About the Taisei GroupThe Taisei Group has identified “Promoting the technical development to solve environmental and social issues throughopen innovation” as a key initiative in its Medium-Term Business Plan (2021–2023). As part of its strategic priorities, theGroup is strategically allocating resources to “technological development that contributes to industries anticipated to
grow from a harmonious balance between the economy and the environment” and “technological development thatoffers a competitive edge.”

P.77

Solving Sustainability Issues inSociety
Taisei Group’s Growth Strategy

Technical Development forRealizing a Sustainable Society
Sustainability Section

Securities report[Research and development]DX
1. Vision (How We Want to Be in 2030):
By 2030, we aspire to realize high-quality and efficient construction by bolstering and broadening our internal andexternal ties. Furthermore, we aim to manifest new value that positively impacts society at large, such as managing
smart city projects on both city and urban scales.

Cooperation
with external
parties

City/town

Q&M, Renewal work

Management Committee
Digital Transformation (DX) Promotion Committee
Chairperson: CDO
Secretariat: Information Planning Department, Corporate Planning Office,Digital Transformation Strategy Planning & Acceleration Section

Executive Committee

Production Process
Subcommittee (Civil
engineering,
Building constructionand Safety)

Management
Foundation
Subcommittee

Service Solutions
Subcommittee

Key Initiative: Realize a transformation in the production system and work style through DX
Core DX-Related Initiatives

DX in Production
Process

DesignIntegrated
platform
Building/
civil engineering
structureillustration by Hideki Tanaka

The Taisei Group’s DX endeavors to enhance corporate value and make a societal contribution byaddressing the challenges faced by society, clients, and employees.
SocialClients

Employees

Achieving sustainable and optimal cities
and buildings, considering various
aspects such as the natural environment
and lifestyles.

Offering consistent support to ensure
the safety and security of buildings andcivil structures.

Providing an attractive work environment
where diverse talents can thrive in“manufacturing” roles.

✓ Implementation of environmentallyfriendly construction and operations
management.

✓ Delivering extensive value tobuilding owners, tenants, and users
even post-handover.

✓ Collaborating with local governments to address sustainability
challenges and develop new projects.

✓ Establishing a continuous sales
and support framework thatmaintains a connection with clients.

✓ Utilizing “remote inspections” tosupport on-site QCDSE (Quality,
Cost, Delivery Time, Safety, andEnvironment).
✓ Enhancing management efficiency
by centralizing information acrossthe head offices, branches, andworksites through an integrated
platform.

DX in Management Foundation

Link withvarious apps

1. Construction plan
2. Estimation
3. Procurement

Board

Construction platform

Data collection

45 T A I S E I ANNUA L R EPORT 2023

In 2020, the Taisei Group established its Digital
Transformation (DX) Policy and DX Strategy in line with
the Ministry of Economy, Trade and Industry’s Digital
Governance Code. It then set up the cross-functional“Digital Transformation (DX) Promotion Committee”
and took a pioneering step in the constructionindustry by appointing a Chief Digital Officer (CDO).
The Digital Transformation (DX) Promotion
Committee is responsible for developing and planning DX promotion measures and monitoring their
execution. Subcommittees under the committee,
composed of IT managers from various departments
and external experts, work on addressing challenges.
From FY2022 onwards, the “Digital Transformation
Strategy Planning & Acceleration Section” wasinaugurated within the Corporate Planning Office
to enhance the promotional framework. This step
was aimed at bolstering the acceleration andmonitoring of various DX initiatives, facilitating
collaboration across departments, and amplifying
support for the CDO.

Planning/proposal

Digital humanresources
Data utilization

Construction platform

Data Section

3. Initiatives and Progress

How we want to
be in 2030

Construction

Governance Section

2. Promotion Structure

Technological Development

P.49

Sustainability Section

Sustainability-Related

DX in Services &Solutions

Taisei Group’s Growth Strategy

Taisei Group’s Growth Strategy

1 Building digital twins via BIM/CIM
design and construction cloud
integration.
2 Enhancement of the procurementrelated information system.
3 Streamlining and making the
production processes transparent
using advanced digital technologies.

Progress

Incremental roll-out of digital solutions to enhance productivity, safety(with methods for efficiency and manpower reduction), and quality.
⃝Also pushing forward initiatives like monitoring CO2 emissions.

Progression in sophisticated management and business operations using
data, facilitated by an “integrated platform” system that allows various
departments and worksites to extract and utilize data as required.
4 Establishment of an integrated
platform.
 ecuring digital talents and intro5 S
ducing a rotation system.

⃝Launched the integrated platform, allowing effective use of data stored acrossdifferent in-house systems.
⃝Accelerating data usage in managerial decision-making processes with the deploymentof business intelligence tools tailored for managerial metrics overview.
⃝Full-scale roll-out of DX Academia: Initiated digital literacy training tailored forexperts skilled in both digital realms and the DX operations of each division.
Plans to introduce training for all employees are also in the pipeline.
⃝Proposals to introduce digital mechanisms that bolster autonomous learning arealso on the table.

