ESG Initiatives

Social initiatives
Relevant SDGs

Central themes

Occupational health and safety

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

SECOM’s Philosophy and the SECOM Efforts to ensure the full penetration of SECOM’s Philosophy and encourage
strict compliance with the SECOM Group Code of Employee Conduct toGroup Code of Employee Conduct
bolster employee motivation and earn the trust of society
Securing and fostering talented
human resources

Focus on securing and fostering talented human resources who have theability to adapt to change and create value and who seek to contribute tosociety

Advancing diversity

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

Promoting work–life balance

Establishment of programs and promotion of ongoing efforts to enhancework–life balance and increase employee retention

Dialogue with employees

Employee job satisfaction surveys and the exchange of opinions between the
SECOM Employee Union Federation and executives to facilitate the creationof employee-friendly workplaces

Occupational health and safety
We believe that our ability to provide safety and peace of mind tonecessary to enhance occupational safety. The division has

our customers depends on first ensuring the health and vitality ofdeveloped procedures and equipment designed to prevent

our employees. Accordingly, we promote various initiatives aimed

accidents and promotes initiatives to improve employee skills,

at protecting and enhancing employee health and creating safe,

including a program that seeks to improve driving techniques.

employee-friendly workplaces.

Efforts to ensure safe, employee-friendly workplaces also

The Human Resource Division has established a system to com-

include the provision of extensive training aimed at preventing

prehensively manage occupational health in collaboration with theoccupational accidents, including that related to the risks of

Health Promotion Office, which is staffed with occupational healthsecurity accidents in various situations.

physicians (OHPs), and the SECOM Health Insurance Union. To promote continuous improvements in occupational health and safety,
health committees nationwide meet monthly to discuss key issues,
including employee working hours and efforts to improve health,Participants in Training Aimed at
Preventing Occupational Accidents

enhance work environments ensure safety and prevent risks. We(Number of people)

also actively care for employees’ mental health, conducting stress

3,000
2,610

checks, arranging meetings with psychiatrists and specialized
counselors, to make certain that employees feel both physically

2,348
2,000

2,015

and mentally supported.
To ensure occupational safety, the Operation Division verifies
day-to-day security operations and works to reduce identified

1,000

occupational safety risks. Our operational and control structure
facilitates the efficient exchange of reports and instructions
between the front lines and senior management, ensuring thatthe latter is fully apprised of day-to-day operations across Japanand able to provide guidance for the improvements where

40

SECOM REPORT 2020

0

2018

2019

2020

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

SECOM’s Philosophy and the SECOM Group Code of Employee Conduct
Encouraging awareness of SECOM’s Philosophy and adherenceby challenging accepted norms, while the second calls for judging

to the SECOM Group Code of Employee Conduct are essential

the legitimacy of our actions by examining whether they are just,to maximizing the trust of stakeholders and our corporate value.

fair and beneficial not only to SECOM but also to society as a whole.

Handed down since our establishment, SECOM’s Philosophy pro-The SECOM Group Code of Employee Conduct sets forth ideals forvides a spiritual anchor for Group employees and the entire SECOM

the conduct of employees in both public and private life and spe-

Group. The driving force behind our growth and evolution, thiscific standards for the day-to-day performance of duties. We have

philosophy emphasizes a refusal to be content with the status quo

published SECOM’s Philosophy and the SECOM Group Code of Em-

and a commitment to doing what is appropriate. The first element

ployee Conduct in the form of handbooks and pocket-sized guides,

expresses our determination to offer innovative services and systems

which are distributed to employees in Japan and overseas.

Penetration of SECOM’s Philosophy

Tri ion

Passion Emotion Motivation

Initiative

Employees who
personify SECOM’s
Philosophy

A stronger
corporate
cultureA wellestablished
brand

Trust ofsociety• Increased contracts• Improved assessment by society• Optimized operations

Incomparable intangible assets
Diverse human resources who share SECOM’s Philosophy andthrive in a free and open organizational culture
Sustainable growth
Questions on SECOM’s Philosophy and the SECOM Group Code ofother steps to promote more strict observance. Since 2018,

Employee Conduct are included in our e-learning program, which

we have promoted the Tri-ion initiative, which seeks to ensure

is provided annually, and employees’ compliance status is reflectedthat SECOM’s Philosophy fully penetrates every aspect of ourin their semiannual performance reviews. An employee who

operations and to bolster motivation and productivity Groupwide.

becomes aware of a violation is obliged to submit a report toThrough this initiative, we aim to nurture employees who embody

his or her superior. In addition, we have established a whistle-

SECOM’s Philosophy to foster a stronger corporate culture, ensure

blowing system. We are currently using IT equipment and taking

a well-established brand and further earn the trust of society.

