Section

02

ESG
Initiatives

45

Environmental Initiatives

47

Social Initiatives

57

Governance Initiatives

65

TAKUMA CSR Report 2022

46

Section 02

ESG Initiatives

Environment: Environmental Initiatives

Helping Combat Climate Change:
Conserving Resources and Protecting the Environment
The Takuma Group recognizes the need to promote renewable energy (non-fossil energy), improve energy
eﬃciency, conserve resources and reduce environmental impacts, and use unutilized resources eﬀectively. As one
way to do that, we will work to alleviate the global issue of climate change and to reduce environmental impacts
while helping realize a sustainable society by supplying products and services that draw on technologies foreﬀectively utilizing energy and protecting the environment that we have developed over more than 80 years of history.

TAKUMA Environmental Policy
Our company has established the “TAKUMA Environmental Policy” as follows, aiming to ensure employees contributeto global environmental conservation.
This policy applies to the activities of all company departments.

Environmental Philosophy
Takuma is committed to preserving the environment and realizing an aﬄuent society through business activities under theCompany Motto: “Value Technology, Value People, Value the Earth”.

Operational Guidelines
1 All Takuma Group companies will recognize the importance of maintaining a balance between preservation of theenvironment and business activities.
2 Continuously develop activities to preserve the environment that comply with applicable environmental laws andordinances, and ensure environmental control and assessment systems conform to international environmental standards.
3 Promote development of improved technologies and products for society that preserve the environment.
4 Address resource conservation, energy eﬃciency, recycling, and minimization of waste generated by all
business activities.
5 Enhance employeesʼ awareness and understanding about the importance of preserving the environment
through environmental education and internal promotional activities.
6 Provide the community with information on the activities of Takuma to preserve the environment.

Conversion of waste and biomass into energy by municipal solid waste incineration plants and biomass
power plants supplied by Takuma helps reduce CO₂ emissions by about 4 million tons per year.

Approx. 500,000
tons per year!

Reduction in CO₂ emissions
from biomass power plants
delivered by Takuma

Approx. 3.5 million
tons per year!

47

Initiatives through our energy plant businessAs a pioneer in the boiler industry with many years of experience, we have helped customers resolve the issues
they face by delivering a diverse range of boilers and plants in large quantities.
Alleviating climate change and realizing a decarbonized society have been cited in recent years as issues thatdemand a society-wide response, and renewable energy, including solar power, wind power, geothermal power, smalland medium-scale hydropower, and biomass, has an important role to play in addressing those issues.
Because it absorbs carbon dioxide through photosynthesis during the growth period of raw materials like thinned
lumber, the wood fuel used in biomass boilers, one of our ﬂagship products, is distinguished by being carbon-neutral,
insofar as it does not aﬀect the atmospheric concentration of carbon dioxide, including when lumber is used as asource of energy. We will help resolve issues faced by customers and society by promoting renewable energy throughutilization of wood biomass.

■Contributions through advanced technology and after-sales service
Most fuels used by biomass power plants, boiler plants, and industrial
waste treatment plants, which are ﬂagship products of our Energy Plant
Business, diﬀer from fossil fuels in that they do not exhibit uniform
properties, making it diﬃcult to realize stable combustion.
Drawing on advanced combustion and control technologies as well
as extensive experience, we achieve high operational availability bychoosing the optimal combustion model for customersʼ plans so that we
can supply plants characterized by high transmission end eﬃciency andboiler eﬃciency. Our work continues after each facility begins operating
as we facilitate stable facility operation over the long-term through an
extensive menu of after-sales services, including maintenance,
renovation work, Operation management and Maintenance management(O&M), and supply of locally produced CO₂-free power for local
consumption in partnership with our subsidiaries.
Going forward, we will strive to realize a decarbonized/low-carbon
society while helping customers resolve the challenges they face by
supplying high-eﬃciency plants and working to ensure that facilities
operate in a stable manner over the long-term.

Realizinga decarbonized/
low-carbon society

Resolvingcustomersʼ challenges

Supplyinghigh-eﬃciency
plantsOﬀeringhigh-quality
after-sales service

Example initiatives

Takumaʼs contribution to reducing CO₂ emissions

Reduction in CO₂ emissions
from municipal solid waste
incineration plants
delivered by Takuma

Helping combat climate change

Reduction of
about 4 million tons
from Takuma products during FY2021!

CO₂

Supplying locally produced CO₂-free power for local consumption
as part of a decarbonization initiative in the Kunohe Village, Iwate PrefectureGroup company Takuma Energy Co.,
Ltd., and Iwate-Kenpoku Clean Co.,
Ltd., entered into an agreement with the
Kunohe Village in Iwate Prefecture
promoting the decarbonization of thelocal community through use of locally
produced power. In accordance withthis agreement, Takuma Energy will
supply power generated by
Iwate-Kenpoku Clean to the Kunohe
village oﬃce and other facilities. The
supplied power, which is CO₂-free, willcontribute to the development of thevillage, which is striving to reducegreenhouse gas emissions and build a
Regional Circular and Ecological
Sphere (Regional CES).

Supply of primarily locally produced,
CO₂-free power from Iwate-Kenpoku Clean
to the Kunohe village oﬃce
and other facilities

Kunohe village oﬃce, etc.

Locally produced
power

Iwate No.2 Clean Center

Iwate-Kenpoku Clean Co., Ltd.
Locally produced
power

Takuma Energy Co., Ltd.
Adjustment of
power tomatch demand
Other power
plants,power wholesalemarket, etc.

Power generation using heatfrom incineration of wasteGroup

TAKUMA CSR Report 2022

48

Section 02

ESG Initiatives

Environment: Environmental Initiatives

Conserving resources and protecting the environment

Conserving resources and protecting the environment

Initiatives through the Municipal Solid Waste Treatment Plant BusinessInitiatives through the Water Treatment Plant Business

Since delivering Japanʼs ﬁrst fully continuous mechanical waste incineration plant in 1963, Takuma has built anddelivered more than 360 municipal solid waste treatment plants, the most of any manufacturer in Japan. Most of thetreatment technologies used by plants are the result of in-house R&D by Takuma, which continues to embrace thehighest standards of excellence while working to reﬁne its technologies so that they can accommodate the needs ofsociety it changes over time.
Takuma contributes to resource conservation and environmental protection through a broad product line andafter-sales service based on an extensive track record as the industryʼs leading company.

We have operated our Water Treatment Plant Business with a focus on sewage facilities for more than 50 years,
and during that time we have worked to conserve water resources and the water environment required by society byproviding a variety of water treatment technologies. In recent years, companies in this sector have been called upon
to address social needs involving priorities such as energy conservation, energy creation, and Life Cycle Cost (LCC)
reductions. In response, we have helped realize sustainable sewage systems by taking advantage of the reliable
technology and extensive experience we have developed to date.

BoilerMunicipal
solid waste

ActivatedcarbonSteam turbine
generator

Hydratedlime[Principal equipment]
Low power agitator (Bio Blade Mix)
Initial settling pond
SewageintakeFilter-type
dust collector

12Resource conservation initiatives

Crude
sludge●High-performance stoker furnace●Advanced combustion system

We draw on the treatment experience that comes fromhaving Japanʼs No. 1 track record of deliveries to improve ourstokers. We pursue the ash recycling business by maintaining
stable combustion despite a diverse range of waste properties
and creating bottom ash with few embers that exhibits uniform
properties, making it well suited for use in cement production.

Takumaʼs advanced combustion system, whose components
include proactive combustion control, which uses a laser
analytical instruments to boost response, as well as a ﬂue gas
recirculation system, reduces generation of toxic substances
like dioxins, nitrogen oxides, and carbon monoxide during
waste incineration.

Municipal
solid waste
0%

Maintenance ofstable combustion

Flammable content

Laser analytical
instruments

Reduced NOx, CO, and dioxin emissions
Filter-type
dust collector

AshDryingCombustion

Post-combustion

Reduction in
unburnt content

Combustion system

Proactive
combustion control

BoilerStack

Incinerator

Automatic
combustion control
Waste supply volume
Combustion air volume

Bottom ash

Flue gas
recirculation system●Fly ash circulation system●AI-enabled combustion control system

Fly ash collected by ﬁlter-type dust collectors contains chemical
agents used to remove toxic chemicals (hydrated lime and activatedcarbon) that are still capable of removing toxic chemicals. Thissystem consists of technology for utilizing such chemical agents tomaximum eﬀect by reducing chemical agent use and ﬂy ash volume
so that ﬂy ash can be recycled eﬃciently and economically.

This next-generation combustion control system, which uses AI
technology, reproduces the operational skills of experienced
operators. Since the system precisely forecasts combustion
ﬂuctuations that are unique to waste incineration to determine andimplement the appropriate response, stable combustion conditions
can be maintained at all times, even when the properties of the waste
ﬂuctuate over the medium- and long-term.

Chemical agents

Stabilization of hazardous
gas removal performance
Reduction in use of chemical agentsAI

Flue gas
Filter-type
dust collector

Reinjectionof ﬂy ashFly ashTo stack(containing unreacted chemical agents)

Proper conditions
are maintained
Temperature, etc.

Operational data

Image of combustion
in a furnace

Sand ﬁlter
Discharge

Anoxictank

Anoxic Aerobic
tank
tank

Bio Blade
Mix

Aeration panel

Separator liquid treatment equipment

Environmental protection initiatives

The healthy environment in the surrounding community
is safeguarded by reducing generation of toxic substances
during the combustion process, for example by using AI in
combustion technology.

Moisture

Final settling pond

Disinfection tank

Aerobic tank

Drawn-oﬀ sludge

We contribute to the formation of a Sound Material-Cycle
Society by working to improve incineration and ﬂue gas
treatment technology, promoting recycling of ash, andreducing use of chemical agents.

100%

49

Induced draft fan

Fly ash(to be recycled)

Reaction tank

Pre-processing
equipment
Anaerobictank

Waste pit
Bottom ash(to be recycled)[Principal equipment]
Upﬂow Moving-bed Sand Filtration system (Uniﬂow Sand Filter)

Stack

Flue gas

Incinerator

Advanced treatment facilities

Reaction tank facilities

ExcesssludgeDenitration
agent

AI model for forecasting
anomalies
AI model for forecastingboiler operation

Judgmentsand operations[Principal equipment]
Fixed-bed anammox process

Incinerator
Separator liquid treatment

Sludge treatment facility[Principal equipment] Rotating drum-type concentrator

Digester tanks

Sludge treatment

Generator

Sludge-fueled power
generation facility

Return water[Principal equipment]
Step grate stoker type sewage
sludge incineration and power
generation system

Processing ﬂow in water treatment plant equipment at a sewage facility

1

Upﬂow moving-bed sand ﬁltration system

Our upﬂow moving-bed sand ﬁltration system (Uniﬂow Sand Filter),which removes Suspended Solids (SS) from water, is primarily used forﬁnal treatment at sewage treatment plants to allow clean, treated water tobe released into rivers. Some treated water is also reused at the facility,
helping to conserve water resources. Uniﬂow Sand Filter systems boast
top domestic market share in moving-bed sand ﬁltration systems, and wehave delivered more than 2,700 of these long-selling products, whichfeature water quality puriﬁcation technology, in Japan. In recent years,
many of the systems we have delivered have been a new high-speed
model that delivers two to three times the treatment volume with the same
area as conventional ﬁxed-bed sand ﬁltration systems. We are also seeing
more projects that replace ﬁxed-bed sand ﬁltration systems with thissystem while retaining existing foundation work and related infrastructure.

2

Upﬂow moving-bed
sand ﬁltration system

Step grate stoker type sewage sludge incineration and power generation system

Sludge generated by the sewage treatment process is a type ofbiomass, and such resources are expected to be used as
renewable energy. Conventional sludge incinerators were net
consumers of energy because they required auxiliary fuel and usedlarge amounts of electricity, but this system draws on the core
Takuma technologies of combustion technology and boiler
technology to make possible an energy-creating system thatgenerates more power than the incinerator consumes while using
sludge as fuel, as long as it operates at or above a certain scale.

Generator
SludgeWaste heat boiler

Step gratestoker furnace

Drying grate

Combustion grate
Burn-out grate
Bottom ash

Abnormal conditions
are avoided
Time
Combustion air fan

Sludge-fueled power
generation facility

TAKUMA CSR Report 2022

50

Section 02

ESG Initiatives

Environment: Environmental Initiatives●Dichloromethane (CAS No. 75-09-2)

Environmental reporting
Takuma reports the environmental impact of its business activities as well as the manner in which it takes environmental
considerations into account in accordance with the Environmental Reporting Guidelines (issued by the Ministry of theEnvironment). This environmental reporting program includes not only environmental information extracted from our overallbusiness activities from an environmental standpoint, but also information about related economic and social aspects of
those activities.