6 Monetizing the O&M domain.
7 Transitioning to a sales approachbased on timely proposals, informedby data analytics.

Launching the digital facility management (DFM) initiative, embodying theconcept of a “go-to doctor for buildings,” offering continued support
through the building’s life cycle.
⃝Developed “LifecycleOS,” a platform optimized for data utilization in smart buildings.
⃝Continual development, execution, and maintenance of digital service solutions
tailored to cater to the diverse needs of all stakeholders in the building domain.

T A I S EI A N N UA L R EPO R T 2023 46

About the Taisei Group

Taisei Group’s Growth Strategy

Sustainability Section

Taisei Group’s Growth Strategy

Governance Section

Data Section

Sustainability-Related

Civil
Engineering

4. Details of the Initiative
Examples of DX Items in the Construction Production Process

Ensure quality and enhance productivity andsafety with applications that feature the
T-iDigital® Field, a worksite management
system that utilizes data.

T-iCraft®: A Coordinated Control System forConstruction Machinery. Introduced at dam
construction sites, it emphasizes the expansionof unmanned and labor-saving operations.

As a platform for civil engineering DX, it’s deployed in approximately 30 different
construction projects.

The T-iCraft system controls the coordinated operation of various
types and models of construction machinery, integrating different
control systems and multiple units of autonomous construction
equipment. By coordinating operations with the T-iROBO seriesof construction machinery, a notable enhancement in productivity has been achieved. In 2022, it was utilized during theconstruction of the Namma Dam’s primary structure.

⃝Construction Management: T-Basis X, T-iDigital® Field

Under Construction⃝CO2 Emissions Measurement and Tabulation System⃝T-CIM®/Tunnel

Under Construction⃝T-CIM®/DAM⃝T-iMonitor® Tunnel⃝Construction Machine Automatic Control: T-iCraft®

After Construction⃝Robot Integrated Control Plat-⃝T-CIM®/Earthform: RoboHUB⃝T-iROBO®

⃝Smart Building Data Utilization

DX in Production Process

For the Entire Construction Site:

T-iROBO® Breaker

T-iROBO® Excavator

T-iROBO® Crawler Carrier

T-iROBO® Rigid Dump

T-iROBO® Roller

Platform: LifeCycleOS

Platform Coordinated Automatic
Construction Machines

T-iROBO® Bulldozer⃝T-CIM®/Bridge

HOG System

Autonomous Vibratory Roller

Under Construction⃝T-iROBO®
⃝T-iRemote Inspection⃝T-CIM®/Marine⃝BIM Utilization

Data collection and analysis from the commencement ofconstruction to its completion within the site have been madeeasier, with the deployment of remote-controlled robots.
Collaboration with
DX at construction sites
systems like theTracking
GNSS
progresssatellite
T-iRemote Inspection
Remotemonitoring positioning
is expected to further
Monitoring of vital signs
optimize construction
Safety monitoring
progress andAutonomous Inspection
Environmental
enhance manageData
Autonomous
xR-basedment efficiency.
transportation of
construction
management

materials andequipment

Use of CCUS data

System for measuring andtallying CO2 emissions)

RVSTA“T-CARBON Watch”

Electronic Manifest Service“e-reverse.com”
Construction Site Management
Service “Buildee”

Prokno vision
w-h ofow

Wi-Fi environment

Collaboration
Location tracking

Construction Site Digital
Transformation Standard Platform

T-BasisX

Visible systems
leveraging IoT

Verification in new
development services atconstruction sites

Value Proposition✓ Effortless and comprehensive deployment of internet
infrastructure, fundamental for digital technology
applications in the field.
✓ Operational automation and labor saving on-site via realtime data collection sensor and robot deployment.

Value Proposition

Initiated the development of a CO2 emission
measurement and management service forconstruction sites, aiming for widespread
adoption in the construction industry.
A dedicated CO2 emission measurement and collection
system has been developed for construction sites. Leveraging
image recognition and other technologies, this system automates the tracking of CO2 emissions. Moving forward, ourobjective is to minimize user inconvenience, ensuring thesystem is user-friendly and aiming for its widespread adoption
within the construction industry.

Service
introduction

Use of on-site dataservice know-how

Development of a newservice for measuring andmanaging CO2 emissions)

Evaluation

operation of various
types of automaticconstruction machines.

✓ Assist in the quality, cost, delivery time, safety, and environment(QCDSE) management of construction, enhancing productivity
and safety while contributing to CO2 reduction.
✓B y collecting and formalizing data from various types of construction,
we aim to preserve technical expertise and further the automation of
construction management and processes through AI.

● Achieving PF with a highdegree of freedom inapplicable construction
equipment.

● The HOG system can beused to coordinate withmanned construction
equipment.

