SUSTAINABILITY REPORT 2023
INDEX

1 Hazama Ando’s Sustainability Strategies
4

Materiality 1

Helping to solve social issues and create value
for society
5 Activity Highlights
7 Achieving the satisfaction of society and customers
and earning their trust
11 Working in harmony with the communities we serve
15 Creating safe, comfortable working environments

19

Materiality 2

Protecting and being attuned to
the natural environment
20 Activity Highlights
21 Creating environmental abundance
25 Environmental Factsheet

34

Materiality 3

Promoting sustainable management andtaking full responsibility for corporate actions
35 Conducting fair and honest corporate activities
40 Engaging in dialogue with stakeholders

HAZAMA ANDO CORPORATIONSUSTAINABILITY REPORT 2023

Hazama Ando’s Sustainability Strategies
At Hazama Ando, we are striving to become a corporate group that meets the expectations of society andcreates greater social value. To achieve this, we have established key strategic themes (material issues) fromthe perspective of the environment, society, and governance (ESG).

Priority Core SDGs and Key Performance Indicators (updated July 2023)
Material Issues
Relevant SDGs

Key CSR Themes

Helping to solve social
issues and create value
for society chieving theAsatisfaction of society
and customers andearning their trust
 orking in harmonyWwith the communities
we serve
 afe, comfortableS
working environments

Core
SDGs

Key Performance Indicators

Serious work-related accidents
Frequency rate
Rate of human rights educationand training attendance
Number of female managers(equivalent to manager class)

Metrics

Deadline

Fiscal 2022

0 cases Every year

0 cases0.40 or less

2023

0.64

100%

2025

―

60 persons

2025

29
persons

Eight or more closures infour weeks*1
Civil engineering

100%

99.0%

Building construction

100%

88.6%

Employee engagement score

At least 80%

2025

72%

Productivity improvement*2

Over 10%(compared to fiscal 2020)

2025

4.5%

75/year2025

42

3 or more (over 3 years)

2025

―

CO2 emission reduction rate
(Scope 1 and 2)

At least 34%(compared to fiscal 2017)

2025

24.7%

CO2 emission reduction rate
(Scope 3)

At least 21%(compared to fiscal 2017)

2025

33.5%

5

2024

8

80%

2030

16%

0 cases Every year

0 cases

Patent applications
Regional development projects

Protecting and being
attuned to the naturalenvironment

 reating environmentalC
abundance

Every year

Number of ZEB projects
Proportion of renewable energy
used for electricity
Serious environmental incidents
Recycling of construction site waste

Promoting sustainable
management andtaking full
responsibility forcorporate actions

Civil Engineering:
Reduction of overall mixed waste
volume0.8 ton/construction cost(100 millions of yen)

2024

0.6t

Building Construction:
Reduction of mixed waste intensity
at new construction projects

6.5 kg/total floor space
(m2)

2024

3.09kg onducting fair andChonest corporate
activities

Ratio of female board directors

30% or more Every year

25.0%

 ngaging in dialogueEwith stakeholders

Ratio of external board directors

50% (a majority) Every year

33.3%

Information security course
attendance

100% Every year

100%Compliance training attendance

100% Every year

100%

*1 E
 xcluding sites where eight or more closures are unfeasible (ensure annual closures of at least six closures in four weeks, develop a framework to ensure workers have eightdays off in four weeks).
*2 C alculated based on the productivity index of the Japan Federation of Construction Contractors. Based on construction amount per engineer and skilled worker per 8-hourday (completed construction amount/manpower)

1

HAZAMA ANDO CORPORATIONSUSTAINABILITY REPORT 2023
Hazama Ando’s Sustainability Strategies

Engagement that Addresses Risks and Opportunities
To make steady headway in addressing the material themes the Group has identified, we are working tograsp fully the expectations, concerns, and demands of stakeholders and build a mechanism to reflect
these in our activities, while always being attentive to the risks and opportunities involved. Since the startof 2020, the COVID-19 pandemic significantly impacted our ability take action related to each key theme.
Considering this context, we are implementing a PDCA cycle sensitive to changes in business and livingstyles in a “new normal” or “post-COVID” environment.

Megatrends Affecting Hazama Ando (Social and Environmental Risks and Opportunities)

We live in an era where various values exist and diversity is required.
Risks
Slowing economic growth,
intensifying competitiveenvironments
Rising geopolitical risks
Surge in material andfuel prices
Declining birthrate andaging population, shortagein the labor force
Progress of climate change
Spread of infectious diseases

Opportunities
Sustainability-related

National land resilience

Decarbonization andbiodiversity

Increased startup support andother business co-creation
momentumTechnologicalinnovation-based
productivity
improvement needs
Human capitalmanagement

Society 5.0 realization
New capitalism
Global momentum behind
human rights protection

COVID-19-based
new normal

Demands for more robust sustainable management

2

HAZAMA ANDO CORPORATIONSUSTAINABILITY REPORT 2023
Hazama Ando’s Sustainability Strategies

Stakeholder Engagement
opportunities and pursuing initiatives to reflect the concerns of society in our corporate activities. Key content ofsuch dialogue is shared appropriately with management
through various committees and other venues, and isreflected in our ongoing response to material issues.

Amid ongoing changes in social values, to fulfill the Group’s
responsibilities as a member of society and continue torealize building operations that are of value to customers
and society, Hazama Ando believes that the process of dialogue and collaboration with various stakeholders is essential. Based on this, we are taking advantage of various
Approach, Policy

Customers

Attentive to the needs of customers and the demands
and expectations of society, we will pursue secure, safe,
high-quality “good building operations” based on oursolid technological prowess. Through these operations,
we will strive to bring about customer satisfaction, earn
greater trust from society, and address social issues.

Customer inquiry desk,satisfaction surveys,
business activities

High-quality building
operations, construction that
addresses social issues

By means of timely and appropriate disclosure and twoway dialogue, we will seek the evaluation of shareholders
and investors as appropriate. Their opinions and requests
will also inform our corporate activities, as we strive toenhance corporate value by contributing to theadvancement of society.

Meetings with investors andshareholders, general
meeting of shareholders,
results announcements andbriefings, investor andshareholder information
website (timely disclosure,etc.), site tours

Timely and appropriate
disclosure, disseminating
information in terms of bothrisks and opportunities

Business Partners,
Collaborating
Companies

By engaging in fair business practices and building a supply
chain that is sensitive to human rights, occupational healthand safety, and the environment, we will collaborate inhelping to bring about a sustainable society and createsocial value, aiming to grow along with our partners.

Hazama Ando Cooperative
Association, businessactivities, exhibitions, events

Occupational health andsafety, appropriate
construction management,
fair business practices

Employees

To enable diverse employees to work securely, safely, andin a rewarding way as they reach their full potential, we
will cultivate working environments and various support
systems and endeavor to treat employees fairly andsupport career development.

Employee satisfaction surveys,
regular interviews, labormanagement consultations,employee helpline

Occupational health andsafety, consideration fordiversity, careerdevelopment, fair treatment

Local Communities

Through our business activities and social contribution
activities in various regions, we will contribute to theadvancement of local communities and the cultivation of
future generations, fulfill our duties as a corporate citizen,
and seek to coexist with the communities we serve.

Social and cultural contribution
activities, site tours, hands-on
workshops

Support for local communities,
including harmonious
relationships and cultivationof future generations

Shareholders
and Investors

Major Channels for Dialogue

Major Themes,
Areas of Interest

Stakeholder

Our CSR Policy
Pursuing rigorous CSR management and helping to bring about a sustainable society are the essential missionof a company. Guided by this conviction, Hazama Ando has established a CSR Policy and is implementing
various activities to realize the policy’s aims. Going forward, to further reinforce our efforts involving theSDGs and ESG and carry forward the themes set forth in the Group’s materiality, we will continue to instillin every employee the policy that forms the backbone of our CSR activities. We will also work together acrossthe Group to meet the ever-increasing expectations of society for a truly sustainable corporate strategy.

CSR Policy
Through the practice of secure, safe, high-quality “good building operations” thatdraw on sound technology and passionate commitment, Hazama Ando will contribute to
the advancement of society and our customers and seek to bring about an abundant, bright future.

3

HAZAMA ANDO CORPORATION

1Materiality

SUSTAINABILITY REPORT 2023

Helping to solve social issues andcreate value for society
Overview of Fiscal 2022 Results
To address the material issue of helping to solve social issues and create value forsociety, the Group is implementing PDCA activities based on three key CSR themes andkey performance indicators.
Under the key theme of achieving the satisfaction of society and customers andearning their trust, we continued efforts to develop and apply new technologies andconstruction methods in the fiscal year ended March 2023, while also targeting ongoing
improvements in customer satisfaction by means of productivity, comfort, resilience, andquality control through the digital transformation of construction. The results of ourmeasures, which tie in directly to enhanced customer value, have also been recognizedwith various awards.
Under the key CSR theme of working in harmony with the communities we serve,
we continue to undertake corporate citizenship activities and contribute to regional
revitalization. In particular, various in-person activities gradually resumed during the year
due to the phasing out of COVID-19 restrictions on economic activities and movements.
With regard to the key theme of creating safe, comfortable working environments*,
in addition to ongoing improvements to the safety framework following a large fire
accident in 2018, we continued with actions to respect diversity and promote healthmanagement. Furthermore, to address the goal laid out in the new Medium-Term
Management Plan 2025 of increasing the value of human capital, we will aggressively
expand our investments in this area.
* For the sake of consistency with the Medium-Term Management Plan 2025, we transferred elements other than Pillars Supporting Our Initiatives 3: Respect for Human Rights from Materiality 3: Promoting sustainable management and taking full responsibility for corporate actions.

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HAZAMA ANDO CORPORATIONSUSTAINABILITY REPORT 2023
Materiality 1 Helping to solve social issues and create value for society

Activity
Highlights 1

Cultivating IT and Digital Transformation Personnel

In 2022, we formulated a Digital Transformation Vision 2030,
which consists of three pillars that are guiding our initiatives: (1)New ways of working, (2) Expanding capabilities, and (3) Creating new value. IT and digital transformation personnel who canharness digital technology to solve business issues are indispensable in achieving this vision.
Japan’s Ministry of Economy, Trade and Industry and theInformation-technology Promotion Agency (IPA) alsoannounced in December 2022 that establishing a competitive
advantage requires companies to gauge the ever-changing
issues facing society and their customers and pursue digitaltransformation. Recognizing the shortage of personnel with abackground and expertise in digital transformation, the agen-cies compiled the Digital Skills Standard (DSS) ver. 1.0 to support the cultivation of such personnel.
In this context, in April 2023, we categorized the IT anddigital transformation personnel needed for digital transformation into three areas: (1) operating divisions (2), head office andbranch office technical and management divisions, and (3)head office digital transformation and information systems
divisions. We also classified the skills and educational programs
required for each personnel development category under an IT
and Digital Transformation Personnel Development Plan. Starting in the fiscal year ending March 2024, we will work to honethe skills of our employees guided by the following approach.

1 Ideal IT and Digital Transformation Personnel
 ersonnel who understand the importance and context ofP
digital transformation
Personnel who grasp the awareness, attitude, and actions
needed to create new value
Personnel who can understand and act on our digital transformation vision and strategy
Personnel with basic knowledge of the relationship of IT and digitaltransformation to corporate activities and management strategy

 ersonnel with basic knowledge of data utilization andP
its infrastructure
Personnel capable of logical thinking
Personnel who can identify issues in operations and systems
and propose improvements
Personnel who recognize the importance of information security and can implement security measures

2 Skills Required for Each Personnel Development Category

1 Operating divisions

 kills to grasp the mechanisms of data utilization infrastrucS
ture and build a cycle of data analysis, evaluation, andimprovement actions in collaboration with the head office
digital transformation and information systems divisions.

Skills to master the systems and tools used in operations

2 Head office and branch office technical andmanagement divisions

3 Head office digital transformation and information

 kills to instruct and support the use of systems and tools
S
used in operations
Skills to communicate system development business requirements to systems departments and development vendors

systems divisions

 kills to take initiative in promoting digital transformationS
across the GroupSkills to operate, improve, and innovate existing systems
and infrastructure

3 Educational Programs

Personnel development categories and educational content

Head office and branch office technical and management divisions
1 Definition of business requirements definition and basic

Operating divisions (basic knowledge common across the Group)

1 Understanding our digital transformation vision and the threeknowledge of acceptance testing in system development

steps of the digital transformation strategy
2 Basic knowledge and logical thinking regarding IT, digitaltransformation, and data utilization
3 Approaches to using systems and tools used in daily operations
4 Encouraging acquisition of IT passport qualification

2 Basic knowledge of data utilization and its infrastructure

Head office digital transformation and information systems divisions
1 Knowledge necessary to take initiative in promoting digitaltransformation

2 Knowledge necessary to operate, improve, and innovate

existing systems and infrastructure

4 Monitoring and Ongoing Education under a Centralized Education Management System

We are using a centralized education management system for
IT and digital transformation personnel development. The
system allows us to monitor training status for each employee

and track attendance records, enabling us to offer training
tailored to the ability of each individual and continually hone
the capabilities of employees.

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HAZAMA ANDO CORPORATIONSUSTAINABILITY REPORT 2023
Materiality 1 Helping to solve social issues and create value for society

Activity
Highlights 2

Digitalization of Operations

Our digital transformation efforts involve steps to create workflows for approval documents and various application forms, as well as
digitizing internal documents and invoices from business partners.
1. Digitization of internal documents
encouraging our business partners to switch from sending
Starting in the fiscal year ended March 2023, we have been
paper to electronic invoices. By switching to electronic billing,
moving ahead with the digitization of internal approval andboth Hazama Ando and our business partners can enjoy theapplication documents, seeking to (1) lessen the burden of
benefits of both lower costs associated with buying the invoicesstorage and printing, (2) enhance information retrieval, (3)we specify and with mailing or otherwise sending invoices, andoperate in a more environmentally aware manner by reducing
streamlined billing operations.
the volume of paper used, and (4) enable new ways of working*A dedicated data exchange network for the construction industry.
not bound by location.
Overview of electronic billing system
Advantages of electronic billing system
Currently, staff can digitally enter, submit,
Business partners
Hazama Ando
approve, store, and search more than 500
Business partners
Hazama Andotypes of approval and application documents.
Previous
We will continue to work on the digitalization
Inquiries by phone
Purchase paper forms,of operations in pursuit of greater efficiency.
Non-constructionindustries

Head office,branches

eQ-BILL

Core systems

2. Electronic billing
Since September 2021, we have been using
CI-NET*-compatible ASP services and an eQBILL electronic billing system that we provide,

Activity
Highlights 3

Construction industry

CI-NET(Various ASP services)

Fewer inquiries
Shorter approval times

encouraging active implementation of ICT-based specific healthguidance; and training for managers on using stress checkorganizational analysis. As a result of these efforts, Hazama
Ando was recognized as a 2023 Certified Health & Productivity
Management Outstanding Organization (White 500) under aprogram jointly sponsored by the Ministry of Economy, Tradeand Industry and Nippon Kenko Kaigi. We will continue topursue initiatives so that
employees can continue
to work in good healthwith a sense of fulfillment and well-being.

