2014 - Topcon · Financial Information TOPCON Group) ... Control System ... Special Feature 02...

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TOPCON GROUP CSR Report

TOPCON GROUP CSR Report

C O N T E N T S

Joining Forces with Our Stakeholders …… 01

Company Overview …………………………………… 02Financial Information ………………………………… 02Message from the President …………………… 03

CSR Mind ……………………………………………… 04The Targets and Achievements of CSR …………………………………………………… 05

Creating Shared Value (CSV) activities and other social contribution activities

Activities in Europe and America …… 07Activities in Asia ………………………………… 09

Corporate Governance …………………… 11Internal Control …………………………………… 12Compliance Training ………………………… 13Strengthening Global Export Control System …………………………………… 13Information Security and Personal Information Protection ……………………… 14

Quality Improvement Activities ……… 15Acquisition of ISO 9001 Certification ………………………………………… 15

Joint Activities with Procurement Partners ……………………… 16Briefing Session on Management Policy for Suppliers …… 16

Personnel System ……………………………… 17Working Hours, leave System and Job-related Accidents ……………… 18

UNGC-related Activities …………………… 19TOPCON GROUP Environmental Vision 2020 ……………… 19Environmental Impact of the TOPCON GROUP （2013) ……… 20Environmental Impact Caused by TOPCON HQ （2013） …………………… 20Efforts for Reducing the Environmental Impact ………………… 21Energy-saving Activities in Europe … 21

“ISO 14001” audit in TOPCON Group ………………………………… 21

Third-Party Opinion …………………………………… 22In Response to the Third-Party Opinion … 22

Joining Forces with Our Stakeholders

TOPCON Group conveys information about corporate social responsibil-ities (CSR) to all stakeholders since the issuance of an environment re-port in 2001.Since 2006, we have newly issued a CSR report including information on sociality to tell stakeholders about social and environmental activities of TOPCON Group.Continuing from CSR Report 2013, this report, the ninth edition, features Creating Shared Value (CSV, valuable activities for both the society and TOPCON Group) based on TOPCON WAY and our social contribution.Furthermore, the report covers top-ics on a newly-established personnel

system serving as a “pillar of human rights” and “Topconian” and clearly explain the fields on which TOPCON Group is going to place a particular emphasis.This edition runs stories from the perspective of TOPCON WAY. As a participant in the UN Global Compact (GC) since 2007, TOPCON Group is required to present an annual report,

“Communication on Progress (COP),” which describes the progress on GC ten principles (in the areas of human rights, labor, the environment and an-ti-corruption, as detailed on page 19).CSR Report 2014 is designed to serve as a COP report.

■Date of Publication　June 2014（ Previous issue: May 2013）

■Guidelines Used as ReferencesISO26000 “Guidance on social responsibility”

Global Reporting Initiative （GRI） G4 GuidelinesEnvironment Reporting Guidelines 2012 from the Ministry of the Environment of Japan※ We selected easy-to-read colors and character fonts for those who have problems in color recognition.

■ Corporate nameTOPCON CORPORATION

■ EstablishedSeptember 1,1932

■ Location of the head office75-1, Hasunuma-cho, Itabashi-ku, Tokyo

■ President & CEOSatoshi Hirano

■ Capital16,638 million yen (as of March 31,2014)

■ Consolidated subsidiaries8 domestic and 53 overseas companies (as of March 31,2014)

■ Number of employees3,977 (consolidated; as of March 31,2014)

■ BusinessSmart Infrastructure （Surveying instruments, 3D measurement, GIS, Mobilemapping system）, Positioning （GPS, Machine control system, Precisionagriculture）, Eye Care （Ophthalmic instruments, Optometric instruments）

■ Major international CSR-related charters TOPCON supportsUnited Nations Global Compact

◆TOPCON GROUP

AMERICA14 companies

（881 employees）

EUROPE21 companies

（675 employees）

ASIA & OCEANIA14 companies

（Including 1 company in Middle East）（276 employees）

JAPAN9 companies

（1,561 employees)

CHINA4 companies

（584 employees）

http://global.topcon.com/about/profile/ (Corporate Profile）

http://global.topcon.com/invest/library/finance/ (Financial Results）

http://www.topcon.co.jp/en/corporate/outline/ (Business Outline, Key Strategy）

Company Overview 〉〉〉〉〉〉〉Editorial Policy: About the Disclosure of Our CSR-Related Information

TOPCON will appropriately disclose information to shareholders in a timely manner, work to build a relationship of trust with them, and continually strive to improve our corporate value.

As it is indicated in “TOPCON WAY” and Code of Business Conduct, TOP-CON Group makes every effort to cultivate a relationship of trust with our shareholders and other stakeholders by disclosing appropriate and timely information in accordance with laws and regulations stipulated by the stock exchange.

● In April 2011, The Management Vision, Management Policy and Business Con-duct Guidelines were integrated and rearranged into the “TOPCON WAY”, a newly-defined fundamental principle of TOPCON Group.

http://www.topcon.co.jp/en/corporate/philosophy/ (“TOPCON WAY”)

● This CSR Report 2014 and previous CSR reports in PDF format, as well as addi-tional environment-related information not covered in the CSR reports, Code of Business Conduct and CSR Policy are available on the Social and Environmental Activities （CSR） page of our website.

http://global.topcon.com/csr/ (CSR) http://global.topcon.com/csr/code/index.html (TOPCON Code of Business Conduct)

http://global.topcon.com/csr/policy/index.html (Major policies of CSR)

● The Investor Relations page of our website provides information about stocks and financial performance, IR website award that TOPCON has received and so on.

http://global.topcon.com/invest/ (Investor Relations)

Award-Winning Websites

CSR Activity Report

CSR Managem

ent ReportCSR M

ind

2013

TOPCON GROUPCSR Report

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◆Consolidated Sales ◆Operating Income, Net Income ◆Sales by Region

Operating IncomeNet Income

1414 1717 2020

5252

117117

11－12－12 －36－36

55

5959

（FY）2009 2010 2011 2012 2013

－50

0

50

100

150（100 million yen）（100 million yen）

－200

－100

0

100

200

300

400

500 Net Sales116.6

billion yen

SIC346

POC489

ECC387

Others66Eliminations &

Corporate items－122

S I C：Smart Infrastructure CompanyPOC：Positioning CompanyECC：Eye Care Company

Japan274

North America259Europe

285

China80

Asia andOceania

　　　　　141

Others125

（100 million yen）Less than 100 million yen omission

Financial Information 〉〉〉〉〉〉〉

Special Feature

02

TOPCON Group Corporate Social Responsibility Report 2014

http://www.topcon.co.jp/en/corporate/philosophy/

http://global.topcon.com/csr/

http://global.topcon.com/csr/code/index.html

http://global.topcon.com/csr/policy/index.html

http://global.topcon.com/invest/

http://global.topcon.com/about/profile/

http://global.topcon.com/invest/library/finance/

http://www.topcon.co.jp/en/corporate/outline/

Environmentalprotection,plant tours, andlinkage for local revitalization

Providing productsand services

Observing laws andregulations

Informationdisclosure,dividend distribution,governance, etc.

Third-party opinions,cooperative works

Specifying materialprocurement

policies andpromoting SCM

Skill development,fair evaluation,safety, health, etc.

Global &Local

communityEmployees

Business Partners

Shareholders&

investors

NPOs&

citizen groups

Consumers&

customers

Governmental authorities

Exhibitions,academic conferences,

publications,call centers

Legal documentsSupport for environmentaladministration

IR Public Relations

Support foractivities,

informationexchanges

CSR INFO-LINKTOPCON Code ofBusiness Conduct

Support forlocal events

RoHScomplianceassurancesystems

TOPCONGROUP

1

2

3

5

6

4

Based on the basic policy for CSR, TOPCON Group offers products and services that will help address social challenges. At the same time, TOPCON Group attaches great importance to communications with its stakeholders and endeavors to make social contributions through its business activities.