Securing and fostering talented human resources
Our vibrant, diverse team of employees, who are critical to ouremployee-friendly workplaces. One such program enables employ-ability to provide services that deliver safety and peace of mind,

ees to choose the geographic location to which they are assigned

are our greatest asset and another driving force behind our growth

to suit career phase or personal preference.

and evolution. Accordingly, we strive to secure and foster talented

We provide extensive training to foster human resources withhuman resources who have the ability to adapt to change andhigh ethical standards and superior skills. In addition to training for

create value and who seek to contribute to society.

all new employees, we have developed department- and job-specificAs a company that extends services across Japan and aroundcurricula that reinforce practical capabilities in a manner that ben-

the world, we promote active recruiting efforts. We also work toefits employees on the front lines. We have also launched a variety

enhance employee welfare with the goal of improving our ability toof specialized training options, including an overseas study program

retain human resources, and have established a variety of programs

and a subsidy system for employees to take correspondence courses.

designed to boost motivation and productivity, as well as to create

In the area of training for security guards, we have introduced VR

SECOM REPORT 2020

41

ESG Initiatives

technology, among others, to improve effectiveness and ensureParticipation in Training Programs
Hours spent in training (left scale)Participants (right scale)(Number of people)

employees acquire excellent discernment and know-how.
Employee performance reviews look to impartially evaluate
employees’ efforts and support self-realization. Evaluations are(Hours)17,500

325,000
289,364

based on reports prepared by employees assessing their executionof duties, achievements and areas in need of improvement, and15,884

rational assessment categories optimized for each particular job.

12,500175,000

systems designed to assist with career development, including
the Self-Reporting System and Challenge Support System, which
encourage employees to declare and assists their efforts to realize

15,000203,699

We use an open, fair format whereby review results are disclosed
to employees. In addition, we promote self-actualization through243,993

250,000

11,461
10,884
100,000

2018

2019

10,0002020(Years ended March 31)

their own future goals and aspirations.

*Scope of reporting: SECOM CO., LTD.

Advancing diversity
Recognizing the importance of welcoming a broad spectrum of

Declaration of Promoting Diversity and Inclusionsindividuals with wide-ranging ideas, to the creation of new value,• Guided by a disciplined corporate culture rooted in SECOM’s

we actively promote diversity in our labor force, including byadvancing career opportunities for female employees. In 2017,
we established the Declaration of Promoting Diversity andInclusions, and assigned diversity and inclusion staff to the Human

Philosophy, we respect differences and prioritize diversity in ourhuman resources.
• We aim to be an organization in which all employees can workwith drive, vitality, confidence and pride.

Resource Department. We currently promote the creation of• We consistently pursue the creation of innovative value by sup-positive work environments that maximize the capabilities of all

porting employee growth and enhancing synergies among theemployees regardless of gender, nationality, age, physical ability,

various strengths of individual employees.

sexual orientation or gender identity.
With the aim of actively fostering female leaders, we are a

Labor Force by Gender

member of the nonprofit organization Japan Women’s Innovative
Network (J-Win). We also dispatch two female employees to participate in J-Win programs, which are aimed at cultivating skills andhelping female employees build networks.

Executive management
Other
Total

As of March 31, 2020

Male
91.2%
76.0%
81.5%

Female
8.8%
24.0%
18.5%

*Scope of reporting: SECOM CO., LTD.

Promoting work–life balance
We view work–life balance, including sufficient physical and• Flex vacation: Enables employees to take 10 consecutive

mental rest and a fulfilling private life as essential to the ability

vacation days annually, in theory at any time during the year

to approach one’s work with energy and focus. In addition to• Refresh vacation: A two-week vacation available to employees

actively encouraging employees to take annual paid vacation

every 10 years

days, we have established vacation and leave systems in line with• Maternity leave: Available for the six weeks prior to and eight

which we promote ongoing efforts to help employees achieve

weeks after giving birth; an additional two weeks is available toa balance between their careers and private lives and enhance
employee retention.

employees who wish to start their maternity leave earlier• Childcare leave: Can be taken by both female and male
employees up until the day before the child’s third birthday

42

SECOM REPORT 2020

• Change in working hours/exemption (shorter working• SECOM Life Support Program: Allows employees to tem-

hours) for childcare: Available within certain restrictions on

porarily change work style and/or location to which they arerequest to employees who are pregnant or have children who

assigned to provide childcare or nursing care or to accompany ahave not yet entered the second grade of elementary school

spouse who has been transferred overseas and provides support(exceeds legal requirement, which is children under the ageof three)for long-term career advancement• Job Return Program: Enables people who have left employ-• Nursing care leave or change in working hours/exemption (shorter working hours) for nursing care: Full leave or

ment at SECOM for unavoidable reasons such as childbirth,childcare or nursing care to apply to return to work

adjusted working hours for up to six months (maximum of 186days) for employees providing nursing care to a family member
wishing to return to work full-time after conclusion of nursing
care provision
Percentage of Annual Paid Vacation Days
Taken by Employees

Employees Taking Childcare Leave
JTotal (left scale)(%)(Number ofpeople)

60

200
53.3

50

53.2

JMale employees (right scale)(Number ofpeople)

20

160

50.0

16
138

137

127

120

12
10

40

30

2018

2019

2020

9

80

8

40

4

0

2018

2019

2020

0

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

10

*Scope of reporting: SECOM CO., LTD.