Cooperation, advice

Health Management
Promotion Personnel
Liaison Meeting

Clarifies promotion policy
Broadcasts messages from top management

Reporting, deliberation

Industrial physician

Industrial health staff

Health Management Promotion Council (Group
Working Environment Improvement Committee)
Deliberates on promotion and policy decisions
Reporting, deliberation

Deliberates on measures,exchange of opinions

Personnel Affairs
Department

Branches
Branch working
environment
improvement
committees

Shares information
Offers measures

Use system to create invoices
No paper form costs or mailing required

Afterroll-out

President

Support,
guidance,
adviceTakes time to fill in andsend paper forms

Health Management Initiatives

Believing that a workforce made up of physically and mentally
fit employees capable of working energetically will lead to thesustainable growth of the Group and enhanced corporate
value, we have put in place a framework for promoting healthmanagement in the Group and are implementing various measures in line with our health management strategy map. These
include extending a health insurance society-sponsored walking event across the Group; setting in-house smoking rules,
holding events to support quitting smoking, and setting up
outpatient clinics for employees wanting to quit smoking; promoting health literacy education using original videos; disseminating health information through an e-mail magazine;

Support,
guidance,
advicefill in by hand, mailWork sites

Collaboration
on measures

Deliberation,
cooperation
Collaborative
healthNational Civil
Engineering andConstruction
National Health
Insurance
Association

Employee union

Develops measures
Broadcasts information

Develops measures, broadcasts
information, gathers feedback

Affiliated companies
Partner companies

Employees, families

6

Employeeassistance program

Gathers feedback
Develops events

SupportAdviceHAZAMA ANDO CORPORATIONSUSTAINABILITY REPORT 2023
Materiality 1 Helping to solve social issues and create value for society

Achieving the satisfaction of society
and customers and earning their trust

Relevant SDGs

By providing society with high-quality buildings backed by superior technology, Hazama Ando isstriving to boost customer satisfaction and earn society’s trust.

Policies and Approach
Approach
Civil engineering and building construction provide Hazama Ando’s points of contact with society. Thus, the first step
toward contributing to the development of society is our commitment to achieve “good building operations” that are
responsive to the needs of customers, offering high quality at a fair cost. We will earn and retain the trust of society atlarge by continuing to support the daily lives of people and the activities of businesses through highly reliablebuildings and structures.

Quality Policy
Promote construction activities using reliable technology, contributing to society and seeking customer satisfaction.
1 Understand customer demands and legal requirements, and see situations from the customer’s perspective.
2 Pursue activities that add greater value at each stage of sales, design, construction, and follow-up support.
3 Develop and implement new technologies to address the further expectations of customers and society.
4 Continuously improve quality management systems and pursue high quality.

Intellectual Property Strategy
Recognizing the utilization and development of intellectual property (IP) that contributes to business to be a key
management issue, the Hazama Ando Group has established the following strategy for promoting the active utilization and development of IP in our businesses.
1 Raise awareness of the importance of invention among all employees, and work together to generate a wealth of IP.
2 Define strategic areas and actively implement IP activities that contribute to business.
3 Build and actively utilize an IP network that ensures competitive superiority.
4 Monitor infringement of owned IP and prevent leakage.

Pillars Supporting Our Initiatives and Promotion Framework

1. Quality Control and Improvement Efforts

automation technologies that contribute to greater productivity; while the Technical Research Institute undertakes R&D
into basic and leading-edge technologies. The various technology management divisions are primarily in charge ofdeveloping technology that supports construction in specificprojects; they implement and guide the use of technology
on site. The Technical Research Institute is concerned withlonger-term issues, advancing R&D into new technologicalareas ranging from basic to cutting-edge technologies.
Furthermore, within the Corporate Strategy Division, we
have established the Innovation Department, which supports strategies related to new businesses and collaborative
efforts that contribute to the diversification of the Group’s
earnings base and promotes measures to achieve thesestrategies, and the DX Strategy Department, which formulates and carries forward Group-wide digital transformation
and IT policies and strategies that contribute to greater
management and operating efficiency and productivity.

Based on our quality management systems, the Group is
engaged in production activities to boost customer satisfaction at each stage of sales, design, construction, and followup support.
Under the leadership of the representative director, weare promoting efforts to maintain and improve quality. We
are also making continuous improvements through management reviews and internal audits, and ensuring that these are
implemented at each branch and construction site.

2. Forward-Looking Development ofTechnology and Construction Methods

We have a two-fold approach to research and technologicaldevelopment: The civil engineering and construction technology management divisions of the Construction Divisionboth develop construction technology directly tied in withconstruction sites as well as an array of labor-saving and7

HAZAMA ANDO CORPORATIONSUSTAINABILITY REPORT 2023
Materiality 1 Helping to solve social issues and create value for society

Pillars Supporting Our Initiatives 1: Quality Control and Improvement Efforts
AI-Based Image Evaluation System Automatically Evaluates 11 Categories of Tunnel Excavation
In a move to significantly increase productivity in tunnel construction, we are developing an integrated mountain tunnelingmanagement system (i-NATM®). A new step forward in thiseffort involved the development of technology using AI-based,
sensing, and other methods to evaluate geological information
on tunnel excavation sites. The AI-based image evaluation
system we developed evaluates a total of 11 categories related
to tunnel excavation using site images captured with mobile
devices. On-site trials confirmed the system’s ability to evaluate geological information with an accuracy on a par with or
surpassing our existing technology. Moreover, there were issues with the existing
Acquired datasystem, including the ability to only evaluExcavation site
image
ate three excavation-related categories,
the fact that evaluation results could only
be checked on a computer, and the factthat it required a vehicle equipped with a
special camera and measuring equipment. By resolving these issues, the new
System configuration

system makes possible more efficient operations.
Going forward, we will roll out the new system in tunnel
construction projects wherever feasible. We will also improve
the AI evaluation model for each rock type using excavation
images taken at sites where it is implemented, with the aim ofachieving more accurate evaluations that will support ourongoing efforts to boost productivity in tunnel construction.

Access point
Photographic
deviceInternet

Evaluation
serverAI

iPhone,iPad, etc.

In-tunnel
Wi-Fi

Example of evaluation and result
output sent mobile to a device.

Various Awards (in order received)

Numerous technologies and projects developed by the Group have been recognized with awards.
Granting organization
Kansai Electric Power Co., Inc.
Ministry of Health, Labor and Welfare
Japan Railway Construction,
Transport and Technology Agency(JRTT)
East Nippon Expressway Co., Ltd.
Tohoku Branch
Chubu Electric Power Co., Ltd.
Ministry of Land, Infrastructure,
Transport and Tourism Kanto Region
Development Bureau
Ministry of Land, Infrastructure,
Transport and Tourism (MLIT)
Ministry of Land, Infrastructure,
Transport and Tourism Hokuriku
Region Development Bureau
Japan Federation of Construction
Contractors (Nikkenren)
Japan Dam Foundation
Ishimoto Architectural & EngineeringFirm, Inc.
Japan Institute of Design Promotion
Japan Institute of Design Promotion
Japan Society of Civil Engineers (JSCE)Award
Fiscal 2021 Safety Award, Renewable Energy
Category, President Award
Minister's Award for Achievement in Safety and
Health Incentive Award (Safety Assurance)
Fiscal 2021 Construction Safety Award, Civil
Engineering Category
Fiscal 2022 Excellence in Construction Awards,
Branch Manager Award
President’s Choice Award
Fiscal 2021 Excellence in Construction, New
Technology Promotion Engineer Award
Fiscal 2022 Excellence in Construction Award
Fiscal 2022 Excellent Company in ICT Use inConstruction
Nikkenren Award 2022
42nd Dam Construction Merit Award(Construction-Related)
45th Technology Incentive Award, Excellence Award

Japan Society of Civil Engineers
Advanced Cogeneration and Energy
Utilization Center

Good Design Award 2022
Good Design Award 2022
Fiscal 2022 JSCE National Convention 77th Annual
Scientific Lectures Excellent Lecture Award
90th (Mountain) Construction Case Presentation
Award of Excellence
Fiscal 2020 East Nippon Expressway Kanto Branch
Letter of Appreciation
Fiscal 2022 Chiba Labor Bureau Director’s Award forSuperior Health and Safety
Fiscal 2022 Japan Construction Machinery
Excellence Award
32nd Tunnel Engineering Research Conference
Excellent Lecture Award
2022 Civil Engineering Design Prize
2022 Cogeneration Awards, Consumer Category,Excellence Award

Consortium for Building Researchand Development
Japan Society of Civil Engineers

Fiscal 2022 (20th) Architecture and Housing
Technology Idea Competition Excellence Award
Continuing International Contribution Award

Japan Tunnelling Association
East Nippon Expressway Co., Ltd.
Kanto Branch
Ministry of Health, Labor and Welfare
Chiba Labor Bureau
Japan Construction Machinery andConstruction Association
Japan Society of Civil Engineers

Technology, projects recognized
Main civil engineering work on Maruyama power station spillway reinforcement work
Osaka Branch Kainan work site (Kainan power plant demolition work and related disposal transactions)
Sotetsu-Tokyu Link Line: Shin-Tsunashima Station, etc.
Hokkaido Shinkansen: Oshima Tunnel (Uenoyu), etc., Shishi Tunnel (Tenjin), etc.
Hokuriku Shinkansen: Asamizu-Kawa bridge, etc.
Tohoku Expressway Takina River Bridge deck replacement work
Nagoya Branch
Okuizumi power station, installation work to prevent spillage during trips
Akaishizawa power station, Hijirisawa embankment avalanche protection facility improvement and other work
Efforts to automatically evaluate geological information at excavation sites using an information acquisition
system (development of excavation geological information acquisition system for tunnel construction)
Superior Construction Award: New construction of residence for new House of Councilors Member Shimizutani
Excellence in Construction Engineer Award: Hiroki Tao, Site Agent and Supervising Engineer
HAZAMA ANDO CORPORATION
3rd Civil Engineering Award: Takao River diversion tunnel project
63rd BCS Award: Kumamoto Castle reconstruction observation path
Masahiko Uemura, Tateno Dam Work Deputy Director, Kyushu Branch
Toyo University International Exchange Residence AI-House HUB-4
Toyo University International Exchange Residence AI-House HUB-4
Shindengen Electric Manufacturing Asaka Office
Daisuke Nakanishi, Osaka Branch Mizumi River tunnel work site
Construction of an extended spillway tunnel with squeezing ground and efforts to improve productivity: Mizumi
River intake tunnel Phase 2 construction—(Daisuke Nakanishi, Osaka Branch Mizumi River tunnel work site)
Tohoku Motors Gokuse No. 1 Bridge (locking pier) seismic reinforcement work
Nakayama Racecourse stand overhaul (Phase 2) construction
ICT-based construction using remote technology in mountain tunnels (joint award with Furukawa Rock Drill Co.,
Ltd. and Mac Co., Ltd.)
Productivity gains by linking advanced blasting technology and fully automatic drilling jumbo (Ryota Tendo,
Engineering Department No. 3, Civil Engineering Technology Management Division)
Kumamoto Castle reconstruction observation path
Wide-area CO2 reduction project using distributed power sources and integrated energy management with aneye toward a hydrogen-based society: Case study of implementation at Hazama Ando Technical ResearchInstitute (Tsukuba, Ibaraki Prefecture)
Establishment of guidelines for technology development and distribution for the reuse of precast concretematerials toward eco-friendly construction (Miho Oshima, ATD (Advanced Technology Development) Office)Kazuyoshi Takashima, Director of Mageshima Temporary Plant No. 3, Kyushu Branch Civil Engineering Department

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HAZAMA ANDO CORPORATIONSUSTAINABILITY REPORT 2023
Materiality 1 Helping to solve social issues and create value for society Pillars Supporting Our Initiatives 2:
Aggressive Development of Technologies and Construction Methods
Joint Development of Equipment for Erecting Long, Heavy Materials Used in Warehouse Partition Walls
In collaboration with Kanamoto Co., Ltd., we have jointly developed equipment for erecting long, heavy building materials(square pipes) used in partition walls in logistics warehouses
and other structures during construction work.
As the number of skilled workers decreases and the population ages in Japan, one challenge is not only to boost productivity but also to reduce dangerous and arduous work. Meanwhile,
growth in the e-commerce market is driving robust demand forthe construction of new logistics warehouses. In building such
warehouses, square steel pipes are sometimes used as the basematerial for walls, having lengths ranging from 6 to 8 meters andweighing anywhere from 60 to over 100 kilograms each. The
work involved in lifting the pipes and moving them to where
they are to be erected is inefficient and also dangerous.
The new equipment enables greater productivity by short-ening the time required forthe task and reducing thenumber of workers needed(two workers can perform atask that previously required
three or four workers). It also
improves safety by reducing
dangerous work. Going forward, we will identify issues
with actual erection workthrough on-site trials, making
ongoing enhancements tothe equipment and jigs andaiming to further boost work
efficiency and safety.

Aiming to Achieve BIM Level 2

Erecting square pipes.

Construction Technology
SafetyIn the fiscal year ended March 2023, the MinCreating new value
istry of Land, Infrastructure, Transport and
Design BIM
Simulation
Tourism's BIM Promotion Roundtable laid
ICT
Planning
Budgetingconstruction
Automated
down a new direction for addressing social
designISO 19650
Facility
issues in its revised roadmap for the future
Blueprints
management
DigitalDigitalRobotics
Construction
Database
CDE*
vision of building information modeling (BIM).
transformation
schedule information
MaintenanceIn light of government guidelines, we areConstruction
BIM
BIM
working toward the more sophisticated use of
RepairBuilding OS Digital twin
Production
BIM, including meeting BIM confirmation
schedule
requests by achieving BIM Level 2 maturity*;
using BIM at the maintenance, management,
Personnel
Sales
Accounting
and operation stages; and further linking,* Common data environment
BIM cycle
Digital transformation cycle
gathering, and utilizing information from thebuilding construction and other fields.
Specifically, we are working toward a complete switch-overfrom a 2D drawing-based workflow to a BIM-based workflow,which is a prerequisite for achieving BIM Level 2 in the design,
construction, and maintenance and management phases. We
are steadily building up outcomes from these efforts.
The next step will involve moving ahead with the following
initiatives, as we aim to achieve BIM Level 2 in 2025.
(1) We will establish an effective information linkage flow
centered on the BIM model in processes ranging fromdesign and construction to maintenance and management, and work toward more efficient BIM operations.
(2) We will realize seamless collaboration not only internally but
also with customers, partner companies, and manufacturers, seeking to create an environment where all stakeholders can jointly design, construct, and maintain buildings.
Source: Ministry of Land, Infrastructure, Transport and Tourism “Vision for the Future(3) To develop a variety of tools for enhancing work effiand Roadmap to BIM (Revised Version)” (March 2023, Japanese only)
ciency and quality, as well as to realize processes thattogether across the Group, harnessing the motivation andfurther eliminate waste, we will work to improve thecreativity of our staff as we strive to refine our technologies andproductivity of the entire building production process,gain knowledge, aiming to become a leading BIM company inincluding through ongoing efforts in our BIM-LEAN
the construction industry.
project, which is modeled on a system for boostingproductivity in the manufacturing sector.
* BIM Level 2
BIM levels were defined in the BIM maturity model published by Mervyn Richards
After achieving BIM Level 2 through these efforts, we will
and Mark Bew in 2008. The model breaks down the level at which BIM develops
set our sights on achieving BIM Level 3 as we build more innointo four stages. BIM Level 2 is said to be the stage where project stakeholders
collaborate to build a model based on mutual agreement.
vative and sustainable construction processes. We will work

9

HAZAMA ANDO CORPORATIONSUSTAINABILITY REPORT 2023
Materiality 1 Helping to solve social issues and create value for society

Verifying Local 5G to Improve Efficiency, Safety of Work Inside Tunnels
In collaboration with MIRAIT ONE Corporation, a leading com-cessing in enclosed spaces.

tive aimed at achieving labor savings and ensuring safety intransformation of tunnel construction by harnessing the latest

quality and accelerated video processing using a newly devel-

shortages. Meanwhile, the technology we are working toWith these trials, our two companies are pursuing the digital

munications construction company, we are pursuing an initia-

ICT to bring about an efficient and highly safe solutions to labortunnel construction. The project involved trials to verify local 5G

develop can be applied to construction in other enclosed spaces.

oped low-latency camera. We conducted the trials in the Shishi
Tunnel (Tenjin) along the Hokkaido Shinkansen and at othersites now under construction for work undertaken for the Hokkaido Shinkansen Construction Bureau of the Japan Railway
Construction, Transport and Technology Agency. The trials
confirmed the feasibility of both systems.