Relationship between Stakeholders and TOPCON GROUP

To be a global top companyTOPCON Group posted increases both in sales and profits for the business year ending in March 2014 and successfully achieved all targets announced to the public.The mid-term vision titled “a shift from business structure reform to growth strategies” has a slogan of “Creativity & Growth” with the aim of achieving profitable and sustainable growth by producing creative ideas and of being a global top company with concerted efforts throughout the company.We also have three pillars of business strategies including enhancement of new businesses and strengthening of core businesses, launch of disruptive, strategic products which bring outstanding growth onto the market, and active use of global human resources. We are striving to further enhance corporate value toward FY2015 target of ROE 20%.

Social contribution based on TOPCON WAYIn April 2011, we defined TOPCON WAY, the most im-portant value to create the future of TOPCON Group and declared that TOPCON Group will contribute to the human society for many years to come through pursuing the possi-bilities of “light,” our core technology, which covers a wide wavelength range, developing Time-to-Market No.1 (TM-1)

products which meet potential, unnoticed needs of custom-ers, and creating novel value.As part of the efforts, we offer ICT construction systems us-ing GNSS (GPS) in the civil engineering field, IT precision agriculture products which contribute to improving food pro-ductivity, Building Information Modeling (BIM) systems with strong basis of surveying instruments which reduce environ-mental loads, smart sensing of aging infrastructure which has raised a social concern in developed countries and ICT disas-ter prevention products. We also offer eye care products cov-ering from prevention to treatment particularly in the fields of examination and diagnosis such as Optical Coherence Tomography (OCT) which contributes to detect and treat a variety of eye diseases at early stage and protect eye health, and ophthalmic photocoagulation systems.

Development of TopconianTOPCON Group operates business around the world with non-Japanese employees accounting for 60% of the total. It is essential for our business development to respect the fun-damental human rights of employees and offer an optimum work environment.Furthermore, it is important to clearly define an ideal state of

organization desired to be achieved and develop human resources, “Topconian,” who are needed by the company in order to fulfill the management vision of “To strive for sustainable growth with having spirits of ‘Monozukuri ’ and disseminating innovation to the world.” and “To place compliance at the highest priority and be a trust-worthy company for all stakeholders.”

“Development of human resources” means “development of busi-ness.” We are committed to developing “Topconian” throughout TOPCON Group around the world to be a global top company.

With a spirit of Global Compact as a basisTOPCON Group assented to the purports of the UN Global Com-pact and, since 2007, has made positive efforts to incorporate the ten principles in the areas of “human rights,” “the environment,” “labor” and “anti-corruption” into the TOPCON WAY, group strategies, cor-porate culture, day-to-day operations and a basis for defining “Top-conian.”TOPCON Group will strive to achieve profitable and sustainable growth and secure the confidence of our stakeholders through im-proving corporate culture and structure based on the TOPCON WAY.We would be grateful for your further support and cooperation.

In addition to the CSR reports and our websites, TOPCON Group utilizes various channels of communication, as described above.

Satoshi HiranoPresident & CEO

Topcon studies the possibilities of “light,” creates new values toward the future, and contributes to build a rich human society.

TOPCON WAY

http://www.topcon.co.jp/en/corporate/philosophy/（「TOPCON WAY」）

CSR MindTopcon studies the possibilities of “light,” creates new values toward the future, and contributes to build a rich human society.

Topcon will maintain a proactive and responsive attitude by foreseeing any changes and place the utmost priority on compliance under all circumstances, thereby continually striving to be a trustworthy partner to all stakeholders.

Topcon will do its utmost to improve quality in all stages from development and design to manufacturing, sales and service; supply products of the highest quality, and develop our customers’ businesses.

Topcon will build relationships of mutual trust and partnership with sales agents and other business partners, and mutually develop business through information sharing and close cooperation.

Topcon will implement two-way communication with employees, and will re-spect diverse individualities, values, and the spirit of creation and innovation, and maximize the employees’ skills.

Topcon, as a member of the global and local community, will respect global standards concerning human rights, the environment, labor standards, and an-ti-corruption measures, and contribute to building sustainable markets.

Topcon will appropriately disclose information to shareholders in a timely man-ner, work to build a relationship of trust with them, and continually strive to improve our corporate value.

● The “TOPCON WAY” defines a set of common values, and standard of action that all executives and employees of TOPCON Group share beyond nation-al borders and cultural difference.

● Clause 1 defines the management principle; Clause 2 clarifies the existence condition; and Clauses 3 to 7 declare our relationships with our stakeholders.● The word “light” in Clause 1 refers to a wide range of our technologies in the areas of radio waves, infrared rays, visible light, ultraviolet rays and X rays.

Basic policy for CSRTOPCON will locate CSR activities in the center of business and work on it intentionally in order to build, share and implement the sense of values and standards suitable for global enterprise.

TOPCON will, to the extent of our influence, support and implement the rules and regulations that are globally approved regarding Human Rights, Labor Standards, Environment and/or Anti-Corruption as declared in the UN Global Compact.

TOPCON will make a social contribution voluntarily and actively through developments, production, sales and services of useful products.

TOPCON will promote an environmental management through the creation of environmentally-conscious business process and through providing with environmentally-conscious products and services.

TOPCON will strive to establish CSR activities in every officer and employee’s daily work and to infiltrate and establish them on a global basis within the entire TOPCON Group.

TOPCON will acquire understanding and earn the trust of all the stakeholders of TOPCON group companies by providing with information actively.

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TOPCON Group Corporate Social Responsibility Report 2014TOPCON Group Corporate Social Responsibility Report 2014

Message from the President

http://www.topcon.co.jp/en/corporate/philosophy/

Items Key Goals and Plans for FY2013 Key Achievements in FY2013 ※ Key Goals and Plans for FY2014 Comparison with GC Ten Principles

Corporate Governance

● Disseminating the Corporate Governance Principles（Continued）● Holding seminars on the Corporate Governance Principles and CSR

education program

● Provided training for managers according to plan● Adopted in domestic group companies according to plan

○● Disseminating the Corporate Governance Principles（Continued）● Holding seminars on the Corporate Governance Principles and CSR

education program Principle 1 to 10● Ratification of TOPCON Code of Business Conduct in domestic

group companies.● Adopted in domestic group companies as planned ● Disseminate the group governance

Risk Compliance

● Reviewing the BCP according to the changes in social conditions ● Reviewed BCP on the assumption that earthquake may occur be-neath the company sites

● Increased stockpiles of emergency supplies (food, beverage, portable toilets, blankets, etc.) and provided satellite phones

△

● Promote BCP in group companies● Review and expand emergency stockpiles

Principle 1, 6● Employment rate of persons with disabilities: 2.0% （complying with

legal requirements）● Employment rate of persons with disabilities: 1.83% (short by a per-

son)● Employment rate of persons with disabilities: 2.0% （complying with

legal requirements）● Holding topic-by-topic compliance seminars ● Held topic-by-topic compliance seminars with updated materials

including training at overseas group companies as planned● Holding topic-by-topic compliance seminars（Continued）

Responsibilities to Customers

● Developing and releasing new products through promotion of TM-1activities

● Conducted risk analysis and enhanced design review to shorten development times and improve quality

○

● Enhance design review to improve quality of new products

Principle 1

● Improving pre-verification capabilities in upper stream and prevent-ing quality problems

● Enhance change-point control to improve product quality

● Improving the total quality assurance system across group compa-nies

● Promoted awareness of prioritizing the quality through the Technolo-gy/Quality Month and other quality forums

● Enhance the internal audit system to strengthen an ability to identi-fy true cause

● Promoting prompt feedback of customer information ● Speeded up the feedback of quality information between group com-panies on a global basis

● Promote to consolidate customer complaints information between group companies on a global basis

Responsibilities to Business Partners

● Revising green procurement standards to ensure that suppliers appropriately manage chemical substances

● Revised the Green Procurement Standard. Added items on prohibit-ed minerals ○

● Ensure a new guideline is communicated to and understood by suppliers

Principle 1, 2

Responsibilities to Employees

● Measures for reducing metabolic syndrome cases ● Conducted measures for reducing metabolic syndrome cases as planned

○

● Conduct more effective measures to promote health

Principle 2, 3

● Continuing no-smoking programs ● Promoted non-smoking campaign. Percentage of smokers: 27.1% (101.5% as compared to FY2012)

● Review measures to further reduce smokers

● Strengthening cooperation in safety and health matters within group companies and improving management levels

● Disseminated the important items related to health and safety ● Further improve work environment

● Continual improvement of the personnel system ● Established a new personnel system and a human resources vision ● Conduct Topconian training in group companies around the world

Responsibilities to International and Local Communities

● Providing environmentally conscious and resource-saving products, and products and services useful for improving medical care, health care and life in general

● Provided products that would help address social issues (Energy saving, Reduce environmental impact, Aging problem etc.)