●Ethylbenzene (CAS No. 100-41-4)

FY

2017

2018

2019

2020

2021

FY

2017

2018

2019

2020

2021

Emissions (tons per year)

0.45

0.27

0.08

0.00

0.00

Emissions (tons per year)

0.96

0.98

1.34

1.41

1.51

●Toluene (CAS No. 108-88-3)●Xylene (CAS No. 1330-20-7)

FY

2017

2018

2019

2020

2021

FY

2017

2018

2019

2020

2021

Emissions (tons per year)

0.07

0.06

0.09

0.07

0.13

Emissions (tons per year)

1.18

1.12

1.47

1.54

1.62

These materials are used for antirust painting of boiler structures and so on.

■Environmental data (non-consolidated)
Total energy input volume

Greenhouse gas emissions(GJ per year)(Tons-CO₂ per year)

90,000■Environmental accounting
Environmental accounting is the process by which companies and other entities recognize the cost of environmental
conservation in their business activities as well as the eﬀects of those activities and measure and communicate them in as
quantitative a manner as possible (either in terms of monetary amounts or amounts of materials) with the goal of pursuingenvironmental conservation initiatives in an eﬃcient and eﬀective manner while maintaining a good relationship with society
so as to facilitate sustainable development.
We have disclosed our own environmental accounting system since FY2006 when we introduced it based on the“Environmental Accounting Guidelines 2005” issued by the Ministry of the Environment. Because the Groupʼs ﬂagshipproducts include environmental conservation plants and equipment, employees exhibit a high awareness of the importanceof environmental conservation, a goal that the Group works to achieve.

4,500

60,00045,04144,40647,90250,9273,000

53,982

1,795

1,758

2017

2018

1,914

2,032

2,137

2020

2021

1,500

30,000

0

2017

2018

2019

2020

2021

(FY)

The total energy input volume of the fuel and the electricity consumed
at Takuma during FY2021 rose slightly compared to FY2020 levels. We
will continue to promote energy savings from here on out.

0

2019

(FY)

The greenhouse gas emitted by Takuma is limited to carbon dioxide(CO₂). The amount of CO₂ emissions in FY2021 rose slightly comparedto FY2020 levels. We will continue striving to reduce CO₂ emissions.
*Annual values for individual providersʼ adjusted emission factors havebeen used.

Total production of waste, etc.

Input volume of water(Tons per year)(m 3 per year)

900■Total production of waste, etc.
■Recycling■Total ﬁnal disposal volume of waste, etc.

471
300

364

334
83

0

2017

193
104
2018

2019

Resource circulation costs

Social activity costs

671
30,000
495

314
120

Global environmental
conservation costs

R&D costs

45,000558

507

Pollution prevention costs

23,40625,176

Expense(thousand JPY)

18,032

15,286

Total energy input volume (GJ)

16,742

Input volume of water (m³)

3,371

25,258

2020

2021

(FY)

Breakdown of
beneﬁts

Waste generated by Takuma during FY2021 fell slightly compared to
FY2020 as appropriate processing such as recycling led to a reductionin the volume of waste subject to ﬁnal disposal. Going forward, we will
work to further reduce the amount of waste we generate. Although wework to recycle and reuse waste, waste that cannot be reused isdisposed of in accordance with the Industrial Waste Control Manifest
System.

2017

103,839

109,051

47,29552,425（2）Environmental conservation beneﬁt related to waste orenvironmental impact originating from business activities

34,03630,398Volume of greenhouse gas emissions (tons-CO₂)

4,422

4,587

74,323

1,695,632

Total production of waste, etc. (tons)

1,209

1,167

-

12,513

Final waste disposal volume (tons)

164

148

95,726

1,804,607

47,29951,926

Wastewater volume (m³)

Environmental conservation beneﬁts are measured in physical units
and are the beneﬁts obtained from the prevention, reduction, and/or
avoidance of environmental impact, removal of such impact, restoration
following the occurrence of a disaster, and other activities.

Economic beneﬁts of environmental conservation measures

101
0

FY2021-

15,000113

FY2020（1）Environmental conservation beneﬁt related to resources input
into business activities-

Investments and expenses related to the prevention, reduction, and/or
avoidance of environmental impact, removal of such impact, restoration
following the occurrence of a disaster, and other activities are measured
in monetary value.

31,38725,390Item

Investment(thousand JPY)

Business area costs

Total

731
600

Item

Administration costs

60,0001,200

Environmental conservation eﬀect

Environmental conservation cost

2018

2019

2020

2021

(FY)

Water resource inputs by Takuma during FY2021 increased comparedto FY2020. We will continue striving to reduce water resource inputs.

Income from the sale of waste forrecycling, etc. (thousands of yen)

12,396

Economic beneﬁts of environmental conservation measures, deﬁned
as contributions to the proﬁt of a company or other entity derived fromhaving pursued environmental conservation measures, are measured inmonetary value.

Period covered: April 1, 2021, to March 31, 2022
Scope of statistics: The following companies are included in thesestatistics.
Domestic: Takuma Co., Ltd., (Head Oﬃce; other oﬃces, including
overseas sites; and the Harima Factory); Nippon Thermoener Co., Ltd.;
Takuma Technos Co., Ltd.; Hokkaido Sanitary Maintenance Co., Ltd.;
Takuma Technos Hokkaido Co., Ltd.; Sunplant Co., Ltd.; Takuma
Engineering Co., Ltd.; Takuma System Control Co., Ltd.; Dan-Takuma
Technologies Inc.; Kyoritsu Setsubi Co., Ltd.; Kankyo Sol-Tech Co.,
Ltd.; Takuma Plant Co., Ltd.; and TECHNO LINKS Inc.
Overseas: Taiden Environtech Co., Ltd., and Siam Takuma Co., Ltd.

Environmental management■PRTR target substance emissions
Although our business activities do not involve a wide variety of chemical substances on a massive scale, we use a few
designated chemical substances. Consequently, we report and register such chemical substances designated under the
Pollutant Release and Transfer Register (PRTR) Law, in accordance with relevant laws and ordinances, with the local
government.

51

The situation concerning the acquisition of ISO 14001
The Harima Factory has earned ISO 14001 certiﬁcation, and it practices environmental management activities inaccordance with an environmental management system that is designed to comply with international standards.
Our group companies Nippon Thermoener Co., Ltd.; Takuma Technos Co., Ltd.; Hokkaido Sanitary Maintenance Co., Ltd.;and Dan-Takuma Technologies Inc. have also acquired ISO 14001 certiﬁcation.

TAKUMA CSR Report 2022

52

Section 02

ESG Initiatives

Environment: Environmental Initiatives（1）Process for identifying risks and opportunities

Disclosing information based on TCFD recommendations
1

Basic approach

Vision 2030, our long-term vision for the Takuma Group 10 years in the future, includes this statement: “Aim to
maintain our role of being an indispensable presence in society as a leading company in the ﬁeld of renewableenergy utilization and environmental protection by realizing sustained growth alongside our customers and society
through implementation of ESG management”. Because the direction we are pursuing in our businesses accords withthe general thrust of social pressure for reducing greenhouse gas emissions and bolstering the resilience ofinfrastructure as natural disasters grow more severe, we have identiﬁed helping combat climate change as one of the
key issues (Materiality) that deserve to be addressed on a priority basis. Moreover, in April 2022 we announced our
support for the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD). As the Group
works to realize its corporate vision, we will strive to enhance initiatives that help realize a sustainable society by
resolving issues faced by customers and society through the provision of products and services and by reducing ourown CO₂ emissions. In addition, we will work to increase the sophistication of our approach to climate change and of
our information disclosure initiatives through dialog with stakeholders.

2

Strategy and scenario analysis

After taking into account multiple scenarios announced by the Intergovernmental Panel on Climate Change (IPCC)
and International Energy Agency (IEA), and referring to various materials released by the Ministry of Economy, Tradeand Industry and the Ministry of the Environment, we established the two scenarios described below (one assuming atemperature rise of less than 2°
C, and the other a rise of 4°
C). We then analyzed the two scenarios with a focus on
our domestic Environment and Energy Business, a ﬂagship business that accounts for the majority of the Groupʼssales and a segment of our operations that is likely to be aﬀected by climate change. We conducted this analysis
through 2030, the ﬁnal year of Vision 2030, our long-term vision, in an eﬀort to identify the risks and opportunities
that climate change would pose for our operations and to summarize the measures that we could undertake toresolve associated issues.
Established scenario

Overview

Reference scenario(s)2°
C scenario

A scenario in which progress in decarbonization restrains
the average worldwide temperature increase to less than2°
C, as set forth in the Paris Agreement

NZE, SDS, and APS (IEA)
RCP 2.6 (IPCC)

4°
C scenario

A scenario in which a lack of progress in decarbonization
results in an average worldwide temperature increase of
4°
C or greater

RCP 8.5 (IPCC)

Note
NZE: Net Zero Emissions Scenario; SDS: Sustainable Development Scenario; APS: Announced Pledges Scenario;
RCP: Representative Concentration Pathways Scenario

53（2）Overview of scenario analysis

2°C

In a world that warms by,
the number of renewable energy
power sources in communities
will increase, with a focus on
independence anddecentralization. Developmentof decarbonization technologies
will spur adoption of CO₂
recovery and carbon recycling
in society.

Industrial ﬁeld
Growing
decarbonization/
low-carbon
transformation

Increased
partnership withlocal industry
Increased supplyof electricity, steam,and hot water

Takumaʼs businesses

Government
Robust implementationof decarbonization
policies like renewableenergy measures

Biomass
power plants

Energy from
Waste plants
Increased inamount andeﬃciency of power
generation from waste
Increase inrecycling facilities

Increase in biomass
power generation(shift away fromCO₂
fossil fuels)
recovery
Increase in biogas
facilities

Adoption of
CCUS

Utilization

Carbon recycling

Increased supplyof electricity(methane fuel,carbon products, etc.)

Electricity(low dependence)

Utilization

GovernanceWe consider contributing to measures addressing climate change to be an important management priority, and weare pursuing a series of companywide initiatives under monitoring structures put in place by our Board of Directors.
The Executive Manager, Corporate Planning & Administration Division (secretariat: Corporate Planning Department),
who serves as the executive in charge of dealing with climate change, requests or instructs involved departments tocooperate, gathers information about how climate change will impact our businesses as well as associated initiatives,
evaluates the risks and opportunities posed by climate change, and reviews the status of related initiatives. This
information is then reported to the Board of Directors following discussion by the Committee of Executive Oﬃcers asnecessary. The Board of Directors supervises the state of Takumaʼs initiatives to combat climate change as well as
their consistency with the companyʼs business policies (in principle, meeting once every year), reviewing policies asnecessary and determining strategy.

3

We identiﬁed key risks and opportunities after extracting risks and opportunities posed by climate change
from the standpoint of all value chains in the analyzed businesses, including sales, engineering, procurement,
and construction, and evaluating them using a three-tier scale based on the extent of their impact on thosebusinesses. Risks and opportunities identiﬁed as having a major impact on our businesses included
strengthening of regulations and policies related to CO₂ emissions, changes in the energy mix, changes insocietal and customer needs, and intensiﬁcation of abnormal weather.

Thermalpower plants

Reduction in impactof physical risks

Climate-related
risk

Local communities

Reduction in risks posedby severe natural disasters

Electricity(low dependence)
Increased partnershipwith local communities

In the scenario where the average global temperature rises by less than 2°
C, demand for technologies like biomass
power generation and generation from waste incineration, which are ﬂagship Takuma products, will grow due to changes
in the energy mix and increased interest in renewable energy. In addition, stronger partnerships between Takuma plants
and local industry (agricultural facilities, industrial parks, etc.) through the supply of steam, hot water, electricity, andother forms of energy can be expected to lead to increased opportunities for our businesses, even as falling
new-construction and replacement demand for waste incineration plants due to implementation of the 3R approach(Reduce, Reuse, and Recycle) and the need to address new needs such as Carbon dioxide Capture, Utilization and Storage (CCUS)
can be anticipated to pose transition risk. To address these risks, we will look to reduce risks while expanding businesses
that take advantage of associated opportunities, for example by enhancing our recurring revenue model businesses,
including maintenance, operation management, and O&M, by proposing optimal solutions that have been custom-tailoredfor individual customers; strengthening product groups that do not depend on incineration, for example biogas recovery
plants and recycling plants; and continuing R&D geared to realize carbon neutrality, for example through CCUS.
Industrial ﬁeld

4°C

In a world that warms by,physical risks will grow as we
fail to reduce or eliminate
carbon dependence.