Faced with labor shortages amid a shrinking workforce

brought about by a falling birthrate and aging population in
Japan, the construction industry is pursuing ways of saving

labor and automating construction work. Tunnel work also

requires proceeding with fully unmanned construction using

digital data to boost efficiency and ensure safety. Achieving thisdemands faster communication speeds and faster image pro-

Trial at a tunnel work site.

Development and Use of Carbon Pool Concrete
The Carbon Pool Concrete Consortium is a project, led bynational research and development institution in Japan, andhelp bring about a carbon neutral society. Based on the results

developing technology for producing concrete and cement

are participating in one of its Green Innovation Fund projects,

Hazama Ando, to develop a carbon neutral concrete that canusing CO2. We continue to work toward the social implementa-of various indoor trials, in August 2022, we began manufactur-

ing paving concrete using granulated aggregate that contains ation of this material by 2030.

large proportion of calcium carbonate, which sequesters CO2,

Carbon Pool Concrete Consortium website (Japanese only):https://www.carbon-pool.com/

and used it in a trial, paving a section of the parking lot at avocational school in Tokyo. We will use the trial results regarding
the properties and workability of the concrete to inform future

development, as we seek to enhance the quality of this material.
In August 2023, as a member of the Carbon Pool Concrete

Consortium, we became a sponsor of the Future Society Showcase Project Exhibition—Future Life EXPO: Future City—which
will be held at the Expo 2025 Osaka, Kansai, Japan.

Our goal is to make Carbon Pool concrete a cornerstone ofa carbon neutral society and to convert concrete, a core material used in construction, into a net carbon-negative material.

To this end, we joined a consortium led by the New Energy andIndustrial Technology Development Organization (NEDO), a

Construction trial using Carbon Pool concrete.

Development of Body Balance Safety Shoes That Reduce Fatigue
In collaboration with Kibera Co., Ltd., a Japanese made-to-order shoe brand, we have developed Body Balance Safety
Shoes that aim to help prevent falls and reduce fatigue forstaff and workers working at construction sites. Kibera holds apatent on insoles that correct posture. The Body Balance Safety
Shoes using these insoles have been well received by roughly

70% of our employees, who report that they are less tiring andeasier to work in. Having already gained wide acceptance as

our standard in-house safety shoes, we plan to extend the useof these shoes to all of our partner companies working atconstruction sites.

Body Balance Safety Shoes come in three colors.

10

HAZAMA ANDO CORPORATIONSUSTAINABILITY REPORT 2023
Materiality 1 Helping to solve social issues and create value for society

Working in harmony withthe communities we serve

Relevant SDGs

As a corporate citizen, the Group places high value on our relationships with the various communities weserve through our operations and work proactively to maintain and foster harmony in the community.

Policies and Approach
Approach
Building operation sites are supportable only with daily cooperation between the Group and local residents. We willcontinue to contribute to the various communities that make up the regional societies in which we work, fulfilling ourduties as a corporate citizen. We view as an equally important corporate responsibility our actions, as a Group entrustedwith education and culture, to contribute to the younger generation as they prepare to shape the future. We arepromoting activities in multiple directions to this end. Further, we will undertake development projects to address
various issues facing regional communities in Japan, including declining birthrates, aging populations, and contractionin the regional economy, seeking to offer new solutions that enhance the appeal of regions, including fostering carbon
neutrality and job creation.

Pillars Supporting Our Initiatives

1. Activities that contribute to society

2. Activities that contribute to culture

3. Regional development projects

Pillars Supporting Our Initiatives 1: Activities That Contribute to Society
Site Tours and Other Activities

We hold tours at our various sites for local residents and elementary, junior high, and high school students, to provide a venue for interaction with the community and to gain greater understanding of our business. We also carry out a range of CSR activities at these sites.

Supporting the Art of Possibility Project:
Posting Works by Artists with Disabilities at
Construction Sites

As part of our ESG management, we support the Art of Possibility Project* jointly undertaken by Toppan Printing Co., Ltd., NPO
Support Center DREAM, and the Borderless Art Organization
foundation. Our role is to post art on the temporary walls
enclosing our construction work sites. Seen by countless passers-by, the walls serve as a platform giving broad public exposure to the artwork. As of June 2023, we had exhibited artwork
at 33 sites nationwide—a steady increase from the previous
year. We are also working to better familiarize people with the
Art of Possibility Project by adopting selected artwork for use in
our business card designs and in novelties.
The amount of financial support for artists with disabilities,
including copyright fees, has roughly tripled compared to thefiscal year ended March 2021, making a significant contribution
to the artists’ ability to participate in social activities and gain
economic independence. We will continue this initiative supporting the more widespread recognition of artists with disabilities.

Artwork painted on a construction site wall.

*A n initiative that places value on artwork created by artists with disabilities (“artof possibility”), and aims both to address the social issue of supporting theindependence of persons with disabilities and to pursue economic activities.

Novelty incorporating an artist’s artwork
11

HAZAMA ANDO CORPORATIONSUSTAINABILITY REPORT 2023
Materiality 1 Helping to solve social issues and create value for society ohoku Branch: Site Tour of New Hazama AndoT
Tohoku Branch Building Construction

 yushu Branch: Site Tour of Sasebo Expressway
K
Tenjinyama Tunnel Construction for Parents
and Children

We held a tour of the construction site of the new Ando Hazama
Tohoku Branch Building (tentative name) for students from the
Department of Civil Engineering and Architecture at Tohoku
University's School of Engineering. The branch is currently being
rebuilt in Sendai in Miyagi Prefecture. Approximately 50 students took part. The tour, part of the school’s architectural construction course, included time for both lectures and a site tour.
In addition to teaching about the construction process, lectures included overviews of Hazama Ando and of the project aswell as a discussion of the acquisition of Net-ZEB (100% or moreenergy reduction compared to conventional buildings) and ZEH-M
Oriented certification (20% or more energy reduction) certifications. We then showcased the Carbon Pool concrete technology
the company is currently developing. During the on-site tour,
students got a look at the site where foundation work is currently underway, including pressure-resistant plates made of
low-carbon concrete and underground beam reinforcement.
Students actively asked questions as staff demonstrated pressure
welding of reinforcing bars and ultrasonic detection of flaws.
Our company aims to help the students who will be
responsible for the construction industry in the future to gaina better understanding of the industry while also work toenhance the industry’s image and offer young people further
options for the future.

We held a site tour for elementary school students and theirparents at the Sasebo Expressway Tenjinyama Tunnel section of
the Nishi-Kyushu Expressway, a project for West Nippon Expressway Co., Ltd. in Sasebo in Nagasaki Prefecture. Open to the public,
the tour was organized by the Western Branch of the Japan Society of Civil Engineers. About 30 parents and children took part.
In addition to providing explanations about tunnels andconstruction methods, the lecture offered participants a
deeper understanding of the purpose and progress of theTenjinyama Tunnel construction. During the site tour, employees led visitors through the tunnel now being built, giving
them a feel for the atmosphere of the site. The children werealso riveted by massive construction machinery that theywould normally not be able to see.
The tour was a memorable part of the summer break for theelementary school students and their families, and offered children
the opportunity to gain an interest in the construction industry.

Site tour.

Site tour.

Technical Research Institute PR activities

To foster awareness of our technology going forward, we willcontinue to actively interact with people in Japan and overseas.

The Technical Research Institute, which opened in 1992 in
Tsukuba, Ibaraki Prefecture, has been carrying out R&D for
more than a quarter of a century. Since its opening, the Institute has served as a venue for publicizing the activities not onlyof Hazama Ando but also of the construction industry as awhole, as we have invited a host of visitors to discuss how theinfrastructure of people’s lives is created.
Although visits have been suspended since 2020 over
COVID-19 concerns, in a typical year, we hold a tour of theInstitute during Science and Technology Week that is open to
the general public, sponsored by the Ministry of Education,
Culture, Sports, Science and Technology. There is also a scienceand technology promotion program for elementary and middle
school students, called “Tsukuba Little Professors.” We are currently considering resuming tours for the general public, taking
into account measures to ensure the safety of construction
work at the Institute and to prevent infection.
Meanwhile, at the request of the Japan International Cooperation Agency (JICA), we held a tour for trainees coming fromorganizations involved in the seismic resilience of buildings andinfrastructure in the Dominican Republic. They were keenlyinterested in particular in the seismic technology we incorporate into construction.

Technical trainees visiting fromthe Dominican Republic.

12

HAZAMA ANDO CORPORATIONSUSTAINABILITY REPORT 2023
Materiality 1 Helping to solve social issues and create value for society

Pillars Supporting Our Initiatives 2: Activities that Contribute to Culture
Preserving, Repairing, and Restoring Cultural Properties and Historic Buildings
For many years, the Group has engaged in preserving, repair-ing, and restoring cultural properties and historic buildings. We
have been involved in many such projects in recent years, aswell as in the seismic retrofitting of buildings constructed since
the Meiji era that are considered modern heritage sites. One

project completed in the previous fiscal year was seismic retro-

fitting and repair work on the former Moji Mitsui Club, an important cultural property, undertaken for the city of Kitakyushu inFukuoka Prefecture.

In the field of castle wall construction, we have received

high marks for the technology we use in the seismic retrofitting
castle towers that are cultural properties, in the restoration ofwooden structures using traditional construction techniques,

and in preservation and repair work on traditional stone walls.

Former Moji Mitsui Club.

We are also actively developing technologies that fuseadvanced and traditional techniques. We will continue to capitalize on the technologies we have accumulated—such as the

3D modeling of Ozu Castle and approaches to identifying andexamining the deterioration of traditional building materials—

as we contribute to society by undertaking conservation, repair,and restoration projects for cultural properties, historical buildings, and civil engineering structures.

Supporting Dedication of Outdoor Firelight Noh Performances at Meiji Jingu Shrine
Hazama Ando co-sponsors the dedication of outdoor firelight
Noh performances held at Meiji Jingu Shrine in Tokyo every

autumn. 2022 marked the 41st time the performance has been
held since the first such performance was attended by Prince
Hironomiya (the current Emperor) in 1982.

The Group’s involvement in the Noh performances began in

1980, when we received an order for the construction of the
National Noh Theater in Tokyo’s Shibuya Ward. The outdoor

performance by firelight was started in the hope of helping topass on traditional Japanese performing arts and spark interestin the study of Noh theater. Every year, desiring a wide range of
people to enjoy Noh by firelight, we invite about 2,000 people
to attend without charge, including people from the generalpublic chosen by lottery. The performances have been well

The 41st dedicated firelight Noh performance held at Meiji Jingu Shrine,
entitled “Kamo” (Photograph: Fuminori Mikami)

received, not only by spectators but also by the Noh andKyogen (short comic play) performers themselves.

The 41st dedicated firelight Noh performance was held at

Meiji Jingu Shrine in October 2022. Because our top priority

was on preventing COVID-19 infection and on the health andsafety of visitors, however, the dedicated performance wascarried out this year without spectators.

13

HAZAMA ANDO CORPORATIONSUSTAINABILITY REPORT 2023
Materiality 1 Helping to solve social issues and create value for society

Pillars Supporting Our Initiatives 3: Regional Development Projects
Regional Comprehensive Partnership Agreement with Buzen City and erex Co., Ltd.
In April 2022, we entered into a regional comprehensive part-nership agreement with the city of Buzen in Fukuoka Prefectureand electric power company erex Co., Ltd. for the purpose ofhelping to bring about sustainable urban development.

The agreement aims to promote carbon neutrality in theregion by capitalizing on the renewable energy-related tech-

nologies and expertise possessed by Hazama Ando and erex, as

well as contribute to regional revitalization through sustainableurban development and spur economic circulation drawing on
local resources in Buzen. The three parties will work together

closely, engaging in frequent dialogue as well spell out specificdetails of the partnership.

Scope of cooperation in the agreement

Signing ceremony.
(center: Mayor of Buzen Motohide Goto, left: Kyushu Branch Manager (at thetime) Hisakazu Gosho, right: erex Director Yasushi Saito)

Matters related to:
1. The realization of a carbon neutral society
2. E nvironmental conservation anddisaster prevention measures
3. R egional economic development, including
promoting industry
4. Promoting tourism
5. P romoting internationalization andinternational exchanges
6. Improving health, medical care, and welfare, andpromoting education and culture
7. O ther facets of regional revitalization andimprovements to citizen services

14

HAZAMA ANDO CORPORATIONSUSTAINABILITY REPORT 2023
Materiality 1 Helping to solve social issues and create value for society

Creating safe,
comfortable working environments

Relevant SDGs

Our top priority is on ensuring the health and safety of our employees. In addition to complying withall relevant laws and regulations, we strive to cultivate working environments that ensure the safety
and health of our employees as well as maintain their comfort.

Policies and Approach
Health and Safety Policy and Promotion Measures

Approach to Personnel

The Group’s health and safety policy of “putting safety
above all” values every human life. Based on this policy,
we are taking ongoing actions to ensure that all of ourpeople, including employees and workers on site,
understand the significance of this policy and work
together to build an accident-free Hazama Ando.

Grounded in the Corporate Philosophy, the guiding
concept behind our HR systems is a personnel-centeredcycle extending from work to training, evaluation, andreward. Through this cycle, we aim to foster employee
fulfillment and motivation, boost performance, andbring about a sense of well-being for employees.

