality and Safety within the Company
At Sysmex, information on product quality and safety is centrally controlled at the Vigilance
Division.
This division investigates and analyzes such information from customers, and feeds their analysis
results to relevant customers while also sharing them with design, manufacturing and otherrelated functions, so that these findings may be applied to quality improvement and productdevelopment.

Product Quality and Vigilance Control System

Collection and Repair Information Posted on Our Website
Sysmex posts information about product collection and repair on its website under “Important
Product Notices.”
Calling Attention to Counterfeit Reagents
To assure accurate testing results, Sysmex asks its customers at healthcare facilities to use
Sysmex-branded instruments and reagents together. In recent years, however, reagents disguised
as Sysmex reagents have been found in circulation in some Asian countries. The use of suchcounterfeit reagents cannot guarantee the reliability of testing results and, in some cases, can beharmful to patients’ health.
Sysmex continuously monitors markets for counterfeit reagents. When they are discovered, we
put out notices advertising this fact in local newspapers. We also seek cooperation from local
governments and, when necessary, we bring cases to court.

37After-Sales Support
Responding to Inquiries Rapidly and Responsibly
In Japan, Sysmex Corporation maintains a Customer Support Center, where experienced staff
members with expert knowledge cater to customers 24 hours a day, 365 days a year (separate
agreement required). By creating a database containing maintenance histories and the details of
past inquiries from customers to ensure quick reference, the center responds to inquiries andrequests both quickly and carefully.
In fiscal 2013, within this center we set up the VOC Group Department as a specialized unit toanalyze customer input and feed this information back to related parties. Rather than justresponding to problems, we also established the department in the aim of generating new added
value and, in the future, contributing to the development of global initiatives.
*

We also maintain customer service contacts at our regional headquarters in the Americas, EMEA ,China and the Asia Pacific region.
* EMEA: Europe, the Middle East, Africa

Inquiries to Customer Support Center

Responding to inquiries at theCustomer Support Center

Utilizing ISO to Raise the Level of Quality Control*1

In fiscal 2013, Sysmex Corporation obtained ISO/IEC 17025

certification for the calibration*2

service it provides for hematology analyzers. Sysmex was also accredited for ISO/IEC 17043
*3

for

*4

its SNCS and eQAPi external quality control programs for general testing, hematology, clinicalchemistry, immunology and other testing. Sysmex is the first organization in Japan to receive thisaccreditation, not only in the clinical testing field but across all industries. These certifications
enable Sysmex to provide customers with high-quality services as an ISO accredited Calibration
Laboratory and Proficiency Testing Provider.

*1 ISO/IEC 17025: International standard on general requirements for the competence oftesting and calibration laboratories.
*2 ISO/IEC 17043: International standard on conformity assessment—general requirementsfor proficiency testing.
*3 SNCS: Refer to the above section entitled “Supporting Customers’ Quality Control on a
Daily Basis.”*4 eQAPi: A large-scale real-time external quality assessment program. This service involves
analyzing the results of measurement data in real time, which contributes to improving theaccuracy of everyday testing.

38

Instruments Registered with the On-Line Quality Control Services (SNCS, eQAPi)(Worldwide, Cumulative)

Enhancing Customer Satisfaction
Customer Satisfaction Surveys
Sysmex Corporation conducts surveys of customers who attend its national seminars andexhibitions, asking them to evaluate Sysmex’s sales and service activities. We respond swiftly andmake improvements in response to the requests and opinions we receive in this way, as part ofour effort to enhance customer satisfaction. We visit in person customers who have purchase new
products so that we can hear firsthand their opinions and impressions about product functions andoperability, and feed this information back to the product development departments. In addition tothese initiatives, we are creating a customer relationship management (CRM) system tocomprehensively manage various customer-related information. We brought the sales-related
portion of this system on line in fiscal 2013. Going forward, we will use this system to tailor our
proposals more closely to individual customers.
When customers visit us from overseas and tour our offices and factories, we take this as anopportunity to solicit their opinions. Group companies overseas also conduct their own customer
satisfaction surveys.
Boosting Customer Satisfaction by Increasing the Usability of User Manuals
Sysmex made improvements to its user manuals in fiscal 2013, in the interest of improving
customer satisfaction. We began this process by comparing the subjects of call center inquiries
with the content contained in our user manuals to determine any issues that existed. Next, wetrialed the improved user manuals and received evaluations from actual customers in Japan andoverseas.
Based on the feedback we received, we adopted processes to make our manuals even more
operator-centered, creating user manuals that offer excellent usability.

39

Stable Supply
Ensuring a Stable Supply of Products Indispensable to Treatment
Sysmex maintains the right number of the correct types of
products in the right locations in its inventories to ensure its
ability to provide a stable supply of testing instruments. To meet
anticipated increases in global demand, we have established the
new i-Square instrument factory in the city of Kakogawa, Hyogo
Prefecture. Construction on this facility was completed in June
2014. i-Square employs a seismically isolated structure toprotect its production infrastructure and warehouse even in theevent of an earthquake and allow stable supply to continue. We
also expanded the factory at Sysmex RA in fiscal 2013.

i-Square (new Kakogawa factory)

We also endeavor to provide stable reagent supplies fromvarious perspectives. Consequently, we have completed thepractice of having Sysmex Corporation maintain control overappropriate inventory levels. To ensure our ability to provide
reagents even in the face of a disaster, we are dispersing risk byproducing reagents overseas and pursuing alternate supplies ofraw materials.
We continue to upgrade our facilities with a view to ensuring
supply stability. In fiscal 2013, at Sysmex International
Reagents, which produces reagents, we increased from one to
two the number of chillers servicing the two refrigerators andtwo freezers used for storing reagents. We performed thisupgrade in the interest of redundancy, providing a backup
system for keeping reagent at the specified temperature andreducing the risk of becoming unable to ship reagent in theevent of a breakdown that prevented us from keeping reagent atprescribed temperatures.

Overview of Instrument Manufacturing Locations
SysmexCorporation(New factory)

SysmexCorporation(Existingfactory)

Sysmex Medica(Expansion ofexisting factory)

Sysmex RA(Expansion ofexisting factory)

Location

Noguchi-cho,
Kakogawa, Hyogo
Prefecture

Noguchi-cho,
Kakogawa, Hyogo
Prefecture

Yumesaki-cho,
Himeji, Hyogo
Prefecture

Hirokano-mura,
Shiojiri, Nagano
Prefecture

Site area

Approx. 30,000m

2Approx. 12,000m

2Approx. 7,300m

2

Approx. 6,100m

Floor space Approx. 20,000m2

Approx. 9,800m

2Approx. 4,400m

2

Approx. 6,000m

22Investment￥3.9 billion-￥0.5 billion￥0.3 billion

Main
products

High-end models

Compact models

High-end units

Peripheral equipment
for IVD instruments

40

Scientific Activities
Holding Scientific Seminars for Clinical Professionals
Sysmex keeps clinical professionals updated on scientificinformation by sponsoring seminars and study sessions for
doctors and medical technologists.
In June 2013, we held the 36th Sysmex Scientific Seminar,
connecting via satellite links four conference halls—in Kobe,
Tokyo, Sendai and Fukuoka. This conference, themed “The
Wonderland of Hematogenesis and Immune Tissues—Filling the
Gap between Pathology Testing and Blood Testing, andPromoting a Deeper Understanding of the Progress inDiagnostics and Treatment Technologies,” was attended by morethan 1,300 people.

36th Sysmex Scientific Seminar

Publishing Scholarly Magazines and Illustrated Books That Promote Education andAwareness
We distribute the Sysmex Journal International (Japanese, English and Chinese editions) to
medical institutions and university libraries in more than 100 countries throughout the world, thus
keeping many clinical professionals updated on current clinical medicine and healthcare testing.
We also produce an illustrated book to promote education and awareness of illness and testing.
We distribute this book to hospitals and clinics, which place it in waiting rooms and other locations.
Because the book features easy-to-understand explanations in narrative form of the characteristics
of illnesses, as well as their testing and treatment, it draws the interest of children and others who
have little knowledge about medicine.

41

We honor diversity, respect the individuality ofeach employee, and provide them with aworkplace where they can realize their fullpotential. We value the spirit of independence
and challenge, provide employees with
opportunities for self-fulfillment and growth,and reward them for their accomplishments.

Respecting Human Rights and Diversity

Sysmex Group Compliance Code (Excerpt)
8. To Respect Human Rights and to Improve Occupational Health and Safety
We will support the Universal Declaration of Human Rights and Core Labour Standards, andrespect the fundamental human rights of each person and will not infringe thereon by suchacts as discrimination, harassment, etc. We will also comply with applicable laws andregulations, endeavor to improve occupational health and safety, and will not force any
unfair labor practice on the personnel of the company.
8-1 Prohibition of discrimination and harassments
We must not discriminate with regard to a person’s sex, age, nationality, race, origin, belief,religion, social status, lineage, illness or physical disability, nor must we behave in a mannerthat ignores the dignity of other people, including such acts as sexual harassment, power
harassment, etc.
8-2 Privacy protection
We must acknowledge the diverse values of people as individuals, and must respect privacyof each and every person. We must not unnecessarily disclose private information we
acquire in the course of work to any other third person and must not seek to obtain private
information unnecessarily.
8-3 Elimination of forced labor and child labor
We must not engage in unjust labor practices by detaining someone against his or her will.
We must not hire children below the minimum age of employment set forth by applicablelaws or regulations.
8-4 Assurance of safety and health at workplaces
We must adhere to laws and regulations related to safety and health practices so that every
employee may work with peace of mind, and must maintain and enhance the mental as well
as physical health of every employee so that a safe and comfortable working environment
can be established.

42

Embracing Diverse Personnel through Diversity and Inclusion
Sysmex Corporation has evolved from the practice of “diversity,” which simply welcomes diverse
human resources, to the more extensive practice of “diversity and inclusion.” This approach
involves creating a working environment that is amenable to a wide variety of human resources,
recruiting and stationing them without regard for nationality, race, gender or physical disability.
Endorsing the Universal Declaration of Human Rights, ILO Core Labor Standards andOther International Standards Related to Human Rights
Sysmex has formulated guidelines describing particularly important rules and behaviors forcompliance with basic respect for human rights as indicated in “8. To Respect Human Rights and to
Improve Occupational Health and Safety” of Sysmex’s Compliance Code. This code clarifies avariety of discriminatory actions that are not tolerated; prohibits sexual harassment, power
harassment and other acts that ignore human rights; underscores prohibitions on child labor andforced or compulsory labor; and seeks to ensure a safe and comfortable workplace environment.
We also conduct training programs as needed to ensure the code is put into practice. In fiscal
2013, we conducted training for management specialists on the themes of harassment, labor
management and the Worker Dispatching Act.
In May 2014, we updated our compliance code, addressing global human rights issues as a global
company. We clearly spelled out our endorsement of international standards related to humanrights, including the Universal Declaration of Human Rights and core ILO labor standards.
Consultation and Reporting Systems Related to Human Rights
Sysmex has set up “Campanula Lines” as an internal reporting system for Group companies inJapan to enable consultation related to sexual harassment and power harassment, among othertopics. We also have internal reporting systems in place at Group companies overseas.
Promoting Employment of People with Disabilities
Sysmex Corporation encourages the employment of people with disabilities. Targeting long-term
employment, we design working conditions to maximize individuals’ aptitudes and skills. As of
March 31, 2014, our employment of people with disabilities was 1.94% of the total. As thestatutory level is 2.0%, effective from April 2013, we are stepping up efforts to reach this level.
In addition to focusing on the hiring of people with disabilities, we are introducing Ostomates(toilets for people who have had colostomies or urostomies) and other barrier-free facilities, eachmonth a Safety and Health Committee member visits workplaces to confirm that facilities areeasily navigable by wheelchair. These are examples of our ongoing efforts to create a working
environment that is amenable to people with disabilities.
Employing Seniors—System for Reemploying Post- Mandatory Retirement Age
Workers
Sysmex Corporation’s mandatory retirement age is 60, but we have in place a system for rehiring
until age 65 people who have retired at the mandatory retirement age and still wish to work.
During fiscal 2013, we rehired 16 employees who had retired at the mandatory age according to
the terms of our internal rules.