○

● Providing environmentally conscious and resource-saving products, and products and services useful for improving medical care, health care and life in general(Continued)

Principle 1, 7, 8, 9

● International volunteer assistance ● Conducted as planned ● Make suggestions for new volunteer activities and carry out them● Assisting of medical and academic institutes （product donation and

sponsor seminars）● Conducted as planned ● Offer more effective assistance to medical and academic institutes

Enforcing Environment

Management System

● Further implementation of continuous audit ● Conducted the dowment-based audit at 6 group companies with facility and many employees ○

● Consider the implementation of field audit

Providing Environmentally Conscious Products

and Services

● Further improvement of providing environmentally conscious prod-ucts

● Provided environmentally conscious products 93.6% of sales （Target achievement） ○

● Achieve a higher level than that in FY2013

Establishing Environmentally

Conscience Business Processes

● Implementation of measures against global warming （Reduction in CO₂ emissions） 6.5% reduction from the previous year （to comply with Tokyo metropolitan ordinance）

● 28.1% reduction (51% as compared to the base year)

○

● Implementation of measures against global warming （Reduction in CO₂ emissions） 12.0% reduction from the previous year （to comply with Tokyo metropolitan ordinance

● Effective use of resources Continuing zero-emission efforts （Less than the previous fiscal year）

● Continuing zero-emission efforts（ Decrease in emissions；49%） ● Effective use of resources Continuing zero-emission efforts （Less than the previous fiscal year）

● Management of chemical substances Strengthening central manage-ment （Using less chemical substances than the previous year）

● Use of organic solvents: 10% reduction（1,625kg） ● Hold the amount of use below the level of FY2013 targets

Promoting Environmental

Communication

● Strengthening of cooperation with governmental authorities and local residents

● Carried out community cooperation activities according to plan○

● Strengthening of cooperation with governmental authorities and local residents (Continued)

Responsibilities to Shareholders and Investors

● Providing information to shareholders and investors● Maintaining external evaluations and increasing analyst coverage

● Improved in Web content● Maintained the number of analyst coverage (3 coverage) ○

● Strengthen of providing information to stockholders and investors● Maintaining external evaluations and increasing analyst coverage Principle

1

Communication

● Issuing TOPCON GROUP CSR Report ● Posted to the web site in June (Japanese-English)

○

● Issuing TOPCON GROUP CSR Report on planned● Issuing the CSR information（ CSR INFO-LINK） ● Published as appropriate ● Strengthening of information dissemination by reviewing the con-

tents of the issue content● Reviewing the working groups to join ● Participated in the GC-JN working group ● Conduct benchmark activities through participation in working

groups● Posting corporate information on the website in a timely fashion ● Disclosed corporate information in a timely fashion ● Posting corporate information on the website in a timely fashion

(continued)● Social contribution activities in collaboration with NPOs ● Cooperated with NPOs specialized in social contributions ● Promote more effective social contribution activities including re-

view of partners※Legend in the Self-Assessment column: Of the three marks used, basically,

○ means “the target is 100% met”; △ means “the target is partly not met, or there is room for improvement”; and × means “the target is not met.”

■ CSR Reports published since FY2010 outline major targets, achievements and the next year’s plan of CSR activi-ties by TOPCON Group.The CSR Report for fiscal 2011 created the Self-Assessment column, along with a review of items from the viewpoint of TOPCON WAY. As the name suggests, this report covers major activities con-ducted during fiscal 2013.

■ General Overview of the CSR Activities in FY2013In FY2013, we achieved almost all of targets, but some items scored △.As for the percentage of employees with disabilities, we will make efforts to achieve the statutory employment rate by use of job placement offices and employment agencies. We excluded the target of establish-ment of SNS guidel ine from action plans because it is under review. The figures of some items such as the amount of use of chemical substances are already reduced to the limit.We will review targets and plans for the next fiscal year taking these factors into consideration.

※TOPCON WAYIn April 2011, TOPCON Group established the “TOPCON WAY” as a newly defined common value by integrating and rearrang-ing the conventional Management Vision, Management Policy, and Business Conduct Guidelines.Each category of CSR targets and achieve-ments is color-coded and arranged accord-ing to the items of TOPCON WAY.

The Targets and Achievements of CSRThe role of the TOPCON CSR Committee is to review and evaluate year-by-year achievements regarding our CSR activities,and to set goals and plans for the next year.In fiscal 2013, we were committed to strengthening group governance (visiting domestic/overseas group companies for training), establishing a green procurement guideline and reducing chemical substances used in our products.

General Overview of the CSR Activities in FY2013Comments from the Chairman of

the CSR Committee

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Topcon studies the possibilities of “light,” creates new values toward the future, and contributes to build a rich human society.CSR Mind

Creating Shared Value (CSV) activities and other social contribution activitiesIn order to make continuous contribution towards humanity, TOPCON Group is undergoing a shift general corporate social responsibility (CSR) to a new form of activities called “creating shared value” (CSV), which focuses more on the creation of value beneficial to both society and TOPCON Group. The Special Feature describes the CSV and general CSR activities we conducted in FY2013.

Topcon Positioning Systems, Inc. Topcon Europe Positioning B.V. Topcon Europe Medical B.V.〉〉〉Academic supportWe offered the most advanced TOPCON products for surveying and optometry courses at Dublin Institute of Technology, Ireland.We se t up “TOPCON Lab” as part of our education support programs. TOPCON Group has carried out education support programs over the years and pro-vided support for more than 500 schools worldwide.

Topcon S.A.R.L〉〉〉Contribution to societyDonated 1,264 Euros to an organization which supports people with disabilities to find a job.

Topcon Denmark〉〉〉Contribution to societyWe donated 8,000 Danish Krone to “SOS BORNEBYERNE,” a body which provides sup-port for children in need.

Topcon Positioning Systems, Inc.〉〉〉Contribution to societyWe made a donation to the 19th Livermore Valley Wine Auction co-hosted by Livermore Valley Winegrowers Foundation and Wente Family Foundation for Arts Education. The Auction has raised 3.6 million U.S. dollars in total since the 1st event. The money is used to provide support in education and health to im-prove well-being of children in need in Livermore.

Topcon Positioning Systems, Inc.〉〉〉Contribution to societyParticipated in “Relay for Life” hosted by the American Cancer Society held on June 22, 2013 in Livermore, California. This is a charitable event to encourage people who fight back against cancer and create a soci-ety which never yields to cancer.In addition to collecting donations from employees before and after the event, a team of TOPCON staffs hosted a booth in the event site on the day and raised 19,628 U.S. dollars, the largest amount among more than 60 teams in the Liver-more area. The company has also made a variety of social contribu-tions such as offering scholarships.