Dialogue with employees
We seek to achieve sustainable growth as a strong, flexible organi-principle employees automatically become union members when

zation that is impervious to the impact of social change and thethey are hired. As a consequence, our union membership rate forcompetitive environment. We are thus working to create a virtuous

eligible employees is 100%.

circle, recognizing the importance of enabling employees who

We place a priority on dialogue between labor and manage-

share SECOM’s Philosophy to demonstrate their full potential,

ment. With the aim of boosting employee morale, building awhich helps raise the quality of the services and products wevibrant and healthy organizational culture and maximizing organi-provide, thereby enhancing customer satisfaction and earning thezational energy, the management representatives, including thetrust of society, which in turn increases employees’ job satisfaction.

President and Representative Director, meet monthly with SECOM

Since 2016, we have conducted an annual anonymous employee

Lively Union to exchange views. Discussions are also held at

job satisfaction survey. In the fiscal year ended March 31, 2020,

SECOM Group companies and branches across Japan to address

the response rate for this survey was 85.5%.

issues such as improving workplace environments and operating

Reflecting our fundamental belief that the growth of ourprocedures and ensuring occupational health and safety. SECOM

employees is inextricably linked to our prosperity, we signed a

Lively Union also exchanges views with management throughunion membership qualification agreement with SECOM Lively

meetings with employees on organizational culture and theUnion (the SECOM Employee Union Federation), which was estab-

SECOM Employee Central Council.

lished in 1964, and became a union shop, meaning that in

SECOM REPORT 2020

43

ESG Initiatives

Governanceinitiatives
GovernanceRelevant SDGs

Central themes

Summary

Corporate governanceIndependent oversight of management and ensure proper businessexecution while working to actively disclose information to shareholders
and other stakeholders

Compliance

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

Information security/data security

Promotion of information security through establishment of the
SECOM Group Information Security Basic Policy and creating andoperating a robust information security system

Basic philosophy
In line with Japan’s Corporate Governance Code and at theWith the aim of earning the continued support of our customers,
shareholders, clients, employees, local communities and otherdirection of top management, outside members of the Board of

stakeholders as a company with value that is worthy of trust,Directors and Audit & Supervisory Board provide independent

we strive to maximize corporate and shareholder value over theoversight of the management team’s performance in a manner

medium to long term and recognize the importance of fulfillingthat takes into account the interest of stakeholders and ensures

our responsibilities as a corporate citizen and achieving sustainable

the appropriate execution of business activities. We also work

growth and development.

actively to disclose information to shareholders and otherstakeholders and strengthen our compliance framework.

Initiatives to strengthen corporate governance
Area

Establishment ofcorporate governancesystem
Separation of management
and execution
Number of directors
designated in the Articles
of Incorporation
Term of service of
directors

1986


2000

2005

2010

2015

2020

1986: Creates SECOM’s Philosophy
 2006: Formulates basic rules of management for SECOM Group companies
 2010: Establishes the SECOM Group Management Committee

 2004: Institutes an executive officer system

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

Up to 2003: 2 years
 From 2004: 1 year2000–2001: 28–29

Number of directors

2002–2003: 22–23
 From 2004: 10–13

Up to 2010: 4

Number of auditors

 From 2011: 5
2013–2015: 2

Number ofoutside directors
Number ofoutside auditors

From 2016: 3

 From 2020: 4

Up to 2002: 2
 From 2003: 3
 2016:

Remuneration for/appointment of
directors

44

SECOM REPORT 2020

Establishes Nomination and Compensation
Committee
 2017:Adopts performance-linked remuneration
systemOutline of corporate governance system
We are a company with an Audit & Supervisory Board. The Board

officers’ discharge of their duties. We believe that this enables us

of Directors, which includes four outside members, determines

to conduct independent oversight of management and ensure

overall management and business execution policies and super-

appropriate business execution.

vises the execution of duties by directors. Executive officers, led

The Nomination and Compensation Committee has beenby the President and Representative Director, are responsible forestablished as a discretionary committee of the Board of Directors.

business execution. Under our corporate governance system, theThis committee, which is responsible for presenting candidates for

Audit & Supervisory Board, which includes three outside mem-the position of director to the Board of Directors and for ensuringbers, and the Board of Directors coordinate with the internal

the appropriateness of remuneration for directors, comprises

audit departments to audit and supervise directors’ and executive

seven directors, four of whom are outside.

Corporate governance organization
General Meeting of Shareholders
Appointment/
dismissal

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

Appointment/
dismissal

Proposal of candidates forthe position of director
Authorization/consultation
regarding remuneration

Nomination andCompensation
Committee

Determination/submission ofdecisions regarding remuneration

Internal audit
departments

President andRepresentative Director(Five members, three of whom
are outside)
Office of Audit & Supervisory Board:
Three employees(Operational, accounting andcompliance audits)

Reporting on important matters

Chairman and
Representative Director

Audit & Supervisory Board

Coordination

Legal affairs departments

Enhancement of compliance/internal auditing

Executive Officers

Deliberation

Organizational
Culture Committee

Audit by independent
public accountants
Accounting audit

Board of Directors

Executive Officers

Audit & Supervisory Board

The Board of Directors comprises 11 directors
and in principle meets monthly, with fivemembers of the Audit & Supervisory Board also
in attendance. The Board of Directors is
responsible for deciding overall management
policies and business execution policies, as well
as for monitoring the performance of duties bydirectors, and strives to promote the active
exchange of opinions with the aim of ensuring
effective and swift decision making. Six of the
11 members are responsible for businessexecution, with the remaining five members(the founder and the four outside directors)
having no involvement.

