Climate Change Data

Environmental Metrics

ESG Focus Areas

• Human Resources
• Sustainability
• Corporate Governance
• Environmental Strategy
• Growth Investments

Environmental Achievements

• Set CO2 reduction targets. Non-Consolidated Scope 1 & 2 Emissions -50％ (vs FY 2020)
• Declared support for TCFD
• Expand GX-related construction, including renewable energy
• Create an “environmentally friendly, sustainable, and better society.”

Social Achievements

• Continued recruitment and training to secure a high level of human resources.
• Built an organized on-site support system.
• Renovated offices and facilities for comfort and productivity.
• Invest in human resources from a long-term perspective.
• Co-create value with multi-stakeholders.
• Spread awareness and raise recognition of the Kinden brand.
• Foster job satisfaction and engagement.
• Satisfy customers by providing excellent facilities and services.
• Maintain high technical and engineering capabilities so as to always be there for customers and complete projects.
• Achieve coexistence and co-prosperity through appropriate business relationships, enhanced education, and recruitment support, etc.
• Contribute to building a resilient society, including through electric power infrastructure (stable electric power supply and disaster recovery response).
• Contribute to realizing a carbon-neutral society through energy-saving and renewable energy technologies.

Governance Achievements

• Responded as a company listed on the Prime Market.
• Ensure ROE in excess of cost of equity by monitoring cost of equity as necessary.
• Reduce policy stock holdings. Plan to reduce holdings from 117 issues in FY 2022 to 88 issues in FY2026 (Amount reduced: Approx. 11 billion yen * Estimated at current stock prices.)
• Target payout ratio of around 40% in total during the upcoming period of the current Medium-term Management Plan (FY 2023– 2026)
• Target total return ratio of 50–60% during the upcoming period of the current Medium-term Management Plan (FY 2023– 2026)

Climate Goals & Targets

Environmental Challenges

• Aging of both software and hardware at the Kinden Academy
• Lack of skilled workers
• Compliance with the Revised Labor Standards Act
• Changing business environment (Human capital, Sustainability, Corporate governance, Management conducted in awareness of capital efficiency)

Mitigation Strategies

• Relocate and rebuild the Kinden Academy to increase the number of engineers and technicians, to further develop human resources, and to address issues such as undersized and aging buildings.
• Investment in human resources, business infrastructure, educational infrastructure, and growth areas (totaling 140 billion yen)
• Strengthening our human resources base. Evolve work style reforms. Strengthen human resources.
• Develop and expand infrastructure for construction and engineering.
• Maintain and strengthen a stable power supply system.
• Develop and expand business infrastructure in the Tokyo metropolitan area.
• Expand GX-related construction work.
• Respond to new forms of infrastructure.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD

Sustainable Products & Innovation

• EMS-AI (energy management service)

Environmental Metrics

ESG Focus Areas

• Carbon Neutrality
• Renewable Energy
• Human Resources
• Workstyle
• Corporate Governance

Environmental Achievements

• Set a CO2 emission reduction target of reducing Scope 1 and Scope 2 emissions (parent company only) 50% by the fiscal year ending March 2031 (from the level in the fiscal year ended March 2021).

Social Achievements

• Promoting activities to facilitate the participation of individuals through a range of measures including the improvement of work and workplace environments, the improvement of engagement and motivation, and diversity management.
• Established the Renewable Energy Engineering Center in March 2022 to accelerate renewable energy-related businesses.

Governance Achievements

• Strengthening governance across the Group with a view toward increasing corporate value on a medium- to long-term basis.
• Kinden's Unique Quality Control System (KMS) obtained ISO certification.

Climate Goals & Targets

Environmental Challenges

• Price-based competition for private-sector construction orders.
• Restrained construction investment through national and local government policy.
• Changes in overseas economic conditions and regulatory environment.
• Increased materials costs and outsourcing costs.
• Restrained capital investment by Kansai Electric Power Group.
• Exposure to bad debts due to customer bankruptcies.
• Impact of large-scale natural disasters and the outbreak of infectious diseases.
• Impact of COVID-19.

Mitigation Strategies

• Established a risk management system.
• Strengthened credit control systems.
• Strengthening the foundation of its construction business, including human resources, while simultaneously examining digital transformation (DX).

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Achieved record highs for both net sales and profit
• Aiming for a 50% reduction in Scope 1 & 2 emissions by fiscal 2030 (compared with fiscal 2020) on a non-consolidated basis.

Social Achievements

• Investing ¥140 billion in growth investments centered on human resources, including investment in business infrastructure, educational infrastructure, and growth areas.
• Recruiting over 400 new graduates each year
• Strengthening human resource development (rebuilding Kinden Academy)
• Reducing work hours
• Implementing an organized on-site support system
• Leveraging ICT to enhance work efficiency
• Utilizing engagement surveys

Governance Achievements

• Strengthening governance to increase corporate value over the medium to long term
• Adopted the Audit & Supervisory Board Member system
• Adopted an Executive Officer system

Climate Goals & Targets

Environmental Challenges

• Soaring materials prices and labor costs
• Intense price-based competition for private-sector construction orders
• Restrained construction investment through national and local government policy
• Changes in overseas economic conditions and regulatory environment
• Increased materials costs and outsourcing costs
• Restrained capital investment by Kansai Electric Power Group
• Exposure to bad debts due to customer bankruptcies
• Impact of large-scale natural disasters and the outbreak of infectious diseases
• Leakage of confidential information
• Climate change

Mitigation Strategies

• Established a risk management system
• Strengthened credit control systems
• Building a system and raising employee awareness for assuring information security
• Expressed support for the Task Force on Climate-related Financial Disclosures (TCFD) recommendations

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SDGs, ESG

Sustainable Products & Innovation

• Energy Management Service (EMS) which utilizes AI for optimal control of air conditioning facilities, storage batteries, and EV chargers