Topcon Medical Systems, Inc.〉〉〉Contribution to societyHeld the 7th Food Drive in which employees donated non-perishable food items for families who cannot afford to buy Thanksgiving meals.Made donations of money and foods to the Emmanuel Cancer Organization (a body which provides support for children diagnosed with cancer and their fami-lies).Sponsored the Toys for Tots program hosted by the U.S. Marine Corps and gave toys to less fortunate children as gift.

Topcon Medical Systems, Inc.〉〉〉Continued support to free eye examsContinued to participate in “OneSight,” a char-itable program hosted by Luxottica. TOPCON offered vision testers and dispatched employ-ees as volunteer staffs to the Fresh Air Fund

Camp (an event w h i c h i n v i t -e d m o r e t h a n 17,000 disad-vantaged chil -dren to summer camp and provided free eye exams and glasses).

Activities in Europe and America

State of the event

Volunteer staff

Surveying instruments and medical equipment offered (excerpts)

State of the ophthalmic examination

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Special Feature

Activities in Asia

Topcon Corporation Topcon Singapore Medical Pte. Ltd.〉〉〉Contribution to medicalWe donated eye examination equipment to Ministry of Health, Myanmar to help solve the shortage of health care workers and medical equip-ment. In particular, 3D OCT-1 Maestro allows for auto shoot without skills and experience and contributes to solving such problems. The equipment is planned to be installed at major public university hos-pitals through the Ministry.

Topcon Corporation Topcon Singapore Positioning Pte. Ltd.〉〉〉Contribution to human resource developmentWe donated surveying instruments -Total Stations and Auto Levels- to Yangon Technological University, Myanmar. We are contributing to developing human resources who will play a major role in infrastructure development such as reduction of traffic congestion caused by delay in road pavement works and development of water and electricity infrastructure.

Topcon Corporation Topcon Yamagata Co., Ltd.〉〉〉Contribution to societyWe opened a company prem-ise to the community for tem-porary use such as for PTAs of elementary and junior high schools to collect recyclable waste and for local govern-ments to conduct fire drill and offer a place to rest in festivals.

Topcon Corporation Topcon Yamagata Co., Ltd. Optonexus Co., Ltd.〉〉〉Support Activities to Local Education and Academic FacilitiesWe offered internship (work experience) op-portunities for middle- and h i gh - schoo l and junior college students to help them cultivate a desirable view of career and work for the future.

Topcon Singapore Medical Pte. Ltd.〉〉〉Contribution to societyWe have hosted free eye ex-ams through Singapore Nation-al Eye Centre over the years.

Topcon Instruments（Thailand） Co., Ltd.〉〉〉Academic supportWe provided surveying courses using TOPCON surveying instruments for pro-fessors and students at Rajchamongkon Isan University.

Topcon Instruments（Thailand） Co., Ltd.〉〉〉Academic supportWe provided hands-on training using advanced GPS equipment for Khonkaen Road and Construction Center and contributed to improvement of knowl-edge and acquisition of skills. We also made a donation to Surin Hospital and Chonbri Hospital as a contribution to in-hospital training.

Topcon Optical（Dongguan） Technology Ltd.〉〉〉Contribution to societyWe donated 10,000 RMB to a Chinese charitable foun-dation engaged in poverty alle-viation in the country. We also made a donation of 88,672 RMB to the Persons with Disabilities Fund as support for livelihood and medical treatment.

Eye exams events

State of the presentation ceremony

Certificate of appreciation

A scene of ceremony

Surveying courses

A scene of hands-on training

Opening a company premise to the community

Middle- and high-school students participating in vocational training

Activities that are introduced in the report are just a few.Topcon Group will continue to carry out social contribution activities through

our business activities.

09 10


Corporate Governance Internal Control

TOPCON considers that a company should not only be an economic entity pursuing profit through open competi-tion, but also be a public institute valuable for the society.In this light, corporate governance of TOPCON is a system to “maintain healthy management,” “ensure management

transparency” and “improve management efficiency” in an appropriate manner and to fulfill social responsibilities to all stakeholders involved in the business of TOPCON Group.

The organization of TOPCON Group is based on three Internal Companies to provide the business efficiencies by delegation of authority and responsibility to each Internal Company. In addition, we ensure the transparency of the management of the entire group through the high-quality decision making. Last year, we improved the group-wide governance sys-tem and established “Group Governance Rules” which is aligned with the Company-based organization structure. The new Group Governance Rules clearly defined the procedure of decision-making, the approval matters and criteria, and the reporting matters.TOPCON Group is made up of many legal entities world-wide, each of which is operating under laws in its jurisdic-tion. By setting up the unified governance and risk-man-agement policy within the group organization, we pursue

the efficiency and ensure the transparency of the global management, as well as compliance with the require-ments on the corporate governance in each jurisdiction.The Group Governance Rules apply to the entire TOP-CON Group. To ensure compliance, the companies within TOPCON Group have adopted the Group Governance Rules by the resolutions of their respective board of di-rectors. Also the governance trainings are held for imple-mentation in the group companies. During FY2013, the governance team visited more than 20 group companies in North America, Europe and Singapore for the trainings.We continue the training for FY2014, and evaluate the effectiveness of the governance system and improve it if needed, to further enhance the governance of TOPCON Group.

TOPCON has the Board of Directors consisted of six di-rectors (including one outside director). The members of the Board of Directors hold regular meeting once a mouth and extraordinary meeting as necessary.TOPCON also has executive officers who have responsi-bilities for execution of day-to-day businesses. Separating a supervising function of directors and the board of direc-tors and a business execution function of executive offi-cers allows for prompt and appropriate response to rapid

changes in a business environment.TOPCON has adopted the Corporate Auditor System. The Board of Auditors is consisted of four auditors (including two outside auditors) who are responsible for auditing decision-making and execution of duties by directors re-spectively.Outside directors and auditors are in an independent po-sition from the management.

TOPCON established a risk-compliance hot line in 2006 and has strived to identify risks and compliance issues (known or suspected conduct prohibited by laws, regula-tions and company bylaws and that against conventional wisdom) at an early stage and take corrective actions against them.This is a special reporting line which is independent from the regular reporting line. Any risk-compliance related in-formation can be directly reported to the responsible de-partment (Corporate Audit Division) by means of e-mails

or phone calls.In fiscal 2013, the Risk-Compliance hot-line involved no cases of consulting. We are making efforts throughout the year to communicate the system to employees and cre-ate corporate culture and climate where employees feel free to make a notification.In fact, 8 domestic group companies and 14 overseas group companies each have a similar system, making it possible to work together to promote compliance man-agement by expanding the system year by year.

TOPCON and domestic group companies are subject to field internal audit. In addition, 36 group companies in and outside Japan conduct an “internal control self-as-sessment (CSA)” by using a checklist on a continuous ba-sis.In fiscal 2013, we reviewed CSA questionnaires and re-quired respondents to provide evidence to improve ac-curacy of responses from group companies. As a result of such continued efforts, the overall score for establishment of internal control marked 95%, two points up from the last fiscal year.

(23 companies: 95%-99%, 10 companies: 90%-94%, 3 companies: 80%-89%, Average of 36 companies: 95%)From fiscal 2013, we tightened the criteria for requiring improvement to achieve a higher level of internal control. We require group companies which need to be improved to submit an improvement plan and encourage them to speed up the efforts for establishing internal control.In the future as well, monitoring will be continued to build a better environment of internal control for TOPCON Group.

Basic approach on corporate governance

Corporate Governance Structure

Risk-compliance hot line

Group internal audit

◆Topcon’s Corporate Governance Structure<Board of Directors>

The Board of Directors meets once per month (and on other occasions as need-ed) to deliberate issues and receive re-ports about regular agenda items related to management policies, those required under laws and regulations, and articles of incorporation, and other important matters related to the management of the company, practicing and strength-ening the supervisory function over the company.(Corporate auditors may also attend Board of Directors meetings, adding their comments as necessary.)

