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Creation of Value and Policies

1Realization of a Sustainable and Environmentally Friendly
Society
TAISEI Green Target 2050

Environment

Decarbonized Society
Recycling-Oriented Society
Nature Co-Existing Society
Forest Resources / Forest Environment
Water Resources / Water Environment
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Environmental Due Diligence
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Environment That Is Good to Work in

SocialHuman Resource Development
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Ensuring Quality and Improving Technology
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Resources
Technical Development for Realizing a Sustainable Society
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Social Data

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Corporate Governance

GovernanceRisk Management
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Management of Information and Intellectual Property Rights
Corporate Governance Report
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Activity Reports(ISO 26000 core subjects)

Organization GovernanceCorporate GovernanceFair Operating Practices

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Top Commitment
Sustainability Management
Message from Chief Sustainability Officer (CSO)
Sustainability of the Taisei Group
Creation of Value and Policies

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Labor Practices

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The seven core subjects of ISO 26000

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ESG Data and Comparisons

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Materiality and SDGs
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Governance(G)Corporate GovernanceRisk Management

ISO26000 Comparison Table
Information Disclosure Based on TCFD
Recommendations

Fair Operating Practices
Realization of a Sustainable and Environmentally
Friendly Society
Environmental Due Diligence
Environmental Data
Independent Assurance
Information Disclosure Based on TCFD
Recommendations

Inquiries

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Top Commitment* The content of this page was originally posted on Annual Report 2023

Introduction
As mentioned at the outset of this report, I wish to reiterate our apologies for the recent incidents related to the failure tosatisfy steel erection accuracy requirements and the delay of construction schedule in the ongoing construction projects.
Restoring the trust we have lost due to each incident will require an exceptional effort, and we anticipate a challenging
journey ahead.
In order to overcome this difficult situation and lead to new growth, all of the Group’s executives and employees must alignEnvironmental Social Governance Report 2023

5

their minds under the mission of “contributing to the development of a resilient society where people can live affluent andcultural lives,” and approach their daily work with integrity, valuing the basics of quality, process, and safety. It is importantthat we continue to provide our clients with value, satisfaction, and excitement that exceed their expectations andimaginations, and solve social issues through our corporate endeavors.
As President and Chief Executive Officer, I will take the lead and do my best to restore the trust.

Progress of the Medium-Term Business Plan (2021–2023)
Construction investments, driven by steady public investment and brisk private capital investment mainly in the
manufacturing industry, in anticipation of a post-COVID surge of business in mind, are now recovering to the levels
exceeding pre-COVID ones. However, as sharp rises in the prices of a wide range of construction materials tremendously
affected the profit/loss of construction projects, the management environment surrounding the Taisei Group was extremely
harsh.
Under these circumstances, FY2022, the second year of the Medium-Term Business Plan (2021–2023), saw the Group’s
net sales increase, owing to a steady progress in the initial backlog of projects for the fiscal year. However, concerning the
profit/loss, operating profit and other figures were lower than the previous fiscal year’s results, due to the recording of costs
related to the corrective work for the aforementioned failure to satisfy steel erection accuracy requirements, etc., and thedecline in profit margins in the construction business, affected by the higher prices of construction materials.
The forecast for FY2023, the concluding year of the Medium-Term Business Plan, appears to be less promising with theGroup’s net sales, operating income, and net income expected to fall short of the numerical target of the Medium-TermBusiness Plan. The shortfall in operating income can be attributed to three primary reasons. The first is “the delay inestablishing production systems.” The current Medium-Term Business Plan aimed to increase profits by expanding businessvolume on the assumption that certain profits could be secured, but the expected improvement in productivity and the
securement of sufficient personnel were not achieved. The second is “the impact of several large low-profit construction
projects.” As competition intensified due to the expansion of the size of projects, profits were depressed by several projects
that were awarded at low profitability. The third is a “delay in passing the soaring prices of construction materials on to ourcontract prices with clients.” Profit margins declined, due to a failure to pass the soaring prices of construction materials andhigher oil costs at some group companies on to the contract prices, in design and construction projects that required time
between the selection of a contractor and the commencement of the works.
Based on these unachieved factors, we have been working on the following measures since this fiscal year, ahead of thenext Medium-Term Business Plan. The first step is “to secure an appropriate business volume and to rebuild the production
systems.” Based on the working environment of our employees, we will operate, balancing between the volume of
construction projects and profitability. In addition, considering the profit decline due to heightened competition after the
Tokyo Olympics, we will re-enforce our profit-oriented approach, apply strict screenings upon receiving orders, and assign
personnel to priority areas. Finally, we will continue persistent negotiations to pass on to prices in response to the surging
costs, and endeavor to restore profits.

Towards Enhancement of Corporate Value andSustainable Growth

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Over the years, the Taisei Group has faced numerous challenges. Each time, our executives and employees have overcome
the difficulties together and taken those experiences in further growth. In our current challenging situation, it is crucial todraw upon the resilience and adaptability—the DNA we have inherited from our predecessors—and transform thesechallenges into opportunities, and embrace challenges, using our past failure as stepping stones to future growth. I will leadmyself and foster an environment where our executives and employees can confidently address new challenges.
For the Taisei Group’s construction business, we firmly believe in the pillars of quality, process, and safety, and that the key
issues are “to build a business foundation for sustainable growth” and “to enhance human capital.” The details are explained
as follows.

1. Quality, Process, and Safety: To Work with Integrity and Pride as
an Engineer
For the Taisei Group, which plays a pivotal role in constructing social infrastructure through its core construction business,quality, process, and safety are fundamental themes, and serve as a foundation for growth.
The Taisei Group’s projects are important social infrastructure that supports peoples’ lives, and our business can only thrive
when it garners the trust of the public. As engineers dedicated to societal contributions, while upholding the legacy ofcraftsmanship, all executives and employees involved in construction work must reaffirm the importance of the basics andwork with pride and integrity. By consistently and diligently making these efforts, we hope to secure the trust among ourclients and society, and build a stronger foundation for growth. As to quality, the entire company is currently working to reenforce compliance and strengthen the system to ensure the quality control process functions. All executives andemployees will return to their roots of TAISEI QUALITY—Quality is our pride—again, and implement appropriate quality
control.
As to process, progress and problems of each construction project are to be shared among the head office, branch offices,and worksites, and we will ensure a robust backup system for worksites to ensure reliable process management.
As to safety, based on our policy “Safety first,” our Medium-Term Business Plan (2021-2023) emphasizes the objectives of“Zero fatal accidents and zero serious accidents.” We are working to improve safety and health management, in order tocreate a working environment where everyone involved in the Taisei Group’s business can work with peace of mind. In
2022, the accident frequency rate of the Company alone (a number that indicates the frequency of injuries) was 0.31,
representing an improvement of over 50% in the past decade. We will continue to carry out our safety and healthmanagement with diligence and sincerity, ensuring safety first.

2. To Build a Business Foundation for Sustainable Growth:
For Exceeding Clients’ Expectations and Imaginations

1. To Promoting Businesses That Contribute to Building a Resilient Society
The Taisei Group’s path to further growth is to invest resources from a medium- to long-term vision in each of the
CDE3(cubed) (Construction, Development, Engineering, Energy, Environment) areas, to refine its technologies andEnvironmental Social Governance Report 2023

7

businesses, to continue to provide value, satisfaction, and excitement that exceeds clients’ expectations and imaginations,and to contribute to society by supporting growth of the wellbeing of even more stakeholders. We believe that our continued
efforts to pursue these goals will lead to an enhancement of the Group’s corporate value and sustainable growth.
With regard to the building construction business and the civil engineering business that form the core of CDE3(cubed) in
the Taisei Group, it is important to work with a passionate sense of mission to contribute to society as well as to satisfy andimpress clients in any construction projects. While observing the basic principles of quality, process, and safety, we will
promote the transformation of our production system through DX (Digital Transformation), as well as the development ofinnovative technologies to solve environmental and social issues, thereby enhancing our competitive advantage. At thesame time, we will work to enhance our capabilities to design and make proposals that exceed our clients’ expectations andimaginations. With regard to the overseas construction business, we are working to establish a system that ensures profits
in priority countries and regions based on local interests.
The development business and the engineering business are positioned as a growth engine for the Taisei Group. In thedevelopment business, we are building a stable profit base by optimizing our real estate portfolio and pursuing investment
efficiency. In the engineering business, we are making efforts to expand our business areas by taking advantage of thestrengths we have cultivated in the pharmaceutical and food products sectors. In both fields, we hope to accelerate growthby maximizing the Taisei Group’s comprehensive capabilities.
Regarding the area of energy and environment, we aim to be a frontrunner in the environmental field.
We have made organizational change for initiatives such as “Carbon Neutrality,” “Circular Economy,” “Nature Positive” and“Renewable Energy,” and are working on them. In all fields, the key concept of contributing to the development of a resilient
society is to solve social issues through CSV (Creating Shared Value), namely through corporate activities. In terms ofstriking a balance between social and corporate values, the Taisei Group can substantially contribute to society through theconstruction of social infrastructure. The social infrastructure we provide is designed to last, enduring for decades—50, 100
years or even longer. Looking ahead, we will implement CSV by adding social value to the structures we create and bycommercializing them.

2. To Realize Sustainable and Environmentally Friendly Society andPromote Regional Cooperation
We believe that “To realize a sustainable and environmentally friendly society” and ”To Promote of regional cooperation” areparticularly important areas in contributing to the resolution of social issues.
In March of this year, the Taisei Group revised its Environmental Policy and the Group’s long-term Environmental Targets.
Towards the Realization of a Sustainable and Environmentally Friendly Society, we are deepening our commitment to three
key areas: “Carbon Neutrality,” “Circular Economy,” and “Nature Positive.” Through these initiatives, we endeavor tocontribute to society by conducting our businesses.
Regarding carbon neutrality, our specific goal is to achieve a 2050 target of “virtually net-zero” CO2 emissions from businessactivities, not only the emissions of Scope 1 and 2, but also those of Scope 3 (which includes the supply chain). We will
pursue further development and dissemination of a wide range of Net Zero Energy Building (ZEB) technologies such as
Newly constructed ZEB, Green Renewal ZEB, Net Zero Energy Factory (ZEF), Net Zero Energy Houses (ZEH), and Net
Zero Energy House Apartment Buildings (ZEH-M), as well as environmentally friendly concrete “T-eConcrete®” and steel
materials with reduced CO2 emissions. We have also begun to verify the results of the “T-ZCB (Zero Carbon Building)”,
which aims to achieve “virtually net-zero” CO2 emissions in the life cycle of buildings. We will hone our decarbonization

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technologies in each phase: “Zero Carbon Design” in the procurement phase, “Zero Carbon Construction” in theconstruction phase, and “Zero Carbon Operation” in the operation phase.
Regarding the regional cooperation, being faced with the challenges of a declining population and the advent of a superaging society, the national and local governments are making various efforts to enable each local community to takeadvantage of its unique characteristics to create an autonomous and sustainable society. We, as a company, carry an
important responsibility to cooperate with local communities to solve problems and contribute to the revitalization of local
communities. Taking the construction business as a foundation, we hope to utilize the Taisei Group’s comprehensive
capabilities in engineering technology and environment-related technologies, and work together to resolve issues from a
mediumto long-term perspective.
Achieving profitability while making significant societal contributions is challenging. Yet, overcoming this challenge provides
us with a unique advantage, strengthening the Taisei Group's competitive edge.
However, if it can be realized despite its difficulties, it will be an advantage that cannot be easily copied, thereby leading to acompetitive advantage of the Taisei Group. This April, we initiated a new internal framework to bolster regional collaboration,
and we are dedicated to building partnerships across various industries.

3. To Accelerate Open Innovation
The source of the Taisei Group’s competitive advantage is its technological expertise. Technological progress in the world is
becoming faster and changing more discontinuously than we imagined. Relying solely on traditional practices and an inhouse mindset would not allow us to keep up with this rapid pace of change. Innovation arises not just within our industry or
adjacent sectors, but also from merging our expertise with insights from diverse industries.
We constantly brush up the wide range of technologies and know-how related to construction and production processes,
facility management, and decarbonization. These have been cultivated over the years in the tradition of manufacturing. We
are proud of the mindset of the Taisei Group employees being the best in the industry, as they never stop aiming for evenbetter results. Equipped with advanced technology and a fervent commitment as two main wheels, we aim to identify latentsocietal needs that many might overlook. By collaborating with partners from various industries who share our vision, we
seek to accelerate open innovation, and to create unparalleled value that satisfies and delights our clients.

4. To Take Initiatives across the Supply Chain
For the Taisei Group, our subcontractors and suppliers are not just crucial partners in delivering work that exceeds ourclients’ expectations and imaginations; they are allies in our mutual endeavors to address societal challenges throughbusiness endeavors. We aim to fortify our collaboration with the Soyukai, a collective of key cooperative companies, and theTaisei Corporation Safety, Health, and Environment Cooperation Association, which encompasses all partner firms. This
collaborative effort seeks to enhance a shared commitment to our Group’s mission of “to contribute to the development of a
resilient society where people can live affluent and cultural lives,” and to advance initiatives throughout the supply chain.
At this moment, the construction industry is grappling with significant hurdles, including “the shortage of construction
workers due to the shrinking working population and aging society,” and “the legal upper limit on overtime working hours
from April 2024, with penalties for infringements.” As a member of the Japan Confederation of Construction Industry, we are
actively championing measures across the industry. Collaboratively with Soyukai and the Taisei Corporation Safety, Health,Environmental Social Governance Report 2023

9and Environment Cooperation Association, we will pool our insights to prevent extensive work hours and remain worksites
closed during holidays. Beyond that, our focus extends to enhancing the compensation and working conditions for skilledconstruction workers, all in our pursuit of providing an attractive work environment.

3. To Enhancing Human Capital: To Invest in the Group’s Future

1. To Improve Employees’ Job Satisfaction and Engagement
To fulfill the Taisei Group’s mission, it is paramount that our employees and their families feel high level of well-being. For
this well-being to be realized, it is vital that the Company understands every individual employee, offering each of them
opportunities to maximize his/her unique strengths and talents. This ensures that each member of our team places trust in
the Company and is motivated to contribute proactively and independently towards our shared goals.
When the Company and its employees are tied each other with the mind of strong engagement, we can truly harness ourcollective potential to deliver exceptional value, surpassing our clients’ expectations and imaginations. In this regard, ouremployees can be rightly termed as our “human capital.” The driving force enhancing the Taisei Group’s corporate value
resides in each employee’s sense of purpose and fulfillment in their work. As the President, one of my top priorities is tocreate an attractive working environment that is good for all our employees to work in.
Last fiscal year, we started engagement survey, administered by an external consultant, which targeted employees acrossall the companies within the Group. We have taken the results of this survey to heart, pinpointing areas of discrepancy
between our current state and our ideal one. From these insights, we are rolling out initiatives tailored to boost job
satisfaction, taking into account factors such as age, position, and organizational affiliation.
Moving forward, we will periodically evaluate the level of employee engagement, striving relentlessly for improvement. Our
goal is to amplify the psychological safety within our workplaces, fostering an environment where every employee can takepride in both the company and their individual roles. In such an atmosphere, they can, with genuine enthusiasm, makemeaningful societal contributions through their exceptional work.

2. To Promote Women’s Active Participation and Advancement, andEnsuring Diversity in Human Capital
For a long time, the Taisei Group has instituted a specialized section in Human Resources Department to foster an attractive
working environment that is good for a variety of employees to work in, especially focusing on enhancement of women’s
active participation. We have been steadily increasing the number of female engineers and female employees in managerial
positions, yet when compared to other industries, there is still significant potential for improvement. In a society that is
rapidly changing, becoming complicated, and where values are diversifying, maintaining a workforce predominantly of “newgraduate Japanese men with no job change experience” can be a latent risk. In order to adapt to these societal shifts, grasp
business opportunities, and achieve sustainable development, we are committed to further bolstering the roles of our female
employees, refining our career hiring processes, and actively recruiting foreign national employees.
Moreover, as part of our strategy to create an environment conducive to women’s active participation, we have placed great

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emphasis on encouraging male employees to take childcare leave. Due to our concerted efforts, the percentage of male
employees taking childcare leave has consistently reached 100% since the fiscal year of 2017, with the average number ofdays for childcare leave reaching 11.6 days (as of the end of March 2023). Moving forward, we aim to maintain this 100%
uptake and increase the average number of days for childcare leave taken.
My vision is to establish a “company where employees can confidently choose to marry, have children, and raise theirfamilies without any hesitation.” Towards this end, we are dedicated to creating an attractive workplace where a variety of
employees actively work in, comprehending the evolving needs of society and our clients through varied lenses, andconsistently delivering superior quality work.

3. To Enhance Human Capital Development
We regard human capital development as a crucial investment in the future of the Taisei Group. In nurturing our employees,
our approach transcends mere technical proficiency; we are committed to personal development considering the whole
personality of each employee. In this era of rapid change, increasing uncertainties, and compounded complexities wherepredicting the future is challenging, succeeding in business requires not just logic but also a rich sensibility, visionary
thinking, and creativity. Improving these qualities is contingent upon mastering the liberal arts.
Moreover, in a world where there are no right answers, the essence of “Fair Play,” which underpins the very foundation ofbusiness, assumes even greater significance. We aim to support our employees not just in their immediate roles but also in
personal growth by broadening their knowledge base and familiarizing themselves with liberal arts. This approach ensuresthey can deliver work of superior quality with utmost integrity and, concurrently, lead a fulfilling life.
We have an enduring tradition of recognizing and rewarding exceptional business achievements through our internal award
system. In addition, we founded the “TAISEI VISION 2030 Award” two years ago to provide timely accolades for remarkableendeavors that resonate with our corporate aspirations.
This includes businesses that make substantial contributions, even if they don’t always receive the spotlight; proactive risktaking and innovative efforts; and societal contributions that enhance the Company’s credibility. We anticipate that thisrecognition system will spur heightened engagement and motivation among our employees, leading to a constructive cycle
where they consistently challenge themselves to produce better results while also striving for personal growth.
Last year, we introduced the “TAISEI Next-Generation VISION Proposal Working Group,” primarily led by our younger andmid-tier employees. This group was entrusted with offering recommendations on initiatives imperative for the realization of
the “TAISEI VISION 2030.” Besides leveraging the fresh perspectives and candid feedback of the younger generation in
management strategies, we aspire to consistently channel our efforts towards the professional development andenhancement of awareness among our upcoming talent. This includes involving them in activities like revising our Materialityand drafting our forthcoming Medium-Term Business Plan.
Regarding the training of our future managerial candidates, some potential employees were chosen to participate in theManagement Committee as observers. This enabled them to gain firsthand insights into intricate managerial decisionmaking processes and partake in the meeting to exchange opinions with External Members of the Board, enriching theirunderstanding of our business operations, strategic direction, and overarching corporate governance. Furthermore, we
expect these chosen individuals to ardently pursue liberal arts education and cultivate a deep-seated appreciation for the
principles of truth, virtue, and aesthetics. Our unwavering commitment is to systematically develop the managerial leaders of
tomorrow, ensuring the Taisei Group’s enduring prosperity.

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Closing Remarks -Marking Our 150th Anniversary as a
Launchpad for Future Leaps
The Taisei Group celebrates 150th anniversary of its foundation this year. This momentous occasion has been madepossible due to the tireless efforts of our predecessors and the trust and recognition from our clients and stakeholders. We
owe them our deepest gratitude. As we move forward, our commitment to sustainable development remains unwavering,emphasizing open dialogue with all our stakeholders.
Our founder, Kihachiro OKURA, was characterized by his “insight to read the changing times,” “courageous spirit ofadventure underpinned by thoughtful consideration,” and “innate pioneering spirit to embrace unprecedented challenges.”
Navigating through the turbulent transitions from the Meiji to the Showa era, he ventured boldly into uncharted businessterritories. He played instrumental roles in establishing and managing a variety of companies including the Taisei Group,leaving an indelible mark on the modernization and growth of Japan. Today, we inherit and honor his legacy, cherishing theTaisei Spirit of “Active and Transparent Culture,” “Value Creation,” and “Evolution of Tradition.” At a time when the TaiseiGroup faces a variety of challenges, it is imperative for us to reinforce the Taisei Spirit. We are poised to seize this milestone
year, our 150th anniversary, as a springboard towards a prosperous future that spans another 50 or even 100 years.
Recognizing the inherent risks and challenges of our current situation, all our executives and employees work together toactualize the Taisei Group Philosophy: “To create a vibrant environment for all members of society,” while upholding our
mission to “contributing to the development of a resilient society where people can live affluent and cultural lives.”
We are grateful to all our stakeholders for the continued and invaluable cooperation and support.

Copyright TAISEI CORPORATION All Rights Reserved.

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Sustainability Management

Message from Chief

Sustainability of

Sustainability Officer (CSO)

the Taisei Group

Materiality and SDGs

Participation in Initiatives

Creation of Value and Policies

The seven core subjects of ISO
26000

Copyright TAISEI CORPORATION All Rights Reserved.

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Message from Chief Sustainability Officer (CSO)* The content of this page was originally posted on Annual Report 2022（Integrated Report）

Addressing sustainability, which is represented by key terms such as SDGs (Sustainable Development Goals) and ESG, is a
global issue, and it is becoming increasingly more important for companies to increase their sustainable value. The TaiseiGroup has identified eight material issues (Important issues to be addressed) as the Materiality in promoting sustainability
management. In response to changes in the external environment and the interests of society and stakeholders, we will
review the Materiality periodically and on an ongoing basis to realize a sustainable society.
In April 2022, the Sustainability Division (Integrated) was established to promote sustainability management, and I was
appointed as CSO (Chief Sustainability Officer) to lead its activities. The establishment of an organization and a position thatbears a name that includes “sustainability” exemplifies the Group’s commitment to placing importance on sustainability.
In November 2021, the Group formulated the “Fundamental Policy on Sustainable Development” and the “Human
Resources Development Policy (Diversity & Inclusion Policy)” to further promote initiatives to realize a sustainable society. In
February 2022, it revised its long-term environmental target “TAISEI Green Target 2050” to accelerate initiatives toward
decarbonization. In addition, in conjunction with the establishment of Sustainability Division (Integrated), the CSR
Committee chaired by an External Member of the Board was renamed the Sustainability Committee. Further, the “Human
Rights Policy” was revised to establish the framework for human rights due diligence and stipulate that it be carried out on
Environmental Social Governance Report 2023

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an ongoing basis. Under these policies and organizational structure, we will promote sustainability activities from a variety ofperspectives.
The Medium-Term Business Plan (2021-2023) sets key sustainability issues under five themes: “Energy and Environment,”“Safety,” “Technical development,” “DX,” and “Workstyle reform and Corporate governance.” Within the Sustainability
Division (Integrated), the Sustainability Management Promotion Division, which is in charge of all strategic functions, and the
Clean Energy and Environment Business Promotion Division, which is responsible for project promotion functions, havebeen established with the common mission of promoting carbon neutral operations, a goal set out under “Energy andEnvironment,” and will be making every effort to achieve this goal.
The Taisei Group Philosophy of “to create a vibrant environment for all members of society” is indeed a message thatprecisely describes sustainability. We will continue to engage in dialogue and cooperation with our stakeholders that consistof shareholders and investors, customers, business partners, employees, and local communities, in order to achievesustainable development for society and the Group.
Jiro TANIYAMA
Senior Managing Executive Officer,
Chief of Sustainability Division (Integrated);
Chief of Clean Energy & Environment Business Promotion Division

Copyright TAISEI CORPORATION All Rights Reserved.

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Sustainability of the Taisei Group

Sustainability Management Framework
Key Stakeholders

Sustainability Management Promotion System

Participation in Initiatives

Sustainability Management Framework
The Taisei Group operates under the Group Philosophy of “to create a vibrant environment for all members of society,” aswell as three tenets of the “Taisei Spirit”: “Active and Transparent Culture,” “Value Creation,” and “Evolution of Tradition” inpursuit of the Group Philosophy. The Taisei Group’s Fundamental Sustainability Policy is to realize “sustainability
transformation (SX)” by addressing sustainability challenges through businesses centered on the construction industry. The
goal is to contribute to the development of a resilient society where people can live affluent and cultured lives.
Through our business activities, by producing quality social capital and addressing the challenges faced by our clients andsociety, we aim to foster a cycle of increasing both corporate and social value. Our aspiration is to achieve sustainablegrowth alongside society.

Refer to:Toward Value Creation and Sustainable Growth

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Click here for detail

Sustainability Management Promotion System
The Sustainability Committee has been set up as a committee within the Board to bolster sustainability
throughout the Group. This committee deliberates on significant policies and specificmanagement

measures concerning sustainability

challenges, enhancing the effectiveness of our initiatives.
Moreover, under the umbrella of the Management Committee, we have instituted various committees,
Sustainability Promotion Committee and the Personnel Committee, to discuss crucial

such as thematters related to sustainability,

ensuring discussions are both timely and comprehensive.
To centralize responses to sustainability challenges, in April 2022, the Group founded the Sustainability Division(Integrated). Additionally, the chief of this division was appointed as the Company’s Chief Sustainability Officer (CSO),
amplifying our efforts to tackle these challenges.

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Achievements of the Sustainability Committee in Fiscal 2022
The Sustainability Committee, Committee within the Board, was held twice – in August and January – in FY2022. The
deliberation items were as follows.
Revision of the Environmental Policy, etc.
Update of Information disclosure based on the TCFD recommendations
Introduction of the Environmental Due Diligence and revision of the Human Rights Due Diligence
Establishment of the annual environmental targets
Confirmation of the operation status of the Action Guidelines for Taisei Personnel and the Taisei Group as a Whole and the
Corporate Ethics Helpline System
Publication of the Annual Report, etc.

Committee members(July,2023)

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Chairperson

External Member of the Board

Members

President and Chief Executive Officer, Representative Director;
Executive Vice President, Chief of Marketing & Sales Division (Integrated),
Member of the Board, Senior Managing Executive Officer, Chief of Marketing &Sales (Civil Engineering) Division
Member of the Board, Managing Executive Officer in charge of Building
Construction Business Strategy, External Member of the Board

Observer

External Audit & Supervisory Board Member
Chief of Sustainability Division (Integrated),
Chief of Sustainability Management Promotion Division

Secretariat

Sustainability Management Promotion Division, Sustainability Planning
Department

Committees within the Board
The following Committees within the Board have been established and convened as necessary, as prior consultation bodies
in order to invigorate and substantiate the deliberations by the Board.

Committees within the Board (As of July 1, 2023)
Name

Terms of reference

Name of authorized member
Chairperson

Atsuko NISHIMURA*1

Title

Member of the Board

ViceGovernance
SystemReviewCommittee

To strengthen andchairperson

Masahiko OKADA

expand the governancefunctions of ourcompany and the Group

Title

Senior Managing Executive Officer,
Representative Director

as a whole
Shigeyoshi TANAKA Yoshiro AIKAWA
Members

Masahiko OKADAAtsuko NISHIMURA*1

Fumiya KOKUBU*1 Tsutomu KAMIJO*1
ObserverTakashi HAYASHI

Environmental Social Governance Report 2023

Masamitsu MIURA*2

19

Name

Terms of reference

Name of authorized member
Chairperson

To ensure

Norio OTSUKA*1

independence,
Executive
Personnel
Committee

Title

objectivity andtransparency in theappointment ofMember of the Board
Shigeyoshi TANAKA Yoshiro AIKAWA

Members

Members of the Board

Masahiko OKADAAtsuko NISHIMURA*1

Fumiya KOKUBU*1 Tsutomu KAMIJO*1and Executive Officers,
etc.

To ensure transparency
in order to ensure
Remuneration

independence,

Committee

objectivity andObserverYasuhiro SATO*2

Chairperson

Norio OTSUKA*1

Title

Member of the Board
Shigeyoshi TANAKA Yoshiro AIKAWA

Memberstransparency ofMasahiko OKADAAtsuko NISHIMURA*1

Fumiya KOKUBU*1 Tsutomu KAMIJO*1

executive compensation

Committee

Seishi TASHIRO*2

Chairperson

Fumiya KOKUBU*1

Title

To strengthen andSustainability

Observerpromote sustainability
management of ourMembers

company and the entire

Member of the Board
Yoshiro AIKAWA

Hiroshi TSUCHIYA

Hiroshi KIMURA

Yuichiro YOSHINO

Tsutomu KAMIJO*1

GroupObserver

Keiko OHARA*2

Jiro TANIYAMA

Toshifumi YASUDA＊1 External Member of the Board＊2 External Audit & Supervisory Board Member

Various Committees
For significant matters such as sustainability, corporate ethics, and technology strategies, specific committees develop
policies and strategies and drive their respective initiatives. Below is an outline of the various committees associated withsustainability.

Overview of the Sustainability-Related Committees
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CategoryTerms of reference

Chairperson

Meeting
Frequency(FY2022)〈Committee within the Board〉
Sustainability

Strengthens and advances sustainability

External

Committee

management within the Company and its entire

Member ofGroup.

Board〈Management

Preliminary deliberation of items for the Board andCommittee〉

decision-making on tasks delegated by the Board.

President

Twice ayear

Once aweek〈Special Committees〉
Compliance

Upon receiving updates about compliance

Committee

promotion, highlights issues in the compliance

External

system, and suggests measures to fortify theExpertsystem, including preventive actions against(Lawyer)Once a year

potential violations of laws and regulations〈Business Committees〉
Technical

Encourages innovative technical development,

Committee

establishes and contemplate various measures, andPresident

monitors their execution.
Central Safety

Discusses and advances matters concerning theCommittee

Company’s safety management, prevention of

Executive

environmental accidents, and guidance about

Vicesafety, health, and environmental management for

President

Eight times
a yearFive times ayear

specialized contractors.
Sustainability

Discusses important environmental and social

Promotionissues, shares information on sustainability

Committee

management initiatives, and makes

President

Four times ayear*

recommendations to the Management Committee
Risk

Selection and deliberation of significant risks

Chief ofManagement

throughout the Company, and verification of theBusiness

Committee

status of risk management for both company-wide

Administration

critical risks and those risks that should be

Divisionoverseen as a headquarters.

(CRO)

Environmental Social Governance Report 2023

Once a year

21CategoryTerms of reference

Chairperson

Meeting
Frequency(FY2022)

Central Labor

Deliberates on the Company’s basic policies andAffairs

advances various initiatives on labor issues,Committee

concerning professional contractors.

DigitalPresident

Twice ayear

Chief ofTransformation

Establishes, contemplates and monitors the

Corporate

Five times a(DX) Promotion

progress of DX advancement measures.

Planning

year

Committee
Personnel
Committee

Office (CDO)

Discusses various personnel strategies and follows
up and monitors their execution.

Executive
Vice
President

Twelvetimes a year

* Frequency of meetings of the former Environment Committee (now the Sustainability Promotion Committee)

Key Stakeholders

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Refer to:
Relationships with Stakeholders

Dialogue and Engagement with Investors

Participation in Initiatives
Participation in Initiatives

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Creation of Value and Policies

Providing Sustainable Value and Our Structure of Values

Toward Value Creation and Sustainable Growth

Policies

Providing Sustainable Value and Our Structure of Values

Click here for detail

Toward Value Creation and Sustainable Growth

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Click here for detail

Policies
TAISEI VISION 2030 Medium-Term Business Plan
TAISEI VISION 2030 Medium-Term Business Plan(2021-2023)

Our Structure of Values and Policies
Action Guidelines for Taisei Personnel and the Taisei Group as a Whole

Environment
Fundamental Policy on Sustainable Development
Environmental Policy
Declaration of Biodiversity Preservation by Taisei Group
Taisei Group of Companies Sustainable Procurement Guidelines
Brochure "Promotion of Sustainable Procurement”
Green Procurement Guideline
Biodiversity Conservation Guidelines

SocialFundamental Policy on Sustainable Development
Multi-Stakeholder Policy
Quality Policy
Safety and Health Policy
Procurement Policy
Taisei Group of Companies Sustainable Procurement Guidelines
Brochure "Promotion of Sustainable Procurement”

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Human Rights Policy
Human Resources Development Policy (Diversity & Inclusion Policy)
Digital Transformation (DX) Policy*
Technology Development Policy** Please note that this policy is not disclosed to the public.

GovernanceRisk Management Policy
Policy on Business Continuity in Times of Disaster
Fundamental Policy to Enhance Operational Compliance Systems
Information Disclosure Policy
Policy on Intellectual Property
Policy on the Protection of Personal Information
Code of Conduct on the Use of Social Media
Fundamental Corporate Governance Policy
IR Policy
Tax Policy
Declaration of Partnership Building

Copyright TAISEI CORPORATION All Rights Reserved.

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Toward Value Creation and Sustainable Growth

Medium- to Long-Term Vision TAISEI VISION 2030

Value Creation Story of the Taisei Group
Business Model to Enhance Corporate Value

Intangible Assets as a Source of Competitive Advantage

Materiality (Issues to Be Dealt with) / Risks and Opportunities

Relationships with Stakeholders

Medium-Term Business Plan (2021-2023) and Numerical Targets/KPIs
Governance System that Supports the Group's Initiatives

Dialogue and Engagement with Investors

Value Creation Story of the Taisei Group
Under the Taisei Group Philosophy of “To create a vibrant environment for all members of society,” the Taisei Group isdedicated to forging a resilient society where people can live affluent and cultural lives.
By building high-quality social infrastructure through our business endeavors and by addressing the challenges faced by ourclients and the broader society, we aspire to foster cyclical enhancement of both corporate and social value, aiming forsustainable growth in harmony with society.

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Click here for detail

Medium- to Long-Term Vision TAISEI VISION 2030
In 2021, based on the Group Philosophy and the Taisei Spirit, we established the medium- to long-term vision TAISEIVISION 2030. With our mission being to contribute to the development of a resilient society where people can live affluent
and cultural lives, we are working to help solve the challenges faced by our clients and the broader society through businessendeavors and to ensure sustainable growth in harmony with society.
In establishing this vision, we identified medium- to long-term environmental and structural changes as “Three Xs” (namely,industry transformation (IX), sustainability transformation (SX), and digital transformation (DX)) and predicted that theintertwining of these three Xs will lead to a significant wave of changes.
In this process, in order to distinguish Taisei from other companies in the market, to ensure the sustainable growth of theTaisei Group, and to realize our vision, we defined five domains of focus: construction, development, engineering, energy,
and environment. Expressing the concept of the ever-evolving The CDE3 Company, we also set numerical targets for
FY2030 financial results: about ¥2.5 trillion for Group net sales, ¥150 billion for Group net income, and 10% for ROE. We
have also established targets for stakeholder (shareholders, employees, customers, suppliers, and society) returns.

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During the current three-year period (FY2021–2023), we are reorganizing the Medium-Term Business Plan (2021-2023) bybackcasting priority issues to be addressed and working to implement various measures to achieve these targets.

Refer to:TAISEI VISION 2030 Medium-Term Business Plan (2021-2023)

Business Model to Enhance Corporate ValueTo enhance the Group’s corporate value, to ensure its sustainable growth, and to realize TAISEI VISION 2030, we will help
to solve the issues customers and society face by creating high-quality social infrastructure through business endeavors ineach CDE3 domain.
We expect that the domestic construction market will continue to be worth around ¥60 trillion for some time to come despite
concerns that it will shrink in the long run. In our core Construction Business, to distinguish Taisei from other companies andto secure competitive advantage, we are striving to implement priority measures, such as building systems for enhancing
competitiveness, to win orders; expanding business in the building renovation area, where latent demand is high; andincreasing productivity by utilizing digital technology and centralizing operations. One characteristic of the construction
market is that the share of major general contractors, including the Taisei Group, is small compared to other industries, andsince there is still room for expansion even in the domestic market, we are actively working to expand our business domains
in the market through effective use of M&A.
The future of the real estate market is quite uncertain, though there have not been major changes in its conditions.
Predicting that in the years to come, we will need to make careful decisions in the Development Business, we consider it apriority issue to optimize our real estate portfolio and to build a stable foundation for profitability by pursuing high investment
efficiency.
In the Engineering Business, we reckon that capital investments related to pharmaceuticals, food, logistics, and energy,
which are the areas the Taisei Group targets, will generally continue to be strong. As a priority issue, we will expand ourbusiness domains by making the most of the strengths we have obtained in pharmaceuticals, food, and other fields, and weare striving to develop our existing areas in greater depth as well as to take on new challenges in growth areas.
In the Energy & Environment Business, with the aim of becoming a front runner in the environmental area, we areconcentrating mainly on possessing renewable energy power sources to cover the amount of power consumed by the TaiseiGroup and improving ZEB performance to maintain competitive advantage. Since it is expected that society’s demands willgrow at an accelerating pace in this area, we established systems by setting up the new Sustainability Division (Integrated)in April 2022 and are continuously promoting the development of environmental technology and making environment-related
investments.

Refer to:Environmental Social Governance Report 2023

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Taisei Group’s Growth Strategy

Intangible Assets as a Source of Competitive Advantage
We recognize that the most important intangible assets serving as a source of the Taisei Group’s competitive advantage are
our human resources and technology, and we have announced a basic stance for realizing TAISEI VISION 2030: the“optimal utilization of human capital, technology, and intelligence.”
Our basic policy for human resources is to implement a personnel policy that contributes to corporate value creation andsustainable growth, and we are implementing various measures to realize a work environment that emphasizes job
satisfaction and ease of work as well as advancing initiatives to develop professionals with cheerfulness, enthusiasm,
integrity, and discipline as businesspeople.
In particular, based on the belief that to realize TAISEI VISION 2030, it is important for all executives and employees of theTaisei Group to have a high level of engagement, we are focusing on reforming the personnel system and developing
human resources by identifying medium- to long-term personnel challenges and reorganizing measures for realizing our
visions of ideal organizations and human resources as the TAISEI VISION 2030 personnel policy.
In addition, since FY2022, we have conducted an engagement survey of executives and employees, and based on thesurvey results, we are analyzing issues to address and implementing measures for improvement one after another. From
FY2023, we will increase the frequency of engagement surveys carried out to twice per year, and we will strive to boost theengagement level of executives and employees by periodically monitoring improvement and reflecting the results of suchmonitoring in various management policies.

Refer to:Management of Human CapitalIn terms of technology, one of the key issues under the Medium-Term Business Plan (2021-2023) is to promotetechnological development to solve environmental and social issues through open innovation. Under the Plan, the two key
measures are technological development that contributes to industrial sectors expected to grow through a virtuous cycle forthe economy and the environment as well as technological development in which the Company has a competitive edge.
Taking these two measures into account, we are strategically allocating managerial resources to technological development.
During the period up to FY2022, investments in technological development under the Plan totaled approximately ¥46 billion.
Examples include investments to meet needs in new business areas such as the renewal and transformation of Groupowned facilities to satisfy the Zero Energy Building (ZEB) standards, the establishment of a Group next-generation
technology research institute, and the development of construction technologies related to offshore wind power generation
as well as investments to further enhance productivity, such as the advancement of construction automation and laborsaving technologies and increased utilization of Building Information Modeling (BIM).

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Refer to:
Technology & Solution

Materiality (Issues to Be Dealt with) / Risks andOpportunities
In alignment with TAISEI VISION 2030 and the Medium-Term Business Plan (2021-2023), the Taisei Group has identified its
materiality by recognizing the importance of social concerns, stakeholder interests, and the challenges facing society;analyzing how these correspond to the Group Philosophy and various policies; and assessing their impacts on Groupmanagement. We extracted sustainability challenges from the SDGs, GRI Standards, United Nations Global Compact, ISO
26000, SASB, and other sources; made a draft set of key issues by taking into account diverse opinions inside and outside
the Company; and deliberated and decided on the Group’s materiality at the Board after holding discussions at theManagement Committee and the CSR Committee (now called the Sustainability Committee). We will strive for long-term,
sustainable enhancement of corporate value by preventing and reducing risks related to each materiality and thenuncovering business opportunities through key measures under the Medium-Term Business Plan.
Among the key measures for risks and opportunities related to climate change, when we formulated the Medium-TermBusiness Plan, we initially set our target for CO2 emissions from business activities (Scopes 1 and 2) to “virtually zero”(carbon neutral), but in February 2023, we revised our environmental and other policies, setting a 2050 target of achieving
and going beyond carbon neutrality as well as stating the objective of reducing Scopes 1 and 2 CO2 emissions to zero andScope 3 supply chain CO2 emissions to zero. We are thus advancing initiatives for climate-change-related key measures.
The Management Committee and the Board comprehensively consider and decide policies to respond to risks that are likely
to have serious effects on corporate management, and such policies are shared throughout the organization. In line with thecompany-wide risk management system, we are striving to avoid such risks and minimize them if they manifest. The detailsof these risks are described in the Business and Other Risks section of the annual securities report.

Refer to:Materiality

Business and Other Risks (Annual Securities Report)

Relationships with Stakeholders
We fully recognize that the Taisei Group is supported by shareholders, investors, customers, local communities, employees,
business partners, and various other stakeholders, and we are working to collaborate with our stakeholders to fulfill ourEnvironmental Social Governance Report 202331

social responsibilities and to create value.

Refer to:Key Stakeholders

In particular, we believe that business partners such as specialized contractors and suppliers are crucial partners inaccomplishing work in a way that exceeds the expectations and imaginations of customers and allies in our mutualendeavors to address social challenges such as environmental concerns and human rights through business activities.
In our business activities, to prevent and mitigate adverse impacts on human rights and the environment, the Taisei Group
conducts human rights due diligence based on our human rights policy and environmental due diligence based on ourenvironmental policy. Thus, the Group is working with business partners to carry out initiatives on human rights andenvironmental challenges throughout the entire supply chain for continuous improvement.
To fulfill our responsibilities as a comprehensive construction company that supports the infrastructure underpinning socialand economic activities when large-scale disasters, accidents, and other crises occur, we have worked out a business
continuity plan in the event of disaster and are conducting large-scale disaster response drills annually. By having ourbusiness partners participate in these drills, we have put in place a system that enables us to respond together to disasters
that occur.

Refer to:Promotion of Supply Chain Management

Medium-Term Business Plan (2021-2023) and Numerical
Targets/KPIs
To realize the medium- to long-term vision TAISEI VISION 2030 “A pioneering corporate group contributing to thedevelopment of a resilient society where people can live affluent and cultural lives,” the Medium-Term Business Plan (20212023), a strategy to execute the value creation story, distills key measures through backcasting and, while giving
consideration to the current business environment, identifies focusing on implementing such measures during the three
years up to 2023 to be a key issue.
Key issues are classified into business-related and sustainability-related issues. With respect to the business-related key
issues, we have formulated key measures based on market scenarios for each area and are implementing them according
to the numerical targets we have set. For the sustainability-related key issues, we have devised key measures linked toEnvironmental Social Governance Report 2023

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materiality and established KPIs to assess them. Regarding the environmental aspect, we are advancing initiatives toachieve the 2030 target, a milestone for the TAISEI Green Target 2050, which aims to achieve carbon neutrality in 2050, by
setting two KPIs: the rate of CO2 emissions to be reduced by FY2023 and the number of orders for Zero Energy Buildings(ZEB). Meanwhile, with regard to society, we have set KPIs while considering how to provide value to diverse stakeholders.
We are implementing measures as required to achieve business-related numerical targets and sustainability-related KPIs byperiodically having the Management Committee check and deliberate them as well as having the Board monitor theirprogress and degree of achievement.
The details of investment plans, technological development, DX, personnel policy, and other matters under the MediumTerm Business Plan (2021-2023) are explained in the document linked below.

Refer to:Management of Human Capital

Materiality and SDGs

TAISEI VISION 2030 Medium-Term Business Plan(2021-2023)

Governance System that Supports the Group’s Initiatives
The Taisei Group’s basic policy on corporate governance is to ensure the swiftness, appropriateness, fairness, andtransparency of decision-making in management in order to pursue sustainable development as a corporate group and toearn society’s trust.
Taisei Corporation has chosen a company structure with an Audit & Supervisory Board. The Board of Directors (the Board)
strives for the Company’s sustainable growth and the enhancement of corporate value in the medium to long run andfocuses on its supervisory functions. Its primary roles and responsibilities are (1) to indicate the future directions from wideviewpoints in respect of the corporate strategy, (2) to establish an environment that supports risk-taking by the senior
management, and (3) to effectively oversee the management and the members of the Board from the independent andobjective viewpoints. The Board comprises twelve members: eight from within the Company and four external members.
The external members of the Board provide objective perspectives based on their knowledge, enriching board deliberations
with diverse views and contributing to the strengthening of management oversight.
The Company has also established the Management Committee as the highest decision-making body on the execution side,and the Committee deliberates and resolves business execution matters delegated by the Board. Chaired by the President,
the Committee includes eleven members chosen by the Board.
The implementation of the Medium-Term Business Plan (2021-2023), a strategy to execute the value creation story, and theachievement of numerical targets and KPIs are periodically checked and deliberated by the Management Committee, while
their progress and degree of achievement are monitored by the Board, and the Company takes measures to achieve themas required. In addition, each year, the Board analyzes and evaluates its effectiveness for improvement, thus sophisticating
governance to enhance corporate value from a long-term perspective in a sustainable manner.

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Refer to:
Corporate GovernanceDialogue and Engagement with Investors
The Company is committed to fostering constructive dialogues with shareholders and investors as it strives for sustainablegrowth and enhanced corporate value in the medium to long run. Its timely, appropriate information disclosures and clear
explanations about the big picture of the value creation story and its components lay the foundation for these dialogues.
For dialogues with shareholders and investors, our actions are grounded in our IR policy. We promote constructive
dialogues through interviews, IR briefings, and general meetings of shareholders. Specifically, we conduct semiannual
briefings on financial results, hold individual meetings for both domestic and foreign institutional investors, and engage in IR
activities abroad. In addition to the management, external members of the Board and members of the Audit & Supervisory
Board attend these meetings as necessary, taking investor requests into consideration. The Taisei Circle newsletter serves
as a communication tool, offering shareholders insights into the business activities and ESG initiatives that the Company isfocusing on.
We document these dialogues and interactions internally. Reports capturing such engagements are shared monthly withsenior management and presented in detail to the members of the Board at least twice a year, ensuring that our investor
relations activities contribute to enhancing our management capabilities. Based on the suggestions received throughdialogues in recent years, we have clarified our goals for reducing cross-shareholdings, and progress in this effort is
explained to investors through dialogues and disclosed through Corporate Governance Reports, Annual Securities Reports,
and other documents.

Refer to:Status of dialogue with shareholders, investors and others

Copyright TAISEI CORPORATION All Rights Reserved.

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Materiality and SDGs

Materiality

Materiality and KPIs

Materiality and Medium-Term Business Plan Initiatives

SDGs Dialogue

Materiality
Taisei Group’s Materiality
In alignment with TAISEI VISION 2030 and our Medium-Term Business Plan for 2021–2023, which outline our medium tolong-term objectives, Taisei Group has identified its materiality. We take into consideration the impact on our management
while recognizing the importance of societal concerns, stakeholder interests, and challenges facing society. These material
issues have been selected based on their alignment with the Group philosophy and various policies.
As we prepare for the next Medium-Term Business Plan, set to commence in FY2024, we are currently reviewing theGroup’s materiality.

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Materiality Identification Process
When pinpointing key issues, we considered a range of sustainability challenges, integrating diverse perspectives from bothwithin and outside the Company. Discussions and deliberations took place at the management level. Within the context of
the Medium-Term Business Plan (2021–2023), we have established focused initiatives linked to the identified materialities
and have been advancing our sustainability initiatives. The progress of KPIs associated with each materiality is monitored
and discussed by the Sustainability Committee, enhancing the effectiveness of initiatives.

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Materiality and Direction of Initiatives

Refer to:Materiality (Issues to Be Dealt with) and Risks and Opportunities

Environmental Social Governance Report 2023

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Environmental Social Governance Report 2023

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Click here for detail

Materiality and KPIs
For KPIs, the Board regularly monitors the progress and achievement of KPIs, following prior deliberations by the
Sustainability Committee, and takes measures as necessary. The progress and achievements of KPIs are also used indialogue with shareholders and investors.

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Environmental Social Governance Report 2023

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Click here for detail

Materiality and Medium-Term Business Plan Initiatives

Environmental Social Governance Report 2023

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Click here for detail

Environmental Social Governance Report 2023

42

Refer to:
Medium-Term Business Plan (2021-2023) and Numerical Targets/KPIs

SDGs Dialogue
CSO×Expert

The Taisei Group has targeted the front-runner status in the environmental sector, accelerating its initiatives towards carbon
neutrality, and aims at the enhancement of corporate value and sustainable development by solving environmental andsocial issues through its business.
This time, we invited Ms. Mari YOSHITAKA, an environmental financial consultant and a pioneer in environmental business,to have dialogue with Mr. Jiro TANIYAMA, Chief of Sustainability Division (Integrated) and Chief Sustainability Officer (CSO).
They discussed the prospect of roles the Taisei Group is currently expected to play in sustainability management, and future
possibilities.

Click here for detail

Environmental Social Governance Report 2023

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Participation in Initiatives

Overall

Environment

SocialParticipation in Initiatives
The Taisei Group believes that it is important for various entities to cooperate and actively engage with each to resolve
global-scale social issues. We participate in various domestic and international initiatives, including the United Nations
Global Compact.

Overall
The United Nations Global

The UN Global Compact is a global framework that encourages companies

Compact (GC)and organizations to take responsible and creative leadership and to act as
good members of society toward attaining sustainable growth.
The Taisei Group participated in the GC in April 2018 and committed todisseminating and implementing the Ten Principles in the four areas ofhuman rights, labour, the environment, and anti-corruption.
In addition, the GCNJ conducts of subcommittees for deliberations andexchanging information on specific topics concerning approaches andinitiatives for sustainability.In FY2023, Taisei Corporation participated in thefollowing subcommittees.
Human Rights Due Diligence (HRDD) Subcommittee
Reporting Research Subcommittee
Supply Chain Subcommittee
Environmental Management Subcommittee
CSV Subcommittee

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The UN Sustainable Development

The Taisei Group promotes various initiatives in our efforts to contribute

Goals (SDGs)

towards attaining the 17 goals and 169 targets adopted as an action planfor humanity, earth, and prosperity at the UN Sustainable Development
Goals Summit.

Keidanren (Japan BusinessAs a member corporation, Taisei Corporation is committed to respect theFederation)

content of its Charter of Corporate Behavior and to carry out activities
toward the establishment of the organization’s goal, Sustainable Capitalism.
We participate in committees, which include the following.
Committee on Supply Chains
Committee on Start-ups
Committee on Environment
Committee on Energy and Resources
Committee on Responsible Business Conduct & SDGs Promotion
Committee on Diversity & Inclusion
Committee on Crisis Management & National Resilience
Committee on Overseas Development Cooperation

Work with Council for Better

Taisei Corporation participates in activities to promote and raise awarenessCorporate Citizenship (CBCC)

of CSR and sustainability as a member corporation of the Council for Better
Corporate Citizenship (CBCC), which facilitates the acceptance ofJapanese companies by regional communities overseas as good corporate
citizens.

Nikkenren (Japan Federation of

Taisei Corporation supports the activities of the Nikkenren (Japan

Construction Contractors)

Federation of Construction Contractors), which works to resolve domestic
and international issues in the construction industry, including various
industry-related systems, and we participate in various committees as amember.

ESG Information Disclosure

In August 2022, Taisei Corporation joined the ESG Information Disclosure

Study Group

Study Group, which conducts research on the appropriate way of disclosing
corporate ESG information. Through this, we will make efforts toward
improving corporate value and achieving sustainable growth withappropriate ESG information disclosure.

Japan Forum of Business andWith regard to the relationship between companies and society and various

Society (JFBS)

issues in sustainable development, the Taisei Group participates in theJapan Forum of Business and Society (JFBS), a forum for connecting
theory, field, and policy through wide-ranging cooperation between
academia, business, government, labor unions, consumer organizations,NPOs, and NGOs in Japan and overseas. We make use of knowledge
gained at its annual conference and other events to promote sustainability
activities.

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Environment
CDP/CDP Japan ClubCDP
CDP is a British-based international environmental nonprofit organizationthat operates a global disclosure system for information relating toenvironmental impact.
CDP asks companies in major nations with a top share of total market value
to disclose information on their impact on climate change, forests, water,and so on. It discloses the assessment scores based on companies'
responses, which are referenced by many institutional investors.
CDP Japan ClubAs a member of the CDP Japan Club, Taisei Corporation conducts
initiatives for environmental issues and exchanges views regarding
information disclosure to enhance our efforts and appropriately disclose
information.

SBTi（Science Based Targets

The Science Based Targets initiative (SBTi) aims to drive ambitious climate

Initiatives）

action in the private sector by encouraging organizations to set sciencebased emissions reduction targets. The two CO2 emissions reduction
targets for 2030 established as milestones in Taisei Corporation's “Taisei
Green Target 2050” have been certified as SBT, by the initiative (SBTi).

TCFD (Task Force on Climate-

In July 2020, Taisei Corporation declared its support for the TCFD (Task

related Financial Disclosures) /Force on Climate-related Financial Disclosures) recommendations. As a

TCFD Consortium

member of the TCFD Consortium, which is where discussions take place,
we disclose information based on the disclosure framework of the final
TCFD report.

TNFD (Task Force on Nature-

From July 2022, Taisei Corporation has supported the philosophy of therelated Financial Disclosure) /Taskforce on Nature-related Financial Disclosures (TNFD) and has been

TNFD Forum

participating in the TNFD Forum. Through this, we will work to set up aframework for the assessment and disclosure of risks and opportunities
related to natural capital and biodiversity, and contribute to the achievementof sustainability and resilience for society as a whole.

GX League

From FY2023, Taisei Corporation has participated in the GX League (GX:
green transformation), which was established by the Ministry of Economy,
Trade and Industry, and will contribute towards creating systems to ensurethat corporate efforts and investments toward GX are fairly assessed andcreating carbon-neutral markets from Japan to the world.

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Challenge Zero (Challenge Net

Taisei Corporation endorses the Challenge Zero (Challenge Net Zero

Zero Carbon Innovation)

Carbon Innovation) Declaration, which was launched by Keidanren. Alongwith disclosing details of initiatives of innovations toward the achieving of adecarbonized society, we also aim to resolve social issues with thedevelopment of net-zero emission technologies.

Japan Partnership for Circular

Since May 2021, Taisei Corporation has been a member of the Japan

Economy (J4CE)

Partnership for Circular Economy (J4CE), which is a platform for adecarbonized, decentralized society and a circular economy. This platform
was established by the Ministry of the Environment, the Ministry of
Economy, Trade and Industry, and Keidanren. We are pursuing open
innovation that transcends corporate and industrial boundaries and theRealization of a Circular Economy by publicly declaring our commitment toambitious challenges that will bring society closer to a circular economy.

Japan Business Initiative for

From March 2023, as a member corporation of the Japan Business

Biodiversity (JBIB)

Initiative for Biodiversity (JBIB), Taisei Corporation promotes initiatives forbiodiversity conservation through the Guideline of Promotion of Business
Innovation in harmony with Nature and Community and information sharing
with the Association for Business Innovation in harmony with Nature andCommunity (ABINC).

Private Sector Engagement inTaisei Corporation participates as a member corporation in the Japan

Biodiversity

Business and Biodiversity Partnership. This was launched by the Ministry of
the Environment, and promotes biodiversity conservation initiatives bybusinesses in cooperation with related domestic and internationalorganizations, such as NPOs, NGOs, and research institutions.

Keidanren Initiative for

Taisei Corporation has expressed its support for the 2010 Declaration of

Biodiversity Conservation, etc.

Biodiversity by Keidanren and Action Policy, and we promote initiatives forbiodiversity conservation through information sharing of activities and soforth.

30 by 30 Alliance For Biodiversity

Taisei Corporation has participated in the “30 by 30 Alliance for
Biodiversity”(The global target, which will contribute to the goal of 30% of
the world's land and water ecosystems by 2030.)established by Ministry of
the Environment Japan. Taisei Group will support activities to expand andmanage biodiversity conservation areas through the development and useof Taisei technologies for living in harmony with nature and conserving theenvironment.

Environmental Social Governance Report 2023

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Eco-First Commitment

In May 2012, Taisei Corporation submitted an Eco-First Commitment to theParticipation in the Eco-First

Minister of the Environment and was certified as an Eco-First Company. We

Councilare steadily fulfilling this commitment.
Furthermore, we serve as the coordinator of the Eco-First Promotion
Council, which is made up of the 54 companies that have been certified as
Eco-First Companies (as of March 2023). We are working to strengthen our
cooperation with the Ministry of the Environment and the other Eco-First
Companies to resolve environmental issues.

Plastics Smart

Taisei Corporation endorses and promotes initiatives of the Ministry of theEnvironment's Plastics Smart campaign, which is conducted byorganizations such as local governments, companies, and NGOs with theaim of resolving the issue of global marine plastic.

Water Project

Since 2015, Taisei Corporation has been a participant in the Ministry of theEnvironment's Water Project, based on the Basic Law on the Water Cycle.
We promote initiatives toward maintaining and restoring a healthy water
cycle.

Voluntary Action Plan on the

Taisei Corporation participates in Nikkenren's Voluntary Action Plan on theEnvironment for the Construction

Environment, promotes energy conservation and continues to make efforts

Industry (Nikkenren)

toward reducing CO2 emissions.

SocialHuman Capital Management

Taisei Corporation participates in the Human Capital Management

Consortium

Consortium, which was established with the Ministry of Economy, Tradeand Industry and the Financial Services Agency as its observers. Throughthis participation we have been deepening our knowledge on “humancapital management” to improve our medium- to long-term corporate value.

My Jinken (human rights)

Taisei Corporation announced its support for the “My Jinken (human rights)

Declaration

Declaration” project of the Ministry of Justice in July 2021, which invites
people to declare their intention to conduct activities to respect humanrights in order to achieve a society in which everyone respects humanrights.

The Valuable 500

Taisei Corporation joined the “The Valuable 500”, a global initiative aiming
to enhance disability inclusion in society through business leadership andopportunity in May 2021. The initiative was launched at the World Economic
Form (Davos Forum) held in January 2019.

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48

Japan Intellectual Property

As a member corporation, Taisei Corporation is engaged in the appropriate

Association

use of systems related to intellectual property and conducts activities suchas mutual study and information exchange between members throughparticipation in training and other activities.

Construction RX Consortium

Through joint research and development on robots, IoT applications, andother technologies related to construction, Taisei Corporation supports the
purpose of the Construction RX Consortium. This was launched with thegoal of promoting productivity and boosting the appeal of the constructionindustry as a whole. As a full member of the consortium since August 2023,
we are committed to solving various issues in the construction industry.

EcoVadis

EcoVadis evaluates the performance of companies in terms ofenvironmental and social sustainability through its own platform. Taisei
Corporation has been registered with EcoVadis as a supplier since 2019,and discloses information as required.

Copyright TAISEI CORPORATION All Rights Reserved.

Environmental Social Governance Report 2023

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The seven core subjects of ISO 26000

Organization GovernanceFair Operating Practices

Human Rights

Corporate Governance

Respect for Human Rights

Risk Management

Human Rights Due Diligence

Thorough Compliance /Restructuring of the Group
Governance System

Diversity, Equity, and Inclusion

Management of Information andIntellectual Property Rights

Promotion of Supply Chain
Management
Thorough Compliance /Restructuring of the Group
Governance System

Environment

Consumer Issues

Realization of a Sustainable andEnvironmentally Friendly Society

Ensuring Quality and Improving
Technology

TAISEI Green Target 2050

Cultivation of Technical Staff andSecuring of Human Resources

Decarbonized Society
Avoided Emissions
Recycling-Oriented Society
Nature Co-Existing Society

Labor Practices

Realization of an Attractive Working
Environment
Human Resource Development
Health Management
Thorough Management ofOccupational Health and Safety
Cultivation of Technical Staff andSecuring of Human Resources

Community Involvement
and Development

Contribution to Local Communities

Technology Development forRealizing a Sustainable Society
Thorough Management ofOccupational Health and Safety

Forest Resources / Forest
Environment
Water Resources / Water
Environment

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Compliance with Environmentrelated Laws and Regulations
Environmental Data
Information Disclosure Based on
TCFD Recommendations
Sustainable FinanceGreen Bond

Copyright TAISEI CORPORATION All Rights Reserved.