Health and Safety Policy
Putting safety above all

Corporate Philosophy

Health and Safety Slogan
Point-out and call-out safety confirmation
Follow the rules and work safely“Check”

Business strategies
Work

Health and Safety Promotion Measures in Fiscal 2022
1  Better safety management through an occupational healthand safety management system
2  Rigorous safety education
3  Prevention of public disasters
4  Addressing frequently occurring accidents
5  Thorough health management
6  Greater cooperation with the Hazama Ando Cooperative
Association
7  Measures in the event of disaster

Training

Personnel

RewardEvaluation
Boost performance
Bring about a sense of well-being for employees

Guidelines for Personnel Development

Our Expectations for Personnel

Foster an organizational culture where diverse personnel
can actively demonstrate their full potential and take onchallenges for the benefit of society.

Mutual Development: Value the people you work withand grow together with them.

Challenge: Meet adversity with ambition and accomplish
your goals.

Provide opportunities and support for employees toapproach the ideal they envision for themselves

Creativity: Think for yourself and create new value.

Continuously, systematically cultivate personnel from along-term perspective

Pillars Supporting Our Initiatives and Promotion Framework

1. Occupational health and safety

2. Utilization and training of personnel

The Group has built a framework to ensure that our healthand safety policies are carried out. Under the supervision of
the Safety, Quality and Environment Division and the Construction Division, we have formulated 10 Safety Steps to
Avoid Repetitive Accidents as well as Hazama Ando Safety
Rules, for all employees to observe. In line with these guidelines, we are working to make health and safety a part ofthe daily routine at all branches and work sites, as well as
pursuing educational activities and other measures to further instill a safety culture.

Under the Personnel Development Policy we revised in April
2023, we are aiming to instill the values of mutual development, challenge, and creativity throughout the Group sothat Hazama Ando and its employees can grow together.
While the Career Development Department and the departments in charge of education in each division take the leadin developing an array of educational programs for employees, we view personnel development as an issue involving
all employees and are working to foster a culture of where
people can grow.

15

HAZAMA ANDO CORPORATIONSUSTAINABILITY REPORT 2023
Materiality 1 Helping to solve social issues and create value for society

Pillars Supporting Our Initiatives 1: Occupational Health and Safety
Efforts to Eliminate Repetitive Accidents

In the construction industry, many work-related accidents are

ing the President’s safety message during National Safety

past accidents and established 10 Safety Steps to Avoid

Repetitive Accidents, and measures to prevent heatstroke andWeek, Hazama Ando safety rules, the 10 Safety Steps to Avoid

repetitive in nature. The Group has compiled case studies oftraffic accidents.

Repetitive Accidents, which we update every year. We are

implementing these measures in construction projects both inJapan and overseas.

At our construction sites, we have installed digital signage

and large displays at daily morning safety assemblies, worker
rest areas, and conference rooms.

We are stepping up efforts to create videos and slides tomake a range of safety content more visually appealing, includ10 Safety Steps to Avoid Repetitive Accidents

1. Prevention of accidents due to falls
2. Prevention of accidents involving floor and wall openings
3. Prevention of accidents due to dropping of suspended loads or
toppling during lifting
4. Prevention of accidents caused by contact with heavy machinery
5. Prevention of accidents due to fire use
6. Prevention of accidents through appropriate worker assignments
based on sound health management
7. P revention of accidents due to handling of high-pressure, highoutput equipment or general equipment
8. P revention of third-party or public disasters
9. Prevention of accidents due to slope collapse or shaft wall collapse
10. Prevention of accidents involving scaffolding platforms

Sign at morning safety assembly.

Video signage (ten categories).

Measures to Prevent Recurrence of Fire Accidents
Following a large fire accident which resulted in numerous casual-Moreover, to ensure that no officer or employee ever for-ties at a construction site in Tama, western Tokyo, in July 2018, wegets the fire accident that occurred and to inculcate a strong

and safety policy, “putting safety above all”—in other words, ourpass on the vivid memory of the accident, we have produced

resolve to never cause another accident or fire, as well as torenewed our commitment to the principle of the Group’s healthtraining videos and continue to ensure that all officers andconviction that safety that protects human life and health must

employees watch them.

take precedence over processes, costs, or any other consideration.

We will take measures to prevent recurrence and thor-

To thoroughly instill this commitment afresh throughout theGroup, we have directed all officers and employees to ensure

oughly implement safety rules. We will also pursue ongoingmeasures to prevent recurrence at each work site include chang-Act) cycle for occupational health and safety management, andimprovements, steadily implementing a PDCA (Plan, Do, Check,that recurrence prevention measures are implemented. Specificworking with partner companies to further raise occupational

ing to construction methods that eliminate the risk of fire andhealth and safety standards, taking action to eliminate all acci-

do not use open flames and in principle prohibiting the use ofdents, not only fires.

open flames near combustible materials in principle.

Pillars Supporting Our Initiatives 2: Utilization and Development of Personnel
Hazama Ando’s Personnel Development: Employees and the Group Growing Together

opportunity to reflect on their own experiences and reconsider

In addition to core on-the-job training in the workplace, weways in which they can contribute to the organization.

also offer a broad menu of off-the-job training programs to

Also during the year, we worked to round out our educa-

cultivate personnel.

tional programs, including expanding the training menu for

In April 2023, we revised our Personnel Development Policy,

executives in line with our succession plan, training for new

restructured the education system, and reviewed our lineup ofgeneral managers, and launching a program to cultivate next-

training programs. In the fiscal year ended March 2023, we

generation leaders. For some programs, we have introduced

introduced a new regional management training program,voluntary enrollment in an effort to foster a culture in which

giving employees who are active in regional positions an

16

HAZAMA ANDO CORPORATIONSUSTAINABILITY REPORT 2023
Materiality 1 Helping to solve social issues and create value for society

such as raising scaffolding, ordering materials and equipment,

employees take ownership of their own learning.

and placing concrete.

We have also for many years conducted training for new

We will continue to review the educational framework,

employees at the Technical Research Institute under the guid-pursuing personnel development that helps the Company andance of experienced in-house instructors. In this training, newemployees grow together.

employees themselves perform nearly all construction tasks,

Major Personnel Development Measures Planned for Fiscal 2023 (Group Training by Job Position)
ProgramParticipants

Objectives

Training for all new employees

New employees

Learning the basics of working in business

Leadership training(Third year)

Fostering leadership awareness and learning subordinate guidance skills

Basic management training

Newly promoted staff(group leader class)

Understand the systematic theory of business execution and human capital development
based on the principles of management.

Intermediate management training

Newly promoted staff(manager class)

Learning skills, approaches to simultaneously pursuing business execution and personnel development that encourages managers to put management principles into practice in the workplace.

Advanced management training

Newly promoted person(division manager class)

Understanding the importance of cultivating successors, taking an interest in supporting thedevelopment of their capabilities, and acquiring interviewing skills.

New manager training

Newly appointed officers(division managers)

Learning the process of clarifying aspirations as a manager, charting the direction of anorganization, and leading and developing a team.

Regional management training

Newly promoted staff(regional positions)Thinking about how to contribute to the organization and capitalize on one’s abilities.

* I n addition to the above, we carry out executive training based on the succession plan, specialized training by job type, training by area such as safety and compliance, andassigned training for next-generation leaders.

Taking Advantage of Diverse Personnel

We also support a balance between work and home life.

We are creating working environments where diverse person-nel can draw on their individuality and enjoy their work regard-

We have introduced our own work-life balance support system

In addition to realizing fair and open hiring practices, weterm care to gain greater understanding of Group initiatives. In

and put out handbooks on childcare support systems and long-less of nationality, gender, age, disability, or other difference.

the fiscal year ended March 2023, we revised the childcare

have established a promotion system to reward employees

leave system in line with changes in the law in Japan. The child-

who demonstrate stronger performance on the job.

care handbook includes interviews with male employees who

For the foreign nationals we employ in Japan, we support

have taken childcare leave, and we revised the content totheir Japanese language learning and encourage networking

encourage more men to take such leave. We will continue towith other foreign employees to help them demonstrate theirwork to foster an environment in which both men and womenfull potential.

can work and raise a family without anxiety.
Fiscal 2019

Fiscal 2020

Fiscal 2021

Fiscal 2022

Male employees taking childcare leave (percentage)

9 (13.8%)

8 (13.6%)

17 (18.3%)

17 (26.6%)

Female employees taking childcare leave (percentage)

32 (100%)

13 (100%)

15 (100%)

15 (100%)

Returnees after childcare leave

19

9

16

16

Users of reduced working hour system

36

33

26

43

Job return applications

3

0

0

0

Employees rehired after retirement (percentage)

60 (84.5%)

58 (90.6%)

52 (83.8%)

57 (82.6%)

Foreign employees

51

54

50

47

Employees with disabilities (including special disabilities)

45 (23)45 (22)50 (22)52 (22)Average length of employment: male

19.4

18.9

18.8

18.8

Average length of employment: female

10.9

11.1

11.5

11.7

Percentage of full-time female employees (to all employees)

12.7%

12.9%

13.3%

14.2%

Percentage of women among new graduate hires(full-time)

22.0%

9.6%

18.7%

20.5%

Number of female managers (equivalent to manager class)

22

22

23

29

17

HAZAMA ANDO CORPORATIONSUSTAINABILITY REPORT 2023
Materiality 1 Helping to solve social issues and create value for society

Initiatives to Promote Diversity

Hazama Ando promotes diversity and inclusion, including theaged employees to become aware of their own unconscious

management training into our training by job position andvalues, and emphasized the importance of being yourself andbias, which is shaped by past experience, information, andactive participation of women. We have incorporated diversity

taking on challenges, encouraging women to chart their own

implement such training on an ongoing basis. In addition tocareer paths to align with their own priorities.

content related to the empowerment of women, training

Recognizing their immense potential to flourish amid glo-

covers topics such as how men can take childcare leave andhow to interact with younger employees. Our aim is for manag-balization, we continue to employ foreign personnel, seeking

increasingly diverse and to understand the need for managing

abilities regardless of nationality.

to realize workplaces where every individual can leverage theirers to discover that employee expectations are becoming
a diverse workforce.

In the fiscal year ended March 2023, we held training forexecutives on the theme of approaches to human capital management that invite the willing and active participation of Gen
Z employees. The training referenced the values and traits of

Gen Z people, allowing participants to think anew about societal shifts and deepen their understanding of the changing
norms of organizational management.

For female employees, we also conduct group training

aimed at supporting career development. During the year, we

invited a woman who is active in the business world in Japan tocome in and hold a career support seminar. In the seminar,

which was attended by over 130 people, this female businessleader shared her own experience of building a career by flex-

Talk by Yuko Tashiro, Director and Chairman of the Board of Accordia Golf
Co., Ltd.

ibly overcoming barriers of gender and nationality. She encour-

18

HAZAMA ANDO CORPORATION

2Materiality

SUSTAINABILITY REPORT 2023

Protecting and being attuned to
the natural environment
Overview of Fiscal 2022 Results
In addressing the material issue of protecting and being attuned to the naturalenvironment, we have sought to construct a business framework that can help realize
the key CSR theme of creating environmental abundance, centered around theapproaches of reducing environmental impact and risks and taking steps to achieve
biodiversity. In the fiscal year ended March 2023, we also set key performance indicators
linked to the medium-term management plan and identified Goals 7, 12, and 13 as thecore SDGs linked with this material issue. We further accelerated management aimed at
optimizing our environmental impact, including through the promotion of carbon
neutral businesses, the construction of a business framework that contributes to acircular society and low environment impact, and the enhancement of disclosure.
The year was also marked by our formulation of more detailed environmental
objectives and targets for the three-year period ending March 2025 to establish a
PDCA framework for each issue with reference to the supply chain. For the fiscal year
ended March 2023, the first year of the updated plan, we made steady headway ineach of our target areas, including earning high ratings in the CDP’s 2022 supplierengagement rating.
To continue creating environmental value, we will press forward with initiatives
that are of keen interest to stakeholders, starting with the transition to carbon
neutrality in our businesses, as well as the Hazama Ando Next-Generation Energy
Project, the shift to net zero-energy building (ZEB) standards for construction projects,
and ongoing promotion of a circular business model.

19

HAZAMA ANDO CORPORATIONSUSTAINABILITY REPORT 2023
Materiality 2 Protecting and being attuned to the natural environment

CO2 Reductions in Third Year of Trial ofHazama Ando Next-Generation Energy Project

Activity
Highlights 1

The Group launched a trial of the Hazama Ando Next-Generation
Energy Project in April 2020 as part of our efforts to addressenergy-related issues in Japan.
The trial entails three types of experiments at multiple
energy demand sites in remote locations, including at the Technical Research Institute. (1) We installed a power generation
plant that combines a fuel cell capable of using CO2-free hydro-

CO2 emissions at three facilities
CO2 emissions (tons/year)

2,246
354
404

1,488

Before trial (estimated)
Total (yearly)

Activity
Highlights 2423

Approx.
tons per year
reduction(approx. 19%)

1,823
272

Large-scaleconstruction site324

Chiba Plant

1,227

Technical ResearchInstitutegen* as fuel with a gas engine generator-based cogeneration
system. Heat generated is supplied to accommodation facilities
on the same site. (2) In the main building of the TechnicalResearch Institute, we reduced electricity demand by drawing
on existing energy-saving technologies, and are distributing theamount of power saved across a wide area. (3) The low-CO2
electric power generated by the above-mentioned plant is
distributed to multiple wide-area demand sites using a selfconsignment system. In this way, we are comprehensively managing electricity and heat used at the three facilities andestablishing demand forecasts for different building applications—a laboratory, a plant, and a construction site. We are also
accurately adjusting power supplied by the cogeneration plant.
Underway for three years now, the trial has reduced total CO2
emissions at the three facilities by roughly 19% per year
(roughly 12% over the three-year period). Recognizing its fresh,leading-edge approach, novel technology, and energy-saving
performance, the Advanced Cogeneration and Energy Utilization Center recognized this project with its Excellence Award in
the Consumer Category at the 2022 Cogeneration Awards.
By continuing to verify and improve outcomes, we areaiming to establish even more optimal low-CO2 energy management. This project better positions the Group to help bringabout a carbon-free, sustainable society.
* CO2-free hydrogen:- Hydrogen with low greenhouse gas emissions during manufacturing- Hydrogen produced in a way that significantly reduces CO2 emissions- Hydrogen considered to have higher environmental performance, with a focus
on CO2 emissions at the manufacturing stage

After trial

Total (yearly)

Biodiversity Greening Initiatives at the Technical Research Institute

The Technical Research Institute, located in the city of Tsukubaof initiatives related to plants and animals. We also carry out
in Ibaraki Prefecture, has set aside a green space that is home toenvironmental education and offer other in-house learning
35 species of plants, including the white oak (Quercus myrsinifoopportunities.
lia) and Japanese privet (Ligustrum japonicum), species that are
Going forward, along with initiatives of the Institute, we will
native to Tsukuba. The green space serves as a trial field for thecontinue to provide customers with technical development andcreation of lush natural landscapes.
support for the planning, design, construction, and manageSpecifically, we are using our greening design support tool,
ment of green spaces so that their business sites remain lushIkimono Plus, to select a variety of native plants and investigate
green environments thriving with living creatures.
their growth, and also carry out monitoring surveys of the birds that fly
Creating Lush Natural Landscapesaround the site to ascertain connecGreen space management that
Selection of native plant species using Ikimono Plus
does not rely on chemical pesticides
tions between the native flora andfauna active in the green space. Additionally, to reduce the amount ofchemical pesticides used and lessen theJapanese beautyberry
East Asian eurya
Japanese privet(Callicarpa japonica)(Eurya japonica)(Ligustrum japonicum)
impact on the ecosystem, we are
Application of hot-water
Nurturing plant species
weed control
with allelopathic effects
Planting
Nurturingmaking use of hot-water weed control
and nurturing plant species that exhibit
Publication of Ikimono Tsushin
Broadening
Protecting
Bird monitoring survey
allelopathic effects, i.e., plants thatsuppress the growth of other plants.
Furthermore, to help our employDusky thrush
Male bunting
Pheasantees gain a deeper understanding of
the importance of conserving biodiWhite wagtail
Lark
Black wagtail
versity, we publish an in-house newsMonitoring results are reflected in green space renovation plansletter called Ikimono Tsushin (Living(i.e., priority selection of tree species preferred by birds, etc.)
Things News), showcasing examples
20

HAZAMA ANDO CORPORATIONSUSTAINABILITY REPORT 2023
Materiality 2 Protecting and being attuned to the natural environment

Creating environmental abundance

Relevant SDGs

To pass on an abundant global environment to the next generation, the Group will actively work tobring about a carbon-free, circular society. We will also take actions to protect, restore, and create
biodiversity to help realize a society that can coexist with nature.