<Audit Structure>The Board of Corporate Auditors consists of four members (including two outside corporate auditors) who audit the deci-sions and performance of the directors. TOPCON has established Corporate Au-dit Division to serve as the internal audit department under the direction of the President. This Corporate Audit Division is part of a system ensuring legal com-pliance, as well as the appropriateness and efficiency of business performance. TOPCON believes in the importance of a comprehensive and consistent internal audit system through financial/operation-al audits performed by corporate auditors (and the Board of Corporate Auditors), financial statement audits performed by accounting auditors, and internal audits performed by the Corporate Audit Divi-sion. TOPCON maintains a high level of coordination among all parties, ensuring effective communication and work flow.

General Meeting of Stockholders

Operating Divisions and Group Companies

Executive Officers Meeting

(Discuss important matters)

Executive Officers 14(Manage daily activities)

Representative Director

Board of DirectorsDirectors 6(Outside 1) Board of Auditors

Corporate Auditors 4(Outside 2)

Accounting Auditor

Appointment and termination



Internal auditing



Audit

Audit

Report

Report

Report

Report

ReportDirections

Approval for appointment and termination

Agenda placement and report on important matters

Directions

Audit

Corporate Audit Div.(Internal auditing)

※As of March 31,2014

CSR Management Report Topcon will maintain a proactive and responsive attitude by foreseeing any changes and place the utmost priority on compliance under all circumstances, thereby

continually striving to be a trustworthy partner to all stakeholders.

11 12


Compliance Training

Strengthening Global Export Control System

TOPCON WAY defines the following as the common val-ue to be shared within TOPCON Group:

Topcon will maintain a proactive and responsive atti-tude by foreseeing any changes and place the utmost priority on compliance under all circumstances, thereby continually striving to be a trustworthy partner to all stakeholders.

As the global company, TOPCON Group is required to comply with all applicable laws and regulations worldwide, and not to tolerate noncompliant events. To ensure com-pliance, TOPCON Group has the Code of Business Conduct to which each member of TOPCON Group must adhere

in the course of business operation. The Code of Business Conduct provides, in a wide range of issues, the compre-hensive guidance on the standards of conduct for compli-ance with the laws and regulations as well as on the ethical behavior which the society expects from TOPCON Group.During FY2013, the compliance trainings were provided for the members of the group companies in North Amer-ica, Europe and Singapore with respect to the Code of Business Conduct including the detailed policies regard-ing the anti-corruption, fair competition, and prevention of the insider trading which may have the high-risk in the noncompliant events.

TOPCON Group, with its overseas sales ratio of higher than 70%, aims at “strengthening a global export control system.”A fragile export control system may result in events which threaten the basis of existence as a corporation. In the worst case, the company would be prohibited from ex-port for violation against applicable export control laws.

As a leading company, we are highly expected to fulfill responsibilities to “maintain international peace and secu-rity.” To achieve the goal of “strengthening global export con-trol system,” we are committed to implementing the fol-lowing measures:

1. Conducting export control auditsWe conduct annual internal audit on all departments involved in export.Then, measures for improvement which was request-ed during audit are discussed with departments au-dited for one to three months after audit to correct nonconformities at an early stage. The next year’s au-dit conducts follow-up to check if such measures are carried out on a continuous basis. It also checks for missing items and inadvertent errors such as in admin-istration procedures in the entire process.In addition, domestic and overseas group companies are audited according to an annual plan to strengthen global export control system.Since FY2012, we have started field audit of overseas group companies jointly with in-house lawyers of a U.S. group company specialized in U.S. laws. In FY2013, export control staffs from Japan and the U.S. compa-nies conducted audit on group companies located in the Netherlands, the U.S. and the UAE to reinforce the export control system. Since FY2014, the Japan-U.S. joint audit will cover subsidiaries under the control of Positioning Company (POC) in the U.S. in addition to group companies un-d e r d i r e c t c o n t r o l o f T O P C O N t o m a i n -t a i n a n d strengthen g l o b a l e x -port control.

2. Providing export control educationsTo raise employees’ awareness about compliance, we provided 21 training sessions for new employees, mid-career employees and others engaged in export control in FY2013 and 155 employees in total partici-pated in the sessions.We put some thought in training materials to make them easy to understand for employees. Furthermore, we provide mandate training for employees who will be assigned to overseas companies to raise their awareness of their leadership role in administrating export control in a region where they will work in or-der to “enhance a global export control system.”

3. Developing export control specialistsTo improve expertise of employees engaged in export control, TOPCON Group recommends them to take a

“certification exam on export control” held by the Center of Information on Security Trade Control (CIS-TEC). As of the end of March 2014, 64 employees ob-tained the “Certificate.” We are making positive efforts to improve skills of employees throughout the Group.

4. Periodically holding export control promotion meetings

To share information on global trends and situations of export control in TOPCON Group, we periodically hold export control promotion meetings to raise the awareness of employees within the group.

5. Regions requiring special controlTOPCON Group designates six countries including Iran, Iraq, Cuba, Syria, (Northern) Sudan and North Korea which are subject to special regulations under the Foreign Exchange and Foreign Trade Act of Japan and relevant U.S. laws as “regions requiring special control” and applies the most stringent procedures for screening for trade and administration in the TOPCON export control program.We will further strengthen our export control system to achieve the highest quality of the system.

Information Security and Personal Information ProtectionTOPCON’s approach to “Ensuring the information security” and “Personal Information Protection” is as below.

TOPCON Group implements technical measures for information security so that the utilization and protection of informa-tion can be balanced.

1. Security diagnosis by specialistsWe received security diagnosis offered by an informa-tion security firm on information systems which con-nect the domestic group network and the Internet as in previous years. It was revealed that our system is at a suitable security level.

2. Strengthening prevention against access to illicit websites

TOPCON Group performs filtering of illicit websites, but there is an increasing risk of access to websites on which computers may get a virus and phishing web-sites among the public. To address such issues, we introduced additional security functions and enhanced preventive measures against information leakage and fraud on the Internet.

3. Prevention of illegal connection by implementing device authentication

We introduced a preregistration and authentication system of information equipment, such as PCs, which is connected with company networks to block unau-thorized access from unregistered equipment.

4. Enhancement of disaster preparednessIn addition to storage of critical data outside the com-pany as part of disaster preparedness, we have built a website for restoration in a remote location to en-hance business continuity in the event of disasters.

TOPCON will continue to seek to respect and protect each customer’s personal data. TOPCON will implement following Personal Data Protection Policy in its business activities.

Personal Information Protection

Basic PolicyTOPCON strictly observes the applicable laws and regulations with respect to personal data.

When TOPCON obtains personal data from customers, in case without any particular explanation, TOPCON uses personal data with the aim of providing the in format ion of the products and services of TOPCON or of its affiliated company, etc for the customer and also of showing new or useful information.TOPCON may provide and confide data to third parties with a view to analyzing

or processing, feeding back, etc for our customer. The information will be handled appropriately in all these processes in accordance with the business activities and scale of TOPCON.

TOPCON takes rational safety measures against the risk of unauthorized access and disclosure, loss, destruction, and alternation, etc of personal data.

TOPCON has established management system relating to personal data protection and strives to continuously improve.

1

23

4

CSR Management Report Topcon will maintain a proactive and responsive attitude by foreseeing any changes and place the utmost priority on compliance under all circumstances, thereby

continually striving to be a trustworthy partner to all stakeholders.

13 14


Quality Improvement Activities Joint Activities with Procurement Partners

Briefing Session on Management Policy for Suppliers

Acquisition of ISO 9001 Certification

We are conducting quality improvement activities so that our customers can use all TOPCON products with securi-ty. Not only to prevent recurrence of defects, but also to eliminate causes for quality problems, we are engaged in manufacturing from the viewpoints of customers and pro-mote development of reliable products from upstream to downstream of product development processes.In addition to quality training provided for employees, we held an “exhibit of quality innovation” in November, the Quality Month and shared best practices in quality im-provement such as in design quality and user support.This activity was held with participation of the TOPCON management and group companies and helped raise em-ployees’ quality awareness.