43

Employee Evaluation and Treatment
Equitably Evaluating Personnel Based on Abilities and Accomplishments
Sysmex Corporation values the spirit of independence and challenge, provides employees with
opportunities for self-fulfillment and growth, and rewards them for their accomplishments.
Based on the principle of fair treatment, Sysmex’s basic approach toward evaluation is to “reward
employees for capabilities that contribute to the enhancement of corporate value as well as for
producing accomplishments.” In addition to evaluating employees for their successes, we evaluate
the processes leading to employee growth (competency evaluations). To achieve fairness andensure that employees understand their evaluations, we show employees their evaluation results
and their superiors’ comments.

Basic Principles of the Personnel Management System
1. Ensuring long-term employment
Establishing a double-linear-type competence-based rating frame that enables a diversity of
employees to maximize their skills, and providing opportunities for self-realization and growth

2. Promoting the development and cultivation of diverse human resources
Establishing competence-based rating standards and promoting cultivation of human resources andnormalization of career advancement through clarification of promotion criteria
Evaluating not only accomplishments but also the processes of producing achievements (realization
capability) in order to promote human resource development and the reform of corporate culture

3. Rewarding employees for capabilities that contribute to the enhancementof corporate value as well as for producing accomplishments
Simplifying the relationship between evaluation and reward.
Creating a remuneration structure that is easy for everyone to understand and that rewards
employees in accordance with their contribution, role, competency and accomplishments

Supporting Employee Career Design
Sysmex Corporation employs a voluntary reporting system for all employees. The system affords
each employee with the opportunity to consider their own career directions and life plan, as wellas to affect their own skills development and placement according to the content of their reports.
In fiscal 2013, some 97% of employees used this system.
Personnel Systems at Overseas Regional Headquarters*

Our regional headquarters for the Americas, EMEA , China and Asia Pacific have in place personnel
systems in line with the legal frameworks and cultures of these regions.
In general, we use management by objectives approaches to evaluate personnel. To some degree,
we also employ competency evaluations in the Americas and Asia Pacific. We use talentmanagement education for cultivating personnel and conduct level-based training. In addition,these headquarters have in place an employee exchange program with Sysmex Corporation in
Japan to promote global personnel intercourse and training.
* EMEA: Europe, the Middle East and Africa

44Introducing Internal Awards Systems to Motivate Employees
In fiscal 2011, Sysmex introduced the Group CEO Award system for recognizing individuals,organizations or groups that contribute most significantly to the realization of the Sysmex Way,
our Group corporate philosophy, sharing these achievements throughout the Company each year.
We provide awards for one individual and one group.
Sysmex Corporation has introduced a patent award system that rewards employees who
contribute to the acquisition of patents. We revised this system in fiscal 2013 to boost the
motivation of R&D engineers and heighten awareness of intellectual property, increasing the typesof prizes to three. The first of these is a Patent Grand Prize/Patent Prize of Distinction for inventors
whose patents are recognized as excellent. The second, the Patent Meister, is for engineers who
are responsible for multiple patents. The third type is the Filing Commemoration Prize, which goesto people filing a patented invention for the first time. We also present a Quality Award for successin quality improvements.
Aiming to Equalize Employment Opportunities
Sysmex Corporation recruits new employees based the evaluation of individuals, without regard
for gender, nationality, race, age, employment history or disability status.
Specifically, we instituted year-round hiring to offer equal opportunities to people who had alreadygraduated or had studied overseas and therefore might be at a disadvantage. In fiscal 2013, thisresulted in our hiring of 65 graduates and three potential candidates. To ensure our ability torecruit personnel around the world, we conduct Company briefings and interviews overseas, aswell as conducting Web-based briefings and interviews. In October 2013, we welcomed threepeople of non-Japanese nationality into the Company, and additional six in April 2014.
Hiring Contract and Temporary Employees to Full-Time Positions
Sysmex Corporation actively hires contract employees and temporary employees as full-time
personnel. We have clarified our internal regulations for hiring people working on limited,
fixed-term contracts, offering them fair opportunities for promotion. We put this information on
our intranet to encourage thorough understanding of these rules. When renewing temporary
employees’ contracts, for employees that meet certain conditions we notify temporary placement
agencies of the possibility of employing such personnel directly.
Through the ongoing application of these systems, in fiscal 2013 we promoted 13 contract andtemporary employees to full-time positions.

Promotions to Full-Time Positions (Sysmex Corporation)
Fiscal 2011

Fiscal 2012

Fiscal 2013

Contract employees

13

10

12

Temporary employees

10

7

1

Total

23

17

13

45

Focus on Supporting a Work-Life Balance
Support for Both Work and Child-Rearing
Sysmex Corporation offers a variety of systems, such as
childcare leave and shorter work hour systems, to ensure thatparents can spend as much time with their children as possible.
In support of childrearing, we allow employees to takeaccumulated paid leave to care sick children in addition tooffering a flex-time system. We have set up Sysmex Kids Park,an in-house daycare center that accepts babies and toddlers, at
Technopark, our R&D center. The center offers short-term as well
as full-time daycare, so that employees whose spouses work on
a part-time basis or who find it difficult to take care of theirchildren due to caretakers’ illness, bereavement or othercircumstances may also temporarily utilize the service.
Furthermore, we provide a reemployment system to enable
employees who were forced to suspend their career paths due tochild-raising with opportunities to resume their work. In
recognition of its planned implementation of such systems, infiscal 2011 Sysmex Corporation received the next-generation
support certification logo (nicknamed “Kurumin”) from the
Ministry of Health, Labour and Welfare.
In April 2014, to encourage male employees to take childnursing leave we revised our special leave for employees aroundthe time of their spouses’ childbirth. Whereas our system
previously allowed for five days to be taken within the monthly
following childbirth, the new system allows employees to taketwo days within one month and another three days at any point
within one year.

In-house daycare center, Sysmex
Kids Park

Next-generation support
certification logo (nicknamed“Kurumin”)

We provide easy-to-understand explanations of these systems
on a dedicated intranet site. We also send individual emails
concerning programs that we particularly wish to promote.

Users of Systems to Support a Work-Life Balance (fiscal 2013)
SystemDescription

Users
*

Shorter work hour systemfor child rearing

Until the end of third grade of elementary school

51

Leave of absence system(childcare leave,
childbearing leave)

Child nursing leave prescribed by law, available after
one year of age and up to two years

61

Accumulated paid leavesystem

Accumulated paid leave for up to 10 days of annual
paid vacation from previous years can be taken forchild nursing or short-term nursing purposes

23

Reemployment system

System to reemploy people who previously left theCompany for childcare or nursing-related reasons

3 enrollment

In-house daycare system

Daycare center provides care for infants and children 33 children
up to entry into elementary school, which is available
for full-time or temporary childcare.

* From fiscal 2014, this system has been extended to children through their sixth year ofelementary school.

46

Supporting Return to the Workplace Following Child Nursing Leave and Nursing Care
Leave
In February 2013, Sysmex Corporation introduced a new support system to facilitate the smooth
return to work of employees who have taken childrearing or nursing care leave, and the employee
is loaned a tablet or notebook PC that he or she can use to connect to the Sysmex email system
and intranet. Three months prior to returning to work the employee on leave can begin viewing“in-house only” company information. We require employees to consult with their superiors before
commencing use of this system. This provides an opportunity to communicate about working
styles after returning to work before that time is actually reached.
Being cut off from the workplace can be an obstacle to a later smooth return. However, this set-up
allows the employee to access Company information at home in real-time, and enables better
communications with colleagues through email. This IT-based system helps the employee getthrough the leave period without experiencing the torment of feelings of alienation and loneliness,
and also allows the employee to play an active role at the workplace upon his or her return.
Aiming for an Even More Comfortable Working Environment
In addition to a childcare support system, Sysmex Corporation has in place a number of othersystems to help employees realize a work—life balance from various perspectives. We allow
employees to use accumulated paid leave to attend hospital consultations for parents and family
members, as well as to accompany family during hospital stays. We also offer a reemployment
system to assist employees resuming work after having been forced to suspend their careers due
to nursing needs. Furthermore, we have introduced a cafeteria-type plan that meets diverse
employee needs by enabling them to choose from a menu of welfare options.
In fiscal 2013, we introduced a new attendance management system with enhanced functions toenable working-hour control over leave taking. We also conducted “positive-off” training, which
encourages more varied working styles for workers ranging from management specialists togeneral employees. In instances in which both husband and wife are Sysmex Corporation
employees, we offer the Leave System to Accompany Spouse Posted Overseas that allows the
spouse not being posted overseas to accompany the one who is, and return to regular
employment upon returning to Japan.
Furthermore, in April 2014 we reorganized our leave system, adding new leave categories forundergoing fertility treatment, making donations or taking part in volunteer activities. We haveintroduced a nursing care leave stipend of ￥100,000 per month, available for up to one year, foremployees who take leave to attend a family member who requires nursing care.
Employee feedback has provided valuable instruction on introducing systems and upgrading ourfacilities in efforts to improve the working environment. At Technopark and certain other locations,
we hold regular Liaison Conferences on Operational Improvements to elicit employees’ opinions on
issues encountered in the workplace.

