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TAISEI official website
Top Commitment

Sustainability Management

Materiality and SDGs

ProfileInvestor Relations

Environment(E)Social(S)日本語

Governance(G)Sustainability

Annual Report (Library)

What’s New

Nov.15.2022[Green Bond] was updated.

Oct.31.2022

The Website was renewed.

Sep.30.2022[Taisei Corporation Group Sustainable Procurement

What can we help you find?

Guidelines] was revised.
News List

TAISEI VISION 2030

Top Commitment

Materiality and SDGs

Sustainability
Management
Message from Chief
Sustainability Officer (CSO)

ESG Data andComparisons

Philosophy and
Policies

TOPICS

Oct.31.2022

Sep.09.2022

FY21 Result, Taisei Group Annual Report Update

Established [T-ZCB], an evaluation system for CO2
emission reductions, and began verification testingat its own facilities.

TAISEI Environmental Social Governance Report 2022-Nov. 1

Libraryhttps://www.taisei-sx.jp/

Realization of a Sustainable and Environmentally Friendly
Society(TAISEI Green Target 2050)
For Realization of a Decarbonized Society

Environment

For Realization of a Recycling Oriented Society
For Realization of a Nature Co-Existing Society
For Realization of a Safety Secured Society
Environmental Data
Water

Respect for Human Rights
Promotion of Diversity and Inclusion
Realization of an Attractive Working
Environment That Is Good to Work in
Enhancing Employee Potential

SocialHealth Management
Thorough Management of Occupational Health and Safety
Promotion of Supply Chain Management
Ensuring Quality and Improving Technology
Cultivation of Technical Staff and Securing of Human
Resources
Technical Development for Realizing a Sustainable Society
Contribution to Local Communities
Social and Cultural Contribution activities
Social Data

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Corporate Governance

GovernanceThorough Compliance / Restructuring of the Group
Governance System
Risk Management
Social and Cultural Contribution activities
Corporate Governance Report
Governance Data

Activity Reports(ISO 26000 core subjects)

Organization GovernanceCorporate GovernanceFair Operating Practices

Thorough Compliance / Restructuring of the GroupThe Environment

Risk Management

Human Rights

Management of Information and Intellectual Property Rights

Labor Practices

Consumer Issues

Community Involvement andDevelopment

External Evaluations

Initiatives

Social(S)Top Commitment

Human Rights

Sustainability Management

Philosophy and Policies

Consumer Issues

Participation in Initiatives

Fair Operating Practices

Sustainable FinanceCommunity Involvement and Development

Governance(G)The seven core subjects of ISO 26000

Environment(E)ESG Data and Comparisons
ESG Data

Corporate Governance

GRI Standards Comparison Chart

Organization Governance

ISO26000 Comparison Table

Fair Operating Practices

Information Disclosure Based on TCFD

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

Initiatives/Sustainable Finance
External Evaluations

Materiality and SDGs

Library

External Evaluations/Participation inLabor Practices
Message from Chief Sustainability Officer (CSO)
Sustainability of the Taisei Group

Sustainable Finance

Recommendations

Water
Environmental Data
Independent Assurance
Information Disclosure Based on TCFD
Recommendations

TAISEI Environmental Social Governance Report 2022-Nov. 3

News List
Editorial Policy
Libraryhttps://www.taisei-sx.jp/

Top Commitment* The content of this page was originally posted on Annual Report 2022 Integrated Report

Last year, identifying the medium to long-term external environment and structural changes, the Taisei Group formulated the“Medium to Long-Term Vision: TAISEI VISION 2030, The Ever-Evolving CDE3 (cubed) Company-Construction,
Development, Engineering, Energy, Environment-A pioneering corporate group contributing to the development of a resilient
society where people can live affluent and cultural lives” based on the Taisei Group Philosophy among other things, andkicked off the “Medium-Term Business Plan (2021-2023).” The three “Xs” (transformations: IX (Industry Transformation), SX(Sustainability Transformation), and DX (Digital Transformation)) that have been identified as the medium to long-term
external environment and structural changes have been increasingly focused on over the past year, and we believe it is an
important factor that critically influences the competitive advantage and sustainable growth of the Group to address thoseissues as a pioneer.

Summary of the First Year of the Medium-Term Business
Plan

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It has been one year since the launch of the “Medium-Term Business Plan (2021-2023).” I would like to explain the
management environment surrounding the Taisei Group and an overview of the first year of the Medium-Term Business
Plan.
The Japanese economy has been on a moderate recovery path as the suppression on consumption and capital investment
due to COVID-19 eases. However, uncertainty about the future has not been eliminated due to concerns over the risk of
inflation arising from soaring raw material and energy prices globally, as well as downside risk to the global economy
resulting from Russia's invasion of Ukraine.
In the construction industry, public investment has remained firm, driven by the government's disaster prevention andmitigation measures for national resilience, as well as the demand for maintenance and renewal of deteriorating
infrastructure. Private capital investment has also been in a recovery phase, supported by increased capital investment in
anticipation of post COVID-19 pandemic and large-scale redevelopment projects in urban areas. However, it has become anurgent issue to respond to the changes in the market environment resulting from sharp rises in the costs of construction
materials and the crisis in Ukraine.
Under these circumstances, in terms of the operating results, orders received were decreased, net sales were increased,
and operating income, ordinary income, and net income attributable to owners of parent were decreased.
As addressing ourselves to environmental issues and respecting human rights are increasingly more important these days,
it is necessary to address ourselves to sustainability-related issues more strategically. Accordingly, we have centralized ourorganizational structure for sustainability management to establish “Sustainability Division (Integrated)”, and appointed Chiefof the Division to serve as Chief Sustainability Officer (CSO) to strengthen our efforts on sustainability issues and the SDGs.
We also formulated the “Taisei Group's Fundamental Policy on Sustainable Development” whose basic policy is to realize
sustainability transformation by working to resolve sustainability issues through businesses centered on the construction
business, and to contribute to the creation of a resilient society in which people can live affluent and cultural lives.
Achieving carbon neutrality by 2050 is a challenge to be addressed seriously by the construction industry as well.
The Group has set a new environmental target for 2030 to reduce CO2 emissions per unit of sales by 50% from FY2019
levels. In addition, we are making full-fledged efforts to achieve the Group's long-term environmental target of “realization ofa sustainable and environmentally friendly society.” Such efforts include the introduction of ICP (Internal Carbon Pricing), theissuance of green bonds whose use of proceeds is investment in renewable energy projects and investment in technologicaldevelopment related to decarbonization, and the participation in the “Green Transformation (GX) League Initiative” by the
Ministry of Economy, Trade and Industry.
We also recognize human rights as an important issue to be addressed throughout the value chain. We have revised our“Human Rights Policy” with the aim to commit ourselves to contributing to the realization of an inclusive society byvoluntarily, aggressively, and proactively fulfilling our corporate responsibilities to prevent negative impacts on human rightsfrom our business activities. The revised Human Rights Policy clearly states the introduction of a human rights due diligenceprocess and identifies human rights risks to be addressed with priority. We will continue our efforts to prevent and mitigate
human rights risks by implementing various measures and conducting follow-up surveys related to the prevention andmitigation of human rights risks, and reporting the results to the Board after deliberation by the Sustainability Committee.

Future Order Environment and Forecasts for FY2022
Operating Performance
The Japanese overall economy during FY2022 is expected to stay on a recovery trend as social and economic activities
normalize towards recovery from the COVID-19 pandemic and corporate earnings regains strength gradually.
However, it is assumed that the heightened uncertainty will continue due to concerns about a downward spiral stemmingfrom soaring global prices and the crisis in Ukraine. In the construction industry, private construction investment, led by
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large-scale projects in the Tokyo metropolitan area, is expected to remain at the same level as the previous fiscal year in
addition to solid public investment based on various policies. Meanwhile, we need to be careful of risk factors such as fierce
price competition and further increases in raw materials and fuel prices.
In this environment, we assume an increase in orders received during FY2022 due to a larger number of projects expectedcompared to those during FY2021. We also expect net sales to increase because our large-scale construction projects will
progress. On the other hand, operating income, etc., is expected to remain approximately at the same level as that during
FY2021, due to the fact that not all of potentially positive factors, such as the acquisition of additional work order inconstruction projects, have been incorporated while the proportion of large-scale construction projects with low profit
margins, which were ordered in a highly competitive environment, will also be increasing.

Regarding Materiality
The Group identifies and periodically reviews materiality (important issues to be addressed) in light of SDGs among otherthings, in order to clarify what social issues it should help resolve to contribute to society by using its businesscharacteristics and business model in response to demands from society. In the “Medium-Term Business Plan (2021-2023)”
we established priority policies and specific measures aimed at addressing the eight material issues.
While the details of the initiatives related to materiality are provided on other pages, I will provide an outline of the initiatives
related to natural capital, including decarbonization, and human capital here.

Initiatives Related to Natural Capital
As for our initiatives aimed at realizing a decarbonized society, we are working to reduce CO2 emissions at the operation
stage of buildings after delivery and to expand green procurement. Specifically, we are focusing on (i) the development of
ZEB (Zero Energy Building) and ZEF (net Zero Energy Factory), (ii) the promotion of green renewal
ZEB initiatives, (iii) research and development for the commercialization of environmentally friendly concrete, including
carbon-recycle concrete that fixes CO2 inside concrete, and (iv) the promotion of “T-ZCB (Zero Carbon Building)” (aiming toconduct Japan's first demonstration at the Group's facility), which will reduce CO2 emissions throughout the entire lifecycleof a building, from the procurement and construction stages to the operation stage, to net zero emissions in total. We feel allof these initiatives are attracting keen interest externally too.
As for our initiatives aimed at realizing a society coexisting with nature, we have received high praise for our practical efforts
on “development coexisting with nature” in collaboration with industry, government, academia, and the private sector. We
believe it is necessary to utilize the knowhow obtained at the Mt. Fuji Nanryo Industrial Park, which received the Minister ofthe Environment Award (sponsored by the National Institute for the Environment and Nikkan Kogyo Shimbun with thesupport of the Ministry of the Environment), to continue to promote initiatives that lead to the conservation of biodiversity.
Environment-related measures present a business opportunity to secure a competitive advantage for a company.
As the market is expected to expand in the future, we intend to focus our efforts on this area.

Initiatives Aimed at Strengthening Human Capital
For the Group, which does not have a fixed production facility, it is human resources that are the source of earnings andstrengthening human resources is an urgent matter to be addressed.
I am convinced that the company and its employees being connected through strong engagement will also lead to increased

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productivity and contribute significantly to the Group's sustainable growth and evolution. We conducted an engagement
survey for our employees during the first quarter of this fiscal year in order to first understand the current situation. We willcontinuously implement improvement measures based on the results.
In addition, with the aim of improving the morale and remuneration, and further enhancing the attractiveness of theconstruction business and the Company, we will work to improve our personnel and salary systems, enhance our humanresource development and training systems, and promote diversity and inclusion. Through these and other measures, wewill secure future human resources and improve job satisfaction, thereby strengthening the Company's competitiveness.

Mission of the Taisei GroupIn the vision of the Group, I give utmost importance to the “contributing to the development of a resilient society.”
A resilient society is a “society in which social infrastructure withstands the impact of various natural disasters/extreme
weather, pandemics, and sharp changes in the economy, etc., and maintains its flexibility and tenacity so that people canlive safe and secure lives.” I believe it is indeed the Group's mission to build better social infrastructure by combining theGroup's advanced technological capabilities and accumulated expertise to develop infrastructure, making cities resilient todisasters, provide high-quality buildings, engage in disaster recovery, and realize a sustainable and environmentally friendly
society, in order to make people's lives safe, secure, and affluent.

Closing Remarks
FY2022 will be the year in which we will accelerate our efforts to achieve our targets for FY2023, the final year of theMedium-Term Business Plan and the 150th anniversary of our foundation, while taking swift measures to address newly
emerging challenges without failing to detect changes in the business environment, such as the effects of the COVID-19
pandemic and the crisis in Ukraine.
Our founder Kihachiro OKURA chose a career as an entrepreneur with his foresight in the turbulent era, and was involved in
the establishment and management of a variety of companies including Taisei Corporation to contribute to the economic
growth of Japan. In line with the pioneer spirit of Kihachiro OKURA, who saw the era of transformations as an opportunity tomake a leap forward and took on unprecedented challenges, I will take the lead in overcoming the current highly uncertain
management environment, providing new value, satisfaction and excitement to our customers, and striving to resolve social
issues and obtain trust and credibility.
The “Taisei Group Annual Report 2022” introduces some of our efforts for the next generation. We would appreciate yourunderstanding of and support to our efforts aimed at realizing the Taisei Group Philosophy of “to create a vibrantenvironment for all members of society.”
Yoshiro AIKAWA
President and Chief Executive Officer,
Representative Director

Sustainability Dialogue（Annual Report2022）

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Sustainability Managementt

Sustainability of

Our Structure of Values andthe Taisei Group

Policies

Materiality and SDGs

Structure of Value and Policy andProviding Sustainable Value and Our

Materiality of the Taisei Group

Fundamental Policy on Sustainable

Structure of Values /Medium to Long-/Materiality Identification Process

Development /Sustainability

Term Vision: TAISEI VISION 2030

/Materiality and KPIs 2021-2023

Management Framework/Action Guidelines for Taisei Personnel(Relationship with SDGs) /Overview of/Sustainability Promotion Systemand the Taisei Group as a Whole andSustainability-Focused Management

Diagram and Various Committees

Individual Policies

and Medium-Term Business Plan

Related to Sustainability /Value

Initiatives /Talk on the SDGs

Provided to Key Stakeholders andEngagement methods /Participation in
Initiatives

Copyright TAISEI CORPORATION All Rights Reserved.

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

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

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

Copyright TAISEI CORPORATION All Rights Reserved.

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Sustainability of the Taisei Group

Structure of Value and Policy and Fundamental Policy on Sustainable Development
Sustainability Management Framework

Sustainability Promotion System Diagram

Value Provided to Key Stakeholders and Engagement methods

Initiatives

Structure of Value and Policy and Fundamental Policy on
Sustainable Development
Based on the Taisei Group Philosophy of “to create a vibrant environment for all members of society,” and the Taisei Spirit of“Active and Transparent Culture,” “Value Creation” and “Evolution of Tradition” in pursuit of the Group Philosophy, the TaiseiGroup's Fundamental Sustainability Policy is to realize sustainability transformation (SX) by working to resolve sustainability
issues through businesses centered on the construction industry, and to contribute to the development of a resilient society
where people can live affluent and cultured lives.
In resolving sustainability issues, we recognize that the efforts not only reduce risk but also lead to new opportunities forprofit, and we make proactive efforts to address them.

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Click here for detail

Sustainability Management Framework
We take a global perspective on sustainability and conduct business activities in accordance with international codes ofconduct. In conjunction with the Action Guidelines for Taisei Personnel and the Taisei Group as a Whole, the Group
promotes activities in reference to ISO 26000 (the international standard for organizational social responsibility) and GRI(the guideline for disclosure of information related to sustainability), supports the 10 principles of the United Nations Global
Compact, and develops business activities based on the Medium-Term Business Plan and materiality that incorporate theSustainable Development Goals (SDGs) as activity goals.

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Sustainability Promotion System Diagram
On April 1, 2022, Taisei Corporation newly established the Sustainability Division (Integrated), which unifies the Company's
response to sustainability issues, and appointed its Chief as Chief of Sustainability Officer (CSO) of the Group.
The Sustainability Division (Integrated) has two divisions. The Sustainability Management Promotion Division unifies
strategic functions for overall sustainability, such as CSR, in addition to resolving issues for carbon neutrality.
The Clean Energy & Environment Business Promotion Division unifies functions for promoting businesses related to clean
energy and the environment. We will accelerate our efforts to “acquire 100 MW of renewable energy in FY2030” and provide
our clients with the latest environmental technologies.
To further clarify our stance of pursuing mutual sustainability in society and in the Group, we have renamed the CSR
Committee, which was established within the Board Committees in 2004, to the Sustainability Committee. The Group will
strengthen its sustainability activities from a variety of perspectives.

Achievements of the Sustainability Committee in Fiscal 2021
In fiscal 2021, Taisei Corporation held the Sustainability Committee twice a year (in June, February).
The Sustainability Committee discussed revisions to the Taisei Group's materiality and information disclosure based on the
Task Force on Climate-Related Financial Disclosures (TCFD) recommendations.

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Main items to be discussed
Materiality, operational status of corporate ethics and helplines, verification of effectiveness, setting of key performanceindicators (KPIs), TCFD recommendations, operational status of Human Rights Due Diligence, editing policy of integrated
reports, etc.

Committee members(Octorber,2022)
Chairperson

External Member of the Board

Members

President and Chief Executive Officer, Representative Director;
Executive Vice President, Representative Director, Chief of Civil Engineering
Division;
Executive Vice President, Representative Director, Chief of Business
Administration Division;
Senior Managing Executive Officer, Members of the Board; Chief of Architecture& Engineering Division (Integrated); Chief of Building Construction Division
Two External Members of the Board, One External Audit & Supervisory Board
MemberObserver

Senior Managing Executive Officer, Chief of Sustainability Division (Integrated)
Chief of Sustainability Management Promotion Division

Secretariat

Sustainability Management Promotion Division, Sustainability Planning
Department

Various Committees
We have established various committees to discuss important issues related to sustainability, such as the Environment
Committee and the Personnel Committee. Matters to be deliberated on sustainability related policies, systems andmechanisms are regularly discussed and reported to the Management Committee and the Board.

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Value Provided to Key Stakeholders and Engagement
methods

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Click here for detail

Initiatives
Participation in Initiatives

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Philosophy and Policies

Providing Sustainable Value and Our Structure of Values

Policies

Our Structure of Values and Policies
Providing Sustainable Value and Our Structure of Values

Click here for detail

Raison D'etre of Taisei Corporation

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

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

Environment
Fundamental Policy on Sustainable Development
Environmental Policy
Environmental Targets
Declaration of Taisei Corporation on Biodiversity Preservation
Sustainable Procurement Guidelines
Green Procurement Guideline
Biodiversity Conservation Guidelines

SocialFundamental Policy on Sustainable Development
Quality Policy
Safety and Health Policy
Procurement Policy
Sustainable Procurement Guidelines
Human Rights Policy
Digital Transformation (DX) Policy*
Technology Development Policy*

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

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

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Materiality and SDGs

Materiality

Overview of Sustainability-Focused Management and Medium-Term Business Plan Initiatives

Talk on the SDGs

Materiality
Materiality of the Taisei GroupThe Taisei Group identified eight important issues (materiality) to be addressed through deliberations by the Management
Committee, the CSR Committee (currently the Sustainability Committee), and the Board. The eight material issues clearly
define solutions to social issues and value creation through business, and are mutually strengthened by complementing
each other. In addition, key performance indicators (KPIs) in line with materiality are established to make efforts visible.

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Materiality Identification Process

Materiality and KPIs 2021-2023 (Relationship with SDGs)

Click here for detail

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Overview of Sustainability-Focused Management andMedium-Term Business Plan Initiatives

Click here for detail

Talk on the SDGs
DX×SDGs Talk

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Recognizing the era in which DX critically affects competitiveness, Taisei Corporation is working on DX throughout thecompany, with keeping the reforms of production systems and workstyle as well as the development of new ways ofinteracting with society in mind.
A talk between Mr. Michiaki TANAKA, a professor at Rikkyo University's Graduate School for Business Administration, who
is known for his research on leading DX cases around the world, and Mr. Hiroki FUKASAWA, Executive Officer and Chief ofCorporate Planning Office, who serves as Chief Digital Officer (CDO) and the chairperson of the “Digital Transformation(DX) Promotion Committee”, a company-wide organization, which explores digital transformation that enables the future
Taisei Corporation to progress even more steadily.

Click here for detail

Human Rights×SDGs Talk

How can we put the concepts, SDGs and human rights due diligence, that are essential in the future global trends at theheart of the company and embrace them in a concrete manner? This is an urgent issue for the Taisei Group.
A talk between Jiro TANIYAMA, Chief of the Sustainability Division (Integrated), who was deeply involved in the formulationof the Medium-Term Business Plan (2021-2023) and pursues initiatives for the SDGs, and Ms. Emi OMURA, a lawyer withextensive knowledge on human rights issues around the world, provides an overview of the Group's initiatives and theireffectiveness, and the future vision we should aim for.

Click here for detail

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The seven core subjects of ISO 26000

Organization Governance

Human Rights

Labor Practices

Organization Governance

Respect for Human Rights

Realization of an Attractive Working

Thorough Compliance /Human Rights Due Diligence

Enhancing Employee Potential

Restructuring of the Group
Governance System

Promotion of Diversity and Inclusion

Health Management

Risk Management

Promotion of Supply Chain
Management

Thorough Management ofOccupational Health and Safety

Thorough Compliance /Risk Management

Restructuring of the Group
Governance System
For Realization of a Safety Secured
Society

Environment

Fair Operating Practices

Consumer Issues

Realization of a Sustainable andEnvironmentally Friendly
Society(TAISEI Green Target 2050)

Thorough Compliance /Restructuring of the Group
Governance System

For Realization of a DecarbonizedSociety

Risk Management

Cultivation of Technical Staff andSecuring of Human Resources

Promotion of Supply Chain
Management

Technical Development for Realizing
a Sustainable SocietyManagement of Information andIntellectual Property Rights

For Realization of a Recycling
Oriented Society

For Realization of a Recycling
Oriented Society
For Realization of a Nature CoExisting Society

Ensuring Quality and Improving
Technology

Thorough Management ofOccupational Health and Safety
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For Realization of a Safety Secured
Society
Water
Information Disclosure Based on
TCFD Recommendations

Community Involvement
and Development

Contribution to Local Communities
Social and Cultural Contribution
activities
Technical Development for Realizing
a Sustainable Society
Talk on the SDGs

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Environment(E)Realization of a
Sustainable andEnvironmentally Friendly
Realization of a Sustainable
and Environmentally Friendly

Water

+

Taisei Corporation Policy for
Action on Water Issues

Environmental Data+

Environmental Data+

Society
For Realization of a+

Decarbonized Society
For Realization of a Recycling
Oriented Society+

For Realization of a Nature CoExisting Society+

For Realization of a Safety
Secured Society+

Information Disclosure
Based on TCFD
Recommendations
Information Disclosure Basedon TCFD Recommendations

Examples ofEnvironmental Solutions+

Examples of Environmental
SolutionsSustainability finance+

Sustainability finance

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

Policies and Basic Approach
Initiatives

Goals and Targets

Sustainability Governance and OversightDisclosure of Information on Environmental Area

Supply Chain (Environment)

Data

Realization of a Sustainable and Environmentally
Friendly Society
Policies and Basic Approach
Based on the Taisei Group Philosophy of “to create a vibrant environment for all members of society,” the Taisei Group has
set environmental targets for 2050, TAISEI Green Target 2050, with the aim of realizing a sustainable, environmentallyfriendly society. In harmony with nature, the Group is working to build quality social capital through corporate activities
centered on construction. We are also participating in initiatives in Japan and overseas, such as the United Nations Global
Compact, the TNFD Forum, the Green Transformation (GX) League Initiative, and the 30 by 30 Alliance for Biodiversity, andare working together with a variety of stakeholders.
Environmental problems such as global climate change, depletion of natural resources, shortage of freshwater resources,
loss of biodiversity, and soil and groundwater pollution are becoming increasingly serious, and long-term and drastic
measures are required. Under TAISEI Green Target 2050, the Taisei Group has set forth four goals for the realization of asustainable and environmentally friendly society: a decarbonized society, a recycling oriented society, a nature co-existingSociety, and a safety secured society. The Group has set 2030 targets as milestones and is implementing a range ofmeasures.
We will continue to be a “pioneering corporate group contributing to the development of a resilient society where people canlive affluent and cultured lives” by resolving environmental and other social issues through our corporate activities.

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Goals and Targets
TAISEI Green Target 2050

Refer to:Action Guidelines for Taisei Personnel

Environmental Policy

Declaration of Taisei Corporation on Biodiversity Preservation

Initiatives

Environmental Targets

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Taisei Corporation’s Fiscal Year environmental targets are set based on the Environmental Policy and on medium- to longterm targets. Aiming to realize an environmentally friendly society, we have set out methods for implementing company-widemeasures in four areas and numerical targets thereof.

Refer to:Environmental Targets

KPIs
We have identified " Realization of a Sustainable and Environmentally Friendly Society " as a part of Materiality (Important
Tasks for the Taisei Group), and this has been established as a principal policy in the Group Medium-term Business Plan
(2021-2023).

Refer to:Materiality and KPIs

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

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Environmental Management System (EMS)
We operate an environmental management system (EMS) conforming to the international standard ISO 14001 at our head
office and all of our domestic and overseas branches (100% certification rate). The top management of EMS is theEnvironment Committee, the President, and the Chief of the Sustainability Management Promotion Division.
Under top management, EMS secretariats in each division and branch office and environmental officers in each division
promote and monitor environmental activities and implement a series of PDCA (Plan-Do-Check-Act) to be reflected in theEnvironmental Targets for the next fiscal year.
ISO14001 certification Scope:

The head office and all 13 branch offices(certified rate: 100%)
Certification registered in 1998

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Sustainability Committee (a Committee within the Board)
We have established the Sustainability Committee to discuss and promote essential policies and measures concerning
sustainability in general. It deliberates on important matters for environmental management that lead to the Environmental
Policy, Environmental Targets, and external evaluations that are presented by the Management Committee, before
submitting them to the Board.

Environment Committee (Operations Committee)
We have established the Environment Committee to promote environmental management and deliberate on important
initiatives that lead to the Environmental Policy, Environmental Targets, and external evaluations, and present reports andadvice to the Management Committee.
The Environmental Committee has established subcommittees to respond to various environmental management issues. It
promotes the handling of the matters in a way that transcends the boundaries of departments and Group companies withthe subcommittee at the construction stage to promote CO2 reduction in worksites, the subcommittee at building operation
stage to promote decarbonization technologies and services, the subcommittee to promote the introduction of renewableenergy power supply, the subcommittee to promote the development of CO2 data aggregation and the Taisei Group
Environmental Management Committee to establish Group targets and manage progress.
The Operations Committees including the Central Safety Committee and the Technology Committee are also working toresolve various environmental management issues.

TSA：TAISEI Sustainable Action®, Environmental Impact Reduction
Activities Conducted by All Employees of the Taisei GroupIn addition to the T-Carbon Watch, we have also developed the T-Carbon E-Site, a system for aggregation and analysis ofenergy usage at construction sites, and as of January 2022 we have begun introducing it in sequence at approximately 60
energy-intensive construction sites. In this system, units to transfer energy use data are installed in the power receiving
facilities, etc. at each construction site, and power usage is measured every 30 minutes (the energy use metric generally
used in power contracts) and transmitted in real time to a dedicated cloud server for aggregation.

* TAISEI Sustainable Action (TSA)
Company-wide activities to reduce environmental impact including fuel-efficient driving of heavy machinery andvehicles, use of hybrid heavy machinery and renewable energy, development of a wellness conscious greening
environment, paperless meetings, and use of LEDs for temporary lighting.

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

Initiatives

TCFD, SBT, CDP
Taisei Corporation strives to improve its environmental performance by steadily carrying out activities based on its
Environmental Policy, and by actively disclosing information through the Company's Sustainability website, the integrated
report, and other means. We strive to increase the trust of our stakeholders, and deliver value to them and create
sustainable business opportunities.
In July 2020, the Company agreed with TCFD (Task Force on Climate-Related Financial Disclosures) and decided toactively disclose information on the impact of climate change on its business activities. We also participate in environmentrelated initiatives such as the Science Based Target (SBT)
In addition, since 2006 Taisei has participated in the Carbon Disclosure Project (CDP), an NGO with an enormous databaseof environmental information on climate change measures, water, forests and so on. Beginning in FY 2022, Taisei has also
provided responses to CDP Water and CDP Forests questionnaires.

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

Keidanren (Japan Business Federation) /Nikkenren (Japan Federation of Construction
Contractors)
As a member of Keidanren, we respect the content of its Charter of Corporate Behavior and carry out activities toward the“realization of a sustainable society,” which Keidanren aims to achieve. We also participate in the Committee on
Environment and Safety, Keidanren Biodiversity Declaration Initiative, the “Challenge Zero” initiative, Global Warming

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Countermeasure Subcommittee, and Environment Management Subcommittee, which are tackling global warming
countermeasures and the formation of a recycling-based society.
We are also on the Nikkenren's taskforce for Voluntary Action Plan on the Environment in Construction Industry, and on its
Construction Byproduct Taskforce and Civil Engineering Byproduct Taskforce which contribute to the effective use ofresources. In this way, we share information and engage in collaborative initiatives with other companies, thereby
contributing to the environmental activities of the construction industry as a whole. In 2014, Nikkenren set constructionindustry CO2 reduction targets for 2030 and joined Keidanren's Phase II of the Commitment to a Low Carbon Society.
In May 2021, the Voluntary Action Plan on the Environment for the Construction Industry was revised to establish targets
that include reducing Scope 1 and 2 emissions at the construction stage to effectively zero by 2050. As a member company,
Taisei strives to achieve the targets established by the Japan Federation of Construction Contractors.

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

Eco-First

OthersTaisei is also a participant in the TNFD Forum of the Taskforce on Nature-related Financial Disclosures, the GX League
Basic Concept, and the "30 by 30 Alliance for Biodiversity" and other initiatives both at home and abroad, working with adiverse array of stakeholders.

Refer to:Initiatives

Disclosure of Information on Environmental Area

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

Taisei Zero Carbon Buildings (ZCB) and Zero Energy Buildings (ZEB)Information Disclosure
Based on TCFD

Refer to:
For Realization of a Decarbonized Society

For Realization of a Recycling Oriented Society

For Realization of a Nature Co-Existing Society

For Realization of a Safety Secured Society

Water

Supply Chain (Environment)
Policies and Basic Approach
The Taisei Group has established "Promoting partnerships with subcontractors and suppliers" in its Group Action
Guidelines. This entails clarifying mutual roles and responsibilities with subcontractors and suppliers, establishing
relationships that are fair and achieve mutual trust, and selecting subcontractors and suppliers in a rational manner througha comprehensive assessment of price, technical capabilities, financing capacity, social credibility as a company,
consideration for the environment and other factors.

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Taisei works to promote Zero Energy Buildings (ZEB) and provide other decarbonation technologies and services tocustomers. In addition, we share policies with affiliates and work with them to reduce CO2 emissions at construction
workplaces, as part of our practical initiatives aimed at decarbonizing the entire value chain. Since 2001, we haveestablished and employed Taisei Green Procurement Guidelines for the use and promotion of environmentally friendly
construction materials and techniques in the design, construction, use and decommissioning of structures. The content to beobserved by suppliers is provided in the form of Taisei Group Sustainability Guidelines (Formulated in 2014, Revised in2022).
Prior to the start of construction, all specialist construction companies sign a contract relating to Taisei's environmental
policy, the prevention of environmental accidents, and environmental preservation activities, and they work together with
Taisei toward the achievement of the Taisei Green Target 2050.

Refer to:Action Guidelines for Taisei Personnel

Environmental Policy

Taisei Group Sustainable Procurement Guidelines

Promotion of Supply Chain Management

Existing suppliers to identify those that are high risk
We summarized the activities that we want our business partners (suppliers) to promote in the form of Taisei Group
Sustainable Procurement Guidelines (established in 2014), and asked them to conduct sustainability activities based onthese Guidelines. Since 2016, we have been conducting regular questionnaire surveys for suppliers on compliance with ourTaisei Group Sustainable Procurement guidelines.
In fiscal 2020, number of Supplier Surveyed was 1,166 construction companies. And we visited a total of 12 companies tocheck the status of their efforts and to discuss future improvements with them about action taken to manage theenvironmental impact.
In FY 2022, Taisei began conducting an annual monitoring survey for suppliers regarding the status of efforts to resolve
sustainability issues (such as environmental issues relating to decarbonization, water, forests and so on) in order to identify
high-risk activities, and exchanges of views are held as needed in order to effect improvements. Taisei is also considering
introducing environmental due diligence to further intensify its efforts to prevent and mitigate environmental risks.
These measures will ensure thorough environmental risk prevention and mitigation at the Taisei Group.

Refer to:Promotion of Supply Chain Management

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Data

Supply Chain CO2 Emissions(Scope3)

FY2020Category

Unit

FY2021
Remarks(Domestic and overseas
consolidated)

1. Purchased goods and services

1,000t-

1,347

1,283

4

0

32

33

9

8

179

209

6. Business travel

1

1

7. Employee commuting

55

8. Upstream leased assets

1

0

-

-

-

-

3,371

2,284

40

51

13. Downstream leased assets

55

14. Franchises

-

-

CO2
2. Capital goods
3. Fuel-and-energy-related
activities
4. Upstream transportation anddistribution
5. Waste generated in operations

9. Downstream transportation anddistribution

10. Processing of sold products

11. Use of sold products
12. End of life treatment of soldproducts

TAISEI Environmental Social Governance Report 2022-Nov. 36

Not applicable forcalculation.
Not applicable forcalculation.

Not applicable forcalculation.

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FY2020Category

Unit

FY2021
Remarks(Domestic and overseas
consolidated)

15. Investments
Scope 3 Total

-

-

4,491

3,878

Environmental Data

Copyright TAISEI CORPORATION All Rights Reserved.

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For Realization of a Decarbonized Society

Policies and Basic Approach

TCFD

Goals and Targets

Initiatives

Achievements

Data

For Realization of a Decarbonized Society
Policies and Basic Approach
As part of its long-term environmental target, TAISEI Green Target 2050, the Taisei Group has set a 2050 target of “virtuallyzero CO2 emissions from business activities” and aims to realize a decarbonized society by widely contributing to the
reduction of CO2 emissions through transition technologies and initiatives for decarbonization. As a milestone, we have set
the Group environmental targets for fiscal 2030 to reduce CO2 emissions per unit of sales by 50% from fiscal 2019 levels inbusiness activities (Scope 1+2), 32% in business activities-related CO2 (Scope 3), 40% in business activities-related CO2(Scope 1+2), and 20% in business activities-related CO2 (Scope 3), with the aim of realizing a sustainable, environmentallyfriendly society.
To achieve these targets, Scope 1+2 is working with suppliers to reduce the environmental impact by means of TAISEI
Sustainable ActionR (TSA). In addition to measures at construction sites such as recommending the use of highly energyefficient heavy machinery and vehicles, net zero energy building (ZEB) is being implemented at temporary worksite offices.
The Group is also promoting the possession of renewable energy sources to meet its electricity consumption. Scope 3
includes the development and promotion of low-carbon building materials and the promotion of new construction ZEBs andgreen renewal ZEBs.
To realize a decarbonized society, the Taisei Group is working to reduce CO2 emissions throughout the life cycle ofbuildings, including the planning and design stages, the construction stage, and the operation stage of buildings completed
and delivered to customers.

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

Information Disclosure Based on TCFD Recommendations

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

Refer toAction Guidelines for Taisei

Environmental Policy

Medium-Term Business Plan

Goals and Targets
TAISEI Green Target 2050
2050 Targets: CO2 emissions from business activities Aim for virtually 0

TAISEI Green Target 2050

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Milestone

KPIs

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Refer to:Materiality and KPIs

Environmental Targets

Environmental Targets

Initiatives
TCFD
SBT
CDP (Climate Change)

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

Refer to:Initiatives Environmental

Achievements
Taisei Zero Carbon Buildings (ZCB) and Zero Energy Buildings (ZEB)The Taisei Group proposes solutions to environmental issues from a variety of perspectives, using various technicalcapabilities. We work with customers to build a sustainable environmentally conscious society that embodies the hopes anddreams of future generations.

Artist's depiction of Zero Carbon Building

ZEB Demonstration Building within Taisei
Technology Center

T-ZCB (Zero Carbon Building)
To promote the construction of Zero Carbon Buildings that achieve net zero CO2 emissions during the life cycle of thestructure, Taisei first visualized the CO2 emissions throughout the building's life cycle and the effectiveness of CO2 reduction
technologies at the initial planning stage, and then constructed a T-ZCB (Zero Carbon Building) as a system thatsystematically evaluates the decarbonization of the structure.

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To achieve a carbon neutral society by 2050, determining and reducing the CO2 emissions produced during a building's life
cycle (see Fig. 1) is absolutely imperative, not only for designers and construction entities but for the customers who will
own and operate the building. The T-ZCB system visualizes and assesses the CO2 emissions produced during the building's
life cycle and the effect of reductions in each phase of the building's life (procurement, construction, operation, repair anddemolition). The major technologies that contribute to reducing CO2 emissions are combined and coordinated with Taisei's
ZEB construction technologies to plan building construction in a staged manner and achieve the Zero Carbon Building.

Fig. 1 CO2 emissions throughout the life cycle of the building(circle size indicates degree of CO2 emissions in that phase)

Green Renewal ZEB
Taisei Corporation calls the promotion of the conversion of existing buildings into Zero Energy Buildings “Green Renewal.”
We are implementing initiatives to improve the health of people, buildings, and the planet.

Net Zero Energy Factory (ZEF)
Taisei Corporation defined Net Zero Energy Factory (ZEF) as a production facility aiming to reduce its required annual
primary energy balance to zero with energy conservation and generation. For ZEF, we adequately evaluate the energy*
consumed in the factory, including air conditioning, ventilation, lighting, hot water supply, and elevators in production areasof the plant, which had not been included in the ZEB assessment. By calling it “Green ZEF®,” we will promote the promotionof the application of ZEF as well as the expansion of decarbonizing activities.

The Urban ZEB
Taisei has defined an urban-style Zero Energy Building (ZEB) as a building with a stand-alone annual energy balance ofzero, even when constructed on a narrow site in an urban location and regardless of access to sunlight. In 2014, thecompany constructed a ZEB Demonstration Building on the grounds of the Taisei Technology Center in Yokohama.
Subsequently, the building was renovated to create a next-generation work environment that incorporates further
improvements to energy performance for economic considerations and office evolution in keeping with the era of healthmanagement. New technologies as well as AI and the Internet of Things (IoT) were also employed, resulting in the building's
rebirth as a "laboratory of people and space" that can verify ZEB and wellness functions simultaneously.

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Refer to:T- Green® Multi Solar (Various Technologies Supporting ZEB)

Recycling CO2 as a Resource Development of Environmentally Friendly
Concrete
Taisei Corporation has developed “T-eConcrete®/Carbon-Recycle,” a carbon-recycle concrete that can make the balance ofCO2 emissions negative. We utilize calcium carbonate produced by having CO2 recovered from factory exhaust gas, etc.
react with calcium components. We fix CO2 inside concrete by solidifying calcium carbonate with a binder mainly composedof blast furnace slag, which is an industrial by-product. By doing so, we have been able to improve issues such as the
corrosion of reinforcing rods in concrete and decrease in strength, which had been problems that arose when CO2 wasdirectly taken into concrete. As a result, it has become possible to take in a large amount of CO2 and make the CO2 balanceof concrete negative.

Building Made of Wood with CO2 Fixation Effect
The promotion of the utilization of wood contributes to control of global warming due to its carbon fixation property, andspaces made of wood are effective to keep the mind and body healthy.
Taisei Corporation has a track record that contributed to the creation of new wooden architectural traditions through thesuccession of innovations working on both traditional and modern buildings.