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51

Environment(E)Realization of a Sustainable andEnvironmentally Friendly

TAISEI Green Target 2050

Decarbonized Society

Society

Realization of a Sustainable
and Environmentally Friendly
Society

TAISEI Green Target 2050

Decarbonized Society

TAISEI Green Target 2050

Policies and Basic Approach

Policies and Basic Approach

The Three Types of Society

Goals and Targets

Goals and Targets

The Two Individual Issues

Initiatives

Sustainability Governance andActivities / Efforts

Oversight
Data
Initiatives
Avoided Emissions

Activities / Efforts

Green Renewal ZEB

Supply Chain (Environment)

T-Green® Multi Solar

Data

Recycling-Oriented Society

Recycling-Oriented Society
Policies and Basic Approach

Nature Co-Existing Society

Nature Co-Existing Society

Forest Resources /Forest
Environment

Forest Resources /Forest
Environment

Policies and Basic Approach
Policies and Basic Approach

Goals and Targets

Goals and Targets
Goals and Targets

Initiatives

Initiatives
Activities / Efforts

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Activities / Efforts

Activities / Efforts

Ⅰ. Sustainable wood use

Data

Data

Ⅱ. Revitalizing Forest
Resources
Ⅲ. Conservation of good
forests

Water Resources/ Water

Compliance with Environment-

Environment

related Laws and Regulations

Water Resources/ Water
Environment
Policies and Basic Approach

Compliance with Environmentrelated Laws and Regulations

Environmental Due Diligence

Environmental Due Diligence

Policies and Basic Approach /Goals and Targets

Embed Environmental Due
Diligence into policies and the
management system

Activities / Efforts

Identify and assess adverse

Goals and Targets
impacts on the environment

Activities / Efforts
Data

Cease, prevent, or mitigate
adverse environmental
impacts

Ⅰ. Sustainable Water Use
Ⅱ. Restoration of Water
Resources

Track implementation andresults

Ⅲ. Conservation of Water
Resources

Disclose information
Provide for or cooperate inremediation when appropriate

Environmental Data

Environmental Data

Information Disclosure Basedon TCFD Recommendations

Information Disclosure Basedon TCFD Recommendations

Environmental Data (FY2022)

Sustainability Finance

Sustainability FinanceGreen Bond

Environmental Policy
TAISEI CORPORATION
Annual Environmental Targets
TAISEI Group Material Flow
(FY2022)

Governance

Sustainability Linked Loans,etc

Strategies
Risks and Opportunities

TAISEI CORPORATION

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Material Flow
Material Flow for Group
Companies
Projected CO2 Emissions andClimate Change Measures
Risk Management
Indicators and Targets

Reduction Rate in the Building
Operation Phase
Total Construction By-product(Waste / valuable resources)
Management of Hazardous
WastesEnvironmental Data / Indicator
Calculation Method / Criteria

Copyright TAISEI CORPORATION All Rights Reserved.

Environmental Social Governance Report 2023

54

Realization of a Sustainable andEnvironmentally Friendly Society

Policies and Basic Approach
Initiatives

Activities / Efforts

Goals and Targets

Sustainability Governance and Oversight

Supply Chain (Environment)

Data

Realization of a Sustainable and Environmentally
Friendly Society
Policies and Basic Approach
The Taisei Group has established the Environmental Policy based on the Group Philosophy “To create a vibrantenvironment for all members of society” and our Fundamental Policy on Sustainable Development, aiming for the“Realization of a Sustainable and Environmentally Friendly Society.”

Environmental Policy 1. Fundamental Concept (excepted)
Based on the Taisei Group Philosophy “To create a vibrant environment for all members of society” and ourFundamental Policy on Sustainable Development, the Taisei Group strives to build good quality social capital throughcorporate activities centered on construction business in harmony with nature.
As the Group having construction as its core business, we aim for the “Realization of a Sustainable andEnvironmentally Friendly Society” by recognizing environmental issues as our significant sustainability tasks and fully
understanding the impacts of our business activities on the environment, and environmental impacts on our businessactivities. It is our mission to achieve our Group’s long-term environmental targets in compliance with environmentrelated laws and regulations.
In addition, we will identify the “Environment-Related Risks and Opportunities” including climate change in particular,
develop and promote environment-related technologies and services, and contribute to the realization of adecarbonized, recycling-oriented, and nature co-existing society through our business activities.

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Refer to:
Action Guidelines for Taisei Personnel
Environmental Policy

Fundamental Policy on Sustainable Development

Declaration of Biodiversity Preservation by Taisei Group

Goals and Targets
Group’s Long-Term Environmental Targets: TAISEI Green Target 2050
To achieve a sustainable and environmentally friendly society, the TAISEI Group has set the TAISEI Green Target 2050 as
its long-term environmental target to be achieved by 2050, with the objective of realizing three types of society (aDecarbonized Society, a Recycling-Oriented Society and a Nature Co-Existing Society) and resolving the Two Individual
Issues (relating to forest resources and forest environment and water resources and water environment).

Refer to:TAISEI Green Target 2050

Annual environmental targets
Taisei Corporation has set specific annual environmental targets in order to achieve a sustainable and environmentallyfriendly society.

Refer to:Annual Environmental Targets

KPIs"Realization of a Sustainable and Environmentally Friendly Society" is one of the materiality (key issues to be addressed) for
the Taisei Group. This reflected in the TAISEI Group Medium-Term Business Plan (2021-2023), and key performanceindicators (KPI) have also been set.
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56

Refer to:Materiality and KPIs

Sustainability Governance and OversightEnvironmental Management
The Taisei Group defines environmental management as corporate activities to realize the Group Philosophy and the Taisei
Spirit in terms of the environment. The environmental policy, which is the basic stance of environmental management, isdefined as the realization of a sustainable, environmentally friendly society, and we have set specific environmental targets
and environmental actions to achieve these targets. We also promote environmental management through the plan-docheck-act (PDCA) cycle of our environmental management system (EMS), which conforms to the ISO 14001 international
standard.

Environmental Management System (EMS)
We operate an environmental management system (EMS) conforming to the international standard ISO 14001 at our head
office and all of our domestic and overseas branches (100% certification rate). The top management of EMS is theSustainability Promotion Committee , the President, and the Chief of the Sustainability Management Promotion Division.
Under top management, EMS secretariats in each division and branch office and environmental officers in each division
promote and monitor environmental activities and implement a series of PDCA (Plan-Do-Check-Act) to be reflected in theEnvironmental Targets for the next fiscal year.

ISO14001 certification Scope:

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57

Head office and all 13 branch offices (certified rate: 100%)
Certification registered in 1998
Certification Name /Certifying Body: ISO14001: 2015/JTCCM

RE0014

Sustainability Committee (a Committee within the Board)
The Sustainability Committee has been established to deliberate and promote important policies and measures relating tooverall sustainability.

Governance

Sustainability Promotion Committee (Operations Committee)
We have established the Sustainability Promotion Committee to deliberate important environmental and social issues andshare information related to initiatives for sustainability management as well as to submit recommendations to theManagement Committee. The Committee formulates basic policy relating to environmental management, sets important
targets (such as medium- and long-term targets, Medium-Term Management Plan targets and annual targets) and checks
on the status of achievement of these targets, conducts assessments and provides approvals and instructions relating to theEnvironmental Management System (EMS), and responds to important outside assessments relating to environmental
management.
Several subcommittees have been established for the Sustainability Promotion Committee to enable it to respond to avariety of issues relating to environmental management.
- Construction Stage Subcommittee: Reduction of workplace CO2 emissions, promotion of a circular economy, water
resource and water environment issues- Operation Stage Subcommittee: Promotion of decarbonization technology and services- Forest Study Subcommittee: Response to forest resource and forest environment issues- Regional Cooperation Subcommittee: Promotion of regional cooperation projects centering on decarbonization- Group Sustainability Conference: Response to sustainability issues of individual Group companies
In addition, efforts to resolve environmental management issues are also conducted at the Central Safety Committee, theTechnical Committee and other business operation committees.

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TSA：TAISEI Sustainable Action®, Environmental Impact Reduction
Activities Conducted by All Employees of the Taisei GroupThe Group is steadfastly committed to the TSA: TAISEI Sustainable Action®. This is an eco-impact reduction endeavor,
calling upon the collective participation of all Group members, to realize our environmental ambitions. Beyond the “CO2 zeroaction” initiative, launched in 2011 as a fundamental commitment at our worksites, we compiled the “TSA action list” in 2018.
This list encapsulates specific endeavors, spotlighting technologies and activities potent in minimizing environmental
impacts. In 2020, with the introduction of the “TSA point system,” a tool that transparently visualizes and quantifies theefficacy of these endeavors, fostering an evolution in our employees’ perspectives and behaviors.
Moreover, to promote the broader adoption of TSA and facilitate the horizontal deployment of its specific activities, we
distribute “TSA Newsletter” to all executives and employees, on a quarterly basis. And we have established a commendation
system for our efforts to achieve our environmental goals. We strive to raise employees' environmental awareness by
informing them of cases that were highly rated in the commendation system as environmental impact reduction activities
that can serve as models for other divisions in the company.

*CO2 Zero Action
An initiative to reduce environmental impact undertaken by all worksites. There are seven actions, including ecodriving of heavy machinery and vehicles, inspection and maintenance, and controlling the temperature setting of air
conditioners.

Initiatives

TCFD, SBT, CDP
In February 2019, Taisei Corporation was certified under the Science Based Targets initiative (SBTi). Additionally, in July
2020, TAISEI endorsed the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD), andsince 2021 the company has been disclosing information in accordance with these recommendations. Moreover, in
response to requests from the CDP, we provided responses relating to climate change, forests and water security.

United Nations Global Compact (UNGC), SDGs
At the same time, it is actively participating in various subcommittees sponsored by the Global Compact Network Japan(GCNJ), such as the Subcommittee on Supply chain and the Subcommittee on Human Rights Due Diligence (HRDD), theSubcommittee on Circular Economy.
Taisei also strives to promote awareness of SDGs within the company and reflect them in medium-term business plans, inorder to ensure an awareness of the need to contribute to the achievement of the SDGs in the pursuit of construction
activities.

Keidanren (Japan Business Federation)
Contractors)/Nikkenren (Japan Federation of Construction

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As a member of Keidanren, we respect the content of its Charter of Corporate Behavior and carry out activities toward the“realization of a sustainable society,” which Keidanren aims to achieve. We also participate in the Committee on
Environment and Safety, Keidanren Biodiversity Declaration Initiative, the “Challenge Zero” initiative, Global WarmingCountermeasure Subcommittee, and Environment Management Subcommittee, which are tackling global warming
countermeasures, the formation of a recycling-based society and biodiversity conservation.
We are also on the Nikkenren's taskforce for Voluntary Action Plan on the Environment in Construction Industry, and on its
Construction Byproduct Taskforce and Civil Engineering Byproduct Taskforce which contribute to the effective use ofresources. In this way, we share information and engage in collaborative initiatives with other companies, thereby
contributing to the environmental activities of the construction industry as a whole. In 2014, Nikkenren set constructionindustry CO2 reduction targets for 2030 and joined Keidanren's Phase II of the Commitment to a Low Carbon Society.
In May 2021, the Voluntary Action Plan on the Environment for the Construction Industry was revised to establish targets
that include reducing Scope 1 and 2 emissions at the construction stage to effectively zero by 2050. As a member company,
Taisei strives to achieve the targets established by the Japan Federation of Construction Contractors.

Taisei Corporation's Eco-First Commitment
The Eco-First Program is an initiative launched by the Ministry of the Environment that certifies companies with leading
environmental practices. Taisei Corporation has been certified as an "Eco First Company" based on the Eco First
Commitment made with the Minister of the Environment in May 2012. The commitment has been renewed thereafter andinitiatives have been pursued toward its achievement.

Refer to:Eco-First

Nature Co-Existing Society (Initiatives)

Other
Taisei Corporation also participates in the TNFD Forum of the Taskforce on Nature-Related Financial Disclosures, the GX
League, the "30 by 30 Alliance for Biodiversity", and other initiatives both domestic and abroad, working with a diverse arrayof stakeholders.

Refer to:Participation in Initiatives

Activities / Efforts

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Disclosure of Information on Environmental Area
Taisei Corporation strives to improve its environmental performance by steadily carrying out activities based on its
Environmental Policy, and by actively disclosing information through the Company's Sustainability website, the integrated
report, and other means.
We strive to increase the trust of our stakeholders, and deliver value to them and create sustainable business opportunities.
For more information on the various initiatives, please refer to the following websites

Information Disclosure
Based on TCFD
Recommendations

Refer to:Decarbonized Society

Recycling-Oriented Society

Forest Resources / Forest Environment

Nature Co-Existing Society

Water Resources / Water Environment

Environmental Due Diligence activities
Toward the “Realization of a Sustainable and Environmentally Friendly Society,” as outlined in the Environmental Policy, theTaisei Group, in accordance with international guidelines, etc. has established and continuously implements a framework forEnvironmental Due Diligence to cease, prevent, or mitigate, prevent, and mitigate adverse impacts on the environment
caused by the Group’s business activities.

Refer to:Environmental Due Diligence

Environmental policy education and training of relevant supplier staff
To raise the environmental awareness of the executives and employees, to make them more attuned to their goals ofachieving and deepening carbon neutrality, the circular economy, and Nature Positive in order to realize a sustainable andenvironmentally friendly society, and to encourage actions, Taisei continues to provide online learning programs on
environmental issues to all executives and employees.
The implementation status for FY2022 is as follows:
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61

October 2022:

Program on “TAISEI Sustainable Action (TSA) to reduce environmental impact” Attendance rate
was 96.3%.
Details of the program: Reaffirmed the background of the activities and the priority implementation
items of the TAISEI Sustainable Action (TSA) to reduce environmental impact for all Group
executives and employees.

March 2023:

Program on “Revision of the Environmental Policy and the Group’s Long-Term Environmental
Targets” Attendance rate was 95.5%
Details of the program: Deepened understanding of the responsibilities, contributions throughbusiness, activities, etc. for the three types of societies – “Decarbonized Society,” “RecyclingOriented Society,” and “Nature Co-existing Society” and the two individual issues of “Forest
Resources / Forest Environment” and “Water Resources / Water Environment” outlined in theGroup’s long-term environmental target: TAISEI Green Target 2050.

Supply Chain (Environment)
Policies and Basic Approach
To the TAISEI Group, specialized construction companies, suppliers and other entities are key business partners inaddressing environmental issues, human rights and other social issues. As efforts to resolve environmental issues areneeded throughout the entire supply chain, the environmental policy calls for engagement with a wide range of suppliers andefforts to improve and resolve issues through mutual communication. Moreover, to prevent or reduce the impact of theenvironment-related risks of business activities and improve the company's ability to respond to risks, the environmental
policy also stipulates the need to conduct "ongoing environmental due diligence." TAISEI continue to work with
subcontractors and suppliers to operate due diligence.

Propagation of our Environmental Policy
The Taisei Group of Companies Sustainable Procurement Guidelines summarize the items to be implemented through thecooperation of our Group and business partners, and we strive to boost sustainability activities throughout our supply chain
by promoting awareness of these Guidelines and their permeation to all business partners in order to contribute to resolvingsocial issues, such as those related to the environment and human rights, through our business.
Specifically, when we request estimates for construction-related contracts, these Guidelines are used to raise awarenessdomestically and internationally as part of the terms and conditions of quotes for all specialized construction companies andsuppliers. Furthermore, when concluding contracts, we incorporate the substance of these Guidelines into the contracts so
as to request the understanding and cooperation of business partners in resolving environmental and human rights issues.
Although we communicate the Group’s Environmental Policy to our business partners annually through Taisei Health, Safety
and Environment Cooperation Association newsletters and other media, upon the occasion of the September 2023 revisionof our Sustainable Procurement Guidelines, we once again took the opportunity to communicate our policies on theenvironment and human rights via email to all relevant business partners, and we request their compliance and cooperation.
Before initiating construction work, Taisei makes sure to obtain written pledges from all specialized construction companies
to prevent environmental accidents and conduct activities to protect the environment, and Taisei works with them to achieve
long-term environmental targets.

Refer to:Environmental Social Governance Report 2023

62

Action Guidelines for Taisei Personnel

Environmental Policy

Taisei Group of Companies Sustainable Procurement Guidelines
Brochure "Promotion of Sustainable Procurement”

Promotion of Supply Chain Management

Supplier Assessment to Identify Risks
As part of our risk assessment with regard to environmental issues, the TAISEI Group has been conducting self-assessment
survey regulary since FY2016 to confirm the status of sustainability activities of its subcontractors and suppliers including
activities relating to sustainable procurement guidelines and their observance. Since FY2022, the survey has been
conducted annually.
Moreover, based on the results of the self-assessment, TAISEI visits and audits companies whose status of activities
relating to environmental, human rights, labor and other sustainability issues seems to need to be assessed. On theseoccasions, exchanges of views are held with company owners and best practices are shared in order to improve theiractivities.
In FY2022, 1,590 companies replied to the survey. Of these, 20 companies to visit and audit, and the status of their activities
was assessed through interviews and the like, and exchanges of views were held with company owners and best practices
were shared in order to improve environmental measures and so on.
Moreover, for new subcontractors and suppliers, TAISEI works to ensure a thorough understanding of the Group's
environmental policy, human rights policy, Sustainable Procurement Guidelines and so on, and self-assessment survey isconducted to confirm the status with regard to environmental issues, human rights and other social issues, health andsafety, legal compliance, comprehensive efforts to prevent corruption and so on. In these cases as well, interview surveys
and exchanges of views for improvements are conducted as necessary.

Refer to:Risk Assessment carried out regarding environmental issues and social issues for suppliers
Due Diligence for New Subcontractors and Suppliers

TAISEI Group Sustainability Manegement Activities
Environmental data are collected from seven Group companies that participate in the Group Sustainability Management
Conference including Taisei Rotec Corporation, Taisei-Yuraku Real Estate Co., Ltd. TAISEI U-LEC Corporation, TAISEISETSUBI Co., Ltd., TAISEI HOUSING CORPORATION., Ltd. and Seiwa Renewal Works. TAISEI is working with thesecompanies to promote reductions of CO2 emissions and industrial wastes, as well as to reduce energy consumption.

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* In beginning April 2023, the name of the Group Environmental Management Conference was changed to the Group Sustainability Conference, and the scope has
been expanded to include all sustainability issues.

Refer to:TAISEI Group Material Flow

Data

Environmental Data

Copyright TAISEI CORPORATION All Rights Reserved.

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TAISEI Green Target 2050

TAISEI Green Target 2050

The Three type of Society

The Two Individual Issues

TAISEI Green Target 2050
Group’s Long-Term Environmental Targets (TAISEI Green Target 2050) toachieve the “Realization of a Sustainable and Environmentally Friendly
Society”
Based on the Taisei Group Philosophy “To create a vibrant environment for all members of society” and our Fundamental
Policy on Sustainable Development, the Taisei Group strives to build good quality social capital through corporate activities
centered on construction business in harmony with nature.
The Taisei Group established a long-term environmental target (TAISEI Green Target 2050) to achieve the “Realization of a
Sustainable and Environmentally Friendly Society”. We will work with the whole supply chain, together with the stakeholders
to achieve these environmental targets by defining our “Responsibilities”, “Contributions Through Our Business”, and“Activities / Efforts” to confront the three types of societies as “Decarbonized Society”, “Recycling-Oriented Society”, and“Nature Co-Existing Society”, and to address the two individual issues as “Forest Resources/Forest Environment” and“Water Resources/Water Environment”.

Targets for achieving the three types of society

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65

Decarbonized

Recycling-Oriented

Nature Co-existingSocietySocietySociety

FY2050Develop and disseminate

Increase the green

Develop and disseminate

Targettechnologies and services relating toprocurement rate fortechnologies and services

energy savings, decarbonization of

construction materials,

relating to conserving andconstruction materials, renewable

etc. and promotecreating naturalenergy etc., in order to contribute torecycling of construction

environments, increasingachieve carbon neutrality.

byproducts, in order tobiodiversity etc., in ordercontribute to achieve ato contribute to achieve

circular economy.

Nature Positive.

CE: Achieving and

NP: Achieving anddeepening

deepening Nature Positive

CN: Achieving and deepening
carbon neutrality
Scope 1+2: zero CO2 emissions
Scope 3: zero CO2 emissions of
the supply chain

FY2030CO2

Targetemissions (compared to FY2019)

Emissions
per sales

Totalemissions

Scope

▲50%

1+2

▲32%

Scope 3Scope

circular economy

To minimize negative

Green procurement

impact of construction

rate: 100%

business

Final disposal rate of

To maximize positive

construction by-

impact of business in

products: 0%

harmony with nature

Promotion of Green

Implementation of

procurement

Proposals andReduce final disposal

construction thatrate of construction

contribute to Nature

waste: 3.0% or lessPositive

▲40%

1+2

▲20%

Scope 3* Nature Positivie: Halting and reversing biodiversity loss in order to put nature on a path to recovery.

Targets for addressing two individual issues
Forest Resources & Forest Environment

Water Resources & Water Environment

To minimize negative impact on forest resources andTo minimize negative impact on water resources andforest environment through wood procurement based

water environment by ensuring proper management

on zero deforestation concept

and reducing usage

To maximize positive impact on forest resources andTo maximize positive impact on water resources andforest environment through conservation andwater environment through conservation andrestoration efforts

restoration efforts

Environmental Social Governance Report 2023

66

Compliance with Environment-related Laws and Regulations, etc.
In addition to complying with environment-related laws and regulations throughout the Group, we will achieve “ZeroEnvironmental Accidents” at work sites based on the “Priority Management Items for Work Sites” and other items set forth
by our Safety Division.

Compliance with Environment-related Laws and Regulations

TSA：TAISEI Sustainable Action®, Environmental Impact Reduction Activities
All Group employees participate in activities to reduce environmental impact. A TSA Action List indicating specifictechnologies and activities that are effective in reducing environmental burdens has been prepared, and the effect of theactivities is visualized and quantitatively evaluated using the TSA Point System with the purpose to lead to increased
awareness and changes in behavior of our employees.

TSA：TAISEI Sustainable Action®

The Three type of Society
1. For Realization of a Decarbonized Society

Responsibilities
As construction is the core business of the Taisei Group, the Group has a keen awareness of the effect of its businessactivities on the transition to a decarbonized society and the impact of the transition to a decarbonized society on businessactivities. We consider it to be our responsibility to reduce CO2 emissions from business and related activities to zero by
2050.

Contribution Through Our Business
The Taisei Group identifies the risks and opportunities in anticipation of the achievement of a decarbonized society. We
strive to develop and disseminate technologies and services relating to energy-savings, decarbonization of construction
materials, renewable energy and so on, and to promote possession of renewable energy power sources, so as to contribure
to a decarbonized society.

Activities / Efforts
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1. Setting and managing Group environmental targets
・Managing Group environmental targets based on a climate-related governance system
・Acquisition of SBT re-certification at the 1.5°C level
・Use of Internal Carbon Pricing (ICP) to promote decarbonization-related capital investment, investment in thedevelopment of decarbonization-related technologies, and promotion of TAISEI Sustainable Action (TSA)
2. Reduction of CO2 emissions from business activities
1

Infrastructure development
・Introduction of T-CARBON Watch at all work sites / introduction of T-CARBON E-Site

2

TSA｜Promotion of TAISEI Sustainable Action
・Identification of priority action items for implementation / Use of TSA point system / Reduction of energy use

3

Utilization of renewable energy
・Possession of renewable energy power sources with the aim of covering Group power consumption by 2030
・Use of non-fossil certificates (NFCs), J-credits etc.

4

New capital investment that contribute to decarbonization
・Implementation of investment based on criteria in line with the Group’s environmental targets

3. Reduction of CO2 emissions in the supply chain
1

Development and dissemination of decarbonized construction materials
・Development and dissemination of T-e Concrete® / Development and dissemination of T-Wood® / Creation of J-credits

2

Promotion of engagement
・Implementation of Environmental due diligence
・Ensuring a thorough understanding of the Sustainable Procurement Guidelines
・Cooperation with specialized construction companies with regard to TSA

4. Reduction of customer CO2 emissions
1

Development and dissemination of ZEB, ZEF, ZEH and ZEH-M
・Development and commercial application of next-generation advanced ZEB / Dissemination of "Green Renewal ZEB" /Development and dissemination of energy-saving equipment such as T-Green® Multi Solar / Dissemination of energy
support services / Development and dissemination of T-ZEB simulator

2

ZCB｜Promotion of Zero Carbon Buildings
Demonstration at the Taisei Group’s Satte Research Institute・Development and dissemination of T-ZCB system for evaluating effectiveness in reducing CO2 emissions
・Use of T-LCA Simulator and T-ZCB Chart

5. Development and dissemination of advanced decarbonization technologies
1

CCS (Carbon Capture and Storage)

2

Carbon Capture, Usage and Storage (CCUS) (Carbon Recycled CO2 geothermal power generation technology, etc.)

3

Use of hydrogen, ammonia and other new types of energy sources

4

Conservation and regeneration of blue carbon ecosystems

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2. For Realization of a Recycling-Oriented Society

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Responsibilities
As construction is the core business of the Taisei Group, the Group has a keen awareness of the effect of its businessactivities on the transition to a recycling-oriented society and the impact of the transition to a recycling-oriented society on
business activities. We consider it to be our responsibility to increase the green procurement rate and reduce the final
disposal rate of construction byproducts, in order to achieve a circular economy.

Contribution Through Our Business
The Taisei Group identifies the risks and opportunities in anticipation of the achievement of a recycling-oriented society. We
strive to develop and disseminate technologies and services relating to soil and groundwater contamination
countermeasures, appropriate management of wastes and final disposal sites and so on, and to promote recycling ofindustrial byproducts, in order to contribute to a recycling-oriented society.

Activities / Efforts
1. Reduction of final disposal rate of construction byproducts and industrial wastes
1

Establishment of calculation method to accurately ascertain emissions
・Organization of target items and exclusions / Establishment of efficient and accurate data collection methods

2Compliance with The Plastic Resource Circulation Act
・Establishment of targets for preventing discharge and promoting recycling / Study and implementation of specificmeasures to prevent discharge and promote recycling

3

Waste recycling
・Promotion of recycling of materials using a patrol and collection system / Study of the use of sludge,
wood and other valuable resources4

Appropriate management of construction surplus soil
・Study of methods for grasping the amount of construction surplus soil using E-DAM, etc. and appropriate management
methods / Study of enhanced use of surplus soil between construction site

2. Green procurement1

Use of the Green Procurement Guidelines in collaboration with suppliers

2

Adoption of green procurement items during construction design

3

Use of recycled materials

3. Soil and groundwater contamination countermeasures
1

Provision of purification technologies that match the contamination status

2

Development of new purification technologies
・Purification technologies with low CO2 emissions / Improved efficiency and reliability through the use of DX

4. Waste sorting and volume reduction technologies
1

Sorting and processing of buried wastes

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2

Measures to deal with natural disaster waste
・Development of technologies to quickly determine the proportion of flammable materials through the near-infrared
imaging by drone

5. Final disposal site technologies
1

Waterproof diagnostic system

2

Revitalization of final disposal sites

6. Development and implementation of related technologies and services to promote a recycling-oriented society1

T-e Concrete® using industrial byproducts

2

Energy generation using biomass from wastes

3

Study of the use of concrete rubble, glass shards and other construction wastes

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3. For Realization of a Nature Co-Existing Society

Responsibilities
As construction is the core business of the Taisei Group, the Group has a keen awareness of the effect of its businessactivities on the transition to a nature -co-existing society and the impact of the transition to a nature -co-existing society on
business activities. We observe the Declaration of Biodiversity Preservation by Taisei Group and consider it to be our
responsibility to minimize the negative impact of construction business on the natural environment and biodiversity.

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Contribution Through Our Business
The Taisei Group identifies the risks and opportunities in anticipation of the achievement of a nature co-existing society. We
strive to develop and disseminate technologies and services relating to conserving and restoring natural environments andenhancing biodiversity, and to promote activities that co-exist with nature and maximize the positive impact on the naturalenvironment and biodiversity, in order to contribute to the realization of a nature co-existing society.

Activities / Efforts
1. Creation of added value related to conservation and creation of the natural environments
1

Proposals to achieve co-existence with natural environments
・Promotion of active proposals to help protect natural environments and enhance biodiversity
・Promotion of proposals to introduce green infrastructure with multifaceted functions
・Creation of added value related to conservation of the natural environment and biodiversity
・Promotion of proposals to achieve the 30 by 30 Target

2

Construction that considers the natural environment and biodiversity
・Promotion of construction that considers the natural environment and biodiversity in order to minimize the impact on
the natural environment and help achieve nature positivity

3

Support for operation and management
・Promotion of support for operation and management in order to conserve the natural environment and biodiversity

2. Development of technologies to achieve a nature co-existing society
1

Development of technologies to protect and create good natural environments
・Development of planning and assessment technologies to protect and create natural environments / Development ofconstruction technologies to protect the natural environment

3. Promotion of cooperation to achieve a nature co-existing society
1

Promotion of activities to protect the natural environment in cooperation with stakeholders
・Promotion of activities in cooperation with specialized construction companies and other contractors
・Promotion of activities in cooperation with local communities, NPOs, NGOs etc.
・Promotion of sustainable use of ecosystem services in cooperation with customers
・Promotion of environmental education activities that lead to changes in individual behavior

2

Participation in initiatives, etc.
・Participation in initiatives etc. that help to achieve a nature co-existing society

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The Two Individual Issues
1. For Resolving individual issues related to the Forest Resources and theForest Environment

Responsibilities
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As construction is the core business of the Taisei Group, the Group has a keen awareness of the effect of its businessactivities on forest resources and the forest environment and the impact of forest resources and the forest environment on
business activities. We consider it to be our responsibility to minimize the negative impact of construction business on forest
resources and the forest environment, by implementing wood procurement zero deforestation.

Contribution Through Our Business Responsibilities
The Taisei Group identifies risks and opportunities related to forest resources and the forest environment. We strive todevelop and disseminate technologies and services relating to conservation, creation and restoration of forest resources,
and to promote business activities that are in harmony with nature in order to maximize the positive impact and contribute toachieve sustainable forest resources and forest environments.

Activities / Efforts
1. Sustainable wood use
1

Appropriate wood procurement
・Wood procurement status survey and guidance・Sustainable wood procurement

2

Promotion of wooden construction
・Promotion of local wood use
・Promotion of reuse and recycling of wood

2. Restoration of forest resources
1

Sustainable use of planted forest
・Promotion of wooden construction
・Support for sustainable forest management

2

Conversion of planted forests into natural forests
・Creation of forests that function as green infrastructure through conversion of planted forests into natural forests

3. Conservation of good forests
1

Evaluation of forest
・Visualization of multifaceted functions of forests

2

Conservation activities
・Implementation of forest conservation activities in cooperation with companies and communities

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Sustainable wood use
Appropriate wood procurement

Restoration of forest resources
Sustainable use of planted

Conservation of good forests
Evaluation of forest

forests
Wood procurement statussurveySustainable wood procurement

Visualization of multifaceted
Promotion of wooden

functions of forests

construction
Support for sustainable forest
management

Promotion of wooden

Conversion of planted forests

construction

into natural forests

Conservation activities
Implementation of forest

Promotion of local wood use
Promotion of reuse andrecycling

Creation of forests that function

conservation activities inas green infrastructure throughcooperation with companies andconversion of planted forests

communities

into natural forests

Carbon capture and storage

2. For Resolving individual issues of the Water Resources and the Water
Environment

Responsibilities
As construction is the core business of the Taisei Group, the Group has a keen awareness of the effect of its businessactivities on water resources and water environment and the impact of water resources and water environment on businessactivities. We consider it to be our responsibility to exercise appropriate management and reduce water use, in order tominimize the negative impact of construction business on water resources and water environments.

Contribution Through Our Business Responsibilities
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The Taisei Group identifies risks and opportunities related to with water resources and water environments. We strive todevelop and disseminate technologies and services relating to conservation and restoration, and to promote businessactivities that are in harmony with nature in order and to maximize the positive impact and contribute to sustainable water
resources and water environments.

Activities / Efforts
1. Sustainable water use
1

Effective use and reduction of water use (the Water 3Rs)
・Effective use of water resources and efforts to save water through TSA at all workplaces
・Promotion of the use of reclaimed water, treated wastewater and rainwater・Collection and management of data on water use and discharge

2

Contribution to construction of water infrastructure facilities
・Construction of infrastructure facilities (dams, water and sewerage facilities, underground rainwater storage tanks forbuildings, permeable pavement etc.) and green infrastructure facilities (flood mitigation dams, flood control basins,
rain gardens etc.)

3

Business activities in high water stress regions・Study of the use of water resources in high water stress countries and regions, and implementation of measures
・Management of business activities that impact regional water resources and appropriate response to droughts, etc.

2. Restoration of water resource
1

Development and dissemination of technologies and services
・Efforts to develop technologies to achieve Net Zero Water through Zero Water Buildings, etc.
・Enhancement of evapotranspiration function by greening rooftop and walls and urban forest cultivation
・Proactive adoption of water-saving/design and equipment at properties designed and constructed by Taisei andTaisei-owned buildings etc.

2

Restoration of water environment
・Research and development of technologies to restore biotopes and other water environments and application to
construction work
・Development of water environment monitoring technologies
・Cooperation with stakeholders (government agencies, local communities, orderer, subcontractors etc.) with regard toenvironmental assessments, etc.

3

Purification of contaminated soil and groundwater
・Development of technologies to perform low-load purification of contaminated groundwater and application to
construction work

3. Conservation of water resources
1

Reduction of water environment burden
・Prevention of water contamination during construction
・Appropriate management of construction wastewater based on laws and regulations
・Development and application of technologies for monitoring water quality and environment

2Conservation of groundwater・Securing the watershed protection functions of forests

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・Development of groundwater conservation construction technologies and application to construction work
3

Contribution to flood prevention, restoration etc.
・Rapid response for disaster recovery
・Development and use of flood prediction, assessment and response technologies

Sustainable water use

Restoration of water resources

Conservation of water resources

Effective use and reduction of

Development and dissemination

Reduction of water environment

water use (the Water 3Rs)of technologies and services

burdenEffective use of water resources

Efforts to achieve Zero Water

Prevention of waterand efforts to save water

Buildings, etc.

contamination during construction

Enhancement ofDevelopment and application of

Promotion of use of reclaimed

evapotranspiration function bytechnologies for monitoring water

water, treated wastewater andgreening rooftop and walls andquality and environment

rainwaterurban forest cultivation, etc.

through TSA

Collection and management ofdata on water use and discharge

Contribution to construction of

Restoration of water

water infrastructure facilities

environment

Conservating of groundwater
Securing the watershed

Dam and other infrastructure

Research and development ofconstruction, construction oftechnologies to restore biotopes,

flood control basins and otheretc. and application togreen infrastructure

construction

protection functions of forests
Development of groundwater
conservation construction
technologies and application to
construction work

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Sustainable water use

Restoration of water resources

Conservation of water resources

Purification of contaminatedContribution to flood prevention,soil and groundwater

restoration etc.

Development of low-loadRapid response for disasterpurification technologies andrecovery

application to construction work

Development and use of flood
prediction, assessment andresponse technologies

Copyright TAISEI CORPORATION All Rights Reserved.

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Decarbonized Society

Policies and Basic Approach

Goals and Targets

Initiatives

Activities / Efforts

Data

For Realization of a Decarbonized Society
Policies and Basic Approach
The TAISEI Group has established the Group's long-term environmental target "TAISEI Green Target 2050" to "Realizationof a Sustainable and Environmentally Friendly Society" as stated in the Environmental Policy, which defines our
responsibilities, contributions through our business and initiatives toward the realization of a decarbonized society. The"Fundamental Concept" is described in the Environmental Policy.

Refer to:Environmental Policy

TAISEI Green Target 2050

Responsibilities
As construction is the core business of the Taisei Group, the Group has a keen awareness of the effect of its businessactivities on the transition to a decarbonized society and the impact of the transition to a decarbonized society on businessactivities. We consider it to be our responsibility to reduce CO2 emissions from business and related activities to Zero by
2050.

Contribution Through Our Business

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The Taisei Group identifies the risks and opportunities in anticipation of the achievement of a decarbonized society. We
strive to develop and disseminate technologies and services relating to energy-savings, decarbonization of construction
materials, renewable energy and so on, and to promote possession of renewable energy power sources, so as to contribure
to a decarbonized society.

Risks and Opportunities
The Taisei Group analyzes risks and opportunities related to risk management and compliance with climate change in detailthrough the disclosure of information recommended by the Task Force on Climate-related Financial Disclosures (TCFD).

Information Disclosure Based on TCFD Recommendations

Policies / Commitments
Action Guidelines for Taisei: Promoting environmental conservation and creation
Environmental Policy
Environmental Targets
TAISEI Green Target 2050: Realization of a decarbonized society
Promise of Eco-First
Taisei Group Sustainable Procurement Guidelines
Taisei Group Green Procurement Guideline
Green Procurement Standard Guideline
Medium-Term Business Plan (2021–2023): To target the front-runner status in the environmental sector, accelerating our
initiatives toward carbon neutrality

Refer toAction Guidelines for Taisei Personnel

Environmental Policy

Medium-Term Business Plan

Goals and Targets
TAISEI Green Target 2050: Group's long-term environmental targets
CN: Achieving and deepening carbon neutrality

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Scope 1+2, zero CO2 emissions
Scope 3, zero CO2 emissions of the supply chain

TAISEI Green Target 2050

2030 Environmental Target

Environmental Target

Emissions per sales

Total emissions

Scope 1+2

-50%

-40%

Scope 1+2 Scope 3

-32%

-20%

＊ compared to FY2019

Roadmap

Click here for detail

Annual Environmental Target

Annual Environmental Target

Initiatives
TCFD

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SBT
CDP (Climate Change)
GX League Basic Concept (Ministry of Economy, Trade and Industry)
United Nations Global Compact “Environment”
Challenge Zero (Japan Business Federation)
Voluntary Environmental Action Plan for the Construction Industry (Japan Federation of Construction Industry)

Refer to:Initiatives Environmental

Activities / Efforts
Measures towards Reduction

CO2 Emissions from Business Activities (Scope 1 + 2)
Scope 1 is mainly the emissions from fuel use for heavy machinery used at construction worksites and fuel consumption at
asphalt composite materials plants and PC factories that manufacture precast concrete. Scope 2 is the electricity and heat
used at Head Office, branches, sales offices, plants and worksites. For the reduction of Scope 1 emissions, the Taisei Groupis working on the conversion to hybrid and electric heavy machinery and the utilization of alternative fuels. To cut Scope 2
emissions, besides holding renewable energy sources, we are conducting the conversion of branch offices and precast
concrete plants into ZEB.

Refer to:Renewable Energy Sources Owned by the Group

CO2 Related to Business Activities (Scope 3)
Scope 3 is mainly CO2 emitted until materials such as steel and ready-mixed concrete used in construction are produced
and CO2 released during the use of buildings after delivery. The Taisei Group is promoting the selection of materials with low
CO2 impact (green procurement) to reduce Scope 3 CO2 emissions. In addition, we are actively conducting the development

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®

and dissemination of technology for environmentally friendly concrete, T-eConcrete , which significantly reduces CO2
emissions, and wooden construction using wood that stores CO2. Moreover, to reduce CO2 emissions from buildings after
delivery, we are working on the advancement and popularization of Net Zero Energy Building (ZEB) as a leader of ZEBs,
and also working on the Green Renewal ZEB project, which renovates existing buildings to convert them into ZEBs.

Avoided Emissions

Decarbonization Technologies for Each Phase of Construction
The TAISEI Group is active in each phase of the construction process. Through the development of low-carbon materials,
efforts to reduce CO2 emissions at the construction stage, developing ways to reduce energy consumption during buildinguse, and providing technologies and services to reduce CO2 emissions and so on, we contribute to a sustainabledecarbonized society.

T-ZCB (Zero Carbon Building)
To promote the construction of Zero Carbon Buildings that achieve net zero CO2 emissions during the life cycle of thestructure, Taisei first visualized the CO2 emissions throughout the building's life cycle and the effectiveness of CO2 reduction
technologies at the initial planning stage, and then constructed a T-ZCB (Zero Carbon Building) as a system thatsystematically evaluates the decarbonization of the structure.
Application of this system will enable us to support customers in planning construction that is in line with their CO2 emissions
reduction goals as part of our efforts to realize a carbon-neutral society.
Moreover, we will employ T-ZCBs in the construction of the Taisei Group's Generation Technology Laboratory, which isunder construction, to verify their effectiveness.

Fig. 1 CO2 emissions throughout the life cycle of the building(circle size indicates degree of CO2 emissions in that phase)
Start of Construction of a Generation Technical Laboratory towards the Realization of Zero-Carbon Buildings

Taisei Corporation and Taisei Rotec Corporation have begun work on the construction of a group Generation Technology
Laboratory in Satte City, Saitama Prefecture to develop diverse technologies and conduct field trials that will contribute to
the realization of carbon neutrality. With the completion of its facilities by the end of October 2024 and gradual

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commencement of their use, the aim is to realize Japan’s first zero-carbon
building as a newly established research and management facility.

T-LCA Simulator CO2
We have developed and are using the T-LCA Simulator CO2, a tool for evaluating CO2 emissions throughout the life cycle ofbuildings by visualizing CO2 emissions and reduction effects through the phases of procurement, construction, operation,
repair, and demolition of building at the initial stage of planning.

Ⅰ. Zero Carbon Design
Reducing CO2 Emissions in the Procurement Phase: Selection of Materials
that Do Not Emit CO2

T-eConcrete® environmentally friendly concrete that dramatically reduces CO2 emissions
More than 90% of CO2 associated with the manufacture of concrete materials is emitted during the manufacture of Portland
cement. By replacing some or all of the cement used in concrete material with industrial byproducts or carbon-recycling
products, T-eConcrete® makes CO2 emission reduction, or even net negative CO2 emissions, possible.

T-Carbon Mixing® that sprays and fixes CO2 during concrete mixing
TAISEI has developed a technology called T-Carbon Mixing® to fix approximately 10 kg/m3 of CO2 in concrete. During theconcrete mixing stage, CO2 is sprayed directly on the concrete materials to fix the CO2 while maintaining the alkalinity that isessential to for corrosion prevention of reinforcements. Application of this technology to T-eConcrete® will make it possible tofurther reduce CO2 emissions.

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Use of wood materials in that fix CO2
Promotion of wood use can mitigate climate change throughCO2 fixing. At the same time, Wooden spaces will help tomaintain physical and emotional health. TAISEI promotes theconstruction of wooden buildings using lumber, laminatedwood, and other wooden materials that absorb and fix CO2
from the atmosphere as they grow.

Refer to:Forest Resources / Forest Environment

Ⅱ. Zero Carbon Construction: Reducing CO2 in the Construction Phase

TSA：TAISEI Sustainable Action®, Environmental Impact Reduction Activities
All Group employees participate in activities to reduce environmental impact. A TSA Action List indicating specifictechnologies and activities that are effective in reducing environmental burdens has been prepared, and the effect of theactivities is visualized and quantitatively evaluated using the TSA Point System with the purpose to lead to increased
awareness and changes in behavior of our employees.

Refer to:
TSA: TAISEI Sustainable Action®

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"ZEB Ready" certification obtained for temporary worksite office

As a pioneering achievement at the construction stage,
TAISEI actively incorporated generic energy-saving
technologies in temporary worksite offices such as thermal
insulation performance improvement and installation of highefficiency air conditioning and plumbing equipment, LED
lighting and so on, in order to obtain a ZEB building
certification.

System to Measure and Aggregate Worksite CO2 Emission Data
We are promoting the development and operation of the
System to Measure and Aggregate Worksite CO2 Emission
Data, which efficiently collects, consolidates, and visualizes
Scope 1 and 2 at worksites utilizing cameras and AI image
recognition functions installed at construction sites, external
system information such as electricity consumption,
electronic manifests, and in-house system information suchas fuel purchases. As of FY2023, this is being implemented
at all worksites in Japan.

Ⅲ．Zero Carbon Operation
Reducing CO2 Emissions in the Operation Phase: TAISEI Total Managementof ZEB

Energy Support Services (ESS) during operation

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Operational data is collected from handed over ZEB
buildings and proposals for energy saving and soon
are issued in the form of an energy report. The
building owner can achieve further improvements inenergy-saving operation by requesting improvements,
etc. to the management company.

* ZEB is an abbreviation of "Net Zero Energy Building," which are buildings that strive to reduce their annual primary energy consumption to zero while
realizing a comfortable indoor environment.

Newly constructed ZEB
TAISEI Corporation defined "urban-style Zero Energy Building (ZEB)" as one with a zero annual energy balance for theindividual building even on a narrow site in an urban area, regardless of the sunlight conditions. In 2014, we built a ZEB
Demonstration Building in the Taisei Advanced Center of Technology (in Yokohama City). After this, the Taisei Group has
been building on its extensive track record and know-how through projects that include office buildings, public researchfacilities, and renovations. We are working to promote and develop ZEBs in various facilities by proposing them tocustomers as an environmentally friendly solution that enhances real estate value.

Green Renewal ZEB
In Japan, CO2 emissions from buildings, such as offices and residences, are estimated to account for about one-third of all
CO2 emissions.
In addition, on an annual basis, the total floor area represented by new buildings is only about 1% of the total floor area of allbuildings in the nation.
Therefore, as a measure toward achieving carbon neutrality, it is essential to renovate existing buildings into buildings withlow environmental impacts. The Taisei Group actively promotes converting existing buildings into ZEBs through our Green
Renewal ZEB initiative.

ZEF
TAISEI Corporation defines a Net Zero Energy Factory (ZEF) as a production facility that aims to reduce its annual primaryenergy balance to zero with energy conservation and generation. For ZEF, we appropriately assess the energy that will be
consumed in the factory, including air conditioning, ventilation, lighting, hot water supply, and elevators in production areasof the plant, which were not previously included in ZEB assessments. We will promote the application of ZEF and enhance
decarbonization activities under the name of “Green ZEF®".

ZEH

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TAISEI HOUSING CORPORATION, which constructs concrete houses, is working to promote the construction of "ZeroEnergy Houses (ZEH)." ZEH specifications are additionally provided for the company's Palcon residences, which
incorporate precast concrete construction method that has durability, disaster-resilience, and offer safe and comfortableliving environments. This makes it possible to provide housings that are both environment- and household budget-friendly.

ZEH-M
TAISEI U-LEC Co Ltd., which constructs apartment buildings, is promoting the construction of Zero Energy House
Apartment Buildings (ZEH-M). In addition, TAISEI-Yuraku Real Estate Co.,Ltd. which conducts real estate business, isworking to convert apartments into ZEH-M. Such projects are implemented through cooperation on the part of Group
companies, with TAISEI-Yuraku Real Estate Co Ltd., serving as the outsourcer and TAISEI U-LEC Co Ltd., performing theconstruction work.

Advanced Technologies to Achieve Decarbonization

Renewable Energy Sources Owned by the Group
Toward the realization of "TAISEI Green Target 2050," the Group's long-term environmental target, the Taisei Group has
been promoting the possession of renewable energy sources with the aim of covering the Group's electricity consumption by
fiscal 2030. Furthermore, to achieve zero emissions in Scope 2, we will utilize environmental value (non-fossil certificates)
created from our own power sources.

Optimization of supply and demand using CEMS
A Community Energy Management System (CEMS) is a system that manages the energy for an entire community. Theenergy center is connected to individual customers via IT and optimizes the energy balance.
TAISEI worked with energy companies to develop a CEMS for the I-block area around Shin-Sapporo Station in Hokkaido.
The goal was to incorporate knowledge from both the supply side and the demand side to achieve energy optimization ofboth supply and demand. Statistical AI is used for factor analysis in the event of efficiency deterioration and in anticipating
demand. This achieves not only supply and demand optimization but also makes the energy system more visible and easy
to understand.

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Example of CEMS screen

I-block area around Shin-Sapporo Station (Hokkaido)

Decarbonization through factory P2G system

The purpose of a Power to Gas (P2G) system is to convert
excess power from renewable energy into gaseoushydrogen to achieve carbon neutrality. A small-scale
package P2G system, which is being developed by
Yamanashi Prefecture in cooperation with a privatecompany, has been introduced at the Kawagoe Factory of
TAISEI U-LEC Co., Ltd. The green hydrogen produced by
the photovoltaic power generation system installed at thefactory is burned in a hydrogen boiler, and the heat that isderived is used in the curing process for the manufacture ofprecast concrete panels that will become concrete members
for construction, aiding in the decarbonization of this factory. When the power produced by the photovoltaic power
generation system at the plant exceeds that amount consumed in-house, the excess power is consigned to another locationof the TAISEI Group, thus consumed electricity can be used up without curtailing output.

Carbon Capture and Storage (CCS) technology
A technology to safely store the CO2 emitted from power stations, steel plants, cement factories and other facilities in a deep
underground reservoir is being developed.

Carbon recycling CO2 geothermal power generation technology

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A revolutionary geothermal power generation technology is being developed in which CO2 is force-injected into geothermal
reservoirs heated to a high temperature by geothermal heat and then recovered to generate electricity that is not dependenton hydrothermal resources.

Floating type offshore wind power generation technology
TAISEI is developing a simulation technology to accurately predict the quantity of power generated through wind power
generation as well as concrete float foundation technologies.

Hydrogen use technologies
TAISEI is participating in a demonstration project to built a hydrogen supply chain from renewable energy-derived hydrogento storage, transport, supply and use.

Data

Environmental Data

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Avoided Emissions

Avoided Emissions

Green Renewal ZEB

T-Green® Multi Solar

Avoided Emissions
The Taisei Group aims to contribute to reducing society's CO2 emissions through the Group's technologies and solutions.
For Green Renewal ZEB and T-Green® Multi Solar, we have calculated the avoided emissions, which indicates how muchthe use of our products and services contributes to reducing CO2 emissions in society overall, based on the GX League's"Basic Guidelines for Disclosure and Evaluation of Climate-related Opportunities." (*1)

Calculation results(unit: t-CO2)

Target product/service (technology)*1

FY2022

1. Green Renewal ZEB

10,006

2.T-Green® Multi Solar (*2)

1,530

The avoided emissions are calculated as the difference between the greenhouse gas emissions of existing products and services (baseline) and those of new
products and services, and refers to new products and services that contribute to the mitigation of climate change (impacts) in society overall. (GX League,"Basic Guidelines for Disclosure and Evaluation of Climate-related Opportunities")*2

The avoided emissions of "Green Renewal ZEB" and "T-Green® Multi Solar" overlap somewhat.

1. Green Renewal ZEB
In Japan, CO2 emissions from buildings, such as offices and residences, are estimated to account for about one-third of all
CO2 emissions.
In addition, the total floor area of new buildings built in a year accounts for only about 1% of the total buildings in Japan.
Therefore, as a measure toward achieving carbon neutrality, it is essential to renovate existing buildings into buildings withlow environmental impacts. The Taisei Group actively promotes converting existing buildings into ZEBs through our Green
Renewal ZEB initiative.
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Product/service

Green Renewal ZEB(technology) that

Initiative to renovate existing buildings into ZEBs (Net Zero Energy Buildings)

contributes to reduction

https://www.taisei-techsolu.jp/solution/ct_renewal/zeb_zeb.html

Qualification

Reduce CO2 emissions in existing buildings through energy-saving by improved
thermal insulation, energy-saving high-performance equipment, energy-saving
systems, and so forth, and energy creation by installing solar panels.

Calculation method(CO2 emissions of existing building / year − CO2 emissions after renewal / year) × 20
years (assumed number of years of operation after renewal) − CO2 emissions fromrenewal construction★Baseline: CO2 emissions of existing buildings

Possible negative effects

None

Third-party certification

None

Future goals

240,000 t (FY2030)
720,000 t (FY2050)

Construction example

Kansai Branch (ZEB Ready)~Practicing Advanced + General-Purpose ZEB Technology to Meet Diverse Client Needs~

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Location

Chuo-ku, Osaka-shi, Osaka

Completion

1992 (first built) / 2023 (Green Renewal ZEB)

Structure

Reinforced concrete, 2 basement floors / 9 floors above ground, total floor area of 13,700 m2

Type of ZEB

ZEB Ready acquired (BEI = 0.37)

CO2 emissions

Reduction of 365 t of CO2 / year (reduction rate: 52.7%)

Utility bills

Reduction of 17.6 million yen / year (reduction rate: 44.3%)

2. T-Green® Multi Solar
Medium-rise and high-rise buildings in city centers have small rooftops often filled with various MEP equipments. Therefore
it is impossible to secure space for the installation of photovoltaic panels.
By sandwiching solar cells between laminated glass, the building's exterior itself, such as the walls and windows, becomes a
power generation system, thereby facilitating efficient solar power generation.
In addition, since the building itself has a self-sustaining power supply, it can use electricity even in the event of a power
outages.

Product / service“T-Green® Multi Solar”(technology) that contributes

A glass-integrated power generation system with a high-quality design thatto reduction

effectively utilizes the exterior of a building (walls and window surfaces) togenerate solar power.

https://taisei-techsolu.meclib.jp/techsol_320/book/#target/page_no=3

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Qualification

Reduce buildings' CO2 emissions by generating energy using the exterior walls
and windows, which was not possible before.

Calculation method(Estimated power generation calculated from the installation area × CO2
reduction effects) × 30 years (power generation warranty period)
CO2 reduction effects are based on the labeling guidelines of the Japan
Photovoltaic Energy Association.
★Baseline: No T-Green® Multi Solar installation (building with no exterior power
generation)

Possible negative effects

None

Third-party certification

None

Future goals

340,000 t (FY2030)

Construction example

Furubira Municipal Complex “Kanaeru”

Location

Furubira-gun, Hokkaido

Completion

February 2022

Structure

Reinforced concrete, 3 floors above ground, total floor area of 3,806 m2

Type of ZEB

ZEB Ready acquired (BEI＝0.49)

See-through type: 217 m2, total of 12 kW

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See-through types of non-standard sizes are installed on the southeast and southwest
windows.
The main government office building is a ZEB complex that integrates passive technologies, such as exterior insulation andnatural ventilation, with a combination of various active technologies, such as a HP system and earth tubes that utilize thegeothermal heat peculiar to Hokkaido. The see-through type is used on the southeast and southwest sides, and together
with the solar cell modules at the top of the disaster prevention building, it has a power generation capacity of 26 kW and astorage battery with a capacity of 24 kWh. In addition to an emergency generator that can operate for 72 hours, thisdisaster-resistant government building fully implements BCP measures.

Refer to:Decarbonized Society

Copyright TAISEI CORPORATION All Rights Reserved.

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Recycling-Oriented Society

Policies and Basic Approach

Goals and Targets

Initiatives

Activities / Efforts

Data

For Realization of a Recycling Oriented Society
Policies and Basic Approach
The TAISEI Group has established the Group's long-term environmental target "TAISEI Green Target 2050" to "Realizationof a Sustainable and Environmentally Friendly Society" as stated in the Environmental Policy, which defines our
responsibilities, contributions through our business and initiatives toward the realization of a recycling-oriented society. The"Fundamental Concept" is described in the Environmental Policy.

Refer to:Environmental Policy

TAISEI Green Target 2050

Responsibilities
As construction is the core business of the Taisei Group, the Group has a keen awareness of the effect of its businessactivities on the transition to a recycling-oriented society and the impact of the transition to a recycling-oriented society on
business activities. We consider it to be our responsibility to increase the green procurement rate and reduce the final
disposal rate of construction byproducts, in order to achieve a circular economy.

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Contribution Through Our Business
The TAISEI Group identifies the risks and opportunities in anticipation of the achievement of a recycling-oriented society. We
strive to develop and disseminate technologies and services relating to soil and groundwater contamination
countermeasures, appropriate management of wastes and final disposal sites and so on, and to promote recycling ofindustrial byproducts, in order to contribute to a recycling-oriented society.

Risks and Opportunities
As the transition to a recycling-oriented society becomes an important issue internationally, there is a requirement forsustainable procurement through the supply chain, such as resource conservation, the use of recyclable and reusable
materials, and measures against the pollution of the natural environment caused by waste such as plastics. Inadequate
efforts to create a recycling-oriented society may result in damage to the Company’s corporate value. The Taisei Group iscommitted to the effective use and recycling of resources at its worksites, including the proper separation and managementof construction byproducts and the development of a recycling system. At the design stage, in accordance with the Taisei
Green Procurement Guidelines*, we are promoting the use of materials and equipment with low environmental impact, suchas materials and equipment that generate less construction waste during construction and demolition, materials andequipment that use a large amount of recycled materials, and materials and equipment that are suitable for recycling after
demolition. The Taisei Group will contribute to the realization of a recycling-oriented society by reducing construction
byproducts and adding new value to promote the efficient and recyclable use of resources.

Policy / Commitment
Action Guidelines for Taisei: Promoting environmental conservation and creation
Environmental Policy
Environmental Targets
TAISEI Green Target 2050: Realization of a recycling oriented society
Promise of Eco-First
Taisei Group Sustainable Procurement Guidelines
Taisei Group Green Procurement Guideline
Green Procurement Standard Guideline
Construction byproduct processing manual

Refer to:Action Guidelines for Taisei Personnel

Environmental Policy

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Goals and Targets
TAISEI Green Target 2050: Group's long-term environmental targets
CE: Achieving and deepening circular economy

Green procurement rate: 100%
Final disposal rate of construction by-products: 0%

TAISEI Green Target 2050

2030 Environmental Target
Reduction final disposal rate of construction waste: 3.0% or less

Roadmap

Click here for detail

Annual Environmental Target

Annual Environmental Target

Initiatives
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United Nations Global Compact “Environment”
Plastic Smart (Ministry of the Environment)
Water project (Ministry of the Environment)
Japan Partnership for Circular Economy: J4CE (Ministry of the Environment, Ministry of Economy, Japan Business
Federation)

Refer to:Initiatives Environmental

Activities / Efforts
TAISEI Corporation works to add new value to the various by-products generated by its business activities and society, topromote efficient and cyclical use of resources in order to contribute to achieve a circular economy.

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Activities for in Effective Resource Utilization

Patrol collection system to promote use of the National Permit System
The construction material scraps that are emitted from construction sites are usually separated at intermediate processing
sites. However, even scraps that have been separated are difficult to recycle, and so most of them end up in landfills.
Accordingly, the most effective way for recycling such construction material scraps is to use the National Permit System*that enables construction scraps to be recycled as construction materials or the like at manufacturer factories.
TAISEI uses this system. Moreover, in order to increase the efficiency of transport during use of the system, TAISEI has
deployed a Construction By-products Patrol Collection System that unifies the rules of scrap transportation amoung
construction material among manufacturers were standardized and makes the same vehicle to patrol multiple sites. At
workplaces in the Tokyo metropolitan area, the system collects valuable resources and multi-item construction material
wastes including plastic waste and helps to recycle construction material resources.
TAISEI is working to introduce this system to more construction sites, and contribute to promote a circular economy in theconstruction industry.
* National Permit System:
A system that with the permission of ministry of the Environment Manufacturers of building materials conduct wide-area collection of their own manufactured
product wastes (scraps from product manufacture, etc.) and appropriately process them or recycle them as raw material for products.

