Climate Change Data

Environmental Metrics

ESG Focus Areas

• SDGs
• Environmental
• Social
• Governance

Environmental Achievements

• Received the Excellence Award in the Living Environment Sector of the 1st Green Infrastructure Award from the Ministry of Land, Infrastructure, Transport and Tourism for the strategic green infrastructure promotion project in Moriya City, Ibaraki Prefecture.

Social Achievements

• Launched a strategic green infrastructure promotion project in Moriya City, Ibaraki Prefecture, incorporating green beer and smart city initiatives.
• Implemented ICT technology-based services, including a monitoring system for bridge substructures, and smart mobility initiatives.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Impact of COVID-19 pandemic on overseas operations, particularly in developing countries, leading to production delays and revenue decrease.
• Decreased revenue in overseas markets due to travel restrictions.
• Increased competition in the construction consulting industry.

Mitigation Strategies

• Strengthening inter-company collaboration and partnerships.
• Focusing on diversification of consulting services, market expansion, and customer diversification.
• Implementing DX (Digital Transformation) and diverse work styles to improve productivity.
• Adjusting projections for overseas business based on the assumption that the impact of COVID-19 will continue until around the end of June 2021, and recover to pre-pandemic levels within two years.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: 有限責任監査法人トーマツ

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• ICT技術を活用した橋梁下部工のモニタリングシステム
• スマートモビリティ事業

Awards & Recognition

• 第１回グリーンインフラ大賞生活環境部門 優秀賞

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance
• SDGs

Environmental Achievements

• Launched environmental surveys in collaboration with other companies (e.g., animal impact survey for bridge light-up extension).

Social Achievements

• Received the first Green Infrastructure Grand Prize (National Land Transportation Minister's Award) for collaboration on strategic green infrastructure in Moriya City, Ibaraki Prefecture.
• Provided technical support for disaster risk reduction in Sri Lanka focusing on soft measures.

Governance Achievements

• Issued SDGs declaration in December 2020.

Climate Goals & Targets

Environmental Challenges

• Impact of COVID-19 pandemic on economic activity and travel restrictions affecting overseas operations.
• Impairment loss on a subsidiary due to low operating rate.

Mitigation Strategies

• Continued to push forward DX (digital transformation) to enhance competitiveness.
• Maintained business speed despite the pandemic.
• Took a conservative approach to accounting for impairment loss.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• First Green Infrastructure Grand Prize (National Land Transportation Minister's Award)

Environmental Metrics

ESG Focus Areas

• Sustainability
• Biodiversity
• DX (Digital Transformation)
• Employee Wellbeing
• Governance

Environmental Achievements

• Initiatives in biodiversity conservation (Kitakyushu's Hibi-nada Biotope)
• Development of environmentally friendly shampoo and treatment using locally sourced hops

Social Achievements

• Strengthening SDGs activities through the Sustainability Promotion Committee
• Development of new products and services related to DX and disaster prevention
• Employee well-being initiatives (implied, not explicitly quantified)

Governance Achievements

• Strengthened corporate governance through the establishment of a Nomination/Compensation Advisory Committee and an Audit Committee
• Implementation of a system to integrate accounting, finance, and general affairs data across the group

Climate Goals & Targets

Environmental Challenges

• High dependence on orders from national and local governments
• Various legal regulations (Company Act, Financial Instruments and Exchange Act, Antimonopoly Act, etc.)
• Potential for contract non-conformity liability
• Information security risks
• Risks from natural disasters
• Impact of infectious disease outbreaks (e.g., COVID-19)
• Securing and developing human resources

Mitigation Strategies

• Strengthening activities to increase private and overseas orders
• Strengthening corporate governance and compliance
• Utilizing ISO 9001 quality assurance standards
• Obtaining the Privacy Mark (17003301) and implementing risk management manuals and information security management regulations
• Developing a Business Continuity Plan (BCP)
• Implementing BCP for COVID-19, including remote work, staggered commuting, and web conferencing
• Strengthening human resource development and retention through training programs and diverse work styles

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters

Sustainable Products & Innovation

• Environmentally friendly shampoo and treatment
• Products utilizing beer lees

Awards & Recognition

• Numerous awards for excellent work and outstanding engineers from the Ministry of Land, Infrastructure, Transport and Tourism's four regional development bureaus
• Excellent Paper Award from Toyo University's Degree Thesis Examination Committee

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Order delays resulting in slightly lower operating rates despite exceeding previous total orders.