TOPCON Group selects suppliers based on comprehen-sive assessment of product quality, pricing, delivery times, level of technology, stability of management and consid-eration of the environment. TOPCON Group has fair busi-ness relationship with the suppliers in accordance with the applicable laws and regulations concerning procure-

ment.We will work with our procurement partners to promote green procurement as well as to address issues concern-ing conflict minerals in consideration of future concerns such as global warming and exhaustion of natural re-sources.

We held a briefing session on management policy on Oc-tober 29, 2013 for the purpose of enhancing partnership with suppliers for co-existence and mutual benefit. With 130 participants from 112 companies (including seven from 3 companies of overseas suppliers and China), we

had explanation on management policy by President and General Managers of Companies and on procurement policy by General Manager of General Procurement Di-vision to deepen understanding of suppliers on manage-ment and procurement policies of TOPCON Group.

TOPCON Group has acquired ISO 9001 certification, an international standard for quality management and main-tained conformity to it. We are promoting improvement in from development to production, sales and after-sales support with slogans of “Customer First” and “Quality First.”

Since 1994 when Surveying Equipment Division acquired the certification, major bases of TOPCON Group have obtained it for 20 years. We will continue to make efforts to offer more reliable products and services as a global company.

Green procurement is a system to source products, com-ponents and raw materials having lower environmental impact from suppliers which promote environmental con-servation activities positively. Concerted efforts through-out a supply chain are crucial to promote environmental conservation with reduction of environmental impact and risk caused by chemicals in products in mind.With this guideline as a springboard, we will further pro-mote conservation activities in cooperation with procure-ment partners.

This guideline includes a section on the limitation of use of conflict minerals*. We decided to cover the provision from a humanitarian perspective and in response to the requests from users although we are not legally obliged to disclose and report such information.

＊：Tin, Tungsten, Tantalum and Gold (3TG) which were obvi-ously produced in conflict areas (Democratic Republic of the Congo and adjoining countries). Companies listed on the U.S. stock market are obliged to report the use of conflict miner-als in their products to the U.S. Securities and Exchange Com-mission.

To comply with EU RoHS Directive and other regulations on specified chemicals, it is essential to control chemical substances used in our products. With the support of suppliers, TOPCON has conducted a survey on chemicals used in the products which we purchase from them and

has made efforts to meet regulations on specified chemi-cals. We will perform supplier management with a focus on control of chemical substances and purchase products which have clear data on chemicals used in them.

Establishment of “Green Procurement Guideline”

Managing Relationship Focusing on the Chemical Substances Control

Certificate of ISO Japanese version

and English version

◆Audit result and year of acquisition

Year of acquisition, conforming standards

(headquarters)

Y1994（Surveying equipment business）： ISO9001：1994editionY1995（Medical equipment business）： ISO9001：1994editionY1998（Industrial equipment business）： ISO9001：1994editionY2000（Total of the entire company）： ISO9001：1994editionY2002（Company-wide）： ISO9001：2000editionY2010（Company-wide）： ISO9001：2008edition

Certification authorities SGS Japan Inc.

Result of audit(past 3 years)

FY2011 FY2012 FY2013Type of audit Renewal Surveillance SurveillanceNonconformities

（Major） 0 0 0

Nonconformities（Minor） 0 0 0

Opportunities for improvement 10 7 9

http://www.topcon.co.jp/en/corporate/quality/（Quality Assurance Activities） http://www.topcon.co.jp/en/procurement/（International Procurement）

CSR Management Report

15 16


Topcon will do its utmost to improve quality in all stages from development and design to manufacturing, sales and service; supply products of the highest quality, and develop our customers’ businesses.

Topcon will build relationships of mutual trust and partnership with sales agents and other business partners, and mutually develop business through information sharing and close cooperation.

http://www.topcon.co.jp/en/corporate/quality/

http://www.topcon.co.jp/en/procurement/

◆Number of Employees Who Applied for Various Job Support Systems (TOPCON Headquarter only) Name of support system Period / Qualification Y2009 Y2010 Y2011 Y2012 Y2013

Childcare Leave Till the end of the month in which a child reaches the age of 2 15 13 6 8 12Short-time Work Till a child finished the 3rd grade at elementary school 12 10 10 10 14Nursing Leave 1 year 1 0 0 0 0Re-Employment System Those who have retired at retirement age 18 14 10 10 9

◆Job AccidentsIn FY2013, TOPCON had two cases of job-related accidents: ● Bumped and broke a leg during work (absent from work), Fell while walking down an aisle (not absent from work)

TOPCON HQFY2013

Average of the Manufacturing Industry More than 100 employee

Average of All Industries

More than 100 employee

Continuous accident free hours

Consecutive hours free of accidents resulting in fatalities or absences of 1 day or longer

Total 670 thousand hours — —

Severity rate

（Absence of 1 day or longer） Percentage of serious accidents 0.05 0.10 0.10

Frequency rate per working hours

Number of dead and injured per million working hours 1.20 0.94 1.58

Frequency rate per 1,000 workers

Number of dead and injured per 1,000 workers per annum 2.48 2.80 2.20

（Note） Sources:The record of continuous accident-free hours, Cumulative hours from the day following the occurrence of a job-related accident (absent from work) to the end of March 2014Severity rate and frequency rate: “Survey on Industrial Accidents 2013,” Ministry of Health, Labour and WelfareFrequency rate per 1,000 workers: Per 1,000 workers by industry. “Workplace safety” website (from 2011 to 2012) http://anzeninfo.mhlw.go.jp/information/h08_24_sen01.html

Labor UnionTOPCON-Related Workers’ CooperativeThe workers’ cooperative was formed for the main purpose of en-couraging the interchange between the labor unionists （and labor unions） working for TOPCON manufacturing companies and im-proving the labor conditions of the entire of related labor unions.Their day-to-day operations aim to maintain the employment con-ditions and to maintain and enhance the life stability and the real standard of living.

Communications Between Labor Union and CompanyLabor-management gatherings ：

Regularly held once a month to share information. The company reports on the business conditions and new topics, and the labor union in turn gives its opinions or suggestions.

Labor-management negotiations：Held regularly once a month or when requested to exchange opin-ions on specific issues or for the labor union to make representa-tions to the company.

Major labor-management negotiation issues in fiscal 2013● Amount of annual bonus● Annual holidays (company calendar)● Review of addition of retirement allowance base● Revision of a performance-based bonus system (index table and

calculation)● Human resources development● Transfer to subsidiaries● Measures to address consumption tax hike

Name : TOPCON Labor UnionRepresentative : Executive Chairman, Akitomo TazawaEstablished : January 29, 1946Form : Independent in-house unionUnion member information :（as of April 1, 2014）

1. Number of union members: 488（401 men and 87 women）2. Average age: 38.4 （Men: 38.5,Women: 38.0）3. Average length of service: 15.4 years

（Men: 15.5 years, Women: 15.1 years）Eligibility : Regular employees at or below the deputy manager levelForm : Union shop

（All employees must join the union for an agreed period.）Superior body : None

Personnel System Working Hours, leave System and Job-related AccidentsIn April 2014, TOPCON renovated a personnel system to a new one which allows for prompt and flexible use of hu-man resources and draws the best out of their abilities. The personnel system defines human resources to be required as Topconian under the concept that “development of hu-

man resources” means “development of business.”TOPCON has established human resources philosophy to make it important in human resources of the company. We will further continue to focus on development of hu-man resources.

◆Human resources to be required

◆Total and overtime working hours of employees （TOPCON Headquarter only）FY2011 FY2012 FY2013

Total working hours（per capita） 1,996hours 2,022hours 2,073hoursOvertime working hours（per capita） 210hours 215hours 276hours

Management Vision

Human resources to be required

Topconian

Human resources philosophyTOPCON will develop and treat Topconian with respect toward attainment

of our management vision.