Promotion of Resource Recycling of Steel Materials Through the Introduction of "T-Near
Zero Steel"With the aim of promoting the construction of Zero Carbon Buildings that can realize net zero CO2 emissions in the life cycleof buildings, Taisei Corporation will utilize T-Near Zero Steel, steel materials made from iron scrap, in collaboration withTOKYO STEEL MANUFACTURING CO., LTD. We will contribute to the reduction of newly introduced natural resources
through the promotion of resource recycling of steel materials. We will also contribute to the reduction of CO2 emissions byusing green electricity for the electricity to be used in the steel manufacturing process.

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T-eConcrete® That Utilizes Industrial Byproducts
T-eConcrete® is environmentally friendly concrete that utilizes industrial by-products, such as blast furnace slag (a byproduct of steelmaking) and fly ash (a by-product of coal-fired power plants) as cement substitutes.
It is used as a construction material for tunnel segments and natural stone-like building materials (stone-like building
materials used as secondary products of T-razzo zero cement type).

Producing energy from sewage treatment processes
TAISEI is working to develop and demonstrate new sewage treatment processes that generate methane from the organic
matter contained in the sewage that is emitted from our daily life.

Refer to:Water Resources & Water Environment

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Activities to Reduce Environmental Impact from Waste

Recycled Use of Waste Plastics
Construction materials, packaging materials, and other waste plastics are
sorted thoroughly and properly recycled by specialized disposal companies. In
addition, we are implementing measures to utilize waste plastic by combining itwith waste wood products and creating artificial recycled wood products.
Taisei Corporation supports the Plastics Smart Campaign by the Ministry of theEnvironment.

*Plastics Smart
A campaign by the Ministry of the Environment to promote “a smart way of dealing with plastic” nationwide, including
thorough elimination of littering and illegal dumping, and thorough reduction of single-use plastic and sorting and collection.

Cooperation with suppliers based on Green Procurement Guidelines
In 2001, TAISEI Corporation formulated Green Procurement Guidelines with the aim of selecting and promoting the use of
construction materials and methods with low environmental impact in the design, construction, operation and demolition
stages of structures. The Guideline refers and reflects the content of the Act on Promoting Green Procurement (Act on
Promotion of Procurement of Eco-Friendly Goods and Services by the State and Other Entities) and the target items arereviewed each year and new items are added. In FY2021, 106 items are listed in the guideline.
In addition, TAISEI implement target management for the number of adopted green purchasing items during construction
and design stages; an average of 11.7 items were purchased in FY2021. Use of the Guideline on a company-wide basis willlead to cyclical use of resources as well as energy conservation, reduction of CO2 emissions, resource conservation,
elimination of the use of hazardous substances and conservation of the natural environment.

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Green Procurement Guidelines（excerpt）
A set of guidelines on what the Company and its suppliers should do together. They can be summarized about
selection of Green Procurement as
1

Low life-cycle CO2: (LCCO2): Lifetime CO2 emissions during the entire period of use, from construction to disposal

2

Energy and resource conservation

3

Low amount of construction waste generated during construction and demolition

4

Consideration of the use of recycled materials and recycling

5

Freedom from harmful substances

6

Consideration of biodiversity and local environment*LCCO2 ： Lifetime CO2 emissions during the entire period of use, from construction to disposal

In addition, We have Green Purchasing Standard Guidelines. Guidelines that define important aspects of reducing theenvironmental impact when purchasing office supplies, equipment, office automation (OA) equipment, etc., or receiving
services for use in offices.

Waste Separation and Volume Reduction Technologies

Separation of buried wastes
By separating wastes and reducing waste volume, TAISEI reduces the environmental burden of the wastes generated byillegal dumping and natural disasters (buried wastes and disaster wastes) so they can be appropriately dealt with as usable
recycle resources and so on. Viscous soil that is sticky and has a high water content is mixed with T-Quick Dry, a separation
support material, and then screened with a sieve. This increases separation efficiency and restores the healthy soil
environment.
Moreover, the disaster wastes of at the Great East Japan Earthquake of 2011 were also separated and volume-reduced, tocontribute to reduce environmental burdens.

Final Disposal Site Technologies for Next Generation
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Building, maintaining and restorating final disposal sites
TAISEI Corporation's technologies for final waste disposal sites are environmentally conscious technologies that take into
account not only site creation but also site maintenance and restoration to improve the on site environment.

Technologies to Restore Polluted Soil and Groundwater
Compared to conventional excavation and removal techniques, TAISEI’s soil and groundwater purification technologies canrestore a sound soil and groundwater environment with little environmental impacts in terms of CO2 emissions and so on.
TAISEI's T-CIM®/SoilReme work support system ensures rapid exchange of information, making it possible to efficiently
purify soil and groundwater.

Onsite Soil Cleaning Technology
TAISEI's onsite soil cleaning technology can handle even the contaminated soil
with a large amount of fine particle that used to be difficult to purify.

In situ purification of deep ground using chemical decomposition

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A special purifying agent is mixed and agitated in the underground to decomposes pollutants by oxidation-reduction andrender them harmless.

Flushing and bio-sparging® method
A solution containing air and nutrient salts that activate the purification bacteria in
the groundwater is provided to purify the benzene and cyanogen compounds andso on.

T-SoilReme® HeatBio Microbial purification technology
A ground heating type microbial purification technology in which the volatileorganic compounds (VOCs) that have accumulated in clay layers are heated byelectric current from electrodes and are desorbed into groundwater, where they
are purified by microorganisms.

Refer to:Compliance with Environment-related Laws and Regulations

Data

Environmental Data

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Nature Co-Existing Society

Policies and Basic Approach

Goals and Targets

Initiatives

Activities / Efforts

Data

For Realization of a Nature Co-Existing Society
Policies and Basic Approach
The TAISEI Group has established the Group's long-term environmental target "TAISEI Green Target 2050" to "Realizationof a Sustainable and Environmentally Friendly Society" as stated in the Environmental Policy, which defines our
responsibilities, contributions through our business and initiatives toward the realization of a nature co-existing society. The"Fundamental Concept" is described in the Environmental Policy.

Refer toEnvironmental Policy

TAISEI Green Target 2050

Responsibilities
As construction is the core business of the Taisei Group, the Group has a keen awareness of the effect of its businessactivities on the transition to a nature -co-existing society and the impact of the transition to a nature -co-existing society on
business activities. We observe the Declaration of Biodiversity Preservation by Taisei Group and consider it to be our
responsibility to minimize the negative impact of construction business on the natural environment and biodiversity.

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Contribution Through Our Business Activities
The Taisei Group identifies the risks and opportunities in anticipation of the achievement of a nature co-existing society. We
strive to develop and disseminate technologies and services relating to conserving and restoring natural environments andenhancing biodiversity, and to promote activities that, co-exist with nature and maximize the positive impact on the naturalenvironment and biodiversity, in order to contribute to the realization of a nature co-existing society.

Risks and Opportunities
There are concerns that construction work will have a significant impact on the natural environment and biodiversity. For thisreason, we provide customers with solutions that consider the natural environment and biodiversity and create a richenvironment throughout the planning, design, construction and post-completion building operation stages. At the planningand design stages, we respond appropriately to environmental laws and regulations, create added value related to theconservation of the natural environment and biodiversity; at the construction stage, we work in consideration of the naturalenvironment and biodiversity; and at the completion stage, we provide operational and management support to conserve thenatural environment and biodiversity.
We will contribute to the realization of a nature co-existing society by properly evaluating the value of natural capital,
minimizing the impact of construction work as much as possible, and providing technologies to preserve the naturalenvironment and restore and create biodiversity.

Policies/Commitments
Action Guidelines for Taisei: Promoting environmental conservation and creation nature co-existing
Environmental Policy
TAISEI Green Target 2050: Realization of a nature co-existing society
Promise of Eco-First
Declaration of Biodiversity Preservation by Taisei Group
Taisei Group Guidelines for Conservation of Biodiversity
Taisei Group Green Procurement Guideline
Taisei Group Green Procurement Standard Guideline
Taisei Group Sustainable Procurement Guidelines

Refer toAction Guidelines for Taisei Personnel

Environmental Policy

Declaration of Biodiversity Preservation by Taisei Group

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Goals and Targets
TAISEI Green Target 2050: Group's long-term environmental targets
Achieving and deepening Nature Positive

To minimize negative impact of construction businessTo maximize positive impact of business in harmony with nature

TAISEI Green Target 2050

2030 Environmental Target
Offering proposals and projects that contribute to Nature Positive

Roadmap

Click here for detail

Annual Environmental Target

Annual Environmental Target

Initiatives

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United Nations Global Compact “Environment”
Initiative based on the Declaration of Biodiversity by Keidanren (Japan Business Federation, Keidanren Committee
onNature Conservation)
Tokyo Greenship Action (Bureau of Environment, Tokyo Metropolitan Government)
Japan Business Initiative for Biodiversity (JBIB)
30 by 30 Alliance for Biodiversity (Ministry of the Environment)
TNFD Forum

Participation in Initiatives

The Tokyo Greenship Action project
Since FY 2003, the Tokyo Metropolitan Government Environment Bureau has conducted activities to preserve naturalenvironments in cooperation with private companies, NPOs, governments and so on in several of the 50 regions of Tokyo
Prefecture that have been designated as “conservation areas,” and uses these areas as venues for the Sustainability
activities of private companies. Taisei is in agreement with this initiative, and for more than 10 years the company has
participated in the Tokyo Greenship Action project to preserve greenery in Nanakuniyama.

The Japan Business Initiative for Biodiversity (JBIB)*
The JBIB is an organization of companies set up in 2008 to promote active efforts aimed at preserving biodiversity. As amember of the JBIB network, Taisei promotes activities to preserve biodiversity by sharing information regarding thePromotion Guidelines for ABINC registered company and the Association for Business Innovation in harmony with Nature
and Community (ABINC) and communicating with member companies.
* Organization of Japanese companies engaged in activities to preserve biodiversity

The Japan Business and Biodiversity Partnership
Taisei participates in the Japan Business and Biodiversity Partnership as a member company,cooperating with
NPOs,NGOs,research institutions and other relevant organizations both at home and abroad to promote corporate
activities aimed at preserving biodiversity. Our Group have made biodiversity conservation in Taisei Group Sustainable
Procurement Guidelines on the supply chain and is pursuing measures accordingly.

30 by 30 Alliance for Biodiversity

30 by 30 Alliance for Biodiversity

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The TNFD ForumThe TNFD Forum

Eco-First Commitment
Participation in Eco-First Council
In May 2012, TAISEI Corporation submitted to the Minister of the Environment an Eco-First Commitment and was certified
as an Eco-First Company, and the company is steadily executing its commitment. TAISEI serves as the coordinator of the
Eco-First Promotion Council which is made up of the 54 (as of March 2023) companies that have been certified as Eco-First
Companies. We are working to strengthen cooperation with the Ministry of the Environment and the other Eco-First
Companies to resolve environmental issues such as achieving carbon neutrality, a circular economy and nature positivity.

Refer toParticipation in Initiatives

Activities / Efforts
Natural environments consist of a variety of interconnected environment ranging from remote mountains and satoyama(undeveloped woodlands near populated areas) to cities and the sea. TAISEI Corporation is working to preserve and create
diverse good natural environments and green infrastructure in order to achieve and deepen nature positivity.

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Promotion of Green Infrastructure

Shinagawa Season Terrace
The Shinagawa Season Terrace is a building complex that effectively uses the land
above the site of the Shibaura Water Reclamation Center. To ensure that
contaminated rainwater does not flow directly into the ocean, a rainwater storage
pond was constructed beneath the Water Reclamation Center to temporarily holdthe water that falls initially during torrential downpours. In addition, the artificial
ground that was built at ground level has been provided with a vast green area thatcools the breezes blowing from Tokyo Bay before they reach the city center. This
open space of water and greenery forms a green infrastructure that makes use of

Shinagawa Season Terrace(Photo: Forward Stoke inc.)water, wind and greenery.

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Taisei Group Guidelines for Conservation of Biodiversity
The Biodiversity Guidelines constitute guidelines for action in three major areas: company-wide activities, planning anddesign activities, and procurement and construction activities. By proposing and deploying water resource and biodiversityrelated technologies, we are working to reducing the consumption of water resources and reducing the environmental
impact of construction in accordance with the guidelines.
we also provide employees with regular environmental training and conduct environmental preservation activities in order tocontribute to society.

Biodiversity-Conscious Research, Planning, Construction and Monitoring
Taisei Corporation has adopted a system for identifying risks relating to biodiversity at the construction planning stage andfollowing up on them throughout the entire process from construction through completion. Taisei's ecological planning, oneof the company's proprietary environmental planning technologies, has been formulated and executed in all projects inwhich consideration for ecosystems is judged to be needed.
Ecological Planning is the equivalent of the Biodiversity Action Plan (BAP) in the Convention on Biological Diversity. Taisei
uses its various technologies to study and analyze the environment at the construction site and the surrounding area, andthen drafts and executes a plan based on regional characteristics in an effort to construct good quality social capital.
Monitoring is conducted following completion and the results are used as feedback for technological improvement.
These tools make it possible to easily determine the environment at construction sites and share this information toappropriately preserve and create natural environments.

Natural Environment Conservation

Initiatives for Sustainable Virtuous Cycles in Local Communities Implemented by the
Taisei GroupWe jointly participated in the activities to build a forest circulation system for the H1
Building of the Oki Honjo Plant. For the facility, we actively used timber from the
Arakawa River basin in Chichibu. We are also engaged in a tree planting initiative by
bearing part of the cost to reforest the area where timber has been sourced. We arecontributing to forest recycling by working with our customers and local communities
to recover forests and recycle forest resources for the future.

Environmental DNA

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With DNA analysis technology derived from organisms contained in water and soil, we conducted a continuous habitat
survey of rare amphibians (salamanders, etc.) living in the conservation target areas around construction sites. This
analysis technology enables continuous monitoring of the underwater inhabitation status after the spawning season, which
was difficult with conventional visual surveys.

Refer toWater Resource / Water Environment: Ⅳ. Development of Advanced Technologies

Creating forests from saplings designed to resemble a natural forest
In the development of Fujisan Nanjyo Industrial Park, trees suitable for the regional environment were used to conduct "10year forest creation" designed to resemble a natural forest. Saplings were planted in a tree-planting ceremony, using"nature-conscious greening" techniques to nurture a forest with trees that compete with one another. It has been confirmed
that, ten years after planting, a forest has been formed with richer biodiversity than the remaining forest that surrounds it.
(Recipient of the FY2020 Japan Society of Civil Engineers Environment Award, 49th Environment Award, Minister of theEnvironment Award)

Refer toForest Resource / Forest Environment: Ⅲ. Conservation of Good Forests

Preserving and Creating Natural Environments to Achieve Nature Positive

Kure City General Waste Disposal Site
The general waste final treatment plant, Eco Globe Kure, was completed and began operations in 2015 as a place toexpress and communicate nature restoration technologies.
To preserve living things that have been lost to development in the satoyama environment, a preservation plan was drafted
based on surveys, and a compensatory biotope was created. A subsequent survey confirmed the presence of the living
things that were the objects of conservation.

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Sapporo Dome (Sapporo City, Hokkaido)
Ongoing monitoring survey
In the planning stages for the construction of Sapporo Dome in 1997, consideration for nature was one of the design
conditions, as the site that was planned for construction was adjacent to a residential area and Hitsujigaoka, a place with arich natural environment. Accordingly, with the aim of creating an environment that would be used by an even more diverse
array of living things, ecological planning techniques were used to propose planning conditions and create a bio-friendly
outdoor facility plan.
Long-term monitoring was initiated when the facility was put into operation in 2001 and has continued to this day. Monitoringhas confirmed the presence of many varieties of birds that had been set as indicators. Moreover, the varieties of birds,
butterflies and dragonflies have increased since the planning stages, and biodiversity is even greater than before
construction began, confirming that the created environment is contributing to nature positivity.
Knowledge and concrete results accumulated during this process have been used for the development of the biodiversity
communication tools, the “Ikimono (living creatures) Concierge,” and have contributed to the conservation and sustainable
use of natural resources through various environmental awareness activities conducted by Sapporo Dome Co., Ltd.

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Improvement of Facility Value through Biodiversity Conservation and Creation-The ESR Amagasaki Distribution Center
An environmental certification that proves natural environmental consciousness of a facility increases the value of the facility
and appeals to customers as proof of an environmentally conscious company.
Leveraging its strength as a general construction firm capable of executing projects from start to finish, from the planningand design of facilities to their construction, Taisei Corporation conducts environmental assessments of projects, including
the impact on biodiversity, from the early stages of development planning, and incorporates consideration for theenvironment into project plans. In so doing, we strive to minimize environmental impacts and support our clients'
environmental activities, such as the conservation and creation of biodiversity as well as the acquisition of environmental
certifications.
At the stage of planning and design of the ESR Amagasaki Distribution Center (ordered by ESR), a logistic facility located at
the Osaka bay-side area, for example, an outer green area was planned, designed, and constructed by Taisei Corporation to
help improve the biodiversity without affecting capabilities as a logistics facility.
The facility earned the “Business Innovation in Harmony with Nature and Community” certification from the Association for
Business Innovation in Harmony with Nature and Community (ABINC) as a logistics facility that respects biodiversity.

ESR Amagasaki Distribution Center (ordered by ESR)

Creating Nature in Urban Environments

Otemachi Tower and Otemachi Forest
A natural forest designed to match the character of the location was created in the center of Tokyo to restore both the cityand nature. Otemachi Forest provides multifaceted functions as a part of the green infrastructure of the urban sphere. It
offers a place of rest and relaxation to people coming and going in the business district, helps to ease the "heat island"
phenomenon, and contributes to the ecosystem network.

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The Okura Tokyo
The Japanese aesthetics that have been refined since ancient times were used as
the concept for the design of the exterior space. These aesthetics will carve out a
new history as regional scenery that creates new value for society.

The Okura Tokyo exterior

Restoring Ocean and Water Environments

Eelgrass transplantation techniqueThis is a simple transplantation technique for eelgrass (Zostera marina) that requires
no seeding or stock planting. A mat made of palm fibers is placed in a naturaleelgrass bed, and eelgrass seedlings fall naturally onto the mat and sprout,anchoring themselves to the mat. The mat is then simply moved to thetransplantation location. In ocean tests, this method has been confirmed to achieve
propagation and growth that is equivalent to that of natural eelgrass.

Coral transplantation technology
This technology uses coral egg-laying to induce propagation. Incubated and hatched coral larvae are colonized to
implantation devices to propagate. TAISEI has developed a concrete implantation device that is cheaper than conventional
ceramic implantation devices. These devices can be used to preserve and create highly diverse coral reefs in the samemanner as natural coral reefs are created.

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Coral sea and coral growing on
an implantation device

Consideration of Biodiversity for Proposal (risk assessment)

During civil engineering construction, there are many chances to face the natural environment.
Therefore, we propose measures to protect endangered animals and plants and avoid having an
influence on them considering biodiversity. As for construction, our biodiversity evaluation tools
such as “IKIMONO-Concierge®” “MORI-Concierge®” and “Mizube-Concierge®” are effectively used
for greening plans at construction sites or for redevelopment projects.

Mizube Concierge*Concierge Series
Ikimono Concierge®:Our unique tool for predicting and identifying animals that can be attracted by a planning site.
Mori Concierge®:Our unique tool enabling the selection of plants that can adapt to the environment of a planned site.
Mizube Concierge®:Our tool for developing a unique plan to conserve and compensate for waterside rare fauna and flora
whose ecosystems may be affected by construction.

Dialogue and Cooperation with Stakeholder

Making dormouse nest boxes
Since 2004, Taisei Corporation has participated in the Animal Pathway (bridges
for tree-dwelling rodents) Research Society, and has supported ecosystemconservation activities for tree-dwelling rodents, such as the dormouse, throughdevelopment and facilities for animal pathways and monitoring. As part of these
activities, our group employees and their families participate every year involunteer activities to construct dormouse nest boxes. In our activities held, we
donated these boxes to the Dormouse Museum of KEEP, Inc.
We have conducted this environmental volunteering activity every year, withparticipants working to build a total of 3,358 dormouse nest boxes, thus far.
In addition, we participated in crowdfunding for an animation project to raiseawareness about roadkill issues related to small arboreal animals and animal
pathways. This anime, "Promise of the Forest: Yamane's Tale," which raises
awareness about animal pathways, was released in August 2023.

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TAISEI 1 Ton CLUBIn 2012 and 2015, we supported the Kamaishi Forest Owner's Association,
which manages the mountain forests of Unosumai District. In May 2017, alarge-scale wildfire occurred in the district due to a suspicious fire, resulting in
the burning of 413 hectares as well as heavy damage. Therefore, since 2017,
we have been conducting in-house fundraising to collect donations to purchaseseedlings to revive forest in Kamaishi. For FY2023, we gathered 1,538,500 yen
in voluntary donations from 1,115 employees.

Data

Environmental Data

Copyright TAISEI CORPORATION All Rights Reserved.

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Forest Resources / Forest Environment

Policies and Basic Approach
Ⅰ. Sustainable Wood Use

Goals and Targets

Activities / Efforts

Ⅱ. Restoration of Forest Resources

Ⅲ. Conservation of Good Forests

For Resolving individual issues related to the Forest
Resources and the Forest Environment
Policies and Basic Approach
The TAISEI Group has formulated "TAISEI Green Target 2050" as the Group's long-term environmental target to realize the"Sustainable and Environmentally Friendly Society" promoted in its environmental policy. The TAISEI Green Target 2050
establishes the responsibilities relating to individual issues pertaining to forest resources and forest environment, as well as
the business activities that are conducted and their contribution to the achievement of these targets. The basic approach isoutlined in the environmental policy.

Refer to:Environmental Policy

TAISEI Green Target 2050

Responsibilities
As construction is the core business of the Taisei Group, the Group has a keen awareness of the effect of its businessactivities on forest resources and the forest environment and the impact of forest resources and the forest environment on

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business activities. We consider it to be our responsibility to minimize the negative impact of construction business on forest
resources and the forest environment, by implementing zero deforestation wood procurement.

Contribution Through Our Business Responsibilities Activities
The Taisei Group identifies risks and opportunities related to forest resources and the forest environment. We strive todevelop and disseminate technologies and services relating to conservation, creation and restoration of forest resources,
and to promote business activities that are in harmony with nature in order to maximize the positive impact and contribute toachieve sustainable forest resources and forest environments.

Policies / Commitments
Action Guidelines for Taisei: Promoting environmental conservation and creation
Environmental Policy
TAISEI Green Target 2050: The Two Individual Issues
Declaration of Biodiversity Preservation by Taisei Group
Taisei Group Guidelines for Conservation of Biodiversity
Promise of Eco-First
Taisei Group Sustainable Procurement Guidelines
Taisei Group Green Procurement standard Guideline

Goals and Targets
Group’s Long-Term Environmental Targets (TAISEI Green Target 2050)
Target for addressing two individual issues
Forest Resources & Forest Environment

Water Resources & Water Environment

To minimize negative impact on forest resources andTo minimize negative impact on water resources andforest environment through wood procurement based

water environment by ensuring proper management

on zero deforestation concept

and reducing usage

To maximize positive impact on forest resources andTo maximize positive impact on water resources andforest environment through conservation andwater environment through conservation andrestoration efforts

restoration efforts

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Activities / Efforts
To ensure that the benefits of forests can be enjoyed now and in the future, TAISEI promotes activities to USE wood in asustainable manner, efforts to CREATE revitalized forest resources, and efforts to PROTECT and conserve good forests.

Sustainable wood use

Restoration of forest resources

Appropriate wood procurement

Sustainable use of planted
forests

Wood procurement statussurvey and guidance

Promotion of wooden

Conservation of good forests
Evaluation of Forest
Visualization of multifaceted
functions of forests

construction

Sustainable wood procurement

Support for sustainable forest
Promotion of wooden

management

Conservation activities
Implementation of forest
conservation activities inconstruction
Promotion of local wood use

Conversion of planted forests

cooperation with companies andinto natural forests

communities

Promotion of reuse andCreation of forests that function

recycling of woodas green infrastructure through

Carbon capture and storage

conversion of planted forests
into natural forests

Ⅰ. Sustainable Wood Use

Appropriate Wood Procurement
In view of the importance of conserve forest resources and forest environment and ensure sustainable wood procurement,from November 2022 to January 2023 a survey on wood procurement was conducted in the form of an opinion survey ofmajor subcontractors and suppliers that deal in wood products. Based on the results of the survey, we vistited someEnvironmental Social Governance Report 2023

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subcontractors and suppliers and, interviewed them regarding the status of activities, and exchanged views with thebusiness owners.
The TAISEI Group will continue to review the status of wood procurement and make improvements as needed, so as tominimize the negative impact on forest resources and forest environment and achieve sustainable wood procurement.

Survey on wood procurement (November 2022 - January 2023)
Target companies:

34 (major companies that deal in wood products, such as wooden furniture, wooden joinery,wood finisdhing cartain threshold)Responding

32 (69% coverage ratio based on contact amounts for major wood products concluded FY

companies:
2021)
Feedback:

14 companies were visited and interviewed regarding the status of activities, and exchanged
views with the business owner.

Refer to:Promotion of Supply Chain Management
Cooperation with suppliers based on Green Procurement Guidelines

Promotion of Wooden Construction

1

T-WOOD® series technology to achieve sustainable wood use

TAISEI is developing the T-WOOD series as a technology for wooden architecture that satisfies the performance level andeconomical needs of modern architecture that can cover wide-ranging applications from new construction to renovation.

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2

Achievements in Wooden Architecture

From traditional architecture to modern architecture, TAISEI continue to create new traditions in wooden architecture byinheriting innovation.

Japan National Stadium

New Kyotamba Town Office

Furubira Town Multi-Purpose Facillity

Ⅱ. Revitalizing Forest Resources

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Sustainable use of Planted Forests
Achieving a circular economy for forests
For the construction of the new OKI Honjo Factory H1 building (completed 2022, total floor area 18,837 m2, two-story
building, quantity of wood used 206 m2), TAISEI is participating in activities to create a circulating forest. In February 2,
2023, the Saitama Prefecture Forest Creation Agreement was concluded, and four entities — Saitama Prefecture, Oki
Electric Industry Co., Ltd., Woody-koike Co., Ltd. and TAISEI — agreed to conduct forest planting (a forest of approximately
960 trees) and undergrowth cutting over a 5-year period on 0.3 hectare of the Arakawa watershed area where Chichibu
cedar trees were cut down for the construction of the OKI Honjo Factory H1 building.
This is a very unique project in Japan, with four entities — the local government, the project owner, a local forest company
and the construction company — cooperating, and with planting activities specified to take place on the site where the tree
has been logged to construct the building. Accordingly, there are great expectations for this project as a particularly intuitive
embodiment of projects to stimulate the local economy and to achieve sustainable forest use. TAISEI intends to plan andbuild wood use cycles in various parts of the country in consideration with regional characteristics, using locally grown woodfor local consumption.

Conversion of Planted Forests into Natural Forests
Creation of forests that function as green infrastructure through conversion of planted forests into natural forests

Through the development and deployment of various technologies that contribute to the conservation and creation of naturalenvironment, TAISEI is working to create forests that function as green infrastructure, through activities such as theconversion of planted forests into natural forests.

Ⅲ. Conservation of Good Forests

Evaluation of Forest
Visualization of Multifaceted Functions of Forests

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TAISEI Corporation conducted the Eco-Factory Mt. Fuji development project in Fujinomiya City, located in the Fujisan
Nanryo area, with the aim of creating a "center of manufacturing linking people, greenery and production." Trees suitable forthe regional environment were used to conduct "10-year forest creation" designed to resemble a natural forest.
To promote forest conservation activities, the "Fujisan Nanryo no Mori Forest Saver Project (FSPJ)" was organized as agroup to conduct sustainable forest creation activities with cooperation by industry, government, academia and the private
sector. The group has worked together with the local community from the development stage onward to conserve andnurture forests over a period of more than a decade, and involvement with the community has continued even after
construction was completed. After trees in the Fujisan Nanryo no Mori forest are cut down for development purposes,
various techniques and technologies are used to ensure that the forest is restored in an even more desirable manner from a
medium- to long-term perspective. Saplings were planted using "nature-conscious greening" techniques to cultivate a forest
with trees that compete with one another. It has been confirmed that, ten years after planting, the Fujisan Nanryo on Mori
has been formed with richer biodiversity than the surrounding forest.
This type of "forest-themed business model" - a development plan that alters nature but involves working with the local
community to restore and cultivate an even more desirable natural environment - and the "methodology for creating foreststhat resemble a natural forest" from a medium- to long-term perspective, are the achievements of a pioneering effort thatbalances economic activities and coexistence with nature. TAISEI will use this expertise in promoting activities to achieve anature co-existing society.
This project has received high acclaim and was the recipient of the FY2020 Japan Society of Civil Engineers Environment
Award and the Minister of the Environment Award, the highest award of the 49th Environment Awards (co-sponsored by the
National Institute for Environmental Studies and Nikkan Kogyo Shimbun, Ltd. with the support of the Ministry of theEnvironment).

Refer to:30 by 30 Alliance For Biodiversity

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Water Resources / Water Environment

Policies and Basic Approach
Ⅰ. Sustainable Water Use

Goals and Targets

Activities / Efforts

Ⅱ. Restoration of Water Resources

Ⅲ. Conservation of Water Resources

For Resolving individual issues of The Water Resources
and the Water Environment
Policies and Basic Approach
The TAISEI Group has formulated "TAISEI Green Target 2050" as the Group's long-term environmental target to realize the"Sustainable and Environmentally Friendly Society" promoted in its environmental policy. The TAISEI Green Target 2050
establishes the responsibilities relating to individual issues conserving water resources and water environment, as well as
the business activities that are conducted and their contribution to the achievement of these targets. The basic approach isoutlined in the environmental policy.

Refer to:Environmental Policy

TAISEI Green Target 2050

Responsibilities

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As construction is the core business of the Taisei Group, the Group has a keen awareness of the effect of its businessactivities on water resources and water environment and the impact of water resources and water environment on businessactivities. We consider it to be our responsibility to exercise appropriate management and reduce water use, and tominimize the negative impact of construction business on water resources and water environments.

Contribution Through Our Business Activities
The Taisei Group identifies risks and opportunities related to with water resources and water environments. We strive todevelop and disseminate technologies and services relating to conservation and restoration, and to promote businessactivities that are in harmony with nature in order to maximize the positive impact and contribute to sustainable water
resources and water environments.

Policies / Commitments
Action Guidelines for Taisei: Promoting environmental conservation and creation
Environmental Policy
TAISEI Green Target 2050: The Two Individual Issues
Promise of Eco-First
Taisei Group Sustainable Procurement Guidelines
Green Procurement Standard Guideline

Goals and Targets
Group’s Long-Term Environmental Targets (TAISEI Green Target 2050)
We have established the Group's long-term environmental targets for 2050, the TAISEI Green Target 2050, and have beenworking to achieve three types of societies (Decarbonized Society, Recycling-Oriented Society, and Nature Co-ExistingSociety) as well as to resolve two individual issues (Forest Resources / Forest Environment and Water Resources / Water
Environment).

Target for addressing two individual issues

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Forest Resources & Forest Environment

Water Resources & Water Environment

To minimize negative impact on forest resources andTo minimize negative impact on water resources andforest environment through wood procurement based

water environment by ensuring proper management

on zero deforestation concept

and reducing usage

To maximize positive impact on forest resources andTo maximize positive impact on water resources andforest environment through conservation andwater environment through conservation andrestoration efforts

restoration efforts

Activities / Efforts
TAISEI Corporation not only constructs water infrastructure facilities, but also develops and disseminates technologies andservices to conserve and revitalize water resources, to promote business activities that are in harmony with nature in order
to contribute to achieve sustainable water resources and water environment.

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Sustainable water use

Restoration of water resources

Conservation of water resources

Effective use and reduction of

Development and dissemination

Reduction of water environment

water use (the Water 3Rs)of technologies and services

burdenEffective use of water resources

Efforts to achieve Zero Water

Prevention of waterand efforts to save water

Buildings, etc.

contamination during construction

through TSA

Enhancement ofDevelopment and application of

Promotion of use of reclaimed

evapotranspiration function bytechnologies for monitoring water

water, treated wastewater andgreening rooftop and walls

quality and environment

rainwaterurban forest cultivation, etc.
Conservating of groundwater

Collection and management ofRestoration of water

data on water use and discharge

environment
Contribution to construction of

Research and development ofwater infrastructure facilities

technologies to restore biotopes,
etc. and application to

Dam and other infrastructure

construction

construction, construction offlood control basins and other

Purification of contaminatedgreen infrastructuresoil and groundwater
Business activities in high water

Development of low-load

stress regions

purification technologies andapplication to construction work

Study of the use of water

Securing the watershed
protection functions of forests
Development of groundwater
conservation construction
technologies and application to
construction work
Contribution to flood prevention,
restoration etc.
Rapid response for disasterrecovery
Development and use of flood

resources in high water stressprediction, assessment andcountries and regions, andresponse technologies

implementation of measures,etc.

Ⅰ. Sustainable Water Use

Effective Use of Water Resources
Taisei Corporation is promoting the TSA：TAISEI Sustainable Action®, a series of activities involving all employees with theaim of reducing environmental load.

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In 2011, Taisei began its "CO2 Zero Action" initiative at all construction worksites. This initiative consists of seven basic
activities aimed at reducing environmental load. One of the activities was "the effective use of rainwater and spring water,"and this activity continues to this day.
In 2018, a "TSA Action List" was prepared, listing specific activities to reduce environmental load. One item included on thelist was "Cyclic use and reuse of construction water (including on-site use of rainwater and spring water)." Taisei works toenable reuse of the water from construction operations by purifying it according to the intended purpose of use, and to use
rainwater and spring water within the construction site for sprinkling and cleaning the tires of construction vehicles and soon. The TSA Action List is reviewed each year and updated to add new measures, etc.
In particular, work related to slurry shield tunnel construction and to soil contamination countermeasures involves enormous
quantities of water. To reduce the quantity of water used, muddy water (sediment transport water and water used forcleaning) is subjected to turbid water treatment, and the resulting recycled water is used.
Taisei also promotes the use of low-flush toilets and water-saving faucets at its head and branch offices and all
approximately 600 of its site workplace offices, and is making company-wide efforts to reduce water use.
Furthermore, the Taisei Advanced Center of Technology "ZEB Demonstration Building" (laboratory of people and space)collects rainwater that falls on the solar panels mounted on its roof in a rainwater use tank. This water is used to flush toilets
on the first and second floors.

ZEB Demonstration Building in Taisei Advanced Center of Technology

For its supply chain, Taisei established the "Taisei Group Sustainable Procurement Guidelines", a guideline that indicate
code of conduct in areas such as the environmental protection, human rights and compliance that must be observed
throughout the supply chain. They summarize matters to be implemented through cooperation between our Group andbusiness partners; all subcontractors and suppliers are required to comply with these guidelines. Taisei also works with all
its suppliers to preserve water resources by reducing water use as well as ensuring efficient use, reduction, and adequate
management of industrial waste, hazardous chemical substances, and contaminants in addition to compliance withenvironment-related laws and regulations so as to prevent environmental accidents.

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Furthermore, as a collaborative environmental effort with industry organizations and government agencies, Taisei
participates in the public-private Water Project* led by the Ministry of the Environment, which promotes initiatives formaintaining and restoring healthy water environments. Taisei shares information on its activities with other companies while
promoting initiatives related to water conservation and water risks, such as reducing water use.
In addition, Taisei endorses the mission of the Japan Water Forum (JWF), an NPO working to resolve water issues incollaboration with U.N. agencies and other international organizations as well as local NGOs.

Multiple offices and workplaces participate in "Mission Uchimizu" organized by the Japan Water Forum (JWF)*

The Water Project is a project founded in 2014 by the Ministry of the Environment, based on the Basic Act for Water Circulation, with the aim of creating a venue
for public-private cooperation.

Taisei Corporation's total water intake and discharge
Unit: 1000 m3

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

Intake

1,691

1,436

1,414

1,412

2,266

2,279

Discharge

4,701

4,483

4,288

6,625

9,677

3,014

Note:As construction locations change each year, comparisons with the previous year would not be useful.

Energy Generating Groundwater Treatment Technology Decarbonization
A Membrane Bio Reactor (MBR) *1, a new sewage treatment technology combining anaerobic treatment*2 and membrane
separation technology*3, has been developed, and the performance of the technology is currently being confirmed using test
equipment installed at a sewage treatment plant. Compared to the conventional activated sludge method, this technology
not only uses less energy but also can collect methane which can be used for power generation, so it is expected tocontribute to energy consumption reduction and energy creation*4 in sewage treatment system.
*1

Anaerobic MBR
A process that combines anaerobic treatment and membrane separation technology. Use of a separation membrane makes it possible to maintain a highconcentration of the microorganisms needed for decomposition and improve the water quality of the treated water.

*2

Anaerobic treatment
Method of converting into biomass (composed of methane and carbon dioxide) the organic matter included in organic wastewater, wastes, etc., using themetabolic action of multiple strains of anaerobic bacteria under anaerobic conditions with no oxygen.

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*3

Membrane separation technology
Method in which membranes are used to separate water and solids.

*4

Energy creation
Biogas generated through anaerobic MBR processing is converted into electricity and heat through gas engines.

Business Activities in Water-stressed Regions
As stated in the TAISEI Green Target 2050, the Group's long-term environmental targets for 2050, we are committed tominimizing adverse impacts on water resources and the environment through appropriate management and reduction ofwater use as part of our efforts toward resolving issues with water resources and water environments. In particular, we
implement stricter water management in regions with high water stress.
All worksite the Aqueduct Water Risk Atlas*1 of the World Resource Institute is used to determine the water risk in eachregion where business activities (civil engineering and construction) are conducted, and appropriate measures are taken forbusiness activities in high water stress regions.

(1) Business activities in JapanA check using the Aqueduct Water Risk Atlas of the locations where approximately 650 workplaces and head and branch
offices in Japan are located revealed that there were no workplaces or offices in regions with a water stress*3 assessment of(4) High or greater.

(2) Business activities overseas
A check using the Aqueduct Water Risk Atlas of the locations of the main overseas workplaces revealed that there were two
workplaces locating in a water stress*2 assessment of "High" or "Extremely high" region. Appropriate management is being
conducted for all workplaces including these two workplaces.
*1

Aqueduct Water Risk Atlas: A water risk analysis tool that assesses water risk in five levels using 13 indicators in three categories (water quantity, water quality,
and regulatory and reputational risk).

*2

Water stress: An indicator of the degree to which water resources are under stress, derived by dividing annual water intake by annual water runoff.

Asia region
No.

Country /No. ofregionworkplaces

Water risk

Taiwan1

Taipei,Taichung,

9②Low medium

etc.

2

Philippines
Manila, etc.

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④High

133

Africa region
No.

Country /No. ofregionworkplaces

VietnamHanoi, etc.
3

Water risk

6

④High

3

④High

Vietnam Ho
Chi Minh
City, etc.
Indonesia

1

Jakarta
4

Indonesia
West Java

Source：https://www.wri.org/aqueduct

5

Province

Map numbers indicate country numbers in the table at right.

5Singapore2⑤Extremelhigh⑤Extremel
high

①Low

Thailand6

Rayong4

Province,③Medium high

etc.

7

8

Egypt

1

Alexandria
India

1

Mumbai⑤Extremel
high

④High

Cambodia
9

Phnom

1

Penh

③Medium highCapital City

Water risk inlocations withworkplaces⑤Extremely
high
④High

Environmental Social Governance Report 2023

No. ofworkplaces

Percentage

7

18%

15

39%

134

Water risk inlocations withworkplaces

No. ofworkplaces

Percentage③Medium - high5

13%

②Low - medium

9

24%

①Low

2

5%

Ⅱ. Restoration of Water Resources

Water Environment Technology to Realize Zero Water Buildings (ZWBs)
We aim to obtain LEED Zero Water*2 certification, as defined in the LEED ZERO Program Guide*1, by minimizing the waterused by installing a new wastewater recycle facility, in addition to the existing rainwater utilization facilities, at the Taisei
Advanced Center of Technology.
We are making efforts in water management to reduce the use of tap water by recycling rainwater that has fallen onto
buildings and reclaiming wastewater from hand washing and sinks within buildings for use in flushing toilets and wateringgreenery.

Research and Development Investment
The medium-term business plan (2021-2023) allocates JPY 60 billion for environment-related investment. Of this amount,approximately JPY 100 million was spent for water-related research and development expenses.

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3rd rain reservoir project of the Shibaura Water Reclamation Center

This facility collects sewage from all parts of Minato Ward, most parts of Chiyoda, Chuo, Shinjuku and Shibuya Wards andsome parts of Bunkyo, Toyoshima, Shinagawa, Meguro and Setagaya Wards and then treats it and discharges it into Tokyo
Bay. The project was to construct a a rain reservoir to serve as a combined sewerage system improvement facility to store
the initial rainwater that is collected and improve the water quality at the discharge location.

Shinagawa Season Terrace
Joint project with co-developer Tokyo Metropolitan Government Bureau of Sewerage

Shinagawa Season Terrace(Photo: Forward Stoke inc.)

An environmentally friendly office building was built on the grounds of the Shibaura Water Reclamation Center owned by the
Tokyo Metropolitan Government Bureau of Sewerage. The building used a previously unprecedented development method
in which a sewerage facility was placed underground and a business and commercial building was constructed above. This
was a public-private partnership project by the Tokyo Metropolitan Government and NTT Urban Development Corporation,
Taisei Corporation, Mizuho Trust & Banking Co., Ltd. and Tokyo City Development Co., Ltd.
The facility will provide water for a variety of uses, including treated water produced by purifying kitchen wastewater,
reclaimed water from purification and treatment of restroom sink wastewater and so on, reclaimed water purchased andbrought infrom the Sewage Bureau, and rainwater for toilet flushing water and plant watering, etc.

Ochanomizu Sola City
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This development project is being promoted by a Special Purpose Corporation with investment by three companies: Taisei
Corporation, Yasuda Real Estate Co., Ltd. and Taisei-Yuraku Real Estate Co.
This facility will receive the spring water and the rainwater that falls on the site and roof of Shin-Ochanomizu Station on the
Chiyoda Subway Line, after which the water will be filtered and used as cooling water for the water-cooled chillers, as well
as for the automatic sprinklers that water the outdoor plants and as toilet flush water, in order to ensure effective water use.

Eelgrass Transplantation TechniqueThis is a simple transplantation technique for eelgrass (Zostera marina) that requires no seeding or stock planting. A mat
made of palm fibers is placed in a natural eelgrass bed, and eelgrass seedlings fall naturally onto the mat and sprout,anchoring themselves to the mat. The mat is then simply moved to the transplantation location. In ocean tests, this method
has been confirmed to achieve propagation and growth that is equivalent to that of natural eelgrass.

Coral Transplantation Technology
This technology uses coral egg-laying to induce propagation. Incubated and hatched coral larvae are colonized to
implantation devices to propagate. TAISEI has developed a concrete implantation device that is cheaper than conventional
ceramic implantation devices. These devices can be used to preserve and create highly diverse coral reefs in the samemanner as natural coral reefs are created.

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Mizube Concierge
This tool makes it possible to study and plan preservation sites for rare animals and plants quickly, for example to create
replacement sites to protect rare animals and plants that inhabit waterside areas near construction sites. A tablet shows theinformation needed to formulate preservation sites visually in an easily understandable way, making it easy to share
information and smoothly achieve consensus with related entities, as well as quickly preparing preservation plans (selecting
appropriate replacement candidate sites and so on).
Entering the name of a rare animal or plant displays the information needed to formulate preservation plans in an easily
understandable visual manner.
Candidate sites where waterside environments can be created as replacement sites can be appropriately selected.
Enables preservation plans to be drafted more quickly and in a shorter period of time than conventional methods.

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Aquatope®
Biotopes have problems such as water pollution and offensive odor due to algae proliferation. Aquatope® is a nextgeneration biotope that uses a proprietary functional charcoal to remove nitrate nitrogen, one of the factors that causes
algae proliferation to achieve long-term conservation of water quality.

[Features of Aquatope®]
Turning wastes into resources: Waste coffee grounds are modified and used as functional charcoal that can absorb nitrate
nitrogen. Used functional charcoal is recycled as plant fertilizer.
Water quality safety: As alghicides and the like are not used, there is no impact on the ecosystem.
Improved biodiversity: Following construction of the Aquatope®, animals and insects that had not previously been seen
appeared, and an improvement in biodiversity is expected.

Aquatope® on the campus of A University and dragonflies that appeared

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Determination of Underwater Habitation Status of Rare Amphibians Using Environmental
DNA Analysis Technology
A technology called environmental DNA analysis technology for analyzing the biological DNA (animal fragments, excrementetc.) in water and soil is used for an ongoing study of habitats of rare amphibians (salamanders) that inhabit conservation
areas near a construction site. The use of this analysis technology makes it possible to determine the habitat status in water
following spawning, which was difficult to accomplish by conventional visual inspection. This technology enables period.
Long-term monitoring of habitat status during construcition period, making it possible to take more reliable protection
measures.

Technologies for Purifying Contaminated Soil and Contaminated Groundwater
Since the 1990s, Taisei Corporation has been promoting the development of technologies for purifying soil and groundwatercontamination. Taisei conducted 1,589 soil and groundwater surveys and 1,651 soil and groundwater purification projects
since 1991. (As of March 2023)

Multi-barrier Method

A permeable underground diaphragm wall is constructed on the downstream side of the groundwater flow to prevent thecontaminants from flowing out from the site while purifying the contaminated groundwater using volatile organic compounds
and heavy metals, etc. while preventing the contaminants from flowing out from the site.
Enables maintenance-free in-situ groundwater treatment.
Reliably prevents contaminated groundwater from spreading.
Uses the permeable groundwater purification wall method that can deal with groundwater contaminated with various typesof contaminants.

Flushing and bio-sparging method

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With this technology, a solution containing air and nutrient salts that activate the purification bacillus is provided to thegroundwater, purifying the benzene and cyanogen compounds.
The air and nutrient salts spread in the groundwater at the same time, resulting in even purification.
Purification takes less time than the conventional microbial decomposition method.
Purification of contamination ranging from highly concentrated to low-concentration contamination can be conductedwithout changing the method.

Technology for Preventing Groundwater Contamination by Nitrate Nitrogen

With this technology, a purification wall, which contains purification material (sustained-release organic matter) mixed in torelease organic matter over a long period of time, is used to bring about a denitrification reaction in microorganisms in the
groundwater flow channel that is contaminated with nitrate nitrogen. The nitrate nitrogen is converted into harmless gaseous
nitrogen. Two types of purification walls have been developed: a vertical purification wall to protect water source regions andthe like, and a horizontal purification wall placed beneath farmland that contains large quantities of fertilizer to reduce theload of nitrate nitrogen on aquifers.
Purifies the nitrate nitrogen in groundwater for decades without obstructing use at the surface of the ground.
Enables maintenance-free purification with no need for pumping up or other treatment.
Purification technology uses the denitrification action of microorganisms, so safety is high and secondary contamination
does not occur.

Cyclic Usage Technology for Slurry in Slurry Shield Tunnel Construction (Containing
naturally occurring arsenic)

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The slurry used in slurry shield tunnel construction is treated in a turbid water treatment plant, and the squeeze water thatcomes out of the dewatering process is reused. If arsenic or other contaminants are included, this process can remove thecontaminants. The arsenic is also removed from the dewatered sludge (secondary treated soil), so it can be reused as well.
Both water and soil can be resource-recycled.
Technology for regenerating the iron powder to which the arsenic is attached enables the iron powder to be used
repeatedly, reducing material costs and environmental load.
The arsenic removal equipment is compact and can easily be installed in existing slurry treatment facilities.

New Toyosu Market Soil Contamination Remediation ProjectThis was a project to treat the contaminated soil and contaminated groundwater that had been contaminated by specified
hazardous substances (benzene, cyanogen compounds, arsenic, lead, mercury, hexavalent chromium and cadmium) that
had been produced by the operations of a city gas factory. The contaminated soil was transported to a temporary soil plant(separate work) and the treated soil was returned and used as backfill. The contaminated groundwater was purified bypumping-up and flushing using the flushing and bio-sparging method. The area subjected to soil contamination remediation
measured approximately 130,000 m2.

Ⅲ. Conservation of water resources

Management of Construction Effluent

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Taisei Corporation has been certified under ISO14001 and, as part of its Environmental Management System (EMS),
exercises thorough management of construction effluent at all of its approximately 700 offices and workplaces both at home
and abroad, using its own "Manual of Environmental Priorities for Branch Offices and Workplaces" and "Checklist ofEnvironmental Laws and Regulations, etc. checklists."
In addition, various site patrols by general managers and branch officials as well as specialized environmental patrols (byenvironmental patrol personnel who have received training based on in-house standards) are conducted, in order to assess
activities at each workplace and provide guidance for improvement.

1.

During construction work planning, the Checklist of Environmental Laws and Regulations is used to confirm effluent
destinations, effluent standards established in local ordinances, and relevant laws and ordinances.

2.

Drainage methods and management plans are prepared, based on the characteristics of the surrounding environment
and the construction site and effluent standards that are appropriate for the workplace.

3.

If necessary, consultations with the government and the local community are held prior to the start of construction.

4.

Workplaces manage water quality, such as the pH level of construction effluent, based on management plans. (Thefrequency of measurement varies depending on the workplace.)

5.

Both regular and irregular environmental patrols are conducted and follow-up action is taken.

In construction projects, most of the activities at construction sites are conducted by subcontractors and suppliers, so
coordination with such contractors is essential for environmental management at worksites, including the treatment andmanagement of construction effluent. Taisei Corporation, together with some 7,000 primary subcontractors and suppliers, isconducting environmental management of its workplaces and striving to ensure that there are no environmental accidents.
In the event of problem with the management of construction effluent by subcontractors and suppliers, or environmental
accidents, reports are sent to Taisei Corporation without delay, and if the subcontractors and suppliers fail to fulfill its
obligation, Taisei responds adequately, such as by suspending business with the offending subcontractors and suppliers.

Flood damage recovery

Emergency disaster measures for the levee breach on the Kinugawa River in the Tone
River System
The concentrated heavy rainfall in the Kanto region in September 2015 resulted in a levee breach on September 10,
extending for approximately 200m on a levee in the Kinugawa River. This caused damage that included many homes being
washed away by the inundation flow in the area of the breach. Working 24 hours a day, Taisei Corporation conductedemergency repair work of the levee breach. A week after the breach, the placement of foot protection blocks and earth filling

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for the temporary embankment were completed. On September 24, two weeks after the breach, the emergency repair workthat included the construction of a reinforcing double-wall cofferdam was successfully completed.
This emergency disaster recovery work was conducted based on a disaster relief agreement with the MLIT Kanto Regional
Development Bureau.

Emergency work in the Aizome River System (recovery work following the Atami landslidedisaster)
As emergency repair work on the Aizome River in the wake of the landslide that occurred on July 3, 2021 in the city ofAtami, debris exclude works, construction roads and temporary dam works were constructed. To remove the rubble of theexisting dam, helicopters were used for transport of earth and sand, and a wide access road on the right bank andconstruction roads were built to enable sediment transport by land as well. To prevent secondary disasters from occurring indownstream resident communities and the sectors where emergency recovery work was underway, net roll sandbags andtemporary block dams were constructed in the FY 2021 work. The FY 2022 work will focus on construction of the new
permanent dam.

T-Flood® Analyzer Flood Risk Assessment System
This technology simulates the building interior inundation status in the event that the area around the building is flooded andinundated. The results of analysis, such as the inundation path to each room in the building, the inundation quantity and theinundation time are visualized at an arbitrary location, thus enables to grasp the inflow route to each room in the building
and the depth of flooding at a glance.
In addition, the shortest evacuation route from each room to the ground level exit and the time required in the event offlooding can also be calculated.
And the results of analysis can be displayed in three dimensions from an arbitrary perspective, making it easy to shareinundation status and inundation risk data among participants and enabling it to be used effectively as a consensus-building
tool as well.

"T-GI Rain Garden" Outdoor Facility Creation Technology with Advanced Rainwater
Permeability and Storage Functions

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TAISEI developed the "T-GI Rain Garden" outdoor facility creation technology which uses a new planting base material thatcombines rainwater permeability with storage performance, and confirmed its effectiveness through demonstration tests.

T-GI Rain Garden has the following features.

1.Base material offers excellent rainwater permeability and storage functions.
A porous volcanic gravel with high water retention is used, and volcanic gravel of different grain sizes are blended tocreate voids in the soil, and thus realized a base material with excellent rainwater permeability and storage capabilities.
2.Can be planted directly on the base material, expanding the planting area.
Ordinary base material use gravel and the like as the base material which are good in permeability but have poor water
retention, and thus, not suitable for planting trees. The newly developed base material not only allows rainwater topermeate, but also stores rainwater in the material, thus enables planting directly on the base material and makes it
possible to expand the range of applications for rain garden.
3.Possible to reduce or delay the peak of rainwater runoff from the site during rain.
The base material is effective in reducing or delaying the peak of rain runoff from the site during rainfall (in actual
measurements, the peak of rainfall runoff was reduced approximately 85%, and in indoor tests the time of peak runoff
was delayed by 35 to 60 minutes), so it can contribute to prevent urban area floodings.
4.Various types of plants can be cultivated.
As the base material can stores rainwater temporarily, it has been confirmed to be capable of nurturing a wide variety ofplants, for environments ranging from humid to somewhat arid environments. As a result, various types of greenery canbe created.

Business Continuity Plan (BCP)
To continue business operations even in the event that the head or branch offices and construction workplaces sustain flood
damage or other types of damage, a Business Continuity Plan (BCP) has been formulated, and trainings are conductedeach year. The content of the BCP is revised as needed to ensure that it reflects disaster damage that has actually occurred
and the social situation. Each year, approximately JPY 100 million is disbursed for equipment and system maintenance andthe purchase of stockpiles and so on.

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Compliance with Environment-related Laws andRegulations

Policies and Basic Approach / Goals and Targets

Activities / Efforts

Data

Compliance with Environment-related Laws andRegulations
Policies and Basic Approach / Goals and Targets
The first item in the Group Environmental Action Guidelines noted in the Environmental Policy is "Compliance withenvironment-related laws and regulations and achievement of zero environmental accidents: In addition to complying withenvironment-related laws and regulations throughout the Group, we will achieve 'Zero Environmental Accidents' at worksites based on the 'Priority Management Items for Work Sites' and other items set forth by the Safety Division." TAISEI
continues to work to ensure zero environmental accidents (zero serious soil, water, dust or other pollution incidents) byobserving environment-related laws and regulations and appropriately managing construction by-products.

Risks and Opportunities
In the event of a violation of an environment-related law or regulation at a TAISEI Group construction site, the risk of criminal
penalties, administrative disciplinary action, claims for damages and so on will arise. TAISEI reduces the risk ofenvironmental accidents and complaints during construction work by strictly observing environment-related laws andregulations and by promoting the use of work methods that reduce the impact of noise, vibrations, dust etc. on thesurrounding environment.

Policies / Commitments

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Safety and Health Policy
Key Environmental Management ManualConstruction Byproduct Disposal Procedure Manual

Refer toAction Guidelines for Taisei Personnel and the Taisei Group as a Whole

Environmental Policy

Activities / Efforts

Risk Management at Worksites
To ensure appropriate disposal of construction by-products and observance of environmental laws, environmental
safetydepartments at the Taisei head office and branch offices conduct "Worksite Environmental Patrols" andenvironmentaleducation and training as an internal audit of the observance of environmental laws and regulations atworksites.
Environmental education for employees and specialized construction company personnel is conducted at worksites
inaccordance with the Key Environmental Management Items Manual. By sharing examples of situations that may lead led
toenvironmental accidents, learning about the appropriate management of asbestos, PCBs and other hazardous
chemicalsubstances, and by promoting appropriate management and purification of contaminated soil and so on, trainees
learn theimportance of environmental management to prevent environmental accidents.
In FY2022, we conducted 1,219 environmental patrols. We also conducted inspections with more stringent targets thannational laws and regulations, which led to the identification of 278 issues. Of these, 8 were nonconformities to environmentrelated laws and regulations. In response to the issues that were pointed out, we are devising corrective and preventive
actions to ensure ongoing improvements.
In FY 2022, there were no incidents of soil, water, dust or other serious contamination, nor any serious environment-related
legal violations.

Response

Type

Action (Example)

Noise

Communicated with neighbors in advance about nighttime concrete-related work.

Vibration

Changed the heavy machinary work schedule in the factory to a factory holiday.

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Type
Dust

Action (Example)
Implemented measures such as spraying water and installing sheets to avoid dust scatteringfrom construction work.

Water

collect fuel oil leaked from a crane ship using absorbent mat,and implemented recurrence

pollution

prevention measure.

*For worksites in central Tokyo, relevant precautions are being taken, such as continuous measuring of noise and vibration as well as display of such information
externally in real time.

Complaints and Responses at Construction Sites and Offices
In response to environment-related companies addressed to construction sites and offices,we take appropriate measures
record, and report using communication according to our sheet Environment Management System (EMS) procedure, andshare the information horizontally among concerned departments or within the entire Company as necessary. we also
respond appropriately to opinions/ comments received from civic groups.

Percentage by Complaint Item

Data

Environmental Data

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Environmental Due Diligence

Embed Environmental Due Diligence into policies and the management system
Identify and assess adverse impacts on the environment
Cease, prevent, or mitigate adverse environmental impacts
Disclose information

Track implementation and results

Provide for or cooperate in remediation when appropriate

Environmental Due Diligence
Toward the “Realization of a Sustainable and Environmentally Friendly Society,” as outlined in the Environmental Policy, theTaisei Group has established and continuously implements a framework for Environmental Due Diligence to cease, prevent,or mitigate adverse impacts on the environment caused by the Group’s business activities, following international guidelines,
etc. In operating this framework, we review and improve the framework accordingly and make efforts to deepen our
initiatives to realize a sustainable and environmentally friendly society.

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Embed Environmental Due Diligence into policies and the
management system
In March 2023, the Taisei Group revised the Environmental Policy, which sets forth its commitment to implement
Environmental Due Diligence toward the “Realization of a Sustainable and Environmentally Friendly Society.” The Group
discloses this policy on the official Taisei Group website, etc., and with regard to the adverse impacts of the Group’sbusiness activities on the environment (“environmental risks”), it will promote engagement with suppliers and communication
with its stakeholders and make efforts to prevent and mitigate environmental risks.

Refer to:Environmental PolicyGroup’s Long-Term Environmental Target (TAISEI Green Target 2050)

Identify and assess adverse impacts on the environment
To identify and assess the adverse impacts on the environment caused by the businesses of the Taisei Group, theSustainability Division (Integrated) and the Sustainable Procurement Council, under the guidance and recommendations ofan outside expert (Mizuho Research & Technologies, Ltd.), referred to various guidance from Japan and abroad including
CDSB (Climate Disclosure Standards Board) guidance, TCFD guidelines, and the TNFD beta framework, and identified therisks related to all of the businesses of the Taisei Group for each value chain. The identified environmental risks(contamination and degradation of the atmosphere, the eco-system, water quality, and soil; the progression of climatechange including global warming; health hazards, etc.) were subjected to quantitative analysis and assessment from the two
aspects of “the degree of impact,” should such risks materialize, and “the probability of occurrence.” Following discussions
at the Sustainability Committee and the Board, these risks were identified as “the risks that must be dealt with on a priority
basis.” (hereinafter referred to as “identified priority environmental risk.”).

