CSR Activities for the Future

CSR Activities for the Future
To become a sustainable company while fostering and expanding a broader range of CSR activities, we began compiling a
CSR activity roadmap in FY2011, which we have subsequently implemented over time. In FY2012, we chose a number of key
issues based on international guidelines on corporate sustainability reporting published by the Global Reporting Initiative(GRI) as well as ISO 26000, an international standard on organizational social responsibility. We are currently working toresolve those issues.

■ Activity report for FY2017
Each department discussed CSR issues in line with those key issues and developed its own action program. At the end of theyear, those departments then conducted self-evaluations to assess how well they had implemented their programs. (The tablebelow outlines some of the results of that process.)
ISO 26000
core subjects

Consumer issues

Labour practices
and human rights

Environment
Community
involvement anddevelopment

41

FY2017 action program

CSR issue

Department

Corporate governanceSupport for measures to increase the effectiveness of
the Board of Directors

Planning
Division

Conduct a questionnaire targeting directors in order to increase theeffectiveness of the Board of Directors. Evaluate, analyze, and report on the
results to facilitate useful discussions at Board of Directors meetings.

We conducted a questionnaire targeting directors and held interviews asnecessary, evaluated and analyzed the results, and reported them to the Boardof Directors.

Compliance

Cultivation of a robust corporate culture

CSR
Division

Share formulations of Takumaʼs basic approach, for example Management
Principles, the Takuma Group Ethics Charter, and the Takuma Group Code of
Conduct, and work to ensure that they permeate the organization and take hold.

We highlighted the Management Principles, the Takuma Group Ethics Charter, andthe Takuma Group Code of Conduct in the CSR Report and in internal education
and worked to ensure that they permeate the organization and take hold.

Improvement of risk management techniques

Engineering
Division

Create a risk management chart for each project, identify risks, and implement
preventive measures.

We were able to keep risks from manifesting themselves by applying risk
criteria horizontally to each project. In addition, there were no complaints that
posed a risk of reduced customer satisfaction.

Review of risk management items in the ﬁeld,
evaluation and improvement of current conditions,and implementation of risk management

Construction
Division

Enhance the information included in construction plans for each project byidentifying risks associated with work in the ﬁeld in order to eliminate
accidents and disasters at construction sites, carry out audits to determine
whether safety activities are being conducted according to plan, and work to
implement improvements.

Although we identiﬁed risks in our safety and health plans, incorporated that information
into construction plans, audited safety activities in accordance with those plans, andworked to make improvements, accidents still occurred, preventing us from achieving ourgoal. Going forward, we will augment guidance and education for workers with education
for site managers while working to improve the safety awareness of partner businesses.

Information disclosure (fulﬁllment of accountability
requirements and assurance of transparency)

Appropriate disclosure of technical information tooutside parties

Engineering
Division

Work internally to disclose technical information in a timely and appropriate manneras a way to facilitate the announcement of such information to outside audiences.

We encouraged departments to submit ideas for presentations at meetings ofmajor academic societies and discussed development topics that seemedsuitable for presentation with the responsible departments.

Employee training on social responsibility

Promotion of understanding (awareness) of social responsibility
and recommendations of how employees can take the initiative
to found their behavior on an awareness of social responsibility

Marketing
Division

Have employees discuss what it means to take the initiative to found their
behavior on an awareness of social responsibility internally in their own
department in order to facilitate such conduct.

We held internal readings of the Takuma Group Ethics Charter and the Takuma
Group Code of Conduct, worked to raise awareness of social responsibility, andsought to promote conduct that accords with ethical principles.

Stakeholder engagement

Development of trusting relationships with customers

Engineering
Division

Have employees responsible for projects being researched organize associatedﬁndings (customer evaluations) and report internally so that the entire
department can study and implement countermeasures.

We completed an internal report on the results from the previous ﬁscal year at the
beginning of the new ﬁscal year and presented it to the QM Committee. The
evaluation of the coordinators in our department exceeded the corresponding targets.

Implementation of measures to address risks
associated with maintenance safety and quality

Engineering
Division

Share examples of problems that have occurred in the past and use that
information to prevent similar issues from occurring in the future and to
facilitate a rapid response in the event that they do.

We shared examples of problems that have occurred in the past at internal
meetings so that similar issues could be dealt with in a conﬁdent manner.

Improvement of construction quality

Construction
Division

Work to improve construction quality by carrying out voluntary inspections inthe ﬁeld and strengthening checks of the status of construction managementin the ﬁeld by internal coordinators.

We worked to improve construction quality by carrying out voluntary inspections
at all sites in the ﬁeld and having internal coordinators carry out checks of thestatus of construction management in the ﬁeld at least once a month, with theresult that we had no orders of additional work due to defective construction.

Assurance of understanding of, and compliance with,
the Antimonopoly Act

Marketing
Division

Provide training on the provisions of the Antimonopoly Act as necessary andwork to ensure that employee conduct accords with the “Regulations
Concerning Management of the Pledge of Antimonopoly Act Compliance.”

We offered training on the provisions of the Antimonopoly Act and worked to ensure that
employees understand the “Regulations Concerning Management of the Pledge ofAntimonopoly Act Compliance” and the “Regulations on Managing Contact with
Competitorsʼ Sales Departments” and that they will comply with those and other regulations.

Observance of fair trade practices with customers

Marketing
Division

Provide training on topics such as preventing bribery and work to ensure anawareness of the importance of compliance permeates the department.

We offered training on topics such as preventing bribery and worked to ensure
an awareness of the importance of compliance permeates the department
while carrying out fair business practices with customers.

Observance of fair trade practices with suppliers andother business partners

Procurement
Division

Host regular training sessions on basic contracts to increase individual
employeesʼ awareness.

We held a workshop but did not verify employeesʼ understanding by creating a
test, so we will hold another workshop next year and gauge understanding
with a test.

Respect of property rights

Protection and utilization of intellectual property
rightsEngineering
Division

Offer training related to intellectual property rights to improve and maintainemployeesʼ awareness of the importance of protecting those rights.

We held a course on patent basics for new employees as part of new-hiretraining in an effort to increase employeesʼ knowledge and awareness.

Appropriate employment relationships and labor conditions(including safety and health, social dialog, etc.)

Encouragement of diversity

Human Resources
Division

Host information sessions about the company for female college students.

We held an information session for female college students and had female
employees visit a university laboratory to speak to students.

Development of additional skills and expertise in
making proposals

Marketing
Division

Work to improve the skills of department employees tasked with responsibilities inthis area by offering training to improve those skills and sharing skills and expertise.

We worked to share proposal expertise and information about topics such as
the latest technologies by holding internal lectures as necessary.

Training and skill development for employees

Construction
Division

Summarize concerns arising during product inspections and commissioning along with measurestaken in response on internal memos, share the information with department employees atinternal meetings and other gatherings, and disseminate it to other involved departments.

We spread information about quality control problems and examples, encouraged
employees to prevent recurrences through monthly internal meetings, and increased plantquality by spreading information about problems that have occurred during commissioning.

Development of structures for managing environmental
considerations and reduction of environment impacts

Compliance with environmental laws and regulations

Manufacturing
Division

Patrol company sites while offering guidance in order to ensure that novehicles are left idling.

The number of violations fell from the previous ﬁscal year, indicating that the practiceof turning off the engines of parked vehicles has become established as habit.

Contributions to resolving environmental
problems

Implementation of initiatives to reduce environmental
impacts

Engineering
Division

Formulate and propose plans for new technologies and businesses that would
allow us to help reduce environmental impacts in the environmental and energy
ﬁelds while differentiating ourselves from competitors in the same industry.

Although we achieved our goal, we will work to develop plans that will enable
us to make a greater contribution to the environment.

Contribution to society

Contribution to the communities around our worksites

General Affairs
Division

Help improve the environment in nearby areas by carrying out clean-up
activities in areas near worksites.

We helped improve the environment in the nearby area by carrying out
clean-up activities in areas near worksites.

