Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• Safety
• Employee Development
• Customer Satisfaction

Social Achievements

• Increased number of employees from approximately 530 to a target of 700-750.
• Opened Chiba Service Center, expanding coverage in the capital region.
• Appointed the company's first female service center manager.

Governance Achievements

• Transitioned from a company with a board of auditors to a company with an audit and supervisory board in FY2016.

Climate Goals & Targets

Environmental Challenges

• Decreased demand due to the impact of consumption tax increase and a slowdown in the housing construction market.
• Shortage of construction workers and rising raw material prices.

Mitigation Strategies

• Strengthened relationships with major house builders.
• Increased efforts to secure orders for renovations and large-scale construction projects.
• Improved construction techniques and active sales activities.
• Planned expansion of service centers to enhance operational capacity.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Opened Saitama Kita Service Center, expanding coverage in the northern Saitama prefecture.
• Concluded a sponsorship agreement with triathlete Kaoru Matsuda.
• Started accepting Indonesian trainees under the foreign skills training system.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Difficulty in securing and retaining construction staff due to a tight labor market.
• Achieving the target of 10 billion yen in scaffolding construction sales is proving challenging.

Mitigation Strategies

• Established a dedicated department focused on recruitment and training.
• Implemented various initiatives to attract and retain employees, including improving working conditions and promoting the attractiveness of the job.
• Actively recruiting foreign workers through the foreign skills training system.

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

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Safety
• Employee Well-being
• Community Relations
• Environmental Sustainability
• Industry Development
• Governance

Environmental Achievements

• Implementation of the "部材ピカピカキャンペーン" to maintain clean scaffolding materials.
• Adoption of the "ビケ足場BX工法 ®" for improved safety and noise reduction.

Social Achievements

• Implementation of a 3-year education program for new employees.
• Establishment of a 6-level scaffolding staff qualification system for skill development and career advancement.
• Initiation of the "ありがとういただきます作戦" to share positive feedback and customer suggestions.
• Introduction of "HAPセキュリティー" (security system) to address crime at construction sites.
• Development of new scaffolding methods that are easier for older workers and women.

Governance Achievements

• Implementation of various programs to improve safety and working conditions, addressing labor shortages and an aging workforce.
• Introduction of "ビケ足場施工" certification, the first in-house certification system in the temporary construction industry to be certified by the Ministry of Health, Labour and Welfare.

Climate Goals & Targets

Environmental Challenges

• Safety concerns in construction sites.
• Labor shortages and an aging workforce in the construction industry.
• Negative 3K (dirty, difficult, dangerous) image of the construction industry.
• Increasing crime at construction sites (theft, trespassing).

Mitigation Strategies

• Development and implementation of safety measures such as the "ビケ足場BX工法 ®" and safety harnesses.
• Implementation of training programs and a qualification system for scaffolding staff.
• Improved working conditions and lighter materials to accommodate older workers and women.
• Introduction of the "HAPセキュリティー" (security system) to enhance site security.
• Initiatives to improve the image of the construction industry (e.g., "新3K" campaign).

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Improved scaffolding materials and methods.

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Launched a CSR website to highlight employee development and company culture.
• Established a new subsidiary in Vietnam to support the expansion of scaffolding business and provide support for returning foreign trainees.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Severe labor shortage in the construction industry.
• Decreased number of construction projects, particularly for rental housing.
• Impact of summer heat on workforce availability.

Mitigation Strategies

• Strengthened sales capabilities for mid-to-large-scale building scaffolding.
• Actively built cooperative relationships with external scaffolding companies.
• Developed and launched a new lightweight and safe scaffolding product ('Le-volt').
• Increased efforts in recruiting construction staff.
• Improved working conditions, including wages and work systems.