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Where risk occurs in

Impact factors

Risks

the value chain
Changes in the use ofContamination and degradation of the eco-land/seas

system, water quality, and soil

Overexploitation of natural
resources

Same as above

Upstream (business
partners)

Contamination and degradation
by toxic substances (waste)

Direct operations(businesses of the TaiseiGroup)

Downstream (customers)

Contamination and degradation of theatmosphere, water quality, soil, and ecosystems

Increase in greenhouse gas

Progression of climate change including global(GHG) emissions

warmingChanges in the use ofContamination and degradation of the eco-land/seas

system, water quality, and soil

Contamination by toxic
substances (waste)

Contamination and degradation of theatmosphere, water quality, soil, and ecosystems, and health hazards

Increase in greenhouse gas

Progression of climate change including global(GHG) emissions

warming

Increase in greenhouse gas

Progression of climate change including global(GHG) emissions

warming

Cease, prevent, or mitigate adverse environmental impacts
With regard to the “identified priority environmental risks.” related to the business of Taisei that must be dealt with on apriority basis, the headquarters in charge plays the principal role in taking various measures to achieve prevention andmitigation, including compliance with environment-related laws and regulations and initiatives of the TAISEI Sustainable
Action (TSA) to reduce environmental impact at worksites.
Furthermore, with regard to the identified priority environmental risks related to the supply chain, we are implementing
measures to achieve prevention and mitigation such as the promotion of green procurement and collaboration with suppliers
based on the Sustainable Procurement Guidelines, etc., and for the identified priority environmental risks related tocustomers, through proposals of environmentally-friendly construction materials and design.

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Refer to:
TSA: TAISEI Sustainable Action®, Environmental Impact Reduction Activities Conducted by All Employees of
the Taisei Group
Taisei Group of Companies Sustainable Procurement Guidelines

Track implementation and results
The effectiveness of activities to address the “identified priority environmental risks.” related to the business of Taisei thatmust be dealt with on a priority basis is assessed through, among others, various patrols of worksites, monitoring by various
committees, and checks and improvements based on company-wide risk management.
For activities to address the identified priority environmental risks related to the supply chain that must be dealt with on apriority basis, annual self-assessments by suppliers are conducted, and based on the results thereof, suppliers are visitedand audited and an exchange of views is conducted for improvement.
The effectiveness of activities to address the identified priority environmental risks is also assessed by confirming the statusof compliance with environment-related laws and regulations through the operation of the environmental management
system (EMS) based on ISO 14001 and the degree of achievement of environmental targets.

Disclose information
The status of implementation of Environmental Due Diligence activities is regularly reported to the Sustainability Promotion
Committee, the Management Committee, the Sustainability Committee, and the Board. These reports are disclosed in atimely and appropriate manner on the official website and in annual reports.

Provide for or cooperate in remediation when appropriate
Consultation contacts and whistle-blower contacts for violations of environmental laws and regulations have been
established for consultations from all stakeholders within and outside the company. In the event that the Taisei Group has
been determined to be the cause of, or a contributing factor to, an adverse impact on the environment, Taisei takes prompt
action using appropriate means to provide remediation and implement corrective action in accordance with theEnvironmental Policy.

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Environmental Data

Environmental Data (FY2022)

TAISEI CORPORATION Annual Environmental Targets

TAISEI Group Material Flow (FY2022)

TAISEI CORPORATION Material Flow

Material Flow for Group Companies
Projected CO2 Emissions and Reduction Rate in the Building Operation Phase
Total Construction By-product (Waste / valuable resources)

Management of Hazardous Wastes

Environmental Data / Indicator Calculation Method / Criteria

Environmental Data (FY2022)
Environmental Data (FY2022)

Independent Assurance

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153

Environmental DataTAISEI CORPORATION Annual Environmental Targets•

Environmental Targets for FY2023 and result for FY2022

TAISEI Group Material Flow (FY2022)



TAISEI CORPORATION Material Flow



•

INPUT

•

OUTPUT•

Supply chain CO2 emissions(Scope3)

Material Flow for Group Companies
•

INPUT

•

OUTPUT•

Supply chain CO2 emissions(Scope3)

Projected CO2 Emissions and Reduction Rate in the Building Operation Phase

Total Construction By-product (Waste /valuable resources)







•

Total Construction By-product•

Emissions (103t) and recycle rate by type (FY2022)•

Recycle rate management of hazardous wastes

Management of Hazardous Wastes•

Hazardous waste quantity•

PCB wastes•

Volatile organic compounds (VOC emissions)

Environmental Data / Indicator Calculation Method / Criteria•

TAISEI CORPORATION•Group Companies

Third-Party Verification(Independent Assurance Report)

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154

1

TAISEI CORPORATION Annual Environmental Targets｜Environmental Targets for FY2023 and result for FY2022

Target Values

ResultFY2023 Target Values（Medium-TermBusiness Plan
2021-2023）-38%-47.5%-41%-51%-60.5%-46%-42%-49.8%-43%

FY2022
Annual Targets

KPI

At construction stage *1:
Reduction of CO2 emissions per sales(intensity)
DecarbonizedSociety

KPI

At construction stage*1:
Reduction of total CO2 emissions
At building operation stage*1:

KPI

Reduction for design-build projects
estimated CO2 emissions (including
dissemination and promotion of ZEB)

Recycling Oriented
Society

Nature Co-ExistingSociety

Adoption of green (environmentallyconscious) procurement items atbuilding design stage

11 items per
project or more

Reduction of final disposal rate ofconstruction waste

3.3% orless

2.8％

3.2% orless

Promotion of projects contributing to
improvement in biodiversity

40 projects or
more

50 projects or
more

40 projects ormore

12.8 items
per project

12 items per
project or more

※1 Compared to FY1990
KPI Key performance indicator

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155

2

TAISEI Group Material Flow (FY2022)
OUTPUT

INPUT
Total fossil fuel use
Diesel78.3

Total CO2
emissions(Scope1+2)

291

58.3

Sites
(construction sites)

211
103t-CO2

Kerosene

4.1

Heavy oil
Gasoline

103kL

Factories

64

14.0

Offices16

1.9

Scope 1

217
103t-CO2

Total electricity use

167

Sites
(construction sites)

109

Scope 2

106kWhFactories

Construction by-products
volume

75

2,420

35
Quantity recycled

Offices23

Quantity of direct final
disposal

Total quantity of the main
construction materials―

Ready mixed concrete

1,060

103m3

66

103t

2,335

103t

85

―
Water (discharged)

3,134

103m3

Supply chain CO2 emissions(Scope3)
CementScope 3Aggregates (gravel,crushed stone, etc.)

155

Steel

405

103t

2,390

103m3

Water (consumption)

5,284

103t
Category 1

2,105
103t-CO2

Category 11

2,856

Other Category323

Total CO2 emissions(Scope1+2)

Construction By-product volume

Taisei Corporation

189

Taisei Corporation

Taisei Rotec Corporation

94

Taisei Rotec Corporation

2,012
332

103t-CO2103t

TAISEI U-LEC CO., LTD

5

TAISEI U-LEC CO., LTD

60

Five other companies

3

Five other companies

17

Environmental Social Governance Report 2023

156

3

TAISEI CORPORATION Material Flow
｜INPUT
Category

Third-party assured values are indicated with theUnits

FY2018FY2019FY2020

FY2021

mark

FY2022

Total energy use

109MJ

4.14

4.39

3.60

3.77

3.24

Construction site (building)

109MJ

1.61

1.99

1.04

1.45

1.32

Construction site
(civil engineering)

109MJ

2.31

2.18

2.35

2.10

1.70

Offices

109MJ

0.22

0.22

0.22

0.22

0.22

Total fossil fuel use

103kL

79.0

76.7

61.4

62.7

50.9

Diesel

103kL

77.8

75.2

60.0

62.2

45.1

Kerosene

103kL

0.5

0.6

0.9

0.5

0.9

Heavy oil

103kL

0.8

1.0

0.5

0.1

5.0

Total electricity use

106kWh

111

145

122

136

125

Construction site (building)106kWh

43

57

21

34

49

Construction site
(civil engineering)

106kWh

52

73

87

85

59

Offices106kWh

15

15

15

16

16

City gas (offices)

103m3

140

213

259

165

118

GTL

103kL

―

―

―

―

0.3

103m3

3,375
3
10
（ t）

4,066
3
10
（ t）

3,855
3
10
（ t）

1,523

1,060

Cement

103t

695

263

172

120

66

Aggregates (gravel,crushed stone, etc.)

103t

2,038

2,514

387

315

155

Steel

103t

414

506

534

539

405

Water
(consumption)*3

103m3

1,436

1,414

1,412

2,266

2,279

Construction site

103m3

―

1,348

1,363

2,215

2,220

Office

103m3

―

66

49

51

59

%

―

82

67

22

57

River water / groundwater/ etc.

%

―

18

33

78

43

Seawater

%

―

0

0

0

0

Quantity of the main
construction materials*1
Ready mixed concrete*2

Proportion by worksites
water intake destination*4
Tap water / water forindustrial use*1 Up through FY 2020, the contract quantities were tabulated. Beginning in FY2021, sales quantities for the four main construction materials (ready‐mixed
concrete, cement, aggregates, and steel) were tabulated. In FY2022, sales quantities for Taisei Corporation’s independent construction projects andturnover quantities for joint venture constructions according to Taisei’s sales were tabulated, calculated, and disclosed.
*2 From FY 2018 through FY 2020, quantities have been shown as "103t."*3 Consumption ＝Intake quantity. The discrepancy between the consumption quantity and the discharge quantity is mainly due to the fact that naturally
gushed out spring water, ground water, etc., at the worksites are not included in the consumption quantity, but are included in discharge quantity as they
Environmental Social Governance Report 2023
157
4
are subject to management.
*4 Proportion calculated from intake and discharge quantities at sampled worksites. *Note: Data are from TAISEI Corporation (non‐consolidated) (domestic).

TAISEI CORPORATION Material Flow
｜OUTPUT
Category
Total CO2 emissions

Third-party assured values are indicated with theUnits

FY2018FY2019FY2020

FY2021

mark
FY2022103t-CO2

261

267

216

224

189

103t-CO2

102

124

66

91

78

103t-CO2

148

133

140

123

101

103t-CO2

11

10

10

10

10

t-CO2/JPY
100 million

19.5

18.8

19.1

19.1

14.4

103t-CO2

261

267

216

224

189

Scope 1*1

103t-CO2

204

198

159

162

133

Scope 2*2

103t-CO2

57

69

57

61

56

NOX

t

1,345

1,302

1,039

1,085

813

SOX

t

205

200

158

162

151

Quantity of
Chlorofluorocarbon andhalon recovered*3

t

15

21

Construction by-product

103t

2,020

2,411

1,787

1,976

2,012

Quantity recycled

103t

1,924

2,283

1,715

1,914

1,939

Quantity of direct final
disposal

103t

96

128

71

62

73

Water (discharged) *4

103m3

4,483

4,288

6,625

9,677

3,014

Construction site

103m3

―

4,228

6,578

9,627

2,955

Office

103m3

―

60

47

50

59

Sewer, etc.

%

―

34

19

11

66

River / lake /agricultural drainage
ditch

%

―

65

77

89

33

Ocean

%

―

1

4

0

1

(Scope1+2)

Construction site(building)Construction site
(civil engineering)

Offices
At construction stage
Reduction of
CO2 emissions per sales(intensity)

Total CO2 emissions

―

―

―

Proportion by worksite
discharge destination*5*1 Since in FY2021, in accordance with the Japan Federation of Construction Contractors guidelines, emissions at Taisei worksites from fuel are listed under
Scope 3,which in FY2020 were included in Scope 1.
*2 Total CO2 emissions in FY2022 include the effects of reduction of 113t‐ CO2 from using renewable energy which non‐fossil certificates.
*3 Up to FY2019, the quantities of fluorocarbons and halons emitted by Taisei that have been recovered have been tabulated and disclosed (halon recovery
quantities since FY 2018), in accordance with the Fluorocarbon Recovery and Destruction Act. In FY2020, leak quantities were tabulated in accordance with the
Act for Rationalized Use and Proper Management of Fluorocarbons. Leak quantities were minute and were therefore not disclosed.
*4 The discrepancy between the consumption quantity and the discharge quantity is mainly due to the fact that naturally gushed out spring water, groundwater, etc., at the worksites are not included in the consumption quantity, but are included in discharge quantity as they are subject to management.
*5 Proportion calculated from intake and discharge quantities at sampled worksite.
Environmental
158
5*Note: Data are from TAISEI Corporation (non‐consolidated)(domestic).Social Governance Report 2023

TAISEI CORPORATION Material Flow
｜Supply Chain CO2 Emissions(Scope3)
Category

Third-party assured values are indicated with the

mark

Units

FY2018FY2019

Scope 3 Total

103t-CO2

―

―

4,491

3,878

4,616

1. Purchased goods andservices *1

103t-CO2

―

―

1,347

1,283

1,889

2. Capital goods

103t-CO2

―

―

4

0

13

3. Fuel-and-energy-related
activities

103t-CO2

―

―

32

33

28

4. Upstream transportationand distribution

103t-CO2

―

―

9

8

5

5. Waste generated inoperations

103t-CO2

―

―

179

209

143

6. Business travel103t-CO2

―

―

1

1

1

7. Employee commuting

103t-CO2

―

―

5

5

5

8. Upstream leased assets

103t-CO2

―

―

1

0

0

9. Downstream
transportation anddistribution

103t-CO2

―

―

―

N/A

N/A

10. Processing of soldproducts

103t-CO2

―

―

―

N/A

N/A

11. Use of sold products

103t-CO2

―

―

3,371

2,284

2,495

12. End of life treatment ofsold products

103t-CO2

―

―

40

51

35

13. Downstream leased
assets103t-CO2

―

―

5

5

3

14. Franchises

103t-CO2

―

―

―

N/A

N/A

15. Investments

103t-CO2

―

―

―

N/A

N/A

FY2020

FY2021

FY2022*1 For FY2020 and FY2021, the CO2 emissions for the four main construction materials (ready‐mixed concrete, cement, aggregates, and steel) were calculated.
From FY2022, those for all items were calculated. The CO2 emissions in FY2022 for the four main construction materials were 933 (103t‐ CO2).
※ Beginning in FY2020, values based on the GHG Protocol, etc. are disclosed.
*Note: Data are from TAISEI Corporation (non‐consolidated) (domestic).

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Material Flow for Group Companies｜INPUT

Third-party assured values are indicated with themarkCategory

Units

Total energy use

109MJ

1.62

1.68

1.70

1.70

1.70

109MJ

0.39

0.32

0.37

0.42

0.47

Factories

109MJ

1.10

1.23

1.20

1.15

1.12

Offices

109MJ

0.12

0.12

0.13

0.12

0.12

Total fossil fuel use

103kL

26

26

27

27.4

26.7

Diesel

103kL

12

10

11

12.2

13.2

Kerosene

103kL

2

3

3

2.7

2.5

Heavy oil

103kL

11

11

11

10.8

9.0

Gasoline

103kL

2

2

2

1.7

1.9

Total electricity use

106kWh

40

43

43

43

42

106kWh

1

1

1

1

1

Factories

106kWh

33

35

35

35

35

Offices106kWh

7

7

7

7

7

City gas

103m3

4,628

5,692

5,056

4,169

4,589

GTL

103kL

―

―

0

0.2

0.1

LPG

t

378

485

575

598

1,231

103m3

115

138

109

102

111

Sites
(Construction site)

Sites(Construction site)

Water(consumption)

FY2018FY2019FY2020

FY2021

FY2022*Note: Data are from TAISEI Group Company is excluding Taisei Corporation(domestic).

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Material Flow for Group Companies｜OUTPUT

Third-party assured values are indicated with themarkCategory

Units

Total
CO2 emissions(Scope1+2)

103t-CO2

100

101

102

101

102

Construction site

103t-CO2

27

22

25

29

32

Factories

103t-CO2

66

72

70

66

64

Offices

103t-CO2

7

7

7

6

6

Total CO2 emissions

103t-CO2

100

101

102

101

102

Scope 1*1

103t-CO2

80

81

83

83

84

Scope 2*2

103t-CO2

20

20

19

18

19

NOX

t

257

227

224

280

295

SOX

t

107

103

105

107

97

Quantity of
Chlorofluorocarbon andhalon recovered

t

3

2

2

6

6

Total industrial waste
generated

103t

266

485

416

476

408

Quantity recycled

103t

256

475

406

465

397

Final disposal quantity

103t

10

10

10

11

12

Water (discharged)

103m3

109

74

76

108

120

FY2018FY2019FY2020

FY2021

FY2022*1 Since FY 2021, in accordance with the Japan Federation of Construction Contractors guidelines, emissions at Taisei worksites from for fuel are listed under
Scope 3, which in FY 2020 was included in Scope 1.
*2 The quantities of fluorocarbons and halons emitted by the Group companies that have been recovered have been tabulated and disclosed (the quantity of
halons recovered until FY2018).
*Note: Data are from TAISEI Group Companies is excluding Taisei Corporation (domestic).

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Material Flow for Group Companies｜ Supply Chain CO2 Emissions(Scope3)
CategoryUnits

FY2018FY2019FY2020

Scope 3 Total

103t-CO2

―

―

―

753

668

1. Purchased goods andservices *1

103t-CO2

―

―

―

246

216

2. Capital goods

103t-CO2

―

―

―

19

12

3. Fuel-and-energy-related
activities

103t-CO2

―

―

―

17

12

4. Upstream transportationand distribution

103t-CO2

―

―

―

9

5

5. Waste generated inoperations

103t-CO2

―

―

―

13

18

6. Business travel103t-CO2

―

―

―

1

1

7. Employee commuting

103t-CO2

―

―

―

1

1

8. Upstream leased assets

103t-CO2

―

―

―

0

0

9. Downstream
transportation anddistribution

103t-CO2

―

―

―

5

5

10. Processing of soldproducts

103t-CO2―――

11. Use of sold products

103t-CO2

―

―

―

405

361

12. End of life treatment ofsold products

103t-CO2

―

―

―

9

7

13. Downstream leased
assets103t-CO2

―

―

―

28

28

14. Franchises

103t-CO2

―

―

―

N/A

N/A

15. Investments

103t-CO2

―

―

―

N/A

N/A

FY2021

FY2022

N/A

N/A※ Beginning in FY2021, values based on the GHG Protocol, etc. are disclosed.
*Note: Data are from TAISEI Group Companies is excluding Taisei Corporation (domestic).

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Projected CO2 Emissions and Reduction Rate in the
Third-party assured values are indicated with the
Building Operation Phase

mark

Category

Units

Projected CO2 emissions

103t-CO2

10

15

42

19

13

Calculated values
according to 1990
standard

103t-CO2

17

25

72

34

26

(reduction rate)

%

40.2

39.5

41.4

44.6

49.8

kg-CO2/Yearꞏm2

30

23

32

17

11

Emissions by floor space

FY2018FY2019FY2020

FY2021

FY2022*Note: Data are from TAISEI Corporation (non‐consolidated) (domestic).

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Total Construction By-product (Waste /valuable resources)｜Total Construction By-productCategory

Third-party assured values are indicated with theUnits

FY2018FY2019FY2020

FY2021

mark

FY2022

Total Construction Byproduct

2,020

2,411

1,787

1,976

2,012

Excluding sludge andspecially controlledindustrial wastes

973

1,268

1,066

1,119

1,314

Final disposal quantity

96

128

71

62

73

88

74

51

38

42

1,924

2,283

1,715

1,914

1,939

886

1,194

1,016

1,082

1,272

Excluding sludge andspecially controlledindustrial wastes

103t

Quantity recycled
Excluding sludge andspecially controlledindustrial wastes*Note: Data are from TAISEI Corporation (non‐consolidated) (domestic).

｜Emissions (103t) and recycle rate by type (FY2022)
Construction
By-productCivilengineering New

Third-party assured values are indicated with themark

Building construction
Total

Construction

Demolition

Recyclingrate（％）

Subtotal

Concrete remnants

133

268

508

776

908

100

Asphalt- concrete
Remnants

53

64

10

74

127

100

Construction site sludge

390

222

32

254

644

Mixed waste

6

32

6

38

44

77.6

Wood scrap

21

10

4

14

35

94.9

Metal scrap

2

13

12

26

27

99.6

Waste plastics

2

5

1

6

8

68.8

Miscellaneous

83

99

36

135

218

74.5

Total

689

714

608

1,322

2,012

｜Recycling Rate
Category

Wood scrap―

Third-party assured values are indicated with theUnits

Concrete remnants
Asphalt- concrete
Remnants―%

FY2018FY2019FY2020

FY2021

mark

FY2022

100

100

100

100

100

100

99.5

100

100

100

95.0

95.0

95.0

95.0

94.9

※ The above three items are specific construction material waste based on the Construction Material Recycling Act.
*Note: Data are from TAISEI Corporation (non‐consolidated)(domestic).
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Management of Hazardous Wastes｜Hazardous waste quantity
CategoryUnits

FY2018Specially controlledindustrial wastes
Waste asbestos etc.
Industrial wastes
containing asbestos

FY2019FY2020

FY2021

FY2022

10

10

3

3

3

1

2

1

3

3

4

14

5

15

17

0

0

0

0

0

103t

Mercury-using products*Note: Data are from TAISEI Corporation (non‐consolidated) (domestic).

｜PCB wastes
CategoryUnits

FY2018Quantity of PCB wastes
generated and discardedkg―

FY2019FY20200

FY20210

FY202231

27*Note: Data are from TAISEI Corporation (non‐consolidated) (domestic).

｜Volatile organic compounds(VOC emissions)Category
VOC emissions*

Units

FY2018FY2019FY2020

FY2021

FY2022

t

―

N/A

N/A

N/A

N/A

＊As of November 2022, there were no items that fall under the heading of volatile organic compound discharging facilities and discharge criteria subject toregulation as established by the Volatile Organic Compound (VOC) Discharge Control System (Ministry of the Environment).
*Note: Data are from TAISEI Corporation (non‐consolidated) (domestic).

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Environmental Data / Indicator Calculation Method / Criteria‐

Target organizations‐

Domestic enterprises of Taisei Group companies (Taisei Corporation, Taisei Rotec Corporation, Taisei‐Yuraku Real
Estate Co., TAISEI U‐LEC CO., LTD, Seiwa Renewal Works, Taisei Setsubi Co., Ltd., J‐FAST Co., Ltd., Taisei Housing
Corporation)
The target organizations cover more than 90% of the sales of the entire Taisei Group.

Category by type of worksite

Construction site (civil engineering / building), office (not including development projects and other projects) or factory

CO2 emissions Scope categories‐ Scope 1: CO2 emissions from burning of fossil fuels (including transport of construction by‐products from worksites)‐ Scope 2: Indirect CO2 emissions from the use of power, steam or hot and cold water‐ Scope 3: CO2 emissions from other companies involved in business activities

Taisei Corporation Material Flow
INPUT

Calculation method/criteria

Fossil fuel use

103kL

Electricity use

106kWhCity gas (offices)

103m3

Water
(consumption)

103m3

Quantity of themainconstruction
materials―

OUTPUT

CO2 emissions
Scope 1 and 2

Aggregation criteria
Aggregated in conformance with the Act on Rationalizing Energy Use and Shifting to Non‐fossil Energy, Act on
Promotion of Global Warming Countermeasures, the GHG Protocol, the Japan Federation of Construction Contractors
guidelines, etc., and based on in‐house regulations relating to environmental data management, the Taisei Groupenvironmental data aggregation manual, and the Taisei Corporation environmental data aggregation manual.
Calculation of use
・Offices: Annual purchase quantity and usage are aggregated for each month・Construction site (Civil Engineering and Building worksites): Annual consumption was aggregated for 167 sampledworksites and the consumption per unit of construction sales (basic unit) for the period was calculated. The annual
consumption for the sampled worksites was aggregated (for 2 months until FY2021) and combined with the annual
consumption of the other worksites, derived by multiplying the basic unit by the construction sales of Taisei andcalculated. For civil engineering, this calculation is performed for each construction type.
*Energy‐related: Major fossil fuels (heavy oil, light oil, gasoline (office), kerosene),electricity, city gas, GTL, steam, andhot and cold water consumption and their energy‐equivalent values*The total of energy usage is the value of fossil fuel usage + power usage + city gas (office) usage + steam and hot andcold water usage converted into joules.
Calculation method of the main construction materials usage:
・The purchase quantity of main construction materials (ready‐mixed concrete, cement, aggregates and steel) purchased
for construction by Taisei Corporation is calculated. For independent construction work by Taisei Corporation, thedirectly purchased quantity; and for construction work as the representative of a joint venture construction, thepurchased quantity multiplied by Taisei’s share of sales, is used. For joint venture constructions, in which Taisei is not
representative, material usage is calculated based on Taisei’s construction sales for the year.

Calculation method/criteria

103t‐CO2

NOx

t

SOx

t

Construction by‐
product

103t

Aggregation criteria
Aggregated in conformance with the Act on Rationalizing Energy Use and Shifting to Non‐fossil Energy, Act on
Promotion of Global Warming Countermeasures, the GHG Protocol, the Japan Federation of Construction Contractors
guidelines, etc., and based on in‐house regulations relating to environmental data management and the Taisei Groupenvironmental data aggregation manual.
CO2 emission factor
Light oil, heavy oil, etc.: Calculated using the emission factor in the Act on Rationalizing Energy Use and Shifting to Non‐fossil Energy and Act on Promotion of Global Warming Countermeasures.
GTL: Calculated using the 2.36 kg‐CO2 /l computed by Shell Global Solutions.
Electricity: Calculated using 0.436 t‐CO2 /MWh, the 2021 post‐adjustment emissions factor from the receiving end in the
figures announced by the Japan Business Federation. For offices, calculated using the post‐adjustment emission
factor for the FY2021 results for each electric power company.
City gas: Calculated using the standard calorific value of city gas suppliers and the emission factor in the Act on
Promotion of Global Warming Countermeasures.
Construction stage: CO2 emission per construction sales
Calculated by dividing the CO2 emission of Taisei worksites (Civil Engineering/ Building Construction) (not including theeffects of reduction by conversion to real renewable energy through the purchase of non‐fossil certificates) by theconstruction sales of Taisei.
*Calculation of CO2 emission of the Civil Engineering and Building Construction (worksites): Annual consumption offossil fuels, electricity, and GTL was aggregated (for 2 months until FY2021) at the sampled worksites and combinedwith the annual consumption of the other worksites, derived by multiplying the basic unit by the construction sales ofTaisei, and calculated by multiplying it by the CO2 emission factor.
Emissions from light oil, heavy oil, and kerosene are calculated using the emission factor in the Architectural Institute ofJapan “Building LCA Guidelines: Assessment Tool for Global Warming, Resource Consumption and Waste Measures(revised version).”Construction by‐product from independent construction work, joint venture construction in which Taisei is therepresentative, and construction by‐products generated at owned factories, etc. (wastes/valuable resources).
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Environmental data / indicator calculation method / criteria
Calculation method / criteria

Supply chain CO2emissions

CO2 emissions
Scope 3103t‐CO2

Projected CO2 emissions
at the building use stage
and reduction rate
Calculated value
based on 1990
level

103t‐CO2

Projected CO2
emissions103t‐CO2

Projected CO2
reduction rate%

Emissions byfloor area

kg‐CO2/year‐
m2

Aggregation criteria
Aggregated in conformance with the basic guidelines for calculation of greenhouse gas emissions throughout the supply
chain, the GHG Protocol, etc., and based on in‐house regulations relating to environmental data management and theTaisei Group environmental data aggregation manual.
CO2 emission factor
Calculated using the emission factor in the basic guidelines for calculation of greenhouse gas emissions throughout the
supply chain (LCI database IDEAv2 (for calculation of supply chain greenhouse gas emissions)).
Category 1: Purchased products/services
CO2 emissions are calculated by multiplying the purchase quantities of each of the major construction materials (ready‐mixed concrete, cement, aggregate, and steel) by the factor. Then, using the “Appendix 1.4.7 CO2 emissions per unit
price of construction based on the 2005 Construction Sector Input‐Output Table for Analysis ((iii) For Overseas
spillover and consumption expenditures)” of the Architectural Institute of Japan “Building LCA Guidelines” “LCA
Database Ver. 1.02,” emissions of all items are calculated from the CO2 emissions of the major construction materials.
Category 11: Use of sold products
Calculated by multiplying the total floor area of the completed building by the emission factor (calculation for each use
from past 3 year’s performance) and the service life (Comprehensive Assessment System for Building Environmental
Efficiency (CASBEE) assessment manual).

Calculation method / criteria

Of the buildings constructed by Taisei Corporation, emissions for the 1.2 million m2 from 50 projects with a total floorarea of 300 m2 or greater were calculated using the Energy Saving Plan for each project at the design stage.
・Energy Saving Plan: Compilation of the steps to be taken to reduce energy usage by thermal insulation and high‐efficiency air conditioning equipment, etc. in accordance with the Act on the Rational Use of Energy, etc. Must be
submitted at the design stage for buildings with a total floor area of 300 m2 or greater.

Emissions and recycle rate
for Construction by-product Calculation method / criteria
by type
Construction by‐
product

103t

Recycle rate%

Construction by‐product from independent construction work and joint venture construction in which
Taisei is the representative, and construction by‐products generated at owned factories, etc.
(wastes/valuable resources).

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Environmental data / indicator calculation method / criteriaGroup Companies
INPUT

Calculation method/criteria

Fossil fuel use

103kL

Electricity use

106kWhCity gas

103m3

LPG

t

Aggregation criteria
Aggregated in conformance with the Act on Rationalizing Energy Use and Shifting to Non‐fossil Energy, Act on
Promotion of Global Warming Countermeasures, GHG Protocol, and the Japan Federation of Construction Contractors
guidelines, etc., and based on in‐house regulations relating to environmental data management, the Taisei Groupenvironmental data aggregation manual, and the manuals of each Group company.
Calculation of use
・Offices and Factories: Annual purchase quantity and usage are aggregated for each month・Construction site(Civil Engineering and Building worksites): Aggregated based on the Taisei Group environmental data
aggregation manual and the manuals of each Group company*Energy‐related: Major fossil fuels (heavy oil, light oil, kerosene, gasoline), electricity, city gas, GTL, LPG, and LNG
consumption and their energy‐equivalent values*The total of energy usage is the value of fossil fuel usage + electricity usage + city gas usage + LPG usage + LNG usage
converted into joules.

OUTPUT

Calculation method/criteria

CO2 emissions

103t‐CO2

Aggregation criteria
Aggregated in conformance with the Act on Rationalizing Energy Use and Shifting to Non‐fossil Energy, Act on
Promotion of Global Warming Countermeasures, GHG Protocol, and the Japan Federation of Construction Contractors
guidelines, etc., and based on in‐house regulations relating to environmental data management and the Taisei Groupenvironmental data aggregation manual.
CO2 emission factor
Light oil, heavy oil, etc.: Calculated using the emissions coefficients in the Act on Rationalizing Energy Use and Shifting toNon‐fossil Energy and Act on Promotion of Global Warming Countermeasures.
GTL︓ Calculated using the 2.36 kg‐CO2/l computed by Shell Global Solutions.
Power: Calculated using 0.436 t‐CO2/MWh, the 2021 post‐adjustment emissions factor from the receiving end in the
figures announced by the Japan Business Federation. For certain worksites, offices, and factories, calculated using thepost‐adjustment emission factor for the FY 2021 results for each electric power company.
City gas: Calculated using the standard calorific value of city gas suppliers and the emission factor in the Act on
Promotion of Global Warming Countermeasures.

Construction by‐
product

103t

Supply chain CO2emissions

CO2 emissions
Scope 3

Construction by‐product from independent construction work, joint venture construction in which Taisei is therepresentative, and construction wastes generated at owned factories.

Calculation method / criteria

103t‐CO2

Aggregation criteria
Aggregated in conformance with the basic guidelines for calculation of greenhouse gas emissions throughout the supply
chain, the GHG Protocol, etc., and based on in‐house regulations relating to environmental data management and theTaisei Group environmental data aggregation manual.
CO2 emissions factor
Calculated using the emissions factor in the basic guidelines for calculation of greenhouse gas emissions throughout the
supply chain (LCI database IDEAv2 (for calculation of supply chain greenhouse gas emissions)).

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15

Third-Party Verification

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16

Information Disclosure Based on TCFD
Recommendations

Information Disclosure Based on TCFD Recommendations
Strategies

Risks / Opportunities

Environmental Policy

Climate Change Measures

GovernanceRisk Management

Indicators and Targets

Information Disclosure Based on TCFD
Recommendations
The safety and security of our daily lives are being threatened by climate change and the resulting increase in the frequency
and severity of natural disasters. These change brought produced a major movement toward decarbonization that beganwith the Kyoto Protocol and continued with the adoption of the U.N. Sustainable Development Goals (SDGs) and the Paris
Agreement. This movement has had a major impact on policies in Japan and other countries around the world, and also
increased expectations for the role that companies should play in this effort.
The Taisei Group regards the impact of climate change on its business as a crucial management issue. In July 2020, weendorsed the TCFD recommendations, and since May 2021 we have been disclosing information in accordance with therecommendations. In response to the partial revision of the Annex to the TCFD Recommendations in October 2021, we
identified risks and opportunities under the 1.5°C scenario and conducted a study of the climate-related indicators related to
the recommendations, and partially updated our disclosed information.

Environmental Policy
Taisei's Environmental Policy was revised in March 2023 to clearly state in "Fundamental Concept"
achievement of the Group's long-term environmental targets as its responsibility, and contribution to the realization of adecarbonized society, a recycling-oriented society, and a nature-co-existing society through its business activities.

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Environmental Policy (excerpted)

1

Fundamental Concept
Based on the Taisei Group Philosophy “To create a vibrant environment for all members of society” and ourFundamental Policy on Sustainable Development, the Taisei Group strives to build good quality social capitalthrough corporate activities centered on construction business in harmony with nature.
As the Group having construction as its core business, we aim for the “Realization of a Sustainable andEnvironmentally Friendly Society” by recognizing environmental issues as our significant sustainability tasks andfully understanding the impacts of our business activities on the environment, and environmental impacts on ourbusiness activities. It is our mission to achieve our Group’s long-term environmental targets in compliance withenvironment-related laws and regulations.
In addition, we will identify the “Environment-Related Risks and Opportunities” including climate change inparticular, develop and promote environment-related technologies and services, and contribute to the realizationof a decarbonized, recycling-oriented, and nature co-existing society through our business activities.

2

Group’s Long-Term Environmental Targets
The Taisei Group established a long-term environmental target (TAISEI Green Target 2050) to achieve the“Realization of a Sustainable and Environmentally Friendly Society” as outlined in the Fundamental Concept
above. We will work with the whole supply chain, together with the stakeholders to achieve these environmental
targets by defining our “Responsibilities”, “Contributions Through Our Business”, and “Achievements” to confront
the three types of societies as “Decarbonized Society”, “Recycling-Oriented Society”, and “Nature Co-ExistingSociety”, and to address the two individual issues as “Forest Resources/Forest Environment” and “Water
Resources/Water Environment”.

3

Continuous Implementation of Environmental Due Diligence
Toward the “Realization of a Sustainable and Environmentally Friendly Society” as outlined in the Fundamental
Concept above, we will establish and continuously implement environmental due diligence system following theinternational standards such as the “OECD Due Diligence Guidance for Responsible Business Conduct”.
Throughout its operation, the measures are reviewed and improved as appropriate.
We make efforts to conduct dialogues and consultations with our stakeholders as appropriate, by utilizing theexpertise of external professional institutions regarding the impact of our business activities on environment.

Group's Long-Term Environmental Target: TAISEI Green Target 2050
The Three Types of Society

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FY2030
CO2emissions (compared to FY2019)
DecarbonizedSociety

FY2050
CN: Achieving and deepening carbon
neutrality

Emissions

Scope 1+2: ▲50%

per sales

Scope 3: ▲32%

Scope 1+2: zero CO2 emissions
Scope 3: zero CO2 emissions of the supply

Total

Scope 1+2: ▲40%

emissions

Scope 3: ▲20%chain

CE: Achieving and deepening Circular
Recycling
Oriented Society

EconomyReduction of final disposal rate ofGreen procurement rate: 100%

construction waste:

Final disposal rate of construction by-

3.0% or lessproducts: 0%

NP: Achieving and deepening Nature Positive
Nature Co-existingSociety

To minimize negative impact of construction
Proposals that contribute to Naturebusiness

Positive, implementation of products

To maximize positive impact of business inharmony with nature

The Two Individual Issues
TargetForest Resources& Forest
Environment

To minimize negative impact on forest resources and forest environment through woodprocurement based on zero deforestation concept
To maximize positive impact on forest resources and forest environment throughconservation and restoration efforts

Water Resources& Water
Environment

To minimize negative impact on water resources and water environment by ensuring
proper management and reducing Water use
To maximize positive impact on water resources and water environment throughconservation and restoration efforts

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Environmental Social Governance Report 2023

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Governance
Organization
A Sustainability Committee and an Sustainability Promotion Committee have been established as an organization to debate
issues relating to climate change.
At the Sustainability Committee, which is a committee of the Board, important policies and measures relating to all aspectsof environment, society and governance (ESG) are deliberated. At the Sustainability Promotion Committee, which is anadvisory body to the Management Committee, basic policy and medium- to long-term targets relating to environmental
management are deliberated.
To incorporate a variety of perspectives, the Sustainability Committee is consisted of six directors including the President (ofwhich two are External Members of the Board) Matters are discussed within this committee, after which they are deliberated
and resolved at the Board.
Matters deliberated and resolved at the Board of Directors meeting are notified to individual business divisions within Taisei
Corporation as well as Group companies, and are reflected in their management plans and business operations. The
resolution is also reflected in a specific implementation agenda at construction work offices, and the cooperation of
subcontractors and suppliers is also requested.

Organizational Chart of Climate-Related Governance

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Executive Officer for Climate-Related Issues
To clarify where the responsibility for promoting sustainability management including climate-related issues lies, a Chief
Sustainability Officer (CSO) position, the highest executive officer in charge of sustainability issues, was created under the
President, and the CSO was appointed the head of the Sustainability Division (Integrated). The CSO is responsible forpromoting sustainability management in business execution, including activities on climate-related issues that have been
decided by the Board. The CSO also serves as the Vice Chairperson of the Sustainability Promotion Committee.

Recent Major Environment-Related Discussions at the Board-2021 February: Revision of Long-term Environmental Targets-2022 February: Formulation of Group Environmental Targets
August: Publication of "Taisei Group Annual Report 2022"-February 2023: Revision of Environmental Policy, etc.

Strategies
There are thought to be two types of risks and opportunities associated with climate change. One is the result of "transitions"that include market changes and the tightening of regulations to minimize temperature rise. The other is the result of"physical changes" such as acute abnormal weather occurring due to temperature rise.
To devise business strategies that can deal flexibly with climate change, multiple scenarios are used to identify risks andopportunities and evaluate the impact on business, and then business strategies are formulated and reflected in theMedium-Term Business Plan and the like.

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Main Reference Scenarios
International Energy Agency (IEA)
Transition Scenarios

World Energy Outlook sustainable development scenario (SDS)… 2°C scenario“Net Zero by 2050 (NZE)”… 1.5°C scenario

Physical Changes

Intergovernmental Panel on Climate Change (IPCC)“Representative Concentration Pathway scenario (RCP8.5)” ... 4°C scenario

Risks / Opportunities

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Classification

Risk/Opportunity

Description

Impactlevel

Decrease in private construction
investment and equipment investment
Market shrinkage

due to the introduction of carbon

and increase

pricing and the reinforcement of CO2
emission regulations

in construction

MediumIncrease in construction costs due to a

cost due to theRiskintroduction of

hike in the prices of building materials
and electricity

carbon pricing
and tightened CO2

Increase in costs due to theemission

application of carbon pricing to theregulations

CO2 that is generated by our businessTransit・onLow

activities

Increase in demand for renewal to

Increase indemand for

Opportunity

improve energy efficiency of existing

Mediumfacilities

renewalIncrease in demand related to ZEB

Increase inand smart cities

demand related toenergy-saving andOpportunity

Expansion of demand for renewable

renewableenergy-related works such as offshore

energywind power

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Classification

Risk/Opportunity

Description

Impactlevel

Decline in productivity due to anincrease in damage to the health (heatstroke, etc.) of skilled construction
workers and the avoidance ofIncrease in

extremely hot hours

averagetemperature during

Risk

Accelerated worker shortage due toMediumthe decline in the number of newsummerworkers in the construction industry
because of the degraded working
environment

Work suspension, process delay, andRise in severity
andfrequency of

increase in labor and temporary work

Risk

costs due to damage to construction

Mediumworksites, etc.

natural disasters

Increase in procurement costs andPhysicalprocess delays due to damage to

Risk

High

suppliers

Increase in demand to improve theIncrease in
severity andresilience of equipment andOpportunity

frequency ofinfrastructure against intensified

High

disasters

natural disasters
Increase in new construction andrelocation works due to growing

Opportunity

demand for relocation from disasterHighhazard areas

Increase in the capital investment for
improved resilience in areas with a

Sea level rise

Opportunity

flood risk and demand for relocationHighfrom areas with a flood risk

Note: Expected impacts on business were categorized into “High,” “Medium” or “Low.”

Climate Change Measures

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178

Measures have been planned to reduce the risks and expand the opportunities accompanying climate change that havebeen identified through scenario analysis. These measures are reflected in the TAISEI VISION 2030 and the Medium-TermBusiness Plan (2021–2023).
A roadmap for achieving decarbonization and sustainable growth has also been formulated in order to realise the TAISEIGreen Target 2050 which constitutes the Group's long-term environmental targets.

Measures to deal with climate change
Possession of renewable energy power sources for the
purpose of covering the Group’s electricity consumption
Response to the market shrinkage andconstruction cost increase due to theintroduction of carbon pricing and the tighteningof laws and regulations

Examination and introduction of fuel improvement
measures (biodiesel fuel/fuel additives) at construction
worksites
Enhancement of green procurement such as
development and utilization of carbon-recycle concrete

Establishment of an organization dedicated to renewal,
and expansion of the organization that handles work
related to wind power generation
Response to the increase in demand related torenewal, energy-saving and renewable energy

Development and commercialization of next-generation
high-performance ZEB and the development of energy
support services
Technological development that contributes to theindustries that are expected to grow through a virtuous
cycle of the economy and the environment

Reduction of health damage through the nationwide
promotion of wellness worksites and the improvement ofworking environment during extremely hot hours
Response to the reduced productivity ofConsolidate some of the operations of worksites into

construction worksites due to abnormal weather

specialized organizations such as digital product centers
Reform the production process at worksites bydeveloping and deploying unmanned construction
technology, robot construction technology, etc.

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Advancement of infrastructure development technology
for national resilience and the improvement of the
proposing skills
Response to abnormal weather, increase in theseverity and frequency of disasters and sea level
rises

Development of real-time flood risk prediction/simulation
for heavy rain, etc.
Securing a business continuity system by building a BCP
system with clients and suppliers and conducting regulartraining

Environment-Related Research and Development Investment
Demand for ZEB buildings is expected to increase in preparation for the achievement of the Japanese government's targetof "ensuring energy performance that meets the ZEB standard for newly constructed buildings in 2030". Moreover, demandfor environmentally friendly concrete, wooden architecture and other low-carbon and decarbonized construction materials is
also expected to increase.
As the market is expected to increase, TAISEI will proactively invest in research and development to secure a market aheadof competing general construction contractors and construction material manufacturers in terms of tschnology development.

Financial Impact
As noted in the Medium-Term Business Plan (2021–2023), we plan to invest JPY 60 billion in environment-related efforts
over a period of three years, of which JPY 42 billion is for technology development that contributes to industrial fields where
growth is expected through a virtuous cycle between the economy and the environment, and with a competitive advantage.
Approximately JPY 23 billion had been executed as of September 2022.
In addition, we raised funds through green bonds and sustainability-linked loans that comply with the green financing
framework, and are allocated to investment capital.

Internal Carbon Pricing (ICP)

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In 2021, TAISEI introduced the Internal Carbon Pricing system with the expectation of the following three effects. Based onthe "Net Zero by 2050 (NZE)" of the International Energy Agency (IEA) etc. the ICP price is currently set at JPY 8,000, andis to gradually increase until 2050.

Expected Effects

1

Visualize the results and effects of investment and measures that contribute to decarbonization, by converting CO2
emission reductions into monetary values through the introduction of ICP.

2

By using the ICP system as an incentive for action that contributes to decarbonization and as a guide for investment
decisions, capital investment and technology development that contribute to decarbonization and activities that reduce
environmental burden will be promoted, and thus activities toward the achievement of carbon neutrality will be
accelerated.

3

Recognize the potential impact of carbon pricing and prepare for the introduction of a carbon tax, etc.

Risk Management
Based on our Risk Management Policy and the basic regulations for risk management, TAISEI established an overallsystematized risk management system under the supervision of the Board. We set up an appropriate management systemthat also addresses major ESG-related risks such as quality, compliance, information, safety and the environment.

Group-Wide Risk Management

Promotion of Group-wide risk management
Taisei has established a risk management system with the President as chief executive and the general manager of theBusiness Administration Div. as Chief Risk Management Officer (CRO), and works to ensure ongoing operation of the risk
management system to appropriately determine and manage risks relating to business operations. Every year, based on therisks that materialized in that fiscal year, the risk management content for the following fiscal year is reviewed, and the plando-check-act (PDCA) cycle is operated and the effectiveness of the risk management organization is verified.

Company-Wide Risk Management System

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Business Risks
Risks that may have a significant impact on company operations are reported to the Management Committee and theBoard, and the response policy with respect to those risks is studied and determined in a comprehensive manner andreported in "Business Risks" in the Annual Securities Report.

Risk Associated with Climate Change
One of the "Business Risks" is "Risks Associated with Climate Change." The Taisei Group identifies and assesses risk that
corresponds to the TCFD Recommendations. A company-wide, cross-sectoral TCFD Working Group (TCFD WG) has been
established to identify climate change risks pertaining to the operations of each division and analyze the degree of impact on
operations, and to conduct a comparative assessment with risks other than climate change risks and confirm that thenecessary countermeasures have been devised. Risks analyzed by the TCFD WG are discussed in the Sustainability
Committee and reported to the Board.
These risks are consistent with the risks identified and assessed in the Environmental Management System (EMS) basedon the ISO 14001 international standard.

Indicators and Targets

CO2 Emissions Reduction Targets (as compared to FY 2019)(Intensity: t-CO2 / 100 million yen ｜ Total emissions: 1000 t-CO2)

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Base
year

Results

TargetFY
FY 2019

2023

FY
2021

KPI

Scope 1+2

Emissions intensity
Reduction rate

21.3

FY 2030

FY 2050

TAISEI Green Target
2050

22.0

18.2

10.7

+3.3%

-15%

-50%
0

Scope 1+2

Scope 3Category
1+11

Total emissions

368

Reduction rate

Emissions intensity
Reduction rate

288.8

325

346

218

-11.8%

-6%

-40%

285.8

—

-1.0%

196.6
-32%
0

Scope 3Category
1+11

Total emissions
Reduction rate

4,988

4,218

—

-15.4%

3,990-20%

CO2 Emissions for Taisei Group in FY 2021
More than 90% of Taisei Group CO2 emissions are Scope 3.
Within Scope 3, the majority of emissions are Category 1 and Category 11.
Category 1: CO2 emitted during the manufacture of steel materials such as steel frames and steel reinforced bars,
cement, and concrete

Category 11 : Calculated by multiplying the annual estimated CO2 emissions by the service life of the buildings delivered
during that year.
As the service life varies between 30 and 60 years depending on building use, the result becomes anextremely large figure.
(Unit: 1,000 t-CO2)
Emissions

Ratio

Scope 1245

4.9％

Scope 279

1.6％

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183

Emissions
Scope 3
Total

Ratio
4,632

93.5%

4,956

100％

Of Scope 3, Category 1 and Category 11
Emissions

Ratio

Category 1

1,529

30.9％

Category 11

2,689

54.3％

4,218

85.2％

Total

Copyright TAISEI CORPORATION All Rights Reserved.

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184

Social(S)

Human Rights

Respect for Human Rights
Policies and Basic Approach

Labor Practices

Consumer Issues

Realization of an Attractive

Ensuring Quality and Improving

Working Environment That Is
Good to Work in

Technology
Policies and Basic Approach

Goals and Targets

Policies and Basic Approach

Initiatives

Goals and Targets

Sustainability Governance andOversight

Sustainability Governance andOversight

Activities / Efforts

Activities / Efforts

Goals and Targets
Initiatives
Sustainability Governance andOversight
Activities / Efforts
Data

Data
Data

Human Rights Due Diligence
Maintain a commitment tomeet the responsibility torespect human rights (Guiding
Principle 16)

Human Resource Development
Policies and Basic Approach
Sustainability Governance andOversight

Technical Development forRealizing a Sustainable Society
Policies and Basic Approach
Goals and Targets

Identify and assess adverse
impacts on human rights(Guiding Principle 18)
Prevent and mitigate adverse
impacts (Guiding Principle 19)
Assess the effectiveness ofactivities (Guiding Principle 20)

Activities / Efforts
Initiatives
Data
Health Management
Policies and Basic Approach

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Sustainability Governance andOversight
Activities / Efforts

185

Provide explanation andSustainability Governance anddisclose information (Guiding
Principle 21)

Oversight

Data

Activities / Efforts
Remediation (Guiding
Principle 22)
Dialogue with Stakeholders

Data
Thorough Management ofOccupational Health and Safety

Diversity, Equity, and Inclusion
Policies and Basic Approach
Policies and Basic Approach
Goals and Targets
Goals and Targets
Initiatives
Initiatives
Sustainability Governance andOversight

Sustainability Governance andOversight
Activities / Efforts

Activities / Efforts
Data
Data
Cultivation of Technical Staffand Securing of Human
Resources
Policies and Basic Approach
Goals and Targets
Initiatives
Sustainability Governance andOversight
Activities / Efforts
Data

Fair Operating Practices

Promotion of Supply Chain
Management

Community Involvement andDevelopment

Contribution to Local
Communities

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Policies and Basic Approach

Policies and Basic Approach

Goals and Targets

Sustainability Governance andOversight

Sustainability Governance andOversight

Activities / Efforts

Activities / Efforts
Data

Copyright TAISEI CORPORATION All Rights Reserved.

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187

Respect for Human Rights

Policies and Basic Approach

Goals and Targets

Sustainability Governance and Oversight

Initiatives

Activities / Efforts

Data

Respect for Human Rights
Policies and Basic Approach
In accordance with the Taisei Group Philosophy "To Create a Vibrant Environment for All Members of Society" ,the Action
Guidelines for Taisei Personnel and the Taisei Group as a Whole states that all Group employees shall conduct businessactivities with respect for human rights.
In April 2022, based on a resolution of the Board, the Human Rights Policy that had been enacted in 2015 was revised toincorporate the clear commitment of the Taisei Group to fulfill the responsibility to respect human rights both within andoutside the Taisei Group. The basic position of the Taisei Group as regards respect for human rights is to voluntarily,
positively and proactively exercise its responsibilities as a corporate citizen to ensure that its business activities do not
adversely impact human rights, and to contribute to the achievement of an inclusive society.
The Human Rights Policy emphasizes respect for the fundamental human rights and diversity of individuals, and prohibits
any act that infringes on human rights, such as discrimination, harassment, and invasion of privacy on the grounds of race,
nationality, religion, sex, sexual orientation and gender identity, age, social status, presence of disability, injury or illness
and/or physical characteristics, etc. Based on the U.N.'s Guiding Principles on Business and Human Rights, Taisei observes
laws and regulations, etc. related to human rights in countries and regions in which it conducts business activities. In
addition, we support and respect international human rights standards such as the International Bill of Human Rights, which
includes the Universal Declaration of Human Rights. In the event of a discrepancy between international human rights
standards and national and regional laws and regulations, etc., Taisei seeks a method that achieves maximum respect forEnvironmental Social Governance Report 2023

188

internationally recognized human rights. Our Group policy and basic perspective towards respecting human rights aredisclosed on our website and communicated clearly through training and e-learning for employees; training and emails
requesting self-assessments at the start of transactions for business partners; and media such as integrated reports forcustomers, shareholders, and investors. We thus request support for these policies and respect for human rights.
The Taisei Group will work together with various parties, including our business partners, to promote respect for humanrights for all stakeholders involved in the Group's business activities.

Risks and Opportunities
The basis of business activities in the construction industry is a multitiered supply chain that extends throughout the country
and the world, and is made up of skilled workers in many different fields, and companies that procure, process and transport
raw materials and so on. To the Taisei Group, respect and consideration for the human rights of every person and entity
throughout the entire supply chain that includes employees, skilled workers and local communities is a serious matter.
Efforts to protect human rights at companies have grown more and more important in recent years. Taisei recognizes theneed for efforts to protect human rights, both within the company and throughout the supply chain, and is promoting efforts
to this end.

Policies/Commitments
Action Guidelines for Taisei Personal: Cultivating an open corporate culture/Securing a pleasant working environment /Respect for fundamental human rights and diversity
Human Rights Policy
Human Resources Development Policy (Diversity & Inclusion Policy)
Medium-Term Business Plan: To promote the measures that emphasize an attractive working environment, as well as
diversity and inclusion

Refer to:Action Guidelines for Taisei Personnel and the Taisei Group as a Whole

Human Rights Policy

Human Resources Development Policy (Diversity & Inclusion Policy)
Medium-Term Business Plan

Multi-Stakeholder Policy

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Support for Human Rights in the UN Global Compact
In April 2018, the Taisei Group announced its support for the UN Global Compact and its two principles relating to humanrights.
We also support and respect international standards relating to human rights such as the UN Guiding Principles for
Business and Human Rights (UNGPs), the Children's Rights and Business Principles, the International Bill of Human Rightsthat includes the Universal Declaration of Human Rights, and the ILO Declaration on Fundamental Principles and Rights at
Work of the International Labour Organization (ILO).

The Principles of the UN Global Compact
Human Rights

Principle 1: Businesses should support and respect the protection of internationally proclaimed
human rights; andPrinciple 2: make sure that they are not complicit in human rights abuses.

LabourPrinciple 3: Businesses should uphold the freedom of association and the effective recognitionof the right to collective bargaining;
Principle 4: the elimination of all forms of forced and compulsory labour.
Principle 5: the effective abolition of child labour; andPrinciple 6: the elimination of discrimination in respect of employment and occupation.

Environment

Principle 7: Businesses should support a precautionary approach to environmental challenges.;
Principle 8: undertake initiatives to promote greater environmental responsibility; andPrinciple 9: encourage the development and diffusion of environmentally friendly technologies.

Anti-

Principle 10: Businesses should work against corruption in all its forms, including extortion and

Corruption

bribery.

Goals and Targets
Goals and Targets
We will contribute to the realization of an inclusive society by voluntarily, positively and proactively fulfilling our corporate
responsibilities so as not to cause any adverse impact on human rights in connection with our business activities.

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KPIs
Supplier’s conformity rates with the Taisei Group Sustainable Procurement Standards

Refer to:Promotion of Supply Chain Management

Materiality and KPIs

Initiatives
United Nations Global Compact,“Human Rights,” “Labor,”“Environment,” and “Anti-Corruption”
My Declaration of Human Rights (Ministry of Justice)
ISO26000
HRDD Sub-Committee (GCNJ)
Supply Chain Sub-Committee(GCNJ)

Refer to:Participation in Initiatives

Sustainability Governance and Oversight
Promotion System of Human Rights Initiatives
Taisei Corporation regards human rights to be a key sustainability issue, and cooperation between the Compliance
Committee, the Personnel Committee, and other committees under the supervision of the Sustainability Committee within
the Board is implemented to promote various initiatives on respect for human rights.
With regard to everyday respect for human rights and preventing / mitigating adverse impacts on human rights, the Chief of
the Sustainability Division (integrated), (who is also the Chief Sustainability Officer (CSO)) is responsible for theEnvironmental Social Governance Report 2023

191

Sustainability Management Promotion Division, which works with other departments, the Human Rights AwarenessPromotion Committee, and the Sustainable Procurement Committee to make efforts toward human rights due diligence andawareness in order to improve and enhance respect for human rights.

Organization

Description of Activities

Sustainability Committee

This committee oversees efforts for human rights due diligence and for(Committee within Board)

respecting human rights. Important matters relating to human rights are
discussed in advance, first at a Management Committee and then at a
meeting of the Sustainability Committee, after which they are referred andreported to the Board. The Sustainability Committee revises and abolishes,
works to ensure thorough familiarization of, and determines the status ofcompliance with the Action Guidelines for Taisei Personnel and the TaiseiGroup as a Whole and also revises the Human Rights Policy and confirms thestatus of operation of the Corporate Ethics Helpline that has been discussed
by the Compliance Committee.

Compliance Committee

The Compliance Committee is headed by an outside expert (lawyer) and has(Special Committee)

been set up as a Special Committee that answers to an advisor to thepresident. The committee deliberates the thoroughness of compliance andworks to prevent human rights violations such as preventing harassment anddiscrimination.

Personnel Committee

The Personnel Committee drafts a variety of personnel measures, monitors(Business Committee)

implementation status and deliberates follow-up procedures. Depending on
the content, issues are referred to Management Committee and the Board .
The Committee also discusses the status of compliance with the Human
Resources Development Policy (Diversity & Inclusion Policy) and the results ofthe engagement survey, as well as matters relating to the human rights of
employees, and works to promote respect for human rights.

Human Rights Awareness

The Human Rights Awareness Promotion Committee, chaired by the Chief

Promotion Committee

Sustainability Officer (CSO) and made up of promotion committee members at
the head office divisions and all branches, discusses basic policy, measuresetc. relating to human rights issues, and then formulates human rights training
and other human rights education activities and promotes ongoing activities toimprove awareness of human rights.

Sustainable Procurement

The Sustainable Procurement Committee is made up of the managers ofCommittee

departments involved in procurement (civil engineering, building construction,
procurement and safety) and personnel from the Sustainability Planning
Department. It revises the Taisei Group of Companies Sustainable
Procurement Guidelines and conducts studies relating to the sustainableprocurement opinion survey and so on.

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Taisei Corporation Human Rights Awareness Promotion Committee
In 1984, Taisei established the Taisei Corporation Human Rights Awareness Promotion Committee, made up of promotion
members at the head office and all branch offices, for the purpose of supporting excellent character-building for employees
and nurturing employees who are very aware of the importance of human rights. Each year, the Committee discusses
policies and measures relating to human rights issues, formulates activity plans, and reviews human rights awarenesspromotion activities, in order to promote human rights awareness activities throughout the company and in individual
departments. Moreover, once each year, in coordination with the annual committee meeting, a training session by outside
specialists is held in an effort to increase awareness of the importance of human rights.
Frequency: Twice a year

Head Office Committee Members
Chairperson : Chief of Sustainability Division (Integrated)
DeputyChairperson : Chief of Sustainability Management Promotion Division
DeputyChairperson : Manager of Human Resources Department of Business Administration Division
Committee: Managers of Administration Department of each division (16 department)

Secretariat: Chief Manager of Planning Section. Sustainability Planning Department

Branch Office (domestic/overseas) Committee Members
Chairperson : Manager of Administration Department
Members: Managers of individual department

Organizers: Managers of General Affairs Section and Administration Section

Contacts for Consultations regarding Human Rights Violations and Relief
Taisei has set up a variety of contacts to handle consultations regarding human rights infringements from all stakeholders
both within and outside the company. In the event that the Taisei Group has been determined to be the cause of, or acontributing factor to, an adverse impact on human rights, we will take prompt action using appropriate means to provide
relief and implement corrective action in accordance with our Human Rights Policy.