Topconian is to be: 1. Who has high level of expertise to create profit 2. Who acts on a common value beyond national borders

and cultural differences

3. Who places an importance on teamworkTo this end, we offer employees places to work and opportunities for self-learning and development

equally. We also respect the basic human rights of employees and offer an optimum work environment.

The most important common value among TOPCON Group

TOPCON WAYTo strive for sustainable growth with having spirits of

“Monozukuri”※1 and disseminating innovation to the world.To place compliance at the highest priority and be a trustworthy

company for all stakeholders

Aim to become a true Global Top!Profitable and sustainable growth by creativity

Medium-term management vision

Medium-Term Management Strategy

Enhance new business and strengthen core

business

Who has high level of expertise to create

profit

Launch disruptive strategic products

Who acts on a common value beyond national borders and cultural differences

Utilize global human resources

Who places an importance on

teamwork

ROE20%

Name : Topcon Group Labor Union CouncilRepresentative :

Chairman, Akitomo Tazawa（Executive Chairman of TOPCON Labor Union）Established : March 8, 1981Member of organizations :

TOPCON Labor UnionTOPCON YAMAGATA Labor UnionOPTONEXUS Labor Union● TOPCON YAMAGATA Labor Union （as of April 1, 2014）

Established : 1947Representative : Executive Chairman, Kazuya SuzukiNumber of union members : 204（143 men and 61 women）Average age : 39.4 （Men: 39.7, Women: 38.6）Average length of service : 19.0 years

（Men: 19.0, Women: 18.0）● OPTONEXUS Labor Union （as of April 1, 2014）

Established : October, 2003Representative : Executive Chairman, Manabu SakumaNumber of union members : 166（83 men and 83 women）Average age : 44.1 （Men: 41.2, Women: 46.9）Average length of service : 24.4 years

（Men: 21.6, Women: 27.1）

※1 “Monozukuri ”means manufacturing.

CSR Activity Report Topcon will implement two-way communication with employees, and will respect diverse individualities, values, and the spirit of creation and innovation, and maximize the employees’ skills.

17 18


http://anzeninfo.mhlw.go.jp/information/h08_24_sen01.html

2012

0.0 100.0 200.0 300.0 400.0 500.0

2013 76 102 43 106TOTAL 380

164 133 49

53

35 100TOTAL 481

EUU.S.AASIADomestic group companiesTOPCON HQ

（FY）

（1,000ℓ）

2012

0.0 10,000 20,000 30,000 40,000

2013TOTAL 24,577

6,128 9,954 4,9752,453

1,067

TOTAL 30,2918,504 11,272 7,143

2,448 924


（FY）

（1,000kwh）

2012

0.0 20.0 40.0 60.0 80.0

2013 27.0 11.8 26.60.9 5.0TOTAL 71.3

25.6 11.9 29.61.8 3.1TOTAL 72.0

OthersAcid/AlkalineOrganic solvents1-BPIPA

（ton）

（FY）

（t-CO2）0.0 5,000 10,000 15,000 20,000

2013TOTAL 12,846

2,4254,113 4,066

2012

1,519723

TOTAL 15,6493,373 4,412 5,768

1,523 573


（FY）

（t-CO2）

2012

0 800400 1,200 1,600

2013 212 261 216 781TOTAL 1,536

66

419 461 228TOTAL 1,220 84 28


（FY）

（ton）

◆Fossil fuel consumption（crude oil conversion）◆Energy consumptions

◆Chemicals consumptions

◆CO2 Emissions

◆Waste emissions

INPUT OUTPUTTOPCON Business Activities

Manufacturing

Procurement

Research,development and designingGreenhouse gasCO2 （t-CO2） 2,425

Air contaminantsNOx （kg） 33

Water contaminantsDrainage volume （m3） 14,339BOD （kg） 2,022SS （kg） 1,533

Chemical substancesAmount （kg） 4,730

WasteAmount （tons） 212

Materials＊1

Iron （kg） 0Copper （kg） 0Aluminum （kg） 0

EnergiesElectric （1,000kWh） 6,128Gas （1,000m3） 37Petroleum （kℓ） 18

Water resourcePotable water （m3） 16,024Industrial waste （m3） 7,325

Chemical substances＊2

Amount of use （kg） 6,616

UNGC-related Activities Environmental Impact of the TOPCON GROUP （FY2013）

Environmental Impact Caused by TOPCON HQ （FY2013）

TOPCON GROUP Environmental Vision 2020

The United Nations held a session of the World Economic Forum in Davos, Switzerland in January 1999, when Kofi Annan, the then Secretary General of the United Nations, proposed the concept of the Global Compact （GC）. The GC was formally inaugurated in July 2000.The GC requires the participating corporations or organi-zations around the world to support and implement the globally established 10 Principles in the four areas: human rights, labor, the environment, and anti-corruption.Since joining the GC in October 2007, TOPCON Group has incorporated the spirit of the 10 Principles into the

TOPCON WAY and a variety of policies comprising the core of group management, such as the CSR Basic Policy.We carry out a variety of activities to embody the spirit of GC and to raise employees’ awareness. ■ Hold a seminar on prevention of bribery at group com-

panies as part of compliance training.■ Add items on human rights in an employee handbook.■ Add terms on human rights in an employment contract.

Obtain understanding for human rights from employees by signing an employment contract.

TOPCON Group has processing plants in Japan and Chi-na and assembly plants in the U.S. These plants have im-pact on the environment such as CO2 emissions from the use of electricity and fossil fuel and waste generated in manufacturing processes.In addition, as a characteristic of an optical instrument manufacturer, the plants use large quantity of organic sol-

vent for cleaning purpose in manufacturing and assembly processes. We report environmental impact such as CO2 emissions and the amount of energy use resulting from business activities of TOPCON Group including sales companies which have relatively small impact on the environment:

Disclose the balance between energy and materials caused by our corporate activities.（TOPCON）

To fulfill its social responsibility as a corporate group that offers products to the global market, TOPCON Group has established its position concerning this important envi-

ronmental issue and has declared its group-wide commit-ment to its Environmental Vision 2020:

Preventing global warmingTOPCON Group, which regards global

warming as the most important environmental i ssue, a ims to reduce the amount of CO2 emitted by all of its Japanese sites by 25% before the end of fiscal 2020, as compared with fiscal 1990.Ove r seas s i t e s w i l l endeavo r to reduce the amount of CO2 emiss ions s i te by s i te accordingly.

Contribution by ProductsWe will promote efforts to reduce energy consumption and to

conserve resources to reduce the environmental impact through the product lifecycle much more.We will work with our customers to offer products, technologies, and services that help prevent global warming, that make effective use of natural resources, and that conserve biodiversity. Also, in manufacturing, we will commit to recycling and using effectively the waste material produced from our corporate activities, including development, production and sales.

The Ten Principles● HUMAN RIGHTS

Principle 1 Businesses should support and respect the protection of internationally proclaimed hu-man rights; and

Principle 2 make sure that they are not complicit in hu-man rights abuses.

● LABOURPrinciple 3 Businesses should uphold the freedom of as-

sociation and the effective 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 and occupation.

● ENVIRONMENTPrinciple 7 Businesses are asked to support a precaution-

ary approach to environmental challenges;Principle 8 undertake initiatives to promote greater envi-

ronmental responsibility; andPrinciple 9 encourage the development and diffusion of

environmentally friendly technologies.

● ANTI-CORRUPTIONPrinciple 10 Businesses should

work against corrup-tion in all its forms, including extortion and bribery.

http://www.unglobalcompact.org/index.html （UN Global Compact）

1 2

Note：The calculations involve reviews mainly concerning the scope of data collected and the method of conversion. Example：The amount of CO2 emitted by

TOPCON headquarters and its Japanese sites has been recal-culated and adjusted according to the latest emission factors for individual electric power suppliers.