We have adopted an executive officers system,
whereby the Board of Directors is responsiblefor decision making and the executive officers
are responsible for business execution. This wasdone with the aim of strengthening field
divisions and enhancing customer service
systems by clarifying responsibilities andauthority and expediting business execution.
We currently have 30 executive officers, six ofwhom are also directors.

The Audit & Supervisory Board comprises fivemembers, two of whom are full-time and threeof whom are outside. In principle, the Audit &Supervisory Board meets monthly. Individuals
well-versed in our businesses and internalaffairs, as well as in finance and accounting,are appointed to serve as full-time members,
while individuals who are independent of the
management team, have extensive knowledgeof corporate management, legal, financial andother matters and are capable of providing
effective oversight and monitoring of the
management team, are appointed to serve as
outside members.

SECOM REPORT 2020

45

ESG Initiatives

In accordance with the policy for appointment set forth by theRegular meetings between the President andRepresentative Director and Audit & Supervisory
Board members

Board of Directors, candidates for appointment to the Board ofAudit & Supervisory Board members hold regular (monthly) meet-

Directors and the Audit & Supervisory Board are decided throughings with the President and Representative Director, during which

deliberation by the Board of Directors. Candidates for the Board

they exchange opinions on important management-related issues,of Directors are nominated from among candidates determined

including the results of audits, to ensure common understanding.

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

through discussion by the Nomination and Compensation
dates for the Audit & Supervisory Board are nominated with the

Meetings between Audit & Supervisory Board members
and accounting auditors

agreement of the Audit & Supervisory Board.

Audit & Supervisory Board members meet regularly (six times

Committee, the majority of whom are outside directors. Candi-

annually) with the accounting auditors, as well as additional meet-Internal audits and cooperation among board
members and offices

ings as necessary, for the purpose of exchanging opinions andAudits by Audit & Supervisory Board members

tions and exchange opinions regarding annual audit plans andAudit & Supervisory Board members attend important meetings,

audit results. If necessary, Audit & Supervisory Board members

including those of the Board of Directors, to exchange opinions on

also act as witnesses during audits conducted by the accounting

overall corporate management, as well as to collect reports on theauditors at remote locations and during audit reviews (23 times indischarge of duties from directors and other pertinent individuals

the fiscal year ended March 31, 2020).

information. Audit & Supervisory Board members receive explana-and conduct audits focused on the possible occurrence of violationsof laws, regulations, the Articles of Incorporation and/or sharehold-

Collaboration with internal audit and other departments

ers’ interests. The Audit & Supervisory Board also conducts audits of

Audit & Supervisory Board members hold regular (monthly) meet-

our overall business activities, as well as those of subsidiaries andings with the Internal Audit and Compliance Department, during

affiliates, in accordance with annual audit plans.

which they receive reports and exchange opinions on the resultsof internal audits and, as appropriate, receive reports on inspections of subsidiaries from and exchange opinions and information

Principal Activities of Audit & Supervisory Board
members in the Fiscal Year Ended March 31, 2020
Participation in meetings of the Board of Directors

98.18%

Participation in meetings of the Audit & Supervisory
Board

98.18%

Information sessions with directors and other executivesof the parent company, subsidiaries and affiliatedcompanies

77 times

Audits conducted by Audit & Supervisory Board
members at remote locations

46

with the Group Governance Department. If necessary, to ensure

SECOM REPORT 2020

the efficiency of audits, Audit & Supervisory Board members ask
the internal audit departments to conduct investigations.

101
locationsOutside directors and outside Audit & Supervisory Board members
We appoint individuals who have extensive knowledge of corpo-

between the President and Representative Director, among others,

rate management to serve as outside directors, thereby incorpo-

and the Audit & Supervisory Board members). This ensures thatrating a broad range of external perspectives not constrained byAudit & Supervisory Board members’ objective and neutral opin-

the internal affairs. We thus have a structure that ensures theions are reflected promptly in operations. As a consequence, wetransparency and objectivity of management.

believe that we fulfill our responsibility to conduct independent

We appoint Audit & Supervisory Board members who have a
wealth of knowledge of corporate management, legal, financial
and other matters (including three outside members, who are

oversight of management performance in a manner that takes
into account the interests of stakeholders.
We appoint outside directors and outside Audit & Supervisory

essentially independent of the management team). We have also

Board members on the basis of pertinent requirements set forthestablished an auditing organization (including the Office of Audit

in Japan’s Companies Act and the standards concerning inde-& Supervisory Board Members) that operates independent of day-pendence set forth by financial instruments exchanges.

to-day operations and a process (including periodic meetings

Outside directors and outside Audit & Supervisory Board members

Outsidedirectors

Name

Principal activities

Attendanceat Board of
Directors’
meetings

Attendance at
Audit &
Supervisory
Board
meetings

Takaharu Hirose

Mr. Hirose offers advice and suggestions at meetings of the Board of
Directors based on experience and insights gained in the foundation andmanagement of multiple enterprises and industry organizations. He alsoasks questions and states opinions to clarify issues.

