Data

ESG Goals
We integrated the past medium-term ESG plan and the medium-term management plan in fiscal 2023 and set the important themes towork on from the perspective of ESG and goal values as the ESG goals.

ESG goals (Fiscal 2023-2026)
Field

Theme
Promotion of recycle and conversion of waste
into valuables

EEnvironment

Goal (Fiscal 2026)
Reduction of the final waste landfilling treatment amount (production departments in Japan and overseas)

15% reduction (Ascompared to fiscal 2022)

Total greenhouse gas emissions in Japan and overseas (Scope1+2)

10% reduction (Ascompared to fiscal 2022)
6% reduction (As comparedto fiscal 2022)

Greenhouse gas emissions reduction*1

Total greenhouse gas emissions in Japan and overseas (Scope3)

Promotion of the use of renewable energy

Renewable energy utilization ratio

Japan: 50% or more
Overseas: 40% or more

Expansion of the amount of carbon storage byusing timber

Amount of carbon storage by the wood industrial materials business (MDF andinsulation board)

1,100,000 t-CO2 /year

Procure wood in a biodiversity friendly way

Lauan usage rate in flooring substrates

50% reduction (Ascompared to fiscal 2022)

Appropriate management and reduction ofchemical substances

Release/transfer amount of the substances subject to the PRTR law

70% reduction (Ascompared to fiscal 2022)

Promote the effective use of water resources

Water resource input (Group production bases in Japan and overseas)

4% reduction (As comparedto fiscal 2022)

Reduction of the use of plastics derived fromfossil fuels

Reduction of the use of plastic containers and packaging

4% reduction (As comparedto fiscal 2022)

Strengthen environmental risk management

Number of environmental accidents and violations at home and abroad (Thosewith administrative guidance and penal charge)

0Enhancement of the quality control structure*1

Number of accidents caused by design in the new product developed
Manufacturing and product audit implementation cover rate
Product safety and quality improvement education execution rate

0100%
100%

Promotion of CSR procurement

The rate of the CSR survey implementation

100%

Ensuring fair competition and transactions

Serious violations of the Anti-Monopoly Act and Subcontract Act
Planning and holding of the enlightenment activities by division and job type

020 times/year

Total diversity index 3rd Stage*2SSocialPromotion of diversity*1+30 pt (As compared tofiscal 2022)
The ratio of female employees hired (New graduate nationwide course)
50%
The female full-time employee ratio
20%
The percentage of male employees taking childcare leave (Three-year average)
50%
The female manager ratio
2%Long-term care seminar attendance rate
90%/year
Diversity training attendance rate (Managers)
100%
The degree of attainment of the employment rate of persons with disabilities
100%
Personnel composition by age (Difference by generation)
Within the difference of
10 pt

Promotion of health and productivitymanagement

The rate of receiving health promotion allowance
Health score (Exercise, rest, and nutrition)
Presenteeism loss rate

80%
20 pt
25%

Total work time reduction rate
Rate of taking annual paid leave
Employee satisfaction*3

3% reduction (As comparedto fiscal 2022)
70%
60 pt

Reinforcing human resources development

Job separation rate within three years
Young employees’ career plan training attendance rate
Attendance rate for the priority market enhancement program
Attendance rate for training for management staff training program

Within 15%
100%
50%
80%

Enhancement of the occupational safety andhealth

Serious disaster
Plant mutual safety diagnosis execution rate

0100%

Human rights promotion activities

Human rights enlightenment training attendance rate
Supervisor harassment training attendance rate

100%
100%

Promotion of workstyle reform*1

Social contribution activities by cooperating with Holding of the event planned by cooperating with local communities (Each group
1 times/year
production bases)
local communities
Enhancement of the governance system

G

Improvement of a dialog with stakeholders

Governance

Strict compliance*163

DAIKEN GROUP REPORT 2023Female executive ratio (Director)
Degree of penetration of the group corporate philosophy*4

10% or more
60 points or more

Establishment of the index for the engagement with customers and business
partners and the method, and setting of the goal
Degree of empathy for our philosophy and activities by customers
Holding of the policy explanation meeting for suppliers
Number of page views on our IR site

Implementation in fiscal
2023
90%
1 times/year
200% (As compared tofiscal 2022)

