Realization of a Sustainable and Environmentally Friendly Society

Realization of a Sustainable and Environmentally Friendly Society

Policies and Basic Approach

The Taisei Group has established the Environmental Policy based on the Group Philosophy “To create a vibrant environment for all members of society” and our Fundamental Policy on Sustainable Development, aiming for the “Realization of a Sustainable and Environmentally Friendly Society.”

Environmental Policy 1. Fundamental Concept (excepted)

Based on the Taisei Group Philosophy “To create a vibrant environment for all members of society” and our Fundamental Policy on Sustainable Development, the Taisei Group strives to build good quality social capital through corporate activities centered on construction business in harmony with nature.
As the Group having construction as its core business, we aim for the “Realization of a Sustainable and Environmentally Friendly Society” by recognizing environmental issues as our significant sustainability tasks and fully understanding the impacts of our business activities on the environment, and environmental impacts on our business activities. It is our mission to achieve our Group’s long-term environmental targets in compliance with environment-related laws and regulations.
In addition, we will identify the “Environment-Related Risks and Opportunities” including climate change in particular, develop and promote environment-related technologies and services, and contribute to the realization of a decarbonized, recycling-oriented, and nature co-existing society through our business activities.

Goals and Targets

Group’s Long-Term Environmental Targets: TAISEI Green Target 2050

To achieve a sustainable and environmentally friendly society, the TAISEI Group has set the TAISEI Green Target 2050 as its long-term environmental target to be achieved by 2050, with the objective of realizing three types of society (a Decarbonized Society, a Recycling-Oriented Society and a Nature Co-Existing Society) and resolving the Two Individual Issues (relating to forest resources and forest environment and water resources and water environment).

Annual environmental targets

Taisei Corporation has set specific annual environmental targets in order to achieve a sustainable and environmentally friendly society.

KPIs

"Realization of a Sustainable and Environmentally Friendly Society" is one of the materiality (key issues to be addressed) for the Taisei Group. This reflected in the TAISEI Group Medium-Term Business Plan (2021-2023), and key performance indicators (KPI) have also been set.

Sustainability Governance and Oversight

Environmental Management

The Taisei Group defines environmental management as corporate activities to realize the Group Philosophy and the Taisei Spirit in terms of the environment. The environmental policy, which is the basic stance of environmental management, is defined as the realization of a sustainable, environmentally friendly society, and we have set specific environmental targets and environmental actions to achieve these targets. We also promote environmental management through the plan-do-check-act (PDCA) cycle of our environmental management system (EMS), which conforms to the ISO 14001 international standard.

Environmental Management

Environmental Management System (EMS)

We operate an environmental management system (EMS) conforming to the international standard ISO 14001 at our head office and all of our domestic and overseas branches (100% certification rate). The top management of EMS is the Sustainability Promotion Committee , the President, and the Chief of the Sustainability Management Promotion Division.
Under top management, EMS secretariats in each division and branch office and environmental officers in each division promote and monitor environmental activities and implement a series of PDCA (Plan-Do-Check-Act) to be reflected in the Environmental Targets for the next fiscal year.

ISO14001 certification Scope:

Head office and all 13 branch offices (certified rate: 100%)
Certification registered in 1998
Certification Name /Certifying Body: ISO14001: 2015/JTCCM RE0014

ISO14001

Sustainability Committee (a Committee within the Board)

The Sustainability Committee has been established to deliberate and promote important policies and measures relating to overall sustainability.

Sustainability Promotion Committee (Operations Committee)

We have established the Sustainability Promotion Committee to deliberate important environmental and social issues and share information related to initiatives for sustainability management as well as to submit recommendations to the Management Committee. The Committee formulates basic policy relating to environmental management, sets important targets (such as medium- and long-term targets, Medium-Term Management Plan targets and annual targets) and checks on the status of achievement of these targets, conducts assessments and provides approvals and instructions relating to the Environmental Management System (EMS), and responds to important outside assessments relating to environmental management.

Several subcommittees have been established for the Sustainability Promotion Committee to enable it to respond to a variety of issues relating to environmental management.

  • -Construction Stage Subcommittee: Reduction of workplace CO2 emissions, promotion of a circular economy, water resource and water environment initiatives
  • -Procurement / Operation Stage Subcommittee: Promotion of decarbonization technology and services and of measures of reduction targets for scope 3
  • -Forest Study Subcommittee: Promotion of forest resource and forest environment initiatives
  • -Regional Cooperation Subcommittee: Promotion of regional cooperation initiatives
  • -CNB Subcommittee: Promotion of carbon neutral business
  • -Group Sustainability Conference: Response to sustainability issues of individual Group companies

In addition, efforts to resolve environmental management issues are also conducted at the Central Safety Committee, the Technical Committee and other business operation committees.

