Environmental Policy
1.

Fundamental Concept
Based on the Taisei Group Philosophy “To create a vibrant environment for all members of society” andour 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.
As the Group having construction as its core business, we aim for the “Realization of a Sustainable andEnvironmentally Friendly Society” by realizing environmental issues as our significant sustainability tasks
and fully recognizing the influence of our business activities on the environment, and environmental
influence on our business activities.
Therefore, it is our mission to achieve our Group’s Long-Term Environmental Targets in compliancewith environmental laws and regulations.
In addition, we will properly identify the “Environment-Related Risks and Opportunities” (to be definedbelow) including climate change in particular, develop and promote environment-related technologies andservices, and contribute to the realization of a decarbonized, recycling-oriented, and nature co-existingsociety through our business activities.

2.

Group’s Long-Term Environmental Targets
The Taisei Group has established a Long-Term Environmental Target (TAISEI Green Target 2050) toachieve the “Realization of a Sustainable and Environmentally Friendly Society” as outlined in theFundamental Concept above. We will work with the whole supply chain, together with the stakeholders toachieve these environmental targets by defining our “Responsibilities”, “Contributions Through Business”,
and “Activities/Efforts” to confront the three types of societies including “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”.

3.

Continuous Implementation of Environmental Due Diligence
Toward the “Realization of a Sustainable and Environmentally Friendly Society” as outlined in theFundamental Concept above, we will establish and continuously implement environmental due diligencesystem following the international standards such as the “OECD Due Diligence Guidance for Responsible
Business Conduct”. To operate, we will review and improve the system’s operation accordingly.
We endeavor to engage in communication and consultation with the stakeholders as appropriate, makeuse of the knowledge of external professional organizations with regard to the impact of the Taisei Group’sbusiness activities to the environment.
(1) Identification and assessment of adverse impact
To assess the actual or potential adverse impacts on environment in the course of our business activities(hereinafter referred to as “Environment-Related Risks”) based on the “Degree of Impact” (severity/
number and extent of people affected/ possibility of remedy), “Probability of Occurrence,” and“Connection with our company,” and then identify the Environment-Related Risks which need to beaddressed with priority.
(2) Prevention and mitigation of Environment-Related Risks(i) To effectively implement environmental management systems (EMS) for all the executives andemployees of Taisei Group in order to make them fully understand this Policy and to firmly establish
this Policy throughout our business activities, and strive to prevent and mitigate the EnvironmentRelated Risks.

(ii) To widely announce Taisei Group's efforts regarding environment to our subcontractors and suppliers
which are subject to the separate “Taisei Group Sustainable Procurement Guidelines” (hereinafterreferred to as the “Guidelines”) by, for example, reflecting on the Guidelines the measures forpreventing and mitigating the Environment-Related Risks which need to be addressed with priority.
(3) Tracking of the effectiveness of the measure
Recognizing that the respect for environment is an important sustainable development issue, toregularly report the status of the Environmental due diligence to the Sustainability Promotion
Committee, the Management Committee, the Sustainability Committee, and the Board, and disclose
to our stakeholders in a timely and appropriate manner.
(4) Monitoring and information disclosure
Recognizing that the respect for environment is an important sustainable development issue, toregularly report the status of the environmental due diligence to the Sustainability Promotion
Committee, the Management Committee, the Sustainability Committee, and the Board, and disclose
to our stakeholders in a timely and appropriate manner.
(5) Remedy and Rectification
Where it becomes apparent that Taisei Group has caused or contributed to adverse impacts onenvironment, we promptly remedy and rectify the issue through appropriate measures. We inform
inside and outside of our company about consultation desks corresponding the issue, and develop andoperate a system to enhance the effectiveness of such remedies and rectification.
4.

Group Environmental Action Guidelines(1) Compliance with environment-related laws and regulations and achievement of zero environmental
accidents
In addition to complying with environment-related laws and regulations throughout the Group, we willachieve “Zero Environmental Accidents” at work sites based on the “Priority Management Items forWork Sites” and other items set forth by the Safety Division.
(2) Respect for environment related initiatives, etc.
We will respect the SDGs, the UN Global Compact, the Japan Federation of Construction Contractors’“Voluntary Action Plan on the Environment in the Construction Industry”, the “Eco First Commitment”
with the Ministry of the Environment, and so on.
(3) Raising environmental awareness among the Group executives and employees
We will strive to foster a working environment through training and awareness programs to ensure all
executives and employees understand and remain familiar with our Environmental Policy,
Environmental Targets, environmental issues, and Environment-Related Risks, Opportunities andCountermeasures, and lead them to concrete actions.
(4) Effective implementation of and continuous improvement on EMS
We will make efforts to achieve our Environmental Targets including Taisei Sustainable Action (TSA),
using Environmental Management Systems (EMS) based on ISO 14001. We will continuously improvethese EMS at the same time.

(5) Promotion of Taisei Sustainable Action (TSA) to reduce environmental impact
In addition to the efforts of all Group executives and employees, we will also collaborate with the subcontractors at work sites.
(6) Development and promotion of environment-related technologies and services
We will strive to develop and promote environment-related technologies and services, either
independently or through working together with stakeholders, to achieve our Environmental Targets
and resolve environmental issues.
(7) Engagement with suppliers
Since our environmental issues need to be addressed with the whole supply chain, we will engage witha wider range of suppliers to improve and resolve such issues through two-way communication.
(8) Communication with stakeholders
Since resolving environmental issues requires working together with stakeholders, we will work on toimprove and solve these issues through communication with various stakeholders to influence with eachother, and by lobbying the government and relevant authorities through the industry groups.
(9) Enhancement of environment-related information disclosure
We will correctly respond to disclosure guidelines and requests, including TCFD (Task Force on
Climate-related Financial Disclosures) and CDP, and strive to enhance information disclosure from ourGroup Annual Report and website to improve our ability to convey environment-related informationand enhance our corporate value.
(10) Monitoring
We will regularly review our efforts on environmental issues at meetings of the Sustainability Promotion
Committee, the Management Committee, the Sustainability Committee, and the Board in accordancewith these Group Environmental Action Guidelines.
July 2023
Yoshiro AIKAWA
Representative Director, President and Chief Executive Officer
Taisei Corporation

Revision History
Establishment
July 1, 2005
April 1, 2006
Partial Revision
April 1, 2010
Partial Revision
April 1, 2011
Partial Revision
April 1, 2017
Full Revision
April 1, 2018
Partial Revision
April 1, 2019
Partial Revision
March 1, 2023
Full Revision
July 1, 2023
Partial Revision