Refer toTOPIC Examples of Environmental Solutions

TSA：TAISEI Sustainable Action®, Environmental Impact Reduction
Activities Conducted by All Employees of the Taisei GroupThe Taisei Group is implementing TAISEI Sustainable Action® (TSA), an environmental impact-reduction initiative in which
all employees participate. In addition to the CO2 Zero Action*, which is our basic initiative that has been conducted at ourworksites since 2011, we have created the TSA Action List in which effective technologies and activities for environmental

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impact reduction are presented in 2018. In 2020, we adopted the TSA Points System to visualize and quantitatively evaluate
the impact of the initiatives and bring about a change in employees’ awareness and behavior. In addition, TSA News is
distributed quarterly to all executives and employees to promote TSA and expand specific activities horizontally.

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

Measures towards Reduction

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

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

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emissions, and wooden construction using wood that stores CO2. Moreover, to reduce CO2 emissions from buildings after
delivery, we are working on the advancement and popularization of ZEBs as a leader of ZEBs, and also working on theGreen Renewal ZEB project, which renovates existing buildings to convert them into ZEBs.
TOPIC Examples of Environmental Solutions

System Development to Promote Reduction

T-CARBON Watch / T-CARBON E-Site
We are promoting the development and operation of the T-CARBON Watch, which efficiently collects, consolidates, andvisualizes Scope 1 and 2 at worksites utilizing cameras and AI image recognition functions installed at construction sites,
external system information such as electricity consumption, electronic manifests, and in-house system information such asfuel purchases.

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

Efforts Related to Advanced Technologies to Achieve Decarbonization
Aiming to achieve carbon neutrality in 2050, we are participating in the development and verification projects of advanced
technologies that are expected to be put to practical use.

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Data

Environmental Data

Copyright TAISEI CORPORATION All Rights Reserved.

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For Realization of a Recycling Oriented Society

Policies and Basic Approach

Goals and Targets

Initiatives

Achievements

Data

For Realization of a Recycling Oriented Society
Policies and Basic Approach
As part of its long-term environmental target TAISEI Green Target 2050, the Taisei Group has set a 2050 target of 0% for the
final disposal rate of construction byproducts, and has set a fiscal 2030 target of 3.0% or less for the final disposal rate ofconstruction byproducts as a milestone toward achieving the target.
We are working to sort, recover and recycle resources based on the “Construction Byproduct Treatment Manual.” At thedesign stage, Taisei endeavors to use recycled materials and promotes the purchase of construction materials and use of
construction methods that reduce environmental load at the design, construction, operation and demolition stage forbuildings and other structures, based on the Taisei Green Procurement Guidelines.

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

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

Refer to:Action Guidelines for Taisei

Environmental Policy

Goals and Targets
TAISEI Green Target 2050
2050Targets: Aim for final disposal rate of construction by products of 0％

TAISEI Green Target 2050

Milestone
2030 Targets: Promotion of green procurement, reduction of final disposal rate of construction waste to 3.0% or less
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Environmental Targets

Environmental Targets

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

Refer to:Initiatives Environmental

Achievements

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Initiatives for the Effective Use of Resources

Promotion of Resource Recycling of Building Materials through Collection Patrol Systems
We operate a “collection patrol system” for many types of construction edge materials and valuables, including waste
plastics at our construction sites in Tokyo, and contribute to the recycling of construction resources.
We are working to recycle soil from construction sites within and across worksites.

T-eConcrete® That Utilizes Industrial Byproducts
T-eConcrete® is environmentally friendly concrete that utilizes industrial by-products, such as blast furnace slag (a byproduct of steelmaking) and fly ash (a by-product of coal-fired power plants) as cement substitutes.
It is used as a construction material for tunnel segments and natural stone-like building materials (stone-like building
materials used as secondary products of T-razzo zero cement type).
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Recycling of Water Resources
Appropriate management of construction wastewater is one of the key management items at our worksites. At all ourworksites, we check the wastewater standards stipulated by local ordinances and regulations, and strictly observe them.
At work sites equipped with storage tanks for rainwater and spring water, and sedimentation ponds, stored water is used
for sprinkling to prevent dust, and other efforts are made to recycle water resources.
Taisei Corporation participates in the Water Project, a public-private initiative which promotes initiatives aimed at achievingsound water cycles and water environment preservation. We share information with other companies on water risks
initiatives, and considers how to pursue such initiatives internally.

Refer to:Water

Activities to Reduce Environmental Impact from Waste

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

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

Utilizing the Green Procurement Guideline in Cooperation with Suppliers
In 2001, Taisei Corporation established and put into effect the Taisei Corporation Green Procurement Guideline to promote
the use of materials, equipment and building methods that have small environmental impact during the design, construction,
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operation and demolition of structures. We also conduct target management on green procurement items, and the numberof items adopted in fiscal 2020 was 11.7 items.
By referring to and reflecting the content of the Green Purchase Law (Act on Promotion of Procurement of Eco-Friendly
Goods and Services by the State and Other Entities), we review the subject items every year. In fiscal 2020, 94 items were
included in the guideline. Company-wide application of the guideline means we can not only recycle resources but also saveenergy, reduce CO2 emissions, save resources, avoid use of toxic substances and preserve the natural environment.

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

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

2

Energy and resource conservation

3

Low amount of construction waste generated during construction and demolition

4

Consideration of the use of recycled materials and recycling

5

Freedom from harmful substances

6

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

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

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TOPIC "Patrol Collection System" promoting the use of the Wide Area
Certification System to achieve cyclical use of construction materials
The government's Wide Area Certification System is a method of recycling
non-burnable construction waste that is difficult to recycle. In this system,
manufacturers of building materials recycle the waste from their own
products as raw material for products.
Taisei has deployed the "Patrol Collection System," a recycling activity that
promotes the use of the Wide Area Certification System.
In this system, wastes from many products including plastic waste fromTaisei worksites in Tokyo are collected, and the waste is carefully sorted atworksites and thorough quantity management is conducted. This systemenables total logistics management (collection, reshipment and delivery
control) using third party logistics (3PL) and achieves efficient coordinatedtransport among multiple worksites and multiple receiving factories.
This unique Taisei-developed total logistics system has resolved the
problem of increased transport costs caused by the long-distancetransport of small quantities of construction wastes, which had become aproblem in the use of the Wide Area Certification System at construction
sites, and has helped to promote the use of the Wide Area Certification
System.
Moreover, this initiative - a construction resources recycling activity by the
Network Alliance Corporation, a consolidated subsidiary handling logistics
operations together with Taisei - was awarded the Ministry of Economy,
Trade and Industry Environment Bureau Director's Award at the FY 2020
Resource Recycling Technology / System Awards.

Data

Environmental Data

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For Realization of a Nature Co-Existing Society

Policies and Basic Approach

Goals and Targets

Initiatives

Achievements

Data

For Realization of a Nature Co-Existing Society
Policies and Basic Approach
In its Green Target 2050, Taisei's long-term environmental target, the Taisei Group has committed to "Minimizing impact onnatural capital" and the achievement a "Nature Positive" policy. To achieve these targets, we will use our uniqueenvironmental DNA analysis technology and the Concierge series of biodiversity assessment tools to make proposals andimplement construction that takes biodiversity into consideration.
At the construction planning stage, risks to the natural environment and biodiversity are identified, and related departments
such as the design department, the construction department of Building Construction Division and Civil Engineering
Division, and the Taisei Advanced Center of Technology work together to minimize the impact on the natural environmentand biodiversity by using the various technologies they possess. Furthermore, we are actively working to preserve goodnatural environments and create green infrastructure based on diverse technologies and abundant experience in connection
with the natural environment. Promoting the introduction of green infrastructure by preserving and building naturalenvironments that are suited to the region, creating nature in urban environments, restoring undersea and underwater
environments and so on will make it possible to plan and build natural environments that take biodiversity into account by
2030, which will achieve a nature positive environment in which biodiversity is a plus.

Risks and Opportunities
There are concerns that construction work will have a significant impact on the natural environment and biodiversity. For thisreason, we provide customers with solutions that consider the natural environment and biodiversity and create a rich

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environment throughout the planning, design, construction and post-completion building operation stages. At the planningand design stages, we respond appropriately to environmental laws and regulations, create added value related to theconservation of the natural environment and biodiversity; at the construction stage, we work in consideration of the naturalenvironment and biodiversity; and at the completion stage, we provide operational and management support to conserve thenatural environment and biodiversity.
We will contribute to the realization of a nature co-existing society by properly evaluating the value of natural capital,
minimizing the impact of construction work as much as possible, and providing technologies to preserve the naturalenvironment and preserve and create biodiversity.

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

Refer toAction Guidelines for Taisei

Environmental Policy

Goals and Targets
TAISEI Green Target 2050
2050Targets: Minimizing impact on natural capital

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TAISEI Green Target 2050

Milestone
2030 Targets: Biodiversity-conscious implementation of proposals and Construction

Environmental Targets

Environmental Targets

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

Refer to:Initiatives

Achievements

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Natural Environment Conservation

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

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contributing to forest recycling by working with our customers and local communities
to recover forests and recycle forest resources for the future.

Technology to Conserve Quality Natural Environment

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

Refer toWater: Ⅵ.Development of advanced technologies

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

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

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Taisei has also developed the Concierge series of proprietary biodiversity assessment and planning tools. These tools allow
anyone to easily determine the environment at construction sites and share this information to appropriately preserve andcreate natural environments. We also conduct monitoring and predictive assessments.

Consideration of Biodiversity for Proposal (risk assessment)

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

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

Conservation and Creation of Diverse Natural Environment “10-year
Nurturing of Forests”
In the development of the Fujisan Nanryo Industrial Park, we conducted the “10-year nurturing of forests” project, modeled
after the natural forest, using trees suitable for the local environment. It has been confirmed that a forest with biodiversity
richer than those of the surrounding forests was formed 10 years after the planting of saplings. To create a forest, we used amethod of “nature-type greening” that nurtures forests by having trees competing each other. As an industrial park thatcoexists with nature and interacts with the local community, it has received the Environment Minister’s Award at the 49
Environmental Awards.

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Biodiversity Conservation and Creation cases (Commitment to net positive
biodiversity impact)

Long-term monitoring surveys-The Sapporo DomeIn the construction of the Sapporo Dome, which was completed in 2001, right from the planning stage, we used ourenvironmental planning technology to plan an external structure that emphasized the conservation of biodiversity. The
technology employed in this project was Ecological Planning, Taisei Corporation's proprietary environmental planningtactics, which facilitates the design of spaces that preserve the region's inherent ecosystems from the planning stage.
In order to verify that the environment is actually inhabited by various types of living creatures, we have conducted long-termmonitoring surveys based on the number of species of birds, butterflies, dragonflies, and other creatures, from the planningstage in 1997 to the completion of construction in 2001, at both 3 years and 10 years after construction, and also in thepresent day.
Knowledge and concrete results accumulated during this process have been used for the development of the biodiversity
communication tools, the “Ikimono (living creatures) Concierge,” and have contributed to the conservation and sustainable
use of natural resources through various environmental awareness activities conducted by Sapporo Dome Co., Ltd.
These initiatives were recognized as “Sapporo Dome ECOMOTION and Taisei Ecological Planning” as an affiliate

Improvement of Facility Value through Biodiversity Conservation and Creation-The ESR Amagasaki Distribution Center
An environmental certification that proves natural environmental consciousness of a facility increases the value of the facility
and appeals to customers as proof of an environmentally conscious company.
Leveraging its strength as a general construction firm capable of executing projects from start to finish, from the planningand design of facilities to their construction, Taisei Corporation conducts environmental assessments of projects, including
the impact on biodiversity, from the early stages of development planning, and incorporates consideration for the

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environment into project plans. In so doing, we strive to minimize environmental impacts and support our clients'
environmental activities, such as the conservation and creation of biodiversity as well as the acquisition of environmental
certifications.
At the stage of planning and design of the ESR Amagasaki Distribution Center (ordered by ESR), a logistic facility located at
the Osaka bay-side area, for example, an outer green area was planned, designed, and constructed by Taisei Corporation to
help improve the biodiversity without affecting capabilities as a logistics facility.
The facility earned the “Business Innovation in Harmony with Nature and Community” certification from the Association for
Business Innovation in Harmony with Nature and Community (ABINC) as a logistics facility that respects biodiversity.

ESR Amagasaki Distribution Center (ordered by ESR)

Biotope
Eco Globe Kure (Kure City, Hiroshima)
The general waste final treatment plant, Eco Globe Kure, was completed and began operations in 2015 as a place toexpress and communicate nature restoration technologies. We recreated the waterside environment that was going to belost with the construction of the treatment plant and created a biotope inhabited by diverse flora and fauna, including rare
species.

Support for Biodiversity-Related Initiatives and Cooperation with
Stakeholders

The Tokyo Greenship Action project

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

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

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

OECM Biodiversity 30 by 30 Alliance

OECM Biodiversity 30 by 30 Alliance

The TNFD ForumThe TNFD Forum

Making dormouse nest boxes
Since 2004, Taisei Corporation has participated in the Animal Pathway (bridges
for tree-dwelling rodents) Research Society, and has supported ecosystemconservation activities for tree-dwelling rodents, such as the dormouse, throughdevelopment and facilities for animal pathways and monitoring. As part of these
activities, our group employees and their families participate every year in

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volunteer activities to construct dormouse nest boxes. In our activities held, we
donated these boxes to the Dormouse Museum of KEEP, Inc.
We have conducted this environmental volunteering activity every year, withparticipants working to build a total of 2,945 dormouse nest boxes, thus far.

TAISEI 1 Ton CLUB
Since 2010, we have conducted this environmental contribution activity a total of 9 times, under the theme of“simultaneously achieving carbon offsets at the Company and in the homes of employees.”
In 2012 and 2015, we supported the Kamaishi Forest Owner's Association, which manages the mountain forests of
Unosumai District. On May 9, 2017, a large-scale wild fire occurred in the District due to a suspicious fire, resulting in theburning of 413 hectares as well as heavy damage. Accordingly, we continued our support through fundraising to donate
the cost of planting saplings for the reforestation of Kamaishi Forest. We were also involved in the construction of
Kamaishi Unosumai Memorial Stadium, where trees that had been felled by the fire in Unosumai District were used tomake wooden seats, public toilets, benches and louvers sunshades.

Data

Environmental Data

Copyright TAISEI CORPORATION All Rights Reserved.

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For Realization of a Safety Secured Society

Policies and Basic Approach

Goals and Targets

Initiatives

Achievements

Data

For Realization of a Safety Secured Society
Policies and Basic Approach
The Taisei Group has set a 2050 target of “providing value with zero environmental risk to realize a safety secured society”
in its long-term environmental targets, TAISEI Green Target 2050. To achieve this target, we will work to continue to have“zero environmental accidents” (zero incidences of serious contamination of soil, water, dust etc.) by properly managing
construction byproducts and complying with environmental laws and regulations.

Risks and Opportunities
Environmental pollution caused by construction work has a significant impact on the surrounding environment and society.
Accordingly, compliance with environment-related laws and regulations is the most important environmental issue. We will
reduce environmental risks during construction work by properly managing construction byproducts, developing andapplying technologies that comply with regulations on soil and groundwater pollution, and promoting construction methods
that reduce noise, vibration, dust and other environmental impacts. We will also contribute to the realization of a society inwhich the safety of people is ensured in terms of both hardware and software by providing technologies to prepare fornatural disasters such as floods and tsunamis. In addition, as water risks such as droughts and water shortages due toeconomic development and climate change have become apparent around the world, we are assessing water risks inbusiness activities in water-stressed areas.

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Policy / Commitment
Action Guidelines for Taise: Promoting environmental conservation and creation
Environmental Policy
Environmental Targets
TAISEI Green Target 2050: Realizing a Safety Secured Society
Promise of Eco-First
Taisei Group Sustainable Procurement Guidelines
Taisei Group Green Procurement Guideline
Green Procurement Standard Guideline
Safety and Health Policy

Refer toAction Guidelines for Taisei

Environmental Policy

Goals and Targets
2050 Targets: TAISEI Green Target 2050
Aim to provide value with zero environmental risk

TAISEI Green Target 2050

Milestone
2030 Targets: Zero environmental accidents through compliance with environment-related laws and regulation

Environmental Targets

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Environmental Targets

Initiatives
United Nations Global Compact “Environment”
Building Byproducts Subcommittee ([Nikkenren] Japan Business Federation)
Civil Engineering Byproducts Subcommittee ([Nikkenren] Japan Business Federation)
CDP (Water Security)

Refer to:Initiatives

Achievements
Environmental solutions technology for achieving a safety secured society
Since 1991, Taisei has conducted more than 3,000 soil surveys and purification projects to ensure the safety of soil andgroundwater environments in various locations both at home and abroad. Taisei is working to reduce environmental risk by
developing technologies to reduce soil and groundwater environmental risk and promoting techniques to reduce
environmental load in the area around construction sites.

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Bringing Contaminated Soil and Groundwater Back to Life
1

2

Chemical decomposition

Special purification agents are mixed into the ground and agitated to bring about

methodoxidation-reduction decomposition of the pollutants and render them harmless.

Flushing and bio-

A solution containing air and nutrient salts that activate the purification bacteria

sparging® methodin the groundwater is provided to purify the benzene and cyanogen compounds
and so on.

3Multi-barrier® method

A maintenance-free method that can achieve simultaneous purification even forcomplex contaminated groundwater containing trichlorethylene, hexavalentchromium, fluorine and so on. Prevents the discharge of hazardous substances
to areas outside the site.

4

T-CIM®/ SoilReme

Centralized management of information relating to surveys and countermeasureconstruction, enabling shortened survey periods and ensuring traceability for the
movement of contaminated soil. A 3D viewer promotes sharing of data among
participants and faster consensus-building.
Protecting the Environments Around Construction Sites

5

Tecolep-Light® System

Environmentally conscious demolition method for demolishing ultra-high risebuildings taking into account dust and noise. A containment space is constructedat the top of the ultra-high rise building to minimize the impact on thesurrounding environment of the dust, noise etc. produced during the demolition
process.

6

TSounds®-Ambience

A total noise prediction system that can be used for various noise studies suchas optimal layout planning, noise predictions in environmental assessments,
sound isolation design and equipment soundproofing measures and so on.

7

Chitoreat®

The biodegradable natural Chitosan flocculant "Chitoreat" manufactured fromcrab shells and other seafood byproducts can be used to treat turbid water.
Protecting People from Disasters, etc.

8

T-Flood® Analyzer

Assessment and diagnostic system that can be used in coordination with BIM
models to determine flooding risk in building interiors at a glance. An effective
tool for devising specific measures to address flood risk concerns.

9

T-Tsunami Viewer®

Creates visualizations using 3D images to provide analysis results for tsunami
flooding over a wide area and depict the "look and feel" of the wave based on
geographical data, and to recreate the complex flow of water in city streets
based on state-of-the-art fluid analysis.

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Protecting People from Disasters, etc.
®
10 T-Zone Saver

Detects locations with high occupant density and issues reminder alerts. Also
controls air conditioning and ventilation volume according to the population
density at that location.

11

T-LED DUV Light®

Space sterilizing lamp that uses deep ultraviolet rays. Detects when people areaway from their desks and sterilizes the surface to render viruses inert.

Refer toWater: Ⅵ.Development of advanced technologies

Risk Measures at Worksites
To ensure appropriate disposal of construction by-products and observance of environmental laws, environmental safety
departments at the Taisei head office and branch offices conduct "Worksite Environmental Patrols" and environmental
education and training as an internal audit of the observance of environmental laws and regulations at worksites.
Environmental education for employees and specialist construction company personnel is conducted at worksites inaccordance with the Key Environmental Management Items Manual. By sharing examples of situations that led toenvironmental accidents, learning about the appropriate management of asbestos, PCBs and other hazardous chemical
substances, promoting appropriate management and purification of contaminated soil and so on, trainees learn theimportance of environmental management, helping to prevent environmental accidents.
In FY 2021, 971 environmental patrols were conducted, and inspections with even more stringent targets than theinspections mandated by the national government were conducted, leading to 181 instances of problems being pointed out.
Of these, 21 cases involved nonconformities relating to the Waste Management Law and so on. In response to the problems
that have been pointed out, corrective and preventive actions are being devised to ensure ongoing improvements.
In FY 2021, there were no incidents of soil, water, dust or other serious contamination, nor were there any instances ofserous environment-related legal violations.

Risk Measures

Type
Noise

Action (Example)
Conducted communication with neighbors in response to complaints about nighttime concreterelated work.

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Type

Action (Example)

Vibration

Changed to work during a factory holiday in response to complaints about heavy machinery work in
the factory.

Dust

Implemented measures such as spraying water and installing sheets in response to complaints
about dust from construction work.

Water

Conducted communication with neighbors in response to complaints about nighttime concrete-

pollution

related work.

Complaint to Worksites and Handling Thereof
We take proper measures regarding environment-related complaints addressed to a workplace, make a record and reportusing a communication sheet based on an environment management system (EMS) procedure and share the information
horizontally among concerned departments or within the entire Company as required.
In addition, we are properly handling comments given by citizen groups.

Data

Environmental Data

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Water

Taisei Corporation Policy for Action on Water Issues
The preservation and renewal of water resources and the water environment is a global environmental challenge.
Through the TAISEI Green Target 2050, Taisei Corporation is working to resolve water resource and water environment
issues, helping to reduce water usage through effective and efficient use of water resources.
To achieve a Safety Secured Society, Taisei is working to develop technologies to purify contaminated soil andcontaminated groundwater and apply these in construction operations. To preserve water environments in each region,
Taisei also ranks the appropriate management of construction effluent as a critical management task at its workplaces bothat home and abroad.
To achieve a Recycling Oriented Society, Taisei promotes the effective use of water resources and the use of recycledwater.
To achieve a Nature Co-Existing Society, Taisei works to develop technologies to preserve and renew waterside
ecosystems and apply these technologies in construction operations.
Through these activities, Taisei is working to preserve and renew the water resources and water environments that are
essential in order to "Create a Vibrant Environment for All Members of Society."

TAISEI Green Target 2050

Taisei Corporation's Approach to Water Issues

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Preservation of

Reduction ofContribution to recovery fromlocal water circulation

environmental risk

flood damage, etc.

Appropriate management of・Contaminated soil

Speedy response in disaster

construction effluent

・Contaminated groundwater

recovery efforts(zero environmental accidents)

purification technologies
・Development of advancedⅣⅠwater-related technologies
・Achievements of water-related
projects
Ⅲ

Ⅳ

Ⅵ

Preservation and renewal of

Effective use of water resources

Business activities in water-waterside ecosystems

and reduction of use quantities

stressed regions

Technical development andEfforts by all employees to reduce

Determination of water risks inapplication in construction work

water use Active use of recycled

business activity regions (usingⅥwater, reclaimed wastewater"Aqueduct Water Risk Atlas" etc.)Ⅱand appropriate management
Ⅴ

Ⅰ. Appropriate management of construction effluent
Taisei Corporation has been certified under ISO14001 and, as part of its Environmental Management System (EMS),
exercises thorough management of construction effluent at all of its approximately 700 offices and workplaces both at home

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and abroad, using its own "Manual of Environmental Priorities for Branch Offices and Workplaces" and "Checklist ofEnvironmental Laws and Regulations, etc. checklists."
In addition, various site patrols by general managers and branch officials as well as specialized environmental patrols (byenvironmental patrol personnel who have received training based on in-house standards) are conducted, in order to assess
activities at each workplace and provide guidance for improvement.

1.

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

2.

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

3.

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

4.

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

5.

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

In construction projects, most of the production activities at construction sites are conducted by specialist construction
companies, so coordination with specialist construction companies is essential for environmental management at worksites,
including the treatment and management of construction effluent. Taisei Corporation works together with some 7,000
primary specialist construction companies conducting environmental management of the workplace and striving to ensurethat there are no environmental accidents. In the event of a problem with the management of construction effluent by aspecialist construction company, or an environmental accident, a report is sent to Taisei Corporation without delay, and if thecompany fails to fulfill its obligations, action that may include suspension of the business relationship is taken.

Ⅱ. Effective use of water resources
1.

Taisei Corporation is promoting the Taisei Sustainable Action (TSA), a series of activities involving all employees withthe aim of reducing environmental load.

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In 2011, Taisei began its "CO2 Zero Action" initiative at all construction worksites. This initiative consists of seven basic
activities aimed at reducing environmental load. One of the activities was "the effective use of rainwater and springwater," and this activity continues to this day.
In 2018, a "TSA Action List" was prepared, listing specific activities to reduce environmental load. One item included on
the list was "Cyclic use and reuse of construction water (including on-site use of rainwater and spring water)." Taisei
works to enable reuse of the water from construction operations by purifying it according to the intended purpose ofuse, and to use rainwater and spring water within the construction site for sprinkling and cleaning the tires of
construction vehicles and so on. The TSA Action List is reviewed each year and updated to add new measures, etc.
In 2020, a TSA Point System was introduced, in which point scores are used to assess the effectiveness ofenvironmental load reduction activities at workplaces. Highly effective activities on the TSA Action List are selected andassigned points. Examples include "Cyclic use of construction water" "Making the results of water quality
measurements visible" and "Preserving rare animals and plants." Assigning points according to the status of theactivities and making the scores visible is done in an effort to further energize TSA activities.
2.

Workplaces strive to reuse water, etc. to ensure that water resources are used effectively and to reduce the quantity ofclean water that is used.
Use of recycled water
Slurry shield tunnel construction and soil contamination countermeasures work involve the transport of excavatedearth and sand and face stabilization, as well as the use of large quantities of water for purification with the soil
washing method. To reduce use quantities, muddy water (sediment transport water and water used for cleaning) is
subjected to turbid water treatment and the resulting recycled water is used.
Taisei also promotes the use of treated water (purified construction effluent) as well as rainwater and spring water for
sprinkling within the site and washing the tires of construction vehicles.

3.

Taisei also promotes the use of low-flush toilets and water-saving faucets at workplace temporary offices as well ashead and branch offices.

4.

The ZEB Demonstration Building in the Taisei Technology Center, a "laboratory of people and space, has from the timeof its completion collected the rainwater that falls on the solar panels mounted on its roof in a rainwater use tank. The
water is used to flush the toilets on the 1st and 2nd floors.

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ZEB Demonstration Building in Taisei Technology Center5.

For its supply chain, Taisei established the "Taisei Group Sustainable Procurement Guidelines" listing guidelines inareas such as the environment, human rights and compliance that must be observed throughout the supply chain. All
specialist construction companies and equipment and materials suppliers are required to observe these guidelines.
Taisei also works with all of its suppliers to preserve water resources (by reducing water use, ensuring efficient use,
reducing the discharge of / ensuring effective management of industrial wastes, hazardous chemical substances andcontaminants, and observing environment-related laws and ordinances in order to prevent environmental accidents).

6.

Taisei Corporation is a participant in the Environment Ministry's Water Project*1, a public-private project that promotes
activities to maintain and restore healthy water environments. Taisei shares information on activities concerning water
risks with other companies to study ways to promote such efforts.
In addition, Taisei cooperates with U.N. agencies and other international organizations and NGOs, etc. in each country.
Taisei also endorses the goals of the Japan Water Forum (JWF), an NPO working to resolve water issues, andparticipates in its activities.

Multiple offices and workplaces participate in "Mission Uchimizu" organized by the Japan Water Forum (JWF)＊1 The Water Project is a project founded in 2014 by the Ministry of the Environment, based on the Basic Act for Water Circulation, with the aim of creating avenue for public-private cooperation.

7.

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

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

Intake

1,691

1,436

1,414

1,412

2,266

Discharge

4,701

4,483

4,288

6,625

9,677

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

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Ⅲ. Technologies for purifying contaminated soil andcontaminated groundwater
Since the 1990s, Taisei Corporation has promoted the development of technologies for purifying soil and groundwatercontamination. Taisei has conducted more than 1,500 soil and groundwater surveys and more than 1,550 soil andgroundwater purification projects.

Multi-barrier method

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

Flushing and bio-sparging method

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

Cyclic usage technology for slurry in slurry shield tunnel construction (including naturally
occurring arsenic)

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

Technology for preventing groundwater contamination by nitrate nitrogen

With this technology, a purification wall, which contains purification material (sustained-release organic matter) mixed in torelease organic matter over a long period of time, is used to bring about a denitrification reaction in microorganisms in the

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

Ⅳ. Achievements of water-related projects
Improved water quality for rainwater drainage

3rd rain reservoir project of the Shibaura Water Reclamation Center

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

Reduction of water use

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

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

Ochanomizu Sola City

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

Soil and groundwater contamination measures

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

Flood damage recovery

Emergency disaster measures for the levee breach on the Kinugawa River in the Tone
River System

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The concentrated heavy rainfall in the Kanto region in September 2015 resulted in a levee breach on September 10,
extending for approximately 200m on a levee in the Kinugawa River. This caused damage that included many homes being
washed away by the inundation flow in the area of the breach. Working 24 hours a day, Taisei Corporation conductedemergency repair work of the levee breach. A week after the breach, the placement of foot protection blocks and earth filling
for the temporary embankment were completed. On September 24, two weeks after the breach, the emergency repair workthat included the construction of a reinforcing double-wall cofferdam was successfully completed.
This emergency disaster recovery work was conducted based on a disaster relief agreement with the MLIT Kanto Regional
Development Bureau.

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

Joint research and development

Joint research and development relating todevelopment of manufacturing technologies for bio-derived products to accelerate the achievement of carbon recycling
verification of industrial agent production systems
development of a new effluent treatment process to enable biological methanation and biofuel manufacture
Saitama University, Chubu University, Kazusa DNA Research Institute and Taisei Corporation have signed a Cooperative
Research and Development Agreement, and have been contracted by NEDO to develop a new effluent treatment processthat will enable biological methanation and biofuel manufacture.

Ⅴ. Business activities in water-stressed regions

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At workplaces both at home and abroad, the Aqueduct Water Risk Atlas*2 of the World Resource Institute is used todetermine the water risk in each region where business activities (civil engineering and construction) are conducted, andappropriate management is conducted for business activities in high water stress regions.

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

(2) Business activities overseas
A check using the Aqueduct Water Risk Atlas of the locations of the main overseas workplaces revealed that there were tworegions with workplaces having a water stress*3 assessment of "High" or "Extremely high." Appropriate management isbeing conducted for all workplaces including these two workplaces.

＊2 Aqueduct Water Risk Atlas: A water risk analysis tool that assesses water risk in five levels using 13 indicators in three categories (water quantity, water quality,
and regulatory and reputational risk).
＊3 Water stress: An indicator of the degree to which water resources are under stress, derived by dividing annual water intake by annual water runoff.

Asia region
No.

Country /No. ofregionworkplaces

Water risk

Taiwan1

Taipei,Taichung,

7

①Low

etc.
Philippines
2

Manila,6

etc.
VietnamHanoi, etc.

Mideast / Africa region
3

6②Low medium①Low

VietnamHo Chi
Minh City,
etc.

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No.

Country /No. ofregionworkplaces

Indonesia

1

Jakarta
4

Indonesia
2West Java
Province
5

Singapore

2

Water risk

①Low

③Medium high

①Low

ThailandSource：https://www.wri.org/initiatives/aqueduct
Map numbers indicate country numbers in the table at right.

Rayong

6

4

Province,③Medium highetc.
Myanmar7

YangonLaos

8Vientiane
Sri Lanka

9

11

Qatar

Egypt

①Low

1

Alexandria

Water risk inworkplaces

1

1

Doha

locations with

①Low

1

Colombo

10

1

No. ofworkplaces②Low medium⑤Extremely
high

④High

Percentage⑤Extremely high

1

3%

④High

1

3%

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Water risk inlocations withworkplaces

No. ofworkplaces

Percentage③Medium - high617%

②Low - medium

10

28%

①Low

18

50%

As the data values are rounded off, the sum of the values may not add up to100.

Ⅵ. Development of advanced technologies
T-Flood® Analyzer flood risk assessment system
This technology simulates the building interior inundation status in the event that the area around the building is flooded andinundated. It allows the results of analysis, such as the inundation path to each room in the building, the inundation quantity
and the inundation time to be visualized at an arbitrary location. This enables the inflow path to each room in the building
and the inundation depth to be determined at a glance.
In addition, the shortest evacuation route from each room to the ground level exit and the time required in the event ofinundation can also be calculated. The system can also be used for buildings for which only information based on the design
documentation and site survey is available. In such cases, information on the areas for which an inundation analysis isneeded (layout of each room, room and corridor doors, window width etc.) can be converted into CAD data to shorten theamount of time required to prepare input data. Input data can be prepared automatically if BIM data for the building are

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available, enabling even more rapid analysis. In addition, the results of analysis can be displayed in three dimensions froman arbitrary perspective, making it easy to share inundation status and inundation risk data among participants and enabling
it to be used effectively as a consensus-building tool as well.

Energy producing type groundwater treatment technology to help achieve decarbonization
A Membrane Bio Reactor (MBR), a new sewage treatment technology combining anaerobic treatment and membrane
separation technology, has been developed, and the performance of the technology is currently being confirmed using test
equipment installed at a sewage treatment plant. Compared to the conventional activated sludge method, this technology
not only uses less energy but also can collect methane which can be used for power generation, so it is expected to help
promote energy conservation in sewage treatment.

Seagrass transplantation technology
This is a simple seagrass transplantation method that does not require seeding and stock planting. It causes less damage tothe natural seagrass beds that are the source of transplantation than conventional methods, and it uses the natural
germination capability of seagrass, enabling seagrass transplantation more easily than with conventional methods. To
transplant Zostera marina, palm fiber mats are spread in the natural Zostera marina bed, and the Zostera marina seedlings
fall naturally onto the mats and germinate, thereby affixing themselves to the mat which can then be simply moved to thetransplantation destination. In marine tests, this method was verified to produce the same degree of propagation and growth
as natural Zostera marina. In addition, using thick palm fiber mats as the transplantation bed makes it possible for the
method to be used for transplantation of seagrasses that propagate by means of rhizomes. Site tests verified that theseagrass attaches itself to the mat by the rhizomes which extend from the top to the interior of the mat.

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アマモの移植工法（概念図）

Coral transplantation technology
This is a technology for coral transplantation via sexual reproduction that uses coral egg laying to induce propagation. After
spawning, the coral larvae that return from the eggs are affixed to an implantation device. After maturing on the implantation
device, they are transplanted into individual containers. A concrete implantation device that is cheaper than the conventional
ceramic implantation device was developed. Suitable locations for implantation are determined using coral larvae floating
simulations and habitat selection models.

Mizube Concierge
This tool makes it possible to study and plan preservation sites for rare animals and plants quickly, for example to create
replacement sites to protect rare animals and plants that inhabit waterside areas near construction sites. A tablet shows theinformation needed to formulate preservation sites visually in an easily understandable way, making it easy to share

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information and smoothly achieve consensus with related entities, as well as quickly preparing preservation plans (selecting
appropriate replacement candidate sites and so on).
Entering the name of a rare animal or plant displays the information needed to formulate preservation plans in an easily
understandable visual manner.
Candidate sites where waterside environments can be created as replacement sites can be appropriately selected.
Enables preservation plans to be drafted more quickly and in a shorter period of time than conventional methods.

Determination of underwater habitation status of rare amphibians using environmental
DNA analysis technology
A technology called environmental DNA analysis technology for analyzing the DNA from animals in water and soil (animal
fragments, excrement etc.) was used for an ongoing study of habitats of rare amphibians (salamanders) that inhabit
conservation areas near building sites. The use of this analysis technology makes it possible to determine the habitat status
in water following spawning, something that was difficult to accomplish by conventional visual inspection. This technology
enables more long-term monitoring of habitat status during building construction, making it possible to take more reliable
preservation measures.

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Other
The medium-term business plan (2021-2023) allocates JPY 60 billion for environment-related investment. Of this amount,approximately JPY 100 million will be for water-related research and development expenses in FY 2021.
To continue business operations even in the event that the head or branch offices and construction workplaces sustain
flood damage or other type of damage, a Business Continuity Plan (BCP) has been formulated, and drills are conductedeach year. The content of the BCP is revised as needed to ensure that it reflects disaster damage that has actuallyoccurred and the situation in society. Each year approximately JPY 100 million is disbursed for equipment and systeminstallation and the purchase of stockpiles and so on.

Copyright TAISEI CORPORATION All Rights Reserved.

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Environmental Data

Environmental Targets

TAISEI CORPORATION Material Flow (FY2021)

TAISEI CORPORATION Material Flow

Material Flow for Group Companies

Projected CO2 emissions and reduction rate in the building operation phase (stand-alone)
Supply chain CO2 emissions(Scope3)

Building waste emissions (stand-alone)

Quantity and Recycling Rate by Construction Waste Category
Control of hazardous substances (stand-alone)

Environmental data / indicator calculation method / criteria

Environmental Targets
Environmental Targets for FY2022 and result for FY2021

FY2021TAISEI Green
Target 2050

Annual Targets

Targets

Society

At construction stage *1:
Reduction of CO2 emissions per

TargetResultValues-36%-30.1%-38%-52%-52.7%-51%

ValuesDecarbonized

FY2022construction cost (intensity)
At construction stage*1:
Reduction of total CO2 emissions

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FY2021TAISEI Green

Annual Targets

Target 2050

FY2022
TargetTargets

ResultValues-41%-44.6%-42%-25%-22.2%-

ValuesAt building operation stage*1:
Reduction of design-build estimatedCO2 emissions (including
dissemination and promotion of
ZEB)
Reduction of energy consumption
per office floor area (intensity)*2

Recycling
OrientedSociety

Adoption of green (environmentally

11 items perconscious) procurement items at

project orbuilding design stage

11.7 items per
project

more

Reduction of final disposal rate ofconstruction waste

3.3% or less

2.8%

11 items per
project ormore-3.3% or less

Implementationof biodiversity
Nature Co-

conscious

Existing

proposalPromotion ofprojects

Society
Implementationof biodiversity
conscious

35 project or

49 project

more

contributing to

40 project or

improvement

more

in
biodiversity*3

10 project or

23 project

more

construction
SafetySecuredSociety

Proper management ofConstruction byproducts andcompliance with environmentalrelated laws and regulations*1

Compared to FY1990*2

Compared to FY2010*3

Beginning from FY 2022, the fiscal year management targets have been integrated.

Zero

Zero

Zero

environmental

environmental

environmental

accidents

accidents

accidents

Key performance indicator

TAISEI CORPORATION Material Flow (FY2021)

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INPUT
Total fossil fueluse

OUTPUT
Total CO2

90.4

Diesel74.3

Kerosene

3.1

Heavy oil

11.0

Gasoline

1.7

emissions(Scope1+2)
Sites(construction sites)

GTL
Total electricity
use

243

Factories

66

Offices

16

Scope 1

245

Scope 2

79

Scope 3

4,632

0.2

179

121

106kWhsites)

Category 1

1,529

Category 11

2,689

Factories

35

Other Category

414

Offices

23

Construction waste

2,452

Quantity recycled

2,379

Total quantity ofthe mainconstruction--

concrete
CementQuantity of direct
final disposalmaterials
Ready mixed

Water (discharged)
1,523

103m3

120

103t

315

103t

539

103t

2,367

103m3

Aggregates(gravel, crushedstone, etc.)
Steel
Water
(consumption)

103tCO2

103kL

Sites
(construction

325

TAISEI Environmental Social Governance Report 2022-Nov. 91

103tCO2

103t

73

9,785

103m3

https://www.taisei-sx.jp/

CO2 emissions(Scope1+2)
TAISEICORPORATIONTaisei Rotec

industrial waste generated
TAISEI

224

Taisei Rotec

93

Corporation

1,976

CORPORATION

103t-

388

Corporation

103t

CO2
TAISEI U-LEC CO.,LTD.
Other 5 companies

TAISEI U-LEC CO.,

5

71

LTD.

