Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental contribution
• Meeting social and client expectations
• Being a company that values its employees
• Communication with society
• Pursuing Fair and Transparent Corporate Activities

Environmental Achievements

• Reduced power consumption by approximately 35.3 million kWh annually through Flow Smart, equivalent to the annual average electricity consumption of 10,000 households and approximately 20,000 tons of CO2.
• Recycled 91.2% of approximately 14,911 tons of industrial waste.
• Reduced CO2 emissions by 11,117 tons through adopted design solutions.
• Introduced hybrid vehicles, reaching 21% of company vehicles.

Social Achievements

• Established client consultation offices throughout Japan to strengthen post-handover support.
• Launched the Dai-Dan Mentor System to support young employees.
• Held the 2nd Dai-Dan Meister recognition ceremony to improve subcontractor skills.
• Decreased the number of workplace accidents compared to the prior year.

Governance Achievements

• Finalized the Business Continuity Plan (BCP) in January 2013.
• Conducted emergency drills.
• Established a whistle-blowing system and consultation system.
• Improved the compliance system for Japanese consolidated subsidiaries.

Climate Goals & Targets

Environmental Challenges

• Workplace accidents attributed to unsafe behavior and human error.
• Long working hours for some employees.
• Maintaining pressure levels in cleanrooms during disturbances.
• Ensuring efficient operation of large-scale heat source systems.

Mitigation Strategies

• Implemented company-wide efforts to prevent workplace accidents (finger pointing and calling, risk identification).
• Provided consultations with medical doctors for long-hour workers.
• Developed the Barrier Smart Series for precise chamber pressure and airflow control.
• Developed Optismart® support system to optimize large-scale heat source system operation.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable procurement initiatives focusing on energy saving, environmentally friendly materials, and durable equipment.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and systems.

Reporting Standards

Frameworks Used: GRI Guideline (G3), Ministry of the Environment ‘Environmental Reporting Guidelines (2012)’, Japanese Standards Association ‘ISO26000:2010’

Certifications: ISO 14001, ISO 9001

Third-party Assurance: Not disclosed

Sustainable Products & Innovation

• Flow Smart
• Optismart®
• Barrier Smart Series
• Open degasifier
• Laminate ducts
• Econo Spot
• I-rack System
• EZ-Scan

Awards & Recognition

• Technology award from the Society of Chemical Engineers (for supercritical CO2 technology)
• Commendation from Chiyoda City, Tokyo
• 32nd Tohoku Architecture Special Prize

Environmental Metrics

ESG Focus Areas

• Environmental conservation
• Quality improvement
• Work-life balance
• Workplace health and safety
• Partnerships with subcontractors
• Social contribution
• Corporate governance

Environmental Achievements

• Reduced energy consumption
• Reduced use of photocopy paper
• Introduced hybrid vehicles
• Promoted sustainable procurement
• Promoted sorting and recycling of industrial waste
• Removed thermal insulation of drainpipes
• Achieved environmental management system plan targets
• CO2 emission reduction through design solutions
• CO2 emission reduction through adopted solutions

Social Achievements

• Conducted mental health seminars
• Conducted stress checks for all employees
• Implemented the activities of the sectional committee
• Raised awareness through new employee training session
• Improved technical expertise through major reviews of training session plans
• Monitored individual circumstances through additional interviews with each mentor
• Held the 8th annual Dai-Dan Meister Award Ceremony
• Held the Case Study Presentations
• Presented activity outcomes via teleconference
• Share information obtained at workshops
• Ensured the Dai-Dan Meister System is implemented
• Delivered 3 lectures at the nationwide meeting of the Institute of Electrical Installation Engineers of Japan
• Delivered 3 lectures at meetings of the Society of Heating, Air-Conditioning and Sanitary Engineers of Japan
• Dai-Dan’s offices across Japan voluntarily conducted 454 activities

Governance Achievements

• Strengthened the compliance system
• Promoted sound corporate management
• Periodically reviewed and revised business continuity plans (BCP)
• Management conducted reasonably and efficiently based on Dai-Dan’s Corporate Governance Guidelines
• Corporate law internal control system functioned appropriately
• Proactively disclosed information at the appropriate time
• Emergency drills of the safety check system were conducted at each office under a hypothetical disaster scenario