Policies and Approach
Approach
We revised the Group’s Environmental Policy in April 2018 to further accelerate environmentally oriented management
aimed at bringing about a low-carbon, circular society that can coexist with nature. We are taking steps to help
promote further carbon neutrality and bring about a sustainable society by obtaining Science Based Targets (SBT)
re-certification, which involves revising our global temperature rise target to the 1.5°C level. Other moves involve
participation in the RE100 (Renewable Energy 100%) initiative, as well as disclosing climate change-related information
based on the TCFD recommendations.

Environmental Policy
To protect the abundant green earth and bring about a sustainable society, we will contribute to protecting theenvironment and reducing environmental impact across the Group.
1 Work to reduce greenhouse gas emissions to help bring about a low-carbon society
2 Reduce construction by-products to help bring about a circular society

3 Take actions to protect, restore, and create biodiversity to help bring about a society that coexists with nature

4 Continuously improve environmental management systems and achieve greater results from environmental conservation

Key Environmental Initiatives
We have established key medium- and long-term environmental initiatives to give concrete shape to theEnvironmental Policy.
1  
Initiatives related to global warming

4  
Initiatives related to water conservation

Reduce greenhouse gas emissions and promoteenergy saving

Work toward conserving a sound water environment
attentive to the conservation of regional characteristics
and biodiversity

2  
Initiatives related to biodiversity conservation

5  
Initiatives related to air quality conservationand sustainable use
Consider risks to biological resources and ecosystems andminimize impact

Reinforce efforts to combat air pollution and deal withasbestos, etc.
Reinforce efforts to address living environment issues suchas noise and vibrations

3  
Initiatives to ensure material recycling andbuild a circular society
Mission to achieve net zero construction waste
Extend the life cycle of buildings, build an environmentallyconscious society

6 Initiatives to establish comprehensive chemical substancemeasures
Increase understanding of environmental risks caused bychemical substances and reduce risks

Three-Year Environmental Objectives and Targets (Fiscal 2022–Fiscal 2024)
The Group established new three-year environmental objectives and targets in the fiscal year ended March 2023. In
addition to initiatives to bring about a low-carbon, circular society that can coexist with nature as indicated in theEnvironment Policy, we formulated key medium- and long-term environmental targets to give concrete shape to thepolicy. To reduce greenhouse gas emissions, in addition to setting a new target for total CO2 emissions, we are steppingup efforts to shift to net zero-energy building (ZEB) standards as an environmentally friendly target for design. In termsof bringing about a society that can co-exist with nature, we set targets for biodiversity conservation actions. To bringabout a circular society, we set a target for the reduction of mixed waste intensity. In terms of environmental risk
management, we are targeting increased environmental site visits.
In addition to these targets to implement the Environmental Policy, we are promoting environmentally oriented
management across the Group. We hold events during Environment Month and engage in other activities to raise
environmental awareness, and set goals for actions that contribute to the environment and society.
21

HAZAMA ANDO CORPORATIONSUSTAINABILITY REPORT 2023
Materiality 2 Protecting and being attuned to the natural environment

Three-Year Environmental Objectives and Targets (Fiscal 2022–Fiscal 2024)
1. Actions to prevent global warming
Area

Objective, target

Unit

SharedProcure electric power from renewableenergy*1

(%)

15

25

40

Reduction of total CO2 emissions(%)(SBT reduction target)(Reduction rate versus FY2017 [Scope 1 and 2])

12.7

15.3

17.8

45.0

43.0

41.0

CO2 emissions per completed construction at
the construction stage(tons of CO2/
100 million yen)

9.7

9.4

9.1

150

160

170

Reduce CO2 emissions at head office,branches, and sales offices
Total reduction compared to fiscal 2017 (SBT
reduction basis)

Emissions (tons of
CO2)
Reduction rate (%)

3,033

2,722

2,425

22.5

30.4

38.0

Enhance overall environmental performanceby applying simplified CASBEE rating(Comprehensive Assessment System for Built
Environment Efficiency)(%)

Proportion:100
A rank or higher: 60

—
—

—
—

Implement environmental proposals based on (%)
life cycle assessment results for design-build
projects of 2,000 square meters or more*2

—

100%

100%

Shift to net zero-energy building (ZEB)
standards(projects)

1.1 Reduce greenhouse gas emissions
SharedCivil Engineering
Building
Construction

Fiscal 2022

CO2 emissions per completed construction at the (tons of CO2/
construction stage
100 million yen)

Civil Engineering and Supply energy through a next-generation CO2 (tons of CO2)
Building Construction cogeneration plant

Offices

1.2 Promote environmentally friendly design and technology
Building
Construction

Building
Construction
Building
Construction

Civil Engineering
Construction
Technology

Fiscal 2023

Environmental technologies developed
Environmental technology design andconstruction projects adopted

Environmental technologies developed
Environmental technology design andconstruction projects adopted(projects)

Fiscal 2024

Verified:4 (cumulative) Verified:5 (cumulative) Verified:6 (cumulative)
Proposed:5 Proposed:5 Proposed:5(projects)

1
2

1
2

1
2

1
2

1
2

1
2

2. Actions to conserve biodiversity (helping to bring about a society that can coexist with nature)
Area

Objective, target

Unit

SharedInstill understanding of biodiversity
conservation, take definitive actions at
spotlighted work sites, make new proposals,
conduct internal and external PR(cases)2.1 Steadily pursue biodiversity-friendly initiatives related to construction projects

Technology

Technologies related to biodiversity:
a: examinations, b: development, c: trials,
d: application to projects

3. Actions to build a circular society

Fiscal 2022

Fiscal 2023

30

Fiscal 202430

30(cases)a: 2, b: 1, c: 1, d: 1

a: 2, b: 1, c: 1, d: 1

a: 2, b: 1, c: 1, d: 1

Fiscal 2022

Fiscal 2023

Fiscal 2024

Area

Objective, target

Unit

Civil Engineering

Reduce total mixed waste per completed
construction by containing waste generation
on site and strengthening sorting processes(tons/
100 million yen)

0.95

0.85

0.8

(kilograms/square meter)

6.8

6.7

6.5

3.1 Recycle construction waste

Building
Construction

Reduce mixed waste intensity per total floorarea at new construction projects

4. Actions to manage environmental risk (protecting water and air environments, comprehensive chemical substance measures)
Area

Objective, target

Unit

Fiscal 2022

Fiscal 2023

Fiscal 2024

Civil Engineering and Augment environmental site visits* Visits to the civil engineering and building
Building
construction departments of branch offices
Construction

(%)

Civil
Engineering:75
Building
Construction:75

Civil
Engineering:90
Building
Construction:90

Civil
Engineering:100
Building
Construction:100

Fiscal 2023

Fiscal 2024

4.1 Actions to prevent environmental accidents

5. Actions to promote environmental awareness and disclosure of environmental activities
Area

Objective, target

Unit

SharedPromote Environment Month activities(%)

SharedPromote environmental initiatives throughenvironmental and eco-site visits(activities)

5.1 Promoting environmental awareness and disclosure

Shared* Participation rate for all eligible sites
Indicates participation in events held during June
Environment Month

Fiscal 2022

Promote more robust actions that contribute (actions)to the environment and society
Take actions to contribute to the environmentand society

100

100

100

30 or more

30 or more

30 or more

Civil Engineering:
3 per work site
Building Construction:
3 per work site
Offices: 80 per year

Civil Engineering:
3 per work site
Building Construction:
3 per work site
Offices: 80 per year

Civil Engineering:
3 per work site
Building Construction:
3 per work site
Offices: 80 per year

Shared: Indicates entire Group (Civil Engineering, Building Construction, technology R&D, and offices)*1 T argets for electric power from renewable energy do not include amounts procured by non-fossil fuel certificates.
*2 L ife cycle assessment with revised targets for fiscal 2023 and fiscal 2024: Life cycle assessment (data on CO2 emissions) based on a life cycle assessment support systemdeveloped in-house.

22

HAZAMA ANDO CORPORATIONSUSTAINABILITY REPORT 2023
Materiality 2 Protecting and being attuned to the natural environment

Pillars Supporting Our Initiatives

1. Reducing environmental impact and risks
2. Taking steps to achieve biodiversity
Pillars Supporting Our Initiatives 1: Reducing Environmental Impact and Risks
Shifting to ZEB, ZEH Standards and Building a Green Track Record
One aspect of seeking to help bring about a sustainable society isenergy savings at the stage of operation after completion.

house (ZEH) standards*1. We have been steadily gaining techno-saving systems, but actual energy-saving performance varies

Many ZEB and ZEH buildings incorporate advanced energy-

our shift to net zero-energy building (ZEB) and net zero energy

significantly depending on how they are operated. By bridging

logical prowess and establishing a track record in these areas.

the gap between initial design assumptions and operation and

We received ten ZEB and ZEH orders in the fiscal year ended

ascertaining optimal operating methods, we can ensure energy

March 2023, a marked increased over previous years. In addi-

savings throughout the life cycle of the building. We plan totion to our track record in newly built offices, we are also gain-build on these initiatives going forward.

ing experience in other types of buildings and renovations,developing and more broadly implementing the requisite technologies. Moreover, due to efforts at our Tohoku branch office,*1 https://www.ad-hzm.co.jp/solution/zeb (Japanese only)*2 http://www.bsca.or.jp/outline/commissioning02.html (Japanese only)

gain greater awareness of ZEB and ZEH construction.

ZEB, ZEH Planning Track Record

we were registered as a ZEB leading owner and are working to
In addition to obtaining ZEB or ZEH certification to ensure

FY2022 ZEB, ZEH Orders

high environmental performance at the design stage, we arealso conducting commissioning*2 trials for some of our ZEB andZEH design-build projects, aiming to ensure comfort andLess than 300 m2

Less than 2,000 m2

More than 2,000 m2

0

2

8

Applying “Ash-Crete” to Tsunami Breakwater at Fukushima Daiichi Nuclear Power Station
Hazama Ando has developed “ash-crete,” a technique fortechnique for erecting the breakwater. For the embankment

typically includes unevenly sized particles and has unstableusing “ash-crete” manufactured at a temporary dedicated plant

inside the terre armée structure, rather than ordinary soil we aremaking effective use of large quantities of coal ash, which

located near the breakwater, and sourcing coal ash from thequality. We have effectively used more than 1.7 million tons of

nearby Hirono Thermal Power Station of JERA. In this way, we

coal ash to date using the “ash-crete” technique.

solved the difficulty of procuring large quantities of materials

We are currently applying “ash-crete” as part of the decom-and other process-related issues. The construction period spans

missioning work for the ground floor of Tokyo Electric Power’s

the fiscal year ended March 2022 to the fiscal year ending March

Fukushima Daiichi Nuclear Power Station, in the materials manu-

2024. By effectively using coal ash in a long-term and consistent

facturing work for the ground floor Japan trench tsunami break-manner, we are helping to reduce environmental impact.

water. The project involves a terre armée reinforced earth wall

“Ash-crete” construction.

Part of the completed breakwater.

23

HAZAMA ANDO CORPORATIONSUSTAINABILITY REPORT 2023
Materiality 2 Protecting and being attuned to the natural environment

Pillars Supporting Our Initiatives 2: Taking Steps to Achieve Biodiversity
Biodiversity Initiatives for Goal 15 of the SDGs: Active Use of Ikimono Plus and Ikimono Info
Ikimono Plus (ikimono means “living thing” in Japanese) is abuilding greening design tool used to support the planning ofgreen projects that take biodiversity into consideration. The tool
helps to enhance the functionality of CASBEE (Comprehensive

Assessment System for Built Environment Efficiency) evaluations.
Having jointly developed the tool in the fiscal year ended March
2014, we are using it in our design-build projects as well asworking to broaden its in-house implementation, including

hosting seminars for newcomers to various design departments.
Ikimono Info is an in-house biodiversity database that got

up and running in the fiscal year ended March 2016. It contains
examples of internal and external initiatives at construction

sites and related external information. We use the databasewhen making technical proposals to customers or exploring
construction methods that allow the preservation of rareorganisms at construction sites.

Ikimono Plus

24

Ikimono InfoHAZAMA ANDO CORPORATIONSUSTAINABILITY REPORT 2023
Materiality 2 Protecting and being attuned to the natural environment

Environmental Factsheet
Hazama Ando continues to collect and verify a range of quantitative data on environmental activities,
which informs our consideration of environmental goals from a longer-term perspective. Key datafrom activities in the fiscal year ended March 2023 are shown below.

1 Environmental Management System
Hazama Ando acquired ISO 9001 and ISO 14001 certification on April 1, 2013. We are continuously working to improve our quality
and environmental management systems (QMS and EMS).

In line with the September 2015 revision of the ISO standards, we reviewed and completely overhauled our quality and environ-mental management systems in the fiscal year ended March 2017, and the systems started operation in April.

Results of QMS and EMS Internal Audit
Audit period

Number of divisions audited
Head officemanagement divisions

Branch officemanagement divisions

Civil engineering worksites

Building construction
work sites

Total

12

41

16

22

91

September–November 2022

Notes: The audit sampling rate was 21.5% (12 of 78 head office departments [15.4%], 41 of 102 branch offices [40.2%], 16 of 100 civil engineering work sites [16.0%], and 22 of
144 building construction work sites [15.3%])
A combined QMS and EMS audit was performed.