3

Other 5 companies

16

TAISEI CORPORATION Material Flow
Third-party assured values are indicated with the

INPUT

Units

FY2017FY2018FY2019FY2020

109MJ

3.90

4.14

4.39

3.60

3.77

109MJ

1.72

1.61

1.99

1.04

1.45

109MJ

1.95

2.31

2.18

2.35

2.10

109MJ

0.23

0.22

0.22

0.22

0.22

103kL

68.9

79.0

76.7

61.4

62.7

Diesel

103kL

66.3

77.8

75.2

60.0

62.2

Kerosene

103kL

2.0

0.5

0.6

0.9

0.5

Heavy oil

103kL

0.6

0.8

1.0

0.5

0.1

106kWh

125

111

145

122

136

106kWh

49

43

57

21

34

106kWh

60

52

73

87

85

106kWh

16

15

15

15

16

Total energy use
Construction Site (building)Construction Site(civil engineering)
Offices
Total fossil fuel use

Total electricity use
Construction Site (building)Construction Site(civil engineering)
Offices

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FY2021https://www.taisei-sx.jp/

INPUT
City gas (offices)Units

FY2017FY2018FY2019FY2020

103m3

227

140

213

259

103t

6,811

6,540

7,369

4,966

-

4,375

3,375

4,066

3,855

1,523

(103t)(103t)(103t)(103t)

Quantity of the main
*1

construction materials

165

Ready mixed concrete*2

103m3

Cement

103t

283

695

263

172

120

103t

1,679

2,038

2,514

387

315

103t

446

414

506

534

539

103m3

1,691

1,436

1,414

1,412

Aggregates (gravel, crushedstone, etc.)
Steel

Water (consumption)*1

FY2021

2,266

Up through FY 2020, the contract quantities were tabulated. Beginning in FY 2021, the targets were tabulated for the four main construction materials (readymixed concrete, cement, aggregate and steel) and the turnover quantities are tabulated and shown.

*2

From FY 2017 through FY 2020, quantities have been shown as "103t."

OUTPUT
Total CO2
emissions(Scope1+2)
Construction Site(building)Construction Site(civil engineering)

Offices

At construction stage
Reduction of CO2
emissions per
construction cost(intensity)
Total CO2 emissions*1

Units

FY2017FY2018FY2019FY2020103t-CO2

245

261

267

216

103t-CO2

110

102

124

66

103t-CO2

124

148

133

140

103t-CO2

11

11

10

10

19.6

19.5

18.8

19.1

245

261

267

216

FY2021
224

91

123

10

tCO2/JPY100

19.1

million103t-CO2

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4,102

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OUTPUT

Units

FY2017FY2018FY2019FY2020

Scope 1*2

103t-CO2

178

204

198

159

Scope 2103t-CO2

67

57

69

57

Scope 3*3

103t-CO2

-

-

-

-

Category 1

103t-CO2

-

-

-

-

Category 11

103t-CO2

-

-

-

-

Other Category

103t-CO2

-

-

-

-

FY2021
162

61

3,878
1,283

2,284

311
1,085

NOX

t

1,151

1,345

1,302

1,039

SOX

t

175

205

200

158

t

12

15

21

-

Construction waste

103t

2,644

2,020

2,411

1,787

Quantity recycled

103t

2,528

1,924

2,283

1,715

1,914

103t

116

96

128

71

62

103m3

4,701

4,483

4,288

6,625

9,677

162

Quantity of
Chlorofluorocarbon and-halon recovered*4

Quantity of direct final
disposal
Water (discharged)

*1

1,976

Up through FY 2020, the figures were shown as the total of Scope 1 and Scope 2. Since FY 2021, the figures have been shown as the total of Scope 1, Scope 2
and Scope 3.

*2

In FY 2021, in accordance with the Japan Federation of Construction Contractors guidelines, emissions at Taisei workplaces for fuel listed under Scope 3 in FY
2020 was included in Scope 1.

*3

Beginning in FY 2021, Scope 3 shows the value based on the GHG Protocol, etc.

*4

Up to FY2019, the quantities of fluorocarbons and halons emitted by Taisei that have been recovered have been tabulated and disclosed (halon recovery
quantities since FY 2018), in accordance with the Fluorocarbon Recovery and Destruction Act.
In FY2020, leak quantities were tabulated in accordance with the Act for Rationalized Use and Proper Management of Fluorocarbons. Leak quantities wereminute and were therefore not disclosed.

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Material Flow for Group Companies
Third-party assured values are indicated with the

INPUT

Units

FY2017FY2018FY2019FY2020Total energy use

109MJ

1.53

1.62

1.68

1.70

109MJ

0.29

0.39

0.32

0.37

Factories

109MJ

1.12

1.10

1.23

1.20

Offices

109MJ

0.13

0.12

0.12

0.13

103kL

25

26

26

27

Diesel

103kL

9

12

10

11

Kerosene

103kL

2

2

3

3

Heavy oil

103kL

12

11

11

11

Gasoline

103kL

2

2

2

2

GTL

103kL

-

-

-

0

106kWh

41

40

43

43

106kWh1111Factories

106kWh

33

33

35

35

Offices106kWh

7

7

7

7

Sites
(construction sites)

Total fossil fuel use

Total electricity use

Sites(construction sites)

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mark

FY2021
1.70

0.42

1.15

0.12

27.6

12.2

2.7

10.8

1.7

0.2

43

1

35

7

https://www.taisei-sx.jp/

INPUT

Units

FY2017FY2018FY2019FY2020

103m3

3,794

4,628

5,692

5,056

t

63

378

485

575

Water (consumption)

103m3

153

115

138

109

102

OUTPUT

Units

FY2017FY2018FY2019FY2020

FY2021103t-CO2

95

100

101

102

103t-CO2

19

27

22

25

Factories

103t-CO2

68

66

72

70

Offices

103t-CO2

7

7

7

7

103t-CO2

95

100

101

102

Scope 1*2

103t-CO2

74

80

81

83

Scope 2103t-CO2

21

20

20

19

Scope 3*3

103t-CO2

-

-

-

-

753

Category 1

103t-CO2

-

-

-

-

246

Category 11

103t-CO2

-

-

-

-

405

Other Category

103t-CO2

-

-

-

-

103

NOX

t

211

257

227

224

280

SOX

t

106

107

103

105

107

City gas

LPG

Total CO2
emissions(Scope1+2)
Sites(construction sites)

Total CO2 emissions*1

TAISEI Environmental Social Governance Report 2022-Nov. 96

FY2021
4,169

598

101

29

66

6

854
83

18

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OUTPUT

Units

FY2017FY2018FY2019FY2020

FY2021

t

2

3

2

2

6

103t

259

266

485

416

103t

248

256

475

406

465

103t

11

10

10

10

11

103m3

143

109

74

76

108

Quantity of
Chlorofluorocarbon
and halon recovered
Total industrial waste
generated
Quantity recycled
Final disposal
quantity
Water (discharged)

*1

476

Up through FY 2020, the figures were shown as the total of Scope 1 and Scope 2. Since FY 2021, the figures have been shown as the total of Scope 1, Scope 2
and Scope 3.

*2

In FY 2021, in accordance with the Japan Federation of Construction Contractors guidelines, emissions at Taisei workplaces for fuel listed under Scope 3 in FY
2020 was included in Scope 1.

*3

Beginning in FY 2021, Scope 3 shows the value based on the GHG Protocol, etc.

Supply chain CO2 emissions(Scope3)
Supply chain CO2 emissions(Scope3)

Projected CO2 emissions and reduction rate in thebuilding operation phase (stand-alone)
Units
103t-

Projected CO2 emissions

CO2

Calculated values according to

103t-

1990 standard

CO2(reduction rate)%

Emissions by floor space

kg-CO2/Year·m2

FY2017FY2018FY2019FY2020

24

10

15

42

19

46

17

25

72

34

48.1

40.2

39.5

41.4

44.6

20

30

23

32

17

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Building waste emissions (stand-alone)
OUTPUT

Units

FY2017FY2018FY2019FY2020

2,644

2,020

2,411

1,787

1,644

973

1,268

1,066

1,119

116

96

128

71

62

105

88

74

51

38

2,528

1,924

2,283

1,715

1,914

1,539

886

1,194

1,016

1,082

Building waste emissions

FY2021
1,976

Not including sludge andindustrial wastes subject
to special control
Final disposal quantity
Not including sludge and103t

industrial wastes subject
to special control
Quantity recycled
Not including sludge andindustrial wastes subject
to special control

Quantity and Recycling Rate by Construction Waste
Category（103t）

Building
Civil

Asphalt-concrete
remnants
Construction site sludge
Mixed waste

Recycling

新

解

築

体

105

285

308

592

697

100%

37

133

7

140

176

100%

589

220

18

238

827

-

8

28

5

33

42

73.6%

engineering

Concrete remnants

Total
Total

TAISEI Environmental Social Governance Report 2022-Nov. 98

rate(%)

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Building
Civil
engineering

新

解

築

体

RecyclingTotalrate(%)

Total

Wood scrap

15

9

3

12

27

95.0%

Metal scrap

2

16

21

37

39

99.3%

Miscellaneous

52

84

31

116

168

72.2%

Total

808

775

393

1,168

1,976

-

Control of hazardous substances (stand-alone)
Emissions by type of building waste

OUTPUT

Units

FY2017FY2018FY2019FY2020

FY2021

8

4

14

5

15

1

1

2

1

3

0

0

0

0

0

Asbestos-containing material
103t

Waste asbestos, etc.
Mercury

Compliance with PCB etc.

OUTPUT

Units

FY2019FY2020

PCB waste production quantity / disposal quantity00

1 lot(31kg)

VOC emissions

-

-

-

* No applicable items

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Environmental data / indicator calculation method /criteria
Category by type of

Categorized as workplace (civil engineering / construction projects), office (not including

project

development projects and other projects) or factory
Scope 1: CO2 emissions from burning of fossil fuels (including transport of construction

CO2 emissions

byproducts from worksites)

Scope categories

Scope 2: Indirect CO2 emissions from the use of power, steam or hot and cold water
Scope 3: CO2 emissions from other companies involved in business activities

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TAISEI CORPORATION

CO2 emissions by type of projectCalculation method / criteria
Aggregation criteria
Aggregated in conformance with the Act on the Rational Use ofEnergy, Act on Promotion of Global Warming Countermeasures and
GHG Protocol, etc., and based on in-house regulations relating toenvironmental data management and the Taisei Group environmental

CO2 emissions(Scope1+2)

data aggregation manual.
103t-CO2

For the aggregation of CO2 emissions, Taisei Corporation uses thevalues for fuel usage of the Japan Mechanization Association with the
exception of the values for oil and fat content.
CO2emissions coefficientLight oil, heavy oil etc.: Calculated using the emissions coefficients in
the Act on the Rational Use of Energy and the Act on Promotion of
Global Warming Countermeasures.
Power: Calculated using 0.439 t-CO2/MWh, the 2020 post-adjustment
emissions coefficient from the receiving end in the figures announced
by the Japan Business Federation. For offices, calculated using thepost-adjustment emissions coefficient for the FY 2020 results for eachelectric power company.

CO2

t-CO2/JPY

City gas: Calculated using the standard calorific value of city gas

emissions(intensity)

100 million

suppliers and the emissions coefficient in the Act on Promotion of
Global Warming Countermeasures.
CO2 emissions at construction stage (workplace (civil engineering /construction)): For calculation of CO2 emissions at Taisei Corporation
workplaces, in some cases temporary or special construction, etc. thathas a major impact on data continuity is omitted.

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Aggregation criteria
Aggregated in conformance with the basic guidelines for calculation ofgreenhouse gas emissions throughout the supply chain, etc., and inhouse regulations relating to environmental data management.
CO2 emissions coefficient
Calculated using the emissions coefficient in the basic guidelines forcalculation of greenhouse gas emissions throughout the supply chain(LCI database IDEAv2 (for calculation of supply chain greenhouse gas
emissions)).

CO2
emissions(Scope3)

103t-CO2

Category 1 & 11

Category 1: Purchased products / services
Calculated by multiplying the purchase quantities of the major raw
materials — steel (including steel reinforcements), ready-mixed
concrete, cement and aggregate — by the emissions coefficient.
Category 11: Use of sold products
Calculated by multiplying the total floor area of the completed building
by the emissions coefficient for each use (basic unit from design
results for the past 3 years) and the service life (Comprehensive
Assessment System for Building Environmental Efficiency (CASBEE)
assessment manual).

Projected CO2 emissions at building
use stage and reduction factor
Calculated value
based on 1990 level103t-CO2

Calculation method / criteria

Of the buildings constructed by Taisei Corporation, emissions for the
1.11 million m2 from 52 projects with a total floor area of 300 m2 orgreater were calculated using the Energy Of the buildings constructed

Projected CO2
emissions103t-CO2

by Taisei Corporation, emissions for the 1.11 million m2 from 52 projects
with a total floor area of 300 m2 or greater were calculated using theEnergy Use Reduction Plan for each project at the design stage.

Projected CO2
reduction factor%

Energy Use Reduction Plan: Compilation of the steps to be taken to
reduce energy usage by building thermal insulation and air
conditioning equipment, etc. in accordance with the Act on the

Emissions by floor

kg-

area

CO2/year·m2

Emissions and recycle rate forconstruction waste by type
Construction wastes

103t

Rational Use of Energy, etc. Must be submitted at the design stage forbuildings with a total floor area of 300 m2 or greater.

Calculation method / criteria

Construction wastes from independent construction work andconstruction work as the leader of a consortium, and construction by-

Recycle rate%

products produced at owned factories, etc. (wastes / valuable resources).

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Taisei Corporation Material Flow

INPUT

Calculation method / criteria
Aggregation criteria

Total fossil fuel use

103kL

Aggregated in conformance with the Act on the Rational Use ofEnergy, Act on Promotion of Global Warming Countermeasures and
GHG Protocol, etc., and based on in-house regulations relating toenvironmental data management and the Taisei Group environmental
data aggregation manual.

Total electricity use

106kWhEnergy and water use

Office: Annual purchase quantity and usage are aggregated for eachmonth.
Civil engineering and construction projects (workplaces): Usage for a
two-month period during FY 2021 was aggregated for 169 sampledworkplaces, and usage (basic unit) for the value of finished work for

City gas (offices)103m3

each construction project during the aggregation period was
calculated. Annual usage was calculated by multiplying this basic unit
by the value of finished work for the year. For civil engineering projects,
the value was calculated for each type of work.
* Usage of "energy-related" fossil fuels (heavy oil, light oil, gasoline, kerosene), power and city

Water (consumption)

103m3

gas and the energy converted values for these figures.
* The sum total of energy usage is the value of (fossil fuel usage + power usage + city gas(office) usage) converted into joules.

Main building materials usage: Purchase quantity of main building
materials directly purchased for independent construction work by

Total quantity of themain construction
materials

Taisei Corporation and construction work as the leader of a-consortium.
* Usage of main building materials: ready-mixed concrete, cement, aggregate (gravel, crushedstone etc.) and steel.

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OUTPUT

Calculation method / criteria
Aggregation criteria
Aggregated in conformance with the Act on the Rational Use ofEnergy, Act on Promotion of Global Warming Countermeasures and
GHG Protocol, etc., and based on in-house regulations relating toenvironmental data management and the Taisei Group environmental
data aggregation manual.
For the aggregation of CO2 emissions, Taisei Corporation uses thevalues for fuel usage of the Japan Mechanization Association with the
exception of the values for oil and fat content.
CO2 emissions coefficientLight oil, heavy oil etc.: Calculated using the emissions coefficients in

CO2 emissions

the Act on the Rational Use of Energy and the Act on Promotion of

103t-

Global Warming Countermeasures.

CO2Power: Calculated using 0.439 t-CO2/MWh, the 2020 post-adjustment
emissions coefficient from the receiving end in the figures announced
by the Japan Business Federation. For offices, calculated using thepost-adjustment emissions coefficient for the FY 2020 results for eachelectric power company.
City gas: Calculated using the standard calorific value of city gas
suppliers and the emissions coefficient in the Act on Promotion of
Global Warming Countermeasures.
CO2 emissions at construction stage (workplace (civil engineering /construction)): For calculation of CO2 emissions at Taisei Corporation
workplaces, in some cases temporary or special construction, etc. thathas a major impact on data continuity is omitted.

NOxtEmissions from light oil, heavy oil and kerosene are calculated using theemissions coefficient in the Architectural Institute of Japan "Building LCA
Guidelines: Assessment Tool for Global Warming, ResourceSOxtConsumption and Waste Measures (revised version)."Construction wastes from independent construction work andConstruction waste

103t

construction work as the leader of a consortium, and construction byproducts generated at owned factories, etc. (wastes / valuable
resources).

Material Flow for Group Companies

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INPUT

Calculation method / criteria
Aggregation criteria

Fossil fuel use

3

10 kL

Aggregated in conformance with the Act on the Rational Use ofEnergy, Act on Promotion of Global Warming Countermeasures and
GHG Protocol, etc., and based on in-house regulations relating toenvironmental data management and the Taisei Group environmental

Electricity use

1 millionkWhdata aggregation manual.
Energy / water usage
Office / factory: Annual purchase quantities and usage amounts areaggregated each month.
Civil engineering / construction projects (workplaces): AggregatedCity gas

103m3

based on the Taisei Group environmental data aggregation manual.
* Energy, fossil fuel (heavy oil, light oil, gasoline, kerosene, GTL),
power, city gas and LPG usage and energy converted values.

LPGt* The sum total of energy usage is the value of (fossil fuel usage +power usage + city gas + LPG) converted into joules.

OUTPUT

Calculation method / criteria
Aggregation criteria
Aggregated in conformance with the Act on the Rational Use ofEnergy, Act on Promotion of Global Warming Countermeasures and
GHG Protocol, etc., and based on in-house regulations relating toenvironmental data management and the Taisei Group environmental
data aggregation manual.
CO2 emissions coefficientLight oil, heavy oil etc.: Calculated using the emissions coefficients in
the Act on the Rational Use of Energy and Act on Promotion of Global

CO2 emissions

103tCO2

Warming Countermeasures.
Calculated using the 2.36 kg-CO2/l calculated by GTL "Shell Global
Solutions."
Power: Calculated using 0.439 t-CO2/MWh, the 2020 post-adjustment
emissions coefficient from the receiving end in the figures announced
by the Japan Business Federation. For offices, calculated using thepost-adjustment emissions coefficient for the FY 2020 results for eachelectric power company.
City gas: Calculated using the standard calorific value of city gas
suppliers and the emissions coefficient in the Act on Promotion of
Global Warming Countermeasures.

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OUTPUT

Calculation method / criteria
Construction wastes from independent construction work andConstruction waste

103t

construction work as the leader of a consortium, and construction byproducts at owned factories, etc. (wastes / valuable resources).

Domestic enterprises of Taisei Group companies (Taisei Corporation, Taisei Rotec Corporation,
Taisei-Yuraku Real Estate Co., TAISEI U-LEC CO., LTD, Seiwa Renewal Works, Taisei Setsubi

Targetorganizations

Co., Ltd., J-FAST Co., Ltd., Taisei Housing Corporation)
The target organizations cover more than 90% of the sales of the entire Taisei Group.

Third-Party Verification click here

Copyright TAISEI CORPORATION All Rights Reserved.

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Information Disclosure Based on TCFD
Recommendations

Governance

Strategies

Risk Management

Indicators and Targets

Information Disclosure Based on the Recommendations
by The Task Force on Climate-Related Financial
Disclosures (TCFD)

Climate change and resulting natural disasters are occurring more frequently and on a larger scale than before, and thesafety and security of our homes and lives are threatened. These changes have created a major trend toward decarbonization leading to the adoption of the Kyoto Protocol, the Paris Agreement, and the SDGs. They have had a significant impact
on the policies of countries around the world, including Japan, and there are growing expectations for the role thatcompanies will play.
The Taisei Group recognized the impact of climate change on its business as a crucial management issue and endorsed the
TCFD recommendations in July 2020. In response to the government’s Carbon Neutrality Declaration in October 2020, we
have reviewed the TAISEI Green Target 2050 in 2021, and are aiming to achieve “virtually zero CO2 emissions frombusiness activities” by 2050. In addition to our efforts to reduce carbon emissions, we shall work with the value chain tocontribute to the realization of a decarbonized society.
Furthermore, to contribute to the achievement of a decarbonized society, in February 2022, we established new Group
Environmental Targets for 2030 as a milestone in our long-term environmental targets, the TAISEI Green Target 2050. While
we will continue to promote information disclosure based on the TCFD recommendations, we will pay close attention to theimpact of climate change and the government’s policies and social trends for the reduction of CO2 emissions. We will takeappropriate measures, and aim to achieve a sustainable society and the improvement of corporate value.

Governance

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As meeting bodies to deliberate on proposals related to climate changes, we have set up the Sustainability Committee
and the Environment Committee. After discussion by each meeting body, matters are discussed and determined by the
Board.
Important policies and measures related to ESG in general are discussed by the Sustainability Committee, which is acommittee of the Board. The formulation of basic policies and medium to long-term targets related to environmental
management are deliberated on by the Environment Committee, which is an advisory body to the Management
Committee.
Proposals deliberated on and decided by the Board are communicated by the Management Committee to each businessdivision and Group company, and are reflected in their management plans and business operations. Then, the details areincorporated into the specific action items at a construction site. We will also request our suppliers to cooperate.

Chart of Climate-Related Governance System

Strategies
We recognize various Medium- To Long-Term risks including the major ones listed above. We conducted scenario
analysis on one of them, climate change risk.
Climate change risk includes risk caused by transitions such as the reinforcement of regulations to minimize temperature
increases and changes in the market, and risk that arises with physical changes such as acute abnormal weather that
occurs due to higher temperatures.
To establish business strategies that flexibly respond to climate change, we use multiple scenarios to evaluate the impact
on our business. For the scenario analysis, we refer to the Sustainable Development Scenario (SDS) by the International
Energy Agency (IEA) for the scenario where transitions will progress, and the Representative Concentration Pathways(RCP) scenario by the Intergovernmental Panel on Climate Change (IPCC), etc. for cases where physical changes will
progress. In this way, we verify the validity of our business strategy.

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Major risks and opportunities concerning climate change

Classification

Risk/Opportunity

Description

Impactlevel

Decrease in private construction

Shift
Marketinvestment and equipment investment

shrinkage anddue to the introduction of carbon pricing

increaseand the reinforcement of CO2 emission
regulations

in construction
cost due to theintroduction of

Risk

MediumIncrease in construction costs due to ahike in the prices of building materials
and electricity

carbon pricing
and tightened

Increase in costs due to the application

CO2 emission
regulationsof carbon pricing to the CO2 that is

Increase in

Increase in demand for renewal todemand forrenewalLow

generated by our business activities

Opportunity

improve energy efficiency of existing
facilities

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Classification

Risk/Opportunity

Description

Increase inenergy-saving

level

Increase in demand related to ZEB anddemand related
toImpactsmart cities
Opportunity

Expansion of demand for renewable

Mediumenergy-related works such as offshore

and renewablewind power

energyDecline in productivity due to an increase
in damage to the health (heat stroke,etc.) of skilled construction workers andIncrease in

the avoidance of extremely hot hours

averagetemperature

Risk

Accelerated worker shortage due to theMediumdecline in the number of new workers induring summer

the construction industry because of thedegraded working environment

Increase inWork suspension, process delay, andseverity andfrequency of

increase in labor and temporary work

Risk

costs due to damage to construction

naturalMediumworksites, etc.

disasters

Increase in procurement costs andPhysicalprocess delays due to damage to

Risk

High

suppliers
Increase in

Increase in demand to improve theseverity andfrequency ofOpportunity

naturalresilience of equipment andinfrastructure against intensified

High

disasters

disasters

Increase in new construction andOpportunity

relocation works due to growing demandHigh

for relocation from disaster hazard areas

Increase in the capital investment for
Rise in sea
level

Opportunity

improved resilience in areas with a floodrisk and demand for relocation fromHigh

areas with a flood risk

Note: Possible works are classified by the significance of impact as “High,” “Medium” and “Low.”

Countermeasures for Climate Change
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Countermeasures required for the risks and opportunities identified with scenario analysis are reflected in the Medium-TermBusiness Plan (2021–2023). They are also incorporated into the business operations of each division. Accordingly, we will
reduce the risks associated with climate change and expand opportunities.

Owning renewable energy power sources for the
purpose of covering the power consumption of theGroup
Response to the market shrinkage and construction

Consideration and introduction of fuel improvement

cost increase due to the introduction of carbon

measures (biodiesel fuel/fuel additives) for

pricing and the tightening of laws and regulations

construction worksites
Enhancement of green procurement such as thedevelopment and utilization of carbon-recycle
concrete

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

Development and commercialization of nextgeneration high-performance ZEB and thedevelopment of energy support services
Technological development that contributes to theindustries that are expected to grow through avirtuous cycle of the economy and the environment

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

construction worksites due to abnormal weather

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

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

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

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Risk Management
As for climate change risk, we established a company-wide TCFD Working Group (TCFD WG) to identify the climatechange risk related to each department’s business and analyze the degree of impact on the business. We also conduct
evaluations relative to risks other than climate change risk, and confirm that the necessary measures are being taken. The
risks analyzed by the TCFD WG are deliberated by the Sustainability Committee and reported to the Board meeting.
In addition, it is consistent with the risks evaluated and identified with the environmental management system (EMS)
based on the international standard ISO 14001.

Indicators and Targets
In the environmental targets for fiscal 2050 "TAISEI Green Target 2050," we set the goal of “virtually zero” CO₂ emissions
from business activities. Moreover, we set out “Realization of a Sustainable and Environmentally Friendly Society” as oneof the materiality (our important issues), and set KPIs for fiscal 2023 using the CO2 emission reduction rate as an index.
We are aiming to reduce CO₂ emissions through the implementation of priority measures under the Medium-TermBusiness Plan (2021-2023). Going forward, scenario analysis will be carried out in stages to identify potential risks andformulate and implement business strategies.
We will also actively promote green projects through the issuance of green bonds.

CO2 emission reduction target for each fiscal
year

Scope 1+2 reduction rate of CO2 emissions per
sales*1(Taisei Group)
Scope 1+2 reduction rate of total CO2
emissions*1(Taisei Group)

FY2023

FY2030FY2050KPITAISEI Green Target 2050

-15%

-50%

-6%

-40%
We will aim for “virtually zero” CO2

At construction stage: Reduction rate of CO2
emissions per sales*2 (Non-consolidated)
At construction stage: Reduction rate of total CO2
emissions*2 (Non-consolidated)emissions from business activities.
-41%

-64%

-46%

-66%

In addition to our reduction efforts,

At building operation stage: Reduction rate ofdesign-build estimated CO2 emissions*2(Nonconsolidated)

-43%

-59%

we will work on the value chain,and contribute to the realization ofa decarbonized society.

*1 Compared to FY2019. *2 Compared to FY1990.

Refer to:
For Realization of a Decarbonized Society

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Social(S)

Human Rights

Labor Practices

Respect for Human Rights+

Promotion of Diversity and+Inclusion
Human Rights Due Diligence+

Consumer Issues

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

Enhancing Employee Potential+

Health Management+

Thorough Management of+

Ensuring Quality and Improving
Technology+

Technical Development for+Realizing a Sustainable Society

Occupational Health and Safety
Cultivation of Technical Staff+and Securing of Human
Resources

Community Involvement
and Development

Fair Operating Practices

Promotion of Supply Chain
Management+

Contribution to Local
Communities+

Social and Cultural Contribution+

activities

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Respect for Human Rights

Policies and Basic Approach

Goals and Targets

Sustainability Governance and OversightAchievements

Initiatives
Data

Respect for Human Rights
Policies and Basic Approach
The Action Guidelines for Taisei Personnel and the Taisei Group as a Whole emphasize “Respect for fundamental humanrights and diversity,” and stipulate that the Taisei Group and Taisei Personnel shall not discriminate on the basis of race,
religion, gender, nationality, social status, disabilities, or sexual orientation, nor shall they commit any act in violation ofhuman rights, such as sexual harassment or abuse of authority.
Underpinning every corporate activity of Taisei Corporation is its support and respect for internationally agreed human rights
protections such as the Universal Declaration of Human Rights, the eight fundamental conventions of the International
Labour Organization (ILO) relating to the Declaration on Fundamental Principles and Rights at Work, and international labor
standards including ISO 26000, and we are committed to not being complicit in human rights violations.
In April 2022, based on a resolution of the Board of Directors, the Human Rights Policy was revised to incorporate the clear
commitment of the Taisei Group to fulfill the responsibility to respect human rights both within and outside the company, andto establish a Human Rights Due Diligence mechanism as a specific activity and ensure its ongoing implementation. The
Human Rights Policy is communicated both within and outside the company via the official Taisei Group website.
The Taisei Group will respect human rights in accordance with its Human Rights Policy and will work with its business
partners and other relevant entities to promote the human rights of all stakeholders involved in the Group's businessactivities.

Risks and Opportunities

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The lynchpin of business activities in the construction industry is a multitiered supply chain that extends throughout thecountry and the world and is made up of skilled workers in many different fields, companies that procure, process andtransport raw materials and so on. To Taisei, respect and consideration for the human rights of every person throughout theentire supply chain which includes employees, skilled workers and the local community is a serious matter. Efforts to protect
human rights at companies have grown more and more important in recent years. Taisei recognize the need for efforts toprotect human rights both within the company and throughout the supply chain and is promoting efforts to this end.

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

Refer to:Action Guidelines for Taisei

Human rights Policy

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

Support for Human Rights in the UN Global Compact
In April 2018, the Taisei Group announced its support for the UN Global Compact and its two principles relating to humanrights. We also support the UN Guiding Principles for Business and Human Rights(UNGPs), the Children's Rights andBusiness Principles, and we promoting initiatives for human rights due diligence in supply chains.

The Ten Principles of the UN Global Compact
Human

Principle 1:Businesses should support and respect the protection of internationally proclaimed

Rightshuman rights.
Principle 2:Make sure that they are not complicit in human rights abuses.

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

Environment

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

Anti-

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

Corruption

bribery.

Goals and Targets
TargetPromote Human Rights Due Diligence in an ongoing manner to identify and assess negative impacts and strive to preventand mitigate human rights risks.
Conduct follow-up investigations to determine the effectiveness of measures, and work to determine the state of humanrights issues in the supply chain, ensure the effectiveness of Human Rights Due Diligence, and work to intensify efforts toensure respect for human rights.
Provide regular reports on the status of efforts to management meetings, meetings of the Sustainability Committee andthe Board of Directors, and disclose information as appropriate.

Performance

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Year
FY 2022

Progress toward Achievement of Objectives
Revision of Human Rights Policy
Revision of Taisei Group Sustainable Procurement Guidelines
Preparation of Taisei Sustainability Handbook that takes into account the
Human Rights Policy and human rights activities of the Taisei Group, anddistribution to all Taisei and Group company employees (25,000 copies). In
addition, holding of explanatory briefings to ensure a thorough understandingof the Human Rights Policy and the Sustainable Procurement Guidelines.
Engagement between the Taisei CSO and key figures with a knowledge ofglobal human rights issues with regard to human rights issues, and release of
an integrated report
Human rights training and compliance training for all executives and regular
employees
Opinion survey and interviews of suppliers (scheduled)

FY 2021

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

FY 2020

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

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

Refer to:Promotion of Supply Chain Management

Materiality and KPIs

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

Refer to:Initiatives

Sustainability Governance and Oversight
Human Rights Management
Taisei Corporation pursues various initiatives relating to human rights through coordination between Sustainability
Committee, Personal Committee, Compliance Committee and other Committees is structured so that its activities areappropriately supervised by the Board of Directors.

Promotion Item

Description of Activity and Achievements

Sustainability Committee

Important matters relating to human rights are discussed in advance, first at a

(Board of Directors

management meeting and then at a meeting of the Sustainability Committee,

Committee)

after which they are referred and reported to the Board of Directors. The
Sustainability Committee revises and abolishes the Taisei Group Action
Guidelines, works to ensure understanding of the UN Global Compact, reportson the status of operation of the corporate ethics helpline that has been
discussed by the Compliance Committee, and revises the Human Rights
Policy.

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Promotion Item

Description of Activity and Achievements

Compliance Committee

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

been set up as a special committee that answers to an advisor to thepresident. The committee is under the direction and supervision of the Chief
Risk Management Officer (CRO) and its activities are centered on the
Compliance Promotion Office, the committee's promotion department. The
committee works with the officers and the promotion and execution personnel
in each department to ensure a thorough awareness of complianceresponsibilities, such as preventing harassment and discrimination andpreventing human rights issues.

Personnel Committee

Compliance with the personnel utilization policy (diversity and inclusion policy)(Operations Committee)

is supervised by the Taisei Board of Directors and promoted by the personnel
department in the administrative division. An engagement survey is conducted
for all executives and regular employees, and the results of this survey andimportant matters relating to diversity and inclusion are discussed by the
Personnel Committee and, depending on the content, are referred andreported to management meetings and the Board of Directors.

Human Rights Education

The Human Rights Education Committee, chaired by the Chief Sustainability

Committee

Officer (CSO) and made up of promotion committee members at the head
office divisions and all branches, discusses basic policy, measures etc. relating
to human rights issues and then formulates activity plans, reviews humanrights education activities, studies and obtains approval for policies and plans,
and promotes ongoing improvement activities.

Sustainable Procurement

The Sustainable Procurement Committee is made up of the managers ofCommittee

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

Contacts for Consultations regarding Human Rights Violations and Relief
As shown in the table below, various contacts for consultations have been established to handle consultations from all
stakeholders both within and outside the company. In the event that the Taisei Group is discovered to have caused or
furthered adverse impact on human rights, immediate relief will be provided and corrective action will be taken using
appropriate means in accordance with the Human Rights Policy.

<Contact>

TAISEI Environmental Social Governance Report 2022-Nov. 120<For>https://www.taisei-sx.jp/<Contact>
Personnel Affairs Consultation Contact (personnel system,
workplace environment, human rights, harassment etc.)<For>

Company employees

EAP Consultation Contact (mental health of employees andtheir family members, etc.) (outside consultation is also

Company employees and their families

available)
Vibrant Workplace Promotion Section Consultation Contact(support for diversity, childcare and nursing care, LGBTQ

Company employees

issues etc.)
Harassment Consultation Contact at head office and branch
offices (sexual harassment, abuse of power etc.)

Company employees

Corporate Ethics Helpline, Group Helpline (all compliance

Company employees / Group companies andviolations)directly contracted suppliersWorkers at business operators working on Taisei

Whistleblower Contact (all compliance violations)projects that have a direct contractual relationshipwith Taisei

Contact for Inquiries on the Taisei official website

All Stakeholders

Achievements
Human Rights Awareness Activities
Based on the Taisei Group slogan “For a lively world,” the Action Guidelines for Taisei Personnel and the Taisei Group as a
Whole emphasize “Respect for fundamental human rights and diversity.” Taisei strives to foster a corporate climate that
respects human rights and continues to work to improve awareness of the importance of human rights throughout the TaiseiGroup.
The Human Rights Policy that was first established in 2015 was revised in April 2022 to incorporate the clear commitment of
the Taisei Group to fulfill its responsibility to respect human rights both within and outside the company. As a specific activity
in this regard, a Human Rights Due Diligence mechanism was also established, and this mechanism will be implemented in
an ongoing manner.
Moreover, Taisei has posted its Human Rights Policy on its website to make its policy clear to all stakeholders, and has also
issued the Taisei Group Sustainable Procurement Guidelines that require respect for human rights in all business activities.
Furthermore, Taisei has prepared the Taisei Sustainability Handbook, a training manual that explains activities relating tosustainability issues that include the Human Rights Policy, human rights due diligence and other matters concerning respectfor human rights. This handbook is issued to every employee at Taisei Corporation and the Taisei Group companies to
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ensure a thorough understanding of the Human Rights Policy. Briefings are also held at individual departments to ensure
understanding.
Moreover, to ensure that each employee has a deep understanding of the Human Rights Policy and is able to conductbusiness activities with respect for human rights, online training sessions are conducted each year for all employees, andhuman rights training is incorporated into the educational programs for employees at each level and within each department.
Group training is conducted for a variety of topics including international human rights issues, the Burakumin issue, persons
with disabilities, LGBTQ issues, harassment and so on.
In addition, we conduct various types of training for employees about the importance of respecting human rights. Employees
who are the consultation contact for human rights violations established in each department receive online training byspecialists. In addition, employees at the managerial level and above view training videos designed to prevent power
harassment and bullying and receive training in how to respond to incidents, and participate in the Human Rights
Awareness Supervisor Training sponsored by the Industrial Federation for Human Rights, Tokyo and held for newly
appointed members of the Human Rights Awareness Promotion Committee.
We also conduct ongoing activities to promote awareness of human rights, including publishing and distributing to all
employees a “Human Rights Handbook” about the importance of respecting human rights and a handbook for supporting
persons with disabilities (Happy Communication Guidebook), as well as soliciting essays and slogans on human rights eachyear and awarding prizes for outstanding contributions.

Taisei Corporation Human Rights Awareness Promotion Committee (As of 1 April,2022)
In 1984, Taisei established the Taisei Corporation Human Rights Awareness Promotion Committee, made up of promotion
members at the head office and all branch offices, for the purpose of supporting excellent character-building for employees
and nurturing employees who are very aware of the importance of human rights. Each year, the Committee discusses basic
policies and measures relating to human rights issues, formulates activity plans, and reviews human rights awarenesspromotion activities, in order to promote human rights awareness activities company-wide and in individual departments.
Moreover, once each year, in coordination with the annual committee meeting, a training session by outside specialists isheld in an effort to increase awareness of the importance of human rights.
Frequency:Twice a year

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

Secretariat:Chief Manager of Planning Section. Sustainability Planning Department

Branch Office Committee Members
Chairperson :Managers of Administration Department (13 branch)
DeputyChairperson :Managers of each division (13 branch)

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Stakeholder engagement with regard to human rights issues
With regard to significant human rights issues in the construction industry, the Taisei Group Human Rights Policy stresses
the “need to thoroughly eliminate human rights violations involving foreign workers in particular.” As part of the activities that
demonstrate its commitment to the resolution of such issues, Taisei discloses discussions between its Chief Security Officer(CSO) and outside experts in an integrated report. Moreover, in accordance with the United Nations Guiding Principles on
Business and Human Rights, Taisei has initiated due diligence activities for its suppliers regarding human rights in the
supply chain, and conducts interviews and the like with suppliers and foreign workers. In addition to risk reduction andcontinuing improvements through due diligence, Taisei also complies with laws relating to human trafficking, equal work,
equal compensation, immigrant labor and so on, and works to ensure respect for human rights.