11/11

—

Mr. Kawano offers advice and suggestions at meetings of the Board of
Directors based on experience and insights gained through the holding of
Hirobumi Kawano
important positions in government. He also asks questions and states
opinions to clarify issues.

11/11

—

Mr. Watanabe offers advice and suggestions at meetings of the Board of
Directors based on experience and insights gained through his many
Hajime Watanabe
years of experience in corporate management. He also asks questions
and states opinions to clarify issues.

11/11

—

Hideki Kato

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

11/11

11/11

Makoto Yasuda

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

11/11

11/11

Setsuo Tanaka

Mr. Tanaka offers advice and suggestions at meetings of the Board of
Directors based on experience and insights gained through the holding ofimportant positions in government. He also asks questions and states
opinions to clarify issues. He also makes efforts to understand what was
discussed at Board of Directors or Audit & Supervisory Board meetings he
has missed by obtaining reports on resolutions from, respectively, theindividual in charge of meeting administration or an Audit & Supervisory
Board member.

7/8

7/8

Outside Audit &Supervisory
Board members

Notes: 1. Information on attendance at meetings of the Board of Directors and Audit & Supervisory Board is for the fiscal year ended March 31, 2020.
2. Setsuo Tanaka was elected and assumed the position of Audit & Supervisory Board member at the ordinary general meeting of shareholders held on July 26, 2019.
Accordingly, the figures for his attendance are for meetings of the Board of Directors meetings and the Audit & Supervisory Board held on or after that date.

SECOM REPORT 2020

47

ESG Initiatives

Remuneration for directors and Audit & Supervisory Board members
Remuneration for directors consists of pecuniary remuneration

and Compensation Committee within the limit resolved at the Or-

and stock compensation (shares with restrictions on transfer).

dinary General Meeting of Shareholders set separately from that

Outside directors are eligible for pecuniary remuneration only.

set for pecuniary remuneration. In addition to incentives offered

Pecuniary remuneration is determined by the Nomination andwith the goal of driving sustainable growth in corporate value,Compensation Committee, which has received authorization

directors other than those who are outside receive shares withfrom the Board of Directors, within the maximum limit resolved

restrictions on transfer, the objective of which is to promote theat the Ordinary General Meeting of Shareholders. Pecuniary

further sharing of value with shareholders.

remuneration for directors comprises basic remuneration andRemuneration for Audit & Supervisory Board members, which

bonuses, the latter of which is linked to consolidated operating

comprises pecuniary remuneration only, is determined throughresults and individual contribution. Outside directors receive

discussion involving Audit & Supervisory Board members inbasic remuneration only.

amounts commensurate with individual duties. Remuneration for

Stock compensation is determined by discussion of the Board

Audit & Supervisory Board members is set within the maximumof Directors, taking into account deliberations by the Nomination

limit resolved at the Ordinary General Meeting of Shareholders.

Remuneration for directors and Audit & Supervisory Board members (Fiscal year ended March 31, 2020)
Position48

Total remuneration(Millions of yen)

Breakdown of total remuneration(Millions of yen)Basicremuneration

Bonus

Restricted stock

Number ofentitled individuals

Directors (excluding outside directors)

341

272

52

15

7

Audit & Supervisory Board members(excluding outside members)

45

45

–

–

2

Outside directors

30

30

–

–

3

Outside Audit & Supervisory Board members

25

25

–

–

4

Total

442

373

52

15

16

SECOM REPORT 2020

Philosophy regarding the diversity and size of the Board of Directors
The Board of Directors consists of internal directors, who are

and the number of members is appropriate to facilitate discussions

familiar with SECOM’s businesses and have diverse knowledge

and resolutions of substance. We will continue working to enhanceand several outside directors, includes several outside directors

the effectiveness of the Board of Directors by promoting further

with extensive insight in corporate management and other areas.

diversity and ensuring the appropriate size of the Board.

Diversity in terms of gender and international experience is ensured

Evaluation of the Board of Directors’ effectivenessEvaluation processexpressed the opinion that the atmosphere in which they function

The effectiveness of the Board of Directors is evaluated annually.

encourages them to speak and that further improvements in the

In January 2020, a survey was conducted. Responses were col-administration of the Board of Directors had been seen since thelated by the Board’s secretariat in early March and findings were2019 survey. Various opinions were also expressed, including that

subsequently discussed by the Board.

opportunities should be created for free debate, thereby invigorating discussion, as well as for further communication with outside

Summary of findings

directors.