Refer to:Contacts for Consultations

ReliefEnvironmental Social Governance Report 2023

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Activities / Efforts
Human Rights Impact Assessment, Prevention, and Mitigation
Adverse impacts on human rights that the Group's business activities have or may have on various stakeholders are
extracted as a facet of human rights due diligence according to the Human Rights Policy. We quantitatively analyze andassess these effects, and we identify key human rights issues for each stakeholder to be addressed in our efforts to preventand mitigate Adverse impacts.
Furthermore, the significance of how a lack of efforts made toward human rights issues will impact the Group is evaluatedthrough company-wide risk management. With this, "risks related to human rights" and "risk associated with the working
environment" are raised as key company-wide risks, and measures are implemented according to the company-wide risk
management system for preventing and mitigating such risks.
For example, measures such as e-learning for all officers and employees, training for executives, appropriate allocation of
personnel, and promotion of supervisor and subordinate communication are being implemented as priority measures toaddress "long working hours" and "discrimination/harassment," which have been identified as human rights issues for
employees.

Human Rights Education Activities
In accordance with the Taisei Group Philosophy "To Create a Vibrant Environment for All Members of Society" and "Respect
for fundamental human rights and diversity" in the Action Guidelines for Taisei Personnel and the Taisei Group as a Whole,
Taisei conducts ongoing activities to foster a corporate culture of respect for human rights, and to continue to improveawareness of human rights throughout the entire Taisei Group.
In April 2022, the Human Rights Policy that was enacted in 2015 was revised to incorporate the clear commitment of theTaisei Group to fulfill the responsibility to respect human rights both within and outside the company. As a specific activity inthis regard, a Human Rights Due Diligence mechanism was established and is being implemented.
Moreover, Taisei has posted its Human Rights Policy on its website to make its policy clear to all stakeholders, and has also
issued the Taisei Group of Companies Sustainable Procurement Guidelines that require respect for human rights in all
business activities.
Taisei has prepared the Taisei Sustainability Handbook, a training manual that explains activities relating to sustainability
issues that include the Human Rights Policy, human rights due diligence and other matters concerning respect for humanrights. This handbook is issued to every employee at Taisei Corporation and the Taisei Group companies to ensure athorough understanding of the Human Rights Policy. Briefings are also held at individual departments to ensure
understanding.
Furthermore, to ensure that each employee has a deep understanding of the Human Rights Policy and is able to conductbusiness activities with respect for human rights, online training sessions are conducted each year for all employees, andEnvironmental Social Governance Report 2023

194human rights training is incorporated into the educational programs for employees at each level and within each department.
Group training is conducted for a variety of topics including international human rights issues, the Burakumin issue, persons
with disabilities, LGBTQ issues, harassment and so on.
In addition, we conduct various types of training for employees about the importance of respecting human rights. Employees
who are the consultation contact for human rights violations established in each department receive online training byspecialists. In addition, employees at the managerial level and above view training videos designed to prevent power
harassment and bullying and receive training in how to respond to incidents, and participate in the Human Rights AwarenessSupervisor Training sponsored by the Industrial Federation for Human Rights, Tokyo and held for newly appointed membersof the Human Rights Awareness Promotion Committee.
We also conduct ongoing activities to promote awareness of human rights, including publishing and distributing to all
employees a “Human Rights Handbook” about the importance of respecting human rights and a handbook for supporting
persons with disabilities (Happy Communication Guidebook), as well as soliciting essays and slogans on human rights eachyear and awarding prizes for outstanding contributions.

Fiscal Year
FY 2022

Activities
Revision of Human Rights Policy
Revision of Taisei Group of Companies Sustainable Procurement Guidelines
Preparation of Taisei Sustainability Handbook that takes into account the
Human Rights Policy and human rights activities of the Taisei Group, anddistribution to all Taisei and Group company employees (25,000 copies). In
addition, holding of explanatory briefings to ensure a thorough understandingof the Human Rights Policy and the Sustainable Procurement Guidelines.
Dialogue on human rights issues between the Taisei CSO and experts with aknowledge of global human rights issues, and release of an integrated report
Human rights training and compliance training for all executives and regular
employees
Opinion survey type self-assessment for 1,590 primary subcontractors andsuppliers, and interviews with 20 subcontractors and suppliers
Training workshops and online learning for subcontractors and suppliers
Opinion survey of owners of 251 companies that have accepted foreigntechnical interns and interviews at individual companies
Interviews with foreign technical interns
Interviews with foreign suppliers

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Fiscal Year
FY 2021

Activities
Identification of high risk sectors for human rights in the supply chain andreview by outside experts, based on result of opinion survey of suppliers
conducted during the previous fiscal year and international guidance relating
to human rights
Disclosure on website of mechanism for Human Rights Due Diligence andidentified human rights risks
Human rights training and compliance training for all executives and regular
employees, in addition to CSR (now "Sustainable") Procurement training

FY 2020

Opinion survey of 1,116 primary suppliers and site visit survey of 12 suppliercompanies to confirm that there are no human rights issues
Human rights training and compliance training for all executives and regular
employees, in addition to CSR (now "Sustainable") Procurement training

Human Rights Due Diligence
To fulfill its responsibility to respect human rights and prevent or mitigate adverse impacts on human rights resulting from its
business activities, the Taisei Group has established the framework for Human Rights Due Diligence that it operates in an
ongoing manner, in accordance with the United Nations "Guiding Principles on Business and Human Rights” and theJapanese government's "Guidelines for Respecting Human Rights in Responsible Supply Chains," etc.

Refer to:Human Rights Due Diligence

Participation in the Construction and Real Estate Human Rights Due
Diligence Promotion Council
Taisei participates in the Construction and Real Estate Human Rights Due Diligence Promotion Council, which wasestablished by developers and general contractors without regard to industry boundaries. We share the content of ourinitiatives related to human rights due diligence, and we conduct surveys and research on advanced cases to fulfill our
responsibility to respect human rights.

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Stakeholder Engagement with regard to Human Rights Issues
With regard to the impact of its business activities on human rights, the Taisei Group employs the knowledge of outside
specialized institutions and the like and conducts dialogue and discussions with stakeholders as needed to promote
activities to ensure respect for human rights, based on its Human Rights Policy. In FY2022, as part of the activities that
demonstrate its commitment to the Human Rights Policy, Taisei held discussions between its Chief Sustainability Officer(CSO) and outside experts, and disclosed these discussions in an annual report and on its website.
Moreover, with regard to significant human rights issues in the construction industry, the Taisei Group Human Rights Policy
stresses the need to thoroughly eliminate human rights violations involving foreign workers in particular, and Taisei
emphasizes respect for the human rights of foreign workers who are in a vulnerable position. In FY2022, Taisei conductedinterviews with foreign technical interns as well as exchanges of information with the owners of the companies that had
accepted interns.
Furthermore, Taisei visits and audits subcontractors and suppliers as part of its Human Rights Due Diligence activities, inaccordance with the United Nations Guiding Principles on Business and Human Rights, and on these occasions exchangesof views are held with company owners and best practices are shared.
Through these efforts, Taisei strives to determine the adverse impacts of the business activities of the Taisei Group on
human rights, and continuously strives to prevent or reduce these impacts. Taisei also complies with laws and regulations
for the prevention of human trafficking, child labor and forced labor, and those relating to equal work, equal compensation,
immigrant labor and so on, and works to ensure respect for human rights.

Refer to:Human Rights Due Diligence

Human Rights×SDGs Talk

Data

Social Data

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Diversity, Equity, and Inclusion

Policies and Basic Approach

Goals and Targets

Sustainability Governance and Oversight

Initiatives

Activities / Efforts

Data

Diversity, Equity, and Inclusion
Policies and Basic Approach
To fulfill the Taisei Group Philosophy of “to create a vibrant environment for all members of society,” it is essential to firstestablish a work environment where every employee can flourish. In 2006, ahead of other companies, we initiated diversity
promotion measures with an eye towards the challenges of a declining population and the need for new value creation.
Through ongoing evaluation and adaptation of these initiatives, our focus on diversity has evolved into a broader
commitment to diversity, equity, and inclusion, with an enhanced emphasis on “job satisfaction” and “ease of work.”
Moreover, recognizing the male-dominated nature of the construction industry, we are placing special emphasis on
strategies that actively “engage men” in these efforts.

Risks and Opportunities
If efforts to harness the skills and capabilities of diverse personnel—including women, elderly employees, and nonJapanese employees—are inadequate, we risk not being able to secure top talent. Consequently, endeavors to uplift
corporate value, such as through innovation, might stagnate, and our reputation among our stakeholders could diminish.
Conversely, by actively promoting Diversity & Inclusion initiatives to realize an attractive working environment that is good towork in, we aim to attract and retain stellar human capital, boost the engagement levels of our executives and employees,
and invigorate the organization as a whole.

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Policies / Commitments
Action Guidelines for Taisei Personnel and the Taisei Group as a Whole
Multi-Stakeholder Policy
Human Resources Development Policy (Diversity & Inclusion Policy)
Human Rights Policy
Medium-Term Business Plan: To promote the measures that emphasize an attractive working environment, as well as
diversity and inclusion

Refer to:Action Guidelines for Taisei Personnel and the Taisei Group as a Whole

Human Rights Policy

Human Resources Development Policy (Diversity & Inclusion Policy)
Medium-Term Business Plan

Multi-Stakeholder Policy

Goals and Targets
Medium-to Long-Term Goals / KPIs / Performance

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Refer to:
Realization of an Attractive Working Environment That Is Good to Work inMateriality and KPIs

Voluntary action plans on the promotion of women to managerial and board position (Japan Business
Federation)
Action Plan for the Act on the Promotion of Female Workplace (Cabinet Office)"Male Leader Coalition for Empowerment of Women" by the Gender Equality Bureau, Cabinet Office
KPIs Number of female managers

Initiatives
United Nations Global Compact, "Human Rights," "Labor"
The Valuable 500
My Declaration of Human Rights (Ministry of Justice)"Male Leader Coalition for Empowerment of Women" by the Gender Equality Bureau, Cabinet Office
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Voluntary action plans on the promotion of women to managerial and board position (Japan Business Federation)
Challenge to 30% by 2030（#Here We Go 203030）(Japan Business Federation)
Human Capital Management Consortium

Sustainability Governance and Oversight
Promotion System

Chairperson

Chief of Business Administration Division

Organization for

Personnel Committee (Business Committee)
Important matters relating to diversity & inclusion are discussed in advance byconsultation

the Personnel Committee and then discussed at a Management Committee,
after which they are referred and reported to the Board.

PolicyHuman Resources Development Policy (Diversity & Inclusion Policy)

Secretariat

Human Resources Department

Activities / Efforts
Diversity of Human Resources / Diversity of Working Styles

Diversity of Human Resources
Female Employees: Active employment in careers with promotions /Expanding fields of employment/Implementation of career development training.

Senior Personnel: Preparation of reemployment system that provides fulfilling work.

Non-Japanese Employees: Establishment of consultation desks /Creation of handbook for receiving departments.

LGBTQ: Establishment of consultation desks regarding LGBTQ at an external organization

Persons with disabilities: Use of voice transcription tools for corporate contracts

Race: Embedding the Human Rights Policy and providing various education and training

Religion: Embedding the Human Rights Policy and providing various education and training

Diversity of Working Styles
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Working style reform through use of ICT in daily operations
Enhancement of support framework to balance childcare/nursing care and work
Support for male employees' participation in Diversity and Inclusion

Refer to:Human Resources Development Policy (Diversity & Inclusion Policy)

Promotion of Women's Participation and Advancement
Taisei Corporation launched its Positive Action Plan in 2006, and Taisei's early efforts to actively hire women and increase
the number of job categories for women have been widely recognized and were included in METI's Diversity Management
Selection 100 for FY 2015.
To further enhance its initiatives to promote diversity, Taisei has taken initiative to increase awareness, expand opportunities
for advancement, hire and train more women, and establish an employee-friendly work environment as proposed by theJapan Business Federation (Keidanren), as well as an action plan for women's active participation in the workplace (basedon the Act on Promotion of Women's Participation and Advancement in the Workplace).
In March 2021, Taisei announced its support for Keidanren (Japan Business Federation)'s "Challenge to 30% by 2030(#HereWeGo203030)" (with a goal of having 30% of executives be women by 2030). We will strive to ensure diversity,
including gender diversity, within important decision-making bodies, including the Board of Directors.
Moreover, in July 2020 Taisei supported for the Cabinet Office's Declaration on Action by “Male Leaders Coalition for
Empowerment of Women”. As part of this effort, the number of participants in Female Leadership Training, conducted as ameasure to increase female participation, reached 273 and 1,104 employees have participated in the program (as of the endof Octorber 2023). Taisei will continue to provide training for female employees and their superiors and hold Work-Life
Balance Seminars in which employees participate with their partners and so on, as well as making a concerted effort tosupport childcare by male employees.

Refer to:
Challenge to 30% by 2030（#Here We Go 203030）(Japan Business Federation)

Support for the Activities of Employees who are Non-Japanese Nationals

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Taisei hires a diverse workforce through mediums such as its website and corporate presentation meetings for nonJapanese students that widely publicize the company's work styles.
Taisei hires a diverse workforce through mediums such as its website and corporate presentation meetings for foreign
students that widely publicize the company's work styles.In addition to providing foreign national employees with training inJapanese culture and systems, we also conduct training for both foreign national employees and their supervisors to help
them understand values and culture and learn specific communication methods, as well as distributing guidebooks that
impart expertise, as a way of deepening mutual understanding. Also, in addition to the head office, branch offices, and worksites in Japan, Taisei's business has expanded to other countries and regions, mainly in Southeast Asia, where personnel ofvarious nationalities are employed in the work sites, overseas offices and overseas subsidiaries in each country.In addition,
human resource development is implemented through various types of training, while respecting the local customs andculture in each country and region.

*Main Training
Online training in "Ethics, Compliance and Overall Principles of Conduct" and "Corporate Social Responsibility, Sustainability & ESG" for foreign national
employees and locally hired staff at overseas workplaces, overseas offices, and overseas subsidiaries.

Employment of Senior Personnel, Employees Who Have Left the Company
after Childcare or Nursing-care Leave
To enable veteran employees with abundant knowledge and experience to pass on this expertise to the next generation as"life-long employees," Taisei has established a rehiring program for former employees following mandatory retirement, up to
the age of 65. As of the end of March 2023, 882 employees had been rehired in this manner. Taisei also provides
information on individual topics such as post-retirement planning and preparation and so on.
In addition, we launched a rehiring system (Job Return System) in FY2008 to reemploy personnel who have resigned due tounavoidable circumstances, such as the work-related transfer of a spouse or the need to provide childcare or nursing care,so that they can return to the workplace. As of March 2023, 41 employees had been reemployed under this system.

Refer to:ESG Data (Turnover rate)

Promotion of LGBTQ Awareness and Establishment of an ExternalCounseling Point
We offer ongoing e-learning and training for employees to promote better understanding, awareness, and behavioral
changes with respect to LGBTQ issues. Furthermore, in June 2023, we established an external counseling point featuringexternal counselors with knowledge and understanding of LGBTQ issues in order to resolve LGBTQ-related concerns atwork and to develop a workplace environment in which all employees can work with vigor and enthusiasm.
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Support for the Activities of Employees with Disabilities
We make efforts to provide support and consideration for employees with disabilities so as to enable them to play activeroles by fully applying their talents and abilities in the workplace. The details of the necessary support that they desire fromthe company are confirmed during recruitment. In addition to assigning an Employment Counselor for People with
Disabilities at the head office and branch offices, qualified industrial counselors and job coaches also collaborate withexternal organizations (such as certified psychologists) as well as conduct meetings and provide follow-ups with employeeswith disabilities and their supervisors.

Refer to:ESG Data (Rate of employment of persons with disabilities)

External Evaluations
Taisei Corporation was recognized as the top-ranked"Best Workplace" in the D&I Award 2022 sponsored by JobRainbow.

Refer to:External Evaluations

Data

Social Data

Copyright TAISEI CORPORATION All Rights Reserved.

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Human Rights Due Diligence

Human Rights Due Diligence
Maintain a commitment to meet the responsibility to respect human rights (Guiding Principle 16)
Identify and assess adverse impacts on human rights (Guiding Principle 18)
Prevent and mitigate adverse human rights impacts (Guiding Principle 19)
Assess the effectiveness of activities (Guiding Principle 20)
Provide explanation and disclose information (Guiding Principle 21)

Remediation (Guiding Principle 22)

Dialogue with Stakeholders

Human Rights Due Diligence
To fulfill its responsibilities with regard to respecting human rights, and to prevent or mitigate adverse impacts on humanrights due to its business activities, the Taisei Group has established a framework for Human Rights Due Diligence, andimplements this framework on an ongoing basis. Taisei's Human Rights Due Diligence framework is based on the United
Nations Guiding Principles on Business and Human Rights and the Japanese government's Guidelines on Respecting
Human Rights in Responsible Supply Chains.
During operation, the mechanism is reviewed and improved as needed, and we are committed to deepen our activities toensure respect for human rights.

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1
Guiding Principle 16
Maintain a commitment to meet the responsibility to respect human rights
Maintain a commitment to respect human rights.

2
Guiding Principle 18
Identify and assess adverse impacts on human rights
Identify and assess adverse impacts on human rights that are or may be the result of the company's involvement.

3
Guiding Principle 19
Prevent and mitigate adverse human rights impacts
Incorporate the results of the impact assessment into all related divisions and company-wide processes, and takeappropriate action to prevent or mitigate adverse impacts.

4
Guiding Principle 20
Assess the effectiveness of activities
Assess the effectiveness of activities and promote ongoing improvements based on the results.

5
Guiding Principle 21
Provide explanations and disclose information
Explain and disclose basic information related to human rights due diligence as well as methods to deal with adverse
impacts.

6

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Guiding Principle 22
Remediation
Work to achieve remediation and correction using appropriate means.

Maintain a commitment to meet the responsibility to respecthuman rights (Guiding Principle 16)
The Taisei Group's Human Rights Policy was formulated in 2015 and revised in April 2022 following discussion by the
Board. The Group's commitment to meeting its responsibility to ensure respect for human rights is communicated clearlyboth within and outside the Taisei Group companies. The basic position of the Taisei Group as regards respect for humanrights is to voluntarily, positively and proactively exercise its responsibilities as a corporate citizen to ensure that its businessactivities do not negatively impact human rights, and to contribute to the achievement of an inclusive society. Taisei has alsoestablished a Human Rights Due Diligence framework to fulfill its responsibility to ensure respect for human rights.
The Human Rights Policy is posted on the official Taisei Group website, and clients and subcontractors, suppliers and otherbusiness partners are asked to support the Policy and maintain respect for human rights.

Refer to:Human Rights Policy

Identify and assess adverse impacts on human rights(Guiding Principle 18)
To identify and assess adverse impacts on human rights caused by existing or new projects of the Taisei Group, based on
guidance and recommendations from an outside expert (Sompo Risk Management Inc.), a check was conducted by the
Sustainable Procurement Council and members of the Human Resources Division and International Operation
Headquarters to identify adverse impacts on human rights (human rights risks) that are common to all industries and humanrights risks that are specific to the construction industry and the Taisei Group, based on international guidance on humanrights (the Human Rights Guidance Tool of the United Nations Environment Programme Finance Initiative).
The human rights risks that were identified — discrimination and harassment, long working hours, health and safety, bribery
and corruption, migrant labor (foreign workers), child labor, forced labor etc. — were subjected to a quantitative analysis andassessment from the two aspects of "impact on human rights (degree of seriousness, number of people affected, possibilityof remediation, likelihood of occurrence)" and "connection to Taisei." Following discussion at the Sustainability Committee
and the Board, these were identified as "human rights issues that must be dealt with on a priority basis.”

Risk Map PDF

Human rights issues that must be dealt with on a priority basis
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As of March 1, 2023
Affected Group
Taisei and Group Company Employees

Priority Issue
Long working hours
Discrimination and harassment
Health and safety (physical and mental)
Personal information / privacy

Client or client employees

Personal information / privacy

Specialized contractor workers

Health and safety (industrial accidents)
Working conditions (wages / long working hours)
Discrimination and harassment
Migrant labor (foreign workers)
Forced labor (overseas)
Child labor (overseas)

Supplier workers

Working conditions (wages / long working hours)
Migrant labor (foreign workers)
Forced labor (overseas)
Child labor (overseas)

Residents of local community

Health and safety (noise, foul odor etc.)
Bribery and corruption
Involvement with antisocial forces
Activities in countries experiencing conflict
Operations in countries that fall far short of international standards

Prevent and mitigate adverse impacts (Guiding Principle 19)
For issues that are a priority for Taisei and Group company employees, the headquarters in charge of each issue plays theprincipal role in taking various corrective measures to achieve prevention or mitigation. Moreover, Taisei also works todeepen employees' understanding of the importance of ensuring respect for human rights through the activities of the
Human Rights Awareness Promotion Committee that is chaired by the CSO.

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Furthermore, Taisei provides regular online learning on human rights for all executives and employees to raise theirawareness of human rights. In the online learning program provided in June 2023, participants confirmed that global actions
are required for such issues as long working hours, forced labor, child labor, and corruption and bribery and that special
attention must be paid to stakeholders who may be put in a vulnerable position such as foreign workers. The participation
rate was 96.0%.
Issues that are a priority for the supply chain are studied by the Sustainable Procurement Council, and prevention andmitigation measures are reflected in the Sustainable Procurement Guidelines. Taisei works with subcontractors andsuppliers to prevent or mitigate these issues. To ensure a thorough understanding on the part of subcontractors andsuppliers, training is conducted at the Safety Convention, and online learning for subcontractors and suppliers is madeavailable to conduct educational activities on an ongoing basis.
For issues that are a priority for clients, client employees and residents in the local community, the headquarters in charge ofeach issue plays the principal role in taking corrective measures to achieve prevention or mitigation.

Refer to:Taisei Group of Companies Sustainable Procurement Guidelines
Brochure "Promotion of Sustainable Procurement”

Assess the effectiveness of activities (Guiding Principle 20)
The effectiveness of activities to resolve issues that are a priority for the employees of Taisei and Group companies isassessed through monitoring by various committees, checks an improvements based on company-wide risk management,
and opinion surveys and engagement surveys.
To assess the effectiveness of activities to resolve issues that are a priority for the supply chain, annual self-assessment of
subcontractors and suppliers is conducted, and based on the results subcontractors and suppliers are visited and audited
and an exchange of views is conducted. In FY2022, self-assessment was conducted by 1,590 companies (79% of thecompanies surveyed on a contract amount basis), and of these 20 companies were visited to check the status of activities
and exchanges of views were conducted in order to effect improvements.
In addition, to prevent or mitigate violations of the human rights of foreign workers, a human rights issue that is particularly
noteworthy in the construction industry, in addition to the aforementioned self-assessment a survey of the acceptance statusof foreign technical interns was conducted for the owners of companies that employ such interns.
In FY2022, a survey was conducted for 251 companies. For 16 of these companies, documents were used to re-check thenature of the activities being conducted, and five companies were visited to conduct interviews on the status of activities andhold an exchange of views. In addition, interviews were conducted directly with five foreign technical interns, and there wasconfirmed to be no adverse impact on human rights.
For activities with regard to issues that are a priority for clients, client employees and residents in the local community, theeffectiveness is assessed by means of company-wide risk management and so on.

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Refer to:
Promotion of Supply Chain Management: Risk Management and Risk Assessment

Provide explanations and disclose information (Guiding
Principle 21)
Regular reports regarding the status of implementation of Human Rights Due Diligence activities are presented toManagement Committee, meetings of the Sustainability Committee and the Board. These reports are disclosed in a timely
and appropriate manner on the official website and in annual reports.
In FY2022, Taisei commenced Human Rights Due Diligence activities with “specialized contractor workers,” “supplier
workers,” and “the local community” as subjects and made efforts to prevent and mitigate adverse impacts on human rights
by firmly establishing the Sustainable Procurement Guidelines and providing training, etc., to specialized contractors andsuppliers.
To assess the effectiveness of these activities, questionnaires in the form of self-assessments of specialized subcontractor
and suppliers were conducted, business owners and foreign technical interns were interviewed, and foreign suppliers werealso paid a visit and surveyed. As a result, Taisei concluded that within the scope of these surveys, there were no humanrights abuses that required immediate attention. Additionally, when we confirmed our actions regarding the local community
through company-wide risk management systems, there were no cases in which adverse impacts on human rights had
become a major problem.
At the Board meeting held in February 2023, Taisei resolved to add “Taisei and Group company employees” and “client orclient employees” as subjects of the Human Rights Due Diligence activities, and together with the subjects of the due
diligence mentioned above, Taisei has been engaged in actions to prevent and mitigate adverse impacts on human rightsfrom March 2023.

Remediation (Guiding Principle 22)
Contacts for various consultations regarding human rights violations have been established for consultations from all
stakeholders within and outside companies, including foreign workers. In the event that the Taisei Group has been
determined to be the cause of, or a contributing factor to, an adverse impact on human rights, Taisei takes prompt action
using appropriate means to provide remediation and implement corrective action in accordance with its Human Rights
Policy.

Contacts for Consultations

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Contact

For

Personnel Affairs Consultation Contact (personnel
system, workplace environment, human rights,

Company employees

harassment etc.)
EAP Consultation Contact (mental health of
employees and their family members, etc.) (outside

Company employees and their families

consultation is also available)
Vibrant Workplace Promotion Section Consultation
Contact (support for diversity, childcare and nursing

Company employeescare, LGBTQ issues etc.)
LGBTQ External Consultation Service

Company employees

Harassment Consultation Contact at head office andbranch offices (sexual harassment, abuse of power

Company employees

etc.)Contact for "Harassment by Clients"

Company employees

Corporate Ethics Helpline, Group Helpline (for allcompliance violations)

Taisei Group current and retired executives andemployees, subcontracors and suppliers with contracts
concluded directly with Taisei
Workers of companies engaged in work for Taisei based

Whistle-Blower Contact (for legal violations)on a contract concluded directly with Taisei

Contact for Inquiries

All stakeholders

Dialogue with Stakeholders
Based on the understanding that dialogue with stakeholders is crucial for advancing our efforts to respect human rights, we
actively engage in dialogues and discussions with stakeholders as appropriate. In FY2022, we conducted dialogues withexternal experts and our Chief Sustainability Officer (CSO), as well as discussions with specialized contractors andsuppliers both in Japan and overseas, and interviews with foreign technical interns, among other activities. We will utilize theinsights gained from these dialogues and discussions in our future activities to respect human rights.

Discussion by CSO (left) and outside expert

Visit to subcontractors and supplier, and(lawyer Omura) (right) regarding SDGs andinterview

Interview with foreign technical interns

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human rights

Refer to:Human Rights×SDGs Talk

Copyright TAISEI CORPORATION All Rights Reserved.

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Human Rights Risk Map

GreatImpactonhumanrightsLegendEmployeesofTaiseiandTaiseiGroupcompanies
Workersatspecializedcontractors
Localcommunity

Clientorclientemployees
Workersatsuppliers- Migrant labor (foreign workers)- (overseas) Child labor- (overseas) Forced labor- Migrant labor (foreign workers)- (overseas) Child labor- (overseas) Forced labor- Connections to antisocial forces- Bribery and corruption- (overseas) Activities in countries in conflict- (overseas) Operations in countries that fall far
short of international standards- Long working hours- Wages and benefits- Long working hours- Wages and benefits- Harassment- Long working hours- Harassment- Discrimination(unequal opportunities at work)- Health and safety(physical and mental health)- Personal information / privacy- Health and safety(industrial accidents)- Health and safety (health)- Health and safety (earthquakes / pandemics)- (overseas) Customs, etc. in country andregion of operation- Health and safety (industrial accidents)- Harassment- (overseas) Conflict minerals- Rights of local residents- Access to land / Forced
relocation- Freedom of speech andfreedom of expression- Personal information /privacy- Personal information / privacy- Health and safety(noise, foul odors etc.)- Freedom of association- Health and safety (health)- Freedom of association- Personal information / privacy- Civic order- Freedom of speech andfreedom of expression- Health and safety (industrial accidents /health and safety)- Health and safety (earthquakes /pandemics)- Wages and benefits- Discrimination (unfair termination)- Customs, etc. in country and region ofoperation- Freedom of association- Safety of services- Responsible marketing- Human rights violations with regard to
products and services- Protection of property rights- Health and safety(outflow of hazardous substances)- Use of natural resources

Small- Disciplinary action- Working conditions- Infringement of intellectual property

Small

Connection to
the company

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Realization of an Attractive Working
Environment That Is Good to Work in

Policies and Basic Approach

Goals and Targets

Sustainability Governance and Oversight

Initiatives

Activities / Efforts

Data

Realization of an Attractive Working Environment That Is
Good to Work in
Policies and Basic Approach
The Taisei Group has established principles in its “Action Guidelines for Taisei Personnel and the Taisei Group as a Whole,”
aimed at securing a pleasant working environment and respect for diversity. The Group is actively promoting theseprinciples. We have also laid out the Human Resources Development Policy (Diversity & Inclusion Policy) and are pushing
forward with various initiatives to foster an environment that respects diversity and ensures every executive and employee
can maintain high levels of engagement and perform optimally. Based on this policy, as well as the TAISEI VISION 2030 and
the Medium-Term Business Plan, we set self-directed goals for the utilization of human capital. The Board regularly monitors
the execution of these goals and ensures timely and accurate disclosure to our stakeholders.
In addition,Taisei Corporation recognizes that the enhancement of human capital is an investment in the future of the Group,
and in FY2022 and FY2023, in consultation with the employee union, we implemented wage increases for all employees
through base increases and increases in starting salaries for new graduates. Going forward, in accordance with the "MultiStakeholder Policy" established in March 2023, we will continue to aim for sustainable returns to our employees and strive
for comprehensive compensation improvements that enhance the "ease of work" and "job satisfaction" of our employees,with an emphasis on diversity, fairness, and inclusiveness.

Risks and Opportunities

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If efforts to harness the skills and capabilities of diverse personnel—including women, elderly employees, and nonJapanese employees—are inadequate, we risk not being able to secure top talent. Consequently, endeavors to uplift
corporate value, such as through innovation, might stagnate, and our reputation among our stakeholders could diminish.
Conversely, by actively promoting Diversity & Inclusion initiatives to realize an attractive working environment that is good towork in, we aim to attract and retain stellar human capital, boost the engagement levels of our executives and employees,
and invigorate the organization as a whole.

Policies/Commitments
Action Guidelines for Taisei: Cultivating an open corporate culture/Respect for fundamental human rights and diversity
Human Resources Development Policy (Diversity & Inclusion Policy)
Human rights Policy
Medium-Term Business Plan: To promote the measures that emphasize an attractive working environment, as well as
diversity and inclusion

Refer to:Creation of Value and Policies

Medium-Term Business Plan

Goals and Targets

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Medium -to Long-Term Goals/KPIs/Performance

Refer to:ESG Data (Social Data)

Initiatives
United Nations Global Compact,“Human Rights,” “Labor,”“Environment,” and “Anti-Corruption”
The Valuable 500
My Jinken (human rights) Declaration“Male Leaders Coalition for Empowerment of Women”by the Gender Equality Bureau, Cabinet Office
Action Plan for the Act on the Promotion of Female Participation and Career Advancement in the Workplace (Cabinet
Office)Voluntary action plans on the promotion of women to managerial and board positions ([Keidanren] Japan Business
Federation)
Member of the Iku-Boss Alliance
Human Capital Management Consortium

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Refer to:
Participation in Initiatives

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Sustainability Governance and Oversight
Promotion System

Chairperson

Executive Vice President

Organization for

Personnel Committee (Business Committee)
Important matters relating to diversity & inclusion are discussed in advance byconsultation

the Personnel Committee and then discussed at a Management Committee,
after which they are referred and reported to the Board.

PolicyHuman Resources Development Policy (Diversity & Inclusion Policy)

Secretariat

Human Resources Department

Activities / Efforts
Initiatives to Correct Long Working Hours
The Taisei Group Human Rights Policy explicitly states the need to observe local laws and regulations, consider theoccupational health and safety of all employees and suppliers, and improve long working hours, and Taisei is working tomaintain and improve employee health, prevent overworking, and reduce overtime work. To this end, we have set up a
Working Hours Reduction Committee and Working Hours Reduction Promotion Committee as venues for coordination, andeach year the Working Hours Reduction Committee formulates working hour reduction activity policies in order to reduce
excessive working hours. In addition, the President's Message is sent to all employees each month to indicate thecompany's basic stance on these and other issues.
Taisei Corporation formulated Roadmap to fiscal 2024 for “addressing long working hours” with annual targets of “healthmanagement overtime (total of statutory overtime working hours and holiday working hours),” “regular leave andcompensatory leave,” and “closures of worksites.” We have made efforts under the leadership of internal consultation bodies
including the Committee for the Reduction of Working Hours and the Working Hour Reduction Promotion Committee. In
order to change employees’ awareness and behavior, all employees are expected to discuss and carry out practicalmeasures to reduce working hours according to the conditions of individual workplaces. Activities that positively contributed
to addressing long working hours are shared across Group companies and continuously promoted to maintain momentum.

*Health management overtime:
Overtime used as an indicator for deciding whether measures to prevent health problems (e.g. guidance by a physician) need to be taken. (Total of statutory
overtime working hours and holiday working hours)

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Refer to:Materiality and KPIs

Medium-Term Business Plan

Human Rights Policy

Support for a Balance between Work and Family/Childcare
Taisei Corporation has put in place a variety of systems to help employees raise children in a better work environment,
including the Childcare System and Flexible Working Hours for Employees During Childcare.
We also support balancing work and nursing care by developing a support system that is more extensive than legallyrequired, including nursing care leave, and holding seminars.
Since 2016, we had placed particular emphasis on male involvement in childcare and, as one of its workstyle reform
policies, has targeted a childcare leave usage rate of 100% for male employees. We promoted this initiative on a companywide basis with the involvement of affiliated departments and superiors.
In April 2017, we joined the Ikuboss Corporate Alliance, a network whose goal is to nurture the ideal boss for the new age. In
addition, we received the Ikumen Enterprise Award 2016 as well as recognition for achievements based on the Act on
Advancement of Measures to Support Raising Next-Generation Children. As a result of implementing various measures that
include sending congratulatory messages to male employees and their direct superiors when the employee has had a childborn, encouraging the employee to take childcare leave, and enhancing the childcare leave system, the childcare leave
usage rate by applicable male employees reached 100% and the average number of days taken was 11.6days (as of theend of March 2022).
To support employees who have worries about balancing work and nursing care, we have established systems for nursing
care holidays and nursing care leave, etc. that exceed legal requirements, and also distribute an original nursing care guideand hold regular individual counseling sessions where employees can consult specialists free of charge. In addition, we
have also established a detailed follow-up system that includes a "web-based nursing care seminar" that employees canparticipate in with their families when they are on the long leave, and seminars on preventing employees from retiring due tonursing care system, which our core corporative partner companies can attend. By FY 2022, a total of approximately 2,600
people have participated in the above seminars.

Acquisition and Retention of Human Resources
In terms of labor standards such as wages and working hours, the Taisei Group comply with each country's minimum wage
laws and regulations and pay wages above those standards to ensure that we recruit and retain talented people to achievesustainable growth. The average annual salary of the Group's employees in FY2022 was JPY 9,929,000.
In addition, regarding the recruitment, we hired 276 new graduates in FY2022. We are enhancing our internal job posting
system and a range of other systems to support the continued engagement of our employees, so that each employee canmaintain high motivation and demonstrate their full potential over a long period. We provide work descriptions in detailduring the recruitment process to avoid mismatching. For young new employees, we offer the opportunity for private

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interviews after joining the Company, including a trial of a mentor system in some cases.
Note that the voluntary turnover rate for full-time employees in FY2022 was 1.6%.

Refer to:ESG Data (Turnover rates)

Advancing Diversity,Equity, and Inclusion
We are implementing flexible work arrangements that enable diverse human resources, such as female employees, elderly
employees, and non-Japanese employees, to play an active role as their life stages change.

Refer to:Diversity, Equity, and Inclusion

Labor-Management Relations
Taisei Corporation respects workers' rights including freedom of association, the right to organize and collective bargaining
rights, and we have instituted a labor negotiation system to ensure dialogue between employee representatives and senior
management. Under the system, the company's directors and the labor union meet regularly each year to hold discussions
and exchange views regarding wages, working conditions and so on. Thorough discussions with employee representativesof the labor union help to ensure healthy labor-management relationships.
Taisei Corporation also has a union shop agreement with the Company’s employee union, which has a membership rate of
all employees covered by the collective bargaining agreement is 89.8%, with a 100% membership rate of those eligible forunion membership.
To facilitate labor-management relations and business activities in the Company, we conduct questionnaire surveys andvarious dialogues between labor and management every year. Changes in working conditions and so on are determined inadvance through discussions between labor and management.

Promotion of Health and Productivity Management

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Taisei Corporation acknowledges that the well-being of its employees is not only essential for cultivating a vibrant work
environment but also for ensuring the happiness and welfare of both the employees and their families. With thisunderstanding, we provide comprehensive support for the physical and mental health of our staff. Specifically, weemphasize post-health checkup interventions and personalized consultations based on the levels of physical and mental
fatigue, with the aim of reducing health-related issues. Moreover, we have introduced an educational pension benefit systemthat provides educational support for families in the event that an employee becomes unable to work due to death, injury, or
illness and has to retire.
For mental well-being, we have established an Employee Assistance Program (EAP) consultation room, where employees
can easily seek advice. We offer consultation services, including face-to-face meetings with external counselors as well asphone and email consultations that are available to both employees and their families. Especially for our younger staff, weregularly administer health awareness surveys and encourage consultations with counselors if they are experiencing stressor anxiety. Moving forward, we will continue to advance our health management initiatives, focusing on engaging withyounger employees, raising awareness of mental health, and providing support to balance medical treatments with workcommitments.

Refer to:Health Management

Improvement of Employee Engagement
We believe that it is crucial for each individual employee to maintain high levels of engagement, built upon a foundation of
psychological safety in the work place. In FY2022, we conducted an engagement survey using Motivation Cloud, a service
provided by Link and Motivation Inc., targeting employees of Taisei Corporation and its major Group companies. Based on
the issues identified, we have been implementing incremental improvements. Starting from FY2023, we plan to increase thefrequency of engagement surveys to twice a year. We will periodically monitor improvements and integrate the findings into
various management initiatives, aiming for a continuous improvement in engagement scores.

Promoted items

Activities

Promotion of work style

Achievement of production system innovation and work style reform through thereformdigital transformation (DX)
Attractive working environment and promotion of policies that stress diversity &inclusion
Initiatives to Correct Long Working Hours

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Promoted items
Childcare suppor

Activities
Promoted childcare leave usage among male employees by partly paying during
the leave and allowing employees to split childcare leave to separate occasions.
Childcare support program: Holding of work-life harmony support seminar
Creation of a temporary day-care center during training and employees who areraising children.
Secured preferential use of about 113 nurseries across Japan to accommodate
children in collaboration with our employees and nursery operators bycooperating with nurseries.
Distribution of babysitting vouchers.

Nursing-care support

Distribution of nursing care guide and provision of information through nursing
care seminars
Individual consulting meetings with outside organizations on nursing-care
Three-person meetings for employees who are facing nursing-care (nursing care
support program).

Support for time off

Annual paid leave and promotion of acquisition of “refreshment leave” (a systemthat offers time off to employees and their facilities as a reward for continuous
service milestones) and “milestone leave” (leave that can be acquired byworkers at workplaces when they transfer to different workplaces or at work
process milestones)

Various Systems

Property accumulation savings system, employee stock ownership plan, groupinsurance system, etc.

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Promoted items

Activities

Various mechanisms forCompliance with various basic working conditions established in Japan andother labor issues

other countries
Prevention ofchild labor:
Prevention offorced labor:

Taisei employs persons 18 years of age or older.

Entry by applicant is a prerequisite; after screening, applicant
is notified that he/she has been hired.
In addition, working conditions are presented upon company
entry, and employee is hired based on his/her agreement tothose conditions.

Living wage
support:Beginning salary for new graduate hires (university graduate /main career track) is at a level exceeding the national
weighted average for the minimum wage in that region.
Note:In FY 2021, this was equivalent to approximately 166% (149% compared tothe minimum wage in Tokyo).
In FY 2022, it was equivalent to approximately 168% (150% compared to theminimum wage in Tokyo).

DataSocial Data

Copyright TAISEI CORPORATION All Rights Reserved.

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223

Human Resource Development

Policies and Basic Approach

Sustainability Governance and Oversight

Activities / Efforts

Data

Human Resource Development
Policies and Basic Approach
The Taisei Group includes "Striving to create value" in its Group Action Guidelines and emphasizes the importance of being
ahead of the times and striving to improve one's knowledge and abilities.
In 2012, Taisei Corporation established its fundamental policies regarding human resource development. Our basic
educational philosophy is "meeting the changes and needs of the times, and fostering professionals who are full of originality
and capable of rising to the challenge of transformation." With this, we offer a wide variety of self-development training
programs along with diverse human resource development programs to enhance expertise and provide support in obtaining
certifications and in improving management capabilities and other skills.
We offer a wide variety of human resource development programs to enhance expertise and provide support to obtaincertifications and improve management capabilities and other skills. In FY2022, the total time spent in training programs forskill development of all employees was 566,424 hours.

*1

Up to FY2021, data from training programs sponsored by the head office were collected. From FY2022, the results of training programs sponsored bye-Learning are also included in the data. branches and companywide

Refer to:Action Guidelines for Taisei Personnel and the Taisei Group as a Whole

Sustainability Governance and OversightEnvironmental Social Governance Report 2023

224

Career Development Support
Taisei conducts various types of training in each phase after employees have joined the company in order to ensure that
personnel have specialist skills, creativity and so on. Training is conducted according to rank across all divisions, for all
personnel ranging from prospective employees slated for hiring to management personnel. Within each division as well,training to impart specialist knowledge and on-the-job training by experienced employees are conducted, in addition toannual training for young employees, training for management and global personnel, leadership development training forfemale employees and so on, in order to increase employee capabilities.
In FY2022, the time spent on training per employee was 65.0 hours.

*1

Up to FY2021, data from training programs sponsored by the head office were collected. From FY2022, the results of training programs sponsored bye-Learning are also included in the data. branches and companywide

Activities / Efforts
Enhancement of “Human Skills” and “Specialization”
We are advancing training programs focused on “human skills” to help individuals develop a well-rounded set of capabilities—encompassing mind, skill, and body—in a balanced manner.
Through these programs, we aim to instill a broad perspective and cultivate individuals who are not just technically proficient
but also socially and culturally informed.

Boosting Productivity through Online and On-Demand Training
We have implemented online and on-demand training modules that can be accessed at the convenience of the employees.

Promotion of Action Learning
We are focused on translating classroom learning into actionable insights in the workplace. Through a cycle of experiential
learning that includes experience, introspection, conceptualization, and application, we aim to convert acquired knowledge
into meaningful behavioral changes.

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Development of Digital Human Resources throughDX Academia

DX Academia is a systematized form of digital education that aims to develop human resources who use digitaltechnologies

and data to improve productivity and create new value. We will provide a comprehensive learning

environment for purposes ranging from improving the literacy of all employees to developing human resources who
promote DX.

“Wellness-Oriented” Training Centers
We have integrated biophilic design elements into our training
spaces to create an environment that not only lowers stress but
also enhances focus and well-being through interaction withnatural elements.
Classroom: “T-Light Blinds” for natural indoor lighting
Common conversation space: Designed with wood and plants

Support for Qualification Acquisition
To cultivate employees with high levels of expertise, we support the acquisition of various professional certifications, such asFirst-Class Architect and First-Class Civil Engineering Construction Management Engineer. We provide financial assistancefor the necessary costs of these certifications and offer additional incentives to encourage skill enhancement.

Construction work

Civil engineering work

First-class architect

Professional engineer

First-class building operation and management

First-class civil engineering works execution managing

engineerengineerFirst-class plumbing work operation and management
engineer
Building mechanical and electrical engineer

Chief concrete engineer

Certified chief managing engineer for dam construction

DesignInternational

First-class architect

Licensed ArchitectFirst-class architect in structural design

Professional Engineer

First-class architect in facility design

Project Management Professional

US licensed architect

APEC Architect/Engineer

Development

Engineering

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226

The Association for Real Estate Securitization certified
masterProfessional engineer

First-class plumbing work operation and management

Redevelopment plannerengineerFirst-class electrical work operation and management

Professional engineer

engineer

Real estate notary—
Administration

Construction industry accountant

Registered real-estate broker

Executive-Employee Interviews
To ensure the well-being of employees stationed at remote worksites, promote interactions between employees andexecutives, and boost employee morale, our executives engage in one-on-one interviews with team members.

Meister System
Aimed at preserving and passing down technical know-how, we have instituted a “Meister System.” Under this system,
individuals with robust experience and demonstrable technical aptitude are appointed as “Meisters,” who then provide
hands-on coaching at worksites.

Refer to:Human Resources Development of the Next Generation of Engineers and Woman Engineers

Development of Global Human Resources
We are also making efforts to develop global human resources, such as by conducting training to improve foreign language
proficiency and to facilitate an understanding of different cultures, as well as training at overseas worksites. Other initiatives
include sending employees to graduate schools and other companies both in Japan and overseas.
In particular, the departments in charge of overseas businesses are independently promoting the reinforcement of “humanresource” development, through the following training programs.

Training key personnel for overseas projects

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Taisei Corporation works to train key personnel who will be involved in overseas projects.
We have established a Personnel Training Policy and Personnel Training Organization and conduct training in the areas ofjob skills, communication skills and management skills, to ensure that employees are able to use their specialist skills andknowledge in conducting construction business overseas. Diverse training that includes studying abroad at universities inforeign countries and being dispatched to other companies fosters a global outlook on the part of employees and improves
their capabilities.

Data
Number of Public Qualification Holders(As of March,2023)

Number of Employees

9,913 Persons

8,613 Persons(Including reemployed and(Including reemployed and(full-time employees)

temporary staff)
First-class architects

temporary staff)

2,209 Persons

2,557 Persons

1,619 Persons

1,921 Persons

247 Persons

263 Persons

First-class civil engineering
construction management
engineers
First-class construction
accountants

FY2022Type ofCategory

Number of

ActualParticipation

Total

Trainingmajor

by type of

applicable

number ofrate(%)

hours

hours

training

participant

participants

participants

of

per

(Persons)(Persons)

training

person(hours)(hours)Introduction
training for
new

all

308

308

100.0

14,322

46.50

177

177

100.0

4,115.25

23.25

employees

Step-Up
Training for
managers

Employees
who have
been
promoted

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228

FY2022
Power-upmanagement
training
Training for
newlyappointed
generalmanagerTraining for
Businessleaders

newlyappointed

106

106

100.0

2,464.50

23.25

80

80

100.0

1,240

15.56

28

28

100.0

1,085

38.75

—

—

—

—

—

Employees
who have
been
promoted

Employees
endorsedby thedepartment
Employees

Globalendorsedtraining*by thedepartment* Global training was not conducted in FY2022

Social Data

Copyright TAISEI CORPORATION All Rights Reserved.

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229

Health Management

Policies and Basic Approach

Sustainability Governance and Oversight

Activities / Efforts

Data

Health Management
Policies and Basic Approach
In accordance with the Taisei Group Philosophy "To Create a Vibrant Environment for All Members of Society," Taisei works
to enhance the health of all of its employees. The Action Guidelines for Taisei Personnel and the Taisei Group as a Whole
clearly stipulates that “Taisei personnel shall endeavor to maintain their mental and physical health, and superiors shall givedue consideration to the mental and physical health of their subordinates.”
In addition to maintaining compliance with the labor laws and regulations in each country, we have established a mechanism
for health management and improvement, and we place particular emphasis on reducing working hours to prevent
employees from becoming overworked. Issues relating to workplace hygiene and reducing working hours for employees at
the head office and branches are studied and discussed, and Health Committees have been established with the aim ofpreventing health problems and maintaining and advancing health.
In addition, the head office and each branch establish a Mental Health Plan and conduct various types of health support
measures.
Moreover, Taisei provides guidance to owners with regard to conducting worker health check-ups, appropriate posting ofworkers, management of appropriate work hours and so on, in order to prevent the onset of private illnesses or other
impairment of the health of workers working at construction sites.

Mental Health Policy (excerpt)
We have established a Mental Health Policy declaring that maintaining mental health is recognized as a serious issue
for ensuring the happiness of employees and their families and creating a vibrant workplace, and we are promoting

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230the following items.
1

Stress checks

2

Mental health3

Provision of training and information

4

Preparation of documents and manuals

5

Protection of personal information

Refer to:Action Guidelines for Taisei Personnel and the Taisei Group as a Whole

Sustainability Governance and Oversight
Taisei Corporation has established Health Committees at the head office and each branch, which are chaired by the General
Manager of the Human Resources Department (in the case of the head office) or the Chief of Branch (in the case of abranch), and with members comprising occupational health physicians, health and safety managers, persons in charge ofhealth promotion at each division, branch executive members of the employees' union and so on.
The Health Committee meets once each month and investigates and reviews issues relating to employee occupational
hygiene and reduction of working hours, and works to prevent health impairment and maintain and promote employee
health. The minutes of Health Committee meetings are posted on the Intranet for all employees.

Activities / Efforts
Thorough Health Management
Taisei requires employees to have a regular annual health check-up that includes a chest X-ray for early detection of
pulmonary tuberculosis, lung cancer, pneumonia and so on. We work to achieve 100% compliance with the regular healthcheck-up and strive to ensure that various tests are conducted and that appropriate after-care and health guidance areprovided. In addition, Taisei also provides assistance for the costs of outpatient services to help people quit smoking in orderto reduce the impact of lifestyle-related diseases, as well as for the costs of cancer screenings for breast cancer, uterine
cervical cancer and other gynecological cancers, in order to promote advancement of employee health.

Overwork Prevention Measures

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With regard to measures to prevent employees from becoming overworked, Taisei promotes appropriate allocation of work
quantities and personnel assignment to appropriately manage working hours, and recommends interviews and guidance bya physician for persons whose health management overtime* exceeds 80 hours per month, in order to maintain health andprevent serious illness.
* Interview management time: The "calculated time of interviews and guidance for employees working long hours, based on the Industrial Safety and Health Act" or"Taisei health management overtime hours" per month, whichever is greater.

Refer to:Initiatives to Correct Long Working Hours
Efforts to Address Long Working Hours / Response to Closures of Worksites on Weekends

Mental Health
A health management site has been set up on the Intranet to provide useful information as needed, including basic
knowledge about mental health, a manual on procedures for return to work following a prolonged absence, contacts for bothinternal and external consultation, and health-related columns, in order to help employees obtain information related tohealth management.
We have also set up an employee assistance program (EAP) to enable employees to consult external professionalcounselors (health welfare professionals, clinical psychologists, etc.) regarding their worries and concerns. We also
encourage and provide opportunities for employees to consult external professional counselors in person rather than only byphone or email, etc.
In addition, as initiatives for mental health education, we regularly provide training sessions and online learning courses, etc.
in "Line Care" (a system for employee mental health support by supervisors) for employees in managerial positions, and in
self-care and related matters for general employees.

Stress Checks
In FY 2022, the stress check participation rate for Taisei employees was 92%. Through participation in stress checks,
guidance is provided to employees who are determined to be under high stress, and an active effort is made to improve
workplace environments that pose a high risk to health.

Global Health Maintenance Activities
In an effort to maintain and improve the health of employees living overseas, Taisei conducts regular health check-ups for
personnel on overseas assignments and accompanying family members (prior to departure, during the overseas
assignment and after returning to Japan). As some countries and regions face health issues due to various types ofinfectious diseases such as HIV (AIDS), tuberculosis, and malaria, we recognize the importance of global health issues suchas these and proactively take countermeasures. Taisei makes efforts to minimize the risk of contracting illnesses byEnvironmental Social Governance Report 2023

232

incorporating content to enhance knowledge and raise awareness toward prevention regarding these types of infectious
diseases during training for officers and employees before dispatching them overseas, alerting them about infectious
diseases and other diseases caused by sanitary conditions in the regions where they are posted, and taking preventive
measures (such as vaccinations and medications) according to the situation of the relevant country or region as necessary.
In addition, Taisei cooperates comprehensively with outside medical consultant firms to determine the basic medical
situation and health risks in the countries in which it conducts business, and gathers information in a timely manner on
illnesses and infectious diseases prevalent at work locations. Taisei has also established mechanisms by which various
types of support can be provided if needed in the event that an employee or family member receives outpatient care or is
hospitalized at a local medical institution.
With regard to the COVID-19 pandemic as well, Taisei has established a mechanism to enable online medical consultations
and examinations by the doctors at medical consultant firms, as well as a system for emergency medical transport inpreparation for the risk of severe illness. In this way, Taisei implements the measures that are needed to place the highest
priority on maintaining and improving the health of employees on overseas assignments and their families.

Refer to:
Striving for a World without Poverty

DataSocial Data

Copyright TAISEI CORPORATION All Rights Reserved.

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233

Thorough Management of Occupational Healthand Safety

Policies and Basic Approach

Goals and Targets

Sustainability Governance and Oversight

Initiatives

Activities / Efforts

Data

Work in Thorough Management of Occupational Healthand Safety
Policies and Basic Approach
The Taisei Group, in its “Action Guidelines for Taisei Personnel and the Taisei Group as a Whole,” emphasizes maintaining asafe and health working environment, and strive to prevent occupational accidents. Especially in construction activities, theGroup commits to adhering to laws, regulations, internal standards, and safety plans. We prioritize ensuring the safety of
construction personnel and give utmost importance to ensuring community safety, which includes preventing accidents that
may affect third parties. This commitment is deeply ingrained, ensuring strict adherence by all the Group’s executives andemployees.
Additionally, within the Group’s Medium-Term Business Plan (2021-2023), we underscore the aim to “achieve zero fatal
accidents and zero serious accidents.” Our Safety and Health Policy designates the Occupational Health and Safety
Management System (“TAISEI OHSMS”), executed in a systematic and organized manner, as the cornerstone of our safety
and health management approach. Group executives, employees, and professional contractors collaboratively work towards
these aims.
We are also pioneering the adoption and enhancement of safety management and monitoring systems leveraging ICT and
AI technologies. In collaboration with professional contractors, we are establishing a safety and health management systemthat clearly defines “responsibility and authority.”
Our ultimate goal is to create a work environment where individuals feel secure and to be recognized as a company thatearns the trust and empathy of the wider community.

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Risks and Opportunities
The construction industry faces challenges, such as the aging of skilled workers, an influx of foreign labor, escalating natural
disasters, and persistent severe heat. These challenges necessitate a higher level of commitment to occupational healthand safety management. Inadequate attention to this critical aspect might lead to industrial mishaps, regulatory
infringements, diminishing corporate value, and our reputation among our stakeholders.
Conversely, elevating our occupational health and safety standards, inclusive of our partners, aids in securing commendable
partners and attracting top-tier talent. Innovative measures, like the automation of hazardous tasks and leveraging digitaltechnologies, not only enhance safety standards but also fortify our Group’s productivity and competitive advantage.

Refer to:Action Guidelines for Taisei Personnel

Human Rights Policy

Safety and Health Policy

Medium-Term Business Plan

Goals and Targets
For “Thorough Management of Occupational Health and Safety,” one of the materiality items, we have established “zerofatal accidents” as a KPI for FY 2023.
Moreover, in the Safety and Health Management Policy which is the basis of the “TAISEI OHSMS”, Taisei's occupational
health and safety management system, the objectives for 2023 are “zero fatal accidents” “achievement of an frequency rateof less than 0.40” and “zero serious accidents.” The objectives of the Safety and Health Management Policy are reviewed
each year, and based on the Safety and Health Policy that applies to employees and the personnel of subcontractors andsuppliers who are contract workers, we work to ensure that all of the people involved in construction work harness their skills
and passion to achieve these objectives.

KPIs

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235

Performance
Between January and December 2022, there were 35 accidents at Taisei Corporation on a non-consolidated basis that
required time off from work (as compared to 46 in 2021), resulting in an frequency rate of 0.31 (0.44 in 2021). There were
zero fatal accidents. Compared to last year, total working hours increased by approximately 10%, but the number ofaccidents that required time off from work decreased, so the frequency rate improved.
An analysis of the accidents in 2022 reveals that the most common type of accident that required time off from work was“machinery-related,” followed by “falls.” We conduct a thorough investigation of the essential causes of the accidents that
occur and initiate proper improvements and measures to prevent a reoccurrence, in order to eliminate similar accidents
and disasters.
Moreover, to reduce risk, we conduct appropriate risk assessments based on the “TAISEI OHSMS”. Taisei's occupational
health and safety management system, and also conduct a variety of workplace patrols and provide thorough safety
education for employees, workers and other workplace personnel.
In FY2022, a total of 1,298 employees who work at construction sites participated in various safety training programs.

Refer to:Materiality and KPIs

Initiatives
United Nations Global Compact, “Human Rights” and “Labor”
ISO45001
Safety Measures Subcommittee ([Nikkenren] Japan Federation of Construction Industry)

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236

Labor Committee ([Nikkenren] Japan Federation of Construction Industry)

Refer to:Participation in Initiatives

Sustainability Governance and Oversight
TAISEI OHSMS (Occupational Health and Safety Management System)
Based on the principle of “Safety First” as stated in its Safety and Health Policy, Taisei works with subcontractors andsuppliers to operate its “TAISEI OHSMS*” occupational health and safety management system in a continuous and ongoingmanner, with the objective of eliminating accidents and disasters, preventing accidents to third parties, and improving thehealth and safety level.
Taisei has established a Central Safety Committee (chaired by the Executive Vice President) made up of members
appointed by the Management Committee. The Committee discusses safety management, the prevention of environmental
accidents, and issues related to the health, safety and environmental management of subcontractors and suppliers, andreports and advices issues to the Management Committee. In addition, Branch Safety Committees, composed of branch
supervisory health and safety managers, employees, and employee’s union, also meet regularly to hold discussions with
employee’s union.
As one part of the Plan-Do-Check-Act (PDCA) cycle based on the “TAISEI OHSMS”, we conduct risk assessments (forexample, when creating construction and health and safety plans after holding review meetings when a construction project
has been acquired, and when advance reviews are conducted by the branch for plans concerning priority dangerous work
operations). In addition, we also have the head office and branches conduct health and safety patrols at all sites where work
is being done once construction starts, in order to check the implementation and operational status of health and safety
plans and to conduct a risk assessment, and improvements and corrective action are conducted as needed in order tocontinually improve the level of health and safety.

Conceptual Diagram of TAISEI OHSMS (Occupational Health and Safety Management System)

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* Our proprietary occupational health and safety management system developed in reference to the guidelines issued by the ILO and the Ministry of Health, Labourand Welfare. As November of fy2021, none of our business sites has obtained OHSAS 18001 certification.

Activities / Efforts
Risk Assessment
Taisei Corporation implements risk management based on the “TAISEI OHSMS” occupational health and safety
management system. Risk assessment is categorized as follows:- Company-wide shared risk assessment, which is implemented comprehensively by the head office- Branch office risk assessment, which is implemented at each branch office and- Worksite risk assessment, which is implemented before work starts at each construction site.
These risk management initiatives are carried out at all existing and new worksites.
Moreover, for new worksites, branch offices make sure to thoroughly identify and mitigate risks as well as implement
countermeasures during the construction plan review stage. By ensuring the implementation of risk assessment, dangerous
and hazardous factors that may lead to accidents and disasters are eliminated or reduced, or necessary measures aretaken to manage them as part of our efforts towards continuous enhancement of health and safety standards in conjunction
with daily safety management PCDA cycles.