Refer to:Human Rights Due Diligence

Human Rights×SDGs Talk

Data

SocialData

Copyright TAISEI CORPORATION All Rights Reserved.

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Human Rights Due Diligence

Human Rights and Supply Chains
1. Identification of adverse human rights impacts (Foundational Principle 18)
2. Prevent and mitigate adverse human rights impacts (Foundational Principle 19)
3. Track the effectiveness of the response (Foundational Principle 20)
4. Provide information and communicate externally (Foundational Principle 21)
Taisei Corporation clearly state “Respect for fundamental human rights and diversity” in the Action Guideline for the TaiseiGroup. In addition, we believe that supporting and respecting the protection of internationally agreed human rights, such as
international standards, including ISO26000, is the premise of our corporate activities. Viewing that not infringing on humanrights is our responsibility that we shall fulfill, in October 2015, we decided on our Human Rights Policy. Since then, we havebeen proceeding with initiatives. We acknowledge that recently the importance of the companies’ initiatives for respect forhuman rights has been increasing, and the activities related to human rights are required to involve the supply chain beyond
the company itself. In April 2022, with the Board’s approval, we revised the Human Rights Policy to explicitly commit theGroup’s stance that we will fulfill the responsibility to respect human rights internally and externally.
As a specific measure, we have established the framework for human rights due diligence and decided to implement it
periodically.

Human Rights and Supply Chains
The construction industry is made up of skilled workers in various fields and raw material procurement, processing andtransport companies. Multilevel supply chains that extend both domestically and internationally are the bedrock of corporate
activities. For Taisei Corporation as well, consideration and respect for human rights throughout the entire supply chain,including all involved personnel, skilled workers and the local community, is an important issue.
For this reason, Taisei has introduced a Human Rights Due Diligence (HRDD) system as established in the United Nations
Guiding Principles on Business and Human Rights, to identify and assess the negative impact on human rights of its

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corporate activities, and to identify critical issues that need to be resolved on a priority basis. With the advice of outside
specialists, we have identified the human rights risks in our supply chains.
The risks that are identified and policies to prevent and minimize these risks are discussed at management meetings andmeetings of the Sustainability Committee and reported to the Board of Directors. Taisei will continue to promote policies toprevent or minimize human rights risks at the Taisei Group.

1. Identification of adverse human rights impacts (Foundational Principle
18)

Based on international guidance regarding human rights (the Human Rights Guidance tool of the United Nations
Environment Program Finance Initiative), Taisei identifies common human rights risks faced by the industry as a whole aswell as risks that are specific to the construction industry, and assigns points ratings for risks such as health and safety,
labor issues, bribery and corruption and so on from the two standpoints of "impact on human rights" and “connection to
own company.”
In addition, the major human rights risks were determined (added), and the colored sections of the figure below wereidentified as “human rights risks that must be dealt with on a priority basis.”
In risk identification and mapping, a careful check was conducted at the Sustainable Procurement Council, based on
advice from an outside consultant firm (SOMPO RISK MANAGEMENT). In addition, in important matters, outside legal
counsel reviews all agenda items in advance.

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Human rights risk map

Human rights risks that should be dealt with on a priority basis
Affected Group

Priority

Risk

Issue
Specialist construction company

Health andworkers and other workers (bothsafetydomestic and overseas projects)(safety andhygiene)Wages andwelfarebenefits

Workplace accidents and other safety
considerations and death and injury due toinsufficient mental health measures

Financial losses caused by failure to pay adequate
wages in line with working hours

Discrimination
andInappropriate language and harassment at work andharassment

unequal opportunities for advancement, pay raises(in theetc. and unequal wages

workplace)(Domestic projects)

Long working

Death and injury from chronic long working hours

hours

and overwork due to rapid order response

Personal
informationand privacy

Psychological distress caused by leakage of
personal information and invasion of privacy

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Affected Group

Priority

Risk

Issue
(Overseas projects)

Discrimination

Application rejected for other than rational reasons,(in hiring)or discriminatory deployment following hiring
Debt servitude, poor working environment, non-Immigrant

payment of wages, conditions of enslavement due tolaborseizure of passport to restrict freedom of movement,
etc.

Freedom of

Financial losses due to lack of means of labor-

association

management consultation

Supplier workers involved in

Health andcollection, manufacture andsafetyDeath or injury due to industrial accidents at

transport of construction materials(industrial

company factories or during transportand raw materials

accidents)
Debt servitude, poor working environment, nonImmigrant

payment of wages, conditions of enslavement due tolaborseizure of passport to restrict freedom of movement,
etc.

Local community

Forced labor /Work under conditions of enslavement, such as

humanwork that is against one's will, work that restricts the

trafficking

freedom to leave one's job, forced overtime etc.

Civic order(safety of
local
residents)

Bribery andcorruption

Excessive security at overseas workplaces, or deathor injury from terrorist acts targeting overseas
workplaces

Financial losses due to improper providing of profits
to foreign officials, inflow of financing to criminalorganizations etc.

Conflict

Death or injury caused by procurement or use of raw

commodities

materials included in conflict commodities, etc.

Activities incountries
experiencing
conflict

Death or injury cause by providing of profits toorganizations that engage in military force or otherhuman rights violations

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Affected Group

Priority

Risk

Issue
Involvementwith antisocial
forcesConditions of enslavement due to transactions with
antisocial forces

2. Prevent and mitigate adverse human rights impacts (Foundational
Principle 19)

The measures to prevent and mitigate human rights risks that have been identified will be reflected in the Taisei Group
Sustainable Procurement Guidelines.
The entity in charge will be the Sustainable Procurement Council under the auspices of the Sustainable Management
Promotion Division, and training activities for Group executives and suppliers (affiliates) using e-learning, etc. will be
conducted on an ongoing basis.

Refer to:”Sustainable Procurement Guidelines”

3. Track the effectiveness of the response (Foundational Principle 20)

The viability of the HRDD process will be confirmed by opinion surveys conducted to confirm observance of the
procurement guidelines, in addition to interviews, lateral deployment of excellent precedents, interviews with foreigntechnical trainees etc., in order to improve the level of the overall supply chain.

4. Provide information and communicate externally (Foundational Principle
21)

Regular reports regarding the status of implementation of the HRDD will be presented to management meetings,
meetings of the Sustainability Committee and the Board of Directors, and will be disclosed on the official website and inintegrated reports.

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RemedyTaisei has set up a whistleblowing system that are particularly geared toward Taisei Group employees, Group companies
and directly contracted suppliers. And as well as It has set up a “Contact” on our official website stakeholders including local
communities. We respond appropriately to any grievances.

Copyright TAISEI CORPORATION All Rights Reserved.

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https://www.taisei-sx.jp/▎Results of human rights risk mapping[Legend] Group category for risk exposure● Workers at domestic offices● Activities in countries experiencing

High

conflict● Conflict commodities● Bribery and corruption● Workers at overseas offices● Civic order (safety of local residents)● Workers at suppliers● Local community● Long working hours● Involvement with antisocial forces● Health and safety (safety and hygiene)● Health and safety (industrial accidents)● Health and safety (safety and hygiene)● Immigrant labor● Forced labor / human trafficking● Discrimination in the workplace (lumber,aluminum, stone, steel)● Child labor / youth labor● Access to land / forced relocation● Wages and welfare benefits● Money laundering and transparency● Relations with countries with low- level

Impact on human rights

awareness of human rights● Freedom of association● Rights of local residents● Personal information / privacy● Use of natural resources● Wages and welfare benefits● Discrimination and harassment (in theworkplace)● Wages and welfare benefits● Discrimination (in hiring)● Discrimination and harassment (in theworkplace)● Immigrant labor● Freedom of association● Disciplinary action● Discrimination (in hiring)● Freedom of association● Disciplinary action● Customs, etc, in country of operationand local community● Child labor● Health and safety (hazardous

substances spills, etc.)● Customs, etc, in country of operation

Low● Disciplinary action● Customs, etc, in country of operationand local communityand local community● Freedom of speech and expression

Low

Connection to Taisei

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

Policies and Basic Approach
Achievements

Goals and Targets

Sustainability Governance and Oversight

Data

Realization of an Attractive Working Environment That Is
Good to Work in
Policies and Basic Approach
The Taisei Group includes “Securing a Pleasant Working Environment” in the Group Action Guidelines and works to achievea work-life harmony through respect for diverse work styles and efforts to improve productivity.
In November 2021, the Taisei Group formulated the Group’s Human Resources Development Policy (Diversity and Inclusion
Policy), and is working to further strengthen the development of a workplace environment in which diverse human resources
can make the most of their abilities, taking advantage of not only gender, age, nationality, disability, sexual orientation andgender identity, religion, creed and values, but also diversity in their careers, experiences and work styles. In order tounderstand the state of employee engagement and to efficiently and continuously implement measures to improveorganizational issues, in May 2022 Taisei Corporation started an engagement survey (a motivation cloud provided by Link
and Motivation Inc.), replacing the previous employee satisfaction survey. Based on the top-down approach of the
management, we will recognize the gap between the values of the Company and its staff, strive for mutual understanding,and promote the realization of a rewarding and attractive work environment.
In fiscal 2022, in consultation with the employees’ union, we increased wages by raising salaries for all employees and byraising the starting salaries of new graduates. In the future, we will continue to emphasize diversity, fairness andinclusiveness, and work to improve the overall treatment of our employees to enhance their ease of work and job
satisfaction.

Risks and Opportunities
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The working-age population is decreasing due to the declining birthrate and aging population in Japan. In order to secure
workers, it is indispensable to utilize women, the elderly and foreign nationals. Taking advantage of initiatives for employeeswith diverse attributes (such as the promotion of active participation by women), as well as initiatives to promote diverse
work styles (such as support for balancing work with child care and nursing care), will lead to improved individual
performance and business growth.

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

Refer to:Action Guidelines for Taisei

Human rights Policy

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

Goals and Targets
KPIs

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Milestone and Performance
The number of female managers increased approximately 7 times from 39 in fiscal 2015 to 270 in fiscal 2021.
The number of female engineers in fiscal 2021 was 767 (738 in the previous fiscal year). The number of female
employees who work at worksites has increased significantly from 135 in fiscal 2014 to 202 in fiscal 2021.

2030 Goals for Women’s Participation and Advancement2024 target

2030 target

Ratio of newly hired female engineers

20％

25％

Ratio of newly hired female employees

25％

30％

‒

15％

Ratio of female engineers

KPIs

Performance
At the Diversity Management Training Program, which is aimed at leaders who have subordinates with diverse attributes,
training is conducted to learn how to nurture subordinates by making the most of their individuality. A total of 845
employees have participated in the program.
Since fiscal 2019, the percentage of male employees taking childcare leave has reached 100% for three consecutive
years, with the average number of days taken for childcare leave reaching 9.7 (as of the end of March 2022).
We will continue to provide information to support the keeping of work, childcare and nursing care, such as nursing careconsultation meetings and work-life harmony seminars to attend with a partner, in addition to disseminating various
systems such as the childcare leave system and short-time work hour system for child care.

KPI
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Health management overtime hours

Refer to:Materiality and KPIs

Medium-Term Business Plan

Human Rights Policy

Human Capital -For the Advancement of Management Capital
The Taisei Group poses the TAISEI VISION 2030 of which basic stance is “Achieving safety and security” and“Optimal utilization of `Human Capital,' `Technology' and `Intelligence.'” We believe that investing in human resources
is one of the most important investments. For our employees, we are promoting diversity and inclusion, aiming tocreate a comfortable working environment and a personnel and salary system that allow them to perform at their fullpotential in various areas.
In May 2022, we conducted an engagement survey (Motivation Cloud provided by Link and Motivation Inc.) for all
employees working at the Company. Under the top-down management approach, we recognize the gap between thevalues of the Company and its employees, strive for mutual understanding, and promote the creation of an attractive
and rewarding work environment, aiming to realize the TAISEI VISION 2030.

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

Refer to:Initiatives

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Sustainability Governance and Oversight
Promoted items

Activities

Promotion of work style

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

Childcare suppor

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

Nursing-care support

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

Support for time off

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

Various Systems

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

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Promoted items

Activities

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

other countries
Prevention ofchild labor:
Prevention offorced labor:

Taisei employs persons 18 years of age or older.

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

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

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

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

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Refer to:Materiality and KPIs

Medium-Term Business Plan

Human Rights Policy

Support for a Balance between Work and Family/Childcare
Taisei Corporation has put in place a variety of systems to help employees raise children in a better work environment,
including the Childcare System and Flexible Working Hours for Employees During Childcare.
We also support balancing work and nursing care by developing a support system that is more extensive than legallyrequired, including nursing care leave, and holding seminars.
Since 2016, we had placed particular emphasis on male involvement in childcare and, as one of its workstyle reform
policies, has targeted a childcare leave usage rate of 100% for male employees. We promoted this initiative on a companywide basis with the involvement of affiliated departments and superiors.
In April 2017, we joined the Ikuboss Corporate Alliance, a network whose goal is to nurture the ideal boss for the new age.
In addition, we received the Ikumen Enterprise Award 2016 as well as recognition for achievements based on the Act on
Advancement of Measures to Support Raising Next-Generation Children. As a result of implementing various measures that
include sending congratulatory messages to male employees and their direct superiors when the employee has had a childborn, encouraging the employee to take childcare leave, and enhancing the childcare leave system, the childcare leave
usage rate by applicable male employees reached 100% and the average number of days taken was 9.7days (as of the endof March 2022).
To support employees who have worries about balancing work and nursing care, we have established systems for nursing
care holidays and nursing care leave, etc. that exceed legal requirements, and also distribute an original nursing care guideand hold regular individual counseling sessions where employees can consult specialists free of charge. We also have acareful follow-up support system in which we hold online nursing care seminars during long vacation periods in which
employees can participate with their family members, as well as nursing care seminars that are open to participation by
specialist construction company employees at workplaces.

[PICK UP] Enhancement of measures to prevent employees from being
forced to leave their jobs to care for family members and holding of online
seminarsTaisei provides support for employees caring for their family members so that highly skilled employees can work
longer without having to leave their jobs to provide care. Since 2010, we have held caregiving seminars at the head
office to provide basic knowledge about nursing care and remote nursing care options.
In 2014, we expanded these seminars to branch offices and workplaces nationwide, and to date they have been
attended by approximately 2,343 employees. The seminars held at workplaces have been attended by both company
employees and workers.
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Initiatives to Improve Labor Standards
In order to fulfill its social responsibility as stated in the Group Action Guidelines, the Taisei Group has laid out initiatives for
its global business activities and ensures thorough compliance with the laws and regulations of the countries and regions
where it operates. In terms of labor standards such as wages and working hours, we comply with each country's minimum
wage laws and regulations and pay wages above those standards to ensure that we recruit and retain talented people toachieve sustainable growth. The average annual salary of the Group's employees in FY 2021 was JPY 9,635,000. We
actively hired a total of 302 new employees in FY2021.
In addition, we are enhancing our internal job posting system and a range of other systems to support the continued
engagement of our employees, so that each employee can maintain high motivation and demonstrate their full potential overa long period. We provide work descriptions in detail during the recruitment process to avoid mismatching. For young new
employees, we offer the opportunity for private interviews after joining the Company, including a trial of a mentor system insome cases.
In May 2022, we started an engagement survey, replacing the previous employee satisfaction survey. Based on the topdown approach of the management, we will recognize the gap between the values of the Company and its staff, strive formutual understanding, and promote the realization of a rewarding and attractive work environment. Note that the voluntary
turnover rate for full-time employees in FY2021 was 1.5%.

Promotion of Women’s Participation and Advancement
To further enhance its initiative to promote diversity, Taisei Corporation has formulated a “voluntary action plan on promotionof women to managerial and executive positions” as well as an “action plan on women’s active participation in theworkplace.” The aim is to promote a change to corporate culture, talent development, expansion of career advancement
opportunities, recruitment and development, creation of a pleasant workplace, and the like.

Refer to:Promotion of Diversity and Inclusion

Data

SocialData

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Enhancing Employee Potential

Policies and Basic Approach

Sustainability Governance and OversightAchievements

Data

Enhancing Employee Potential
Policies and Basic Approach
The Taisei Group includes "Striving to create value" in its Group Action Guidelines and emphasizes the importance of being
ahead of the times and striving to improve one's knowledge and abilities.
Taisei Corporation, under its basic educational philosophy of “meeting the changes and needs of the times, and fostering
professionals who are full of originality and capable of rising to the challenge of transformation,” carries out a wide range ofhuman resource development measures.
We offer a wide variety of human resource development programs to enhance expertise and provide support to obtaincertifications and improve management capabilities and other skills. In FY2021, the total time spent in training programs forskill development of all employees was 231,706 hours.

Refer to:Action Guidelines for Taisei

Sustainability Governance and Oversight

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Career Development Support
Taisei conducts various types of training in each phase after employees have joined the company in order to ensure that
personnel have specialist skills, creativity and so on. Training is conducted according to rank across all divisions, for all
personnel ranging from prospective employees slated for hiring to management personnel. Within each division as well,training to impart specialist knowledge and on-the-job training by experienced employees are conducted, in addition toannual training for young employees, training for management and global personnel, leadership development training forfemale employees and so on, in order to increase employee capabilities.
In FY2021, the time spent on training per employee was 26.7hours.

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

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

Support for Qualification Acquisition
Taisei Corporation helps all employees improve skills in their area of work, by supporting their acquisition of qualifications, inorder to develop engineers and managers with strong specializations.
The Company assists payment of test fees, registration fees, and renewal fees if employees pass tests for qualifications
designated as necessary to execute business. Rewards are also paid for qualifications that are in particularly need.

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FY2021
Construction work

Civil engineering work

First-class architect

Professional engineer

First-class building operation and management

First-class civil engineering works execution managing

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

Chief concrete engineer

Certified chief managing engineer for dam construction

DesignInternational

First-class architect

Licensed ArchitectFirst-class architect in structural design

Professional Engineer

First-class architect in facility design

Project Management Professional

US licensed architect

APEC Architect/Engineer

Development

Engineering

The Association for Real Estate Securitization certified
masterProfessional engineer

First-class plumbing work operation and management

Redevelopment plannerengineerFirst-class electrical work operation and management

Professional engineer

engineer

Real estate notary
Administration
Construction industry accountant

Registered real-estate broker

Data
Number of Public Qualification Holders
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https://www.taisei-sx.jp/（As of April,2022）

Number of Employees

8,667 Persons

First-class architects

2,552 Persons

First-class civil engineering construction management

1,877 Persons

engineers
First-class construction accountants

262 Persons

FY2021
Type ofCategory

Number of

ActualParticipation

Total

Trainingmajor

by type of

applicable

number ofrate(%)

hours ofhours

training

participant

participants

participants

training

per(Persons)(Persons)(hours)person(hours)Introduction
training for
new

all

321

321

100.0

12,438.75

38.75

172

172

100.0

3,999.00

23.25

103

103

100.0

2,394.75

23.25

57

57

100.0

883.50

15.50

54

54

100.0

1,046.25

19.38

employees

Step-Up
Training for
managers

Power-upmanagement
training
Training for
newlyappointed
generalmanagerTraining for
Businessleaders

Employees
who have
been
promoted

newlyappointed

Employees
who have
been
promoted

Employees
endorsedby thedepartment

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FY2021
Employees
Globalendorsedtrainingby the----department* Some of the training sessions that had been scheduled in FY2021 will be held in FY2022 in order to prevent the spread of the novel coronavirus.

Social Data

Copyright TAISEI CORPORATION All Rights Reserved.

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Health Management

Policies and Basic Approach

Sustainability Governance and OversightAchievements

Data

Health Management
Policies and Basic Approach
In accordance with the Taisei Group slogan "For a Lively World," the Group Action Guidelines clearly stipulate that “Taisei
personnel shall endeavor to maintain their mental and physical health, and superiors shall give due consideration to themental and physical health of their subordinates.”
In addition to maintaining compliance with the labor laws and regulations in each country, we have established anorganization for management and improvement and we are working to reduce excessive working hours in particular. Mattersrelating to workplace hygiene and reducing working hours for employees at the head office and branch offices are studied
and reviewed, and a Hygiene Committee has been established with the aim of preventing health problems and maintaining
and upgrading health.
In addition, the head office and each of the branch offices establish a Mental Health Policy and provide various types ofhealth support measures.

Mental Health Policy (excerpt)

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We have established a Mental Health Policy declaring that maintaining mental health is recognized as a serious issue
for ensuring the happiness of employees and their families and creating a vibrant workplace, and we are promoting
the following items.
1

Stress checks

2

Mental health3

Provision of training and information

4

Preparation of documents and manuals

5

Protection of personal information

Refer to:Action Guidelines for Taisei

Sustainability Governance and Oversight
Taisei Corporation has established Health Committees at the head office and each branch office, which are chaired by theGeneral Manager of the Human Resources Department (in the case of the head office) or the Chief of Branch (in the case ofa branch office). The Health Committee meets once each month with the participation of occupational health physicians,
health and safety managers, persons in charge of health promotion at each division, and branch executive members of theemployees' union. At these meetings, the administrator shares information on the status of employees needing healthrelated care with the personnel division, in order to conduct risk management with regard to employee health. The
administrator's superior also endeavors to determine the administrator's health and shares issues with the personnel
department.
The Health Committee discusses matters such as frameworks to support employee health and the improvement of
workplace environment while obtaining advice from occupational health physicians. The minutes of Health Committee
meetings are posted on the Intranet for all employees to view.

Achievements

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

Overwork prevention measures
In terms of measures to prevent overwork, Taisei promotes appropriate management of working hours and recommends
interviews and guidance by a physician for persons whose interview management time* exceeds a certain standard, in orderto maintain health and prevent serious illness.
* Interview management time: The "calculated time of interviews and guidance for employees working long hours, based on the Industrial Safety and Health Act" or"Taisei health management overtime hours" per month, whichever is greater.

Mental health
A health management site has been set up on the Intranet to provide useful information as necessary, including basic
knowledge on mental health, a manual on procedures for return to work, contacts for both internal and external consultation,
information on specific health guidance to prevent metabolic syndrome, information on subsidies for quitting-smoking
treatment costs (as a means of promoting a smoke-free environment at the Company) and health-related articles, in order tohelp employees obtain information related to health management.
We have set up a dedicated consultation desk for employees to consult external professional counselors (health welfare
professionals, clinical psychologists, etc.) responsible for health management and EAP. We also hold counseling sessions at
the head office and branch offices to encourage and provide the opportunity for employees to consult external professionalcounselors.
In addition, as initiatives for mental health education, we periodically provide training sessions and e-learning programs on
LINE Care for employees in managerial positions, and other self-care and related matters for general employees.

Stress checks

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In FY 2020, the stress check participation rate was 91.6%. Through participation in stress checks, guidance is provided to
employees determined to be under high stress, and active measures are conducted to improve workplace environmentswith high health risk values.

Refer to:Initiatives to correct long working hours

Global health maintenance activities
In an effort to maintain and improve the health of employees living overseas, Taisei conducts regular health check-ups for
personnel on overseas assignments and accompanying family members (prior to departure, during the overseas
assignment and after returning to Japan), and issues cautionary advisories regarding various diseases that are endemic to
the assignment location and infectious diseases that originate in the hygienic environment (malaria, dengue fever, rabies,
MERS, monkeypox etc.), as well as devising preventive measures in accordance with the actual situation in each country
and region (recommending various types of inoculations and antimalarial drugs) in order to reduce the risk of disease.
In addition, Taisei cooperates comprehensively with outside medical consultant firms to determine the basic medical
situation and health risks in the countries in which it conducts business, and gathers information in a timely manner on
illnesses and infectious diseases prevalent at work locations. Taisei has also established mechanisms by which various
types of support can be provided if needed in the event that an employee or family member receives outpatient care or is
hospitalized at a local medical institution.
With regard to the COVID-19 pandemic as well, Taisei has established a mechanism to enable online medical consultations
and examinations by the doctors at medical consultant firms, as well as a system for emergency medical transport inpreparation for the risk of severe illness. In this way, Taisei implements policies needed to place the highest priority on
maintaining and improving the health of employees on overseas assignments and their families.

Data

Social Data

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Thorough Management of Occupational Health and
SafetyPolicies and Basic Approach

Goals and Targets

Sustainability Governance and OversightAchievements

Initiatives
Data

Work in Thorough Management of Occupational Healthand Safety
Policies and Basic Approach
The Action Guidelines for Taisei Personnel and the Taisei Group as a Whole include efforts to maintain a safe and healthy
workplace environment and prevent industrial accidents. The Guidelines identify this as a crucial human rights issue thatshould be addressed to ensure the health and safety of all employees and suppliers, stipulating it in “4. Dealing with Human
Rights Issues” of the Human Rights Policy. In addition, the Human Rights Policy also states that the support should beobtained from business partners including customers and suppliers.
Moreover, “Achieving zero fatal accidents and zero serious accidents” is also listed as a key sustainability-related issue inthe Medium-Term Business Plan (2021-2023). Based on this health and safety policy that is applicable to Group employees
and contracted specialist companies, all construction-related personnel bring together technologies and promote efforts to
manifest safety on a daily basis.
At Taisei Corporation, we have established the Central Safety Committee, which deliberates on matters related to safety
management, prevention of environmental accidents, and safety, health and the environment of specialized construction
companies, and reports to the President. The Branch Safety Committee, which consists of the branch supervisory healthand safety managers, employees and the labor union, meets at each branch office, and regularly holds consultations withthe labor union. In close cooperation with the Taisei Corporation Safety, Health, and Environment Cooperation Association,
which is organized by partner companies throughout Japan, we hold the Thoroughgoing Safety Convention and Safety
Promotion Convention to prevent accidents and injuries.

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We are actively promoting the development and introduction of safety management and monitoring systems through the useof ICT and AI technologies, working together with partner companies to strengthen safety and health systems that resonate
with people working at construction sites, striving to improve and maintain a safety and health environment that gives
workers peace of mind, and aiming to become a company that is accepted by local communities with trust and empathy.

Risks and Opportunities
As the number of foreign workers increases with the aging of construction workers reflecting the aging population with low
birth rate in Japan, the establishment of a safety and health system is becoming increasingly important. In addition, while therise in natural disasters due to climate change and the normalization of extreme heat may lead to the risk of industrial
accidents, the development of technologies that contribute to ensuring the safety and security of construction worksites,such as the robotization of hazardous work and labor-saving through the use of digital technology, will lead to the Group’s
competitive advantage.

Policy / Commitment
Action Guidelines for Taisei: Securing a pleasant working environment, promoting partnerships with subcontractors andsuppliers
Human Rights Policy
Safety and Health Policy
Medium-Term Business Plan (2021–2023): To achieve zero fatal accidents and zero serious accidents

Refer to:Action Guidelines for Taisei

Human Rights Policy

Safety and Health Policy

Medium-Term Business Plan

Goals and Targets

KPIs

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Performance
We have established "Number of fatal accidents 0" as a KPI objective for FY 2023.
Between January and December 2021, there were 45 accidents that required time off from work (35 last year), resulting inan occurrence rate of 0.44 (0.35 last year) on a non-consolidated base. In addition, to our deepest regret, there was one
fatal accident.
An analysis of the accidents in 2021 reveals that “falls” are the most common type of disaster, followed by “drop and falls
from places less than 2 m height.” To ensure thorough safety and health management based on the TAISEI OHSMS*, we
practice thorough workplace patrols and safety education for workers. In FY2021, a total of 1,200 employees who work at
a construction site participated in various safety training programs.

Refer to:KPIs Materiality and KPIs

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

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Refer to:Initiatives

Sustainability Governance and Oversight
TAISEI OHSMS
aisei Corporation have established the Central Safety Committee where safety management, prevention of environmental
accidents, as well as issues related to the safety, health, and environment of specialized contractors are discussed andreported to the President. A Branch Safety Committee, composed of branch supervisory health and safety managers,
employees, and labor unions, is also held to communicate with labor unions periodically.
Based on our occupational health and safety management system “TAISEI OHSMS*,” we properly implement and operate
the PDCA (plan-do-check-act) cycle, and we conduct risk assessments (e.g., particularly when creating construction safety
and health plans and participating in Accident Prevention Council meetings after holding review meetings when acquiring a
construction project) and take necessary measures based on the results (e.g., have the head office and branches conduct
health and safety patrols at all sites where work is being done once construction starts) to mitigate residual risks in theworkplace. When a serious accident occurs, a disaster analysis will be conducted and the accident information will be
horizontally shared over the intranet and other media to prevent recurrence. We also provide safety education for thoseconcerned at construction sites to make sure workers comply with safety rules.

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

TAISEI Environmental Social Governance Report 2022-Nov. 151

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

Achievements
Worksite patrols
At Taisei, patrols are conducted to confirm the safety and hygiene status at construction sites. In addition to patrols by Taisei
employees and the owners and safety personnel of affiliates, the President himself visits and patrols construction sites
during National Safety Week to make sure that each and every employee and worker shares the company's strong
commitment to its "safety first" policy. In Fy 2022, the President patrolled construction sites at the Tokyo, Nagoya, Chiba andKanto branches. Following the patrol, President Aikawa provided instructions to business owners, workers and company
employees and instructed them to conduct thorough safety management based on the situation at each worksite, and asked
both employees and executives to work together to ensure thorough safety management. The worksite patrols by the
President are conducted to impress upon all employees, specialist company workers and suppliers through this action thefirm commitment to safety on the part of the company's top management.

President Aikawa on safety patrol

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

Awards system

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

Award Minister of Health, Labor and Welfare Award Incentive Award(for outstanding performance in securing a safe working environment)
Taisei Corporation / Joban Kaihatsu Co. Ltd. Special Construction Consortium Iwaki Shiritsu Sogoiwakikyoritsu
Clinics New hospital construction project
For exemplary performance in achieving no accidents during the entire construction period from September 2014
through March 2021, conducting risk assessments at the work planning stage, implementing double safety measures
for work that posed the risk of serious accident, use of IC chips to prevent contact of workers with heavy machinery,use of information and communications technologies to achieve high-level work management and process control
enabling rapid sharing of information, use of VR to provide training that gives a true sense of danger, and other active
efforts conducted with both originality and ingenuity.

Data
Safety Performance(Year)

2017

2018

2019

2020

2021

Reference) Frequency rate for all industries

1.66

1.83

1.80

1.95

2.09

Reference) Frequency rate for general construction

0.81

1.09

1.69

1.30

1.39

Frequency rate (Consolidated)

0.44

0.58

0.64

0.37

0.56

Frequency rate (Nonconsolidated)

0.41

0.43

0.62

0.35

0.44

Severity rate

0.22

0.14

0.26

0.34

0.08

TAISEI Environmental Social Governance Report 2022-Nov. 153

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

Employee safety education
We provide employee training to deepen their understanding on accident and disaster prevention, improvement of healthand safety awareness, and laws and regulations related to safety. Education is provided based on the job level of theemployees according to year of enrollment and job functions to provide basic knowledge necessary for their job roles. A
monthly Accident and Disaster Report is distributed on the intranet to share information including

Type of Education

Number of Participants

Basic safety training

530 Persons

Practical safety training

406 Persons

Administrator, supervisor and former manager training

150 Persons

Supervisor training

60 Persons

New employee introductory training (at time of hire)

54 Persons

Total

1,200 Persons

SocialData

Copyright TAISEI CORPORATION All Rights Reserved.

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Cultivation of Technical Staff and Securing of
Human Resources

Policies and Basic Approach

Goals and Targets

Sustainability Governance and OversightAchievements

Initiatives
Data

Cultivation of Technical Staff and Securing of Human
Resources
Policies and Basic Approach
At Taisei Corporation, we are focusing our efforts on disseminating and promoting the Construction Career Up System(CCUS)*, which makes it possible to objectively and continuously accumulate and confirm the experience and skills of eachand every skilled construction engineer, through cross-industrial, unified rules.
In addition to focusing on securing and developing workers who will support the construction industry in the future, we haveformulated a policy for a reduction in working hours, and are working to correct long working hours for staff and close
worksites on holidays. In addition, the Japan Federation of Construction Contractors (Nikkenren), to which the Company
belongs, has formulated the Guidelines for Reducing Overtime Work and the Action Plan for the Realization of a Five-Day
Work Week to strengthen industry-wide efforts to reduce overtime work. As a member company of Nikkenren, we aremaking concerted efforts to create a workplace where skilled construction engineers can work for a lifetime with pride.

Risks and Opportunities
The number of construction skilled workers (engineers) in Japan in 2021 was 3.09 million, and one in three is 55 years ofage or older, making it an industry with many elderly people. Accordingly, it is essential to improve the training and treatmentof the next generation of skilled workers. In addition, the construction industry's working hours are approximately 320 hours

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longer per year than the average for all industries, raising questions once again about how attractive the conditions are that
Taisei Corporation can offer to engineers and workers at worksites.

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

Refer to:Action Guidelines for Taisei

Medium-Term Business Plan

Goals and Targets
KPIs

Milestone and Performance
In June 2021, we formulated the CCUS Dissemination and Promotion Roadmap (FY2021 to FY2023).
In line with the Japan Federation of Construction Industry's new targets, we target achieving 100% of the three indicators,
the registration rate of business operators, the registration rate of skilled workers, and the employment history
accumulation rate, by the end of FY2023. We also set yearly goals to reach these targets.

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As of March 2022, the registration rate of business operators was 90%, the registration rate of skilled workers was 81%,and the employment history accumulation rate was 79%.

KPIs

We have formulated Roadmap to FY2024 for “addressing long working hours.”
We set annual stepwise targets of “health management overtime hours (total of statutory overtime working hours andholiday working hours),” “regular leave and compensatory leave,” and “closures of worksites.”
Then, we have worked under the leadership of internal consultation bodies including the Committee for the Reduction ofWorking Hours, etc.

KPIs

Milestone and Performance
The number of employees who took“regular leave and compensatory leave” for 104 days a year (equivalent to 4 weeks
and 8 days off) increased to 96.8% of the total (95.7% in the previous fiscal year). “Health management overtime hours”
averaged 42.4 hours per month (42.5 hours in the previous fiscal year). For“closures of worksites,” we set a goal of“closed eight days in four weeks” and are working to reform the way we work.
All employees will continue to discuss, select, and implement specific actions to reduce working hours in accordance withthe situation in their respective workplaces. We will also arrange the activities that have been effective in reducing working
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hours to be spread horizontally across the entire company and established as ongoing activities.

Refer to:Materiality and KPIs

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

Refer to:Initiatives

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

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

Achievements
Efforts to Address Long Working Hours

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

Dissemination and Promotion of Construction Career Up System (CCUS)
We established the CCUS Promotion Roadmap (fiscal 2021–2023) in June 2021. In accordance with the new target of the
Nikkenren, we have determined to achieve 100% for three indicators, namely the service provider registration rate, skilledworker registration rate and working history accumulation rate, by the end of fiscal 2023, and have set annual targets toachieve it. We will continue promoting CCUS and encourage our cooperating companies (suppliers) to register more service
providers and skilled workers.

Worksite registration rate of CCUSUNIT
the registration rate of business
operators
the registration rate of skilled workers
the employment history accumulation
rate

2020

2021

%

83

90

%

71

81

%

67

79

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

Securing and Developing Human Resources for Construction Workers

Establishment of Various Foremen Systems
Taisei Corporation has introduced certification systems (System for reward to excellent civil engineering skilled workers,
systems for first-class foremen and highest quality foremen in building construction), in order to promote “securing anddeveloping skilled construction workers who will support the industry in the future” and “improving their working conditions”.
In the civil engineering field, the system for rewards for excellent civil engineering skilled workers, under which a reward ispaid to the workers with excellent construction skills who contribute to construction work at the sites of Taisei Corporation, is
introduced to improve the overall capabilities, including quality, safety and skills.
In the building construction field, a system for the highest quality foremen was newly established and has been put into
operation upon partial revision of the first-class foremen system during FY2015 to further improve the foremen's construction
management capability, including quality, skills and safety to strengthen the production system.

Data

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

Time forCategory

Name ofAmount ofsystempayment

certification
Subject/ Number ofcertifiedStart ofsystempersonsCivilskilled workers

2,000 perAnnually /Skilled workers who meet

January

engineering(BMT*)

day

781 workers

the specified requirements

2013

including qualifications All
over Japan
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Time forCategory

Name ofAmount ofsystempayment

certification/ Number ofcertifiedStart ofsystempersons

Building
construction

Building
construction

System for firstclass foremen(partially revised)
System forhighest quality
foremen

1,000 perAnnually /day

854 workers

3,000 perAnnually /Novemberday

67 workers

2015

SocialData

Copyright TAISEI CORPORATION All Rights Reserved.

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Ensuring Quality and Improving Technology

Policies and Basic Approach

Goals and Targets

Sustainability Governance and OversightAchievements

Initiatives
Data

Ensuring Quality and Improving Technology
Policies and Basic Approach
At Taisei Corporation, we have established the Quality Policy, and each department (Building Construction Division, Civil
Engineering Division, Design Division, Engineering Division, Nuclear Facility Division, etc.) has set individual policies toefficiently promote production activities. Each division and group company receives ISO 9001 certification, carries out quality
management, and prepares manuals and implementation guidelines for each Civil Engineering Division and Building
Construction Division. We are working closely with all relevant divisions to ensure proper quality control, eliminate defects
caused by quality, conduct customer satisfaction surveys after delivery, and build better relationships with customers.

Risks and Opportunities
While there is a decrease in the number of skilled engineers due to the aging population with a low birth rate in Japan, an
increase in natural disasters, and the risk of a decline in quality control capabilities due to the normalization of intense heat,etc., the development of technologies that contribute to the productivity improvement of construction worksites, triggered by
the use of robots and digital technologies, will enhance the competitive advantage of the Taisei Group.

Policy / Commitment

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

Refer to:Action Guidelines for Taisei

Quality Policy

Medium-Term Business Plan

Goals and Targets

KPIs / Performance

Building Construction Division

In the Building Construction Division, each branch conducts a questionnaire survey on customer satisfaction. The survey
questions are on a five-point scale, and include those on workmanship, usability, and worksite office management during
construction. The satisfaction rate in fiscal 2021 was 90.0%.
For low scoring items, we analyze their causes, establish countermeasures, and reflect them in post-construction review
meetings. In this way, we aim for further improvement and the establishment of good relationships with customers.

Civil Engineering Division

The Civil Engineering Division sets customers’ evaluation scores on the construction work as an indicator of customer
satisfaction. Adding to that, the division conducts customer satisfaction interviews. The satisfaction rate in fiscal 2021 was
97.6%.

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Each branch reflects the research results in the postconstruction review for further improvement. Going forward, the Head
Office and branches will continue working as one for better customer satisfaction.

KPIs / Performance

As an index to measure the results of technological improvement, we visualize performance with productivity per person(sales/number of staff) to raise each staff member's awareness on productivity. In this way, we are working together as
one group to improve productivity.
Productivity in fiscal 2021 was ¥65 million, down from the previous year (¥67 million in the previous fiscal year). Due to
COVID-19, which started expanding in 2020 all over the world, working style innovation including telework and online
meetings accelerated. Meanwhile, there were discussions regarding the suspension of construction work with customers
and the postponement of onsite tours, the relationship with our customers and people who work at construction sites wasquestioned during the year.

