Raison d'Être of Taisei Corporation

Taisei Group Philosophy

To Create a Vibrant Environment for
All Members of Society
The Taisei Group Philosophy of “to create a vibrant environment for all members ofsociety” represents our objectives (goals) to be pursued by the Taisei Group. We seekin an environmentally sustainable manner to create safe and attractive spaces withexceptional value and to create a global community filled with hopes and dreams forthe benefit of future generations.
In response to the rise of environmental problems on a global scale, it clarifies the values that weshould cherish and the future state that we should achieve as a company. Based on the Philosophy,
the Group is committed to addressing changing social needs and issues and to contributing to asustainable society through the creation of high-quality social capital.

Group Slogan

The Taisei Group Philosophy, the Taisei Spirit and the Action Guidelines for Taisei
Personnel and the Taisei Group as a Whole can be summed up in this slogan.
It shows our desire to fulfill our responsibilities to society and continue to be a leader in thedevelopment of a sustainable society through efforts to achieve the Taisei Group Philosophy.
For more on the Taisei Group Philosophy, the Taisei Spirit and the Action Guidelines for Taisei Personnel and theTaisei Group as a Whole:
https://www.taisei.co.jp/english/profile/philosophy/

TAISEI VISION 2030

The Ever-Evolving CDE3 (cubed) Company
In 2021, we formulated our 10-year vision that the Group aims at, “TAISEI VISION
2030,” on the basis of the medium to long-term external environment and structuralchanges, as well as the Taisei Group Philosophy and Taisei Spirit. CDE3 (cubed)
expresses domains in which we are making efforts to realize the VISION, and we aim
to be “The Ever-Evolving CDE3 (cubed) Company—A pioneering corporate groupcontributing to the development of a resilient society where people can live affluent
and cultural lives.”“CDE3 (cubed)” (Construction, Development, Engineering, Energy and Environment) expresses
the five business domains in which the Taisei Group makes particular efforts in order to realize“TAISEI VISION 2030.”

Providing Sustainable ValueOur Structure of Values and Policies

Taisei Group Philosophy
To Create a Vibrant Environment for
All Members of Society

Taisei Spirit
Taisei Group
Philosophy

Active and Transparent Culture /Value Creation / Evolution of Tradition
Key Concepts That All Taisei Group Officers andEmployees Must Adhere to in Order to Pursue
and Realize the Taisei Group Philosophy

Objectives to be Pursued by the Taisei Group(Goals)Taisei Spirit
Materiality

Action Guidelines for Taisei
Personnel and the Taisei Group
as a Whole
Individual Policies

Value Provided to Key
Stakeholders
Employee* / Labor Unions“Works Remaining on the Map”:
A Proud life
Engagement methods

Delivery of the President’s Message(monthly) / Exchange of opinions with labor
unions / Engagement survey / Establishment ofvarious consultation contacts

Shareholders / Investors

Sound financial position and increased
corporate value
Engagement methods

General meeting of shareholders, Securities
report, IR briefing, Website/Annual report

Clients

Construction of safe, secure andcomfortable infrastructure
Engagement methods

Customer satisfaction survey, Website, Annual
report, CS (Customer) Center

Business Partners*

Provision of a fair and equitablebusiness environment and the development of capacity building
Engagement methods

Holding various training and seminars / Establishment of consultation contacts / Sustainableprocurement questionnaire survey

Communities / NPOs / NGOs
Sustainable and abundant earth
Engagement methods

Tours of project sites and the Taisei Advanced
Center of Technology / Open innovation /Natural environment conservation activities /Promotion of construction culture*Supplemental information on employees:
We consider employees as invaluable assets and refer tothem as ‘human capital’ in this Annual Report.
*Supplemental information on business partners:“Business partners” refers to companies such as
subcontractors to whom business contracted by clientsis outsourced, specialized construction companies,
and suppliers.

Overall
Principles ofConduct

OverallManagement
Perspective

Six Types ofManagement Capital
Human Capital
The Taisei Group’s greatest asset is its
human capital. In order to promote thecompany’s value creation, we share theTaisei Group Philosophy to ensure thateach staff member stays highly
engaged and work on various measures
such as enhancing human resources
development, training programs andre-skilling.

Social Relationship Capital
We integrate the needs of various stakeholders and the expectations of society
into our business activities and work to
help resolve social issues through ourbusiness activities while adapting tochanges in the market environment.

Intellectual Capital
Taisei’s proprietary technological development and patented technologies that
contribute to resolving environmental
and social issues will lead to thecompany’s sustainable competitive
advantage. We will build a solid foundation through further promotion of DX
and open innovation initiatives.

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

Eight Issues to Be Dealt
with as Materiality
The Materiality of the Taisei Group represents
important issues to be dealt with that havethe potential to have a significant impact on
both society and the Group from short,medium, and long-term perspectives. We
consider them as what connects global
issues such as SDGs with the Group’s structure of values and policies.

Environment (E)① Realization of a sustainable and environmentally friendly society

Social (S)② Ensuring quality and improving technology③ Technical development for realizing asustainable society④ Promotion of supply chain management⑤ Thorough management of occupational
health and safety⑥ Cultivation of technical staff and securing
human resources⑦ Realization of an attractive working environment that is good to work in

Natural CapitalIn addition to promoting efforts toaddress climate change issues, we willconsider the impact of our businessactivities on ecosystems, strive forsustainable procurement, waste
management, and conservation of water
resources and biodiversity, and promotebetter nature-positive initiatives.

Manufacturing Capital
We have construction sites all over theworld. We will provide our clients withexcellent buildings and construction
services that are resilient and pioneeringin consideration of the environment andsocial issues.

Financial CapitalSee pp.86 to 94.

Governance (G)⑧ Thorough complianceand restructuring of the Group governancesystemTowards value creation
Based on the Taisei Group Philosophy,
which expresses our objectives to pursue,
the Taisei Group works together with all
stakeholders to integrate six types ofmanagement capitals and realize “TheEver-Evolving CDE3 (cubed) Company.” Wehelp resolve various social issues throughcorporate activities including initiatives for
The Materiality to contribute to society.
This is our ‘value creation story.’

TA I SE I A N N UA L R E P O R T 2 0 2 2

2

04 About the Taisei Group

Taisei Group Annual Report 2022

04 Message from the President
07 Tales of Past and Present of the Taisei Group
11 Financial and Non-Financial Summary

Editorial Policy This report is intended to provide investors, shareholders, andother stakeholders with an easy-to-understand overview of
the Taisei Group’s value creation process as a whole, such as
business models, competitive advantages, strategies, andfoundations for realizing the Group Philosophy, and initiatives
for sustainable enhancement of corporate value and resolutionof social issues. Further details about the initiatives related toEnvironment, Society, and Governance (ESG) and sustainability are available in the sustainability section on Taisei
Corporation’s official website.
https://www.taisei-sx.jp/english/

13 Aiming to Realize Our Vision
13 Sustainability Dialogue
19 Growth Strategy and Sustainability• Medium- to Long-Term External Environmental Recognition
and Risks• Materiality of the Taisei Group• Message from Chief Sustainability Officer (CSO)• TAISEI VISION 2030 Medium-Term Business Plan
(2021-2023)• Group Business Strategy• Overview of Sustainability-Focused Management andMedium-Term Business Plan Initiatives
35 Special Feature 1 DX × SDGs Talk
39 Special Feature 2 Human Rights × SDGs Talk

43 Sustainability Management• Structure of Value and Fundamental Policy on
Sustainable Development• Materiality and KPIs 2021 – 2023
• Sustainability TOPIC 1 Human Rights and Supply Chains• Sustainability TOPIC 2 TCFD
• Sustainability TOPIC 3 Examples of Environmental Solutions
53 Materiality 1 – 8

67 Governance Section
67 Corporate Governance• Our Basic Approach to Corporate Governance• Compliance and Risk Management• Management Members• External Board Members’ Message

86 Data Section
86 Explanation and Analysis of Business Results• Consolidated Financial Statements• Taisei Corporation Organization Chart• Overseas Network• ESG Data
• Corporate Data / Stock Information• Glossary

Information Structure and Information Provision on Websites
IIRC●●●●●●

United Nations Global Compact●●●

GRI Standards●●●

ISO 26000●●●●

Environmental Reporting Guidelines

●●

TCFD

●●●●

3 T A I S E I ANNUA L R EPORT 2022

This report covers the activities of Taisei Corporation and theTaisei Group companies (consolidated subsidiaries) as ofMarch 31, 2022, unless otherwise noted.

Period ofCoverage

The fiscal year ended March 31, 2022 (April 1, 2021 toMarch 31, 2022). Some contents concern the data for theprevious fiscal year or the most recent activities.

Date of Issue

November 2022

Note Regarding Forward-Looking Statements
Opinions and predictions, etc., expressed in this report are based on the judgment of
the Company at the time of preparation of this document. Therefore, please be awarethat there is a possibility that the results of the actual target values, etc., could be
different from the stated future estimates, due to changes in various factors.

Referenced Guidelines

43 Sustainability Section

Integrated Report ●Website (Sustainability) ●Website (To Shareholders
and Investors) ●Scope ofCoverage

Corporate Governance Report ●Securities Report ●Medium-Term Business Plan ●Integrated Reporting Framework (The International Integrated
Reporting Council [IIRC])
As disclosure guidelines for materiality that lead to the preparation of this report andthe value creation process, we refer to this framework, which is a guideline fordisclosure of non-financial information.

Guidance for Integrated Corporate Disclosure and CompanyInvestor Dialogues for Collaborative Value Creation (Ministry of
Economy, Trade and Industry)
This guidance is widely used in Japan to improve the quality of dialogue withinvestors.

GRI Standards for Sustainability Reporting
We refer to this standard, which is a guideline for information disclosure regarding
sustainability. The status of information disclosure can be found in the ESG data of
this report and the Comparative Table with Global Reporting Initiative (GRI)
Standards on our website.

ISO 26000
We refer to this International Organization for Standardization (ISO) guidance standard
as a guideline for our activities. The status of our activities is reported on our website.

Environmental Reporting Guidelines (2018 Version) (Ministry of
the Environment)
Environmental reports have been prepared with reference to these guidelines, andsome of them are also included in this report.

Task Force on Climate-Related Financial Disclosures (TCFD)
In July 2020, we endorsed the TCFD Recommendations and disclosed information
based on the recommendations in this report.

WEB

GRI Standards for Sustainability ReportingWEB

ISO26000

WEB

Third-Party Assurance on This Report*

https://www.taisei-sx.jp/english/gri
https://www.taisei-sx.jp/english/iso26000/
https://www.taisei-sx.jp/english/iso26000/pdf/independent_assurance.pdf* “Independent Assurance Report” on the environment data and indices by Ernst &Young Shin Nihon LLC

Major External Evaluation (As of July 1, 2022)

Note: 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 a sponsorship,endorsement, or promotion of Taisei Corporation by MSCI or any of its affiliates. The MSCI
indexes are the exclusive property of MSCI. MSCI and the MSCI index names and logos aretrademarks or service marks of MSCI or its affiliates.

Message from the President

To Our Stakeholders
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—Apioneering corporate group contributing to the developmentof a resilient society where people can live affluent andcultural lives” based on the Taisei Group Philosophy among
other things, and kicked 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 themedium to long-term external environment and structuralchanges 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 growthof the Group to address those issues as a pioneer.

Yoshiro AIKAWA
President and Chief Executive Officer,
Representative Director

Summary of the First Year of the Medium-Term Business Plan
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 theglobal economy resulting from Russia’s invasion of Ukraine.
In the construction industry, public investment has remained firm, driven by the government’s disaster prevention
and mitigation 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 an urgent issue to respond to the changes in the market environment resulting from sharp rises in thecosts of construction materials and the crisis in Ukraine.
Under these circumstances, in terms of the operating results, orders received were decreased, net sales wereincreased, and operating income, ordinary income, and net income attributable to owners of parent were decreased.

TA I SE I A N N UA L R E P O R T 2 0 2 2

4

Message from the President

As addressing ourselves to environmental issues and respecting human rights are increasingly more importantthese days, it is necessary to address ourselves to sustainability-related issues more strategically. Accordingly, we
have centralized our organizational structure for sustainability management to establish “Sustainability Division(Integrated)”, and appointed Chief of the Division to serve as Chief Sustainability Officer (CSO) to strengthen ourefforts 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 ofa 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 targetof “realization of a sustainable and environmentally friendly society.” Such efforts include the introduction of ICP(Internal Carbon Pricing), the issuance of green bonds whose use of proceeds is investment in renewable energy
projects and investment in technological development 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 haverevised our “Human Rights Policy” with the aim to commit ourselves to contributing to the realization of an inclusive
society by voluntarily, aggressively, and proactively fulfilling our corporate responsibilities to prevent negative
impacts on human rights from our business activities. The revised Human Rights Policy clearly states the introduction of a human rights due diligence process and identifies human rights risks to be addressed with priority. We willcontinue our efforts to prevent and mitigate human rights risks by implementing various measures and conducting
follow-up surveys related to the prevention and mitigation of human rights risks, and reporting the results to theBoard 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 spiralstemming from soaring global prices and the crisis in Ukraine. In the construction industry, private construction
investment, led by 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 becareful 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 expected compared to those during FY2021. We also expect net sales to increase because our large-scaleconstruction 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 in construction projects, have been incorporated while the proportion oflarge-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
other things, in order to clarify what social issues it should help resolve to contribute to society by using its business characteristics 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 theinitiatives 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 theoperation stage of buildings after delivery and to expand green procurement. Specifically, we are focusing on (i) the

5 T A I S E I ANNUA L R EPORT 2022

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 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. We feel all of 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 theprivate sector. We believe it is necessary to utilize the knowhow obtained at the Mt. Fuji Nanryo Industrial Park,
which received the Minister of the Environment Award (sponsored by the National Institute for the Environment andNikkan Kogyo Shimbun with the support of the Ministry of the Environment), to continue to promote initiatives thatlead 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
and strengthening 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 leadto increased 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 firstunderstand the current situation. We will continuously implement improvement measures based on the results.
In addition, with the aim of improving the morale and remuneration, and further enhancing the attractiveness ofthe construction business and the Company, we will work to improve our personnel and salary systems, enhance
our human resource development and training systems, and promote diversity and inclusion. Through these andother measures, we will secure future human resources and improve job satisfaction, thereby strengthening theCompany’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 sothat people can live safe and secure lives.” I believe it is indeed the Group’s mission to build better social infrastructure by combining the Group’s advanced technological capabilities and accumulated expertise to develop
infrastructure, making cities resilient to disasters, provide high-quality buildings, engage in disaster recovery, andrealize 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
the Medium-Term Business Plan and the 150th anniversary of our foundation, while taking swift measures toaddress newly emerging challenges without failing to detect changes in the business environment, such as theeffects 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 contributeto the economic growth of Japan. In line with the pioneer spirit of Kihachiro OKURA, who saw the era of transformations as an opportunity to make 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 your understanding of and support to our efforts aimed at realizing the Taisei Group Philosophy of “to create avibrant environment for all members of society.”

TA I SE I A N N UA L R E P O R T 2 0 2 2

6About the Taisei Group

Tales of Past and Present of the Taisei Group

History of the Taisei Group
Since its foundation in 1873, the Taisei Group has been responding to the needs of the times,by creating a safe and comfortable living environment, to continue to develop. We will continue
to work towards the realization of a sustainable society by capitalizing on our technologies
and experience accumulated over 150 years of history.

Construction Business that Supported Japan’s Modernization
The history of the Company began in 1873, when our founder, Kihachiro OKURA, established
Okura Gumi Shokai. Since then, it has been contributing to Japan’s modernization and social development by building numerous infrastructure, industrial facilities, cultural facilities, and others.

Established the first corporationin the construction industry in Japan

Kihachiro OKURA,
the founder

Kihachiro OKURA, the founder of the Company, made a significant mark on the development of the Japanese economy. In
1872, he became the first private citizen to make a long-term overseas inspection tour and gained knowledge on
progressive corporate organizations and modern industrial production. Returning to Japan, he started a wide variety ofcompanies that had not existed in Japan and participated in the management. In 1887, he joined hands with Eiichi
SHIBUSAWA, Denzaburo FUJITA and others, to establish the first corporation in the construction industry in Japan,
Nippon Doboku Co., Ltd. Nippon Doboku Co., Ltd. was joined by up-and-coming engineers from all over Japan andcompleted projects including the Inner Palace of the Imperial Palace, Hepburn Hall of Meiji Gakuin University, theTokaido Line and the lock and tunnel at Lake Biwa, making a significant contribution to the modernization of Meiji Japan.

Ginza, the commercial center, a▎Making
fireproof district

modern civil engineering project▎Pioneering
by Japanese hands

The entire Ginza and Tsukiji area was destroyed by the Great Fire of1872. It triggered the new government to launch an epoch-making
plan to make Ginza a fireproof Western-style district. In 1873, it was
revived as a modern Western-style brick street. Okura-Gumi Shokai,
the predecessor of the Company, took charge of Ginza 1-chome.
While unfamiliar work required in the Renga-Gai project resulted insome buildings in some places to experience subsidence, the sites
where Okura was contracted did not suffer subsidence, resulting in
its painstaking work and technology to be highly evaluated.

The construction of Lake Biwa Canal was planned to draw waterfrom Lake Biwa to Kyoto for use in hydroelectric power generation
and water transportation to restore the vibrancy of Kyoto lost due tothe transfer of the capital to Tokyo. Okura-Gumi Shokai undertook
the construction of the First Tunnel, which was the longest in Japan
at that time, and Otsu Lock Gate. It is Japan’s first modern civilengineering project which was entirely carried out by Japanese
hands. The canal continues to be used as a water resource in Kyoto,
and are also popular as a place for citizens to relax.

Ginza Renga-Gai (Brick Street)

Daiichi daiku Kyobashi yori Shinbashi made Rengaishi zukuri shoka hanjo kisen sotaku seikei
Utagawa Kuniteru（National Diet Library, Japan）

7 T A I S E I ANNUA L R EPORT 2022

Lake Biwa CanalAbout the Taisei Group

Aiming to Realize Our Vision

Sustainability Section

Governance Section

Data Section

From Post-War Reconstruction to High Economic Growth
After the war, the Company changed its name to Taisei Corporation. It engaged in reconstruction projects and made every effort for Japanʼs recovery. It is social infrastructure that supported the rapid
economic development that followed. The Company worked on challenging construction projects toundertake a number of infrastructure development projects.

the crisis of the Company’s▎Overcoming
existence to make a fresh start

Change of Company Name andListing of Shares

In the midst of the crisis of its survival due to the dissolution of thezaibatsu (financial cliques) after the war, the Company changed its nameto Taisei Corporation, and launched a series of innovative measures suchas the employee shareholder system and the election of the President
to modernize management. Further, it listed its shares in 1956, the firstin the construction industry. Following the Company’s successful public
offering, other construction companies that had been working tostrengthen their management bases began to go public one after another.

Origin of Corporate Name
Derived from the Dharma name (posthumous Buddhist
name) of the founder Kihachiro OKURA. “Taisei” is takenfrom a line in the Chinese classic texts, “Mencius.” It has ameaning of the “corpus” of people’s virtues, which can beassociated with accomplishing something, or gathering
many pieces to build up something. As such, it was chosen
as the most suitable for our company name.

a major typhoon monitoring▎Constructing
facility

Mt. Fuji Summit Radar Site

Mt. Fuji Summit Radar Site is aweather observation facility built
based on the lesson learned fromthe loss of many lives due tohuge typhoons. The construction
was done under extremely harshconditions such as permafrost
and sudden blizzards. It wascompleted in 1964 as a result of
desperate endeavor of a total of
9,000 workers. The radar site had
actively worked as a major
typhoon monitoring facility for 35
years. As time went by, it was
succeeded by a meteorologicalsatellite to end its role in 1999.

Technological Innovation and Expansion into Overseas Businesses
As the Japanese economy matured, the Company has been working to improve its technological andcomprehensive capabilities to meet diversifying construction needs. It also actively expanded into overseas
and worked on infrastructure export to overseas markets.

damage from the Indian Ocean▎Minimizing
tsunamiMale Island Revetment Project▎ Building safe high-quality skyscrapers

Ultra High-Strength Concrete(Republic of Maldives)and onwards
Male, the capital of the Republic of Maldives, has a low average sea
level of about 1.5m, and has suffered flooding damage due to storm
surges repeatedly in the past. Maldives also faces the danger ofbeing submerged due to rising sea levels caused by global warming.
With grant aid from the Japanese government, the Company
constructed revetments of 6km in total length. As a result, it sufferedno human damage from the earthquake in the Indian Ocean off
Sumatra in 2004, with property damage also reduced significantly.

and onwards
We started research and development on high-strength concrete in
the 1980s and, in 2000, adopted ultra high-strength concrete withdesign strength of 100N/mm2 to a skyscraper apartment building.
The use of ultra high-strength concrete allows the columns supporting
the load of a building to be reduced in number or be thinner, realizing
a comfortable space with a higher degree of freedom.

TA I SE I A N N UA L R E P O R T 2 0 2 2

8About the Taisei Group

Tales of Past and Present of the Taisei GroupStrengths accumulated over the years

Pioneer Spirit Passed on
The passion and efforts of our predecessors who have bravely
faced up to difficult projects with an eye to the coming society arealive in our 150-year history.
At a time when value creation with a view to the future isrequired, as a general construction company we demonstrate ourtechnological, on-site and proposal capabilities, which are the sourcesof our competitive advantage, to realize sustainable growth.

2002

Net income attributable to owners of parent

Net sales

2021

Towards the Realization of a Sustainable Society
In 1997, the Company became the first in the construction industry in Japan to establish a department dedicated to the environment, and has been working to reduce its environmental load.
We will continue to work to realize a sustainable society through ongoing efforts to address environmental issues.

stadium looking at▎Environment-symbiotic
100 years from nowof the reconstruction from Kuma▎Symbol
moto earthquake completed“Stadium in forest” being open to everyone and blending with thegreen environment of the historic Outer Garden of Meiji Jingu Shrine,
the Japan National Stadium has been born in 2019 and is looking at
100 years from now. Eaves—one of the features of traditional
Japanese construction—located around the outer perimeter of thestadium, proactively using domestic lumber procured throughout
the country. The Environment-symbiotic stadium takes full advantage of natural energy, such as channeling natural breezes into thestadium during the humid Japanese summer.

The Shin-Aso Ohashi Bridge to replace the former Aso Ohashi Bridge,
which collapsed in the Kumamoto earthquake in April 2016 opened in
March 2021, nearly 5 years after the earthquake. As a disaster recovery
project executed by the national government on behalf of local government, we applied highly sophisticated technologies and thoroughly
streamlined construction operations to complete the construction 16
months earlier than the standard construction period. The opening of
the Shin-Aso Ohashi Bridge has greatly improved the convenience of
local people’s lives and is expected to revitalize the local economy.

Japan National Stadium

9 T A I S E I ANNUA L R EPORT 2022

Shin-Aso Ohashi Bridge

About the Taisei Group

Aiming to Realize Our Vision

Sustainability Section

Governance Section

Data Section

26.0%

Sales

¥402.0 billion

Construction of tunnels,
bridges, dams, railways,
expressways, etc.

JR Soen Station
JR
Ha
ko
da
te
Ma
in

Kawasaki Station West Area Development Plan, New
Building Construction Work (Kawasaki-shi, Kanagawa)
Owner: East Japan Railway Company・NIPPON HOTEL
Co., Ltd.・JR East Sports Co., Ltd.

主な完成工事Net sales composition

Musashino Red Cross Hospital Development Project(Extension・Renovation・Demolition Works and Others)(Musashino-shi, Tokyo)
Owner: Japanese Red Cross Society

主な受注工事Group Domestic Civil Engineering
Business

Major projects completed

Construction of offices,
commercial facilities,
factories, schools,
hospitals, etc.

Major projects completed¥899.4 billion

Major new orders received

58.3%

Sales

主な完成工事Net sales composition

主な受注工事Group Domestic Building
Construction Business

Major new orders received

The Taisei Group’s Now / Present

JR Sapporo StationLine¥77.6 billion

Construction in Taiwan,
Vietnam, Singapore, and
the Philippines

Existing water
distribution pipeline

Intake station

New water
distribution pipeline

g

on

ek

New water pipelineM

Chinaimo treatment plant
Salacam water distribution center

ThailandMajor projects completed

5.0%

Sales

Vientiane, Laos

Koto River Comprehensive Development Project,
Kabagawa Dam Body Construction Work (Takamatushi, Kagawa)
Owner: Kagawa Prefecture

主な完成工事Net sales composition

主な受注工事Group Overseas Construction
Business

Major new orders received

Hokkaido Shinkansen, Sasson Tunnel (Soen) and Others(Sapporo-shi, Hokkaido)
Owner: Japan Railway Construction, Transport andTechnology Agency¥132.9 billion

Redevelopment, publicprivate partnership / private
finance initiative (PPP / PFI),
property management,
and condominium sales
projects

Major projects under construction

8.6%

Sales

Contract T226 Construction of Marina Bay Station and
Tunnels for Thomson-East Coast Line (Republic ofSingapore)
Owner: Land Transport Authority

主な施工中工事

Net sales composition

主な受注工事Group Real Estate Development
Business

Major new orders received

Vientiane Capital Water Supply Expansion Project CP-1:
Construction of Water Treatment Plant and Pipelines(Lao People’s Democratic Republic)
Owner: Department of Public Works and Transport,
Vientiane Capital

Tegarayama Sports Facility Development and Management
Project (PFI Project) (Himeji City, Hyogo)
Owner: HIMEJI TEGARAYAMA PFI CO. LTD.

TAISEI HANOI OFFICE TOWER
Hanoi, Socialist Republic of Vietnam
Owner: Taisei Development Hanoi Co. Ltd.

¥27.5 billion

Engineering of production
facilities and warehousesin the fields ofpharmaceuticals, foodproducts, and logistics(Tentative Name) Kyushu Factory No.2 of Sawai
Pharmaceutical CO., LTD, New Factory Construction Work
(Fukuoka-shi, Fukuoka, Iizuka-shi, Fukuoka)
Owner: Sawai Pharmaceutical Co., Ltd.

主な完成工事

1.8%

Sales

主な受注工事Net sales composition

Major projects completed

Group Engineering Business

Major new orders received* In-house development projectDaiichi Sankyo Chemical Pharma Co., Ltd. Onahama
Plant Antibody ADC Building (Iwaki-shi, Fukushima)
Owner: Daiichi Sankyo Chemical Pharma Co., Ltd.

Note: Net sales from other businesses (incidental businesses,etc.) other than the above were ¥5 billion (0.3% of total
net sales).

TA I SE I A N N UA L R E P O R T 2 0 2 2 10

About the Taisei Group

Financial and Non-Financial Summary

TAISEI CORPORATION and Consolidated Subsidiaries
Years ended March 31, 2012 through 2022

▎ Financial Highlights (Consolidated)

Millions of Yen(except for per share figures)

March 31, 2012

March 31, 2013

March 31, 2014

March 31, 2015

March 31, 2016

Revenue:
Net sales:
Construction business
Development projects
Total% change from previous year¥1,171,927
151,577
1,323,504
8.7%¥1,254,291
162,205
1,416,496
7.0%¥1,321,289
212,184
1,533,473
8.3%¥1,404,530
168,740
1,573,270
2.6%¥ 1,394,677
151,212
1,545,889(1.7)%

Costs and expenses:
Cost of sales
Selling, general and administrative expenses
Total
Operating income
Income before income taxes
Income taxes
Net income attributable to owners of parent

1,206,014
81,004
1,287,018
36,486
16,673
15,480¥1,1811,304,677
76,213
1,380,890
35,60632,82812,399¥
20,051

1,402,446
77,254
1,479,700
53,773
46,593
14,120¥
32,0891,425,295
77,5581,502,853
70,417
66,98028,755¥
38,177

1,348,302
80,1191,428,421
117,468
117,797
40,996¥
77,045¥255.60
1.04
5.00

¥

¥

¥

¥

Per share data of common stock(in yen and dollars):
Net assets
Net income attributable to owners of parent
Cash dividends
Financial ratios:
Net income attributable to owners of parent
as a percentage of total revenue
Total costs and expenses as a percentage of total revenue
Dividends paid as a percentage of net income
Financial position data:
Current assets
Current liabilities
Total tangible fixed assets
Long-term liabilities
Shareholders’ equity
Net assets
Other data:
New orders received during the year
Contract backlog at the end of the year
Shares issued (thousands)¥

299.8417.60
5.00

335.4228.17
6.00

418.61
33.52
8.00

442.67
65.85
16.00

0.1%

1.4%

2.1%

2.4%

5.0%

97.2%
482.3%

97.5%
28.4%

96.5%
21.3%

95.5%
23.9%

92.4%
24.3%

982,931
921,196
212,639
219,101
284,714292,602¥ 1,012,639
907,281
206,076
292,514299,336
343,300¥ 1,076,213
946,097
181,051
268,802327,067
384,166¥ 1,136,497
984,762
169,973
258,373
370,140
492,114¥1,112,305
927,777
177,529
211,767
437,533
521,278¥ 1,379,572
1,663,459¥ 1,404,407
1,651,370¥ 1,645,896
1,763,793¥ 1,765,743
1,956,266¥1,671,061
2,081,438

1,140,269

1,140,269

1,140,269

1,171,269

1,171,269*1 U.S. dollar amounts were translated from yen, for convenience only, at the rate of U.S. $ 1 = ¥ 122.39*2 The net assets per share and the net income per share are calculated assuming that the consolidation of shares took place at the beginning of the year, 2017, because the consolidationof shares, at the ratio of 1 share for 5 shares, was implemented on October 1, 2017.

▎ Major Non-Financial Data
2017

2018

2019

2020

2021

(Consolidated / Persons)

14,032

14,433

14,562

14,62014,518

Male(Non-consolidated / Persons)

6,977

6,949

6,937

6,970

6,955

Female(Non-consolidated / Persons)

1,524

1,541

1,570

1,602

1,624

(Non-consolidated / %)

1.7

3.2

3.8

4.5

5.2

Frequency rate*1, 3

(Taisei Group / %)

0.44

0.58

0.64

0.37

0.56

Frequency rate*1, 3

(Non-consolidated / %)

0.41

0.43

0.62

0.35

0.44

Severity rate*2, 3(Non-consolidated / %)

0.22

0.14

0.26

0.34

0.08

(FY)
Number of employees

Female managers ratio*1 Frequency rate: The number of fatalities and injuries at worksites per one million cumulative working hours*2 Severity rate: The severity of illnesses and injuries represented by the number of workdays lost over one thousand cumulative working hours*3 Actual results from January to December in 2017-2021

11 T A I S E I ANNUA L R EPORT 2022

Aiming to Realize Our Vision

About the Taisei Group

Sustainability Section

Governance Section

Data Section

Thousands of
U.S. Dollars*1

Millions of Yen(except for per
share figures)(except for per share figures)

March 31, 2017

March 31, 2018

March 31, 2019

March 31, 2020

March 31, 2021

March 31, 2022

March 31, 2022

¥1,342,455
144,798
1,487,253(3.8)%¥1,445,277
140,221
1,585,498
6.6%¥1,511,724
139,154
1,650,878
4.1%¥1,612,498
138,833
1,751,331
6.1%¥1,326,663
153,479
1,480,142(15.5)%¥1,385,516
157,723
1,543,240
4.3%$11,320,507
1,288,699
12,609,207

1,260,968
85,462
1,346,430
140,823
135,190
44,793¥90,566

1,318,880
84,7581,403,638
181,860
182,297
55,508¥126,788

1,409,418
88,136
1,497,554
153,324
160,777
48,075¥112,572

1,492,654
90,922
1,583,576
167,755
174,785
52,601¥122,088

1,261,344
88,282
1,349,626
130,516
135,41742,820¥92,554

1,355,503
91,6591,447,163
96,077
103,503
31,935¥71,436

11,075,282
748,915
11,824,198
785,008
845,683
260,931$583,679¥4,335.78
350.88130.00$35.43
2.87
1.06

Net sales composition

Sales¥402.0 billion¥2,975.02*2
561.36*2
85.00*3¥3,302.86
511.90130.00¥3,550.03
573.14130.00¥4,084.81
442.66130.00

6.1%

8.0%

6.8%

7.0%

6.3%

4.6%

90.5%
25.5%

88.5%
22.3%

90.7%
25.4%

90.4%
22.7%

91.2%
29.4%

93.8%
37.0%

¥2,483.01
392.8720.00¥1,223,572
986,994
175,983
202,271
485,396
570,814¥1,327,487*4
1,022,626
188,397
218,952*4
563,913669,020¥1,200,437
924,791
219,745
198,995
610,565
722,390¥1,299,023
957,438
204,400
178,642
673,730
753,916¥1,241,013
841,147
206,199
185,055
718,593
844,420¥1,296,356
926,363
207,435
157,002743,609872,835$10,592,012
7,568,947
1,694,876
1,282,802
6,075,737
7,131,589¥1,655,036
2,249,221¥1,743,498
2,407,221¥1,693,859
2,450,202¥1,680,052
2,378,923¥1,650,627
2,549,408¥1,589,745
2,595,912$12,989,176
21,210,169

1,146,753

224,541

224,541

224,541

224,541

200,803*3 Total annual dividends per share as of March 31, 2018 is ¥ 85.00 ,which is the sum of the interim dividend per share of ¥ 10.00 and the year-end dividend per share of ¥ 75.00.
Due to the consolidation of shares at the ratio of 1 share for 5 shares implemented on October 1, 2017, the year-end dividend per share of ¥ 75.00 reflects this consolidation,
while the interim dividend per share of ¥ 10.00 does not.
If the interim dividend per share is calculated based on the consolidation of shares, it would be ¥ 50.00, making the total annual dividends per share ¥ 125.00.
*4 Effective from the year ended March 31, 2019, the Group retrospectively applied “Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ Statement
No.28, February 16, 2018).
The Group applied this change retrospectively and restarted the 11-Year Summary from the year ended March 31, 2018, accordingly.

2017

2018

2019

2020

2021

(Consolidation / Billions of Yen)

11.6

12.4

13.5

14.2

15.1

Number of patent applications
filed(Non-consolidated / Cases)

235

219

188

266

272

Number of patent rights
registered(Non-consolidated / Cases)

191

250

169

202

209

Total CO2 emissions(Taisei Group /103tCO2)

340

361

368

318

325

Total CO2 emissions(Non-consolidated /103tCO2)

245

261

267

216

224

– 28.4– 28.9– 32.0– 30.3– 30.1(FY)
Research and development
expenditure

At construction stage:
Reduction rate of CO2
emissions per sales*(Non-consolidated / %)* Compared to FY1990 (a base year for emissions target)

TA I SE I A N N UA L R E P O R T 2 0 2 2 12

Aiming to Realize Our Vision

Sustainability Dialogue

Developing the Company from
Aiming at Enhancing
Visiting Professor, The Open University of Japan
Visiting Professor, The Graduate School of Social Design
Senior Advisor on Sustainability, SOMPO JAPAN Insurance Inc.

Masao SEKI

In order to survive in an era when the global environment and social structure are undergoing major
global transformations, the Taisei Group has formulated the “Taisei Vision 2030,” our vision in 10 years,
and set management goals through backcasting.
Through a dialogue with Mr. Masao SEKI, who studies sustainability management from a perspective
encompassing Japan and overseas, and the President Yoshiro AIKAWA, we seek to map out a path theCompany should take in the pursuit of enhancing corporate value by using the SDGs as a tool for
management transformation, together with pioneer spirit that we inherit since its foundation.

At the Core of Sustainability Management
AIKAWA: Shortly after I became President in 2020, the Ministry of Economy, Trade and Industry announced the“Green Growth Strategy for Carbon Neutrality in 2050.”
As it coincided with the timing of the Company’s formulating a new business plan, we incorporated deepening ofsustainability management in light of the decarbonization declaration and our responses to SDGs and ESG in the“TAISEI VISION 2030” and the “Medium-Term Business Plan (2021-2023)” which were announced in the following
year, 2021. I think it was a very good timing.
However, as a year has passed since then, I am amazed at the rapid changes in the world. I believe that, in thenext era, we need to forecast what the world will become more quickly than ever before and accurately.
SEKI: When we talk about management now, the word of sustainability always comes up. On the other hand,when we look at actual society, we see that many issues are emerging not only in an environmental area, but alsoarea in all sorts of areas including human rights and biodiversity.
How do these developments relate to each other and affect sustainability? I believe that it is now required tohave a firm understanding of global trends that lie at the root of such developments. If the employees fully understand this, it should allow them to make forward-looking proposals and have discussions that would lead toenhanced corporate value for both you and your clients, when responding to clients’ requests.