Results of External Review

In the fiscal year ended March 2023, we underwent a re-certification audit by the Japan Testing Center for Construction Materials, a review and registration organization. This was the ninth QMS review and eighth EMS review for the Group.
Date of review
Surveillance
November 16–28, 2022

Review results

Sites reviewed
Head office, Technical Research Institute, Building
Management Division, Sapporo Branch, Tohoku
Branch, Kanto Branch

ISO 9001

ISO 14001

Major nonconformities:
0
Minor nonconformities:
0
Observations:0

Major nonconformities:
0
Minor nonconformities:
0
Observations:0

Results of Management Review

Top management of the Group carried out a management review in October 2022 and March 2023. The President in March2023 issued directives from the management review applicable to the fiscal year ending March 2024.

Compliance with Environmental Laws and Regulations

By means of interim and fiscal year-end reports, environmental site visits, and internal QMS and EMS audits, we confirmedthat the Group is compliant with environmental laws and regulations. (In the fiscal year ended March 2023, there were noreports of serious violations of laws or regulations that materially affect the environment.)

25

HAZAMA ANDO CORPORATIONSUSTAINABILITY REPORT 2023
Materiality 2 Protecting and being attuned to the natural environment

2 Environmental Management System
The following outlines the environmental impact of Hazama Ando’s business activities in the fiscal year ended March 2022 in terms of
the use of resources and emissions, as well as our efforts to protect the environment.
Major Resources Used (Inputs)

Office activities(permanent offices)

Construction activities
Energy*Main construction materials*

Electric power 47.25 million kWh
Light oil
19 thousand kl
Kerosene
629 kl
GTL fuel
0 kl
Bunker fuel A
0 kl

Ready-mixed
concrete
Crushed stone

Energy563 thousand m

200 thousand m3

Cement59 thousand tons

Steel

125 thousand tons

Rebar

Copy paper
6.55 million sheets(A4 base)
Electric power
4.13 million kWh
Tap water
15.7 thousand m3
Gas
529 thousand Nm3(utility gas, LPG)
Fuel
178 kl3

50 thousand tons

Environmental
issuesGlobal warming
Resource depletion
Impact on biodiversity

Efforts to Protect the Environment
Technology to prevent global warming
Waste disposal and recycling technology

Technology
development	Technology to conserve surrounding
environments and ecosystems
Technology to restore the environment
Technology to create environments

Energy conservation, use of ICT, greening of rooftops, walls, etc.
Effective use of coal ash, dismantling of incinerators, technology to build
impermeable final disposal sites, etc.
Noise and vibration prevention, landscape design, etc.
Soil remediation, river purification, air purification, etc.
Artificial undersea mountains, environmental visualization technology,
carbon sequestration techniques, etc.

Construction activities
Planning, design

Operation andrenovation

Construction	Energy and resource
conservation	Coexistence with the naturalenvironment	Reduction of construction waste	Longer building life cycles
	Realization of net-zero energy
building (ZEB) standards
	Adopting eco-materials, etc.

	Containing generation of construction by-products	Recycling construction by-products	Construction that conserves energy
and resources	Protection of local environments
	Using less tropical-wood formwork, etc.
	Using electricity from renewableenergy sources, etc.

	Energy conservation diagnostics,
seismic diagnostics
	Proposals for energy conservation, renewal	Reducing construction waste,
etc.

Waste
	Promoting separate breakdown by material
	Promoting recycling	Protection of local
environments
	Proper disposal of harmful
substances, etc.

	Conserving energy and resources	Green purchasing	Reducing waste and recycling	Using electricity from renewable energy sources, etc.

Office activities

Major Emissions (Outputs)

Construction activities
CO2 emissions*
Soil generated by construction

Office activities

68 thousand tons of CO2
563 thousand m3

Amount reused

277 thousand m3 (49.1%)

Construction waste

735 thousand tons

Amount recycled or reduced
Final disposal amount
Processed asbestos

CO2 emissions

3 thousand tons of CO2

Environmental
issues	Global environment	Global warming, ozone
depletion, acid rain,
rainforest depletion,
impact on biodiversity, etc.
	Local environments
	Construction pollution,
construction by-products,
groundwater fluctuations,destruction of naturalenvironment, etc.

675 thousand tons
(91.8%)
60 thousand tons (8.2%)
2,750 tons

* Estimated value calculated by sampling

26

HAZAMA ANDO CORPORATIONSUSTAINABILITY REPORT 2023
Materiality 2 Protecting and being attuned to the natural environment

3 Greenhouse Gas Emissions and Use of Electric Power from

Renewable Energy Sources in Fiscal 2022 (Group total for the period from April 2022 to March 2023)

The table below shows the Group’s greenhouse gas emissions and the ratio of electric power from renewable energy sources in thefiscal year ended March 2023. We will continue to pursue measures to meet our targets in helping address global warming issues. We
also obtained third-party assurance regarding greenhouse gas emissions (Scope 1, 2, and 3) and energy consumption for the year.

Greenhouse gas emission reduction targets

RE100 Targets

Greenhouse gas emission reduction rate

Ratio of electric power from renewableenergy sources

Scope 1 + 2 Fiscal 2030 55% reduction (compared to fiscal 2017)

Fiscal 2030

Fiscal 2030 33% reduction*1 (compared to fiscal 2017)

Scope 3Category

GHG

RE100

100%

Fiscal 2017(base year)

Fiscal 2021
(previous year)

Unit

Scope 1
Scope 2
Scope 1 + 2
Scope 3*1
(1) Purchased goods and services
(1)-1: Main materials such as ready-mixed concrete,
office supplies
(1)-2: Purchased civil engineering and construction
services(2) Capital goods(3) F uel- and energy-related activities (not includedin Scope 1 or Scope 2)(4) Upstream transportation and distribution(5) Waste generated in operations(6) Business travel(7) Employee commuting(11) Use of sold products(12) End-of-life treatment of sold products(13) Downstream leased assets
Electricity usage
Electric power from renewable energy*2
Ratio of electric power from renewable energy

80%

Fiscal 2050

Fiscal 2022

Thousand tons of CO2

63
32
95
2,940
810

40.8
0.3
41.1
1,859.3
908

52.8
18.4
71.2
1,954.3
746

Thousand tons of CO2

541

688

509

Thousand tons of CO2

270

221

237

Thousand tons of CO2

14

7

16

Thousand tons of CO2

6

9

11

Thousand tons of CO2

34
50
1
1
1,932
91
0
60,707
—
—

25
10
0
1
895
4
0
40,57736,475
90

24
11
0
1
1,070
74
0
56,598
9,037
16

Thousand tons of CO2
Thousand tons of CO2
Thousand tons of CO2
Thousand tons of CO2

Thousand tons of CO2
Thousand tons of CO2
Thousand tons of CO2
Thousand tons of CO2
Thousand tons of CO2
Thousand tons of CO2
MWh
MWh
%

*1 ( 8) Upstream leased assets, (9) Downstream transportation and distribution, (10) Processing of sold products, (14) Franchises, and (15) Investments are not applicable andare not included in the above calculations.
*2 I ncludes only renewable energy electricity that meets RE100 standards. Began use of non-fossil fuel certificates in the fiscal year ended March 2022.

Progress in Scope 1 + 2 targets

Progress in Scope 3 targets

Emissions

Emissions(thousand tons of CO2)

100
80

(thousand tons of CO2)

95

4,000

74

69 72

3,000

71

60
2,000

41

3,682

2,940 2,944

2,722

1,8591,954

40
1,000

20
0
Forecast2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Scope 1 results

0

(FY)

Scope 2 results

Forecast

27

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

(FY)

HAZAMA ANDO CORPORATIONSUSTAINABILITY REPORT 2023
Materiality 2 Protecting and being attuned to the natural environment

4 Progress toward Environmental Objectives and Targets in Fiscal 2022
(April 2022–March 2023)

Outcomes of activities for the fiscal year ended March 2023 toward achieving the environmental objectives and targets the Group has
set over a three-year period are shown below. We will continue acting to reach the targets, guided by the Group’s environmental
management system.
Area

Objective, target

Group targets
for fiscal 2022

Unit

Year-end Group results forfiscal 2022

Assessment

1. Actions to prevent global warming
1.1 Reduce greenhouse gas emissions
SharedProcure electric power from renewable energy

(%)

15

16

〇

SharedReduction of total CO2 emissions (SBT reduction target)(Reduction rate versus FY2017 [Scope 1 and 2])

(%)

12.7

24.7

〇

Civil
Engineering

CO2 emissions per completed construction at
the construction stage(tons of CO2/
100 million yen)

45.0

41.0

〇

Building
Construction

CO2 emissions per completed construction at
the construction stage(tons of CO2/
100 million yen)

9.7

8.9

〇

Civil Engineering Supply energy through a next-generation CO2 cogeneration plantand Building
Construction(tons of CO2)

150

418

〇

Emissions(tons of CO2)
Reduction
rate (%)

3,033

2,437

22.5

32.9

Offices

Reduce CO2 emissions at head office, branches, and sales offices
Total reduction compared to fiscal 2017 (SBT reduction basis)〇

1.2 Promote environmentally friendly design and technology
Building
Construction

Enhance overall environmental performance by applying
simplified CASBEE rating (Comprehensive Assessment System
for Built Environment Efficiency)

Building
Construction

Shift to net zero-energy building (ZEB) standards

Civil
Engineering

Environmental technologies developed
Environmental technology design and construction projects adopted(projects)

1
2

2
1

〇
×

Construction
Technology

Environmental technologies developed
Environmental technology design and construction projects adopted(projects)

1
2

2
2

〇
〇

(%)

Proportion:100% Proportion:100%
A rank or higher:
60% A rank or higher:
56%△(projects)

Verified:4 (cumulative) Verified:8 (cumulative)
Proposed:5 Proposed:8〇

2. Actions to conserve biodiversity (helping to bring about a society that can coexist with nature)
2.1 Steadily pursue biodiversity-friendly initiatives related to construction projects
SharedInstill understanding of biodiversity conservation, take definitive
actions at spotlighted work sites, make new proposals, conduct
internal and external PR(cases)30

51〇

Technology

Technologies related to biodiversity: a: examinations,b: development, c: trials, d: application to projects(cases)a: 2, b: 1, c: 1, d: 1

a: 2, b: 1, c: 1, d: 2

〇

Civil
Engineering

Reduce total mixed waste per completed construction by containing(tons/
waste generation on site and strengthening sorting processes
100 million yen)

0.95

0.6

〇

Building
Construction

Reduce mixed waste intensity per total floor area at new
construction projects

6.8

3.1

〇

3. Actions to build a circular society
3.1 Recycle construction waste(kilograms/square meter)

4. Actions to manage environmental risk (protecting water and air environments, comprehensive chemical substance measures)
4.1 Actions to prevent environmental accidents
Civil Engineering: 75%
Building Construction:75%
Civil Engineering:
72%(%) Proportion of visits
Building Construction:68%
compared to total sites
in operation

Civil Engineering Augment environmental site visits
and Building* Visits to the civil engineering and building construction
Construction
departments of branch offices△△

5. Actions to promote environmental awareness and disclosure of environmental activities
5.1 Promote environmental awareness
SharedPromote Environment Month activities*P articipation rate for all eligible sites
Indicates participation in events held during June Environment Month

SharedPromote environmental initiatives through environmental andeco-site visits

SharedPromote more robust actions that contribute to the environment and society
Take actions to contribute to the environment and society(Assessment)〇: met or exceeded target. △: somewhat below target.

(%)

100%

〇

69

〇

Civil Engineering:
Civil Engineering:
3 per work site
3.3 per work site(activities) Building Construction:
Building Construction:
3 per work site
3.5 per work site
Offices:
80 per year Offices:
106 per year〇

(activities)

100% Work sites:
30 or more

×: far below target (less than 70% achievement).

28

HAZAMA ANDO CORPORATIONSUSTAINABILITY REPORT 2023
Materiality 2 Protecting and being attuned to the natural environment

5 Environmental Protection Activity Data
Hazama Ando collects and analyzes environmental protection activity data with the objective of efficiently pursuing actions to protect
the environment and disclose information externally.

Data Framework
Collection period

April 1, 2022–March 31, 2023      Scope of data

 Head office and all domestic branches(excluding overseas and Group companies)

Environmental Protection Costs(Millions of yen)

Cost category

Main activity

Costs within business areas
1 Pollution prevention costs

Fiscal 2022

Pollution prevention measures at work sites (air, water, and soil pollution; prevention of noise,
vibrations, etc.)Global warming prevention measures, energy conservation, alternative materials for tropical2 Global environmental protection costs
wood formworks, etc.

3 Resource recycling costs
Containing generation of construction by-products, reuse, proper disposal, etc.

Upstream, downstream costs

Environmentally friendly designs and technical proposals, green purchasing (amount of increase)
Regular EMS review fees; review personnel costs; environmental disclosure; environmental
PR: environmental impact monitoring (survey, measurement costs); environmental education,
study groups; cleanup and greening around work sites
R&D of environmental technologies
Cooperation with community environmental protection activities, etc.
Soil remediation, repair of environs, emergency response preparedness, etc.

Management activity costs
R&D costs
Social activity costs
Environmental damage costs
Total environmental protection costs

Completed construction in Japan
Ratio of Civil Engineering to Building Construction
Environmental protection costs/completed construction

Completed construction
Ratio to completed construction

Environmental protection costs (by type of
construction work, major branches) (fiscal 2022)

2,036
58
4,520
15
256
320
3
20
7,228
311,930
40:60
2.32%

Breakdown of environmental protection costs bytype of construction work, major branches (fiscal 2022)(Millions of yen)
7,500

6,614

448

6.2%
2,185
5,000

30.2%
63.6%
4,595

2,500

0

(FY)

2022

Civil Engineering

Building Construction

Major branches

Breakdown of environmental protection costs bycost category (fiscal 2022)

Environmental protection costs (by cost category)(fiscal 2022)(Millions of yen)
7,500

3

5,000

2,500

320
256

20
15

28.2%

4,520

0.8%
58

62.5%

2,036
0

0.1%
0.3%

4.4%
3.5%
0.2%

2022

Pollution prevention costs
Global environmental protection costs
Social activity costs
Environmental damage costs(FY)

Resource recycling costs

29

Upstream, downstream costs

Management activity costs

R&D costs

HAZAMA ANDO CORPORATIONSUSTAINABILITY REPORT 2023
Materiality 2 Protecting and being attuned to the natural environment

Environmental Protection Impacts
Category

ImpactUnit

Fiscal 2022

Electric power consumption (work sites)

million kWh

Light oil usage (work sites)

thousand kl

19

Kerosene usage (work sites)

kl

629

GTL fuel usage*1

kl

0

Bunker fuel A usage (work sites)

Resources used
(inputs)kl

0

Copy paper purchased (offices, A4 base)million sheets

6.55

Electric power consumption (offices)*2

million kWh

4.13

Tap water usage (offices)3

thousand m

15.7

thousand Nm3529

Gas (utility gas, LPG) usage (offices)
Fuel (gasoline, light oil, kerosene, bunker oil) usage (offices)

kl

178

Steam, cold water usage (offices)

GJ

3,220

Work sites

thousand tons of CO2

68

Offices

thousand tons of CO2

3

Total

CO2 emissions*3

Emissions47.25

thousand tons of CO2

71

Soil generated by construction

thousand m3

563

Amount reused(rate)

thousand m3

277(49.1%)

Construction waste

thousand tons

735

Amount recycled or reduced(rate)

thousand tons

675
(91.8%)

Final disposal amount(rate)

thousand tons

60
(8.2%)

Properly processed asbestos

tons

2,750

Amount of valuable materials soldtons

11,990*1 GTL fuel is a diesel alternative fuel derived from natural gas.
*2 Includes experimental section of the Technical Research Institute*3 Calculated in accordance with the Act on Rationalizing Energy Use, the Act on Promotion of Global Warming Countermeasures, the Greenhouse Gas Protocol, etc.

