Materiality

Identified Materiality

Sysmexʼs Materiality

In May 2017, Sysmex identified priority issues (materiality) with a view to realizing a sustainable society and achieving sustainable growth for the Group. We are currently developing a specific action plan based on these identified materialities and are taking actions accordingly.

Sysmex’s Materiality
Materiality GRI Standard Related Perspective SDGs Targets
Resolution of medical issues through products and services
  • Resolution of medical issues through business activities
  • Improvement in accessibility to medical services by means such as familiarizing products
  • Indirect economic impact
  • Local communities
Responsible provision of products and services
  • Securing of product quality and safety
  • Appropriate disclosure of information regarding products and services
  • Assessment and management of the supply chain
  • Supplier environmental assessment
  • Supplier social assessment
  • Customer health and safety
  • Product and service labeling
Realization of an attractive workplace
  • Provision of a comfortable working environment
  • Development of human resources
  • Promotion of diversity
  • Employment
  • Training and education
  • Diversity and equal opportunity
Environmental consideration
  • Environmental consideration through the product lifecycle
  • Reduction in environmental burden through activities at business offices
  • Raw materials
  • Energy
  • Water
  • Emission into the atmosphere
  • Effluents and waste
Governance
  • Corporate governance
  • Compliance
  • Risk management
  • Ethics and integrity
  • Governance
  • Environment compliance
  • Anti-corruption
  • Anti-competitive behavior
  • Socioeconomic compliance

Recognition of the Issues, and Approaches to Them

Resolution of Medical Issues through Products and Services

<Why it is Important>

In relation to aging populations in advanced countries, in recent years the need has been growing to reduce healthcare costs and extend healthy lifespans. At the same time, medical infrastructures have been unable to keep pace with growing populations in emerging markets and developing countries, and some 400 million people around the world are not receiving necessary levels of healthcare.* Boosting access to healthcare services is therefore an issue. Meanwhile, the Sustainable Development Goals (SDGs) set targets for human health and welfare, prompting growing expectations for global companies to undertake initiatives to resolve medical issues.

Under these conditions, the in vitro diagnostics (IVD) domain, which plays an important role in disease prevention, early detection, and determining courses of treatment, is expected to create high-value testing and diagnostic technologies and solve healthcare issues, including the three most deadly infectious diseases (HIV/AIDS, tuberculosis, and malaria).

By addressing issues such as these, Sysmex works to contribute to the development of healthcare and the healthy lives of people. At the same time, we believe the emergence of new technologies and markets provides new business opportunities and will enable us to achieve sustainable growth.

<Approach>

Since our founding, Sysmex has expanded its product lineup and strengthened its services and support in response to testing needs, working to swiftly provide accurate test data. In recent years, we have been conducting research and development on gene testing and other advanced high-value testing and diagnostic technologies that lead to early detection and treatment, with a view to realizing personalized medicine. To boost access to healthcare in emerging markets and developing countries, we are promoting business activities aimed at raising local levels of healthcare by enhancing lab quality and promoting the training of healthcare professionals.

By leveraging the unique technologies we have cultivated to date, as well as our global network, we will continue to contribute to the development of healthcare and the healthy lives of people.

Responsible Provision of Products and Services

<Why it is Important>

Quality and recall issues are making society more vigilant about the quality and safety of products and services. In addition, the scope of corporate responsibility has expanded to the entire supply chain, including business partners. Furthermore, the Sustainable Development Goals (SDGs) identify responsibility for sustainable production, and raise targets for working environments.

Sysmex conducts business in the medical sector, which plays an important role in people’s lives and health. Accordingly, we are called upon to provide products and services of increasing quality and safety, as well as to manage our supply chain appropriately. We believe such activities are important, as they help improve the quality of healthcare and enhance customer satisfaction, thereby building brand strength.

<Approach>

Sysmex has created a global quality management system, through which it is consistently striving to maintain or increase quality levels. As initiatives to enhance customer satisfaction, we offer services and support that are closely tailored to customers’ needs, creating a framework we call the "Voice of the Customer" (VOC) to incorporate customer input into our product development and quality improvements, and provide the most recent scientific information. Furthermore, as a company developing its business globally, we are reinforcing our systems for delivering a stable supply of products, promoting CSR-appropriate procurement activities, and aiming to grow in a sustainable manner in tandem with our business partners.

Going forward, we will continue striving to earn the trust of our stakeholders and instill confidence by offering responsible products and services.

Realizing an Attractive Workplace

<Why it is Important>

Achieving sustainable growth requires a company to recruit excellent personnel. To do so, companies need to promote diversity and provide workplaces that are easy to work in, fulfilling, and appealing. Also, the SDGs include goals pertaining to gender equality, decent working conditions, and reduced inequalities.

Sysmex considers human resources an important management asset necessary for sustainable growth. We believe that creating attractive workplaces helps ensure superior personnel, reinforcing our corporate competitiveness.

<Approach>

Sysmex has in place a human resource development system that develops capabilities in an ongoing and systematic manner. We promote diversity and inclusion, and have introduced various systems to create a workplace that provides peace of mind and enables diverse employees to maximize their skills.

As we strive toward sustainable growth, we will continue in our efforts to build a workplace in which diverse human resources can maximize their potential, and will provide opportunities for their individual growth.