No progress in
reducing carbon
dependenceElectricity(business as
usual)

Takumaʼs businesses

Government

Increase inbusinesses like power generationfrom waste and biomass
due to business as usual

Stagnation in climatechange-related
policies

Energy from
Waste plants

Electricity(high dependence)

Thermalpower plants

Biomass
power plants

Electricity(business as usual)

Local communities

Increased
physical risk

Climate-related
risk

Growth in risks posedby severe natural disasters

Electricity(high dependence)In the 4°
C scenario, frequent, intensifying extreme weather will cause delays in material procurement andconstruction, raising concerns about impacts on business costs, including with regard to construction schedules. We
will address this risk by standardizing parts and equipment and optimizing inventories of parts, material, andequipment through our Supply Lab (after-sales service facility), and by strengthening Business Continuity Plan (BCP),
for example by ensuring suﬃcient risk buﬀers and hedging against risks with insurance and agreements.
Our strategy through FY2023, which has been formulated with a view towards 2030, is reﬂected in the 13th
Medium-Term Management Plan.

TAKUMA CSR Report 2022

54

Section 02

ESG Initiatives

Environment: Environmental Initiatives（3）Summary of scenario analysis results

Item

Overview of risks and opportunities
Introduction of carbon
pricing

Business costs will rise following the introduction of carbon pricing such as carbon
taxes.

Strengthening of
regulations and policies
related to CO₂ emissions

Climate change measures will become a requirement for bidding government
contracts, and progress in implementing initiatives preparing for a decarbonizedsociety will impact opportunities for earning orders.

Changes in the energy mix

Governmental energy mix policies and increasing interest in renewable energy will
spur demand for biomass power generation and high-efficiency waste incinerationand power generation, which are flagship Takuma products.

Review of programs
designed to support
adoption of renewableenergy, for example FIT
and FIP

Demand for biomass power plants will shrink as factors including reassessment of
the standards for biomass fuel lead to a reduction in renewable energy adoption
incentives for biomass power generation.

Policy and law

2°C
scenario

Market4°C
scenario

4

Changes in society andcustomer needs

Strengthening of 3R (Reduce, Reuse, and Recycle) initiatives will lead to a
reduction in the amount of waste that is incinerated, pushing down demand for
waste incineration plants.
Demand for strengthening of partnerships with local industry (agricultural facilities,
industrial parks, etc.) through the supply of steam, hot water, electricity, and otherforms of energy and for the ability to function as disaster prevention facilities willgrow.

Impacts

Countermeasures●Implementation of Takuma initiatives related to energy savings and decarbonization●Future initiatives to reduce greenhouse gas emissions in collaboration with suppliers

There are risks,
but they can beaddressed●Initiatives to eliminate carbon dependence and realize a Regional Circular and Ecological
Sphere (Regional CES), for example equipping municipal solid waste treatment plants with
CCUS technology●Progressive and steady reductions in greenhouse gas emissions from Takumaʼs businessactivities

Addressingthese risks willlead to increased
business
opportunities

Opportunities●Enhancement of internal resources in terms of both quality and quantity in response to demand
growth●Utilization of digital technologies and ongoing strengthening of R&D and engineering
capabilities

Increasedbusiness
opportunities

Risks●Maintenance and expansion of Takumaʼs market presence in small and medium-size biomass
power generation, where the impact of fuel regulations is assumed to be comparatively limited●Capture of demand that does not depend on FIT/FIP, for example fuel conversions for industrial
boilers

There are risks,
but they can beaddressed

Risks●Strengthening of ability to accommodate treatment methods that do not depend on incineration,for example biogas recovery plants and material recycling, in response to market trends (althoughthese trends will not spur an abrupt decline in demand for incineration facilities as of 2030)●Strengthening of recurring revenue model businesses such as maintenance, operation
management, and O&M

There are risks,
but they can beaddressed

Opportunities●Supply of optimal solutions based on precise assessments of diversifying customer needs andchanges in the business environment●Development of new business schemes and strategic partnerships

Increasedbusiness
opportunities●Development of decarbonization technologies such as CO₂ management technology andcarbon-free technology●Implementation of the technologies necessary for eliminating carbon dependence and realizing
a Regional Circular and Ecological Sphere (Regional CES), for example equipping municipal
solid waste treatment plants with CCUS technology

Addressingthese risks willlead to increased
business
opportunities

Risks
Opportunities
Risks

Technology

Adoption of
decarbonization,
renewable energy,
and energy-saving
technologies

Demand for solutions for realizing carbon neutrality (hydrogen power generation,ammonia power generation, CCUS, etc.) will grow.

Physical risks(chronic)

Rising averagetemperatures

The operational efficiency of employees, workers, and others will fall due to heat
illness and other related factors.

Risks●Reduction in, and streamlining of, outdoor work times through utilization of digital technologies,
drone technology, and other resources

There are risks,
but they can beaddressed

Physical risks(acute)Increasing severity of
extreme weather

Frequent, intensifying extreme weather will cause delays in material procurement
and construction, impacting business costs, including with regard to construction
schedules.

Risks●Implementation of part and equipment standardization and sharing●Setting aside of appropriate inventory of parts, materials, and equipment (utilizing Supply Lab)●Strengthening of BCP measures, including hedging of risks with insurance and contract conditions

There are risks,
but they can beaddressed

Risk management

We established a working group including outside experts with the Planning Department as its secretariat,
identiﬁed risks and opportunities characterized by major impacts on our management and ﬁnancial operations,conducted a scenario analysis, and reported the evaluation and analysis results to the Board of Directors. The Boardof Directors supervises the state of Takumaʼs initiatives to combat climate change through this report.
In addition, Takuma is building companywide risk management structures based on its Risk Management Code,and the departments that operate its businesses conducts risk management through measures such as identifying,avoiding, transferring, and reducing risks with the potential to adversely aﬀect its businesses. Going forward, we will
integrate climate change risks into these risk management structures, and give the Compliance & CSR Promotion
Division responsibility for centralized management.

Opportunities
Risks

1 CO₂ emission reduction targets through our own products and services
Magnitude of potential reduction in CO₂ emissions due to newly delivered power plants*
FY2023

FY2030800,000 tons per year

2.5 million tons per year

*Biomass power plants and Energy from Waste plants delivered from FY2021 to FY2030

2 In-house CO₂ emissions reduction targets
5

Indicators and targets

As we work to realize both initiative toward net-zero GHG emissions by 2050 and Vision 2030, Takumaʼs long-term
vision, we will resolve issues faced by customers and communities by proposing products and services that contributeto energy savings and decarbonization while working to reduce our own CO₂ emissions.

FY2023

Eﬀectively zero CO₂ emissions

for Scope 1 and Scope 2
at the Takuma head oﬃce and the Harima Factory

FY2030Eﬀectively zero CO₂ emissions

for Scope 1 and Scope 2 at all Takuma domestic worksites(Head Oﬃce, branch oﬃces, factory, and construction sites)

・FY2030 targets including group companies remain under consideration.
・CO₂ emissions from procured products and use of Takuma products by customers (Scope 3) also remain under consideration.

55

TAKUMA CSR Report 2022

56

Section 02

ESG Initiatives

Social:: Social Initiatives

Strengthening Relationships of Trust with
Customers and Communities

Participation in the community

Working through initiatives to pursue customer satisfaction, ensure the stable and continuous operation of plants andequipment, and create new value for regional resource recycling and communities, the Takuma Group will maintain and strengthen
relations of trust with customers and communities by supplying high-quality products and services that facilitate stable, long-term
operation on an ongoing basis in the form of infrastructure that supports regional society and customersʼ businesses.

Takuma and its group companies strive to deliver safe, trustworthy facilities that allow local residents to live with peace ofmind by disclosing information in an appropriate manner, participating in local activities, and actively seeking interactions
with local residents, for example by staging clean-up activities in the areas near facilities, hosting events at which local
residents can gather, and orchestrating evacuation exercises envisioning natural disasters.
Although these eﬀorts have been impacted by the COVID-19 pandemic in recent years, we continue to pursue them while
taking steps to prevent infection. This section introduces some examples.

Pursuing customer satisfaction
In recent years, the amount of attention paid by society to not only manufacturing and service, but also quality across awide range of ﬁelds, has been growing. Against this backdrop, it will be necessary not only to increase the quality of
products, but also to improve management of operations and quality in each process from plant planning to delivery(including sales, planning, design, procurement, manufacturing, construction, and management) and employeesʼ operational
capabilities so that we can supply products and plants that satisfy customers.
To that end, our Head Oﬃce, branch companies, and branch oﬃces have earned certiﬁcation under ISO 9001 (Quality
Management Systems), and the Harima Factory has earned certiﬁcation under ISO 9001 and ISO 14001 (Environmental
Management Systems). We are working to improve the quality of operations, products, and business processes inaccordance with the latest 2015 editions of those standards.

Amagasaki City SDGs Fair in ODA 2021

Waste-sorting board game

Quality Policy
Takuma Co., Ltd., has adopted the following Quality Policy in order to provide satisfying products that meet customer
expectations and earn a high level of trust while continuously improving the eﬀectiveness of its quality management system.

Quality Policy

Manufacturing products that result in customer satisfaction

In keeping with the above Quality Policy, we have identiﬁed the three priority items listed below. Recognizing those items,
we are undertaking a variety of initiatives to increase the quality of products and business processes in all processes,
including sales, planning, design, procurement, manufacturing, construction, and management.

1

Principal initiatives to improve quality●Establishing quality targets for each divisionʼs processes; monitoring, measuring, and evaluating implementation status (twice a year)●Holding QM Committee meetings (quality management reviews, twice a year)●Holding internal quality audits to evaluate the status of management systems in individual divisionsʼ processes (once a year)●Using operational skill achievement checklists designed to improve employeesʼ operational skills (once a year)

3

Customer satisfaction survey

We administer a customer satisfaction
survey covering the entire construction
process, including work performed, delivered
equipment, and employee service, targetingcustomers for which construction projects arecompleted. Our QM Committee analyzes thestatus quo and studies measures for improving
quality based on feedback from customers in atimely manner, working to improve the qualityof the products we supply to customers and of
our own internal operations by applying
lessons learned horizontally across theorganization.

(Points) ■Number of responses
100
85.9

85.8

●Average score

87.7

88.2

86.8

(Responses)
40
85.6

86.3

86.1

88.4

80

30

60

20

40

The Takuma Group manages facilities under contract from many local governments as part of its long-term comprehensive
operation business, which oﬀers turnkey operation and maintenance management service for municipal solid waste
treatment plants and other DBO projects.
Since drawing on the extensive expertise that we have developed in the area of plant operation and maintenancemanagement to date to earn our ﬁrst private-sector O&M (Operation management and Maintenance management) contractfrom SARA Incorporated in 2019, we have received contracts for plant O&M operations from multiple private-sector
customers.
At each site, operational status and equipment operation data collected and analyzed by our Plant Optimization
Comprehensive Support System (POCSYS ®) provides valuable feedback for facility operations. As part of a continuing
program of initiatives geared to ensure safe, secure facility operation, we hold monthly liaison meetings with customers toreport on facility operational status and exchange information.
Going forward, the Takuma Group will continue to realize stable, long-term operation of facilities by drawing on theoperation management and maintenance management expertise that Takuma and group company Takuma Technos Co.,
Ltd., have accumulated over many years of operations.

86.5

25

27

23

19

27

27

28

36

22

25

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021 (FY)10

Questionnaire average score (out of 100 possible points)
Scores averaging higher than 85 points for each of the last 10 years
indicate a positive evaluation of these eﬀorts.

57

Local residents enjoying the board game

Initiatives designed to ensure stable plant operation

Priority items

Creating value to earn customer satisfaction・・・・・・・・・・・・・・ Ascertaining customer needs and making improvements based on past experience
Carrying out risk management ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ Addressing changes in the business environment and human error
Implementing human resources management ・・・・・・・・・・・・・ Implementing human resource development and ensuring skills are passed down toyounger employees

2

We participated in “SDGs Fair in ODA 2021”, which was hosted
in November 2021 by the City of Amagasakiʼs Oda Region Section
to deepen understanding of the UNʼs Sustainable Development
Goals (SDGs).
Staﬀ at our booth joined visitors in playing a waste-sorting board
game that we created with the local non-proﬁt organization
Amagasaki Environmental Open College.
The game featured quiz questions about waste-sorting rules in
Amagasaki. Players earned coins when they answered questions
correctly and exchanged them for environmental points, the total ofwhich determined the winner.
The booth attracted numerous attendees, particularly families,
who had fun while learning about waste sorting in Amagasaki
through the quiz.

A daily inspection of a facility

A customer liaison meeting

TAKUMA CSR Report 2022

58

Section 02

ESG Initiatives

Social:: Social Initiatives

Pursuing Partnerships and Innovation
Conventional products and services are undergoing a dizzying evolution against the backdrop of progress in the Fourth
Industrial Revolution and the evolution of information and communications technology, fueling fast-paced change in society.
Working through initiatives to utilize digital technologies and promote open partnerships and innovation, the Takuma Groupwill look to further bolster its strengths by focusing on proposals based on societyʼs and customersʼ needs, R&D to facilitate
them, and technological improvements so that it can keep up with social change.