13 T A I S E I ANNUA L R EPORT 2022

About the Taisei Group

Sustainability Section

Aiming to Realize Our Vision

Governance Section

Data Sectiona Long-Term Perspective
Fundamental Value
President and Chief Executive Officer,
Representative Director

Yoshiro AIKAWA

AIKAWA: For carbon neutrality for example, I certainly feel that it is required to take a fundamental approach froma long-term perspective, not just to treat the symptoms.
SEKI: I think so, too. Since climate change is a global issue, we need to take actions that would completely reconstruct today’s society toward decarbonization, and to further do them in the span of 20 to 30 years that has neverbeen experienced by humans. This is a major transformation of the socioeconomic system that must be undertaken with considerable resolve.
Another important environmental issue is biodiversity. Research by scientists in the field of biology has also
pointed out that biodiversity is currently deteriorating at a rapid pace and that it will become a serious problem if
the trend continues. A global goal of “Nature Positive” to “halt the deteriorating trend of biodiversity and put biodiversity on the path to recovery by 2030” is being promoted internationally. We need a response similar to climatechange measures.
And the last thing we should not forget is human rights issues. As the global environment has been undergoingsuch drastic changes, people’s lives and dignity are under threat. How can companies make sure to respecthuman rights in the global socioeconomic system? I think it has become a major theme on the same level withclimate change and biodiversity.
AIKAWA: While they used to be considered as issues between advanced and developing countries, human rights
and inequality issues cannot be overlooked given that the phenomenon of uneven distribution of wealth now exists
within Japan as well.
SEKI: When we seek to deal with the inequality issue, it is indeed necessary to change the socioeconomic systemitself. Industry leaders are also interested and trying to address this. I think it has been rare for the industrial world
to try to tackle poverty issues, however there is a sense of crisis that it would also impact the stability of the society
as a whole if such issues are left untackled.
The three themes of climate change, biodiversity, and human rights are not irrelevant to each other; they are allconnected somewhere. Because they are interrelated, we have to think about solutions by looking at the wholething. It is SDGs that translate them into specific goals and make them clear.
Instead of working on initiative for the environment, human rights, and SDGs because laws are being developedor it becomes mandatory, we need to face those issues for corporate viability. I think it will become necessary torecognize that stance and act proactively.

TA I SE I A N N UA L R E P O R T 2 0 2 2 14

Aiming to Realize Our Vision

Sustainability Dialogue

Pursuing Sustainable Development with Ambitious Goals
AIKAWA: We have set out eight issues to be dealt with as the Materiality for sustainability management based on
the two vectors of impact on the Taisei Group, including the Taisei Group Philosophy and the Medium-TermBusiness Plan, and the interests of society and stakeholders.
We are striving to help resolve social issues and create value through business activities based on them.
We review the Materiality periodically on an ongoing basis and pursue sustainability management in our own way.
However, we still sometimes feel baffled by the speed of changes in the society. Mr. SEKI, as you have continuing discussions with many corporate executives and leaders, what characteristics do you think sustainable companies have?
SEKI: There are three points when we think about sustainability management.
The first is how seriously you engage with stakeholders and whether you try to create value together throughdialogue. External views, as well as internal discussions, are very important in determining the Materiality. It gives
you an objective view of your company as well as an opportunity to realize your company’s strengths and weaknesses. You can sense the expectations of the society.
The second is employee engagement. In companies where
sustainability management is thoroughly embraced, each andevery employee considers sustainable development as his or her
own matter and incorporates it into daily activities.
The Japan Association of Corporate Executives studied theSDGs and published a report, which contains a unique point ofview. It argues that SDGs are a tool for management and organizational reform from the management’s point of view. When
SDGs and sustainable development are thoroughly understood,
employees realize that they are the main actors in value creation,
not a cog in the wheel. I fully agree with this analysis.
The third is to challenge yourself to ambitious goals. It may bewhat Japanese companies that place importance on the consistency of words and deeds are not good at, but
companies that are globally respected in the field of sustainable development journey to set ambitious goals andtake on challenges. Even if you only achieve 60 or 70% as a result, I think it would garner much higher praise than
the attitude of achieving steady results with a low goal.
It was about 10 years ago when Unilever, which provides daily necessities such as detergents and foods toconsumers around the world, launched the “Unilever Sustainable Living Plan” with commitment “To Make
Sustainable Living Commonplace.” With the goal of reaching 1 billion people, it worked under the Plan for 10 years
and reached out to governments and stakeholders. Not all the goals have been met as it aspired to do, howeverits bold attempt garners immense praise.
AIKAWA: It is certainly important to challenge high goals. We had many discussions on “our vision in 10 years that
we aim at” and have formulated the “TAISEI VISION 2030.” From there, we developed the Medium-Term Business
Plan (2021-2023) through backcasting.
Setting ambitious targets and thinking about what needs to be done now, instead of piling up what you will be able todo every year. It makes it easier for us to understand the meaning of our work, and also improves employee engagement. Above all, I think it generates a much stronger sense of excitement about work and leads to increased motivation.
Our company traditionally had a tendency of short-termism in that we tend to place the highest importance on
achieving annual goals. Sustainability, however, is based on a long-term perspective to start with, and the

15 T A I S E I ANNUA L R EPORT 2022

About the Taisei Group

Aiming to Realize Our Vision

Sustainability Section

Governance Section

Data Section

awareness for social contribution among employees has been on the rise. That’s why we live today by backcasting
while imagining the future 10 years ahead. I feel that we have finally begun to break away from short-termism.
SEKI: Millennials and Generation Z are very interested in such things.
AIKAWA: Yes. Their values on sustainability will surely bring out positive chemical reaction for the Company. I highly
expect them to lead the Company in the future.

Construction Business Is To Create the Future
AIKAWA: Taisei Corporation will celebrate its 150th anniversary next year. I think it is important for us to know ourhistory first so that we can continue to exist in the future. The Company started as “Okura Gumi Shokai”, which
Kihachiro OKURA founded in 1873. Kihachiro was a man with fullof pioneer spirit. Having established himself from an apprentice ata dried bonito wholesaler, he made great achievements in various
fields including the electric power business, woolen textile business, lumber and paper business, hotel business, and education
business, in addition to construction business. It is not an overstatement that he built part of the foundation of the Japanese
economy in the turbulent era from Meiji to Showa.
Inheriting such spirit of our founder, we cherish the Taisei Spirit
comprising three of “Active and Transparent Culture,” “Evolutionof Tradition” and “Value Creation.”
Speaking from the perspective of history, “Evolution of
Tradition” is important. While succeeding the Company’s traditionof manufacturing over more than 100 years, at the same time we must take on the challenges of innovation.
However, innovation that begins from scratch rarely exists. As innovation is achieved over technologies andknowhow accumulated so far, it is necessary to cherish the tradition built by our predecessors.
SEKI: “Pioneer spirit” is a very good phrase, isn’t it? That is indeed the tradition and innovation that we need themost today. I think this story leads to the core of sustainability management.
AIKAWA: The CSV (Creating Shared Value) concept proposed by Michael Porter is just that, and I think today’s
corporate activities all come down to this. In terms of resolving social issues of a community and gaining trust, we
can contribute deeply to the creation of a resilient society by building infrastructure in a tangible manner.
SEKI: The CSV is required precisely because we are in the age of SDGs, and I think that companies engaging in
the development of infrastructure such as your company, in particular, can generate substantial impact.
Infrastructure that you build will stay for as long as 50 or 100 years. In that sense, it can be said to be an “industry
that anticipates and creates the future” with a view to the future further ahead. How do you express sustainability
and social value required for the future in your works? It must be a very rewarding job for all the employees.
AIKAWA: In order to achieve carbon neutrality in 2050, the Japanese government is accelerating measures tosave energy in buildings and houses and to expand the introduction of renewable energy. Taisei Corporation is
promoting “Green Renewal ZEB,” which introduces ZEB that has been adopted for newly constructed buildings
into existing buildings. It is a proposal to convert office buildings, factories, and production facilities into ZEB by

TA I SE I A N N UA L R E P O R T 2 0 2 2 16

Aiming to Realize Our Vision

Sustainability Dialogue

making full use of the most of technologies accumulated by us, such as energy conservation, energy creation, anddecarbonization.
The reason why we can resolve environmental issues with buildings and manufacturing facilities as one package
is that the Company has a wide range of technologies that enable manufacturing from a comprehensive engineering perspective.
We provide proposals that are beyond customers’ imagination or create something that exceeds their expectations, to make them happy. We call this “PBCE&I (Proposal Beyond Customers’ Expectation and Imagination)” andintend to further develop it in the future.
SEKI: It’s a great service for the owners of existing facilities, and “Green Renewal ZEB” is an excellent solution thatmeets the needs of the society. Provide service as a total system, rather than thinking in parts. It comes alive as acomponent system in the system of the entire society. Listening to you, an image of such society has come to my mind.

Long-Term Thinking as a Corporate Entity That
Continues to Develop
SEKI: We are in a period of systemic social changes, and the construction business is the field that supports its
foundation, thus should have many business opportunities as well. From a global point of view, there is a topic of
how to turn megacities in developing countries into smart cities. On the other hand, there are problems in Japansuch as the aging population with a low birth rate, depopulation, and the survival of local communities. With somany themes, it is worth trying.
AIKAWA: Recently, the Company entered into collaboration with Muroran, Yamanashi Prefecture (Kofu), Nagasaki,
and other local governments around the country, and has been working on projects related to sustainable development, such as offshore wind power generation. When you engage in this kind of work, you start to act together
with local companies. I feel this naturally leads to support for regional revitalization.
Needless to say, the survival of local communities and the aging society with a low birth rate are major themes inJapan. We can contribute in various ways, and I believe this will also lead to enhance corporate value. We want tocontinue doing this for many years.
SEKI: I would like very much to encourage dialogue and collaboration with various external stakeholders, including
local governments. I believe that sustainability management will be embraced more widely and lead to the creationof corporate value over the long term by taking actions on a long-term time horizon, rather than by reacting
nervously to short-term results.
In addition, isn’t it the role of Annual Reports that provides an opportunity to discuss such matters internally?
How do you enhance corporate value in this new era? It is a very difficult topic, but the process of producing
Annual Reports activates internal discussions. The more you discuss, the more it becomes matured and developed, and the results are incorporated in Annual Reports. The process of engaging and exchanging ideas withmany employees is very important, and it increases employee engagement with the company.
As with my own experience, employees are familiar with their own work, but surprisingly they don’t know what
other departments are doing. It is important the company to convey employees “how is your department

17 T A I S E I ANNUA L R EPORT 2022

About the Taisei Group

Aiming to Realize Our Vision

Sustainability Section

Governance Section

Data Section

evaluated” from an external perspective, and the employees also should increase opportunities to learn the worksof other departments from each other. Activating internal communication is a seemingly simple field, however it’s
actually important and works steadily like traditional Chinese medicine. I believe the buds of development and theevolution of sustainability management will be nurtured from those things.
AIKAWA: It is each and every employee who creates corporate value and, in that sense, they are indeed “humancapital.” The Taisei Group, which is a collective body of them, resolves social issues over the long term, leading tovalue creation and contributing to the improvement of operating performance. I hope we can further strengthen
this virtuous cycle. For that, I felt strongly also from your words that we should dare to continue to take on challenges and that we should remember the pioneer spirit that our founder Kihachiro OKURA had to push forward.
Thank you very much for your time today.

TA I SE I A N N UA L R E P O R T 2 0 2 2 18

Aiming to Realize Our Vision

Growth Strategy and Sustainability

Growth Strategy and Sustainability
Medium- to Long-Term External Environmental
Recognition and Risks

p.20

We identified the “3 Xs” (Transformation) as the medium- to long-term environmental andstructural changes that are expected to occur over the next 10 years, such as the outlook forthe future construction market and the deepening of sustainability management based on the
Sustainable Development Goals (SDGs).

Materiality of the Taisei Group

p.21

The Materiality (issues to be dealt with) were reviewed with reference to international codesand standards of conduct. Based on this Materiality, we have established key measures andspecific step for the Medium-Term Business Plan to clarify the overall picture of the Group’s
sustainability management.

TAISEI VISION 2030

p.23

We have formulated our 10 year vision: TAISEIVISION 2030 based on the “3 Xs” (Transformation)that emerged due to the coronavirus crisis, theGroup Philosophy and the Taisei Spirit.

Group Business Strategy

p.27

With regard to key measures related to ourbusiness, we have formulated business strategies
for each Group business segment and areproceeding with initiatives with the expansion ofbusiness domains through M&A in mind.

19 T A I S E I ANNUA L R EPORT 2022

Medium-Term Business Plan
(2021-2023)

p.25• Key measures• Numerical targets• Investment plans

Sustainabilityp.33

To target the front-runner status in the environmental sector, accelerating our initiatives toward
carbon neutrality, and we are developing the infrastructure to anticipate changes in the businessenvironment, including technology development
and DX.

About the Taisei Group

Aiming to Realize Our Vision

Sustainability Section

Governance Section

Medium- to Long-Term External
Environmental Recognition and Risks

Data Section

IX

SX

DX
Increasing pressure for construction industry restructuring

IX■ The industry lacks vitality due to a fierce competitive environment, because

the construction market is expected to shrink over the medium- to long-term.

■ The issue of securing labor will become apparent in the construction industry,as Japan’s population ages and the birthrate falls over the medium- to long-term.

Industry
Transformation■ There is business scope for expansion of both the Group’s growth sectors

and the sectors where we lag behind competitors, as the market share among
the five major construction companies including the Company is relatively small
compared with other industries.

Moving to solve environmental and social issues through our business

SX
Sustainability
Transformation■ New growth industries and sectors will be established through a “virtuous cycle

for the economy and environment,” following the Japanese government’s declaration of carbon neutrality by 2050.
■ Revolutionary technical development through open innovation will be required toachieve this goal.
■ Transformations will be required for several types of employment tailored to theneeds of a new generation such as diversity.

Towards an era where digital transformation determines competitivenessDX■ Digital technologies are evolving in the production process, including BIM/CIM

and unmanned construction.

■ For the Company and in the construction industry as a whole, digital tech-

nology and the utilization of data are still at a developing stage.

DigitalTransformation■ The application of these technologies to the whole construction business would

offer opportunities for drastically increasing the productivity of the production
process, speeding up management decision-making, and creating new services.

▎ Business and Other Risks(1) Market Risk
①Trend of the construction market②Fluctuations in prices of materials③Asset holding risk
④Retirement benefit obligations⑤Fluctuations in interest rates⑥R isks of related or incidental
businesses(2) Risk of violation of laws and regulations in the Civil Engineeringbusiness and the Building
Construction business①R isk of violation of theConstruction Business Act andrelated laws and regulations②R isk of violation of the Antimonopoly Act(3) Risk of infringement of intellectual
property rights(4) Risk of inappropriate financial
reporting(5) Risk related to anti-social forces(6) Risk associated with quality due
to construction failure(7) Risk of design flaw(8) Risk of process delays(9) Risk of accidents(10) Risk of information leakage andsystem trouble(11) Risk of large-scale disasters(12) Risk associated with theworking environment(13) Risk of violation of environmental laws and regulations(14) Risk associated with climatechange issues(15) Risk associated with the response
to sustainability issues(16) Credit risk(17) Contract risk(18) Risk of the spread of infectious
diseases(19) Country risk

TA I SE I A N N UA L R E P O R T 2 0 2 2 20

Aiming to Realize Our Vision

Growth Strategy and Sustainability

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

E n v iron m en t

High

Eight issues
to be dealt with asMateriality

Social and stakeholder concerns

Consistent with international disclosure standards,
code of conduct, and standards of behavior

are established to make efforts visible.

Impact on the Taisei GroupHigh

Compliance with regard to the Group Philosophy
and the Individual Policies, and assessment of
impact on the Medium-Term Business Plan❶R
 ealization of a sustainable andenvironmentally friendly society

S ocial❷ Ensuring quality and improving technology❸T echnical development for realizing asustainable society❹ Promotion of supply chain management❺T horough management of occupational
health and safety❻C ultivation of technical staff and securing
human resources❼R ealization of an attractive working
environment that is good to work in

G ov er n an ce❽ Thorough compliance and restructuring of
the Group governance system▎ Materiality Identification Process
Gathering of views from bothwithin and outside theCompany and approval

Reassessment andidentification of materiality● International frameworks●V iews are gathered from●M ateriality is identified based on

are consulted, andmega-trends relating tosociety and issues are
identified.

within the Company andoutside and, based on
discussions, the degreeof priority and importance are determined foreach item.

gap analysis with internationalframeworks such as the Sustainability Accounting Standards
Board (SASB), risk perceptions
expressed by the TCFD, and theimpact on management regarding future business domain
expansion.

Identification ofsocial issues

Resolution ofsocial issues
through businessactivities to create
value

Materiality is reassessed regularly on an ongoing basis, based on the speed ofchange of societal conditions.

21 T A I S E I ANNUA L R EPORT 2022

About the Taisei Group

Aiming to Realize Our Vision

Sustainability Section

Governance Section

Data Section

Message from Chief Sustainability Officer (CSO)As CSO, I Will Lead Sustainability Activities to
Resolve Social Issues and Create New Value.

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
Taisei Group has identified eight material issues (Important issues to be addressed) as
the Materiality in promoting sustainability management. In response to changes in theexternal environment and the interests of society and stakeholders, we will review the

Senior Managing Executive Officer,
Chief of Sustainability Division (Integrated);
Chief of Clean Energy & Environment
Business Promotion Division

Jiro TANIYAMA

Materiality periodically and on an ongoing basis to realize a sustainable society.
In April 2022, the Sustainability Division (Integrated) was established to promotesustainability management, and I was appointed as CSO (Chief Sustainability
Officer) to lead its activities. The establishment of an organization and a position
that bears 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 “TAISEIGreen 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 theSustainability Committee. Further, the “Human Rights Policy” was revised toestablish the framework for human rights due diligence and stipulate that it becarried out on an ongoing basis. Under these policies and organizational structure, we will promote sustainability activities from a variety of perspectives.
The Medium-Term Business Plan (2021-2023) sets key sustainability issues
under six themes: “Energy and Environment,” “Safety,” “Technical development,”“DX,” “Workstyle reform,” and “Corporate governance.” Within the Sustainability
Division (Integrated), the Sustainability Management Promotion Division, which isin charge of all strategic functions, and the Clean Energy and Environment
Business Promotion Division, which is responsible for project promotion functions, have been established with the common mission of promoting carbon
neutral operations, a goal set out under “Energy and Environment,” and will bemaking every effort to achieve this goal.
The Taisei Group Philosophy of “to create a vibrant environment for all members ofsociety” is indeed a message that precisely describes sustainability. We will continue
to engage in dialogue and cooperation with our stakeholders that consist of shareholders and investors, customers, business partners, employees, and local communities,
in order to achieve sustainable development for society and the Group.

TA I SE I A N N UA L R E P O R T 2 0 2 2 22

Aiming to Realize Our Vision

Growth Strategy and Sustainability

TAISEI VISION 2030
The Taisei Group analyzed the reasons for the failure to achieve the goals of the previous Medium-Term Business
Plan, and identified the medium- to long-term external environment and structural changes. Based on this analysis,
we formulated TAISEI VISION 2030, our medium- to long-term vision in line with the Taisei Group Philosophy andother factors. As for the newly launched Medium-Term Business Plan (2021–2023), we have positioned it as “Focus
on efforts to realize TAISEI VISION 2030.”

The Ever-Evolving
CDE3 (cubed)   Company
C onstruction, D evelopment, E ngineering, E nergy, E nvironment
A pioneering corporate group contributing to the development ofa resilient society where people can live affluent and cultural lives

Basic stance

Rough indicatorsof numericalperformance

Achieving safety and security
Optimal utilization of “Human Capital,” “Technology”
and “Intelligence”

Group net sales

About¥2.5 trillion

Customers, suppliers, and society

Returns tostakeholders

23 T A I S E I ANNUA L R EPORT 2022

Group net income

About¥150.0 billion

Shareholders

Returns throughDividend payout ratio

CDE325-30%

ROE

About

10%

Employees
To promote further diversity andinclusion, establishing a comfortableworking environment, personnel
systems, and salary plans thatenable employees to leverage theirdiverse range of skills to the maximum possible extent

About the Taisei Group

Sustainability Section

Aiming to Realize Our Vision

C

t
ons

ruc

Governance Section

Data Section

tion

En
er
gy

En

gi

ne

er

ing

D evelopment

E nvir

Proactive
response to
major waves oftransformations
as a pioneer

onm

ent

IX

IX Industry Transformation
IX

Increasing pressure
for constructionindustry restructuring●SX
To expand our businessscope through M&A andother means

DX

Group net
sales

¥1,480.1 billion

Group net
income¥92.6 billion

IX

SX Sustainability Transformation

SX
DX Digital Transformation

SX

Moving to solve environmental andsocial issues through our businessDX●DX
To target the front-runner status in the envi-

ronmental sector, accelerating our initiatives
toward carbon neutrality● To promote further diversity and inclusion,
establishing a comfortable working environment, personnel systems, and salary plans thatenable employees to leverage their diverse
range of skills to the maximum possible extent

Group netsales

¥2 trillion

Group net
income¥100.0 billion

Towards an era where
digital transformation
determines
competitiveness● To establish our competitive

superiority by enhancing
productivity, speeding up
decision-making, and creating
new services

Group net
sales

¥2.5 trillion

Group net
income¥150.0 billion

2020

2023

2030

Previous Medium-Term Business Plan

Medium-Term Business Plan

TAISEI VISION 2030

(2018-2020)(2021-2023)

TA I SE I A N N UA L R E P O R T 2 0 2 2 24

Aiming to Realize Our Vision

Growth Strategy and Sustainability

Medium-Term Business Plan (2021–2023)
Medium-Term Business Plan (2021–2023) | Key Issues● Key issues to be focused on over the next three years are identified in order to achieve TAISEI VISION 2030, considering

the current business environment.

● The key issues are classified into business issues and sustainability issues.
● In addition to the initiatives targeting our existing business, the initiatives expanding our business scope through M&A

will be implemented.

▍ Business-relatedGroup Domestic Building Construction BusinessTo establish our superiority in a fierce competitive environment

C

Group
Domestic
Civil Engineering
BusinessGroup
Domestic
Building
Construction
BusinessToto establish
businessenvironment
foundations
To develop
establishthe
oursystems
superiority
in a fiercesolidcompetitive

C

Group
Overseas
Construction
BusinessGroup
Domestic
Civil
Engineering
Business

To build the systems to ensure our profits for establishing the stableTo
developthe systems to establish solid business foundations
businessfoundations

Development

D

Group
EstateConstruction
DevelopmentBusinessBusiness
GroupReal
OverseasTobuild thethe systems
stable income
foundations
theestablishingGroup development
To buildto ensure
our profitsinfor
the stablebusinessbyoptimizing
the portfolio of our real estate and pursuing investment efficiency
businessfoundations

E
DGroupEstateEngineering
Business
Group Real
Development
BusinessTo
the ourstableincometofoundations
the Group
To build
leveragestrengths
expand theinscopeof ourdevelopment
business businessby optimizing the portfolio of our real estate and pursuing investment efficiency

E

Group Engineering Business

Construction

Construction

Engineering
Development

Engineering

To leverage our strengths to expand the scope of our business▍ Sustainability-related
To target the front-runner status in the environmental sector, accelerating our initiatives towards carbon neutrality
Energy andEnvironment

Scope 1 and 2

To achieve our target of “virtually zero” CO2 emissions from business activities (carbon neutrality)

To targetScope
the front-runnerin theenvironmental
sector,accelerating
initiatives
towards
neutrality
3
Tostatusenhancethe performanceof ourZero Energy
Buildingsour(ZEBs),and expand
green carbon
procurement
Energy andEnvironment

Scope 1 and 2

To achieve our target of “virtually zero” CO2 emissions from business activities (carbon neutrality)

3
Toenhanceperformance of our Zero Energy Buildings (ZEBs), and expand green procurement
To buildScope
the foundation
based
on thesustainability
SafetyFoundation
Development

Foundation
Development

To achieve zero fatal accidents and zero serious accidents

ToTechnicalbuild thefoundation To
based
on thesustainability
development
promotetechnical development to solve environmental and social issues through open innovation
DX
SafetyWorkstyle reform
Technical development
Corporate governanceDX

To innovate the production systems, and reform the workstyles through digital transformation (DX)To achieve zero fatal accidents and zero serious accidents
To promote the measures that emphasize an attractive working environment as well as diversity and inclusion
To promote the technical development to solve environmental and social issues through open innovation
To maximize synergies by rebuilding the Group governance systems
To innovate the production systems, and reform the workstyles through digital transformation (DX)Workstyle reform

To promote the measures that emphasize an attractive working environment as well as diversity and inclusion

Corporate governance

25 T A I S E I ANNUA L R EPORT 2022

To maximize synergies by rebuilding the Group governance systems

About the Taisei Group

Aiming to Realize Our Vision

Sustainability Section

Governance Section

Data Section

Medium-Term Business Plan (2021–2023) | Numerical Targets andInvestment Plans▍ Numerical targets for FY2023

ROE

About

10%

Group net sales ¥2 trillion

Dividend
payout ratio

About

Net
interest-bearing
debt

25%

Group operating income ¥140.0 billion

Maintaining state of
substantive debt-freemanagement

Group net income ¥100.0 billion

Note: The above numerical targets and indicators do not include assumptions of any future M&A.

▍ Investment plans
Investment
amountThree years¥250.0billion*1

Investment in technical
1. development*2¥60.0 billion

2. Investment in information*2¥60.0 billion(1) D igital transformation(DX)¥30.0 billion(2) Existing systems¥30.0 billion

Capital and personnel-related¥15.0 billion

Business-related¥125.0 billion

3. investment

4. investment*1 Not including M&A investment*2 The Items 1 and 2 above include someoverlapped amount.

Environmentrelated investment
Three years¥60.0 billion*

3⃝Of the environment-related investment amount,items included in investment in technicaldevelopment and business-related investment

M&A investment⃝M&A investment, etc. for expanding ourbusiness scope to be allocated separately

Investment in technical development
Technical development that contributing
to industrial sectors expected to grow,through a virtuous cycle for the economy
and environment¥42.0 billion

Business-related investment
Investment in renewable energy
businesses¥18.0 billion*3 Included in investment amountTA I SE I A N N UA L R E P O R T 2 0 2 2 26

Aiming to Realize Our Vision

Growth Strategy and Sustainability｜ Group Business Strategy

Group Domestic Building Construction Business

Creating Value for the Future
by Responding to the Needs of Society and Our Clientswith Comprehensive Capabilities.

Senior Managing Executive Officer,
Members of the Board;
Chief of Architecture & Engineering
Division (Integrated);
Chief of Building Construction Division

Yoshihiro TERAMOTOGroup Domestic Building Construction Business

Achievements in FY2021● Establishment of a system to improve the competitiveness of

Key Issue

To establish our superiority in a fierce
competitive environment
Market Scenario●General Building Work:

The impact of the coronavirus pandemic is expected to recovergradually even though it will take some time. However, the competitiveenvironment remains difficult as the future outlook remains unclear.

●Building Renovation Work:

The potential demand for building renovation works is large and is
expected to exceed average yearly performance from FY2022.

Key Measures●To enhance the systems to improve the Group’s competi-

tiveness in securing orders for new construction• To develop the systems for Value Engineering (VE) proposals andconstruction proposals by adding more staff to specialist teams
and utilizing digital technologies and data• To deepen relationships with customers by such measures as
returning to our origins in prioritizing outward-facing activities, andset our sales policies and targets more promptly● To expand the sector specialized in building renovation

through organizational restructuring• To establish the teams specialized in building renovation at Headnew orders•D evelopment of a proposal system by establishing andincreasing the number of staff in the Strategic Design
Department• General construction work is transferred to the head officeestimation department, and renewal projects are transferred to Building Renovation Dept. in branch offices.
● Expansion of building renovation business through organizational restructuring•E stablishment of the Building Renovation Division at thehead office and Building Renovation Dept. at each branch
office to enhance the system•A chieved the target by increasing bids for large-scalecompetitive building renovation projects.
● Improvement of productivity through the use of digitaltechnology and the consolidation of operations• Expanded the scope of BIM utilization for facility and renovation works by the specialized organization at the head office.
•A chieved a 100% support rate for general construction
works by the head office support organization.
Expand the scope of support for large-scale building
renovation works in the future.
• Began business process reengineering (BPR) activities topromote consolidation and elimination of business lines.

Office and branches, and unify the organizations for promotingbuilding renovation● To enhance productivity by utilizing digital technology, andconsolidating operations, etc.
• Nationwide rollout of consolidated worksite operations utilizing
specialist teams● To expand the business scope through utilization of M&A, etc.

• To achieve success in the telecommunications sector, where

growth is expected, as well as the sectors and areas where theGroup lags behind

Segment Overview
Group Net Sales (Billions of Yen)

1,225.0

899.4

2016

2017

2018

2019

2020

2021

2023 (target)

Net sales increased 4.9% from the previous fiscal year to ¥899.4
billion due to steady progress in on-hand construction projects.

27 T A I S E I ANNUA L R EPORT 2022

Initiatives for the Future
Based on the policies of the Medium-Term Business Plan, in
addition to continuing to implement measures in FY2021, we will
create value for the future through the following initiatives,
leveraging our integrated strengths from project start to construction and commercialization.
● Expand our proposal sales such as green renovations andstrengthen the renovation field by shifting personnel to therenovation business.
● Expand our proposals to include environmental technologies incooperation with the Sustainability Division (Integrated).
● Promote presentation and specification decision in virtual
reality space.

About the Taisei Group

グループ国内Aiming to Realize Our Vision

Sustainability Section

Governance Section

Data Section

土木事業Group Domestic Civil Engineering Business
Executive Vice President,
Representative Directors;
Chief of Civil Engineering Division;
In charge of Safety

Aiming to Address Social Issues andDemonstrating the Corporate Value That

Shigeyoshi TANAKAIs Unique to the Group.

Group Domestic Civil Engineering Business

Achievements in FY2021● Expansion of bidding organizations in fields where growth is

Key Issue

To develop the systems to establish
solid business foundations
Market Scenario●Private Sector:

The market is expected to shrink as a result of COVID-19 and recovery
will take time. Growth is expected in the renewable energy sector, but it
will be after FY2024 that there is an affirmative effect on our business.

●Public Sector:

Affirmative impact on the Group is limited by public investments, suchas the measures for prevention and mitigation of disasters, and themeasures aimed at building the national resilience of Japan.
It is expected that the weight of expressways and other renewal construction will increase.

expected•R eceived orders for onshore wind power projects by
establishing a specialized organization.
•R eceived orders for highway renovation projects.
● Improvement of productivity and securing of production capacity• Improved productivity in outside work by utilizing DX andinformation and communications technology (ICT).
• Established the Projectsite Support Office.
• Consolidated and improved the efficiency of pojectsite
operations.
● Expansion of proposal sales using differentiated technologies• Updated and improved the Taisei technical library.

Initiatives for the FutureKey Measures●To develop the systems to enhance the Group’s competi-

tiveness in receiving orders• To identify more ECI* projects, etc. where we can utilize our strengths
as a group, and develop the organization to win bids thereof• To develop company-wide backup systems to win discretionary
contracts and design changes* ECI: Early Contractor Involvement; A method where the contractor participatesfrom the design stage●To enhance the teams to win bids in the sectors where

growth is expected, etc.

• To enhance the teams and personnel to win bids of the projects related
to dams, wind power generation facilities, and expressway renewal●To expand the scope of our business through M&A andother means• To expand the sectors where we have a competitive advantage, as
well as to achieve success in the sectors where we lag behind

In addition to continuing to implement the measures in FY2021,
we will aim to disseminate and propose the Taisei Group’s
distinctive corporate value to resolve social issues, along with thefollowing measures:● Win fixed-bed wind power generation projects and promotetechnological development related to design and constructionof floating offshore wind power generation facilities.
● Increase orders for highway renovation projects by developing
an automatic design system for prestressed concrete (PC) slabs.
● Formulate growth strategies for the expansion of the civilengineering-related group companies (Taisei Rotec
Corporation, SEIWA RENEWAL WORKS CO., LTD. and
J-FAST CO., LTD.) (development of a system to respond tobids, expansion of orders beyond the Group, expansion ofbusiness areas, etc.).
● Participate in public private partner (PPP) projects utilizing
group strengths.

Segment Overview
Group Net Sales (Billions of Yen)
402.0

2016

2017

2018

2019

2020

2021

470.0

2023 (target)

Net sales decreased 2.1% from the previous fiscal year to¥402.0 billion, mainly due to a decrease in construction
projects at the peak of the production processes.

TA I SE I A N N UA L R E P O R T 2 0 2 2 28

Aiming to Realize Our Vision

Growth Strategy and Sustainability｜ Group Business Strategy

Group Overseas Construction BusinessContributing to Local Economic Development andthe Resolution of Social Issues in Cooperation with theInternational Community by Leveraging the Technologies
and Know-How of the Taisei Group.

Senior Managing Executive Officer,
Chief of International Operations
Headquarters

Keiji HIRANOGroup Overseas Construction Business
Key Issue

To build the systems to ensure our profits
for establishing the stable businessfoundations

Market Scenario
Building (Priority countries and regions)● Taiwan: The construction market remains strong.
● Vietnam: While the investment to factories by Japanese compa-

Segment Overview
Group Net Sales (Billions of Yen)

130.0

77.6

2016

2017

2018

2019

2020

2021

2023 (target)

Net sales increased 48.4%, to ¥77.6 billion, due to an increasein construction projects on hand.

nies is limited, there is a vibrant real estate development
market, and it is trending toward a moderate recovery.

Civil engineering (Priority countries and regions)● Singapore: Recovery is expected from FY2021 onward, centeredon public investment.

Achievements in FY2021● Philippines: Demand related to Official Development

Assistance (ODA) projects is relatively strong.

● Won orders for luxury condominium in Indonesia in cooperation

with local and global partners.

Key Measures
Common (Priority countries and regions)● To shift from the systems focusing on large-scale

projects to the systems striving to ensure an optimal
mix of different project sizes, by promoting both localization and operations at overseas offices, and collaborating with alliance partners

Building● To build local networks by placing more and younger

local sales staff● To focus on allocating human resources to the airport

sector, where the Group is internationally competitive

Civil engineering● To cut the costs by utilizing the resources of alliancepartners and our supply chain● Enhanced the sales sections in Taiwan and Vietnam.
● Promoted the airport construction project for which orders

have been received.
● Dispatched employees to leading companies in non-construction

fields.

Initiatives for the Future
In addition to continuing to implement the priority measures ofthe Medium-Term Business Plan, we will focus on the following:● Increase the volume of projects undertaken by expanding
business domains and customer segments.
● Employ external personnel to increase construction capacity.
● Further strengthen cooperation with alliance partners to enhanceboth construction capacity and price competitiveness.
● Expand into new countries, regions and business fields tailoredto market trends.

New business● To allocate human resources to the creation of busi-

ness models besides the construction business,based on the business forms of global contractors in
Europe and America

29 T A I S E I ANNUA L R EPORT 2022

Overseas Network

About the Taisei Group

Aiming to Realize Our Vision

Sustainability Section

Governance Section

Data Section

Group Real Estate Development Business
Achieving Value Improvements of Cities through Urban
Development by Listening to the Voices of the Next
Generation and Taking Advantage of Diversity at a
Turning Point in the Way the City Should Be.

Executive Officer,
Chief of Urban Development Division

Takashi YAMAZAKI

Group Real Estate Development Business

Achievements in FY2021● Invested ¥76 billion in prime properties in favorable locations,

Key Issue

To build the stable income foundations in
the Group development business by optimizing the portfolio of our real estate andpursuing investment efficiency
Market Scenario
While there are few concerns surrounding financing and there are nosigns of major fluctuations in the real estate market, cautious judgments
will continue to be required as the market outlook is very unclear.

Key Measures

such as the Otemachi Nomura Building and Ginza Yanagidori
Building, to build the target portfolio. Also participated in newinvestment areas such as logistics.
● Started construction of (tentative name) TAISEI HANOI OFFICETOWER in Hanoi, Vietnam’s first large-scale office building
developed solely by Japanese companies in November 2021.
● Decided to form a private REIT to realize asset-turnover based
business models, optimize the real estate portfolio and pursue
investment efficiency. Started composition procedures with theaim of commencing operations in FY2023.
● Conducted a demonstration test in Tokyo’s Nishi-Shinjuku
district for the practical implementation of an autonomous
mobile service using fifth-generation communications (5G) in
cooperation with infrastructures.

●Real estate: To build the optimal portfolio based on realestate market conditions, and develop the systems toensure stable profits from development• To acquire premium real estate through project control from the
upstream stages of urban redevelopment projects and major
development projects•To optimize our real estate portfolio based on a balance of area,
application, asset efficiency, and stable revenues•To enhance the brand recognition and brand strength of “OBER”
condominiums and “TERRACE” rental condominiums●Facility management: To secure the properties for facility

management with planning and proposals tailored tocustomers’ needs•To establish an integrated customer support system that covers
everything from building construction to facility management●PPP, etc.: To participate in the PPP business, etc. in order

to diversify sources of revenue•To establish the operational systems for airport concession projects, and tackle new infrastructure operation business

Segment Overview
Group Net Sales (Billions of Yen)

Initiatives for the Future
Continuing from FY2021, we will focus on the following
measures in addition to the priority measures of the MediumTerm Business Plan.
● Continue to invest in line with the Medium-Term Business
Plan to build a stable earnings foundation for the Group Real
Estate Development business (planned investment of ¥88
billion in FY2022).
● Establish Taisei Real Estate Investment Advisors Co., Ltd.,an asset management company, in preparation for the startof private REIT management in FY2023 and implement
procedures to obtain approval necessary for the business.
● Promote participation in the operation of large-scale stadiums
and arenas as a challenge to new infrastructure operation
businesses in the private finance initiative (PFI) and PPP fields.
● Expand the facility management business by making themost of the Group’s strengths, such as the adoption of
artificial intelligence (AI) and the Internet of Things (IoT)
technologies, in addition to involvement from the design stage.

132.9
118.0
2016

2017

2018

2019

2020

2021

2023 (target)

Net sales increased 4.8%, to ¥132.9 billion, mainly due tothe sale of large-scale real estate by the Company.

TA I SE I A N N UA L R E P O R T 2 0 2 2 30

Aiming to Realize Our Vision

Growth Strategy and Sustainability｜ Group Business Strategy

Group Engineering BusinessContributing to the Advancement of the Industrial
Structure with the Basic Philosophy of“Engineering That Captures the Changing
Times and Creates True Value.”

