Climate Change Data

Kajima Corporation

Climate Impact & Sustainability Data (FY2023 (April 1, 2023 to March 31, 2024 in Japan; January 1, 2023 to December 31, 2023 overseas))

Reporting Period: FY2023 (April 1, 2023 to March 31, 2024 in Japan; January 1, 2023 to December 31, 2023 overseas)

Environmental Metrics

Total Carbon Emissions:41.4 ×104 t-CO2e (Scopes 1 and 2)
Scope 1 Emissions:0.9 ×104 t-CO2e
Scope 2 Emissions:10.1 ×104 t-CO2e
Scope 3 Emissions:1,345 x104 t-CO2e
Renewable Energy Share:Not disclosed
Total Energy Consumption:1,082 GWh
Water Consumption:139.7 ×104 m3
Waste Generated:126.6 ×104 t
Carbon Intensity:13.9 t-CO2e/¥100 million in FY2023

ESG Focus Areas

  • Carbon neutrality
  • Circular economy
  • Nature positivity
  • Human resources
  • Supply chain management
  • Compliance

Environmental Achievements

  • Reduced CO2 emissions attributable to energy-saving design of buildings
  • Reduced CO2 emissions per unit of revenues during construction (though not meeting the target)
  • Commercialized CO2-SUICOM, a CO2-absorbing concrete
  • Achieved a 3.0% final waste disposal rate including sludge
  • Opened The GEAR (Kajima Lab for Global Engineering, Architecture & Real Estate) in Singapore, a facility incorporating various sustainability features and serving as an open innovation hub

Social Achievements

  • Increased percentage of female new graduate hires (28.2% in FY2024)
  • Increased percentage of male employees taking extended parenting leave (92.2% in FY2023)
  • Launched Kajima Partner College to train skilled workers and executives at partner companies
  • Implemented initiatives to restructure the multi-layered subcontracting system
  • Improved employee remuneration and benefits

Governance Achievements

  • Established the Sustainability Committee to oversee ESG initiatives
  • Implemented a stock-based compensation system for officers
  • Introduced a stock incentive plan for employees
  • Enhanced information disclosure and engaged in dialogue with investors

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2050
Short-term Goals:
  • Reduce Scope 1+2 emissions by 23% and Scope 3 emissions by 10% by FY2026 (compared to FY2021)
  • Achieve a 40% usage rate for environmentally friendly concrete by FY2026
  • Achieve a 20% usage rate for steel framework produced by electric furnaces by FY2026
  • Achieve a 100% ZEB achievement rate by FY2030

Environmental Challenges

  • Rising construction costs
  • Shortage of skilled workers
  • Overtime work limits
  • Supply chain disruptions
  • Fluctuations in real estate markets
  • Geopolitical risks
  • Climate change related risks (physical and transition risks)
  • Securing future workforce
  • Maintaining high ROE in construction and real estate development businesses
Mitigation Strategies
  • Early procurement strategies
  • Diversifying suppliers
  • Price adjustment clauses in contracts
  • Implementing automation and robotics in construction
  • Digital transformation initiatives
  • Workstyle reforms
  • Investing in R&D and digital technologies
  • Strengthening risk management frameworks
  • Improving payment terms with clients
  • Supporting partner companies in human resource development
  • Promoting open innovation
  • Strategic investments in start-up companies
  • Careful management of owners’ equity in real estate development

Supply Chain Management

Supplier Audits: Surveys of Kajima Business Partners’ Association member companies (76.8% response rate in 2024)

Responsible Procurement
  • Kajima Group Conduct Guidelines for Business Partners
  • Sustainable procurement of building materials

Climate-Related Risks & Opportunities

Physical Risks
  • Increased frequency and severity of natural disasters
  • Rising temperatures affecting working conditions
Transition Risks
  • Carbon pricing
  • Changes in energy mix
  • Restrictions on business based on CO2 emission allowances
Opportunities
  • Increased demand for renewable energy
  • Expansion of ZEB market
  • Development of disaster prevention and mitigation technologies

Reporting Standards

Frameworks Used: International Integrated Reporting Framework, GRI Standards, Guidance for Collaborative Value Creation by Japan’s Ministry of Economy, Trade and Industry, Environmental Reporting Guidelines by Japan’s Ministry of the Environment, TCFD, TNFD

Certifications: ISO 14001, SBT, Singapore Green Mark Super Low Energy (SLE), WELL Building Standard (Platinum Level), Business Continuity and Disaster Recovery Certification for Construction Companies, Resilience Certification

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • CO2-SUICOM concrete
  • Eco-friendly concrete
  • Automated construction machinery (A4CSEL)

Awards & Recognition

  • TSMC Excellent Performance Award
  • Health & Productivity Management Outstanding Organization (Ministry of Economy, Trade and Industry)