CO2 emissions

Carbon intensity(tons of CO2/100 million yen)

(%)

80

30

75

(thousand tons of CO2)

64.1

3

3
60

50

20
40

67

Work sites

2

2020

39.6

68

2021

25

10

38

20

0

42.8

2022

0

(FY)

Carbon intensity

Offices

30

20.7

13.0

21.9

2020

2021

2022

Reduction rate (versus fiscal 1990)

(FY)

0

HAZAMA ANDO CORPORATIONSUSTAINABILITY REPORT 2023
Materiality 2 Protecting and being attuned to the natural environment

6 Construction Waste Disposal
The volume of construction waste generated varies depending on the scale, type, and amount of construction work. The
Hazama Ando Group rigorously controls and appropriately manages waste by keeping clear track of the type and volume ofwaste generated at construction sites.
Total construction waste(thousand tons)
1,000

750

291
361

500

237
445

250

0
Civil Engineering

285

306

2020

2021

Building Construction

Emissions by type of waste (fiscal 2022)(thousand tons)

Breakdown of emissions by type of waste (fiscal 2022)
Civil Engineering

800

70
19

(FY)

2022

10
30

Building Construction

1%
4% 5%
3%

600

270

22%

400

2%
2%

14%

Overall
1%
2%

17%

10%
4%

6%

46%

65%
37%
59%

200

336

0

2022

Construction sludge

Concrete mass

(FY)

Asphalt and concrete mass

Construction-generated wood

31

Construction mixed waste

OthersHAZAMA ANDO CORPORATIONSUSTAINABILITY REPORT 2023
Materiality 2 Protecting and being attuned to the natural environment

7 Using, Promoting the Use of Recycled Resources

The Group is promoting the use of recycled resources in cooperation with partner companies to further broaden the effective
use of resources.
Promotion of recycled resource use (fiscal 2022)
(%)

100

75

99.1

50

98.9

96.6
79.9

25

49.1

0

Constructiongenerated soil

Concrete mass

Asphalt andconcrete mass

Constructiongenerated wood

Construction
sludgeNote: Promotion of recycled resource use indicates reusing construction by-products on-site or transporting them to recycling facilities for use as recycled resources.

Recycled resource utilization rate (fiscal 2022)
(%)
100

75

50

57.1
25

0

35.7

32.4

Dirt

Crushed stone

Asphalt mixture

Recycling Under Wide-Area Recycling Designation System, etc.
The Group has formed tie-ups with various manufacturers and is recycling waste materials such as gypsum board and autoclaved lightweight aerated concrete (ALC) products generated at new construction sites.
In the fiscal year ended March 2023, we consigned 544 tons of waste gypsum board directly to wide-area recycling designatedcontractors for recycling. We also turned over 11,896 tons of metal scrap, 64 tons of cardboard, and 30 tons of other materials
to specialist recycling companies as valuable materials or exclusive recycling materials.

32

HAZAMA ANDO CORPORATIONSUSTAINABILITY REPORT 2023
Materiality 2 Protecting and being attuned to the natural environment

8 Green Procurement

Having established green procurement categories, the Group is procuring materials, equipment, and products and sourcing construction methods that have lower environmental impact.

Green Procurement Results (Construction Divisions)Category

Classification

Construction-generated soil

Amount procured

Unit

Fiscal 2022

thousand m3

956.7

3

Processed soil recycled from construction sludge●

thousand m

290.1

Recycled hot asphalt mixture●

thousandtons

7.3

Recycled aggregate, etc.

●

thousand m3

105.1

Recycled steel (electric arc furnace steel)thousand
tons

37.1

Recycled steel (electric arc furnace rebar)*

thousand
tons

30.0

Blast furnace cement*●

thousand
tons

28.4

Coal ash cement*●

thousand
tons

0.0

Particle board, fiber board●

thousand m2

8.1

Wood cement board●

2

thousand m

13.8

Tropical-wood alternative formwork (metal)

2

thousand m

22.3

Tropical-wood alternative formwork (concrete)

thousand m2

0.0

Tropical-wood alternative formwork (other)2

thousand m

39.8

3

Effective low-quality soil utilization method●

thousand m

0.0

Construction sludge recycling method●3

thousand m

255.0

Concrete mass recycling method●3

thousand m

0.0

Slope greening method using logging timber or construction-generated soil●

2

thousand m

0.0

Permeable pavement●2

thousand m

4.7

Rooftop greening*●

thousand m2

2.9* Items included in Group-wide survey.
(Classification) ● : Government-designated procurement item

Blank: Item recommended by Hazama Ando

Green Purchased Office Supplies (Fiscal 2022)
Copy paper(million sheets)

Total amount purchased
Green products
Green purchasing rate

6.55

Business card blanks(thousand sheets)

339

Printed envelopes(thousand sheets)

86

Ring binders

Flat files

824

2,380

6.51

338

86

824

2,370

99.4%

99.6%

100%

100%

99.6%

33

HAZAMA ANDO CORPORATIONSUSTAINABILITY REPORT 2023

sustainable management and
3 Promoting
taking full responsibility for corporate actions

Materiality

Overview of Fiscal 2022 Results
Our response to the material issue of promoting sustainable management and taking full
responsibility for corporate actions entails PDCA activities based on three key CSR themes*.
First, under the key theme of conducting fair and honest corporate activities, we are
pursuing ongoing measures to enhance governance and ensure rigorous compliance,
the unchanging premises upon which a company is built. In the fiscal year ended March
2023, we continued to reinforce social and environmental risk management and thebusiness continuity framework. Also, by resolution of the regular General Meeting of
Shareholders held on June 29, 2023, we transitioned to a company with an Audit andSupervisory Committee, further promoting the independence, diversity, andtransparency of management.
This material issue is the basis for Hazama Ando’s practice of sustainable
management and the realization of the Four Value Creation strategies set out inHazama Ando VISION2030. A robust response to this issue necessitates collaboration
with everyone associated with our business. Under the key theme of engaging in
dialogue with stakeholders, we continue to expand and deepen dialogue witheveryone we come into contact with across the supply chain to strengthen our
engagement with society.
* For the sake of consistency with the Medium-Term Management Plan 2025, with regard to the key theme of creating safe,
comfortable working environments, we transferred elements other than Pillars Supporting Our Initiatives 3: Respect for Human
Rights from Materiality 1: Helping to solve social issues and create value for society.

34

HAZAMA ANDO CORPORATIONSUSTAINABILITY REPORT 2023
Materiality 3 Promoting sustainable management and taking full responsibility for corporate actions

Conducting fair andhonest corporate activities

Relevant SDGs

Policies and Approach
Approach to Corporate Governance
The Group’s business activities are based on safe, secure, high-quality “good building operations.” Through these
operations, we aim to contribute to the advancement of society and our customers and fulfill our mission and duty tosociety. To achieve this, we believe it is critical to maintain and improve a management system capable of responding
swiftly to changes in the business environment, to ensure the transparency and fairness of management supervision,and to ensure rigorous compliance. To this end, we are working continuously to enhance corporate governance.

Pillars Supporting Our Initiatives

1. Corporate governance				3. Internal control and risk management

2. Compliance

4. Respect for human rights

Pillars Supporting Our Initiatives 1: Corporate GovernanceHazama Ando is seeking to further enhance corporate gover-this end, we transitioned to a company with an Audit andfurther reinforcing the supervisory function of the Board of

Meeting of Shareholders held on June 29, 2023.

Supervisory Committee by resolution of the regular Generalnance and raise corporate value in a sustainable manner byDirectors and enabling more flexible business execution. To

Corporate Governance and Internal Control Frameworks

Internal

External

Male

FemaleGeneral Meeting of Shareholders
Appointment, dismissal

Board of Directors
6 other than Audit andSupervisory Committee members

Appointment, dismissal

4 Audit and Supervisory
Committee members(including 3 external board directors) Auditing(including 3 externalboard directors)

Audit andSupervisory
Committee

Appointment, dismissal

ReportingAccounting Auditor

Sustainability Committee

13 (including 6 external board directors)

Coordination

Supervision

Nomination andRemuneration Committee

5 (including 3 external board directors)

Advising
Reporting

Supervision

ReportingBoard of Directors
Support Group
Reporting, reporting back, etc.

Coordination

Audit Committee
Support Group
Auditing

Reporting

Auditing

Business
Execution

Various Committees

President(Representative Director)
Reporting, etc.
Instruction, etc.

Internal Control and
Risk Management Committee

ReportingManagement
Committee

Executive Officers
Executive Officers Committee

Human Capital Strategy Committee
Reporting

Environmental Strategy Committee

Instruction

Instruction

Audit Department(internal auditing)General Affairs Department(compliance)
Reporting

ReportingInstruction

Coordination

Auditing

Recommendations

Reporting

ReportingInstruction

Compliance Promotion Committee
Other

Recommendations

Business Divisions

Group Companies (subsidiaries)
Auditing

35

HAZAMA ANDO CORPORATIONSUSTAINABILITY REPORT 2023
Materiality 3 Promoting sustainable management and taking full responsibility for corporate actions

Independent, Diverse, Transparent Management
Board of Directors

Nomination and Compensation Committee

external board directors) other than members who are Audit andtee to deal chiefly with procedures related to the nomination and

The Board of Directors consists of six members (including three

The Group established a Nomination and Compensation Commit-

Supervisory Committee members and four members who arecompensation of directors and executive officers.

Audit and Supervisory Committee members (including three

The Nomination and Compensation Committee is an advi-

external board directors), for a total of ten members. It makes

sory board to the Board of Directors. Its chair and the majority

execution. The Board of Directors meets monthly in principle,committee deliberates and decides on the nomination of direc-

decisions on important business matters and oversees businessof its members are independent external board directors. The

and more often as needed.

tor candidates, the appointment of executive officers, and the

The Articles of Incorporation stipulate that some or all impor-compensation of the Company’s directors and executive offi-tant decisions about business execution can be delegated tocers (excluding board directors who are members of the Audit

board directors. Some authority has also been delegated to theand Supervisory Committee and external board directors), andRepresentative Director and President. The Board of Directors

reports to the Board of Directors. Candidates for the Board ofthus focuses more narrowly on high-level discussions of more

Directors are selected in light of the overall balance of thecritical agenda items and on monitoring business execution.

Board’s skill matrix, and individuals are appointed who have theability to make accurate and prompt decisions, have a keen

Audit and Supervisory Committee

awareness of compliance, and have other appealing qualities.

The Audit and Supervisory Committee is made up of four board

directors (three of whom are external). One internal board direc-

Sustainability Committee

Supervisory Committee. Meeting monthly in principle, the com-and address ESG-related matters across the Group, the Group

tor has been appointed as a full-time member of the Audit andTo pursue more thorough-going sustainability management

mittee has the authority to direct the Audit Department, which isestablished a Sustainability Committee in June 2023. With thetasked with internal auditing, and works closely with the depart-

participation of board directors, the committee takes a compre-

ment not only to confirm the status of audits and evaluations ofhensive approach in considering and deliberating on various

the internal control system but also to audit the execution of

key ESG issues from a long-term, wide-ranging perspective.

duties by directors.

Pillars Supporting Our Initiatives 2: ComplianceInternal Compliance Promotion Framework

We established the Compliance Promotion Committee, toment various promotion activities.

advisory body to the Board of Directors. It acts as a delibera-

specifically address bribery risk, and are working to raise

operations based on the consistent policies of the Hazama

We continually check whether activities are being properly

Overseas, we have set up and are operating a system towork in conjunction with the Sustainability Committee, anawareness through educational activities in various regions.

tive and advisory body to ensure fair and transparent businesscarried out.

Ando Group. We also assign compliance officers and staff toeach division and major Group company to effectively imple-

Implementation of Compliance Activities

The Group is continuously taking actions with the objective ofing awareness of compliance points in their day-to-day opera-

in all aspects of the workplace.

video-based training and online testing, assessed compliancetions. We also distributed e-mail newsletters, conductedensuring that a range of compliance activities are carried out

awareness, and conducted group education based on job

Compliance Education

position. During Compliance Promotion Month in November,we carried out a series of measures, including a message from

Our efforts to educate employees are based on an annual

top management, lectures by outside speakers, renewed

plan designed to further increase compliance awarenessconfirmation of the code of conduct, group reading of theamong officers and employees. In the fiscal year ended March

compliance manual, and poster displays. In these ways, we are2023, we continued to confirm and evaluate complianceworking to further boost compliance awareness.

points relevant to each workplace, and augmented measures
such as asking each workplace to devise new ways of ensur-

36

HAZAMA ANDO CORPORATIONSUSTAINABILITY REPORT 2023
Materiality 3 Promoting sustainable management and taking full responsibility for corporate actions

Compliance Audit

Compliance Helpline

and at Group companies. Audit results are reported to theincluding from outside the Group, to report and consult, for

We conduct compliance audits at the head office, all branches,

We have set up a Compliance Helpline to enable people,

President, the Board of Directors, the Compliance Promotion

the purpose of early identification and correction of compli-

Committee, and the Audit and Supervisory Committee. We areance violations. In the fiscal year ended March 2023, theremaking the Group’s compliance framework more effective

were no reports that would have a material impact on man-through various measures, revising, adjusting, and improving

agement. We actively ensure awareness of the reporting

the framework as needed.

system, while placing top priority on protecting those whoreport violations.

Pillars Supporting Our Initiatives 3: Internal Control and Risk Management
Internal Control and Risk Management

We strive to maintain and operate relevant systems based on

Committee, which is an advisory body to the Board of Directors.

By resolution of the Board of Directors meeting held on

Committee regarding the effectiveness, management status,

The committee deliberates and reports to the Sustainability

our internal control system policy.

improvement measures, and other aspects of the overall inter-

June 29, 2023, we reorganized the Internal Control Committee

nal control system, taking ongoing steps to improve the system.

into the Internal Control and Risk Management Committee, toact in an advisory capacity in connection with the Sustainability

Rigorous Information Security

Information security risks are increasing daily, as advances in ICT

Physical response measures

grow more frequent and more sophisticated.

seeking to reduce risks automatically.