Composition of the Board of Directors
The opinion was expressed that the diversity of the Board ofOversight function of the Board of Directors

Directors and the balance between execution and oversight are

Matters handled by the Board of Directors are selected appropri-

suitable and that the Board is an appropriate size to ensure active

ately, based on the Rules of the Board of Directors and the opin-

discussion and swift decision making. Constructive views were also

ion was expressed that discussions on management policies andexpressed regarding further diversification of the Board’s composi-

corporate philosophy are rigorous. In addition, constructive views

tion in terms of gender and other considerations.

were expressed regarding the progress of discussions regarding
changes in the operating environment attributable to technologi-

Administration of the Board of Directors

cal innovation and a declining labor force and related risks under-

The Board of Directors meets once monthly in principle to enabletaken with a medium- to long-term perspective.

swift discussion and resolution of critical matters. To ensure that
directors and Audit & Supervisory Board members are able to

Future initiatives

make appropriate decisions, matters deemed particularly critical

To further enhance corporate value and realize an even moreare discussed by the Board of Directors prior to resolution andeffective Board of Directors, we will continue to promote efforts

pending matters are reported to the Board of Directors subse-

to improve the board’s functions based on evaluations and opin-

quent to resolution. In 2020, both outside directors and outsideions expressed.

Audit & Supervisory Board members actively made comments andSECOM REPORT 2020

49

ESG Initiatives

Directors, Audit & Supervisory Board Members andExecutive Officers
Audit & Supervisory
Board Members

Directors

Takayuki Ito
Koji Kato
Hideki Kato*
Makoto Yasuda*
Setsuo Tanaka**Outside

Makoto Iida

Yasuo Nakayama

Ichiro Ozeki

Founder

Chairman and
Representative Director

President andRepresentative Director

Executive Team
Directors

Executive Officers

Yasuo Nakayama

Kenichi Furukawa

Yoichi Sugimoto

Chairman and
Representative Director

Managing Executive Officer

Executive Officer

Masahiro Takeda

Sumiyuki Fukumitsu

Managing Executive Officer

Executive Officer

Toshiaki Mizuno

Kensuke ShindoManaging Executive Officer

Executive Officer

Senior Executive
Director

Shokichi Ishimura

Yasufumi Kuwahara

Managing Executive Officer

Executive Officer

Tatsuro Fuse

Keitaro Arai

Noriyuki Fukuoka

Executive Director

Managing Executive Officer

Executive Officer

Tatsuya Izumida

Osamu Ueda

Takeshi Akagi

Director

Managing Executive Officer

Executive Officer

Tatsushi Kurihara

Yoshinori Yamanaka

Sadahiro Sato

Director

Managing Executive Officer

Executive Officer

Ichiro Ozeki
President andRepresentative Director

Yasuyuki Yoshida

Yasuyuki Yoshida

Tatsuro Fuse

Tatsuya Izumida

Tatsushi Kurihara

Senior Executive
Director

Executive Director

Director

Director

Seiya Nagao
Executive Officer

Takaharu Hirose

Hirobumi Kawano Hajime Watanabe Miri Hara

Outside Director

Outside Director

Outside Director

Outside Director

Noriyuki Uematsu
Executive Officer

Osamu Nagai
Executive Officer

Atsushi Komatsu
Executive Officer

Kazuhiro Mitomo
Executive Officer

Takehiko Senda
Executive Officer

Takashi Nakada
Executive Officer

Michiyoshi Morita
Executive Officer

Makoto Inaba
Executive Officer

Toshinori Sugimoto
Executive Officer(As of July 31, 2020)

50

SECOM REPORT 2020

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

our basic policy has always been to promote systematic measuresthe lives and assets of our customers from legal violations or mal-to ensure unqualified compliance with the letter and spirit offeasance by third parties. As such, we recognize that it is essential

the law.

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

The SECOM Group Code of Employee Conduct prescribes

operate in a manner that complies with the letter and the spirit of

specific standards for employee behavior and ethical principles that

pertinent laws and regulations.

must be observed by all executives and employees in their relation-

Because they are in the position of regulating others, employees

ships with stakeholders, including communities, customers andmust also conduct themselves in a disciplined manner, discharging

suppliers. The code, which is also published in the form of atheir duties in good faith and in compliance with the letter and thepocket-sized guide, thus serves as a universal and timeless tem-spirit of the law, to earn the trust of customers, which is critical toplate for everyone in the SECOM family. Standards govern, among

the security services business. Since our establishment, we haveothers, deterring relations with antisocial elements, prohibiting ofviewed compliance as a matter of utmost importance. Accordingly,

corruption and bribery and complying with related laws.