Risk management

Safety and quality of products and services

Compliance with the Antimonopoly Act

Fair operating
practices

Going forward, we plan to implement CSR activities using techniques that we consider appropriate while relying on
guidance and advice from outside experts as we choose key issues and develop CSR issues and action programs.
The global business environment that characterizes the environmental and energy ﬁelds in which Takumaʼs business
operates grows increasingly diverse day by day, and that environment remains one of intensifying competition. Our
technological capabilities in the environmental and energy ﬁelds, which we have reﬁned over many years of experience, form
the basis of our CSR management as well as our greatest strength as we look to make a broad contribution to society. We willcontinue to draw on this strength in our activities going forward.

Fair business relationships with customers
and business partners

Employee skill development(skill enhancement)

TAKUMA CSR Report 2018

Action plan

Self-evaluation of results

TAKUMA CSR Report 2018

CSR Activities
for the Future

Organizational
governance

Key issue■ Future issues

42

CSR Activities for the FutureGroup Company CSR Topics
This section introduces messages from the presidents of major Takuma Group companies describing issues they haveidentiﬁed in the course of pursuing CSR activities and how they are working to address them.

■ Takuma Engineering Co., Ltd.
●

Established
Businesses●

Employees●■ Energy Mate Co., Ltd.

September 11, 1969
Design of waste treatment plants, water treatment plants,
energy plants, and general-purpose boilers
50 (as of March 31, 2018)■ Message from the President●

Established
Businesses●

Employees●■ Message from the President

Yoshihito FukumaWeʼre involved with designing industrial machinery that helps protect the environment and save energy. Since
we believe human resources are the most important management resource in design operations, our CSR
activities are focused on improving employeesʼ skills and ensuring that they can make the most of those abilities.
Weʼre working on a companywide basis to facilitate open communication, to develop the habit of taking theinitiative to improve the way things are done, and to put in place an environment that makes it easy for
employees to do their jobs. Weʼre also trying to create novel products by valuing individual employeesʼ ideas andmaintaining diversity.

●

Established
Businesses●

Employees●

Our company was founded with a core business of offering comprehensive onsite energy services
for consumer cogeneration and boiler products. Our goal is to provide ideal energy andcogeneration (solutions that provide both heat and electricity) to stakeholders, and since 2005 wehave also operated a steam supply business using biomass boilers. We work around the clock to help
prevent global warming together with the site users who are our customers. Our CSR activities
consist of offering services that let us contribute to customersʼ businesses by meeting needs in a
ﬁne-grained manner while verifying system effectiveness.

■ Taiden Environtech Co., Ltd. (Taiwan)

April 13, 1994
Development of computer software
Design, manufacture, sale, construction, and management ofelectrical control systems
24 (as of March 31, 2018)■ Message from the President

Established
Businesses● Employees●●

Norito Uchiyama■ Kankyo Sol-Tech Co., Ltd.
●

Established
Businesses●

Employees

Kiyomitsu Ikawa

We carry out environmental analysis and testing on a contract basis, and our reports play an important rolein the precise assessment of environmental conditions. Recognizing the importance of that responsibility, we
endeavor to do our jobs in a fair and appropriate manner by maintaining state-of-the-art equipment, training
employees in specialized skills and technologies, helping them earn associated qualiﬁcations, and ensuringthat they acquire and share knowledge about related laws and regulations. In this way, we strive in asustained manner to maintain and improve the quality of our services and to comply with norms of conduct.
Weʼve earned certiﬁcation under international standards such as ISO/IEC 17025 to assure the reliability of
the calibration services we provide, and we look forward to continuing to support the development of asustainable society and to consistently offering reliable calibration service of the highest caliber.

43

TAKUMA CSR Report 2018

Taiden Environtech Co., Ltd., is helping protect and improve the environment in Taiwan byoffering maintenance for waste incineration plants on the island. Weʼre working to provide safe,
conﬁdence-inspiring service based on extensive experience to meet the expectations of customers
and all other stakeholders and to provide optimal equipment maintenance so that the waste
incineration plants we maintain will perform to speciﬁcations over the long term.

■ Siam Takuma Co., Ltd. (Thailand)

April 5, 2000
Measurement and analysis of environmentally hazardous
substances (dioxins, asbestos, wastes, trace substances, etc.)
and general environmental measurement and testing
45 (as of March 31, 2018)■ Message from the President

January 26, 1988
Maintenance of waste treatment and other facilities
15 (as of March 31, 2018)■ Message from the Chairman Yasuo Takamatsu

As a member of the Takuma Group, we manufacture plant control systems for use in waste
treatment and develop and produce application software.
Our goal is to create a better tomorrow by harnessing the extensive expertise weʼve developed todate so that we can creatively accommodate a variety of changes in the business environment andcustomer needs and thereby achieve sustained growth.
Our employees are committed to working together to develop along with customers and to create
products that satisfy all stakeholders so that we can help create a rich and satisfying society that is
also environmentally friendly through our business activities.

●

Hiroaki Nanjo

CSR Activities
for the Future■ Takuma System Control Co., Ltd.

June 27, 2001
Onsite energy services for package boilers
and solutions-related businesses
8 (as of March 31, 2018)●

Established
Businesses●

Employees●

August 6, 2002
Sale of energy and environment-related plants, sales of parts
for the same plants and after-sales service
19 (as of March 31, 2018)■ Message from the Managing Director

Masahide Okamoto

Are we a reliable company for customers, business partners, employees, and other stakeholders? I
believe that answering this question lies at the heart of CSR. Particularly when operating overseas,
companies are called upon to engage in business activities that are founded on an understanding oneach countryʼs unique laws, culture, and characteristics. Acting with responsibility based onadequate preparations and fulﬁlling accountability with regard to those activities are essential inorder to be reliable, and we will strive to live up to all of our responsibilities as a member of the
Takuma Group.

TAKUMA CSR Report 201844

Corporate GovernanceCorporate GovernanceInternal Control

As of June 27, 2018, the Board of Directors was comprised of six
directors (excluding directors who are members of the Audit &Supervisory Committee) and four directors (of whom three wereoutside directors). The Board of Directors meets regularly once amonth as a rule and whenever else it is necessary to make decisions
about important issues related to business management and issues
established by law and ordinances, as well as to oversee theexecution of the directorsʼ duties.
In order to accelerate management decision-making and clarify
where management responsibilities are placed, we have adopted an
operating ofﬁcer system in which we appoint operating ofﬁcers whoare entrusted with the responsibility of executing our businessactivities. As of June 27, 2018, there were 14 operating ofﬁcers(including those who also serve as directors). Moreover, we have alsoestablished a Committee of Executive Ofﬁcers, which is chaired by
the president/chief operating ofﬁcer, as an organization that
deliberates matters that are brought up at meetings of the Board of
Directors and other important issues related to the execution of ourbusiness activities. This committee communicates and provides
direction about items decided by the Board of Directors and otherimportant items related to the execution of our business activities
appropriately to the divisions that are to execute them.

An Audit & Supervisory Committee that consists of four members,of whom three are outside directors, is responsible for accounting
and operational audits. Members of the committee attend important
meetings, including those of the Board of Directors and theCommittee of Executive Ofﬁcers, and they strive to understand andobserve the status of business execution in a timely and appropriatemanner. Drawing on their professional background and experience,
they express their opinions as necessary from an objective
perspective, and they conduct strict auditing of the businessexecution performed by the directors.
To facilitate the effectiveness of audits carried out by the Audit &Supervisory Committee, the president holds regular meetings withcommittee members to ensure good communication, and we haveestablished an Audit & Supervisory Committeeʼs Ofﬁce to provide
staff to help carry out the committeeʼs work.
In addition to the above, we have established a Human Resources& Remuneration Advisory Committee comprised of independentofﬁcers, representative directors, and the ofﬁcer in charge of humanresources. The committee works to increase transparency andobjectivity in the selection of candidates for director and operatingofﬁcer positions and in the determination of compensation as well as
to enhance the supervisory function of the Board of Directors.