Open partnerships
At a time when society is changing rapidly, it is necessary to develop businesses quickly and in a way that transforms
those changes into opportunities. By deepening partnerships with other companies and organizations so that we canconsistently provide the products and services that customers demand, we will strengthen our ability to propose solutions tocustomers and accelerate R&D.

1

Utilization of digital technologies (AI, IoT, robots, and more)
Progress in the Fourth Industrial Revolution and in the development of telecommunication technologies is rapidlytransforming conventional products and services. Plant EPC, operation management, and maintenance are no exception,and digitalization in these areas is likely to continue to accelerate, albeit against the backdrop of labor shortages andrestrictions on in-person work imposed as a result of the COVID-19 pandemic. Takuma is pursuing development and otherinitiatives from a medium- and long-term perspective so that we can create added value, for example by realizing
technologies facilitating remote and fully automated operation of plants, streamlining and reducing labor requirements for
operations by utilizing data, and strengthening competitiveness in the areas of EPC and after-sales service.

Expanding resources

We are pursuing partnerships and alliances with companies in related ﬁelds as well as M&As in order to strengthen our
EPC capabilities.

2

Initiatives to contribute to the maintenance and expansion of existing businesses

To resolve the challenges faced by customers and communities, we are strengthening our ability to propose solutions withthe help of partners for knowledge that we lack.

3

Initiatives to create new businesses by promoting open innovation

In addition to joint research with universities and other companies, we are working with other companies to develop new
businesses as well as decarbonization technologies.

Topics1

Increases in the added value of facilities and plants

In addition to providing 24-hour remote monitoring andoperational support through Solution Lab, our remote monitoringand operational support facility, we are working to realize stable
plant operation through such measures as facilitating stable
operation by collecting and analyzing plant operational data andby optimizing maintenance.

TopicsOperational support through AI-enabled combustion
stabilization technology and remote operation
We developed a combustion AI that can make decisions on
par with those of experienced operators. By combining this AI
with conventional automatic combustion control technology, we
have been able to reduce manual operation by operators by
99% while maintaining stable combustion. In addition, we haverealized stable facility operation through remote operation when
operating at reduced staﬀ levels.

Participation in the C2X Project
Takuma is participating in the Carbon to X (C2X) project, an open innovation businessplatform dedicated to helping realize a decarbonized society. The organizationemphasizes commercialization through inter-industry partnerships to promote adoption oftechnologies for decarbonization and Carbon dioxide Capture, Utilization and Storage (CCUS).
By commercializing CCUS technology through the C2X project, for example inbusinesses that use collected CO₂ as a raw material to produce fuel or chemical
products, we will realize a global vision for a sustainable, safe, secure, and comfortable decarbonized society based on
cyclical resource ﬂows through adoption of renewable energy.
As a leading manufacturer of municipal solid waste treatment plants, Takuma will contribute to the realization of adecarbonized society by working with local governments and local stakeholders to develop and study next-generation waste
treatment plant in order to achieve carbon neutrality by 2050 through C2X.

Pursuit of innovation
In recent years, the problem of climate change has sparked calls to realize a decarbonized society through carbon-neutral
technology and to pursue additional environmental conservation. Takuma is focused on pursuing R&D and technologicalimprovements in order to develop technologies and products that are sought by society and customers.

TopicsStudy of energy-saving CO₂ separation and recovery at biomass power plants
Selection for inclusion in a NEDO CCUS R&D and Demonstration Project2

Strengthening of competitiveness in EPC operations, operation management, and maintenance service

Plant EPC, operation management, and maintenance require
many years of experience, and our accumulation of such
experience since our founding has become a core Takuma
strength. To reliably pass on experience and skills so that we canprovide high-quality EPC and after-sales service, we are working
to further improve individual employeesʼ skills by using digitaltechnologies to transform knowledge and expertise into formal,
explicit knowledge. Moreover, we are working to strengthen
competitiveness in EPC and after-sales service by investing
limited time and human resources in the areas that most deserve
such attention, for example by streamlining operations throughuse of technologies such as Robotic Process Automation (RPA).

59

In August 2021, Takuma and Nippon Paper Industries Co., Ltd., wereConcrete
Biomass
Absorption Regeneration
chosen by the New Energy and Industrial Technology Development
Synthetic gas
power plant
tower
tower
• Methane• Methanol, etc.
Organization (NEDO) to implement a project entitled “Research,
Liqueﬁed carbon
Development and Demonstration Project for CCUS/Investigation
dioxide gas
Flue gas
Recovered CO₂(for industrial use)
Project related to CCUS Technology/Technology Investigation Project
Undergroundrelated to CO₂ separation & capture and intensive transportation &storage of CO₂(BECCS)
Utilization for large-scale CO₂ Emission Source/Investigation into
Power
CO₂
CO₂
Transport, use, andgeneration
absorption
regeneration
undergroundstorage
Energy-Saving CO₂ Separation & Capture at Biomass Power Plants”.
The project is scheduled to continue until February 2023.
Separation, recovery, and CCU/CCS for CO₂
from biomass power plants (conceptual diagram)
The project, which uses a biomass power plant (scheduled to start
operations in January 2023) operated by Yufutsu Energy Center, LLC, a joint venture of Nippon Paper Industries and Sojitz
Corporation, as a model, involves drawing on Takumaʼs extensive experience, technology, and expertise in municipal solid
waste treatment facilities and biomass power plants to study energy-saving CO₂ separation, recovery, and concentration
technologies at biomass power plants as well as issues related to the commercialization of those technologies.
By giving direction to the social implementation of technology for separating, recovering, and concentrating CO₂ at biomass
power plants; commercializing CCUS technologies; and realizing a Sound Material-Cycle Society through this study project,
Takuma will help spur increased adoption of renewable energy and reduction in greenhouse gas emissions.

TAKUMA CSR Report 2022

60

Section 02

ESG Initiatives

Social:: Social Initiatives

Promoting Activities of Human Resources

Promoting diversity

The Takuma Groupʼs human resources have fostered and passed down key strengths in the form of technology, expertise,
and trust-based relationships with customers. Through initiatives to strengthen the hiring and development of humanresources as well as to promote diversity and improve employee satisfaction, we will continue to ensure that the Groupʼsstrengths are eﬀectively passed down and strengthened by using human resources eﬀectively so that employees embodying
a diverse range of values can take full advantage of their abilities, and by putting in place structures to keep employee
motivation high.

Working with our employees
Takuma has identiﬁed using human resources eﬀectively as a
key issue as it works to ensure that all employees can makemaximum use of their skills and abilities, enjoy engaging work,
feel a sense of motivation, and continue their employment overthe long-term.

Employee data (non-consolidated)
Number of employees

958 (877 men and 81 women)

Average age

42.9

Average years of service

14.9

Attrition rate

4.3% (past 3 years)

Securing and training human resources
Initiatives related to securing human resources

As a result of hiring activities that included online information
sessions and interviews and numerous other techniques such as
referral hiring in an eﬀort to ease the labor shortage, Takuma hired
79 new employees in FY2021, including new and mid-career hires.
Going forward, we will focus on ensuring a suﬃcient workforce,
including by taking advantage of online techniques to hostinformation sessions for applicants living in distant areas, andotherwise approaching promising candidates.

Initiatives to increase hiring of disabled individuals

In addition to hiring people with disabilities to work primarily in general work in various departments and creating the Oﬃce
Support Section in the Human Resources Department to manage work by people with disabilities and “outsource” internaltasks to them as part of an eﬀort to promote more broadly-based hiring, we currently* employ seven workers with disabilities
who clean oﬃces, perform administrative work, and help maintain and manage a cafe space that serves as an employeesocial welfare facility. (*As of April 30, 2022)

Improving employee satisfaction
1

Programs to ensure employees can continue working over the long-term with peace of mind

We have introduced the following programs to facilitate healthy work-life balance and to help employees make the most of
their skills and abilities while balancing their work with child-raising and nursing-care responsibilities. In addition, we areworking to increase utilization of parenting support programs to at least 25%, which would double the FY2020 level, byfurther enhancing those programs and spreading awareness of them. During FY2021, utilization increased to 32%.

Number of newly hired regular employees over the past 7 years(based on start of employment)(Figures in parentheses indicate the number of female employees)●Half-day annual paid leave program●Flex time program

FY2017FY2018FY2019FY2020

FY2021*New hires only

New hires

18（1）

24（2）

21（2）

20（2）

25（3）

26（2）

28（4）

Mid-career hires

11（1）

10（0）

22（1）

25（1）

37（2）

53（5）

-

Total

29（2）

34（2）

43（3）

45（3）

62（5）

79（7）

28（4）

●Nursing-care leave program●Staggered working hours program●Shortened working hours program

Impressions from an employee who has taken advantage of Takumaʼs childcare leave program
When I learned my wife was pregnant, I was ﬁlled with joy at the prospect of welcoming a new family member. At the sametime, I was worried about asking my wife to care for our new child by herself, since thereʼs nobody nearby we can depend on
for help after the birth. Those concerns were eased when I was able to use the childcare leave program, thanks to theunderstanding and cooperation of my workplace colleagues and supervisor. Since I was able to help out with childcare andhousehold chores, despite not being very familiar with either, my wife was happy, and I was able to watch our childʼs rapid
growth from an up-close vantage point. (From a male engineering employee in his 30s)

Initiatives related to human resources development

We oﬀer human resources education to a broad range of
employees, from new hires to management candidates andmid-career hires, to build skills and abilities, improve management
skills, and otherwise enhance employee performance.
During FY2021, we worked to enhance our educational
programs, for example by oﬀering new training designed to foster
eﬀective communication for new-hire employees in their third year.

●Childcare leave program●Telework program●Leave program for husbands whose wives are giving birth

FY2022FY20162

Initiatives to increase female participation

In addition to putting in place a workplace environment that provides ﬂexible workstyles
and continuous employment, we have continued to pursue initiatives that encourage
employees to understand Takuma. As a result, the number of female employees on themain career track and in management positions (including individuals who have beententatively oﬀered positions) as of March 31, 2022, increased to 35, which is three times
the corresponding number as of March 31, 2016.
We are working to strengthen these initiatives over ﬁve years starting in FY2021 in aneﬀort to increase the number of female employees on the main career track and inmanagement positions by a factor of at least two over corresponding numbers for the mostrecent ﬁve-year period (to 35 or more employees). During FY2021, we added 10 female
employees on the main career track through hiring and job group changeover. In addition,
during FY2021, we cooperated with eﬀorts to support female studentsʼ job-search
activities by participating in a Hyogo Prefecture program designed to encourage female
students studying in the prefecture to look for jobs within the prefecture.

2*As of March 31, 2022

1

1

2

Initiatives to support career development

We have established the following programs to support the development of employeesʼ careers.
●Supervisors schedule two interviews with each subordinate every year to review progress toward operational goals

and listen to their wishes and advice directly.
●A self-reporting program session is held every three years to facilitate long-term career development.
●A work group transfer program facilitates movement from clerical and labor positions to the main career track.

New-employee
training

61

Technical presentationby 2-year employees

Training for
3-year employees

Thesis discussion by
5-year employees

Presentation by
10-year employees

Mid-career
training

Management
training

We have also introduced programs that give talented employees promotions without regard to whether they were a new or
mid-career hire.

TAKUMA CSR Report 2022

62

Section 02

ESG Initiatives

Social:: Social Initiatives

Ensuring Safety and Health

3

The Takuma Group will work to further strengthen its core strengths of technology and expertise as well as relationshipsof trust with customers while preventing a decline in the quality of its products and services or in the level of trust it enjoys
from society by safeguarding workersʼ physical and mental health and building an environment in which it is easy for
employees to do their jobs. Speciﬁcally, we will accomplish these goals by ensuring occupational safety and health,managing employee health, and putting in place an employee-friendly workplace environment.