Value Proposition✓ Boosting productivity and quality via the collaborative efforts ofhumans, construction machinery, and robots.
✓ Amplifying on-site safety through unmanned construction
methodologies

LifeCycleOS: A data utilization platform for smart buildings.
Supporting the transition to advanced facility management grounded in data.
DX in the Service Solution

Building
Construction

The T-BasisX is a DX standard platform
integrating the Wi-Fi environment with AI &IoT. It seeks to transform production
processes by enhancing collaborations withvarious DX systems.

DX in Production Process⃝T-Tsunami Viewer

47 T A I S E I ANNUA L R EPORT 2023

● Controls the coordinated⃝T-Pile Recorder⃝T-iAlert® River

LifeCycleOS aggregates data from facilities, users, energy, and more, enabling data utilization and analysis. As of July 2023, thesystem is implemented at Taisei Advanced Center of Technology, Kansai Branch, Yokohama Branch, and Kawagoe Factory of
Taisei U-LEC Co., Ltd. In conjunction with solution services tailored for each application, we aim to deliver digital facility
management “DFM” that aspires to be an “ever-evolving smart building.”
BM Business Digitization App

Energy infrastructure

Building data platform as abasis for building data
CamerasRobots

Display & Smartphones
Notifications

BEMS

Data
Building Digital Twin

② Sustainably

Accumulation ofenvironmental,
energy and humanflow data

Controlevolving

Various lighting and otherequipment and sensors

Building life cycle

Building users

Doorsconnectableuser-friendly

Robot Integrated Control

APIcoordination① Flexibly and easily③ Human-centric andEnergy Management/Visualization

PC

Instruction

Building owners

Environmental analysis,Autonomous instruction
Building/City

Building managers

One-stop support for
design, construction,
operation andimprovement

Maintaining asset value,
Consultation and proposals
for realizing the SDGs

TAISEI

External sales ofthis system

Value Proposition
Value Proposition✓S ignificantly reduces manual data entry by automating thecapture of various metrics like construction machinery andvehicle numbers, fuel consumption, etc.

✓ Delivering diverse value to all stakeholders during the facility’s operational phase:・For clients: Enhancing facility asset value
・For managers: Cutting down on maintenance expenses and energy usage, aiding in the transition to carbon neutrality
・For users: Ensuring safety and comfort, boosting convenience

T A I S EI A N N UA L R EPO R T 2023 48

About the Taisei Group

Taisei Group’s Growth Strategy Topic 1 Solving Sustainability Issues inTaisei Group’s Growth Strategy

Sustainability Section

Governance Section

Data Section

Society

Taisei Group’s Solution Technology
The Taisei Group has developed numerous solution technologies over the years that have contributed toaddressing various societal challenges.

This page provides an overview of some of these technologies. In the PDF version, each item links to a release on our company website for more details. (Japanese only)

Decarbonized Society⃝LifeCycleOS: Integrated management of BIM and building operation data.
⃝LCMC: Building lifecycle management service via subscription.

ZEB and Supporting Technologies⃝T-ZCB (Zero Carbon Building): Launching the construction of the next-generation technology research center aiming for the
first zero carbon building in Japan.
⃝Green Renewal® ZEB transformation for three facilities owned by the Group.
⃝ZEF: Evaluate energy balance across the entire plant (excluding production facilities).
⃝Acquisition of ZEB Oriented Certification for large commercial establishments.
⃝Demonstration project for a Renewed ZEB model aimed at constructing a “Regional Circular and Ecological Sphere”: Selected for the Ministryof Environment’s “FY2022 Regional Co-creation and Sector-crossing Carbon Neutral Technology Development and Demonstration Project.”⃝T-Green® Multi Solar: Multi-functional solar power system integrated with glass railings for balconies.
⃝Efforts for a model project showcasing renewable energy visibility at Tokyo Metropolitan Government-owned facilities using
T-Green® Multi Solar.

Enhancing Production Efficiency⃝RoboHUB: Integrated platform connecting robots to building facilities.
⃝T-GreenVegeunit: Radiant plant cultivation unit enhancing indoor plant quality and efficiency.
⃝SLAM autonomous driving for lunar conditions: Chosen for the “Unmanned Space Construction Innovative Technology Development Project” by the Ministry of Land, Infrastructure,
Transport, and Tourism.

Pursuit of Comfort & Emotional Enrichment⃝T-Optimus® Noise: AI-driven optimal noise reduction system for machinery.
⃝T-Optimus® TMD: AI-driven floor vibration-damping device design system.
⃝T-Optimus® Control System: Optimal HVAC control for clean rooms.
⃝T-Clean Skylight: Blue sky lighting solution for clean rooms.
⃝T-Silent® Wind Noise: Component to reduce wind-induced vibrations.
⃝T-Silent® CFRP Frame: Vibration-dampening and soundproofing structural frame.
⃝Indoor positioning system: Uses building’s magnetic field distribution to enhance user convenience and safety.

