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CSR Management

Materiality

Considering Materiality

Sysmex has 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 materiality and are taking actions accordingly.

Identifying Materiality

The Process of Identifying Materiality

STEP 1: Understand and Organize the Issues

We analyzed societyʼs requirements based on international guidelines, such as the GRI Sustainability Reporting Guidelines (G4), the United Nations Sustainability Development Goals (SDGs) and ISO 26000, as well as screening content from sustainability assessment bodies. We compared these requirements against the current state of the Sysmexʼs CSR activities, extracting and identifying related aspects.

STEP 2: Prioritize

We then conducted an overall assessment of the related aspects identified in STEP 1 along two axes: the degree of importance for Sysmex’s stakeholders (size of impact on decision-making by stakeholders) and, from the perspective of risks and opportunities, the degree of importance for Sysmex (size of the Companyʼs impact on the economy, environment and society). Through this process, we discovered the most important aspects requiring priority initiatives.

STEP 3: Confirm Suitability, Establish Materiality

The materiality organized as a result of STEP 2 were approved at a management meeting chaired by the chairman and CEO.

STEP 1 Understand and Organize the Issues

STEP 1  Understand and Organize the Issues

STEP 2 Prioritize

Sysmex’s business activities impact society in various ways throughout the value chain. The Sysmex Group comprehensively evaluates these impacts along two axes, according to the “degree of importance for Sysmex’s stakeholders” and, from the perspective of risks and opportunities, by the “degree of importance for Sysmex.” We then select aspects of topmost importance requiring priority initiatives. The Company contributes to society by promoting CSR initiatives across the value chain.

STEP 2 Prioritize

Research and Development

Recognized Social Issues, Expectations of Sysmex

In advanced countries, as populations age the need is growing to reduce healthcare costs and extend healthy lifespans. Emerging markets and developing countries, meanwhile, face the issues of building healthcare infrastructure in line with population growth and ensuring the availability of healthcare. We recognize the need to contribute to the resolution of these various healthcare issues through research and development.

Main CSR-Related Aspects*
  • Resolution of medical issues through business activities
  • Improvement in accessibility to medical services by means such as familiarizing products
  • Securing of product quality and safety
  • Environmental consideration through the product lifecycle

Procurement

Recognized Social Issues, Expectations of Sysmex

The scope of corporate responsibility is broadening. In addition to the quality of raw materials, companies are being called on to take into account human rights, labor practices and consideration for the environment in their procurement activities. We believe in the importance of working with our business partners for the responsible provision of products and services.

Main CSR-Related Aspects*
  • Securing of product quality and safety
  • Assessment and management of the supply chain
  • Compliance
  • Environmental consideration through the product lifecycle

Manufacturing

Recognized Social Issues, Expectations of Sysmex

In recent years, society’s demands have increased in relation to product quality and safety. Accordingly, we believe in the importance of thorough compliance with laws, regulations and standards and assurance of high product quality and safety.

Main CSR-Related Aspects*
  • Securing of product quality and safety
  • Reduction in environmental burden through activities at business offices
  • Environmental consideration through the product lifecycle
  • Compliance

Distribution

Recognized Social Issues, Expectations of Sysmex

We believe in the importance of addressing environmental issues, such as reducing GHGs through improved distribution efficiency and raising the recycle rate.

Main CSR-Related Aspects*
  • Environmental consideration through the product lifecycle

Sales

Recognized Social Issues, Expectations of Sysmex

As a global company, we develop business in countries and regions that face healthcare issues, and we are called on to help address these issues.

Furthermore, we believe in the importance of creating long-term, trust-based relationships with customers through initiatives to enhance customer satisfaction, appropriate information disclosure and stable product supply.

Main CSR-Related Aspects*
  • Resolution of medical issues through business activities
  • Improvement in accessibility to medical services by means such as familiarizing products
  • Appropriate disclosure of information regarding products and services
  • Compliance

Service and Support

Recognized Social Issues, Expectations of Sysmex

We believe in the importance of building long-term trust-based relationships with customers through initiatives to boost customer satisfaction, the collection of quality information globally and in a timely manner, responses in the event of troubles, and sharing information globally about bugs and malfunctions, as well as corrective and preventive action.

Main CSR-Related Aspects*
  • Reduction of environmental burden through activities at business offices
  • Appropriate disclosure of information regarding products and services
  • Compliance

* CSR-related aspects: Aspects selected after analyzing GRI Guidelines (G4), United Nations Sustainability Development Goals (SDGs), ISO 26000 and other international guidelines, and screening content from SRI and other assessment bodies, and reflecting on the status of Sysmex’s CSR activities.

Sysmex’s Materiality Matrix
Sysmex’s Materiality Matrix

STEP 3 Confirm Suitability, Establish Materiality

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, Approaches

Resolution of Medical Issues through Products and Services
<Recognition of the Issues>

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, the establishment of medical infrastructure is 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 contribute to a healthy society by creating new value and solving healthcare issues, including the three most deadly infectious diseases (HIV/AIDS, tuberculosis, malaria).

Sysmex believes the resolution of medical issues through its business activities and activities that improve access to healthcare contribute to social sustainability and will bolster corporate value through the creation of new technologies and markets.