General Meeting of Shareholders
Appointment
and removal

Reporting

Reporting andstatement of views

Appointment
and removal

Reporting

Reporting
Auditingandsupervision

Board of Directors

AdviceSelection,
dismissal,
andsupervision

Audit & Supervisory
Committee

Advisory Committee

Representative
Directors
Committee of Executive Ofﬁcers(Deliberation of important matters)

Issuance of
instructions andcommunicationof information

Audit & Supervisory
Committeeʼs Ofﬁce
Cooperation

Auditing of accounts

Auditing

Reporting

Regular meetings are held once a year. The person in
charge of promotion receives reports on the status ofcompliance and CSR promotion company-wide, as well ason the status of the implementation of compliance and CSR
promotion education for the past year, etc., and participantsdeliberate on a promotion plan for the current ﬁscal year.
Promotion members convene departmental meetings oncea quarter, with educational training aiming at the permeationof compliance and CSR in each department. After
departmental meetings, promotion members implement
compliance and CSR promotion education in their respective
departments using training materials or in-house educational
materials and report the result to the Secretariat.
We are also pursuing awareness-raising and educational
activities targeting Group companies through our Takuma
Group Coordinating Committee for Compliance & CSR
Promotion to ensure thorough compliance and risk
management throughout the Group.

Board of Directors
President

Committee of Executive Ofﬁcers

Compliance & CSR Promotion Organization
Internal Auditing
Department

Internal Auditing

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

Compliance & CSR
Promotion DivisionInternal auditing

Secretariat (CSR Department)

Observing andguidance

Education,
instructions, andreporting

Takuma Group
Coordinating Committee forCompliance & CSR Promotion

Each division and center
Each department

Compliance & CSR Promotion Administrator (division or center manager)

Compliance & CSR Promoters (department manager)
Enlightenment/education

Staff members

Divisions and centers

Corporate governance structure
TAKUMA CSR Report 2018

Led by the department in charge of compliance and CSR
promotion (CSR Department), Takuma aims at
encouraging that activity through the Compliance & CSR
Promotion Organization that was installed for the purposeof enabling compliance and CSR to concretely permeate
company-wide through an in-house organization.
This organization is composed of a chairman (theExecutive Manager of the Compliance & CSR Promotion
Division), a secretariat (positioned in the CSR
Department), and an executing organization in eachdivision, center, and department.
As the person in charge of promoting compliance andCSR in his or her division, each division or center manager
is appointed as a Compliance and CSR Promotion
Administrator. As persons who implement awareness andeducation in compliance and CSR in their respective
departments, department managers are appointed as
Compliance and CSR Promoters.
The meetings conducted within this mechanism include
regular meetings and departmental meetings.

ReportingExecution of
responsibilities

45

Compliance & CSR Promotion Structure

Various committees

Reporting

ReportingDiscussion of andreporting onimportant matters

Executive Ofﬁcers

Accounting Auditors
Cooperation

Assistance

Recommendations

Discussion
Human Resources &andRemuneration
reportingAppointment
and removal

Reportingemergency headquarters are established with the company
president as the director in charge of risk management, andan organization is put in place in order to minimize andprevent further damage through prompt action.
Internal control, constructed and evaluated in order toreport on and prevent misstatements in our ﬁnancial
reporting, is based on the Financial Instruments andExchange Act. This internal control on ﬁnancial reportingfor the Group has resulted in reports that indicate thissystem has been effective.
In this way, we will continue to work in the future toensure thorough compliance while carrying out businessproperly and efﬁciently while also deepening risk
management.

Corporate
GovernanceAppointment
and removal

Takuma has adopted a Basic Policy for Establishment ofan Internal Control System (the full text is available on our
website) in accordance with the Companies Act. We
continue to review and improve this policy in response tochanging circumstances.
Working towards thorough compliance, Takuma built acompliance promotion organization in FY2006 in order tocontinuously implement enlightenment and educational
activities that make corporate ethics, related laws andordinances, and internal rules fully understood. To control
the danger of loss, we have also prepared a “RiskManagement Code” that determines the person in charge ofeach risk, and we set up our risk management organizationaccording to that Code. When the unexpected occurs,(As of June 27, 2018)

Compliance & CSR promotion structure
TAKUMA CSR Report 201846

Corporate GovernanceRisk Management Structure

Business Continuity Plan (BCP)

Takuma follows a “Risk Management Policy” that connects company-wide risks and separately classiﬁes them into “projectrisks” related to our core business, i.e., plant construction; “DBO project risks” and “DBO project operation, maintenance andmanagement risks” related to our DBO business; and “potential risks,” “actualized risks,” and “ﬁnancial reporting risks” related
to other corporate business activities.
We are also building a risk management organization and constructing a system of risk management and promoting thestrengthening of management for group companies as well through our Takuma Group Coordinating Committee forCompliance and CSR Promotion.

Takuma has formulated a “Business Continuity Plan” based on the following policies to ensure proper and appropriate
continuity of business operations in the event of a large-scale disaster, pandemic, or other emergency:

Risk Management Policy

1. In addition to implementing disaster-related measures to secure the safety of corporate ofﬁcers and employees,
maintain structures so as to enable continuity of business operations while minimizing damage in an emergency.
2. Strive to respond to customer needs and recover from damage quickly by working closely with suppliers and partnercompanies to continue business operations.
3. Earn the trust of numerous stakeholders, including employees, their families, shareholders, and nearby residents, andfulﬁll social needs by continuing business operations.

【Disaster rule system diagram】［Basic purpose of risk management］
Risk refers to all phenomena that interfere with the groupʼs ability to achieve its business objectives or cause losses orharm to the interests of stakeholders.
The Takuma Group practices risk management with the goal of increasing its corporate value by working to maximize
returns while minimizing the negative impacts of risk.

Risk Management Policy
Risk Management CodeCrisis Management Code［Risk management action guidelines］
1. The president and CEO is responsible for risk management at Takuma.
2. All ofﬁcers and employees participate in risk management activities.
3. Risk management activities are carried out in accordance with applicable guidelines such as the Risk Management
Rules.
4. Risk management activities are carried out in line with the Medium-Term Management Plan and annual plan, and wework to make improvements on an ongoing basis.
5. When risk manifests itself, we respond by taking responsible action quickly to minimize any damage and creating
provisional organizational entities as necessary.
6. Group companies carry out risk management activities in accordance with their own policies and plans, with support
from Takuma.

Overseas Risk Management CodeDisaster Prevention Management Code* Based on Fire Service Act
Enforcement Regulations

Fire Prevention Plan

BCP activation

Storm and Flood Damage Countermeasure Manual
Novel Inﬂuenza Countermeasure ManualBusiness Continuity Plan
(BCP)

Corporate
Governance

Earthquake Countermeasure Manual

Safety Conﬁrmation System Administration Rules

Board ofDirectors

Reporting

Request for
decision/
reportingPresident

Committee of Executive Ofﬁcers
Request for
decision/
reporting

Evaluation

Report oninternal
controlevaluation
concerning
ﬁnancial
reporting

Reporting

Reporting

Risk Management Department

Internal Auditing
Department

Planning/
reporting

Project risk
DBO Project risk
DBO Project operation,
maintenance and management risk

Potential risk

Risk management structure

In keeping with the “Takuma Group Code of Conduct,” we provide our shareholders and investors with accurate corporate
information in a timely and fair manner. As a part of this, we provide notiﬁcations on the convening of General Meetings ofShareholders, balance sheet information, timely disclosure information, marketable securities reports, annual reports in English
and other business information, all on our website.
[Takuma website > IR information]
http://www.takuma.co.jp/english/investor/index.html

Eachdivision

Treasury stock:
0.1％
Individuals, others:
9.3％

Financialreportingrisks

Evaluation

Takuma Group Coordinating
Committee for Compliance & CSR
Promotion (including risk matters)

TAKUMA CSR Report 2018

Risks
concerning
corporate
activities

Actualized risk

Evaluation

47

IR Activities

Risk Management Code, Crisis Management Code
Project Risk Management CodeDBO Project Risk Management CodeRisk Management Code for DBO Project Operation,
Maintenance and Management

Financial institutions andstock brokerages:
44.7％

Corporations in Japan:
14.9％

Group
companies
Foreign individuals:
31.0％

Shareholders Report

Composition of shareholders(as of March 31, 2018)

TAKUMA CSR Report 201848

Corporate GovernanceDirectors and Executive Ofﬁcers(as of June 27, 2018)■ Directors■ Executive Ofﬁcers

Takashi Manabe

Ryoji TaniManaging Executive Ofﬁcer

Managing Executive Ofﬁcer

Mitsuaki Adachi

Managing Executive Ofﬁcer

Executive Ofﬁcer

Corporate
Governance

Norito Uchiyama

Akira Taguchi

Hidetoshi Tomita

Executive Ofﬁcer

Executive Ofﬁcer(Back row, from the left)