Managing Executive Officer,
Chief of Engineering Division

Shinichiro TAKAHAMA
Achievements in FY2021

Group Engineering Business● Expansion of order market share by cultivating existing

Key Issue

To leverage our strengths to expand thescope of our business
Market Scenario● There is generally strong capital investment demand in our target

sectors of pharmaceuticals, food products, logistics, and energy.

Key Measures●To strengthen the existing sectors• Pharmaceuticals sector: To utilize our strengths in terms of technology and expertise to enter the next-generation medical sector,
including biopharmaceuticals and regenerative medicine• Food products sector: To enhance upstream consulting functions,and utilize technical expertise related to automation and laborsaving technology developed in the pharmaceutical sector●To take on new growth sectors• Fine chemicals sector: To utilize the technology from the pharmaceuticals sector to enter markets in areas such as semiconductor
and electronic device materials manufacturing facilities• Logistics sector: To secure competitive superiority in the logistics
facility sector, and expand sales channels in the pharmaceuticals
transportation and delivery business, by making use of our expertise related to proposals based on feasibility studies (FS) and the
Guidelines on Good Distribution Practice (GDP)●To develop the systems for expanding the scope of ourbusinesses• To utilize external human resources to expand our production
capabilities

Segment Overview
Group Net Sales (Billions of Yen)

55.0

27.5

2016

2017

2018

2019

2020

2021

2023 (target)

Net sales decreased 2.1% from the previous fiscal year to¥27.5 billion as a result of revisions to investment plans andthe postponement of plant construction due to the spread of
the COVID-19 pandemic.

31 T A I S E I ANNUA L R EPORT 2022

business fields•P harmaceuticals: Received orders for large-scale projects byproposing differentiated technologies such as automationand labor-saving technologies.
•F ood business: Created a competitive advantage by actively
receiving orders for the feasibility studies (FS) business andhorizontally deploying technologies owned by the Company,
and received orders without competitive bidding.
•P roduction facilities: Continued the receipt of orders forexisting customers, mainly for electronic device-related
facilities.
● Expansion of new order fields by challenging growth markets•F ine chemicals: Received orders for large-scale projects
such as manufacturing facilities for biopharmaceutical active
pharmaceutical ingredients and raw materials for electronic
devices.
•L ogistics: Acquired orders for logistics facilities attached to
manufacturing facilities.
•A quariums: Won orders from renovation proposals forexisting facilities.
•E nergy infrastructure: Received orders for wind power
generation facilities and hydroelectric power generation
facilities in the renewable energy field.

Initiatives for the Future
The Engineering Division’s strength lies in its ability to meetpotential needs in all fields, capture the changing times, create
true value and provide optimal solutions, based on its abundant
experience and achievements. We consider all functions suchas construction, production, logistics, information and utilities
as an integrated system, and by responding to the full phasefrom project planning to schedule, design and construction, we
realize customer needs and contribute to the stable supply ofhigh-quality, safe and secure products. By implementing thefollowing measures in addition to the continued implementationof FY2021 measures, we aim to provide even greater added
value than our customers expect, gain their trust, and contributeto the advancement of our industrial structure.
● Further strengthen the horizontal deployment of our superior
technologies and know-how and our FS and consulting
operations.
● Implement flexible and timely proposal activities in responseto changes in social conditions and market trends.

About the Taisei Group

Aiming to Realize Our Vision

Sustainability Section

Governance Section

Data Section

Technical Development (Taisei Advanced Center of Technology)
We aim to develop innovative technologies to resolve environmental and social issues.

Technical Development
Key Issue

To promote the technical development to solve environmental and social issues through open innovation● Technical development contributing to industrial sectors expected to grow, through a virtuous cycle for the economy

and environment

Industrial sector*

Details

Offshore wind power

Bottom-fixed and floating●

Logistics, people flow,
and infrastructure

ICT construction
Smart cities
Disaster simulation●

Green procurement
CO2 recovery and storage
Use of wood materials●

Carbon recycling

Low-cost bottom-fixed and floating substructures and foundations

Unmanned construction*1, robot construction technologies, 3D printer technologies
Wireless EV-charging roads● Realtime danger prediction (flooding, etc.)●

Developing and using concrete made with recycled carbon
Evolution of technology related to storing CO2 underground●H ybrid construction, combining wood with reinforced concrete and steel,and technology to utilize CLT*2● Next-generation high-performance ZEBs
●P
 ower generation systems integrated with glass and related products
for renewal●

Housing and building,next-generation PV

ZEBs
Next-generation solar powercells (PV)

Lifestyle-related industry

Smart communities

HydrogenHydrogen storage and transportation

Nuclear power

New light-water reactors
(LWR)

●

Foods, agriculture, forestry,
and fisheries

Plant factories●

Efficient cultivation systems that reduce light energy

Resource circulation

Energy recovery●

Technology for using methane gas

Technology for combining and coordinating regional renewable energy
and devices that require energy●●Demonstration of low-pressure hydrogen transportation systems
Technology to enhance the safety and economic efficiency of nuclear
power facilities*1 Industrial sectors are quoted from “Growth Sectors” in the government of Japan’s “Green Growth Strategy”*2 Cross laminated timber: The woody material is obtained by arranging wooden plates (laminar) in the width direction and laminating and adhering them in the
thickness direction so that the fiber directions are orthogonal to each other. Cross laminated timber is a large, thick board used for construction materials aswell as civil engineering materials and furniture.

Technology Topics① Unmanned construction
T-iROBO®Rigid Dump

②Development and use of carbon-recycle concrete
T-eConcrete® / Carbon-Recycle③Technology utilizing CLT
T-WOOD® PC-BEAM

It carries out a series of soil transport
operations, from loading and transport to soil removal, automatically ata maximum speed of 30 km/h.

As a first step for the implementation in society toward the realization of carbon neutrality in 2050, wall materials manufactured
using “T-eConcrete®/Carbon-Recycle” were applied to a building
for the first time.

This composite beam combines
laminated timber and prestressed
concrete beams to improve beam
design and structural performance.
Since laminated timber alsofunctions as a form and a decorative finishing material, it reduces
waste generated during factory
manufacturing.

274kg/m3–119kg/m3

69kg/m3
CO2 emissions
during manufacturing

CO2 absorbed
Ordinary concrete

Carbon-recycle concrete

Installation at a demonstration
facility of the Taisei Advanced
Center of Technology

CO2 emissions per basic unit =Emissions – Absorption = 69 – 119 = –50 kg/m3
Reduction rate of CO2 emissions = 	Ordinary concrete per basic unit – Carbon-recycle
concrete per basic unit: 274 – (–50) = 374 kg/m3“T-iROBO Series”
See the glossary on p.102 for the “T-iROBO Series”

p.52 Environmental solution“T-eConcrete® / Carbon-Recycle,” “T-WOOD®”

Furubira Town
Multi-Purpose Facility

TA I SE I A N N UA L R E P O R T 2 0 2 2 32

Aiming to Realize Our Vision

Growth Strategy and Sustainability

Overview of Sustainability-Focused Management andMedium-Term Business Plan Initiatives
International disclosure standards, code of
conduct, and standards of behavior:● GRI Standards● UN Global Compact● ISO 26000

Materiality (Issues to be dealt with)E

1

Realization of a sustainable and environmentallyfriendly society

2

Ensuring quality and improving technology

3

Technical development for realizing a sustainable society

4

Promotion of supply chain management

5

Thorough management of occupational health and safety

Environment

Consumer issues

Environment
Consumer issues
Community

Fair operating practices
Human rights

S

G

6

Cultivation of technical staff and securing human resources

7

Realization of an attractive working environment that isgood to work in

8

Thorough compliance and restructuring of
the Group governance system

Labor practices

Human rights
Labor practices
Consumer issues

Human rights
Labor practices

Organization governanceFair operating practices

Represents the seven core subjects of ISO 26000.

33 T A I S E I ANNUA L R EPORT 2022

About the Taisei Group

Aiming to Realize Our Vision

Sustainability Section

Governance Section

Data Section

TAISEI Green Target 2050
Decarbonized Society

CO2 emissions from business activities: virtually zero

Recycling Oriented Society Final disposal rate of construction byproducts: 0%
Nature Co-Existing Society Minimize the impact on the natural capital
Safety Secured Society

Provide value with zero social and environmental risks

Relationship withSDGs, etc.

Key measures under the Medium-Term Business Plan
● To achieve our target of “virtually zero” CO2 emissions from business activities (carbon neutrality) (Scope 1 + 2)

Environment● To enhance the performance of our Zero Energy Buildings (ZEBs), and expand green procurement (Scope 3)

Environment● To establish a system to manage the Group environmental targets

Environment●T o conduct the environmental patrols and education to eliminate environmental accidents● Technical development where the Company has a competitive edge

SafetyDX● To establish the production process in a visualized and efficient ways throughDX

state-of-the-art digital technology● To develop and commercialize next-generation high-performance ZEBs and develop

and use the carbon-recycle concrete● Technical development contributing to industrial sectors expected to grow, througha virtuous cycle for the economy and environment● To establish a business in the operations and maintenance (O&M) area
● To shift to a style of data-based sales through making proposals at the optimal timing● To promote the supply chain management aimed at solving environmental and social issues, etc.

•To promote the procurement complying with the “Sustainable Procurement Guidelines” acrossthe supply chain as a whole•To coordinate with suppliers in a way complying with the “Declaration of Partnership Building”● To improve the systems for providing procurement-related information

Technical Development

DX
SafetyDX● To promote the health and safety and environmental management through the utilization

Safety● To promote Roadmap to FY2024 for “addressing long working hours”● To enhance the support for all member companies of the Soyukai•To enhance and maintain the training for Soyukai members at the Konosu Training Center•To support the registration and use of the Construction Career Up System (CCUS)● To establish the workstyles and the working environments that enable a diverse

range of human resources to fully perform their abilities•To expand mid-career recruitment, studying and implementing the plans for theircompensation and other benefits•To study and implement the plans to establish the workstyles where female employees,
elderly employees, and others can fully perform their abilities● To secure digital human resources, and establish a rotation system

Work Style Reform
SafetyWork Style Reform

Employment

Compliance with the
Revised Labor Standards
Act (FY2024)

Achievement of the targets of
the General Employers Action
Plan based on the Act on
Promotion of Women’sParticipation and Advancementin the Workplace (FY2025)

DX● To clarify the functions of the Group Head Office

Governance● To establish the effective systems to manage Group companies, etc.

Governance● To build an integrated platform

Safe city

DX

Safetyof digital technologies, etc.

Infrastructure

Technical Development● To enhance the patrols by the Company and officers of Safety, Health, and Environment

Cooperation Association, etc., ensuring thorough education in order to prevent
designated disasters, etc.

Climate change

Technical Development● To establish Digital Twin based on coordination with the BIM/CIM design andconstruction cloudEnergyDX

Applicable items of the infrastructure development plan
TA I SE I A N N UA L R E P O R T 2 0 2 2 34

Aiming to Realize Our Vision

Special Featur e 1

DX × SDGs Talk

Special Feature 1

To Enhance Innovation Capability
through Digital Transformation (DX)
Professor
Rikkyo University Graduate
School of Business

Chief Digital Officer (CDO),
Executive Officer,
Chief of Corporate Planning OfficeMichiaki TANAKA

Hiroki FUKASAWA

Recognizing the era in which DX critically affects competitiveness, Taisei Corporation is
working on DX throughout the company, with keeping the reforms of production systems
and workstyle as well as the development of new ways of interacting 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 of Corporate 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 transformationthat enables the future Taisei Corporation to progress even more steadily.

35 T A I S E I ANNUA L R EPORT 2022

About the Taisei Group

Aiming to Realize Our Vision

Sustainability Section

Governance Section

Data Section

Challenges in DX Initiatives of Taisei Corporation
FUKASAWA: Professor Tanaka studies companies andorganizations around the world that have achieved
outstanding results by using DX. Today, I would like to hear
about examples of leading companies’ efforts to think
about our company’s DX.
TANAKA: I have studied the activities of various leading companies, and excellent companies have something in common,
whether they are digital native* or non-digital companies.
First of all, their way of using digital is very fundamental.
They define what the axis of their business is and use
digital to strengthen it. In doing so, they focus on enhancing
customers’ convenience and enhancing customers’ asset
value from the perspective of customers. At the same time,they use it to make it easier for employees to work and toincrease employee engagement.
In the United States, initiatives based on stakeholder
capitalism, including customers, employees, and local
communities in addition to shareholders, began several
years ago. I think it shows an approach that you start withcustomers and employees to think about how much you
can strengthen your business.
FUKASAWA: Certainly, we need to remember it once again
seriously so that we are not left behind in global competition.
For our company, the construction business is the
backbone of the company and we will surely continue todevelop it. However, I think the process of how we do sowill change with the times.
In the past, employees’ work hours were used asresources in a way to make jobs viable, but that will notwork going forward. As a matter of course, improving
productivity is an urgent issue.
We have been striving to improve productivity by transferringand consolidating some operations such as procurement andthe preparation of construction drawings that used to be doneat each project site to the head office. We have already been
actively working to automate and streamline operations
through the use of digital technology, and our company’s
production system is beginning to undergo significant changes.
Although, until 20 years ago, the number of skilledconstruction workers was more than 4 million, the number is

now less than 3.2 million. Further aging and a decrease in
the number of workers are expected to continue. Therefore,
we also have to go further into mechanization, automation,and robotization to improve productivity at project site.
TANAKA: The “TAISEI VISION 2030” sets out initiatives forthree X’s, that is, IX, SX, and DX. In fact, from what you have
said, I see that Taisei Corporation has a very strong awarenessof issues about DX. What triggered your accelerating DX?
FUKASAWA: The Ministry of Land, Infrastructure,
Transport and Tourism designated 2016 as the first year of
the productivity revolution to promote the wider use andestablishment of i-Construction, resulting in the use of ICT
in the industry to progress dramatically.
While our company had also been making preparations,such as research in this field and the automation ofmachinery, it prompted us to accelerate it further to start
studying the automatic control of large heavy machinery andso on. For example, we developed “T-iCraft*1” a system that
automatically controls multiple construction machines andautomatically carries out specified operations such as excavation, loading, and transportation. In this way ICT is now
being used in a tangible manner at actual production field.
Meanwhile, skilled construction workers at our project sites
are engaged in the construction business in a multilayered
structure in the form of those hired by primary and secondary
subcontractors. I believe that establishing DX among suchsubcontractors is the role of a general contractor because wecoordinate the entire construction process. To this end, how
do we cover the entire production system of the construction
business and use DX to link them all?
The entire company is working to create systems andplatforms for that with a sense of speed. The other day, we
made substantial changes to a system called “Project SiteNet” in which our employees and staff at the partnercompanies at project sites share drawings and key data forconstruction operations such as quality control and schedule
control. This has been well received by our partnercompanies, who say they can feel the progress of DX.
*Digital native companies: Companies established in or after 1995 which provide
services and businesses that are predicated on the use of IT and digital technologies

DX Initiatives That We Promote Together with Our Clients
TANAKA: Also in Japan, each general contractor seems to
be working hard, and competition in the digital world will

become very severe in the future. First of all, I think DXshould be speedy and comfortable. Shopping, for

TA I SE I A N N UA L R E P O R T 2 0 2 2 36

Aiming to Realize Our Vision

Special Featur e 1

example, is as simple as entering an automated convenience store, picking up what you want, and walking away.
It’s so comfortable that you may even forget you’re shopping. Of course, the construction business actually builds
structures, so I doubt everything will be digitized. However,I think how you connect with your clients will change.
FUKASAWA: Yes, I think so. We are in the built-to-orderindustry in which we start with the design of construction
work after we received the order, and we have been
focusing to produce and deliver products of better quality
and higher satisfaction according to the work schedule
while having meetings with the clients. In the future, we
believe that it is important to provide services that enable
us to manage buildings together with our clients, thereby
extending their life cycles and sustaining their asset values
over the long term. We are also working to maximize DX
utilization in this respect.
There is a huge amount of data accumulated in the
Company, including design, construction, and procurement. The goal is to aggregate innumerable pieces of

DX × SDGs Talk

information, that have existed in a scattered manner andhave not been shared, into a single database so thatanyone could derive necessary information from that.
A building has a variety of events such as large-scale
repairs even after the completion. For such occasions, we
can identify the client’s needs from the database or propose
the optimal solution. We have established “Life Cycle OS*2”
that could be used for business after the completion of
construction. BIM and IoT are integrated to provide necessary information services according to the lifecycle of abuilding. We want to take DX to a point where we can build
closer relationships with our clients than ever before.
TANAKA: What is happening now with DX is that we canconnect directly and digitally with each customer or client.
The phrase “customer-centric” will now be coming to every
industry as reality, not a mere message. Consumers cantell at a glance whether it is truly customer-centric, and thatis exactly what is to be questioned.
And the word “connect” has become a more meaningful
keyword. Even if you want to connect with a customer,
they may not. What kind of company does a customer
want to connect with? It is not a top-down company, but aflat, friendly company.
If you put yourself in the consumer’s shoes, you’ll see thatquickly. I think it will be important going forward to build
good relationships with your clients over the long term.
FUKASAWA: As you said, I think that will form the basis.
We need to increase the number of fans of Taisei Corporation
and receive orders continuously. It means building a win-win
relationship that is not good only for us but also for ourclients, doesn’t it? I think it is important for all stakeholders
to have sense of understanding and move in this direction.

Future Vision and DX Human Resources Development
FUKASAWA: Our company has established the DX
Promotion Committee, a company-wide organization, andthe entire Group is working towards DX. In this context, it isnecessary for each division or headquarters to proceed withthe transformation on its own. Are there any excellent examplesof leading companies in your research, Professor TANAKA?
TANAKA: Looking at the examples of overseas companies, they begin with the idea of how to share mindset andvalues throughout the company. An organization is, in otherwords, a corporate culture. Walmart’s success with DX, forexample, comes from its efforts to reinvent its corporate
culture. Making thorough thinking about the purpose ofreinventing, which part of the corporate culture to be left as

37 T A I S E I ANNUA L R EPORT 2022

an excellent point that represents your own personality, andwhich part needs to be changed. This is truly a change inmindset and corporate culture. It is a serious effort,
however I think it is necessary for management to firstdevelop a common understanding, then work on it
throughout the company and share it with all employees.
FUKASAWA: Our company has set out “A pioneering
corporate group contributing to the development of a
resilient society where people can live affluent and cultural
lives” as its medium to long-term vision in the “TAISEIVISION 2030.” In particular, the “development of a resilient
society” is a major mission of a construction company.
At the same time, keeping an eye on wider cooperation

About the Taisei Group

Aiming to Realize Our Vision

with society, not just with the construction industry, we workon DX to reduce the load of skilled construction workers inlight of the future trend in the labor force, and DX to provide
the best services to our clients and end users.
The basic idea is indeed “DX for people.” This kind ofmindset should be further cultivated and sharedthroughout the company, shouldn’t it?
TANAKA: I think so. How should Taisei Corporation be in
2030, what value should it provide, and what should it dofor the next generation? If you have a clear sense of themission and mindset, human resources education should
also progress smoothly.
FUKASAWA: The speed at which we implement DX
critically affects our competitiveness. Our company is also
promoting the hiring of DX human resources and plans todevelop DX human resources internally. However, there is aproblem of insufficient knowhow to reskill employees todevelop DX human resources, and it is also important challenge how to solve this problem. Our company haslaunched “DX Academia” as our proprietary system todevelop DX human resources. I feel that Japan has some
way to go to adequately develop education systems, etc.,
for DX human resources. How should the current situation
be viewed compared to other developed countries?
TANAKA: I think Japanese society tends to think of DX as
something special. For example, when I studied at Booth
School of Business, the University of Chicago, one thing
surprised me. People used data and mathematics to
conduct advanced research at that time, too, but few ofthem majored in mathematics or computers in college.
They have all studied liberal arts such as philosophy andsociology. There were many people who acquired fineeducation and broadened their perspectives in undergraduate studies, and came to the graduate school aftergaining work experience.
I also studied a national human resources development
program in Israel. Of course, there were young people withoutstanding intelligence enrolled, but that’s not the only
thing that matters. It is whether they demonstrate leadership and excellent human qualities that the coaching side
ultimately focuses on.

Sustainability Section

Governance Section

Data Section

It is not the case that you can do DX if you are good atmath. What’s important is how heightened a sense of
mission and awareness of problems each individual has.
FUKASAWA: Certainly, it becomes obvious what weshould do if we have a clear sense of mission and problems. If digital technology is then needed, you can learn
and use it according to the objective. I think it will make itmuch easier for each and every employee to work on.
TANAKA: Learning digital technology skills in a narrow
sense is not so difficult in this age. On the other hand,people who do not have clear mission change what they’re
doing constantly. Such people do not have the consistent
purposes and objectives between what they were doing
yesterday and what they are doing today. In such case,even with digital technology, it won’t lead to the kind oftransformation we should be aiming for. In conclusion, I
think the bottom line is that mindset education and liberalarts education are paramount.
When you think about what DX is all about, the key is tocontinue to pursue transformation. You should review yourown issues seriously, update and execute your mission
and vision according to the situation, and execute again.
Repeating it will bring you closer to your goal. It’s very
important to have such mindset, and digital technology is
the way to do it.
FUKASAWA: The transformation is to transform within an
individual, that is, self-reformation. It was a very thoughtprovoking talk. Thank you very much for your time today.

*1 “T-iCraft”
T-iCraft is an abbreviation of Taisei ict Construction Robot Automatic Fit Team, and is a system that controls the coordinated operation of multiple autonomous
construction machines.
*2 “LifeCycleOS”
LifeCycle OS is a building platform of Taisei Corporation that combines BIM and IoT to provide information services for various building users throughout the
lifecycle of a building.

TA I SE I A N N UA L R E P O R T 2 0 2 2 38

Aiming to Realize Our Vision

Special Featur e 2

Human Rights × SDGs Talk

Special Feature 2

To Enhance Organizational Capabilities
through Human Rights Due Diligence
Attorney at Law admitted in Japan and
the State of New York,
Partner, CLS Hibiya Tokyo Law OfficeSenior Managing Executive Officer,
Chief of Sustainability Division (Integrated);
Chief of Clean Energy & Environmental Business
Promotion Division

Emi OMURA

Jiro TANIYAMA

How can we put the concepts, SDGs and human rights due diligence, that are essential in
the future global trends at the heart of the company and embrace them in a concretemanner? This is an urgent issue for the Taisei Group.
A talk between Jiro TANIYAMA, Chief of the Sustainability Division (Integrated), who wasdeeply involved in the formulation of the Medium-Term Business Plan (2021-2023) andpursues initiatives for the SDGs, and Ms. Emi OMURA, a lawyer with extensive knowledge
on human rights issues around the world, provides an overview of the Group’s initiatives
and their effectiveness, and the future vision we should aim for.

39 T A I S E I ANNUA L R EPORT 2022

About the Taisei Group

Aiming to Realize Our Vision

Sustainability Section

Governance Section

Data Section

SDGs and Human Rights
TANIYAMA: “The Medium-Term Business Plan (2021-2023)”
under which we make focused initiatives over the three
years with a view to realizing “our medium to long-term vision(TAISEI VISION 2030)” was kicked off last year. I myself wasdeeply involved in the formulation of this Medium-TermBusiness Plan and had many discussions. The term SDGs
was indeed an important keyword in the process.
As you know, the SDGs were adopted by the United
Nations in 2015. Meanwhile, even before we started using
the term SDGs, we were deeply committed to the concept.
In 1990, our Company formulated the Taisei Group
Philosophy “to create a vibrant environment for all
members of society” which states that “We seek in anenvironmentally sustainable manner to create safe andattractive spaces with exceptional value and to create a
global community filled with hopes and dreams for the
benefit of future generations.” It embraces the idea of“leaving no one behind” for the future, which is, I believe,
truly in line with the concept of the SDGs.
In addition, our Company’s structure of values andprinciples includes the “Taisei Spirit” and the “Overall
Principles of Conduct.” Chapter 1 of the latter advocates
respecting fundamental human rights and diversity,
engaging in neither discrimination in any form nor any

action in violation of human rights, and cultivating an open
and vibrant corporate culture in which everyone can fully
exhibit their capabilities. The idea of aiming for a society inwhich diversity and inclusion can be realized is nothing else
but our spirit, and is also one of our goals.
OMURA: The preamble of SDGs affirms that the world’s
universal challenge is to realize human rights for all and toachieve gender equality. So when companies address theSDGs, they address human rights, gender equality, diversity and inclusion. And as Mr. TANIYAMA says, it isimportant to “leave no one behind.”Your Company’s “Human Rights Policy” contains the“Fundamental Attitude towards Respecting Human Rights”
in the beginning. It says “We, Taisei Group, contribute to
the realization of an inclusive society by fulfilling our corporate responsibilities voluntarily, positively, and proactively so
as not to cause adverse impacts on human rights inrelation to our business activities.” This is nothing else but
the goal of the SDGs. The Medium-Term Business Planclearly shows internally and externally that sustainability is
one of the pillars of management, by paraphrasing in the
SDGs terminology what you have been practicing over thelong history since the foundation.

Initiatives for Human Rights Due Diligence
TANIYAMA: After all, the construction business is madeviable by people. In that sense, it is necessary to assess
risks and their impacts and to take appropriate measuresin relation to human rights due diligence (“Human Rights
DD” hereinafter) which has become a global standard.
The “Human Rights Policy” you just mentioned was
first formulated in 2015. It had clarified our fundamental
ways of thinking on human rights and we had been
conducting awareness-raising activities regarding
discrimination and harassment, mainly targeting our
employees. However, Human Rights DD stipulated in the“Guiding Principles on Business and Human Rights” (the“Guiding Principles” hereinafter) established by the United
Nations was expanded to cover customers, the entire
supply chain in Japan and overseas, as well as local
communities, and we understood a need to introduce
Human Rights DD.
In 2022, we revised the “Human Rights Policy” and also

introduced Human Rights DD, and are working on it as amajor task.
As part of this effort, we assessed human rights risks fromthe two perspectives of “impact on human rights” and“connection with the Company,” taking into account therisks unique to the industry of construction business, andidentified, systematized and evaluated human rights risks inthe supply chain. As a result, it was the areas of long
working hours, and health and safety that emerged as thebiggest issues for us. The fact that these areas are posing
major risks came to light once again through quantification.
It is a labor-intensive job, so it is true that there was a
problem peculiar to the industry that people tend to work
long hours in order to keep construction deadlines.
However, in today’s society, such a stance is not accepted.
We recognize once again that it is a major corporatechallenge to express in writing quantified consideration tohuman rights after thoroughly explaining this to our clients.

TA I SE I A N N UA L R E P O R T 2 0 2 2 40

Aiming to Realize Our Vision

Special Featur e 2

OMURA: The construction business has a very long supply
chain and a wide range of stakeholders, from raw material
production and procurement to community relations.
Human rights risks, that is, potential negative impacts on thehuman rights of stakeholders, are also diverse. I believe you
have been working to address the issues of employees’
working hours and health and safety for a long time,
however there is an increasing trend that you have to pay
attention to it as far as the working environment of suppliers.
Your Company formulated the “CSR Procurement
Guidelines” in 2013, which was renamed the “Taisei Group

Human Rights × SDGs Talk

Sustainable Procurement Guidelines” in 2022, updating thecontent for items such as respect for human rights. Just
like the “Human Rights Policy,” I thought the measure wastaken in line with the essence of the “Guiding Principles.”TANIYAMA: Yes, exactly as you have said.
OMURA: In the past, CSR was thought of as a company’s
fulfilling its responsibility to society on a voluntary basis,
which is at a different level from legal obligation. On theother hand, the “Guiding Principles” clearly state that therisk of causing or contributing to human rights violations isa matter of legal compliance, which is a major difference.
The fact that your Company has updated the humanrights policy and procurement guidelines shows yourCompany’s determined stance towards compliance inrecognition of the “Guiding Principles.”TANIYAMA: Thank you very much. Even for the term of
CSR, this is an era in which the approach of a company ona standalone basis such as “disciplining yourself” as usedin the past is not good enough. We clarify our stance on
fulfilling our responsibility to respect human rights and arebuilding a mechanism for Human Rights DD throughconcrete initiatives. I believe that the next challenge is how
to continue implementing these.

Attempts to Promote Human Rights DD
OMURA: Looking at trends overseas, there has alreadybeen legislation that makes the disclosure of the results of
Human Rights DD, or not only the disclosure but also theimplementation of Human Rights DD itself, mandatory.
Although national discussion has not reached at legislative
measures in Japan, the Ministry of Economy, Trade andIndustry is developing cross-industry guidelines on Human
Rights DD (as of July 2022).
In this context, companies, like your Company, voluntarily
promote and implement Human Rights DD initiatives,
rather than implementing them because they are legislated
or mandated to do so. Thus, I think it is very important toshow excellent advanced examples.
TANIYAMA: I agree. It is not that you follow requests fromoutside, but you do so voluntarily from inside. Then, how tohave it take root in the Company’s culture. That is the main
point. Meanwhile it is necessary to establish a solid system,
and I believe that balancing the two is a new challenge.
OMURA: What do you think about embedding the concept
in the internal culture?
TANIYAMA: Measures to prevent and mitigate humanrights risks have been incorporated into the “Taisei Group
Sustainable Procurement Guidelines,” and we havebeen conducting awareness-raising activities for not only

41 T A I S E I ANNUA L R EPORT 2022

the Group’s executives and employees but also our
suppliers through training and e-learning.
In addition, we continue to conduct activities to ensure
the effectiveness of Human Rights DD through surveys/
interviews and interviews with foreign technical interns toconfirm compliance with the Guidelines.
It is, of course, important to have the clear commitment of
the top management as the background of this. The President
himself has made it clear that management will not be able tosucceed unless the Company respects the human rights of all
people involved in its business and proactively resolves humanrights issues. It is important to ensure that this way of thisthinking takes root in all the executives and employees.
OMURA: What should be considered as a human rights
issue continues to evolve as society changes. Your Company
is updating it on a periodic basis and has delivered a veryclear message that management centered on human rights
be conducted as top management’s commitment. The“Human Rights Policy” presents your fundamental stance to“contribute to the realization of an inclusive society by fulfilling
our corporate responsibilities” as a construction company.
I believe such clarification of the commitment of top
management is also important to get the concept ofhuman rights embedded in the Company.

About the Taisei Group

Aiming to Realize Our Vision

Sustainability Section

Governance Section

Data Section

Towards a Vibrant Future Society
TANIYAMA: The construction business is a business thatis made viable only by receiving orders from clients. As for
Human Rights DD, I think the important point will also be
how our Company’s initiatives are supported by our clients.
OMURA: Human rights are an issue for every company inthe world. The recent trend is that your client companies
will also get asked by investors and financial institutions
whether they are monitoring the human rights situation on
the side of construction companies. Companies that areevaluated by evaluation agencies for overseas investors, inparticular, are requested to address human rights issues
constantly and cannot escape this trend. By promoting
Human Rights DD, human rights initiatives should be
evaluated more positively, and it naturally results inincreased business opportunities for your Company.
Your Company’s “Human Rights Policy” clearly statesthat “We urge our business partners, including clients aswell as subcontractors and suppliers, to support this Policy
and respect human rights.” This is also what is requestedby the “Guiding Principles” and is a stance that global
companies aim for. By enforcing the principle of “respectfor human rights” through mutual leverage, I believe that
we can progress towards the achievement of the SDGs on
a global scale.
TANIYAMA: The idea is that taking a resolute attitude
towards human rights is good for us, and at the sametime, for clients.
OMURA: Yes, I think so. I believe that each company will
gain a competitive advantage in the process of not only
formulating a “human rights policy” and working on Human
Rights DD, but also disclosing how effectively they work.
In that sense, the fact that we had this talk this time, andthe fact that the Annual Report contains featured reports andmore detailed descriptions in the SDGs field is progressive
and wonderful.
TANIYAMA: The Taisei Group sets out a goal of “The EverEvolving CDE3 Company” contributing to the developmentof a resilient society where people can live affluent andcultural lives. I believe that the key to realizing this goal is tohave our Company’s role firmly recognized in society.
We will continue to pursue carbon neutrality and environmental measures, promote diversity and inclusion for further

diversity, enrich the lives of many people in comfortableworkplaces, and expand the happy lives of our clients,
together with the structures we create and provide. I believe
the above attitude is the starting point of our monozukuri(precisely speaking, superb craftsmanship).
OMURA: The construction business is very closely
connected to where people reside and live and what people
do in their lives. This is why your Company has been able tocontinue your corporate activities with people at the center
and with your thoughts on the lives of each individual.
Under the “National Action Plan on Business and Human
Rights” formulated by the Japanese government in 2020,
companies are expected to “formulate human rights
policies,” “implement Human Rights DD,” and “establish amechanism for remedies.” Regarding a mechanism for
remedies, your Company already has a Corporate Ethics
Helpline System that is recognized by your partners. A
system has also been established to listen to the voices ofworkers in the field through monitoring and other means. I
believe that dialogue with local communities has beenpracticed, and I hope that such dialogue will be further
enhanced and disclosed.
Of the many meaningful activities, I think there are only a
few that are visible to outsiders like us. You can lead theindustry by actively disclosing your activities. I would also
like to see your Company develop how a Japanesecompany should be and present a new and vibrant path
for Japanese society as a whole.
TANIYAMA: Thank you for your valuable advice. Thankyou very much for your time today.

Group Sustainable Procurement Guidelines”
p.102 “Taisei
Glossary

For more information, please visit
our website.

“Human Rights Due Diligence”“The CDE3 (cubed) Company”

TA I SE I A N N UA L R E P O R T 2 0 2 2 42

Sustainability Section

Sustainability Management

Sustainability Management▎ Structure of Value 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 Taisei Group’s Fundamental Sustainability Policy is to realize sustainability transformation (SX) byworking 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
for profit, and we make proactive efforts to address them.

Our Structure of Values and Policies

Taisei Group Philosophy

Taisei Spirit
Taisei Group
Philosophy

To Create a Vibrant Environment for
All Members of Society

Active and Transparent Culture /Value Creation / Evolution of Tradition
Key Concepts That All Taisei Group Officers andEmployees Must Adhere to in Order to Pursue
and Realize the Taisei Group Philosophy

Objectives to be Pursued by the Taisei Group(Goals)Taisei Spirit
Materiality

Action Guidelines for Taisei
Personnel and the Taisei Group
as a Whole
Individual Policies

Overall
Principles ofConduct

OverallManagement
Perspective

Individual Policies and Standards on Sustainability● Environmental Policy ● Environmental Targets

Environment

Social● Declaration of Taisei Corporation on Biodiversity Preservation

Fundamental
Policy on
Sustainable
Development● Quality Policy ● Safety and Health Policy● Procurement Policy ● Human Rights Policy● Digital Transformation (DX) Policy● Technology Development Policy● Human Resources Development Policy (Diversity & Inclusion Policy)● Risk Management Policy ● Policy on Business Continuity in Times of Disaster● Fundamental Policy to Enhance Operational Compliance Systems

Governance● 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 Polity● IR Policy ● Tax Policy ● Declaration of Partnership Building

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

Materiality(Important issues to be addressed) ealization of a sustainable and❶Renvironmentally friendly society❷E nsuring quality and improving

technology❸T echnical development for realizing asustainable society❹P romotion of supply chain management❺T horough management of occupational

health and safety❻C ultivation of technical staff andsecuring human resources❼R ealization of an attractive working

environment that is good to work in❽T horough compliance and restructuringof the Group governance system

Our Structure of Values
and Policies

43 T A I S E I ANNUA L R EPORT 2022

Individual Policies

About the Taisei Group

Aiming to Realize Our Vision

Governance Section

Sustainability Section

Data Section▎ Sustainability Management Promotion System
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 overallsustainability, 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” andprovide our clients with the latest environmental
technologies.
To further clarify our stance of pursuing mutual
sustainability in society and in the Group, we haverenamed 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 varietyof perspectives.

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

▎ Sustainability Management Framework
We take a global perspective on sustainability andconduct business activities in accordance withinternational codes of conduct. In conjunction with
the Action Guidelines for Taisei Personnel and theTaisei 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 basedon the Medium-Term Business Plan and materialitythat incorporate the Sustainable Development
Goals (SDGs) as activity goals.