Construction Site Patrols
As one part of health and safety management based on the “TAISEI OHSMS” occupational health and safety management
system, Taisei Corporation conducts patrols to confirm the safety and hygiene status at construction sites. In addition topatrols by Taisei employees at the head office and branch offices and patrols by the owners and safety personnel ofEnvironmental Social Governance Report 2023

238

subcontractors and suppliers and so on, the President himself visits and patrols construction sites during National Safety
Week to make sure that each and every employee and worker shares the company's strong commitment to its “Safety First”
policy. To ensure that each and every employee and worker shares the company's strong commitment to our “Safety First”
policy, the President Aikawa himself visited and patrolled construction sites at the Tokyo, Kansai, Chubu, and Tohoku
branches at National Safety Week FY2023. Following these patrols, the President provided instructions to business owners,
contract workers, and company employees. He instructed them to conduct thorough safety management based on thesituation at each construction site and to put together reliable safety processes. He then requested that employees, theBoard of Managers, and the leaders of the workers, make a scrum to ensure thorough safety management. The
construction site patrols by the President are conducted to impress upon all employees and subcontractors and suppliers
the firm commitment to safety on the part of the company's top management.

From the left: the Roppongi 7-chome Project Worksite (tentative name) (Tokyo Branch), the Yodogawa Left Bank Line Tunnel Construction Worksite (Kansai Branch),
the Chuo Shinkansen Line New Nagoya Station (Chuo- Higashi construction area) (2) Construction Worksite (Chubu Branch), and the Aomori Arena and Aoimori
Central Park Development and Operation Project Worksite (tentative name) (Tohoku Branch)

Support for safety education of subcontractors and suppliers (cooperatingcompanies)
By working closely with the Taisei Health, Safety and Environment Cooperation Association, comprising cooperative
companies in Japan, we make efforts to prevent accidents and disasters. The members of the association participate in the
Safety Conference held in January and Safety Promotion Conference in June every year. To prevent accidents anddisasters, we utilize a bulletin, “Kyoryoku (Corporation)” and a list of disastrous cases for the education and guidance ofsafety and sanitation management.

Refer to:Taisei Group of Companies Sustainable Procurement Guidelines
Brochure "Promotion of Sustainable Procurement”

Awards system

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Taisei has established several awards in an effort to improve the quality of health and safety, including the President's
Commendation, the President's Award (safety and hygiene category), the President's Merit Award (Safety Order of Merit),
and the Safety and Hygiene Environment Cooperative Federation Chairman's Award (Special Award). In addition, each year
during National Safety Week (July 1 - 7), the Ministry of Health, Labor and Welfare presents the Minister of Health, Laborand Welfare Award to workplaces for excellence in workplace health and safety and persons of merit who have made amajor contribution to the long-term improvement and development of safety and hygiene standards of a region, organization
or relevant workplace. At Taisei Corporation, the Taisei/Rinkai Nissan/Honma Special Joint Venture Nagoya Central
Stormwater Main Line Sewerage Construction Worksite received an award for excellence.

Data

Safety Performance(Year)

2018

2019

2020

2021

2022

Reference) Frequency rate for all industries

1.83

1.80

1.95

2.09

2.06

Reference) Frequency rate for general construction

1.09

1.69

1.30

1.39

1.47

Frequency rate (Consolidated)

0.58

0.64

0.37

0.56

0.38

Frequency rate (Nonconsolidated)

0.43

0.62

0.35

0.44

0.31

Severity rate

0.14

0.26

0.34

0.08

0.01

*Frequency rate: The number of deaths and injuries due to industrial accidents per 100 million man-hours of work represents the frequency of accidents.
Severity rate: The number of working days lost per 1,000 man-hours of work represents the severity of the accident.

Employee safety education
Taisei Corporation provides employee training to deepen employee's understanding of accident and disaster prevention,
improvement of health and safety awareness, and laws and regulations related to safety. Education is provided based on
the job level of the employee according to year of enrollment and job functions in order to provide the employee with basic
knowledge needed for the job.
In addition, a monthly Accident and Disaster Report is distributed on the Intranet to share information including disaster
analysis, case studies of disasters and ways to prevent disasters.

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240

Type of Education

No. of persons

Offsite training for head office in-house employees

458 persons

Basic, intermediate and supervisory management courses

599 persons

Administrator, supervisor and former manager training

160 persons

Supervisor training

46 persons

New employee introductory training (at time of hire)

35 persons

Total

1,298 persons

Social Data

Copyright TAISEI CORPORATION All Rights Reserved.

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241

Cultivation of Technical Staff and Securing of
Human Resources

Policies and Basic Approach

Goals and Targets

Sustainability Governance and Oversight

Initiatives

Activities / Efforts

Data

Cultivation of Technical Staff and Securing of Human
Resources
Policies and Basic Approach
The Taisei Group, in its Human Resource Development Policy (Diversity & Inclusion Policy), defines diversity management
as the management that creates innovations and values by effectively using diverse human capital and providing
opportunities to maximize their abilities.
To realize this vision, we actively recruit individuals with varied skills and ensure an environment where their full potential
can be maximized. Furthermore, we have established a framework to bolster career development, skills enhancement, andskills transition, enabling diverse talents to thrive in accordance with their life stages, abilities, and ambitions. As we focus on
nurturing the next generation of engineers, this approach is crucial.
In adherence to our Declaration of Partnership Building with business associates, our goal is to augment value and foster amutualistic relationship throughout the entire supply chain. In collaboration with organizations like Soyukai and the Safety,
Health, and Environment Cooperation Association, we are dedicated to both securing and nurturing skilled construction
workers.

Risks and Opportunities

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Should we fall short in our efforts to educate engineers and secure adequate staffing, there is an inherent risk that we may
fail to establish an efficient production framework capable of delivering the high-quality, superior-performing construction
outputs and related services catering to our client’s needs.
Conversely, steadfast dedication to the training of engineers and staffing ensures the acquisition of top-tier talent andesteemed business partners. Moreover, by championing the development of innovative construction techniques andtechnologies as a remedy for workforce shortages, we significantly bolster the Group’s productivity and competitive
advantage.

Policies / Commitments
Action Guidelines for Taisei: Promoting partnerships with subcontractors and suppliers, securing a pleasant working
environment
Human Resources Development Policy (Diversity & Inclusion Policy)
Declaration of Partnership Building
Medium-Term Business Plan (2021–2023): To enhance support for Soyukai member companies

Refer to:Action Guidelines for Taisei Personnel and the Taisei Group as a Whole

Medium-Term Business Plan

Human Resources Development Policy (Diversity & Inclusion Policy)
Declaration of Partnership Building

Goals and Targets
KPIs

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Milestone and Performance
In May 2021, in line with the new targets set by Nikkenren, we established the “CCUS Dissemination and Promotion
Roadmap for FY2021 to FY2023.”
We have been progressing well towards our annual targets. For this fiscal year, which is the last of the period, we areaiming for a 100% rate across three indicators: business operator registration, skilled worker registration, andaccumulation of employment history.
As of a survey conducted in March 2023, the rates stand at 95% for business operator registration, 88% for skilled worker
registration, and 87% for accumulation of employment history.

KPIs

We have formulated Roadmap to FY2024 for “addressing long working hours.” We set annual stepwise targets of “healthmanagement overtime hours (total of statutory overtime working hours and holiday working hours),” “regular leave andcompensatory leave,” and “closures of worksites.” Then, we have worked under the leadership of internal consultation
bodies including the Committee for the Reduction of Working Hours, etc.
The percentage of employees who took "regular leave and compensatory leave" for 104 days a year (equivalent to eightdays off every four weeks) was 98.2% in the Civil Engineering Division and 95.6% in the Building Construction Division.
Health management overtime hours were 720 hours/year, with 17.4% of personnel exceeding this amount. For closures ofworksites, 49.5% of the Civil Engineering Division and 26.6% of the Building Construction Division were closed eight days
every four weeks.

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All employees will continue to discuss, select, and implement specific actions to reduce working hours in accordance
withthe situation in their respective workplaces. We will also arrange the activities that have been effective in reducing
workinghours to be spread horizontally across the entire company and established as ongoing activities.

Refer to:Materiality and KPIs

Initiatives
United Nations Global Compact “Labor”
Overtime Work Reduction Guideline ([Nikkenren] Japan Federation of Construction Industry)
Plan to Realize a Five-day Working Week ([Nikkenren] Japan Federation of Construction Industry)

Refer to:Participation in Initiatives

Sustainability Governance and Oversight
Construction Career Up System (CCUS)
At Taisei Corporation, we are focusing on the dissemination and promotion of the Construction Career Up System (CCUS),
which enables us to objectively and continuously accumulate and confirm the experience and skills of each and every
construction engineer, which has been difficult to objectively grasp and visualize in the past, through cross-industrial, unified
rules

Efforts to Address Long Working Hours / Response to Closures ofWorksites on Weekends

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Taisei Corporation formulated Roadmap to fiscal 2024 for “addressing long working hours” with annual targets of “healthmanagement overtime (total of statutory overtime working hours and holiday working hours),” “regular leave andcompensatory leave,” and “closures of worksites.” We have made efforts under the leadership of internal consultation bodies
including the Committee for the Reduction of Working Hours and the Working Hour Reduction Promotion Committee. In
order to change employees' awareness and behavior, all employees are expected to discuss and carry out practicalmeasures to reduce working hours according to the conditions of individual workplaces. Activities that positively contributed
to addressing long working hours are shared across Group companies and continuously promoted to maintain momentum.

Activities / Efforts
Efforts to Address Long Working Hours

Refer to:Realization of an Attractive Working Environment That Is Good to Work in

Securing and Fostering Skilled Construction Workers
Taisei Corporation promotes the improvement of the working conditions of skilled construction workers by requesting partnercompanies to submit quotations and other documents that expressly state the appropriate labor cost (labor wage) that is inaccordance with the purpose of improving the labor wages of skilled construction workers and by also respecting such
documents, based on the Statement for Respecting Fair Labor Cost Estimation released by Japan Federation ofConstruction Contractors.

Securing and Developing Human Resources for Construction Workers

Establishment of Various Foremen Systems
At Taisei Corporation, an accreditation initiative has been launched to enhance the conditions for member construction
technicians.
In the Civil Engineering Division, aiming to bolster facets like quality, safety, and technology, we have introduced a reward
system to acknowledge exemplary civil engineers contributing to on-site projects at Taisei Corporation.
In the Building Construction Division, with the goal of elevating the construction management competencies of site

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supervisors, the “First-Class Foreman System” has been operational since 1995, and the “Special-Class Foreman System”
since 2015, emphasizing skill transmission and personnel training.

Data
System for reward to excellent civil engineering skilled workers, systems
for first-class foremen and highest quality foremen in building
construction

Time forCategory

Amount ofName of systempayment

certification/ Number of

Subject

certifiedStart ofsystempersons
Excellent Civil
Civil

Engineerengineering

Compensation¥ 2,000

1,274

January(annually)

2013

System (BMT*)

Construction
technicians meetingFirst-Class
Building

Foreman Systemconstruction(with some

¥ 2,000

833(annually)

revisions)
Building

Special-Class

construction

Foreman System¥ 4,000

certain criteria,
including certifications;
Nationwide

April
1995

100

Septmber(annually)2015*As of March 2023

Social Data

Copyright TAISEI CORPORATION All Rights Reserved.

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Ensuring Quality and Improving Technology

Policies and Basic Approach

Goals and Targets

Sustainability Governance and Oversight

Initiatives

Activities / Efforts

Data

Ensuring Quality and Improving Technology
Policies and Basic Approach
In its Quality Policy, Taisei Construction defines its critical mission as the efficient and ongoing delivery of high-quality
construction products and associated services to its clients and the broader society. Each division—Building Construction,
Civil Engineering, Design, Engineering, and Nuclear Facility—operates under distinct policies, pushing forward theirproduction activities effectively. Each division and affiliated company has achieved ISO 9001 certification. They implement
quality management, and both the Civil Engineering Division and Building Construction Division have formulated manuals
and operational procedures. We collaborate closely with all relevant departments to uphold stringent quality control, aim toeliminate any defects attributed to quality, carry out customer satisfaction surveys post-project completion, and prioritize
fostering stronger relationships with our clients.

Risks and Opportunities
If our commitment to quality assurance falls short, risks such as harming the health and safety of our clients due to quality
deficiencies and malfunctions may arise. This can also result in devaluation of assets, and there is the associated risk of
cost escalations and reduced productivity due to the need for rework or modifications. Furthermore, with the demographic
shifts of a declining birthrate and aging population, there is an impending risk of a decreasing pool of skilled technicians anda diminished labor force, leading to potential lapses in quality control.

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Conversely, adopting new technologies like automation and robot utilization, and leveraging digital technology to enhancequality control and productivity can bolster the Group’s competitive advantage. This not only enhances our corporate value
but also elevates our reputation among our stakeholders.

Policy / Commitment

Action Guidelines for Taisei: Pursuing customer satisfaction, ensuring and improving safety and quality
Quality Policy
Medium-Term Business Plan (2021–2023): Realize changes in production systems and work styles through DX

Refer to:Action Guidelines for Taisei

Quality Policy

Medium-Term Business Plan

Goals and Targets

KPIs / Performance

Building Construction Division

In the Building Construction Division, each branch conducts a questionnaire survey on customer satisfaction. The survey
questions are on a five-point scale, and include those on workmanship, usability, and worksite office management during
construction. The satisfaction rate in FY2022 was 85.9%.

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For low scoring items, we analyze their causes, establish countermeasures, and reflect them in post-construction review
meetings. In this way, we aim for further improvement and the establishment of good relationships with customers.

Civil Engineering Division

Calculated based on the owner’s construction evaluation scores as a metric, the satisfaction rate for FY2022 was 95.8%.
We also conduct interviews, and each branch shares these results in construction review meetings, aiming for
improvements.Both the head office and branches are united in their commitment to continually enhance customer
satisfaction.

KPIs / Performance

One of the KPIs used to gauge the outcomes of technological advancement is per capita productivity, calculated as net
sales divided by the number of staff. By making these outcomes transparent and fostering a heightened awareness of“productivity” amongst every employee, our entire group collaboratively revisits business processes to strive for enhanced
productivity.
For FY2022, the productivity figure stood at ¥67 million.

Initiatives
ISO9001

Refer to:Participation in Initiatives

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Sustainability Governance and Oversight
Toward an Effective System
Having reflected upon our failure to satisfy steel erection accuracy requirements highlighted last year, we are steadfast in
our dedication to bolstering mechanisms that prevent a reoccurrence.
This includes bolstering mechanisms to reliably operate the quality control process. All our staff members are recommitting
to the ethos of “TAISEI QUALITY—Quality is Our Pride”

and reinforcing the fundamental principles.

As part of our action plan, we have inaugurated a new Quality Control Division. Distinct from the Building Construction
Division and directly overseen by the president, its mandate is to rigorously uphold the quality control processes related tobuilding projects. This division, with its specialized focus on quality control supervision and monitoring, takes the lead inforestalling construction-related quality issues. They also ensure adherence to customer specifications and contracts. If andwhen quality issues arise during or postconstruction, the division steps in, offering expert oversight and guidance.
Specifically, the head office’s Quality Patrol, along with interim and final inspections, evaluates the implementation status of
the quality control processes from an impartial third party perspective, adhering to the Construction Operation Standards.
When on-site construction does not align with these standards or when issues arise, the site supervisor is given clear
directives and deadlines for rectifications. If these issues remain unaddressed, the branch receives orders to halt theconstruction and ensure necessary corrections.
Additionally, periodic reviews are conducted on the tasks of branch technical departments.
These checks and balances, combined with continual support and guidance, ensure the sustained effectiveness of ourquality control processes and offer invaluable assistance to dedicated quality control personnel at both worksites andbranches.

*TAISEI QUALITY®:
Our Group's activities for quality promotion are summarized into TAISEI QUALITY®. The Taisei Group employees are proud to dedicate to quality, and strive
to earn the trust of customers and society.

Quality Policy of each Division

Building Construction Division
Following the revision of ISO 9001 in its 2015 edition, we

have aligned the Construction Operation Standards as thebenchmark for our quality control manual. We champion quality control by executing workflows in accordance with thisstandard. Our divisional quality policies are centered on
caliber that cater to the expectations of clients andplace emphasis on nurturing enhanced relationships

consistently offering construction products and services of highsociety. We commit to ensuring customer satisfaction and trust andwith our clientele.

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Civil Engineering Division
Aiming to deliver superior civil engineering structures tailored to client needs, we harness our expertise and organizational
strength as a comprehensive construction entity. With the genuine and swift collaboration of everyone involved in a
project, we strive to achieve a standard of quality and service that resonates with client satisfaction. We also endeavor toenhance customer satisfaction by perpetually refining the efficiency of our quality management system, targeting its more
proficient application.

Engineering Division
The Engineering Division was established in 1968 as the first engineering division among general construction companies inJapan and has the longest history and a proven track record spanning more than 50 years. For more than 20 years since it
obtained ISO9001 certification in 1996, the first among all divisions in Taisei Corporation, it has engaged in quality
management activities, realizing customer needs and building the trust of many customers.
In 2020, the Engineering Division switched to the same certification body as the Building Construction Division and Design
Division, and further continues to take great strides as a division capable of satisfying requirements consistently from projectplanning to design and construction.
In order to achieve customer satisfaction, the Engineering Division upholds “continuously providing high-quality facilities andservices that satisfy customer needs” as its own quality policy under the corporate Quality Policy and engages in activities toimprove quality by establishing specific principles of conduct as follows:1

Precisely identify and address client requirements

2

Develop human capital capable of delivering innovative services

3

Adhere to all laws and regulations

4

Implement and continuously maintain a suitable quality management system

Design Division
Both the Design Division and its eight branch departments have collectively achieved ISO 9001 certification. This ensures aconsistently high standard of design quality across all our departments nationwide. In 2016, we founded the Taisei
Construction’s First-Class Architect Supervision Office, granting it independent authority to oversee construction projects.
With the swift advancements in ICT and the evolving nature of work, it is essential to reassess our systems to manage
emerging risks tied to these changes.
Back in 2002, our Design Division was a pioneer in the construction sector by securing the Information Security
Management System Certification (previously BS 7799, now ISO 27001). We are holistically advancing our quality
standards through ISO-driven initiatives spanning quality, environment, and information security.

Nuclear Facilities Division

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Under the umbrella of the Company’s Quality Policy, this division is committed to elevating the safety, reliability, andenvironmental preservation of nuclear-related facilities. This commitment extends to designing, surveying, researching anddeveloping, conducting demonstration tests, and offering technical support to nuclear facilities.
As required, we adhere to the Rules of Quality Assurance for Safety of Nuclear Power Plants JEAC 4111 (by the Japan
Electric Association), the Guidelines for Quality Improvement of Analysis Services Pertaining to Licensing at Nuclear
Facilities (by the Japan Nuclear Safety Institute), and the Quality Assurance Requirements for Nuclear Facilities NQA-1 (byThe American Society for Mechanical Engineers or ASME). We ensure alignment with the unique quality assurance
expectations of our clients, which include major electric power corporations.

Activities / Efforts

Productivity Improvement Initiatives
Taisei Corporation utilizes T-CIM® and BIM to manage the information obtained through planning, design, construction andoperation. We also established the DX Promotion Committee in fiscal 2020, and build a structure to work on DX on acompany-wide basis. We provide the best service and solution to each customer, while reviewing our business processes byvisualizing performance with productivity per person (sales/number of employees) as an indicator to raise each employee's
awareness on productivity. In this way, we are working together as one group to improve productivity.

T-CIM® is our proprietary system that integrates a construction system utilizing Information and Communications Technology CIM (Construction Information
Modeling) proposed by the Ministry of Land, Infrastructure, Transport and Tourism, with attribute information associated with a 3D model of each construction
project.
BIM, an abbreviation for Building Information Modeling, is a construction information database which links a 3D building model created with a computer andattribute information including the specification, layout and cost of building components and equipment.

Leveraging ICT to Realize Immediately Effective Productivity Improvements
Since FY2017, Taisei Corporation has been pursuing an initiative aimed at productivity improvement and technologicalinnovation based on ICT. We are striving to implement this initiative company-wide, with approximately 80 employees
responsible for its promotion assigned to the Head Office and branches. Apart from utilizing T-CIM® and BIM for managing
information obtained through planning, design, construction and operation, we make most of ICT as a measure to raise
production capacity at construction worksites in the most efficient and immediate manner. Specifically, mainly at worksites,
we steadily introduced a network called “Worksite Net,” which facilitates information sharing between personnel involved inprojects, both internal and external, as well as Field Pad®, which helps improve the efficiency of operations such as viewing
and recording construction management information.

Field Pad® is used for overall construction management operation including the storing and reporting of construction progress photos at worksites,
contributing to shortening work time, and increasing productivity.

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Innovation of construction production system with T-CIM®(Civil Engineering Division)
Since 2014, the Civil Engineering Division has been developing the T-CIM system that aims to improve productivity andquality at construction sites. Construction Information Modeling/Management (CIM) promoted by the Ministry of Land,
Infrastructure, Transport and Tourism (MLIT) since 2012 is a technology that links a 3D model with attribute information
including construction member specifications. Our proprietary T-CIM system, however, is characterized by the fact that it
does not require 3D modeling.
There are several types of T-CIM systems, including T-CIM /Concrete that supports general concrete works and T-CIM/Tunnel that supports specialized construction works, as well as other types of T-CIM systems specialized in different works
related to earthmoving, dams, shields, bridges, railways, marine engineering, soil decontamination and others. All of thesesystems allow users to view the final as-built image, quality information and progress information from anywhere by utilizing
cloud computing.
In particular, the T-CIM/Concrete system manages information ranging from mixing of fresh concrete* to concrete placing by
cloud computing over the Internet. The system allows users to view the progress status on a real-time basis and is being
deployed to not only civil engineering sites but also construction sites. The effectiveness of the system has been confirmedby the MLIT's Public/Private R&D Investment Strategic Expansion Program (PRISM) in FY2018/FY2019/FY2020 andreceived high acclaim.

*

Fresh concrete refers to soft concrete mixture before solidification. Mixing is the process to blend the ingredients of concrete so that they are evenly mixed.

Human Resources Development of the Next Generation of Engineers and
Woman Engineers

Building Meister System / HQ Staff's Coaching System(Building Construction Division)
The “meister system” and the “HQ staff's coaching system” were put into practice from 2009 as part of the “TAISEIQUALITY” activities to promote the acquisition of skills and expertise in order to securely pass along our technologies andknow-how, with the aim of strengthening productivity and the construction management system.
The employee's appointed as meister and the executive staff of the Building Construction Division, with abundant on-siteexperience, make actual visits to the sites and provide education and guidance on the skills and quality/site management
and other capabilities through OJT, in close contact with the young and middle-aged employee's.

Educational Supporter System (Civil Engineering Division)
Under the “educational supporter system” introduced in 2009, educational supporters appointed from among employee's
with experience as construction site managers check the progress of OJT education of young employee's and provide
support and guidance. The Civil Engineering Division strengthens employee's management capability to reinforce
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resources.” Specifically, under the goal of “increasing the employee's capabilities at production sites,” the “On the Job
Training (OJT) education” is introduced and operated to enhance the capabilities of process management, design,
estimation, negotiation and action, among others.

Promoting Female Participation through Kensetsu Komachi
Taisei supports the “Kensetsu Komachi” project of the Japan Federation of Construction Contractors in order to boost theactivities of female engineers as one part of its effort to promote an active role for women in construction workplaces. Since
2014, Taisei has provided opportunities for dialogue between executives and female engineers in its Civil Engineering andBuilding Construction Divisions in an effort to create a workplace environment in which women can thrive.
Through activities such as this, Taisei works to incorporate the perspective of women in its in-house operations in the belief
that this will create new value. Taisei also participates as a member of the Kensetsu Komachi Committee established by theJapan Federation of Construction Contractors and works to collect data on construction companies that are engaged inprogressive initiatives. We will continue to work to create a workplace environment in which the talents of female employees
are recognized and manifested.

The Kensetsu Komachi Empowerment Award was established by Nikkenren with the objective of hiring and retaining workers, advancing diversity, andrenewing the image of the construction industry for greater female participation in the industry.

Refer to:Human Resource Development

Promotion of Women's Participation and Advancement

Thorough information security management

Thorough management of customer information
To thoroughly manage information, as required by our customers, we establish security levels commensurate with thedegree of confidentiality of each construction, steadily share these levels with the relevant parties within the company, andappropriately manage customer information, based on the Guidelines for Managing Customer Information.

Improving the information security levels across the construction industry

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Taisei is engaged in activities to improve the information security levels across the construction industry, by taking part in the
Information Security Section of the ICT Promotion Subcommittee of the Japan Federation of Construction Contractors,
joining in the preparation of guidelines, pamphlets, posters, and videos, as well as lecturing at information security seminars.
As a unique undertaking for Taisei Corporation, we conduct annual information security training for certain contractors that
handle highly confidential construction information.
Additionally, to allow everyone to check the status of security measures of their computers, we provide free of charge a “PC
security diagnostic website,” jointly developed with a security vendor, and through joint use by Taisei Corporation and its
business partners and peers, we are aiming to upgrade not only our own security level but also that of the constructionindustry as a whole.

Refer to:Management of Information and Intellectual Property Rights

Data
ISO14001/ISO9001/ISO45001 Acquisition Status

TAISEICORPORATION

ISO9001

ISO14001

ISO45001

TAISEI CORPORATION

―

◯*1

―

Civil Engineering Division

◯

◯

◯

Building Construction Division

◯

◯

―

Design Division

◯

◯

―

Engineering Division

◯

◯

―

Nuclear Facilities Division

◯

◯

―

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ISO9001

ISO14001

ISO45001

TAISEI ROTEC CORPORATION

◯*2

◯

―

Taisei-Yuraku Real Estate Co., Ltd.

◯*3

◯*4

―

TAISEI U-LEC CO., LTD.

◯*5

◯*5

―

TAISEI SETSUBI CO., LTD.

◯*6

◯*6

―

SEIWA RENEWAL WORKS CO., LTD.

◯

―

―

J-FAST Co., Ltd.

◯

―

―

TAISEI (THAILAND) CO., LTD.

◯*7

◯*7

◯

―

◯

―

◯

―

―

◯

―

◯*8

TAISEI GroupTAISEI PHILIPPINE CONSTRUCTION
Overseas
Subsidiaries

INCORPORATED
VINATA INTERNATIONAL CO., LTD
PT. TAISEI PULAUINTANCONSTRUCTION INTERNATIONAL*1TAISEI CORPORATION acquires 100% of EMS. (Scope: The head office and all 13 branch offices)*2

Production engineering department acquired QMS.

*3

Taisei-Yuraku Real Estate Co., Ltd. acquires 100% of EMS.

*4

Building Management Headquarters acquired QMS (Scope: Building maintenance work of 5 Branch Capital area), Condominium management Business
Headquarters acquired QMS (Scope: accounting procedure application about Condominium Management), Kyusyu Bruch acquired QMS. (Scope: Building
maintenance work)*5

TAISEI U-LEC CO., LTD.acquires 100% of EMS&QMS.

*6

TAISEI SETSUBI CO., LTD. acquires 100% of EMS&QMS. (Scope: Head office and 10 Brunch)*7

TAISEI (THAILAND) CO., LTD. acquires both the UK certification (international standard) and Thai certification (Thai standard).

*8

PT.TAISEI PULAUINTAN CONSTRUCTION INTERNATIONAL also acquires have also acquired the SMK3 (Indonesian version ISO 45001).

Social Date

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Technical Development for Realizing a
Sustainable Society

Policies and Basic Approach

Goals and Targets

Sustainability Governance and Oversight

Initiatives

Activities / Efforts

Data

Technical Development for Realizing a Sustainable
Society
Policies and Basic Approach
The Taisei Group, in its Technology Development Policy, grounds its core strategy on realizing technological advancements
based on the priority challenges, business strategies, and the medium- to long-term vision set out in its Medium-TermBusiness Plan. Under the Medium-Term Business Plan (2021-2023), a primary focus is to “promote the technicaldevelopment to solve environmental and social issues through open innovation.” To this end, the Group is actively pursuingthe development and application of next-generation, high-performance ZEB, exploiting carbon-recycled concrete, andspearheading technologies expected to invigorate industries benefiting from a harmonious cycle between the economy andthe environment.

Risks and Opportunities
If we do not sufficiently engage in technological development for the realization of a sustainable society, there is a risk of not
being able to provide our clients with high-quality, high-performance construction products and associated services thatmeet their needs.
Conversely, pursuing innovation through the development and societal integration of technologies—whether to establish
new businesses and markets, address diverse sustainability challenges, or enhance quality, productivity, and safety—

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bolsters the Group’s competitive advantage. It also contributes to enhancing our corporate value but also elevating our
reputation among our stakeholders.

Policy / Commitment

Action Guidelines for Taisei: Action Guidelines for Taisei: Striving to create value, fulfilling social responsibilities
Policy on Intellectual Property
Policy on Technological Development
Medium-Term Business Plan (2021–2023): Promote technological development to solve environmental and social issues
through the use of open innovation

Refer to:Action Guidelines for Taisei

Policy on Intellectual Property

Medium-Term Business Plan

Goals and Targets
KPIs

Performance
The number of patent applications filed in FY2022 was 283 cases.

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To contribute to the development of industry, we are promoting management that emphasizes intellectual property. We are
implementing strategic management and utilization of intellectual property in general, including copyrights andconstruction and business knowhow in addition to patent rights.
Based on our strategy for intellectual property, our proactive efforts in rights establishment and utilization have resulted ina patent assessment rate of 87.7%. This figure is notably high when compared to the average rate of 74.7% for allindustry sectors over the past three years, as reported in the 2022 edition of the Annual Report of Patent Administration.
By creating intellectual properties with new value, we will contribute to society through the development of newtechnologies, technical support for workplaces, and the utilization of intellectual property through the tripartite integrationof our business strategy, research and development strategy, and intellectual property strategy.

KPIs

Performance

Improving ZEB performance is one of the priority issues in the Medium-Term Business Plan, and we are making every
effort to evolve and popularize ZEB/ZEF as an area where we can expect growth in the future. Thanks to our client’s
appreciation and understanding of our initiatives in renewable energy and other decarbonization measures, we securedorders for 10 net Zero Energy Buildings (ZEBs) in FY2022.

Refer to:Materiality and KPIs

Initiatives

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The Japan Intellectual Property Association

Refer toParticipation in Initiatives

Sustainability Governance and Oversight
Toward Realization of Innovation
Initiatives for ground-breaking value creation (innovation) are essential for corporate value to grow in the medium- to longterm. The mission of the Taisei Group is to contribute to the development of a resilient society where people can live affluent
and cultural lives. Moreover, our goal is to grow sustainably along with society through creating value that will contributetowards resolving the issues that our customers and society face. This will be conducted through the priority measures in
our Medium-Term Business Plan (2021–2023), which are “technical development contributing to industrial sectors expected
to grow, through a virtuous cycle for the economy and environment” and “technical development where the Company has acompetitive edge.”
Regarding the innovation activities on which we need to focus on over the next three years in the Medium-Term Business
Plan, we are making efforts towards an investment plan which includes business-related investments, technicaldevelopment, information, facilities, and human resources, which are decided at the Board of Directors. The investment
plans for each category are formulated with a detailed implementation plan for each fiscal year, and the progression of theplans is monitored by the Management Committee and the Board to enhance their efficiency.
Additionally, the Advanced Center of Technology takes the leading role in research and development as well as theimplementation of research results in “technical development,” which is the source of the Group’s competitive edge. For theconsideration and planning of various measures to promote innovative technical development, deliberations are made by
the division chiefs of civil engineering, construction, and other areas of focus along with sales and other related divisions at
the Technical Committee. This operations committee is an advisory body to the Management Committee that has the
President as the chairman and the Advanced Center of Technology as the coordinator. Reports from the TechnicalCommittee are submitted to the Management Committee and Board for approval and promotion.
Furthermore, in addition to our Group’s own technical development, we also step outside of our existing value chains andpromote joint research with different industries and collaborations with local communities. A special department within the
Advanced Center of Technology takes on the lead role for joint research with different industries, and another special
department within the Sustainability Division (Integrated) handles collaborations with local communities. With our sights set

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on future innovation of the value chain, we will continue to deepen productive relationships with our stakeholders, who shareand empathize with our aspirations, in order to reinforce our foundations for the long-term and sustainable creation of value.

Intellectual Property Strategy
Taisei Corporation has formulated the Policy on Intellectual Property, based on which we practice our Intellectual Property
Strategy.
We strategically manage and utilize all intellectual property including patents, copyright, construction and business knowhow to promote management that is focused on intellectual property. Regarding management of intellectual property, we
intend to improve operational efficiency through building a search function for our own patents and preparing a database formanaging patents.
We implement thorough risk management in all business processes to prevent and mitigate intellectual property-relatedrisks that may cause a material impact on business management, such as infringement of our rights or rights of others, andtechnology leakage. We have established the Rules for Handling Intellectual Property Information to ensure themanagement of classified information. We also take measures to reduce the risk of infringing the intellectual property rightsof third parties, such as making the technical departments and business departments thoroughly aware of other companies'
patent information.

Activities / Efforts
Research and Development Activities
In the Group Infrastructure Development Plan: Technology Development of the Medium-Term Business Plan, the Group has
identified as a key issue “To promote the technical development to solve environmental and social issues through open
innovation.” We are strategically investing management resources in “technical development contributing to industrial
sectors expected to grow, through a virtuous cycle for the economy and environment” as well as “technical development
where the Company has a competitive edge.”
Specifically, we are pursuing the development, efficiency, and cost reduction of new technologies in the following fields:
offshore wind power; logistics, people flow, and infrastructure; carbon recycling; housing and building, next-generation PV;
lifestyle-related industry; hydrogen; nuclear power; foods, agriculture, forestry, and fisheries; and resource circulation.
We are also developing special technology for applying to large projects and technology contributing to higher added valueand higher quality.

*Open Innovation refers to a methodology for innovation by mobilizing cross-organizational knowledge and technology.

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Taisei Advanced Center of Technology

Patents That Contribute to the Resolution of Social Issues
Article 1 of the Patent Act states that the “purpose of this Act is to encourage inventions by promoting the protection andutilization of inventions, and thereby contribute to the development of industry.” Taisei Corporation promotes business
management with a focus on intellectual property not only to secure its competitive advantage but also to achieve thisoriginal purpose, and strategically manages and utilizes all intellectual property including patents, copyright, construction
and business know-how.
In addition, we have been further enhancing the intellectual property capabilities of the entire Group by establishing systems
and exchanging information on intellectual property across the Group.
We also conduct training to ensure that employees are fully informed about this policy and utilize intellectual property
strategically in order to strengthen our competitiveness and improve our corporate value. In FY2021, we conducted
intellectual property courses for Group companies, technical departments in the head office and operations departments inbranch offices of Taisei Corporation as well as e-learning for all officers and employees, including the utilization of
application rights and a series of awareness raising campaigns about infringement.

For the Enhancement of ZEB Performance
A net zero energy building (ZEB) is a state-of-the-art building that achieves significant energy saving by using solar shading
and natural energy through ingenuity in construction planning, high heat insulation, and high efficiency. At the same time, it
greatly reduces annual energy consumption by generating energy through photovoltaic and other power generation
systems. By achieving ZEBs and making them popular, the energy supply demand structure is expected to fundamentally
improve. At the Taisei Group, we have set enhancement of ZEBs as a key issue in the Medium-Term Business Plan, and our
ZEB initiative is positioned to lead to the achievement of SDGs. As a promising sector to become a growth market going
forward, we will make full efforts to evolve and spread ZEBs.
Specifically, we are focusing on (i) the Message from the President development of ZEB (Zero Energy Building) and ZEF(net Zero Energy Factory), (ii) the promotion of green renewal ZEB initiatives, (iii) research and development for thecommercialization of environmentally friendly concrete, including carbon-recycle concrete that fixes CO2 inside concrete,and (iv) the promotion of “T-ZCB (Zero Carbon Building)” (aiming to conduct Japan's first demonstration at the Group's
facility), which will reduce CO2 emissions throughout the entire lifecycle of a building, from the procurement and construction
stages to the operation stage,to net zero emissions in total.

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Decarbonized Society

Taisei Corporation's Digital Transformation
In our Medium-Term Business Plan (2021-2023), we at Taisei Corporation recognize that we are heading “Toward an era
where digital transformation determines competitiveness.” As one of the key issues, we set the target of “To innovate
production systems, and reform workstyles through digital transformation (DX).” In this way, we are implementing companywide DX initiatives. Since the activity satisfied the certification standards set by the Ministry of Economy, Trade and Industry,
we obtained DX certification.
We will continue to working to achieve the medium- to long term vision TAISEI VISION 2030 “The Ever-Evolving CDE3
(cubed) Company: A pioneering corporate group contributing to the development of a resilient society where people can live
affluent and cultural lives,” and accelerating activities.

Refer to:See the Annual Report 2023 p.45-48 “DX”

Data
Research and Development Expenditure (Consolidation)

Research and development
expenses

FY2018FY2019FY2020

FY2021

FY2022¥12.4billion¥13.5billion¥14.2billion¥15.2billion¥16.8billion

Social Data

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Promotion of Supply Chain Management

Policies and Basic Approach
Activities / Efforts

Goals and Targets

Sustainability Governance and Oversight

Data

Promotion of Supply Chain Management
Policies and Basic Approach
For the Taisei Group, subcontractors, suppliers, and other business partners play a pivotal role as essential businesscollaborators in addressing environmental, human rights, and other societal challenges. In our “Action Guidelines for Taisei
Personnel and the Taisei Group as a Whole,” which emphasizes promoting partnerships with business associates, we arecommitted to forging fair and mutually trusting relationships. Aligned with our Declaration of Partnership Building announced
in 2020, we aim to amplify value and champion mutual growth and harmony throughout the entire supply chain.
To be specific, we are advancing our sustainability initiatives based on the Taisei Group Sustainable Procurement
Guidelines.
By enhancing the reach and understanding of these guidelines—hich outline collaborative efforts between the Group andbusiness partners to solve societal sustainability issues through our business—e endeavor to further our sustainability goals.

Risks and Opportunities
Efforts towards addressing sustainability challenges must be advanced not only within the Group but also throughout theentire supply chain. If these endeavors fall short, there is a risk of adverse impacts on our stakeholders due to potential
environmental degradation and human rights breaches within the supply chain. This could subsequently lead to diminishedcorporate value and our reputation among our stakeholders.
Conversely, initiatives aimed at resolving sustainability issues across the full supply chain help to achieve mutual growth andharmony with our business partners, further bolstering the Group’s productivity and competitive advantage.

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Policies / Commitments

Action Guidelines for Taisei: Promoting partnerships with subcontractors and suppliers, ensuring fair business transactions
Fundamental Policy on Sustainable Development
Procurement Policy
Human Rights Policy
Declaration of Partnership Building
Taisei Group Sustainable Procurement Guidelines
Green Procurement Guideline
Medium-Term Business Plan (2021–2023): To promote the supply chain management aimed at solving environmental andsocial issues

Refer to:Action Guidelines for Taisei Personnel and the Taisei Group as a Whole
Fundamental Policy on Sustainable Development
Human Rights Policy

Procurement Policy

Declaration of Partnership Building

Taisei Group of Companies Sustainable Procurement Guidelines

Medium-Term Business PlanBrochure "Promotion of Sustainable Procurement”

Goals and Targets
KPIs

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Performance
Suppliers' conformity rate with the Taisei Group Sustainable Procurement Standards for FY2022 was 91.3% for Taisei
Corporation alone.

Refer to:Materiality and KPIs

Human Rights Due Diligence

Initiatives
The Taisei Group participates in the Human Rights Due Diligence (HRDD) Subcommittee and Supply Chain Subcommitteeof the Global Compact Network Japan (GCNJ) which is made up of companies participating in the United Nations Global
Compact. In 2022, Taisei participated as a member company in the Japan Business Initiative for Biodiversity (JBIB) thatworks to ensure biodiversity, and served as a member of the working group that studies supply chains. Since 2019, Taisei
has also been registered with EcoVadis as a supplier and has disclosed required information.

United Nations Global Compact, “Human Rights,” “Labor,” “Environment,” and “Anti-Corruption”
Supply Chain Sub-Committee (GCNJ)
HRDD Sub-Committee (GCNJ)JBIB (Japan Business Initiative for Biodiversity)
EcoVadis

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Participation in Initiatives

Sustainability Governance and Oversight
Sustainable Procurement Promotion Framework
The Sustainable Procurement Council made up of responsible personnel from the Sustainability Management Promotion
Division and relevant divisions (Civil Engineering, Building Construction, Procurement, and Safety Administration) studies
implementation plans relating to supply chain management and sustainable procurement, confirms the results ofimplementation, and studies improvements to activities. The Council is under the direction of the Chief Sustainability Officer(CSO), and it reports to, and is reviewed by, the Sustainability Committee (a committee within the Board).

Officer in charge

Chief of Sustainability Division (Integrated) (CSO)

Meeting body

Sustainability Committee (Committee within the Board)-Important matters related to supply management that have been deliberated areproposed/reported to the Board via the Sustainability Committee.

Secretariat

Sustainability Planning Department, Sustainablilty Management Promotion Division

Practical Work

Sustainable Procurement Council

Organization-The Sustainable Procurement Council revises the Taisei Group of Companies Sustainable
Procurement Guidelines and plans and conducts training sessions, briefings, field surveys,
opinion surveys and so on.

Taisei Group of Companies Sustainable Procurement Guidlines
To contribute to resolve social issues through business activities, including issues relating to the environment and humanrights, Taisei established the Taisei Group of Companies Sustainable Procurement Guidelines summarizing matters to be
implemented jointly by the Taisei Group and its subcontractors and suppliers (established in 2014 as CSR Procurement
Guidelines, and revised in April 2022 as the Taisei Group of Companies Sustainable Procurement Guidelines). Taisei works
to ensure that all subcontractors and suppliers thoroughly understand the Guidelines and conduct sustainability activities inaccordance with these Guidelines. Taisei also conducts training and online learning courses for subcontractors andsuppliers relating to the Guidelines. We also ask business partners to provide training and guidance to their employees andwork to ensure a thorough understanding of the Guidelines throughout the entire supply chain.
To ensure even greater awareness and compliance the Guidelines, beginning in FY2022 the essentials of the Guidelines
have been included in contracts concluded with subcontractors and suppliers to seek their understanding and cooperation.
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The content of the Guidelines is reviewed on an ongoing basis to ensure that it reflects global and societal trends relating toenvironmental and social issues.

*Supplier Reference :- Scope of supplier:Main Group Companies (Taisei Rotec Corporation, Taisei-Yuraku Real Estate Co., Ltd., TAISEI U-LEC CO., LTD., TAISEI SETSUBI CO., LTD., TAISEIHOUSING CORPORATION, SEIWA RENEWAL WORKS CO., LTD., and J-FAST Co., Ltd). Souyu-kai Mamber Companies- Souyu-kai:
The organization of Taisei's key subcontractors (about 620 companies)- Safety, Sanitary, and Environmental Cooperation Association:
Association to which all the companies that enter Taisei's works sites belong

Refer to:Taisei Group of Companies Sustainable Procurement Guidelines
Brochure "Promotion of Sustainable Procurement”
Cooperation with suppliers based on Green Procurement Guidelines

Activities / Efforts
Activities to Promote Sustainable Procurement

Employee training
In September 2022, Taisei published the TAISEI Sustainability Handbook for training Group employees, and distributed it to
all employees of Taisei and Group companies. The Handbook is designed to ensure a thorough awareness of theFundamental Policy on Sustainable Development, its Human Rights Policy, the Taisei Group of Companies Sustainable
Procurement Guidelines and so on. Taisei has also conducted briefings for individual departments and exchanges of views
to ensure understanding.
Moreover, briefings on sustainable procurement are also held each year for the executives of the Taisei Corporation
Procurement Division and the persons in charge of procurement at individual branch offices. In addition, online learning
courses on the Taisei Group of Companies Sustainable Procurement Guidelines as well as global social issues in the supply
chain relating to the environment, human rights, labor issues and so on are conducted available to all employees including
those in the Procurement Division.

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Briefings for Subcontractors and Suppliers by Chief of Branch
At the annual Safety Conference and other venues, each of the chiefs of all 12 branches in Japan explain the importance ofsustainable procurement to subcontractors and suppliers and ask for their corporation in promoting activities at eachcompany.

Supplier Support and Capacity-Building
The “Soyukai” is an organization of key subcontractors among the Taisei Corporation partner companies. Multiple councils
have been established at the national Soyukai Federation as well as the branch Soyukai made up of members at individual
branches. These councils meet regularly to hold exchanges of views between Taisei and member companies and to conduct
training. These exchanges of views deal with social issues such as the need on the part of partner companies to secureleaders and successors, the need to improve benefits and so on, and the results are reflected in various measures.
Moreover, Youth Management Study Groups made up of young managers who will be the leaders of next generation havebeen established as subsidiary organizations of the branch Soyukai. These study groups hold workshops and get-togethers
and so on to improve the quality of the personnel who will serve as managers and top Soyukai officials.
In addition, sustainability training sessions for subcontractor and supplier owners have been held at the annual Safety
Conference and other venues to provide training in social issues, including issues relating to the environment and humanrights. Online learning courses relating to the Taisei Group of Companies Sustainable Procurement Guidelines are alsooffered to subcontractor and supplier employees.
-

No. of branches at which training in sustainability activities has been conducted for subcontractors and suppliers
Held in January 2023 at all 12 branches in Japan-

No. of individuals and companies attending online learning courses in sustainable procurement
January - February 2023 2,579 individuals 1,142 companies
January - February 2022 7,391 individuals 3,200 companies

Holding of Sustainable Procurement Briefings Overseas
Sustainable procurement briefings were conducted in Taiwan (2015), Singapore (2017), Vietnam (2018) and Myanmar(2019) to explain the Taisei Group's policy and activities regarding sustainability issues and request cooperation, and toensure prevention of forced labor, child labor and other human rights violations. The briefings were held for Taisei
Corporation construction site offices and overseas subsidiaries as well as local subcontractors and suppliers.
No briefings were held beginning in 2020 due to the effects of the COVID-19 pandemic. However, briefings were resumed in
2023 with a briefing held in March in the Philippines.

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Briefings for business partners at the site office of North South Commuter Railway Project in the Philippines

No. of participants at sustainable procurement briefings in the Philippines (March 1-3, 2023)

Taisei construction site office: 24

employees
Overseas subsidiary employees : 12
Local subcontractors and: 42

suppliers’ employees

Risk Management and Risk Assessment

Sustainability Activity Survey (Self-Assessment) for Subcontractors and Suppliers
Since FY2016, Taisei has conducted regular opinion survey by self-assessments to confirm the status of sustainability
activities, including activities relating to the Taisei Group of Companies Sustainable Procurement Guidelines and theirobservance by subcontractors and suppliers. Beginning in FY2022, these assessments have been conducted annually.
Moreover, based on the results of self-assessment, TAISEI visits and audits companies whose status of activities relating toenvironmental, human rights, labor and other sustainability issues needs to be confirmed. On these occasions, exchangesof views are held with company owners and best practices are shared in order to effect improvements. Taisei is also working
to improve the overall level and enhance activities throughout the entire supply chain, such as by asking subcontractors andsuppliers to provide education and guidance for each of their business partners.

Results of supply chain self-assessment (October - December 2022)
1. Results of self-assessment
Target companies:

3,006

Responding companies: 1,590 (percentage of companies surveyed on a contract amount basis for contracts signed
in FY2021: 79%)
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Purpose of survey:

To confirm progress of the following matters established in the Taisei Group of Companies
Sustainable Procurement Guidelines

Survey method:

Progress of the following items, as set forth in the “Procurement Guideline”(1) Compliance with Laws, Regulations and Social Norms*1(2) Fair Business Dealings*1(3) Respect for Human Rights(4) Promotion of Safety and Hygiene(5) Commitment to Environmental Conservation(6) Ensuring and Improving Safety and Quality(7) Information Disclosure(8) Commitment to Information Security(9) Activities Contributing to Society(10) Business Continuity in Times of Disaster(11) Promotion of Sustainable Procurement*1 (1) and (2) assess risks, including those of comprehensive anti-corruption, such as bribery and unfair competition.
* To control and manage subcontractors and suppliers' impacts on the environment, we request compliance and reportingwith regard to the following activity statuses.
1. Determination of energy usage and efficient use
2. Efficient use of resources
3. Preservation of water resources
4. Procurement of construction equipment and materials with low environmental load
5. Consideration for biodiversity, etc.
In addition, if the results of opinion surveys indicate that improvements are needed, an inspection visit is conducted for that
supplier and improvements are requested.

Average score:

3.6 points(Conformity rates with the Taisei Group of Companies Sustainable Procurement Standards:
91.3%)

Feedback:

The tabulated results were posted on the website.

2. Visits and audits based on self-assessment results (December 2022 - January 2023)
Targetcompanies:
Description:

20 companies (conducted at Tokyo, Yokohama, Chiba, Kanto, Nagoya, Kansai and Shikoku)
Progress was confirmed through interviews, etc. and exchanges of views were held with company
owners, etc. and best practices were shared in order to effect improvements.

Survey results:

Based on the information obtained from surveys and interviews, there were no cases of humanrights violations.

Survey of Foreign Technical Interns
Out of consideration for the possibility that foreign workers may be placed in a vulnerable position, the Taisei Group
designates human rights problems relating to foreign workers as a priority issue for human rights due diligence, and works
to prevent and reduce human rights risks pertaining to foreign workers. Particularly with regard to foreign technical interns,
we work to foster an environment in which everyone is able to work with peace of mind, by establishing a procedure for
accepting technical interns to ensure smooth acceptance at workplaces, and by conducting surveys of owners with regard toacceptance status and interviews with the interns themselves and so on. In the opinion survey conducted in FY2022,
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responses were received from 251 companies that have hired foreign technical interns. For 16 of the responding
companies, Taisei checked the nature of the activities being conducted by responded documents, and as assessment
feedback following the opinion survey, five companies were visited to conduct interviews on the status of activities as well as
to exchange views with the owners, etc. To the degree that could be determined through the results of the surveys andinterviews, no major human rights risks relating to the training were determined (improper collection of money or deduction
from salary, non-payment of salary, or other negative impacts on human rights).

Interviews of foreign technical interns

Survey of company owners regarding acceptance of foreign technical interns
Responding companies: 251
Description:

The status of activities was confirmed by means of interviews, etc. and exchanges of views
with the owner, etc. were held and best practices were shared.
(1) Checking that employees are in possession of their own passports and other items(2) There has been no inappropriate collection of monies such as guarantee deposits(3) There are no discrepancies between the prepared technical intern plan and the actualwork(4) Appropriate payment of wages and deductions(5) Living environment, including dwellings(6) Status of social insurance enrollment(7) Assignment of instructors(8) Status of physical checkups(9) Troubles due to the internship or living arrangements.

Feedback:

The tabulated results were posted on the website.

Response Regarding Sustainable Construction Equipment and Materials Procurement
Traceability Survey

Diverse raw materials including wood and stone are used in the construction industry. For raw materials whose place oforigin is a developing country, there is increasing societal concern regarding illegal sourcing (cutting), oppression of native
populations, forced labor and child labor and other legal and regulatory violations, environmental destruction, human rights
violations and so on.
For this reason, in January 2019 Taisei conducted a questionnaire survey of its major material suppliers, in order to confirm
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their supply chains from raw material sourcing through delivery at worksites, and to determine whether there had been any
legal and regulatory violations, human rights violations, or other violations by the overseas companies in these supply
chains.
Based on the following survey results, in FY2019 as a follow-up survey we visited companies that submitted responses
relating to lumber, stone and tile, as well as wholesalers and trading companies making up the supply chain, to explain our
Procurement Policy and the Taisei Group CSR Guidelines (now the Taisei Group of Companies Sustainable Procurement
Guidelines) and to require their understanding regarding sustainable procurement activities. At companies where interviews
were conducted, we also held exchanges of views regarding the current status and future issues relating to traceability.
* Traceability: Releasing (making traceable) production histories and distribution channels

Overview of traceability survey (January 2019)
Target companies:

43 major material suppliers dealing in lumber, stone, porcelain (tile), sand and aggregate(ready-mixed concrete), aluminum (joinery and hardware), steel (reinforcements and steel
beams) and copper (wiring)

Description:(1) Check of company names and addresses of trading companies, manufacturers,
wholesalers etc. in the supply chain from extraction of raw material to delivery to construction
site(2) Check of legal violations by foreign companies in the supply chain as well as forced labor,child labor, long working hours, discrimination etc., consideration for employee health andsafety, payment of appropriate wages, and infringements of the rights of indigenous people

Survey results:(1) For 32 out of 43 companies (lumber, stone, sand and aggregate, steel), the supply chain
back to the raw material extraction company was identified.
(2) There were no inappropriate cases of legal violations, etc. by foreign companies in the
supply chain.

Survey of lumber procurement
In view of the importance of conserving forest resources and forest environments and ensuring sustainable procurement,from November 2022 through January 2023 a survey of lumber procurement by an opinion survey was conducted for
subcontractors and suppliers dealing in major wooden products. Based on the results of the opinion survey, subcontractors
and suppliers were visited and interviews regarding the status of activities and exchanges of views with owners, etc. wereconducted.
The Taisei Group will continue to determine the status of lumber procurement and make improvements as needed in orderto minimize the negative impact on forest resources and forest environments and achieve sustainable lumber procurement.

Survey of lumber procurement (November 2022 - January 2023)
Target companies:

34 companies (companies dealing in wooden furniture, wooden joinery, wood finishingcarpentry work, formwork construction and other major wood products having a trading
volume above a certain level)
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Responding companies: 32 companies (percentage of companies surveyed on a contract amount basis, based onwooden product contract sums for contracts signed in FY2021: 69%)
Description:

14 companies were visited and interviews regarding the status of activities and exchanges ofviews with owners, etc. were conducted.

Refer to:Appropriate Wood Procurement

Environmental Due Diligence

Due Diligence for New Subcontractors and Suppliers
As one part of supply chain management, when Taisei Corporation begins trading with new subcontractors and suppliers, it
strives to familiarize the company with the Environmental Policy and Human Rights Policy of the Taisei Group as well as theTaisei Group of Companies Sustainable Procurement Guidelines, etc., and to confirm the status of efforts on the part of the
new subcontractor or supplier relating to environmental issues, human rights and other social issues, health and safety,
legal compliance, comprehensive efforts to prevent corruption and so on, by a self-assessment. If needed, interview surveys
and exchanges of views are conducted in order to effect improvements.
The results for self-assessment were as follows:
4QFY2022 50 new subcontractors and suppliers
1QFY2023 85 new subcontractors and suppliers

Efforts to Enhance Productivity through Linkage and Collaboration with Business Partners
Primarily through Production Process DX based on the key issue identified in the Medium-Term Business Plan, "To innovate
production systems, and reform workstyles through digital transformation (DX)," Taisei Corporation works as one with our
supply chain to improve aspects such as productivity, safety, and quality at construction worksites.
Information is shared at each stage, including design and construction, by utilizing BIM/CIM data linkage with subcontractors
and suppliers as well as on-site management systems such as T-BasisX for construction projects and T-iDigital Field® forcivil engineering projects. This has successfully reduced rework and menial tasks, in addition to shortening construction
periods, and we have been promoting development of efficient, high-quality construction production systems.
Furthermore, we have also been promoting application of DX such as the Face Recognition Gate Management System andthe Safety Documentation System, in our efforts for efficient labor management and safety documentation at worksites, aswell as the cooperative operation control system T-iCraft® of the automatic construction machine for civil engineering
projects T-iROBO® series.
Moreover, in our efforts beyond our DX initiatives, we are making efforts to improve productivity and safety with the supply
chain by applying secondary concrete products (precast) for concrete construction, along with other measures.

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Refer to:
Productivity Improvement Initiatives

Data

Social Data

Copyright TAISEI CORPORATION All Rights Reserved.

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Contribution to Local Communities

Policies and Basic Approach

Sustainability Governance and Oversight

Activities / Efforts

Contribution to Local Communities
Policies and Basic Approach
In its Taisei Vision 2030, the Taisei Group outlines its medium- to long-term vision as "a pioneering corporate groupcontributing to the development of a resilient society where people can live affluent and cultural lives" and includes amongits goals the achievement of a "Sustainability Transformation (Sx)" that will resolve sustainability issues through its core
construction industry activities.
As a basic approach to deploying these activities, Taisei has included "Communication with the Local Community" in its
Group Action Plan and works to establish a good relationship with local communities. Through our branches, sales offices,
construction sites, technology centers and so on in Japan and other parts of the world, we strive to conduct activities that will
make a social and cultural contribution while prioritizing the building of relationships of trust with regional and local
communities.
In addition, we indicate our approach in "Technical development for realizing a sustainable society," one of the materiality
factors relating to the Sustainable Development Goals (SDGs), and we provide support to researchers to contribute to thedevelopment of academic research and work to resolve issues facing society through technical development that will lead tothe resolution of sustainability issues. Taisei places particular emphasis on the three areas of "promoting coexistence withlocal communities," "conducting environmental preservation efforts" and "teaching the next generation and supporting
culture and the arts," in an effort to promote local communities and resolve sustainability issues.

Refer to:Action Guidelines for Taisei Personnel and the Taisei Group as a Whole

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Sustainability Governance and Oversight
Collaboration with Stakeholders and Our Major Initiatives
Taisei promotes two-way communication with local communities and conducts community investment and autonomous
volunteer efforts to promote investment and development and create local jobs. In addition to establishing a leave ofabsence and vacation time mechanism to create a workplace environment that makes it easy for employees to engage involunteer activities in local communities, Taisei has also introduced an awards program to recognize the activities of
employees engaged in disaster recovery efforts.
Moreover, Taisei works to provide improved value for the regional community and promote local communities throughcooperation and collaboration with various stakeholders that include customers, local governments, Care International
Japan (an international assistance NGO), the Council for Better Corporate Citizenship (CBCC), the Japan NPO Center andother outside organizations and public and private entities. Through its membership in and support of various organizations,
Taisei works to help resolve sustainability issues.
As a company that conducts business activities in various countries and regions throughout the world, Taisei endeavors to
help to achieve regional sustainable development by hiring local workers in these regions and purchasing locally and so on.

Donations to activities that contribute to society and culture
At its branch offices, sales offices, construction sites and technical centers both at home and abroad, Taisei places particularemphasis on the three areas of "promoting coexistence with local communities," "conducting environmental preservation
efforts" and "teaching the next generation and supporting culture and the arts," and actively works to conduct activities tosupport local communities.
In addition, since it joined the Keidanren 1% Club of the Japan Business Federation, Taisei has provided funding equivalent
to approximately 1% of its current earnings to fund activities that contribute to local communities.
As a result of these activities, the amount of social contribution expenditures for FY2022 totaled 673 million yen (the ratio ofsocial contribution expenditures to ordinary profit was 1.4%).

Refer to:“ESG Data”

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Achieving a Society Free From Poverty
In order to manage the risks of the spread of HIV among workers of large-scale construction sites which might trigger adecline in the labor force and productivity as well as a market contraction and instability, Taisei instituted the HIV/AIDS
Prevention Program for the Can Tho Bridge Construction Project (Bridge to Health Project) in 2006 over a period of two
years to prevent HIV infection. Since 2008, Taisei has continued to provide donation assistance as a corporate member toCare International Japan (hereafter "CARE"), which strives to achieve "a world of hope, inclusion, and social justice, where
poverty has been overcome and all people live in dignity and security" from the standpoint of child labor, educational
opportunities and educational disparities, and development assistance.
CARE Japan is a member of the NGO CARE International, which carries out humanitarian aid activities in over 100
countries worldwide with the goal of creating a world without poverty by providing emergency relief aid during disasters,
supporting agricultural water enhancement projects, and helping empower women and girls. CARE International has offices
in over 100 countries, and provides specialized, long-term, comprehensive support not only in education, but also in theareas of empowerment, health, water and sanitation, environment, and community development.