Environmental Consideration

<Why it is Important>

We recognize that mitigating climate change, using water, mineral and other resources, and protecting biodiversity are critical to the sustainability of the global environment. As the coming into force of the Paris Agreement and the Sustainable Development Goals (SDGs) demonstrate, a growing number of initiatives around the world make addressing environmental problems a priority issue, and companies are being called upon to play a greater role.

As a company developing its operations globally, Sysmex recognizes increasingly serious environmental issues as a topmost priority. We understand that large-scale environmental damage due to climate change is a significant business risk because it has the potential to halt our resource procurement and manufacturing functions. At the same time, we believe consideration for the environment is connected with coexisting with local communities and ensuring the trust of our stakeholders.

<Approach>

To guide the Group’s environmental management over the long term, along with long-range management goals for the Sysmex Group, Sysmex has formulated our Sysmex Eco-Vision 2025. This vision sets long-term environmental targets to be achieved by fiscal 2025. We are promoting environmental preservation across product and service life cycles and throughout the value chain of our business activities.

Going forward, along with the pursuit of sustainable growth we will continue striving to reduce environmental impact – a vital social issue.

Governance

<Why it is Important>

Corporate scandals occur due to a lack of governance, and their impact on society is increasing. In June 2015, Japanʼs Corporate Governance Code went into effect, calling on companies to take governance into consideration in non-financial areas as well as on the financial front.

In addition to strengthening governance and internal controls, Sysmex is being called upon to buttress its risk management and compliance structures to enhance our management foundations. Sysmex believes these initiatives will help reduce business risks, ensure stakeholder trust, and are an important management issue connected to enhancing medium- to long-term corporate value.

<Approach>

Sysmex has established an Audit and Supervisory Committee and is strengthening the supervisory function of external members of the Managing Board, as well as enhancing the Managing Boardʼs effectiveness and reinforcing governance in other ways. In line with these changes, we are putting in place systems to fortify Group-wide risk management functions, and have established a Compliance Committee and an internal reporting system as initiatives to strengthen our base with a view to sustainable growth.

We will continue aiming to maximize the overall corporate value of the Group through management robustness, better transparency and improved management speed and efficiency.

Non-Financial Targets (KPIs)

The Group Mid-Term Management Plan (fiscal years ending March 31, 2020 to 2022) sets ESG-related targets tied to materiality, clarifying the position of CSR activities within the overall management scheme. Individual departments will roll out execution plans and activities to achieve these ESG-related targets and report their progress at management meetings. Targets are then reviewed and new measures considered, in a PDCA cycle.

Materiality KPI Definition Target value for fiscal year ending March 31, 2022 Target value for fiscal year ending March 31, 2026 (Eco-Vision)
Resolution of medical issues through products and services Resolution of medical issues through business activities Hematology market share Within the hematology field, consolidated sales as a percentage of the market for instruments, reagents and services Note 2
Number of patents Total number of patents, utility model rights and design rights held Note 2
Number of new patents Total number of applications filed for patents, utility model rights and design rights Note 2
Number of scientific papers Number of scientific papers presented by users of the Company’s products Note 2
Improvement in accessibility to medical services by means such as familiarizing products Percentage of sales in emerging markets Sales in emerging markets as a percentage of consolidated sales Note 2
Responsible provision of products and services Assessment and management of the supply chain Number of CSR surveys Number of business partners responding to CSR surveys Note 2
Realization of an attractive workplace Provision of a comfortable working environment Engagement score Corporate Culture Survey results 75%
Turnover ratio Turnover ratio of regular employees, excluding people who have reached the mandatory retirement age1 Note 2
Lost-time injuries frequency rate Number of employee deaths or injuries resulting from work-related accidents per million work hours1 Less than 0.35%
Lost work day rate Ratio of the number of days absent from work due to work-related injuries per thousand hours worked1 Less than 0.05%
Promotion of diversity Female managers ratio Percentage of women at director level or above 16.0%
Development of human resources Training time per employee Average hours of training per employee provided by the Human Resources Division 25.0 hours
Environmental consideration (Note: From Eco-Vision 2025)
Base year: Fiscal 2016
Environmental consideration through product lifecycle Reduction of CO2 emissions (instruments) Percentage reduction in CO2 emissions per instrument 10% reduction 15% reduction
Reduction of water consumption (instruments) Percentage reduction in water volume per instrument 10% reduction 15% reduction
Reduction of CO2 emissions (shipping) Percentage reduction in CO2 emissions during shipping and distribution per unit of parent-only sales 10% reduction 15% reduction
Reduction in environmental burden through activities at business offices Reduction of CO2 emissions (business activities) Percentage reduction in CO2 emissions during business activities per unit of consolidated sales 10% reduction 50% reduction
Reduction of water consumption (business activities) Percentage reduction in water use during business activities per unit of consolidated sales 10% reduction 15% reduction
Recycle rate Recycling volume divided by total waste volume 88% or more 93% or more
Governance Compliance Number of internal reporting Number of internal reporting Note 2
Number of unethical incident In the event of violations of law or the Global Compliance Code, the number of incidents involving disciplinary action Note 2
  1. Target: Sysmex Corporation on a non-consolidated basis
  2. Set as a monitoring index; no target value has been set