Minoru Murata

Hiromichi Satake Koji Tanaka

Osamu Iwahashi Yasushi Enomoto

Outside Director(Audit & Supervisory
Committee Member)

Outside Director(Audit & Supervisory
Committee Member)

Outside Director(Audit & Supervisory
Committee Member)

Director
Executive Ofﬁcer

Director(Audit & Supervisory
Committee Member)(Front row, from the left)

49

Tsuyohito Nishiyama

Kengo Numata

Takaaki Kato

Hiroaki Nanjo Hideki Takeguchi

Director
Managing Executive Ofﬁcer

Director
Executive Vice President

Representative Director
President andChief Executive Ofﬁcer

Director
Senior Managing
Executive Ofﬁcer

TAKUMA CSR Report 2018

Norio Maeda

Kunio Hamada

Executive Ofﬁcer

Executive Ofﬁcer

Director
Managing Executive Ofﬁcer

TAKUMA CSR Report 201850

Human Rights and Labor Practices

Respect for Human Rights and the Abolition of Discrimination
Our company sets out its respect for basic human rights
and prohibition of discriminatory acts in the Takuma Group
Ethics Charter, Takuma Group Code of Conduct and labor
regulations. In addition, we also support respect for humanrights, without contributing to human rights violations,elimination of forced labor/child labor and the abolition of
discrimination through participation in the UN Global
Compact. We are also working to promote employment of
disabled and elderly individuals.

●

Programs to boost employee skills

Takuma Group Ethics Charter (excerpt)

4. We shall respect fundamental human rights andnever practice discrimination.
●

Takuma Group Code of Conduct (excerpt)【Respect for basic human rights】
9. Prohibition of discriminatory actions
10. Respect of individuality, personal quality and privacy

1. Grade-speciﬁc educational programs
We work to boost employee skills through grade-speciﬁc educational programs that mark career milestones, startingwith new-employee training and moving on to a technical presentation at the two-year mark, a thesis discussion at theﬁve-year mark, a presentation at the 10-year mark, and mid-career training. We also work to improve management
skills by offering training to management candidates.

11. Safe work environmentNew-employee
training

Lecture on harassment

Technical presentationby 2-year
employees

Thesis discussionby 5-year
employees

Presentation by
10-year employees

Mid-career
training

Management
training

In January 2018, we invited attorney Yukiko Higashioka of Koyano LPC to deliver a talk on
harassment entitled “Compliance and Harassment.”
She explained laws related primarily to sexual harassment and power harassment in speciﬁc
terms and included information about Takumaʼs regulations and systems, providing an
opportunity for employees to learn about preventing harassment and how the company
responds to such allegations.

Working with Our Employees

2. Technical training sessions

Takuma is implementing a variety of measures to enable each and every employee to make the most of his or her abilities
and to approach his or her job with motivation and interest.

At the beginning of each ﬁscal year, employees meet with their supervisor to determine their objectives for the year based on theirdepartmentʼs policies. They also participate in a midyear interview with their supervisor in September and in an interview thefollowing March to reﬂect on the year, with the supervisor offering feedback by evaluating their job performance. In this way,supervisors work to train and motivate their subordinates through two-way communication.

Implementationof objectives

Midyearinterview

Implementationof objectives

Evaluation

Feedbackinterview

2. Self-reporting system
We have introduced a self-reporting system that allows employees who have worked for the company for at least three years tocommunicate their thoughts on their future career path directly to the company every three years. Through this system we areworking to assess employeesʼ awareness, needs, and issues and to apply that information to human resources measures.

3. Work group transfer system
We have created a work group transfer system to facilitate movement from clerical and labor positions to the main career track sothat motivated and skilled employees can make use of their abilities regardless of their gender or academic background. We also
provide opportunities for employees to be promoted to management positions.

4. In-house commendation system
Each year on June 10, the anniversary of the companyʼs founding, we recognize employees
who have helped improve the companyʼs performance; done something exceptional outside thecompany; earned qualiﬁcation as a professional engineer, doctoral degree, patent, or otheraccomplishment; worked for the company continuously for a certain number of years; authoredan exceptional paper; supervised an accident-free site; or otherwise earned recognition.

51

TAKUMA CSR Report 2018

We offer a course to help employees prepare to earn certiﬁcation as professional engineers, with employees who
have already earned those qualiﬁcations offering guidance on solving examination questions and conducting
simulated oral examinations.

Human Rights andLabor Practices

the cost of license and qualiﬁcation examinations and by offering incentives to employees to earn such qualiﬁcations.

1. Objective management and human resources evaluation system

Establishmentof individual
objectives

3. Skill improvement support structures
We work to improve employeesʼ skills by helping them earn public qualiﬁcations, for example by reimbursing them for

Systems designed to boost employee motivation

Organizational
objectives

We hold technical training sessions in order to increase employeesʼ technical knowledge, including lectures byuniversity professors and outside researchers and presentations by Takuma engineering employees about their work
responsibilities and research themes.

Workstyle reform initiatives
1. Initiatives to correct excessive working hours
In addition to having the Human Resources
Department interview employees with excessive
working hours and their supervisors to assess thecauses of the phenomenon, we are pursuing initiatives
to study and implement corrective measures and toverify their effectiveness.

2. Initiatives to encourage employees toutilize annual leave and other programs
During the second half of FY2016, we began
implementing a measure to have employees
systematically utilize ﬁve days of the time off theyʼreallowed under annual paid leave and other programs.

Employee health initiatives
In addition to stress checks and examinations to assess the risk of adult-onset diseases, our annual health checkups include
cancer and gastric checks for employees who wish to have them.
We also hold health consultations by an occupational physician (once a month) and counseling sessions by a clinicalpsychologist (twice a month) as part of our commitment to facilitating employeesʼ physical and emotional health.

TAKUMA CSR Report 201852

Human Rights and Labor Practices

Efforts for Occupational Safety and HealthWorking with Our Employees
Initiatives to promote the participation of
female employees in the workplace

Occupational safety and health initiatives
Since FY2006, we have introduced TK-COHSMS based on an occupational safety and health management system for theconstruction industry and worked actively and independently to improve our safety and health activities. We believe that among
these efforts, the manner in which (1) safety inspections, (2) mandatory safety and health education (education for construction
site representatives), and (3) creation of pre-work safety procedure checklists known as SSAs have been steadily adopted by all
departments and used to consistently improve the level of knowledge about Takumaʼs safety and health is particularly noteworthy.
We have adopted the following safety and health objectives for FY2018: for construction sites, eliminating accidents that
result in work stoppages (of four or more days); for branches, pursuing a thorough program of safety and health education,
ensuring adherence to safety inspection guidelines, and implementing the branch safety patrol plan; and for the Safety and
Health Cooperative Association, strengthening collaboration with partner companies. We will work to revitalize safety andhealth activities throughout the company by carrying out that role.
Rather than contenting ourselves with the status quo, we will pursue new safety and health initiatives to foster a deep
awareness of the concept that underlies our safety and health policy̶“understanding the need for respecting people andgiving top priority to safety and health”̶on the part of everyone whoʼs involved in our operations.

We have formulated and made available a general employer action plan inaccordance with the Act on Promotion of Womenʼs Participation and Advancementin the Workplace, and we have worked to deepen understanding of the company
on the part of women by including information about talks by female employees
on our recruiting website and by holding information sessions for female college
students. In addition, we are working to increase the number of female employees
in management positions and the number of female employees on the main career
track (including individuals who have been tentatively offered positions) as ofMarch 31, 2021, to 20, which would be double the corresponding number as ofMarch 31, 2016, by putting in place a workplace environment that allows ﬂexible
workstyles and continued employment by women, for example by expanding
eligibility for our ﬂex time system.

A talk by a female employee (top) andan information session (bottom)

Promoting employment of senior citizens●

We have put in place programs to offer employees
who have left the company after reaching 65 yearsof age reemployment at Takuma and Group
companies.