47

Cooperation between Labor and Management
Aligned to Create a Better Workplace
All full-time employees of Sysmex Corporation, except those holding managerial posts and some inback-office operations, are members of the Sysmex Union, the in-house labor union. In fiscal
2013, membership accounted for 67.7% of employees. Sysmex Corporation and the Sysmex
Union work together to develop systems that help employees maintain their work-life balance.
We conducted collective bargaining in May 2013, with opinions exchanged concerning therealization of a rewarding workplace. We held 11 additional council meetings between labor andmanagement, covering topics such as personnel evaluations, managing working hours, making
compensation systems fairer and improving the workplace environment.
Employee Opinions Reflected in Management
Sysmex conducts a Corporate Culture Survey of employees of all Group companies in Japan every
two years, and we analyze replies to questions on over 100 categories to gain an understanding of
unspoken rules and values within the organization, as well as of the degree of effectiveness ofvarious measures. This is useful in discovering and resolving the issues surrounding the Group.
*

We perform employee satisfaction surveys across all regions, including the Americas, EMEA ,China and the Asia Pacific. Group company Sysmex International Reagents has in place a system
whereby employees form teams to draft proposals on topics such as approaches to making work
improvements, with annual events to announce the successes of these small-group activities.
* EMEA: Europe, the Middle East and Africa

Health and Safety Considerations
Maintaining and Improving Employees’ Health
Sysmex Corporation encourages employees to undergo thorough physical examinations andcancer tests for women, in addition to regular health checkups, for the early detection of illness.
Annual Kokoro no Health Checks are also performed annually to confirm mental health and to
uncover any harassment-related situations.
We provide channels for health consultations throughout the Company, and have in place systems
where employees can meet with industrial physicians and public health nurses. We also haveestablished an employee assistance program (EAP), enabling employees to seek help easily.
As welfare facilities to encourage health maintenance, on the grounds of the Solution Center—theCompany’s customer service headquarters—Sysmex Corporation provides sports grounds andtennis courts, as well as a gymnasium with training equipment. We hold events and seminars asneeded to raise employee awareness of physical health maintenance. In fiscal 2013, we offeredhealthy menu options at the employee cafeteria and had managerial dieticians conduct healthseminars and health consultations.
Preventing Overwork
Recognizing its potential to harm mental and physical health, Sysmex Corporation concentrates on
preventing overwork. In April 2013, we put in place internal standards for working outside regular
hours or on holidays that are stricter than the guidelines set by the Ministry of Health, Labour andWelfare. Employees who exceed these standards are required to communicate this fact to theirsuperiors, submit a voluntary check form and, if necessary, meet with an industrial physician.
48

Occupational Health and Safety
To ensure the health and safety of its workers, Sysmex Corporation has formulated Safety and
Health Regulations. To foster a safe and good working environment, we have also established a
Safety and Health Committee at each of our offices, chaired by the executive at the head of that
office, who is a board member. Employees are given training on emergency measures, how toevacuate when an accident occurs and how to handle machinery and raw materials that arepotentially dangerous. We are also developing citizen emergency life-saving technicians.

Frequency and Severity of Work-Related Injuries (Sysmex Corporation)

Human Resources Development
Promoting Systematic and Effective Human Resource Development
In 2013, Sysmex introduced a new human resource development system that links “assignment
and transfer,” “evaluation and feedback” and “cultivation and education” to cultivate humanresources in a systematic and effective manner. The education and training program comprises
three types of training—selective, rank-based and elective—designed to nurture personnel in aplanned and gradual manner.
In fiscal 2013, employees underwent an average of 11.0 hours of training, and training expenses*

per employee averaged ￥122 thousand .

* This includes training provided by human resource departments and excludes certain typesof training like self-development and related to each divisions specialized work.

49Three Core Training Systems
Training Type

Objective

Selective training

Cultivate global leaders
Cultivate future management personnel

Rank-based training

Acquire the minimum level of understanding and expertise inmanagement and issue resolution required at each level
Promote communication between departments

Elective training(Sysmex College)

Obtain practical expertise, knowledge and skills on business execution
Gain various types of business management expertise

Enhancing the Skills of Employees in Manufacturing Workplaces
Enhancing the technical skills of employees who are involved in
manufacturing is important for Sysmex, which produces medical
equipment. Accordingly, Sysmex Corporation has established the
Monozukuri Training Center, which offers training throughout theyear, to provide hands-on training in this area.

Training underway at the
Monozukuri Training Center

Examples of Activities Overseas*

Obtaining Certification under OHSAS 18001 , an International Standard for
Occupational Health and Safety Management Systems (Brazil)
Sysmex Brazil has acquired OHSAS 18001 certification, an international standard for occupational
health and safety management systems.

* OHSAS 18001: This standard, issued in 1999 based on BS 8800, which was, developed by
the British Standards Institute (BSI) in 1996, consists of some 30 certification bodies andstandardization organizations in various countries.

Creating an Open Corporate Culture (Germany)
Sysmex Europe creates many opportunities for communication
among employees, such as marketing meetings, function
meetings, and unit meetings. Each season brings events inwhich all employees can participate, as well as a Christmas
party, all of which constitute good chances for in-housecommunication. Sysmex Europe has also adopted an open-door
policy, and encourages employees to speak frankly withmanagers.
Employee event50

We deliver commitment to our client companies
through broad-ranging partnerships. We strive
to be a company that can grow in step with ourtrade partners, through respect and mutual
trust.

CSR Promotion throughout the Value Chain
Putting in Place a Procurement Policy that Takes CSR into AccountSysmex Corporation has formulated a procurement policy that expresses its basic considerations
on selecting suppliers and conducting procurement transactions, and is promoting its deployment
across the value chain. In fiscal 2013, we revised the policy to promote CSR through procurement.
We also added a clause about formulating business continuity plans (BCP) as befits a company
that is developing its business globally in the healthcare field, and another on promoting businessactivities and CSR in compliance with the laws, regulations and social conventions of hostcountries. Going forward, we will also promote consideration for human rights in the supply chain.
In accordance with this revision, we asked new procurement partners to complete a survey, towhich we had added questions on CSR-related topics such as occupational health and safety andhuman rights. During fiscal 2013, we conducted CSR surveys of four new potential business
partners.

51

Procurement Policy
In “shaping the advancement of healthcare,” the Mission set forth in the Sysmex Way
corporate philosophy, we deliver commitment to our business partners through equitableand fair procurement activities. We also strive to be a company that can grow in step with
our trading partners in a spirit of mutual trust and encouragement. Operating in strict
compliance with laws, regulations, and contracts, and adhering to high ethical standards, we
carry out consistent procurement of components and raw materials that meet the levels of
quality required by healthcare providers. We closely follow these policies in our endeavors to
supply products that customers worldwide can use with confidence. Similarly, we hope thatour business partners will cooperate with us in the following seven areas as we continue tocreate and enhance unique and creative values.
We ask our valued business partners to:

1. Assure quality to the requisite degree for healthcare products
2. Build a system for reliable supply
3. Refine technological capabilities that contribute to the development of healthcare
4. Create stable business foundations and formulate business continuity plans (BCP)
5. Promote business activities and CSR in compliance with the laws, regulations andsocial conventions of host countries
6. Carry out environmental management to help conserve the global naturalenvironment
7. Supply products at reasonable prices and engage in aggressive cost-reduction
programs
Revised in March 2014

Reinforcing Relations with Procurement Partners
We strive to enhance relations with our procurement partners so
we can conduct business together based on their understanding
our business directions and procurement policy. In fiscal 2013,as part of our 45th anniversary activities we held the Sysmex
Supplier Conference Commemorating the 45th Anniversary of
Establishment. We expressed our appreciation for the services
rendered by our procurement partners, and provided an
opportunity to think together as manufacturing partners aboutbusiness continuity plans (BCP) and other topics.

Sysmex Supplier Conference
Commemorating 45th
Anniversary of Establishment

Aiming to Improve the Quality of Supplied Parts and Raw Materials
Our ability to provide high-quality products to customers in a stable manner depends on
maintaining or improving the quality of the raw materials and parts we procure. We prepared a
Quality Assurance Agreement that defines the quality requirements in 2009, and after also
preparing a handbook to improve understanding of the content we have since been concluding thisagreement with suppliers.
We conduct quality audits without fail on new procurement partners to ensure that quality
management systems are operating appropriately. For existing procurement partners, we inspectproducts for quality when they are delivered, conducting quality audits if deemed necessary as acorrective or precautionary measure.

52

Ensuring Thorough Compliance in Transactions
Conducting Internal Awareness Activities to Ensure Compliance with ProcurementRelated Legislation
We have in place an electronic procurement system (Sysmex Trade Mission, or STM). In addition
to preventing the reduction of payments to inappropriate levels, as well as avoiding productreturns, each year we conduct training on this system. In fiscal 2013, we conducted this training
for 25 people, including people newly assigned to a department that places orders for R&D
materials and new employees. During the training, we highlighted points to bear in mind whenordering materials and provided explanations about complying with legislation such as the Act
against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors.
Explaining Policies on Compliance to Distributors
Sysmex rigorously ensures compliance to build sustainable andfruitful partnerships with its distributors. We prohibit employees
from abusing any dominant bargaining position, offering
excessive entertainment, presents or the like when dealing with
distributors. At the same time, we take advantage ofopportunities presented by product briefings, which are held on
occasions such as new launches, to share our policies andactivities with our distributors, helping them to deepen theirunderstanding of the importance of compliance.
We engage in continuous communications with our overseas
distributors through regular meetings at their locations as wellas teleconferencing and meetings.

53

Distributor meeting (China)

Our shareholders can rest assured that we willcontinue to improve the robustness andtransparency of our management policies,
while promoting information disclosure andclose communications. We commit ourselves toa consistent yet innovative style ofmanagement, in order to achieve sustainablegrowth and increased shareholder value.

Information Disclosure
General Meeting and Informal Meetings for Shareholders
Valuing opportunities for direct dialogue with our shareholders,
we make an effort to encourage the participation of as many
shareholders as possible at the General Meeting of Shareholders.
After the general meeting, we hold informal meetings topromote interaction with shareholders. In fiscal 2013, the themeof the meeting was “Sysmex, instilling confidence.” After using
panels and video to provide explanations about our business andIR activities, personnel measures and global social contribution
activities, as well as third-party evaluations of Sysmex, we
opened the floor for comments and questions.

Informal meeting forshareholders

We accommodate shareholders who are unable to attend on the
day by enabling them to exercise their voting rights in writing orover the Internet. Furthermore, we contribute to the readabilityof convocation and resolution notices. We also prepare Englishlanguage versions for overseas shareholders, print color
convocation notices and post the same information on our
corporate website.
Further Enhancing Information Disclosure
We make it a rule to disclose any information that we believe will affect investment decisions inlight of our own standards, as well as to observe applicable laws and regulations concerning
securities trading and the Rules on Timely Disclosure of Corporate Information by the Issuer of
Listed Security and the Like established by stock exchanges.
In addition to biannual briefings on financial results (after year-end and after the second quarter),since the third quarter of fiscal 2011 Sysmex has held a conference call following theannouncement of business results in the first and third quarters in an effort to further enhance
information disclosure.

54

External Evaluation
Chosen for Excellence in Disclosure to Individual Shareholders for Second Consecutive
Year
In fiscal 2013, Sysmex received an award for the second
consecutive year. In the 2013 Awards for Excellence in Corporate
Disclosure, sponsored by the Securities Analysts Association ofJapan, we were selected for excellence in disclosure to individual
investors. Out of the more than 200 companies evaluated, wewere ranked second.
We were given high marks for our chairman and CEO’s
explanations in his own words to individual investors at theCompany’s briefing meetings. On the content front, we werecommended for the simple format that facilitated understandingof our business model. In addition, we received strong accolades
for video distribution via our website.

55

Awards for Excellence inCorporate Disclosure award
ceremonyBasic Policy
Sysmex established its Policy on Corporate Citizenship Activities and Philanthropy in May 2012,indicating how the Company will pursue behaviors and commitment as a good corporate citizen.

Policy on Corporate Citizenship Activities and Philanthropy
Sysmex actively carries out corporate philanthropic activities to promote a healthy society
and vibrant community, and also facilitates our employees’ personal participation involunteer efforts.