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

• Le-volt scaffolding

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Employee Satisfaction (ES)
• Digital Transformation
• Safety
• Sustainable Business Practices
• Social Contribution

Environmental Achievements

• Not disclosed

Social Achievements

• Increased the number of female employees in management positions.
• Implemented a formalized training program (“Academy”) for new construction staff.
• Transitioned contract workers to full-time employees.
• Received recognition as an “Excellent Trainee Implementer” from the Foreigner Skill Training Organization.

Governance Achievements

• Established a new governance structure prioritizing employee satisfaction.
• Adopted “Daisan Style,” a new code of conduct including the “Daisan Fun Heart” principle of acting with consideration for others.

Climate Goals & Targets

Environmental Challenges

• Decreasing number of new housing starts and private construction projects.
• Severe labor shortages in the construction industry.
• Impact of natural disasters and the COVID-19 pandemic.
• High dependence on the housing market and labor-intensive business model.
• Inefficient inter-departmental communication and resource sharing.

Mitigation Strategies

• Expansion into mid-to-large-scale building construction and related products.
• Acquisition of three companies in Singapore to expand into overseas markets.
• Development and sales of new products and services, including IoT devices and digital tools.
• Implementation of a new core system to improve construction management efficiency.
• Development of a new hoisting machine (“Mighty BOX 180”) to improve work efficiency.
• Integration of functions previously managed by two business divisions into a new “Scaffolding Materials Management Department” to improve efficiency.
• Increased use of digital technologies to improve efficiency and reduce staff workload.
• Focus on employee satisfaction to improve quality of service and profitability.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (e.g., earthquakes, typhoons, heavy rain, heavy snow)

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

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Sustainability
• Human Capital

Social Achievements

• CSR activities and investment in human capital are mentioned, but no quantified achievements are provided.

Governance Achievements

• Implemented a system with an Audit & Supervisory Committee, including two independent outside directors. Adopted electronic voting for shareholder meetings.

Climate Goals & Targets

Environmental Challenges

• Low percentage of institutional and foreign investors limiting the adoption of electronic voting platforms and English translations of meeting notices.
• Lack of specific numerical targets for diversity in core personnel to avoid superficial compliance.
• Low percentage of foreign investors limiting the provision of information in English.

Mitigation Strategies

• Reviewing the company website to create English pages.
• Considering expanding English information disclosure for foreign investors.
• Addressing diversity in core personnel by considering gender, nationality, career history, and experience without setting specific numerical targets.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Human Capital
• Digital Transformation
• Supply Chain Sustainability
• Safety
• Governance

Environmental Achievements

• Not disclosed

Social Achievements

• Implemented a 2.3% and 2.5% wage increase in FY2023 and FY2024 respectively; promoted diverse work styles including telework; actively recruited specific skilled foreign workers; introduced open badge system for internal training; participated in Nikkei Shaka Contest to increase awareness of the company's social value.
• Launched SUN Farm agricultural business.

Governance Achievements

• Implemented Daisan Six Value (corporate philosophy and code of conduct); conducted organizational surveys to create a workplace where diverse human resources can thrive; introduced a new personnel system emphasizing autonomy, initiative, and responsibility; fostered a culture of appreciation and empathy through 1-on-1 communication; linked corporate philosophy, code of conduct, and evaluation systems; reviewed job descriptions and grading systems.

Climate Goals & Targets

Environmental Challenges

• Labor shortages in the construction industry
• Need for improved productivity and efficiency
• Need for digital transformation to enhance business operations and revenue
• Need for growth in overseas business
• Need for organizational culture and individual mindset changes to foster a more autonomous workforce
• Need for development and strengthening of middle management
• Material price increases
• Supply chain disruptions

Mitigation Strategies

• Three key strategies: Deepening core business areas, creating new revenue streams, and strengthening management foundation.
• Investment in human capital, including wage increases and training.
• Digital transformation initiatives to improve efficiency and create new products.
• Expansion of overseas business in Singapore and other ASEAN countries.
• Organizational restructuring to foster autonomy and initiative.
• Supply chain reform to improve quality and cost efficiency.
• Active recruitment of specific skilled foreign workers.

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

• Not disclosed