TSA:TAISEI Sustainable Action®, Environmental Impact Reduction Activities Conducted by All Employees of the Taisei Group

The Group is steadfastly committed to the TSA: TAISEI Sustainable Action®. This is an eco-impact reduction endeavor, calling upon the collective participation of all Group members, to realize our environmental ambitions. Beyond the “CO2 zero action” initiative, launched in 2011 as a fundamental commitment at our worksites, we compiled the “TSA action list” in 2018. This list encapsulates specific endeavors, spotlighting technologies and activities potent in minimizing environmental impacts. In 2020, with the introduction of the “TSA point system,” a tool that transparently visualizes and quantifies the efficacy of these endeavors, fostering an evolution in our employees’ perspectives and behaviors.
Moreover, to promote the broader adoption of TSA and facilitate the horizontal deployment of its specific activities, we distribute “TSA Newsletter” to all executives and employees, on a quarterly basis. And we have established a commendation system for our efforts to achieve our environmental goals. We strive to raise employees' environmental awareness by informing them of cases that were highly rated in the commendation system as environmental impact reduction activities that can serve as models for other divisions in the company.

*CO2 Zero Action

An initiative to reduce environmental impact undertaken by all worksites. There are seven actions, including eco-driving of heavy machinery and vehicles, inspection and maintenance, and controlling the temperature setting of air conditioners.

Initiatives

TCFD, SBT, CDP

In February 2019, Taisei Corporation was certified under the Science Based Targets initiative (SBTi). Additionally, in July 2020, TAISEI endorsed the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD), and since 2021 the company has been disclosing information in accordance with these recommendations. Moreover, in response to requests from the CDP, we provided responses relating to climate change, forests and water security.

United Nations Global Compact (UNGC), SDGs

At the same time, it is actively participating in various subcommittees sponsored by the Global Compact Network Japan (GCNJ), such as the Subcommittee on Supply chain and the Subcommittee on Human Rights Due Diligence (HRDD), the Subcommittee on Circular Economy.
Taisei also strives to promote awareness of SDGs within the company and reflect them in medium-term business plans, in order to ensure an awareness of the need to contribute to the achievement of the SDGs in the pursuit of construction activities.

Keidanren (Japan Business Federation) /Nikkenren (Japan Federation of Construction Contractors)

As a member of Keidanren, we respect the content of its Charter of Corporate Behavior and carry out activities toward the “realization of a sustainable society,” which Keidanren aims to achieve. We also participate in the Committee on Environment and Safety, Keidanren Biodiversity Declaration Initiative, the “Challenge Zero” initiative, Global Warming Countermeasure Subcommittee, and Environment Management Subcommittee, which are tackling global warming countermeasures, the formation of a recycling-based society and biodiversity conservation.
We are also on the Nikkenren's taskforce for Voluntary Action Plan on the Environment in Construction Industry, and on its Construction Byproduct Taskforce and Civil Engineering Byproduct Taskforce which contribute to the effective use of resources. In this way, we share information and engage in collaborative initiatives with other companies, thereby contributing to the environmental activities of the construction industry as a whole. In 2014, Nikkenren set construction industry CO2 reduction targets for 2030 and joined Keidanren's Phase II of the Commitment to a Low Carbon Society.
In May 2021, the Voluntary Action Plan on the Environment for the Construction Industry was revised to establish targets that include reducing Scope 1 and 2 emissions at the construction stage to effectively zero by 2050. As a member company, Taisei strives to achieve the targets established by the Japan Federation of Construction Contractors.

Taisei Corporation's Eco-First Commitment

The Eco-First Program is an initiative launched by the Ministry of the Environment that certifies companies with leading environmental practices. Taisei Corporation has been certified as an "Eco First Company" based on the Eco First Commitment made with the Minister of the Environment in May 2012. The commitment has been renewed thereafter and initiatives have been pursued toward its achievement.

Other

Taisei Corporation also participates in the TNFD Forum of the Taskforce on Nature-Related Financial Disclosures, the GX League, the "30 by 30 Alliance for Biodiversity", and other initiatives both domestic and abroad, working with a diverse array of stakeholders.

Activities / Efforts

Disclosure of Information on Environmental Area

Taisei Corporation strives to improve its environmental performance by steadily carrying out activities based on its Environmental Policy, and by actively disclosing information through the Company's Sustainability website, the integrated report, and other means.
We strive to increase the trust of our stakeholders, and deliver value to them and create sustainable business opportunities. For more information on the various initiatives, please refer to the following websites

Environmental Due Diligence activities

Toward the “Realization of a Sustainable and Environmentally Friendly Society,” as outlined in the Environmental Policy, the Taisei Group, in accordance with international guidelines, etc. has established and continuously implements a framework for Environmental Due Diligence to cease, prevent, or mitigate, prevent, and mitigate adverse impacts on the environment caused by the Group’s business activities.