Occupational safety and health initiatives

Safety and health education

Education for construction site representatives
We oﬀer specialized safety and health education to employees andsupervisors from aﬃliates so that they can oﬀer precise safety guidance andfulﬁll their responsibilities as site supervisors.
We are putting in place mechanisms for preventing accidents, including byassigning workers with extensive knowledge in areas such as safety andhealth-related laws and ordinances thanks to an education program thatbegan on April 1, 2004, to individual construction sites.
●April 2004 to

Since FY2006, we have introduced TK-COHSMS based on an occupational safety and health management system forthe construction industry and worked actively and independently to improve our safety and health activities. We believe thatamong these eﬀorts, the manner in which (1) safety inspections, (2) mandatory safety and health education (education for
construction site representatives), and (3) creation of pre-work safety procedure checklists known as SSAs have beensteadily adopted by all departments and used to consistently improve the level of knowledge about Takumaʼs safety andhealth is particularly noteworthy.
We have adopted the following safety and health objectives for FY2021: eliminating fatal accidents and accidents that
result in work stoppages (of four or more days); pursuing a thorough program of safety and health education, ensuring
adherence to safety inspection guidelines, and implementing the branch safety patrol plan; strengthening collaboration with
the Safety and Health Cooperative Association. Takuma and involved contractors worked together to revitalize safety andhealth activities companywide by reliably fulﬁlling their respective roles.
We have adopted the following safety and health objectives for FY2022: eliminating rule violations by activating safety
and health education, establishing measures to reduce risks, rolling out new safety patrols with the goal of reducing
accidents, and sharing robust safety awareness while strengthening cooperative structures with the Safety and Health
Cooperative Association. Rather than contenting ourselves with the status quo, we will pursue new safety and healthinitiatives to foster a strong awareness of the concept that underlies our safety and health policy̶“understanding the needfor respecting people and giving top priority to safety and health”̶on the part of everyone who is involved in our operations.

March 2022

Cumulative number of trainees ・・・・・・・・・・・・・・・・・ 37,803
Number of trainees passing the completion exam ・・ 20,134

Head Oﬃce venue

Tokyo Branch venue

During a lecture

Inspection of safety andprotective gear

Construction employee education
We oﬀer safety and health education to construction work employees at
aﬃliates so that they can follow safety rules while doing their jobs.

4

Promoting the digital transformation (DX) in safety and health management

We are promoting a qualitative transformation (DX) as an important
technique for reducing accidents while using Information and Communication
Technology (ICT) to drive eﬀective techniques for reducing workload, forexample through development of information databases, acceleration of
information availability, streamlining of communications and enhancement ofassociated accuracy, and visualization.
Illustration of how site assistance can beprovided remotely

Safety and health activities and their results

Takuma recognized employees who worked to prevent occupational accidents at worksites
and set zero-accident records at an internal award ceremony held on the anniversary of thecompanyʼs founding. Although we had planned to similarly recognize primary partner companies
who helped set zero-accident records at the Safety and Health Promotion Meeting, we wereforced, with great regret, to cancel the event along with the awards ceremony again in FY2021
due to the COVID-19 pandemic. However, we were able to recognize award recipients who set
zero-accident records by sending them a commemorative award.

Safety inspection system

We maintain a system where any construction or installation work starts
only after the safety and health manager or other responsible oﬃcial in eachdepartment conducts a successful safety inspection based on safety andhealth plans for the construction or installation work as prepared by our
primary partner companies.
We strive to ensure a safe work environment at all construction sites by
eliminating risk factors identiﬁed by those inspections before work begins.

2

A safety inspection meeting

Safety patrols and safety lectures

Based on an annual plan, safety patrols are carried out at worksites by the
Safety and Health Committee (comprised of committee members andadvisors), Safety Control Department, and Construction Division along withsafety lectures in a precisely targeted and eﬃcient manner.
Safety patrols focus on identifying and eliminating risks as early as
possible, while safety lectures are conceived to prevent occupational
accidents and raise employeesʼ safety awareness by oﬀering an opportunity
to hand out and explain materials such as examples of accidents. Bothprograms help ensure safety at worksites in the ﬁeld.

10

5

Accident severity rate
2.5
1.62
0.03

1.85
0.12

7

6

5
3

0

2017

2018

2019

2.0
1.5
1.0
0.5

2020

Number of casualties due tooccupational accidents
Total actual working hours

0
2021 (Year)×1,000,000

Internal presentation ofa zero-accident record award

Accident
severity rate

Year

Accident
frequency rate

2017

0.81

0.18

2018

1.09

0.30

2019

1.69

0.29

2020

1.30

0.24

2021

1.39

0.41

Reference: Nationwide average accident frequency andseverity rates for the construction industry(general construction)*Accident severity rate: Indicates the seriousness ofaccidents as the number of work-days lost per 1,000
actual working hours.
Total work-days lost
Total actual working hours

×1,000Managing employee health

By Safety and Health Committee (members, advisors) ・・・・・・・・・・・・・ 60
By Safety Control Department ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 269

63

Takumaʼs safety results
Accident frequency rate
Number of casualties
2.03
0.87
1.76
2.16
1.76
9
0.06

*Accident frequency rate: Indicates the frequency
with which accidents occur as the number offatalities caused by occupational accidents per 1
million actual working hours.

●Number of safety patrols implemented in FY2021

By Construction Division ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 260

The total actual working hours for
Takuma in 2021 was about 3.23
million hours. Although the numberof occupational accidents andaccidents resulting in work
stoppages fell from 2020, both theaccident frequency rate and theaccident severity rate rose.

Takumaʼs accident frequency
rate and severity rate

● Number of safety inspections completed in FY2021: 106

Occurrence of occupational accidents at Takuma in recent years(Number of casualties, accident frequency rate, and accident severity rate)

Number of casualties (persons)

1

Safety and health awards in the Construction Division / Safety and Health Promotion Meeting

Safety patrols

To follow up on employeesʼ regular check-ups, we work with industrial physicians to recommend additional testing andtreatments to individual employees and provide health guidance from industrial physicians. Additionally, we are working toassist employees who work excessively long hours, for example by assessing the conditions under which they work,
conducting interviews as necessary, and having their supervisors consider possible remedies. Furthermore, we oﬀer
assistance to defray the cost of using cafeteria plans as an initiative to increase employee health.

TAKUMA CSR Report 2022

64

Section 02

ESG Initiatives

Governance:: Governance Initiatives■Audit & Supervisory Committeeʼs Oﬃce

Strengthening Corporate Governance

Takuma has put in place structures to ensure Audit & Supervisory Committee members can do their jobs eﬀectively by establishing an
Audit & Supervisory Committeeʼs Oﬃce to help carry out the committeeʼs work.

Corporate governance structures■Nominating & Compensation Advisory Committee

We have put in place the following governance structures:(As of June 24, 2022)

General Meeting of Shareholders
Appointment
and dismissal

Reporting

Reporting andstatement of views

Board of Directors

Appointment
and dismissal

Reporting

Audit & Supervisory Committee

Auditing

Discussion andreporting

Recommendations

ReportingAccounting Auditors

Cooperation

Consultations

Assistance

Audit & Supervisory
Committeeʼs Oﬃce

Nominating & Compensation
Advisory Committee
Selection, dismissal,
and supervision

Auditing ofaccounts

Auditing

Cooperation

Representative Director

ReportingCompliance & CSR
Promotion Division

Committee of Executive Oﬃcers(Deliberation of important matters)

Discussion ofand reporting onimportant matters

Issuance of instructions
and communication of
information

Observing
and guidanceInternal
auditing

Internal Audit Department

ReportingInternal auditing

Executive Oﬃcers

Various committees

Execution of responsibilities

Policy on the appointment and dismissal of executives

To maintain an appropriate number of members who can conduct eﬀective discussions and assure that the body canappropriately carry out its role of decision-making on basic policies and important matters related to the companyʼs
management and supervision of directorsʼ and executive oﬃcersʼ execution of their job responsibilities, Takuma takes
various steps to ensure that the Board of Directorsʼ membership exhibits a good balance of knowledge, experience, andability. The Policy on the Appointment and Dismissal of Executives put in place by the Board of Directors establishes
appropriate processes for appointing and dismissing executives along with basic requirements for director candidates andexecutive oﬃcers; criteria for appointing director candidates, executive oﬃcers, and other positions; and criteria fordismissing directors and executive oﬃcers.

Education, instructions, and reporting

Divisions and Centers■Basic policy on corporate governance2
Insidedirectors

Outsidedirectors

In order to safeguard and steadily increase the Groupʼs corporate value over the long-term, it is essential not only to ensure thedevelopment of the companyʼs businesses, but also to clearly deﬁne governance in corporate operations̶that is, to ensure thatshareholdersʼ oversight of operations is carried out appropriately and that oﬃcers carry out their operational responsibilities by means of aprocess that is clear, rational, eﬃcient, and legally compliant. For that reason, we believe that understanding the Corporate Governance
Code and putting it into practice in an autonomous and systematic manner are top-priority management issues.

■Board of Directors
As of June 24, 2022, the Board of Directors was comprised of six directors (excluding directors who are members of the Audit &Supervisory Committee) and ﬁve Audit & Supervisory Committee members (of whom four were outside directors). The Board of Directors
meets regularly once a month as a rule and whenever else it is necessary to make decisions about important issues related to business
management and issues established by law and ordinances, as well as to oversee the execution of the directorsʼ duties.
Directors: 11 (10 men and 1 woman), including 4 outside directors (3 men and 1 woman)■Executive oﬃcers
In order to accelerate management decision-making and clarify where management responsibilities are placed, we have adopted an
executive oﬃcer system in which we appoint executive oﬃcers who are entrusted with the responsibility of executing our businessactivities. As of June 24, 2022, there were 15 executive oﬃcers (including those who also serve as directors). Moreover, we have alsoestablished a Committee of Executive Oﬃcers, which is chaired by the president/chief executive oﬃcer, as an organization that
deliberates matters that are brought up at meetings of the Board of Directors and other important issues related to the execution of ourbusiness activities. This committee communicates and provides direction about items decided by the Board of Directors and otherimportant items related to the execution of our business activities appropriately to the divisions that are to execute them.

■Audit & Supervisory Committee
We have established an Audit & Supervisory Committee to serve as our auditing structure. That committee, which consists of ﬁve
members, of whom four are outside directors, is responsible for accounting and operational audits. Members of the committee attend
important meetings, including those of the Board of Directors and the Committee of Executive Oﬃcers, and they strive to understand andobserve the status of business execution in a timely and appropriate manner. They express their opinions as necessary, administerself-inspections and evaluations by all executive oﬃcers of the internal control system at year-end, and otherwise conduct strict auditing of
the business execution performed by the directors. In addition, members work together to conduct audits of worksites, departments, andsubsidiaries in accordance with audit policies and other guidelines established by the Audit & Supervisory Committee while exchanging
information regularly, for example by receiving reports from accounting auditors and the Internal Audit Department about topics such as
audit plans and the status of ongoing audits. Members also receive business reports as necessary from subsidiaries as they work tocommunicate and exchange information with those companiesʼ directors, Audit & Supervisory Board members, and other personnel.

65

Appointment and dismissal criteria for directors
1

Reporting

ReportingAppointment and dismissal

Supervision

Appointment
and dismissal

Reporting

We have established the Nominating & Compensation Advisory Committee to increase transparency and objectivity in the selection ofcandidates for director and executive oﬃcer positions and in the determination of the compensation and other terms so as to enhance theoversight function of the Board of Directors. The Committee includes a total of six members, the majority of whom are independent
outside directors: four independent oﬃcers (independent outside directors), a representative director, and the executive oﬃcer in chargeof human resources. The Nominating & Compensation Advisory Committee, which reports to the Board of Directors, discusses topics
related to executive appointment, dismissal, and compensation as well as topics related to CEO succession planning. Having received
that report, the Board of Directors makes ﬁnal decisions on related matters after suﬃcient discussion while respecting the Committeeʼsreport.

Procedures for appointing and dismissing executives

The Nominating & Compensation Advisory Committee, whose membership consists of independent oﬃcers, representative
directors, and the oﬃcer in charge of human resources (with a majority of independent outside directors), discusses theappointment and dismissal of directors and executive oﬃcers, including the position of president and CEO, in accordancewith the Policy on the Appointment and Dismissal of Executives put in place by the Board of Directors. The Board of
Directors makes ﬁnal decisions in such matters after suﬃcient discussion based on factors including directorsʼ past andpresent performance of their responsibilities while respecting reports and advice from the Committee.

Selection criteria for independent oﬃcers
Takuma designates all outside oﬃcers who satisfy certain qualiﬁcations as independent oﬃcers.
We assess the independence of outside directors based on standards of independence adopted by the Tokyo Stock
Exchange as well as our own internal Standards for Determining the Independence of Outside Executives.

■Standards for Determining the Independence of Outside Executives
In Takumaʼs view, the following individuals do not exhibit suﬃcient independence to qualify as an independent executive:(1) Individuals/entities whose principal business partner is Takuma*1 and their oﬃcers*2(2) Principal business partners of Takuma*3 and their oﬃcers(3) Consultants, accounting experts, and legal experts who are receiving ﬁnancial compensation or other assets in excess ofa certain amount*4 from Takuma, apart from executive compensation (If the entity receiving such assets is an organizationsuch as a corporation or an association, then this criterion refers to individuals belonging to that organization.)(4) Individuals/entities that receive donations or aid in excess of a certain amount*4 from Takuma, apart from executive
compensation (If the entity receiving such assets is an organization such as a corporation or an association, then thiscriterion refers to individuals belonging to that organization.)(5) Major shareholders*5 of Takuma and their oﬃcers*1: “Individuals/entities whose principal business partner is Takuma” refers to individuals and entities that earned at least 2% of their consolidated net sales during
the most recent business year from Takuma.
*2: “Oﬃcers” refers to managing directors, executive oﬃcers, and other personnel.
*3: “Principal business partners of Takuma” refers to individuals and entities whose payments to Takuma constituted at least 2% of Takumaʼs consolidated net sales
during the most recent business year.
*4: “A certain amount” refers to at least JPY 10 million (for individuals) or at least 2% of gross sales (for organizations) during the most recent business year.
*5: “Major shareholder” refers to an individual or entity that holds at least 10% of the total voting rights.