Refer to:Materiality and KPIs

Initiatives
ISO9001
Productivity Improvement Promotion Headquarters ([Nikkenren] Japan Federation of Construction Industry)
International Committee ([Nikkenren] Japan Federation of Construction Industry)

Refer to:Initiatives
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Sustainability Governance and OversightUnder the slogan TAISEI QUALITY®, the Group as a whole strives to provide customers with safe and secure construction
products and aftersales service under a quality control system.
Each of the divisions and the Group companies has obtained ISO9001 and implements certified quality management.

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

Refer to:Action Guidelines for Taisei

Quality Policy

Quality Policy of each Division

Building Construction Division
We established the “Construction Quality Management Standards” in April 1984 to realize quality assurance in theconstruction business and have promoted quality management according to a consistent assurance system encompassing
the entire process from receiving order, construction to after-sales services.
Later, we obtained ISO9001 certification by 1997, and have realized quality management conforming to the certification.
Upon transitioning to ISO9001: 2015, we positioned the “Construction Work Standards” established in 2008 as an equivalent
to a quality management manual, and have ensured quality management by implementing workflow according to theStandards. Based on the current Medium-term Business Plan (FY2018-FY2020), the Building Construction Division has laid
down a Quality Policy declaring that it will satisfy and win the confidence of customers by continuously providing high-quality
construction products and related services to meet the needs of customers and society.

Civil Engineering Division
In order to provide high-quality civil engineering structures based on customer needs, we bring together our collective
wisdom and organizational capabilities as a general construction company and pursue the quality and service that will
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satisfy our customers by faithful and prompt cooperation of all parties involved in the construction project.
To further improve customer satisfaction, we continuously improve the effectiveness of our quality management system for
more effective operation.

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

Precisely understanding customer needs and providing the right solution

2

Fostering human resources who can offer advanced services

3

Ensuring compliance with laws, ordinances and regulations

4

Appropriate operation, continued maintenance and management of the quality management system

Design Division
The Design Division obtained ISO9001 certification in March 1997 for both the corporate Design Division and design
departments in eight branch offices combined, allowing us to establish a mechanism to ensure design quality in all
departments across the country. Since then, we have built a mature quality management system by continuously following
the PDCA cycle.
Every year, we continuously review the project processes in cooperation with the sales departments and the Building
Construction Division and reflect the results in the Construction Work Standards and the quality system of the Design
Division. While implementing integrated quality management together with the Building Construction Division from upstream
to downstream, we established the Taisei Corporation First Class Architect Office for Construction Supervision in 2016, andare supervising construction work with an independent authority.
With the rapid adoption of information and communication technologies and associated changes in the way we work, newrisks are emerging and system review is becoming ever more necessary.
The Design Division obtained BS7799 (now ISO27001) in June 2002 as the world's first construction industry player toobtain a certification for information security management systems. It promotes comprehensive risk management throughISO activities in the areas of quality, environment and information security.

Nuclear Facilities Division
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The quality policy of the Nuclear Facilities Division under the corporate Quality Policy is “to improve customer satisfaction
through the provision of design, investigation, research and development services, verification tests and technical support
for nuclear-related facilities and to contribute to the safety, reliability and environmental preservation of nuclear-related
facilities.”
The Division is capable of meeting quality assurance needs of individual customers including power companies byconforming to the “Rules of Quality Assurance for Safety of Nuclear Power Plants: JEAC4111” (The Japan Electric
Association), “Guidelines for Quality Improvement of Analysis Related to Application for Permits and Approvals for Nuclear
Facilities” (Japan Nuclear Safety Institute), and “Quality Assurance Requirements for Nuclear Facility Applications (NQA-1)”(The American Society of Mechanical Engineers: ASME), etc., as necessary.

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

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

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

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

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

*

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

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

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

Educational Supporter System (Civil Engineering Division)
Under the “educational supporter system” introduced in 2009, educational supporters appointed from among employee's
with experience as construction site managers check the progress of OJT education of young employee's and provide
support and guidance. The Civil Engineering Division strengthens employee's management capability to reinforce
productivity and the production system, in addition to “improvement of the working environment” and “securing of humanresources.” Specifically, under the goal of “increasing the employee's capabilities at production sites,” the “On the Job

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Training (OJT) education” is introduced and operated to enhance the capabilities of process management, design,
estimation, negotiation and action, among others.

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

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

Data
ISO Acquisition Status

Certification Name

Certifying Body

TAISEI CORPORATIONEMS*1

ISO14001:2015

JTCCM MS

Civil Engineering Division

QMS

ISO 9001:2015

JTCCM MS

Building Construction Division

QMS

ISO 9001:2015

JTCCM MS

Design Division

QMS

ISO 9001:2015

JTCCM MSEngineering Division

QMS

ISO 9001:2015

JTCCM MS

Nuclear Facilities Division

QMS

ISO 9001:2015

JTCCM MS

EMS

ISO14001:2015

JUSE-ISO Center

QMS*2

ISO 9001:2015

MSA

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Certification Name

Certifying Body

EMS*3

ISO14001:2015

JICQA

QMS*4

ISO 9001:2015

JICQA

EMS*5

ISO14001:2015

JUSE-ISO Center

QMS*5

ISO 9001:2015

JUSE-ISO Center

EMS*6

ISO14001:2015

BCJ-SARQMS*6

ISO 9001:2015

BCJ-SARSEIWA RENEWAL WORKS CO., LTD.

QMS

ISO 9001:2015

MSA

J-FAST Co., Ltd.

QMS

ISO 9001:2015

MSA

Taisei-Yuraku Real Estate Co., Ltd.

TAISEI U-LEC CO., LTD.

TAISEI SETSUBI CO., LTD.

*1

TAISEI CORPORATION acquires 100% of EMS. (Scope: The head office and all 13 branch offices)*2

Production engineering department acquired QMS.

*3

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

*4

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

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

*6

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

Copyright TAISEI CORPORATION All Rights Reserved.

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Technical Development for Realizing a Sustainable
Society

Policies and Basic Approach

Goals and Targets

Sustainability Governance and Oversight

Initiatives

Achievements

Data

Technical Development for Realizing a Sustainable
Society
Policies and Basic Approach
The Taisei Group selects R&D themes with a view to contributing to the achievement of the SDGs. Under the supervision of
the Technology Committee chaired by the President, the Group promotes technological development with a focus ontechnologies that contribute to industries which are expected to grow.
In addition, to further enhance the intellectual property capabilities of the Group companies, we have included “managementof information and intellectual property rights” in the section “Fulfilling social responsibilities” of the Action Guidelines for
Taisei Personnel and the Taisei Group as a Whole, and also established the Taisei Group Policy on Intellectual Property. We
are steadily implementing intellectual property strategies, including the creation, protection and utilization of intellectual
property, the reduction of risks associated with intellectual property, and the strategic use of our brand.

Risks and Opportunities
The business environment is changing rapidly due to the intensification of natural disasters caused by climate change, theaging population with a low birth rate in Japan, global population growth and widening inequality, and the outbreak ofpandemics. And also, social issues, including the environment, and human rights, are mounting. For this reason,technological development in areas where markets have yet to become apparent may lead to resolving these issues.

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Resolving social issues through the creation of innovation that goes beyond conventional ideas will lead to the creation of
new value for the Taisei Group.

Policy / Commitment

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

Refer to:Action Guidelines for Taisei

Policy on Intellectual Property

Medium-Term Business Plan

Goals and Targets
KPIs

Performance

To contribute to the development of industry, we are promoting management that emphasizes intellectual property. We are
implementing strategic management and utilization of intellectual property in general, including copyrights andconstruction and business knowhow in addition to patent rights.
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By actively developing and utilizing rights based on the intellectual property strategy, the Company has achieved a patentassessment rate of 88.4%, which is higher than that for all industry sectors of 74.9% (the average for the past three years
in Annual Report on Patent Administration 2021).
By creating intellectual properties with new value, we will contribute to society through the development of newtechnologies, technical support for workplaces, and the utilization of intellectual property through the tripartite integrationof our business strategy, research and development strategy, and intellectual property strategy.

KPIs

Performance

Improving ZEB performance is one of the priority issues in the Medium-Term Business Plan, and we are making every
effort to evolve and popularize ZEB/ZEF as an area where we can expect growth in the future. We have customers
understand our decarbonization efforts such as the utilization of natural energy. As a result, we had six orders to convert abuilding into a ZEB in FY2021.

Refer to:Materiality and KPIs

Initiatives
The Japan Intellectual Property Association
Construction Technology Development Committee ([Nikkenren] Japan Federation of Construction Industry)Engineering Work Operation Meeting ([Nikkenren] Japan Federation of Construction Industry)
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Refer toInitiatives

Sustainability Governance and OversightInnovation Management
In the Group Infrastructure Development Plan: Technology Development of the Medium-Term Business Plan, the Group has
identified as a key issue “To promote the technical development to solve environmental and social issues through open
innovation.” We are strategically investing management resources in “technical development contributing to industrial
sectors expected to grow, through a virtuous cycle for the economy and environment” as well as “technical development
where the Company has a competitive edge.”
Specifically, we are pursuing the development, efficiency, and cost reduction of new technologies in the following fields:
offshore wind power; logistics, people flow, and infrastructure; carbon recycling; housing and building, next-generation PV;
lifestyle-related industry; hydrogen; nuclear power; foods, agriculture, forestry, and fisheries; and resource circulation.
We are also developing special technology for applying to large projects and technology contributing to higher added valueand higher quality.

*Open Innovation refers to a methodology for innovation by mobilizing cross-organizational knowledge and technology.

Intellectual Property Strategy
Taisei Corporation has formulated the Policy on Intellectual Property, based on which we practice our Intellectual Property
Strategy.
We strategically manage and utilize all intellectual property including patents, copyright, construction and business knowhow to promote management that is focused on intellectual property. Regarding management of intellectual property, we
intend to improve operational efficiency through building a search function for our own patents and preparing a database formanaging patents.
We implement thorough risk management in all business processes to prevent and mitigate intellectual property-relatedrisks that may cause a material impact on business management, such as infringement of our rights or rights of others, andtechnology leakage. We have established the Rules for Handling Intellectual Property Information to ensure themanagement of classified information. We also take measures to reduce the risk of infringing the intellectual property rightsof third parties, such as making the technical departments and business departments thoroughly aware of other companies'
patent information.
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Achievements
Research and Development Activity
In order to respond to more sophisticated and diversified technical needs and increase the efficiency of investment into
technological development, we actively promote external alliances with universities and other research institutes, companiesof the same and different industries, etc. as well as open innovation activities.

Refer to:Taisei Advanced Center of Technology

Patents That Contribute to the Resolution of Social Issues
Article 1 of the Patent Act states that the “purpose of this Act is to encourage inventions by promoting the protection andutilization of inventions, and thereby contribute to the development of industry.” Taisei Corporation promotes business
management with a focus on intellectual property not only to secure its competitive advantage but also to achieve thisoriginal purpose, and strategically manages and utilizes all intellectual property including patents, copyright, construction
and business know-how.
In addition, we have been further enhancing the intellectual property capabilities of the entire Group by establishing systems
and exchanging information on intellectual property across the Group.
We also conduct training to ensure that employees are fully informed about this policy and utilize intellectual property
strategically in order to strengthen our competitiveness and improve our corporate value. In FY2021, we conducted
intellectual property courses for Group companies, technical departments in the head office and operations departments inbranch offices of Taisei Corporation as well as e-learning for all officers and employees, including the utilization of
application rights and a series of awareness raising campaigns about infringement.

For the Enhancement of ZEB Performance
A net zero energy building (ZEB) is a state-of-the-art building that achieves significant energy saving by using solar shading
and natural energy through ingenuity in construction planning, high heat insulation, and high efficiency. At the same time, it
greatly reduces annual energy consumption by generating energy through photovoltaic and other power generation
systems. By achieving ZEBs and making them popular, the energy supply demand structure is expected to fundamentally
improve. At the Taisei Group, we have set enhancement of ZEBs as a key issue in the Medium-Term Business Plan, and our
ZEB initiative is positioned to lead to the achievement of SDGs. As a promising sector to become a growth market going
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forward, we will make full efforts to evolve and spread ZEBs.
Specifically, we are focusing on (i) the Message from the President development of ZEB (Zero Energy Building) and ZEF(net Zero Energy Factory), (ii) the promotion of green renewal ZEB initiatives, (iii) research and development for thecommercialization of environmentally friendly concrete, including carbon-recycle concrete that fixes CO2 inside concrete,and (iv) the promotion of “T-ZCB (Zero Carbon Building)” (aiming to conduct Japan's first demonstration at the Group's
facility), which will reduce CO2 emissions throughout the entire lifecycle of a building, from the procurement and construction
stages to the operation stage,to net zero emissions in total.

Refer to:
For Realization of a Decarbonized Society

Taisei Corporation's Digital Transformation
In our Medium-Term Business Plan (2021-2023), we at Taisei Corporation recognize that we are heading “Toward an era
where digital transformation determines competitiveness.” As one of the key issues, we set the target of “To innovate
production systems, and reform workstyles through digital transformation (DX).” In this way, we are implementing companywide DX initiatives. Since the activity satisfied the certification standards set by the Ministry of Economy, Trade and Industry,
we obtained DX certification.
We will continue to working to achieve the medium- to long term vision TAISEI VISION 2030 “The Ever-Evolving CDE3
(cubed) Company: A pioneering corporate group contributing to the development of a resilient society where people can live
affluent and cultural lives,” and accelerating activities.

Refer to:See the Annual Report 2022 p.35“SDGs×DX Talk”

Data
Research and Development Expenditure (Consolidation)

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Research and development
expenses

FY2017FY2018FY2019FY2020

FY2021¥11.6billion¥12.4billion¥13.5billion¥14.2billion¥15.1billion

SocialData

Copyright TAISEI CORPORATION All Rights Reserved.

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Promotion of Supply Chain Management

Policies and Basic Approach
Achievements

Goals and Targets

Sustainability Governance and Oversight

Data

Promotion of Supply Chain Management
Policies and Basic Approach
For the Taisei Group, our subcontractors and suppliers are important business partners that are key to resolving social
issues such as the environment and human rights. In response to the recent establishment of international standards forsustainable procurement and social demands, in April 2022 we revised our Human Rights Policy and the Sustainable
Procurement Guidelines and requested compliance with them. Through these and other measures, we are making morethorough assessments of ourselves and our suppliers and are working to build effective sustainable procurement.
In addition to holding training and briefing sessions by class or divisions such as the Company's executives and employees,
chief of branch offices, procurement managers, project managers and overseas project sites, we hold briefings by the chiefof branch offices for business partners, e-learning training on human rights, environmental issues and other social issues, aswell as on-site audits and monitoring surveys. Through a variety of methods, we are working to strengthen suppliers'
capabilities and raise their awareness and effectiveness of sustainable procurement.
The plan for these activities, the results of their implementation, and future developments are discussed by the Sustainable
Procurement Council, which is comprised of managers from related departments (Civil Engineering, Building Construction,
Procurement and Safety), and reported to the Sustainability Committee.

Risks and Opportunities
It is a global standard for companies to address social issues such as the environment and human rights not only within theirown group but also across the entire supply chain, including subcontractors and suppliers. While there is a risk that our
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reputation may deteriorate due to the emergence of environmental and human rights risks, promoting sustainableprocurement by securing high-quality suppliers, working to resolve social issues throughout the supply chain, and actively
disclosing the status of such efforts will lead to improved competitiveness.

Policy / Commitment

Action Guidelines for Taisei: Promoting partnerships with subcontractors and suppliers, ensuring fair business transactions
Procurement Policy
Human Rights Policy
Taisei Group Sustainable Procurement Guidelines
Green Procurement Guideline
Medium-Term Business Plan (2021–2023): To promote the supply chain management aimed at solving environmental andsocial issues

Refer to:Action Guidelines for Taisei

Procurement Policy

Taisei Group Sustainable Procurement Guidelines

Human rights Policy
Medium-Term Business Plan

Goals and Targets

KPIs

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Performance

The Taisei Group's senior-level position holders participates in the Human Rights Due Diligence (HRDD) Subcommittee
and the Supply Chain Subcommittee of the Global Compact Network Japan (GCNJ), which consists of companies
participating in the United Nations Global Compact. In addition, Taisei Corporation has become a EcoVadis' registeredsupplier and started information disclosure in 2019.
Since 2016, we have periodically conducted a questionnaire survey on our suppliers' compliance with the CSR
Procurement Guidelines (current Sustainable Procurement Guidelines) and their management status of foreign technicalinterns.In 2021, we identified human rights risks in the supply chain and reported the introduction of human rights due
diligence, including measures to prevent and mitigate risks and monitoring surveys to confirm their effectiveness, to theBoard after deliberation by the Management Committee and the CSR Committee (current Sustainability Committee). In
2022, we will start implementing measures in accordance with the human rights due diligence process to prevent andmitigate human rights risks in the Group.
In FY2022, we will expand the scope of monitoring surveys to include suppliers of the Group companies. With our
suppliers, we are working to reduce environmental burden, prevent and mitigate human rights violations such as childlabor, and manage compliance risks, with the aim of achieving sustainable growth throughout the entire Taisei Groupsupply chain.

Refer to:Materiality and KPIs

Human Rights Due Diligence

Initiatives

United Nations Global Compact, “Human Rights,” “Labor,” “Environment,” and “Anti-Corruption”
ISO26000
EcoVadis
HRDD Sub-Committee (GCNJ)
Supply Chain Sub-Committee (GCNJ)

Refer to:Initiatives

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Sustainability Governance and Oversight
Sustainable Procurement Promotion Framework
We have issued the Taisei Group Sustainable Procurement Guidelines (Formulated in 2014, Revised in 2022) to familiarize
suppliers with the contents of their compliance with the guidelines. We also request that sustainability activities be
conducted in accordance with the guidelines.
The effort to raise awareness of Sustainable Procurement includes holding educational training and seminars tailored toindividual responsibility levels such as officers and employees at all levels, branch managers, procurement managers,
worksite managers, and overseas worksites, etc.; and providing suppliers with opportunities to participate in meetings with
branch managers, e-learning training, on-site surveys and questionnaires, etc., among various other activities. Plans andresults of these activities and future developments are discussed at the Sustainable Procurement Committee composed of
responsible personnel from relevant divisions including Civil Engineering, Building Construction, Procurement, and Safety
Administration, and reported to the Sustainability Committee.

Officer inchargeChief of Sustainability Division (Integrated)

Organ forSustainability Committee (Committee of the Board)

consultation-Important matters related to supply management that have been deliberated areproposed/reported to the Board via the Sustainability Committee.

Promotioncommittee
Secretarial

Sustainability Management Promotion Division, Sustainability Planning Department

Sustainable Procurement Committee-The committee organizes and conducts training and explanatory meetings, survey visits,
questionnaire surveys,and the like.

Taisei Group Sustainable Procurement
Taisei encourages its suppliers to conduct sustainable activities in accordance with the Taisei Group Sustainable
Procurement Guidelines. The guidelines are reviewed on an ongoing basis in accordance with changes in the environmentand social issues due to increased interest in these matters on the part of the general public.

*Supplier Reference :- Scope of supplier:Main Group Companies (Taisei Rotec Corporation, Taisei-Yuraku Real Estate Co., Ltd., TAISEI U-LEC CO., LTD., TAISEI SETSUBI CO., LTD., TAISEIHOUSING CORPORATION, SEIWA RENEWAL WORKS CO., LTD., and J-FAST Co., Ltd). Souyu-kai Mamber Companies- Souyu-kai:

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The organization of Taisei's main cooperating companies (about 620 companies) Safety, Sanitary, and Environmental Cooperation Association: Association
to which all the companies that enter Taisei's works sites belong(about 7,000 companies)

Refer to:Taisei Group Sustainable Procurement Guidelines
Utilizing the Green Procurement Guideline in Cooperation with Suppliers

Achievements
Risk Management/Assessment

Supply chain monitoring of Sustainable Procurement for Suppliers
Since 2016, we have been conducting regular questionnaire surveys for suppliers on compliance with our Taisei Group
Sustainable Procurement guidelines and on the systems for managing foreign technical interns. In the fiscal 2020 survey,
we broadened the traditional scope of around 50 companies centering on Soyukai, our proprietary organization for core
subcontractors, to approximately 1,700 companies with which we have constant business transactions. We are thus
conducting educational activity for a wider range of business partners. Based on the survey results, we selected some 50
suppliers that have or need to address social challenges including environmental/human rights issues and labor problems.
After considering and judging whether a site visit is required, we visited about 12 companies, and, while exchanging
opinions with the business owners and the like, requested to enhance sustainability activities and educate and instruct theirbusiness partners. In this way, we are striving to enhance efforts throughout the entire supply chain.
Meanwhile, we have developed an online system and conducted the questionnaire survey through it to improve the usability
and accessibility for suppliers regarding the survey.

Supply chain monitoring result (September, 2020)- Target companies:

Number of major* suppliers * 1,166 companies （Percentage of companies surveyed on acontract value basis: approx. 68.5%）- Survey method:

Progress of the following items, as set forth in the“Procurement Guideline”(1) Compliance with laws and regulations(2) Impartial and fair transactions(3) Respect for human rights
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Note : Suppliers are asked to observe the following in their activities to reduce and manage environmental impact.
1. Determination of energy usage and efficient use
2. Efficient use of resources
3. Preservation of water resources
4. Procurement of construction equipment and materials with low environmental load
5. Consideration for biodiversity, etc.
In addition, if the results of opinion surveys indicate that improvements are needed, an inspection visit is conducted for that
supplier and improvements are requested.

- Average score3.73 (Highest score;5) 74.6%- Survey results :In addition to disclosing the tally results on the public website, we visited a total of 12
companies (as of December 2020) to check the status of their efforts and to discuss future
improvements with them. (Due to the spread of COVID-19, visits planned for January 2021
and beyond have been postponed.)* Major suppliers: The major 1,645 Japanese companies which the organization of Taisei's main cooperating companies (Souyu-kai) and major cooperatingcompany.

the Survey on the Acceptance Conditions of Foreign Technical Interns
Taisei Corporation has established acceptance criteria for the foreign technical interns employed by suppliers, in order toensure smooth acceptance at workplaces and to enable high-level technical interns to be employed. Local supplying
organizations and cooperating monitoring groups are surveyed and information is provided to suppliers.
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In recent years, many foreign technical interns in the construction industry have come to Japan, but there have been reportsof various improprieties involving foreign technical interns. In the light of this situation, it is important that the outsourcers(prime contractors) for the companies employing foreign technical interns be able to determine the current situation.
Since FY 2017, Taisei Corporation has conducted regular surveys as part of its due diligence for foreign interns in order toassess and identify potential and actual human rights risks, and we have established a human rights due diligencemechanism to prevent or mitigate these risks. Moreover, when it is clear that negative impact with respect to human rights
has been produced directly in work processes or there has been complicit involvement, we endeavor to provide help basedon proper in-house or outside procedures.
In FY 2020, we asked about the status of employment of foreign technical intern trainees in our sustainability activities
survey, and responses were received from 219 companies that employ foreign technical interns.
We made follow-up visits to six companies to interview them directly and found no major human rights risks (inappropriate
collection of money, pay deductions, non-payment of wages etc.). Taisei has declared a policy (procurement policy) for
fulfilling our social responsibility to ensure that foreign workers can engage in their work under appropriate conditions interms of residential environment and working conditions (content of tasks, working hours, wages etc.).
We conduct regular fact-finding surveys of foreign technical interns and we will ensure that the employing companies foster
a better foundation for accepting these interns.

Overview of the Survey on the Acceptance Conditions of Foreign Technical Interns (September,2020)
Target companies :Number of major suppliers*
surveyed in FY2020;1,645 companies

Survey method :A self-check on the following items for companies accepting foreign technical interns,
regardless of whether they are being dispatched to Taisei Corporation(Conducted inconjunction with the sustainability activity survey):(1) Checking that employees are in possession of their own passports
and other items(2) There has been no inappropriate collection of monies such as
guarantee deposits(3) There are no discrepancies between the prepared technical internplan and the actual work(4) Appropriate payment of wages and deductions(5) Living environment, including dwellings(6) Status of social insurance enrollment(7) Assignment of instructors(8) Status of physical checkups(9) Troubles due to the internship or living arrangements.

Responses :Number of responding companies: 219

feedback :In the related opinion survey that was conducted, many responses suggested "sustainability
activities" and "major disaster response and activities to preserve the environment" as
initiatives that are currently insufficient at Taisei (and its subcontractors and suppliers).
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Efforts to Promote Sustainable Procurement of Materials and Equipment
Diverse raw materials including wood and stone are used in the construction industry. For raw materials whose place oforigin is a developing country, there is increasing societal concern regarding illegal sourcing (cutting), oppression of native
populations, forced labor and child labor and other legal and regulatory violations, environmental destruction, human rights
violations and so on.
For this reason, in January 2019 Taisei conducted a questionnaire survey of its major material suppliers, in order to confirm
their supply chains from raw material sourcing through delivery at worksites, and to determine whether there had been any
legal and regulatory violations, human rights violations, or other violations by the overseas companies in these supply
chains.
Based on the survey results below, in FY 2019 we visited the business partners who participated in our questionnaire
survey, as well as their wholesalers and trading companies related to wood materials, stone materials and tiles, to conduct afollow-up survey, and explained our Procurement Policy (and the Taisei Group Sustainable Procurement Guidelines) andrequested their understanding of our Sustainable Procurement activities. We also conducted interviews to exchange views
regarding the current status and future challenges of traceability.
In an effort to align the supply chain for wooden materials of wooden frames and wooden furniture in particular with therecommendations of NGOs on issues concerning the human rights of native peoples of deforested areas in Southeast Asia,
we discussed the current local situation and the future use of domestic timber and certified timber. We plan to continue toperiodically review these items and companies and to conduct surveys on an expanded basis.
* traceability survey: To make a production history and distribution channel traceable.

Overview of the Traceability Survey (January, 2019)
Target companies :43 major material suppliers handling wood, stone, ceramics (tiles), sand/aggregate (readymixed concrete), aluminum (fittings/hardware), iron (rebar/steel), and copper (electrical wires)

Survey method :(1) Confirmed the names and locations of the trading companies,
manufacturers and wholesalers, etc. in each supply chain, from thesourcing of raw materials to the delivery at worksites(2) Checked the overseas companies in the supply chain regarding thepresence of violations of laws and regulations, forced/child labor,long working hours, discrimination, consideration provided for
employee health and safety, appropriate payment of wages,
violations of the rights of indigenous people, etc.

Survey results :(1) At 32 of these 43 companies, it was possible to identify all of thecompanies in the supply chain, down to the original raw material
suppliers (wood, stone, sand/aggregate, iron).
(2) There were no cases of improprieties, such as violations of laws
and regulations at the overseas companies in the supply chains.
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Implementation of Sustainable Procurement Seminars

Employee online training and workshops
In October 2020, an online training course in the Sustainable Procurement Guidelines and global social issues in the supply
chain including human rights and labor issues was conducted for all employees including those in the Taisei Corporation
Procurement Division. Moreover, in September 2022, the Taisei Sustainability Handbook was prepared and distributed to all
Taisei and Group company employees to ensure a thorough awareness of the basic policy regarding sustainability, the
Human Rights Policy and so on. In addition, workshops were held in each department to ensure awareness.

Explanation of Sustainable Procurement by Branch Managers
At the annual Safety Conference (held every year in January) and other venues, each of the managers of all 12 branches inJapan explained the importance of Sustainable Procurement to business partners, and asked for their corporation in the
promotion of activities at each company.

Social Supply Chain policy which is communicated globally to all suppliers
Taisei Corporation conducts Sustainable Procurement Seminars to communicate its stance and policies regarding social
issues, with a particular emphasis on forced labor, child labor and other human right violations. These seminars wereconducted for our local worksites, local affiliates and local suppliers in Taiwan (2015), Singapore (2017), Vietnam (2018) andMyanmar (2019). The Sustainable Procurement Seminar held in November 2019 at the worksite for the construction of the
New Yangon Specialist Hospital in Myanmar was participated in by 10 people from four local suppliers. We presented an
explanation of the purchasing policy and the Taisei Group Sustainable Procurement Guidelines and held a survey and an
exchange of views.
An explanation was also given to the Taisei employees working at the site that day, and their understanding and cooperation
was requested with regard to the promotion of Sustainability activities in cooperation with suppliers at the workplace. As
some overseas locations pose a greater risk in terms of human rights and labor issues than locations in Japan, we plan tocontinue to hold Sustainable Procurement Seminars overseas. (In FY 2020, these seminars were canceled due to the
COVID-19 pandemic.)

Our suppliers by holding supplier training on social issues
Among the partner companies of Taisei Corporation branch offices, the Souyu-kai, an organization of key affiliates (both thenational Souyukai and branch Souyukai which is made up of members at individual branches), has established multiple
councils for discussions with Taisei, at which regular exchanges of views and training sessions are conducted. Exchanges of
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views focus on training successors at affiliates and activities to improve benefits, and the results are reflected in policy. In
addition, regular annual training in sustainable procurement is conducted for the employees of Taisei Group suppliers inorder to achieve sustainable procurement. In January 2022, the training introduced Taisei's sustainable procurement
activities that include efforts to resolve environmental issues and social issues including human rights issues, and continued
cooperation was requested.

Sustainable Procurement e-learning program (January, 2021)
Targetcompanies

All business partners

Number ofparticipants andparticipating

Total of 153 companies, 96 companies

companies
Other

In a questionnaire conducted in conjunction with the e-learning program, many respondents
raised “Business activities at the time of a disaster” and “environmental conservation
activities” as initiatives for which they are not putting in sufficient efforts.

Data

SocialData

Copyright TAISEI CORPORATION All Rights Reserved.

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Contribution to Local Communities

Policies and Basic Approach

Sustainability Governance and OversightAchievements

Contribution to Local Communities
Policies and Basic Approach
In its Taisei Vision 2030, the Taisei Group outlines its medium- to long-term vision as "a pioneering corporate groupcontributing to the development of a resilient society where people can live affluent and cultural lives" and includes amongits goals the achievement of a "Sustainability Transformation (Sx)" that will resolve sustainability issues through its core
construction industry activities.
As a basic approach to deploying these activities, Taisei has included "Communication with the Local Community" in its
Group Action Plan and works to establish a good relationship with local communities. Through our branches, sales offices,
construction sites, technology centers and so on in Japan and other parts of the world, we strive to conduct activities that will
make a social and cultural contribution while prioritizing the building of relationships of trust with regional and local
communities.
In addition, we indicate our approach in "Technical development for realizing a sustainable society," one of the materiality
factors relating to the Sustainable Development Goals (SDGs), and we provide support to researchers to contribute to thedevelopment of academic research and work to resolve issues facing society through technical development that will lead tothe resolution of sustainability issues. Taisei places particular emphasis on the three areas of "promoting coexistence withlocal communities," "conducting environmental preservation efforts" and "teaching the next generation and supporting
culture and the arts," in an effort to promote local communities and resolve sustainability issues.

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

Materiality and SDGs

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Sustainability Governance and Oversight
Collaboration with Stakeholders and Our Major Initiatives
Taisei promotes two-way communication with local communities and conducts community investment and autonomous
volunteer efforts to promote investment and development and create local jobs. In addition to establishing a leave ofabsence and vacation time mechanism to create a workplace environment that makes it easy for employees to engage involunteer activities in local communities, Taisei has also introduced an awards program to recognize the activities of
employees engaged in disaster recovery efforts.
Moreover, Taisei works to provide improved value for the regional community and promote local communities throughcooperation and collaboration with various stakeholders that include customers, local governments, Care International
Japan (an international assistance NGO), the Council for Better Corporate Citizenship (CBCC), the Japan NPO Center andother outside organizations and public and private entities. Through its membership in and support of various organizations,
Taisei works to help resolve sustainability issues.
As a company that conducts business activities in various countries and regions throughout the world, Taisei endeavors to
help to achieve regional sustainable development by hiring local workers in these regions and purchasing locally and so on.

Donations to activities that contribute to society and culture
At its branch offices, sales offices, construction sites and technical centers both at home and abroad, Taisei places particularemphasis on the three areas of "promoting coexistence with local communities," "conducting environmental preservation
efforts" and "teaching the next generation and supporting culture and the arts," and actively works to conduct activities tosupport local communities.
In addition, since it joined the Keidanren 1% Club of the Japan Business Federation, Taisei has provided funding equivalent
to approximately 1% of its current earnings to fund activities that contribute to local communities.

FY 2021 Community activities and volunteering investment costs
Unit: million JPY
Priority area

Major items

Costexpenditure(%)

Local society

Environmental protection
Academic / cultural
factors

Social welfare / health / disaster assistance / international

324

41.2%

Environmental protection, etc.

33

4.2%

Academia / education / culture

429

54.5%

contributions / sports support / local community, etc

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Priority area

Major items

Costexpenditure
(%)

Other

Human rights, etc.

1

0.1%

787

Total
Rate of contribution input

1.0%

to ordinary income

Refer to:“ESG Data”

Achievements

Social and Cultural Contribution activities

Copyright TAISEI CORPORATION All Rights Reserved.

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Social and Cultural Contribution activities

Striving for a World without Poverty
Establishment of the “Taisei Corporation International Student Scholarship”
Grants from the Taisei Corporation Public Trust of Funds for Natural and Historic Environments
Forest Creation Activities by the Forest Saver Project (FSPJ)
Support for Bread Sales as a Practical Activity Helping to Achieve Independence of People with Disabilities
The Satoyama Woodland Preservation activities
Support for Animal-Pathway & Wildlife Association and Animal-Pathway Research Society
Support for the Borneo "Ongaeshi" (Rewarding) Project using Vending Machines Equipped with a Donation
Function
Environmental Contributions through the "Taisei 1-Ton Club"
Establishment of The Taisei Foundation (General Incorporated Foundation)
Operation of “Galerie Taisei” to Spread Construction Culture
Support for "Taisei Cup Seirei-sen" Female Shogi Player Competition
Special Lectures at Yokohama National University
Participation in “Riko-challe” to Encourage Women to Enter STEM Fields
Support for B & G Foundation “Experiencing Nature Project”

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Social and Cultural Contribution activities[ Local Society ][ Academic/Cultural Factors ]Striving for a World without Poverty
Programme regarding prevention and control of global health issue
In order to manage the risks of the spread of HIV among workers of large-scale construction sites triggering a decline in thelabor force and productivity as well as the contraction and instability of the market, a program to prevent HIV infection had
been provided through the HIV/AIDS Prevention Program for the Can Tho Bridge Construction Project (Bridge to Health
Project) for two years since 2006.
Since 2008, as a corporate member, we have continuously donated to and supported CARE International Japan (“CAREJapan”), an organization that carries out humanitarian aid activities, such as solving global education issues, with a focus onchild labor, education opportunities and disparities, and development aid. CARE Japan is a member of the NGO CARE
International, which carries out humanitarian aid activities in over 100 countries worldwide with the goal of creating a world
without poverty by providing emergency relief aid during disasters, supporting agricultural water enhancement projects, andhelping empower women and girls. CARE International has offices in over 100 countries, and provides specialized, longterm, comprehensive support not only in education, but also in the areas of empowerment, health, water and sanitation,
environment, and community development.

Refer to:“NGO Care International Japan”[ Local Society ][ Academic/Cultural Factors ]Establishment of the “Taisei Corporation International
Student Scholarship”

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Community investment
As a company with extensive business operations in Malaysia, Vietnam, Indonesia, Taisei Corporation provides Scholarshipsupport to foster reciprocal understanding between Japan and find solutions to issues affecting the community in Japan.
We established the Taisei Foundation in March 2017 in order to support the researchers who are realizing the Taisei Group
Philosophy. The Taisei Foundation will endeavor to play a role in improving Japan's construction technologies by supporting
new Supporting the development For FY2021, the four year, one Vietnamese students, three Malaysian student and one
Indonesian student were selected.

[ Local Society ][ Environmental Protection ]Grants from the Taisei Corporation Public Trust of Funds for
Natural and Historic Environments

Community investment
Since its founding in 1933, the Taisei Corporation Nature, History and Environment Foundation has contributed. This
foundation contributes to the conservation of the natural environment, which is the common heritage of present and future
humanity. For 28 years, we have granted subsidies of ¥15 million each year (for a total 668 grants) to projects conducive tothe preservation of the natural environment and others that are the common property of present and future humanity.

[ Local Society ][ Environmental Protection ]Forest Creation Activities by the Forest Saver Project (FSPJ)The Initiatives Developing the Fujisan Nanryo no Mori FSP scheme
received the Minister of Environment Award
Under the theme of “a manufacturing base where greenery, people and production come together”, Taisei Corporation
carried out the Fujisan Nanryo Industrial Park (Eco-Factory Mt. Fuji) development project in Fujinomiya City located at thesouth foot of Mt. Fuji.

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Developing the Fujisan Nanryo no Mori the Forest Saver Project (FSPJ) scheme, a sustainable action to nurture forests incollaboration of industry, government, academia, and local people, we have supported nurturing forests for more than ten
years from completion of construction. This is a pioneering initiative to balance economic activity and harmonious
coexistence with nature in that it adopts forest nurturing methodology from a medium- to long-term perspective and businessmodel with forest as its theme. We intend to utilize and deploy this as a tool to realize a nature coexisting society. In fiscal
year 2022, the initiatives developing the Fujisan Nanryo no Mori Forest Saver Project scheme received the Environmental
Award of the Minister of Environment Awards.

[ Local Society ]Support for Bread Sales as a Practical Activity Helping to
Achieve Independence of People with Disabilities
Creation of Helping to Achieve Independence in People with Disabilities
At the Taisei Advanced Center of Technology, weekly assistance for bread sales is provided to the training program toachieve independence of people with disabilities at the local activity home "Hikari" in Higashi Totsuka. Tours of the Center's
activities are also provided for local elementary, junior high school and other students, as well as members of the generalpublic.
(Note: Suspended from in February 2020 due to the COVID-19 pandemic.)[ Environmental Protection ][ Local Society ]The Satoyama Woodland Preservation activities
Employee volunteer program
Since 2007, Taisei Group has participated in the Tokyo Greenship Action Sustainability program conducted by the Tokyo
Metropolitan Government, working together with local organizations, NPOs and so on to preserve the mixed forest
satoyama and other natural environments in the Nanakuniyama Greenery Preservation Area in Machida, Tokyo.

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Employees put in physical effort to participate in building a safe and secure community, which also helps to broaden
communication with the local community.

[ Environmental Protection ]Support for Animal-Pathway & Wildlife Association andAnimal-Pathway Research Society
Mechanisms to facilitate employee engagement
Since 2004, Taisei Corporation has participated in the Animal Pathway (bridges for tree-dwelling rodents) Research Society,and has supported ecosystem conservation activities for tree-dwelling rodents, such as the dormouse, through development
and facilities for animal pathways and monitoring. As part of these activities, our group employees and their families
participate every year in volunteer activities to construct dormouse nest boxes. In our activities held, we donated theseboxes to the Dormouse Museum of KEEP, Inc.
We have conducted this environmental volunteering activity every year, with participants working to build a total of 2,945
dormouse nest boxes, thus far.