Promotion of Clean Energy

Improving Construction Safety

S X

Recycling-Oriented
Society

Promoting the Circular Economy⃝Zero-Water Building: Technology demonstration in the Human and Space Lab (ZEB Demonstration Building).
⃝Construction byproduct patrol and collection system⃝Zero Carbon Steel Initiative: Efforts towards decarbonizing steel and recycling resources.

Promoting Sustainable Timber Use⃝Saitama Forest Creation Agreement: Afforestation in areas where timber for building is sourced.
⃝Semi-fire-resistant steel column members that are fire-resistant coated only with wood⃝Wood-related technologies: T-WOOD® TAIKA, Flame-Resistant Wood Coating, T-WOOD® Silent Wall.

Environmental Regeneration Technology⃝T-SoilReme HeatBio: Ground heating microbial purification
technology.
⃝T-Quick Dorai: Material that rapidly absorbs soil moisture.

⃝T-SoilReme-Biobarrier: Prevention of VOC-contaminatedgroundwater spread.
⃝High activity photocatalyst: Rapid decomposition and removalof airborne chemicals.

⃝Remote Safety Management Application KIZUKIAI: Monitor, verify, and enhance safety atconstruction sites from distant locations.
⃝T-iSafety® Truck: An AI-driven system to prevent collisions between vehicles and workers.
⃝Tunnel face-related technology: T-KIRIHA VR, TN-Monitor®, T-Quick Shot, T-iROBO®
Remote Shotcreting.
⃝T-iAlert® River: Enhancement of the flood warning system for river construction projects.
Uses AI to predict river levels 24 hours in advance.

Improving Safety for Building Users⃝TASS Rack®-Pallet: A simplified earthquake isolation system designed specificallyfor flat pallets.
⃝T-Flexible Cleanroom Membrane: Cleanroom system using fabric ducts.
⃝Hot exhaust gas diffusion prediction technology.

Co-creation and Coexistence of Eco and Community⃝Comprehensive collaboration for boosting tourism and strengthening disaster resilience(Unzen-shi, Nagasaki).
⃝Comprehensive partnership agreement to promote the creation of attractive communities(Okazaki-shi, Aichi).
⃝Vortex City: A town designed for innovative resource recycling (Kamakura-shi, Kanagawa).
⃝Comprehensive collaboration towards achieving carbon neutrality (Muroran-shi, Hokkaido).

Enhancing Biodiversity⃝T-GI Rain Garden: A technology that utilizes planting base materials that both absorb andretain rainwater, facilitating the landscaping creation.
⃝Monitoring the aquatic presence of rare amphibians using environmental DNA analysis
technology.
⃝Development of a new conservation method for the rare Kinran orchid.
⃝Mizube Concierge: A conservation planning tool for rare flora and fauna.
⃝Ikimono Concierge: A simplified tool for assessing biodiversity.
⃝Mori Concierge: A planning tool for designing green spaces with consideration to local character.

P.69 Sustainability Section

Taisei Group’s ZEB

Learn more about Green Renewal ZEB andZEF initiatives here.

49 T A I S E I ANNUA L R EPORT 2023

Technology & Solutions(Japanese only)
The solution technology of the TaiseiGroup is described in detail on thewebsite “Technology & Solutions.”

Regional
NatureCooperation Co-ExistingSociety⃝T-CARBON® Navios: CO2 emission prediction system during material manufacturing and construction stages.
⃝Efforts towards Zero Carbon Construction, aiming for near-zero CO2 emissions during construction.
⃝T-CARBON® E-Site: Real-time monitoring and recording of CO2 emissions derived from electricity.
⃝T-CARBON® SoilReme: A method to compute and display CO2 emissions based on soil purification
techniques.
⃝T-Carbon® Mixing: Technique to spray and bind CO2 during concrete mixing.
⃝Application of “T-eConcrete®/Carbon-Recycle” to client structures.
⃝Collaboration with ITOCHU Corporation and Mineral Carbonation International for the implementation of T-eConcrete®.
⃝Technical certification secured for the “T-EAGLE® Piling Method” that utilizes T-eConcrete®.
⃝Worksite demonstration of “Carbon-Recycled Concrete Reinforcement Blocks.”⃝Development of environmentally friendly concrete suitable for 3D printing in construction.
⃝Utilization of the Green Innovation Fund: Production of synthetic limestone
for cement through carbonation techniques.

Safety and Disaster
Prevention⃝Solar power plant: Began commercial operations in Watarai-cho, Mie.
⃝Biomass power plant exclusively using wood: Initiation of development in Ishikari, Hokkaido.
⃝Demonstration project initiated for building a hydrogen supply chain in Muroran, Hokkaido.
⃝Basic agreement concluded on decarbonizing construction material plants using P2G (Power-to-Gas) system in Yamanashi.
⃝Development and demonstration of a power supply system capable of storing and utilizing renewable energy.
⃝Achieved to create microalgae that produce “oil,” a fuel substance, outside the cells, contributing to the broader
adoption of algae-based biofuels.
⃝T-iPower Road: A wireless power transmission road that can be installed on highways.