Contribution to a healthy society
Sysmex actively utilizes its resources in the healthcare field to carry out
philanthropic activities and promote the building of a healthy society.
Cooperation toward a vibrant local community
Sysmex acts as a responsible and socially-conscious corporate citizen bycooperating with the local community through donations, sponsorships andinvolvement in philanthropic programs.
Facilitation of employees’ volunteer efforts
Sysmex will facilitate employees’ participation in volunteer efforts as citizens of theworld, members of Sysmex group that contribute to healthcare in the world, andemphasize community involvement and development.
Established May 2012

Systems to Facilitate Employees’ Efforts toward Social
Contribution
We introduced the Social Contribution Point System in April 2014 to encourage employees to takepart in social contribution activities. Under this system, employees earn points for participating insocial contribution activities, as well as social contribution events sponsored by the Company. They
can redeem the points they earn for items such as emergency medical kits, antimalarial drugs,
vaccines to be donated to developing countries. This approach allows employees to decide what
donations they wish to make.
Through systems such as these, we strive to play a role in encouraging employees to take theinitiative in participating in social contribution activities as a member of society.

56

Participation in the Kobe Medical Industry Development Project
The Kobe Medical Industry Development Project aims to create a focal point among healthcare
industries in Kobe through industry–government–academia cooperation.
Sysmex Corporation established the Sysmex Asano Laboratory in January 2007 within theTranslational Research Informatics Center, one of the core facilities of this project. In March 2014,
the name of this laboratory was revised to Sysmex IBRI. By turning this into an open lab that
promotes collaborative research between various medical institutions and companies, we aim tofurther expand its scale of research, while maintaining immunological disease diagnosis
technologies at its core.
Funding of University Courses
Since fiscal 2004, Sysmex Corporation has contributed funds to a course at the Kobe University
Graduate School of Medicine. The course, entitled “Assessment of Clinical Testing (Sysmex),”consists in research into new clinical testing technologies, including the research and study of
autoimmune diseases such as connective tissue disease and rheumatism. Advances will continue
to be made in the development and verification of the utility of new clinical testing methods,
bringing about the realization of personalized medicine, which is one of the challenges of recent
years. In addition to achieving accuracy in diagnoses, this research also contributes to theestablishment of methodologies that can provide patients with efficient treatment with few side
effects, and we expect the research to make significant contributions to society.
The Nakatani Foundation of Electronic Measuring Technology Advancement, established topromote the development of electronic measuring instruments, became a public interest
incorporated foundation in 2012 and changed its name to the Nakatani Foundation for
Advancement of Measuring Technologies in Biomedical Engineering. This foundation provides
awards and grants for research in the field of biomedical measurements and related technologies.
The current fiscal year marks the foundation’s 30th anniversary of establishment. In
commemoration, the foundation expanded its research grants and extended its grant-giving
activities to include grants for overseas study and to promote science education at the junior andsenior high school level.
From the time of its launch through fiscal 2013, the foundation has provided 321 grants
amounting to a cumulative ￥603.04 million.
Continuing to Support Blood Donations
Sysmex, which provides the testing instruments used for blood
donations, is also an active participant in blood donations.
Several times each year, employees at Technopark, theKakogawa Factory, the Ono Factory, the Seishin Factory andother facilities cooperate with the blood donation activities of our
local Red Cross center in Hyogo Prefecture.
In recognition of these efforts, in August 2013 the Kakogawa
Factory received a gold merit plaque and the Ono Factory asilver plaque from the Japanese Red Cross Society as part of its
fiscal 2013 Hyogo Prefecture blood donation merit awards. The
Japanese Red Cross Society provides these awards in recognitionof major contributions, the gold and silver signifying 20 years
and 15 years of continued blood donation activities, respectively.

57

Gold merit plaque received by the
Kakogawa Factory

Conducting a Training Course for Citizen Emergency Life-Saving Technicians
Each year, Sysmex Corporation holds a training course for citizen
emergency life-saving technicians at Technopark or the Solution
Center. Certified by the city of Kobe First Aid Support Team(FAST), this course is designed to train people in appropriate
responses in the event of illness or injury.
In November 2013, instructors from a nearby welfare centercame to the Solution Center to conduct this training. The 18
participants underwent practical training on cardiopulmonary
resuscitation procedures, including heart massage, artificial
respiration and use of an automated external defibrillator (AED).

Training course for citizen
emergency life-saving techniciansParticipating in International Cooperation Efforts
Sysmex takes part in international cooperation efforts by Japan’s
Ministry of Foreign Affairs and the Japan International
Cooperation Agency (JICA) by providing materials andinstruments (either by extending yen credit or through outright
donation) aimed at raising the level of healthcare in emerging
and developing countries.
Every year, Sysmex hosts trainees visiting Japan through JICA
programs at its research facilities. In fiscal 2013, three times
interns from Africa, Oceania, Central America and other regions
underwent training at our facilities, including the Solution Center
and Kakogawa Factory.

58

JICA trainees

Contributions in Hyogo Prefecture, Sysmex’s Headquarters
Location
Holding Various Community Events
Every year, Sysmex Corporation invites community residents to its offices to strengthen its
relationship with the local community. In May 2013, we held a Technopark Festa, whereparticipants could attend health-related lectures and experiencing measurement of estimatedhemoglobin levels. Some 700 visitors took part in these and other activities.
In fiscal 2013, we also opened the Minato Ijinkan to the public for two days from November 30,
2013. A historical edifice constructed in 1906, the structure had become decrepit and was closed
to the public in 2008. In September 2012, Sysmex rented the building, performed renovations andnow uses it as a guest house. In addition to making the building open to the public, we held aphoto exhibit introducing the history of Kobe and arranged for other enjoyable events. Some 250
people visited. We plan to open Minato Ijinkan to the public on a regular basis going forward.

Technopark Festa

Photo exhibit at the Minato
IjinkanLocal Community Development Support
Sysmex Corporation supports local development through donations and sponsorship.
Kobe Luminarie
Sysmex is a regular sponsor of Kobe Luminarie, an annual illumination event that originated as amemorial for the victims of the 1995 Great Hanshin−Awaji Earthquake and which is held in thehopes of reconstructing/restoring Kobe and all of Hyogo Prefecture.
The Kobe Oji Zoo Animal Sponsor Program
The program invites individuals and businesses to support the zoo by sponsoring particular speciesof animal at the institution. We elected to support the giant pandas, among the most popular of
the zoo’s inhabitants.
Sponsoring the KOBE JAZZ FESTIVAL
Sysmex sponsors the KOBE JAZZ FESTIVAL, which aims to spread Kobe’s jazz culture and cultivate
the jazz musicians of the future. The festival includes concerts by professional jazz artists, as well
as jazz bands from local junior and senior high schools and universities.

59

Environmental Contribution
An Eco Team formed by Sysmex Corporation employees who areinterested in environmental preservation activities has been
conducting various activities since fiscal 2008.
In fiscal 2013, we continued with a project ongoing since fiscal
2010 involving afforestation on the Tsurukabuto Forest on Mt.
Rokko, in Hyogo Prefecture. In addition, we conducted cleanups
around our office locations, working to improve the community.
Group companies also dispatch employee volunteers to perform
cleanup activities in nearby areas.

Tsurukabuto Forest afforestation
project

Supporting the Education of Local Youth
Sysmex Corporation actively hosts company tours for local juniorand senior high schools, universities and schools for laboratory
technologists, and we cooperate in the Try-yaru Week workplace
experience program held annually for Hyogo Prefecture juniorhigh school students. We also take part in the Science Fair in
Hyogo, an event participated in by companies, universities andresearch institutions, at which math and science high school
students in Hyogo Prefecture annually present their research
results.

6th Science Fair in Hyogo

At the 6th Science Fair in Hyogo, held in February 2014, we
provided a health check experience that involved ASTRIM, ourproduct that measures estimated hemoglobin levels without theneed for blood sampling. We also put up posters explaining ourbusiness. The ASTRIM proved popular, being tried by nearly 200
people.

Other Community Contributions
Hosting Student Interns
Sysmex accepts ambitious students on internship programs every year from Japan and othercountries in which the Company conducts business.
In the past, we have hosted student interns from South Korea, China and Russia. In May 2013, we
invited six students from India and Thailand to visit Japan, tour our factories, view instrument
maintenance and experience logistics operations. These efforts provide opportunities for Sysmex
to gain the interest of students overseas. We will continue such internship programs as part of ourefforts to foster regional development in tandem with the growth of our business.

Student interns from India

Student interns from Thailand60

As a responsible member of society, we play anactive role in resolving environmental issues
and other problems that impact our society
today.

Environmental Policy
By shaping the advancement of healthcare, our global environmental conservation activities
contribute to the creation of a fulfilling and healthy society.

Core behavior
1. We deliver reassurance to all people by carrying out business activities in anenvironmentally conscious manner.
2. We strive to provide eco-friendly products and services while giving careful thoughtof environmental issues throughout their life cycles.
3. We strive to conserve energy and resources, reduce wastes, promote recycle andproperly control chemical substances in all business activities.
4. We comply with all applicable national or regional environmental regulations,standards and agreements.
5. We continually improve our environmental conservation activities and work
diligently prevent pollution and minimize the impact our products have on theenvironment.
6. We contribute to society through environmental conservation activities as amember of the community, while educating and raising the environmental
consciousness.
7. We establish environmental objectives and targets consistent with thisenvironmental policy, and measure our performance against them.
Revised May 200961

Environmental Management System

Environmental Policy
By shaping the advancement of healthcare, our global environmental conservation activities
contribute to the creation of a fulfilling and healthy society.

Core Behaviors
1. We deliver reassurance to all people by carrying out business activities in anenvironmentally conscious manner.
2. We strive to provide eco-friendly products and services while giving careful thoughtof environmental issues throughout their life cycles.
3. We strive to conserve energy and resources, reduce wastes, promote recycle andproperly control chemical substances in all business activities.
4. We comply with all applicable national or regional environmental regulations,standards and agreements.
5. We continually improve our environmental conservation activities and work
diligently prevent pollution and minimize the impact our products have on theenvironment.
6. We contribute to society through environmental conservation activities as amember of the community, while educating and raising the environmental
consciousness.
7. We establish environmental objectives and targets consistent with thisenvironmental policy, and measure our performance against them.
Revised May 2009

Promoting Environmental Activities
Sysmex is pursuing groupwide to achive the targets set in the Sysmex Group Environmental
Action Plan (Sysmex Eco-Vision 2020), which was set in fiscal 2010 and revised in fiscal 2012.
In fiscal 2013, we established Global Environmental Management Regulations to reinforce Groupenvironmental management by clarifying the roles and responsibilities of Group companies. We
have assigned a senior executive officer and senior managing director of Sysmex Corporation asenvironmental management officer to oversee and control Group environmental management. We
have in place a global environmental management system under which we promote environmental
activities in individual regions and fields of operation under his instruction.

62

Acquiring ISO 14001 Certification
Sysmex is working toward the acquisition of ISO 14001, the international standard forenvironmental management, for the Group’s principal affiliated companies. As of April 30, 2014,
19 companies had obtained this certification.
In fiscal 2013, we integrated our certifications for ISO 14001 in Japan, adding Sysmex RA and
Sysmex Medica certifications to those for Sysmex Corporation and Sysmex International Reagents.
By centralizing the environmental activities of Group companies in Japan and seeing the progresssituation and issues of activities as a Group, we aim to enhance our management.