1. Safety inspection system

Number of reemployed individuals over the past 5 years
FY2013

FY2014FY2015FY2016FY2017

Number of employees
reaching retirement age

8

12

11

3

5

Number of employees
desiring reemployment

6

10

10

2

5

Number ofreemployed employees

6

10

10

2

5

Child-raising and nursing care support measures
1. Reduced working hours and ﬂex time program
We offer reduced working hours to employees who are raising one or more children age two or younger as well as a
ﬂex time program for employees who are raising one or more children from age three through lower elementary school(through third grade). We also allow employees who are responsible for providing nursing care to a family member toutilize these programs.

2. Telework program
Since April 2015, we have allowed employees who are raising one or more children who have not yet begun
attending elementary school or who are responsible for providing nursing care to a family member to work from home
one day a week.
Impressions from an employee who has taken advantage of these programs

I have two infant children, and in our family, the hour between the time the kids wake up in the morning andthe time they leave the house, and the hour from the time we pick them up in the evening until we have dinnerare extremely difﬁcult, both physically and emotionally. By working from home, Iʼve been able to allocate timethat I would otherwise spend commuting to childcare and household chores during those times, and thatʼs been
extremely helpful by letting me reduce my wifeʼs workload.

We maintain a system where any construction or installation work starts
only after the safety and health manager or other responsible ofﬁcial ineach department conducts a successful safety inspection based on safety
and health plans for the construction or installation work as prepared byour primary partner companies.
We strive to ensure a safe work environment at all construction sites by
eliminating potential hazards and risk factors identiﬁed by thoseinspections before work begins.
●

A safety inspection meeting
Human Rights andLabor Practices

We offer the following work programs as support measures for employees with child-raising and nursing care responsibilities.

●

Safety and health activities and their results

FY2017
Number of safety inspections done: 160(Initial inspection pass rate: 94%)

2．Safety patrols and ﬁeld education
Based on an annual plan, safety patrols are carried out at worksites by the Safety and Health Committee (comprisedof committee members and advisors), Safety Control Department, and construction division along with safety
education in the ﬁeld in a precisely targeted and efﬁcient manner.
By focusing on the early discovery and elimination of risk in safety patrols and on the improvement of safety
awareness among workers through communication skills in ﬁeld education, these activities help ensure the safety of
Takumaʼs workplaces.
●

Number of safety patrols implemented in FY2017
By Safety and Health Committee (members, advisors): 28
By Safety Control Department:297
By construction division:
305

Social welfare programs that meet employee needs
We have introduced cafeteria-style social welfare programs as one way to meet a diverse range of employee needs. Thisapproach provides a ﬁxed annual allowance that employees can “spend” as they wish by choosing from a menu of beneﬁts that
includes support for self-study, child-raising and nursing care, healthy living, and ﬁnancial well-being.

53

TAKUMA CSR Report 2018

Field education

Safety patrols

TAKUMA CSR Report 201854

Human Rights and Labor Practices

Efforts for Occupational Safety and Health
3. Safety and health education (education for construction site representatives)

Message from a partner company

We continuously provide specialized safety and health education at branches and worksites to increase the levels ofsafety awareness and knowledge of our employees and partner companies.
As indicated below, more than 16,000 trainees have passed the completion exam. We are involved in a variety of
initiatives to put in place mechanisms for preventing accidents, including by assigning workers with extensive knowledge
in areas such as safety-related laws and ordinances to individual construction sites.
●

April, 2004 to March, 2018
Cumulative number of trainees:
33,362
Number of trainees passing the completion exam: 16,050

Toshiya Sakaguchi
President
Chokyu Chikuro Industries Co., Ltd.

Our company, which recently celebrated the 47th anniversary of its founding, focuses
primarily on repairing waste incineration facilities in western Japan. Our previous president
did business for many years with Takuma, and Iʼve learned much about a variety of topics
from Takuma since I ﬁrst joined the company, including furnace installation technology andsafety and health management.
Safety and health management activities are the responsibility of each company, and wecarry out branch safety patrols on worksites to check every aspect of the work going on there.
In addition, I believe it is our mission to keep tabs on each workerʼs state of health and to
conﬁrm that all rules are being followed and that SSA and KYK (hazard prediction activities)
are being carried out using the “genba, genbutsu, genjitsu” philosophy.
A major challenge for us going forward will be Japanʼs labor shortage, and weʼre particularly
focused on training young furnace installation technicians. With regard to strengthening
supervisor skills, we plan to do our best, both by offering in-house training and by
participating in site agent training offered by Takuma.
In closing, we will continue to strive in partnership with Takuma to create workplaces
where employees can work safely and with peace of mind and to complete installation workwith zero accidents by following the slogans of “avoiding injury” and “absolutely avoiding
causing injury.”

Message from Takumaʼs person in charge of procurement
Head Ofﬁce venue

Tokyo Branch venue

Takuma holds a Safety and Health Meeting to bring workers with safety- and health-related responsibilities together toimprove and share their safety and health awareness with the goal of ensuring worker safety and health and promoting thedevelopment of a pleasant work environment.
The FY2017 meeting included awards for partners who helped achieve zero-accident records at worksites and employees
who achieved zero-accident performance over many years as worksite managers along with a lecture entitled “Proper Use ofWork Safety Equipment” and a talk by an outside instructor entitled “Preventing Human Error: Preventing Errors throughTeamwork.” In addition, safety and health partner companies gave presentations on their safety and health policies and goals,
and all participants closed the meeting by chanting the FY2017 slogan and pledging to continue to work toward thoroughsafety and health management by utilizing TK-COHSMS.

Shinobu Arakawa
Manager
Section 4,
Construction Department (Osaka)

Takumaʼs safety results in recent years
During 2017, both the construction industry and Takuma beneﬁted from brisk business conditions. Although the total
number of occupational accidents, including accidents that did not result in work stoppages, fell compared to 2016, thenumber of accidents that impacted our safety record by necessitating work stoppages rose. In addition to enhancing our safety
and health management structures in order to halt this trend, we will work to ensure even more thorough risk management
through a uniﬁed effort by all involved so that we can redouble our resolve to eliminate occupational accidents.
15

Number ofcasualties(persons)

4.0

3.93
2.79

3.00

10

9

12
5

Presentation of a zero-accident record award

Pointing and chanting of the slogan by all participants
0

0.37
1
2013

0.79
3

1.13
3

0.03

0.02

2014

2.03

2015

2016

Takumaʼs safety results
55

TAKUMA CSR Report 2018

Human Rights andLabor Practices

Safety and Health MeetingWeʼre extremely grateful to Chokyu Chikuro Industries Co., Ltd., which has worked with
Takuma as a partner company for close to half a century, primarily by repairing furnaces at
waste incineration facilities.
Youʼve worked steadily to ensure the safety and health activities that Takuma carries out at
its worksites have taken root among your employees, and the results of this steady effort toraise safety awareness on the part of all workers in the ﬁeld has helped you continue to operate
without any accidents that resulted in a work stoppage for about 20 years. As a result of thistrack record, youʼve made a signiﬁcant contribution to our efforts to build safe workplaces.
Although there are many causes for concern as you continue to operate your business,
including the labor shortage in the construction industry, I hope that your company willcontinue to grow while thoroughly practicing and enhancing risk management to addresschanging conditions.

1.76

3.0 Takumaʼs
accident
frequency
2.0 rateandseverity
1.0 rate

0.0
2017 (Year)Year

Accident
frequency
rate

Accident
severity
rate

2013

1.25

0.23

2014

0.91

0.07

2015

0.92

0.21

2016

0.64

0.11

2017

0.81

0.18

∗ Accident frequency rate
Indicates the frequency with which accidents
occur as the number of fatalities caused byoccupational accidents per 1 million actual
working hours.
Number of fatalities
Total actual working hours

1,000,000∗ Accident severity rate
Indicates the seriousness of accidents as
the number of work-days lost per 1,000
actual working hours.
Total work-days lost
Total actual working hours

1,000

Reference: Nationwide accident frequency and severity rates
for the construction industry (general construction)
TAKUMA CSR Report 2018

56

The Environment
Basic Environmental Policy

Takumaʼs CO2 Reduction Technologies

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

We convert waste/biomass into energy and reduce CO2!

In 1 year, Takuma products

Environmental Philosophy
Takuma is committed to preserving the environment and realizing an afﬂuent society through business activities

cut about 5million tons!

under the Company Motto: “Value Technology, Value People, Value the Earth.”(Equivalent to the CO2 absorbed by about 350 million Japanese cedar trees*)

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

*Assuming one Japanese cedar tree absorbs 14 kg of CO2 per year.