Climate Goals & Targets

Environmental Challenges

• Increased number of work-related accidents (42 in FY2018)
• Insufficient human resources
• Aging workforce
• Long working hours
• Need to improve mental health support
• Need to improve work-life balance

Mitigation Strategies

• Targeting elimination of accidents involving falls
• Implementing periodic training in safety and health management
• Building a nationwide network of subcontractors
• Promoting workstyle reform
• Introducing a structured holiday system
• Conducting stress tests and recommending medical attention
• Improving pay scale and benefits for non-regular employees
• Creating a Central Health Promotion Committee

Supply Chain Management

Responsible Procurement

• Sustainable procurement

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 26000, Ministry of the Environment Environmental Reporting Guidelines (2018), GRI Sustainability Reporting Standards

Certifications: ISO 14001, ISO 9000S, ISO 45001, ZEB Leading Owner, ZEB Planner, Class 2 “Eruboshi” certification

Sustainable Products & Innovation

• ZEB technologies
• All-in-one CP Unit
• Air Barrier Booth
• Smart CP Unit
• Air Barrier CPF
• Ceiling Free
• Clima chair
• Barrier Smart Series
• iRack System
• ARAPAC
• Technology for data centers
• Cleanroom system with virtual ducts
• ion-Drop
• Karatto-Ope
• Cushion Dakki

Awards & Recognition

• Various awards from academic societies for Enefice Kyushu
• LEED Platinum ranking for Enefice Kyushu
• Class 2 “Eruboshi” certification

Environmental Metrics

ESG Focus Areas

• Contributing to a carbon-free society
• Responding to changes in the business environment via DX
• Achieving high-quality medical environments
• Promoting innovation and improving productivity through research and better trained human resources
• Designing working environments where people want to work with attention to health and safety
• Building better partnerships with subcontractors and suppliers

Environmental Achievements

• Reduced Scope 1 & 2 greenhouse gas emissions by 40% from FY2013 levels in FY2021.
• Achieved ZEB certification for enefice Shikoku and enefice Hokkaido branch offices.
• Reduced about 50 tonnes of waste through air filter regeneration services since 2014.
• Switched electricity used at 19 sites in Japan to virtually 100% renewable energy sources.

Social Achievements

• Extended retirement age to 65 (with continuous employment until 70).
• Launched the SMILE 2024 Project to reduce out-of-hours work.
• Received recognition as an Outstanding Health & Productivity Management Organization for the third consecutive year.
• Expanded operation support services for cell processing facilities (CPFs).

Governance Achievements

• Established the Sustainability Committee, chaired by the president.
• Announced support for TCFD recommendations.
• Established the International Division to strengthen overseas business.
• Launched the Subcontractor Portal to improve communication and collaboration.

Climate Goals & Targets

Environmental Challenges

• Climate change related risks (transition risks and physical risks)
• Labor shortages in the construction industry
• Long working hours
• Maintaining high quality while managing costs and competition

Mitigation Strategies

• Promoting ZEBs and energy-efficient technologies
• Implementing DX to improve efficiency and reduce workload
• Launching the SMILE 2024 Project to address long working hours
• Strengthening partnerships with subcontractors through the Subcontractor Portal
• Investing in employee training and development

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• CSR procurement agreement forms, green purchasing initiatives

Climate-Related Risks & Opportunities

Physical Risks

• Abnormal weather, rising temperatures, changes in rainfall patterns

Transition Risks

• Carbon taxes, tightening regulations, changes in market demand and investor behavior

Opportunities

• Growth in demand for low-energy buildings, renewable energy technologies, and ZEBs

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards, ISO 26000, Ministry of the Environment Environmental Reporting Guidelines (2018), TCFD

Certifications: ISO 14001, ISO 9001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• REMOVIS, Construction Visualizer 4D™, air filter regeneration technology, ZEB technologies

Awards & Recognition

• SCEJ Award for Outstanding Technological Development (2012), Eruboshi mark with two stars (2018)