Acquiring ISO 14001 Certification
Company Name
Sysmex Corporation

Sysmex International Reagents

Site

Acquired in

Kakogawa Factory

April 2000

Technopark

February 2002

Head officeFebruary 2002

Solution Center

November 2005

Ono Factory

March 2001

Seishin Factory

June 2007

Sysmex Medica-

March 2001

Sysmex RA-

June 2008

Sysmex Europe

Neumunster Factory

November 1999

Head office

October 2011

Sysmex Deutschland-

October 2011

Sysmex Brazil-

May 2006

Sysmex America-

December 2009

Sysmex Reagents America-

December 2009

Sysmex New Zealand-

May 2011

Sysmex India-

March 2012

Sysmex Asia Pacific-

April 2012

Sysmex Middle East-

March 2013

Sysmex Wuxi-

June 2013

Conducting Environmental Auditing
In fiscal 2013, the four Group companies for which certification in Japan has been integrated
conducted evaluation of compliance for the environmental laws and regulations as
self-assessments and internal environmental audit, and got external environmental audit by athird-party auditing organization.
The internal environmental audits found two nonconformities, while the external environmental
audits discovered three, and corrective actions for these nonconformities were promptly
completed.
Managing Poisonous and Deleterious Substances
In February 2014, Sysmex International Reagents Co., Ltd., discovered that 46.2g of sodium azide
had been lost at its Seishin Factory. The company quickly mounted an internal investigation but
was unable to locate the missing substance.
As sodium azide, which is used in the manufacture of diagnostic reagents, is subject to the
Poisonous and Deleterious Substances Control Act, the company promptly filed a police report
indicating the loss. To prevent a recurrence, we will reinforce our control structure.

63

Plans and Objectives
Sysmex Group Environmental Action Plan (Sysmex Eco-Vision 2020)/ Mid-term
Environmental Objectives
Sysmex Eco-Vision2020 Long-term
Environmental
Objectives(FY2020)(Revised Edition)

Promote eco-friendly
products and service
modelsMid-term
Environmental
Objectives(FY2013 – 2015)

Activities/Achievements
in FY 2013

Promoted efforts toward RoHS
directive compliance
Promoted productdevelopment for reduced
power consumption
Promoted a switchover ofprotein raw materials used inreagents from animal
derivatives to artificiallysynthesized protein
Promoted reduction inmaterials used in productcontainers and packaging
Promoted expansion of remote
service in Asian regions for
CO emissions reduction

Promoteeco-friendly
products andservice models

Environment
consciousness
in product life
cycle process2

through improved service
efficiency
Reduce carbon dioxide
emissions for logistics by
50% (per unit of freight
ton-km: Japan domestic
and inter-regional*1transportation)

Reduce carbon
dioxide emissions
for logistics by
30% (per unit of
freight ton-km:
Japan domestic
and inter-regionaltransportation)64*1

For exports, promoted shift
from air to ocean transport
Result in fiscal 2013: 0.15
Base year (fiscal 2010): 0.14
Up 3% against base year

Reduce greenhouse gas
emissions at businessoffices by 50%(per unit
*2of consolidated sales)

Reduce greenhousegas emissions atbusiness offices by
25% (per unit ofconsolidated
sales)*2

Installed equipment (including
thorough air conditioning
controls, installation of energy
efficient fluorescent lighting,placement of motion detectors
to activate staircase lighting)as measures against global
warming (each business office)
Purchased electricity frompower companies using
renewables (Sysmex Europe)
Reduced CO emissions by2

using solar power (Sysmex
Europe Neumünster Factory)
Result in fiscal 2013: 8.19
Base year (fiscal 2008):
10.07
Down 20% against base year

Environment
consciousness
at businessofficesAchieve a recycle rate of
93% or higher at all*3business offices

Achieve a recycle
rate of 90% or
higher at all
business offices*3

Conducted review of waste
disposal companies(Technopark)
Reuse of packaged onoutsourced items (Sysmex
Wuxi)
Result in fiscal 2013: 88.9%
Installed water purifying
equipment (Jinan Sysmex)
Reused industrial waste water
after treatment (Sysmex
India)

Reduce water
Reduce water usage atusage at reagent
reagent factories by 10%
factories by 3%(per unit of amount of(per unit of amount*4
production)*4of production)
Result in fiscal 2013: 22.0

Base year (fiscal 2008): 21.5
Up 3% against base year

*1 Sysmex Corporation*2 Business offices: All Factories and major business sites
Twelve domestic and overseas Group factories (five in Japan; one each in Germany, theUnited States and Brazil; two in China; one each in India and Singapore)
Eight domestic and overseas Group offices (four in Japan; one each in Germany, theUnited States, China and Singapore)*3 Business offices: All Factories and major business sites that product and/or chemical
substances are handled
Twelve domestic and overseas Group factories (five in Japan; one each in Germany, theUnited States and Brazil; two in China; one each in India and Singapore)Six domestic and overseas Group offices (two in Japan; one each in Germany, the UnitedStates, China and Singapore)*4 Reagent factories (nine sites)

65

Reducing the Use of Substances with Environmental
ImpactConforming with Regulations*

Application of the revised RoHS Directive (which was amended in July 2011) to Sysmex's
diagnostic instruments and diagnostic instruments for animals begins from July 2016.
To ensure its compliance with this revised RoHS Directive, Sysmex is conducting parts inspections
on products shipped to Europe. After completing these inspections in fiscal 2014, we will introduce
design changes on parts requiring a response. By moving forward with this initiative, we aim toachieve full compliance in fiscal 2015.

* RoHS Directive: A directive prohibiting the use of hazardous substances in electrical andelectronic devices sold in the European Union. This directive calls for the cessation of use ofheavy metals (lead, cadmium, mercury and hexavalent chromium) and specified brominecontaining flame retardants (PBB and PBDE).

Developing Smaller, More Energy-Efficient Products
To help our customers save energy, we are pursuing efforts to develop diagnostic instruments thatare smaller and use even less electricity.
To reduce the environmental impact that occurs during product shipping, we are cutting back on
the use of packaging materials and pursuing ways of making packaging methods more efficient.
Establishing Eco-Friendly Diagnostic Reagent Raw Material Production
Sysmex has established a method of producing from silkworms
the proteins used as raw materials in its diagnostic reagents.
Our protein production contracting service business using thistechnology has also been fully operational since fiscal 2012, andwe are already taking orders from a number of pharmaceuticalcompanies.
In the past, proteins were cultivated with equipment such as
tanks to control for environmental factors (such as sterility,
temperature and oxygen concentrations), using cells frommammals and other animals; the new approach reduces energy
consumption substantially. As silkworms can be cultivated atroom temperature, simply by using shelves and breeding
containers and providing them with food, we anticipate energy
savings and waste reduction.

66

Silkworms to produce proteinsEco-Friendly Service
Promoting Eco-Friendly Service Models
Sysmex is lowering environmental impact by making service more efficient.
For example, in addition to expanding the functions of the Customer Support Center, we are*minimizing downtime for diagnostic instruments in use by constructing the SNCS (Sysmex
Network Communication Systems) to maintain interactive communication with customers.
This system leads to reduced visits to customer sites by our employees, allowing reductions in theamounts of gasoline used by company cars and the amounts of CO emitted by them.
2

Reducing CO Emissions for Logistics
2

We are also promoting efforts to reduce CO2 emissions generated in logistics processes. We areshifting from air to ocean freight when shipping products overseas, but urgent shipments often
require products to be transported by air. We have undertaken initiatives to increase shipping
container loading efficiency and conduct ocean transport in a more planned manner to reduce theneed for rush shipments.
In fiscal 2013, CO2 emissions increased approximately 3% year on year when converted to the*unit per ton-kilometers , but when compared on a real numeric basis, emissions were down by
approximately 3%, due to such measures as promoting a shift to ocean transport.

* Ton-kilometer: A unit of freight carriage equal to the transportation of one metric ton of
freight one kilometer. For example, one metric ton of freight transported one kilometer isexpressed as “one ton-kilometer.”

FY2011FY2012

Within Japan

1,256t‐CO

Exports

3,279t‐CO

1,145t‐CO

2

4,528t‐CO2

FY20132
2

1,237t‐CO
4,251t‐CO22

CO emissions from logistics
2

Notes: Range of calculation is CO from warehouse in Japan to customers within Japan and2that to overseas seaport or airport.

67

Environment Consciousness at Business Offices
Reducing Greenhouse Gas Emissions at Business Offices
We are promoting various measures at each site, in order toreduce greenhouse gas emissions at our business offices.
At our business offices including factories, we are implementing
energy-saving measures to meet each office’s characteristics,
such as thoroughly monitoring room temperatures in summer
and winter, installation of moving detectors to activate staircase
lighting, and introducing energy-efficient fluorescent and LED
lighting, etc. We have installed demand monitoring functions tocontrol overall electricity use in some business sites.

LED lighting (Ono Factory)

As a result of these initiatives, in fiscal 2013 greenhouse gas
emissions (unit per consolidated sales) were down
approximately 5% from the preceding fiscal year.

Greenhouse gas emissions at businessoffices

Notes: Scope of the data: Factories and major
business offices
12 factories in Japan and overseas(five in Japan, one each in Germany,
the USA, Brazil, India and Singapore,and two in China)
Eight major business offices in Japanand overseas (four in Japan, one eachin Germany, the USA, China andSingapore)

68

Reducing Waste at Business Offices
We are continually striving to reduce waste and increase our recycling rate through such efforts asreviewing waste disposal companies. Sysmex Wuxi, for example, has worked on reducing waste byreusing PE bags used for materials packaging in production and development offices and also fortrash bags as housewares . In Japan, we are promoting the use of garbage disposer to generate
fertilizer from garbage at employee cafeterias in business offices that generate substantial
amounts of garbage. We are continuously conducting various approaches at each sites. In fiscal
2013, at Technopark we installed a garbage disposer that completely eliminates garbage, reducing
approx. 20% of burnable waste.
Through these approaches, the Group is maintaining a stable recycling rate from year to year.

Business office recycling rate

Notes: Scope of the data: Factories and major business offices that handle products andchemical substances
12 factories in Japan and overseas (five in Japan, one each in Germany, the USA,
Brazil, India and Singapore, and two in China)
Six major business offices in Japan and overseas (two in Japan and one each inGermany, the USA, China and Singapore)

Reducing Water Use and Adequate Wastewater Processing at Factories
We are working to improve efficiency of water use and reduce water use volume. At Sysmex India,
for example, factory wastewater is purified and used as watering for the green space in the facility,
although individual sites is proceeding with approaches, due to impacts such as increased
production volume and extension or reconstruction of factories, in fiscal 2013 water use increased
for approx. 3% year on year.

Water use at reagent factories

Note: Scope of the data: Reagent factories (nine locations)69

Others

Reducing CO Emissions from Company Cars in Japan2

To reduce CO emissions from some 400 company cars in Japan, we are approaching to visualize
2

the travel distance and the amount of use fuel for each company cars and heighten driverconsciousness. We are also promoting to introduce fuel-efficient cars and and hybrid cars, but theCO emissions from company cars increased approximately 5% over the previous year's during
2

fiscal 2013 in Japan because of expansion for scope of the data, etc.