■ Reducing CO2 with biomass power generation boilers
A classic example of biomass power generation can be found in sugar
factories. Factories that make sugar produce large quantities of residue fromsugarcane, the raw material used to make sugar. Sugarcane is crushed into apulp, and sugar is extracted in a mill. The remaining ﬁber is called bagasse
and can be used as boiler fuel. The steam produced is used as the plantʼs heatsource, and any remaining steam is used to generate electricity that is utilized
to operate the plant and, if any remains, sold to the electric power company.
The amount of power generated at sugar factories has grown greatly, with
examples of single plant that generates 50,000 kW.

In 1 year,

down about
4million tons!
CO2 reduction achieved by
Takumaʼs biomass power generation boilers

Environmental Management●

What is biomass?

Biomass is any recyclable organic material derived from aliving organism, but does not include fossil fuels, such as oiland coal. For example, even though CO2 is emitted if wood
waste products are incinerated, when trees grow again, they
absorb CO2 to offset the emissions from incineration, so
there is no increase in CO2 in the atmosphere. By using theheat produced by incinerating biomass to generate power,
the amount of power generated using fossil fuels can be
reduced, and this contributes to decreasing CO2.

Wood
chips
BagassePalm
kernelshellsEnergyBiomass-fueled power
generation boiler

The Environment

The situation concerning the acquisition of ISO 14001
Our Harima Factory has acquired ISO 14001 certiﬁcation and has been implementing environmental management activities
based on an environmental management system established to comply with international standards.
Our group companies Nippon Thermoener Co., Ltd., Takuma Technos Co., Ltd., and Dan-Takuma Technologies Inc. have alsoacquired ISO 14001 certiﬁcation.

●(as of end of FY2017)■ CO2 reduction from waste incineration plants
Garbage, or waste, is an important source of energy. About 500 kW** ofpower can be generated from one ton of garbage. In Europe and theAmericas, waste incineration plants are often called Energy from Waste (EfW)
plants, and recovering energy from garbage has become the norm. Waste
must be seen as a “resource,” so Takuma is seeking to be the best in the world
with our technologies to convert waste into energy and reduce CO2.
** Presumes waste with a caloriﬁc value of 8,800 kJ per kg and a power generation efﬁciency of 20%

1 ton ofgarbage
57

TAKUMA CSR Report 2018

Waste
combustion

About 500 kW of

In 1 year,

down about
1million tons!
CO2 reduction achieved by Takumaʼs municipal solid waste
incineration plants and industrial waste incineration plants(as of end of FY2017)

power generated
TAKUMA CSR Report 2018

58

The Environment■ Environmental accounting

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

■ Environmental data (non-consolidated)●

Total energy consumption●

Greenhouse gas emissions

●

6,000
(Tons-CO2 per year)(GJ per year)

120,000

80,00040,0000

Environmental accounting is the process by which companies and other entities recognize the cost of environmental conservation in
their business activities as well as the effects of those activities and measure and communicate them in as quantitative a manner as
possible (either in terms of monetary amounts or amounts of materials) with the goal of pursuing environmental conservation initiatives
in an efﬁcient and effective manner while maintaining a good relationship with society so as to facilitate sustainable development.
In FY2006, we introduced and disclosed our own environmental accounting system based on the “Environmental Accounting
Guidelines 2005” issued by the Ministry of the Environment. As our business activities mainly involve environmental conservation
plants and their equipment, Takuma Group employees have a signiﬁcant awareness of the need for environmental conservation, andwe have been implementing approaches toward such issues within the Takuma Group.

2014

2015

2016

2017

4,000

Item

2,000

(FY)

2013

The total energy consumption of the fuel and the electricity
consumed at Takuma during FY2017 fell slightly compared to
FY2016 levels. We will continue to promote energy savings
from here on out.

2014

2015

2016

2017

(FY)

The greenhouse gas emissions created by our company are
limited to carbon dioxide (CO2). The amount of CO2 emissions
in FY2017 fell slightly compared to FY2016 levels. We willcontinue striving to reduce CO2 emissions.

Waste generation●

Waste generation

900

90,000(m3 per year)(Tons per year)

Final disposal treatment

600

30

30,000

2014

2015

2016

2017

2013

(FY)

Our company sells recyclables and reusables from the waste
generated through its business activities to scrap dealers, while
outsourcing the treatment of non-recyclables and non-reusables
to haulers, processors and ﬁnal disposal dealers, in accordancewith the Industrial Waste Control Manifest system.

2014

2015

2016

2017 (FY)

Takumaʼs water consumption during FY2017 fell slightly
compared to FY2016 levels. Going forward, we will continue towork to lower our water use.

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

59

Dichloromethane (CAS No. 75-09-2)●

Toluene (CAS No. 108-88-3)

FY

2013

2014

2015

2016

2017

FY

2013

2014

2015

2016

2017

Emissions (tons per year)

0

0.3

0.4

0.4

0.5

Emissions (tons per year)

0.08

0.08

0.26

0.09

0.62

●

Environmental conservation effectEven as total environmental impacts must be reduced, it isnecessary from a business management standpoint to pursue
environmental initiatives that are characterized by a high degree of
economic efﬁciency. We report environmental efﬁciency using an
index calculated in accordance with examples provided by the
Ministry of the Environment in its Environmental Performance
Indicators Guidelines for Organizations.
At the Takuma Group, we calculate environmental efﬁciency as
the ratio of consolidated net sales to greenhouse gas emissions. In
FY2017, this value improved slightly compared to FY2016.
●

Xylene (CAS No. 1330-20-7)
FY

2013

2014

2015

2016

2017

Emissions (tons per year)

1.4

3.4

2.2

2.9

1.2

TAKUMA CSR Report 2018●17,19721,806
12,971
46,685
1,361,328
9,925
1,469,912

Takuma Co., Ltd. (Head Ofﬁce, other ofﬁces
including overseas sites and the Harima Factory)●

NIPPON THERMOENER CO., LTD.

●

Takuma Technos Co., Ltd.

●

Hokkaido Sanitary Maintenance Co., Ltd.

●

Takuma Technos Hokkaido Co., Ltd.

●SUNPLANT Co., Ltd.

●

Takuma Engineering Co., Ltd.

●

Takuma System Control Co., Ltd.

●

Dan-Takuma Technologies Inc.

●

Kyoritsu Setsubi Co., Ltd.

●

Kankyo Sol-Tech Co., Ltd.

●

Takuma Plant Service Co., Ltd.

[2 overseas subsidiaries]
Taiden Environtech Co., Ltd.
Siam Takuma Co., Ltd.
●●■ Environmental efﬁciency■ PRTR target substance emissions●

Companies targeted:[12 domestic companies]

Item
FY2016FY2017(1) Environmental conservation effect concerning resources input forbusiness activities
97,416
101,681
Total energy input (GJ)
45,46050,584
Water resources input (m3)(2) Environmental conservation effect concerning environmental loads andwastes created by business activities
4,131
4,337
Greenhouse gas emission volume (tons-CO2)
1,028
976
Waste generation (tons)
131
163
Final disposal volume (tons)
45,46048,299Total drainage volume (m3)
2,448
2,720
BOD emissions (kg)
2,613
2,898
COD emissions (kg)645
698
T-N emissions (kg)111
119
T-P emissions (kg)60,0000
2013

21,851
15,190――4,028―
41,069Period covered:
April 1, 2017, to March 31, 2018

The Environment

0●

According to the “Environmental Accounting Guidelines,” environmental
conservation effects measure on a material basis the effects of preventing,controlling, or avoiding environmental impacts, eliminating their effects,
recovering from associated damage, and initiatives to aid in the same.

Water usage

Recycling●

Investment
Costs(thousand JPY) (thousand JPY)

Business area costs
Pollution prevention costs
Global environmental conservation costs
Resource recycling costs
Management activity costs
Research and development costs
Social activity costs
Total
●

●

Scope of data collected

According to the “Environmental Accounting Guidelines,” environmental
conservation costs measure on a monetary basis investments and expenditureson preventing, controlling, or avoiding environmental impacts, eliminating theireffects, recovering from associated damage, and initiatives to aid in the same.