System for promotion and administration
Our approach to compliance is notable in that it does not involveor she may seek the assistance of the Legal Department andthe establishment of a dedicated system overseen by a specificother related departments. When such laws and regulations

department or director, but rather positions each and every

are revised, executive officers are responsible for determining

employee on the front line of promoting the SECOM Group Codeappropriate responses, including examining the need to amendof Employee Conduct, including standards governing compliance,

the SECOM Group Code of Employee Conduct and, here again

and ensuring ethical behavior.

with cooperation of the Legal Department and other related

Compliance is the foundation of each employee’s day-to-day
work. Managers are responsible for providing guidance regarding
the SECOM Group Code of Employee Conduct and overseeing

departments, presenting related proposals to the President andRepresentative Director.
The duties of the internal audit departments, i.e., the Internal

the actions of employees to ensure compliance. Executive officers

Audit and Compliance Department and the Group Governanceare responsible for providing control for the department they

Department, include inspecting each group, department and sub-supervise, while the President and Representative Director pro-sidiary, providing guidance on addressing matters requiring correc-

vides control for the company as a whole. Each executive officer

tive action, and reporting inspection results to the President andmust also have a thorough knowledge of the laws and regulations

Representative Director, as well as to relevant executive officers.

pertinent to the department he or she supervises, for which he

SECOM REPORT 2020

51

ESG Initiatives

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

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

ees to report to their superior should they discover that anreports are kept confidential. As long as a report has been madeemployee, executive or other individual affiliated with a sub­in good faith, whistle-blowers are protected from any adverse

contractor has engaged in or appears likely to engage in an

impacts even if the report is not borne out by the subsequentaction that violates the code. In the event that no corrective

investigation. Pertinent executive officers are obliged to swiftly­measures are taken after a report has been made, or if circum­

assess the results of investigations and take appropriate corrective

stances make reporting to a supervisor difficult, employees may

measures to resolve the situation. Whistle-blowers are notified

report directly to the Internal Audit and Compliance Department

confidentially of the nature and outcome of investigations.

via the Hot Helpline. Executives and employees of subsidiaries
may report violations via the Group Head Office Helpline directly

Whistle-Blower Reports Received

to the Group Governance Department.

Year ended
March 31, 2018

Number ofreports

Year ended
March 31, 201960

48

Year ended
March 31, 2020

56

Organizational Culture Committee
The Organizational Culture Committee is a standing committee

reported to the President and Representative Director by thechaired by the President and Representative Director that meetsInternal Audit and Compliance Department or the executive

periodically or as necessary at the direction of the President and­officer in charge. If necessary, the committee examines proposals

Representative Director, and examines important organizational

for modifying the system for administering compliance or amend­

culture-related issues and determines important official

ing the SECOM Group Code of Employee Conduct. All such­commendations and punishments.

­proposals must be deliberated by the Organizational Culture

The Organizational Culture Committee also deliberates onmatters related to compliance with and the administration of theCommittee, reviewed by Audit & Supervisory Board members
and approved by the Board of Directors.

SECOM Group Code of Employee Conduct that have been

Global compliance training

52

We have translated SECOM’s Philosophy and the SECOM Group

global SECOM Group. We also provide training to the senior

Code of Employee Conduct, which outlines the basic concept

management of overseas Group companies on key aspects ofand specific standards for employee behavior, into multiple

compliance, including observance of laws and regulations, the­different languages and work to advance awareness across theprevention of bribery and internal controls.

SECOM REPORT 2020

Information and Data Security
Policy and system for promoting information security
With the rapid spread of IT, information security risks have risen

information security. When we outsource work, we enter into

significantly, as can be seen from the increasing sophistication of

appropriate contracts and provide guidance and supervision to

cyber attacks. Any leaks of personal or confidential information

subcontractors. We have put an executive officer in charge of

entrusted to us by a customer has the potential to seriously hinder

information security for the Group as a whole. In addition, execu-

our ability to provide security services, damage or adversely impact

tive officers in charge of each business have been made respon-

the customer, and result in the forfeiture of our brand image andsible for information security–related matters for their particular

reputation for reliability. Accordingly, we have created and main-

business, as well as for collaborating with the executive officer intain a robust information security system.

charge of information security to report on issues and presenting

We have also established the SECOM Group Information

proposals to the President and Representative Director.

Security Basic Policy, to guide our efforts to promote stringent

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

Information system controls and audits are the responsibility of

associated with information leaks and cyber attacks. We also work

subsidiary Secom Trust Systems and are conducted in accordance

to ensure that all employees of the SECOM Group, regardless ofwith Japan’s Information Security Management System (ISMS)

employment format, comply fully with our information security

standards under the guidance of the executive officer in charge ofrules, which include rules governing the use of personal comput-

information security. As well as conducting regular assessments of

ers and cellular telephones that must be protected for confiden-

vulnerability to external cyber attack risks, we monitor information

tiality reasons, the storage and carrying of information, and steps

systems around the clock to ensure we are prepared to respond toto be taken when an information security–related incident arises

risks, including those related to large-scale disasters and cyberor a violation of any other information security rule is discovered.

attacks.

Protecting personal information
The SECOM Group Code of Employee Conduct states that allcomplaints and consultations regarding our system for managing

information obtained in the course of business is confidential

and protecting personal information, facilitating swift andand must not be leaked, a stipulation with which all executives

appropriate responses. The parent company and Secom Trustand employees must strictly comply. We strive to prevent leak-

Systems have earned certification under Japan’s Privacy Mark,age, loss and damage through employee training and efforts

which is granted to organizations that take appropriate

to promote awareness regarding the treatment of personalmeasures to protect personal information.