Thorough and Careful Management and Proper Processing of Infectious Materials
Sysmex International Reagents uses biological substances as raw materials of products, andTechnopark uses them as experimental materials for research and development. As thesesubstances have infection potential, as a measure of precaution, they are managed strictly such as
limit of location to storage and use them according to the manual, and furthermore, thesesubstances are carefully segregated from general waste for proper disposal.

Reducing Paper Use by IT
Sysmex Corporation has introduced tablet computers to promote paperless meetings. Thisapproach reduces paper use and waste volumes, as well as eliminating such processes as printing
and distributing documents prior to meetings. Meeting efficiency is also improved, as data can be
distributed digitally to meeting participants beforehand.
We have also reduced paper use by using digital data rather than paper when presenting drawingsof product parts to suppliers.

Promoting Green Procurement
Sysmex has established Green Procurement Standards and works to enlighten the environmental
consciousness of its suppliers. We also disclose on our website the chemical substances that we
limit to use or reduce in our products, and we ask our suppliers of parts and raw materials fortheir cooperation in this regard.

Promoting Green Procurement
In addition to reducing the environmental impact of its products, Sysmex is promoting green
procurement in the aim of lowering the environmental impact of production activities, including
suppliers' activities. As a responsible corporate citizen, Sysmex positions environmentallyconscious purchasing as one of its procurement policies.

70Green Procurement Standards
We have formulated Green Procurement Standards to describe our basic stance on
environmentally considerate procurement activities.

Green Procurement Standards
1. Objectives
In accordance with its environmental policy, the Sysmex Group strives to fulfill its
corporate social responsibility by promoting global environment conservation.
Accordingly, we endeavor to promote the manufacture of environmentally friendly
products by encouraging the procurement of raw materials and parts that have low
impact on the global environment. These standards aim to cultivate environmental
conservation activities with motivated suppliers and enable us to work together
toward the development of a sustainable society.
2. Green Procurement Initiatives
We practice “green procurement” to ensure that our procurement activities promotea reduction in the environmental impact of the Company’s products and reduce theenvironmental impact of all production activities, including those of our suppliers.
We promote the two items below as specific green procurement initiatives.
1) Promote the procurement of raw materials and parts that have lower
environmental impact.
2) Expand business with suppliers motivated to conserve the environment.
3. Scope of Application
These standards apply to the procurement of raw materials, parts and products by
Sysmex Group companies.
4. Control of Chemical Substances in Products
The Sysmex Group requires the selection of materials and parts for the products it
develops and produces to be based not only on the requisite quality, performanceand economic feasibility, but also on the minimization of environmental impact.
Therefore, raw materials and parts that do not employ the chemical substances
described below shall be adopted:
1) Substances prohibited according to restrictions on chemical substances
contained in products shall not be contained.
2) Those in which the chemical substance amounts defined under restrictions on
chemical substances contained in products shall be monitored.
3) Those for which the environmental impact of the chemical substance in termsof atmospheric pollution, water contamination, soil pollution, etc. shall be low.
4) Environmental impact data for materials shall be disclosed.
5) In relation to packaging materials, when all of the aforementioned factors are
identical, that with the lowest volume of contained chemical substances shallbe selected.
Revised November 201471

Environmental Impact of Business Activities

72

SRI (Socially Responsible Investment)
Socially responsible investment (SRI), assessing and screening corporate performance indimensions like environment and social fairness as well as economy for a sustainable society, isdrawing attention.
*1

Sysmex Corporation has been selected as a member of the FTSE4Good Index , a leading SRI
index, since fiscal 2008. We have also been selected as a member of the Asia Pacific Index of the*2

Dow Jones Sustainability Indexes*3

Ethibel Excellencesince fiscal 2012. In addition, we have been designated forby Forum Ethibel, a Belgian SRI evaluation organization.

*1 FTSE4Good Index: SRI index developed and managed by the U.K. FTSE Group, a joint
venture between the Financial Times newspaper and the London Stock Exchange.
*2 Dow Jones Sustainability Indexes: SRI index developed through collaboration between S&P
Dow Jones Indexes of the United States and Robeco SAM, a Swiss research specialist in
the area of socially responsible investment.
*3 Ethibel Excellence: Select stocks chosen for demonstrated performance above a certain
level in terms of CSR issues related to observance of human rights and environmental
contributions.

73

Recognition and Commendation by Third Parties
2014
April

Received the Fiscal 2014 Commendation for Science and Technology(Development Category) by the Minister of Education, Culture, Sports, Scienceand Technology for the Development of a Method for Analyzing Formed Elements
in Urine

March

Selected for the Companies That Care Honor Roll 2014 (Sysmex America)* Companies That Care Honor Roll 2014: A corporate ranking that designatescompanies that contribute to the welfare of employees, their families and local
community, based on a survey conducted by the Center for Companies That
Care, an NPO*

2013
DecemberReceived the German Design Award (sponsored by the German Design Council) for
the XN-2000 automated hematology analyzer and XN reagents

NovemberReceived the "Chairman's Prize from the Hyogo Institute of Invention andInnovation" for one invention and "The Encouragement Prize for Invention" forthree other inventions at the Kinki Local Commendation for Invention

November

Selected in the Top Workplaces survey of regional organizations by the Chicago
Tribune (Sysmex America)

October

Selected for excellence in disclosure to individual investors at the Awards for
Excellence in Corporate Disclosure, sponsored by the Securities Analysts
Association of Japan

October

Received the Good Design Award, sponsored by the Japan Institute of Design
Promotion, for the ASTRIM FIT health monitoring analyzer

July

Our online network support service, Sysmex Network Communication Systems(SNCS), received a Grand Prix at the IT Japan Award 2013, sponsored by Nikkei
Computer (published by Nikkei Business Publications, Inc.)

June

Received the Hyogo Prefecture Invention Award for Specimen Analyzers and White
Blood Cell Classification and Counting Method/White Blood Cell Classification andCounting Kit

April

Received the Fiscal 2013 Commendation for Science and Technology(Development
Category) by the Minister of Education, Culture, Sports, Science and Technology,
for development of the method of classifying and counting particles by automatedhematology analyzer

March

Selected to the Companies That Care Honor Roll 2013 (Sysmex America)

January

Received Germany’s iF Product Design Award for the XN-2000 automatedhematology analyzer and XN reagents

74

2012
NovemberReceived "The Encouragement Prize of the President of Japan Patent Attorneys
Association" for one invention, and "The Encouragement Prize for Invention" forthree inventions at the Kinki Local Commendation for Invention Awards

October

Received commendation at the Securities Analysts Association of Japan Corporate
Disclosure Study Group Awards

October

Selected one of the 2012 Best Places to Work in Healthcare in recognition of its
high level of employee satisfaction （Sysmex America）* Best Places to Work in Healthcare: Ranking of companies selected andrecognized by employees from the healthcare industry as good places towork. Based on research by industry publication Modern Healthcare
AugustSysmex 2011 Annual Report awarded a bronze medal in the Healthcare
Technology category of the 26th Annual International ARC Awards (held by
MerComm, Inc., of the United States)

AugustReceived Healthcare’s Hottest Award* in recognition of rapid sales growth(Sysmex America)* Healthcare’s Hottest Award: Healthcare companies with continuous growththat have generated a minimum of $20 million in annual revenue in mostrecent fiscal year are selected based on research by industry publication
Modern Healthcare
May

Received the award for contribution to industrial development of Hyogo inrecognition of initiatives to the Kobe Chamber of Commerce and contributions
invigorating regional industry
Received Hyogo Prefecture Invention Award for “Hematological analyzer samplingprobe cleaning composition and method of using”and “Automated hematology
slide preparation unit”

March

Selected for Companies That Care Honor Roll 2012 (Sysmex America)

March

Selected as among Germany’s Best Employers in 2012* in recognition of its highlevel of employee satisfaction (Sysmex Europe)* An employee satisfaction survey of over 400 companies conducted by aGerman researcher
February

Received 2012 Achievement in Customer Excellence Award* for high-quality
service (Sysmex America）* A program recognizes outstanding achievement in customer, employee andpartner satisfaction by MarketTools, USA.
January

Selected for inclusion in the 2012 Global 100 (100 most sustainable companies in
the world)

75

2011
December

Selected one of the 2011 Best Places to Work in Healthcare(Sysmex America)

NovemberReceived the Good Design Gold Award 2011 for its highly rated in vitro diagnostic
system employing the Sysmex’s new Silent Design®

AugustReceived Technology Award from the Japan Society of Clinical Chemistry for ‘A
Novel CK-MB Activity Assay Kit “L-System CK-MB” Using Anti-human Mitochondrial
CK Antibodies'May

Received the “Invention Award” in the 2011 National Commendation for Invention,sponsored by the Japan Institute of Invention and Innovation, for technologies
related to its white blood cell classification and counting method and associatedreagents

March

Won the Hyogo Governor's Award in the 3rd Hyogo Manufacturing Technology
AwardsMarch

Selected for Companies That Care Honor Roll 2011 (Sysmex America)

February

Sysmex Technopark R&D Tower received CASBEE Architectural Award (1st City of
Kobe Design Award, CASBEE Category Architectural Award)

January

Received Nikkei Annual Report Award 2010 (presented by Nikkei Inc.) for theattractive layout, design and overall balance of our annual report

2010
NovemberReceived the Director-General of the Patent Office Encouragement Award (1award) and Invention Encouragement Award (3 awards) in the Kansai Region
Commendation for Invention
The OSNA method received the “Best Ideas in Healthcare 2010*“ award (hosted
by Diario Médico) in Spain* From 2002, Diario Médico, the leading medical newspaper publisher inSpain, has selected the best initiatives, products or projects leading tosignificant improvements in healthcare. In 2010, out of 506 ideas,
Sysmex's OSNA method received the "Best Ideas in Healthcare 2010"
award in the research and pharmacology field
October

Received the Minister of Economy, Trade and Industry Award in the Intellectual
Property Achievement Award
Received the Kobe Environmental Achievement Award

AugustSysmex Annual Report 2009 won the Gold Award in the healthcare category of the2009 Vision Award

July

Honored with the Invention Award in the National Commendation for Invention

April

Received the Hyogo Prefectural Invention Award

March
February

Selected for Companies That Care Honor Roll 2010 (Sysmex America)
Our initiative to “turn food waste into compost” recognized as a “Hyogo Biomass
eco Model*” (organized by the Hyogo Prefectural Government)* Recognizing pioneering initiatives in the efficient utilization of biomass in
Hyogo Prefecture

76

2009
October

Our R&D hub, Technopark, received the Encouragement Award of the Urban GreenSpace Award* (organized by the Urban Green Space Development Foundation)* Commends companies that have achieved outstanding results in improving
the environment by using trees, flowers, and other “greenery,” thus
contributing to the creation of lush urban neighborhoods
September

Our R&D hub, Technopark, received the Promotion Award of the Best of New
Offices award** Commends offices that incorporate originality and ingenuity, arecomfortable and functional, stimulate sensitivity, and enhance creativity
September
April