Sustainability Promotion System Diagram
Board
Sustainability Committee
Chairpersonof ofthetheBoard
Chairperson || External
ExternalMembers
Members
Board
Members

President / Executive Vice President, Chief of Civil Engineering
Division / Executive Vice President, Chief of Business Administration
Division / Senior Managing Executive Officer, Chief of Architecture &Engineering Division (Integrated) / Three External Members of theBoard / One External Audit & Supervisory Board Member

Observers

Chief of Sustainability Division (Integrated),
Chief of Sustainability Management Promotion Division

Secretariat

Sustainability Planning Department

Main items to
be discussed

Deliberation and decision on specific measures forsustainability activities

Management Committee
Various Operations Committees related to sustainability

p.67 Governance Section

Chart of Corporate Governance System

Various Committees Related to Sustainability(As of April 2022)

Chairperson

Frequency

External Member of the Board

Twice a year

External experts

Once a year

President

12 times a year

Executive Vice President

Five times a year

President

Four times a year

● Risk Management Committee

Executive Vice President

Once a year

● Central Labor Affairs Committee

Executive Vice President

Twice a year●D igital Transformation (DX)

Executive Officer, Chief ofFour times a year
Corporate Planning Office● Personal Committee*

Executive Vice President

Committee within the Board● Sustainability Committee

Special Committee● Compliance Committee

Business Committees● Technical Committee● Central Safety Commission● Environment Committee

Promotion Committee－* The Personnel Committee was established in April 2022

Sustainability Management

TA I SE I A N N UA L R E P O R T 2 0 2 2 44

Sustainability Section

Sustainability Management▎ Materiality and KPIs 2021– 2023

Materiality(Related ISO 26000)

Scope ofreportTaisei GroupKey performance indicators (KPIs)

Scope

Reduction rate of CO2 emissions per sales*1

1+2

Reduction rate of total CO2 emissions*1

E① Realization of a sustainable andenvironmentally friendly society(Environment)
NonconsolidatedAt
construction
stage:

At building
operation
stage:

Reduction rate of CO2 emissions per sales*2
Reduction rate of total CO2 emissions*2
Reduction rate of design-build estimatedCO2 emissions*2

Customer satisfaction (Civil Engineering)② Ensuring quality and improving technology

Nonconsolidated

Customer satisfaction (Building Construction)(Consumer issues)
Taisei Group③ Technical development for realizing asustainable society

Number of patent applications filed
Nonconsolidated(Environment / Consumer issues / Community)

Number of orders received for net Zero Energy Buildings (ZEBs)④ Promotion of supply chain management

Supplier’s conformity rates with the Taisei Group Sustainable
Procurement Standards(Fair operating practices / Human rights)

S⑤ Thorough management of occupational

Productivity (Net sales/number of employees)

Taisei Group

Number of fatal accidents

health and safety(Labor practices)

Worksite registration rate of Construction Career Up System (CCUS)⑥ Cultivation of technical staff and securing
human resources(Human rights / Labor practices / Consumer

Health management overtime hours
Nonconsolidated

issues)Worksite implementation rate of a five-day work week (closed eightdays in four weeks) (Civil Engineering)Worksite implementation rate of a five-day work week (closed eightdays in four weeks) (Building Construction)⑦ Realization of an attractive working
environment that is good to work in

Number of female managers
Nonconsolidated(Human rights / Labor practices)G⑧ Thorough compliance and restructuring ofRate of taking childcare leave by males
Taisei Group

Number of major information security accidents

Nonconsolidated

Attendance rate at compliance training including anti-corruption

the Group governance system(Organization governance / Fair operating practices)*1 Compared to FY2019 (a base year for emissions targets). *2 Compared to FY1990 (a base year for emissions targets).

45 T A I S E I ANNUA L R EPORT 2022

About the Taisei Group

Aiming to Realize Our Vision

Governance Section

Sustainability Section

Data Section

Contribution to the SDGs
FY2021
TargetFY2023ResultTarget

Page
4

—

3.3%

‒15%

—

‒11.8%‒6%‒36%‒30.1%‒41%‒52%‒52.7%‒46%‒41%‒44.6%

‒43%

100%

97.6%

100%

100%

90.0%

100%

¥71 million¥65 million¥83 million

260 cases

272 cases

280 cases

6 projects/year

8 projects/year

—

—

100%

0 cases

1 case0 cases

100%

100%

100%

5

6

7

8

9

⃝

⃝

⃝

●

11

12

13

14

15

⃝

●

⃝

⃝

⃝

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●
5 projects/year—Monthly target: 50 hours
Persons who exceeded
720 overtime working
hours per year: 22.6%

Monthly target: 50 hours
Persons who exceeded
720 overtime working
hours per year: 0%

—

49.5%

100%

—

26.6%

100%

260 persons

270 persons

330 persons

●

●

●
100%

100%

100%

0 cases

0 cases

0 cases

●

●
100%

100%

10

●

●

16

17

⃝

p.53

●

●

p.60

●

●

p.61

●

p.62

●

●

p.63

p.64

●

●

p.65

●

●

p.66

100%

TA I SE I A N N UA L R E P O R T 2 0 2 2 46

Sustainability Section

Sustainability

Sustainability TOPIC 1

TOPIC

1

Human Rights and Supply Chains—Respect for Human Rights—

We clearly state “Respect for fundamental human rights and diversity” in the Action Guideline for the Taisei Group. 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
have been proceeding with initiatives. We acknowledge that recently the importance of the companies’ initiatives forrespect for human 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 the Group’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.

We Began Human Rights Due Diligence.
The business activities of the construction industry are based on a multi-layered supply chain both in Japan andoverseas, consisting of skilled construction workers of various industries as well as the companies that procure,process, and transport raw materials. For Taisei Corporation, it is a crucial task to respect and care abouthuman rights in the entire supply chain that includes employees concerned, skilled construction workers, andlocal communities.
This time, to identify and assess the negative impact of the Company’s business activities on human rights anddefine important issues that should be addressed on a priority basis, we have introduced human rights due
diligence as stipulated in the UN Guiding Principles on Business and Human Rights. With the advice of external
experts, we have identified human rights risks in the supply chain.
Regarding the identified risks and measures to prevent and mitigate them, Taisei Corporation will report to theBoard after deliberation by the Management Committee and the Sustainability Committee. We will also continue
implementing the measures to avoid and reduce human rights risks in the Group.

Human Rights Due Diligence

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 humanresources is one of the most important investments. For our employees, we are promoting diversity and inclusion,
aiming to create a comfortable working environment and a personnel and salary system that allow them toperform at their full potential in various areas.
In May 2022, we conducted an engagement survey (Motivation Cloud provided by Link and Motivation Inc.) forall employees working at the Company. Under the top-down management approach, we recognize the gap
between the values of the Company and its employees, strive for mutual understanding, and promote the creationof an attractive and rewarding work environment, aiming to realize the TAISEI VISION 2030.

47 T A I S E I ANNUA L R EPORT 2022

About the Taisei Group

Sustainability

TOPIC

Aiming to Realize Our Vision

Governance Section

Sustainability Section

Data Section

2

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
As meeting bodies to deliberate on proposals related toclimate 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 ingeneral are discussed by the Sustainability Committee,
which is a committee of the Board. The formulation ofbasic policies and medium to long-term targets related
to environmental management are deliberated on by theEnvironment Committee, which is an advisory body to
the Management Committee.
Proposals deliberated on and decided by the Board
are communicated by the Management Committee toeach business division and Group company, and arereflected in their management plans and business
operations. Then, the details are incorporated into thespecific action items at a construction site. We will also
request our suppliers to cooperate.

Governance System Related to Climate Change
Board
Prior deliberation and report

Sustainability Committee
Chairperson: External Member of the Board

Prior deliberation / Putting on agenda

Deliberation /Putting on agenda

Management Committee
Chairperson: President
Report / Advice
Direction /Supervision

Environment Committee
Chairperson: President

Each division
Support /Cooperation

Suppliers

Support /Cooperation

Group companies

TA I SE I A N N UA L R E P O R T 2 0 2 2 48

Sustainability Section

Sustainability TOPIC 2

Uncertainty about the future of
the Japanese market

Shortage of workers
Climate change

Price competition intensifies as theconstruction market shrinks.
It may lead to a decline in profitability
and deterioration of financial status.

The shortage of construction workers
due to the shrinking working population
and aging society is directly linked tothe decline in construction capacity.
There is an urgent need to improve
productivity through technologicaldevelopment and business improvement, and to create an attractive
working environment.

Major Risks

Surrounding
the Taisei Group

Intensifying competition fortechnological development

Spread of infectious
diseases

The utilization of digital technology anddata is being accelerated in theconstruction industry as well.
Delays in technological development
may result in declining competitive
advantage.

Infection of officers, employees andskilled construction workers affects
business continuity.
Of concern is the impact of thecancellation or postponement of theclient's construction plan on sales.

Strategies
We recognize various medium- to long-term risks including the major ones above below. 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 acuteabnormal 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.

Major Risks and Opportunities Concerning Climate Change
Classification

Shift

Risk / Opportunity

Description●D ecrease in private construction investment and equipment investment due to theMarket shrinkage and increasein construction cost due to theintroduction of carbon pricing
and tightened CO2 emission
regulations

Risk

Increase in demand for renewal

Opportunity

Increase in demand related toenergy-saving and renewableenergyOpportunity

Increase in averagetemperature during summer

Risk

introduction of carbon pricing and the reinforcement of CO2 emission regulations● Increase in construction costs due to a hike in the prices of building materials and electricity● Increase in costs due to the application of carbon pricing to the CO2 that is

generated by our business activities● Increase in demand for renewal to improve the energy efficiency of existing facilities● Increase in demand related to ZEB and smart cities● Expansion of demand for renewable energy-related works such as offshore wind powerof skilled construction workers and the avoidance of extremely hot hours●A ccelerated worker shortage due to the decline in the number of new workers in

Increase in severity andfrequency of natural disasters
Opportunity

due to damage to construction worksites, etc.

MediumMediumMediumOpportunity

Medium● Increase in procurement costs and process delays due to damage to suppliersHigh● Increase in demand to improve the resilience of equipment and infrastructureHigh● Increase in new construction and relocation works due to growing demand forHigh● Increase in the capital investment for improved resilience in areas with a flood risk

Highagainst intensified disasters

relocation from disaster hazard areas

and demand for relocation from areas with a flood risk

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

49 T A I S E I ANNUA L R EPORT 2022

Low

the construction industry because of the degraded working environment●W ork suspension, process delay, and increase in labor and temporary work costs

Rise in sea level

Medium●D
 ecline in productivity due to an increase in damage to the health (heat stroke, etc.)

Risk
Physical

Impactlevel

About the Taisei Group

Sustainability TOPIC

2

Aiming to Realize Our Vision

Governance Section

Sustainability Section

Data Section

Information Disclosure Based on
the Recommendations by TCFDCountermeasures required for the risks and opportunities identified with scenario analysis are reflected in theMedium-Term Business Plan (2021–2023). They are also incorporated into the business operations of eachdivision. Accordingly, we will reduce the risks associated with climate change and expand opportunities.

Countermeasures for Climate ChangeResponse to the market

shrinkage and construction
cost increase due to theintroduction of carbon pricing
and the tightening of laws andregulations
Response to the increase indemand related to renewal,
energy-saving and renewableenergyResponse to the reduced
productivity of construction
worksites due to abnormal
weather
Response to abnormal
weather, increase in theseverity and frequency ofdisasters and sea level rises● Owning renewable energy power sources for the purpose of covering the power

consumption of the Group● Consideration and introduction of fuel improvement measures (biodiesel fuel/fuel additives)for construction worksites● Enhancement of green procurement such as the development and utilization of carbon-

recycle concrete● Establishment of an organization dedicated to renewal, and expansion of the organizationthat handles work related to wind power generation● Development and commercialization of next-generation high-performance ZEB and thedevelopment of energy support services● Technological development that contributes to the industries that are expected to growthrough a virtuous cycle of the economy and the environment● Reduction of health damage through the nationwide promotion of wellness worksites andthe improvement of working environment during extremely hot hours● Consolidate some of the operations of worksites into specialized organizations such as

digital product centers● Innovation of production processes at worksites through development and deployment of

unmanned construction technology, robot construction technology, etc.

● Advancement of infrastructure development technology for national resilience and theimprovement of the proposing skills● 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 suppliersand conducting regular training

Risk Management

Indicators and Targets

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

In the environmental targets for FY2050 “TAISEIGreen Target 2050,” we set the goal of “virtuallyzero” CO2 emissions from business activities.
Moreover, we set out “Realization of a Sustainable
and Environmentally Friendly Society” as one of themateriality (our important issues), and set KPIs for
FY2023 using the CO2 emission reduction rate as
an index.
We are aiming to reduce CO2 emissions throughthe implementation of priority measures under the
Medium-Term Business Plan (2021-2023).
Going forward, scenario analysis will be carriedout in stages to identify potential risks and formulate
and implement business strategies. We will also
actively promote green projects through theissuance of green bonds.

CO2 emission reduction target for each fiscal year
Scope 1+2 reduction rate of CO2 emissions per sales*1(Taisei Group)

FY2023

FY2030

KPI

−15%

−50%

−6%

−40%

−41%

−64%

At construction stage: Reduction rate of total CO2 emissions* (Non-consolidated)

−46%

−66%

At building operation stage: Reduction rate of design-build estimatedCO2 emissions*2 (Non-consolidated)

−43%

−59%

1

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

At construction stage: Reduction rate of CO2 emissions per sales* (Non-consolidated)
2

FY2050TAISEI Green Target 2050

We will aim for “virtually zero” CO2emissions from business activities.

In addition to our reduction efforts,
we will work on the value chain,and contribute to the realization ofa decarbonized society.

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

TA I SE I A N N UA L R E P O R T 2 0 2 2 50

Sustainability Section

Sustainability

Sustainability TOPIC 3TOPIC

3 Examples of Environmental Solutions

In the Medium-Term Business Plan (2021-2023), “to target the front-runner status in the environmental sector, accelerating our
initiatives toward carbon neutrality,” the Taisei Group identifies sustainability-related key issues. Utilizing various viewpoints
and technical capabilities, we propose solutions and work together with our customers to create a global community filledwith hopes and dreams for the benefit of future generations.

創エネ
省エネ

脱炭素

スマー
ト化

ウエル
ネス

NET ZERO ENERGY BUILDING
Contributing to a Sustainable Society by Promoting theConversion of Existing Buildings into Zero Energy
Buildings (ZEBs) “Green Renewal ZEB”
Taisei Corporation calls the promotion of the conversion of existingbuildings into Zero Energy Buildings “Green Renewal®.” By posing six
key words, we are implementing initiatives to improve the health ofpeople, buildings, and the planet.
Energy conservation: Using the latest sensing technology to wisely
select energy to use
Energy generation: Having solar power generation installed not
only on rooftops but also on windows and walls
Decarbonization:
Adopting building materials that reduce CO2
emissions
Wellness:
Promoting human wellness by actively using
natural light
Smart:
Utilizing data obtained with various sensors toprovide information and control
Security:
Protecting building users from risks ofinfectious diseases and earthquakes
Among these, we named the initiative to introduce technologies thatlead to energy conservation and generation and renew existing buildings
as Zero Energy Buildings (ZEBs) “Green Renewal ZEB.” Currently, toimplement the plan, we are converting the existing buildings owned by
the Group into a ZEB. We modify buildings by introducing the latest
technologies to conserve and generate energy. After renewal, ZEB will
be realized by utilizing operational data. We will continue to contribute to
the popularization of renewal ZEBs and the achievement of a decarbonized society.

Concept of Green Renewal ZEB
Taisei Corporation Kansai Branch
Applying advanced and general-purpose
ZEB technology to meet diverse
customer needs

NET ZERO ENERGY FACTORY

Our Unique Index for Factories’ Zero Energy

Consumption, “ZEF”

Taisei Corporation defined Net Zero Energy Factory (ZEF) as a production
facility aiming to reduce its required annual primary energy balance tozero 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 areas ofthe plant, which had notbeen included in the ZEB
ZEF
assessment. By calling it
Reduction of
100% or more
Nearly“Green ZEF®,” we will(Net zero)
ZEF
promote the promotion of theReduction of
75% or more
ZEF
application of ZEF as well as
Oriented
ZEF
the expansion of decarbonReadyizing activities.
Reduction ofVolume of energy supply

安心

50% or more*Excluding energy consumption
required for production facilities

ZEB for production facilities

0

0.25

0.5

0.6

0.75

1.0

Primary energy consumption rate

Our unique index ZEF

Warehouse

Production area
Offices, etc.

Warehouse

Production area
Offices, etc.

ZEF’s First ProjectH1 Building of Oki Electric Industry Honjo Plant, where our first ZEF
project began, obtained the highest rating on a 5-point scale underthe Building-Housing Energy-efficiency Labeling System (BELS)*1, andbecame the first large-scale production facility in Japan to receive
ZEB certification*2.

Power generation using building exterior, large
storage batteries, AI control, total support
including investigation, planning and operation,
zero energy, zero CO2, and zero stress

Taisei Corporation Yokohama Branch
Utilization of general-purpose ZEB
technology for medium-scale stock
officescustomer needs
External wall/window power generation,
reinforcement of thermal insulation, generalpurpose equipment ZEB, conversion to woodeninterior, biophilic design, and infectious disease
control at offices and training centers

TAISEI U-LEC Co., LTD. Kawagoe Plant
Carbon neutral plan with mega-solar
power facility
Rooftop solar power generation, carbon
recycled concrete, CLT, Conversion to 100%
ZEB for office buildings

51 T A I S E I ANNUA L R EPORT 2022

Oki Electric Industry Honjo Plant H1 Building*1 Building-Housing Energy-efficiency Labeling System (BELS)
A third-party certification system led by the Ministry of Land, Infrastructure,
Transport and Tourism that specializes in the energy-saving performanceof buildings. The BEI (energy saving performance index) is calculated inaccordance with the calculation method determined by the government.
The number of ☆ is determined in five stages according to the value, anda building that has superb energy saving performance among the highest
ranked ☆ 5 is certified as ZEB.
*2 ZEB
A building that reduces primary energy consumption by 50% or more fromthe standard primary energy consumption, excluding the amount of energy
generated, and reduces the amount of primary energy consumption by
100% or more from the standard primary energy consumption by adding
the amount of energy created.

About the Taisei Group

Aiming to Realize Our Vision

Sustainability Section

Governance Section

Data Section

T-e Concrete® / Carbon-Recycling

T-WOOD®

Taisei Corporation’s Wooden Building
Building Made of Wood with CO2 Fixation EffectRecycling CO2 as a Resource

The promotion of the utilization of wood contributes to control of global
warming due to its carbon fixation property, and spaces made of woodare 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 the succession of innovations
working on both traditional and modern buildings. T-WOOD® series is thetechnology that we have developed for wooden buildings. They satisfy
the performance and economic needs of modern architecture and can beused for a wide range of purposes from new construction to renovation.

Taisei Corporation has developed and commercialized the T-eConcrete®
series, environmentally friendly concrete that reduces CO2 emissions byreplacing some or all of its cement with industrial by-products and carbon
recycled products. In addition, we have developed the T-eConcrete® / CarbonRecycling, carbon-recycled concrete that reduces CO2 emissions to anegative level and achieves carbon negative.
T-eConcrete® / Carbon-Recycling uses calcium carbonate, which is
produced by reacting calcium components with CO2 recovered fromfactory exhaust gas, and solidifies calcium carbonate with binding
materials consisting mainly of blast furnace slag, an industrial by-product,
to fix CO2 in concrete. As a result, problems such as corrosion ofreinforcing steel inside concrete and deterioration of strength, which
occurred when CO2 was directly incorporated into concrete, have been
improved. In addition, it has become possible to reduce the CO2 balanceof concrete by incorporating a large amount of CO2.
The Company has developed a number of environmentally conscious
concrete technologies, including the “T-eConcrete® / Zero-Cement
Type,” which received the Japan Society of Civil Engineers’ 2014
Environmental Award (Group I) and the Engineering Society of Japan’s
2021 Engineering Incentive Special Award. T-eConcrete® / CarbonRecycling was created by combining the previous technical research
results and existing technologies.

Taisei Corporation’s facilities

Maibara City Hall

Omiya ward office, Omiya library

Reducing CO2 Emissions
during Construction

Development of Environmentally Friendly Concrete

Practical Application of Environmentally Friendly
Concrete Technology

Compared to reinforced concrete (RC)structures or steel construction, wood
products are easy to manufacture andtransport. Therefore, they are a material
that emits less CO2 during construction.
In addition, since the weight of buildings
is lighter, the burden of the construction offoundation structure and earthwork can be
reduced, thus reducing CO2 emissions.
CO2 emissions can be cut further byreusing wood products.

The Zero-Cement Type of the environmentally friendly concrete
T-eConcrete® series is the first concrete in Japan to be used in the shieldsegment. Since then, it has been applied in various fields. The newly
developed T-eConcrete® / Carbon-Recycling has also begun to be
applied to on-site pavement, stone-like paving blocks and buildings, andthe practical application of the environmentally friendly concrete
T-eConcrete® is expanding.

Collaboration with a Study Group

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 a methodof “nature-type greening” that nurtures forests by having trees competing
each other. As an industrial park that coexists with nature and interacts withthe local community, it has received theEnvironment Minister’s Award at the 49
Environmental Awards.

Ten years after the planting

The T-eConcrete® Research Group (core company: Taisei Corporation)
was established in 2020 aiming to further contribute to the reductionof CO2 emissions. Currently, more than 20 companies, including civilengineering and building material manufacturers, are participating in thegroup. We provide fundamental information such as a rich store of data
and knowhow on materials and construction to the member companies
in charge of product development. Then, each company integrates theminto the manufacturing technology of its own products. In this way, we
are working on the development of various concrete products used forthe interior and exterior of civil engineering structures and buildings thatsatisfy customers’ needs.

Carbon-recycled stone-like paving blocks

TA I SE I A N N UA L R E P O R T 2 0 2 2 52

Sustainability Section

Materiality

1

Sustainability of Taisei Corporation

Realization of a Sustainable and Environmentally
Friendly Society
Basic Policy

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, and are 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 anddrastic measures are required. Under TAISEI Green Target 2050, the Taisei Group has set forth four goals for the realization of a sustainable and environmentally friendly society: a decarbonized society, a recycling oriented society, a nature
co-existing society, and a safety secured society. The Group has set 2030 targets as milestones and is implementing a
range of measures.
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.

inable and Environmenta
of a Susta
lly Friezation
i
ndly
l
a
e
R
d
Soc
e
t
N
a
t
u
n
r
e
e
i
C
r
o
O
E
xistingthecycling
iety
e
R
r
o
S
F
o
S
y
c
t
i
e
e
i
t
a
y
c
o
d
f
S
n
e
e
o
t
z
y
i
b
r
n
S
a
o
e
cu
rCb
sustainable, To create a soci
DLeocwa ociety with To reracleizereacycling society people co-exiesttywwithhere To r Society redeSyunaturesociety isk resou
alize tae change rer
Minimizingofor final disposal
T clima
m
i
A
ion
no
impacts fromte of constructissiontivities ramonnaturale2cof %CO iness a
byproducts
capital
y
bus
l
l
rtua
for vif green Biodiversity-conscio
Aim
Promotion o duction
us
les

0

0

t, re
r sa
procuremen sal rate ofns pe
issio to FY2019
ispo
d
l
a
m
n
fi
e
f
o
CO2 paredwaste+2constructioonr less
ope 1
com
0%
for sc.
3ot%d-50 anfor scope 3

implementation ofproposals andConstruction-32%awherleize a socieste afety y
Ai nsured is

m op
rovid
valuetwenviro ith zeroe
nmrisk ental

Zero eaccidenvironmenn
com ts throu tal
enviro pliance witghnlaws a ment-re hnd reg lated
ulations

Plan:

EMS implementation planof the Head Office andbranches

Action:Management review,
Improvement of activities

TSA
Group-wide activities to reduce environmental impact

TAISEI Sustainable Action
Check:
Performance
evaluation

53 T A I S E I ANNUA L R EPORT 2022

Do:

Technology development anddeployment, Effort related toenvironment protection

About the Taisei Group

Aiming to Realize Our Vision

Sustainability Section

Governance Section

Data Section▎ Environmental 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, is defined as therealization 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-do-check-act (PDCA) cycle ofour environmental management system (EMS), which conforms to the ISO 14001 international standard.

Environmental Management(Corporate activities to realize the Group Philosophy and the Taisei Spirit in terms of the environment)
Environmental Policy(The Company’s basic stance on environmental management)Group Philosophy
To create a vibrantenvironment for all
members of society

Taisei Spirit“Active andTransparent Culture,”“Value Creation” and“Evolution of Tradition”

Realization of a sustainable and environmentally friendly society(1) A decarbonized society (2) A recycling oriented society (3) A nature co-existing society (4) A safety secured society

Environmental Targets

TAISEI Sustainable Action® (TSA)

Specific targets to be achieved under the Environmental Policy(Measures to achieve the Environmental Targets)● TAISEI Green Target 2050

● Annual Environmental Targets● CO2 Zero Action● Green Procurement Guideline● TAISEI VISION 2030

● Promise of Eco-First● TSA Action List

● Green Procurement Standard Guideline● Medium-Term Business Plan

● Declaration of Taisei Corporation● TSA Point System● Guidelines for Conservation of Biodiversity(2021 - 2023)

on Biodiversity Preservation

ISO 14001 compliant environmental management system (EMS)
System to continuously promote improvement of environmental performance, compliance withenvironmental laws and regulations, and achievement of environmental targets through PDCA

▎ Environment Management System (EMS)
We operate an environmental management system (EMS) conforming to the international standard ISO 14001 at our head office andall of our domestic and overseas branches (100% certification rate). The top management of EMS is the Environment Committee, thePresident, 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.

▎ 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 and advice tothe Management Committee.
The Environment 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 with thesubcommittee 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 renewable energy
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.

Cooperation with Supply Chains
The Taisei Group has established the Taisei Group Sustainable Procurement Guidelines* and is working with the entire
supply chain to realize a decarbonized society, a recyclingoriented society, a nature co-existing society, and a safety
secured society.
*See the glossary on p.102 for the Taisei Group Sustainable Procurement
Guidelines.

Supply Chain (Environment)of Supply Chain
p.62 Promotion
Management
Sustainability Section

TA I SE I A N N UA L R E P O R T 2 0 2 2 54

Sustainability Section

Sustainability of Taisei Corporation

Realization of a Sustainable and Environmentally Friendly Society

For Realization of a Decarbonized Society
Basic Policy
As part of its long-term environmental target, TAISEI Green Target 2050, the Taisei Group has set a 2050 target of “virtually zeroCO2 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 Groupenvironmental targets for FY2030 to reduce CO2 emissions per unit of sales by 50% from FY2019 levels in business 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, environmentally friendly society.
To achieve these targets, Scope 1+2 is working with suppliers to reduce the environmental impact by means of TAISEI Sustainable
Action® (TSA). In addition to measures at construction sites such as recommending the use of highly energy-efficient heavymachinery 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 andpromotion of low-carbon building materials and the promotion of new construction ZEBs and green renewal ZEBs.
To realize a decarbonized society, the Taisei Group is working to reduce CO2 emissions throughout the life cycle of buildings, including the planning and design stages, the construction stage, and the operation stage of buildings completed anddelivered to customers.

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

p.48 TCFD
Sustainability Section▎ Policy / Commitment▎ Initiative● Action Guidelines for Taisei: Promoting environmental● TCFD ● SBT ● CDP (Climate Change)

conservation and creation
Overall Principles
of Conduct /● Environmental Policy ● Environmental Targets
Individual Policies● 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 theenvironmental sector, accelerating our initiatives toward carbon neutrality● GX League Basic Concept (Ministry of Economy,▎ Milestone▎ KPIs● 2030 Group Environmental Targets● Scope 1 + 2: CO2 emission reduction rate per sales

Compared to FY2019

Trade and Industry)● United Nations Global Compact “Environment”● Challenge Zero (Japan Business Federation)● Voluntary Environmental Action Plan for theConstruction Industry (Japan Federation ofConstruction Industry)

Group targets (FY2023)-15％ (Compared to FY2019)

Emissions per sales

Total amount ofemissions

-50%

-40%

● Scope 1 + 2: Reduction rate of total CO2 emission

-32%

-20%

Group targets (FY2023)

Scope 1 + 2*1 CO2 Emissions from businessactivities
Scope 3*2 CO2 Emissions from businessactivities-6％ (Compared to FY2019)● At construction stage: Reduction rate of CO2 emission● Scope 1 + 2 CO2 Emission Reduction Target

per salesBAU
BAU ratio*3 -50%

■ Scope 2 total
emissions■ Scope 1 total
emissions

Scope 1+2 total emissions -40%
Emissions per sales -50%

Non-consolidated targets (FY2023)-41％ (Compared to FY1990)● At construction stage: Reduction rate of total CO2 emission

Non-consolidated targets (FY2023)-46％ (Compared to FY1990)● At building operation stage: Reduction rate of design-build estimated CO2 emissions
FY2019results

FY2023targetFY2026target

FY2030targetNon-consolidated targets (FY2023)-43％ (Compared to FY1990)*1 Scope 1 + 2: Direct emissions from fuel combustion, etc., and indirect emissions from the use of electricity, heat, etc.
*2 Scope 3: Indirect emissions other than Scope 1 and 2 (emissions from other companies related to our business activities)*3 BAU ratio: Comparison between the estimated amount of CO2 emissions (BAU) with and without additional reduction measures

Towards the realization of a sustainable society

55 T A I S E I ANNUA L R EPORT 2022

About the Taisei Group

Aiming to Realize Our Vision

Sustainability Section

Governance Section

Data Section▎ Performance
TAISEI Sustainable Action® (TSA), Environmental Impact Reduction Activities Conducted by All Employees of theTaisei 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 our worksites since 2011, we have created the TSA
Action List in which effective technologies and activities for environmental
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.
* See the glossary on p.102 for the "CO2 Zero Action."

Key TSA Focus Items

FY2023targetIntroduction of eco-friendly vehicles at worksites

100%

Introduction of energy-saving temporary offices

70% or more

Adoption of LED lighting

100%Electrification of high-altitude work vehicles and forklifts 90% or more
Implementation of energy-saving operation training forconstruction machinery

100%

Adoption of TSA Point System at worksites

100%

Dissemination and implementation of education

100%

Introduction of T-CARBON Watch

Measures towards Reduction

All worksites● 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 Group is working on the conversion to hybrid and electric heavymachinery and the utilization of alternative fuels. To cut Scope 2 emissions, besides holding renewable energy sources, we are conducting theconversion of branch offices and precast concrete plants into ZEB (See p.51).
● 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 environmentallyfriendly concrete, T-eConcrete®, which significantly reduces CO2 emissions, and wooden construction using wood that stores CO2. Moreover, toreduce CO2 emissions from buildings after delivery, we are working on the advancement and popularization of ZEBs as a leader of ZEBs, andalso working on the Green Renewal ZEB project, which renovates existing buildings to convert them into ZEBs.

System Development to Promote Reduction

T-CARBON Watch CO2 Emissions Data Aggregation System
Camera● T-CARBON Watch (System to Measure and Aggregate Worksite

CO2 Emission Data)

Internal system

We are promoting the development and operation of the T-CARBON
Watch, which efficiently collects, consolidates, and visualizes 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 as fuel purchases.

AI: Image recognition
function

Systeminformation
Construction site

Internal system● T-LCA Simulator CO2

Effectively assessing
the amount of CO2
emissions

We have developed and are using the T-LCA Simulator CO2, a tool forevaluating CO2 emissions throughout the life cycle of buildings by visualizing CO2 emissions and reduction effects through the phases ofprocurement, 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 thatare expected to be put to practical use.
CCS (CO2 collection and storage
technology)

Caprock
rock
Cap
Cap
rock

BoringBoringBoringCO₂
CO₂
CO₂

Carbon-recycle CO2 geothermal
power generation technology
Low
Low
Low
temperaturetemperaturetemperature
CO2 2
CO
CO
2

Utilization of hydrogen

High
High
High
temperaturetemperaturetemperature

CO2 2
CO
CO
2

Supercritical
Supercritical
Supercritical
CO2 2
CO
CO
CO2 2fixation
fixation
2COCO
2 fixation
Geothermalenergy
energyGeothermal

Geothermal energy

HydrogenHydrogenHydrogenHydrogen Hydrogen
Hydrogentank
tank
HydrogenHydrogen(energyderived
derived Hydrogen tank(energy

fromrenewable
renewable(energyderivedfromresources)
fromresources)
renewable
resources)

Hot
Hot
Hot
water
water
water
Fuelcellcell
Fuel
Fuel cell

Unutilizedheat
heatfromfromUnutilized
Unutilizedbuildingsheat frombuildings
buildings

Heatingmedium
mediumtank
tank
HeatingHeating
medium tank

Electricity
Electricity
Electricity

Building
Building
Building

TA I SE I A N N UA L R E P O R T 2 0 2 2 56

Sustainability Section

Sustainability of Taisei Corporation

Realization of a Sustainable and Environmentally Friendly Society

For Realization of a Recycling-Oriented Society
Basic Policy
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 FY2030 target of 3.0% or less for the final disposal rate of construction 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, based on the Taisei Corporation Green Procurement Guidelines*, we are promoting the application of materials,
equipment and methods that reduce the environmental impacts of the design, construction, operation and demolition ofbuildings and structures.

Risks and Opportunities
As the transition to a recycling-oriented society becomes an important issue internationally, there is a requirement for sustainableprocurement through the supply chain, such as resource conservation, the use of recyclable and reusable materials, andmeasures against the pollution of the natural environment caused by waste such as plastics. Inadequate efforts to create arecycling-oriented society may result in damage to the Company’s corporate value. The Taisei Group is committed to the effective
use and recycling of resources at its worksites, including the proper separation and management of construction byproducts andthe development of a recycling system. At the design stage, in accordance with the Taisei Green Procurement Guidelines*, we arepromoting the use of materials and equipment with low environmental impacts, such as materials and equipment that generateless construction waste during construction and demolition, materials and equipment that use a large amount of recycledmaterials, and materials and equipment that are suitable for recycling after demolition. The Taisei Group will contribute to therealization of a recycling-oriented society by reducing construction byproducts and adding new value to promote the efficient andrecyclable use of resources.

▎ Policy / Commitment▎ Initiative● Action Guidelines for Taisei: Promoting environmental conservation● United Nations Global Compact “Environment”

and creation
Overall Principles
of Conduct /● Environmental Policy ● Environmental Targets
Individual Policies● 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● 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)▎ Performance
Promotion of Resource Recycling of Building Materials throughCollection 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 therecycling of construction resources.

Concept of Resource Recycling

ion patrol
llect
Co

®

• T-eConcrete is environmentally friendly concrete that utilizes
industrial by-products, such as blast furnace slag (a by-product ofsteelmaking) and fly ash (a by-product of coal-fired power plants)
as cement substitutes.
• It is used as a construction material for tunnel segments andnatural stone-like building materials (stone-like building materials
used as secondary products of T-razzo zero cement type).
● Recycling of Water Resources• Appropriate management of construction waste water is one of
the key management items at our worksites. At all our worksites,
we check the wastewater standards stipulated by local ordinancesand regulations, and strictly observe them.
• At work sites equipped with storage tanks for rainwater andspring water, and sedimentation ponds, stored water is used forsprinkling to prevent dust, and other efforts are made to recycle
water resources.
* See the glossary on p.102 for the "Taisei Group Green Procurement Guidelines."

57 T A I S E I ANNUA L R EPORT 2022

Final disposal rate

T- eConcrete®

in 2050: “0”Construction sitein Tokyo

Energy generation
at a building

Waste Sorting and Treatment Process

Disaster waste

Sorting and volume reductionof wastedary transportcon
Se• We are working to recycle soil from construction sites within andacross worksites.
● T-eConcrete® That Utilizes Industrial Byproducts

Transshipment location

Various byproducts

struction bypro
f con
duc
go
ts
rtin
So

● Initiatives for the Effective Use of Resources

Processed as raw material
for building materials

Recyclable materials

Non-recyclable materials

Soil

Buried waste

Uses as road mounds and landfills

Final waste disposal siteAbout the Taisei Group

Aiming to Realize Our Vision

Sustainability Section

Governance Section

Data Section

Realization of a Sustainable and Environmentally Friendly Society

For Realization of a Nature Co-Existing Society
Basic Policy
The Taisei Group’s long-term environmental target, TAISEI Green Target 2050, sets a 2050 target of “minimizing the impact onnatural capital.” To achieve these targets, we will use our unique environmental DNA analysis technology and the Concierge
series of biodiversity assessment tools* to make proposals and implement 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 environment andbiodiversity by using the various technologies they possess.

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 environment
throughout the planning, design, construction and post-completion building operation stages. At the planning and design stages,
we respond appropriately to environmental laws and regulations, create added value related to the conservation of the naturalenvironment and biodiversity; at the construction stage, we work in consideration of the natural environment and biodiversity; andat the completion stage, we provide operational and management support to conserve the natural 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 natural environment andpreserve and create biodiversity.

▎ Policy / Commitment▎ Initiative● Action Guidelines for Taisei: Promoting environmental● United Nations Global Compact “Environment”

conservation and creation
Overall Principles● Environmental Policy ● Environmental Targetsof Conduct /Individual Policies● 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● Initiative based on the Declaration of Biodiversity by

Keidanren (Japan Business Federation, Keidanren
Committee on Nature Conservation)● Japan Business Initiative for Biodiversity● 30 by 30 Alliance for Biodiversity (Ministry of theEnvironment) ● TNFD Forum ● CDP (Forest)● Tokyo Greenship Action (Bureau of Environment,
Tokyo Metropolitan Government)▎ Performance
Various technologies and experiences that contribute to
the conservation and creation of nature● Nature connects the remote mountains, the woodlands in villages, cities, and sea
uninterruptedly, and the conservation and generation require comprehensive measuresthat take a bird’s-eye view of the whole situation. Based on its diverse technologies
and extensive experience in the natural environment, the Taisei Group is actively
promoting sound nature conservation and the generation of green infrastructure.

Woodlands in a village

Remote mountains

・Conservation of rare animals and plants

・Naturalization of artificial
plantations
・Conservation of
raptorial birds

・Compensatory biotope plan・Landscape utilizing nature

CitiesSea
・Transplanting technology for
eelgrass and other seaweed
・Coral transplantation andregeneration technology

・Urban forestation
・Plan to build external structurethat can store rainwater・Chemical-free water purification
technology● Natural Environment Conservation

Initiatives for Sustainable Virtuous Cycles in Local
Communities Implemented by the Taisei GroupWe jointly participated in theactivities 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 treeplanting initiative by bearing
part of the cost to reforest thearea where timber has beensourced. We are contributing to forest recycling by working withour customers and local communities to recover forests andrecycle forest resources for the future.
● Technology to Conserve Quality Natural Environment

Environmental DNA

What is Green Infrastructure?
● Green infrastructure is the concept of utilizing the diverse functions of nature for
infrastructure development and land use. It is expected to be effective in a wide
range of areas, from disaster mitigation, health and peace of mind, and biodiversity
conservation to climate change measures.
Heat-island
phenomenon

Biodiversity

Recreation

Green infrastructure
Disaster prevention
and mitigation

Landscape

Water resource
fosteringWith DNA analysis technology derived from organisms containedin water and soil, we conducted a continuous habitat survey ofrare 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 withconventional visual surveys.
* See the glossary on p.102 for the “Concierge” series.