*Source: WHO “Universal Health Coverage

<Sysmex’s Approach>

Since the time of our founding, Sysmex has expanded its product lineup and strengthened its services and support in response to testing needs, working to provide accurate test data swiftly. In recent years, we have been conducting research and development on gene testing and other advanced, high-value testing and diagnosis 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 toward the development of healthcare and the healthy lives of people.

Responsible Provision of Products and Services

<Recognition of the Issues>

A recent spate of issues involving product quality and recalls have drawn attention to societyʼs demands for product and service quality and safety. Furthermore, in recent years the scope of corporate responsibility has expanded to encompass the entire supply chain, including business partners. The Sustainability Development Goals (SDGs) also include goals related to the responsibility of manufacturers.

Sysmex engages in the global development of business in the healthcare field, involves people’s lives and health. Accordingly, we work to ensure the quality and safety of our products and services, disclose information appropriately and conduct CSR-considerate procurement activities. We believe these moves are important in earning the trust of our stakeholders.

<Sysmex’s 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 customersʼ needs, creating a framework we call “Voice of 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-considerate 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 instilling confidence by offering responsible products and services.

Realizing an Attractive Workplace

<Recognition of the Issues>

In order to achieve sustainable growth, it is considered important for companies to promote diversity and create decent and attractive workplaces. Also, the SDGs include goals pertaining to gender equality, decent work 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.

<Sysmex’s 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 provide opportunities for their individual growth.

Environmental Consideration

<Recognition of the Issues>

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

As a company developing its operations globally, Sysmex recognizes increasingly serious environmental issues as a topmost priority. We also understand that large-scale environmental damage due to climate change is a significant business risk because they have the potential to halt our resource procurement and manufacturing functions.

<Sysmex’s Approach>

To guide the Group’s environmental management over the long term, along with long-term management goals for the Sysmex Group, Sysmex has formulated the 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

<Recognition of the Issues>

Numerous corporate scandals related to corporate governance, risk management and compliance have come to light in recent years, and their impact on society has increased.

In this environment, Japanʼs Corporate Governance Code went into effect in June 2015, 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 control, companies are being called on to buttress their management foundations for promoting risk management and compliance. Sysmex believes that reinforcing governance helps ensure stakeholder trust and is an important management issue in terms of enhancing medium- to long-term corporate value.

<Sysmex’s Approach>

Sysmex has established the Audit and Supervisory Committee and is strengthening the supervisory function by 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 the groupwide risk management function 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.

Objectives and Results

Fiscal 2017 Objectives Fiscal 2017 Results Fiscal 2018 Objectives
Resolution of Medical Issues through Products and Services
Promote activities to prevent the spread of three major infectious diseases
Promote support measures to raise the level of healthcare in emerging markets and developing countries
Continue participating in the Malaria Consortium, which connects industry, government and academia
Develop and launch hematology analyzers that can measure malarial plasmodia and other infected red blood cell parameters1
Promote scientific support activities in Mongolia and other emerging markets and developing countries
Continue activities to prevent the spread of three major infectious diseases
Promote support activities to raise the level of healthcare in emerging markets and developing countries
Responsible Provision of Products and Services
Conduct CSR awareness activities for business partners
Enhance CSR survey topics
Conducted briefings for business partners on such topics as CSR procurement and overseas laws and regulations (participating companies: 233)
Used the common SAQ2 created by GCNJ3 to conduct CSR surveys of all business partners (implementation rate at primary suppliers in Japan: 81%)
Expand scope of CSR surveys to include secondary suppliers in Japan
Conduct CSR surveys (implementation rate for primary and secondary suppliers in Japan: 80% or more)
Follow up with primary suppliers in Japan based on CSR survey results
Realization of an Attractive Workplace
Utilize diverse human resources and promote diverse working styles
  • Rate of employment of people with disabilities: 2.0%
    (Group companies in Japan)
  • Percentage of female managers: 10%
    (Sysmex Corporation)
Obtained certification for Sysmex Harmony Co., Ltd., as a special subsidiary for promoting the employment of people with disabilities
  • Rate of employment of people with disabilities: 2.0%
    (Group companies in Japan)
Completed introduction of a working-at-home system (131 registered employees, of whom 99 used the system)
Conducted education and training for female leaders
  • Percentage of female managers: 8.62%
    (Sysmex Corporation)
Formulate and implement diversity promotion plans
  • Rate of employment of people with disabilities: 2.2% or more
    (Group companies in Japan)
  • Percentage of female managers: 12%
    (Sysmex Corporation)
Environmental Consideration
Set medium- to long-term Group environmental objectives Completed the formulation of Sysmex Eco-Vision 2025 and mid-term environmental objectives (fiscal 2017–2019) Promote environmental activities to achieve the objectives of Eco-Vision 2025
  • Reduce CO2 emissions
  • Reduce water consumption
  • Promote resource circulation
  • Protect biodiversity
Governance
Promote compliance activities related to competition laws and anti-bribery
Evaluate the effectiveness of the Managing Board
Revised the guidebook on competition laws
Conducted training related to anti-bribery
Evaluated the effectiveness of the Managing Board
Promote measures to reinforce Group compliance
Continue and improve effectiveness evaluations of the Managing Board

1 For research use; only in Japan

2 CSR procurement self-assessment tool set
http://ungcjn.org/activities/topics/detail.php?id=229

3 Global Compact Network Japan

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