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

Thorough information security (Year ended March 31, 2020)

and tests annually to confirm understanding of and adherence• Annual e-learning and testing to confirm understanding andto basic procedures and rules. The internal audit departments

adherence (participation: 100% of employees)

conduct periodic inspections of the handling of personal infor-• Voluntary audits (implementation: 100% of sites)

mation, data management and access control at each SECOM• No leaks of information

Group site. In addition, we have established a contact point for
queries regarding the handling of personal information and for*Scope of reporting: SECOM CO., LTD.

SECOM REPORT 2020

53

ESG Initiatives

Environmental Initiatives
Relevant SDGs

Central themes

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

Prevention of global warming
Reduction of environmental impact
across the value chain
Response to the recommendations of
the TCFD

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

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

Prevention of global warming
Environmental Management Indicators
1. Greenhouse gas emissions (Scopes 1 and 2)
2. Reduction of greenhouse gas emissions as against target
reduction from the base year to be achieved by the fiscal year
ending March 31, 2031
3. CO2 emissions per unit of production (emissions intensity)
4. Consumption of fuel by vehicles
5. Use of electric power
6. Industrial waste and resources with market value
7. Greenhouse gas emissions across the value chain (Scopes 1, 2 and 3)
Scope 1: Direct emissions (including those from the combustion offuel by vehicles, use of town gas and use of kerosene)
Scope 2: Indirect emissions (including those from the consumptionof purchased electric power, cold and hot water, andsteam)
Scope 3: Other indirect emissions (those not covered in Scope 1 or
2, from the activities of other companies up and down
the value chain)

We have established an environmental philosophy and basic environmental policy, in line with which we incorporate initiatives
aimed at resolving environmental issues with the aim of achieving
sustainable development. We evaluate and manage the SECOM
Group’s progress in promoting these initiatives over the long termagainst seven major environmental management indicators.

Short-term target (previous target)
Average annual decrease in CO2 emissions of 1.5% until
the fiscal year ending March 31, 2021
Medium-term target
35% reduction in greenhouse gas emissions from the fiscal year
ended March 31, 2014, by the fiscal year ending March 31, 2031
Long-term target
80% reduction in greenhouse gas emissions by 2050

Breakdown of CO2 Emissions by
the SECOM Group in
the Fiscal Year Ended March 31, 2020
Other 2.6%
Combustionof fuel by
vehicles
29.9%

Greenhouse Gas Emissions: Actual Results and Medium-Term Target
J Actual results J Target (35.0% reduction from the level(Metric tons of CO2)

in the fiscal year ended March 31, 2014)

100,000

Base year

13.5% decrease(Average annual
decrease: 2.4%)

90,00080,000Use ofelectricity

67.5%

70,000Target for the year ending
March 31, 2031:

60,000(Average annual
decrease: 2.5%)

35.0% reduction

50,00040,00080,871

78,907

79,29581,50876,751

74,947

69,93952,566

2014

2015

2016

2017

2018

2019

2020

2031

(Years ended/ending March 31)* Greenhouse gas emissions for each fiscal year are calculated in terms of metric tons of CO2 equivalent.
** Scope of reporting: SECOM CO., LTD. and 27 principal subsidiaries in the security services business.

54

SECOM REPORT 2020

Reduction of environmental impact across the value chain
Since the fiscal year ended March 31, 2014, we have sought to

Example of a System witha Reduced Environmental Impact

reduce greenhouse gas emissions across the entire value chain.

(HANKS III s Security System for Financial Institutions)Consumption ofelectric power: - 57%

Efforts to identify and reduce greenhouse gas emissions(Scopes 1, 2 and 3)
We request all suppliers to calculate and report energy input, greenhouse gas
emissions and water usage for products and services supplied to the SECOM Group.
As of March 31, 2020, reports had been received from suppliers accounting for
approximately 76% of procurement in monetary terms.

Volume:

- 55%

Mass:

- 66%

Efforts to promote environment-friendly design
We have distributed green engineering guidelines to 109 suppliers. In designing
products and services, we are also working to eliminate harmful chemical substances, reduce consumption of electric power, conserve resources, extend usefullife and promote recycling.

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

We recognize that the price of fuel consumed by vehicles used

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

tively disclose information on the financial impacts of risks andaffecting our nonlife insurance and data center services businesses

opportunities associated with climate change on our future

will increase, but we also understand that shifting customer needs

business activities in line with TCFD recommendations.

will yield opportunities to expand demand for new services. Accord-

In businesses such as security services, data center services

ingly, we will promote strategies that seek to capitalize on opportu-

and medical services, the ability to provide stable and uninter-

nities while remaining mindful of the potential impact of risks onrupted services is critical. To maintain services and systems at an

our operations.

acceptable level, we have established a Risk Committee andassess risks from multiple perspectives, including scope of impact,
scale, anticipated monetary cost of damage, urgency and frequency of occurrence, based on the results of Companywide risk
analysis. For example, we are using a scenario that assumes we
suffer damage due to a natural disaster to explore measures tominimize destruction and have created a management system
whereby a report is made to the Board of Directors if theseriousness of damage warrants it.

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

SECOM REPORT 202055