Environmental policy education and training of relevant supplier staff

To raise the environmental awareness of the executives and employees, to make them more attuned to their goals of achieving and deepening carbon neutrality, the circular economy, and Nature Positive in order to realize a sustainable and environmentally friendly society, and to encourage actions, Taisei continues to provide online learning programs on environmental issues to all executives and employees.

The implementation status for FY2022 is as follows:

  • October 2022:Program on “TAISEI Sustainable Action (TSA) to reduce environmental impact” Attendance rate was 96.3%.
    Details of the program: Reaffirmed the background of the activities and the priority implementation items of the TAISEI Sustainable Action (TSA) to reduce environmental impact for all Group executives and employees.
  • March 2023:Program on “Revision of the Environmental Policy and the Group’s Long-Term Environmental Targets” Attendance rate was 95.5%
    Details of the program: Deepened understanding of the responsibilities, contributions through business, activities, etc. for the three types of societies – “Decarbonized Society,” “Recycling-Oriented Society,” and “Nature Co-existing Society” and the two individual issues of “Forest Resources / Forest Environment” and “Water Resources / Water Environment” outlined in the Group’s long-term environmental target: TAISEI Green Target 2050.

Supply Chain (Environment)

Policies and Basic Approach

To the TAISEI Group, specialized construction companies, suppliers and other entities are key business partners in addressing environmental issues, human rights and other social issues. As efforts to resolve environmental issues are needed throughout the entire supply chain, the environmental policy calls for engagement with a wide range of suppliers and efforts to improve and resolve issues through mutual communication. Moreover, to prevent or reduce the impact of the environment-related risks of business activities and improve the company's ability to respond to risks, the environmental policy also stipulates the need to conduct "ongoing environmental due diligence." TAISEI continue to work with subcontractors and suppliers to operate due diligence.

Propagation of our Environmental Policy

The Taisei Group of Companies Sustainable Procurement Guidelines summarize the items to be implemented through the cooperation of our Group and business partners, and we strive to boost sustainability activities throughout our supply chain by promoting awareness of these Guidelines and their permeation to all business partners in order to contribute to resolving social issues, such as those related to the environment and human rights, through our business.
Specifically, when we request estimates for construction-related contracts, these Guidelines are used to raise awareness domestically and internationally as part of the terms and conditions of quotes for all specialized construction companies and suppliers. Furthermore, when concluding contracts, we incorporate the substance of these Guidelines into the contracts so as to request the understanding and cooperation of business partners in resolving environmental and human rights issues.
Although we communicate the Group’s Environmental Policy to our business partners annually through Taisei Health, Safety and Environment Cooperation Association newsletters and other media, upon the occasion of the September 2023 revision of our Sustainable Procurement Guidelines, we once again took the opportunity to communicate our policies on the environment and human rights via email to all relevant business partners, and we request their compliance and cooperation.
Before initiating construction work, Taisei makes sure to obtain written pledges from all specialized construction companies to prevent environmental accidents and conduct activities to protect the environment, and Taisei works with them to achieve long-term environmental targets.

Supplier Assessment to Identify Risks

As part of our risk assessment with regard to environmental issues, the TAISEI Group has been conducting self-assessment survey regulary since FY2016 to confirm the status of sustainability activities of its subcontractors and suppliers including activities relating to sustainable procurement guidelines and their observance. Since FY2022, the survey has been conducted annually.

Moreover, based on the results of the self-assessment, TAISEI visits and audits companies whose status of activities relating to environmental, human rights, labor and other sustainability issues seems to need to be assessed. On these occasions, exchanges of views are held with company owners and best practices are shared in order to improve their activities.

In FY2022, 1,590 companies replied to the survey. Of these, 20 companies to visit and audit, and the status of their activities was assessed through interviews and the like, and exchanges of views were held with company owners and best practices were shared in order to improve environmental measures and so on.

Moreover, for new subcontractors and suppliers, TAISEI works to ensure a thorough understanding of the Group's environmental policy, human rights policy, Sustainable Procurement Guidelines and so on, and self-assessment survey is conducted to confirm the status with regard to environmental issues, human rights and other social issues, health and safety, legal compliance, comprehensive efforts to prevent corruption and so on. In these cases as well, interview surveys and exchanges of views for improvements are conducted as necessary.

TAISEI Group Sustainability Manegement Activities

Environmental data are collected from seven Group companies that participate in the Group Sustainability Management Conference including Taisei Rotec Corporation, Taisei-Yuraku Real Estate Co., Ltd. TAISEI U-LEC Corporation, TAISEI SETSUBI Co., Ltd., TAISEI HOUSING CORPORATION., Ltd., Seiwa Renewal Works and J-FAST Co., Ltd. TAISEI is working with these companies to promote reductions of CO2 emissions and industrial wastes, as well as to reduce energy consumption.

Data

Environmental Data

Sustainability

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