[ Environmental Protection ]Support for the Borneo "Ongaeshi" (Rewarding) Projectusing Vending Machines Equipped with a Donation Function
Employee volunteer program
Taisei has put in place vending machines that are equipped with a donation function at the Taisei head office and branch
offices, in order to donate a portion of sales to the NPO Borneo Conservation Trust Japan (BCTJ). This is in support of the
Borneo "Ongaeshi" (Rewarding) Project whose goal is to protect the Borneo elephant, a species that has become
endangered due to the reduction of tropical rain forests in Borneo. From FY2010 to as May 2022, we andprovided about ¥33
million as the 12-year total with a Donation.

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https://www.taisei-sx.jp/[ Environmental Protection ]Environmental Contributions through the "Taisei 1-Ton
Club"
Employee volunteer program
Since 2010, we have conducted this environmental contribution activity a total of 9 times, under the theme of“simultaneously achieving carbon offsets at the Company and in the homes of employees.”
In 2012 and 2015, we supported the Kamaishi Forest Owner's Association, which manages the mountain forests of
Unosumai District. On May 9, 2017, a large-scale wild fire occurred in the District due to a suspicious fire, resulting in theburning of 413 hectares as well as heavy damage. Accordingly, we continued our support through fundraising to donate thecost of planting saplings for the reforestation of Kamaishi Forest. We were also involved in the construction of Kamaishi
Unosumai Memorial Stadium, where trees that had been felled by the fire in Unosumai District were used to make woodenseats, public toilets, benches and louvers sunshades.

[ Academic/Cultural Factors ]Establishment of The Taisei Foundation (General
Incorporated Foundation)
Community investment for technology development for the next
generation
We established The Taisei Foundation (general incorporated foundation) in March 2017. To support researchers who realize
the Taisei Group Philosophy “To create a vibrant environment for all members of society,” we provide funds for academic
research in fields including construction, civil engineering, development, energy, the environment, and disaster prevention.
This is to support technology development for the next generation and improve construction technologies in Japan, andcontribute to the progress of academic research. The foundation publicly invites researchers who wish to be subsidized
once every year.
From FY2017 to 2021, we had 321 applications as the four-year total. We selected 61 projects to grant subsidies to, andprovided about ¥175 million as subsidies. It will be open to the public, and the research results will be widely publicized.

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https://www.taisei-sx.jp/[ Academic/Cultural Factors ]Operation of “Galerie Taisei” to Spread Construction Culture
Community investment for people of learn architecture
The Galerie Taisei was established in 1992 to spread construction culture by introducing the works (architecture andpaintings) of Le Corbusier, some of which have been inscribed on the World Cultural Heritage list. We lend items from ourcollections and cooperate in the planning of art exhibitions at museums such as The National Museum of Western Art inTokyo and the Fondation Louis Vuitton in Paris.
On our website, we have created a 3D-CG virtual gallery based on a museum plan which was designed by Le Corbusier but
could not be realized. His works of art are available for viewing in the virtual space. Other than the collections of art works by
Le Corbusier, we also lend the works of artists like Marc Chagall and Charles-François Daubigny to exhibitions.

Refer to:“Galerie Taisei”[ Academic/Cultural Factors ]Support for "Taisei Cup Seirei-sen" Female Shogi Player
Competition
Promotion of Women's Participation
Taisei sponsors the Taisei Cup Seirei-sen" competition for female shogi players in cooperation with the Japan Shogi
Association. Through this competition, Taisei strives to disseminate and promote Japanese traditional culture and helps topromote full participation by women in the workplace.

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https://www.taisei-sx.jp/[ Academic/Cultural Factors ]Special Lectures at Yokohama National University
Research and personnel training through the Cross Appointment Program
The Taisei Advanced Center of Technology holds special lectures each year at Yokohama National University. These special
lectures are held 13 times each year for students in their 3rd year or higher of study of the university's College of Urban
Sciences. Topics covered include technologies to prevent natural disasters, development of new materials and new
construction techniques, environmental measure technologies, national projects and so on. After commemorating the one
year anniversary of the signing of the Comprehensive Partnership Agreement in 2019, the university confirmed that it plans
to use the new Cross Appointment Program to further strengthen cooperation and promote research. As a result of thisprogram, Yokohama National University faculty members can also serve as Taisei technical advisors, and this is expected toaccelerate joint research in this field.

Major achievements
No. ofcourses

13

Major

Latest examples of national civil engineering projects and large-scale building construction, as wellcourseas disaster prevention activities and activities to resolve environmental issues, and introduction ofcontent

the technologies that made these possible. In addition, examples of the contributions ofconstruction projects to society and engineer ethics. In addition to lectures, site visits and visits totechnical centers are also conducted.

Examplesof specificcourses

The Construction Industry and Technical Development
Disaster Prevention Technologies for Construction
Coastal Zone Development and Disaster Prevention
New Materials and New Construction Techniques
Environmental and Energy Issues
Efforts to Preserve Biodiversity
Use of ICT Technologies in the Construction Industry

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No. oftechnical

13 (no. of instructors)

advisors
No. ofstudents

33 (FY 2021)

Cumulative

2021: 33

no. of2020: 24students

2019: 38

since 2019

(Prior to 2018, classes were held, but the number of students is unknown, so only the figures since
FY 2019 are noted here.)[ Academic/Cultural Factors ]Participation in “Riko-challe” to Encourage Women to Enter
STEM Fields
Supporting STEM education
Since 2015, Taisei has supported the "Riko Challenge" (“Riko-Challe”), a program to encourage more women to enter thefields of science and technology (riko in Japanese). The program is designed for female elementary, junior high and highschool students and is jointly sponsored by the Gender Equality Bureau Cabinet Office, the Education Policy Bureau of the
Ministry of Education, Culture, Sports, Science and Technology (MEXT), and the Keidanren (Japan Business Federation).
As part of this effort, Taisei participated in the “Summer Riko-Challe: Riko Work Experience” event.
In past years, students visited technology centers and construction work sites, but due to the COVID-19 pandemic, in 2021
the event was held in the form of an online round-table discussion. Following a description of the construction industry andpast projects undertaken by Taisei, young female employees who are involved in building construction and civil engineering
projects in various parts of the country talked about the projects they had worked on. And we answered many questions
from the attendees, and they appeared excited and inspired by a series of first-ever experiences.
We hope the event sparked strong interest in construction, leading to the development of future human resources tobecome involved in the construction sector.

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https://www.taisei-sx.jp/[ Local Society ]Support for B&G Foundation “Experiencing Nature Project”
Support for children's rights through programmes
The goal of the Blue Sea and Green Land Foundation (B&G Foundation) is to ensure a healthy upbringing for the children
who will be the leaders of the next generation, and to promote healthy lifestyles from infancy through old age, throughmarine recreation and other activities that provide the opportunity to experience nature.
Taisei sponsors the goals of B&G Foundation and has contributed to support its activities since 2019. In August of FY 2021,
Taisei sponsored the Wakasu Marine Sports Experience.
In accordance with the goal of eliminating disparities in opportunities to experience nature, which is one of the key missionsof the B&G Foundation, this workshop is designed to enable participation by all: children with disabilities, children's homes,
single parent households and so on. On the day of the workshop, approximately 40 children and staff from children's homes
in Tokyo gathered at the Wakasu Yacht Training Center to enjoy marine sports such as canoeing, stand-up paddling (SUP)
and boat excursions.
Taisei Corporation will continue to support the B&G Foundation's activities that bring smiles to the faces of children anddeepen ties with the local community.

Copyright TAISEI CORPORATION All Rights Reserved.

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Governance(G)Organization GovernanceFair Operating Practices

Corporate GovernanceThorough Compliance /Restructuring of the Group
Governance System+

Management of Information andIntellectual Property Rights+

Risk Management+

Copyright TAISEI CORPORATION All Rights Reserved.

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Contact Us

Profile Technology&Solution
HOME/

Profile/Site Map

日本語

Our Projects Investor Relations Sustainability

Corporate GovernanceCorporate Governance
ProfileOur Basic Approach to Corporate Governance
The Company aims to achieve sustainable development and improvement in the mid- to long-term value of the Company andits subsidiaries and affiliates (collectively, the “Taisei Group”) in accordance with the philosophy of the Taisei Group, being "tocreate a vibrant environment for all members of society" (the “Taisei Group Philosophy”) and the so-called “Taisei Spirit”,
which embodies our commitment to “Active and Transparent Culture”, "Value Creation" and "Evolution of Tradition."
The Company's fundamental approach to corporate governance is to conduct the management and decision-making of thebusiness in a swift, appropriate, fair and transparent manner in order to continue to grow as a corporation in a sustainable andsocially responsible manner.

Top Message

Our Structure of Values andPolicies

Corporate GovernanceCorporate Data

Please refer to our "Fundamental Corporate Governance Policy (PDF: 231KB)" on this website, which was establishedbased on the above basic approach, responding to each principle of the Corporate Governance Code.

Directors, Officers

Business Overview

Corporate Governance Structure
Overseas Network

History

Group Companies

Business Topics

Taisei Advanced Center ofTechnology

Our Projects

CareerPlease see the following PDFs for details.
Fundamental Policy to Enhance Operational Compliance Systems (PDF: 37KB)
Corporate Governance Report(PDF: 639KB)
Fundamental Corporate Governance Policy (PDF: 231KB)

Download Adobe® Reader®
To view a PDF file, you need Adobe Reader, which is available at no charge from the website of Adobe Systems Incorporated.
* Adobe Reader is a trademark of Adobe Systems Incorporated.

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Organization GovernanceCorporate GovernanceRisk Management

Sustainability Governance and Oversight

Initiatives

Achievements

Data

Corporate Governance
Click here for Corporate GovernanceRisk Management
Initiatives
Based on our Risk Management Policy and the Basic Risk Management Rules, we have established a risk management
system that is systematized throughout the Company. Under the supervision of the Board of Directors, we have also
developed an appropriate management system that addresses major ESG-related risks such as quality, compliance,
information, safety, and the environment.
In order to ensure the effective functioning of company-wide risk management and the appropriateness of business
operations, we implement advance risk measures stipulated in internal regulations and manuals. In the unlikely event that arisk should materialize, we take appropriate measures to minimize losses and ensure business continuity and the trust ofsociety.

Refer to:Fundamental Policy to Enhance Operational Compliance Systems

Risk Management Policy

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Sustainability Governance and Oversight
Promotion of Company-Wide Risk Management System
The establishment of compliance is the foundation of management and a major prerequisite for sustainable corporate
development. It is also essential to establish an effective Group company management system to maximize Groupsynergies. As the business environment changes rapidly and becomes more complex, it is becoming increasingly important
for the Group to strengthen internal controls as it seeks to expand its business domain.
At Taisei Corporation, we work to continuously operate the risk management system to appropriately identify and manage
risks associated with business operations. Under the risk management system, the President is the Chief Executive Officerof Risk Management and the Chief of the Business Administration Division serves as the Chief Risk Management Officer(CRO).
Each year, we take into account the risks that became apparent during the current fiscal year to review the risk management
for the following fiscal year through the PDCA cycle and verify the effectiveness of the risk management system.
Based on the Basic Risk Management Rules, each division of the Head Office, in cooperation with the branches, reviews
and identifies all risks associated with their business activities and selects the “Head Office-governed risks.” The “Head
Office-governed risks” are then narrowed down to risks that can possibly have a material impact especially on corporate
management. Such risks are selected as “key company-wide risks” and are subject to risk management across the entire
company. The “key company-wide risks” are determined by the CRO after deliberation by the Risk Management Committee
headed by the CRO. The President and the Board receive reports on the risks and confirm the operating status of the risk
management system and maintain the effectiveness of the system.

Company-Wide Risk Management System

Refer to:
Corporate Governance Structure

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Business and Other Risks
Taisei Corporation has in place a system to prevent and evade risks and pursue corrective actions.
Risks that may possibly have a material impact on corporate management are reported to the Management Committee andthe Board for comprehensively examining and determining the policy to handle such risks and reporting the policy under“Business and Other Risks” in the Securities Report.

Business and Other Risks⑴⑹

Market Risk
①Trend of the construction market②Fluctuations in prices of materials③Asset holding risk
④Retirement benefit obligations⑤Fluctuations in interest rates⑥Risks of related or incidental businesses⑵

Risk of violation of laws and regulations in the
Civil Engineering business and the Building

construction failure⑺ Risk of design flaw
⑻ Risk of process delays⑼ Risk of accidents⑽ Risk of information leakage andsystem trouble⑾ Risk of large-scale disasters

Construction business①Risk of violation of the Construction
Business Act and related laws and regulations②Risk of violation of the Antimonopoly Act⑶

Risk associated with quality due to

Risk of infringement of intellectual
property rights⑷

Risk of inappropriate financial reporting⑸

Risk related to anti-social forces⑿ Risk associated with the working environment⒀ Risk of violation of environmental laws
and regulations⒁ Risk associated with climate change issues⒂ Risk associated with the response tosustainability issues⒃ Credit risk⒄ Contract risk
⒅ Risk of the spread of infectious diseases⒆ Country risk

Refer to:Business and Other Risks (Annual Securities Report)

Climate Change-Related Risks

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In terms of climate change-related risks, we specify and assess risks based on various scenarios created and promote
initiatives in response to the TCFD Recommendations.

Refer to:Information Disclosure Based on the Recommendations by TCFD

Achievements
Initiatives for Business Continuity Planning (BCP)
In 2005, we established the Policy on Business Continuity in Times of Disaster to fulfill our responsibilities as a general
construction company that supports the infrastructure for social and economic activities, in addition to ensuring the lives andphysical safety of executives and employees and their families, even in the event of a large-scale disaster or accident.
Based on this policy, we formulate the business continuity plan (BCP) to be implemented in times of disaster, conductdisaster training at least once a year, in which all executives and employees of the Company and the Group companies takepart, and fully review and update the BCP based on the results of the training and other factors each time.
In recognition of our efforts to improve business continuity on a continuous and regular basis, we have obtained Resilience
Certification.
In addition, since 2015 we have conducted annual joint training with the Japan Federation of Construction Contractors andother organizations to establish a company-wide recovery support system that can respond immediately to requests forassistance.

Refer to:
Policy on Business Continuity in Times of Disaster

Response to Risks Related to Infectious Diseases andPandemics
New coronavirus (COVID-19) infections have been spreading widely throughout the world. In response, we have a system inplace where the CRO Secretariat leads the effort of centralizing information on the infection situation, etc., at worksites inJapan and overseas and having the entire Company take a crisis response in a comprehensive and prompt manner.

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Furthermore, in November 2020 we realigned the contents of the conventional “Novel Influenza Response Guidelines” andother guidelines so that they could be adopted for COVID-19 and any new infectious diseases and formulated the “BCP to
Be Implemented in the Advent of Infectious Disease.” Specific countermeasures against infectious diseases are
implemented as needed in line with the policies of the state and local governments and the guidelines of the Japan
Federation of Construction Contractors and others. At the same time, we are working to prevent the spread of infection by
developing an ICT environment and promoting initiatives to facilitate online meetings and telecommuting. We are also taking
appropriate measures for overseas construction based on the policies of the governments of each country.
In addition, we have carried out three doses of workplace vaccination for approximately 30,000 workers wishing to be
vaccinated (as of July 2022). They included all executives and employees (including contract workers and dispatchedworkers) of the Taisei Group and their families and staff of cooperating companies entering our worksites nationwide.

Major Infection-Prevention Measures at Taisei Corporation’s Office Work
Departments and Worksites
1

Ensuring handwashing, mask wearing, physical distancing with others and avoiding the 3Cs (closed spaces,
crowded places, close contact settings)

2

Temperature measurement and hand disinfection at entrances

3

Installation of acrylic partitions between seats

4

Prohibition of non-essential business trips and non-urgent travel within emergency action areas and priority action
areas

5

Continuing to implement telecommuting, dispersing workspace, staggered commuting, etc.

6

Active use of online meetings and ICT tools (avoiding business trips and face-to-face meetings)

7

Proactive cooperation with requests from the national and local governments to restrict activities, and prompt
contact investigations without waiting for an investigation by health centers, etc.

Information Security Measures
In the construction industry, sharing information with a large number of stakeholders, such as clients and contractors(specialized contractors, etc.), is essential in the construction process. Therefore, the Taisei Group has set forth“Management of information and intellectual property rights” under the Action Guidelines for Taisei Personnel and the TaiseiGroup as a Whole, and has implemented various measures related to information security. We have also established the“Policy on the Protection of Personal Information” and the “Code of Conduct on the Use of Social Media.”
At Taisei Corporation, we have compiled a booklet containing minimum rules to be observed and have been providing
education and guidance to all officers and employees as well as business partners. Since fiscal 2016, we have beenworking to strengthen the information security environment at our overseas sales offices and worksites. We also work tostrengthen measures against the risk of information leaks associated with telecommuting (working from home).
In addition, in order to prevent and mitigate intellectual property risks such as infringements of rights and technology leaks
that have a serious impact on corporate manage- ment, we implement thorough risk management in all business processes.
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To respond to the increasingly serious risk of cyber attacks, we established the Taisei-Security Incident Response Team(SIRT) and work to collect the latest information on cyber attacks and take measures to prevent cyber attacks in cooperation
with external organizations through the Nippon CSIRT Association, which we joined in March 2013.

Data

Governance Data

Copyright TAISEI CORPORATION All Rights Reserved.

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Thorough Compliance / Restructuring of the Group
Governance System

Policies and Basic Approach

Goals and Targets

Sustainability Governance and Oversight

Initiatives

Achievements

Data

Thorough Compliance
Restructuring of the Group Governance System
Policies and Basic Approach
The Taisei Group regards the implementation of compliance and risk management as one of the most important issues for
the Group management, and the Governance System Review Committee has established a group governance system andis thoroughly committed to compliance and the prevention of bribery and corruption. We have identified “To maximize
synergies by rebuilding Group governance systems” as a priority issue in our Medium-Term Business Plan, and arereviewing the Group governance structure and the basic framework for Group management.
In addition, as DX evolves, cybersecurity threats are becoming more serious and diverse each day. Taisei Corporation,
together with its Group companies and suppliers, is implementing a variety of measures related to information security andaiming for zero information security incidents in all business processes.

Risks and Opportunities
The establishment of compliance is the foundation of management and a major prerequisite for sustainable corporate
development.
It is also essential to establish an effective Group company management system to maximize Group synergies. As the

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business environment changes rapidly and becomes more complex, it is becoming increasingly important for the Group tostrengthen internal controls as it seeks to expand its business domain.

Policy / Commitment
Action Guidelines for Taisei: Compliance with laws and regulations, management of information and intellectual property
rights
Policy on the Protection of Personal Information
Code of Conduct on the Use of Social Media
Code of Conduct on the Basic Policy regarding Group Operation
Medium-Term Business Plan (2021–2023): To maximize synergies by rebuilding Group governance systems

Refer to:Action Guidelines for Taisei

Policy on the Protection of Personal Information

Code of Conduct on the Use of Social Media

Medium-Term Business Plan

Goals and Targets
KPIs

Performance

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In FY2021, we conducted compliance education for the owners of the suppliers (specialized contractors) at all 12
branches in Japan, as well as compliance training in an e-learning format for all executives and employees twice.
100% of employees participated in e-learning compliance training. Compliance training has been regularly proved. To
improve awareness, we will continue to educate employees on important topics.

Refer to:Materiality and KPIs

Human Rights Due Diligence

KPIs

Performance
The number of serious security incidents involving electronic information in FY2021 was 0 (1 in the previous fiscal year).
We provide education to all executives and employees on new threats, such as risks associated with cloud services andtargeted cyber-attacks, which have increased in recent years.In FY2021, information security education was conducted
three times.

Refer to:Materiality and KPIs

Initiatives
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United Nations Global Compact “Anti-Corruption”
Nippon CSIRT Association
Cyber Risk Intelligence Center—Cross Sectors Forum (CRIC CSF)
Information Security Subcommittee ([Nikkenren] Japan Federation of Construction Industry)

Refer to:Initiatives

Sustainability Governance and Oversight
Our Basic Approach to Corporate Governance
The Company aims to achieve sustainable development and improvement in the medium- to long-term value of theCompany and its subsidiaries and affiliates (collectively, the Taisei Group) in accordance with the philosophy of the TaiseiGroup, being “to create a vibrant environment for all members of society” (the Taisei Group Philosophy) and the so-called“Taisei Spirit,” which embodies our commitment to “Active and Transparent Culture,” “Value Creation” and “Evolution of
Tradition.”
The Company's fundamental approach to corporate governance is to conduct the management and decision-making of thebusiness in a swift, appropriate, fair and transparent manner in order to continue to grow as a corporation in a sustainable
and socially responsible manner.

Action Guidelines for Taisei Personnel and the Taisei Group as a Whole(excerpt)
Chapter 1 Active and Transparent Culture
1.

Cultivating an open corporate culture

2.

Securing a pleasant working environment

3.

Respect for fundamental human rights and diversity

Chapter 2 Value Creation
4.

Creating a vibrant environment for all members of society

5.

Striving to create value

6.

Pursuing customer satisfaction

7.

Ensuring and improving safety and quality
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Chapter 3 Evolution of Tradition
8.

Respect for traditions

9.

Promoting partnerships with subcontractors and suppliers

10. Promoting environmental conservation and creation
11. Communication with local communities
12. Conduct in the international community
13. Appropriate disclosure of information
14. Fulfilling social responsibilities(1)Mutual prosperity with society(2)Compliance with laws and ordinances

Refer to:Action Guidelines for Taisei Personnel and the Taisei Group as a Whole Rules on Enforcement of theCompliance System for the Action Guidelines for Taisei Personnel and the Taisei Group as a Whole
Fundamental Policy to Enhance Operational Compliance Systems

Compliance Promotion System
As shown in the diagram on the right, the Company has appointed managers, promoters and implementers in each division,and has established an internal compliance promotion system. In addition, the Compliance Committee, chaired by an
external expert (lawyer), has been established as the Special Committee that responds to consultations with the President.
We are working to heighten the awareness among all executives and employees and further ensure compliance by
establishing a system to set stricter disciplinary actions, etc., against any legal and other violations committed by executives
and employees and to call for compliance with the Antimonopoly Act, implementing a range of measures based on therecommendations by the Compliance Committee and compliance training in each division, and taking other steps.

Compliance Promotion System

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Whistleblowing and Consultation System
Based on the Whistleblower Protection Act, at the Taisei Group, we have established an internal whistleblowing system (theCorporate Ethics Helpline / Group Helpline /Whistleblowing System) in which executives and employees as well as external
parties (staff of partner companies [primary suppliers] that have a direct contractual relationship with the Company) can
report and consult on illegal acts including bribery and other corruption committed by executives and employees and actsthat violate (or an act intended to violate) the Action Guidelines for Taisei Personnel and the Taisei Group as a Whole, andwe have established consultation desks in-house and at an external organization (a law firm). The system also allows
anonymous reporting to obtain information clues on a wide range of violations. In addition, to enhance the effectiveness ofthe system, we actively conduct educational activities such as distributing the Help Line Cards summarizing the outline of
the system to all executives and employees, and introducing the contents and operational results of the system through elearning and Compliance Newsletter.
In response to reports received, we will investigate the facts of the report received and take corrective action as required. In
doing so, we ensure that the whistleblower's information is kept confidential and strictly follow internal regulations to ensurethat the whistleblowers are not treated disadvantageously for reporting. For external stakeholders who do not have a directcontractual relationship with the Company, our website provides inquiries on human rights,environmental issues and otherissues.

Flow of Internal Whistleblowing Based on the Helpline System
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Achievements
Compliance Education and Training
At Taisei Corporation, we conduct annual compliance training for all executives and employees to raise complianceawareness. In addition, to strengthen compliance across the entire Group, we regularly hold meetings for legal affairs
managers to share information and opinions on legal affairs issues with Group companies in Japan. We also hold groupcompliance hearings to confirm the status of compliance promotion and exchange opinions, and strive to ensure thoroughcompliance and promote communication.
Furthermore, compliance training is conducted annually for business partners (specialized contractors) and new employeesof the Soyukai* (Taisei Corporation's proprietary organization for core subcontractors) to ensure thorough compliancethroughout the supply chain.

Soyukai
Originated from the Harusamekai established in 1917, Taisei Corporation's organization for its core subcontractors was reestablished in February 2014 tostrengthen cooperation between the Company and Soyukai members. As of April 2022, approximately 700 companies have joined the organization. The
main purpose of the organization is to promote the improvement of construction capabilities and stable management of member companies throughcooperation with the Company's business.

Conduct Compliance Questionnaire (Annually)
The Taisei Group conducts the Compliance Questionnaire for all executives and employees with the aim of understanding
the current status and issues related to compliance and further promoting compliance.
The results of the questionnaire are analyzed, measures are considered, reported to top management, and disclosed to all
executives and employees through the Compliance Newsletter, and necessary measures are taken in cooperation withrelated departments to promote compliance.

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Education /Topics covered in recent years

training
Compliance

Risk management of Taisei Corporation

Newsletter

Anti-corruption (entertainment and gifts)(monthly)Construction Business License and Supervision Disposition under the Construction
Business Act
About the Taisei Spirit
Results of the compliance questionnaireE-learning training

Bribery, harassment and the whistleblowing system(twice a year)

Power harassment
Rules related to contact with other companies in the same industry and the in-houseleniency system, etc.
Corporate Ethics Helpline (whistleblowing system) and others

Political donation
As part of its social contribution activities, Taisei Corporation makes political donations when necessary. When making
political donations, we thoroughly comply with the Political Funds Control Act and conduct a rigorous review based onprocedures pursuant to our internal rules, namely, the “Code of Conduct on Relationship with Politicians and Disbursementof Expenses.” The total amount of political donations made during FY2021 was 18 million yen.

Anti-Corruption Policy
Taisei supports the anticorruption provisions of the United Nations Global Compact which it signed
in 2018. In accordance with Principle 10 of the Global Compact, Taisei includes “Ensuring fairtrade” “Maintenance of proper relationships with individuals or entities engaged in politics andgovernment” and “Dealing with people, associations or organizations engaged in anti-social
behavior” in its Action Guidelines for Taisei Personnel and the Taisei Group as a Whole, in order toprevent coercion, bribery, money laundering, obstruction of justice and the various other forms ofcorruption. This makes it clear that the Taisei Group and Taisei personnel shall not offer or promise any unjust money orgoods nor provide entertainment or gifts beyond the social norm to corporate clients and individual executives andemployees of the client, and shall not, in their dealings with politicians and government officials (including foreign
government officials), engage in activities that would violate criminal laws (such as those relating to bribery) or activities that
may be understood as such, or agree to unreasonable requests made by antisocial forces or organizations. We have alsoestablished a code of conduct with regard to the Act on Prohibition of Private Monopolization and Maintenance of Fair Trade
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https://www.taisei-sx.jp/(Anti-Monopoly Act) and also require employees to conduct themselves responsibly to ensure that there are no violations of
the criminal laws relating to bid-rigging, the Anti-Monopoly Act and so on.
To educate politicians and government officials (including foreign government officials) regarding the prevention of bribery, asmall booklet entitled “Quick Guide to Compliance” has been prepared and online education courses are conducted for all
employees, to ensure that they understand that bid-rigging and other acts that obstruct fair competition (a comprehensive
category that includes bribery and other corrupt practices) are strictly prohibited, in order to increase employees' knowledge
and awareness of the importance of preventing corruption.
With regard to relationships with foreign officials, for which particular caution is needed, in FY 2020 we introduced a precheck system as an anticorruption measure for foreign officials, etc., and we are working to completely eliminate corrupt
practices.

Impartial and Fair Transactions
At Taisei Corporation, we have set forth “Promoting partnerships with subcontractors and suppliers” under the Action
Guidelines for Taisei Personnel and the Taisei Group as a Whole, and declare establishing fair and reliable relationships with
our partners in the supply chain and conduct transactions on an equal footing.
Furthermore, we have set out Measures for Dealing with Anti-Social Forces and Organizations, stipulating that we will take aresolute stance against anti-social forces and will reject illegitimate demands. In order to eliminate anti-social forces we haveincluded a condition in our contracts, including the basic contract for specialized subcontractors, declaring that the supplier
is not an anti-social force and that if revealed otherwise, the contract may be canceled without notice.
In August 2020, we prepared and announced the Declaration of Partnership Building which incorporates prosperous
coexistence for the entire supply chain, new collaboration regardless of the company's scale and existing business
relationships, and observance of “Promotion Standards” as defined in the Act on the Promotion of Subcontracting Small andMedium-sized Enterprises. We disseminate our stance on impartial and fair transactions in connection with preventing
corruption to employees of the Company and Group companies as well as to our suppliers, including sub-contractors andintermediaries.
We also cover impartial and fair transactions in our CSR Procurement Guidelines and work to reduce risks so as not to get
involved in transactions with anti-social forces, corruption, bribery, and organizations engaging in inhumane labor.

Verification of Compliance with Laws and Regulations (Guidance)
To ensure the legitimacy of bids, Taisei Corporation operates an in-house system whereby the heads of branch offices
confirm that there are no inappropriate acts in the process of bidding operations, produce the documents, and keep all bids
on file.
Every year, the legal department verifies the legitimacy of bids and checks compliance with the Construction Business Act,
the Antimonopoly Act and the Subcontractors Protection Act.

Specific Measures for Compliance with the Antimonopoly Act
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Taking the fact seriously that we were indicted on suspicion of violating the Antimonopoly Act in connection with the Linear
Chuo Shinkansen construction project, we have implemented the measures indicated below based on deliberations by theCompliance Committee chaired by an external lawyer and resolution by the Board. We continued to operate and implement
the measures below in FY2021.

1

Revision and tightening of internal rules relating to contracts with competitors (September 2018)2

Reinforcement of procedures to confirm the appropriateness of the bidding process (September 2018)

3

Implementation of e-learning for all executives and employees (implemented every fiscal year since FY2018)

4

Implementation of training by an external lawyer for executives and employees in the sales departments and thetechnical departments that engage in operations related to taking orders (implemented every fiscal year since
FY2018)Tax Compliance
Taisei Corporation established its Tax Policy in August 2020 as a guideline for complying with tax laws and regulations andfulfilling its social responsibilities, and is striving to fulfill its tax obligations appropriately. In addition, since fiscal 2013, wehave conducted an annual e-learning program to raise awareness of tax compliance, and we are working to disseminate ourtax policy in relation to the contents of tax audits.
We are also working to reduce tax risks by encouraging all officers and employees to consult with the appropriate
department regarding different from usual transactions, etc.

Refer to:Tax policy

Thorough Awareness of Structure of Values and Policies
We created a portable card of the Structure of Values and Policies, which was updated in 2010, in an effort to spread andestablish it. Since FY2011, we have been conducting an e-learning program on our Structure of Values and Policies eachyear to further disseminate and establish the structure while relating it to social needs and internal efforts.
In FY2021, we conducted an e-learning program for employees on the Taisei Group Philosophy, the Taisei Spirit and theAction Guidelines for Taisei Personnel and the Taisei Group as a Whole, and the participation rate was 95%.

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Refer to:Our Structure of Values and Policies

Data
Review of Compliance with the Group's Action Guidelines and Handling of
Violations
The Taisei Group specifies in its Rules on Enforcement of the Compliance System for the Action Guidelines for Taisei
Personnel and the Taisei Group as a Whole (“Action Guidelines”) that, in the event that a regular employee or executive has
violated the Group's Action Guidelines (including anti-corruption, etc.), the facts are reviewed carefully and rigorously by the
Board of Directors or the Management Council, and disciplinary action is taken in accordance with in-house rules.
In the event of a serious violation of compliance against the Action Guidelines, we thoroughly implement measures toprevent the recurrence of the violation. We also strive to accurately ascertain the facts by investigating relevant factors,
including related persons, course of events, nature and details of the violation, amount of damage, and impact on persons ofinterest, and then report to relevant authorities as necessary.
The perpetrators are subject to necessary disciplinary action, including dismissal.
In FY2021, there were 30 cases reported via our Compliance Promotion Office and external contacts regarding complianceby TAISEI, its group companies, and subcontractors with whom we have contractual relationships, which were related toviolations of internal regulations as well as harassment cases.None of these cases had a significant impact on the
management of the Group. In addition, there were no cases of legal action or payment of fines or penalties based on corrupt
or anti-competitive behavior in our company.

Status of Compliance Reporting

Operational results of Whistleblowing and Consultation System

FY2019FY2020

FY2021

24 cases

28 cases

30 cases

Governance Data

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Management of Information and Intellectual
Property Rights

Policies and Basic Approach

Goals and Targets

Sustainability Governance and Oversight

Initiatives

Data

Management of Information and Intellectual Property
Rights
Policies and Basic Approach
The sharing of information with many clients, subcontractors (specialist construction companies, etc.) and otherstakeholders in construction projects is essential in the construction industry. The Taisei Group includes "Management ofInformation and Intellectual Property Rights" in its Group Action Guidelines, and Taisei implements various policies relating
to information security. In addition to establishing the Policy to Protect Personal Information and Codes of Practice for the
Use of Social Media, the Taisei Group has also established a Policy on Intellectual Property and faithfully implements
intellectual property strategies that include those to create, protect and use intellectual property, to reduce risks relating tointellectual property, and for the strategic use of brands. In addition, we have identified "Thorough Compliance andRestructuring of Group Governance System" as a part of Materiality (Important Tasks for the Taisei Group), and this has
been established as an important policy in the Taisei Group Medium-term Business Plan (2021-2023).
In addition, " Number of major information security accidents zero " has been established as a KPI objective. Taisei will
determine the impact of materiality on society and will clarify issues in accordance materiality and promote initiatives, inorder to resolve social and create value through business activities.

Refer to:
Policy on Intellectual Property

Policy on the Protection of Personal Information

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Risks and Opportunities
The establishment of compliance is the foundation of management and a major prerequisite for sustainable corporate
development. It is also essential to establish an effective Group company management system to maximize Groupsynergies. As the business environment changes rapidly and becomes more complex, it is becoming increasingly important
for the Group to strengthen internal controls as it seeks to expand its business domain.

Policy / Commitment
Thorough Compliance Restructuring of the Group Governance System: Compliance with laws and regulations,management of information and intellectual property rights
Policy on the Protection of Personal Information
Code of Conduct on the Use of Social Media

Refer to:Action Guidelines for Taisei

Policy on the Protection of Personal Information

Code of Conduct on the Use of Social Media

Goals and Targets

KPIs

Number of major information security accidents
Number of patent applications filed

Refer to:Materiality and KPIs

Thorough Compliance / Restructuring of the Group Governance System

Technical Development for Realizing a Sustainable Society

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Initiatives
Nippon CSIRT Association
Cyber Risk Intelligence Center—Cross Sectors Forum (CRIC CSF)
Information Security Subcommittee ([Nikkenren] Japan Federation of Construction Industry)

Sustainability Governance and OversightIntellectual Property Strategy
Taisei Corporation has formulated the Policy on Intellectual Property, based on which we practice our Intellectual Property
Strategy. We strategically manage and utilize all intellectual property including patents, copyright, construction and businessknow-how to promote management that is focused on intellectual property. Regarding management of intellectual property,
we intend to improve operational efficiency through building a search function for our own patents and preparing a databasefor managing patents.
We implement thorough risk management in all business processes to prevent and mitigate intellectual property-relatedrisks that may cause a material impact on business management, such as infringement of our rights or rights of others, andtechnology leakage. We have established the Rules for Handling Intellectual Property Information to ensure themanagement of classified information. We also take measures to reduce the risk of infringing the intellectual property rightsof third parties, such as making the technical departments and business departments thoroughly aware of other companies'
patent information.
In addition, we have been further enhancing the intellectual property capabilities of the entire Group by establishing systems
and exchanging information on intellectual property across the Group.
We also conduct training to ensure that employees are fully informed about this policy and utilize intellectual property
strategically in order to strengthen our competitiveness and improve our corporate value.
In FY2021, we conducted intellectual property courses for Group companies, technical departments in the head office andoperations departments in branch offices of Taisei Corporation as well as e-learning for all officers and employees, including
the utilization of application rights and a series of awareness raising campaigns about infringement.

Information Security Measures
At Taisei Corporation, we have compiled a booklet containing minimum rules to be observed and have been providing
education and guidance to all officers and employees as well as business partners. Since fiscal 2016, we have beenworking to strengthen the information security environment at our overseas sales offices and worksites. We also work tostrengthen measures against the risk of information leaks associated with telecommuting (working from home).In addition, inorder to prevent and mitigate intellectual property risks such as infringements of rights and technology leaks that have aserious impact on corporate management, we implement thorough risk management in all business processes.

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To respond to the increasingly serious risk of cyber attacks, we established the Taisei-Security Incident Response Team(SIRT) and work to collect the latest information on cyber attacks and take measures to prevent cyber attacks in cooperation
with external organizations through the Nippon CSIRT Association, which we joined in March 2013.

Data

Governance Date

Copyright TAISEI CORPORATION All Rights Reserved.

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External Evaluations/Participation in
Initiatives/Sustainable Finance

External Evaluations

Participation in Initiatives

Sustainable FinanceOur activities aimed at developing a

We Introduce of our main Initiatives

We Introduce of Taisei Green Bonds

more sustainable society have earned

and Groups Taisei is involved with.

and Sustainability Linked Loans

the Taisei Group high marks fromnumerous external organizations.

Copyright TAISEI CORPORATION All Rights Reserved.

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External Evaluations

External Evaluations
Major Selection and Certification
FTSE Blossom Japan Sector Relative Index
Taisei Corporation listed on the FTSE Blossom Japan Sector Relative Index.(As of Apr.2022)
An investment index designed by FTSE Russell, a wholly owned subsidiary of the London Stock Exchange Group. This
index reflects the performance of Japanese corporations that demonstrate strong Environmental, Social and Governance(ESG) practices relative to their sector. In addition, to encourage the transition to a low-carbon economy, for companies withespecially high greenhouse gas emissions, only companies whose improvement initiatives have been evaluated using TPIManagement Quality Score are included.

FTSE Blossom Japan Sector Relative Index

MSCI ESG Leaders Indexes
Developed by US company MSCI and companies with high ESG ratings in theirrespective industries.(As of July,2022)* The inclusion of Taisei Corporation in any MSCI Index, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute asponsorship, endorsement or promotion of Sumitomo Forestry by MSCI or any of its affiliates. The MSCI Indexes are the exclusive property of MSCI. MSCI and the
MSCI Index names and logos are trademarks or service marks of MSCI or its affiliates.

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MSCI ESG Leaders Indexes

MSCI Japan ESG Select Leaders Index
With Free float-adjusted market capitalization weighted index based on the MSCIJapan IMI Top 500 Index of MSCI, Inc. as a parent index, it represents relative
sector weights of companies that excel in ESG.(As of July,2022)

MSCI Japan ESG Select Leaders Index

MSCI Japan Empowering Women Index (WIN)
Index for Japanese stocks selected by the Government Pension Investment
Fund, Japan (GPIF) as one of its three ESG indices in July 2017. With MSCIJapan IMI Top 500 Index as a parent index, it represents weighs of companies
that excel in gender diversity that excel in gender diversity.(As of July,2022)

MSCI Japan Empowering Women Index

S&P/JPX Carbon Efficient Index
Discloses the S&P/JPX Carbon Efficient Index, jointly developed as an environmental index by theJapan Exchange Group, the Tokyo Stock Exchange, and the S&P Dow Jones Index.(As of July,2022)

S&P/JPX Carbon Efficient Index

SBT Certified
Taisei Corporation is certified by "Science Based Targets (SBT)," an international initiative
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ongreenhouse gas emission reduction, for its goal to reduce greenhouse gas emissions by 2030.