TAKUMA CSR Report 2022

66

Section 02

ESG Initiatives

Governance:: Governance Initiatives

Compensation and other remuneration paid to directors(except Audit & Supervisory Committee members)
1

Matters relating to the General Meeting of Shareholdersʼ resolution concerning director
compensation and other remuneration

Meeting on June 28, 2016, the 112th Annual General Meeting of Shareholders resolved to limit compensation and other remuneration
paid to directors (except Audit & Supervisory Committee members) to JPY 350 million per year. When the Annual General Meeting of
Shareholders in question ended, there were six directors (not counting Audit & Supervisory Committee members).
Meeting on June 26, 2019, the 115th Annual General Meeting of Shareholders resolved to pay monetary compensation rights not
greater than JPY 90 million per year to directors (except Audit & Supervisory Committee members) for use in acquiring restricted stock,
separate from the above compensation limit. (The resolution limited the total number of shares of Takuma common stock issued or
disposed for this purpose to 120,000 shares per year.) When the Annual General Meeting of Shareholders in question ended, there were
six directors (not counting Audit & Supervisory Committee members).
Meeting on June 28, 2016, the 112th Annual General Meeting of Shareholders resolved to limit compensation and remuneration paid
to directors who are members of the Audit & Supervisory Committee to JPY 72 million per year. When the Annual General Meeting of
Shareholders in question ended, there were four directors that were members of the Audit & Supervisory Committee.

2

Method for formulating policies for determining of compensation and other remuneration

Takumaʼs Policy on Executive Compensation and Other Remuneration, which was established by resolution of the Board of Directors,
codiﬁes Takumaʼs policies for determining compensation and other remuneration for directors (except Audit & Supervisory Committee
members). The policy is revised as necessary by resolution of the Board of Directors following consultation with, and consideration ofrecommendations submitted by, the Nominating & Compensation Advisory Committee.

3

Policies for determining of compensation

Takuma has adopted the following basic policies concerning the determination of compensation under the “Policy on Executive
Compensation and Other Remuneration” adopted by the Board of Directors:●Compensation should be suited to the role and responsibilities of the director in question, and it should help the company securetalented human resources.
●The compensation system should reﬂect appropriate consideration of the need to motivate directors to increase ﬁscal year
performance as well as corporate value over the medium- and long-term.
●The process used to determine compensation should exhibit transparency and objectivity so that the company can fulﬁll its obligationof accountability to shareholders and other stakeholders.

●Compensation system
Compensation for directors and executive oﬃcers consists of ﬁxed compensation, bonuses paid according to ﬁscal year performance,and stock compensation (compensation in the form of restricted stock), which is used to motivate recipients to increase medium- andlong-term corporate value.
Fixedcompensation

Fixed compensation is set depending on the role and responsibilities of each position and paid on a monthly basis.

Bonuses

Takuma has adopted a set of standards for calculating bonuses based on indicators such as ﬁscal year
performance and achievement of targets, and the Board of Directors determines whether to pay bonuses and, if so,in what amount using those standards as a guide. Bonuses are paid at predetermined times each year. As ageneral rule, bonuses are capped at a maximum of 25% of ﬁxed salary (annual amount).

Stockcompensation

Stock compensation takes the form of shares of restricted stock that are granted in advance. Monetarycompensation rights set depending on the role and responsibilities of each position are allocated at predetermined
times each year, and shares in Takuma are granted in exchange for the pay-in of those rights. As a general rule,
stock compensation is capped at a maximum of 30% of ﬁxed salary (annual amount), with the percentage
increasing with seniority of position.

Compensation for outside directors and directors who are Audit & Supervisory Committee members consists of ﬁxed compensation only.

●Procedure for determining compensation
The Nominating & Compensation Advisory Committee, whose membership consists of independent oﬃcers, representative directors,
and the oﬃcer in charge of human resources (with a majority of independent outside directors), discusses matters related tocompensation and remuneration programs, the amount or calculation standard for each directorʼs compensation and other remuneration,and other executive oﬃcersʼ compensation and other remuneration in accordance with the Policy on Executive Compensation and Other
Remuneration and reports the results to the Board of Directors. Having received that report, the Board of Directors makes ﬁnal decisions
on related matters after suﬃcient discussion while respecting the Committeeʼs report.
In determining the amounts of individual compensation packages, the suitability of those packages is veriﬁed based on factors
including the Groupʼs performance, compensation levels for executives at other companies, and employee salary levels.
Compensation for directors who are Audit & Supervisory Committee members and related issues are determined through discussion of
directors who are Audit & Supervisory Committee members, within the scope set forth by the General Meeting of Shareholders.

67●Matters related to performance-linked compensation
Because the Groupʼs business operates primarily on a build-to-order basis and because it considers consolidated ordinary proﬁt to be
the most important management indicator, consolidated order value and consolidated ordinary proﬁt serve as key performance indicators
in calculating bonuses that are based on ﬁscal year performance.
Speciﬁcally, a calculation table is used to calculate a coeﬃcient based on the consolidated ordinary proﬁt for the business year inquestion, the rate of growth relative to the average consolidated ordinary proﬁt for the most recent three years, the extent to which theconsolidated ordinary proﬁt target has been achieved, and the extent to which the consolidated order value target has been achieved.
Bonus amounts are then determined based on this coeﬃcient. (Consolidated ordinary proﬁt performance ﬁgures are calculated before
deducting executive bonuses at companies included in consolidated accounting.) Performance forecasts included in the ﬁnancial brieﬁng
announced every May are used as target values in the evaluation.

●Non-monetary compensation and remuneration
Takuma oﬀers directors stock compensation in the form of shares of restricted stock as a medium- and long-term incentive and as ameans of sharing shareholder value. Transfer is restricted for a period of 30 years from the date on which the allocation of Takuma
common stock is made, and the restriction is removed when that period ends or if the individual in question passes away, completes hisor her term, retires, or otherwise ends his or her involvement with the company before the period ends for a legitimate reason approved inadvance by the Board of Directors.

●Total amounts of compensation and other remuneration for directors

Executive category

Total compensationand other remuneration(millions of yen)

Director (except Audit &Supervisory Committee member)
Director (Audit & Supervisory
Committee member) (outside director)

Total compensation and other remuneration by type (millions of yen)
Basiccompensation

Performance-linked
compensationand other remuneration

Non-monetarycompensationand other remuneration

Number of executives
included

260

183

36

40

8

56（35）

56（35）

6（4）*Performance-linked compensation and other remuneration consists of bonuses awarded to directors (except Audit & Supervisory Committee members).
*Non-monetary compensation and other remuneration consists of shares of restricted stock granted to directors (except Audit & Supervisory Committee members).

Evaluation of the eﬀectiveness of the Board of Directors
In order to increase the eﬀectiveness of the Board of Directors, all directors participate in a questionnaire and interviews
about the bodyʼs eﬀectiveness. Those results are then analyzed, evaluated, reported to the Board by the executive in chargeof the evaluation process, and discussed by the Board.
In the FY2021 evaluation, the eﬀectiveness of the Board of Directors was analyzed and evaluated from four perspectives:
the bodyʼs composition, its operation, the responsibilities of its members, and its overall eﬀectiveness. This evaluation foundthat the Board had operated in an eﬀective and eﬃcient manner and that it was implementing ongoing initiatives to improve
its functionality and ensure its eﬀectiveness, for example by increasing the frequency of reports related to exchanges of
information with investors as part of Takumaʼs IR activities and placing discussions on strategic themes from a medium- andlong-term perspective and progress reports on the agenda for Board meetings.
Going forward, we will continue to work to improve the eﬀectiveness of the Board of Directors, for example by reviewing
topics of discussion as appropriate, with a focus on the general direction of corporate strategy.

Internal controls
Takuma has adopted a Basic Policy for Establishment of an Internal Control System in accordance with the Companies
Act. We continue to review and improve this policy in response to changing circumstances. Working towards thoroughcompliance, Takuma built a compliance promotion organization in FY2006 in order to continuously implement
enlightenment and educational activities that make corporate ethics, related laws and ordinances, and internal rules fully
understood. To control the danger of loss, we have also prepared a “Risk Management Code” that determines the person in
charge of each risk, and we set up our risk management organization according to that Code. When the unexpected occurs,
emergency headquarters are established with the company president as the director in charge of risk management, and anorganization is put in place in order to minimize and prevent further damage through prompt action.
Internal controls, constructed and evaluated in order to report on and prevent misstatements in our ﬁnancial reporting, arebased on the Financial Instruments and Exchange Act. This internal controls on ﬁnancial reporting for the Group have resulted
in reports that indicate this system has been eﬀective.
In this way, we will continue to work in the future to ensure thorough compliance while carrying out business properly andeﬃciently while also deepening risk management.

TAKUMA CSR Report 2022

68

Section 02

ESG Initiatives

Governance:: Governance Initiatives

Executive Proﬁles (As of June 24, 2022)

Directors

President and Representative Director & Chief Executive Oﬃcer

Hiroaki Nanjo

April 1982 Joined the Company
April 2009 General Manager of Environmental
Engineering Department 1, Project Center,
Engineering Group
September 2010 General Manager of Energy Engineering
Department 1, Project Center,
Engineering Group
April 2013 Executive Oﬃcer of the Company
Deputy Executive Manager of Project Center,
Engineering Group and General Manager ofEnergy Engineering Department 1

April 2014 Executive Manager of Project Center,
Engineering Group
June 2015 Director & Executive Oﬃcer of the Company
April 2016 Director & Managing Executive Oﬃcer of
the Company
Executive Manager of Engineering Groupand Executive Manager of Management
CenterApril 2018 Director & Senior Managing Executive Oﬃcer
April 2019 President and Representative Director &Chief Executive Oﬃcer (up to the present)

Director & Senior Managing Executive Oﬃcer

Tsuyohito Nishiyama

April 1985 Joined the Company
April 2012 General Manager of Project Administration
Department 1, Business Administration Division,
Corporate Marketing Group
April 2014 General Manager of Corporate Planning
Department, Corporate Planning &Administration Division
April 2015 Executive Oﬃcer of the Company
Deputy Executive Manager of Corporate
Planning & Administration Division and General
Manager of Corporate Planning Department

April 2016 Executive Manager of Corporate Planning &Administration Division
June 2016 Director & Executive Oﬃcer of the Company
April 2018 Director & Managing Executive Oﬃcer of
the Company
April 2019 Director & Senior Managing ExecutiveOﬃcer (up to the present)
Executive Manager of Corporate MarketingGroup and Executive Manager of Business
Administration Division (up to the present)

Director & Senior Managing Executive Oﬃcer

Hideki Takeguchi

April 1985 Joined the Company
April 2012 Deputy General Manager of Environmental
Engineering Department 1, Project Center,
Engineering Group
April 2014 General Manager of Environmental Engineering
Department 1, Project Center, EngineeringGroup
April 2015 Executive Oﬃcer of the Company
Deputy Executive Manager of Project Center,
Engineering Group and General Manager ofEnvironmental Engineering Department 1

April 2016 Executive Manager of Project Center,
Engineering Group
June 2016 Director & Executive Oﬃcer of the Company
April 2018 Director & Managing Executive Oﬃcer of
the Company
April 2019 Director & Senior Managing ExecutiveOﬃcer (up to the present)
Executive Manager of Engineering Groupand Executive Manager of Management
Center (up to the present)

Director & Managing Executive Oﬃcer

Koji Tanaka

April 1986 Joined the Company
April 2009 Deputy General Manager of European Operations
Department, Corporate Planning & Administration Division
August 2011 General Manager of Corporate Planning Department,
Corporate Planning & Administration Division
April 2014 General Manager of Human Resources Department,
Corporate Services Division
April 2017 Executive Oﬃcer of the Company
Executive Manager of Compliance & CSR Promotion
Division, Executive Manager of Corporate Services
Division and General Manager of Legal Aﬀairs Department

June 2017 Director & Executive Oﬃcer of the Company
April 2018 Executive Manager of Compliance & CSR
Promotion Division and Executive Manager
of Corporate Services Division
April 2021 Director & Managing Executive Oﬃcer(up to the present)
Executive Manager of Corporate Marketing Groupand International Division and Executive Manager
of Compliance & CSR Promotion Division
June 2021 Executive Manager of Corporate Marketing Groupand International Division (up to the present)

Director & Managing Executive Oﬃcer

Kunio Hamada

July 1990 Joined the Company
April 2012 Deputy General Manager of Cost Control &Project Administration Department, Management
Center, Engineering Group
June 2013 General Manager of Cost Control & Project
Administration Department, Management Center,
Engineering Group
April 2018 Executive Oﬃcer of the Company
Deputy Executive Manager of Corporate Planning &Administration Division and General Manager ofCorporate Planning Department

April 2021 Executive Manager of Corporate Planning &Administration Division (up to the present)
June 2021 Director & Executive Oﬃcer of the Company
April 2022 Director & Managing Executive Oﬃcer(up to the present)

Director & Executive Oﬃcer

Hiroshi Oishi

April 1988 Joined The Dai-Ichi Kangyo Bank, Ltd.
August 2019 Executive Oﬃcer of the Company(currently Mizuho Bank, Ltd.)
Deputy Executive Manager of Energy Plant
January 2008 Deputy General Manager of Human Resources
Division, Corporate Marketing Group
Department, Mizuho Securities Co., Ltd.
April 2021 Executive Manager of Corporate Services
January 2013 Deputy General Manager of Corporate Planning
Division (up to the present)
Department
June 2021 Director & Executive Oﬃcer of the Company
April 2013 General Manager of Securities & Trust Promotion(up to the present)
Department, Mizuho Bank, Ltd.
April 2016 General Manager of Customer Service
Department and General Manager of Management
Department, Mizuho Financial Group, Inc.