Serious compliance violations

0Compliance consciousness degree*5+5 pt (As compared tofiscal 2022)

Results

Comments from the Manager of theManagement Strategy Division responsible
for the Sustainability Promotion Department

Daiken Group’s Value Creation

Fiscal 2023: Progress status
0.4% reduction
4.0% reduction
Energy-saving activities, productivity improvement, and other events had an impact
3.7% reduction
Change in the sales mix and rationalization of the production bases had an impact

Katsuhisa Morino
Managing Executive Officer

Japan: 49%
Overseas: 39%
739,400 t-CO2 /year Decreased from the impact of the fluctuation of the MDF production
volume2.7% increase
27.3% reduction
substances

Reduced because of the discontinuation of the products that used the target

2.4% reduction Reduced because of the introduction of the seal water collection equipment
and an increase in the recycling amount
4.7% reduction

Fluctuation of the production volume had an impact

084% Implemented by expanding the survey scope
027 times+18.3 pt
52.8%
19.4%
42.7%
1.9%
68.6%
43.7%
113% The employment rate of persons with disabilities: 2.6%
Difference of 6.0 points
76.4%
16.4 pt
28.1% Started approaching the health issues specific to women
0.94% reduction

Reduced because of the increase in paid leave taken and other factors

62.8%
54.4 pt
15.9%
100%
58%
75%

100%
100%
A total of 87 events held in 18 bases among 19 bases at home and abroad
11.1%
60 pt

The index on the left was set
The index on the left was set
135.7% Continuously implemented the expansion of the website content
One case (Violation of the Construction Industry Act in the construction management operation
concerning the interior project by our affiliated company)(1.29 pt)

Data0
Japan: 100%
Overseas: Canceled because of the impact of COVID-19

Strategy for Value Creation0100%
100%

The Daiken Group aims to contribute to thedevelopment of an affluent society and environment thatlead to a better future through business and thus intends toachieve long-term growth under the Daiken sustainability
basic policy. In the medium-term management plan GP25
3rd Stage launched in FY 2023, the basic policy is toenhance the management foundation by positioning
sustainability as a key pillar of management while
implementing a growth strategy (CSV) that helps resolve
social issues. Especially for the important items related toESG, we set the management index and the goals toachieve by FY 2026 as ESG goals. In addition, theenvironmental objectives of ESG goals are positioned as
milestones in the Daiken global environment vision 2050,
which sets the long-term direction of the environmental
initiatives.
As for the achievements in FY 2023, in theenvironmental aspect, we fell behind in working on the rateof utilization of lauan wood for base flooring materials andthe amount of carbon stored in the wood materials businessdue to the delay in product development and the decreasein MDF production caused by the streamlining of theproduction bases; however, we got a good start toward theachievement of the goals for reducing water resources byintroducing equipment and emissions and the transfer of
PRTR substances by discontinuing products that use PRTR
substances. In the social aspect, we worked to introduce
the proper approaches to female-specific health problems
and implement diversity management training to maximize
the value of human resources while making sure that we
educate employees by continuously providing training on
the improvements of product safety and quality and fairtrade. On the other hand, from the governance aspect, amajor compliance violation was identified. We take it very
seriously as a matter to reflect on and will make group-wide
efforts to prevent repeat violations by providing a morethorough compliance education program.
We will carefully analyze our progress in the first year of
the medium-term management plan, implement theappropriate measures, and maintain the focus on thecomprehensive initiative for business activities and ESG
activities with the aim of realizing the group corporate
philosophy and achieving a sustainable society by doing so.
*1: Set as the non-financial management goals in the medium-term management plan
*2: Our own indices in which diversity-related items, such as the female manager ratio, were indexed. TotalDiversity Index 3rd Stage is used in and after fiscal 2023 and items related to the method of calculation arereviewed and reset*3: Our own index based on the survey using the employees’ sense of satisfaction and pleasant workplaces asevaluation axes
*4: Our own indices in which employees’ understanding, sharing, and practice of the group corporate philosophy
were indexed*5: Own indices to measure employees’ compliance consciousness degree from the perspectives of legal
compliance, a sense of ethics, structure, and corporate culture

DAIKEN GROUP REPORT 2023

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