TA I SE I A N N UA L R E P O R T 2 0 2 2 58

Sustainability Section

Sustainability of Taisei Corporation

Realization of a Sustainable and Environmentally Friendly Society

For Realization of a Safety Secured Society
Basic Policy
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 realize the target, we are working to achieve zero environmental
accidents through proper management of construction byproducts and compliance with environment-related 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 and applying
technologies that comply with regulations on soil and groundwater pollution, and promoting construction methods that reducenoise, vibration, dust and other environmental impacts. We will also contribute to the realization of a society in which the safety ofpeople is ensured in terms of both hardware and software by providing technologies to prepare for natural disasters such as
floods and tsunamis. In addition, as water risks such as droughts and water shortages due to economic development and climatechange have become apparent around the world, we are assessing water risks in business activities in water-stressed areas.

▎ Policy / Commitment▎ Initiative● Action Guidelines for Taisei: Promoting environmental● United Nations Global Compact “Environment”

conservation and creation
Overall Principles● Environmental Policy ● Environmental Targetsof Conduct /Individual Policies● 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● Building Byproducts Subcommittee([Nikkenren] Japan Business Federation)● Civil Engineering Byproducts Subcommittee([Nikkenren] Japan Business Federation)● CDP (Water Security)▎ Performance

Key solutions to environmental risks
Revive contaminated soil
and groundwater

Protecting the environment
around construction sites

1 Chemical decomposition

5 Tecolep-Light® System

method2 Flushing Biosparging®
3 Multi-barrier® technique
4 T-CIM®*/ SoilReme

6 TSounds®-Ambience
7 Chitoreat®

Noise Dust

Protecting people
from disasters
8 T-FIood® Analyzer
9 T-Tsunami Viewer ®
10 T-Zone Saver ®
11 T-LED DUV Light ®

Construction
site

Drainage

Plant facilities, etc.

River

Sea
Vibration

Please see the Environmental
concept book, “TAISEI Green
Target 2050” for the details of thetechnology from 1 to 11.

● Risk Measures at Worksites

The Safety Administration & Environmental
Departments of Head Office and branch offices
conduct internal audits to check the observance ofthe environment law at worksites. As for the findings,
we establish corrective and preventative measuresfor continuous improvement.
* See the glossary on p.102 for the “T-CIM®.”Guidelines.

59 T A I S E I ANNUA L R EPORT 2022

Type

Action (Example)

Noise

Conducted communication with neighbors in response to complaints aboutnighttime concrete-related work.

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
pollution

Conducted communication with neighbors in response to complaints aboutnighttime concrete-related work.

About the Taisei Group

Materiality

2

Aiming to Realize Our Vision

Sustainability Section

Governance Section

Data Section

Ensuring Quality and Improving Technology
Basic Policy

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 to efficiently 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 increasein natural disasters, and the risk of a decline in quality control capabilities due to the normalization of intense heat, etc., thedevelopment of technologies that contribute to the productivity improvement of construction worksites, triggered by the use ofrobots and digital technologies, will enhance the competitive advantage of the Taisei Group.

▎ Policy / Commitment▎ Initiative● Action Guidelines for Taisei: Pursuing customer● ISO9001

satisfaction, ensuring and improving safety and quality● Quality Policy● Medium-Term Business Plan (2021–2023): Realize

Overall Principles
of Conduct /Individual Policies

changes in production systems and work styles through DX● Productivity Improvement Promotion Headquarters([Nikkenren] Japan Federation of Construction
Industry)● International Committee ([Nikkenren] Japan
Federation of Construction Industry)▎ Performance▎ KPIs● In the Building Construction Division, each branch conducts a questionnaire survey● Customer satisfaction rate

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 FY2021 was 90.0%.

100%

Non-consolidated target (FY2023)

● For low scoring items, we analyze their causes, establish countermeasures, andreflect them in post-construction review meetings. In this way, we aim for further
improvement and the establishment of good relationships with customers.
● 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 FY2021 was 97.6%.

Ensuring quality and improving technology● 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.

▎ Performance● As an index to measure the results of technological improvement, we visualize

performance with productivity per person (sales/number of employees) to raise eachmember's awareness on productivity. In this way, we are working together as one
group to improve productivity.

▎ KPIs● Productivity (Net sales/number of staff)

Non-consolidated target (FY2023)¥83 million● Productivity in FY2021 was ¥65 million, down from the previous year (¥67 million in theprevious fiscal year). Due to COVID-19, which started expanding in 2020 all over theworld, working style innovation including telework and online meetings accelerated.
Meanwhile, there were discussions regarding the suspension of construction work withcustomers and the postponement of onsite tours, the relationship with our customers
and people who work at construction sites was questioned during the year.

Ensuring quality and improving technology

TA I SE I A N N UA L R E P O R T 2 0 2 2 60

Sustainability Section

Materiality

3

Sustainability of Taisei Corporation

Technical Development for Realizing a
Sustainable Society
Basic Policy

The Taisei Group selects R&D themes with a view to contributing to the achievement of the SDGs. Under the supervision of theTechnology Committee chaired by the President, the Group promotes technological development with a focus on technologies
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, the aging
population with a low birth rate in Japan, global population growth and widening inequality, and the outbreak of pandemics. And
also, social issues, including the environment, and human rights, are mounting. For this reason, technological development inareas where markets have yet to become apparent may lead to resolving these issues. Resolving social issues through thecreation of innovation that goes beyond conventional ideas will lead to the creation of new value for the Taisei Group.

▎ Policy / Commitment▎ Initiative● Action Guidelines for Taisei: Striving to create value,● The Japan Intellectual Property Association

fulfilling social responsibilities● Policy on Intellectual Property● Policy on Technological Development

Overall Principles
of Conduct /Individual Policies● Medium-Term Business Plan (2021–2023): Promote technological development tosolve environmental and social issues through the use of open innovation● Construction Technology Development Committee([Nikkenren] Japan Federation of Construction
Industry)● Engineering Work Operation Meeting([Nikkenren] Japan Federation of Construction
Industry)▎ Performance▎ KPIs● To contribute to the development of industry, we are promoting management that

● Number of patent applications

emphasizes intellectual property. We are implementing strategic management andutilization of intellectual property in general, including copyrights and construction
and business knowhow in addition to patent rights.

Non-consolidated target (FY2023)

280 cases● By actively developing and utilizing rights based on the intellectual property strategy,

the Company has achieved a patent assessment rate of 88.4%, which is higher thanthat 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 new technologies, technical support for workplaces, andthe utilization of intellectual property through the tripartite integration of our businessstrategy, research and development strategy, and intellectual property strategy.

▎ Performance● Improving ZEB performance is one of the priority issues in the Medium-Term

Technical development for realizing
a sustainable society▎ KPIs● Number of orders received for net

Zero Energy Buildings (ZEBs)
Non-consolidated target (FY2023)

8 projects

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 understandour decarbonization efforts such as the utilization of natural energy. As a result, we
had six orders to convert a building into a ZEB in FY2021.

Technical development for realizing
a sustainable society

61 T A I S E I ANNUA L R EPORT 2022

About the Taisei Group

Materiality

4

Aiming to Realize Our Vision

Sustainability Section

Governance Section

Data Section

Promotion of Supply Chain Management
Basic Policy

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 for sustainableprocurement 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 more thoroughassessments 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 chief ofbranch offices for business partners, e-learning training on human rights, environmental issues and other social issues, as wellas 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 their owngroup but also across the entire supply chain, including subcontractors and suppliers. While there is a risk that our reputation may
deteriorate due to the emergence of environmental and human rights risks, promoting sustainable procurement by securinghigh-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▎ Initiative● Action Guidelines for Taisei: Promoting partnerships with

● United Nations Global Compact, “Human

subcontractors and suppliers, ensuring fair business transactions● Procurement Policy ● Human Rights Policy● Taisei Group Sustainable Procurement Guidelines

Overall Principles
of Conduct /Individual Policies● Taisei Group Green Procurement Guideline● Medium-Term Business Plan (2021–2023): To promote the supply chain management

aimed at solving environmental and social issues

Rights,” “Labor,” “Environment,” and“Anti-Corruption”● ISO26000● EcoVadis—SILVER● HRDD Sub-Committee (GCNJ)● Supply Chain Sub-Committee (GCNJ)▎ Performance▎ KPIs● The Taisei Group participates in the Human Rights Due Diligence (HRDD)● Supplier’s conformity rates with the Taisei

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. The Company was awarded“SILVER” in the 2020 evaluation.

Group Sustainable Procurement Standards
Non-consolidated target (FY2023)

100%● 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 technical interns.		
In 2021, we identified human rights risks in the supply chain and reported theintroduction of human rights due diligence, including measures to prevent and mitigate risks and monitoring surveys to confirm their effectiveness, to the Board 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 and mitigate humanrights risks in the Group.
● In FY2022, we will expand the scope of monitoring surveys to include suppliers of theGroup companies. With our suppliers, we are working to reduce environmental
burden, prevent and mitigate human rights violations such as child labor, and manage
compliance risks, with the aim of achieving sustainable growth throughout the entire
Taisei Group supply chain.

Promotion of supply chain management

Rights andp.47 Human
Supply Chain
Sustainability Section

TA I SE I A N N UA L R E P O R T 2 0 2 2 62

Sustainability Section

Materiality

5

Sustainability of Taisei Corporation

Thorough Management of Occupational Healthand Safety
Basic Policy

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 health andsafety managers, employees and the labor union, meets at each branch office, and regularly holds consultations with the labor
union. In close cooperation with the Taisei Corporation Safety, Health, and Environment Cooperation Association, which isorganized by partner companies throughout Japan, we hold the Thoroughgoing Safety Convention and Safety Promotion
Convention to prevent accidents and injuries.
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 birthrate in Japan, the establishment of a safety and health system is becoming increasingly important. In addition, while the rise innatural disasters due to climate change and the normalization of extreme heat may lead to the risk of industrial accidents, thedevelopment 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▎ Initiative● Action Guidelines for Taisei: Securing a pleasant working● United Nations Global Compact, “Humanenvironment, promoting partnerships with subcontractors
and suppliers● Safety and Health Policy

Overall Principles
of Conduct /Individual Policies● Medium-Term Business Plan (2021–2023): To achieve zero fatal accidents and zero

Rights” and “Labor”● ISO45001● Safety Measures Subcommittee ([Nikkenren]

Japan Federation of Construction Industry)● Labor Committee ([Nikkenren] Japan

serious accidents

Federation of Construction Industry)▎ Performance▎ KPIs● Between January and December 2021, there were 45 accidents that required time off● Number of fatal accidents

from work (35 last year), resulting in an 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.

Non-consolidated target (FY2023)

0 cases● An analysis of the accidents in 2021 reveals that “falls” are the most common type ofdisaster, 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 practicethorough 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.
(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

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.
* See the glossary on p.102 for the “TAISEI OHSMS.”

63 T A I S E I ANNUA L R EPORT 2022

Thorough management ofoccupational health and safety

About the Taisei Group

Materiality

6

Aiming to Realize Our Vision

Governance Section

Sustainability Section

Data Section

Cultivation of Technical Staff and Securing of
Human Resources
Basic Policy

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 tostrengthen industry-wide efforts to reduce overtime work. As a member company of Nikkenren, we are making 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 of age orolder, making it an industry with many elderly people. Accordingly, it is essential to improve the training and treatment of the next
generation of skilled workers. In addition, the construction industry’s working hours are approximately 320 hours 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▎ Initiative● Action Guidelines for Taisei: Promoting partnerships● United Nations Global Compact “Labor”

with subcontractors and suppliers, securing apleasant working environment

Overall Principles
of Conduct /Individual Policies●Medium-Term Business Plan (2021–2023): To enhance● Overtime Work Reduction Guideline ([Nikkenren]

Japan Federation of Construction Industry)● Plan to Realize a Five-day Working Week ([Nikkenren]

support for Soyukai member companies

Japan Federation of Construction Industry)● Declaration of Partnership Building▎ Milestone and▎ Milestone and▎ Milestone and● In June 2021, we formulated the CCUS

● We have formulated Roadmap to● The number of employees who took

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, theregistration rate of business operators, theregistration rate of skilled workers, and theemployment history accumulation rate, by
the end of FY2023. We also set yearly goals
to reach these targets.
As of March 2022, the registration rateof business operators was 90%, theregistration rate of skilled workers was
81%, and the employment history accumulation rate was 79%.

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

“regular leave and compensatory leave”
for 104 days a year (equivalent to 4 weeks
and 8 days off) increased to 96.8% of thetotal (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 areworking to reform the way we work.
● All employees will continue to discuss,select, and implement specific actions
to reduce working hours in accordancewith the situation in their respective
workplaces. We will also arrange theactivities that have been effective in
reducing working hours to be spreadhorizontally across the entire company
and established as ongoing activities.

▎ KPIs▎ KPIs▎ KPIs● Worksite registration rate of CCUS

● Health management overtime hours● Worksite implementation rate of a five-day

PerformanceNon-consolidated target (FY2023)

Performance

100%

Cultivation of technical staff andsecuring of human resources

Non-consolidated target (FY2023)

Monthly target of 50 hours
Over 720 hours a year: 0%

Cultivation of technical staff andsecuring of human resources

Performancework week (closed eight days in four weeks)

Non-consolidated target (FY2023)

100%

Cultivation of technical staff andsecuring of human resources* See the glossary on p.102 for the “Construction Career Up System (CCUS)” and the “Health Management Overtime.”

TA I SE I A N N UA L R E P O R T 2 0 2 2 64

Sustainability Section

Materiality

7

Sustainability of Taisei Corporation

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

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 to understand the state of employee engagement and to efficiently and continuously implement measures to improve organizational
issues, in May 2022 Taisei Corporation started an engagement survey (a motivation cloud provided by Link and MotivationInc.), replacing the previous employee satisfaction survey. Based on the top-down approach of the management, we willrecognize 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 FY2022, 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 and inclusiveness,
and work to improve the overall treatment of our employees to enhance their ease of work and job satisfaction.

Risks and Opportunities
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 employees withdiverse 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 businessgrowth.

▎ Policy / Commitment▎ Initiative● United Nations Global Compact “Human Rights”● Action Guidelines for Taisei: Cultivating an open corporate

culture, respect for fundamental human rights and diversity● Human Resources Utilization Policy (Diversity &Inclusion Policy)

Overall Principles
of Conduct /Individual Policies

and “Labor”● The Valuable 500● My Declaration of Human Rights● “Male Leaders Coalition for Empowerment of Women”

by the Gender Equality Bureau, Cabinet Office● Human Rights Policy● Action Plan for the Act on the Promotion of Female● Medium-Term Business Plan (2021–2023): To promote the measures that

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)emphasize an attractive working environment, as well as diversity and inclusion▎ Milestone and Performance▎ KPIs● The number of female managers● Number of female managers

increased approximately 7 times
from 39 in FY2015 to 270 in
FY2021.

● The number of female engineers

in FY2021 was 767 (738 in theprevious fiscal year). The numberof female employees who workat worksites has increased
significantly from 135 in FY2014
to 202 in FY2021.

●2030 Goals for Women’s Participation andAdvancement

Non-consolidated target (FY2023)

2024 target

2030 target

Ratio of newly hired
female engineers

20%

25%

Ratio of newly hired
female employees

25%

30%

Ratio of female
engineers—15%

330 persons

Realization of an attractive working
environment that is good to work in▎ Performance▎ KPIs● At the Diversity Management Training Program, which is aimed at leaders who have

● Rate of taking childcare leave by males

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 haveparticipated in the program.

Non-consolidated target (FY2023)

100%● Since FY2019, the percentage of male employees taking childcare leave has reached100% 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 balancing of work, childcare andnursing care, such as nursing care consultation meetings and work-life balance seminars to attend with a partner, in addition to disseminating various systems such as thechildcare leave system and short-time work hour system for child care.

65 T A I S E I ANNUA L R EPORT 2022

Realization of an attractive working
environment that is good to work inAbout the Taisei Group

Materiality

8

Aiming to Realize Our Vision

Governance Section

Sustainability Section

Data Section

Thorough Compliance /Restructuring of the Group Governance System
Basic Policy

The Taisei Group regards the implementation of compliance and risk management as one of the most important issues for theGroup management, and the Governance System Review Committee has established a group governance system and isthoroughly 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 are reviewing 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 businessenvironment changes rapidly and becomes more complex, it is becoming increasingly important for the Group to strengtheninternal controls as it seeks to expand its business domain.

▎ Policy / Commitment▎ Initiative● Action Guidelines for Taisei: Compliance with laws and● United Nations Global Compact

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 byrebuilding Group governance systems“Anti-Corruption”

Overall Principles
of Conduct /Individual Policies● Nippon CSIRT Association● Cyber Risk Intelligence Center—Cross

Sectors Forum (CRIC CSF)
● Information Security Subcommittee([Nikkenren] Japan Federation ofConstruction Industry)▎ Performance▎ KPIs● In FY2021, we conducted compliance education for the● Attendance rate at compliance training including anti-corruption

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%

Non-consolidated target (FY2023)● 100% of employees participated in e-learning compliancetraining. Compliance training has been regularly proved. To
improve awareness, we will continue to educate employees onimportant topics.
Thorough compliance and restructuring of the Group
governance system▎ Performance▎ KPIs● The number of serious security incidents involving electronic● Number of serious information security incidents

information in FY2021 was 0 (1 in the previous fiscal year).

The Taisei Group target (FY2023)

0 cases● 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.
Thorough compliance and restructuring of the Group
governance system

Risk Management
p.74 Compliance/
Governance Section

TA I SE I A N N UA L R E P O R T 2 0 2 2 66

Governance Section

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

Corporate Governance

Established Fundamental Corporate Governance Policy
Strengthening the Board’s management decisions and supervisory function
Introduced a System of
Executive Officers

Introduced Independent
External Members of the Board●

Established Fundamental Corporate Governance
Policy● 

Number of Membersof the Board: from 49 to 12

1999

●

Members of the Board: 12

Number of Members of theBoard: 12 (Including 2 External(Including 4 External Members of the Board)

Members of the Board)(Including 4 External Audit & Supervisory Board Members)

2003

Audit & Supervisory Board Members: 6

2015

2022

Chart of Corporate Governance System（As of July 1, 2022)❶ Shareholders / General Meeting of Shareholders
Appointment/Dismissal❻ Accounting Auditor

Appointment/Dismissal❸ Committees within the Board❹ Audit & Supervisory
Board Members/
Audit & Supervisory Board

Cooperation

Audit

6 Audit & Supervisory Board Members(including 4 External Audit &Supervisory Board Members)

Audit & Supervisory Board
Members’ Department

Appointment/Dismissal❷ Members of the Board/
Board
12 Member of the Board(including 4 External
Members of the Board)

Appointment/
Dismissal/Supervision

Cooperation❽ Executive Officers❼ Management Committee● Governance System Review

Prior
Consultation
and Report

Report/Recommendation

President andChief Executive Officer
Cooperation

Audit❺ AuditingInternal
Department

Audit
Internal Audit

Group Companies

Support/Guidance/
Cooperation

67 T A I S E I ANNUA L R EPORT 2022

Internal Audit

Report/Recommendation
Direction/Supervision

Operating Divisions

Committee● Executive Personnel Committee● Remuneration Committee● Sustainability Committee, etc.

❾ Operations Committees● Environment Committee● Risk Management Committee, etc.

Special Committee● Compliance CommitteeAbout the Taisei Group

Sustainability Section

Aiming to Achieve Our Vision

Governance Section

Data Section▍ Overview of Corporate Governance System❶ Shareholders / General Meeting of Shareholders
The Company shall endeavor to dispatch the convocation
notice of its General Meeting of Shareholders* at least three
weeks prior to the scheduled date of such General Meeting of
Shareholders in order to provide its shareholders time tosufficiently consider the exercise of their voting rights.
In addition, the Company shall announce the information
through its official website about one week prior to dispatchingeach notice and use a voting right exercise service by scanning
a QR code for smartphones. We also participate in an electronic voting platform for institutional investors.
* Held on June 28, 2022 for FY2021❷ Members of the Board / Board (Convened 14 times in FY2021)
To facilitate the growth of the Company in a sustainable
manner and improve its corporate value in the medium tolong term, the Board appropriately fulfills its roles and responsibilities mainly in (1) indicating the major direction of its
corporate strategy, etc., (2) creating an environment that
supports appropriate risk-taking by senior management, and(3) conducting highly effective supervision of managementand directors from an independent and objective standpoint.
The Board is composed of 12 Members of the Board(eight Internal Members of the Board and four External
Members of the Board). Nominations of candidates for
Members of the Board are determined by the Board after
deliberation by the Executive Personnel Committee established within the Board.
As of July 1, 2022, one-third of the Members of the Board
were Independent External Members of the Board.
The External Members of the Board (three males and one
female), who have objective viewpoints based on theirexperience and insight, bring diversity to the deliberations of
the Board while contributing to the strengthening of thesupervision of management.

❸ Committees within the Board
For the purpose of invigorating deliberations by the Board,
the Company has established the Governance System
Review Committee, the Executive Personnel Committee,
the Remuneration Committee, and the Sustainability
Committee within the Board. The major members of eachcommittee are Independent External Members of theBoard to clarify independence and objectivity.

❹ Audit & Supervisory Board Members/
Audit & Supervisory Board (Convened 15 times in FY2021)
In accordance with the audit policy and audit plan establishedby the Audit & Supervisory Board, Audit & Supervisory Board
Members audit the execution of duties by the Members of theBoard independently from the Board by attending the Boardand other important meetings, listening to reports from theMembers of the Board,
Board, inspecting important documents,
visiting business offices, etc. Four of the six Audit & Supervisory Board Members are independent external members withspecialized knowledge, ensuring a neutral and objective
monitoring system.
In principle, the Audit & Supervisory Board meets once a monthor as otherwise necessary, and receives reports from each Audit &Supervisory Board Members on the status and results of audits. In
addition to statutory matters, the Audit & Supervisory Board
discusses and resolves matters related to the execution of duties
by the Audit & Supervisory Board Members, and receives reports
on audit plans and results from the Auditing Department and theaccounting auditor as needed.
To assist Audit & Supervisory Board Members in the executionof their duties, the Company has established the Audit & Supervisory Board Member’s Department, which is a dedicated organization independent from the Members of the Board and supports
the appropriate collection of information by Audit & Supervisory
Board Members.

❺ Auditing Department
Based on the annual auditing plan, the Auditing Department
conducts internal audits of administrative and management
systems as well as the legality and rationality of the management of corporate affairs at all in-house departments andGroup companies.

❻ Accounting Auditor
The Accounting Auditors submit reports on the audit plan and theaudit results to the Audit & Supervisory Board, the Accounting Department and other internal control departments as needed.
To ensure the external accounting auditors conduct fair
and appropriate audits, the management of the Company,
Audit & Supervisory Board Members, and the Auditing
Department shall have meetings on a regular and as needed basis, and exchange their opinions with the external
accounting auditors.

❸ Committees within the Board (As of July 1, 2022)
Name

Authority

Governance System
Review Committee

Consideration of the development andoperation of governance systems

Executive Personnel
Committee
Remuneration
Committee
Sustainability
Committee

Chairperson
Consideration of personnel of Membersof the Board and Executive Officers,
Chairperson
etc.
Consideration of remuneration for
Members of the Board andChairperson
Executive Officers
Consideration of strengthening thesustainability management of the entire
Chairperson
Group, including the Company

Members

Explanatory
note

Member of the Board(External Member)
Audit & Supervisory
Board Member(External Member)
Member of the Board(Internal Member)
Audit & Supervisory
Board Member(Full-Time)TA I SE I A N N UA L R E P O R T 2 0 2 2 68

Governance Section

Corporate Governance❼ Management Committee❾ Operations Committees

The Management Committee has been established as adecision-making organ for business execution. The authority
to make decisions on business execution delegated to theManagement Committee is set forth in the Regulations ofManagement Committee.

The Company has established operations committees such as
the Environment Committee and the Risk Management
Committee to deliberate on matters related to the consultationof the management meeting and the President.

❽ Executive Officers❿ Special Committee

For the purpose of enabling agile business execution, theCompany has adopted the executive officer system.

To reinforce the promotion of compliance, the Company has
set up the Compliance Committee chaired by an external
expert as a Special Committee that responds to consultations
with the President. (see p.74)▍ Skill Matrix⃝ Skills Required for Members of the Board and Audit & Supervisory Board Members to realize the vision of the TaiseiGroup in ten years
Audit & Supervisory Board Members

Members of the Board

Finance and Accounting●

Global Experience●

Sustainability●●

Sales / Marketing●Technologies

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●
●

●

●
●

●

Masamitsu
MIURA

●

●

Keiko
OHARA

●

SeishiTASHIRO

Yoshihiro
TERAMOTO●

Yasuhiro
SATO

Atsushi
YAMAMOTO●

Akihiko
NOMA

Hiroshi
KIMURA●

Takashi
HAYASHINorihiko
YAGUCHI●FumiyaKOKUBU

Shigeyoshi
TANAKA●NorioOTSUKA

Shigeyuki
SAKURAI●

External Members

Takao
MURAKAMI

Yoshiro
AIKAWA●

Legal Affairs andRisk Management

AtsukoNISHIMURA

Takashi
YAMAUCHSpecialization and experience requiredfor Members of the Board and Audit &Supervisory Board Members

Business Management

External Members

●

●

●

●

●

●

●

●

●

●
●

●

●

●

●

●

Note: The above matrix indicates skills particularly expected for Members of the Board and Audit & Supervisory Board Members and does not list all skills that Members of theBoard and Audit & Supervisory Board Members currently have.

⃝ Concepts behind the above “Specialization and Experience”

Skills for management in general
Skills for theCompany’s
business

Business Management

Persons who have served as president or chairman at the Company or other companies or those who haveconsiderable knowledge of the Company’s or other companies’ business and have the necessary
knowledge and experience to formulate management strategy.

Legal Affairs andRisk Management

Persons who have worked for a division in charge of risk management at the Company or other companies
and are considered to have knowledge of and experience in legal affairs and risk management, or otherwise
those who are licensed as a lawyer, or those who have worked for administrative agencies and possess
profound knowledge of laws.

Finance and Accounting

Persons who have worked for a finance and accounting division at the Company, other companies, or
administrative agencies, etc. and are considered to possess knowledge of and experience in finance andaccounting, those who have profound knowledge as the manager of a financial institution, or those who arelicensed as a certified public accountant or licensed tax accountant.

Global Experience

Persons who have experience in international business at the Company or other companies and are considered
to possess knowledge of and experience in global management, or those who have worked for administrative
agencies and possess extensive knowledge of the international situation.

Sustainability

Persons who are considered to have specialized knowledge of and experience in renewable energy, theenvironment, human resource development, diversity, social contribution, corporate governance, etc.

Sales / Marketing

Persons who are considered to have knowledge of and experience in marketing and sales for the Company’sbusiness.

Technologies

Persons who have worked for technology-related divisions at the Company and possess knowledge of andexperience in technology related to the Company’s business.

69 T A I S E I ANNUA L R EPORT 2022

About the Taisei Group

Aiming to Achieve Our Vision

Sustainability Section

Governance Section

Data Section▍Analysis and Evaluation of the Overall Effectiveness of the Board
Taisei Corporation analyzes and evaluates effectiveness of the Board and discloses the results annually.

Ⅰ. FY2021 initiatives based on the FY2020 evaluation

In order to strengthen supervisory functions andinvigorate the deliberations at the Board, and toaccelerate decision-making on business execution, theCompany reviewed its governance system in March 2021,
that includes a review of agenda items to be discussed
by the Board and further delegation of its authority to
executives accordingly.
During the FY2021, the following approaches weremade towards the tasks derived from the evaluation ofeffectiveness conducted in the FY2020 considering such
review:a)	Implementing follow-up on the Medium-Term Business
Plan and discussing the important matters for theenhancement of corporate value
The Board and the Management Committee discussed
important matters such as the capital policy andpersonnel policy in addition to the progress of theMedium-Term Business Plan and measures for its
accomplishment.

ｂ）
	Securing time for deliberation by narrowing down
the number of agenda items, and making briefings in a
concise manner, etc.
Based on the analysis of the agenda items, the Board
secured enough time for the deliberation by narrowing
down the number of agenda items, and by reviewing
matters to be reported and making briefings in a concise
manner.
ｃ） 	S haring awareness between External Membersof the Board and Internal Members of the Board
The number of meeting to exchange opinions between
External Members of the Board and Internal Members of theBoard was increased to share awareness at a deeper level*.
* Audit & Supervisory Board Members and Executive 		
Officers also joined some of the meetings.
ｄ）Discussing specific measures to strengthen theeffectiveness of group governance
The Management Committee, the Governance System
Review Committee, and the Board deliberated multiple
times regarding the specific measures to activate the Group
companies, and we have begun to take such measures(discussions about other measures are ongoing.)ｅ）Reviewing the structure and functions of thecommittees within the Board
Independency, objectivity and transparency of themembers of the Corporate Governance System Review
Committee, Executive Personnel Committee, theRenumeration Committee and the Sustainability
Committee were sought to be improved by adding
External Audit & Supervisory Board Members to the said
Committees within the Board.
ｆ ）Improving even better environment by conducting
online conference, etc.
From the viewpoint of the Business Continuity Plan(“BCP”), the online system was used for meetings of theBoard and committees within the Board as needed.

Ⅱ. Overview of the FY2021 evaluation

The method used to evaluate effectiveness in FY2021 andthe results of the evaluation are as outlined below.
(1) Evaluation method and process⃝The secretariat prepared a self-evaluation questionnaire(evaluation sheet for the Board) and obtained approval
from the Board, and all Members of Board and Audit &Supervisory Board conducted self-evaluations.
⃝The evaluation items in the questionnaire are as listed
below. Items 1–5 consisted of five-grade assessments andfree descriptions, and Items 6 comprised free descriptions.
Evaluation Items
1. Self-evaluation as a member of the Board
2. Structure and operation of the Board
3. Effectiveness of the Board
4. Support system
5. Deliberation and monitoring regarding the Medium- to
Long-Term Vision and the Medium-Term Business Plan
6. General evaluation of the Board⃝The External Members of the Board conducted an overall
assessment towards the results of the self-evaluations
collated by the secretariat.
⃝At the same time, a lawyer prepared a third-party’s
opinion towards the results of the self-evaluations.
⃝Then the Board deliberated on the effectiveness of
FY2020 based on the overall assessment and the thirdparty’s opinion.
(2) Overview of the evaluation results⃝There were many improvements on the operation of theBoard through providing and sharing the information
more elaborately to External Members of the Board,
actively raising issues, and delivering advice andopinions by External Members of the Board based on
his/her experience and knowledge. As a whole, it wasevaluated that the Board improved its supervising
function.
In order to further enhance the effectiveness of theBoard, the Board will continuously work on the followings:ａ）
To consider suitable corporate governance systems
including the size and the composition of the Board fromthe medium to long term perspective.
b）
To further delegate the Board’s authorities to executives
to the extent it is appropriate, and to make deeper
deliberation on the important business issues.
c）	To enhance effectiveness of the deliberations at theCommittees within the Boardd）	To consider specific measures to strengthen effectivenessof the Group governanceTA I SE I A N N UA L R E P O R T 2 0 2 2 70

Governance Section

Corporate Governance▍Ensuring the Credibility of Financial Reporting▍Promotion of Internal Controls

Internal controls on financial reporting based on the Financial
Instruments and Exchange Act are recognized as one of themost important issues for a corporation. We have set up theinternal systems including daily monitoring to ensure thecredibility of the financial reporting disclosed to the public.
The effectiveness of the system is evaluated by the Auditing
Department and audited by KPMG AZSA LLC. The results aredisclosed in the Internal Control Report and in the Audit
Report of Internal Controls. We will fulfill our social
responsibility as a corporation by continuing to ensure theeffectiveness of these internal controls.
In order to continue to operate the internal control systems
relating to financial reporting in a sound manner, we are also
publishing messages from the President, implementing
e-learning, and other campaigns to raise awareness among
executives and employees.

At Taisei Corporation, the Board established the Fundamental
Policy to Enhance Operational Compliance Systems in May
2006 (revised in July 2020) to ensure the systems for conducting operations in an appropriate and efficient manner as
a Group and the reliability of financial reporting. Throughthese systems, we deliver enhanced compliance and risk
management. The Company implements various measures,
including training relating to legal compliance with the Antimonopoly Act with the participation of outside lawyers,
mainly for executives and employees in the sales division.

▍Support System for External Members of
the Board and External Audit & Supervisory
Board Members(1) Our policy on cross-shareholdings
We maintain cross-shareholdings to establish andstrengthen long-term, stable relationships of mutual
cooperation with important business partners and improve
our competitiveness and profitability.
We have a policy to timely and appropriately sell crossholding shares which, as the result of verification by the
Board, are considered not to be consistent with our policy
on cross shareholdings because it is not economicallyreasonable and promising in the medium to long run tomaintain them. Consequently, we consider our crossshareholdings will be reduced as a whole.

The Secretarial Department supports the business execution
duties of External Members of the Board, and the Audit &Supervisory Board Members’ Department supports thebusiness execution duties of External Audit & Supervisory
Board Members. Materials and data will be distributed andmade available for inspection prior to the meetings of theBoard held in principle once a month. Prior briefings are also
held to provide explanations by internal Members of theBoard, etc. on proposals. Opinion exchange meetings
between Members of the Board are held regularly to share
information and promote cooperation.
These support systems enable the Board to fully andactively deliberate and express opinions.

▍Implementation of Executive Training
As necessary training for Members of the Board and Audit &Supervisory Board Members to fulfill their roles andresponsibilities, training and materials on related laws andregulations, the articles of incorporation, the Board Rules andinternal rules that stipulate the Company’s important policies
are provided at the time of appointment.
In addition to the training described above, we provide
opportunities to receive training from outside organizations
and experts on an ongoing basis.
When necessary, we hold worksite visit tours and otherevents for External Members of the Board and External Audit& Supervisory Board Members to deepen their understandingof the Group and business activities.

Fundamental Policy to Enhance Operational Compliance Systems▍Regarding Cross-Shareholdings(2) Verification by the Board of the economic
reasonableness of cross-shareholdings
The Board compares the acquisition prices with thebusiness returns from all listed shares and from unlisted
shares which the Board decides to verify continuously, while
using capital costs as a yardstick. In June of each year, theBoard decides on a case-by-case basis whether we should
continue to hold the cross-shareholdings. In addition toquantitative verifications, the Board uses qualitative
information such as economic benefits expected in the
future for its decision.
As a result, in the FY2021, we sold 16 listed shares worth¥2.9 billion and 5 unlisted shares worth ¥0 billion (including
the cases where the Company sold part of the wholeshares).

Reduction of Listed Shares（Number of shares）
140

141

141

139
135

130

123
120

2017

2018

2019

2020

2021

(FY)

(3) Standards for Exercise of Voting Rights
Voting rights of cross-shareholdings will be exercised
appropriately from the viewpoint of whether they contributeto enhancement of our corporate value.
ESG study session

71 T A I S E I ANNUA L R EPORT 2022

About the Taisei Group

Aiming to Achieve Our Vision

Sustainability Section

Governance Section

Data Section▍Accountability⃝Dialogue with Shareholders and Investors
Taisei Corporation established the Information Disclosure
Policy, and has set forth principles for ensuring appropriate
information disclosure and transparency in the Fundamental
Corporate Governance Policy. These policies form the basis forour practice of timely and appropriate information disclosure.
In 2015, the Company established the IR Policy and has
been promoting constructive dialogue through discussions withshareholders and investors, IR briefings, and the annual general
meeting of shareholders.
Furthermore, we strive for fair information disclosure via the
Taisei Corporation official website, where we publish explanatory
material with commentary, summaries of the President’s
speeches and the main question and answer sessions (inJapanese and English) on top of the Medium-Term Business
Plan and materials distributed at results briefings. In addition, we
disclose information to overseas investors in English in ourannual reports and on the Taisei Corporation official English
website. We also report on key business activities andenvironmental, social and governance (ESG) initiatives in theshareholder newsletter in order to further deepen ourshareholders’ understanding of our corporate activities.

Information Disclosure Policy / Fundamental Policy toEnhance Operational Compliance Systems / IR Policy

p.02 Providing sustainable value

Value Provided to Key Stakeholders▍Remuneration, Etc.
(1) Matters concerning policies on determination of the
remuneration, etc. for each Member of the Board
Based on the deliberation by the Remuneration Committee, theBoard decided on a policy on determination of the content ofcompensation, etc. for each Member of the Board at the Board
meeting held on February 25, 2021. The details are as follows:
1. Fundamental policy on the determination of the details of
remuneration, etc. for each Member of the Board
The remuneration, etc. for Members of the Board of theCompany consists of fixed compensation and performancebased compensation, both of which are monetarycompensation, as well as non-monetary performancebased compensation (stock compensation). The above
policy of remuneration was decided comprehensively
considering the 39 matters such as the business scale,content, and performance of both the Company and theTaisei Group, as well as the duties and responsibilities ofeach Member of the Board. When determining the details of
remuneration, etc. for each Member of the Board, the Board
will decide the details of remuneration for each Member ofthe Board, taking account of the responsibilities andpositions of each Member of the Board (including the
concurrent positions as an Executive Officer, if applicable;
the same applies hereafter), based on deliberation at the
Remuneration Committee, which is authorized to deliberate
the details of remuneration, etc. before the Board’s decision.
The Remuneration Committee shall comprise of Members of
the Board (internal) and the same numbers of External
Members of Board as those of Internal Members and shallbe chaired by an External Member of the Board. Furthermore,
External Audit & Supervisory Board Member shall be added
as a member of the Committee from the viewpoint of
securing adequateness of the deliberations at the Committee.
Thus, the Remuneration Committee establishes the system
to properly consider the details of remuneration, etc. foreach Member of the Board.