We are systematically rolling out and updating various tools,

technology broaden the scope of application and cyberattacks

Personnel response measures

Because the Group’s medium-term management plan calls

We carry out ongoing education, check inventory, and con-for the greater pursuit of digitalization through digital transfor-duct audits to reduce risks that are not capable of being

mation, we regard information security as a critical manage-

stopped physically.

ment issue and are bolstering measures to mitigate risk.
1 Collecting and Sharing Information

3 Examples of Specific Initiatives

Our information security measures are informed by external

Supply chain response measuresof the Ministry of Economy, Trade and Industry. We also actively

encompass partner companies, we conduct ongoing educa-

information, such as the Cybersecurity Management Guidelines

Recognizing the importance of response measures thatparticipate in various conferences related to information security.

tional activities, including for new onsite workers and educa-

In addition, twice a year we hold study sessions for alltion across the Group and partner companies during Japan’s

related divisions, bringing in outside specialists. In this way, wecybersecurity month.

Employee education

analyze the risks facing the Group and explore and implement
response measures.

Using e-learning and educational videos, we revise content

In particular, it is vital to consider the distinctive environ-depending on the risk context. We also conduct regular, ongo-

ment of the construction industry, including fixed-term projects

ing education for all employees.

Training for information security staff

and the need to conduct business at customer sites and interact
with numerous partner companies and workers.

We encourage staff to acquire IPA (Japanese information security agency) certification and train certified staff.

2 Four Pillars Supporting Our Response Measures

4 Other Measures (Preparations against Cyberattacks)

Establishing rules

We establish information security rules pertaining to actions to

In particular, we view the threat of cyberattacks as a priority

and convey these to employees.

response measures.

be taken with regard to the framework, roles, and employees,

risk, and are working to reinforce physical and operational

Centralizing asset management

We centrally manage assets related to information systems, andare steadily implementing response measures and laying the
groundwork to respond swiftly in the event of an accident.

37

HAZAMA ANDO CORPORATIONSUSTAINABILITY REPORT 2023
Materiality 3 Promoting sustainable management and taking full responsibility for corporate actions

Business Continuity Plan Recertification and Ongoing Training
The Group has formulated a business continuity plan whichsafety of personnel and construction sites, and ascertaining theearthquake. The plan is based on four objectives: 1 ensuringcontinuity plan proved effective. Going forward, we will con-extent of damage at important related entities. The businessassumes a Tokyo inland earthquake or massive Nankai Troughtinue to revise and improve the plan, anticipating large storms,

the safety of life, 2 preventing secondary disasters, 3 sup-floods, and epidemics, striving to reinforce the Group’s compre-

porting recovery of customers, and 4 helping the community.

hensive resilience.

We obtained construction company disaster-ready business

continuity certification from the Kanto Regional Development
Bureau of the Ministry of Land, Infrastructure, Transport andTourism in October 2013 and from the Kinki Regional Development Bureau in April 2017. We have since continued toobtain recertification.

Japan has seen frequent natural disasters nationwide inrecent years, which have grown more intense and more wide-

ranging. We carried out training at all Group branches in Japanin November 2022, which assumed the occurrence of a largescale local earthquake. This training posited an earthquake
occurring on a holiday, which would limit the number of

employees able to gather at each site. Activities under this

scenario included setting up a response center, confirming theGroup training in fiscal 2022.

Formulation of a Procurement Policy

5. Maintaining, improving quality and ensuring safety

The Group’s business activities depend on collaboration with

To realize safe, secure, high-quality “good building opera-

partners. We recognize that engaging in procurement activities

tions,” which are the basis of the Group’s business activities,

that align with our corporate social responsibility (CSR) neces-

we will engage in procurement based on the ability to main-

sitates actions up and down the supply chain. We have formu-

tain and improve the quality of the buildings, services, andlated a Procurement Policy and are working with partners toother products we provide and ensure safety.

promote CSR procurement.

6. Contribution to local communities

Procurement Policy

Fully aware that companies are members of society, we will

1. C ompliance with laws, prevention of corruption, elimination

pursue procurement activities that contribute to the devel-of antisocial forces

opment of local communities and local economies together
with our partners.

We will comply with all relevant laws and regulations, international rules, internal rules, and social norms, and conduct

7. Appropriate management of information and intellectualand corruption, while taking a resolute stance against antiso-

We will appropriately manage and protect confidential infor-propertysound procurement. We will eliminate all forms of bribery

mation, personal information, and customer information

cial forces that threaten the order and security of civil society,obtained through our procurement activities. We will also

and will sever all relationships with such forces.

2. Implementation of fair and honest procurement

appropriately manage and use intellectual property held by
the Group, without illegally obtaining, using, or infringing

When choosing business partners, we will evaluate eachthe intellectual property of third parties, including patents,

candidate comprehensively and fairly and make honest

utility models, designs, or trademarks.

choices, considering factors such as quality, safety, price,

8. Building good relationships with business partners anddelivery date, and technical capabilities.

mutual flourishing

3. Respect for basic human rights and consideration foroccupational health and safety

Through our procurement activities, we will deepen mutual

understanding with our business partners and strive to build

We will respect basic human rights, including eliminating

good relationships. We will work together with partners tochild labor, forced labor, and other unfair labor practices ashone technical capabilities and develop human resources,well as various types of discrimination and harassment. We

aiming for the sustainable enhancement of corporate value.

will conduct procurement that is sensitive to working environments and health and safety.

4. Consideration for the environment

In accordance with the Environmental Policy of Hazama Ando,
we will procure materials that contribute to conservation of
the environment and reduction of environmental impact.

38

HAZAMA ANDO CORPORATIONSUSTAINABILITY REPORT 2023
Materiality 3 Promoting sustainable management and taking full responsibility for corporate actions

Pillars Supporting Our Initiatives: Respect for Human Rights
Approach to Human Rights AwarenessIn the course of respecting the basic human rights guaranteed

administratively by the Personnel Affairs Department, thewe are engaged in concrete activities to address a range ofspans the Group, maintains a harassment consultation desk andHuman Rights Awareness Committee, an organization thatto all people and fulfilling our corporate social responsibilities,

carries out various human rights awareness activities. Should ahuman rights issues, including social discrimination.

human rights violation be suspected, we respond promptly

We strive to ensure that the human rights of all officers andwhile protecting the rights of the person seeking consultation.

employees and everyone we come into contact with throughour business are thoroughly respected. Specifically, supported

Thorough Respect for Human Rights

The tasks of the Human Rights Awareness Committee include

ment of internal environments and systems, 4 supply chain man-

exploring and determining annual action plans. Moreover, theagement, 5 follow-up surveys, and 6 external disclosure. We

human rights framework we have put in place encompasses all

also work to rectify any human rights violations we may cause.

prompt action should a human rights issue arise.

many years now. Other initiatives include rigorously fair hiring

human rights, we announced a Human Rights Policy in Aprilgans (560 submissions in 2022), and pursuing activities withGroup companies, and includes a consultation desk to enable

We have taken other actions to eliminate harassment forWith the aim of adequately fulfilling our duty to respectand selection, asking employees to submit human rights slo-2023. The policy identifies seven priority human rights issues: 1

various organizations.

forced labor and child labor, 2 discrimination, 3 harassment,

4 occupational health and safety, working environments andHarassment Prevention Declaration

working conditions, 5 freedom of association, 6 rights of he Hazama Ando Group will never tolerate harassment
Tin the workplace.
We have a harassment consultation desk. We willprotect privacy and deal with matters promptly
and fairly.
We will not treat disadvantageously persons seeking
consultation about harassment or persons who cooperate with fact-finding.

foreign workers, and 7 local communities. We will offer education and training in these areas to prevent human rights viola-tions from occurring and will continue to improve our internal
environment and systems.

We have also started human rights due diligence initiatives

and are implementing a regular cycle involving the following
steps, including management of the supply chain: 1 humanrights impact assessment, 2 education and training, 3 develop-

39

HAZAMA ANDO CORPORATIONSUSTAINABILITY REPORT 2023
Materiality 3 Promoting sustainable management and taking full responsibility for corporate actions

Engaging in Dialogue with Stakeholders
Disclosure to Investors

The Group holds results briefings for analysts and institutional
investors twice a year. Explanations directly from top management cover Group performance, the current situation, andforward-looking management strategies. In the fiscal year
ended March 2023, we held the second-quarter briefing via
online video conference due to concerns about COVID-19, andheld the year-end briefing in a hybrid in-person and online
format. Both drew high attendance. Briefing materials can beviewed on the Group’s website.
At the same time, based on Tokyo Stock Exchange disclosure standards, we file disclosure information on the Timely
Disclosure Information Transmission System (TDnet) and post it
on the IR Library page of the corporate website.
We are working to enhance our English-language disclosure to provide overseas investors with information in a timely
manner. In the fiscal year ended March 2023, in addition to theRelevant SDGs

timely disclosure of financial results in English, we proactively
disclosed non-financial information in forums such as our Corporate Report and Sustainability Report.

Results briefing (online and offline).

Sharing Technology and R&D Achievements: Taking Part in Exhibitions Nationwide
Hazama Ando actively participates in exhibitions across thecountry to showcase a range of technologies in both the civilengineering and building construction fields. Our exhibits feature technologies incorporating ICT and AI that improve productivity, safety, and the quality of buildings through the digitaltransformation of construction techniques; technologies that
support the renewal of expressways; carbon reduction, green
infrastructure, and other environmentally friendly technologies;
and technologies that boost energy efficiency in buildings.
As in previous years, we set up booths mainly at exhibitions
held by various regional development bureaus in Japan. We
also took part in events that drew exhibitors and visitors fromoutside the construction sector, such as a Global Warming
Prevention Exhibition and a Green Infrastructure Industry Exhibition. In this way, we are actively gaining greater understandDate
May 2022
May 2022
May 2022

June 2022

August 2022

August 2022
September 2022

Exhibition
6th Japanese Congress for Infrastructure Management Kinki
Headquarters Forum 2022

Highway Technology Fair 2022.
Organizer

Venue

Japanese Congress for Infrastructure Management Kinki HeadquartersOsaka

WOODRISE 2021 BUSINESS SESSION

Japan International Association for the Industry of Building and Housing

Tokyo

Engineering Exhibition Tohoku ’22

Engineering Exhibition Tohoku Planning Committee

Miyagi(71st) Japanese Society of Irrigation, Drainage and RuralEngineering Conference Lecture (Ishikawa Conference)

Japanese Society of Irrigation, Drainage and Rural Engineering
Conference Secretariat

Ishikawa

Global Warming Prevention Exhibition 2022

RX Consortium Exhibition 2022

Soil and Groundwater Remediation Technology Expo

October 2022

Construction Technology Fair 2021 in Chubu

October 2022

Kyushu Construction Technology Forum 2022

October 2022

ing of our initiatives while exchanging technical knowledge
with people across a range of fields.

Nippo Business Co., Ltd.

Construction RX Consortium

Tokyo
Tokyo

Sankei Shimbun, Soil and Environment Center

Tokyo

Kyushu Construction Technology Forum Planning Committee

Fukuoka

Ministry of Land, Infrastructure, Transport and Tourism Chubu Region
Development Bureau

NagoyaConstruction Technology Forum 2022 in Chugoku

Construction Technology Forum Planning Committee

November 2022

Construction Technology Exhibition 2022 Kinki

Osaka

November 2022

Construction Technology Expo 2022 Kanto

Nikkan Kensetsu Kogyo Shimbun (Daily Engineering & ConstructionNews), Kinki Construction Association

December 2022

JAPAN BUILD 2022 Tokyo

Express Highway Research Foundation of JapanTokyo

November 2022

November 2022

2022 Chugoku Regional Construction Technology Development Exchange

Highway Technology Fair 2022

Chugoku Regional Construction Technology Development Exchange
Planning CommitteeTokyo

RX Japan Ltd.

Tokyo

1st Green Infrastructure Industry Exhibition 2023

Nikkan Kogyo Shimbun

February 2023

27th Earthquake Technology Expo Yokohama

Earthquake Technology Expo Planning Committee

International Nanotechnology Exhibition & Conference 2023

OkayamaNikkan Kensetsu Kogyo Shimbun

February 2023
February 2023

Hiroshima

Nano Tech Executive Committee, JTB Communication Design

40

Tokyo
Tokyo

Kanagawa

HAZAMA ANDO CORPORATIONSUSTAINABILITY REPORT 2023
Materiality 3 Promoting sustainable management and taking full responsibility for corporate actions

Hazama Ando Foundation Initiatives

With the desire to encourage initiatives related to securing andtraining workers for specialist contractors, we established theHazama Ando Foundation in April 2020 to offer grants for suchinitiatives. In the fiscal year ended March 2023, the Foundation
chose seven projects to subsidize from the fund it set up to
support the PR activities of specialist contractors.

One company used the funds to revamp its logo and com-pany uniforms to mark its 50th anniversary. Instead of out-

sourcing the work to a design firm, it commissioned students

from a local art college, incorporating fresh ideas from young
people into a new design that quickly won the affection of

employees. The Foundation posts such case studies on its website to highlight outstanding initiatives that serve as a modelfor other companies. To contribute to advancement in theconstruction industry and the sustainable growth of the Group,
we will seek through the Foundation’s activities to support thehuman resource development needed to move the construction industry forward into the future.

Presentation by local art college students to the company.

Collaboration with Hazama Ando Cooperative Association
The goals of the Hazama Ando Cooperative Association are to

and opinions with each association branch to implement ation, improve construction quality and technology, and, at theworking style reforms. In this way, we are further advancing

system of eight or more closures in four weeks, a key part ofstrive to put health and safety actions at the heart of construc-and gaining understanding for Group initiatives while reflect-

same time, pursue the mutual flourishing of the Group anding the viewpoints of association members in Group measures.

association members. In addition to the head office, the asso-

ciation has 11 branches nationwide. Its roughly 1,300 member
companies, who make up the core of the Group’s construction
operations, are engaged in various activities.

Particularly with regard to safety, under Hazama Ando’s

health and safety policy of “putting safety above all,” the Groupand the association together carry out safety activities on a daily
basis. Every June, we also jointly sponsor a nationwide Safety

Promotion Rally, to renew our efforts to further improve healthand safety management standards and eliminate accidents.
The entire construction industry in Japan is working tosupport the career advancement of construction workers.

Together with the association, the Group is pursuing initiatives
such as supporting registration of business operators andskilled workers. In addition, we regularly exchange information

Nationwide Safety Promotion Rally (June 2023).

AHAD Architectural Design Website Section Launched
In March 2023, we launched a new Ando Hazama Architectural
Design (AHAD) section on the corporate website. Based on theconcept of “thinking and creating together,” the site posts

collections of design-build project achievements, feature articles, and more.

We will continue to deliver the latest useful information to

stakeholders by enhancing content and making ongoing
renewals to the site.

AHAD section on the corporate website (Japanese only).

https://www.ad-hzm.co.jp/lp/ahad/
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