Climate Change Data

CTI Engineering Co., Ltd.

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:3,810 tCO2e/year (2023)
Scope 1 Emissions:750 tCO2e/year (2023)
Scope 2 Emissions:3,060 tCO2e/year (2023)

ESG Focus Areas

  • Climate change
  • Diversity & Inclusion
  • Governance
  • Well-being
  • Supply chain sustainability

Environmental Achievements

  • Reduced CO2 emissions from corporate activities by 980 tons (from 4,790 tons in 2021 to 3,810 tons in 2023) by securing non-fossil value at occupied buildings.
  • Developed AI-based predictive control energy management system to optimize costs and reduce CO2 emissions.
  • Jointly developed technology with Yokohama City using AI and aerial photographs to automatically identify and analyze sediment deposition and vegetation overgrowth in rivers.

Social Achievements

  • Introduced a new personnel treatment system with a fully reformed ranking, performance review, and compensation system (April 2023), including an average 6% raise in monthly salary.
  • Improved employee engagement score (up 1.7 points YoY).
  • Increased number of female managers.
  • Lifted percentage of male employees taking parental leave (from 49% in FY2022 to 64% in FY2023).
  • Introduced a New Reemployment System that extends pre-retirement personnel treatment system from mandatory retirement age (60) until age 65 (April 2024).
  • Implemented fundamental engineering training for new employees.
  • Developed a water level monitoring system in collaboration with Kashiwa City, Chiba Prefecture, providing real-time flood information to the public.

Governance Achievements

  • Established a Sustainability Committee (chaired by the Representative Director and President, CEO) with the same status as the Management Meeting.
  • Established a Risk Management Committee to promote appropriate risk management for the Group.
  • Consistently improved corporate governance based on feedback from external directors.

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero greenhouse gas emissions, including in our own supply chain, by 2050.
Medium-term Goals:
  • Achieve net-zero greenhouse gas emissions from business activities by 2030.
  • Increase ratio of women in management positions to 10% or more by 2030.
Short-term Goals:
  • Reduce CO2 emissions from corporate activities to virtually zero by 2030 (Scope 1 and 2).

Environmental Challenges

  • Reducing Scope 3 emissions.
  • Maintaining high service quality while preventing errors.
  • Securing and developing human resources.
  • Addressing risks associated with changes in the external environment (markets, standards, climate change, country risks).
  • Risks originating within the organization (quality and safety, technological strengths, personnel and labor, compliance).
Mitigation Strategies
  • Implementing a variety of measures to reduce CO2 emissions to zero at office buildings and achieve net zero by 2030.
  • Strengthening project management (PM) and using AI to prevent mistakes.
  • Aggressive recruitment activities, promoting diverse work styles, and enhancing education and training programs.
  • Formulating BCPs, gathering information on country risks, and promoting research and development to acquire related technologies.
  • Raising the level of the Quality Management System, thorough safety management training, promoting technological enhancement, and promoting production system reforms.
  • Promoting measures through labor-management cooperation to prevent long working hours, thorough education on respect for human rights and prevention of harassment, and raising employee engagement.
  • Expanding compliance training and education and reinforcing internal audit systems.

Supply Chain Management

Responsible Procurement
  • Compliance with the “Promotion Standards” under the Act on the Promotion of Subcontracting Small and Medium-sized Enterprises.

Climate-Related Risks & Opportunities

Physical Risks
  • Increased business continuity risks due to natural disasters
Transition Risks
  • Bolstered emissions regulations
  • Increased corporate responsibility due to heightened awareness of environmental considerations in society
Opportunities
  • Rising demand for social infrastructure planning and designing to prevent and mitigate disasters
  • Demand for services to transition to decarbonized energy sources

Reporting Standards

Frameworks Used: IIRC

Certifications: ISO 9001, ISO 14001, ISO 27001, ISO 55001

Sustainable Products & Innovation

  • AI-based predictive control energy management system
  • Technology for automatically identifying and analyzing sediment deposition and vegetation overgrowth

Awards & Recognition

  • 2023 Infrastructure DX Awards (Construction and Operations Category), Excellence Award
  • 2023 Intelligence, Informatics and Infrastructure Award for Outstanding Potential Paper
  • 2023 Good Design Award
  • 2023 Civil Engineering Design Prize, Outstanding Achievement
  • 2023 Consulting Engineers Research and Presentation Award, Grand Prize
  • 4th Green Infrastructure Awards, Excellence Award