2. Policy on determination of the amount and the calculation
methods of fixed Compensation
The fixed compensation shall be paid to each Member of theBoard on a fixed date every month during his or her term ofoffice, and shall be determined according to the responsibilitiesof each Member of the Board, comprehensively taking accountof the Company’s business scale, content, and the duties andresponsibilities of each Member of the Board, and the fixedcompensation to each Member of the Board other thanExternal Members of the Board, shall be progressively
increased according to his or her position.
3. Policy on determination of the contents, and the calculation
methods of the amount or the number of performance indicators
for performance-based compensation; and policy on
determination of the contents and the amount, or the number
and the calculation methods for non-monetary compensation
The performance-based compensation is established for the
purpose of raising the awareness of each Member of the Board
to contribute to business performance improvement andenhancement of corporate value. However, External Membersof the Board are not eligible for the performance-based
compensation.
(a) Performance-based compensation (monetarycompensation)
The performance-based compensation (monetary compensation)
shall be paid to each Member of the Board on a fixed dateevery month during his or her term of office and the contents
and the amount of the compensation shall be determined basedon the Company’s short-term performance. Net income attributableto owners of parent in the consolidated statement of income forthe most recent consolidated fiscal year is used as a performanceindicator because it is an indicator that shows the final results ofTaisei Group’s business activities, and provides the system sothat the amount paid to each Member of the Board will be
progressively increased according to his or her positional ranks.

Schematic Diagram of Remuneration of Members of the Board of the Company
Maximum

60.0%

Current
Business Year

74.8%

Minimum

100.0%

31.3%
22.8%

■ Fixed Compensation (Monetary Compensation)■ Performance-based Compensation (Monetary Compensation)■ Performance-based Compensation (Stock Compensation)

8.7%
2.4%

* The above ratio is the renumeration for
President and Chief Executive Officer,
Representative Director calculated as
an example.
* Renumeration for External Members of
the Board is the Fixed Compensation
only, and the Performance-based
Compensations are not applicable to
the remuneration.

TA I SE I A N N UA L R E P O R T 2 0 2 2 72

Governance Section

Corporate Governance(b) Performance-based compensation (stockcompensation)
The performance-based compensation (stock compensation)
is designed to raise the awareness of Members of the Board
to contribute to improving medium- to long-term businessresults and enhancing corporate value by clarifying linkage
between the remuneration of Members of the Board with
Taisei Group’s business results and the value of share, and by
sharing with shareholders not only the benefits of a rise inshare prices but also the risk of a decline in share prices. The
stock benefit trust (= Board Benefit Trust) method is adopted,
and the date of the annual General Meeting of Shareholders is
the grant date. In accordance with the “Officers’ Share Benefit
Regulations” established by the Board, each year during his or
her term of office, points are granted and accumulated to one(1) share per point. In the event that a Member of the Board
retires and satisfies the beneficiary requirements specified in
the “Officers’ Share Benefit Regulations,” the Company’s
shares equivalent to the cumulative number of points will be
distributed after retirement through prescribed procedures todetermine the beneficiary. A part of the payment may be madein cash equivalent to the market value of the Company’s
shares instead of the Company’s shares. As well as theperformance-based compensation (monetary compensation),
net income attributable to owners of the parent in the
consolidated statements of income for the most recent
consolidated fiscal year is used as a performance indicatorbecause it is an indicator that shows the final results of TaiseiGroup’s business activities. 41 The points to be granted toeach Member of the Board are determined separately for
Representative Directors and other Members of the Board
respectively considering the status of achievement of businessperformance, duties and responsibilities.
4. Policy on determination of the ratio of each type ofcompensation to be applied to the amount of
remuneration, etc.
With respect to performance-based compensation, theCompany has set performance values that serve as criteria
for monetary compensation and stock compensation andhas established a rule that the ratio of performance-based
compensation will increase when performance is favorable
compared to the criteria. From a medium- to long-term
perspective, the Company has a plan to review for reducing
the proportion of fixed compensation and increasing the
proportion of performance-based compensation. However,the compensation for External Members of the Board shallbe fixed compensation only.

(2) Matters related to the policy on determination of theamount and the calculation methods of remuneration,etc. for Audit & Supervisory Board Members
The remuneration, etc. for Audit & Supervisory Board Members
consists only of fixed remuneration, and the amount for each
Audit & Supervisory Board Member is determined by the Audit &Supervisory Board through consultation.

(3) Matters concerning the resolution of the General Meeting of Shareholders on the remuneration, etc. for Members of theBoard and Audit & Supervisory Board Members
Type of remuneration,
etc.

Category

Compensation limit

Date of resolution at
the General Meeting of
Shareholders

Up to ¥70 million per month

June 27, 2006
(The 146th General Meeting of
Shareholders)

Fixed compensation

Member of the
Board

Performance-based
compensation(Monetary compensation)

Audit & Supervisory
Board Member

Number of the Members
applicable for payment at
the time of resolution
14(including two External Membersof the Board)
12

Performance-based
compensation(Stock compensation)

Up to ¥100 million, 35,000 points
per fiscal year
(1 point = 1 share of stock)June 24, 2020
(The 160th General Meeting of
Shareholders)8

Fixed compensation

Up to ¥12 million per month

June 29, 1994
(The 134th General Meeting of
Shareholders)5(including two External Audit &Supervisory Board Members)(4) The total amount of remuneration for Members of the Board and Audit & Supervisory Board Members, etc.
Total amount of remuneration in kind (Millions of Yen)
Category

Total Amount of
remuneration, etc.
(Millions of Yen)

Non-monetarycompensation

Monetary compensation
Fixed compensation

Performance-based
compensation

Stock compensation

Members of the Board(External Members)(Millions of Yen)

Member of the Board(External Members)

738
(62)

572
(62)

148
(0)

18
(0)

14
(4)

Audit & Supervisory
Board Members(External Members)

119
(54)

119
(54)

—
—

—
—

6
(4)

Notes:
1. Among the types of monetary compensation, the performance indicator of the performance-based compensation should be an indicator that shows the final results of our group’s businessactivities. Thus, the Company adopts the net income attributable to owners of the parent in the consolidated statements of income for the most recent consolidated fiscal year. The total sumof the net income attributable to owners of the parent in the consolidated statements of income for the most recent consolidated fiscal year is ¥71,436 million.
2. Stock compensation (non-monetary compensation) adopts the method of the Board Benefit Trust (=BBT), and the date of the annual General Meeting of Shareholders is the grant date. In
accordance with the “Officers’ Share Benefit Regulations” established by the Board, each year during his or her term of office, points are granted and accumulated to one (1) share per point.
In the event that a Member of the Board retires and satisfies the beneficiary requirements specified in the “Officers’ Share Benefit Regulations,” the Company’s shares equivalent to the
cumulative number of points will be distributed after retirement through prescribed procedures to determine the beneficiary. A part of the payment may be made in cash equivalent to themarket value of the Company’s shares instead of the Company’s shares. The stock compensation is also categorized as performance-based compensation, therefore, “net income attributableto owners of the parent in the consolidated statements of income” for the most recent consolidated fiscal year is adopted as the performance indicator of the stock compensation because itis an indicator that shows the final results of Taisei Group’s business activities. The net income attributable to owners of the parent in the consolidated statements of income for current
consolidated fiscal year is ¥71,436 million.
3. We judge that the contents of remuneration paid to Members of the Board during this fiscal year are within the maximum amount approved at the General Meeting of Shareholders subject tothe basic policy determined by the Board on the determination of the details of remuneration, etc. for each Member of the Board, and also judge that the contents of remuneration determinedby the Board are also in accordance with the determination policy, because the contents of remuneration were determined at the Board based on deliberations at the Remuneration Committee,
which is authorized to deliberate the details of remuneration, etc. before the Board’s decision.

73 T A I S E I ANNUA L R EPORT 2022

About the Taisei Group

Aiming to Achieve Our Vision

Sustainability Section

Data Section

Governance Section

Compliance and Risk Management
The Taisei Group has established the Action Guidelines for Taisei Personnel and the Taisei Group as a Whole as
the basic principles of organizational behavior and standards of behavior and judgment that should be actively
practiced or strictly observed by executives andCompliance Promotion System
employees. These Action Guidelines are the Group’s
President
code of compliance. In the Fundamental Policy to
CP* Committee
Administrative Structure
Enhance Operational Compliance Systems, they
Head Office Business Administration Div.
state that “Members of the Board shall recognize that
Secretariat
CP General Manager
CP General Promoter
compliance is at the core of good management and
CP Promotion Section*(Chief of Business(General Manager of
Administration Division) General Affairs Department)
shall faithfully comply with all compliance-related
regulations, including the Action Guidelines for Taisei
Implementation Structure
Personnel and the Taisei Group as a Whole.” This isapplied to all Group companies, including those in
Head Office
Branches
Japan and overseas.
Division CP Manager
Division CP Manager
1

2▍Compliance Promotion System
As shown in the diagram on the right, the Company has
appointed managers, promoters and implementers in eachdivision, and has established an internal compliance promotion system. In addition, the Compliance Committee, chairedby an external expert (lawyer), has been established as theSpecial Committee that responds to consultations with the
President. We are working to heighten the awareness among
all executives and employees and further ensure complianceby 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 the recommendations by the Compliance Committee and compliancetraining in each division, and taking other steps.

(Chief of Division)(Chief of Branch)

Division CP Promoter(General Manager in Charge of
Administration)

Division CP Promoter(Administrative Manager)

CP Implementers(All Department General Managers)*3

CP Implementers(All Department General Managers)*3

All Executives and Employees

All Executives and Employees*1 CP: abbreviation of compliance*2 Promotes and embeds compliance awareness among executives and employees.
Also functions as a secretariat for the Compliance Committee.
*3 All heads of departments are appointed compliance implementers. The heads ofeach department educate and inform all executives and employees in their own
departments about compliance.

Overall Principles of Conduct / Individual Policies▍System and Framework⃝Compliance 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 theentire 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 group compliance hearings to confirm the status of compliance promotionand exchange opinions, and strive to ensure thorough compliance and promote communication.
Furthermore, compliance training is conducted annually forbusiness partners (specialized contractors) and new employeesof the Soyukai* (Taisei Corporation’s proprietary organization
for core subcontractors) to ensure thorough compliancethroughout the supply chain.
Education / training■ 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, andnecessary measures are taken in cooperation with related departments to promote compliance.

Themes covered in recent years

Compliance Newsletter(monthly)● Risk management of Taisei Corporation● Anti-corruption (entertainment and gifts)● Construction Business License and Supervision Disposition under theConstruction Business Act● About the Taisei Spirit● Results of the compliance questionnaireE-learning training(twice a year)● Bribery, harassment and the whistleblowing system● Power harassment● Rules related to contact with other companies in the same industry andthe in-house leniency system, etc.

● Corporate Ethics Helpline (whistleblowing system)and others*See the glossary on p.102 for details on the Soyukai.

TA I SE I A N N UA L R E P O R T 2 0 2 2 74

CP
(C
Adm

Corporate Governance

Governance Section▍Whistleblowing and Consultation System
Based on the Whistleblower Protection Act, at the TaiseiGroup, we have established an internal whistleblowing
system (the Corporate 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 byexecutives and employees and acts that violate (or an act
intended to violate) the Action Guidelines for Taisei
Personnel and the Taisei Group as a Whole, and we haveestablished consultation desks in-house and at an externalorganization (a law firm). The system also allows
anonymous reporting to obtain information clues on a wide
range of violations. In addition, to enhance the effectivenessof the system, we actively conduct educational activities
such as distributing the Help Line Cards summarizing theoutline of the system to all executives and employees, andintroducing the contents and operational results of thesystem through e-learning and Compliance Newsletter.
In response to reports received, we will investigate thefacts 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 ensure that the whistleblowers are not treateddisadvantageously for reporting. For external stakeholders
who do not have a direct contractual relationship with theCompany, our website provides inquiries on human rights,
environmental issues and other issues.
Internal whistleblowing system /Operational results

Flow of Internal Whistleblowing Based on
the Helpline System

Board
Sustainability Committee

FY201924 cases

FY202028 cases

FY202130 casesAudit & Supervisory
Board Members /Audit & Supervisory Board

ReportPresident

Whistleblower (anonymous whistleblower accepted)

Compliance Committee

Taisei Corporation and its Group companies
Corporate officers

Employees

Dispatchedtemporary staff

Temporaryworkers

Employees on
secondment
Retiredpersonnel

ReportWhistleblowing/Consultation

Primary suppliers that have a direct contractual
relationship with Taisei Corporation
Staff

Consultation Desk
Person in charge of implementation:
General Manager of General Affairs Dept.
In-house consultation desk:Manager of Compliance Promotion Office

Response/
ReportInvestigation, corrective action
Investigation, discussion on
corrective action, and report

Departmentsin charge

External consultation desk:
Law firm

Taisei Corporation: Contact▍Anti-Corruption Policy
At Taisei Corporation, we support theanti-corruption principle of the United
Nations Global Compact which we signed
in 2018. Under the Action Guidelines for
Taisei Personnel and the Taisei Group as a
Whole, we have set forth “Ensuring fairtrade” and “Maintenance of proper
relationships with individuals or entities
engaged in politics and government.” This indicates that theTaisei Group and Taisei Personnel shall not offer or promise any
unjust money or goods nor provide entertainment or gifts
beyond the social norm to clients and individual executives andemployees of the corporate 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 bribery, or activities that may beunderstood as such. We also conduct awareness-raising
activities and training regarding prevention of bribery ofpoliticians and government officials (including foreign government officials) for all executives and employees while engaging
in activities with an awareness of not being involved in bribery or
activities that may be understood as such at all times.

Participation in the United Nations Global Compact

75 T A I S E I ANNUA L R EPORT 2022

▍Review of Compliance with the Group’s
Action Guidelines and Handling of Violations
The Taisei Group specifies in its Rules on Enforcement of theCompliance System for the Action Guidelines for Taisei Personnel
and the Taisei Group as a Whole (“Action Guidelines”) that, in theevent that a regular employee or executive has violated theGroup’s Action Guidelines (including anti-corruption, etc.), thefacts are reviewed carefully and rigorously by the Board of
Directors or the Management Council, and disciplinary action istaken 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 toaccurately ascertain the facts by investigating relevant factors,
including related persons, course of events, nature and detailsof 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 no cases of legal action, including finesand penalties related to corruption. There were no cases of
dismissal resulting from violations of the Action Guidelines for
Taisei Personnel and the Taisei Group as a Whole.

About the Taisei Group

Aiming to Achieve Our Vision▍Verification of Compliance with Laws andRegulations (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 allbids on file.
Every year, the legal department verifies the legitimacy of bids
and checks compliance with the Construction Business Act, theAntimonopoly Act and the Subcontractors Protection Act.

▍ 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, anddeclare establishing fair and reliable relationships with ourpartners 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 willtake a resolute stance against anti-social forces and will rejectillegitimate demands. In order to eliminate anti-social forces,
we have included a condition in our contracts, including thebasic contract for specialized subcontractors, declaring thatthe 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, newcollaboration 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 and Medium-sized Enterprises. We
disseminate our stance on impartial and fair transactions inconnection with preventing corruption to employees of theCompany and Group companies as well as to our suppliers,
including sub-contractors and intermediaries.
We also cover impartial and fair transactions in our Sustainable
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.

Corporate Governance▍ Thorough Awareness of Structure of Values
and Policies
We created a portable card of the Structure of Values andPolicies, which was updated in 2010, in an effort to spread andestablish it. Since FY2011, we have been conducting ane-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 andthe Action Guidelines for Taisei Personnel and the Taisei Group
as a Whole, and the participation rate was 95%.

Sustainability Section

Governance Section

Data Section▍ Tax Compliance
Taisei Corporation established its Tax Policy in August 2020
as a guideline for complying with tax laws and regulations
and fulfilling its social responsibilities, and is striving to fulfill
its tax obligations appropriately.

Tax Policy
At Taisei Corporation, we set forth the fulfillment of our social
responsibilities by complying with applicable laws and regulations
and in accordance with social norms under the Action Guidelines
for Taisei Personnel and the Taisei Group as a Whole (“Action
Guidelines”).
Based on the Action Guidelines, we set out the following Tax
Policy as a guide to comply with laws and regulations concerning tax
affairs and carry out our social responsibilities.
1. Compliance with Laws and Regulations
We will comply with the relevant laws and regulations concerning
tax affairs at each country and each region where we are engaged
in business activities on the basis of our Action Guidelines.
2. Proper Performance of Tax Obligations
We will duly perform the tax obligations subject to the laws andregulations concerning tax affairs.
3. Enhancing Awareness of Compliance with Tax Laws andRegulations
We will enhance the awareness of compliance with the tax laws
and regulations through education regarding adequate tax practiceand payment.
4. Relationship with Tax Authorities
We will endeavor to maintain the relationship of mutual trust with
tax authorities through faithful and adequate dealing with tax affairs.

Tax Policy▍ Specific Measures for Compliance with
the Antimonopoly Act
Taking the fact seriously that we were indicted on suspicion ofviolating 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 andresolution by the Board. We continued to operate andimplement the measures below in FY2021.
1. Revision and tightening of internal rules relating to contracts withcompetitors (September 2018)
2. Reinforcement of procedures to confirm the appropriateness ofthe 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 andemployees in the sales departments and the technical departmentsthat engage in operations related to taking orders (implemented
every fiscal year since FY2018)

Our Structure of Values and Policies

TA I SE I A N N UA L R E P O R T 2 0 2 2 76

Governance Section

Corporate GovernanceRisk Management Promotion System
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. We have also developed an appropriate
management system that addresses major ESG-related risks such as quality, compliance, information, safety, andthe environment.
In order to ensure the effective functioning of company-wide risk management and the appropriateness ofbusiness operations, we implement advance risk measures stipulated in internal regulations and manuals. In theunlikely event that a risk should materialize, we take appropriate measures to minimize losses and ensure business
continuity and the trust of society.
Company-Wide Risk Management System
Audit & Supervisory Board Members/
Audit & Supervisory Board

Audit

Board
Supervision

ReportPresident
Chief Executive Officer of Risk Management
ReportIncident / Accident Response

Instruction / OrderCountermeasures and Prevention of Reoccurrence

Chief Risk Management Officer (CRO): Chief of Business Administration Division
Supervision of risk management

Risk Management Committee
CRO Secretariat

Risk Management Council
Head Office Risk Management Promotion Committee

Head Office

Branch Offices

Group Companies

Branch Offices Risk Management Promotion Committee

Fundamental Policy to Enhance Operational Compliance Systems / Risk Management Policy▍ Risk Management System⃝ Promotion of Company-Wide Risk Management System
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 Officer of 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 theeffectiveness of the risk management system.
Based on the Basic Risk Management Rules, each division of
the Head Office, in cooperation with the branches, reviews andidentifies all risks associated with their business activities andselects the “Head Office-governed risks.” The “Head Officegoverned risks” are then narrowed down to risks that canpossibly 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 theCRO. 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.

77 T A I S E I ANNUA L R EPORT 2022

⃝ Business and Other Risks
Taisei Corporation has in place a system to prevent and evaderisks 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 thepolicy to handle such risks and reporting the policy under“Business and Other Risks” in the Securities Report.

Business and Other Risks in FY2021 Annual Securities Report⃝ Climate Change-Related Risks
In terms of climate change-related risks, we specify andassess risks based on various scenarios created and promote
initiatives in response to the TCFD Recommendations.
Disclosure Based on thep.48 Information
Recommendations by TCFD
Sustainability Section

About the Taisei Group

Aiming to Achieve Our Vision

Sustainability Section

Governance Section

Data Section▍ Initiatives for Business Continuity Planning(BCP)▍Response to Risks Related to Infectious 		
Diseases and Pandemics

In 2005, we established the Policy on Business Continuity inTimes of Disaster to fulfill our responsibilities as a general
construction company that supports the infrastructure for socialand 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) tobe implemented in times of disaster, conduct disaster training atleast once a year, in which all executives and employees of theCompany and the Group companies take part, and fully review
and update the BCP based on the results of the training andother factors each time.
In recognition of our efforts to improve business continuity on acontinuous 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 for assistance.

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 acrisis response in a comprehensive and prompt manner.
Furthermore, in November 2020 we realigned the contents ofthe 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.” Specificcountermeasures 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 ofConstruction Contractors and others. At the same time, we areworking 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 workplacevaccination for approximately 30,000 workers wishing to be
vaccinated (as of July 2022). They included all executives andemployees (including contract workers and dispatchedworkers) of the Taisei Group and their families and staff ofcooperating companies entering our worksites nationwide.

Policy on Business Continuity in Times of Disaster▍ 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 the “management of information and intellectual property rights” underthe Action Guidelines for Taisei Personnel and the Taisei Group
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 for handling electronic information andhave been providing education and guidance to all executives
and employees as well as business partners. We have beenworking to strengthen the information security environment at
our overseas sales offices and project sites. We also work toenhance 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 management, we implement thorough risk management in all
business processes.
To respond to the increasingly serious risk of cyber attacks,
we have been collecting the latest information on them incooperation with external organizations through the Nippon
CSIRT Association, centered on the Taisei-Security Incident
Response Team (SIRT), which was established in 2013, andplanning and introducing advanced defense measures toprevent attacks.

●M ajor Infection-Prevention Measures at Taisei Corporation’s OfficeWork Departments and Worksites① Ensuring handwashing, mask wearing, physical distancing withothers and avoiding the 3Cs (closed spaces, crowded places,
close contact settings)② Temperature measurement and hand disinfection at entrances③ Installation of acrylic partitions between seats④ Prohibition of non-essential business trips and non-urgent travel
within emergency action areas and priority action areas⑤ Continuing to implement telecommuting, dispersing workspace,staggered commuting, etc.
⑥ Active use of online meetings and ICT tools (avoiding businesstrips 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 healthcenters, etc.

Policy on the Protection of Personal Information / Code of
Conduct on the Use of Social MediaTA I SE I A N N UA L R E P O R T 2 0 2 2 78

Governance Section

Management Members

Management Members(As of July 1, 2022)▍ Members of the Board / Audit & Supervisory Board Members
Takashi YAMAUCHI

Yoshiro AIKAWA

Chairman, Member of the Board

President and Chief Executive Officer,
Representative Director

June 2021: Chairman of Member of the Board▎Attendance at Board meetings:
14 out of 14 meetings (100%)

June 2020:
President and Chief Executive Officer,
Representative Director▎Attendance at Board meetings:
14 out of 14 meetings (100%)

Shigeyuki SAKURAI

Shigeyoshi TANAKA

Norihiko YAGUCHI

Hiroshi KIMURA

Representative Director

Representative Director

Representative Director

Member of the Board

April 2021:
Executive Vice President, Representative Director
Chief of Business Administration Division;
In charge of New Business Planning

June 2021:
Executive Vice President, Representative Director
Chief of Civil Engineering Division;
In charge of Safety Administration

June 2021:
Executive Vice President, Representative Director
Chief of Marketing & Sales Division (Integrated)▎Attendance at Board meetings:
14 out of 14 meetings (100%)▎Attendance at Board meetings:
14 out of 14 meetings (100%)

June 2020:
Senior Managing Executive Officer
Deputy Chief of Marketing & Sales Division (Integrated),
Supervising Marketing & Sales (Civil Engineering) Division;
Chief of Marketing & Sales (Civil Engineering) Division

Atsushi YAMAMOTO

Yoshihiro TERAMOTOAtsuko NISHIMURA

Takao MURAKAMI*4

June 2021:
Senior Managing Executive Officer
Chief of Marketing & Sales Promotion Division

June 2021:
Senior Managing Executive Officer
Chief of Architecture & Engineering Division (Integrated);
Chief of Building Construction Division

June 2019:
Member of the Board of Taisei Corporation▎Attendance at Board meetings:
11 out of 11 meetings (100%)

June 2017:
Member of the Board of Taisei Corporation▎Attendance at Board meetings:
14 out of 14 meetings (100%)▎Concurrent positions:
Outside Director of INPEX CORPORATION

Fumiya KOKUBU

Takashi HAYASHI

Akihiko NOMA

Member of the Board*1*3

Audit & Supervisory Board Member(Full-Time)

Audit & Supervisory Board Member(Full-Time)

June 2019:
Audit & Supervisory Board Member of Taisei Corporation

June 2019:
Audit & Supervisory Board Member of Taisei Corporation▎Attendance at Board meetings:
14 out of 14 meetings (100%)▎Attendance at Audit & Supervisory 		
Board meetings: 15 out of 15 meetings (100%)▎Attendance at Board meetings:
14 out of 14 meetings (100%)▎Attendance at Audit & Supervisory 		
Board meetings: 15 out of 15 meetings (100%)

Member of the Board▎Attendance at Board meetings:
11 out of 11 meetings (100%)

Norio OTSUKA

Member of the Board*1*3
June 2019:
Member of the Board of Taisei Corporation▎Attendance at Board meetings:
14 out of 14 meetings (100%)▎Concurrent positions:
Outside Director of Sojitz Corporation

Member of the Board

June 2019:
Member of the Board of Taisei Corporation▎Attendance at Board meetings:
14 out of 14 meetings (100%)▎Concurrent positions:
Chairman of the Board of Marubeni Corporation
Outside Director of Honda Motor Co., Ltd.

▎Attendance at Board meetings:
14 out of 14 meetings (100%)

Member of the Board*1*3▎Attendance at Board meetings:
14 out of 14 meetings (100%)

Member of the Board*1*3▎Attendance at Board meetings:
13 out of 14 meetings (92.9%)▎Concurrent positions:
External Member of the Board of Television 		
Hokkaido Broadcasting Co., Ltd.

Yasuhiro SATO

Seishi TASHIRO

Keiko OHARA

Masamitsu MIURA

June 2020:
Audit & Supervisory Board Member of Taisei Corporation

June 2020:
Audit & Supervisory Board Member of Taisei Corporation

June 2020:
Audit & Supervisory Board Member of Taisei Corporation

June 2021:
Audit & Supervisory Board Member of Taisei Corporation▎Attendance at Board meetings:
12 out of 14 meetings (85%)▎Attendance at Audit & Supervisory 		
Board meetings: 13 out of 15 meetings (86%)▎Attendance at Board meetings:
14 out of 14 meetings (100%)▎Attendance at Audit & Supervisory 		
Board meetings: 15 out of 15 meetings (100%)▎Attendance at Board meetings:
14 out of 14 meetings (100%)▎Attendance at Audit & Supervisory 		
Board meetings: 15 out of 15 meetings (100%)▎Concurrent positions:Founding Partner, Kamiyacho International Law OfficeDirector, Member of the board (Independent)of Financial Products Group Co., Ltd.
Outside Director of FUJI KYUKO CO., LTD.

▎Attendance at Board meetings:
11 out of 11 meetings (100%)▎Attendance at Audit & Supervisory 		
Board meetings: 11 out of 11 meetings(100%)

Audit & Supervisory Board Member*2*3

Audit & Supervisory Board Member*2*3*1 External Member of the Board as defined by the Companies Act, Article 2-XV.
*2 External Audit & Supervisory Board Member as defined by the Companies Act, Article 2-XVI.
*3 Independent officer in accordance with the rules of Tokyo Stock Exchange and Nagoya Stock Exchange.
*4 Mr. Takao MURAKAMI resigned as a Member of the Board in September 2022.

79 T A I S E I ANNUA L R EPORT 2022

Audit & Supervisory Board Member*2*3

Audit & Supervisory Board Member*2*3

About the Taisei Group▎ Executive Officers

Aiming to Achieve Our Vision

Sustainability Section

Governance Section

Data Section(As of July 1, 2022)

Title
Business in Charge

Name

President and Chief Executive Officer

Yoshiro AIKAWA

Vice Chairman and Executive Officer

Kazuhiko DAI

Executive Vice President
Chief of Civil Engineering Division;
In Charge of Safety Administration
Executive Vice President
Chief of Business Administration Division;
In charge of New Business Planning
Executive Vice President
Chief of Marketing & Sales Division (Integrated)
Senior Managing Executive
Officer In charge of Marketing & Sales (Building Construction),
Marketing & Sales Division (Integrated)
Senior Managing Executive Officer Chief of Sustainability Division (Integrated);
Chief of Clean Energy & Environment Business Promotion Division
Senior Managing Executive Officer
Chief of Marketing & Sales (Building Construction) Division I;
In charge of Community Design Project
Senior Managing Executive Officer
Deputy Chief of Marketing & Sales Division (Integrated),
Supervising Marketing & Sales (Civil Engineering) Division;
Chief of Marketing & Sales (Civil Engineering) Division
Senior Managing Executive Officer
Chief of International Operations Headquarters

Shigeyoshi TANAKA
Shigeyuki SAKURAI
Norihiko YAGUCHI
Yoshinobu SHIGEJI
Jiro TANIYAMA
Hiroshi TSUCHIYA
Hiroshi KIMURA
Keiji HIRANO

Senior Managing Executive Officer
Chief of Marketing & Sales Promotion Division
Senior Managing Executive Officer
Chief of Architecture & Engineering Division (Integrated);
Chief of Building Construction Division
Senior Managing Executive Officer
Chief of Kansai Branch

Atsushi YAMAMOTO

Senior Managing Executive Officer
Chief of Safety Administration Division

Shun KITANO

Senior Managing Executive Officer
Chief of Marketing & Sales (West Japan) Division
Managing Executive Officer
In charge of Marketing & Sales (Building Construction),
Marketing & Sales Division (Integrated)
Managing Executive Officer
Chief of Procurement Division

Shimpei OGUCHIManaging Executive Officer
Chief of Marketing & Sales (Building Construction) Division III

Yuichi KITAGUCHIManaging Executive Officer
Chief of Nagoya BranchManaging Executive Officer
Deputy Chief of Marketing & Sales (West Japan) Division,in charge of Building Construction
Managing Executive Officer
Chief of Tohoku Branch

Atsushi SUZUKIManaging Executive Officer
Chief of Marketing & Sales (Building Construction) Division II

Akira NAKAYAManaging Executive Officer
Chief of Hokushinetsu Branch

Masahiko OKADAManaging Executive Officer
Deputy Chief of Marketing & Sales (Civil Engineering) Division

Yoshio ABEManaging Executive Officer
Chief of Yokohama BranchManaging Executive Officer
General Manager of Design Department,
Civil Engineering Division
Managing Executive Officer
Deputy Chief of Marketing & Sales (Building Construction) Division I

Akira EJIMAManaging Executive Officer
Deputy Chief of Marketing & Sales (Civil Engineering) Division

Yoshihiko IKEUCHIManaging Executive Officer
Chief of Taisei Advanced Center of Technology
Managing Executive Officer
Deputy Chief of Civil Engineering Division;
General Manager of Civil Engineering Department
Managing Executive Officer
Chief of Engineering Division

Ichiro NAGASHIMAManaging Executive Officer
Chief of Tokyo Branch

Koichiro OKUHATAManaging Executive Officer
Chief of Sapporo Branch

Shinichi HIRAJIMAManaging Executive Officer
In charge of Technology
Managing Executive Officer
Deputy Chief of Clean Energy & Environment Business Promotion Division;
General Manager of Renewable Energy Development Department;
General Manager of Next Generation Energy Department
Managing Executive Officer
Chief of Building Renovation Division

Shigeo OCHI

Yoshihiro TERAMOTO
Takeshi KAGATA

Masao YOSHIKAWA
Noriaki KON

Shinji KAWAMURA
Iwao NISHIOKA

Yasushi KAMEZAWA
Shinsaburo SAWA

Kenji SHIRAKAWA
Shinichiro TAKAHAMA

Miyoshi KATO
Tohru UEMATSU

TA I SE I A N N UA L R E P O R T 2 0 2 2 80

Governance Section

Management Members

Title
Business in Charge

NameManaging Executive Officer
Chief of Mechanical & Electrical Division

Yuji TANIGAWA

Managing Executive Officer
In charge of Technology

Kazuhiro SAWADA

Managing Executive Officer
In charge of Technology
Executive Officer
General Manager of Marketing & Business Development Department (Taiwan),International Marketing & Business Development Division
Executive Officer
In charge of Marketing & Sales (Building Construction),
Marketing & Sales Division (Integrated)
Executive Officer
Deputy Chief of International Operations Headquarters (Civil Engineering);
General Manager of Civil Engineering Department
Executive Officer
In charge of Technology

Akio TAKASE

Executive Officer
Deputy Chief of Marketing & Sales (Building Construction) Division I

Masaru KAMATA

Executive Officer
Chief of Nuclear Facilities Division

Yuji IJIRI

Executive Officer
Chief of International Marketing & Business Development Division
Executive Officer
Deputy Chief of Business Administration Division;
General Manager of General Affairs Department
Executive Officer
Chief of Design Division

Tatsuya SUGAWARA

Executive Officer
Chief of Corporate Planning Office

Hiroki FUKASAWA

Executive Officer
Chief of Shikoku Branch

Hideki NISHIYAMAExecutive Officer
Chief of Chiba Branch

Mayuki YAMAURA

Executive Officer
Chief of Urban Development Division
Executive Officer
Deputy Chief of Corporate Planning Office;General Manager of Corporate Planning Department;
General Manager of New Business Planning Department
Executive Officer
Chief of Chugoku Branch
Executive Officer
In charge of Marketing & Sales,
Marketing & Sales Division (Integrated)
Executive Officer
In charge of Technology;
In charge of Energy & Environment
Executive Officer
Deputy Chief of Design Division
Executive Officer
In charge of Technology;
General Manager of Construction Engineering Department, Civil Engineering Division
Executive Officer
Chief of Proposal & Solutions Division
Executive Officer
Deputy Chief of Marketing & Sales Promotion Division;
General Manager of Marketing & Sales Promotion Department
Executive Officer
Chief of Kanto Branch
Executive Officer
Deputy Chief of International Operations Headquarters (Building Construction);
General Manager of Building Construction Department
Executive Officer
Deputy Chief of Marketing & Sales (Building Construction) Division II

Takashi YAMAZAKI▎ E xecutive Fellows

Weiyu CHUNG
Katsuhiko KITAGAWA
Toshihiko AOKIYasuji YAMAUCHI

Junichi KASAHARA
Masato MATSUMURA

Yukio HABA
Yuichiro YOSHINO
Masahiro YOSHIDA
Yoji UEDA
Yozo SHINOZAKI
Masami SHIMIZU
Yusuke HATAE
Toshiyuki TSUJI
Yoshiyuki ASADA
Masamichi BABA
Shin SUZUKI(As of July 1, 2022)

Title
Business in Charge

Name

Executive Fellow
In charge of Information Planning, Corporate Planning Office
Executive Fellow
Deputy Chief of Taisei Advanced Center of Technology;
General Manager of Infrastructure Technology Research Department
Executive Fellow
Deputy Chief of Urban Development Division

Toshihiko TSUKA

Executive Fellow
General Manager of Construction Sitework Promotion Center, Building Construction Division

Fujio FUNAMIZU

Executive Fellow
General Manager of Digital Product Center, Building Construction Division

Jun HIROSE

Executive Fellow
Executive Engineer, Building Construction Division

Junichi HIROSE

81 T A I S E I ANNUA L R EPORT 2022

Tsuyoshi MARUYA
Akehiko TOMITAAbout the Taisei Group

Aiming to Achieve Our Vision

Sustainability Section

Governance Section

Data Section

External Board Members’ Message
External
ExternalMember
Member Atsuko
Takao MURAKAMINISHIMURA
ofofthetheBoard
Board｜Profile

1979
1999
2001
2004
2008
2012
2014
2016
2017

Joined the Ministry of Foreign Affairs of Japan
Minister/Counsellor of Permanent Mission of Japan to theUnited Nations
Minister of Embassy of Japan in Belgium
Professor of Tohoku University Graduate School of Law
Administrative Vice President of the Japan Foundation
Adviser of Japan Oil, Gas and Metals National Corporation
Ambassador Extraordinary and Plenipotentiary to Grand
Duchy of Luxembourg
Ambassador Extraordinary and Plenipotentiary for Women,
Human Rights and Humanitarian Affairs
External Member of the Board of Taisei Corporation (current
position)｜Concurrent
positions

Outside Director of INPEX CORPORATION｜Reason forappointment

A broad range of insights, international sense, and objective
point of view based on many years’ experience as a diplomat

To Be a Company Committed to the Value Works Remaining on
the Map That Develops with Excellent Human Capital
As for the Board of Taisei Corporation, where one third of its members are Independent External Members, diverse
members participate in discussions with their respective knowledge and experience. Having enough and appropriate
information shared through extensive materials and detailed pre-meeting briefing sessions, the Board members
make their comments and suggestions without any burden from a wide range of perspectives and deepen their
discussions on major issues and risks.
As part of our recent initiatives, we have newly established the Governance System Review Committee, which I
chair. This committee has initiated specific tasks such as identifying appropriate challenges of the Company anddelegating some part of the Board’s authority to the Management Committee. Considering these, as for my evaluation of the Board’s overall performance, discussions and decisions are appropriately made to realize the sustainableimprovement of the corporate value.
As can be observed with the formulation of the Fundamental Policy on Sustainable Development and the establishment of the Sustainability Division (Integrated), and as a new trend of recent discussions at the Board, we focused more on the perspectives for our contribution to overcoming global social issues. Since the Board is also
increasingly interested in the corporate evaluation with respect to the contribution to the Sustainable Development
Goals and non-financial information, we have more opportunities in the Board meeting to deliberate on the measuresrelated to such aspects, and those measures continue to improve.
In addition to addressing ourselves to climate change issues, major changes in the external business environment,such as the impact of the pandemic and heightened geopolitical risks such as the invasion of Ukraine, which wehave not encountered before, are accelerating and becoming more complicated. In these times, the Board recognizes the importance of its continuing and tireless efforts to grasp and evaluate the progress and issues of businessplans appropriately, to deepen discussions on major risks and to firmly steer the management of the Company while
promptly and appropriately ascertaining the situation and changes in the competitive environment.
While we have a number of issues that we should focus on in the future, it is one of the most important items toaccomplish an attractive and rewarding work environment. It is our major initiative, which could have an influence inthe future value of the Company, to secure competent human capital who could chart a path to the future in various
fields, and to encourage them to vibrantly work and grow in the workplace in order to ensure the success of sustainability management in a rapidly changing business environment.
Being a professor in a university, I often see people in younger generation, who are more interested in a way towork to achieve self-fulfillment than ever before. At the same time, they have growing sense of value to consider that
it is their responsibility to solve social issues.
I believe that our work, which the Taisei Group is undertaking, is very attractive because we can support the essential infrastructure that enriches the quality of people’s daily lives and contribute significantly to the realization of asustainable society and community. “Works Remaining on the Map” does not only simply mean being on a map, but
it tells us to create a foundation that will last and support the rich and sustainable life of humankind in the future.
I encourage the Company to proactively and confidently promote its attractiveness being engaged in the work thatis directly linked to the accomplishment of our blissful future. I would also like to contribute positively to the Company through many years of experience on the diplomatic front line and research on global issues at universities.
TA I SE I A N N UA L R E P O R T 2 0 2 2 82

Governance Section

External Board Members ’Message

External Member Takao MURAKAMIof the Board｜Profile

1969
1999
2001
2003
2004
2005
2011
2018
2019

Joined Sapporo Breweries Limited(Present: Sapporo HoldingsLimited)
Executive Officer
Managing Executive Officer
Member of the Board; Senior Managing Executive Officer of
Sapporo Breweries Limited (new company)
Managing Executive Officer, Member of the Board of Sapporo
Holdings Limited
President and Chief Executive Officer, Representative Director,
Group CEO
Chairman of the Board, Representative Director
Honorary Counsellor of Sapporo Holdings Limited(current position)
External Member of the Board of Taisei Corporation(current position)｜Concurrent
positions

External Member of the Board of Television Hokkaido
Broadcasting Co., Ltd.