Refer to:“NGO Care International Japan”[ Local Society ]Global Health Maintenance Activities[ Academic/Cultural Factors ]Establishment of the “Taisei Corporation International Student
Scholarship”
As a company with extensive business operations in Malaysia, Vietnam, Indonesia, Taisei Corporation provides Scholarshipsupport to foster reciprocal understanding between Japan and find solutions to issues affecting the community in Japan.
We established the Taisei Foundation in March 2017 in order to support the researchers who are realizing the Taisei Group
Philosophy.
In FY2022, in the fifth group, we selected and provided scholarships to one student from Malaysia, four students from
Vietnam and one student from Indonesia.

[ Local Society ][ Environmental Protection ]Grants from the Taisei Corporation Public Trust of Funds for Natural andHistoric Environments

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To ensure the health and sustainable growth of the global community, it is necessary to conserve and restore naturalenvironments as well as conserving and using historical buildings and other historical and cultural environments. The Taisei
Corporation Public Trust of Funds for Natural and Historic Environment provides grants for projects that contribute to theconservation of natural environments, historical buildings and so on that are the shared assets of humanity both present andfuture, in order to pass these assets on to future generations and preserve the health and cultural life of humanity.

[ Local Society ]Support for Bread Sales as a Practical Activity Helping to Achieve
Independence of People with Disabilities
At the Taisei Advanced Center of Technology, weekly assistance for bread sales is provided to the training program toachieve independence of people with disabilities at the local activity home "Hikari" in Higashi Totsuka. Tours of the Center's
activities are also provided for local elementary, junior high school and other students, as well as members of the generalpublic.

[ Environmental Protection ][ Local Society ]The Satoyama Woodland Preservation activities
Since 2007, Taisei Group has participated in the Tokyo Greenship Action Sustainability program conducted by the Tokyo
Metropolitan Government, working together with local organizations, NPOs and so on to preserve the mixed forest
satoyama and other natural environments in the Nanakuniyama Greenery Preservation Area in Machida, Tokyo.
Employees put in physical effort to participate in building a safe and secure community, which also helps to broaden
communication with the local community.

[ Environmental Protection ]Support for Animal-pathway & Wildlife Association and Dormouse &Wildlife Institute

Refer to:Cooperation with Stakeholder

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[ Environmental Protection ]Environmental Contributions through the “Taisei 1-TonClub”

Refer to:Cooperation with Stakeholder[ Environmental Protection ]Support for the Borneo "Ongaeshi" (Rewarding) Projectusing Vending
Machines Equipped with a Donation Function
Taisei has installed vending machines that are equipped with a donation function at its head office and branch offices, inorder to donate a portion of sales to the Borneo Conservation Trust Japan (BCTJ) NPO. This is in support of the Borneo"Ongaeshi" (Rewarding) Project whose goal is to protect the Borneo elephant, a species that has become endangered dueto the reduction of tropical rain forests in Borneo. In the 13 years since the machines were installed in 2010, donations
amounting to JPY 33 million have been collected (as of March 2023).

[ Academic/Cultural Factors ]Special Lectures at Yokohama National University
The Taisei Advanced Center of Technology holds special lectures each year at Yokohama National University. These special
lectures are held 13 times each year for students in their 3rd year or higher of study of the university's College of Urban
Sciences.
Beginning in 2020, one year after the Comprehensive Partnership Agreement was signed, a new Cross Appointment
Program was employed, and this has been confirmed to further strengthen cooperation and promote research. As a result of
this program, Yokohama National University faculty members can also serve as Taisei technical advisors, and this is
expected to accelerate joint research in this field.

Major achievements
No. of courses

13 Times

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Major course

Latest examples of national civil engineering projects and large-scale building construction, as

content

well as disaster prevention activities and activities to resolve environmental issues, andintroduction of the technologies that made these possible. In addition, examples of thecontributions of construction projects to society and engineer ethics. In addition to lectures,site visits and visits to technical centers are also conducted.

No. of technicaladvisors: 13 people (number of instructors)

No. of students: 31 people (FY2022)

Cumulative no.

2022: 31 peopleof students

2021: 33 people

since 20192020: 24 people
2019: 38 people(Prior to 2018, classes were held, but the number of students is unknown, so only the figures
since FY 2019 are noted here.)[ Academic/Cultural Factors ]Grants Provided by the Taisei Foundation
We established The Taisei Foundation (general incorporated foundation) in March 2017. To support researchers who realize
the Taisei Group Philosophy “To create a vibrant environment for all members of society,” we provide funds for academic
research in fields including construction, civil engineering, development, energy, the environment, and disaster prevention.
Each year a public invitation is issued for research projects that are eligible to receive grants.

[ Academic/Cultural Factors ]Operation of “Galerie Taisei” to Spread Construction Culture

Refer to:“Galerie Taisei”

Corbusier's works of art in Le Corbusier's space" (video: English subtitled version)[ Academic/Cultural Factors ]Environmental Social Governance Report 2023

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Participation in “Riko-challe” to Encourage Women to Enter STEM Fields
Since 2015, Taisei has supported the "Riko Challenge" (“Riko-Challe”), a program to encourage more women to enter thefields of science and technology (riko in Japanese). The program is designed for female elementary, junior high and highschool students and is jointly sponsored by the Gender Equality Bureau Cabinet Office, the Education Policy Bureau of the
Ministry of Education, Culture, Sports, Science and Technology (MEXT), and the Keidanren (Japan Business Federation).
As part of this effort, Taisei participated in the “Summer Riko-Challe: Riko Work Experience” event.

Copyright TAISEI CORPORATION All Rights Reserved.

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Governance(G)Organization Governance/
Fair Operating Practices

Corporate GovernanceRisk Management

Policies and Basic Approach

Policies and Basic Approach

Sustainability Governance andOversight

Sustainability Governance andOversight

Thorough Compliance /Restructuring of the Group
Governance System
Policies and Basic Approach
Goals and Targets

Activities / Efforts

Activities / Efforts
Initiatives

Data

Data
Sustainability Governance andOversight
Activities / Efforts
Data

Management of Information andIntellectual Property Rights
Policies and Basic Approach
Goals and Targets
Initiatives

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Sustainability Governance andOversight
Data

Copyright TAISEI CORPORATION All Rights Reserved.

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Corporate Governance

Policies and Basic Approach

Sustainability Governance and Oversight

Activities / Efforts

Data

Corporate Governance
Policies and Basic Approach
The Taisei Group’s fundamental approach to corporate governance is to ensure the swiftness, appropriateness, fairness,and transparency in management decision-making in order to earn the trust of society while pursuing sustained
development as a business.

Refer to:
Corporate GovernanceCorporate Governance Report

Fundamental Corporate Governance Policy

Sustainability Governance and Oversight
Overview of Corporate Governance System

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Taisei Corporation has chosen a company structure with an Audit & Supervisory Board. The board of directors (the “Board”)
focuses on the Company’s sustainable growth and the enhancement of corporate value in the medium-to-long-term. Its
primary roles are: (i) to indicate the future directions from wide viewpoints in respect of the corporate strategy, (ii) toestablish an environment that supports appropriate risk-taking by the senior management, and (iii) to effectively oversee themanagement and Members of the Board from the independent and objective viewpoints. The board comprises twelve (12)members: eight (8) from within the Company and four (4) external members. These external members of the Board,consisting of three (3) men and one (1) woman, provide an objective perspective, enriching board deliberations with diverse
views and strengthening management oversight.
To invigorate its operations, the Board has established several internal committees: the Governance System Review
Committee, the Executive Personnel Committee, the Remuneration Committee, and the Sustainability Committee. The
Management Committee, serving as the highest decision-making body on the execution side, deliberates and resolves
business execution matters delegated by the Board. Chaired by the President, the Committee includes eleven (11) members
chosen by the Board.
Furthermore, the Company has set up the Sustainability Promotion Committee and the Risk Management Committee.
These operational committees deliberate on matters concerning consultations with the Management Committee and thePresident. To ensure thorough compliance, the Compliance Committee, chaired by an external expert, has been established
as a special committee to address consultations with the President.
The Audit & Supervisory Board receives reports from each member about the status and outcomes of their audits. They
discuss and decide on statutory issues and those related to the performance of Audit & Supervisory Board members’ duties.
Periodic reports on audit plans and results are also received from both the internal Auditing Department and the external
Accounting Auditor. This board includes six (6) members: two (2) internal and four (4) external, ensuring a neutral andobjective oversight mechanism with the help of External Audit & Supervisory Board Members who possess specialized
knowledge and maintain a high level of independence.

Evolution of the Company’s Governance

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Corporate Governance Structure (As of July 1, 2023)

Committees within the Board (As of July 1, 2023)*Please refer to the following links for details on the chairpersons and members of each committee.

Refer to:Committees within the Board

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Information about Management Menbers

Skill Matrix

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Refer to:
Directors, Officers

Election, Dismissal, and Development Plan of Executives
When nominating the Member of the Board candidates and appointing executive officers, we consider qualifications andoverall balance based on individual backgrounds, achievements, personalities, knowledge, experience, and abilities.
Additionally, we take into account diversity aspects, including gender, international exposure, career history, and age. Our
aim is to select individuals who can contribute to the sustainable growth of the Company and enhance its value in themedium-to-long-term.
Furthermore, the Board identifies skills essential for achieving medium- to long-term objectives and the Medium-TermBusiness Plan. Nominations for Board membership are based on these identified skills. If the qualifications expected at thetime of election are not recognized, the possibility of dismissal is considered.
Regarding the development plan for executives, we identify and nurture management candidates to ensure their retention
and commitment. Our training programs focus on equipping them with a broad understanding of the external business

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environment and proficiency in corporate governance and management strategies.
In the program, we offer opportunities to gain insights from the management perspective from the early stages, such as
participating as observers in important meetings including Management Committee, and organizing sessions to exchange
opinions with external Members of the Board. By attending externally organized training sessions, our management
candidates get the opportunity to interact with leaders from various industries, aiming to broaden their knowledge andnetwork. We are actively working to develop this approach systematically.

Support System for External Executives
The Secretarial Department supports our External Members of the Board, while the Audit & Supervisory Board Members’
Department aids our External Audit & Supervisory Board Members. Before each monthly the Board meeting, relevantmaterials are distributed and pre-meeting briefings are held. These sessions allow for explanations by internal Members of
the Board on agenda items. Regular opinion-exchange sessions and site visits further foster information sharing andcollaboration among the Members of the Board. This support structure ensures thorough and lively discussions during
Board meetings.

Remuneration, Etc.

①Matters Concerning Policies on Determination of the Remuneration, Etc. for Each
Member of the Board
Based on the deliberation by the Remuneration Committee, the Board decided on a policy on determination of the content ofcompensation, etc. for each Member of the Board at the Board meeting held on February 25, 2021. The details are as
follows:
1. Fundamental policy on the determination of the details of remuneration, etc. for each Member of the Board
The remuneration, etc. for Members of the Board of the Company consists of fixed compensation and performance-based
compensation, both of which are monetary compensation, as well as non-monetary performance-based compensation(stock compensation). The above policy of remuneration was decided comprehensively considering the matters such as thebusiness scale, content, and performance of both the Company and the Taisei Group, as well as the duties andresponsibilities of each Member of the Board.
When determining the details of remuneration, etc. for each Member of the Board, the Board will decide the details of
remuneration for each Member of the Board, taking account of the responsibilities and positions of each Member of theBoard (including the concurrent positions as an Executive Officer, if applicable; the same applies hereafter), based on
deliberation at the Remuneration Committee, which is authorized to deliberate the details of remuneration, etc. before theBoard’s decision. The Remuneration Committee shall comprise of Members of the Board (internal) and the same numbersof External Members of the Board as those of Internal Members and shall be chaired by an External Member of the Board.
Furthermore, an External Audit & Supervisory Board Member shall be added as a member of the Committee from theviewpoint of securing adequateness of the deliberations at the Committee. Thus, the Remuneration Committee establishes
the system to properly consider the details of remuneration, etc. for each Member of the Board.

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Schematic diagram of remuneration of Members of the Board of the Company

Composition of the Remuneration Committee

2. Policy on determination of the amount and the calculation methods of fixed Compensation
The fixed compensation shall be paid to each Member of the Board on a fixed date every month during his or her term ofoffice, and shall be determined according to the responsibilities of each Member of the Board, comprehensively taking
account of the Company’s business scale, content, and the duties and responsibilities of each Member of the Board, and thefixed compensation to each Member of the Board other than External Members of the Board, shall be progressively
increased according to his or her position.
3. Policy on determination of the contents, and the calculation methods of the amount or the number of
performance indicators for performance-based compensation; and policy on determination of the contents and theamount, or the number and the calculation methods for non-monetary compensation
The performance-based compensation is established for the purpose of raising the awareness of each Member of the Board
to contribute to business performance improvement and enhancement of corporate value. However, External Members of
the Board are not eligible for the performance-based compensation(a) Performance-based compensation (monetary compensation)
The performance-based compensation (monetary compensation) shall be paid to each Member of the Board on a fixed dateevery month during his or her term of office and the contents and the amount of the compensation shall be determinedbased on our Company’s short-term performance.
Net income attributable to owners of parent in the consolidated statement of income for the most recent consolidated fiscal
year is used as a performance indicator because it is an indicator that shows the final results of Taisei Group’s businessactivities, and provides the system so that the amount paid to each Member of the Board will be progressively increased
according to his or her positional ranks.
(b) Performance-based compensation (stock compensation)
The performance-based compensation (stock compensation) is designed to raise the awareness of Members of the Board

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to contribute to improving medium- to long-term business results and enhancing corporate value by clarifying linkage
between the remuneration of Members of the Board with Taisei Group’s business results and the value of share, and by
sharing with shareholders not only the benefits of a rise in share prices but also the risk of a decline in share prices. The
stock benefit trust (= Board Benefit Trust) method is adopted, and the date of the Annual General Meeting of Shareholders is
the grant date. In accordance with the “Officers’ Share Benefit Regulations” established by the Board, each year during his
or her term of office, points are granted and accumulated to one (1) share per point. In the event that a Member of the Board
retires and satisfies the beneficiary requirements specified in the “Officers’ Share Benefit Regulations,” the Company’s
shares equivalent to the cumulative number of points will be distributed after retirement through prescribed procedures todetermine the beneficiary. A part of the payment may be made in cash equivalent to the market value of the Company’s
shares instead of the Company’s shares.
As well as the performance-based compensation (monetary compensation), net income attributable to owners of parent in
the consolidated statements of income for the most recent consolidated fiscal year is used as a performance indicatorbecause it is an indicator that shows the final results of Taisei Group’s business activities.
The points to be granted to each Member of the Board are determined separately for Representative Directors and otherMembers of the Board respectively considering the status of achievement of business performance, duties andresponsibilities.
4. Policy on determination of the ratio of each type of compensation to be applied to the amount of remuneration,
etc.
With respect to performance-based compensation, the Company has set performance values that serve as criteria formonetary compensation and stock compensation and has established a rule that the ratio of performance-based
compensation will increase when performance is favorable compared to the criteria.
From a medium- to long-term perspective, the Company has a plan to review for reducing the proportion of fixedcompensation and increasing the proportion of performance- based compensation.
However, the compensation for External Members of the Board shall be fixed compensation only.

②Matters Related to the Policy on Determination of the Amount and the Calculation
Methods of Remuneration, Etc. for Audit & Supervisory Board Members
The remuneration, etc. for Audit & Supervisory Board Members consists only of fixed remuneration, and the amount for each
Audit & Supervisory Board Member is determined by the Audit & Supervisory Board through consultation.

③Matters concerning the resolution of the General Meeting of Shareholders on the
remuneration, etc. for Members of the Board and Audit & Supervisory Board Members

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④The total amount of remuneration for Members of the Board and Audit & Supervisory
Board Members, etc.

Activities / Efforts
Analysis and Evaluation of the Overall Effectiveness of the Board
The Board of the Company analyzes and evaluates effectiveness of the Board and discloses the results annually.

1. FY2022 initiatives based on FY2021 evaluation

In order to strengthen supervisory functions and invigorate the deliberations at the Board, and to accelerate decision-making
on business execution, the Company reviewed its governance system in March 2020, which includes a review of agenda

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items to be resolved by the Board, and further delegation of its authority to executives accordingly.
Taking account of the review, since FY2020, we have strived to enhance the effectiveness of the Board, and we have been
also trying to address the issues found in the effectiveness review in FY2021 as follows:a)Enhancing discussions on the appropriate governance system, including the size and composition of the Board
from a medium- to long-term perspective
As an ongoing issue, the Executive Personnel Committee deliberated on the topics to be considered, including
the composition of the members of the Board.

b)

To the appropriate extent, further delegation of authority to executives and the implementation of deeper
deliberations on important management issues
Based on the analysis of the agenda items, the Board secured enough time for deliberations by narrowing down
the number of agenda items, reviewing the matters to be reported, making documents and briefings in a concise
manner.

c)

Improving the effectiveness of deliberations at the Committees within the Board
In accordance with the topics to be deliberated, we made efforts to deepen deliberations on important issues by
ensuring sufficient deliberation time.

d)Discussing specific measures to strengthen the effectiveness of group governanceIn order to restructure its group governance, the Company implemented measures such as establishing thesystem to exchange personnel between the Company and the Group companies and setting up a management
committee at each of the major Group companies.

2. Overview of the FY2022 evaluation

The method used to evaluate effectiveness in FY2022, and the results of the evaluation are as outlined below.

(1) Evaluation Method and Process
The secretariat prepared a self-evaluation questionnaire (evaluation sheet for the Board) and obtained approval
thereof from the Board, and all Members of the Board and Audit & Supervisory Board conducted the selfevaluations.
The evaluation items in the questionnaire are as listed below. Items 1-5 consisted of five-grade assessments andfree descriptions, and Item 6 comprised free descriptions.
《Evaluation items》
1. Self-evaluation as a Member of the Board; 2. Structure and operation of the Board; 3. Effectiveness of theBoard; 4. Support system; 5. Deliberation and monitoring regarding the medium- to long-term vision and theMedium-Term Business Plan; 6. General Evaluation of the Board
The External Members of the Board conducted an overall assessment towards the result of the self-evaluations
collated by the secretariat.
At the same time, a lawyer prepared a third-party’s opinion towards the result of self-evaluations.

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Then the Board deliberated on the effectiveness based on the overall assessment and the third-party’s opinion.
(2) Overview of the Evaluation Results
Since the Board was able to secure a considerable deliberation time towards medium- and long-term management
issues, it was assessed that the functions of the Board were improving, while there were some matters which
needed to improve from the standpoint of the roles and responsibilities of the Board. In order to further enhance theeffectiveness of the Board, the Board will continuously work on the followings:a) To enhance discussions on the size and composition of the Board and other aspects of the governance systemb) To delegate further authority to executives to the appropriate extentc) To invigorate deliberations furthermore based on the roles and responsibilities of the Board from a medium-to
long-term perspective

Dialogue with Shareholders and Investors
Taisei Corporation is committed to fostering constructive dialogues with shareholders and investors as we strive forsustainable growth and enhanced corporate value in the medium-to-long-term. Our timely and appropriate information
disclosures lay the foundation for these dialogues.
In alignment with our Information Disclosure Policy and the Fundamental Corporate Governance Policy, we ensurecompliance with legal and stock exchange regulations when revealing financial results, management strategies, risk factors,
governance structures, human capital management, intellectual property, and sustainability initiatives. We also strive toshare up-to-date insights about our business activities with stakeholders through our website and annual reports.
For dialogue with shareholders and investors, our actions are grounded in our IR Policy. We promote constructive dialogue
with our stakeholders through interviews, IR briefings, and general meetings of shareholders. Specifically, we conduct
semiannual financial results briefings, hold individual meetings for both domestic and foreign institutional investors, andengage in overseas IR activities. Our Taisei Circle newsletter serves as a communication tool, offering shareholders insights
into our focused business activities and ESG initiatives.
Internally, we document these dialogues and interactions. Reports capturing these engagements are shared monthly withsenior management and presented in detail to the Members of the Board at least twice a year, ensuring that our investor
relations activities contribute to enhancing our management capabilities.

Refer to:Status of dialogue with shareholders, investors and other

Ensuring the Credibility of Financial Reporting

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Internal controls on financial reporting based on the Financial Instruments and Exchange Act are recognized as one of themost important issues for a corporation. We have set up the internal systems including daily monitoring to ensure thecredibility of the financial reporting disclosed to the public. The effectiveness of the system is evaluated by the Auditing
Department and audited by KPMG AZSA LLC. The results are disclosed in the Internal Control Report and in the Audit
Report of Internal Controls. We will fulfill our social responsibility as a corporation by continuing to ensure the effectivenessof these internal controls.
In order to continue to operate the internal control systems relating to financial reporting in a sound manner, we are also
publishing messages from the President, implementing e-learning, and other campaigns to raise awareness among
executives and employees.

Promotion of Internal Controls
At Taisei Corporation, in May 2006, the Board established the Fundamental Policy to Enhance Operational Compliance
Systems, which was revised in July 2022. This policy is designed to ensure that as a Group, we conduct operations both
appropriately and efficiently and maintain the reliability of financial reporting. To further enhance compliance and risk
management, the Company undertakes various measures. This includes providing training on compliance with the
Antimonopoly Act, conducted by external lawyers, primarily targeting executives and staff in the sales division.

Refer to:Fundamental Policy to Enhance Operational Compliance Systems

Top Management Seminar
Top management convenes for keynote lectures by external speakers and to engage in discussions about management
challenges, applying insights to organizational operations.

Data

Governance Data

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Risk Management

Risk Management

Policies and Basic Approach

Activities / Efforts

Data

Sustainability Governance and Oversight

Risk Management
Policies and Basic Approach
Under the guidance of our Risk Management Policy and the Basic Risk Management Regulations, the Taisei Group has
instituted a risk management system that is systematically implemented across the entire Company. Additionally, we have
set up a robust management framework that addresses major ESG-related risks, including quality, compliance, information,
safety, and environmental concerns.
To ensure the effectiveness of our company-wide risk management and maintain the integrity of our operations, we adhere
to preventative risk measures outlined in internal policies and manuals. Should a risk manifest unexpectedly, we promptly
take appropriate actions to minimize any losses, striving to ensure both the continuity of our business and the sustained
trust of the community.

Refer to:Fundamental Policy to Enhance Operational Compliance Systems

Risk Management Policy

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Promotion of Company-Wide Risk Management System
At Taisei Corporation, we work to continuously operate the risk management system to appropriately identify and manage
risks associated with business operations. Under the risk management system, the President serves as Chief Executive
Officer of Risk Management, and Chief of the Business Administration Division serves as the Chief Risk Management
Officer (CRO). Each year, we take into account the risks that became apparent during the current fiscal year to review therisk management for the following fiscal year through the PDCA cycle and verify the effectiveness of the risk management
system.
Based on the Basic Risk Management Rules, each division of the Head Office, in cooperation with the branches, reviews
and identifies all risks associated with their business activities and selects the “Head Office-governed risks.” The “Head
Office-governed risks” are then narrowed down to risks that can possibly have a material impact especially on corporate
management. Such risks are selected as “key company-wide risks” and are subject to risk management across the entire
company. The “key company-wide risks” are determined by the CRO after deliberation by the Risk Management Committee
headed by the CRO. The President and the Board receive reports on the risks and confirm the operating status of the risk
management system and maintain the effectiveness of the system.

Advancement of Company-Wide Risk Management

Refer to:
Corporate Governance Structure

Business and Other Risks

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Risks that may significantly impact corporate management are reported to the Management Committee and the Board. Theycollectively review and decide upon a comprehensive strategy to address such risks. These risks are documented in theBusiness and Other Risks section of the annual securities report.

Business and Other Risks⑴

Market Risks①Trend of the construction market②Fluctuations in prices of materials③Asset holding risk
④Retirement benefit obligations⑤Fluctuations in interest rates⑥Risks of related or incidental businesses⑵

Risks of violation of legal controls over the civil engineering business and the building construction business①Risk of violation of the Construction Business Act and related laws and regulations②Risk of violation of the Antimonopoly Act⑶

Risk of infringement of intellectual property rights⑷

Risk of inappropriate financial reporting⑸

Risk related to antisocial forces⑹

Risk associated with quality due to construction failure⑺

Risk of design flaw⑻

Risk of process delays⑼

Risk of accidents⑽

Risk of information leakage and system trouble⑾

Risk of large-scale disasters⑿

Risk associated with the working environment⒀

Risk of violation of environmental laws and regulations⒁

Risk associated with environmental issues including climate change⒂

Risk associated with human rights issues⒃

Credit risk⒄

Contract risk⒅

Risk of the spread of infectious diseases⒆

Country risk⒇

Geopolitical risk

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Business and Other Risks (Annual Securities Report)

Climate Change-Related Risks
In terms of climate change-related risks, we specify and assess risks based on various scenarios created and promote
initiatives in response to the TCFD Recommendations.

Refer to:Information Disclosure Based on the Recommendations by TCFD Recommendations

Provisions for ESG-Related Fines and Settlements
Fines and settlements, etc. relating to environmental, social and governance (ESG) issues that are caused by events prior
to the current period and are highly likely to occur in the future are estimated and allocated as provisions. Applicableprovisions are not allocated for the three most recent business years.

Activities / Efforts

Initiatives for Business Continuity Planning (BCP)
To uphold our duty as a comprehensive construction company that underpins the foundation of socioeconomic activities, it isessential that we ensure the safety and well-being of our executives, employees, and their families, even in the face ofsignificant disasters or accidents. To this end, we laid out our Policy on Business Continuity in Times of Disaster in 2005. Inalignment with this policy, we have structured a business continuity plan for times of disaster. All the Company’s executives,
employees, and those of the Group companies participate in disaster preparedness training sessions. This training is held atleast annually, and based on the outcomes, we periodically review and enhance the entirety of our business continuity plan.
Our persistent and routine endeavors towards bolstering business continuity have earned us the Resilience Certification.
Moreover, since 2015, we have annually collaborated with organizations like the Japan Federation of Construction
Contractors in joint training exercises. This collaboration has enabled us to craft a company-wide recovery support structurethat can swiftly address requests for aid.
Resilience Certification was created based on the "Guidelines for the Certification of Organizations that Contribute to National Resilience" formulated by the Cabinet
Secretariat's National Resilience Promotion Office. Certification is granted by the Association for Resilience Japan to companies that support the goal of improving
national resilience and actively promote efforts to ensure business continuity.

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Refer to:
Policy on Business Continuity in Times of Disaster

Risk Management for Infectious Diseases and Pandemics

In response to infectious diseases like COVID-19, the CRO Secretariat spearheads efforts, centralizing information on
infection statuses across both domestic and international business locations. This ensures that our entire Company can
respond to crises both swiftly and cohesively.
Moreover, in November 2020, we revised and established the “Business Continuity Plan for Infectious Disease Outbreaks.”
This new plan integrates the previously separate “Novel Influenza Response Guidelines” to ensure adaptability not only to
COVID-19 but also to any potential future infectious diseases.
In practice, this involves educating our executives, employees, and specialized contractors about actions to take during an
outbreak or if an infection occurs in the workplace. We are also actively stockpiling supplies essential for infection
prevention.
Currently, COVID-19 has been reclassified as a Class 5 infectious disease under the Infectious Diseases Act. Nonetheless,
we remain equipped to rapidly enact infection prevention measures should there be a resurgence.

Information Security Measure
In the construction industry, it is imperative to share information with numerous stakeholders, including clients andcollaborative entities like specialized contractors, during the construction process. Recognizing this, the Taisei Group has
articulated the “Management of Information and Intellectual Property Rights” in its Action Guidelines for Taisei Personnel andthe Taisei Group as a Whole. We have taken various steps towards information security and have formulated both the Policyon the Protection of Personal Information and the Code of Conduct for the Use of Social Media.
At Taisei Corporation, we have consolidated a set of core rules for managing electronic information into a booklet. This
serves as a foundation for the education and guidance we provide to all our executives, employees, and business partners.
In addition, we are actively enhancing the information security measures at our overseas branches and project sites, and weare particularly focused on bolstering safeguards against potential information leaks that could arise from telecommuting(working from home).
Moreover, to proactively prevent and lessen intellectual property risks—like rights infringements or technology outflows that
could profoundly impact our business operations—we rigorously enforce risk management across all our business activities.
In light of the escalating threat of cyber-attacks, we remain vigilant. Central to this effort is our Taisei-Security Incident
Response Team (SIRT), established in 2013. Collaborating with external agencies through the Nippon CSIRT Association,
we continuously gather the most recent intelligence on cyber threats. Armed with this information, we strategize andimplement advanced defensive measures, aiming to preemptively ward off potential attacks.

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Management of Information and Intellectual Property Rights

Data

Governance Data

Copyright TAISEI CORPORATION All Rights Reserved.

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Thorough Compliance / Restructuring of theGroup Governance System

Policies and Basic Approach

Goals and Targets

Sustainability Governance and Oversight

Initiatives

Activities / Efforts

Data

Thorough Compliance
Restructuring of the Group Governance System
Policies and Basic Approach
The Taisei Group has outlined in its “Action Guidelines for Taisei Personnel and the Taisei Group as a Whole” theimportance of complying with laws and regulations (i.e., laws, regulations, ordinances, administrative guidance, customs,
and other social rules, as well as internal rules and regulations such as company rules). The Group emphasizes acting withsocietal integrity.
In executing its business activities, there is a continual focus on ensuring that actions and words serve the best interests ofclients, the company, shareholders, business partners, and the broader society.
As part of our fundamental approach to corporate governance, we prioritize the speed, accuracy, fairness, and transparencyof managerial decision-making. This ensures the sustainable growth of the Company and helps in securing the trust of thecommunity.
To maximize the synergies throughout the Group, we have rebuilt the Group governance framework. This includes theinitiation of a Group Personnel Exchange System and the rebuilding of the Group meeting structures.

Risks and Opportunities
Establishing solid compliance is foundational to our management. Insufficient efforts in this area can lead to risks such as adiminished societal reputation, constraints in our business operations, a decline in the perceived corporate value, andpotentially lower our reputation among our stakeholders.

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If we do not adequately strengthen the Group governance, there is a risk that, while aiming for individual company
optimization, the Group may not make decisions that are in the collective best interest.
Conversely, by building and enhancing the Group governance, we ensure transparent, swift decision-making andappropriate risk-taking throughout the entire Group. This approach amplifies the Group’s strength by maximizing synergies.

Policies / Commitments
Action Guidelines for Taisei Personal: Compliance with laws and regulations, management of information and intellectual
property rights
Policy on the Protection of Personal Information
Code of Conduct on the Use of Social Media
Basic Policy Regarding Group Operation
Medium-Term Business Plan (2021–2023): To maximize synergies by rebuilding Group governance systems

Refer to:Action Guidelines for Taisei Personnel and the Taisei Group as a Whole
Policy on the Protection of Personal Information
Medium-Term Business Plan

Code of Conduct on the Use of Social Media

Fundamental Policy to Enhance Operational Compliance Systems

Goals and Targets
KPIs

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Performance
In FY2022, we conducted compliance education for the owners of the suppliers (specialized contractors) at all 12
branches in Japan, as well as compliance training in an e-learning format for all executives and employees twice.
100% of employees participated in online compliance training. To improve awareness, we will continue to educate
employees on important topics.

Refer to:Materiality and KPIs

KPIs

Performance
The number of serious security incidents involving electronic information in FY2022 was 0.
Through online courses, we are working to educate all employees about new threats such as the risks associated with theuse of cloud services and the targeted cyber-attacks that have been increasing in recent years. In FY2022, information
security training was conducted 6 times.

Refer to:Materiality and KPIs

Initiatives
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United Nations Global Compact “Anti-Corruption”

Refer to:Participation in Initiatives

Sustainability Governance and OversightCompliance and Fair Competition
The Taisei Group has established "Action Guidelines for Taisei Personnel and the Taisei Group as a Whole" setting out thefundamental principles for its actions as an organization, constituting the standards for actions and decisions that should be
actively implemented or observed by employees. These Action Guidelines serve as the norms for the Group's observance ofcompliance and are applicable to all Group companies both in Japan and in other countries. The section on "Fundamental
Policy to Enhance Operational Compliance Systems" states that "Directors shall have a deep awareness of the fact that theestablishment of compliance is the foundation for management, and they shall take the lead in faithfully observing the Group
Action Guidelines and other norms relating to compliance."

Action Guidelines for Taisei Personnel and the Taisei Group as a Whole(excerpt)
Chapter 1 Active and Transparent Culture
1.

Cultivating an open corporate culture

2.

Securing a pleasant working environment

3.

Respect for fundamental human rights and diversity

Chapter 2 Value Creation
4.

Creating a vibrant environment for all members of society

5.

Striving to create value

6.

Pursuing customer satisfaction

7.

Ensuring and improving safety and quality

Chapter 3 Evolution of Tradition
8.

Respect for traditions

9.

Promoting partnerships with subcontractors and suppliers

10. Promoting environmental conservation and creation
11. Communication with local communities

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12. Conduct in the international community
13. Appropriate disclosure of information
14. Fulfilling social responsibilities(1)Mutual prosperity with society(2)Compliance with laws and ordinances

Refer to:Action Guidelines for Taisei Personnel and the Taisei Group as a Whole / Rules on Enforcement of theCompliance System for the Action Guidelines for Taisei Personnel and the Taisei Group as a Whole
Fundamental Policy to Enhance Operational Compliance Systems

Compliance Promotion System
As shown in the diagram below, the Company has appointed managers, promoters and implementers in each division, andhas established an internal compliance promotion system. In addition, the Compliance Committee, chaired by an external
expert (lawyer), has been established as the Special Committee that responds to consultations with the President. We areworking to heighten the awareness among all executives and employees and further ensure compliance by establishing asystem to set stricter disciplinary actions, etc., against any legal and other violations committed by executives andemployees and to call for compliance with the Antimonopoly Act, implementing a range of measures based on therecommendations by the Compliance Committee and compliance training in each division, and taking other steps.

Chart of Compliance Promotion System

Whistleblowing and Consultation System

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Based on the Whistleblower Protection Act, at the Taise Group, we have established an internal whistleblowing system (theCorporate Ethics Helpline / Group Helpline / Whistleblowing System) in which executives and employees as well as external
parties (staff of partner companies [primary suppliers] that have a direct contractual relationship with the Company) can
report and consult on illegal acts including bribery and other corruption committed by executives and employees and actsthat violate (or an act intended to violate) the Action Guidelines for Taisei Personnel and the Taisei Group as a Whole, andwe have established consultation desks in-house and at an external organization (a law firm). The system also allows
anonymous reporting to obtain information clues on a wide range of violations. In addition, to enhance the effectiveness ofthe system, we actively conduct educational activities such as distributing the Help Line Cards summarizing the outline of
the system to all executives and employees and introducing the contents and operational results of the system through elearning and Compliance Newsletter.
In response to reports received, we will investigate the facts of the report received and take corrective action as required. In
doing so, we ensure that the whistleblower’s information is kept confidential and strictly follows internal regulations to ensurethat the whistleblowers are not treated disadvantageously for reporting.
For external stakeholders who do not have a direct contractual relationship with the Company, our website provides inquiries
on human rights, environmental issues and other issues.

Flow of Internal Whistleblowing Based on the Helpline System

Activities / Efforts

Compliance Education and Training
At Taisei Corporation, we conduct annual compliance training for all executives and employees to raise complianceawareness. In addition, to strengthen compliance across the entire Group, we regularly hold meetings for legal affairs
managers to share information and opinions on legal affairs issues with the Group companies in Japan. We also hold groupcompliance hearings to confirm the status of compliance promotion and exchange opinions and strive to ensure thoroughcompliance and promote communication.
Furthermore, compliance training is conducted annually for business partners (specialized contractors) and new employees

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of the Soyukai* (Taisei Corporation’s proprietary organization for core subcontractors) to ensure thorough compliancethroughout the supply chain.

Soyukai
Originated from the Harusamekai established in 1917, Taisei Corporation's organization for its core subcontractors was reestablished in February 2014 tostrengthen cooperation between the Company and Soyukai members. As of April 2022, approximately 700 companies have joined the organization. The
main purpose of the organization is to promote the improvement of construction capabilities and stable management of member companies throughcooperation with the Company's business.

Conduct Compliance Questionnaire (Annually)
The Taisei Group conducts the Compliance Questionnaire for all executives and employees with the aim of understanding
the current status and issues related to compliance and further promoting compliance.
The results of the questionnaire are analyzed, measures are considered, reported to top management, and disclosed to all
executives and employees through the Compliance Newsletter, and necessary measures are taken in cooperation withrelated departments to promote compliance.

Education / training
Compliance
Newsletter(monthly)

Topics covered in recent years
For advancing compliance
Regarding the increased penalties for defamation
Licensing in the construction industry and supervisory dispositions based on theConstruction Business Act
About bribery
Regarding the results of Compliance Questionnaire
Handling of trade secrets, among others

E-learning training(twice a year)

Regarding power harassment
Concerning embezzlement, bribery, and harassment
Measures for contacts with competitors and internal leniency program
Regarding the Corporate Ethics Helpline (internal whistleblowing system) and more

Political donation
As part of its social contribution activities, Taisei Corporation makes political donations when necessary. When making
political donations, we thoroughly comply with the Political Funds Control Act and conduct a rigorous review based onprocedures pursuant to our internal rules, namely, the “Code of Conduct on Relationship with Politicians and Disbursementof Expenses.” The total amount of political donations made during FY2022 was 18 million yen.

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Anti-Corruption Policy
Taisei supports the anticorruption provisions of the United Nations Global Compact which it signed
in 2018. In accordance with Principle 10 ("Anti-Corruption") of the Global Compact, Taisei includes“Ensuring fair trade” “Maintenance of proper relationships with individuals or entities engaged inpolitics and government” and “Dealing with people, associations or organizations engaged in antisocial behavior” in its Action Guidelines for Taisei Personnel and the Taisei Group as a Whole, inorder to prevent coercion, bribery, money laundering, obstruction of justice and the various otherforms of corruption. This makes it clear that the Taisei Group and Taisei personnel shall not offer or promise any illicit moneyor goods to clients and individual executives and employees of the client, and shall not, in their dealings with politicians andgovernment officials (including foreign government officials), engage in activities that would violate criminal laws (such as
those relating to bribery) or activities that may be understood as such, or agree to unreasonable demands made byantisocial forces or organizations. We have also established a code of conduct with regard to the Act on Prohibition ofPrivate Monopolization and Maintenance of Fair Trade (Anti-Monopoly Act), and we also require employees to conduct
themselves responsibly to ensure that there are no violations of the criminal laws relating to bid-rigging, the Anti-Monopoly
Act and so on, in order to prevent corruption.
To educate the prevention of bribery for politicians and government officials (including foreign government officials), a small
booklet entitled “Quick Guide to Compliance” has been prepared. Online education courses are also conducted for all
employees to ensure that they understand that bid-rigging and other acts that obstruct fair competition (a comprehensive
category that includes bribery and other corrupt practices) are strictly prohibited, in order to enhance employees' knowledge
and awareness of the importance of preventing corruption.
With regard to relationships with foreign government officials, for which particular caution is needed, in FY 2020 we
introduced a pre-check system as an anticorruption measure for foreign government officials, etc., and we are committed topreventing corrupt practices.
Moreover, when agents (distributors, representatives, consultants, agents etc.) are hired in connection with transactions withforeign government organizations or the like, a check is conducted in advance based on a standardized checklist andapproval from the administration division is obtained, and the contract signed with the agent, etc. is required to establish
matters relating to legal compliance.

Impartial and Fair Transactions
Taisei Corporation has included “Promoting partnerships with subcontractors and suppliers” in its Action Guidelines for Taisei
Personnel and the Taisei Group as a Whole, emphasizing the importance of establishing fair and reliable relationships with
its partners in the supply chain and conducting transactions on an equal footing. In August 2020, we prepared andannounced the Declaration of Partnership Building which incorporates prosperous coexistence for the entire supply chain,
new collaboration regardless of the company's scale and existing business relationships, and observance of “Promotion
Standards” as defined in the Act on the Promotion of Subcontracting Small and Medium-sized Enterprises. Furthermore, inorder to eliminate anti-social forces, we have included a condition in our basic contract with specialized subcontractors
emphasizing that we do not conduct business with anti-social forces and affirming that the subcontractors and suppliers are
not an anti-social force, and that if it is revealed to be otherwise, the contract may be canceled without notice.
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We disseminate our stance on impartial and fair transactions in connection with preventing corruption to employees of theCompany and Group companies as well as to our suppliers, including subcontractors and intermediaries.
We also cover impartial and fair transactions in our Taisei Group of Companies Sustainable Procurement Guidelines andwork to reduce risks so as not to get involved in transactions with anti-social forces, corruption, bribery, and organizations
engaging in inhumane labor.

Refer to:Declaration of Partnership Building
Taisei Group of Companies Sustainable Procurement Guidelines
Brochure "Promotion of Sustainable Procurement"

Verification of Compliance with Laws and Regulations (Guidance)
To ensure the legitimacy of bids, Taisei Corporation operates an in-house system whereby the heads of branch offices
confirm that there are no inappropriate acts in the process of bidding operations, produce the documents, and keep all bids
on file.
Every year, the legal department verifies the legitimacy of bids and checks compliance with the Construction Business Act,
the Antimonopoly Act and the Subcontractors Protection Act.

Specific Measures for Compliance with the Antimonopoly Act
Taking the fact seriously that we were indicted on suspicion of violating the Antimonopoly Act in connection with the Linear
Chuo Shinkansen construction project, we have implemented the measures indicated below based on deliberations by theCompliance Committee chaired by an external lawyer and resolution by the Board. We continued to operate and implement
the measures below in FY2022.

1

Revision and tightening of internal rules relating to contracts with competitors (September 2018)2

Reinforcement of procedures to confirm the appropriateness of the bidding process (September 2018)

3

Implementation of e-learning for all executives and employees (implemented every fiscal year since FY2018)

4

Implementation of training by an external lawyer for executives and employees in the sales departments and thetechnical departments that engage in operations related to taking orders (implemented every fiscal year since
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Tax Compliance
Taisei Corporation established its Tax Policy in August 2020 as a guideline for complying with tax laws and regulations andfulfilling its social responsibilities, and is striving to fulfill its tax obligations appropriately. In addition, since fiscal 2013, wehave conducted an annual e-learning program to raise awareness of tax compliance, and we are working to disseminate ourtax policy in relation to the contents of tax audits.
We are also working to reduce tax risks by encouraging all officers and employees to consult with the appropriate
department regarding different from usual transactions, etc.

Refer to:Tax policy

Regular Rotation of Accounting Auditors (Executive Members)
Executive members of accounting auditors are rotated regularly in accordance with the regulations of auditing firms that
ensure compliance with the Certified Public Accountants Act. In addition, the upper limits for periods that are continually
involved and the intervals during which involvement is prohibited following rotation are as follows.
Engagement Partner:

No more than 7 accounting periods, interval of 2 accounting periods

Lead Engagement Partner: No more than 5 accounting periods, interval of 5 accounting periods

Thorough Awareness of Structure of Values and Policies
We created a portable card of the Structure of Values and Policies, which was updated in 2010, in an effort to spread andestablish it. Since FY2011, we have been conducting an e-learning program on our Structure of Values and Policies eachyear to further disseminate and establish the structure while relating it to social needs and internal efforts.
In FY2022, we conducted an e-learning program for employees on the Taisei Group Philosophy, the Taisei Spirit and theAction Guidelines for Taisei Personnel and the Taisei Group as a Whole, and the participation rate was 97%.

Refer to:Our Structure of Values and Policies

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Information and Intellectual Property Management
The sharing of information with many clients, subcontractors (specialized contractors, etc.) and other stakeholders inconstruction projects is essential in the construction industry. The Taisei Group includes "Management of Information andIntellectual Property Rights" in its Action Guidelines for Taisei Personnel and the Taisei Group as a Whole, and Taisei
implements various policies relating to information security. In addition to establishing the Policy to Protect Personal
Information and Codes of Practice for the Use of Social Media, the Taisei Group has also established a Policy on Intellectual
Property and faithfully implements intellectual property strategies for the creation, protection and use of intellectual property,
for the mitigation of risks relating to intellectual property, and for the strategic use of brands.

Refer to:Risk Management

Technical Development for Realizing a Sustainable Society

Data
Review of Compliance with the Group Action Guidelines and Handling of
Violations
The Taisei Group has established a Sustainability Committee as a committee within the Board. The committee revises andabolishes the Action Guidelines for Taisei Personnel and the Taisei Group as a Whole (“Action Guidelines”), discusses ways
to ensure a thorough understanding of these Guidelines within the company, and determines the status of compliance with
the Guidelines. The committee also reports regularly to the Board and receives confirmation regarding, the status ofoperation of the Corporate Ethics Helpline, the entity established to receive reports and provide consultations on violationsof the Group Action Guidelines.
In the event of a violation of the Group Action Guidelines, such as a serious compliance violation, we initiate a thoroughstudy and implement measures to prevent the recurrence of the violation. For this process, we strive to accurately ascertain
the facts by investigating relevant factors, including related persons, the course of events, the nature and specifics of theviolation, the amount of damage, and the impact on interested parties, and then report to relevant authorities as necessary.
The perpetrators are subjected to necessary disciplinary action, including dismissal, following a careful and rigorous reviewof the facts by the Board or the Management Committee, based on the Rules on Enforcement of the Compliance System for
the Action Guidelines for Taisei Personnel and the Taisei Group as a Whole.
In FY2021, 30 cases were reported via our Whistleblowing and Consultation System, which were related to violations ofinternal regulations as well as harassment cases. None of these cases had a significant impact on the management of theEnvironmental Social Governance Report 2023

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Group. In addition, there were no cases of legal action or payment of fines or penalties based on corrupt or anti-competitive
behavior in our company.

Status of Compliance Reporting

Operational results of Whistleblowing and Consultation System

FY2020

FY2021

FY2022and the Taisei Group as a Whole that covered violation of laws

28

30

73

and regulations and prevention of all forms of corruption)

incidents

incidents

incidents(including violation of the Action Guidelines for Taisei Personnel

Governance Data

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Management of Information and Intellectual
Property Rights

Policies and Basic Approach

Goals and Targets

Sustainability Governance and Oversight

Initiatives

Data

Management of Information and Intellectual Property
Rights
Policies and Basic Approach
The sharing of information with many clients, subcontractors and suppliers and other stakeholders in construction projects isessential in the construction industry. The Taisei Group includes "Management of Information and Intellectual Property
Rights" in its Action Guidelines, and Taisei implements various policies relating to information security. In addition toestablishing the Policy on the Protection of Personal Information and Code of Conduct on the Use of Social Media, theTaisei Group has also established a Policy on Intellectual Property and faithfully implements intellectual property strategies
that include those to create, protect and use intellectual property, to reduce risks relating to intellectual property, and to makestrategic use of intellectual property for brand enhancement.

Refer to:
Policy on Intellectual Property

Policy on the Protection of Personal Information

Code of Conduct on the Use of Social Media

Goals and Targets
KPIs

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Number of major information security accidents
Number of patent applications filed

Initiatives
Nippon CSIRT Association
Cyber Risk Intelligence Center—Cross Sectors Forum (CRIC CSF)
Information Security Subcommittee ([Nikkenren] Japan Federation of Construction Industry)

Sustainability Governance and OversightIntellectual Property Strategy
Taisei Corporation has formulated the Policy on Intellectual Property and faithfully implements its intellectual property
strategies. We strategically manage and utilize all intellectual property including patents, copyright, construction andbusiness know-how to promote management that is focused on intellectual property. Regarding management of intellectual
property, we intend to improve operational efficiency through building a search function for our own patents and preparing a
database for managing patents.
We implement thorough risk management in all business processes to prevent and mitigate intellectual property-relatedrisks that may cause a material impact on business management, such as infringement of our rights or rights of others, andtechnology leakage. We have established the Rules for Handling Intellectual Property Information, and ensure themanagement of classified information based on this. We also take measures to reduce the risk of infringing the intellectual
property rights of third parties, such as making the technical departments and business departments thoroughly aware ofother companies' patent information.
In addition, we have been further enhancing the intellectual property capabilities of the entire Group by establishing systems
and exchanging information on intellectual property across the Group.
We also conduct training to ensure that employees are fully informed about this policy and utilize intellectual property
strategically in order to strengthen our competitiveness and improve our corporate value.

Refer to:Materiality and KPIs

Technical Development for Realizing a Sustainable Society

Information Security Measures
At Taisei Corporation, we have compiled a booklet containing minimum rules to be observed and have been providing
education and guidance to all officers and employees as well as business partners. Since fiscal 2016, we have beenworking to strengthen the information security environment at our overseas sales offices and worksites. We also work tostrengthen measures against the risk of information leaks associated with telecommuting (working from home).In addition, inorder to prevent and mitigate intellectual property risks such as infringements of rights and technology leaks that have aserious impact on corporate management, we implement thorough risk management in all business processes.
To respond to the increasingly serious risk of cyber attacks, we established the Taisei-Security Incident Response Team
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(SIRT) and work to collect the latest information on cyber attacks and take measures to prevent cyber attacks in cooperation
with external organizations through the Nippon CSIRT Association, which we joined in March 2013.
From a technical perspective, the Taisei Group has adopted a Group-wide ICT infrastructure while fully taking measures toensure information security to prepare to promote DX in business activities and to handle changes in the environment, suchas those brought about by pandemics. As of FY2022, we had built a zero trust network access environment, achieving an IT
usage environment in which all executives and employees are able to safely access corporate information via the Internet towork anytime, anywhere.

Data

Governance Data

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External Evaluations/Sustainable Finance

External Evaluations

Sustainable Finance

Copyright TAISEI CORPORATION All Rights Reserved.

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External Evaluations

ESG Index,etc.
Major Indexes and Certification
FTSE4Good Index/FTSE Blossom Japan Index/FTSE Blossom Japan
Sector Relative Index
Taisei Corporation has been selected as an index constituent of the FTSE4Good Index, the FTSE Blossom Japan Index and
the FTSE Blossom Japan Sector Relative Index (as of June 2023).
The FTSE4Good Index Series is series of stock indexes developed by FTSE Russell, which is a wholly owned subsidiary of
the London Stock Exchange. FTSE Russell evaluates major corporations around the world from the perspective ofEnvironmental, Social and Governance (ESG) criteria, on the basis of corporate responsibility. It selects companies thatsatisfy its standards as constituents of the index.
The FTSE Blossom Japan Index and the FTSE Blossom Japan Sector Relative Index, are designed to measure theperformance of Japanese companies that demonstrate strong ESG practices.

FTSE4Good Index Series

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FTSE Blossom Japan Index

FTSE Blossom Japan Sector Relative Index

MSCI Japan Empowering Women Index (WIN)The MSCI Japan Empowering Women Index (WIN) is the value of companies
having excellent gender diversity within business categories. The MSCI JapanIMI Top 500 is its parent index. Taisei corporation has been selected continuously
since the index was established in 2017 (as of June 2023).

MSCI Japan Empowering Women Index

S&P/JPX Carbon Efficient Index
Discloses the S&P/JPX Carbon Efficient Index, jointly developed as an environmental index by theJapan Exchange Group, the Tokyo Stock Exchange, and the S&P Dow Jones Index (as of June2023). Taisei corporation has been selected continuously since the index was established in 2018.

S&P/JPX Carbon Efficient Index

SBT Certification
Taisei Corporation is certified by the "Science Based Targets (SBT)," an international initiative on
greenhouse gas emission reduction, on its GHG reduction target for 2030.

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CDP
Taisei's activities to reduce greenhouse gas emissions and resolve the issue ofclimate change through its business activities have been recognized by the CDP*
an international environmental nonprofit organization as the highest rank A interms of climate change in December 2022. Moreover, in the CDP assessment of
supplier engagement, Taisei has been selected as a "supplier engagement
leader" for three years in a row (as of March 2023).

* Note: CDP is an international environmental NGO that was established in the United Kingdom in 2000. CDP conducts activities to promote the disclosure ofenvironmental data relating to Climate Change, Forests and Water Security by companies in response to requests from institutional investors and purchasing
companies throughout the world. CDP rankings have an essential function as the global standard for the "E" component of environmental, social and governance(ESG) information disclosure.

Refer to:Participation in Initiatives

CDP

SOMPO Sustainability Index
The SOMPO Sustainability Index is an ESG evaluation by Sompo Asset Management Co. Taisei
corporation was selected in the SOMPO Sustainability Index (as of June 2023).

Major External Awards
ESG Finance Award Japan
Taisei Corporation was selected as the Environmental Sustainable Company in the Environmental
Sustainable Corporation Category at the Fourth ESG Finance Awards Japan hosted by the
Ministry of the Environment.

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the Sustainability Site Awards 2023
Taisei Corporation was selected as a Silver Class rating in the Sustainability Site Awards 2023, among over 5,000 Japanesecompanies.
Our sustainability website was highly evaluated for the information disclosure and accessibility.

Sustainability website

D&I AWARD 2022
Taisei Corporation was recognized as the top-ranked "Best Workplace" in the D&I Award 2022
sponsored by JobRainbow. This award rates companies that take initiatives toward diversity andinclusion by addressing issues including the gender gap, LGBT, disabilities, multicultural
coexistence, childcare and nursing care support, and more, and bestows a certification according
to this rating.

Copyright TAISEI CORPORATION All Rights Reserved.

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Sustainable FinanceGreen Bonds

Sustainability Linked
Loans, etc

Green Bonds are issued to procure

Sustainability link loans are loans thatfunds for suitable green projects bothpromote the achievement ofdomestically and internationally.

sustainability performance targets

The bonds are issued as part of thebased on management strategies.

effort to achieve a carbon-free society.

These are issued as part of the effort tohelp resolve climate change and otherissues. Other sustainable finance isalso introduced.

Copyright TAISEI CORPORATION All Rights Reserved.

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Green Bonds

Purpose and Background of This Issuance
2. Third-party Assessment of Eligibility

1. Overview of Green Bonds
3. Investment Announcement Regarding These Green Bonds

4. Reporting

Purpose and Background of This Issuance
Based on our group philosophy of “to Create a Vibrant Environment for All Members of Society,” TAISEI Corporation has
established an environmental policy that strives to create high-quality social capital through corporate activities centered on
the construction business in harmony with nature. In addition, “TAISEI Green Target 2050,” our set of medium- to long-term
environmental targets, sets forth four societies (a decarbonized society, a recycling oriented society, a nature co-existingsociety, and a safety secured society) toward the realization of a sustainable, environmentally friendly society, and aims toachieve virtually zero CO2 emissions from business activities by 2050 to realize a decarbonized society.
In order to realize our group’s Medium- to Long-Term Vision, “TAISEI VISION 2030,” our Medium-Term Business Plan
(2021-2023) specifies that focused efforts will be made over a three-year period as a priority issue. Regarding sustainability,
the plan calls for accelerating efforts toward carbon neutrality and promoting the development of technology to solve
environmental and social issues.
Against this background, our company has issued green bonds with the aim of raising awareness of the Group’s
environmental initiatives among a wide range of stakeholders and contributing to the realization of a decarbonized society.

1. Overview of Green Bonds

Name

TAISEI Corporation 40th Issuance of Unsecured Bonds (with inter-bond pari passu clause)(Green Bonds or TAISEI Green Bonds)

Condition
Determination Date

December 3, 2021

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Issue Date
Total AmountIssuedDecember 9, 2021

10 billion yen

Maturity Period

5 years

Interest Rate

0.100%

Use of Funds(1) Renovation of existing facilities to make them more energy efficient(TAISEI Kansai Branch and Yokohama Branch buildings, TAISEI U-LEC Kawagoe
Plant)＜Planning to obtain ZEB certification*1 under the Building-Housing Energy-efficiency
Labeling System (BELS)＞(2) Investment in renewable energy businesses (Solar power and wind power generation
facilities)(3) Investment in the development of decarbonization technology (areas related tooffshore wind power generation, carbon recycling and concrete, ZEB*2 and energy
conservation, and utilization of hydrogen)

Lead Organizers
Green Bond
Structuring Agent*3
Acquired Rating*1

Nomura Securities Co., Ltd. (Admin), Mizuho Securities Co., Ltd.

Mizuho Securities Co., Ltd.

A+ (Rating and Investment Information, Inc.), AA- (Japan Credit Rating Agency, Ltd.)

Building-Housing Energy-efficiency Labeling System (BELS) ZEB certification
A certification system in which a third-party evaluation organization evaluates and displays the energy-saving performance of new and existing buildings, led by
the Ministry of Land, Infrastructure, Transport and Tourism. A Building Energy-efficiency Index (BEI) value is calculated according to the calculation method
determined by the government, and the number of stars received is determined by this value. Among the highest ranked five-star buildings, those with evenbetter energy-saving performance are certified as ZEB (ZEB, Nearly ZEB, ZEB Ready, or ZEB Oriented).

*2

ZEB: (Net Zero Energy Building)“Buildings in which annual primary energy consumption is reduced to zero or almost zero on a net basis by improving the energy-saving performance of thebuilding or facilities, making full use of energy, utilizing on-site renewable energy, etc.” In other words, a building that consumes as little energy as possible andhas facilities for generating energy, resulting in an annual energy balance of zero.

*3

Green Bond Structuring Agent
Those who support the issuance of green bonds through the formulation of a green bond framework, giving advice on obtaining second opinions, etc.

2. Third-party Assessment of Eligibility
As a third-party assessment regarding the eligibility of these green bonds, a second party opinion was obtained in the “JCR
Green Bond Rating,” conducted by Japan Credit Rating Agency, Ltd. (JCR). They determined that the bonds comply with theGreen Bond Principles 2021 and the Green Bond Guidelines 2020, and gave their highest rating, “Green1.”

3. Investment Announcement Regarding These Green Bonds
We would like to introduce the investors who have announced their investment in these green bonds.
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(As of December 3, 2021, listed in Japanese alphabetical order)- OTEC CORPORATION- The Kagoshima Bank, Ltd.
- Shinkin Central Bank
- SUMITOMO LIFE INSURANCE COMPANY- Daitokyo Shinyokumiai- THE TOHO BANK, LTD.
- Japan Earthquake Reinsurance Co., Ltd.
- NIHON DENGI CO., LTD.
- THE HACHIJUNI BANK, LTD.
- HIGASHI-NIPPON BANK, Ltd.
- Mitsubishi UFJ Trust and Banking Corporation- The Miyazaki Taiyo Bank, Ltd.

4. Reporting
Once a year, a report on the status of fund allocation and environmental benefits will be disclosed on the Company's
Sustainability website.

TAISEI Green Bonds

The first report after issuance of Green Bonds(40th issuance of unsecured bonds Nov. 2022)
The second report after issuance of Green Bonds(40th issuance of unsecured bonds Nov. 2023)

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November 15, 2022
Taisei Corporation

The first report after issuance of Green Bonds(40th issuance of unsecured bonds)

1.

Status of appropriation of procurement funds (December 2021 - September 2022)
The following table shows the status of appropriation of funds procured through Green Bonds(40th issuance of unsecured bonds) that were issued on December 9, 2021.
Item

Amount (JPY million)① Amount raised (amount of Bond issue minus various
issuing expenses)

9,943② Amount of appropriation (1.+2.+3.)

1,538

1. Renovation of existing facilities to make themmore energy-efficient390

2. Investment in renewable energy businesses

0

3. Investment in the development of decarbonization
technology③ Non-appropriated balance (①-②)
2.

Environmental impact

1.