0
2013

Environmental conservation cost

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

The Takuma Groupʼs deﬁnition of environmental efﬁciency
Consolidated net sales (million JPY)

40
29.12

30
22.46

24.42

26.82

28.61

20
10
0

2013

2014

2015

2016

2017

(FY)

Environmental efﬁciency

Greenhouse gas emissions (tons-CO2)

TAKUMA CSR Report 201860

Fair Business Practices
Compliance & CSR Promotion Education
Takuma offers compliance and CSR promotion education through the Compliance & CSR Promotion Organization (see page46), which was established in order to spread awareness of compliance and CSR issues among employees.
During FY2017, we implemented education focusing on compliance and CSR promotion in four separate stages (see below) in
keeping with our policy of pursuing a sustained and thorough program of improving compliance and CSR awareness and risk
management based on a consideration of internal conditions and the characteristics of Group companies in response to social
requirements and expectations in accordance with the basic policy of cultivating a robust corporate culture and the perspectives ofaccommodating environmental change and practicing risk management as set forth in the 11th Medium-Term Management Plan.

●

1st term: Bid-rigging and the Antimonopoly Act●

2nd term: Takuma CSR comprehension test●

3rd term: Risk management, security export control●

4th term: Compliance and harassment, forward-looking CSR activities: CSR issues and an action program

During FY2017, we invited experts to give the following talks to management-level employees:

2nd lecture (January 24, 2018)“Group management and the responsibilities of parent
company ofﬁcers”(Lecturer: Ms. Junko Yamada, Professor, The Konan Law
School)Initiatives to ensure compliance with the Antimonopoly Act
Towards ensuring permanent compliance with the
Antimonopoly Act, Takuma enacted “Regulations
Concerning Management of the Pledge of Antimonopoly
Act Compliance,” which provides for the submission of awritten oath in regard to observing the Antimonopoly Act.
“Rules on Controlling Contact with Competitorsʼ Sales
Departments, Etc.,” deﬁnes the procedure for an employee
to contact the sales department, etc., of a competitor andspeciﬁes that an application should be made to and an
approval should be obtained from the afﬁliated division orcenter manager in advance to ensure fair business contact.

61

TAKUMA CSR Report 2018

Holding training sessions about the Antimonopoly Act
We hold regular training sessions about the
Antimonopoly Act to deepen participantsʼ understanding of
the act and to ascertain the latest information about it.

●

Introducing a Legislation Information Service
In order to allow its employees to gain a continuous grasp of
the latest changes to laws and ordinances, Takuma introduced aLegislation Information Service. In this system, legislation alerts
highlighting revisions to, and abolition of, laws and ordinances
are sent by e-mail in advance to employees, who can also review
detailed information about the corresponding law or ordinance on
the website as needed.
In addition to current laws and ordinances, the system lets users
search for legal precedents and public comments to facilitate aneven greater understanding of relevant laws and ordinances.

●

Takuma has been operating an in-house reporting systemsince FY2006, with the aim of promoting compliancemanagement by uncovering illegal or unfair acts as early as
possible and undertaking corrective measures.
Reporting contacts are set up at our Compliance & CSR
Promotion Division and at an outside law ofﬁce, as well as a
dedicated outside report contact for anonymous e-mailreporting. Our “In-house Reporting Code” and the Takuma
Group Code of Conduct further declare that no informant
shall be subjected to disadvantageous treatment simply due
to his or her having ﬁled a report.
Furthermore, in order for this system to be correctly
understood and utilized, we distribute a card to all employeeswith information on the reporting contacts and regularly
publicize the system.

Persons seeking consultation or making reports
Response
Outside report contact(Anonymous e-mail)

Consultation
or report

Law ofﬁce

Compliance & CSR Promotion Division(Investigation and response)
In-house reporting process

Material Procurement Policy
Our Purchasing Department carries out procurement【Material Procurement Policy】
activity in accordance with its Material Procurement Policy.
We provide fair opportunities for all suppliers, irrespective
1. Treat all candidates fairly when selecting a supplier.
of nationality, company size, or transaction history. Suppliers
2. Strive to discover new manufacturers.
are selected based on our comprehensive evaluation of their
3. Strictly control conﬁdential information.
reliability and safeness in terms of quality, price, delivery,
etc., as well as their abilities in technological development
4. Strive to acquire new and pertinent information.
and supply capabilities.
5. Promote green procurement.
Long-term stable transactions with dependable suppliers
6. Comply with laws and ordinances related toresult in improved product reliability and greater corporate
business dealings.
value. We, therefore, seek to establish relationships of mutual
7. Always keep VA and VE in mind.
trust and mutual development with our suppliers.
8. Strive for self-development.
While also respecting relevant laws and regulations as well
as social norms, we strictly control and maintain any
conﬁdential information that we obtain through our business
transactions.
More information about the procurement procedures used by our Purchasing Department is available on the following
website:[Takuma website > Material Procurement] http://www.takuma.co.jp/procurement/ (content in Japanese)

TAKUMA CSR Report 2018

Fair Business
Practices

Compliance Measures●

As a means of understanding the level of awareness of compliance and CSR and the level of permeation of education that
promotes these priorities, and employing that data as reference for the integrated activities carried out during each ﬁscal year
and for the following ﬁscal yearʼs action plan, we have conducted the “CSR Awareness Survey” every year since FY2008 withthe end goal of utilizing that information for future compliance and CSR promotion activities. The survey has included Group
companies since FY2013.
We actively use survey results in our activities, for example by offering additional education in areas that received lower
scores than in the previous survey.
We will continue to offer this survey and use its results to improve compliance and CSR promotion education on an ongoingbasis.

In-house Reporting System■ CSR lectures for management-level employees

1st lecture (September 27, 2017)“Compliance as a way to increase corporate value: Taking
advantage of internal reporting systems”(Lecturer: Mr. Kiyoshi Endo, Attorney at Law, Endo
Kiyoshi Law Ofﬁce)

CSR Awareness Survey

62

Consumer Issues

Activities Involving Product Quality
The amount of attention paid by consumers (stakeholders) to quality in a wide range of ﬁelds, including manufacturing andservices, has been growing in recent years. This section introduces Takuma initiatives that are designed to provide safe,
conﬁdence-inspiring products and plants.
Takuma has earned certiﬁcation under the ISO 9001 standard on management systems, and in December 2017 we completed ourtransition to the latest version of the standard, the 2015 edition. In addition to working to improve the quality of our products inaccordance with our Quality Policy and quality management system, we are pursuing activities that emphasize customer satisfaction.
In order to produce products and plants that customers truly appreciate, it is necessary not only to boost the quality of the productitself, but also to improve the operations and quality as well as each individualʼs ability to create a good plant in each process fromplanning up to delivery (sales, planning, design, procurement, manufacture, construction, and management).

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

Quality Policy“Manufacturing products that result in customer satisfaction”
Based on that Quality Policy and the three priority items described below, Takuma is working to improve the quality of its
products and services through a variety of initiatives that address every process, including in sales, planning, design,
procurement, manufacture, construction, and management.

Priority items
Creating value to earn customer satisfaction (ascertaining customer needs and making improvements based on past experience)
Carrying out risk management (addressing changes in the business environment and human error)● Implementing human resources management (implementing human resources development and ensuring skills are passed
down to younger employees)●●

Speciﬁc initiatives for improving quality■Improving organizational operations
As an organizational initiative thatʼs designed to boost product quality, we have each department establish quality
targets at the beginning of the year and then provide regular reports (twice a year) on progress towards achieving thosegoals at QM Committee meetings (quality management reviews).

