Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Society
• Governance

Environmental Achievements

• Kamigori Town Hall building renovation: Lowered annual CO2 emissions by 44%, reduced electricity costs by ¥2,890,000 (20%)
• Care House Reitaku renovation: Lowered annual CO2 emissions by 44%, reduced electricity costs by ¥2,890,000 (20%)
• Participation in numerous local government and public-sector environmental projects using life cycle total solutions skills.

Social Achievements

• Tokai Branch Office earned Eruboshi (Two Stars) certification under the Female Career Advancement Promotion Act and was designated an Aichi Prefecture Female Empowerment Company.
• Implemented women’s career design project, aiming for at least 20% women in recruitment.
• Launched SmartWORK working style reform program, resulting in an annual reduction of more than 2,500 hours in personnel-related operations.
• Established the Digital Transformation Business Office to improve business processes using IT.

Governance Achievements

• Strengthened corporate governance by making management more transparent, efficient, and sound.
• Implemented a rigorous compliance system with a Compliance Committee chaired by the president and an internal whistle-blowing system (Hibiya Hot Line).
• Increased the number of full-time Audit & Supervisory Board Members from one to two in June 2019 (now four, including three outside members).

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic's impact on economies worldwide, affecting a broad range of activities and causing uncertainties in the construction industry.
• Changes in demand for building construction, delays in project completions, and challenges concerning new orders and profit margins.
• Shrinking major markets (e.g., companies moving offices to suburban locations and downsizing).
• Risk of dependence on NTT Group as a major customer.
• Risk related to business partners' financial conditions.
• Risk involving prices of materials.
• Risk related to unprofitable projects.
• Risk involving safety.
• Risk involving retirement benefit systems.
• Risk involving securities.
• Risk related to recovering deferred tax assets.
• Risk of a serious information leak.
• Risk involving violations of laws and regulations.
• Risk involving natural disasters.
• Seasonal variations in operating performance.

Mitigation Strategies

• Formulated a new management plan incorporating the uncertain outlook.
• Developing business activities, such as providing building life cycle total solutions to receive orders for renovations of private-sector buildings.
• Risk management manual for new orders, including assessing credit risk.
• Checking equipment and material prices before accepting orders and using a purchasing center for centralized purchasing.
• Designating some projects for extra oversight and using a unified system for risk factors.
• Extensive safety and quality patrols, safety classes and seminars for partner companies, and the Hibiya Engineering Haneda Safety Training Center.
• Diversification of customer base.
• Security management system and security framework.
• Strengthening internal audit functions, internal rules awareness, internal reporting system, and compliance education activities.
• Business continuity plan prioritizing people's safety, emergency response equipment, drills, and internal data infrastructure for teleworking.
• Actions to prevent COVID-19 infections (e.g., workplace safety activities, staggered working hours, teleworking, different meeting methods, restrictions on business trips).

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Eruboshi (Two Stars) certification

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Management
• Social Initiatives
• Governance

Environmental Achievements

• Reduced CO2 emissions (Scope 1: 186t-CO2, Scope 2: 650t-CO2 in FY2022)
• Continued proper processing of industrial waste, CFC gas, and asbestos.
• Proposed energy conservation measures to 100% of customers.

Social Achievements

• Increased customer satisfaction score to 84.8 points in FY2022.
• Increased number of proposals for improvement of on-site work activities to 532 in FY2022.
• Implemented various measures related to work-life balance, including childcare and nursing care support.
• Launched a matching gift program for Ukrainian refugees, donating 2.9 million yen.

Governance Achievements

• Established the ESG Promotion Office.
• Established the Nomination and Compensation Advisory Committee.
• Implemented an assessment test of the effectiveness of company-wide internal control, which was effective for FY2022.
• Implemented a new policy of “visits and guidance to cooperating companies” to highlight the importance of safety and quality.

Climate Goals & Targets

Environmental Challenges

• Rising prices of materials and equipment due to supply chain disruptions.
• Reduction in the use of copier paper fell short of the target.

Mitigation Strategies

• Continued to recommend the use of ICT tools to reduce paper usage.
• Implemented cost reduction measures on some large construction projects.

Supply Chain Management

Responsible Procurement

• Conducting face-to-face opinion exchange meetings with cooperating companies.
• Regularly checking the status of measures and presenting commendations to employees and cooperating companies.

Climate-Related Risks & Opportunities

Physical Risks

• Large-scale disasters (heavy rains, typhoons)

Opportunities

• Growing demand for ZEB renovation and environmentally friendly facilities.

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001, ISO 9001, ISO 27001

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 11 (Sustainable cities and communities)

Hibiya Engineering's business activities directly contribute to these goals through energy conservation, sustainable building practices, and the creation of safe and comfortable environments.

Sustainable Products & Innovation

• ZEB Ready buildings
• Environmentally friendly facilities

Environmental Metrics

ESG Focus Areas

• Carbon neutrality
• DX technologies
• Environmental protection
• Stakeholder relationships
• Corporate governance
• Human resources
• Diversity & Inclusion
• Safety
• Compliance

Environmental Achievements

• Expanded business areas through collaboration with alliance partners
• Created projects related to CO2 emissions reduction and energy businesses
• Promoting and accelerating carbon neutrality solutions
• Increased orders for ZEB-oriented renovations

Social Achievements

• Developed multi-talented human resources capable of working with a variety of technologies
• Implemented a range of measures to facilitate women's participation and promote health
• Increased employee satisfaction through a high level of employee engagement
• Encouraging male employees to take childcare leave
• Taking measures to ensure compliance with upper limits on overtime work
• Implementing activities by ensuring that on-site workers and back-office staff members work as one
• Face to Face project: An initiative promoting communication and reducing rework-related risks

Governance Achievements

• Increased transparency of management (establishment of a Nomination and Compensation Advisory Committee, etc.)
• Took steps to enhance the Board of Directors (effectiveness evaluation, training for directors, etc.)
• Ensuring compliance with laws and regulations and establishing corporate ethics
• Strengthening governance by organizing an internal control system
• Strengthen the effectiveness of the Board of Directors and the audit functions of the Group companies
• Ensure the transparency of management through the proactive disclosure of information and dialogue with stakeholders

Climate Goals & Targets

Environmental Challenges

• Fierce competition to secure human resources
• Increasing environmental awareness
• Customers' transformation of their businesses

Mitigation Strategies

• Optimum allocation of management resources
• Strengthening sales system
• Community-based sales
• Data center solutions
• Expanding business into production facilities
• Optimal human resource allocation
• Improving production efficiency
• Cost competitiveness
• Safety & quality improvements
• Promoting carbon neutrality business
• Leveraging innovation lab
• Enhancing human resources management
• Ensuring compliance
• Strengthening risk management
• Contributing to local communities and society

Supply Chain Management

Climate-Related Risks & Opportunities