CO2 Reduction in Material and Construction Phases

Productivity & Comfort

Digitizing Facility Management

TAISEI Green Target (Japanese only)
We have created the TAISEI Green Target (FY2023 edition)
environmental pamphlet, which summarizes our various
initiatives aimed at solving our client’s environmental problems.

T A I S EI A N N UA L R EPO R T 2023 50

About the Taisei Group

Taisei Group’s Growth Strategy Topic 2 Management of Human Capital

Approach to Human Resources and Human Capitalpromote diversity and inclusion to create an attractive working environment. By fully leveraging the abilities of our diverse workforce
and by establishing working styles and environments where every employee can excel while experiencing job satisfaction andease of work, we aim to improve productivity and, thereby, enhance corporate value.

TAISEI VISION
2030

The most valuable management asset of theTaisei Group is its “people.”

To realize the envisioned
goals: To achieve a working
environment that prioritizes
job satisfaction and easeof work

Until 2026

To increase
corporate value
To enhance
productivity

To intensively address HR
challenges to achieve
TAISEI VISION 2030

To evaluate and implement compensationand HR systems that are aligned withroles, responsibilities, and performance.

[Personnel policy]
Basic policy Personnel Policy that Contributes to the Creation of Corporate Value and Sustainable GrowthConcept of the organization to be aimed atConcept of human capital to be aimed at

Organization with high engagement focusing on
job satisfaction and ease of work

Professionals with cheerfulness, enthusiasm, integrity,and discipline as a business person

IX
IX

Growing pressure for industry
restructuring

SX
SX

Moving towards addressing
environmental and social
challenges through businessDX
DX

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

▍“Wellness-Oriented” Training Centers

We have integrated biophilic design elements into our training
spaces to create an environment that not only lowers stress but
also enhances focus and well-being through interaction withnatural elements.

We have implemented online and on-demand training modules
that can be accessed at the convenience of the employees.

▍Promotion of Action Learning

We are focused on translating classroom learning into actionableinsights in the workplace. Through a cycle of experiential learningthat includes experience, introspection, conceptualization, andapplication, we aim to convert acquired knowledge into meaningful
behavioral changes.
Training

Workplace

Training

Workplace

Classroom: “T-Light Blinds” for natural indoor lighting
Common conversation space: Designed with wood and plants

Training

Awareness andaction plans

Practice

Review andlearning

Practice

Review andlearning

Practice

Introspection

Practice

Introspection

Experience

Conceptualization

Experience

Conceptualization▍Development of Digital Human Capital through DX
Academia
DX Academia is a systematized form of digital education thataims to develop human capital who uses digital technologies anddata to improve productivity and create new value. We will
provide a comprehensive learning environment for purposes
ranging from improving the literacy of all employees to developing
human capital who promotes DX.

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

▍Executive-Employee Interviews

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

▍Meister System

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

[Medium- to long-term personnel issues]
Recruitment and devel- ▪To strengthen the recruitment of talent in civil engineering and building construction▪To recruit human capital and build new HR systems to facilitate expansion
opment of human
into new business areas
capital▪To enhance development of human capital
Diversity, equity, andinclusion▪To create an environment where talent with diverse perspectives
can thrive

Workstyle reform▪To promote flexible work arrangements tailored to the uniqueconstraints on work location and hours in the constructionindustry

Job Satisfaction

Ease of Work▍To Strengthen Recruitment of Diverse Human Capital• To enhance the recruitment of professionals and talents in new
domains, in addition to maintaining a stable workforce in existing areas(Year-round recruitment, promotion of reemployment for early
retirees through “Job Return”)▍To Embed Diversity, Equity & Inclusion• To develop flexible work environments that allow diverse humancapital like female, elderly employees and non-Japanese employees
to excel as they navigate through different life stages.
▍Realization of Workstyle Reform• To implement flexible workstyles tailored to the unique needs ofthe construction industry (staggered work hours, flextime forchildcare, visibility of work hours through a monitoring system).
▍Advancement of Health Management• To continue to offer preventive measures and information to
improve both mental and physical well-being. This includes thepromotion of Femtech, subsidizing gynecological cancer
screening costs, expanding infertility treatment support, preconception care, and mental health initiatives.
▍Support for Life Planning• To continue to offer seminars on asset building and planning for asecond life phase.

▍Development and Strategic Placement of Talent• To maximize abilities and growth through the establishment ofcomprehensive training programs and strategic placement▍To Enhance Personnel Assessments to Increase Motivation
and Job Satisfaction• To clarify individual employee goals based on the TAISEI VISION 2030,
and strengthen reward mechanisms for high-performing employees• To award recognition to employees and business locations within
the Taisei Group that have contributed to the realization of the
TAISEI VISION 2030.