69

Mr. Hiroaki Nanjo has mainly been engaged
in the Planning Technology Division, andcurrently supervises the overall management
as Chief Executive Oﬃcer, after serving as a
Director & Senior Managing ExecutiveOﬃcer and Executive Manager of theEngineering Group. He possesses abundant
experience and knowledge regarding
operations and management of the Company.

Mr. Tsuyohito Nishiyama has mainly been
engaged in the Business Administration
Division, the Marketing Division and the
Corporate Planning & Administration
Division, and currently serves as a Senior
Managing Executive Oﬃcer and Executive
Manager of Corporate Marketing Group thatsupervises overall marketing. He possesses
abundant experience and knowledge
regarding operations and management of theCompany.

Mr. Hideki Takeguchi has mainly been
engaged in the Planning Technology
Division, and currently serves as a Director &Senior Managing Executive Oﬃcer andExecutive Manager of Engineering Group
that supervises overall engineering. He
possesses abundant experience andknowledge regarding operations andmanagement of the Company.

Mr. Koji Tanaka has mainly been engaged in
the Information Systems Division, neutral
divisions such as human resources,
Corporate Planning & Administration Divisionand the International Division, and currently
serves as Managing Executive Oﬃcer andExecutive Manager of the Corporate
Marketing Group and International Division,
which is responsible for the Companyʼsoverseas business. He possesses abundant
experience and a wide range of knowledge
regarding operations and management of theCompany.

Mr. Kunio Hamada has mainly been engaged
in the engineering division and costmanagement division, and currently serves as
Managing Executive Oﬃcer and Executive
Manager of Corporate Planning &Administration Division responsible forﬁnance and formulation and implementationof corporate plans. He possesses abundant
experience and a wide range of knowledge
regarding operations and management of theCompany.

Since joining The Dai-Ichi Kangyo Bank, Ltd.
(currently Mizuho Bank, Ltd.), Mr. Hiroshi Oishi
engaged in various operations at the bank andits group companies including deposits,money transfers, loans, currency exchange,business planning, human resources andcustomer service. At the Company, he has
engaged in product and service sales in themarketing division, and currently serves as
Executive Oﬃcer and Executive Manager ofCorporate Services Division responsible forgeneral aﬀairs and human resources. He
possesses abundant experience and a wide
range of knowledge regarding operations andmanagement of the Company.

Director (Standing Audit & Supervisory Committee Member)

Keizo Masugi

January 2001 Joined the Company
April 2014 General Manager of Accounting Department,
Corporate Planning & Administration Division
April 2016 General Manager of Corporate Planning Department,
Corporate Planning & Administration Division
April 2018 General Manager of General Aﬀairs Department andGeneral Manager of Legal Aﬀairs Department,
Corporate Services Division
April 2021 Assistant General Manager of Audit &Supervisory Committeeʼs Oﬃce
June 2021 Director (Standing Audit & Supervisory Committee Member)of the Company (up to the present)

Outside Director (Audit & Supervisory Committee Member)Tomomi Fujita

June 2019 Outside Auditor of TAIYO YUDEN CO., LTD.
October 2004 Registered as Attorney at Law(up to the present)(Osaka Bar Association)
February
2020 Vice President of Licensing Executives
Joined Kitahama Partners
Society Japan (up to the present)
January 2012 Partner of Kitahama Partners
March 2016 Left Kitahama Partners
April 2016 Founded InnoventierPartner of Innoventier (up to the present)
February 2017 Director, Licensing Executive Society Japan
April 2018 Assistant Lecturer, Kyoto University Law
School (up to the present)
June 2019 Director (Audit & Supervisory Committee Member)of the Company (up to the present)

Outside Director (Audit & Supervisory Committee Member)

Tetsuya Kaneko

April 1981 Joined The Dai-Ichi Kangyo Bank, Ltd.
(currently Mizuho Bank, Ltd.)
September 2000 Deputy General Manager of Singapore Branch,
The Dai-Ichi Kangyo Bank, Ltd.
April 2002 Deputy General Manager of Singapore Branch, Mizuho
Corporate Bank, Ltd. (currently Mizuho Bank, Ltd.)
November 2004 Associate Director of International Administration
Department, Mizuho Corporate Bank, Ltd.
April 2005 General Manager of Yokohama Sales Department,
Mizuho Corporate Bank, Ltd.
April 2008 General Manager of International Sales Promotion
Department, Mizuho Corporate Bank, Ltd.
April 2010 Deputy Director of Human Resources Management
Department, Mizuho Corporate Bank, Ltd.
July 2010 Deputy Director of Corporate Planning Department,
Mizuho Financial Group, Inc.

July 2010 Senior Executive Oﬃcer; General Manager of
Education Business Department, Mizuho
Research Institute Ltd. (seconded)
November 2010 Senior Executive Oﬃcer; General Manager of Education
Business Department, Mizuho Research Institute Ltd.
May 2011 Left Mizuho Research Institute Ltd.
June 2011 Director of KANEMATSU CORPORATION
June 2014 Managing Executive Oﬃcer of KANEMATSU CORPORATION
June 2019 Resigned from KANEMATSU CORPORATION
Standing Auditor, Yushu Building Co., Ltd.
(currently Yushu Corporation)
June 2020 Director (Audit & Supervisory Committee Member) of
the Company (up to the present)
Representative Director and President, Yushu
Corporation (up to the present)

Outside Director (Audit & Supervisory Committee Member)

Mr. Keizo Masugi has mainly been engaged
in the accounting department and Corporate
Planning & Administration Division, andserved as General Manager of GeneralAﬀairs Department and Legal Aﬀairs
Department handling shareholder response
and other general aﬀairs duties and as wellas preventive legal work and other legal
aﬀairs. He currently serves as a Standing
Audit & Supervisory Committee Member. He
possesses abundant experience and a wide
range of knowledge regarding operations andmanagement of the Company.

Ms. Tomomi Fujita is involved in managementof law ﬁrm Innoventier as Partner whileserving as Vice President of the Licensing
Executive Society Japan and AssistantLecturer of Kyoto University Law School. She
possesses abundant experience andexpertise regarding corporate law covering
intellectual property, business revitalization,
M&As, and the Companies Act. In addition toserving as Outside Director who is an Audit &Supervisory Committee Member of theCompany, she serves as an Outside Auditor
for a listed company.

Mr. Tetsuya Kaneko has served as Director
and Managing Executive Oﬃcer at the global
company KANEMATSU CORPORATION, formany years. He possesses abundant
experience and knowledge on corporate
management, and he has served as an Audit& Supervisory Board member and Audit &Supervisory Committee member at a numberof private-sector companies, including
Takuma. In addition to having extensive
experience and knowledge in the areas ofauditing and supervision, he gained extensive
knowledge on overseas business from hisabundant experience working overseas while
he was serving at The Dai-Ichi Kangyo Bank,
Ltd. (currently Mizuho Bank, Ltd.).

Seiichi Nagatsuka

July 2003 Director of Automobile Division, Manufacturing
Industries Bureau, Automobile Division, the Ministryof Economy, Trade and Industry
September 2005 Deputy Director-General for Trade Policy, Trade Policy
Bureau, the Ministry of Economy, Trade and Industry
April 1980 Joined the Ministry of International Trade and Industry
October 2007 Senior Vice President of the Japan International(currently the Ministry of Economy, Trade and Industry)
Cooperation Agency (JICA)
September 1984 Studied at graduate school of Economics, Brown
August 2009 Deputy Director-General of Manufacturing Industries
University, U.S.A. (where he earned a masterʼs degree)
Bureau, the Ministry of Economy, Trade and Industry
May 1994 Director of Trade Research Oﬃce, Trade Policy Bureau,
July 2010 Director-General, Kansai Bureau of Economy, Tradethe Ministry of International Trade and Industry
and Industry, the Ministry of Economy, Trade and(currently the Ministry of Economy, Trade and Industry)
Industry
May 1995 Ministry of Foreign Aﬀairs (seconded)
August 2011 Director-General, Commerce and Information Policy
Counselor of the Permanent Mission of Japan to the
Bureau, the Ministry of Economy, Trade and Industry
International Organizations in Geneva (with responsibility
June
2013
Retired from the Ministry of Economy, Trade andfor the WTO)
Industry
June 1998 Director of Trade Research Division, Trade Bureau, theOctober 2013 Advisor to Mitsui Sumitomo Insurance Co., Ltd.
Ministry of Economy, Trade and Industry
May 2014 Vice Chairman and Senior Managing Director of Japan
June 1999 Deputy Director of Commerce, Industry, and Labour
Automobile Manufacturers Association, Inc.
Department, Miyazaki Prefectural Government (seconded)(up to the present)
January 2001 Director of Macro Economic Aﬀairs Division, Economic
June 2022 Director (Audit & Supervisory Committee Member) of
and Industrial Policy Bureau, the Ministry of Economy,
the Company (up to the present)
Trade and Industry

Mr. Seiichi Nagatsuka has held numerous
important posts since he joined the Ministryof International Trade and Industry (currently
the Ministry of Economy, Trade and Industry),
and with experience serving at thePermanent Mission of Japan to theInternational Organizations in Geneva andthe Japan International Cooperation Agency(JICA), he is well versed in overseas
business. Mr. Nagatsuka, who currently
serves as Vice Chairman and Senior
Managing Director at the Japan Automobile
Manufacturers Association, Inc., also has
extensive experience and knowledge in theareas of industrial policy and trade policy.

Outside Director (Audit & Supervisory Committee Member)

After participating in the auditing of publicly
listed companies as a certiﬁed public
account for many years at what is now Ernst& Young ShinNihon LLC, where he later
became a partner, Mr. Masahiro Endo
became the representative of Endo Certiﬁed
Public Accountant Oﬃce in July 2007. In
December 2020, he founded Kobe Audit
Corporation, where he serves as therepresentative director, and he possesses
abundant experience and expert knowledge
on ﬁnance and accounting as well as
abundant experience and knowledge on audit
and supervision, including experience serving
as an outside Audit & Supervisory Board
member at publicly listed companies.