｜Reason forappointment

Rich experience in managing multiple companies
Note: He resigned as a Member of the Board in September 2022.

To Survive in a Drastically Changing Society, I Expect the Groupto Pursue Management That Cares About People Further
It is my fourth year as an External Member of the Board of Taisei Corporation. During this time, I have been constantly analyzing and evaluating the effectiveness of the Board, and observed that there has been considerable
progress in restructuring the governance system and enhancing discussions from medium- to long-term perspective. As a reform of the Board, we had clear sense of a direction to sort the items of agenda to be handled by theManagement Committee from those by the Board, and to stimulate discussion within the Board. I recognize that theeffectiveness of the Board has been enhanced in this regard.
On the other hand, I also see a negative effect that we are now less informed about the discussion at the Management Committee. I feel it necessary to be reported in a little but more careful manners as to what was discussed at
the Management Committee and other committees and what was the background to reach the final decision.
In addition, as is often the case with our Company, the contents of the meeting materials of the Board are provided extraordinarily in detail as if they were architectural design documents. I think that there is room for improvement because a heavily detailed plan may lead to irrational efforts to achieve them or make it difficult to recognize
important points.
We have formulated the aimed image of our Company in ten years, “TAISEI VISION 2030” and the Medium-TermBusiness Plan developed through a backcasting method has gradually begun to take off. While we have many important issues that need to be addressed considering how the Taisei Group should be based on the ideal image inthe future, what I consider especially important is to realize a sustainable and environment-friendly society. We may
encounter various barriers, such as profitability and technology issues while we are taking company-wide initiatives
including resolving issues toward carbon-neutral society.
When I was an executive officer of Sapporo Breweries, the company drastically reduced the annual energy-related
costs at production facilities. I reviewed the work procedure and efficiency, and changed the way of work while
presenting ideas. This was enough to reduce the costs.
I am sure that this kind of effort can also be carried out in Taisei without difficulty. Carbon neutrality is a major
challenge, but I believe that human beings have excellent capabilities and ideas, thus, if we tackle it with adequate
energies, I am sure that we can achieve it definitely.
Another important point is the reinforcement of the management of occupational safety and training of engineers.
Having many years of experience in managing manufacturing plants, I believe that preventing the accidents at production facilities and maintaining the workers’ health and safety are important matters that are critical to our business.
Our Company has enhanced our human rights due diligence efforts, illustrating the workers’ safety and security atdomestic and overseas project sites as a human rights risk related issues, with which we need to work with a priority. Although work is sometimes required within a limited time period, I expect the Company to improve quality ofmanagement and to be developed into an enterprise that can survive in a severe business environment, while creating a new mechanism such as a production system to achieve better quality of work more safely without any cost
increase even if we comply with the statutory working hours.

83 T A I S E I ANNUA L R EPORT 2022

About the Taisei Group

Aiming to Achieve Our Vision

Sustainability Section

Governance Section

Data Section

External Board Members’ Message
External Member Norio OTSUKA
of the Board｜Profile

1973
2000
2002
2004
2007
2009
2015
2018
2019
2022

Joined NSK Ltd.
Executive Officer
Managing Executive Officer, Member of the Board
Senior Managing Executive Officer,
Member of the Board
Executive Vice President, Representative Director
President and Chief Executive Officer,
Representative Director
Chairman, Member of the Board
Advisor of NSK Ltd.
External Member of the Board of
Taisei Corporation (current position)
Honorary Advisor of NSK Ltd. (current position)｜Concurrent
positions

Outside Director of Sojitz Corporation｜Reason forappointment

Rich experience in managing multiple companies

Aiming for Sustainability Management that Expresses the Unique
Characteristics of the Taisei Corporation
Two years have passed since the Management Committee was established with the authority delegated from theBoard. The Management Committee functions as the decision-making body for the execution of operations of theCompany. As a result, we can focus on essential items on the agenda at Board meetings, and the effectiveness of
the Board has been sufficiently enhanced.
Looking back over the last year in particular, I have been impressed by the efforts made in the process of formulating “the Medium-Term Business Plan (2021–2023).” I think it was very meaningful that the Board, in which consists mainly of the External Members of the Board, took time and had sufficient discussions. Each External Memberof the Board understands the fundamental nature of the Medium-Term Business Plan and shares it with all employeesof Taisei Corporation first, then with the people of the Group companies. This flow of the process forms an important step for the management of the Board.
In addition, the Governance System Review Committee which was established two years ago, has discussed andenhanced the measures to resolve various governance issues. Further growth is also expected in this regard.
Since our main business is construction, there is no doubt that environmental issues, particularly carbon neutrality,
should be proactively addressed when considering sustainability management. The “Green Renewal ZEB” meetsthe needs of the society and will become an important part of our Company’s business.
As for sustainability development, there are many other issues that need to be addressed, and the items on a
to-do list keep increasing every year. Although examination of each issue shows that all items are important, weshould discuss them thoroughly within the Company before trying to resolve them all at once. Instead, we will needto select the items to work on and those to put aside in the most appropriate manner. I believe we ought to haveour style of sustainability development and governance.
There should be matters to be discussed about KPIs, including what kind of KPIs to establish internally and theirdefinition, as well as a method of management accounting. It is clear that we must implement them for sustainable
management as well.
Looking ahead to the future of the Company, what I would like it to tackle next is overseas business. Since I haveexperience in expanding overseas business, I understand the difficulty as well as the magnitude of potential. Therefore, looking at current Taisei Corporation’s stance towards overseas business, I feel frustrated seeing major opportunities wasted.
When engaging in overseas business, the Company should make a clear decision on which countries to betargeted first, and then make a serious effort with the intention of putting permanent roots there. It takes 10 or 20
years to find, recruit, and train local partners. Of course, there are risks and it will be a long-term plan. That’s why I
want the Company to start very soon. I expect it to be actively discussed and the top management to take action.

TA I SE I A N N UA L R E P O R T 2 0 2 2 84

Governance Section

External Board Members ’Message

External Board Members’ Message
External Member Fumiya KOKUBU
of the Board｜Profile

1975
2005
2008
2008
2010
2012
2012
2013
2019
2019

Joined Marubeni Corporation
Executive Officer
Managing Executive Officer
Managing Executive Officer,
Representative Director
Senior Managing Executive Officer
Executive Vice President
Executive Vice President, Representative Director
President and Chief Executive Officer,
Representative Director
Chairman, Member of the Board (current position)
External Member of the Board of
Taisei Corporation (current position)｜Concurrent
positions

Chairman of the Board of Marubeni Corporation
Outside Director of Honda Motor Co., Ltd.

｜Reason forappointment

Broad insight and an international perspective
as the top management of a general trading company

Understanding Global Trends through Onsite Experience toEnhance Capabilities to Respond to Changes
It has been four years since I joined the Board. Nowadays, I am having a lively talk with other External Members of
the Board, and I feel discussions are becoming more active every year due to the Company’s open culture.
Since the beginning, the Board of Taisei Corporation has been provided substantial briefings and materials prior tomeetings. Based on such pre-meeting briefings and materials, we, as External Members, express our opinions, but
discussions tend to become complicated because the goals and initiatives to be deliberated in the Board meetingsare enormous and diverse. At first, I was not always certain how the opinions of the External Members were recognized by and reflected in the management.
Prioritization of each initiative and application of it for employees would not be smoothly processed if such uncertainty
remained. Thus, I proposed that the consequence of the discussion should be shared by all members of the Board.
Now, the Board has evolved based on my proposal to confront the opinions of External Members and proactively
take them into consideration. In that sense, the Company’s motivation to further improve the Board is clear, and thediscussions are becoming deepened.
Taisei Corporation will celebrate its 150th anniversary in 2023 since the foundation. I believe the primary reason forsuch long-lasting management is that the Company has been sincerely dealing with social issues all along. If theCompany had been only seeking profits, it could not have survived the turbulent eras in Japan from the Meiji to theReiwa period. This is why Taisei Corporation still continues to be at one of the top companies, and this is indeed toembody the sustainability.
On the other hand, considering the future management style, we can observe various social issues and variablefactors emerging on a global scale that are clearly different from those in the past. Of course, the way we deal withthem will change gradually. Human rights and working environment issues are substantial matters that we must
tackle. At the same time, we also must be sensitive to various trends. I suppose that Taisei Corporation needs to beaware of the presence of stakeholders in various fields and to separately handle the fundamental matters that are
universal and unchanging for the Company and the matters that are to be flexibly handled responding to the demands of the times. While the Management Committee, which is independent from the Board, is currently functioning with certain authority delegated, I feel that it will be a task for the Board to clearly conduct strategy-related
discussion and to clarify how to monitor it.
I, myself, handle business every day at the front line of a trading company, for which I have been working, and I
also serve as a Japanese member of the APEC Business Advisory Council. Since my work is directly related to thefield of international trade, I can recognize how business is conducted and how they approach to the sustainability
management in other countries through my onsite work experience.
I would like to give some feedback at the Board meetings of Taisei Corporation based on what I have seen andheard on these occasions.

85 T A I S E I ANNUA L R EPORT 2022

About the Taisei Group

Aiming to Achieve Our Vision

Sustainability Section

Governance Section

Data Section

Explanation and Analysis of Business Results▎ Overview of Business Results
During the fiscal year ended March 31, 2022, as the impact of the COVID-19 pandemic on the Japanese economy
gradually eased, consumption and capital investment began to recover. However, prospects remained uncertain in viewof concerns about the downside risk to the economy due to soaring prices worldwide and the crisis in Ukraine. In theconstruction industry, robust public investment as well as growth of private-sector capital investment in anticipation of
the post-pandemic period resulted in overall construction investment above the previous fiscal year’s level.
Given this situation, the operating results of the Taisei Corporation Group were as follows.
Orders received in the Civil Engineering business and the Building Construction business decreased owing tointensifying competition for orders, especially for large-scale projects, and the postponement of the placing of orders. In
addition, orders received in the Real Estate Development business decreased because an order for a large-scale
property for sale was received in the previous consolidated fiscal year. Consequently, total orders received decreased
3.7% year on year to ¥1,589.7 billion.
Net sales increased 4.3% year on year to ¥1,543.2 billion as net sales of the Building Construction businessincreased, mainly owing to a higher contract backlog carried over from the end of the previous consolidated fiscal year
and because overseas construction projects proceeded smoothly, reflecting a reduction in the impact of the pandemic.
Operating income decreased 26.4% year on year to ¥96.0 billion, owing to a decrease in gross profit. The main
factors for the decrease were as follows. In the Building Construction business, the progress of large-scale construction
projects for which orders were received in a severely competitive environment put pressure on gross profit. In addition,
the profit margin decreased mainly because profitability of certain large-scale projects did not improve. Ordinary income
decreased 24.0% year on year to ¥103.2 billion, reflecting lower operating income despite improvement of nonoperating income (expenses) mainly due to an increase in interest income. Net income attributable to owners of parent
decreased 22.8% year on year to ¥71.4 billion owing to improvement of extraordinary gains (losses), mainly because of
the recording of loss on valuation of investment securities in the previous consolidated fiscal year. Return on equity(ROE) decreased 3.2 percentage points from the previous consolidated fiscal year to 8.4%.
Results according to the reporting segment are as follows (the results for reporting segments include internaltransactions between segments).
(1) Civil Engineering
In the Civil Engineering segment, net sales decreased
2.1% year on year to ¥441.4 billion, mainly because fewerof the Company’s construction projects peaked and thecontract backlog carried over from the end of the previous
consolidated fiscal year was lower at consolidated subsidiaries. Operating income decreased 14.6% to ¥47.9 billion
owing to a decrease in gross profit on completed construction contracts due to a decline in the profit margin,
mainly because the profitability of certain large-scale
projects did not improve, in addition to lower net sales.
(2) Building Construction
Net sales in the Building Construction segment increased
4.3% year on year to ¥1,001.7 billion, mainly because thecontract backlog carried over from the end of the previous
consolidated fiscal year was higher and overseas construction projects proceeded smoothly, reflecting the reduced
impact of the pandemic. The progress of large-scaleconstruction projects for which orders were received in aseverely competitive environment put pressure on grossprofit. In addition, the profit margin decreased mainly
because profitability of certain large-scale projects did not
improve. As a result, owing to a decrease in gross profit on
construction business, operating income decreased 47.0%
year on year to ¥33.8 billion.

(3) Real Estate Development
In the real estate industry, although the vacancy rate in
the building leasing market has increased and rents areon a downward trend mainly in central Tokyo owing to
office consolidation and office space reduction, etc., thecondominium market remained robust, reflecting highresidential demand and continuing low interest rates.
Net sales of the Taisei Group in the Real Estate Development segment increased 4.4% year on year to ¥138.7
billion, mainly because of the sale of large-scale properties by the Company. Operating income increased
37.6% year on year to ¥13.3 billion, reflecting an
increase in gross profit of real estate development
operations, mainly because of the improvement of the
profit margin of the real estate sales business of consolidated subsidiaries.
(4) Others
Net sales increased 3.8% year on year to ¥14.3 billion,
and operating income increased 30.0% to ¥1.4 billion.

TA I SE I A N N UA L R E P O R T 2 0 2 2 86

Data Section Explanation and Analysis of Business Results

Major new construction orders in fiscal period under review
ClientProject

Location

Sawai Pharmaceutical Co., Ltd.

(Tentative Name) Kyushu Factory No.2 of Sawai Pharmaceutical Co., Ltd.,New Factory Construction Work

Iizuka-shi, Fukuoka
Prefecture

NTT Urban Development Corporation(Tentative Name) Sapporo Kita 1 Nishi 5 Project

Sapporo-shi, Hokkaido

Japanese Red Cross SocietyMusashino Red Cross Hospital Development Project (Extension / Renovation /Demolition Works and Others)Musashino-shi, TokyoJapan Railway Construction, Transport andTechnology Agency

Hokkaido Shinkansen, Sasson Tunnel (Soen) and Others

Sapporo-shi, Hokkaido

Department of Public Works and Transport,
Vientiane Capital

Vientiane Capital Water Supply Expansion Project CP-1: Construction of
Water Treatment Plant & Pipelines

Lao People’s
Democratic Republic

Major construction projects completed in fiscal period under review
ClientProject

Location

East Japan Railway Company, NIPPONHOTEL Co., Ltd., JR East Sports Co., Ltd.

Kawasaki Station West Area Development Plan, New Building Construction
Work

Kawasaki-shi,
Kanagawa Prefecture

Land Transport Authority of Singapore

Contract T226 Construction of Marina Bay Station and Tunnels for ThomsonEast Coast Line

Republic of Singapore

Mitsubishi UFJ Trust and Banking
Corporation(Tentative Name) Aeon Mall Noritakeshinmachi New Building Construction
Work

Nagoya-shi, Aichi
Prefecture

MORI TRUST CO., LTD.

(Tentative Name) Okinawa Sesoko Project, New Building Construction Work

Kunigami-gun, Okinawa
Prefecture

Kagawa Prefecture

Koto River Comprehensive Development Project, Kabagawa Dam Body
Construction Work

Takamatu-shi, Kagawa
Prefecture

Orders received

Millions of Yen

Reporting segment

Net sales

2021

2022

Civil Engineering¥ 463,899¥ 447,198

Civil Engineering

Building Construction

1,040,641

1,017,751

Building Construction

135,506

114,003

Real Estate Development

10,58010,791Others¥1,650,627¥1,589,745

Real Estate Development
Others
Total

Reporting segment

Total

Millions of Yen

2021

2022

¥ 420,549¥ 414,560

922,254984,944

126,757

132,943

10,58010,791¥1,480,141¥1,543,240

Note: In orders received and net sales, transactions between segments have been eliminated.

▎ Cash Flows(1) Cash Flows from Operating Activities
Net cash provided by operating activities totaled ¥80.5
billion (versus ¥67.4 billion in the previous consolidated fiscal
year), due mainly to ¥103.5 billion in income before income
taxes. The main factors behind the ¥13.0 billion increase
compared with the previous consolidated fiscal year
included an improvement in the balance of constructionrelated items mainly due to an increase in trade payables.
(2) Cash Flows from Investing Activities
Net cash used in investing activities totaled ¥37.6 billion(versus ¥18.6 billion in the previous consolidated fiscal
year), due mainly to purchase of marketable and investment securities. Cash inflows decreased ¥18.9 billion
compared with the previous consolidated fiscal year mainly
owing to an increase in purchase of investment securities.

(3) Cash Flows from Financing Activities
Net cash used in financing activities totaled ¥41.8 billion(versus ¥37.3 billion in the previous consolidated fiscal
year), due mainly to cash dividends paid and acquisitionof treasury stock. The main factor behind the ¥4.5 billion
deterioration compared with the previous consolidated
fiscal year was a decrease in the amount of funds raised.
Accordingly, cash and cash equivalents at the end of theconsolidated fiscal year under review amounted to ¥496.7
billion, up ¥2.4 billion over the previous consolidated fiscal
year-end. The balance of interest-bearing debt for fundraising purposes amounted to ¥224.3 billion, up ¥5.3 billion
from the previous consolidated fiscal year. Of the interestbearing debt for fund-raising purposes, non-recourse debt
was ¥0.1 billion.

▎ Financial Position(1) Assets
Total assets were ¥1,956.2 billion, an increase of 4.6% or¥85.5 billion from the end of the previous fiscal year,
principally due to an increase in trade notes and accounts
receivable (from completed construction contracts).
(2) Liabilities
Total liabilities were ¥1,083.3 billion, an increase of 5.6%
or ¥57.1 billion from the end of the previous
consolidated fiscal year, mainly reflecting an increase inaccounts payable (for construction contracts).
87 T A I S E I ANNUA L R EPORT 2022

(3) Net Assets
Despite the acquisition of treasury stock, net assets
amounted to ¥872.8 billion, an increase of 3.4% or ¥28.4
billion from the end of the previous consolidated fiscal
year, principally due to recording of net income
attributable to owners of parent. Consequently, thecapital-to-asset ratio decreased 0.5 percentage points
to 44.4%.

About the Taisei Group

Aiming to Realize Our Vision

Sustainability Section

Governance Section

Data Section

CONSOLIDATED BALANCE SHEETSTAISEI CORPORATION AND CONSOLIDATED SUBSIDIARIESAS OF MARCH 31, 2021 AND 2022

Thousands of
U.S. Dollars

Millions of Yen
ASSETS

2021

2022

Cash and time deposits���������������������������������������������������������������

¥494,307¥499,113$4,078,057

Notes and accounts receivable trade�������������������������������������������

539,837

575,600

4,703,000

Cost on uncompleted contracts ��������������������������������������������������

51,25047,443

387,642

Real estate for sale and development projects in progress ����������

119,828

117,831

962,752

Other inventories �������������������������������������������������������������������������

2,888

3,389

27,690

Other current assets �������������������������������������������������������������������

33,02853,079433,687

Allowance for doubtful accounts �������������������������������������������������

(128)

(100)

(818)

Total current assets ��������������������������������������������������

1,241,013

1,296,356

10,592,012

Buildings and structures ����������������������������������������������������������

149,826

153,961

1,257,954

Machinery, vehicles and equipment �������������������������������������������������

63,43064,868530,011Land ����������������������������������������������������������������������������������������

120,410

120,914987,947

Construction in progress ���������������������������������������������������������

2,780

4,068

33,243

Accumulated depreciation �������������������������������������������������������

(130,249)(136,376)(1,114,279)

Total tangible fixed assets ����������������������������������������

206,198

207,435

1,694,876

Intangible fixed assets �����������������������������������������������������������������

14,807

16,016130,867

Investment securities ���������������������������������������������������������������

364,029

380,271

3,107,046

Net defined benefit asset ���������������������������������������������������������

11,67023,230189,806

Deferred income tax assets �����������������������������������������������������

3,367

3,543

28,953

Other fixed assets �������������������������������������������������������������������

31,23031,215

255,050

Allowance for doubtful accounts ����������������������������������������������

(1,694)(1,869)(15,273)

Total investments and other assets ���������������������������

408,603436,391

3,565,583

Total fixed assets ����������������������������������������

629,609659,844

5,391,327

Total assets �������������������������������������������������

¥ 1,870,622¥ 1,956,200$ 15,983,339

2022

Current assets:

Fixed assets:
Tangible fixed assets:

Investments and other assets:

TA I SE I A N N UA L R E P O R T 2 0 2 2 88

Data Section Consolidated Financial Statements

Thousands of
U.S. Dollars

Millions of Yen
LIABILITIES AND NET ASSETS

2021

2022

Notes and accounts payable trade ����������������������������������������������

¥ 376,099¥ 423,349$ 3,459,018

Short-term borrowings ����������������������������������������������������������������

89,23897,901

799,910

Short-term non-recourse loans payable ��������������������������������������

15

15

122

Straight bonds due within one year ���������������������������������������������

—20,000163,412

Lease obligations ������������������������������������������������������������������������

386

318

2,605

2022

Current liabilities:

Advances received and progress billings on uncompleted contracts ����������

173,361

160,733

1,313,286

Deposit received �������������������������������������������������������������������������

141,860

156,315

1,277,192

Provision for warranties on completed contracts �������������������������

2,394

3,250

26,554

Provision for losses on construction contracts ����������������������������

2,104

14,163

115,722

Other current liabilities �����������������������������������������������������������������

55,68550,317411,122841,147926,3637,568,947

Total current liabilities �������������������������������������
Long-term liabilities:
Straight bonds ����������������������������������������������������������������������������

50,00040,000326,824

Long-term borrowings ����������������������������������������������������������������

79,621

66,279541,539

Long-term non-recourse loans payable ���������������������������������������

143

128

1,048

Lease obligations ������������������������������������������������������������������������

570

592

4,840

Deferred income tax liabilities�������������������������������������������������������

14,53012,824

104,782

Deferred income tax liabilities for revaluation of land ��������������������

3,274

3,274

26,758Retirement benefits for directors and corporate auditors �������������

495

435

3,558

Provision for share-based remuneration for directors ��������������������������

39

48

396

Provision for environmental measures �����������������������������������������

1

1

14

Net defined benefit liability �����������������������������������������������������������

17,89815,054

123,003

Other long-term liabilities �������������������������������������������������������������

18,47918,363150,037

Total long-term liabilities ��������������������������������������������������������������

185,054

157,002

1,282,802

Total liabilities �������������������������������������������������

1,026,201

1,083,365

8,851,750

Net assets:
Shareholders’ equity:
Common stock ���������������������������������������������������������������������������

122,742

122,742

1,002,877

Capital surplus ����������������������������������������������������������������������������

60,19830,382

248,244

Retained earnings �����������������������������������������������������������������������

621,568

591,383

4,831,960

Treasury stock������������������������������������������������������������������������������

(85,916)(898)(7,344)

Total shareholders’ equity ������������������������������

718,593743,6096,075,737

Unrealized gains on available-for-sale securities, net of taxes �����������

103,215

97,535796,925

Unrealized losses on hedging derivatives, net of taxes ����������������

(15)

(8)

(68)

Accumulated other comprehensive income:

Revaluation reserve for land ��������������������������������������������������������

1,223

1,223

9,998

Foreign currency translation adjustments ������������������������������������

(3,847)(1,903)(15,554)

Remeasurements of defined benefit plans �����������������������������������

21,67528,429232,288

Total accumulated other comprehensive income ���������

122,251

125,277

1,023,589

Non-controlling interests: ����������������������������������������������������������������

3,575

3,948

32,262

Total net assets ����������������������������������������������

844,420872,835

7,131,589

Total liabilities and net assets �������������������������

¥ 1,870,622¥ 1,956,200$ 15,983,339

89 T A I S E I ANNUA L R EPORT 2022

About the Taisei Group

Aiming to Realize Our Vision

Sustainability Section

Governance Section

Data Section

CONSOLIDATED STATEMENTS OF INCOME
TAISEI CORPORATION AND CONSOLIDATED SUBSIDIARIESYEARS ENDED MARCH 31, 2021 AND 2022

Thousands of
U.S. Dollars

Millions of Yen
2021

2022

¥ 1,326,663¥ 1,385,516

2022

Net sales:
Construction business ����������������������������������������������������������������

$ 11,320,507

Development projects �����������������������������������������������������������������

153,478

157,723

1,288,699

Total net sales������������������������������������������������������������������������������

1,480,141

1,543,240

12,609,207
10,004,299

Cost of sales:
Construction business�����������������������������������������������������������������

1,133,661

1,224,426

Development projects������������������������������������������������������������������

127,681

131,077

1,070,982

Total cost of sales������������������������������������������������������������������������

1,261,343

1,355,503

11,075,282
1,316,208

Gross profit:
Construction business�����������������������������������������������������������������

193,001

161,090

Development projects������������������������������������������������������������������

25,796

26,646

217,716

Total gross profit��������������������������������������������������������������������������

218,798

187,736

1,533,924

Selling, general and administrative expenses:
Selling expenses��������������������������������������������������������������������������

39,653

41,666

340,437

General and administrative expenses�������������������������������������������

48,62849,993

408,478

Total selling, general and administrative expenses������������������������

88,281

91,659748,915

Operating income ���������������������������������������������������������������������������

130,516

96,077785,008

Non-operating income:Interest income����������������������������������������������������������������������������

437

1,680

13,734

Dividend income��������������������������������������������������������������������������

4,509

4,701

38,410Foreign exchange gains���������������������������������������������������������������

839

428

3,499

Investment gain on equity method�����������������������������������������������

278

893

7,303

Other non-operating income��������������������������������������������������������

926

719

5,875

Total non-operating income����������������������������������������������������������

6,991

8,423

68,824

Interest expenses�������������������������������������������������������������������������

970

910

7,438

Provision of allowance for doubtful accounts��������������������������������

214

10

88

Non-operating expenses:

Other non-operating expenses�����������������������������������������������������

384

332

2,713

Total non-operating expenses������������������������������������������������������

1,570

1,253

10,241

Ordinary income �����������������������������������������������������������������������������

135,937

103,247

843,591

1,771

1,760

14,383Extraordinary gains:
Gains on sales of investment securities����������������������������������������
Other extraordinary gains�������������������������������������������������������������

10

17

146

Total extraordinary gains��������������������������������������������������������������

1,782

1,778

14,530Extraordinary losses
Impairment losses on fixed assets������������������������������������������������

323

843

6,891

Loss on disposal of fixed assets���������������������������������������������������

594

130

1,064

Loss on valuation of investment securities������������������������������������

1,159

52

432

Other extraordinary losses�����������������������������������������������������������

224

495

4,050

Total extraordinary losses�������������������������������������������������������������

2,302

1,522

12,438

Income before income taxes������������������������������������������������������������

135,416

103,503845,683
279,530

Income taxes - current���������������������������������������������������������������������

39,64834,211

Income taxes - deferred�������������������������������������������������������������������

3,170(2,276)(18,599)

Total income taxes���������������������������������������������������������������������������

42,81931,935

260,931

Net income��������������������������������������������������������������������������������������

92,59771,567584,751

Net income attributable to non-controlling interests�������������������������

43

131

Net income attributable to owners of parent������������������������������������

¥    92,554¥    71,436

1,072
$

583,679

TA I SE I A N N UA L R E P O R T 2 0 2 2 90

Data Section Consolidated Financial Statements

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
TAISEI CORPORATION AND CONSOLIDATED SUBSIDIARIESYEARS ENDED MARCH 31, 2021 AND 2022

Thousands of
U.S. Dollars

Millions of Yen
2021

Net income �������������������������������������������������������������������������������������

2022

2022

¥ 92,597¥ 71,567$ 584,751

Unrealized gains on available-for-sale securities, net of taxes��������

28,683(5,681)(46,424)

Unrealized gains (losses) on hedges derivatives, net of taxes��������

5

(7)

(58)

Foreign currency translation adjustments ������������������������������������

(711)

1,581

12,921Remeasurements of defined benefit plans �����������������������������������

17,8106,729

54,985

Share of other comprehensive income of entities accounted for using equity method ������������

(82)

575

4,698

Total other comprehensive income ����������������������������������������������

45,706

3,197

26,123Comprehensive income �����������������������������������������������������������������

¥ 138,303¥ 74,765$ 610,875

Owners of parent ������������������������������������������������������������������������

¥ 138,383¥ 74,462$ 608,404

Non-controlling interests �������������������������������������������������������������

(80)

302

2,470

Other comprehensive income :Comprehensive income attribute to:

91 T A I S E I ANNUA L R EPORT 2022

About the Taisei Group

Aiming to Realize Our Vision

Sustainability Section

Governance Section

Data Section

CONSOLIDATED STATEMENTS OF CASH FLOWSTAISEI CORPORATION AND CONSOLIDATED SUBSIDIARIESYEARS ENDED MARCH 31, 2021 AND 2022

Thousands of U.S.
Dollars

Millions of Yen
2021

2022

2022

Cash flows from operating activities:
Income before income taxes �������������������������������������������������������
Depreciation and amortization �����������������������������������������������������
Impairment losses on fixed assets �����������������������������������������������
Increase (decrease) in allowance for doubtful accounts ���������������
Increase (decrease) in provision for warranties on completed contracts ���Increase (decrease) in provision for losses on construction contracts �����
Increase (decrease) in net defined benefit liability �������������������������
Decrease (increase) in net defined benefit asset ��������������������������
Interest and dividend income ������������������������������������������������������
Interest expenses ������������������������������������������������������������������������
Foreign exchange losses (gains) ��������������������������������������������������
Losses (gains) on valuation of investment securities ��������������������
Losses (gains) on sale of investment securities ����������������������������
Losses on disposal of fixed assets ����������������������������������������������
Investment losses (gains) on equity method ��������������������������������
Decrease (increase) in trade receivables ��������������������������������������
Decrease (increase) in cost on uncompleted contracts ����������������
Decrease (increase) in real estate for sale and development projects in progress �����
Decrease (increase) in accounts receivables - other ��������������������
Increase (decrease) in trade payables ������������������������������������������
Increase (decrease) in advances received and progress billings on uncompleted contracts ��
Increase (decrease) in deposit received ���������������������������������������
Other, net ������������������������������������������������������������������������������������
Subtotal ��������������������������������������������������������������������������������������
Interest and dividend received �����������������������������������������������������
Interest paid ��������������������������������������������������������������������������������
Income taxes paid �����������������������������������������������������������������������
Net cash provided by (used in) operating activities ���������������

¥ 135,416
10,459323
145(1,208)(164)(27,143)
1,534(4,946)
970
(839)
1,159
(1,619)594(278)
75,0903,600(14,780)
6,967(115,304)
51,811(4,674)(2,131)
114,9826,142(980)(52,650)
67,494¥ 103,503
10,907843
146
849
12,055(2,847)(11,559)(6,382)
910
(428)
52
(1,662)130(893)(35,560)
3,833
2,060
(19,229)
46,737(12,784)
14,453
6,066
111,203
7,248(915)(37,030)
80,507$

Cash flows from investing activities:
Decrease (increase) in time deposits �������������������������������������������
Purchase of tangible and intangible assets ����������������������������������
Proceeds from sale of tangible and intangible assets ���������������������
Purchase of investment securities �����������������������������������������������
Proceeds from sale and redemption of investment securities �����
Other, net ������������������������������������������������������������������������������������
Net cash provided by (used in) investing activities ����������������

31(12,725)78(12,075)
5,195
811(18,683)(2,319)(13,230)
263(25,934)3,525
15(37,680)(18,952)(108,100)
2,155(211,904)
28,803
123(307,874)

Cash flows from financing activities:
Net increase (decrease) in short-term borrowings ������������������������
Proceeds from long-term borrowings ������������������������������������������
Repayment of long-term borrowings �������������������������������������������
Repayment of long-term non-recourse loans payable �����������������
Proceeds from issuance of bonds �����������������������������������������������
Redemption of bonds �����������������������������������������������������������������
Acquisition of treasury stock �������������������������������������������������������
Dividends paid�����������������������������������������������������������������������������
Other, net ������������������������������������������������������������������������������������
Net cash provided by (used in) financing activities ����������������

5,420
25,000(29,533)(15)
19,882(10,000)(20,400)(27,296)(398)(37,342)(3,462)
24,200(25,417)
(15)
9,942
—
(20,007)(26,598)(505)(41,863)(28,286)
197,728(207,676)(122)
81,236—(163,469)(217,325)(4,133)(342,049)

Effect of exchange rate changes on cash and cash equivalents ������
Net increase (decrease) in cash and cash equivalents ���������������������Cash and cash equivalents at beginning of year �����������������������������Cash and cash equivalents at end of year ���������������������������������������

150
11,618482,655¥ 494,274

1,523
2,485
494,274¥ 496,760

12,444
20,312
4,038,516$ 4,058,828

845,683
89,118
6,891
1,198
6,941
98,504(23,261)(94,451)(52,145)7,438(3,499)432(13,584)
1,064(7,303)(290,554)
31,325
16,839(157,115)
381,871(104,454)
118,092
49,569908,601
59,227(7,478)(302,559)
657,790

TA I SE I A N N UA L R E P O R T 2 0 2 2 92

Data Section Consolidated Financial Statements

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETSTAISEI CORPORATION AND CONSOLIDATED SUBSIDIARIESYEARS ENDED MARCH 31, 2021 AND 2022

Millions of Yen

Retainedearnings

Treasury stock

Total
shareholders’equity¥ 60,198¥ 556,304¥ (65,515)¥ 673,729

—

—

—

—

60,198556,304(65,515)

673,729

CommonStockCapital surplus

Balance as of April 1, 2020 �������������������������������������������������

¥ 122,742

Cumulative effects of changes in accounting policies ���������

—Restated balance at beginning of year �����������������������������������

122,742

Changes during the period ����������������������������������������������������

—

—

—

—

—

Dividends ���������������������������������������������������������������������������

——(27,296)—(27,296)

Profit attributable to owners of parent ��������������������������������

——92,554—92,554

Acquisition of treasury stock ����������������������������������������������

—

—

—

(20,400)(20,400)

Disposal of treasury stock ��������������������������������������������������

—

(0)

—

0

0

Cancellation of treasury stock ��������������������������������������������

—

—

—

—

—

Transfer from retained earnings to capital surplus ���������������

—

—

—

—

—

Reversal of revaluation reserve for land ������������������������������

—

—

6

—

6

Changes other than shareholders’ equity, net ���������������������

—

—

—

—

—

Balance as of April 1, 2021 �������������������������������������������������

¥ 122,742¥ 60,198¥ 621,568¥(85,916)¥ 718,593

Cumulative effects of changes in accounting policies ���������

—

—

178

—

178

Restated balance at beginning of year �����������������������������������

122,742

60,198621,747(85,916)

718,772

Changes during the period ����������������������������������������������������

—

—

—

—

—

Dividends ���������������������������������������������������������������������������

——(26,598)—(26,598)

Profit attributable to owners of parent ��������������������������������

——71,436—

71,436

Acquisition of treasury stock ����������������������������������������������

—

—

—

(20,007)(20,007)

Disposal of treasury stock ��������������������������������������������������

—

—

—

6

6

Cancellation of treasury stock ��������������������������������������������

—(105,018)—

105,018—

Transfer from retained earnings to capital surplus ���������������

—75,202(75,202)——

Reversal of revaluation reserve for land ������������������������������

—

—

0

—

0

Changes other than shareholders’ equity, net ���������������������

—

—

—

—

—

Balance as of March 31, 2022 ��������������������������������������������

¥ 122,742¥ 30,382¥ 591,383¥(898)¥ 743,609

Treasury stock

Total
shareholders’equity$(701,987)$ 5,871,339

Thousands of U.S. Dollars

Balance as of April 1, 2021��������������������������������������������������

CommonStockCapital surplus

Retainedearnings$ 1,002,877$ 491,859$ 5,078,590

Cumulative effects of changes in accounting policies ���������

—

—

1,462

—

1,462

Restated balance at beginning of year �����������������������������������

1,002,877

491,859

5,080,052(701,987)

5,872,801

Changes during the period ����������������������������������������������������

—

—

—

—

—

Dividends����������������������������������������������������������������������������

——(217,325)—(217,325)

Profit attributable to owners of parent���������������������������������

——583,679—

583,679

Acquisition of treasury stock�����������������������������������������������

—

—

—

(163,469)(163,469)

Disposal of treasury stock���������������������������������������������������

—

—

—

51

51

Cancellation of treasury stock���������������������������������������������

—(858,061)—

858,061—

Transfer from retained earnings to capital surplus����������������

—614,446(614,446)——

Reversal of revaluation reserve for land�������������������������������

—

—

0

—

0

Changes other than shareholders’ equity, net ���������������������

—

—

—

—

—

Balance as of March 31, 2022���������������������������������������������

$ 1,002,877$ 248,244$ 4,831,960$(7,344)$ 6,075,737

93 T A I S E I ANNUA L R EPORT 2022

About the Taisei Group

Aiming to Realize Our Vision

Sustainability Section

Governance Section

Data Section

Millions of Yen
Unrealized gains(losses) on
hedging
derivatives,
net of taxes

Total
accumulated
othercomprehensive
income

Revaluation
reserve for land

Foreign currencytranslation
adjustments

Noncontrollinginterests¥  74,536¥ (43)¥ 1,230¥ (3,164)

—

—

—

—

¥  3,869¥  76,428¥ 3,757———

74,536

(43)

1,230

—

(3,164)

3,869

76,4283,757

753,915

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

(27,296)

—
—

—

—

—

—

—

—

92,554

—

—

—

—

—

—

(20,400)

—

—

—

—

—

—

—

0

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

Unrealized gains
on available-forsale securities,
net of taxes

Remeasurements of defined
benefit plans

Total net
assets¥ 753,915

—

—

(6)

—

—

(6)

—

—

28,679

27

—

(683)

17,80545,829(181)

45,648¥ 103,215¥ (15)¥ 1,223¥ (3,847)¥ 21,675¥ 122,251¥ 3,575¥ 844,420

—

—

—

—

—

—

—

178

103,215

(15)

1,223

(3,847)

21,675

122,251

3,575

844,599

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

(26,598)

—

—

—

—

—

—

—

71,436

—

—

—

—

—

—

—

(20,007)

—

—

—

—

—

—

—

6

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

(0)

—

—

(0)

—

—

(5,679)

7

—

1,944

6,754

3,026

372

3,398

¥  97,535¥  (8)¥ 1,223¥ (1,903)¥ 28,429¥ 125,277¥ 3,948¥ 872,835

Remeasurements of defined
benefit plans

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests$ 177,100$    998,864$ 29,217

Thousands of U.S. Dollars
Unrealized gains
on available-forsale securities,
net of taxes$ 843,332

Unrealized gains(losses) on
hedging
derivatives,
net of taxes

Revaluation
reserve for land

Foreign currencytranslation
adjustments$(128)$ 9,998$ (31,438)

Total net
assets$ 6,899,421

—

—

—

—

—

—

—

1,462

843,332

(128)

9,998

(31,438)

177,100

998,864

29,2176,900,883

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

(217,325)

—

—

—

—

—

—

—

583,679

—

—

—

—

—

—

—

(163,469)

—

—

—

—

—

—

—

51

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

(0)

—

—

(0)

—

—

(46,407)59—

15,88355,18824,725

3,044

27,769$ 796,925$(68)$ 9,998$ (15,554)$ 232,288$ 1,023,589$ 32,262$ 7,131,589

TA I SE I A N N UA L R E P O R T 2 0 2 2 94

Data Section Taisei Corporation Organization Chart

Taisei Corporation Organization Chart (As of May 1, 2022)★

Secretarial Dept.
Auditing Dept.