51 T A I S E I ANNUA L R EPORT 2023

Data Section▍Support for Professional Certification
To expand the mid-career recruitmentof talents in digital transformation (DX)and other diverse fields, while evaluating and implementing plans for theircompensation and benefits.

To Promote initiatives thatemphasize an attractive
working environment, as
well as diversity andinclusion[Medium- to long-term external environmentand structural changes]

Governance Section▍To Boost Productivity through Online and On-Demand Training

Realization of a Working Environment Emphasizing Job
Satisfaction and Ease of Work

Until 2023
The Medium-TermBusiness Plan

Sustainability Section

Initiatives to Develop Human Capital

In line with the TAISEI VISION 2030, which represents the Taisei Group’s medium- to long-term vision, one of our key priorities is to

We aim to recruit and develop diverse human capital,
and to establish comfortable working environments, HR
systems, and compensation plans that are responsive tothe evolving needs of the times and enable employees
to fully utilize their abilities.

Taisei Group’s Growth Strategy+

P.45 Taisei Group’s Growth Strategy
DX

Column 1

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

Column 2

Promotion of Understanding of SDGs

Improvement of Sustainability Literacy

In June 2023, we held a workshop for employees of Taisei

We published the TAISEI Sustainability Handbook in August2022 to share the awareness of sustainability as a fundamental
part of our corporate activities among all Group officers andemployees and lead it to their own action. Based on that, executives from the Sustainability Division (Integrated) visited more than
30 divisions, branches, and group companies individually, andheld the Sustainability Management Briefing twice.
The first briefing session (September and October 2022)
focused on basic approaches to sustainability and social trends,
and the second briefing session (February and March 2023)
provided explanations and opinion exchanges focusing on
specific initiatives implemented by executives and employees.
The TAISEI Sustainability Handbook will be revised
accordingly and will continue to be used for induction training
after this fiscal year.

Corporation to experience “The Action!— SDGs Card
Game”—developed by SOMPO JAPAN Insurance Inc. It is agame in which all participants are divided into teams to start,
in a setting where they live in the same area, use cards(time, money, projects) they receive, and work together toachieve SDGs that theteams set.
They deepened theirunderstanding of SDGs
and learned that it was
important for eachindividual to take action.

T A I S EI A N N UA L R EPO R T 2023 52

About the Taisei Group

Taisei Group’s Growth Strategy Topic 2 Management of Human Capital

Sustainability Section

Taisei Group’s Growth Strategy

Governance Section

Data Section

Advancing Diversity, Equity, and Inclusion

Promotion of Health and Productivity Management

To fulfill the Taisei Group Philosophy of “to create a vibrant environment for all members of society,” it is essential to first establish a

Taisei Corporation acknowledges that the well-being of its employees is not only essential for cultivating a vibrant work environ-work environment where every employee can flourish. In 2006, ahead of other companies, we initiated diversity promotion mea-

ment but also for ensuring the happiness and welfare of both the employees and their families. With this understanding, wesures with an eye towards the challenges of a declining population and the need for new value creation. Through ongoing evalua-provide comprehensive support for the physical and mental health of our staff. Specifically, we emphasize post-health checkup

tion and adaptation of these initiatives, our focus on diversity has evolved into a broader commitment to diversity, equity, andinterventions and personalized consultations based on the levels of physical and mental fatigue, with the aim of reducing

inclusion, with an enhanced emphasis on “job satisfaction” and “ease of work.” Moreover, recognizing the male-dominated nature

health-related issues. Moreover, we have introduced an educational pension benefit system that provides educational supportof the construction industry, we are placing special emphasis on strategies that actively “engage men” in these efforts.

for families in the event that an employee becomes unable to work due to death, injury, or illness and has to retire.
For mental well-being, we have established an Employee Assistance Program (EAP) consultation room, where employees
can easily seek advice. We offer consultation services, including face-to-face meetings with external counselors as well as▍“100% Male Childcare Leave Adoption”—

A Continuous Effort since FY2017

Medium- to Long-Term Goals

To ensure that everyone feels secure in taking leave, we havemade the days off paid, sent encouraging emails to target
employees and their supervisors, and showcased examples of
those who have taken leave. As of March 2023, more than 1,550
employees have benefited from this, translating to one in five male
employees. We are committed to enhancing this environment
further to allow leaves of over 14 days for all.

phone and email consultations that are available to both employees and their families. Especially for our younger staff, weregularly administer health awareness surveys and encourage consultations with counselors if they are experiencing stress or[Recruitment]
01	Percentage of female employees in the recruitment of
new graduates: At least 25% by 2024 and at least
30% by 2030
22% in FY2023 (21% in FY2022).

anxiety. Moving forward, we will continue to advance our health management initiatives, focusing on engaging with younger
employees, raising awareness of mental health, and providing support to balance medical treatments with work commitments.