Masahiro Endo

October 1985 Joined Nisshin Audit Corporation(currently Ernst & Young ShinNihon LLC)
March 1989 Registered as a certiﬁed public accountant
May 1989 Registered as a licensed tax accountant
August 1997 Partner, Century Audit Corporation(currently Ernst & Young ShinNihon LLC)
June 2007 Left Century Audit Corporation
July 2007 Representative, Endo Certiﬁed Public Accountant Oﬃce (up to the present)
June 2015 Outside Auditor, Sakurajima Futo Kaisha, Ltd. (up to the present)
December 2020 Representative Director, Kobe Audit Corporation (up to the present)
June 2022 Director (Audit & Supervisory Committee Member) of the Company (up to the present)

TAKUMA CSR Report 2022

70

Section 02

ESG Initiatives

Governance:: Governance Initiatives

Directors skills matrix

Message from the newly appointed outside directors
Skill sets necessary for the Board of Directors of the Company

Name

Position at Takuma

Numberof yearsEngineering
serving asa director Corporate (technology,
quality,(as of June management
and cost
24, 2022)
management)

Hiroaki
Nanjo

President &Representative
Director

7●

Tsuyohito
Nishiyama

Director & Senior
Managing Executive
Officer

6●

HidekiTakeguchi

Director & Senior
Managing Executive
Officer

6●

Koji
TanakaDirector & Managing
Executive Officer

5

●

Kunio
HamadaDirector & Managing
Executive Officer

1●

Hiroshi
Oishi

Director & Executive
Officer1

Keizo
Masugi

Director(Audit & Supervisory
Committee Member)

1

Tomomi
FujitaOutside Director(Audit & Supervisory
Committee Member)3●

Tetsuya
KanekoOutside Director(Audit & Supervisory
Committee Member)

2●

SeiichiNagatsuka

Outside Director(Audit & Supervisory
Committee Member)

Newly
appointed

Masahiro
Endo

Outside Director(Audit & Supervisory
Committee Member)

Newly
appointed

Sales andbusinessstrategies●●

Attendance atAttendance at
Audit &
Board of
Human
Supervisory
Legal aﬀairs,
Directors
resources,
Committee
compliance,
International Finance andmeetings
talentmeetings
and risk
operations accounting
during FY2021
development,
during FY2021
managementand diversity

●

●

●

16 of 16
(100%)-

16 of 16
(100%)-

16 of 16
(100%)-

16 of 16
(100%)-

12 of 12
(100%)-●

12 of 12
(100%)-●

12 of 12
(100%)

10 of 10
(100%)●

15 of 16(94%)

11 of 12(92%)

16 of 16
(100%)

12 of 12
(100%)

Newly
appointed

Newly
appointed

Newly
appointed

Newly
appointed

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

*The above chart does not include all knowledge and experience brought to Takuma by its directors.

Executive oﬃcers (excluding those who also serve as directors)
Managing Executive Oﬃcer
Executive Manager,
Engineering Center

Managing Executive Oﬃcer
Executive Manager,
Energy Plant Division

Managing Executive Oﬃcer
Executive Manager,
Technology Center

Managing Executive Oﬃcer
Executive Manager,
Environmental Plant Division

Managing Executive Oﬃcer
Executive Manager,
Project Center

Executive Oﬃcer
Executive Manager,
Construction Center

Executive Oﬃcer
Executive Manager,
Compliance & CSR Promotion Division

Executive Oﬃcer
Deputy Executive Manager,
Engineering Center

Executive Oﬃcer
Deputy Executive Manager,
Energy Plant Division

Norito Uchiyama

Hidetoshi Tomita

Yasushi Enomoto

71

Mitsuaki Adachi

Norio Maeda

Kiyoshi Shibata

Akira Taguchi

Keiji Nakamura

Masayuki Sugita

I feel deeply honored to have been appointed to serve as an outside
director at Takuma.
While working as a public servant for more than 32 years at the
Ministry of Economy, Trade and Industry, I gained a range ofgovernmental experience, including being seconded to an overseas
diplomatic mission, local government agency, and independentadministrative agency. After retiring from the Ministry, I was involved with
programs designed to facilitate the development of the automotive
industry while serving for about eight years as a representative director ofa general incorporated association. I look forward to drawing on myexperience in the public sector and on my knowledge of corporate
support to contribute to Takumaʼs development.
Japanese industry is being called upon to respond quickly to adramatic transformation accompanying changes in the structure ofsociety, including carbon neutrality and the digital transformation. At thesame time, globalization makes it necessary to practice sophisticated risk
management to address the immediate manifestation of business risk
posed by overseas events, including the spreading COVID-19 pandemic
and the crisis in Ukraine. One might say that the business environment inwhich companies operate is rapidly becoming more challenging.
Takuma has led with meaningful businesses, for example by supplying
infrastructure that plays an essential role in addressing environmental andenergy issues, while leveraging technologies developed over many years
in keeping with its founding spirit of contributing to society throughboilers. In the future, I believe that increasing its corporate value in asustained manner as a leading company by practicing ESG managementin accordance with the Vision 2030 long-term vision is both Takumaʼsrole in society and the fulﬁllment of stakeholdersʼ expectations.
I look forward to doing my best to ensure I understand Takumaʼsbusinesses and to cooperate with other outside directors to contribute to
the companyʼs development.

Seiichi Nagatsuka

Outside Director (Audit & Supervisory Committee Member)

I am Masahiro Endo, and I am a certiﬁed public accountant who
now serves as an outside director and member of the Audit &Supervisory Committee. After being approached to serve in thisposition, I reviewed publicly available materials (ﬁnancial statements,
timely disclosures, etc.) to learn Takumaʼs stance on governance andcompliance. I was able to aﬃrm that the companyʼs governancestructures are appropriate for a company listed in the Prime Market,
allowing me to accept the appointment with peace of mind. In
addition, Takuma technologies in areas such as waste and water
treatment align closely with the SDGs with which society is grappling,and I believe that the sustained growth of Takuma itself embodies acontribution to society. As a result, I have high expectations for thecompanyʼs future.
As for what the company expects of me, the Audit & Supervisory
Committee is a group eﬀort, so the body must carry out organizational
audits in a way that draws on the expertise of each of its members. I
understand that in addition to taking advantage of my specialty as acertiﬁed public accountant, I will need to update my knowledge as an
Audit & Supervisory Committee member.
I believe that the signiﬁcance of the “outside” in “outside director”
lies in helping put in place an environment that supports appropriate
risk-taking. I look forward to working to meet the expectations ofstakeholders, particularly shareholders, by supervising operations
while oﬀering advice and leveraging that outside perspective to judge
risks accompanying the companyʼs decision-making, verify themethods by which that risk can be reduced or avoided, andcontinually ask myself whether risk-taking falls within allowable limits.

Masahiro Endo

Outside Director (Audit & Supervisory Committee Member)

TAKUMA CSR Report 2022

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Section 02

ESG Initiatives

Governance:: Governance Initiatives

Strengthening risk management

Fair business practices

Risk management structure
We consider it necessary to appropriately
address risks that could interfere with thegroupʼs achievement of its business goals sothat we can safeguard and steadily increase
our corporate value over the long-term.
Takuma follows a “Risk Management
Policy” that connects company-wide risks
and separately classiﬁes them into projectrisks related to our core business, i.e., plant
construction; DBO project risks and DBO
project operation, maintenance andmanagement risks related to our DBO
business; and potential risks, actualizedrisks, and ﬁnancial reporting risks related toother corporate business activities.
Group companies also work to develop andstrengthen approaches to risk management
through the Takuma Group Coordinating
Committee for Compliance & CSR
Promotion.

Compliance measures【Initiatives to ensure compliance with the Antimonopoly Act】
Towards ensuring permanent compliance with the Antimonopoly Act, Takuma enacted “Regulations Concerning
Management of the Pledge of Antimonopoly Act Compliance”, which provides for the submission of a written oath in regard
to observing the Antimonopoly Act. When employees interact with the sales department of a competitor, they must apply
and receive approval from the aﬃliated division or center manager in advance to ensure fair business contact.

Risk Management Policy
Basic purpose of risk management
Risk refers to all phenomena that interfere with the Groupʼs ability to achieve its
business objectives or cause losses or harm to the interests of stakeholders.
The Takuma Group practices risk management with the goal of increasing its
corporate value by working to maximize returns while minimizing the negative
impacts of risk.

【Introducing a Legislation Information Service】
Takuma has introduced a Legislation Information Service in order to gain a continuous grasp of the latest changes to laws
and ordinances.
【Utilizing the Compliance Manual】
We distribute a Compliance Manual that includes an explanation of the rules and standards of conduct as well as an FAQ
to all employees in accordance with Takuma Group Ethics Charter and Takuma Group Code of Conduct. This manual isutilized in the course of daily operations and departmental training.

Risk management action guidelines
1. The president and CEO is responsible for risk management at Takuma.
2. All oﬃcers and employees participate in risk management activities.
3. Risk management activities are carried out in accordance with applicableguidelines such as the Risk Management Code.

Compliance & CSR promotion education

4. Risk management activities are carried out in line with the Medium-Term
Management Plan and annual plan, and we work to make improvements on an
ongoing basis.

Takuma oﬀers compliance and CSR promotion education
through the Compliance & CSR Promotion Organization,
which was established in order to spread awareness ofcompliance and CSR issues among employees.
We oﬀered the following four compliance and CSR
promotion education sessions during FY2021. In February2022, we invited an outside expert instructor to give a talkfor the fourth session. We also host regular internal CSR
lectures for members of the companyʼs executive leadership.

5. When risk manifests itself, we respond by taking responsible action quickly tominimize any damage and creating provisional organizational entities asnecessary.
6. Group companies carry out risk management activities in accordance with theirown policies and plans, with support from Takuma.

Business Continuity Plan (BCP)
In addition to formulating a “BusinessContinuity Plan” based on the policies listed
to the right to ensure proper and appropriate
continuity of business operations in the eventof a large-scale disaster, pandemic, or otheremergency, Takuma conducts exercises on aregular basis.

Date

February 09, 2022

Lecturetheme

Compliance Training for the Antimonopoly Act:
Preventing Bid-rigging and Cartels

LecturerMr. Yuki Takei
Attorney at Law, Midosuji Legal Profession Corporation

Preventing Harassment
A Reading Aloud of the Compliance ManualFirst session:

1. In addition to implementing disaster-related measures to secure the safety ofcorporate oﬃcers and employees, maintain structures so as to enable continuityof business operations while minimizing damage in an emergency.

Fourth educational session

Second session: Social Media Risk
Deepening Our Understanding of ESG

2. Strive to respond to customer needs and recover from damage quickly byworking closely with suppliers and partner companies to maintain business
operations.

Basics of Security Export Controls 2021

Third session:

Fourth session: Compliance Training for the Antimonopoly
Act (lecture and video)

3. Earn the trust of numerous stakeholders, including employees, their families,
shareholders, and nearby residents, and fulﬁll social needs by maintaining
business operations.

Number ofsessions per year

4

Number of participating
49
departments

Total numberof attendees 4,660

Internal reporting system

Ensuring compliance
Compliance & CSR promotion structures

73

Board of Directors
President

Committee of Executive Oﬃcers

Compliance & CSR Promotion Organization
Chairman(Executive Manager of the Compliance & CSR Promotion Division)

Divisions and Centers
Compliance & CSR Promotion
Administrator (division or center manager)
Department

Compliance & CSR Promoters (department manager)
Enlightenment/education
Staﬀ members
Compliance & CSR promotion structure

Takuma Group

Secretariat (CSR Department)

Coordinating Committee for Compliance & CSR Promotion

Takuma established the Compliance & CSR Promotion Organization to
spread awareness of compliance and CSR issues among employees.
This organization is composed of a chairman (the Executive Manager of
the Compliance & CSR Promotion Division), a secretariat (positioned in the
CSR Department), and an executing organization in each division, center,and department. As the person in charge of promoting compliance andCSR in his or her division or center, each division or center manager isappointed as a Compliance and CSR Promotion Administrator. As persons
who implement enlightenment and education in compliance and CSR in
their respective departments, department managers are appointed as
Compliance and CSR Promoters.
The initiative includes an annual regular meeting at which Compliance &CSR Promotion Administrators discuss the state of compliance and CSR
promotion throughout the company as well as quarterly departmental
meetings at which Compliance & CSR Promoters are given training to help
them better carry out related activities in their departments.
Additionally, we established the Takuma Group Coordinating Committee
for Compliance & CSR Promotion, which brings together representatives ofgroup companies to help ensure that compliance and risk management are
implemented throughout the group.

Takuma has been operating an internal reporting systemsince FY2006, with the aim of promoting compliancemanagement by uncovering illegal or unfair acts as earlyas possible and undertaking corrective measures.
Reporting contacts are set up at our Compliance & CSR
Promotion Division and at a law oﬃce, as well as a
dedicated outside reporting company for anonymous e-mailreporting. During FY2020, the Audit & Supervisory
Committee was added as an internal contact to further
increase the eﬀectiveness of the internal reporting system.
Our “Internal Reporting Code” and “Takuma Group Code of
Conduct” further declare that no informant shall be
subjected to disadvantageous treatment simply because
he or she ﬁled a report or cooperated with an investigation.
Furthermore, in order for this system to be correctly
understood and utilized, we distribute a card to all
employees with information on the reporting contacts.

Internal reporting process

Persons seeking consultation or making reports

Response

Consultation orreportCompliance &CSR Promotion
Division

Audit &
Supervisory
Committee

Law
oﬃce

Outside reporting
company(Including via anonymous
e-mail if so desired)

Cooperation

Internal investigation departments

CSR awareness survey
We conduct an annual CSR awareness survey in order to quantitatively assess the level of compliance and CSR
awareness along with the eﬀectiveness of related promotional and educational eﬀorts. The results of this survey are used
when summarizing the activities of each ﬁscal year and in formulating the upcoming yearʼs action plan, as well as in futurecompliance and CSR promotion activities. We make active use of survey results, for example by oﬀering additional
education, particularly in areas that received lower scores than in the previous survey.

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