Renovation of existing facilities to make them more energy-efficient

1,148
8,405

-１. ZEB certification acquisition status
All three existing facilities (Taisei Corporation Kansai Branch Building, Taisei Corporation
Yokohama Branch Building and Taisei U-LEC Corporation Kawagoe Plant) were awarded
ZEB certification under the Building-Housing Energy-efficiency Labeling System (BELS) in
April 2022.
https://www.taisei.co.jp/about_us/wn/2022/220426_8771.html(Japanese)-２. Amount of reduced energy consumption due to energy conservation measures
Construction is underway with completion expected at the end of March 2023. For the
anticipated environmental improvement benefits, etc., see page 51 of the Taisei Group Annual
Report 2022.
https://www.taisei-sx.jp/english/environment/pdf/Environmental_Solutions.pdf- 1 Environmental Social Governance Report 2023

329

2.

Investment in renewable energy businesses
There was no investment during the period.

3.

Investment in the development of decarbonization technology
As of September 2022, of the 279 technical development items managed as "technicaldevelopment" in the Medium-Term Business Plan, 75 are related to decarbonization.


Click the following link for the status of development and implementation of T-e Concrete®
environmentally friendly concrete.

https://www.taisei.co.jp/english/t-econcrete/See the following Taisei press releases (Japanese only) for the progress in major technicaldevelopment items contributing to decarbonization between December 2021 and
September 2022.

・"Development of Technology for Carbonate Use" implemented in the "Project to develop
technologies for the manufacture of concrete, etc. using CO2" which was selected as a
NEDO Green Innovation Fund Project. (January 28, 2022)
https://www.taisei.co.jp/about_us/wn/2022/220128_8674.html (Japanese)

・"T-LCA (Life Cycle Assesment) Simulator CO2" tool for evaluating CO2 emissions
throughout the life cycle of buildings developed. (May 30, 2022)
https://www.taisei.co.jp/about_us/wn/2022/220530_8796.html (Japanese)•

T-ZCB (Zero Carbon Building) assessment system for effectiveness of CO2 emissions
reduction developed, demonstration at company facilities begins. (September 9, 2022)
https://www.taisei.co.jp/about_us/wn/2022/220909_8933.html (Japanese)

・"T-CARBON SoilReme" CO2 emissions assessment tool developed. (September 12,2022)
https://www.taisei.co.jp/about_us/wn/2022/220912_8952.html (Japanese)・Support activities begin in preparation for formulation of ZEB guidelines, etc. for publicbuildings in Setagaya Ward. (September 26, 2022)
https://www.taisei.co.jp/about_us/wn/2022/220926_8969.html (Japanese)- 2 Environmental Social Governance Report 2023

330

November 30, 2023
Taisei Corporation

The second report after issuance of Green Bonds(40th issuance of unsecured bonds)

1. Status of appropriation of procurement funds (December 2021 - September 2023)
The following table shows the status of appropriation of funds procured through Green Bonds(40th issuance of unsecured bonds) that were issued on December 9, 2021.
Item

Amount (JPY million)①

Amount raised (after deducting issuance costs)

9,943

②

Amount of appropriation (1.+2.+3.)

9,943

1.

Renovation of existing facilities to make themmore energy-efficient2.

Investment in the renewable energy businesses

3.

Investment in the development of decarbonization
technologies③ Non-appropriated balance (①-②)

5,520
2,510
1,913
0

2. Environmental impacts
1.

Renovation of existing facilities to make them more energy-efficient-１. ZEB certification acquisition status
All three existing facilities (Taisei Corporation Kansai Branch Building, Taisei Corporation Yokohama
Branch Building and Taisei U-LEC Corporation Kawagoe Plant) got ZEB certification under the BuildingHousing Energy-efficiency Labeling System (BELS) in April 2022.
https://www.taisei.co.jp/about_us/wn/2022/220426_8771.html (Japanese)-２. In April 2023, we completed the Green Renewal® ZEB renovation of three facilities owned by the Taisei Group.
For information on the technologies that support Green Renewal® and the benefits it provides, such asenvironmental improvement effects, please see the following.
https://www.taisei.co.jp/about_us/wn/2023/230424_9491.html (Japanese)

1

Environmental Social Governance Report 2023

331

2.

Investment in the renewable energy business (including refinancing)
The Miya River Watarai Solar Park Power Plant (output: approx. 72 MW), the largest solar power
generation facilities in the Chubu region which was constructed through the work of Miya River Watarai
Solar Park, a joint venture among several companies, has been completed and commenced commercial
operation. For information on the amount of power generated and the amount of CO2 reduction, please see
the following.
https://www.taisei.co.jp/about_us/wn/2023/230510_9512.html (Japanese)
https://watarai-solar.sakura.ne.jp/plan/ (Japanese)

3.

Investment in the development of decarbonization technologies
As of September 2023, of the 392 technical development items managed as "technical development" in theMedium-Term Business Plan, 81 are related to decarbonization.


Click the following link for the status of development and implementation of T-eConcrete®,environmentally friendly concrete.
https://www.taisei.co.jp/t-econcrete/ (Japanese)

See the following Taisei press releases (Japanese only) for the progress in major technicaldevelopment items contributing to decarbonization between October 2022 and September 2023.

・“T-Green® Multi-Solar” Multi-functional solar power system integrated with building exteriors(walls or windows) or balcony glass balustrade.（October 11, 2022）
https://www.taisei.co.jp/about_us/wn/2022/221011_9103.html (Japanese)・

Utilization of calcium carbonate generated in the papermaking process for "T-eConcrete®/CarbonRecycle". (November 24, 2022)
https://www.taisei.co.jp/about_us/wn/2022/221124_9172.html (Japanese)・Demonstration project initiated for building a hydrogen supply chain in Muroran, Hokkaido.
（November 24, 2022）
https://www.taisei.co.jp/about_us/wn/2022/221124_9169.html (Japanese)

・

T-Carbon® Mixing: Technique to spray and bind CO2 during concrete mixing.（January 16, 2023）
https://www.taisei.co.jp/about_us/wn/2023/230116_9230.html (Japanese)・

Development and application of new technologies to promote Green Renewal ZEB. (February 24,2023)
https://www.taisei.co.jp/about_us/wn/2023/230224_9341.html (Japanese)・

Efforts towards Zero Carbon Construction, aiming for near-zero CO2 emissions during construction.
2

Environmental Social Governance Report 2023

332

（April 28, 2023）
https://www.taisei.co.jp/about_us/wn/2023/230428_9502.html (Japanese)・Synthetic segments using T-eConcrete®/Zero-Cement Type applied to sewer pipe shield tunnels. (July6, 2023)https://www.taisei.co.jp/about_us/wn/2023/230706_9587.html (Japanese)・Commissioned to carry out the "Survey on the Implementation of Advanced CCS Projects (Capture,
Transportation, and Storage of Carbon Dioxide) in FY2023". (August 2, 2023)
https://www.taisei.co.jp/about_us/wn/2023/230802_9609.html (Japanese)・Start of technological demonstrations of efforts to reduce CO2 emissions in civil engineering projects
to net zero. (August 21, 2023)
https://www.taisei.co.jp/about_us/wn/2023/230821_9623.html (Japanese)

3

Environmental Social Governance Report 2023

333

Sustainability Linked Loans, etc

Sustainability Linked Loans Overview

Taisei Signs DBJ Interactive Sustainability-Linked Loan

Conclusion of Sustainability Linked Loan Agreement between Taisei Corporation and The Norinchukin Bank
Other Sustainable Finance

Mizuho Eco Finance

Sustainability Linked Loans Overview
Sustainability link loans are loans to promote the achievement of sustainability performance targets based on management
strategies, with the aim of promoting sustainable economic activities and growth in both the environment and society.
Taisei Corporation provides funding for these loans as part of the effort to help resolve climate change and other issues.

Taisei Signs DBJ Interactive Sustainability-Linked LoanOn December 24, Taisei Corporation and Development Bank of Japan (DBJ) signed a loan agreement for a DBJ interactive
sustainability-linked loan.
[NEWS]Taisei Signs DBJ Interactive Sustainability-Linked Loan Agreement with the Development Bank of Japan

Conclusion of Sustainability Linked Loan Agreement
between Taisei Corporation and The Norinchukin Bank
Taisei Corporation and The Norinchukin Bank announce that Taisei and the Bank concluded the loan agreement for the
Sustainability Linked Loan.
[NEWS]Conclusion of Sustainability Linked Loan Agreement between Taisei Corporation and The Norinchukin Bank

Environmental Social Governance Report 2023

334

Other Sustainable Finance
Mizuho Eco Finance
Taisei corporation has entered into a syndicated "Mizuho Eco Finance" agreement with Mizuho Bank, Ltd. as the arranger.
[NEWS]Mizuho Eco Finance (Japanese)

Refer to:
Green Bond

Copyright TAISEI CORPORATION All Rights Reserved.

Environmental Social Governance Report 2023

335

ESG Data and Comparisons

ESG Data

Environmental Data
Social Data
Governance Data

GRI Standards
Comparison Chart

Universal Standards: (General
Disclosures 2021/Material Topics
2021)
Material Topics 2021
200 series (Economic topics)
300 series (Environmental topics)
400 series (Social topics)

ISO26000 Comparison
Table

Organizational Governance
Human Rights
Labor Practices
The Environment
Fair Operating Practices
Consumer Issues
Community Involvement andDevelopment

Environmental Social Governance Report 2023

336

Information Disclosure
Based on TCFD
Recommendations
Environmental Policy
Governance
Strategies
Risks / Opportunities
Climate Change Measures
Risk Management
Indicators and Targets

Copyright TAISEI CORPORATION All Rights Reserved.

Environmental Social Governance Report 2023

337

ESG Data

Environmental Data

Social Data

Governance Data

ESG Data
Environmental Data

Environmental Data

Social Data
Human Resources Data

Environmental Social Governance Report 2023

338

Indicators

FY2018FY2019FY2020

FY2021

FY2022

Boundary

14,433

14,562

14,62014,518

14,466

Consolidated

4,108

4,161

4,257

4,263

4,268

Consolidated

8,123

8,163

8,160

8,103

8,133

Consolidated

2,056

2,074

2,044

1,979

1,898

Consolidated

146

164

159

173

167

Consolidated

Male

11,906

11,971

11,95911,822

11,722

Consolidated

Female

2,527

2,591

2,661

2,696

2,744

Consolidated

13,567

13,658

13,692

13,585

13,611

Consolidated

818

842

873

873

855

Consolidated

—

—

—

3,993

4,035

Consolidated

8,490

8,507

8,572

8,579

8,613

2,298

2,273

2,323

2,324

2,333

Number of
employees(consolidated / full-

Unit
Persons

time employees))
Civil
Engineeringbusiness
Building
Construction
business
Real Estate
Development
business
Otherbusinesses

Japanese
employees
Non-Japaneseemployees
Number of nonregular
employees
Number of
employees (fulltime

Taisei
Corporation

employees)
Civil
Engineeringbusiness

Environmental Social Governance Report 2023

Taisei
Corporation

339

Indicators

Unit

FY2018FY2019FY2020

FY2021

FY2022

6,040

6,072

6,084

6,084

6,109

152

162

165

171

171

Male

6,949

6,937

6,970

6,955

6,939

Female

1,541

1,570

1,602

1,624

1,674

8,391

8,394

8,457

8,454

8,538

51

51

60

65

75

Twenties

16.5

17.1

18.0

18.5

18.6

Thirties

19.0

19.2

19.7

20.4

21.3

Forties*2

30.1

26.3

22.8

21.0

19.7

Fifties or more

34.4

37.4

39.4

40.1

40.4

1,134

1,173

1,288

1,255

1,284

Building
Construction
business
Real Estate
Development
business

Japanese
employees
Non-Japaneseemployees*

1Boundary

Taisei
Corporation

Taisei
Corporation

Taisei
Corporation
Taisei
Corporation
Taisei
Corporation
Taisei
Corporation
Taisei
Corporation
Taisei
Corporation%

Number of nonregular

Persons

employees*3

Environmental Social Governance Report 2023

Taisei
Corporation
Taisei
Corporation

Taisei
Corporation

340

Indicators

Unit

FY2018FY2019FY2020

FY2021

FY2022

251

264

329

302

276

Male

207

215

270

253

218

Female●

44

49

59

49

58

30

27

11

28

69

Male

29

22

11

23

60

Female●

1

5

0

5

9

10,512

10,103

9,850

9,635

9,929

43.0

43.0

43.0

43.0

43.0

43.3

43.3

43.3

43.3

43.4

41.8

41.8

41.6

41.5

41.2

18.3

18.3

18.3

18.2

18.1

18.6

18.7

18.8

18.8

18.7

16.6

16.5

16.2

15.9

15.6

Number of hires(new graduates)

Boundary
Taisei
Corporation
Taisei
Corporation
Taisei
Corporation

Persons
Number of midcareer hires

Average annual
salaryThousandyen

Average age

MaleYears old

FemaleAverage service
years

Male

FemaleYears

Environmental Social Governance Report 2023

Taisei
Corporation
Taisei
Corporation
Taisei
Corporation
Taisei
Corporation
Taisei
Corporation
Taisei
Corporation
Taisei
Corporation
Taisei
Corporation
Taisei
Corporation
Taisei
Corporation

341

Indicators

Unit

FY2018FY2019FY2020

FY2021

FY2022

Boundary

Turnover rates*5

—

—

—

2.1

2.3

Taisei Group*

Turnover rates*5

1.1

1.2

1.2

1.5

1.6

5.4

7.4

7.6

8.3

10.0

Taisei
Corporation%
Turnover rate of
employees within
three years of

Taisei
Corporation

5●

hiring*Notes: 1. ●KPI of Each Division:
Target: 25% Ratio of newly hired female engineers/30% Ratio of newly hired female employees by FY2030
Target: 6% by FY2026/4% by FY2030*1

Figures for FY2018 to FY2021 have been retroactively adjusted. Consequently, the counts for non-Japanese employees (consolidated) and Japanese employees(both Non-consolidated and consolidated) have also been adjusted retroactively.

*2

Figures for FY2020 have been adjusted retroactively.

*3

Figures for both FY2020 and FY2021 have been adjusted retroactively.

*4

The scope of coverage:TAISEI Corporation and seven major Group companies*5

Full time staff voluntary turnover rates

Rate of women in management positions,Rate of taking childcare leave by
male employees, and gender wage gap

Rate ofCompany
nameGender wage gap (%) Note1

Rate oftakingwomen inchildcaremanagement

Leave bypojisions

male

(%)*1

employees

Part-timeAll

Regularand fixed-

workers

workers

termworkers(%)
Taisei
Corporation
Taisei Rotec
Corporation

Description

6.0

119.1

*3

59.2

59.4

58.3

*4

0.3

121.7

*3

54.8

56.2

53.3

*4

0.5

72.0

*2

68.8

80.2

52.9

*4

※

※

77.5

76.7

66.4

*4

Taisei-Yuraku
Real Estate
Co.Ltd.
TAISEI U-LEC
CO., LTD

Environmental Social Governance Report 2023

342

Rate ofCompany
nameGender wage gap (%) Note1

Rate oftakingwomen inchildcaremanagement

Leave bypojisions

male

1

(%)*

Part-time

employees

All

Regularand fixed-

workers

workers

termworkers(%)
Taisei SETSUBI
Co., Ltd.

3.3

—

※

※

1.9

—

9.5

※

J-FAST Co., Ltd.

Description

*1

61.7

59.4

65.1

*4

71.9

72.0

69.1

*4

46.6

64.7

26.8

*4

72.6

72.3

67.3

*4

Taisei-Yuraku
Real Estate*1

Sales Co., Ltd.
Taisei HOUSINGCORPORATION

Notes: 1. Caluculated in accordance with the provisions of the #Act on Promotion of Women's Particpation and Advandement in the Workplace"(Act No.64 of
2015; the "Women's Advancement Act"). The rate of men taking childcare leave by employment category is as follows:

Company name

Career-track

Professional-grade

Minor career-track

positions

positions

positions

Taisei SETSUBI Co., Ltd.
Taisei-Yuraku Real Estate
Sales Co., Ltd.

20.0%

—

—

0.0%

—

—

*2,3 The rate of childcare leave utilization is calculated as set forth in Article 71-4.
*4

As for the gender wage gap, the Company has applied the same wage system regardless of gender.
An asterisk (*) indicates that statement has been omitted as the entity is outside the scape of mandatory disclosure under the Women's Advanement Act and theChildcare and Caregiver Leave Act.

Diversity and Inclusion Data

Indicators
Number of female
managers*

1,2◎Female managers
ratio*●Unit

FY2018FY2019FY2020

FY2021

FY2022

Persons

167

197

236

277

314

%

3.2

3.8

4.5

5.1

5.9

Environmental Social Governance Report 2023

Boundary
Taisei
Corporation
Taisei
Corporation

343

Indicators
Number of female
engineers●

Unit

FY2018FY2019FY2020

FY2021

FY2022

Persons

663

698

738

767

809

%

9.1

9.5

9.9

10.2

10.6

—

—

—

2.10

2.15

2.33

2.35

2.20

2.27

2.35

739

800

862

878

905

2

3

3

4

4

Female engineers ratio

Boundary

Rate of employment of
persons withdisabilities

Taisei
Corporation
Taisei
Corporation

TaiseiGroup*3%
Rate of employment of
persons withdisabilities
Number of employees
reemployed after leave
retirement
Number of former

Corporation

Taisei
Corporation

Persons

employees who took
advantage of the JobReturn system*

TaiseiTaisei
Corporation

4

Notes: 1. ◎KPI (2021- 2023): Nmber of of female managers 330 persons (FY2023)
Notes: 2. ●KPI by Division:
Target: Increase the ratio of female managers by 10 times or more by 2025 (compared to fiscal 2015).
Target: Increase the percentage of female engineers to at least 15% by 2030 (compared to fiscal 2015).
*1

Figures for FY2021 have been retroactively adjusted*2

Figures are aggregated as of July 1*3

The scope of coverage: Taisei Corporation and seven major Group companies*4

A system that offers reemployment opportunities by providing job listings from the Company and its Group companies to employees who have voluntarily retired
and wish to return to work due to a change or improvement in their original reasons for retirement.

Diversity and Inclusion Education Data

Environmental Social Governance Report 2023

344

Indicators

Unit

Achievements

Number of participants indiversity management training

Subjects

Boundary
Taisei

1,049

FY2013~FY2022

managerial staff

246

FY2012~FY2022

female employee

8

FY2021~FY2022

Position holder

172

FY2013~FY2022

Corporation

Next Generation Leader
Development Training Number

Taisei
Corporationof participants
Persons
Number of female position
leadership and coaching training

Taisei
Corporation

participants
Number of Non-Japaneseemployees taking training

Non-Japanese

Taisei

employees

Corporation

Childcare and Nursing Care Data

Indicators

Unit

FY2018FY2019FY2020

FY2021

FY2022

285

290

299

281

290

244

241

253

232

248

41

49

46

49

42

94.9

100

100

100

99.6

94.2

100

100

100

119

—

—

7.1

9.7

11.6

Number of employees
taking leave forchildcare
PersonMale

FemaleRate of taking
childcare leave

Boundary

Taisei
Corporation

Taisei
Corporation
Taisei
Corporation
Taisei
Corporation%

Rate of taking
childcare leaveby males*1◎

Taisei
Corporation

Average numberof days ofDayschildcare leave

Taisei
Corporation●

taken by males

Environmental Social Governance Report 2023

345

Indicators

Unit

FY2018FY2019FY2020

FY2021

FY2022

Boundary

100

100

100

100

97.6

97.7

99.7

100

99.7

96.6

Male

100

100

100

100

100

Female

97.5

97.9

100

97.9

95.6

12

27

35

45

58

0

2

1

1

1

—

—

—

175

179

Rate of taking
childcare leaveby females
Rate of return towork afterchildcare leave%

Taisei
Corporation

Taisei
Corporation

Taisei
Corporation
Taisei
Corporation

Number of employees
who use flextime forchildcare (FY2018-

Taisei
Corporation

FY2022)
Number of employees
taking nursing care

Personsleave
Number of employees
taking paid nursing
care leave*2

Taisei
Corporation

Taisei
Corporation

Notes: 1. ◎KPI (2021- 2023): Rate of taking childcare leave by males: 100% (by FY2023)
Notes: 2. ●KPI by Division:
Rate of taking childcare leave by males: 100%
The average number of childcare leave days taken by males: At least 14 days
*1

For the period from FY2018 to FY2021, calculations are based on an internal system that considers the percentage of male employees who have taken childcare
leave during their entitlement period when their child was born. For FY2022, the calculations are based on the Act on Childcare Leave/Caregiver Leave, using adenominator of employees who had children during FY2022 and a numerator of employees who took parental leave for child-rearing purposes during FY2022.
The rate remains at 100% for male employees whose children were born in or after FY2017.

*2

Figures for FY2021 have been retroactively adjusted

Rate of paid leave utilization and refresh leave utilization

Environmental Social Governance Report 2023

346

Indicators

Unit

Rate of paid leave●

utilization

Rate of milestone
leave utilization*1●%

Rate of refresh leave
utilization*

2●

FY2018FY2019FY2020

FY2021

FY2022

Boundary

47.5

46.2

46.5

49.3

54.5

94.0

84.5

79.2

83.4

78.6

92.2

91.9

55.8

15.4

39.6

Taisei
Corporation
Taisei
Corporation
Taisei
Corporation

Notes: 2 ●KPI by Division: Rate of paid leave utilization 60% (FY2025) / Rate of milestone leave and refresh leave utilization 100%（Every year)*1

Milestone leave : Special leave able to be taken when a employee at a construction site office is transferred or reaches certain milestones of the construction
project.

*2

Refresh leave: Special leave that can be taken when reaching certain milestones concerning years of employment. The refresh leave utilization rate decreased
as compared to a normal year because acquisition restrictions were extended due to the COVID-19 pandemic after FY2020.

Data on Stakeholder Engagement

Indicators

Unit

FY2018FY2019FY2020

FY2021

FY2022

—

90.6

90.8

90.1

89.8

100

100

100

100

100

—

80.8

—

77.6

—

Percentage of all
employees covered bycollective
Labor union participation%

rate
Employees satisfaction
rate*

Boundary

Taisei
Corporation

Taisei
Corporation
Taisei
Corporation* The survey was conducted every other year by union members (non-consolidated) in Taisei Corporation.

Data on Working Hours and Holidays

Indicators

Unit

Total hours worked permonth

FY2018FY2019FY2020

FY2021

FY2022

192.8

193.9

194.1

190.9

187.5

37.8

39.0

39.8

38.5

36.6

Boundary
Taisei
Corporation

Hours
Average overtime hours
per month

Environmental Social Governance Report 2023

Taisei
Corporation*1

347

Indicators

Unit

FY2018FY2019FY2020

FY2021

FY2022

—

—

25.8

23.5

18.2

—

—

—

26.6

27.8

—

—

—

49.5

52.2

Boundary

Health management
overtime hours*2*3(Rate of employees
who worked more than

Taisei
Corporation

720 overtime hours peryear)◎
Worksite
implementation rate ofa five-day work week%

(closed eight days inTaisei
Corporation

four weeks) (Building
Construction)◎
Worksite
implementation rate ofa five-day work week
(closed eight days inTaisei
Corporation

four weeks) (Civil
Engineering)◎

Notes: 1. ◎KPI (2021- 2023): Worksite implementation rate of a five-day work week (closed eight days in four weeks) (Building Construction and Civil Engineering)
100%(by FY2023)
Health management overtime hours

720 hours/year (No exceedance)*1

Boundaries are employees excluding managers*2

Health management overtime hours：These are the overtime hours used to determine whether preventive measures against health issues, such as one-on-one
consultations with physicians, should be implemented. This total includes both statutory overtime hours and working hours on legal holidays.

*3

Figures for FY2020, FY2021 and FY2022 have been retroactively adjusted.

Data on Training and Career in Capacity Development

Indicators

Unit

FY2018FY2019FY2020

FY2021

FY2022—

261,059

233,143

231,706

566,424

36.6

30.5

27.0

26.7

65.0

—

—

—

298,937

406,078

Total training hours
for capacity
development*1

1

Total training
budget*1

Taisei
Corporation

Hours

Training hours perperson*Boundary

Thousandyen

Environmental Social Governance Report 2023

Taisei
Corporation
Taisei
Corporation

348

Indicators

Unit

FY2018FY2019FY2020

FY2021

FY2022

—

—

—

4,360

76,585

45

28

20

38

30

%

87.7

86.5

88.0

89.0

88.2

Hours

253.7

281.1

176.3

176.7

511.5

Boundary

Total number oftraining attendees(annual cumulative
count)*Taisei
Corporation

1

Persons
Number of regular
employees
promoted from non-Taisei
Corporation

regular employees
Implementation rateof careerdevelopment

Taisei
Corporation

review●
Training hours perperson for new
employee*2

Taisei
Corporation

Notes: 1. ●KPI by Division: Rate of Implementation rate of corer development review 100% (every year)*1

Up to FY2021, data from training programs sponsored by the head office were collected. From FY2022, the results of training programs sponsored by branches
and companywide e-Learning are also included in the data.

*2

Figures for both FY2018 and FY2021 have been adjusted retroactively.

Data on Health and Safety Relations

Indicators

Unit

Accident frequency
rate
Accident frequency
rate

Accident severity rate—

FY2018FY2019FY2020

FY2021

FY2022

0.58

0.64

0.37

0.56

0.38

0.43

0.62

0.35

0.44

0.31

0.14

0.26

0.34

0.08

0.01

Environmental Social Governance Report 2023

Boundary
TaiseiGroup*1
Taisei
Corporation
Taisei
Corporation

349

Indicators

Unit

FY2018FY2019FY2020

FY2021

FY2022

Boundary

50

74

35

45

35

—

—

5

1

0

2

4

5

1

0

0

0

0

0

0

2

4

5

1

0

1,025

1,049

1,063

1,200

1,298

Number ofoccupational accident
leaves (excluding fatal

Taisei
Corporation

accident
Number of fatal
accidents

Cases

◎

Number of fatal
accidents
Number of workrelated employee
fatalities
Number of workrelated contractor

Persons

fatalities
Number of employees
receiving safety andhealth training*2

TaiseiGroup*1
Taisei
Corporation

Taisei
Corporation

Taisei
Corporation

Taisei
Corporation

Notes: 1. ◎KPI (2021- 2023): Number of fatal accidents 0 cases (by FY2023)*1

The scope of coverage: Taisei Corporation and six major Group companies.

*2

Aggregated from April to March

Data on Health Relations

Indicators

Unit

Implementation rate ofstress checks●
Response rate ofhealth awareness

FY2018FY2019FY2020

FY2021

FY2022

89.8

90.2

91.6

91.0

92.0

—

—

—

100

100

Boundary
Taisei
Corporation%

surve●

Environmental Social Governance Report 2023

Taisei
Corporation

350

Indicators

Unit

FY2018FY2019FY2020

FY2021

FY2022

Boundary

Number of empoyees
using the fconsultation
services for female

136
Persons

—

—

—

—

health problem（20212022）

Taisei
Corporation(Femtech) (Femtech)

Notes: 1. ●KPI by Division: Response rate of health awareness survey 100% (Every year)

Data on CCUS and Productivity

Indicators

Unit

FY2018FY2019FY2020

FY2021

FY2022

％

—

75

100

100

100

—

—

0.67

0.65

0.67

BoundaryWorksite registration
rate of Construction
Career Up System

Taisei
Corporation

1 ◎(CCUS* )Productivity (net sales /number of employees)(Taisei Group)◎

Millionyen

TaiseiGroup*2

Notes: 1. ◎KPI (2021- 2023): Worksite registration rate of Construction Career Up System 100% (by FY2023)*1CCUS: system to register and visualize the skills, experience and qualifications, status of enrollment in social insurance programs, etc., of each of the skilledconstruction workers under uniform rules of the industry, to strengthen cooperation with partner organizations. non-consolidated data.
*2The scope of coverage: Taisei Corporation and 19 Group companies.

Data on Customer satisfaction

Indicators

Unit

FY2018FY2019FY2020

FY2021

FY2022

92.0

88.0

90.0

90.0

85.9

96.0

98.0

98.6

97.6

95.8

Customer satisfaction(BuildingConstruction)◎

Taisei
Corporation%

Customer satisfaction(Civil Engineering)

Boundary◎

Taisei
Corporation

Data on Community activities and volunteering investment costs

Environmental Social Governance Report 2023

351

Indicators
Community activities
and volunteering
investment costs

Unit

Millionyen

FY2018FY2019FY2020

FY2021

FY2022

700

838

492

787

673

Environmental Social Governance Report 2023

Boundary

Taisei
Corporation

352

Data on Technology Development and Intellectual Property

Indicators
Research anddevelopment
expenditure

Unit

Billionyen

Number of patents
registered
Number of patentapplications filed◎

FY2018FY2019FY2020

FY2021

FY2022

Boundary

124

135

142

152

168

Consolidated

250

169

202

209

232

219

188

266

272

283

—

—

5

6

10

Cases

Taisei
Corporation
Taisei
Corporation

Number of orders
received for net Zero
Energy Buildings(ZEBs)Taisei
Corporation◎

Notes: 1. ◎KPI (2021- 2023): Number of patent applications filed 280 cases (by FY2023)
Number of orders received for net Zero Every Building (ZEBs) 8 cases (by FY2023)

Data on Procurement Practices, and Human Rights

Indicators

Unit

FY2018FY2019FY2020

FY2021

FY2022

Boundary

74.2

—

92.1

—

91.3

97.9

97.4

99.5

95.3

96.0

—

—

—

0

0

Supplier’s conformity
rates with the TaiseiGroup Sustainability
Procurement
Standards*◎

Corporation%

Human rights training
precipitation rate
Cases of violation of therights of indigenous

TaiseiCases

peoples

Taisei
Corporation

Taisei
Corporation

Notes: 1. ◎KPI (2021- 2023): Supplier's conformity rate with the Taisei Group Sustainable Procurement Standards 100% (by FY2023)*

Figures for FY2018 are the average implementation rate of sustainability activities.

Environmental Social Governance Report 2023

353

Governance Data
Number of Members of the Board, Audit & Supervisory Board Members,
and Executive Officers

Environmental Social Governance Report 2023

354

Indicators

Unit

FY2018FY2019FY2020

FY2021

FY2022

Number of Members of

Persons

12

12

12

12

12

Male

11

11

11

11

11

Female

1

1

1

1

1

4

4

4

4

4

Male

3

3

3

3

3

Female

1

1

1

1

1

6

6

6

6

6

Male

6

6

5

5

5

Female

0

0

1

1

1

4

4

4

4

4

Male

4

4

3

3

3

Female

0

0

1

1

1

58

59

58

63

64

58

59

58

63

64

the Board

Number of External
Members of the Board

Boundary

Number of Audit &Supervisory Board
Members

Taisei
Corporation
Taisei
Corporation
Taisei
Corporation
Taisei
Corporation
Taisei
Corporation
Taisei
Corporation

Taisei
Corporation

Taisei
Corporation
Taisei
Corporation

Number ofExternal Audit &Supervisory Board

Taisei
Corporation

Members

Number of Executive
Officers

MaleEnvironmental Social Governance Report 2023

Taisei
Corporation
Taisei
Corporation
Taisei
Corporation
Taisei
Corporation

355

Indicators

FemaleUnit

FY2018FY20190

FY20200

FY20210

Environmental Social Governance Report 2023

FY20220

Boundary0

Taisei
Corporation

356

Data on Officer Remuneration

Indicators

Unit

FY2018FY2019FY2020

FY2021

FY2022

755

741

814

738

669

46

58

62

62

54

FY2018FY2019FY2020

FY2021

FY2022

—

18

18

18

18

FY2018FY2019FY2020

FY2021

FY2022

97

94

94

95

97

100

100

100

100

100

—

24

28

30

73

Members of the
Board

Boundary
Taisei
Corporation

MillionExternal

yen

Members of the
Board

Taisei
Corporation

Data on Political donations

Indicators

Political donations

Unit
Millionyen

Boundary
Taisei
Corporation

Data on Ethics, Information Security

Indicators

Unit

Boundary

Participation rate of elearning for the Group’s
Structure of Values andTaisei
Corporation

Policies%
Response rate ofCorporate Ethics
Helpline and Group

TaiseiGroup*1

Helpline
Operational results of
the whistleblowing andCases

consultation system

Environmental Social Governance Report 2023

TaiseiGroup*1357

Indicators

Unit

FY2018FY2019FY2020

FY2021

FY2022

Boundary

％

100

100

100

100

100

Persons

—

0

0

0

0

Cases

0

0

1

0

0

Times

19

5

4

3

6

Rate of participation incompliance training,
including anticorruption training

Taisei
Corporation◎

Number of dismissals
due to corruption andbribery
Number of major
information security
accidents◎
Number of information
security education
sessions

Taisei
Corporation

TaiseiGroup*2

Taisei
Corporation

Notes: 1. ◎KPI (2021- 2023): Rate of participation in compliance training, including anti-corruption training (by FY2023)
Notes: 1. ◎KPI (2021- 2023): Number of major information security accidents (by FY2023)*1

The scope of coverage: Taisei Corporation and 21 Group companies.

*2

The scope of coverage: Taisei Corporation and eight major Group companies.

Copyright TAISEI CORPORATION All Rights Reserved.

Environmental Social Governance Report 2023

358

GRI Standards Comparison Chart

Universal Standards (General Disclosures 2021 / Material Topics 2021)
300 series (Environmental topics)

200 series (Economic topics)

400 series (Social topics)

Universal Standards(General Disclosures 2021 / Material Topics 2021)
Reasons forDisclosures

Requirements

No.

Omission/Additional
Information

General Disclosures 2021
1. The organization and its reporting practices
102-1

Organizational details

102-2

Entities included in the organization’s sustainability reporting

AR: P.116
AR: P.116
SR: P.5
AR: P.5

102-3

Reporting period, frequency and contact point

AR: P.116(t-csr@pub.taisei.co.jp)

102-4

Restatements of information

—

102-5

External assurance

AR: P.5

2. Activities and workers

Environmental Social Governance Report 2023

359

Reasons forDisclosures

Requirements

No.

Omission/Additional
Information

102-6

Activities, value chain, and other business relationships

102-7

Employees

102-8Workers who are not employees

AR: P.78-80
SR: P.5-8
AR: P.112
SR: P.9
AR: P.112
SR: P.9

3. Governance
AR: P.87,92
102-9

Governance structure and composition

AR: P.63-64
CG: P.4

102-10Nomination and selection of the highest governance body102-11Chair of the highest governance body102-12102-13

Role of the highest governance body in overseeing themanagement of impacts

Delegation of responsibility for managing impacts

AR: P.89
CG: P.2,4
AR: P.99
CG: P.6
AR: P.85-92
AR: P.63-64
CG: P.3
AR: P.85-86
CG: P.3
Board review/approval is102-14

Role of the highest governance body in sustainability

obtained for publication of thereportingreport
CG: P.3

102-15

Conflicts of interest

CG: P.7-8

102-16

Communication of critical concerns

AR: P.93-98

102-17

Collective knowledge of the highest governance body

AR: P.87

Evaluation of the performance of the highest governance

AR: P.88

body

CG: P.4-5

102-18102-19Remuneration policies

Environmental Social Governance Report 2023

AR: P.90-91
CG: P.11-12

360

Reasons forDisclosures

Requirements

No.

Omission/Additional
Information

102-20

Process to determine remuneration

102-21

Annual total compensation ratio

AR: P.90-91
CG: P.11-12—

4. Strategy, policies and practices

102-22

Statement on sustainable development strategy

AR: P.9-16
AR: P.57-60
Web: Action Guidelines for
Taisei Personnel and the Taisei

102-23

Policy commitments

Group as a Whole
Web: Human Rights Policy
AR: P.55-56

102-24

Embedding policy commitments

AR: P.78
AR: P.93-95
AR: P.55-56

102-25

Processes to remediate negative impacts

AR: P.78
AR: P.93-95

102-26

Mechanisms for seeking advice and raising concerns

102-27

Compliance with laws and regulations

102-28

Membership associations

AR: P.93-95
AR: P.66
AR: P.93-95
Web: Participation in Initiatives

5. Stakeholder engagement
AR: P.5-6
102-29Approach to stakeholder engagement

AR: P.57-62
AR: P.89

102-30

Collective bargaining agreements

AR: P.115

Material Topics 2021
1. Guidance to determine material topics
2. Disclosures on material topics

Environmental Social Governance Report 2023

361

Reasons forDisclosures

Requirements

No.

Omission/Additional
Information

103-1

Process to determine material topics

AR: P.31-34

103-2

List of material topics

AR: P.31-34

103-3

Management of material topics

Environmental Social Governance Report 2023

AR: P.31-34
AR: P.63-81

362

200 series (Economic topics)
Reasons forDisclosures

Requirements

No.

Omission/Additional
Information

GRI 201: Economic Performance 2016

3-3

Management of material topics

Web: Medium-Term Business
Plan (2021-2023)
AR:P7-8

201-1

201-2

Direct economic value generated and distributed

Financial implications and other risks and opportunities due
to climate change

Web: Annual Securities Report

AR: P.67-72
AR: P.74
AR: P.22-26

201-3

Defined benefit plan obligations and other retirement plans

SR: P.121-123

201-4

Financial assistance received from government—

GRI 202: Market Presence 2016

202-1

202-2

Ratios of standard entry level wage by gender compared to
local minimum wage
Proportion of senior management hired from the local
community——

GRI 203: Indirect Economic Impacts 2016
3-3

Management of material topics

AR: P.31-34

203-1

Infrastructure investments and services supported

AR: P.35-44

203-2

Significant indirect economic impacts

AR: P.45-48
AR: P.112-115

GRI 204: Procurement Practices 2016
204-1

Proportion of spending on local suppliers—

GRI 205: Anti-corruption 2016

Environmental Social Governance Report 2023

363

Reasons forDisclosures

Requirements

No.

Omission/Additional
Information
AR: P.31-34

3-3Management of material topics

205-1

Operations assessed for risks related to corruption

AR: P.93-98

Communication and training about anti-corruption policies

AR: P.93-95

and procedures

AR: P.115

205-2

205-3

Confirmed incidents of corruption and actions taken

AR: P.93-98

AR: P.93-95
AR: P.115

GRI 206: Anti-competitive Behavior 2016

206-1

Legal actions for anti-competitive behavior, anti-trust, and

AR: P.95

monopoly practices

AR: P.115

GRI 207: Tax 2019
207-1

Approach to tax

Web: Tax Compliance

207-2

Tax governance, control, and risk management

—

207-3

Stakeholder engagement and management of concerns
related to tax

Environmental Social Governance Report 2023—

364

300 series (Environmental topics)
Reasons forDisclosures

Requirements

No.

Omission/Additional
Information

GRI 301: Materials 2016
AR: P.65-66
3-3Management of material topics

AR: P.71
AR: P.112

301-1

Materials used by weight or volume

Web: Environmental Data

301-2

Recycled input materials used

Web: Environmental Data

301-3

Reclaimed products and their packaging materials—

GRI 302: Energy 2016
AR: P.31-34
3-3Management of material topics

AR: P.65-68
AR: P.74

302-1

Energy consumption within the organization

Web: Environmental Data

302-2

Energy consumption within the organization

—

302-3

Energy intensity

Web: Environmental Data

302-4

Reduction of energy consumption

—

302-5

Reductions in energy requirements of products and services—

GRI 303: Water and Effluents 2018
AR: P.65-66

3-3Management of material topics

303-1

Interactions with water as a shared resource

Web: Environmental Data

303-2

Management of water discharge-related impacts—

AR: P.112

Web: Business Activities in
303-3

Water withdrawal

Water-stressed Regions
Web: Environmental Data

Environmental Social Governance Report 2023

365

Reasons forDisclosures

Requirements

No.

Omission/Additional
Information
Web: Business Activities in

303-4

Water discharge

Water-stressed Regions
Web: Environmental Data
Web: Business Activities in

303-5

Water consumption

Water-stressed Regions
Web: Environmental Data

GRI 304: Biodiversity 2016
AR: P.65-66
3-3Management of material topics

AR: P.72-73
AR: P.112

Operational sites owned, leased, managed in, or adjacent304-1

to, protected areas and areas of high biodiversity value

AR: P.72

outside protected areas

304-2

304-3

304-4

Significant impacts of activities, products, and services on
biodiversity
Habitats protected or restored
IUCN Red List species and national conservation list
species with habitats in areas affected by operations

AR: P.72

AR: P.72—

GRI 305: Emissions 2016
AR: P.65-68
3-3Management of material topics

AR: P.74
AR: P.96-97
AR: P.112
AR: P.22
AR: P.34

305-1

Direct (Scope 1) GHG emissions

AR: P.65-68
AR: P.74
AR: P.112
Web: Environmental Data

Environmental Social Governance Report 2023

366

Reasons forDisclosures

Requirements

No.

Omission/Additional
Information
AR: P.22
AR: P.34

305-2

Energy indirect (Scope 2) GHG emissions

AR: P.65-68
AR: P.74
AR: P.112
Web: Environmental Data
AR: P.22
AR: P.34

305-3

Other indirect (Scope 3) GHG emissions

AR: P.65-68
AR: P.74
AR: P.112
Web: Environmental Data

305-4

GHG emissions intensity

305-5

Reduction of GHG emissions

305-6

Emissions of ozone-depleting substances (ODS)

305-7

Nitrogen oxides (NOX), sulfur oxides (SOX), and othersignificant air emissions

AR: P.112
Web: Environmental Data
AR: P.112
Web: Environmental Data
Web: Environmental Data

Web: Environmental Data

GRI 306: Effluents and Waste 2016
AR: P.65-66
3-3Management of material topics

AR: P.96-97
AR: P.112

306-1

Water discharge by quality and destination

Web: Environmental Data

306-2

Waste by type and disposal method

Web: Environmental Data
Web: Compliance with

306-3

Significant spills

Environment-related Laws andRegulations

306-4

Transport of hazardous waste

Not applicable

306-5

Water bodies affected by water discharges and/or runoff—

GRI 307: Environmental Compliane 2016

Environmental Social Governance Report 2023

367

Reasons forDisclosures

Requirements

No.

Omission/Additional
Information
Web: Compliance with

307-1

Non-compliance with environmental laws and regulations

Environment-related Laws andRegulations

GRI 308: Supplier Environmental Assessment 2016
AR: P.31-34
3-3Management of material topics

AR: P.65-66
AR: P.78
AR: P.96-97

308-1

a. New suppliers that were screened using environmental
criteria

AR: P.78
Web: Promotion of Supply Chain
Management
AR: P.65

308-2

Negative environmental impacts in the supply chain and

AR: P.78

actions taken

Web: Environmental Due
Diligence

Environmental Social Governance Report 2023

368

400 series (Social topics)
Reasons forDisclosures

Requirements

No.

Omission/Additional
Information

GRI 401: Employement 2016
AR: P.31-34
3-3Management of material topics

AR: P.51-54
AR: P.81

401-1

401-2

401-3

New employee hires and employee turnover
Benefits provided to full-time employees that are notprovided to temporary or part-time employees

AR: P.112-115—

AR: P.53-54

Parental leave

AR: P.112-115

GRI 402: Labor/Management Relations 2016
* When an employee istransferred for a business
402-1

Minimum notice periods regarding operational changes

reason, such an employee isnotified immediately after thedecision is made.

GRI 403: Occupational Health and Safety 2018

403-1

403-2

403-3

403-4

Workers representation in formal joint management–worker
health and safety committees

Hazard identification, risk assessment, and incident
investigation
Occupational health services

Worker participation, consultation, and communication on
occupational health and safety

Web: Thorough Management ofOccupational Health and Safety
AR: P.79

AR: P.79

AR: P.79
Web: Realization of an Attractive
Working Environment That Is
Good to Work in

403-5

Worker training on occupational health and safety

AR: P.79

403-6

Promotion of worker health

AR: P.54

Environmental Social Governance Report 2023

369

Reasons forDisclosures

Requirements

No.

403-7

403-8

Omission/Additional
Information

Prevention and mitigation of occupational health and safety
impacts directly linked by business relationships

Workers covered by an occupational health and safety
management system

AR: P.54
AR: P.79
AR: P.114

AR: P.79

AR: P.7
AR: P.22
403-9

Work-related injuries

AR: P.54
AR: P.79
AR: P.114
AR: P.7,22403-10Work-related ill health

AR: P.114
Web: Health Management

GRI 404: Training and Education 2016
3-3

Management of material topics

AR: P.51-54
AR: P.7,22

404-1

Average hours of training per year per employee

AR: P.114
Web: Human Resource
Development

404-2

404-3

Programs for upgrading employee skills and transition

AR: P.51-54

assistance programs

AR: P.114

Percentage of employees receiving regular performanceand career development reviews

AR: P.114

GRI 405:Diversity and Equal Opportunity 2016
Human Resources Development
3-3Management of material topics

Policy (Diversity & Inclusion
Policy)AR: P.51-54
AR: P.51-54

405-1

Diversity of governance bodies and employees

AR: P.81
AR: P.112,115

Environmental Social Governance Report 2023

370

Reasons forDisclosures

Requirements

No.

405-2

Omission/Additional
Information

Ratio of basic salary and remuneration of women to men

AR: P.115
Web: ESG Data

GRI 406: Non-Discrimination 2016

3-3

Management of material topics

406-1

Incidents of discrimination and corrective actions taken

Human Rights Policy
AR: P.55-56
Web: Human Rights

GRI 407: Freedom of Association and Collective Bargaining 2016

407-1

Operations and suppliers in which the right to freedom of

AR: P.55-56

association and collective bargaining may be at risk

AR: P.78

GRI 408: Child Labor 2016
3-3

408-1

Management of material topics

Human Rights Policy

Operations and suppliers at significant risk for incidents of

AR: P.55-56

child labor

AR: P.78

GRI 409: Forced or Compulsory Labor 2016
3-3

409-1

Management of material topics

Operations and suppliers at significant risk for incidents offorced or compulsory labor

Human Rights Policy
AR: P.55-56
AR: P.78
Web: Human Rights DD

GRI 410: Security Practices 2016

410-1

Security personnel trained in human rights policies or(At present, no information isprocedures

collected)

GRI 411: Rights of Indigenous Peoples 2016
411-1

Incidents of violations involving rights of indigenous peoples

AR: P.114

GRI 412:Human Rights Assessment 2016

3-3

Management of material topics

Environmental Social Governance Report 2023

AR: P.31-34
AR: P.55-56

371

Reasons forDisclosures

Requirements

No.

412-1

412-2

Information

Operations that have been subject to human rights reviews
or impact assessments

Employee training on human rights policies or procedures
Significant investment agreements and contracts that

412-3

Omission/Additional

include human rights clauses or that underwent humanrights screening

AR: P.114
Web: Risk Management andRisk Assessment
AR: P.114

Web: Risk Management andRisk Assessment

GRI 413: Local Communities 2016

3-3

413-1

413-2

Management of material topics

Operations with local community engagement, impact
assessments, and development programs
Operations with significant actual and potential negative
impacts on local communities

WEB: Contribution to Local
Communities

AR: P.72

Not applicable

GRI 414: Supplier Social Assessment 2016

3-3

Management of material topics

AR: P.31-34
AR: P.78
AR: P.78

414-1

New suppliers that were screened using social criteria

Web: Risk Management andRisk Assessment
AR: P.78

414-2

Negative social impacts in the supply chain and actions

Web: Risk Management andtaken

Risk Assessment
Web: Human Rights DD

GRI 415: Public Policy 2016

3-3

Management of material topics

415-1

Political contributions

AR: P.31-34
AR: P.81
AR: P.115

GRI 416: Customer Health and Safety 2016

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372

Reasons forDisclosures

Requirements

No.

3-3

416-1

416-2

Omission/Additional
Information
AR: P.31-34

Management of material topics

AR: P.75-77

Assessment of the health and safety impacts of product and

AR: P.75-77

service categories

AR: P.112-115

Incidents of non-compliance concerning the health and—safety impacts of products and services

GRI 417:Marketing and Labeling 2016

3-3

417-1

417-2

417-3

AR: P.31-34

Management of material topics

AR: P.75-76

Requirements for product and service information and

AR: P.75-76

labeling
Incidents of non-compliance concerning product and service—

information and labeling
Incidents of non-compliance concerning marketing—

communications

GRI 418:Customer Privacy 2016
Policy on the Protection of

3-3Management of material topics

Personal Information
AR: P.31-34

418-1

Substantiated complaints concerning breaches of customer

AR: P.115

privacy and losses of customer data

GRI 419: Socioeconomic Compliance 2016
3-3

419-1

Management of material topics

AR: P.31-34

Non-compliance with laws and regulations in the social and

AR: P.31-34

economic area

AR: P.93-98

Taisei Corporation has reported the information cited in this GRI content index with reference to the GRI standards.
※ AR: Annual Report 2023 / SR: FY2022 Annual Security Report/ CG: Corporate Governance Report

Environmental Social Governance Report 2023

(June 28, 2023)

373

ISO26000 Comparison Table

Organizational Governance

Human Rights

Fair Operating Practices

Consumer Issues

Labor Practices

The Environment

Community Involvement and Development

We report an index that maps our activities and initiatives to each relevant ISO26000 core subject in the table below.

IssuesReferences

Annual Report
2023 pages

6.2 Organizational Governance
Top Commitment
Sustainability Management
Corporate Governance
Issue1 Organizational
GovernanceThorough Compliance / Restructuring of the Group
Governance System
Risk Management
Stakeholder Engagement
Creation of Value and Policies
Investor Relations

P.1
P.3-4
P.6-8
pp.9-16
pp.27-34
pp.63-64
pp.81-102
ppp.115

6.3 Human Rights

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374

Issues

References

Annual Report
2023 pages

Issue1 Due diligence
Issue2 Human Rights risk

Respect for Human Rights

situations

Human Rights Due Diligence

Issue3 Avoidance of complicity

Promotion of Supply Chain Management

Issue4 Resolving grievances

Cultivation of Technical Staff and Securing of Human

Issue5 Discrimination andvulnerable groups
Issue6 Civil and political rights

Resources
Thorough Compliance /Restructuring of the Group
Governance System

Issue7 Economic, social andDiversity, Equity, and Inclusion

cultural rights

Realization of an Attractive Working Environment That

Issue8 Fundamental principles

Is Good to Work in(Labor-management relations)

P.4-5
pp.9-16
pp.55-56
pp.57-60
pp.63-64
pp.78
pp.80-81
pp.93-95
ppp.112-115

and rights at work
6.4 Labor Practices

Issue1 Employment andemployment relationships
Issue2 Conditions of work andsocial protection
Issue3 Social dialogue
Issue4 Health and safety atwork
Issue5 Human development
and training in the workplace

Diversity, Equity, and Inclusion
Realization of an Attractive Working Environment That
Is Good to Work in(Labor-management relations)Thorough Management of Occupational Health and
SafetyP.3-4
P.6
pp.9-16
pp.51-54

Human Resource Development

pp.57-60

Cultivation of Technical Staff and Securing of Human

pp.63-64

Resources
Stakeholder Engagement

pp.78-81
ppp.112-115

Health Management

6.5 The Environment

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375

Issues

References

Annual Report
2023 pages

Realization of a Sustainable and Environmentally
Friendly Society (TAISEI Green Target 2050)
Compliance with Environment-Related Laws andRegulations, Etc.
Issue1 Prevention of pollution
Issue2 Sustainable resource

Realization of a Sustainable and Environmentally
Friendly Society

P.3-4
P.6

use

Decarbonized Society

pp.9-16

Issue3 Climate change

Information Disclosure Based on TCFD

pp.49-50

mitigation and adaptation

Recommendations

pp.57-60

Issue4 Protection of the

Avoided Emissions

pp.63-64

environment, biodiversity andRecycling-Oriented Society

pp.65-74

restoration of natural habitats

Nature Co-Existing Society

ppp.112

Forest Resources and the Forest Environment
Water Resources and the Water Environment
Environmental Data
Contribution to Local Communities
6.6 Fair Operating practices

Issue1 Anti-corruption
Issue2 Responsible politicalinvolvement
Issue3 Fair competition
Issue4 Promoting social
responsibility in the value chain
Issue5 Respect for property
rightsCorporate GovernanceThorough Compliance /Restructuring of the Group
Governance System

pp.63-64

Risk Management

pp.81-102

Promotion of Supply Chain Management

pp.77-78

Technical Development for Realizing a Sustainable

pp.98

Society

ppp.115

Management of Information and Intellectual Property
Rights

6.7 Consumer Issues

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376

Issues

References

Annual Report
2023 pages

Issue1 Fair marketing, factualand unbiased information andfair contractual practice
Issue2 Protecting consumers'

Ensuring Quality and Improving Technology

health and safety
Issue3 Sustainableconsumption
Issue4 Consumer service,support, and complaint andTechnical Development for Realizing a Sustainable
Society
Management of Information and Intellectual Property
RightsTechnology & Solutions

dispute resolution

Thorough information security management

Issue5 Consumer data

Recycling-Oriented Society

protection and privacy

pp.45-48
pp.49-50
pp.63-64
pp.71-72
pp.75-76
ppp.112-115

Nature Co-Existing Society

Issue6 Consumer dataprotection and privacy
Issue7 Education andawareness

6.8 Community Involvement and Development
Issue1 Community
involvement

Contribution to Local Communities

Issue2 Education and culture
Issue3 Employment creationand skills development
Issue4 Technology
development and access
Issue5 Wealth and income

Nature Co-Existing Society

P.45

Forest Resources and the Forest Environment

pp.57-60

Water Resources and the Water Environment

pp.63-64

Technical Development for Realizing a Sustainable

pp.69-70

SocietycreationIssue6 Health

Key Stakeholders

pp.71-73
ppp.112-115

Health Management

Issue7 Social investment

Copyright TAISEI CORPORATION All Rights Reserved.

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377

Sustainability News List

2023

Latest 30 releases

2022

2021

Latest 30 releases
Dec.22.2023

Sustainability

Avoided Emissions was newly created.

Dec.22.2023

Sustainability

The second report after issuance of Green Bonds was updated.

Dec.22.2023

Sustainability

The Sustainability website was renewed.

Dec.22.2023

Sustainability

Environmental Social Governance Report 2023 (PDF version) was published.

Nov.22.2023

News

Nov.15.2023

Sustainability

Oct.31.2023

News

FY22 Results, Annual Report Update

Oct.31.2023

Sustainability[Annual Report 2023] was published.

Oct.31.2023

Sustainability[Environmental Due Diligence] was newly created.

Aug.02.2023

News

Taisei to Exhibit at COP28 Japan Pavilion

Galerie Taisei vol.4 (English subtitled version)

Seven Companies Announce to Conduct a Joint Study on Japanese Advanced CCS(Carbon Capture and Storage) Project

Environmental Social Governance Report 2023

378

Jul.31.2023

Sustainability

Renewable Energy Sources Owned by the GroupJun.30.2023

Sustainability[External Evaluations] was updated.

May.31.2023

Sustainability[Social(S) :Human Rights and others /Governance(G):Fair Operating Practices etc.)] was
updated.

May.19.2023

Sustainability[Environment(E)] was updated.

May.12.2023

Sustainability

Taisei joins the GX League.

Apr.01.2023

Sustainability

Taisei's Carbon_Recycled Concrete (T-eConcrete®/Carbon-Recycling)

Apr.01.2023

OthersApr.01.2023

Sustainability

Mar.01.2023

News

Mar.01.2023

Sustainability

Information Disclosure Based on TCFD Recommendations

Mar.01.2023

Sustainability[Environmental Policy] and [Declaration of Biodiversity Preservation by Taisei Group]

NEW NORMAL ARCHITECTUR[Fundamental Policy on Sustainable Development] was updated.

Group’s Long-Term Environmental Targets (TAISEI Green Target 2050)

were revised.

Mar.01.2023

Sustainability[Multi-Stakeholder Policy] was updated.

Jan.05.2023

Sustainability[Safety and Health Policy] was revised.

Dec.27.2022

ReleaseConclusion of Sustainability Linked Loan Agreement between The Norinchukin Bank andTaisei CorporationDec.13.2022

News

Taisei Corporation Listed on “CDP’s Climate Change A List 2022” for Most Pioneering
Environmental Performance

Nov.30.2022

Sustainability[Environmental Social Governance Report 2022 (PDF version)] was updated.

Environmental Social Governance Report 2023

379

Nov.15.2022

Sustainability

Nov.04.2022

News

Oct.31.2022

Sustainability

Oct.31.2022

News[Green Bond] was updated.

COP27 For exhibition at the Japan Pavilion“Water" website is now open. It introduces approaches to water issues, etc.

FY21 Result, Taisei Group Annual Report Update

Copyright TAISEI CORPORATION All Rights Reserved.

Environmental Social Governance Report 2023

380

Editorial Policy

Scope of Reporting

Reference Guidelines

Independent Assurance

Scope of Reporting
Editorial policy

To promote sustainability initiatives, we have established the Fundamental Policy on
Sustainable and are implementing sustainability management with reference to ISO26000,
the international standard for organizational social responsibility.
This Website “sustainability” complements the Taisei Annual Report 2023. We provide
detailed ESG and sustainability activity ISO26000 information on our website. And we havepublished the Environmental Social Governance Report 2023

which is the same content

as our website. The website will be updated regularly.
Report Scope:

The fiscal year ended March 31, March 31, 2023 (April 1, 2022 to March 31). Some contents
concern the data for the previous fiscal year or the most recent activities.

ReportingThis report covers the activities of Taisei Corporation and the Taisei Group companies

Period:(consolidated subsidiaries) as of March 31, 2023, unless otherwise noted.

Release Date:

December,2023

Reference Guidelines
GRI Sustainability Reporting Standards
ISO26000: 2010 (International Organization for Standardization)
United Nations Global Compact
Integrated Reporting Framework (International Integrated Reporting Council: IIRC)
Guidance for Collaborative Value Creation (METI)

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381

SASB (Sustainability Accounting Standards Board)
Environmental Reporting Guidelines (2018 Version) (Ministry of Environment)
TCFD (Task Force on Climate-Related Financial Disclosures)

Independent Assurance
Environmental Data
Third-Party Assurance on This Report** “Independent Assurance Report” on the environment data and indices by Ernst & Young Shin Nihon LLC

Copyright TAISEI CORPORATION All Rights Reserved.

Environmental Social Governance Report 2023

382

Library

Annual Report 2023 All page

Annual Report 2023 Split page

Back Number

Taisei Group Annual Report 2023
Annual Report 2023 All page
Annual Report 2023 (Interactive PDF format)
Annual Report 2023 (Print-friendly PDF format)

11.90MB12.10MB

Annual Report 2023 Split page
01 About the Taisei Group

3.58MB

07 Value Creation Story / Message from the President / Tales of Past and Present of the Taisei Group / Financial and NonFinancial Highlights

1.47MB

23 Taisei Group’s Growth Strategy / Message from the Chief Financial Officer / TAISEI VISION 2030・Medium-TermBusiness Plan (2021–2023)・Materiality / Business-Related

2.09MB

45 Sustainability-Related / TOPICS: 1.Solving Sustainability Issues in Society / 2. Management of Human Capital / 3.
Human Rights Due Diligence Initiatives

1.21MB

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383

57 Sustainability Section

2.20MB

82 Governance Section

0.75MB

103 Data Section

0.23MB

Back Number

Back Number

Annual Report
Annual Report 2022

15.80MB

Annual Report 2021

9.55MB

Annual Report 2020

10.39MB

Annual Report 201910.92MB

Annual Report 2018

9.57MB

Activity Report
Environmental Social Governance Report 2022
Environmental Report 2021

18.90MB

2.88MB

Social Governance Report 2021

1.50MB

Environmental Report 2020

1.90MB

Environmental Report 2019

6.73MB

Environmental Report 2018

1.54MBTo view a PDF file, you need Adobe Reader, which is available at no charge from the website of
Adobe Systems Incorporated.

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