Improvement of Employee Engagement[Women’s participation and advancement in theworkplace]▍“Leadership Training for Male Managers”—

Transitioning from D&I to DEIB

02	More than 10 times more female managers by FY2025
than the level in FY2015
The number increased eight times from 39 in FY2015 to
314 in FY2022. (The target for FY2023 is 330)03	Percentage of female engineers: At least 15% by 2030
809 employees or 10.6% in FY2022 (767 or 10.2% in
FY2021) Of these, the number of female employees
working at our worksites increased from 110 in FY2015 to
170 in FY2022.

For everyone to fully utilize their unique attributes (D: Diversity)and thrive, it is essential to establish a psychologically safe
workplace that embodies fairness (E: Equity), acceptance andrespect (I: Inclusion), and a sense of belonging (B: Belonging).
Primarily aimed at male managers, our training focuses onbuilding awareness and introducing management practices that
contribute to such an environment.
▍“Support for Balancing Childcare with Career”—Creatinga Space for Couples to Strategically Plan Together[Childcare support for males]

Mutual understanding and cooperation are essential for bothpartners to be able to raise children and have fulfilling careers. In
order to achieve this, we conduct "Seminars Joined by Both
Partners for Achieving Work and Life Balance" to support thecreation of a support system that avoids losing opportunities for
growth at work, such as reviewing the division of daily childcare
and housework, and sharing a medium- to long-term career
vision, including the meaning of work.

04 Rate of taking childcare leave by males: 100%
We have achieved 100% continuously since FY2017.
05 The average number of childcare leave days taken bymales: At least 14 days
11.6 days in FY2022

To achieve the goals of TAISEI VISION 2030, further enhancement in productivity is essential. We believe that it is crucial for eachindividual employee to maintain high levels of engagement, built upon a foundation of psychological safety in the workplace.
In FY2022, we conducted an engagement survey using Motivation Cloud, a service provided by Link and Motivation Inc., targeting
employees of Taisei Corporation and its major Group companies. Based on the issues
identified, we have been implementing incremental improvements. We have alsoestablished the TAISEI Next-Generation VISION Proposal Working Group to consider
immediate challenges, their solutions, and strategic actions for the medium–to–long-term.
Starting from FY2023, we plan to increase the frequency of engagement surveys
to twice a year. We will periodically monitor improvements and integrate the findings
into various management initiatives, aiming for a continuous improvement in engagement scores.

TAISEI Next-Generation VISION Proposal
Working GroupA scene in a meeting
Materiality⑦

P.81 Realization of an attractive working

Taisei Corporation’s initiatives for DE&I
● Initiatives involving males● Numerical targets

Decision on
promotion ofdiversity

Establishmentof dedicatedorganizations

2006

2007

2008

environment that is good to work in● Other measures

2009

Measures to prevent
retirement due tonursing care

Work-Life
Balance
SupportSeminar for
Couples

2010

2012

A survey is conducted on the attitudes of males and females towards thepromotion of women’s participation and advancement in the workplace
We recognize that “nursing care” initiatives are
effective in raising awareness of work-lifebalance among males as well as females

Initiating specific measures

2

In order to promote women’s participation andadvancement in the workplace, organizations
where male employees account for 80% must
establish accessible systems and environments,
as well as change males themselves.

53 T A I S E I ANNUA L R EPORT 2023

8

Setting targetsof the number
Male manager
of femaletraining
managers

2013

2014

2015

of takingchildcareleave bymales

Over 1,550(20%, one in five males)*T he average number of days taken increased as
employees taking leave increased (FY2022): 11.6 days

• To address unconscious bias
• To learn how to build anorganization to ensure
psychological safety

To focus on
initiatives
involving males

Sustainability Section

Filling the gender
gap
Equity (fairness,equality)

Females’ healthchallenges
Settingtargets of Infertility treatfemale hires ment support

2021

2022

2016

① Supervisor (male manager)
training

To increase people in leadershiproles❶ To increase female employees in
key positions❷ To expand the scope of work o support for capacity development❸T❹T o support for continued
employment❺ To reform corporate culture(awareness)

Setting targetsof the numberof femaleengineers

Keeping a 100% rate of taking childcare
since FY2017
Setting targets leave* Total number of male employees taking childcare leave:② Outreach to families• To gain the understanding andcooperation of spouses for worklife balance• To support the creation of a system
for sharing roles within thehousehold③ Childcare support for males• To gain the understanding andcooperation for employees
balancing work with life
• To promote male employees’ 100%rate of taking childcare leave④ Prevention of retirement due tonursing care
• To gain the understanding andcooperation for employees
balancing work with life
• To establish systems and environments where employees can use
easily with a wide variety of options

T A I S EI A N N UA L R EPO R T 2023 54

About the Taisei Group

Taisei Group’s Growth Strategy Topic 3 Human Rights Due Diligence

Taisei Group’s Growth Strategy

Sustainability Section

Governance Section

Data Section

Initiatives

Approach to Respecting Human Rights
The Taisei Group’s fundamental attitude towards respecting human rights is to contribute to the realization of an inclusive society
by fulfilling our corporate responsibilities voluntarily, positively, and proactively so as not to cause adverse impacts on human rights
in relation to our business activities.
Based on the recognition that respecting human rights is fundamental to sustainability management, which seeks to achieveboth social and corporate sustainability, we will play our role as a good corporate citizen by promoting human rights due diligence
initiatives and other measures to respect human rights.