Engineering Planning & Administration Dept.
Project Management Dept.
Strategic Engineering Dept.

New Business Planning Dept.

Building Construction Solution Dept.

Corporate Planning Dept.
Corporate Planning Office

Engineering Div.

Corporate Communication Dept.

Fine Chemical Facilities Project Dept.

Human Resources Dept.

Industrial Facilities Project Dept.

General Affairs Dept.
Business Administration Div.

Energy & Infrastructure Project Dept.

Legal Dept.
Accounting Dept.

Productivity Innovation Dept.

Finance Dept.

Planning & Strategy Dept.
Building Construction Dept.

Safety Administration Dept.
Safety Administration Div.

Estimation Dept.

Subcontractor Relations Dept.

Building Construction Div.

Sustainability Div. (Integrated)

Environmental Administration Dept.

Sustainability Management Promotion Div.

Digital Product Center
Construction Sitework Promotion Center

Environment Management Dept.

Technology Control Dept.

Renewable Energy Development Dept.
ZEB & Smart Community Dept.
Next Generation Energy Dept.
Natural Symbiosis Engineering Dept.
Geo-Environmental Technology Dept.
Technology Planning Dept.

Fundamental Technology Cooperative Learning Dept.
Architecture & Engineering Div.(Integrated)

Planning & Promotion Dept.

Building Renovation Div.

Mechanical & Electrical Div.

Structural Engineering Depts.

Urban Engineering Research Dept.

Structural Planning Dept.
Design Div.

President

Advanced Design Dept.
Specialized Design Dept.
Design Quality Management Dept.

Advanced Analysis Technology Dept.

Construction Administration Dept.

Civil Engineering Dept.

International Projects Dept.

Environmental Engineering Dept.

Nuclear Facilities Dept.

Marketing & Sales Promotion Dept.

Planning Dept.

Planning & Business Promotion Dept.

Civil Engineering Dept.

Real Estate Information Dept.

Administration Dept.
Construction Engineering Dept.
Civil Engineering Div.

Estimate Dept.

Projects Information Analysis & Strategy Dept.

Project Analysis & Information Dept.

Facility Management Promotion Dept.

Offshore Wind Power Project Dept.

Marketing & Sales Div.(Integrated)

AI & IoT Business Promotion Dept.
Marketing & Sales (Building Construction) Div.Ⅰ

Marketing & Sales Depts.

Marketing & Sales (Building Construction) Div.Ⅱ

Marketing & Sales Depts.

Marketing & Sales (Building Construction) Div. Ⅲ

Marketing & Sales Depts.

Marketing & Sales (West Japan) Div.
International Marketing & Business Development Div.

International Projects Management Dept.
Coordination & Analysis Dept.
Procurement Dept.Ⅰ
Procurement Div.

Planning & Administration Dept.

Marketing & Planning Dept.

Administration Dept.

Marketing & Sales Depts.

Marketing & Sales Depts.

Safety Administration & Environmental Dept.
BranchInternational Business Strategy Dept.

Community Design Project Promotion Dept.

Building Construction & Engineering Dept.
Civil Engineering Dept.

Urban Redevelopment Dept.Ⅰ
Development Business Dept.
Development Business Dept. (International)

95 T A I S E I ANNUA L R EPORT 2022

Safety Administration & Environmental Dept.

Project Development Dept.Ⅱ

Urban Redevelopment Dept.Ⅱ

Audit & Supervisory Board Member

Administration Dept.
International Operations Headquarters

Project Development Dept.Ⅰ
PPP Projects Dept.

★

Building Construction Dept.
Civil Engineering Dept.

Sales Mindset/Skills Training Dept.

Urban Development Div.

Marketing & Sales Depts.
Design Dept.

Marketing & Business Development Depts.

Administration Dept.

Procurement Dept.Ⅱ
Procurement Dept.Ⅲ

Marketing & Sales Depts.

Planning & Administration Dept.

Machinery Dept.
Design Dept.

Business Design & Master Plan Consulting Dept.

Marketing & Sales (Civil Engineering) Div.

M&E Planning Dept.

Structural Engineering Dept.

Project Solutions Dept.

Medical & Pharmaceutical Business Div.

M&E Engineering Depts.

Planning Dept.

Customer Satisfaction Dept.

Proposal & Solutions Div.

Mechanical & Electrical Dept.

Architectural Design Depts.

Production Engineering Technology Dept.

Marketing & Sales Promotion Div.

Mechanical & Electrical Construction Control Dept.

Administration Dept.

Infrastructure Technology Research Dept.

Nuclear Facilities Div.

Building Renovation Dept.

Strategic Design Dept.

Intellectual Property Dept.

Advanced Technology Development Dept.

Building Renovation Promotion Dept.

Operations Planning Dept.

Innovation Strategy Dept.
Taisei Advanced Center of Technology

Project Management Dept.

Sustainability Planning Dept.
Carbon Neutral Promotion Dept.

Clean Energy & Environment Business Promotion Div.

Engineering Solution Dept.
Life-science Project Dept.

Information Planning Dept.

Property Management Business Dept.
New Business Development Dept.
Audit & Supervisory Board Members’ Dept.

About the Taisei Group

Aiming to Realize Our Vision

Sustainability Section

Governance Section

Data Section

Overseas Network (As of September 1, 2022)
China

TaiwanCSCEC-TAISEI CONSTRUCTION, LTD. (Head Office)TAIPEI OFFICE

No.8 Yard, Zhonghe Road, Fengtai District,
Beijing, P.R.C.100070
TEL 86-10-6845-1268 FAX 86-10-6845-1266

Zone B, 6F, No. 16, Sec. 4, Nan-Jing E. Road, Taipei,
Taiwan R.O.C.
TEL 886-2-2578-5656 FAX 886-2-2578-3300

Philippines
PHILIPPINE OFFICE
9th Floor, BDO Equitable Tower, Paseo de Roxas, Salcedo Village,
Makati City, Philippines
TEL 63-2-8403-9105 FAX 63-2-8478-9542

TAISEI PHILIPPINE CONSTRUCTION INCORPORATED
23rd Floor, BDO Equitable Tower, Paseo de Roxas,
Salcedo Village, Makati City, Philippines
TEL 63-2-8886-0670 FAX 63-2-8886-0663

Vietnam
VIETNAM OFFICE (Hanoi)
2nd Floor, Block A, Song Da Building Pham Hung Road,My Dinh1, Nam Tu Liem District Hanoi,
S.R. Vietnam
TEL 84-24-3553-5033 FAX 84-24-3553-5002

VIETNAM OFFICE (Ho Chi Minh City)
VIETNAM CHAMBER OF COMMERCE AND INDUSTRY,
Ho Chi Minh City Branch Building 7th FL,171 Vo Thi Sau St Vo Thi Sau Ward,
District-3, Ho Chi Minh City, S.R. Vietnam
TEL 84-28-3932-1759 FAX 84-28-3932-1758

VINATA INTERNATIONAL CO., LTD. (Head Office)(Ho Chi Minh City Branch Office)3rd Floor, Block A, Song Da Building
Pham Hung Road, My Dinh1, Nam Tu Liem District Hanoi,
S.R. Vietnam
TEL 84-24-3553-3839, -3840 FAX 84-24-3553-3788

7th FL, VIETNAM CHAMBER OF COMMERCE AND
INDUSTRY TOWER,171 Vo Thi Sau St., District 3,
Ho Chi Minh City, S.R. Vietnam
TEL 84-28-3932-1765 FAX 84-28-3932-1764

Indonesia
JAKARTA OFFICE
L’Avenue Office Tower, 28th Floor, Jl. Raya Pasar Minggu Kav. 16,
Pancoran Jakarta Selatan, 12780, Indonesia
TEL 62-21-8066-7320 FAX 62-21-8066-7312

PT. TAISEI PULAUINTAN CONSTRUCTION INTERNATIONAL
L’Avenue Office Tower, 28th Floor, Jl. Raya Pasar Minggu Kav. 16,
Pancoran Jakarta Selatan, 12780, Indonesia
TEL 62-21-8066-7321 FAX 62-21-8066-7312

PT. INDOTAISEI INDAH DEVELOPMENT
Kawasan Industri Indotaisei, Kota Bukit Indah Sector IA, Block B
Karihurip, Cikampek, 41373, Karawan, Jawa Barat, Indonesia
TEL 62-264-351-003 FAX 62-264-351-026

Singapore

Malaysia

SINGAPORE OFFICE
60 Paya Lebar Road, #04-57 Paya Lebar Square,
Singapore 409051
TEL 65-6280-0833 FAX 65-6280-0869

KUALA LUMPUR OFFICE
9-3, 9th Floor, Faber Imperial Court, Jalan Sultan Ismail,50250 Kuala Lumpur, Malaysia
TEL 60-3-2070-6155 FAX 60-3-2070-6010

Thailand
THAILAND OFFICE
19th Floor, Thanapoom Tower, 1550 New Petchburi Road,
Kwaeng Makkasan, Khet Rachtavee, Bangkok 10400, Thailand
TEL 66-2-207-0331

TAISEI (THAILAND) CO., LTD.
9th Floor, Thanapoom Tower, 1550 New Petchburi Road,
Kwaeng Makkasan, Khet Rachtavee, Bangkok 10400, Thailand
TEL 66-2-207-0330 FAX 66-2-207-0332

MyanmarBangladesh

MYANMAR OFFICE
2nd Floor, Tokyo Enterprise Building, No.32, Pyay Road, 6 1/2 miles,
Hlaing Township,Yangon, Myanmar
TEL 95-1-654-838 FAX 95-1-654-838

DHAKA OFFICE
Catharsis Tower, 10th Floor, House No.133, Road No.12, Block-E,
Banani, Dhaka-1213, Bangladesh
TEL 880-9606119911

Sri Lanka

India

SRI LANKA OFFICEINDIA OFFICE

No.177, 3rd Floor, Galle Road, Colombo 03.
Sri Lanka
TEL 94-11-2446194 FAX 94-11-2446198#602, 6th Floor, Tower B, Global Business Park, M.G. Road,
Gurgaon, Haryana-122002, India
TEL 91-124-466-9800 FAX 91-124-466-9888

Pakistan

Qatar

PAKISTAN OFFICE
Office-A, 5th Floor, Block-A, Saudi Pak Tower, 61-A,
Jinnah Ave., Islamabad, Pakistan
TEL 92-51-8316620 FAX 92-51-8316629

MIDDLE EAST OFFICE (Doha)Corner Abdullah Bin Jassim St. United Bank Bldg. 4th Floor,
Facing QNB Bldg, Doha - Qatar, PO BOX 47366
TEL 974-4443-4174 FAX 974-4443-7176

Arab Republic of Egypt
NORTH AFRICA OFFICE
25th, Rd. No.10, Station Sqr, Maadi, Cairo, Arab Republic of Egypt
TEL 20-2-2378-3609 FAX 20-2-2380-1362

TA I SE I A N N UA L R E P O R T 2 0 2 2 96

Data Section ESG Data

▎ Data on Environmental Contribution
Environment Data

(FY)

Unit

GRI

Indicators

2018

2019

2020

305-4

Scope 1+2 reduction rate of CO2 emissions per sales*1 (Taisei Group)*5

—

—

—

3.3

305-5

Scope 1+2 reduction rate of CO2 emissions*1 (Taisei Group)*5

—

—

—

– 11.8

305-4

KPI

305-5
3051,2

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

%

2021

– 28.9– 32.0– 30.3– 30.1

At construction stage: Reduction rate of total CO2 emissions*2– 44.7– 43.7– 54.5– 52.7At building operation stage: Reduction rate of estimated CO2 emissions*2, 3– 40.2– 39.5– 41.4– 44.6

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

361

368

318

325

Scope 1+2 total CO2 Emissions☆

261

267

216

224
162

10³ｔCO₂

305-1

Scope 1☆

204

198

159

305-2

Scope 2☆

57

69

57

61

305-3

Scope 3☆

—

—

—

3,878

Energy consumption☆

302-1

4

302-3

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

303-3

Water (amount of water used)☆
NOx emissions☆

305-7

301-2

ET

4.14

4.39

3.60

3.77

%

– 21.0– 23.3– 22.4– 22.2

10³m³
10³ｔCO₂

1,436

1,414

1,412

2,266

1,345

1,302

1,039

1,085
162

205

200

158

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

SOx emissions☆

306-2

109MJ

Number of green procurement items adapted at construction design stage

Item/PJ

9.7

10.0

11.7

11.7

304-3

Number of projects contributing to biodiversity improvement

Projects

—

52

44

72

307-1

Number of environmental accidents  

Cases

0

1

0

0

102-11

Acquisition rate of ISO 14001 certification

％

100

100

100

100

*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)
For calculation standards and third-party
2. ET= Environmental Targets
warranties for environmental data andindicators such as environmental targets
3. The FY2021data of items with ☆ mark has obtained third-party assurance.
(ET), material flows, and CO2 emissions,please visit our website.

Environmental Data

▎ Data on Social Contribution and Governance
Human Resources Data (Non-Consolidated / Partial Consolidated)
GRI

Indicators

(FY)

Unit

405-1

102-8
405-1

14,562

14,62014,518

4,161

4,257

4,263

Building Construction business (consolidated)

8,123

8,163

8,160

8,103

Real Estate Development business (consolidated)

2,056

2,074

2,044

1,979

146

164

159

173

11,906

11,971

11,95911,822

Male (consolidated)
Female (consolidated)

2,527

2,591

2,661

2,696

Japanese employees (consolidated)

13,567

13,658

13,692

13,585

Persons

866

904

928

933

8,490

8,507

8,572

8,579

Civil Engineering business

2,298

2,273

2,323

2,324

Building Construction business

6,040

6,072

6,084

6,084

Real Estate Development business

152

162

165

171

6,949

6,937

6,970

6,955

Non-Japanese employees (consolidated)

Male
Female

1,541

1,570

1,602

1,624

Japanese employees

8,391

8,394

8,457

8,454

Non-Japanese employees
Twenties

102-7

Thirties
Forties%

Fifties or more
102-8

2021

4,108

Number of employees
102-7

2020

14,433

Other businesses (consolidated)
102-8

2019

Civil Engineering business (consolidated)

Number of employees (consolidated)
102-7

2018

Number of non-regular employees

97 T A I S E I ANNUA L R EPORT 2022

Persons

99

113

115

125

16.5

17.1

18.0

18.5

19.0

19.2

19.7

20.4

30.1

26.3

22.8

21.0

34.4

37.4

39.4

40.1

1,134

1,173

1,288

1,255

About the Taisei Group

Aiming to Realize Our Vision

Sustainability Section

Governance Section

Data Section

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

Indicators

401-1

Number of hires (new graduates)

Unit

(FY)

2018

2019

2020

2021

251

264

329

302
253

—

Male

207

215

270

405-1

Female

44

49

59

49

30

27

11

28
23

401-1

Number of mid-career hires

Persons

—

Male

29

22

11

405-1

Female1

50

510,512

10,103

9,850

9,635

43.0

43.0

43.0

43.0

43.3

43.3

43.3

43.3

41.8

41.8

41.6

41.5

—

Average annual salaryThousand yen

Average age

—

Male

405-1

Years old

FemaleAverage service years

—

Male

405-1

Years

FemaleTurnover rate (Taisei Group)*6
Turnover rate*7

401-1

%

Turnover rate of employees within three years of hiring*6

18.3

18.3

18.3

18.2

18.6

18.7

18.8

18.8

16.6

16.5

16.2

15.9

—

—

—

2.1

1.1

1.2

1.2

1.5

5.4

7.4

7.6

8.3

*6 The scope of coverage: Taisei Corporation and seven major Group companies.
*7 Voluntary turnover rate

Number of Members of the Board, Audit & Supervisory Board Members, and Executive Officers
GRI

Indicators

Unit

2019
12

12

12

11

11

11

11

Female

1

1

1

1

4

4

4

4

Male

3

3

3

3

Female

1

1

1

1

6

6

6

6

Male

6

6

5

5

Female

0

0

1

1

4

4

4

4

Male

4

4

3

3

Female

0

0

1

1

58

59

58

63

58

59

58

63

0

0

0

0

Persons

Number of Audit & Supervisory Board Members

Number of External Audit & Supervisory Board Members

Persons

Number of Executive Officers
—

2021

12

Number of External Members of the Board

—

2020

Male

Number of Members of the Board

102-22

2018

(FY)

Male

Persons

FemaleData on Officer Remuneration (Non-Consolidated)
GRI

Indicators
Members of the Board

102-36External Members of the Board

(FY)

Unit
Million yen

2018

2019

2020

2021

755

741

814

738

46

58

62

62

Diversity and Inclusion Data (Non-Consolidated / Partial Consolidated)
2018

2019

2020

2021

KPI

Number of female managers

Persons

167

197

236

270

  AC*8

Female managers ratio

%

3.2

3.8

4.5

5.2

Number of female engineers

Persons

663

698

738

767

Female engineers ratio

%

9.1

9.5

9.9

10.2

—

—

—

2.10

2.33

2.35

2.20

2.27

739

800

862

878

2

3

3

4

GRI

405-1

Unit

(FY)

Indicators

  AC*8Rate 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*9%
Persons*8 AC: Action Plan based on The Act on Promotion of Women’s Participation and Advancement in the Workplace (Cabinet Office)*9 See glossary on p.102 for job returns.

TA I SE I A N N UA L R E P O R T 2 0 2 2 98

Data Section ESG Data

Childcare and Nursing Care Data (Non-Consolidated)
GRI

(FY)

Unit

Indicators

2018

2019

2020

2021

285

290

299

281

244

241

253

232

41

49

46

49

%

94.9

100

100

100
100

Number of employees taking leave for childcare
401-3

Persons

Male
FemaleRate of taking childcare leave—

KPI*10
AC*11

Rate of taking childcare leave by males
Average number of days of childcare leave taken by males
Rate of taking childcare leave by females

%

94.2

100

100

Days

—

—

—

9.7

%

100

100

100

100

97.7

99.7

100

99.7

100

100

100

100

97.5

97.9

100

97.9
45

Rate of return to work after childcare leave%

Male  

401-3

FemaleNumber of employees who use flextime for childcare (cumulative)

Persons

12

27

35

—

Number of employees taking nursing care leave

Persons

0

2

1

1

—

Number of employees taking paid nursing care leave

Persons

—

—

—

168

*10 KPI: Key Performance Index (2021 - 2023)*11 AC: Action Plan based on The Act on Promotion of Women’s Participation and Advancement in the Workplace (Cabinet Office)Data on Working Hours and Holidays (Non-Consolidated)

(FY)

GRI

Indicators

Unit

2018

2019

2020

2021

403-9

Total hours worked per month

Hours

192.8

193.9

194.1

190.9

Average overtime hours per month

Hours

37.8

39.0

39.8

38.5

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

%

—

—

25.4

22.6

Worksite implementation rate of a five-day work week (closed eight days infour weeks) (Building Construction)

%

—

—

—

26.6

Worksite implementation rate of a five-day work week (closed eight days infour weeks) (Civil Engineering)

%

—

—

—

49.5

Rate of paid leave utilization

%

47.5

46.2

46.5

49.3

—

KPI

Data on Training and Career in Capacity Development (Non-Consolidated)
GRI

Unit

Indicators
Total training hours for capacity development

404-1

Training hours per person—

Total training budget

—

Hours
Thousand yen

(FY)
2018

2019

2020

2021

—

261,059

233,143

231,706

36.6

30.5

27.0

26.7

—

—

—

298,937
4,360

Total number of trainees

Persons

—

—

—

404-2

Number of regular employees promoted from non-regular employees

Persons

45

28

20

38

404-3

Implementation rate of career development review

%

87.7

86.5

88.0

89.0

Data on Health and Safety Relations (Non-Consolidated / Partial Consolidated)
GRI

Unit

Indicators
12 13

Accident frequency rate (Taisei Group)* *Accident frequency rate*13—

Accident severity rate*13
403-9

KPI

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)*13

Cases

—

—

5

1

Number of fatal accidents*13

Cases

2

4

5

1

0

0

0

0

Contract employees*13
Number of fatalities at partner companies (specialized contractors)*13

403-6

2018

Number of occupational accident leaves (excluding fatal accidents)*12

Number of fatalities of regular employees*13

403-5

(FY)

Persons

0

0

0

0

2

4

5

1

1,025

1,049

1,063

1,200

Implementation rate of stress checks

%

89.8

90.2

91.6

91.0

Response rate of health awareness survey

%

—

—

—

100

Persons

—

—

—

21

Number of employees receiving safety and health training

Number of employees using the consultation services for female healthproblem (Femtech)*12 The scope of coverage: Taisei Corporation and six major Group companies.
*13 Aggregated from January to December

99 T A I S E I ANNUA L R EPORT 2022

About the Taisei Group

Aiming to Realize Our Vision

Sustainability Section

Governance Section

Data Section

Data on Technology Development and Intellectual Property (Non-Consolidated)
GRI

Unit

2018

2019

2020

2021

Research and development expenditure (consolidation)

Billion yen

12.4

13.5

14.2

15.1

Environmental technology development expenses

Billion yen

—

1.1

3.7

12.3

Cases

250

169

202

209

219

188

266

272

—

—

5

6

Indicators—

Number of patents registered
KPI

(FY)

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

Cases

Quality and Productivity Data (Non-Consolidated / Partial Consolidated)
GRI
416-1

Indicators
KPI

416-2
—

KPI

Customer satisfaction (Building Construction)

Unit
%

(FY)
2018

2019

2020

2021

92

88

90.0

90.0

96

98

98.6

97.6

Acquisition rate of ISO 9001 certification

%

100

100

100

100

Worksite registration rate of Construction Career Up System (CCUS*14)

%

—

75

100

100

Million yen

—

—

67

65

Customer satisfaction (Civil Engineering)

Productivity (net sales/number of employees) (Taisei Group)*15*14 See glossary on p.102 for CCUS. *15 The scope of coverage: Taisei Corporation and 19 major Group companies.

Community Activities, Volunteering Investment and Donations (Non-Consolidated)
GRI

Indicators

203-1

Expenditure on Community activities and volunteering investment

415-1

Political donations

Unit
Million yen

(FY)

2018

2019

2020

2021

700

838

492

787

—

18

18

18

Data on Ethics, Procurement Practices, and Human Rights (Non-Consolidated / Partial Group Companies)
GRI
102-16
205-1(FY)

Indicators

Unit

Participation rate of e-learning for the Group’s Structure of Values and Policies

%

97

94

94

95

Response rate of Corporate Ethics Helpline and Group Helpline (Taisei Group)*16

%

100

100

100

100

2018

2019

2020

2021

Cases

—

24

28

30

%

100

100

100

100

Number of dismissals due to corruption and bribery

Persons

—

0

0

0

Number of major information security accidents (Taisei Group)*17

Cases

0

0

1

0

Number of information security education sessions

Times

19

5

4

3

Supplier’s conformity rates with the Taisei Group Sustainability Procurement Standards (Taisei Group)*18 *19%

74.2*18

—

92.1

—

412-2

Human rights training precipitation rate

%

97.9

97.4

99.5

95.3

411-1

Cases of violation of the rights of indigenous peoples

Cases

—

—

—

0

205-2

Operational results of the whistleblowing and consultation system
KPI

205-3
418-1

KPI

—
412-1

KPI

Rate of participation in compliance training, including anti-corruption training*16 The scope of coverage: Taisei Corporation and 21 major Group companies. *17 The scope of coverage: Taisei Corporation and eight major Group companies.
*18 The scope of coverage: Taisei Corporation and seven major Group companies. *19 Figures for FY2018 are the average implementation rate of sustainability activities.

Data on Stakeholder Engagement (Non-Consolidated)
GRI
102-41
102-43

Indicators

(FY)

Unit

2018

2019

2020

2021

—

90.6

90.8

90.1

%

100

100

100

100

—

80.8

—

77.6

Percentage of all employees covered by collective bargaining agreements
Labor union participation rate
Employees satisfaction rate*20*20 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.

Ratio of Female Wages to Male Wages*21 
GRI

405-2

Indicators

(FY)

Unit

2018

2019

2020

2021

All employees

—

—

—

58.2

Regular employees

—

—

—

57.4

—

—

—

66.0

—

—

—

72.1

—

—

—

83.3

—

—

—

58.3

Career-track positions
Professional-grade positions%

Minor career-track positions
Non-regular employees*21 The wage gap between men and women is due to differences in average age, etc., but not to the system.

TA I SE I A N N UA L R E P O R T 2 0 2 2 100

Data Section Corporate Data / Stock Information (As of March 31, 2022)▎ Corporate Data

▎ Stock Information

Name
TAISEI CORPORATION

Number of Shares Authorized
440,000,000

Established
December 28, 1917

Number of Shares Issued
200,803,372 (including 299,814 treasury shares)

Paid-In Capital¥122,742,158,842

Number of Shareholders
65,986

Number of Employees
8,579 persons (non-consolidated)

Ownership Distribution⃝ Shareholder Composition

Number of Public Qualification Holders
・2,552 first-class architects
・1,877 first-class civil engineering construction
management engineers
・262 first-class construction accountants
Representative
Yoshiro AIKAWA,
President and Chief Executive Officer
Major Bases⃝ Head Office25-1, Nishi-Shinjuku 1-chome, Shinjuku-ku, Tokyo,
Japan
TEL. 81-3-3348-1111 (main number)⃝ Branches
Tokyo Branch (Shinjuku-ku, Tokyo)
Kansai Branch (Osaka City)
Nagoya Branch
Kyushu Branch (Fukuoka City)
Sapporo Branch
Tohoku Branch (Sendai City)
Chugoku Branch (Hiroshima City)
Yokohama Branch
Hokushinetsu Branch (Niigata City)
Shikoku Branch (Takamatsu City)
Chiba Branch
Kanto Branch (Saitama City)
Kobe Branch
Kyoto Branch
Kokusai Branch (Shinjuku-ku, Tokyo)⃝ Overseas Offices
Taipei Office
Philippine Office (Manila)
Singapore Office
Kuala Lumpur Office
Jakarta Office
India Office (Gurugram)
Middle East Office (Doha)
North Africa Office (Cairo)
Taisei Advanced Center of Technology(Yokohama City)
Major Subsidiaries⃝ Domestic subsidiaries  
Taisei Rotech Corporation (Shinjuku-ku, Tokyo)
Taisei-Yuraku Real Estate Co., Ltd. (Chuo-ku, Tokyo)
TAISEI U-LEC Co., LTD. (Minato-ku, Tokyo)
TAISEI SETSUBI CO., LTD. (Shinjuku-ku, Tokyo)
TAISEI HOUSING CORPORATION (Shinjuku-ku, Tokyo)
SEIWA RENEWAL WORKS CO., LTD. (Minato-ku, Tokyo)⃝ Overseas subsidiaries
VINATA INTERNATIONAL CO., LTD. (Vietnam)
TAISEI PHILIPPINE CONSTRUCTION INCORPORATEDTAISEI (THAILAND) CO., LTD.
PT. INDOTAISEI INDAH DEVELOPMENT (Indonesia)
TAISEI MYANMAR CO., LTD.

101 T A I S E I ANNUA L R EPORT 2022

Financial Institutions
65,604 thousand shares(32.67%)

Individuals and Others
46,685 thousand shares(23.25%)

Shareholder
Composition

Securities Companies
7,778 thousand shares(3.87%)

Foreign Corporations etc.
64,773 thousand shares(32.26%)

Other Japanese Corporations
15,961 thousand shares(7.95%)⃝ Stock Listings
Tokyo, Nagoya⃝ Code1801⃝ Transfer Agent
Mizuho Trust & Banking Co., Ltd.
Major Shareholders (Top 10)
Name of Shareholder

Number of Shares Held
(Unit: Thousand Shares)

Ratio of Shares Held(%)

The Master Trust Bank of Japan, Ltd.
(Trust Account)

32,45016.18

Custody Bank of Japan, Ltd. (Trust Account)

10,8505.41

Retirement Benefit Trust in Mizuho Trust(Mizuho Bank, Ltd. Account)

5,857

2.92

Taisei Associates’ Shareholding Plan

5,839

2.91

NORTHERN TRUST CO. (AVFC) RE
SILCHESTER INTERNATIONAL INVESTORSINTERNATIONAL VALUE EQUITY TRUST

4,967

2.48

Taisei Employees’ Shareholding Plan

3,730

1.86

State Street Bank West Client-Treaty 505234

3,203

1.60

Meiji Yasuda Life Insurance Company

2,847

1.42

NORTHERN TRUST CO. (AVFC) RE U.S.
TAX EXEMPTED PENSION FUNDS

2,841

1.42

Mitsubishi Estate Co., Ltd.

2,426

1.21

Note: The Company’s own shares (299,814) are excluded in calculating the Ratio of
Shares Held. The Company’s own shares of 299,814 exclude 104,300 shares of
the Company held by the Board Benefit Trust (BBT).

⃝ Green Bonds / Sustainability Link Loans
Taisei Corporation issued green bonds and signed sustainability-linked
loans agreement with the aim of raising awareness among a wide rangeof stakeholders about its environmental initiatives and contributing to
the realization of a decarbonized society.

Sustainable FinanceAbout the Taisei Group

Aiming to Realize Our Vision

Sustainability Section

Governance Section

Data Section▎ Glossary
This glossary briefly introduces the Taisei Group’s policies, unique terms related to technology and services, and initiativesof the construction industry.
BIM

Building Information Modeling (BIM) is a construction information database that links a 3D building model
created with a computer and attribute information including the specification, layout, and cost of building
components and equipment.

CIM/T-CIM®

Our proprietary system that integrates a construction system utilizing information and communications
technology Construction Information Modeling (CIM) with attribute information related to a threedimensional model of each construction project. T-CIMR® is construction method that employs CIM.

CO2 Zero Action

Environmental impact reduction activities conducted by all workplaces. There are seven actions such as
eco-driving, inspection and maintenance of heavy machinery and vehicles, and temperature setting controlof air conditioners.

DX Academia

An educational institution that leverages digital technology and data to develop digital talent that will drive
business, operational and corporate culture change. It collects human resources across the Group andtrains DX skills and minds through practical project training.

DX Promotion Committee

The Digital Transformation (DX) Promotion Committee is a cross-functional work committee established in2020 to promote various measures. It is scheduled to be held four times a year (in FY2022) with the
President and Chief Executive Officer as the chairman.

TAISEI OHSMS

Taisei Corporation’s proprietary occupational health and safety management system developed with reference
to guidelines from the International Labour Organization (ILO) and the Ministry of Health, Labour and Welfare.

TAISEI QUALITY®

A slogan that expresses in a few words the quality promotion activities of the Taisei Group as a whole. The
Group aims to earn the trust of customers and society by ensuring quality with pride.

T-iROBO Series

A series of work robots developed by Taisei Corporation for the purpose of cooperation between humans androbots. Systems to be installed in construction equipment include the T-iROBO® Roller, an unmanned
construction system in which vibrating rollers grasp the construction position and decide by themselves toautomatically carry out the rolling operation; the T-iROBO® Breaker, an unmanned construction system in whichconstruction equipment approaches the rock by itself and automatically crushes the rock simply by specifying
the rock to be split; and the T-iROBO® Excavator, an unmanned construction system in which excavation andloading are carried out automatically by recognizing the earth and sand in the pit and the loading machine.

Taisei Group
Green Procurement Guidelines

Guidelines for promoting the application of materials, equipment, and methods to reduce theenvironmental load during the design, construction, operation and demolition of buildings and structures.
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

Green Purchasing Standard
Guidelines

Guidelines that define important aspects of reducing the environmental impact when purchasing officesupplies, equipment, office automation (OA) equipment, etc., or receiving services for use in offices.

Health management overtime
hours

Overtime working hours used to judge whether or not measures to prevent health impairment (such as
face-to-face guidance by physicians) should be taken. They are the total of statutory overtime working
hours and holiday working hours.

Construction Career Up
System (CCUS)

A system to register and visualize the skills, experience and qualifications, status of enrollment in social
insurance programs, etc., of each of the skilled construction workers under uniform rules of the industry, tostrengthen cooperation with partner organizations.

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.

Worksite Net

An information sharing network that can be used by project participants inside and outside the Company, mainly
at construction sites. In May 2022, it was completely renovated and started to operate as Taisei Construction’s
own service from the external cloud service, which has further strengthened the efficiency of construction
management.

Taisei Group
Sustainable Procurement
Guidelines

A set of guidelines on what the Company and its suppliers should do together. They can be summarized as (1)compliance with laws, regulations, and social norms, (2) fair and impartial business dealings, (3) respect forhuman rights, (4) promotion of safety and hygiene, (5) commitment to environmental conservation, (6) ensuring
and improving safety and quality, (7) information disclosure, (8) commitment to information security, (9) activities
contributing to society, (10) business continuity in times of disaster, and (11) promotion of sustainable procurement.

Job Return

This is a system that provides employment information for the Company and its Group companies andoffers opportunities for employees to return to work if they wish to reenter the workforce due to theelimination or alleviation of reasons for retirement after having resigned due to various reasons.

Soyukai

Originated from the Harusamekai established in 1917, Taisei Corporation’s organization for its core
subcontractors was reestablished in February 2014 to strengthen 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 through cooperation with the Company’s business.

TA I SE I A N N UA L R E P O R T 2 0 2 2 102

［ On t he Co v er ］

This mountain range with its color gradationand spectacle perspective expresses“expansiveness,” “harmony” and “resilience.”

TAISEI CORPORATION
Planning Section,
Sustainability Planning Department,
Sustainability Management Promotion Division
URL : https://www.taisei.co.jp/english/

22.11.1900.A.S