Received Honorary Award from the Mongolian Health Minister in recognition of ourinvestigation and support for external quality control
Selected as one of Daiwa Investor Relations’ “580 companies that maintainoutstanding Internet IR Site” for our IR siteMarch

Our IR site received the Gómez IR Site Ranking Excellent Award

March

Selected for Companies That Care Honor Roll 2009 (Sysmex America)

2008
December

Our R&D hub, Technopark, assessed as the first-ever CASBEE* class S (highest
class) facility in Kobe City

* Comprehensive Assessment System for Built Environment Efficiency:
Assesses buildings in terms of the global environment, earthquake
performance, barrier-free functions, landscape, etc.
November

October
March

Received one “Commissioner of the Japan Patent Office Invention Incentive
Award” and three “Invention Incentive Awards” in the 2008 Kinki Local
Commendation for Invention (organized by the Japan Institute of Invention andInnovation)
Received the “Fiscal 2008 Kobe Men & Women Iki-iki Business Establishment
Award” (organized by the Kobe City Government)
Our Sustainability Report 2007 received the Encouragement Award given as a partof the Environmental Communication Awards (organized by the Ministry of theEnvironment of Japan)

2007
December

The Sysmex Annual Report received the Special Award in the Nikkei Annual ReportAwards 2007

NovemberReceived a “Shibucho-award (Award from the Branch Director)” and two“Invention Incentive Awards” in the 2007 Kinki Local Commendation for Invention(organized by the Japan Institute of Invention and Innovation)

April

Our “reagent technology for measuring immature cells in the blood” received the2007 Minister of Education, Culture, Sports, Science and Technology Award(organized by the Ministry of Education, Culture, Sports, Science and Technologyof Japan)

77

ISO 26000
The chart below includes the seven core subjects of the ISO 26000* and indicates the location of“Sysmex Sustainability Report” that correspond to individual subjects.

* ISO, the International Organization for Standardization, released an International Standard
providing guidelines for social responsibility named ISO 26000 in November 2010.

Core Subjects
Organizational Governance

Location
P25 Management
P3 Message from the Chairman and CEO

Human Rights

P42 Involvement with Employees

Labor Practices

P42 Involvement with Employees

The Environment

P61 Environmental Conservation Activities
P11 Highlight 2

Fair Operating Practices

P13 Highlight 3

P25 Management
P51 Involvement with Business Partners

Consumer Issues

P35 Involvement with Customers

Community Involvement andDevelopment

P56 Corporate Citizenship Activities

P9 Highlight 1
P13 Highlight 3

GRI Sustainability Reporting Guidelines
The chart below includes the categories for disclosure required under the GRI* Sustainability
Reporting Guidelines, Edition 3.1 and indicates the website that correspond to individual
categories.

* GRI is an acronym for the Global Reporting Initiative. GRI was established in 1997 as aninternational institution to create and disseminate international guidelines related tocorporate sustainability reporting.

GRI Sustainability Reporting Guidelines, Edition 3.1

Location

Strategy and Analysis
1.1Statement from the most senior decisionmaker ofthe organization (e.g., CEO, chair, or equivalentsenior position) about the relevance of sustainability
to the organization and its strategy.

P3 Message from the
Chairman and CEO

1.2

Description of key impacts, risks, and opportunities.

P3 Message from the
Chairman and CEO
Website: Investor Relations

Organizational Profile
2.1

P5 Sysmex at a Glance

Name of the organization.
78

2.2

Primary brands, products, and/or services.

P5 Sysmex at a Glance

2.3

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

P5 Sysmex at a Glance

2.4

Location of organization's headquarters.

P5 Sysmex at a Glance

2.5

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

P5 Sysmex at a Glance

2.6

Nature of ownership and legal form.

Website: Investor Relations

2.7

Markets served (including geographic breakdown,
sectors served, and types ofcustomers/beneficiaries).

P5 Sysmex at a Glance

2.8

Scale of the reporting organization.

P5 Sysmex at a Glance

2.9

Significant changes during the reporting period
regarding size, structure, or ownership.

Website: Investor Relations

2.10

Awards received in the reporting period.

P73 External Evaluation

P3 Message from the
Chairman and CEO

Report Profile
3.1

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

P2 Editorial Policy (Period
covered)

3.2

Date of most recent previous report (if any).

P2 Editorial Policy (Date of
publication)

3.3

Reporting cycle (annual, biennial, etc.)

P2 Editorial Policy (Editorial
policy)3.4

Contact point for questions regarding the report orits contents.

P2 Editorial Policy (Inquiries
about this report)

Report Scope and Boundary
3.5

Process for defining report content.

3.6

Boundary of the report (e.g., countries, divisions,subsidiaries, leased facilities, joint ventures,
suppliers). See GRI Boundary Protocol for further
guidance.

P2 Editorial Policy(Organizations covered)

3.7

State any specific limitations on the scope orboundary of the report.

P72 Environmental
Conservation Activities(Environmental Impact ofBusiness Activities)

3.8

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

Website: Investor Relations

3.9

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

P2 Editorial Policy(Guidelines referenced)

3.10

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

3.11

Significant changes from previous reporting periodsin the scope, boundary, or measurement methods
applied in the report.

79

GRI CONTENT INDEX
3.12

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

P78 Guideline Comparative
Table

ASSURANCE
3.13

Policy and current practice with regard to seeking
external assurance for the report. If not included in
the assurance report accompanying thesustainability report, explain the scope and basis ofany external assurance provided. Also explain therelationship between the reporting organization andthe assurance provider(s).

GOVERNANCE
4.1

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

P25 Management(Corporate Governance)

4.2

Indicate whether the Chair of the highest
governance body is also an executive officer.

Website: Corporate
Governance

4.3

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

Website: Corporate
Governance

4.4

Mechanisms for shareholders and employees toprovide recommendations or direction to thehighest governance body.

P32 Management (CSR
Management)

4.5

Linkage between compensation for members of thehighest governance body, senior managers, andexecutives (including departure arrangements), andthe organization's performance (including social andenvironmental performance).

Website: Corporate
Governance Report(Japanese only）

4.6

Processes in place for the highest governance bodyto ensure conflicts of interest are avoided.

P25 Management(Corporate Governance)

4.7

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

P25 Management(Corporate Governance)

4.8

Internally developed statements of mission orvalues, codes of conduct, and principles relevant toeconomic, environmental, and social performanceand the status of their implementation.

P7 Corporate Philosophy
P26 Management(Compliance)
P35 Involvement with
Customers (Quality
Assurance)
P51 Involvement with
Business Partners (CSR
Promotion throughout the
Value Chain)
P44 Involvement with
Employees (Employee
Evaluation and Treatment)
P56 Corporate Citizenship
Activities (Basic Policy)
P62 Environmental
Conservation Activities(Environmental
Management System)
P70 Environmental
Conservation Activities(Green Procurement)

80

4.9

4.10

Procedures of the highest governance body foroverseeing the organization's identification andmanagement of economic, environmental, andsocial performance, including relevant risks andopportunities, and adherence or compliance withinternationally agreed standards, codes of conduct,
and principles.

P32 Management (CSR
Management)

Processes for evaluating the highest governancebody's own performance, particularly with respect
to economic, environmental, and social
performance.

P25 Management(Corporate Governance)

P25 Management(Corporate Governance)
P31 Management (RiskManagement)

P62 Environmental
Conservation Activities(Environmental
Management System)

COMMITMENTS TO EXTERNAL INITIATIVES
4.11

Explanation of whether and how the precautionary
approach or principle is addressed by theorganization.

P62 Environmental
Conservation Activities(Environmental
Management System)
P32 Management (CSR
Management)

4.12

Externally developed economic, environmental, andsocial charters, principles, or other initiatives towhich the organization subscribes or endorses.

4.13

Memberships in associations and/or
national/international advocacy organizations.

P32 Management (CSR
Management)

STAKEHOLDER ENGAGEMENT
4.14

List of stakeholder groups engaged by theorganization.

P32 Management (CSR
Management)

4.15

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

P32 Management (CSR
Management)

4.16

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

P32 Management (CSR
Management)

4.17

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

Economic
P3 Message from the
Chairman and CEO

Management Approach
ECONOMIC PERFORMANCE
EC1

CORE Direct economic value generated and distributed,
including revenues, operating costs, employeecompensation, donations and other community
investments, retained earnings, and payments tocapital providers and governments.

EC2

CORE Financial implications and other risks andopportunities for the organization's activities due toclimate change.

EC3

CORE Coverage of the organization's defined benefit plan
obligations.

EC4

CORE Significant financial assistance received fromgovernment.

81

Website: Investor Relations

MARKET PRESENCE
EC5

ADD

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

EC6

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

EC7

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

P51 Involvement with
Business Partners (CSR
Promotion throughout the
Value Chain)

INDIRECT ECONOMIC IMPACTS
EC8CORE Development and impact of infrastructure
investments and services provided primarily for
public benefit through commercial, inkind, or pro
bono engagement.

EC9

ADD

P56 Corporate Citizenship
Activities

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

Environmental
P3 Message from the
Chairman and CEO

Management Approach
MATERIALS
EN1

CORE Materials used by weight or volume.

EN2

CORE Percentage of materials used that are recycled input
materials.

ENERGY
EN3

CORE Direct energy consumption by primary energy
source.

P72 Environmental
Conservation Activities(Environmental Impact ofBusiness Activities)

EN4

CORE Indirect energy consumption by primary source.

P72 Environmental
Conservation Activities(Environmental Impact ofBusiness Activities)

EN5

ADD

Energy saved due to conservation and efficiency
improvements.

P72 Environmental
Conservation Activities(Environmental Impact ofBusiness Activities)

EN6

ADD

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

P66 Environmental
Conservation Activities(Reducing the Use of
Substances withEnvironmental Impact)

EN7

ADD

Initiatives to reduce indirect energy consumption
and reductions achieved.

P67 Environmental
Conservation Activities(Eco-Friendly Service)

WATER
P72 Environmental
Conservation Activities(Environmental Impact ofBusiness Activities)

EN8

CORE Total water withdrawal by source.

EN9

ADD

Water sources significantly affected by withdrawalof water.

EN10 ADD

Percentage and total volume of water recycled andreused.
82

No incident

BIODIVERSITY
EN11 CORE Location and size of land owned, leased, managed
in, or adjacent to, protected areas and areas of highbiodiversity value outside protected areas.

P13 Highlight 3

EN12 CORE Description of significant impacts of activities,
products, and services on biodiversity in protectedareas and areas of high biodiversity value outside
protected areas.

P13 Highlight 3

EN13 ADD

Habitats protected or restored.

P13 Highlight 3

EN14 ADD

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

No incident

EMISSIONS, EFFLUENTS, AND WASTE
EN16 CORE Total direct and indirect greenhouse gas emissions
by weight.

P72 Environmental
Conservation Activities(Environmental Impact ofBusiness Activities)

EN17 CORE Other relevant indirect greenhouse gas emissions
by weight.

P68 Environmental
Conservation Activities(Environment consciousness
at business offices)

EN18 ADD

Initiatives to reduce greenhouse gas emissions andreductions achieved.

P68 Environmental
Conservation Activities(Environment consciousness
at business offices)

EN19 CORE Emissions of ozone-depleting substances by weight.