Mitigation Strategies

• Planning for increased operating rates in the third and fourth quarters, aiming to recover losses from overseas and biological divisions (previous period's losses).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Infrastructure Maintenance Award (Minister of Land, Infrastructure, Transport and Tourism Award)

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Received the "Kitakyushu City SDGs Future City Award" for its contributions to SDGs.
• Established Infra-Tech Solutions, a new company focused on infrastructure maintenance using AI and other advanced technologies.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Natural disasters (e.g., Noto Peninsula earthquake, Hyuganada earthquake, heavy rains, floods) impacting operations and creating uncertainty.
• Global geopolitical instability and uncertainty.

Mitigation Strategies

• Accelerated efforts towards capital cost and stock price conscious management.
• Focus on ensuring safety and security, and contributing to a healthy and sustainable society.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (earthquakes, floods)

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Kitakyushu City SDGs Future City Award
• 1st T-RANS Award
• Infrastructure Maintenance Grand Prize (Minister of Land, Infrastructure, Transport and Tourism Award)

Environmental Metrics

ESG Focus Areas

• Sustainability

Environmental Achievements

• The group engages in disaster prevention and mitigation measures through its core construction consulting business. In the environmental field, it proposes environmental surveys of plants and animals, water quality surveys, environmental assessments, and environmental conservation measures related to road and river improvements.

Social Achievements

• Fukushima Consultant Co., Ltd. received the “Erushi (Certification Stage 2)” certification from the Ministry of Health, Labour and Welfare in October 2019, and Chikyu System Science Co., Ltd. received the “Erushi (Certification Stage 3)” certification in March 2023. The company is actively promoting activities based on the Act to Promote Women's Participation in the Workplace.

Governance Achievements

• Established a Nomination/Compensation Advisory Committee to ensure transparency and objectivity in the selection of directors and determination of compensation. Implemented a system of performance-based compensation including restricted stock grants.

Climate Goals & Targets

Environmental Challenges

• The report mentions that translating the convocation notice into English and expanding English-language information disclosure are future considerations due to the low percentage of foreign investors (less than 1%).

Mitigation Strategies

• The company plans to address the challenges of English language information disclosure and convocation notice translation in the future.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Received the SDGs Grand Prize (Citizen Division) in the Kitakyushu City SDGs Future City Award for a regional SDGs project using hops.
• Won the Excellence Award and Encouragement Award at the Green Infrastructure Network Japan National Convention for green infrastructure initiatives.
• Participated in a biomass fuel project using cashew nut shells in Cambodia.

Social Achievements

• Employee retention rate (within 3 years of joining) of 96%.
• Salary increase of 3.5% year-on-year, planning for 4% in the next fiscal year.
• Employee stock ownership plan participation rate of 43.1%.
• Technical engineer qualification acquisition rate of 99.5%.

Governance Achievements

• Strengthened IR activities, including increased frequency of investor meetings and enhanced disclosure of information.
• Implemented a multi-faceted personnel evaluation system to enhance engagement.
• Established a new subsidiary participating in the development of a disaster prevention DX service with NEC.

Climate Goals & Targets

Environmental Challenges

• Order delays affecting sales growth.
• Maintaining PBR above 1.0 requires improvement in PER.

Mitigation Strategies

• Focusing on improving productivity and enhancing engagement to increase PER.
• Implementing growth strategies including investments in human capital, intellectual property, and production assets.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Non-destructive inspection technologies
• AI-based monitoring services
• Disaster prevention DX services
• Bio-mass fuel from cashew nut shells

Awards & Recognition

• SDGs Grand Prize (Citizen Division) in the Kitakyushu City SDGs Future City Award
• Excellence Award and Encouragement Award at the Green Infrastructure Network Japan National Convention
• Infrastructure Maintenance Grand Prize (Minister of Land, Infrastructure, Transport and Tourism Award)