Environmental Metrics

ESG Focus Areas

• Contributing to a carbon-free society
• Responding to changes in the business environment via DX
• Achieving high-quality medical environments
• Promoting innovation and improving productivity through research and better trained human resources
• Designing working environments where people want to work with attention to health and safety
• Building better partnerships with subcontractors and suppliers

Environmental Achievements

• Reduced GHG emissions (Scopes 1 & 2) by 54% from FY2013 levels (FY2022: 2,901 t-CO2)
• Reduced GHG emissions (Scope 3) by 54% from FY2013 levels
• Received 16 orders for ZEB-related projects (cumulative total for FY2021-2022)
• Helped reduce about 50 tonnes of waste through air filter regeneration services since 2014

Social Achievements

• Launched SMILE 2024 Project to address long working hours
• Implemented wellness measures at three site offices
• Extended retirement age to 65 (continuous employment until 70)
• Increased the number of men employees taking childcare leave
• Implemented shared use for company-led daycare facilities

Governance Achievements

• Established Sustainability Committee and Climate-related Task Force
• Announced support for TCFD recommendations
• Established Human Rights Due Diligence Task Force
• Implemented measures to prevent reoccurrence of improper conduct

Climate Goals & Targets

Environmental Challenges

• Improper conduct by employees (fraudulent contract amounts)
• Long working hours
• Labor shortages
• Climate-related risks (extreme weather, regulatory changes)
• Supply chain disruptions

Mitigation Strategies

• Implemented measures to prevent reoccurrence of improper conduct (compliance training, work process improvements)
• Launched SMILE 2024 Project to reduce working hours (DX, Support Department)
• Opened offsite facilities for prefabrication and modular processing
• Developed alternative sourcing strategies
• Promoting DX and ZEB technologies

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• CSR procurement agreement forms collected from subcontractors and suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, heavy rain)
• Rising average temperatures

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Growth in demand for low-energy buildings (ZEBs)
• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards, ISO 26000, TCFD

Certifications: ISO 14001, ISO 9001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• ZEB technologies
• REMOVIS™ (remote monitoring and control system)
• All-in-one CP Unit™ (clean room unit)
• Air filter regeneration technology

Awards & Recognition

• Outstanding Health & Productivity Management Organization
• Various awards for enefice buildings

Environmental Metrics

ESG Focus Areas

• Carbon Neutral Contribution
• Sustainable Society Contribution through New Businesses
• Corporate Governance and Compliance Enhancement
• Work-Life Balance and Employee Work Environment
• Human Resource Development and Business Innovation for Productivity Improvement
• Creating a Rewarding Work Environment

Environmental Achievements

• 24.1% reduction in Scope 1+2 greenhouse gas emissions compared to 2019.
• Development and dissemination of ZEB (buildings with zero energy balance) and AI-based technology (power management system).
• Continued efforts in smart energy research with universities and "Daidan's Forest" development.

Social Achievements

• Implementation of SMILE 2024 Project to address long working hours.
• Average 5% wage increase in 2024, including regular salary increases, with plans for continued base-up in 2025 and 2026.
• Increased various allowances and new graduate starting salaries.

Governance Achievements

• Establishment of KPIs for preventing corruption and bribery, thorough compliance education, and reduction of policy-held shares.
• Increased the number of outside directors by one in 2024, resulting in a 50:50 ratio of inside to outside directors.
• Establishment of a Sustainability Committee under the Board of Directors to discuss business strategies and sustainability initiatives, including climate change response.

Climate Goals & Targets

Environmental Challenges

• High cost of new technologies (ZEB and AI-based power management system) hindering widespread adoption.
• Scope 3 emissions (especially Category 11) slightly exceeding 2019 levels, requiring collaboration with stakeholders.
• Long working hours requiring both internal and external solutions.
• Addressing the complexities of economic and social environments and significant changes in management challenges.

Mitigation Strategies

• Continued efforts to promote the adoption of new technologies.
• Strengthening dialogue with cooperating companies and suppliers for further greenhouse gas emission reductions.
• Expansion of on-site support to reduce the burden on the field.
• Requesting clients to comply with work style reform-related laws.
• Reviewing the effectiveness of the board of directors with the inclusion of external evaluations.
• Delegating authority to business executives to focus on important management issues.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• ZEB (buildings with zero energy balance)
• AI-based power management system