CDP
The renowned non-profit organization CDP awarded Taisei Corporation the Climate Change Alevel, in recognition to our measures against climate change and high transparency of the related
information (As of Dec.2021). Moreover, in the supplier engagement assessment of the Carbon
Disclosure Project (CDP), Taisei has been chosen as a Supplier Engagement Leader for thesecond year in a row (As of Feb.2022).

CDP (Carbon Disclosure Project)

Refer to:Taisei Corporation Listed on “CDP's Climate Change A List 2020” for Most Pioneering Environmental
Performance

SOMPO Sustainability Index
The SOMPO Sustainability Index is an ESG evaluation by Sompo Asset Management Co., Taisei
corporation were selected in the SOMPO Sustainability Index managed by SOMPO AssetManagement Co., Ltd. (“SOMPO Asset Management”) (As of June, 2022).

Copyright TAISEI CORPORATION All Rights Reserved.

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Participation in Initiatives

ALL

Environment

SocialALL
United Nations Global Compact (GC), SDGs
The Taisei Group participated in the GC in April 2018 and committed todisseminating and implementing the Ten Principles in the four areas of humanrights, labor, the environment, and anti-corruption. We support the 10 principles
on human rights, labor, the environment, and anti-corruption, and raise theawareness of our employees to solve social issues, and as a global energy cocreation company, it will further step up its efforts to create a sustainable society
through business operations. And we will advance various initiatives that contribute to realizing the UN Sustainable
Development Goals (SDGs) through our business activities.

Ten Principles of the UN Global Compact
Human

Principle 1: Businesses should support and respect the protection of internationally proclaimed

Rightshuman rights.
Principle 2: Make sure that they are not complicit in human rights abuses.

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

Environment

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

Anti-

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

Corruption

bribery.

Work with Global Compact Network Japan（GCNJ）
The GCNJ consists of subcommittees for deliberations and exchanging ideas on specific topics concerning approaches andinitiatives for sustainability.
In FY2021, Taisei Corporation participated in the following subcommittees.
Human Rights Due Diligence (HRDD) Subcommittee
Reporting Research Subcommittee
Supply Chain Subcommittee

Refer to:
The Global Compact Network Japan (GCNJ)

Sustainable Development Goals (SDGs)

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Taisei corporation joined the ESG Information Disclosure Study Group in August 2022.
The purpose of this study group, which was launched is to help create a mechanism that harmonizes the sustainable
development of society with the company growth through research on the appropriate way of ESG information disclosure.
By participating in it, we strive to improve mutual understanding with stakeholders.

Refer to:ESG Disclosure Study Group(Japanese)

Japan Forum of Business and Society (JFBS)
With regard to the relationship between companies and society and various issues in sustainable development, weparticipate in the JFBS, a forum for connecting theory, field, and policy through wide-ranging cooperation between academic
circles, industry, government, labor circles, consumer organizations, NPOs, and NGOs in Japan and overseas. We makeuse of knowledge gained at its annual conference and other events to promote Sustainability activities.

Keidanren (Japan Business Federation)
The Taisei Group is committed, as a member of Keidanren, to respect the content of its Charter of Corporate Behavior andcarry out activities toward the “realization of a sustainable society,” which Keidanren aims to achieve. We participate in thecommittees including the following:
Committee on Supply Chain
Start-up Committee
Committee on Environment
Resources and Energy Task Force Committee
Committee on Responsible Business Conduct & SDGs Promotion
Committee on Diversity Promotion
Committee on Crisis Management and Social Infrastructure Strengthening
Committee on Development Cooperation Promotion

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Nikkenren (Japan Federation of Construction Contractors)
Nikkenren is a nationwide association of general construction companies and their member contractor associations, which
represents the construction industry and works to resolve basic domestic and international issues in the constructionindustry, including various construction-related systems.
We participate in the committees including the following:

Environment
TCFD (Task Force on Climate-related Financial Disclosures)- TCFD Consortium
In July 2020, Taisei Corporation declared its support for the TCFD (Task Force on Climate-related Financial Disclosures)
recommendations, which aim to facilitate companies to disclose climate-related information. As a member of the TCFD
consortium, We will continue to practice appropriate disclosure in line with TCFD recommendations.

Information Disclosure Based on TCFD

SBT
An organization founded in 2015 that calls on companies to commit to set Science Based Targets (SBT) to contribute to theParis Agreement, which limits the rise in global average temperatures to below 2 degrees Celsius above pre-industrial
levels. The 2030 reduction target of greenhouse gas emissions has been certified as Science Based Targets (SBT) by theinternational initiative on the reduction of greenhouse gas emissions.

CDP/CDP Japan ClubCDP is an ESG evaluation program that urges leading companies (in terms of market capitalization) in major countries todisclose their climate change strategies and greenhouse gas emissions. Replies from such companies, together with theirscores, are provided to institutional investors. Taisei Corporation has been responding to the questionnaire from the CDP
Climate Change, a global disclosure program for corporate information on climate change risks. And we have responded tothe questionnaire on timber from CDP Forests, and to the questionnaire from CDP Water Security, a global disclosure

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program for corporate information related to forest risks.
As a member of the CDP (formerly Carbon Disclosure Project) Japan Club, sponsored by CDP Worldwide Japan, Taisei
promotes activities to find solutions to climate change and other environmental issues, holds exchanges of views regarding
information disclosure and issues requests to the CDP secretariat. Based on the information obtained through our activities
in the CDP Japan Club, we will intensify our efforts to take action on climate change and disclose appropriate environmentrelated information.

External Evaluations ; CDP (Carbon Disclosure Project)

GX League Basic Concept
Taisei Corporation has announced its support for the basic concept of the “Green Transformation League” (“GX League”),
which the Ministry of Economy, Trade and Industry (METI) plans to establish.
The GX League aims to transform the economic and social system by engaging a group of companies working todecarbonize their operations, as well as governmental, academic, and financial institutions, discuss the creation ofsustainable markets and rule-making, as well as emissions trading.

Refer to:
GX League Establishes the "GX BusinessWorking Group" to Build a Framework and Promote Evaluation andDisclosure on Climate-related Opportunities

OECM Biodiversity 30 by 30 Alliance
Taisei Corporation is participating in the “OECM Biodiversity 30 by 30 Alliance” established by Japan's Ministry of theEnvironment. The goal of the Alliance is to support efforts to expand and manage biodiversity protection lands through thedevelopment and use of Taisei technologies for living in harmony with nature and preserving the environment.

Participation in “Biodiversity 30 by 30 Alliance”

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The TNFD Forum
Taisei Corporation have become the first general construction contractor to join the TNFD Forum, the forum of the Taskforce
on Nature-related Financial Disclosures (TNFD). Through our participation in the TNFD Forum, we will work to set up aframework for the appropriate assessment and disclosure of the risks and opportunities relating to natural capital andbiodiversity, in order to actively contribute to the achievement of sustainability and resilience for society as a whole.

Refer to:Taisei Joins the TNFD Forum

Eco-First Promotion Council
Taisei is a participant in the Eco-First Promotion Council made up of Eco-First companies. As a leader in the area ofenvironmental preservation. Taisei will carry out proactive efforts as promised to the Ministry of the Environment in line with
the Council's Statement of Intent to Establish an Eco-First Promotion Council, and will work to achieve collaboration withother Eco-First companies under the guidance of the Ministry of the Environment in order to help to achieve further progressin Japan's climate change action and other efforts to preserve the global environment.

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

Participation in Japan Partnership for Circular Economy(J4CE)
Japan for Circular Economy (J4CE) is a platform for a decarbonized, decentralized society and circular economy
established in March 2021.Taisei Corporation join the Japan Partnership for Circular Economy (J4CE), which was

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established by the Ministry of the Environment, Ministry of Economy, Trade and Industry and the Japan Business
Federation.
we are pursuing open innovation that transcends corporate and industrial boundaries, and for Realization of a Recycling
Oriented Society by publicly declaring its commitment to ambitious challenges that will bring society closer to a cyclicaleconomy.

Refer to:Japan Partnership for Circular Economy (J4CE)Work with “Challenge Zero” (Keidanren)
Taisei Corporation endorses Nippon Keidanren's Declaration on “Challenge Zero.” This is a new initiative launched in June
2020 by the Japan Business Federation (Keidanren). The Group participates by sharing specific information on how it isinnovating to meet ambitious goals that will contribute to a carbon-free Japan.
By actively striving to develop net-zero emissions technology and generating an upward spiral of environmental protection
and business growth, the Group aims to solve social issues through innovation.

Social
EcoVadis
EcoVadis is a ratings provider that has developed its own platform for evaluating the performance of companies in terms ofenvironmental and social sustainability. Taisei Corporation has been registered with EcoVadis since fiscal 2019 as a supplierand started to disclose required information.

The Valuable 500
The Valuable 500 is a global initiative launched during the World Economic Forum (Davos) held in January 2019. On May 7,
2021, Taisei Corporation (President: Yoshiro AIKAWA) joined “The Valuable 500,” a global initiative aiming to enhancedisability inclusion in society through business leadership and opportunity.

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My Jinken (human rights) Declaration
In July of 2021, Taisei Corporation announced our support for the "My Jinken (human rights) Declaration" project of the
Ministry of Justice, which invites people to declare their intention to conduct activities to respect human rights in order toachieve a society in which everyone respects human rights.

Human Capital Management Consortium
The Consortium was established for the purpose of sharing advanced examples of human capital management practices,
discussing inter-company cooperation in Japan.
Taisei Corporation is participating in the Human Capital Management Consortium, which was established in August 2022with the Ministry of Economy, Trade and Industry and the Financial Services Agency as observers.
Through our participation in this consortium, we will deepen our knowledge and practice "human capital management" that
leads to medium- and long-term improvement of corporate value.

Work with Council for Better Corporate Citizenship (CBCC)
Council for Better Corporate Citizenship (CBCC) is an association, established in 1989 by Keidanren (Federation of
Economic Organizations), which facilitates the acceptance of Japanese companies by regional communities overseas asgood corporate citizens, and more recently, promotes Sustainability activities and assists companies in their practice. As amember company of the Council for Better Corporate Citizenship (CBCC), Taisei corporation participate in CBCC's
Sustainability awareness activities.

Copyright TAISEI CORPORATION All Rights Reserved.

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Sustainable Finance

Sustainability Linked
Loans

Green Bonds

Taisei Corporation has issued green

Taisei Corporation signed

bonds with the aim of raisingsustainability-linked loans agreementawareness of the Group’s

with the aim of raising awarenessenvironmental initiatives among a wide

among a wide range of stakeholders

range of stakeholders and contributing

about its environmental initiatives andto the realization of a decarbonized

contributing to the realization of asociety.

decarbonized society.

Copyright TAISEI CORPORATION All Rights Reserved.

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Green Bond

Purpose and Background of This Issuance
2. Third-party Assessment of Eligibility

1. Overview of Green Bonds
3. Investment Announcement Regarding These Green Bonds

4. Reporting

Purpose and Background of This Issuance
Based on our group philosophy of “to Create a Vibrant Environment for All Members of Society,” TAISEI Corporation has
established an environmental policy that strives to create high-quality social capital through corporate activities centered on
the construction business in harmony with nature. In addition, “TAISEI Green Target 2050,” our set of medium- to long-term
environmental targets, sets forth four societies (a decarbonized society, a recycling oriented society, a nature co-existingsociety, and a safety secured society) toward the realization of a sustainable, environmentally friendly society, and aims toachieve virtually zero CO2 emissions from business activities by 2050 to realize a decarbonized society.
In order to realize our group’s Medium- to Long-Term Vision, “TAISEI VISION 2030,” our Medium-Term Business Plan
(2021-2023) specifies that focused efforts will be made over a three-year period as a priority issue. Regarding sustainability,
the plan calls for accelerating efforts toward carbon neutrality and promoting the development of technology to solve
environmental and social issues.
Against this background, our company has issued green bonds with the aim of raising awareness of the Group’s
environmental initiatives among a wide range of stakeholders and contributing to the realization of a decarbonized society.

1. Overview of Green Bonds

Name

TAISEI Corporation 40th Issuance of Unsecured Bonds (with inter-bond pari passu clause)(Green Bonds or TAISEI Green Bonds)

Condition
Determination

December 3, 2021

Date

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Issue Date
Total AmountIssuedMaturity
PeriodDecember 9, 2021

10 billion yen

5 years

Interest Rate

0.100%

Use of Funds(1) Renovation of existing facilities to make them more energy efficient(TAISEI Kansai Branch and Yokohama Branch buildings, TAISEI U-LEC Kawagoe Plant)＜Planning to obtain ZEB certification*1 under the Building-Housing Energy-efficiency
Labeling System (BELS)＞(2) Investment in renewable energy businesses (Solar power and wind power generation
facilities)(3) Investment in the development of decarbonization technology (areas related to offshore
wind power generation, carbon recycling and concrete, ZEB*2 and energy conservation, andutilization of hydrogen)

Lead
Organizers

Nomura Securities Co., Ltd. (Admin), Mizuho Securities Co., Ltd.

Green Bond
Structuring

Mizuho Securities Co., Ltd.

*3

Agent

Acquired
Rating*1

A+ (Rating and Investment Information, Inc.), AA- (Japan Credit Rating Agency, Ltd.)

Building-Housing Energy-efficiency Labeling System (BELS) ZEB certification
A certification system in which a third-party evaluation organization evaluates and displays the energy-saving performance of new and existing buildings, led by
the Ministry of Land, Infrastructure, Transport and Tourism. A Building Energy-efficiency Index (BEI) value is calculated according to the calculation method
determined by the government, and the number of stars received is determined by this value. Among the highest ranked five-star buildings, those with evenbetter energy-saving performance are certified as ZEB (ZEB, Nearly ZEB, ZEB Ready, or ZEB Oriented).

*2

ZEB: (Net Zero Energy Building)“Buildings in which annual primary energy consumption is reduced to zero or almost zero on a net basis by improving the energy-saving performance of thebuilding or facilities, making full use of energy, utilizing on-site renewable energy, etc.” In other words, a building that consumes as little energy as possible andhas facilities for generating energy, resulting in an annual energy balance of zero.

*3

Green Bond Structuring Agent
Those who support the issuance of green bonds through the formulation of a green bond framework, giving advice on obtaining second opinions, etc.

2. Third-party Assessment of Eligibility
As a third-party assessment regarding the eligibility of these green bonds, a second party opinion was obtained in the “JCR
Green Bond Rating,” conducted by Japan Credit Rating Agency, Ltd. (JCR). They determined that the bonds comply with
the Green Bond Principles 2021 and the Green Bond Guidelines 2020, and gave their highest rating, “Green1.”

3. Investment Announcement Regarding These Green Bonds
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We would like to introduce the investors who have announced their investment in these green bonds.
(As of December 3, 2021, listed in Japanese alphabetical order)- OTEC CORPORATION- The Kagoshima Bank, Ltd.
- Shinkin Central Bank
- SUMITOMO LIFE INSURANCE COMPANY- Daitokyo Shinyokumiai- THE TOHO BANK, LTD.
- Japan Earthquake Reinsurance Co., Ltd.
- NIHON DENGI CO., LTD.
- THE HACHIJUNI BANK, LTD.
- HIGASHI-NIPPON BANK, Ltd.
- Mitsubishi UFJ Trust and Banking Corporation- The Miyazaki Taiyo Bank, Ltd.

4. Reporting
Once a year, a report on the status of fund allocation and environmental benefits will be disclosed on the Company's
Sustainability website.

TAISEI Green Bonds

First reporting following issuance of Green Bonds(40th issuance of unsecured bonds)

Copyright TAISEI CORPORATION All Rights Reserved.

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November 15, 2022
Taisei Corporation

First reporting following issuance of Green Bonds(40th issuance of unsecured bonds)

1.

Status of appropriation of procurement funds (December 2021 - September 2022)
The following table shows the status of appropriation of funds procured through Green Bonds(40th issuance of unsecured bonds) that were issued on December 9, 2021.
Item

Amount (JPY million)① Amount raised (amount of Bond issue minus various
issuing expenses)

9,943② Amount of appropriation (1.+2.+3.)

1,538

1. Renovation of existing facilities to make themmore energy-efficient390

2. Investment in renewable energy businesses

0

3. Investment in the development of decarbonization
technology③ Non-appropriated balance (①-②)
2.

Environmental impact

1.

Renovation of existing facilities to make them more energy-efficient

1,148
8,405

-１. ZEB certification acquisition status
All three existing facilities (Taisei Corporation Kansai Branch Building, Taisei Corporation
Yokohama Branch Building and Taisei U-LEC Corporation Kawagoe Plant) were awarded
ZEB certification under the Building-Housing Energy-efficiency Labeling System (BELS) in
April 2022.
https://www.taisei.co.jp/about_us/wn/2022/220426_8771.html (Japanese)-２. Amount of reduced energy consumption due to energy conservation measures
Construction is underway with completion expected at the end of March 2023. For the
anticipated environmental improvement benefits, etc., see page 51 of the Taisei Group Annual
Report 2022.
https://www.taisei-sx.jp/english/environment/pdf/Environmental_Solutions.pdf

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2.

Investment in renewable energy businesses
There was no investment during the period.

3.

Investment in the development of decarbonization technology
As of September 2022, of the 279 technical development items managed as "technicaldevelopment" in the Medium-Term Business Plan, 75 are related to decarbonization.
⚫

Click the following link for the status of development and implementation of T-e Concrete®
environmentally friendly concrete.

https://www.taisei.co.jp/english/t-econcrete/⚫

See the following Taisei press releases (in Japanese) for the progress in major technicaldevelopment items contributing to decarbonization between December 2021 and
September 2022.

・"Development of Technology for Carbonate Use" implemented in the "Project to develop
technologies for the manufacture of concrete, etc. using CO2" which was selected as a
NEDO Green Innovation Fund Project (January 28, 2022)
https://www.taisei.co.jp/about_us/wn/2022/220128_8674.html (Japanese)

・"T-LCA(Life Cycle Assesment) Simulator CO2" tool for evaluating CO2 emissions
throughout the life cycle of buildings developed (May 30, 2022)
https://www.taisei.co.jp/about_us/wn/2022/220530_8796.html (Japanese)•

T-ZCB(Zero Carbon Building) assessment system for effectiveness of CO2 emissions
reduction developed, demonstration at company facilities begins (September 9, 2022)
https://www.taisei.co.jp/about_us/wn/2022/220909_8933.html (Japanese)

・"T-CARBON SoilReme" CO2 emissions assessment tool developed (September 12,2022)
https://www.taisei.co.jp/about_us/wn/2022/220912_8952.html (Japanese)・Support activities begin in preparation for formulation of ZEB guidelines, etc. for publicbuildings in Setagaya Ward (September 26, 2022)
https://www.taisei.co.jp/about_us/wn/2022/220926_8969.html (Japanese)

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Taisei Signs DBJ Interactive Sustainability-Linked Loan Agreement with
the Development Bank of Japan
December 24, 2021
Taisei Corporation
On December 24, Taisei Corporation (President: Yoshiro Aikawa) and Development Bank ofJapan (DBJ) (President: Hajime Watanabe) signed a loan agreement for a DBJ interactive
sustainability-linked loan (hereafter "loan").
The loan will be based on the Sustainability Linked Loan Principles (SLLP) formulated by the
Loan Market Association and other entities and the Green Loan and Sustainability Linked Loan
Guidelines established by the Ministry of the Environment (hereafter "MOE Guidelines"). The
lender, DBJ, will use an interactive process to provide assistance to the borrower in establishingappropriate Key Performance Indicators (KPI) and Sustainability Performance Targets (SPT)
to help achieve advanced sustainable operation, and will also conduct regular dialogue to help
to achieve the SPT during the loan period.
Taisei is working to become a front runner in the environmental field as expressed in its "Taisei
Vision 2030," its vision for the medium- to long-term, and its midterm management plan (20212023). Taisei is also working to help to achieve a sustainable and environmentally conscious
society as expressed in its Taisei Green Target 2050 that contains the company's environmental
targets for the year 2050, and is promoting adoption in the value chain through the development
and practical realization of next-generation advanced function Zero Energy Buildings (ZEB)and so on. Accordingly, Taisei has established the environmental target for "Reduction ofdesign-build estimated CO2 emissions at building operation stage" as the KPI and SPT for this
loan.
KPI
Anticipated CO2 emissions reduction rate ofTaisei design and construction projects(compared to 1990 levels)

SPT
FY 2023 reduction rate 43%

Taisei will continue to actively promote efforts to achieve a sustainable and environmentallyconscious society based on the Taisei Group Philosophy “To Create a Vibrant Environment
for All Members of Society.”[Content of internal review]
1.

Selection of internal review
For the execution of the loan, Taisei and the DBJ held discussions regarding confirmationof compliance with the SLLP and MOE Guidelines, and selected an internal review.

2.

SPT outline
Taisei has established guidelines for measuring the status of the application of energysaving technologies including ZEB, which help to reduce CO2 emissions at the building
operation stage, in the building design.

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3.

Internal expertise relating to SPT
Based on the Taisei Group Philosophy “To Create a Vibrant Environment for All
Members of Society” and the Taisei Spirit, Taisei is working to resolve sustainability
issues through operations centered on the construction industry. The company's basic
sustainability policy is to help to achieve a resilient society that enables people to live lives
filled with culture and abundance.
Key policies and measures relating to overall environmental, social and governance (ESG)
criteria are reviewed by the company's CSR Committee, and the basic policy forenvironmental management and the formulation of medium- to long-term targets isreviewed by the Environment Committee, after which they are discussed and finalized ata meeting of the Board of Directors.

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ESG Data and Comparisons

GRI Standards
Comparison Chart

ESG Data

ISO26000 Comparison
Table

Data on Environmental Contribution

100 series (Universal)

Organizational Governance

Data on Social Contribution

200 series (Economic topics)

Human Rights

Data on Governance Contribution

300 series (Environmental topics)

Labor Practices

400 series (Social topics)

The Environment
Fair Operating Practices
Consumer Issues
Community Involvement andDevelopment

Information Disclosure
Based on TCFD
Recommendations
Governance
Strategies
Risk Management
Indicators and Targets

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ESG Data

Data on Environmental Contribution

Data on Social Contribution

Data on Governance Contribution

ESG Data
Data on Environmental Contribution
Environment Data
(FY)
Indicators
Scope 1+2 reduction rate of CO2 emissions
per sales*1 (Taisei Group)*5
Scope 1+2 reduction rate of CO2
emissions*1 (Taisei Group)*5

KPI

At construction stage: Reduction rate of
CO2 emissions per sales*2
At construction stage: Reduction rate of
total CO2 emissions*2

Unit

2018

2019

2020

2021

GRI

%

—

—

—

3.3

305-4

%

—

—

—

-11.8

305-5

%

-28.9

-32.0

-30.3

-30.1

305-4

%

-44.7

-43.7

-54.5

-52.7
305-5

At building operation stage: Reduction rateof estimated CO2 emissions*2, 3

%

-40.2

-39.5

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Indicators

Unit

Scope 1+2 total CO2 Emissions (Taisei Group)☆

103tCO2

2018

2019

2020

2021

GRI

361

368

318

325
305-1,2

3

Scope 1+2 total CO2 Emissions☆

10 tCO2

261

267

216

224

Scope 1☆

103tCO2

204

198

159

162

305-1

Scope 2☆

103tCO2

57

69

57

61

305-2

Scope 3☆

103tCO2

—

—

4,491

3,878

305-3

―

―

1,347

1,283

305-3

―

―

4

0

305-3

―

―

32

33

305-3

―

―

9

8

305-3

―

―

179

209

305-3

―

―

1

1

305-3

―

―

5

5

305-3

―

―

1

0

305-3

―

―

―

―

305-3

―

―

―

―

305-3

―

―

3,371

2,284

305-3

―

―

40

51

305-3

1. Purchased goods and services

1,000tCO2
1,000t-

2. Capital goods

CO2

3. Fuel-and-energy-related activities

4. Upstream transportation and distribution

1,000tCO2
1,000tCO2
1,000t-5. Waste generated in operations

CO2
1,000t-6. Employee commuting

CO2
1,000t-7. Employee commuting

CO2
1,000t-8. Upstream leased assets

CO2

9. Downstream transportation and distribution

1,000tCO2
1,000t-10. Processing of sold products

CO2
1,000t-11. Use of sold products

CO2

12. End of life treatment of sold products

1,000tCO2

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Indicators

Unit

2018

2019

―

―

1,000t-13. Downstream leased assets

CO2

2020

2021

5

GRI

5

305-3

Not
1,000t-14. Franchises

―

CO2

―

applicablefor
calculation.

1,000t-15. Investments

―

―

―

―

109MJ

4.14

4.39

3.60

3.77

302-1

%

-21.0

-23.3

-22.4

-22.2

302-3

Water (amount of water used) ☆

103m3

1,436

1,414

1,412

2,266

303-3

Nox emissions ☆

103tCO2

1,345

1,302

1,039

1,085

Sox emissions☆

103tCO2

205

200

158

162

Final disposal rate of construction wastes

%

3.4

3.9

2.7

2.8

Amount of construction waste☆

103t

2,020

2,411

1,787

1,976

Item/PJ

9.7

10.0

11.7

11.7

301-2

Projects

—

52

44

72

304-3

Number of environmental accidents

case

0

1

0

0

307-1

Acquisition rate of ISO 14001 certification

%

100

100

100

100

102-11CO2

Energy consumption☆
In office divisions: Reduction rate of energy
consumption per floor area (basic unit)*4

305-3

305-7

306-2

Number of green procurement items
ET

adapted at construction design stage
Number of projects contributing tobiodiversity improvement*1 Compared to FY2019*2 Compared to FY1990*3 Estimated CO2 emissions from design and construction projects (including promotion of ZEB)
*4 Compared to FY2010*5 The scope of coverage: Taisei Corporation and the Group companies.

Notes: 1. KPI = Key Performance Indicator (2021 - 2023)
Notes: 2. ET= Environmental Targets
Notes: 3. The FY2021data of items with ☆ mark has obtained third-party assurance.

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Refer to:Environment Data

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Data on Social Contribution
Human Resources Data (Non-Consolidated / Partial Consolidated)(FY)
Indicators

Unit

2018

2019

2020

2021

Persons

14,433

14,562

14,62014,518Civil Engineering business (consolidated)

Persons

4,108

4,161

4,257

4,263

Building Construction business (consolidated)

Persons

8,123

8,163

8,160

8,103

Real Estate Development business (consolidated)

Persons

2,056

2,074

2,044

1,979

Other businesses (consolidated)

Persons

146

164

159

173

Male (consolidated)

Persons

11,906

11,971

11,95911,822

Female (consolidated)

Persons

2,527

2,591

2,661

2,696

Japanese employees (consolidated)

Persons

13,567

13,658

13,692

13,585

Number of employees (consolidated)

GRI

102-7

102-8

405-1
Non-Japanese employees (consolidated) 866 904
Number of employees
Civil Engineering business

Persons

866

904

928

933

Persons

8,490

8,507

8,572

8,579

Persons

2,298

2,273

2,323

2,324
102-7

Building Construction business

Persons

6,040

6,072

6,084

6,084

Real Estate Development business

Persons

152

162

165

171

Persons

6,949

6,937

6,970

6,955

Male

102-8
FemaleJapanese employees

Persons

1,541

1,570

1,602

1,624

Persons

8,391

8,394

8,457

8,454
405-1

Non-Japanese employees

Persons

99

113

115

125

Twenties

%

16.5

17.1

18.0

18.5

Thirties

%

19.0

19.2

19.7

20.4

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Indicators

Unit

2018

2019

2020

2021

Forties

%

30.1

26.3

22.8

21.0

Fifties or more

%

34.4

37.4

39.4

40.1

Persons

1,134

1,173

1,288

1,255

Number of non-regular employees

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Data on Recruitment, Annual Salary, Length of Service, and Average Age(Non-Consolidated / Partial Consolidated)(FY)
Indicators

Unit

2018

2019

2020

2021

GRI

Persons

251

264

329

302

401-1

Male

Persons

207

215

270

253

—

FemalePersons

44

49

59

49

405-1

Persons

30

27

11

28

401-1

Male

Persons

29

22

11

23

—

Female*1

Persons

1

5

0

5

405-1

10,512

10,103

9,850

9,635

43.0

43.0

43.0

43.0

Number of hires (new graduates)

Number of mid-career hires

ThousandAverage annual salaryyen

Average age

Years old

—

—
Male

Years old

43.3

43.3

43.3

43.3

FemaleYears old

41.8

41.8

41.6

41.5

Years

18.3

18.3

18.3

18.2

Average service years

405-1

—
Male

Years

18.6

18.7

18.8

18.8

Female

Years

16.6

16.5

16.2

15.9

Turnover rate (Taisei Group)*2

%

—

—

—

2.1

Turnover rate *3

%

1.1

1.2

1.2

1.5

%

5.4

7.4

7.6

8.3

Turnover rate of employees within three years ofhiring*3,4*1 Target:25% Ratio of newly hired female engineers/30% Ratio of newly hired female employees*2 The scope of coverage: Taisei Corporation and seven major Group companies.
*3 Voluntary turnover rate
*4 Target:6% by FY2026/4% by FY2030

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Data on Stakeholder Engagement (Non-Consolidated)(FY)
Indicators
Percentage of all employees covered by collective
bargaining agreements

Unit

2018

2019

2020

2021

%

—

90.6

90.8

90.1

GRI

10241

Labor union participation rate

%

100

100

100

100

Employees satisfaction rate*

%

—

80.8

—

77.6

10243

* The survey was conducted every other year by union members in Taisei Corporation. From FY2022, we plan to conduct an engagement survey (results) covering all
employees.

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Diversity and Inclusion Data (Non-Consolidated / Partial Consolidated)(FY)
Indicators

Unit

2018

2019

2020

2021

GRI

KPI

Number of female managers*1

Persons

167

197

236

270

AC

Female managers ratio

%

3.2

3.8

4.5

5.2

Persons

663

698

738

767

%

9.1

9.5

9.9

10.2

%

—

—

—

2.10

%

2.33

2.35

2.20

2.27

Persons

739

800

862

878

Persons

2

3

3

4

Number of female engineers
AC

Female engineers ratio*2

Rate of employment of persons with disabilities(consolidated)
Rate of employment of persons with disabilities
Number of employees reemployed after leave
retirement
Number of former employees who took advantage of
the Job-Return system*3

405-1*1 目標2025年度10倍 400名以上*2 目標2030年度15%以上*3 This is a system that provides employment information for the Company and its Group companies and offers opportunities for employees to return to work if theywish to reenter the workforce due to the elimination or alleviation of reasons for retirement after having resigned due to various reasons.
Notes: 1. KPI = Key Performance Indicator (2021 - 2023)
Notes: 2. AC: Action Plan based on The Act on Promotion of Women’s Participation and Advancement in the Workplace (Cabinet Office)

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Data on Diversity and Inclusion Training (Non-Consolidated)

Indicators

Subjects

Number of participants in diversity management training

Next Generation Leader Development Training Number ofparticipants

Unit

Achievements

managerial staff

845

female employee

229

FY2013～Total
FY2012～TotalPersons
Number of female position leadership and coaching training

Position holder

participants

8

Non-Japanese

Number of Non-Japanese employees taking training

132

employees

FY2021～Total
FY2013～TotalRatio of Female Wages to Male Wages*The wage gap between men and women is due to differences in average age, etc., but not to the system(FY)
Indicators

Unit

2018

2019

2020

2021

All employees

—

—

—

58.2

Regular employees

—

—

—

57.4

—

—

—

66.0

Career-track positions
%

405-2

Professional-grade positions

—

—

—

72.1

Minor career-track positions

—

—

—

83.3

—

—

—

58.3

Non-regular employees

GRI

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Childcare and Nursing Care Data
(FY)
Indicators

Unit

2018

2019

2020

2021

285

290

299

281

244

241

253

232

41

49

46

49

94.9

100

100

100

94.2

100

100

100

—

—

—

9.7

100

100

100

100

97.7

99.7

100

99.7

Male

100

100

100

100

Female

97.5

97.9

100

97.9

Persons

12

27

35

45

Number of employees taking nursing care leave

Persons

0

2

1

1

—

Number of employees taking paid nursing care leave

Persons

—

—

—

168

—

Number of employees taking leave for childcare
Male

Persons

FemaleRate of taking childcare leave*

GRI

401-3

%
KPI

AC

Rate of taking childcare leave by males
Average number of days of childcare leave
taken by males—
Days

Rate of taking childcare leave by females
Rate of return to work after childcare leave%

Number of employees who use flextime for childcare(cumulative)* Target :100% acquisition rate , More than 14 days to obtain
Notes: 1. KPI = Key Performance Indicator (2021 - 2023)
Notes: 2. AC: Action Plan based on The Act on Promotion of Women’s Participation and Advancement in the Workplace (Cabinet Office)

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Data on Working Hours and Holidays (Non-Consolidated)(FY)
Indicators

Unit

2018

2019

2020

2021

GRI

Total hours worked per month

Hours

192.8

193.9

194.1

190.9

403-9

Average overtime hours per month*1

Hours

37.8

39.0

39.8

38.5

Equivalent to 4 weeks and 8 days off*2

%

—

—

—

96.8

Hours

—

—

25.4

22.6

Health management overtime hours (Rate of
employees who worked more than
50 overtime hours per month or 720 overtime
hours per year)

KPI—

Worksite implementation rate of a five-day work
week (closed eight days in

—

—

—

26.6

—

—

—

49.5

four weeks) (Building Construction)%Worksite implementation rate of a five-day work
week (closed eight days infour weeks) (Civil Engineering)*1 Average overtime hours per month for employees(excluding managers)*2 The number of employees who took “regular leave and compensatory leave” for 104 days a year (equivalent to 4 weeks and 8 days off). Target：100% by FY2022.
*3 Health management overtimehours; Overtime working hours used to judge whether or not measures to prevent health impairment (such as face-to-face guidanceby physicians) should be taken. They are the total of statutory overtime working hours and holiday working hours.

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Rate of paid leave utilization and refresh leave utilization(FY)
Indicators

Unit

Rate of paid leave utilization

Rate of milestone leave utilization%

Rate of refresh leave utilization

2018

2019

2020

2021

Target
60% by FY2025

47.5

46.2

46.5

49.3

94

84.5

79.2

83.4

100% every year

92.2

91.9

55.8

15.4

100% every year

100% by FY2030*1 Milestone leave : Special leave able to be taken when a employee at a construction site office is transferred or reaches certain milestones of the construction
project.
*2 Refresh leave：Special leave that can be taken when reaching certain milestones concerning years of employment. The refresh leave utilization rate decreased ascompared to a normal year because acquisition restrictions were extended due to the COVID-19 pandemic in FY2020 and FY2021.

Data on Training and Career in Capacity Development (Non-Consolidated)(FY)
Indicators

Unit

Total training hours for capacity development

2018
—

2019

2020

2021

261,059

233,143

231,706

Hours
Training hours per person

30.5

27.0

26.7

—

—

—

298,937—

Persons

—

—

—

4,360

—

Persons

45

28

20

38

404-2

%

87.7

86.5

88.0

89.0

404-3

Hours

253.7

281.1

176.3

176.7

—

yen

Total number of trainees
Number of regular employees promoted from nonregular employees
Implementation rate of career development review*
Training hours per person for new employee

404-1
36.6

Thousand

Total training budget

GRI* Target: 100% every year

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Data on CCUS and Productivity(FY)
Indicators
Worksite registration rate of Construction Career
Up System (CCUS)*1

Unit

2018

2019

2020

2021

%

—

75

100

100

KPI

GRI

—
Productivity (net sales/number of employees)

Million(Taisei Group)*2

yen

—

—

0.67

0.65

*1 CCUS: system to register and visualize the skills, experience and qualifications, status of enrollment in social insurance programs, etc., of each of the skilledconstruction workers under uniform rules of the industry, to strengthen cooperation with partner organizations.
*2 The scope of coverage: Taisei Corporation and 19 major Group companies.
Notes: 1. KPI = Key Performance Indicator (2021 - 2023)

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Data on Health and Safety Relations (Non-Consolidated / Partial
Consolidated)(FY)
Indicators

Unit

2018

2019

2020

2021

0.58

0.64

0.37

0.56

0.43

0.62

0.35

0.44

0.14

0.26

0.34

0.08

Cases

50

74

35

45

Number of fatal accidents (Taisei Group)*2

Cases

—

—

5

1

Number of fatal accidents*2

Cases

2

4

5

1

Number of fatalities of regular employees*2

0

0

0

0

Contract employ*2

0

0

0

0

2

4

5

1

1,025

1,049

1,063

1,200

Accident frequency rate (Taisei Group)*1 *2
Accident frequency rate*2—

Accident severity rate*2
Number of occupational accident leaves(excluding fatal accidents)*1

KPI

Number of fatalities at partner companies*2(specialized contractors)

Number of employees receiving safety andhealth training

Persons*1 The scope of coverage: Taisei Corporation and six major Group companies.
*2 Aggregated from January to December
Notes: 1. KPI = Key Performance Indicator (2021 - 2023)

TAISEI Environmental Social Governance Report 2022-Nov. 259

GRI

403-9

403-5

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Data on Health Relations (Non-Consolidated)(FY)
Indicators

Unit

Implementation rate of stress checks*

2018

2019

2020

2021

89.8

90.2

91.6

91.0

—

—

—

100

—

—

—

21

GRI

%
*

Response rate of health awareness survey

Number of employees using the consultation services
for female health problem (Femtech)

Persons403-6* Target: 100% every year

Quality Data (Non-Consolidated / Partial Consolidated)(FY)
Indicators

Unit

Customer satisfaction (Building Construction)
KPI

2018
92

2019
88

2020
90.0

2021
90.0

%
Customer satisfaction (Civil Engineering)

Acquisition rate of ISO 9001 certification

%

GRI

416-1
96

98

98.6

97.6

100

100

100

100

Notes: 1. KPI = Key Performance Indicator (2021 - 2023)

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Data on Technology Development and Intellectual Property (NonConsolidated / Partial Consolidated)(FY)
Indicators

Unit

Research and development expenditureBillion(consolidation)yen

Environmental technology development expenses

Number of patents registered

Billionyen
Cases

Number of patent applications filed
KPI

Number of orders received for net Zero Energy
Buildings (ZEBs)

2018

2019

2020

2021

GRI

12.4

13.5

14.2

15.1

—

1.1

3.7

12.3

250

169

202

209

219

188

266

272

—

—

5

6

Cases

Notes: 1. KPI = Key Performance Indicator (2021 - 2023)

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Community Activities,Volunteering Investment (Non-Consolidated)(FY)
Indicators

Unit

Expenditure on community activities andvolunteering investment

2018

Million yen

2019

700

2020

838

2021

492

GRI

787

203-1

Data on Procurement Practices, and Human Rights (Non-Consolidated /Partial Group Companies)(FY)
Indicators

KPI

Supplier’s conformity rates with the Taisei GroupCSR Procurement Standards (Taisei Group)*

Human rights training precipitation rate
Cases of violation of the rights of indigenous peoples

Unit

2018

2019

2020

2021

GRI

%

74.2

—

92.1

—

412-1

%

97.9

97.4

99.5

95.3

412-2

Cases

—

—

—

0

411-1

* The scope of coverage: Taisei Corporation and seven major Group companies. Figures for FY2018 are the average implementation rate of sustainability activities.
Notes: 1. KPI = Key Performance Indicator (2021 - 2023)

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Data on Governance Contribution
Number of Members of the Board, Audit & Supervisory Board Members,
and Executive Officers(FY)
Indicators

Unit

Number of Members of the Board

Male

FemaleNumber of Audit & Supervisory Board Members

2018

2019

2020

2021

GRI

12

12

12

12

（4）

（4）

（4）

（4）

11

11

11

11

（3）

（3）

（3）

（3）

1（1）

1（1）

1（1）

1（1）

6（4）

6（4）

6（4）

6（4）

6（4）

6（4）

5（3）

5（3）

0

0

1（1）

1（1）

10222

Persons
Male
Female—Number of Executive Officers

58

59

58

63

Male

58

59

58

63

Female0000Data on Officer Remuneration (Non-Consolidated)(FY)
Indicators

Unit

Members of the Board

2018

2019

755

2020

741

2021

814

GRI

738

Million yen
External Members of the Board

102-36
46

58

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Data on Ethics, Security (Non-Consolidated / Partial Group Companies)(FY)
Indicators
Participation rate of e-learning for the Group's
Structure of Values and Policies

KPI

Response rate of Corporate Ethics Helpline andGroup Helpline (Taisei Group)*1

Unit

2018

2019

2020

2021

GRI

%

97

94

94

95

%

100

100

100

100

10216

205-1
Operational results of the whistleblowing and

Cases

—

24

28

30

%

100

100

100

100

205-2

Persons

—

0

0

0

205-3

—

18

18

18

415-1

Cases

0

0

1

0

418-1

Times

19

5

4

3

—

consultation system*2

KPI

Rate of participation in compliance training,
including anti-corruption training

Number of dismissals due to corruption and bribery

MillionPolitical contributions

KPI

yen

Number of major information security accidents(Taisei Group)*3

Number of information security education sessions*1 The scope of coverage: Taisei Corporation and 21 major Group companies.
*2 The scope of coverage: Cooperating companies with whom we have a direct contractual relationship*3 The scope of coverage: Taisei Corporation and eight major Group companies.