❹ Assess the Effectiveness of Activities
We regularly assess the effectiveness of activities to prevent and mitigate adverse impacts andimprove them as necessary. In particular, we are focusing on the following activities for respecting
human rights in the supply chain.

Human rights issues to be addressed as priority and key responses(specialized contractors and suppliers)

In order to prevent and mitigate the adverse impact of our business activities on human rights, we have established and continue
to implement a human rights due diligence system based on the United Nations Guiding Principles on Business and Human
Rights (the Guiding Principles) and other principles. When operating the system, we review and improve it as necessary to
deepen our efforts to respect human rights.

Specialized
contractor
workers

Flow of Conducting Human Rights Due Diligence
5

1

2
6

2

1
3
4

3

Dialogue with stakeholders

1
2
3

4

4

5

5

6

6

🅟P
 riority human rights issues                  

🅓M ajor prevention and🅒 A ssessment of the effectiveness

Health and safety (occupational accidents)● Thorough safety management● Statistical violation analysis Human Rights Due Diligence Initiatives

Discrimination and harassment
Migrant labor (foreign workers)
Forced labor (overseas)

Supplier
workers

Guiding Principle 18

Migrant labor (foreign workers)

construction period, andright delivery time
Sustainable Procurement
Guidelines● Questionnaires of

employers of foreigntechnical interns● Interviews with foreigntechnical interns● Visit surveys of overseas

subcontractors and suppliersChild labor (overseas)

Identify and assess adverse impacts on human rights

questionnaire surveys
and interviews● Provision of various educa-tion and training

Forced labor (overseas)of major activities● Sustainable procurement● Order at the right price, right● Embed the Taisei Group

Working conditions (wages / long working hours)

Maintain a commitment to meet the responsibility to respecthuman rights

mitigation activities

Working conditions (wages / long working hours)

Child labor (overseas)
Guiding Principle 16

Management andAssessment ofSupply Chain
management
Risks❺ Provide Explanations and Disclose Information

Guiding Principle 19

Prevent and mitigate adverse impacts

Assess the effectiveness of activities

The status of human rights due diligence is regularly reported to the Management Committee, theSustainability Committee, and the Board, and disclosed in a timely and appropriate manner on the
Company's website.

Guiding Principle 21❻ Remediation

Guiding Principle 20

Provide explanations and disclose information

We have established various consultation contacts regarding violation of human rights, andaccept consultation from all internal and external stakeholders, including foreign workers. In theunlikely event that the Taisei Group is found to have caused or facilitated an adverse impact onhuman rights, we will promptly remedy and correct it by appropriate means in accordance with
our Human Rights Policy.

Guiding Principle 22

Remediation

Human rights
due diligence

List of humanrights due
diligence remedy
consultation
contacts❶ Maintain a Commitment to Meet the Responsibility to Respect Human Rights
In April 2022, we revised our Human Rights Policy to internally and externally clarify the Group’scommitment to fulfilling our responsibility to respect human rights, and launched human rights
due diligence initiatives.

Human Rights
Policy❷ Identify and Assess Adverse Impacts on Human Rights
Under the guidance and advice of SOMPO Risk Management Inc., an external expert, we
extracted human rights risks related to the Group’s business based on international guidance onhuman rights (the Human Rights Guidance Tool of the United Nations Environment Programme
Finance Initiative). The human rights risks identified were quantitatively analyzed and evaluatedwith respect to two aspects: “Impact on human rights (severity, number of people affected, possibility of remedy, and likelihood of occurrence)” and “connection with the Company.” Based onthem, we identified human rights issues to be addressed as priority after deliberation by the
Sustainability Committee and the Board.

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

❸ Prevent and Mitigate Adverse Impacts
With regard to the identified human rights issues to be addressed as priority, the Divisions incharge of each issue take the lead in implementing various measures to prevent and mitigate
adverse impacts.

55 T A I S E I ANNUA L R EPORT 2023

Prevention andmitigation ofadverse impacts

Discussion by CSO (left) and outside expert(lawyer OMURA) (right) regarding SDGs
and human rights

Briefing for business partners on thePhilippines North-South Commuter Railway
Project

Interview with foreign technical interns

T A I S EI A N N UA L R EPO R T 2023 56