P68 Environmental
Conservation Activities(Environment consciousness
at business offices)

EN20 CORE NO, SO, and other significant air emissions by type
and weight.

Non-disclosure because ofsmall amount of emissions

EN21 CORE Total water discharge by quality and destination.

P72 Environmental
Conservation Activities(Environmental Impact ofBusiness Activities)

EN22 CORE Total weight of waste by type and disposal method.

P72 Environmental
Conservation Activities(Environmental Impact ofBusiness Activities)

EN23 CORE Total number and volume of significant spills.

P62 Environmental
Conservation Activities(Environmental
Management System)
No incident

EN24 ADD

Weight of transported, imported, exported, or
treated waste deemed hazardous under the termsof the Basel Convention Annex I, II, III, and VIII,
and percentage of transported waste shippedinternationally.

EN25 ADD

Identity, size, protected status, and biodiversity
No incident
value of water bodies and related habitats
significantly affected by the reporting organization's
discharges of water and runoff.

83

PRODUCTS AND SERVICES
EN26 CORE Initiatives to mitigate environmental impacts ofproducts and services, and extent of impact
mitigation.

P66 Environmental
Conservation Activities(Reducing the Use of
Substances withEnvironmental Impact)
P67 Environmental
Conservation Activities(Eco-Friendly Service)
P70 Environmental
Conservation Activities(Others)
P72 Environmental
Conservation Activities(Environmental Impact ofBusiness Activities)
P11 Highlight 2

EN27 CORE Percentage of products sold and their packaging
materials that are reclaimed by category.
COMPLIANCE
EN28 CORE Monetary value of significant fines and total number No incidentof non-monetary sanctions for noncompliance withenvironmental laws and regulations.
TRANSPORT
EN29 ADD

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

P66 Environmental
Conservation Activities(Reducing the Use of
Substances withEnvironmental Impact)
P67 Environmental
Conservation Activities(Eco-Friendly Service)
P70 Environmental
Conservation Activities(Others)

OVERALL
EN30 ADD

Total environmental protection expenditures andinvestments by type.

SocialLabor Practices and Decent WorkP3 Message from the
Chairman and CEO

Management Approach
EMPLOYMENTLA1CORE Total workforce by employment type, employment
contract, and region, broken down by gender

LA2

CORE Total number and rate of new employee hires andemployee turnover by age group, gender, andregion.

LA3CORE 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.

84

P44 Involvement with
Employees (Employee
Evaluation and Treatment)

LABOR / MANAGEMENT RELATIONS
LA4CORE Percentage of employees covered by collective
bargaining agreements.

LA5

CORE Minimum notice period(s) regarding operationalchanges, including whether it is specified incollective agreements.

P48 Involvement with
Employees (Cooperation
between Labor andManagement)

OCCUPATIONAL HEALTH AND SAFETY
Percentage of total workforce represented in formal
joint management–worker health and safetycommittees that help monitor and advise on
occupational health and safety programs.

P48 Involvement with
Employees (Cooperation
between Labor andManagement)

LA6

ADD

LA7

CORE Rates of injury, occupational diseases, lost days,
and absenteeism, and number of workrelated
fatalities by region and by gender.

P48 Involvement with
Employees (Health and
Safety Considerations)

LA8

CORE Education, training, counseling, prevention, andrisk-control programs in place to assist workforce
members, their families, or community members
regarding serious diseases.

P48 Involvement with
Employees (Health and
Safety Considerations)

LA9

ADD

P48 Involvement with
Employees (Cooperation
between Labor andManagement)

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

TRAINING AND EDUCATION
LA10 CORE Average hours of training per year per employee by
gender, and by employee category.

P49 Involvement with
Employees (Human
Resources Development)

LA11 ADD

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

P49 Involvement with
Employees (Human
Resources Development)

LA12 ADD

Percentage of employees receiving regularperformance and career development reviews, bygender.

P44 Involvement with
Employees (Employee
Evaluation and Treatment)

DIVERSITY AND EQUAL OPPORTUNITY
LA13 CORE Composition of governance bodies and breakdownof employees per employee category according togender, age group, minority group membership, andother indicators of diversity.

P42 Involvement with
Employees (Respecting
Human Rights andDiversity)

EQUAL REMUNERATION FOR WOMEN AND MEN
LA14 CORE Ratio of basic salary and remuneration of women tomen by employee category, by significant locationsof operation.
Human Rights
P3 Message from the
Chairman and CEO

Management Approach
INVESTMENT AND PROCUREMENT PRACTICES
HR1

CORE Percentage and total number of significant
investment agreements and contracts that include
clauses incorporating human rights concerns, orthat have undergone human rights screening.

85

HR2

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

P51 Involvement with
Business Partners (CSR
Promotion throughout the
Value Chain)

HR3

CORE Total hours of employee training on policies andprocedures concerning aspects of human rights thatare relevant to operations, including the percentageof employees trained.

P26 Management(Compliance)
P42 Involvement with
Employees (Respecting
Human Rights andDiversity)

NON-DISCRIMINATION
HR4CORE Total number of incidents of discrimination andcorrective actions taken.

FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING
HR5CORE Operations and significant suppliers identified inwhich the right to exercise freedom of associationand collective bargaining may be voilated or atsignificant risk, and actions taken to support theserights.

CHILD LABOR
HR6CORE Operations and significant suppliers identified ashaving significant risk for incidents of child labor,
and measures taken to contribute to the effective
abolition of child labor.

P42 Involvement with
Employees (Respecting
Human Rights andDiversity)
P51 Involvement with
Business Partners (CSR
Promotion throughout the
Value Chain)

FORCED AND COMPULSORY LABOR
HR7CORE Operations and significant suppliers identified ashaving significant risk for incidents of forced orcompulsory labor, and measures to contribute to theelimination of all forms of forced or compulsory
labor.

P42 Involvement with
Employees (Respecting
Human Rights andDiversity)
P51 Involvement with
Business Partners (CSR
Promotion throughout the
Value Chain)

SECURITY PRACTICES
HR8

ADD

Percentage of security personnel trained in theorganization's policies or procedures concerning
aspects of human rights that are relevant tooperations.

INDIGENOUS RIGHTS
HR9

ADD

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

ASSESSMENT
HR10 CORE Percentage and total number of operations thathave been subject to human rights reviews and/or
impact assessments.
REMEDIATION
HR11 CORE Number of grievances related to human rights filed,addressed and resolved through formal grievancemechanisms.
Society
P3 Message from the
Chairman and CEO

Management Approach86LOCAL COMMUNITY
SO1

CORE Percentage of operations with implemented local
community engagement, impact assessments, anddevelopment programs.

SO9

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

SO10 CORE Prevention and mitigation measures implemented inoperations with significant potential or actual
negative impacts on local communities.
CORRUPTION
SO2CORE Percentage and total number of business units
analyzed for risks related to corruption.

SO3

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

P42 Involvement with
Employees (Respecting
Human Rights andDiversity)
P53 Involvement with
Business Partners (Ensuring
Thorough Compliance inTransactions)

SO4

CORE Actions taken in response to incidents of corruption.

PUBLIC POLICY
SO5CORE Public policy positions and participation in public
policy development and lobbying.

SO6

ADD

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

ANTI-COMPETITIVE BEHAVIOR
SO7

ADD

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

COMPLIANCE
SO8CORE Monetary value of significant fines and total number No incidentof non-monetary sanctions for noncompliance withlaws and regulations.

Product Responsibility
P3 Message from the
Chairman and CEO

Management Approach
CUSTOMER HEALTH AND SAFETY
PR1

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

P35 Involvement with
Customers (Quality
Assurance)

PR2

ADD

P37 Involvement with
Customers (Safety andQuality Information)

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

PRODUCT AND SERVICE LABELING
PR3

CORE Type of product and service information required byprocedures, and percentage of significant products
and services subject to such information
requirements.

87

PR4

ADD

Total number of incidents of non-compliance withregulations and voluntary codes concerning productand service information and labeling, by type ofoutcomes.

Website: Important ProductNotice (only Japanese)

PR5

ADD

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

P38 Involvement with
Customers (After-Sales
Support)
P39 Involvement with
Customers (Enhancing
Customer Satisfaction)

MARKETING COMMUNICATIONSPR6CORE Programs for adherence to laws, standards, andvoluntary codes related to marketing
communications, including advertising, promotion,and sponsorship.

PR7

ADD

P26 Management(Compliance)

Total number of incidents of non-compliance withregulations and voluntary codes concerningmarketing communications, including advertising,promotion, and sponsorship by type of outcomes.

CUSTOMER PRIVACY
PR8

ADD

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

COMPLIANCE
PR9CORE Monetary value of significant fines fornoncompliance with laws and regulations
concerning the provision and use of products andservices.

88

No incidentIndependent Opinion

On Reading the Sysmex
Sustainability Report 2014
Katsuhiko Kokubu
Professor, Graduate School of Business Administration,
Kobe University

Social contribution through resolving social issues
Highlight 1 describes the addition of two German companies to the Group in ﬁscal 2013, providing
detail on the objectives for this move, as well as some of the issues. The article clearly indicates thatthe purpose of this business strategy is to contribute to the resolution of social issues throughpersonalized medicine and other areas of healthcare, and to treating infectious diseases in emerging
markets and developing countries. Sysmex is cultivating a business strategy that aims to resolve
social issues through its main businesses, and these moves show how Sysmex is contributing tosociety. Expanding Group business is typically the sort of topic discussed in IR materials. I give
Sysmex high marks for the fact that it is described here from a CSR perspective, as this approach
exempliﬁes the interweaving of Sysmex’s CSR strategy into its business.

Steady Progress on Environmental Conservation Activities
During ﬁscal 2013, Sysmex placed a strong emphasis on improving its logistics processes (Highlight2). Transportation, packaging and other activities present opportunities to achieve transformation
through changes both large and small. I applaud Sysmex highly for its steady progress onenvironmental conservation activities.
The Group is also addressing biodiversity, commencing forest maintenance activities at the“Sysmex Forest” in ﬁscal 2013 (Highlight 3). By preserving the forests upstream of its own factory,
Sysmex is protecting the water for the factory as well as showing an awareness of its responsibility
for protecting the ecosystem downstream. For these reasons, I consider this project highlymeaningful. Going forward, I would like to see activities such as these incorporated into the CSR
objectives and their promotion continued.

Mid-Term Objectives and KPI for CSR Activities
For its CSR activities, Sysmex has provided a table showing the status of its activities in ﬁscal 2013
against the targets it has set, as well as issues to address in ﬁscal 2014, laid out according to theseven ISO 26000 core subjects. I ﬁnd this self-reporting extremely easy to follow. In the future,
wherever possible I would like to see numerical targets indicated more speciﬁcally, with theiradditional development on activities that include overseas oﬃces. In its pursuit of the “Sysmex
Way,” the Group could set key performance indicators (KPIs) for use both in Japan and overseas.
Simply viewing the resulting numerical information would make it easy to see Sysmex’s global CSR
activities and earn recognition on a global level. The bar on CSR activities is set at a high level inSysmex’s industry; I look forward to future developments.

89

1-5-1, Wakinohama-Kaigandori, Chuo-ku, Kobe 651-0073, Japan
Tel +81-78-265-0500 Fax +81-78-265-0524