■Internal quality audits

We carry out the following quality improvement initiatives:(1) Conducting a customer satisfaction survey every year
since FY2007

Customer satisfaction survey process(2) Applying customer feedback with regard to delivered
products and Takuma employees to quality and service

Decide where to conduct the questionnaire survey

The ﬁgure to the right illustrates how the survey is
Conduct the questionnaire survey
administered.
First, we administer questionnaires targeting customers
who had construction work done by asking them to assess theoverall experience after the work is completed, including theInvestigate the questionnaire results
nature of the work performed, suitability of delivered
Analyze problem factors and investigate
equipment, and the level of service provided by Takuma staff.
recurrence prevention countermeasures(if results are lower than our standard)
Next, the QM Committee calculates a score for each item
based on the survey results as well as a report andAnalyze praiseworthy factors(particularly for praiseworthy aspects)
explanation from the responsible department. The
committee then analyzes the resulting data.
If we ﬁnd a problem, for example an item receiving anevaluation score of less than 70 out of 100 or a score of 1
Apply recurrence prevention measures and(dissatisﬁed) or 2 (rather dissatisﬁed) on a 4-point scale, thepraiseworthy factors across the organization
QM Committee analyzes the cause of the problem andstudies measures to prevent recurrence based on interviews
with the department in question. We also evaluate aspects ofFollow up with recurrence prevention measures
our products and services that receive especially high praise
Follow up on resultsfrom customers and work to further enhance customer
satisfaction by combining problem areas and praiseworthy
areas and applying them horizontally across involved
departments at the company.
For customers targeted for problem analysis and consideration of preventive measures based on the survey results,
we also conduct a follow-up survey to discern whether those measures were reliably implemented and whether theirlevel of satisfaction has indeed improved.
With scores averaging higher than 80 points every year since its second year, the questionnaire demonstrates
the effectiveness of our initiatives.
In this way, we work to improve product and plant quality so that all customers are satisﬁed.

(Points)

Number of surveys■Quality control and process reviews
Quality control is an important measure that allows us to provide exceptional products and plants.
We take action (improvement measures) as outlined by a manual (standard) in the event a non-conforming product is
discovered, but even if an issue doesnʼt lead to a non-conforming product, we conduct a review as a preventive measure if
there are processes that could have caused the issue.
Furthermore, we actively offer training to new business partners and retraining (instruction) for existing business
partners to prevent defects in the products we purchase.

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TAKUMA CSR Report 2018

(Surveys)

40
37

90

■Improving the employeesʼ individual operational skills
To improve employeesʼ individual operational skills, we have created an operational skill achievement checklist that
identiﬁes the skills required by personnel in each process for use in regular assessments, and we are reviewing the targets
we have chosen.

Average score

100

Consumer Issues

In addition to increasing the precision of operations by standardizing operating procedures in each departmentʼs processes,
we are improving operations as necessary by carrying out an internal quality audit of each department to verify the status ofquality management system operation.
Internal quality audits are carried out regularly by employees who have been certiﬁed as internal auditors after completinginternal quality auditor training seminars offered by instructors from an outside organization. At the training seminars,
employees master content ranging from basic knowledge about ISO 9001 to speciﬁc methods for conducting internal audits.

Customer satisfaction survey

83.5
80.2

80

85.5

85.8

87.7

88.2

86.8

85.6

30

82.3
27

26

27

27

25
23

73.4

70

85.9

18

18

20
19

16

60

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (FY)

10

Number of questionnaire surveys and average score

TAKUMA CSR Report 201864

Participation in the Community / Contribution to Society

Participation in the Community
Reﬂecting their dedication to providing safe, reliable facilities that inspire peace of mind on the part of local residents,
Takuma and its Group companies work actively to disclose information in an appropriate manner, keep the areas aroundplants clean, participate in regional activities, and engage in exchanges with local residents. This section introduces some ofthose efforts.

■ Hitachinaka-Tokai High Trust Co., Ltd.
Hitachinaka-Tokai High Trust is working actively to participate in local activities
and to foster exchanges with local residents, including by participating incoordinated clean-up activities in the surrounding area.
During FY2017, the company sponsored and participated in the 66th Katsuta
Marathon, which was held in January 2018. The company has been involved with theevent every year since it was ﬁrst run.

■ Kurume High Trust Co., Ltd.
Kurume High Trust offers nature and environmental learning programs to ensurethat Kurumeʼs pleasant living environment can be passed on to the next generation,
primarily through the Miyanojin “Manabino” Biotope at its facility, which is designed
to serve as a space where visitors can learn about wildlife in the Kurume region.
During FY2017, the company offered three classes for area parents and theirchildren: a ﬁreﬂy-watching class entitled “Letʼs Go View Fireﬂies” in June, “The Great
Search for River Life” in August, and “The Great Search for Biotope Life” in November.

■ Suwako High Trust Co., Ltd.
In FY2017, Suwako High Trust welcomed more than 300 visitors to its facility inNovember when it hosted the “Eco-Poppo Community Festival,” which is named forthe site. Following a report on the operation of the plant, Okaya City Nagaike
Elementary Schoolʼs chorus performed. In addition, “Explore eco-Poppo” tours
offered attendees a chance to tour parts of the facility that are normally off-limits tovisitors, and there was also a simulation designed to let people see what itʼs like tooperate a waste crane.

■ Hokutan High Trust Co., Ltd.

■ Iwate-Kenpoku Clean Co., Ltd.
Iwate-Kenpoku Clean is committed to disclosing information about its operations
to the general public, including by publishing maintenance and management
records on its website and by regularly publishing a variety of information in the IKC
Newsletter.
During FY2017, the company continued to be involved in community service
activities, including by participating in the village of Kunoheʼs Village Sports andRecreation Festival in September and by picking up litter in the Esashika district andparticipating in the Kunohe Industry, Art, and Culture Festival in October.

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TAKUMA CSR Report 2018

This page introduces some examples of Takumaʼs community service activities.

●Takuma Group coordinated cleanup activities
The Takuma Group orchestrates coordinated clean-up activities in the areas around its
worksites each year as a way for volunteers to beautify the environment and contribute tosociety. During FY2017, a total of 547 employees participated in two such activities. The
activities provided an opportunity for employees to think afresh about waste-related
issues and their connection to the community. Going forward, the Takuma Group willcontinue this initiative.

●Participation in the “Osaka Marathon ʻCleanupʼ Campaign”
In November 2017, volunteers from the former Plant Service Department (Osaka)
participated in the “Osaka Marathon ʻCleanupʼ Campaign,” a cleanup activity that is held
every year as part of the Osaka Marathon. The activity brought together organizational,
group, and individual volunteers to beautify public spaces throughout the city.

●Blood donation campaign
Takuma supports blood donation activities through the Japanese Red Cross
Society. During FY2017, a total of 167 donors participated in spring and fall
blood drives at the Head Ofﬁce and Harima Plant. Donors can simultaneously
register as bone marrow donors, and this year four employees did so. We plan
to continue this activity in the future.

●WFP fundraising activities
Takuma serves on the Board of Trustees of the Japan Association for theWorld Food Programme, the ofﬁcial supporting partner of the World Food
Programme in Japan. Each year, we display WFP posters at the entrances tocompany buildings and in cafeterias during a campaign that lasts from June
through August. The campaign serves both to increase employee interest in
the worldʼs food problems and to collect donations to address them.

Blood donation activities

WFP fundraising activities■ Contributions to NPOs●

Purchasing UNICEF Christmas cards

Takuma purchases UNICEF Christmas cards. A portion of the proceeds is used to fund UNICEF in their work to help
children around the world.
●

Donating calendars to a charity calendar market

Takuma donates unused calendars to a calendar market sponsored by the NPO “Nippon Volunteer Network Active inDisasters.” In FY2017, we donated about 100 calendars. The proceeds are used to provide aid for victims of natural
disasters and other crises.

■ Publications●

Publication of the Takuma Technical Review

Participation in theCommunity/
Contribution to Society

Hokutan High Trust provides space to foster exchanges with area residents tofacilitate environmental learning and awareness-raising, including by preparing toserve as an evacuation site in the event of a natural disaster.
During FY2017, the company participated in the Clean Park Hokutan Festival,
which was held in order to deepen the general publicʼs understanding of the facility
through events such as facility tours, nature experiences as part of an environmental
learning program, and craft lessons. Many visitors brought their children andparticipated in the craft lessons, where they made items such as candles, bamboo
crafts, and plastic bottle airplanes.

Contribution to Society

We publish the Takuma Technical Review twice a year to introduce technologies
that Takuma has developed. Contents in FY2017 included an explanation of how
sewage sludge incineration ash can be used effectively and reports on plant
equipment operation, trial demonstration results, and observations from a visit to an
environmental facility overseas. Abstracts are available on Takumaʼs website.
[Takuma top page > Technical Information > Technical Review]
http://www.takuma.co.jp/english/gijutu/gihou.html
TAKUMA CSR Report 201866