Copyright TAISEI CORPORATION All Rights Reserved.

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GRI Standards Comparison Chart

100 series (Universal)

200 series (Economic topics)

300 series (Environmental topics)

400 series (Social topics)

100 series (Universal)
Reasons forDisclosures

Requirements

No.

Omission/Additional
Information

GRI102: General Disclosures 2016
1.Organisational Profile
102-1

Name of the organization

102-2

Activities, brands, products, and services

102-3

Location of headquarters

102-4

Location of operations

102-5

Ownership and legal form

AR: P.101
AR: P.7-10
AR: P.101
AR: P.101
AR: P.101
SR: P.07
AR: P.101
AR: P.9-12

102-6

Markets served

AR: P.101
SR: P.29

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Reasons forDisclosures

Requirements

No.

Omission/Additional
Information
AR: P.97-100

102-7

Scale of the organization

AR: P.11-12
AR: P.101
SR: P.9AR: P.10-11
AR: P.97-100
SR: P.9<Supplementary Note on
Employees>

102-8

Information on employees and other workers“Employee” refers to
employees of Taisei
Corporation. “Personnel”
refers to personnel working
at Taisei Corporation,
including dispatched andseconded personnel.

AR: P.62
AR: P.49
102-9

Supply chain

Web: Promotion of
Supply Chain
Management102-10Significant changes to the organization and its supply chain

Not applicable
AR: P.20-21

102-11

Precautionary Principle or approach

AR: P.43-44
AR: P.47-50
AR: P.74-78
Web:Initiatives

102-12External initiatives

AR: P.47-50
AR: P.53-66
AR: P.75

102-13

Membership of associations

2. Strategy

TAISEI Environmental Social Governance Report 2022-Nov. 266

Web:Initiatives
AR: P.48-50

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Reasons forDisclosures

Requirements

No.

Omission/Additional
Information
AR: P.4-6

102-14

Statement from senior decision-maker

AR: P.13-18
AR: P.22
AR: P.4-6
AR: P.22

102-15Key impacts, risks, and opportunities

AR: P.20-21
AR: P.48-50
AR: P.53-66
SR: P.12-16

3. Ethics and integrity
AR: P.1-2
AR: P.4-6
102-16

Values, principles, standards, and norms of behavior

AR: P.22
AR: P.43-44
AR: P.74-78
AR: P.97-100

102-17

Mechanisms for advice and concerns about ethics

AR: P.67
AR: P.74-76

4. Governance
AR: P.43-44
AR: P.67
102-18Governance structure

Web: Corporate
Governance Report102-19102-20Delegating authority
Executive-level responsibility for economic, environmental, and social
topics

AR: P.43-44

AR: P.43-44

AR: P.43-44
AR: P.67
102-21

Consulting stakeholders on economic, environmental, and social topics

Web: Corporate
Governance Report

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Reasons forDisclosures

Requirements

No.

Omission/Additional
Information
AR: P.67

102-22Composition of the highest governance body and its committees

Web: Corporate
Governance Report

AR: P.67
102-23Chair of the highest governance body

Web: Corporate
Governance Report

AR: P.67
102-24

Nominating and selecting the highest governance body

Web: Corporate
Governance ReportWeb:102-25102-26102-27

Conflicts of interest

Role of highest governance body in setting purpose, values, andstrategy

Corporate
Governance Report

AR: P.43-44
AR: P.19-22
AR: P.67-73

Collective knowledge of highest governance body

AR: P.43-44
AR: P.67-73
Web: Corporate

102-28

Evaluating the highest governance body's performance

Governance Report

AR: P.13-18
AR: P.20-21
102-29Identifying and managing economic, environmental, and social impacts

AR: P.35-42
AR: P.43-44
AR: P.47-50
AR: P.53-66

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Reasons forDisclosures

Requirements

No.

Omission/Additional
Information
AR: P.20-21
AR: P.43-44
AR: P.47-50
AR: P.53-66

102-30Effectiveness of risk management processes

AR: P.74-78
Web:
Corporate
Governance Report

AR: P.20-21
AR: P.43-44
102-31

Review of economic, environmental, and social topics

AR: P.47-50
AR: P.53-66
AR: P.74-78
AR: P.20-21

102-32Highest governance body's role in sustainability reporting

102-33

Communicating critical concerns

102-34Nature and total number of critical concerns

102-35

Remuneration policies

AR: P.72-73

102-36

Process for determining remuneration

AR: P.72-73

102-37

Stakeholders' involvement in remuneration

AR: P.72-73

102-38Annual total compensation ratio

AR: P.72-73

AR: P.43-44
AR: P.20-21
AR: P.43-44
AR: P.20-21
AR: P.43-44

5. Stakeholder Engagement102-40

List of stakeholder groups

AR: P.2

102-41

Collective bargaining agreements

AR: P.91-94
AR: P.2

102-42

Identifying and selecting stakeholders

AR: P.13-16
AR: P.35-42

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Reasons forDisclosures

Requirements

No.

Omission/Additional
Information
AR: P.2

102-43

Approach to stakeholder engagement

AR: P.13-16
AR: P.35-42

102-44

Key topics and concerns raised

Not applicable

6. Reporting practice102-45

Entities included in the consolidated financial statements

AR: P.3
SR: P.7-8
AR: P.3

102-46

Defining report content and topic Boundaries

AR: P.20-21
AR: P.43-44

102-47

List of material topics

AR: P.33-34

102-48

Restatements of information

Not applicable

102-49Changes in reporting

Not applicable

102-50

Reporting period

AR: P.3

102-51

Date of most recent report

AR: P.3

102-52

Reporting cycle

AR: P.3

102-53

Contact point for questions regarding the report

Web: Contact

102-54Claims of reporting in accordance with the GRI Standards

AR: P.3

102-55

GRI content index

AR: P.3

102-56External assurance

Web: Editorial Policy

GRI 103: Management Approacha. An explanation of why the topic is material.
103-1

b. The Boundary for the material topic, which includes a description of:c. Any specific limitation regarding the topic Boundary.

TAISEI Environmental Social Governance Report 2022-Nov. 270

AR: P.20-21
AR: P.43-44

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Reasons forDisclosures

Requirements

No.

Omission/Additional
Informationa. An explanation of how the organization manages the topic.
103-2

b. A statement of the purpose of the management approach.

AR: P.20-21

c. A description of the following, if the management approach includes

AR: P.43-44

that component:

103-3

a. An explanation of how the organization evaluates the management
approach, including:

TAISEI Environmental Social Governance Report 2022-Nov. 271

AR: P.20-21
AR: P.43-44
AR: P.53-66

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200 series (Economic topics)
Reasons forDisclosures

Requirements

No.

Omission/Additional
Information

GRI 201:Economic Performance
AR: P.88-90
SR: P.66
201-1

Direct economic value generated and distributed

Web:Community
activities andvolunteering
investment costs
SR: P.12-26

201-2

Financial implications and other risks and opportunities due to climatechange

AR: P.20-21
AR: P.43-44
AR: P.47-50
AR: P.53-66

201-3

Defined benefit plan obligations and other retirement plans

SR: P.70-73

201-4

Financial assistance received from government-

GRI 202: Market Presence 2016
Web:Recruitment
202-1

Ratios of standard entry level wage by gender compared to local

Guidelines andminimum wage

Process(Japanese)

GRI 203: Indirect Economic Impacts 2016
AR: P53-66
AR: P.97-100
203-1

Infrastructure investments and services supported

Web: Community
activities andvolunteering
investment costs

203-2

Significant indirect economic impacts -GRI 204: Procurement Practices
TAISEI Environmental Social Governance Report 2022-Nov. 272

AR: P.20-21

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Reasons forDisclosures

Requirements

No.

204-1

Omission/Additional
Information

Proportion of spending on local suppliers-

GRI 205: Anti-corruption
205-1

Operations assessed for risks related to corruption

AR: P.62

205-2

Communication and training about anti-corruption policies and

AR: P.74-76

procedures

AR: P.45-46
AR: P.97-100
AR: P.62

205-3

Confirmed incidents of corruption and actions taken

AR: P.74-76
AR: P.97-100

GRI 206: Anti-competitive Behavior

206-1

Legal actions for anti-competitive behavior, anti-trust, and monopoly
practices

AR: P.62
AR: P.74-76
AR: P.97-100

GRI 207: Tax 2019
207-1

Approach to tax

AR: P.74-76

207-2

Tax governance, control, and risk management

-

207-3

Stakeholder engagement and management of concerns related to tax-

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300 series (Environmental topics)
Reasons forDisclosures

Requirements

No.

Omission/Additional
Information

GRI 301:Materials

301-1

Materials used by weight or volume

Web: Environment
Data
AR: P.97-100

301-2

Recycled input materials used

Web: Environment
Data

301-3

Reclaimed products and their packaging materials-

GRI 302: Energy
AR: P.97
302-1

Energy consumption within the organization

Web: Environment
Data

302-2

Energy consumption within the organization

AR: P.97

302-3

Energy intensity

Web: Environment
Data

302-4

Reduction of energy consumption

-

302-5

Reductions in energy requirements of products and services-

GRI 303: Water
AR: P.57
303-1

Interactions with water as a shared resource

Web: Water
Web: Environment
Data

303-2

Management of water discharge-related impacts

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Reasons forDisclosures

Requirements

No.

Omission/Additional
Information
AR: P.97

303-3

Water withdrawal

Web: Water
Web: Environment
Data
AR: P.97

303-4

Water discharge

Web: Water
Web: Environment
Data
AR: P.97

303-5

Water consumption

Web: Water
Web: Environment
Data

GRI 304: Biodiversity
AR: P.58
Web: For Realization
304-1

Operational sites owned, leased, managed in, or adjacent to, protectedof a Nature Co-

areas and areas of high biodiversity value outside protected areas

Existing Society
Web: Environment
Data
AR: P.58
Web: For Realization

304-2

Significant impacts of activities, products, and services on biodiversityof a Nature CoExisting Society
Web: Environment
Data
AR: P.58
Web: For Realization

304-3

Habitats protected or restoredof a Nature CoExisting Society
Web: Environment
Data

304-4

IUCN Red List species and national conservation list species with
habitats in areas affected by operations

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Reasons forDisclosures

Requirements

No.

Omission/Additional
Information

GRI 305: Emissions 2016
AR: P.48-50
AR: P.45-46
AR: P.53-56
AR: P.97
305-1

Direct (Scope 1) GHG emissions

Web: For Realizationof a DecarbonizedSociety
Web: Environment
Data
AR: P.48-50
AR: P.45-46
AR: P.53-56
AR: P.97

305-2

Energy indirect (Scope 2) GHG emissions

Web: For Realizationof a DecarbonizedSociety
Web: Environment
Data
AR: P.48-50
AR: P.45-46
AR: P.53-56
AR: P.97

305-3

Other indirect (Scope 3) GHG emissions

Web: For Realizationof a DecarbonizedSociety
Web: Environment
Data
AR: P.55-56
AR: P.97
Web: For Realization

305-4

GHG emissions intensityof a DecarbonizedSociety
Web: Environment
Data

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Reasons forDisclosures

Requirements

No.

Omission/Additional
Information
AR: P.97
Web: For Realization

305-5

Reduction of GHG emissionsof a DecarbonizedSociety
Web: Environment
Data

305-6

305-7

Emissions of ozone-depleting substances (ODS)

Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air
emissions

AR: P.97
Web: Environment
Data

GRI 306: Effluents and Waste
AR: P.97
Web: For Realizationof a Safety Secured
306-1

Water discharge by quality and destination

Society
Web: Water
Web: Environment
Data
AR: P.97

306-2

Waste by type and disposal method

Web: Environment
Data
AR: P.59
AR: P.97
Web: For Realization

306-3

Significant spillsof a Safety Secured
Society
Web: Water
Web: Environment
Data

306-4

Transport of hazardous waste

Not applicable

306-5

Water bodies affected by water discharges and/or runoff-

GRI 307: Environmental Compliane

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Disclosures
No.

Reasons for
Requirements

Omission/Additional
Information
AR: P.59
AR: P.91
Web: For Realization

307-1

Non-compliance with environmental laws and regulationsof a Safety Secured
Society
Web: Environment
Data

GRI 308: Supplier Environmental Assessment
308-1

a. New suppliers that were screened using environmental criteria
AR: P.58
AR: P.62

308-2

Negative environmental impacts in the supply chain and actions taken

Web: Promotion of
Supply Chain
Management

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400 series (Social topics)
Reasons forDisclosures

Requirements

No.

Omission/Additional
Information

GRI 401: Employement
401-1

401-2

401-3

New employee hires and employee turnover
Benefits provided to full-time employees that are not provided totemporary or part-time employees

Parental leave

AR: P.91-94

AR: P.97-101

AR: P.45-46
AR: P.97-100

GRI 402: Labor/Management Relations* When an employee
is transferred for abusiness reason,
402-1

Minimum notice periods regarding operational changes

such an employee isnotified immediately
after the decision ismade.

GRI 403: Occupational Health and Safety
AR: P.63
AR: P.74-78
403-1

Workers representation in formal joint management–worker health andWeb: Thoroughsafety committees

Management ofOccupational Healthand Safety

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Reasons forDisclosures

Requirements

No.

Omission/Additional
Information
AR: P.45-46
AR: P.63
AR: P.74-78
Web: ThoroughManagement ofOccupational Health403-2

Hazard identification, risk assessment, and incident investigationand Safety
Web: Realization of
an Attractive Working
Environment That Is
Good to Work in
Web: HealthManagement
AR: P.78
Web: ThoroughManagement ofOccupational Healthand Safety403-3

Occupational health services

Web: Realization of
an Attractive Working
Environment That Is
Good to Work in
Web: HealthManagement
Web:ThoroughManagement ofOccupational Healthand Safety

403-4

Worker participation, consultation, and communication on occupational

Web: Realization ofhealth and safety

an Attractive Working
Environment That Is
Good to Work in
Web: HealthManagement

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Reasons forDisclosures

Requirements

No.

Omission/Additional
Information
AR: P.97-100
Web: ThoroughManagement ofOccupational Healthand Safety

403-5

Worker training on occupational health and safety

Web: Realization of
an Attractive Working
Environment That Is
Good to Work in
Web: HealthManagement
AR: P.63
AR: P.64
AR: P.97-100
Web: ThoroughManagement ofOccupational Health403-6

Promotion of worker healthand Safety
Web: Realization of
an Attractive Working
Environment That Is
Good to Work in
Web: HealthManagement
AR: P.63
AR: P.64
AR: P.91-94
Web: ThoroughManagement of

403-7

Prevention and mitigation of occupational health and safety impacts
directly linked by business relationships

Occupational Healthand Safety
Web: Realization of
an Attractive Working
Environment That Is
Good to Work in
Web: HealthManagement

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Reasons forDisclosures

Requirements

No.

Omission/Additional
Information
AR: P.63
Web: ThoroughManagement ofOccupational Health403-8

Workers covered by an occupational health and safety management
systemand Safety
Web: Realization of
an Attractive Working
Environment That Is
Good to Work in
Web: HealthManagement
AR: P.11-12
AR: P.63
AR: P.64
AR: P.97-100
AR: P.45-46

403-9

Work-related injuries

Web: ThoroughManagement ofOccupational Healthand Safety
Web: HealthManagement
AR: P.97-100

403-10Work-related ill health

Web: HealthManagement

GRI 404: Training and Education 2016
AR: P.97-100
404-1

Average hours of training per year per employee

Web: Enhancing
Employee Potential
AR: P.97-100
Web: Enhancing

404-2

Programs for upgrading employee skills and transition assistance

Employee Potential

programs

Web: Community
Involvement andDevelopment

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Reasons forDisclosures

Requirements

No.

404-3

Omission/Additional
Information

Percentage of employees receiving regular performance and careerdevelopment reviews

AR: P.97-100

GRI 405:Diversity and Equal Opportunity 2016
AR: P.65
AR: P.97-100
405-1

Diversity of governance bodies and employees

Web: Promotion ofDiversity andInclusion

405-2

Ratio of basic salary and remuneration of women to men

AR: P.97-100

GRI 406:Non-Discrimination 2016
Web: Compliance406-1

Incidents of discrimination and corrective actions taken

Web: Respect for
Human Rights

GRI 407: Freedom of Association and Collective Bargaining 2016
AR: P.47
AR: P.62
Web: Promotion of
Supply Chain
407-1

Operations and suppliers in which the right to freedom of associationand collective bargaining may be at risk

Management
Web: Human Rights
DD
Web: Realization of
an Attractive Working
Environment That Is
Good to Work in

GRI 408: Child Labor 2016

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Reasons forDisclosures

Requirements

No.

Omission/Additional
Information
AR: P.62
AR: P.47
Web: Promotion of
Supply Chain
Management408-1

Operations and suppliers at significant risk for incidents of child labor

Web: Human Rights
DD
Web: Realization of
an Attractive Working
Environment That Is
Good to Work in

GRI 409: Forced or Compulsory Labor 2016
AR: P.47
AR: P.62
Web: Promotion of
Supply Chain
409-1

Operations and suppliers at significant risk for incidents of forced orcompulsory labor

Management
Web: Human Rights
DD
Web: Realization of
an Attractive Working
Environment That Is
Good to Work in

GRI 410:Security Practices 2016 M（At present, no410-1

Security personnel trained in human rights policies or procedures

information iscollected）

GRI 411: Rights of Indigenous Peoples 2016
AR: P.62
Web: Promotion of
411-1

Incidents of violations involving rights of indigenous peoples

Supply Chain
Management
Web: Human Rights
DD

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Reasons forDisclosures

Requirements

No.

Omission/Additional
Information

GRI 412:Human Rights Assessment 2016
AR: P.47
AR: P.62
412-1

Operations that have been subject to human rights reviews or impact
assessments

Web: Promotion of
Supply Chain
Management
Web: Human Rights
DD

412-2

Employee training on human rights policies or procedures

AR: P.97-100
AR: P.47
AR: P.62

412-3

Significant investment agreements and contracts that include humanrights clauses or that underwent human rights screening

Web: Promotion of
Supply Chain
Management
Web: Human Rights
DD

GRI 413: Local Communities 2016
AR: P.58
Web: For Realization
413-1

Operations with local community engagement, impact assessments,
and development programsof a Nature CoExisting Society
Web: Community
Involvement andDevelopment

413-2

Operations with significant actual and potential negative impacts on
local communities

GRI 414: Supplier Social Assessment 2016

TAISEI Environmental Social Governance Report 2022-Nov. 285

Not applicable

https://www.taisei-sx.jp/

Reasons forDisclosures

Requirements

No.

Omission/Additional
Information
AR: P.62
Web: Supply
Chain(Environment)

414-1

New suppliers that were screened using social criteria

Web: Promotion of
Supply Chain
Management
Web: Human Rights
DD
AR: P.62
Web: Supply
Chain(Environment)

414-2

Negative social impacts in the supply chain and actions taken

Web: Promotion of
Supply Chain
Management
Web: Human Rights
DD

GRI 415: Public Policy 2016
415-1

Political contributions

AR: P.97-100

GRI 416: Customer Health and Safety 2016
AR: P.45-46
416-1

Assessment of the health and safety impacts of product and service

AR: P.60

categories

AR: P.68
AR: P.97-100

416-2

Incidents of non-compliance concerning the health and safety impacts
of products and services

AR: P.97-100

GRI 417:Marketing and Labeling 2016

417-1

417-2

417-3

Requirements for product and service information and labeling

Incidents of non-compliance concerning product and service
information and labeling
Incidents of non-compliance concerning marketing communications

TAISEI Environmental Social Governance Report 2022-Nov. 286

Web: Technology &Solution--

https://www.taisei-sx.jp/

Reasons forDisclosures

Requirements

No.

Omission/Additional
Information

GRI 418:Customer Privacy 2016

418-1

Substantiated complaints concerning breaches of customer privacy

AR: P.66

and losses of customer data

AR: P.97-100

GRI 419: Socioeconomic Compliance 2016

419-1

Non-compliance with laws and regulations in the social and economic

AR: P.66

area

AR: P.74-78※ This Website and Annual Report 2022 have been prepared in accordance with the Core option of the GRI Sustainability Reporting Standards.
※ AR：Annual Report 2022 (Octorber,2021) / SR：Taisei Security Report : The 162nd Business Term

Copyright TAISEI CORPORATION All Rights Reserved.

TAISEI Environmental Social Governance Report 2022-Nov. 287

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ISO26000 Comparison Table

Organizational Governance

Human Rights

Fair Operating Practices

Consumer Issues

Labor Practices

The Environment

Community Involvement and Development

AnnualCore Subjects/Issues

References

Report2022
pages

Top Commitment
Sustainability Management
Corporate Governance
6.2

Organizational

Thorough Compliance / Restructuring of the Group

P.2.43-66,

Governance

Governance System

67-78,97-100

Risk Management
Stakeholder Engagement
Investor Relations

6.3

6.3.3

6.3.4

6.3.5

Human Rights

Due diligence

Human Rights

Respect for Human Rights

P.2.47,62-65,

Human Rights Due Diligence

74-75,97-100

Human Rights Due Diligencerisk situations

Avoidance ofcomplicity

Human Rights Due Diligence
Promotion of Supply Chain Management

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AnnualCore Subjects/Issues

References

Report2022
pages

Respect for Human Rights(Contacts for Consultations
regarding Human Rights Violations)

6.3.6

Resolvinggrievances

Thorough Compliance /Restructuring of the Group
Governance System（Whistleblowing and Consultation
System）
Thorough Management of Occupational Health and
SafetyDiscrimination
6.3.7

and

Promotion of Diversity and Inclusion

vulnerable
groups

6.3.8

Civil andRealization of an Attractive Working Environment That Is

political rights

Good to Work in(Labor-management relations)

Economic,
6.3.9

social andPromotion of Diversity and Inclusion

cultural rights
Respect for Human Rights
Fundamental
6.3.10principles andrights at work

6.4

Good to Work in(Labor-management relations)
Promotion of Supply Chain Management

Labor Practices

Employment
6.4.3

Realization of an Attractive Working Environment That Is

andPromotion of Diversity and Inclusion

P.2.47,62-65,

Realization of an Attractive Working Environment That Is

97-100Good to Work in(Labor-management relations)employment
relationships

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AnnualCore Subjects/Issues

References

Report2022
pages

Enhancing Employee Potential
Cultivation of Technical Staff and Securing of Human
Conditions of
6.4.4

Resources

work and

Promotion of Diversity and InclusionsocialRealization of an Attractive Working Environment That Is

protection

Good to Work in(Labor-management relations)Thorough Management of Occupational Health and
SafetyPromotion of Diversity and Inclusion
6.4.5

SocialRealization of an Attractive Working Environment That Is

dialogue

Good to Work in(Labor-management relations)
Stakeholder Engagement

Health Management
6.4.6

Health andThorough Management of Occupational Health andsafety at work

SafetyRisk Management

Human
6.4.7

development
and training in
the workplace

6.5

6.5.3

Enhancing Employee Potential
Cultivation of Technical Staff and Securing of Human
Resources

The Environment

Prevention ofpollution

Realization of a Sustainable and Environmentally Friendly

P.2.41-59,

Society (TAISEI Green Target 2050)

62,97-100

For Realization of a Recycling Oriented Society
For Realization of a Safety Secured Society
Water
Environmental Data

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AnnualCore Subjects/Issues

References

Report2022
pages

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

6.5.4

Sustainable
resource use

For Realization of a Recycling Oriented Society
For Realization of a Nature Co-Existing Society
Water
Environmental Data

Realization of a Sustainable and Environmentally Friendly
Society (TAISEI Green Target 2050)
Climate6.5.5changemitigation andadaptation

For Realization of a Decarbonized Society
Information Disclosure Based on the Recommendations
by The Task Force on Climate-Related Financial
Disclosures (TCFD)
Environmental Data

Protection of
the

6.5.6

For Realization of a Nature Co-Existing Society

biodiversity

Social and Cultural Contribution activities

andnaturalhabitats

6.6.3

Society (TAISEI Green Target 2050)

environment,

restoration of

6.6

Realization of a Sustainable and Environmentally Friendly

Water
Environmental Data
Stakeholder Engagement

Fair Operating practices

Anticorruption

Corporate GovernanceP.2.60.61,51-

Thorough Compliance /Restructuring of the Group

52,58,

Governance System

66,78,97-100

Risk Management
Promotion of Supply Chain Management

Corporate Governance
Responsible
6.6.4

political
involvement

Thorough Compliance /Restructuring of the Group
Governance System
Risk Management

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AnnualCore Subjects/Issues

References

Report2022
pages

Corporate Governance
6.6.5

Fair

Thorough Compliance /Restructuring of the Group

competition

Governance System
Risk Management

Promotingsocial6.6.6

responsibility

Corporate GovernanceThorough Compliance /Restructuring of the Group
Governance Systemin the value

Risk Management

chain

Promotion of Supply Chain Management

Corporate GovernanceThorough Compliance /Restructuring of the Group
Governance System
6.6.7

Respect for

Risk Management

property rights

Technical Development for Realizing a Sustainable
Society
Management of Information and Intellectual Property
Rights6.7

Consumer Issues
Fairmarketing,factual and6.7.3

unbiased
information

Ensuring Quality and Improving Technolog
Technical Development for Realizing a Sustainable
Society
Management of Information and Intellectual Property
Rightsand faircontractual
practice

Thorough Compliance /Restructuring of the Group
Governance System

Ensuring Quality and Improving Technolog
Protecting
6.7.4

consumers'

Management of Information and Intellectual Property
Rightshealth andsafetyThorough Compliance /Restructuring of the Group
Governance System

TAISEI Environmental Social Governance Report 2022-Nov. 292

P.2,60,61,5152,58,
66,78,97-100

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AnnualCore Subjects/Issues

References

Report2022
pages

Ensuring Quality and Improving Technolog
6.7.5

Sustainableconsumption

Management of Information and Intellectual Property
RightsConsumer
service,
6.7.6

support, andcomplaint anddisputeEnsuring Quality and Improving Technolog
Management of Information and Intellectual Property
Rightsresolution
Consumer
6.7.7

data
protection andprivacy

Ensuring Quality and Improving Technolog
Management of Information and Intellectual Property
RightsAccess to
6.7.8

essential

Ensuring Quality and Improving Technolog

services

6.7.9

6.8

Education andawareness

Ensuring Quality and Improving Technolog
For Realization of a Nature Co-Existing Society

Community Involvement and Development
Contribution to Local Communities

P.2,51-52,58,

Social and Cultural Contribution activities

61,97-100

For Realization of a Nature Co-Existing Society
6.8.3

Community
involvement

Examples of Environmental Solutions
Technical Development for Realizing a Sustainable
Society
Stakeholder Engagement

6.8.4

Education andcultureContribution to Local Communities
Social and Cultural Contribution activities

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AnnualCore Subjects/Issues

References

Report2022
pages

Contribution to Local Communities
Employment
6.8.5

creation andskillsdevelopment

Social and Cultural Contribution activities
For Realization of a Nature Co-Existing Society
Examples of Environmental Solutions

Social and Cultural Contribution activities
Technology
6.8.6

For Realization of a Nature Co-Existing Society

development

Technical Development for Realizing a Sustainable

and accessSociety
Examples of Environmental Solutions

Wealth and6.8.7

incomecreationContribution to Local Communities
Social and Cultural Contribution activities

Contribution to Local Communities
6.8.8

HealthSocial and Cultural Contribution activities
Health Management

6.8.9

Socialinvestment

Contribution to Local Communities
Social and Cultural Contribution activities

Copyright TAISEI CORPORATION All Rights Reserved.

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Information Disclosure Based on TCFD
Recommendations

Governance

Strategies

Risk Management

Indicators and Targets

Information Disclosure Based on the Recommendations
by The Task Force on Climate-Related Financial
Disclosures (TCFD)

Climate change and resulting natural disasters are occurring more frequently and on a larger scale than before, and thesafety and security of our homes and lives are threatened. These changes have created a major trend toward decarbonization leading to the adoption of the Kyoto Protocol, the Paris Agreement, and the SDGs. They have had a significant impact
on the policies of countries around the world, including Japan, and there are growing expectations for the role thatcompanies will play.
The Taisei Group recognized the impact of climate change on its business as a crucial management issue and endorsed the
TCFD recommendations in July 2020. In response to the government’s Carbon Neutrality Declaration in October 2020, we
have reviewed the TAISEI Green Target 2050 in 2021, and are aiming to achieve “virtually zero CO2 emissions frombusiness activities” by 2050. In addition to our efforts to reduce carbon emissions, we shall work with the value chain tocontribute to the realization of a decarbonized society.
Furthermore, to contribute to the achievement of a decarbonized society, in February 2022, we established new Group
Environmental Targets for 2030 as a milestone in our long-term environmental targets, the TAISEI Green Target 2050. While
we will continue to promote information disclosure based on the TCFD recommendations, we will pay close attention to theimpact of climate change and the government’s policies and social trends for the reduction of CO2 emissions. We will takeappropriate measures, and aim to achieve a sustainable society and the improvement of corporate value.

Governance

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As meeting bodies to deliberate on proposals related to climate changes, we have set up the Sustainability Committee
and the Environment Committee. After discussion by each meeting body, matters are discussed and determined by the
Board.
Important policies and measures related to ESG in general are discussed by the Sustainability Committee, which is acommittee of the Board. The formulation of basic policies and medium to long-term targets related to environmental
management are deliberated on by the Environment Committee, which is an advisory body to the Management
Committee.
Proposals deliberated on and decided by the Board are communicated by the Management Committee to each businessdivision and Group company, and are reflected in their management plans and business operations. Then, the details areincorporated into the specific action items at a construction site. We will also request our suppliers to cooperate.

Chart of Climate-Related Governance System

Strategies
We recognize various Medium- To Long-Term risks including the major ones listed above. We conducted scenario
analysis on one of them, climate change risk.
Climate change risk includes risk caused by transitions such as the reinforcement of regulations to minimize temperature
increases and changes in the market, and risk that arises with physical changes such as acute abnormal weather that
occurs due to higher temperatures.
To establish business strategies that flexibly respond to climate change, we use multiple scenarios to evaluate the impact
on our business. For the scenario analysis, we refer to the Sustainable Development Scenario (SDS) by the International
Energy Agency (IEA) for the scenario where transitions will progress, and the Representative Concentration Pathways(RCP) scenario by the Intergovernmental Panel on Climate Change (IPCC), etc. for cases where physical changes will
progress. In this way, we verify the validity of our business strategy.

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Major risks and opportunities concerning climate change

Classification

Risk/Opportunity

Description

Impactlevel

Decrease in private construction

Shift
Marketinvestment and equipment investment

shrinkage anddue to the introduction of carbon pricing

increaseand the reinforcement of CO2 emission
regulations

in construction
cost due to theintroduction of

Risk

MediumIncrease in construction costs due to ahike in the prices of building materials
and electricity

carbon pricing
and tightened

Increase in costs due to the application

CO2 emission
regulationsof carbon pricing to the CO2 that is

Increase in

Increase in demand for renewal todemand forrenewalLow

generated by our business activities

Opportunity

improve energy efficiency of existing
facilities

TAISEI Environmental Social Governance Report 2022-Nov. 297

Mediumhttps://www.taisei-sx.jp/

Classification

Risk/Opportunity

Description

Increase inenergy-saving

level

Increase in demand related to ZEB anddemand related
toImpactsmart cities
Opportunity

Expansion of demand for renewable

Mediumenergy-related works such as offshore

and renewablewind power

energyDecline in productivity due to an increase
in damage to the health (heat stroke,etc.) of skilled construction workers andIncrease in

the avoidance of extremely hot hours

averagetemperature

Risk

Accelerated worker shortage due to theMediumdecline in the number of new workers induring summer

the construction industry because of thedegraded working environment

Increase inWork suspension, process delay, andseverity andfrequency of

increase in labor and temporary work

Risk

costs due to damage to construction

naturalMediumworksites, etc.

disasters

Increase in procurement costs andPhysicalprocess delays due to damage to

Risk

High

suppliers
Increase in

Increase in demand to improve theseverity andfrequency ofOpportunity

naturalresilience of equipment andinfrastructure against intensified

High

disasters

disasters

Increase in new construction andOpportunity

relocation works due to growing demandHigh

for relocation from disaster hazard areas

Increase in the capital investment for
Rise in sea
level

Opportunity

improved resilience in areas with a floodrisk and demand for relocation fromHigh

areas with a flood risk

Note: Possible works are classified by the significance of impact as “High,” “Medium” and “Low.”

Countermeasures for Climate Change
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Countermeasures required for the risks and opportunities identified with scenario analysis are reflected in the Medium-TermBusiness Plan (2021–2023). They are also incorporated into the business operations of each division. Accordingly, we will
reduce the risks associated with climate change and expand opportunities.

Owning renewable energy power sources for the
purpose of covering the power consumption of theGroup
Response to the market shrinkage and construction

Consideration and introduction of fuel improvement

cost increase due to the introduction of carbon

measures (biodiesel fuel/fuel additives) for

pricing and the tightening of laws and regulations

construction worksites
Enhancement of green procurement such as thedevelopment and utilization of carbon-recycle
concrete

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

Development and commercialization of nextgeneration high-performance ZEB and thedevelopment of energy support services
Technological development that contributes to theindustries that are expected to grow through avirtuous cycle of the economy and the environment

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

construction worksites due to abnormal weather

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

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

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

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Risk Management
As for climate change risk, we established a company-wide TCFD Working Group (TCFD WG) to identify the climatechange risk related to each department’s business and analyze the degree of impact on the business. We also conduct
evaluations relative to risks other than climate change risk, and confirm that the necessary measures are being taken. The
risks analyzed by the TCFD WG are deliberated by the Sustainability Committee and reported to the Board meeting.
In addition, it is consistent with the risks evaluated and identified with the environmental management system (EMS)
based on the international standard ISO 14001.

Indicators and Targets
In the environmental targets for fiscal 2050 "TAISEI Green Target 2050," we set the goal of “virtually zero” CO₂ emissions
from business activities. Moreover, we set out “Realization of a Sustainable and Environmentally Friendly Society” as oneof the materiality (our important issues), and set KPIs for fiscal 2023 using the CO2 emission reduction rate as an index.
We are aiming to reduce CO₂ emissions through the implementation of priority measures under the Medium-TermBusiness Plan (2021-2023). Going forward, scenario analysis will be carried out in stages to identify potential risks andformulate and implement business strategies.
We will also actively promote green projects through the issuance of green bonds.

CO2 emission reduction target for each fiscal
year

Scope 1+2 reduction rate of CO2 emissions per
sales*1(Taisei Group)
Scope 1+2 reduction rate of total CO2
emissions*1(Taisei Group)

FY2023

FY2030FY2050KPITAISEI Green Target 2050

-15%

-50%

-6%

-40%
We will aim for “virtually zero” CO2

At construction stage: Reduction rate of CO2
emissions per sales*2 (Non-consolidated)
At construction stage: Reduction rate of total CO2
emissions*2 (Non-consolidated)emissions from business activities.
-41%

-64%

-46%

-66%

In addition to our reduction efforts,

At building operation stage: Reduction rate ofdesign-build estimated CO2 emissions*2(Nonconsolidated)

-43%

-59%

we will work on the value chain,and contribute to the realization ofa decarbonized society.

*1 Compared to FY2019. *2 Compared to FY1990.

Refer to:
For Realization of a Decarbonized Society

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Editorial Policy

Scope of Reporting

Reference Guidelines

Independent Assurance

Scope of Reporting
Editorial policy

To promote sustainability initiatives, we have established the Fundamental Policy on
Sustainable Development and are implementing sustainability management with reference toISO26000, the international standard for organizational social responsibility.
Annual Report is intended to provide investors, shareholders, and other stakeholders with aneasy-to-understand overview of the Taisei Group’s value creation process as a whole.
This Website “sustainability” complements the Taisei Annual Report 2021.We provide
detailed ESG and sustainability activity iso26000 information on our website. And wepublished the Environmental Social Governance Report 2022 (PDF version), it is a

consolidated PDF version of the sustainability-related information on our website as of theend of November 2022.
Period of

The fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022). Some contents

Coverageconcern the data for the previous fiscal year or the most recent activities.

Scope ofThis report covers the activities of Taisei Corporation and the Taisei Group companies

Coverage(consolidated subsidiaries) as of March 31, 2022, unless otherwise noted.

Publication Date

November,2022(Previous publication date: September 2021; next publication scheduled for September
2022)

Reference Guidelines
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GRI Sustainability Reporting Standards
ISO26000: 2010 (International Organization for Standardization)
United Nations Global Compact
Integrated Reporting Framework (International Integrated Reporting Council: IIRC)
Guidance for Collaborative Value Creation (METI)SASB (Sustainability Accounting Standards Board)
Environmental Reporting Guidelines (2018 Version) (Ministry of Environment)
TCFD (Task Force on Climate-Related Financial Disclosures)

Independent Assurance
Environmental Data
Third-Party Assurance on This Report** “Independent Assurance Report” on the environment data and indices by Ernst & Young Shin Nihon LLC

Copyright TAISEI CORPORATION All Rights Reserved.

TAISEI Environmental Social Governance Report 2022-Nov. 302

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TAISEI Environmental Social Governance Report 2022-Nov. 305