Regarding the increase or decrease in the en-vironmental impact, which also includes the above data, we will check the details in the group environmental auditing mentioned on page 21 and, if necessary, request the compa-ny concerned to implement improvement.

※ Supplement to the “OUTPUT” section ● Exhaust heat： Discharged to the atmosphere ● Water discharge： Completely treated and then sent to sewage ● Waste material： Delivered to a recycling manufacturer

（Anything that cannot be recycled undergoes thermal recycling.） ➡ The zero emission plan is underway.＊1 ： Using natural resources and raw materials as in-house processed goods＊2 ： Expanding the target of chemical substances to cover all materials; mainly through atmospheric emissions

CSR Activity Report Topcon, as a member of the global and local community, will respect global standards concerning human rights, the environment, labor standards, and anti-corruption

measures, and contribute to building sustainable markets.

20


19


http://www.unglobalcompact.org/index.html

In Response to the Third-Party Opinion

In the course of development of this report, we had dis-cussion with staffs in charge and visited a refurbished showroom. We had a straight talk about the report and appreciated their efforts to do everything they can for the report.One of the conditions of a persuasive report for readers is that “an editorial policy is reflected into Message from President, Features and individual topics.” This report describes specific activities promoted based on “TOP-CON WAY,” the most important value common to all executives and employees beyond national borders and companies, and, in this regard, is a good example of such reports.This report conveys the developments in globalization of the company in a variety of aspects including achieve-ment of substantial increases in both sales and profit under a new slogan of “Creativity & Growth” and contri-bution to the human society through creating new values. In the course of development toward such a “top global company,” efforts appropriate for the progress are need-ed.As measures to meet the need, this report takes up de-velopment of “Topconian,” establishment of “Group Gov-ernance Rules” and enhancement of compliance training. As for development of human resources, it is clearly stat-ed in Message from President that “it is essential for our business development to respect the basic human rights of employees and offer an optimum work environment.”This evokes a fundamental principle of ILO Declaration of Philadelphia stating that “labor is not a commodity.” It is a critical viewpoint in Japan which has increasing cases of death from overwork and mental health problems under exceptional labor practice among developed countries. The company is also expected to make further efforts to protect human rights of employees including non-regular ones and ensure decent work (work under fair and fa-vorable conditions) in the course of globalization. In this report an increase of the total working hours and over-time working hours in Japan is reported, and no mention

is made on the situation of overseas employees. Further enhancement of efforts is expected toward the next year.Establishment of “Group Governance Rules” is also a great advancement. It deserves special note that the com-pany adopted the policies through decision of the board meeting and that conducted face-to-face training on site in addition to documentation of policies. This promises that the policies will become established in individual bases. The company is expected to continue survey and assessment and report the result. Features cover Creating Shared Value (CSV) activities continuing from the previous year. CSV which creates shared value for the company and the society is an essen-tial activity to earn the trust of the society in the current business. In this light, it is necessary to take up the issue in Features. Readers can easily imagine that the company contributes to the development of communities through offering a variety of management resources such as donations of money and equipment and opportunities for developing human resources. But, adding more detailed description would change readers’ “imagination” to “confidence.”In particular, it is needed to include stakeholders’ view-points that describe what changes in actions of recipients have been brought about by such support and what rip-ple effects have been seen in the community, in addition to a viewpoint of the company such as donations. Finally, establishment of a future policy and strategy of corporate report is expected as mentioned in the previ-ous year. GRI 4.0 and Integrated Reporting Framework were published as guidelines last year. It is critical for

“global top companies” not only to comply with interna-tional standards (soft laws) but also to meet such guide-lines. This report is briefly summarized into 22 pages and the simplicity is highly recognized. The company is expected to look for a way of information disclosure to meet the demand of the society and establish its policies and strategies while maintaining the simplicity of the re-port.

Junkan Workers Club:This is a civic group whose main purpose is to (1) discuss from a global point of view, the ideal figure of a circulation-based society, which is to have harmony with the natural ecosystem that should be handed down to our next generations, and (2) research, support, and implement any efforts to form a circulation-based society by lo-cal citizens, businesses, and public administrations.

URL : http://junkanken.com/

Tamio Yamaguchi,RepresentativeSpecified non-profitorganizationJunkan Workers Club

For TOPCON Group which strives to be a global top company with a concept that development of human resources is development of business, it is of the highest priority to develop Topconian, human resources desired for the company.We will contribute to the human society by creating new values and developing business beyond national borders and cultural difference through respecting basic human rights of employees and offering optimum work

environment.We will be committed to further promoting global governance and CSV and meet the expectations of all stakeholders through disclosing information in an appropriate manner.

TOPCON CSR CommitteeChairman Makoto Iwasaki

Efforts for Reducing the Environmental Impact

Topcon Optical (Dongguan) Tech-nology Ltd. in China has made company-wide efforts to reduce energy consumption.I n FY2013 , t he company cu t electric power consumption by 697 ,900 kWh a year th rough promoting energy-saving of air conditioners, introducing a central control system and replacing air conditioners with energy saving ones.The company also held a semi-

nar to raise employees’ awareness about environ-mental protection. It was awarded “Green Award for the Pearl River Delta Environmental Pro-tection” from the Hong Kong Annual Labor Com-mission for such environ-mental and energy-saving act iv i t ies and posit ive efforts in serving commu-nities over the years.

Energy-saving activities in China

Energy-saving Activities in Europe

“ISO 14001” audit in TOPCON Group

Topcon Europe B.V. (“TE”), a group company located in Europe owns many company vehicles. 41% of them are low emission vehicles including four plug-in-hybrid which can be charged with a household outlet.Furthermore, TE has two charging facilities for electric vehicles in its parking lots for cus-tomers and employees as contribution to reducing CO2 emissions.

Five companies (four in Japan and one in China) which have environmental impact from manufacturing processes have acquired ISO 14001 certification and are subject to screening by a certification authority to ensure appropri-ate management.In the screening carried out in fiscal 2013, no companies

received a Category A (major) non-compliance items and all retained their respective certification. They have taken appropriate measures for improvement on Category B items (minor nonconformities) and items with room for improvement (not nonconformities).

Since 2007, TOPCON has conducted a survey on environmental impact targeted at group companies around the world and provided guidance to those which are need for improvement. See page 20 for the result of the survey conducted in FY2013.

We audited the manufacturing companies in the group on the document-basis with a focus on environmental conservation activities (audits on environmental manage-ment and compliance) in addition to the survey on actual

environmental impact as mentioned above. In FY2013, six group companies underwent the survey and were found to have no problems in management.

Fact-Finding Survey

Environmental Auditing of Group Companies

Questionnaire (Japanese)

Questionnaire (English)

Approval Date

Certification organization Latest audit date Type of audit Category “A”

（major）Category “B”

（minor）Room for

improvementGood

practicesTopcon Headquarters Topcon Technohouse 1997. 9.29 JACO 2013/ 8/22～23 Surveillance 0 0 2 7

Topcon Yamagata 2000. 3.20 TUV 2013/ 7/11～12 Surveillance 0 1 1 ―Topcon Optical（Dongguan）Technology Ltd.（China） 2001. 5.17 SGS 2013/ 4/15～16 Surveillance 0 0 2 ―

Optonexus 2001.12.21 JQA 2013/11/ 6～ 8 Renewal 0 0 13 4※ Certification of TOPCON TECHNOHOUSE has been obtained and kept by expansion of the scope of TOPCON HQ’s certification.

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〉〉〉〉〉〉〉Third-Party OpinionCSR Activity Report Topcon, as a member of the global and local community, will respect global

standards concerning human rights, the environment, labor standards, and anti-corruption measures, and contribute to building sustainable markets.

http://junkanken.com/

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